2008 Tribalization Of Business Study

2008 TRIBALIZATION OF BUSINESS STUDY2008 TRIBALIZATION OF BUSINESS STUDY

How to Achieve Transformational Change through Communities and Social Networks

A STUDY PRODUCED BY:A STUDY PRODUCED BY:

Deloitte (www.deloitte.com)

Beeline Labs (www.beelinelabs.com)

Society for New Communications Research (www.sncr.org)Society for New Communications Research (www.sncr.org)

THE FINDINGS IN THIS PRESENTATION ARE BASED ON SURVEYS OF OVER 140 COMPANY OFFICIALS

WHO ACTIVELY USE COMMUNITIESWHO ACTIVELY USE COMMUNITIES

THE RESULTS ARE PRELIMINARY AND MAY CHANGE AS THE STUDY PROGRESSES

OVERVIEW:

WHAT’S THIS TRIBAL THING ALL ABOUT?

W ?WHAT ARE THE MOTIVATIONS ALLOWING THIS TO WORK?

WHAT ARE COMPANIES USING THEM FOR?

WHO’S IN CHARGE – WHAT ARE THE ORGANIZATIONAL IMPLICATIONS?

HOW ARE COMPANIES MEASURING SUCCESS?

WHAT MAKES THEM SUCCESSFUL?

WHAT ARE THE INHIBITORS + BEST AND WORST PRACTICES?

CAN YOU BUILD COMMUNITIES WITH ANY DEGREE OF PREDICTABILITY?

WHAT’S THIS TRIBAL THING ALL ABOUT?

Tribalism is the very first social system that human beings ever lived in and it has lasted much longer than any other kind oflived in, and it has lasted much longer than any other kind of

society to date. (Wikipedia)

THE MOTIVATIONS ALLOWING THIS TO WORK…

People want to connect with peoplePeople want to connect with people

People want to help and be helped

People operate either in a SOCIAL framework

or a MARKET framework

TOP USAGE SCENARIOS:

Customer serviceId ti

New Product Development

Idea generationAmplifying Word of MouthCo‐innovation

Market research Developer relations

Reputation management Product testing

CANARY IN THE COALMINE

Employee communications

Public relationsLONG TAIL SALES

General Marketing

TOP BUSINESS OBJECTIVES:

Reduce market research costs

Bring outside ideas into the organization faster

Reduce market research costs

Generate word of mouthImprove PR effectiveness

Increase customer loyalty

Decrease customer acquisition costReduce customer support cost

Increase brand awareness

Decrease customer acquisition cost

Increase new product success ratios

WHY ARE COMPANIES SETTING UP COMMUNITIES?

Speed of innovation – extending the edges of the organization

Learning organization

Reducing cost

Building trusted relations

Transformational power and game changing nature of communitiesTransformational power and game‐changing nature of communities

WHO’S IN CHARGE?

Sales

Employee communications Product development

MARKETINGPublic Relations

IT

R&D

Customer serviceFinance

ORGANIZATIONAL TRANSFORMATION…

You can start communities without changing the way you work, but successful communities will invariably transform your organizations…

New roles

New career pathsNew career paths

New business processes

‐ NEW ENERGY ‐

THE CHANGING CMO ROLE…

Is the role of the CMO about to dramatically change?

Chief Community Officer – Representing the Voice of the Customer

oror

Doomed to Irrelevancy?

Measuring progress and success – web analytics

50%

60%

70%

20%

30%

40%

0%

10%

20%

DISCONNECT:Not in support of any goal…

Measuring progress and success ‐ business measures

50%

60%

30%

40%

10%

20%

0%

MEASURING PROGRESS AND SUCCESS – QUALITATIVE

Tonality

Sustainability

Software downloads

engagement

Activity levelsImpact on salesParticipation rate

Sentiment

Impact on costAmount of learning

Anecdotal stories

Growth

MEASURING PROGRESS AND SUCCESS…

The importance to measure the impact on business processes the same way as those p p p ybusiness processes are being measured today

The importance of metrics on behavior

Beware of rear‐view mirror effects

The importance of stories

Community features contributing the most to effectiveness

40%

50%

60%

20%

30%

40%

0%

10%

The biggest obstacles to making communities work

40%

50%

60%

20%

30%

40%

0%

10%

Could lead to prematureshutdown of community

OOPS – IT WORKS…

Knowledge about customers

Reach of Word of Mouth for free

Advertising Revenue Knowledge about customersg

Id t d b iti

Lots of active usersGreater visibility

That our market really will tell us what they want ‐‐ if we just ask

Ideas generated by communities

How happy customers are with the outreach

WHAT’S GOING ON HERE?

The more CONTENT you have the more MEMBERS you will get.

h S h h CO illThe more MEMBERS you have the more CONTENT you will get.

The better you match CONTENT and MEMBERS to MEMBER PROFILES the more MEMBERS and CONTENT you will get.y g

The easier it is to do TRANSACTIONS the more MEMBERS you will attract.

THOSE PILLARS CREATE THE DYNAMICS OF INCREASING RETURNS WHICH HELP

COMMUNITIES DELIVER GAME CHANGING RESULTS

AND OF COURSE…

The Technology Infrastructure of the community is importantThe Technology Infrastructure of the community is important

The Social Infrastructure of the community is MORE important

BUT THEY ARE NOT AFFECTING THE ECONOMICS OF INCREASING RETURNS

THAT DELIVER GAME CHANGING RESULTS

POTENTIAL COMMUNITY INHIBITORS…

Incentives

Corporate culture

Lack of physical componentLack of physical component

Community moderator profiles

Community social infrastructure

COMMUNITY BEST AND WORST PRACTICES…

BEST WORST

Clear goals + purpose

Right talent

Start with technology

Marketing “campaign”Right talent

Commitment + time

Marketing campaign

Mixing business/consumer motives

Topic engenders passion

Social + communal

No facilitation

Metrics vs. business measures

CAN YOU BUILD COMMUNITIES WITH PREDICTABLE SUCCESS?

Is the focus hitting a pain, interest that people need help, want to give help?g p , p p p, g p

Understand the importance of the size of your addressable community

If you do not have critical mass invest in professionally developed contentIf you do not have critical mass – invest in professionally developed content

If your community would not succeed in a discussion group – it will not work

YOU MIGHT GIVE UP SOME OF THE EFFECTS OF THE DYNAMICS OF INCREASING

RETURNS BUT STILL GAIN MORE THAN BY USING INTERRUPT TECHNIQUES

OTHER INTERESTING FINDINGS…

Integration of the community with existing public communities – Facebook, twitterg y g p ,

The importance of time‐based events – innovation jams, events, etc.

There are differences in community behavior mobs swarms hives tourists fansThere are differences in community behavior – mobs, swarms, hives, tourists, fans

SOME EARLY PREDICTIONS…

Communities will have a huge impact on organizational changeg p g g

Communities will transform the marketing organization and change the CMO role

A disconnect between metrics and goals and between community goals and businessA disconnect between metrics and goals and between community goals and business goals will lead to many failures

CONCLUSION…

Communities can be build with predictable successp

Communities are transformational

If done properly the benefits are not level settingIf done properly, the benefits are not level‐setting –they are GAME‐CHANGING

QUESTIONS?

[email protected]@deloitte.com

Project web siteProject web sitehttp://www.communityeffectiveness.com

Bloghttp://www.emergencemarketing.com