Building Your Social Strategy: Prioritizing Efforts for Scale

Building Your Social Strategy:Prioritizing Efforts for ScaleGeneral Success Track

Jeremiah Owyang, Altimeter Group

Gordon Evans, salesforce.com

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© 2011 Altimeter Group

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© 2011 Altimeter Group

The World Changed

An Open Leader Emerges

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© 2011 Altimeter Group

Internal Storms Hinder Progress

Compounding DemandsCompounding Demands

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© 2011 Altimeter Group

What is the future?

Path 1: Grounded to Social Media Help Desk

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Path 2: Achieve Escape Velocity

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Building Your Social Strategy:Prioritizing Efforts for Scale

Grounded to Social Media Help Desk

Achieve Escape Velocity with Scalable

Programs

Path 1: Path 2:

Path 1: Grounded to Social Media Help Desk

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Most programs have existed less than 3 years (as of Oct. 2010)

41% of programs are reactive to requests

Strategists work with limited budgets – averaging just $833,000 for all corporations

The Situation

Customers become accustomed to “yelling in public”

Business units adopt “social media fever” and deploy on their own

The Problem

With limited resources, companies can’t scale 1:1 dialog

Social efforts are uncoordinated and fragmented

Relegated to the “Social Media Help Desk”

As internal and external demands mount, companies become mostly reactive, relegating themselves to a “Social Media Help Desk.”

Companies who head towards

Path 1 will not scale.

Path 2: Achieve Escape Velocity

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6 Steps to Achieve Escape Velocity –

Stay out of the Social Media Help Desk.

1. Formalize a Hub and Spoke model quickly

2. Become an Enabler for Business Units

3. Scale with Peer-to-Peer Communities

4. Integrate Social onto the Corporate Website

5. Formalize a Customer Advocacy Program

6. Streamline Internal Workflow with SMMS

6 steps to achieve Escape Velocity

1. Formalize a Hub and Spoke model quickly

Move from fragmentation and decentralization to coordination where business units can deploy own their own. Tip: Governance > Process > Education will

organically manifest as a Hub.

How companies organize for social business

Decentralized Centralized Hub and Spoke

Multiple Hub and Spoke or “Dandelion”

Holistic or “Honeycomb”

DECENTRALIZED

- Organic growth- Authentic- Experimental- Not coordinated- e.g. Sun

- One department controls all efforts- Consistent- May not be as authentic- e.g. Ford

CENTRALIZED

HUB AND SPOKE

- One hub sets rules and procedures- Business units undertake own efforts- Spreads widely around the org- Takes time- e.g. Red Cross

MULTIPLE HUB AND SPOKE OR “DANDELION”

- Similar to Hub and Spoke but across multiple brands and units

- e.g. HP

HOLISTIC OR “HONEYCOMB”

- Each employee is empowered- Unlike Organic, employees are organized- e.g. Dell, Zappos

Most companies organize into Hub and Spoke

Source: “The Career Path of the Corporate Social Strategist,” Altimeter Group, December 2010

You can never hire enough community managers or deploy and manage efforts.

Therefore, establish a “Center of Excellence” at the Hub to support and enable business units

2. Become an enabler for business units

How the CoE and spokes work together:

Set guidelines, policies and processes, and hold spokes accountable

Provide and facilitate learning, education, and research in real time, reducing risk

Own tools, and distribute best practices

Report and coordinate with dotted line spokes, e.g. Executives, HR/Associates, and Legal

Manage social media efforts on their own, within established guidelines

Report and coordinate with CoEon strategy, deployment, and measurements

Share best practices with CoEand other spokes

CoE Spokes

Ebay’s CoE (Global Hub) coordinates across functions, properties, and geographies

Responsible for• Social Strategy

• Alignment of roadmaps and plans

• Analytics and reporting infrastructure

Monthly Social Media Council meetings, with knowledge sharing initiatives

Source: http://www.slideshare.net/influencepeoples/ali-croft-monitoring-social-media-ebay

HP’s Center of Excellence supports multiple BUs

Adobe social media efforts lacked:

Knowledge sharing and coordination

Standard metrics

Common policies

Overarching strategy

Access to training

Protocol for escalating customer support & crisis issues

In 2009, an Adobe-wide audit found:

Source: Maria Poveromo, “One Company’s Journey in Social Media,” 2011

With executive support, Adobe adopted a Hub and Spoke model with a CoE at the Hub

The mission of Adobe’s CoE: “Enable more coordinated and strategic social media initiatives across the company.”

Source: Maria Poveromo, “One Company’s Journey in Social Media”

3. Scale with peer-to-peer communities

Dell’s support forum Best Buy community

Best Buy leverages “super users” to answer 30% of all questions

Started in 2008, Best Buy’s community receives 2.5 million visitors a year,

generating 100,000 conversations. In addition, 25 super users spend 8-12 hours a week on the site answering about 30 percent of all the questions

asked.

GiffGaff mobile customers rewarded for support activities through payback system

GiffGaff, a small UK-based mobile virtual network operator with only 14 employees, has no call center. Instead, the community receives pre-pay credits and badges for contributions. The community

answers 50% of customer questions. The average response

time is 3 minutes.

Community platforms are a top social business priority for all maturity levels

4. Integrate social onto the corporate website

Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010

We asked 140 Corporate Social Strategists: “What three external (go-to-market) social strategy objectives will you focus on most in 2011?”

0. No Integration

1. Social Linking

2. Social Publishing

Passive Sharing

Active Sharing

3. Social Aggregation

Basic Feeds

Curated Aggregation

Contextual Aggregation

4. Social Context

Social Content

Social and Contextual

Content

5. Seamless Integration

Evolution of the Social Corporate Website

Windows 7 curates mentions of its new product on a dedicated page

TripAdvisor visitors view friend reviews through Facebook Instant Personalization

TripAdvisor launched Facebook’s Instant

Personalization feature in December 2010, offering

friend ratings, reviews, and travel history.

Look for opportunities at every phase of the Customer Hourglass

5. Formalize a customer advocacy program

Walmart original recruited 11 “mommy bloggers” for its Eleven

program.

Microsoft selects MVPS annually.

Fiskars’ “Fiskateer” moms lead a crafting brigade

In 2006, 5 women were selected as “Fiskateers.” The

program added an online community and

certified 50 “Demonstrators,” who

in turn certified 20 more who certified

100 more each. Fiskateers are paid

for 15 hours/week of ambassador time. The program is run out of PR. Fiskars calls for applications every 2

years.

Ford leverages “agent”-created content across all social properties, like their YouTube channel

The Ford Fiesta Movement resulted in 31K items of content,

17M customer engagements, 52K test drives, and 58% brand awareness prior to the release

date of the car.

Microsoft recognizes 4000 MVPs every year – the program is run by 50 dedicated staff

Every year 4000 MVPs are nominated by peers, employees, and other

MVPs, and selected by an internal panel. The length of

service is one year.

MVP is a thriving, global community

The MVP award is seen with prestige,

and MVPs worldwide attend summits, network, and display their MVP status on their blogs and

online networks.

Nearly 10M answers provided through support channels

Community provides more than 60% of solutions on MSDN, TechNet and Microsoft Answers

$1M+ in savings from reduction of content creation staffing

MVPs contribute 5x more bugs than the average Beta participant

MVPs contribute 10x more validated solutions on support forums than active participants

MVPs represent Microsoft technologies at more than 700 events WW each year

Microsoft MVPs make a business impact

Source: Ant’s Eye View

Social Media Management Systems (SMMS) vendors include CoTweet, (left), HootSuite, Sprinklr, Objective

Marketer, Expion, Seesmic, Awareness, and SpredFast(right), see full list.

6. Streamline internal workflow with SMMS

Coke has over 500 brands across the entire world, each with its own social accounts

This unofficial list of Microsoft accounts asks “If anyone has any more that should be added to this list, please feel free to let me know!”

Adoption outpaced expectations – already at 64% compared with the predicted 58%We asked: “Does your company use a social media management system (SMMS), e.g. CoTweet, Expion, Hootsuite, Seesmic, Spredfast, Sprinklr, etc.?”

Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011)144 respondents, all over 1000 employees

63.9%

18.1%

18.1%Yes

No

We are currently exploring this.

SMMS investments are low across all companies

1. Formalize a Hub and Spoke model quickly

2. Become an Enabler for Business Units

3. Scale with Peer-to-Peer Communities

4. Integrate Social onto the Corporate Website

5. Formalize a Customer Advocacy Program

6. Streamline Internal Workflow with SMMS

6 Steps to achieve Escape Velocity

1. Get ready internally, focus on governance, process, then education to emerge in the center of excellence.

2. Remember 1:1 doesn’t scale, leverage the crowd for first response, then interact in escalations.

3. Integrate social to increase relevancy and reduce costs on creating content.

4. Standardize social media management tools now so data can be aggregated.

5. Remember the future is more than social marketing: It cascades to support, product innovation, then supply chain.

Closing thoughts on priorities

Open Research: Use and share with attribution

Available for download at www.altimetergroup.com/media-room

Jeremiah Owyang

jeremiah@altimetergroup.com

web-strategist.com/blog

Twitter: jowyang

Q&A

Research team includes significant contributions from Christine Tran, and Charlene Li, Altimeter Group

Achieve Escape Velocity

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Altimeter Group is a research-based advisory firm that helps

companies and industries leverage disruption to their advantage.

Visit us at http://www.altimetergroup.com or contact

info@altimetergroup.com.

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