Dachis Group Social Business Journal - Issue 01
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Sherri Maxson is the Director of Digital Marketing and Social Media at US Cellular, a $4.2 billion wireless services company. She discusses US Cellular's social business journey and her role in leading it. Some key points: - She made the decision to join US Cellular to help them transform into a more social and digital business. She saw an opportunity to modernize their marketing approach. - Initially, her focus was on building social media programs and policies from scratch. This included setting goals, selecting platforms, and establishing best practices. - Now her focus has shifted to measuring results and integrating social deeper into the business. This includes tying social metrics to business goals and helping other departments adopt social
![34 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 35
spite the Internet having existed for
decades), let’s focus on the business
side. The new business landscape will
Ultimately, everything workforces or centralized business
infrastructure, are constrained.
On the output side, abundance is
or transformed into new ones (for
example, traditional software compa-
nies moving to SaaS and cloud com-
business operates organizationally
and is the hallmark of social business.
This new addition changes the dy-
that can be social will
still take a half decade or more to increasingly produced in such great puting, or the rise of crowdsourcing namics of where useful information
arrive and these drivers explain how quantities that it would overshadow competing with outsourcing at the comes from, how decisions are made
markets will get there: shortcomings in the business side. low end.) Today’s dynamic Web-driv- in an organization, and how more
be social.
8. Sustainable value moving from en global knowledge flows and agile autonomy and self-determination
The value drivers business transactions to relation- online models for computing and col- will be needed — and tolerated — in
ships. This represents the growing re- laboration — as well as economic and modern organizations to meet more
of social businesses intellectual production — are now a dynamic and changing global work-
alization that the traditional rote busi-
1. Strategic control over peer- significant change agent. places comprised of communities
ness transaction as the core source of
produced community data drives instead of traditional employees.
drive forward business activities and aspect of social media, change will be organizational value is diminishing. 10. Moving from change as the
market dominance. The real, irre-
objectives. The commercial and com- more rapid and unpredictable since Value now comes from relationship exception to change as the norm. Putting all of the concepts that
placeable value of the social business
munity motivations that have made it will often be led on the community dynamics. As such, it’s more impor- The world is already seeing faster have been presented here so far to-
economy is high-value information.
open source software so successful as side. People in social business ecosys- tant to have community capacity to consumer behavior shifts, quicker gether into a strategic plan to redesign
It is the currency of the realm on the
a productive model based on social tems will make decisions and change create on-demand that it is to actually pricing changes, more rapid product an organization can seem a daunting
network, which will always route to
power structures serve as a powerful course, affecting businesses and cus- have stocks of inventory or knowl- cycles, and faster media feedback task. There are multiple competing
the best source. Only the richest and
examples of how this is taking place. tomers much faster than traditional edge, which quickly age and become loops. While this can also lead to more forces for change today and a vast
most up-to-date data sources will
Many others are presented here in business models. Success requires irrelevant. It’s the relationships and extreme market conditions, it also legacy landscape of existing business
have market dominance and they
this book. With the adoption of designing for low levels of central their ability to produce what’s needed enables opportunities to be turned models, customer needs, learned
will have inordinate market power as
social business, a full range of social control and enabling highly fluid in the moment that matter more in a into bottom-line impact for organiza- behaviors, and instilled culture that
well. 20th century companies greatly
business models will be involved, evolution and development based on fast-moving, real-time marketplace. tions that can adapt to market realities must be overcome. Fortunately, a
undervalue and under-exploit their
from internal social collaboration to near real-time market feedback. This has many implications including quickly enough. The network is the large amount of the early transition to
vast data assets today. Social busi-
customer care communities. using new management methods (ex- culprit (and solution) for much of this. social business is not only incremental
nesses can’t and don’t. They relent- 6. This paints a high-level picture ample: from top down command-and- We now have pervasive social media but naturally complements what most
lessly use it to their advantage, as a 4. Mass self-servicing of market of how the business landscape is control to community curator and fa- instantly transmitting and shaping cul- organizations are already doing today
high-value revenue stream, monetiz- niches achieves the highest eco- transforming in a generational cilitator), tapping into new reservoirs tural phenomenon and faster financial with their early forays into social
ing it in ways their communities and nomic scale. Social businesses will way over the next decade or so. of innovation, adopting new ways of cause-and-effect in the markets, real- media. Whether it’s social marketing,
their own organizations benefit from. enable self-service as their primary However, for some protected and interacting with customers, or driving time online markets, and so on. In the social CRM, social collaboration, or
2. Peer production as the most means of interaction with the market, highly regulated industries, it may better tacit interactions. The tenets of 21st century, following a plan is increas- social product development, getting
efficient and richest source of whether integrating with open data take longer than expected. There are social business will ultimately enable ingly less important than responding started is not the big challenge. The
value creation. Centralized produc- or letting customers and partners dis- macro trends that also affect how organizations to accumulate deep actively and effectively to change. real challenge is acting strategically
tion is inefficient and less optimal tribute their functionality to the far social businesses will either emerge reservoirs of relationship capital. enough to matter.
corners of the world. Google’s indus- from the successful transformations 11. A shift of control to the edge
compared to social business meth- Section 1 of the book presents a
try leading AdWords service is a great of existing organizations, or grow 9. Industries in flux with new of organizations. This has been
ods. When you can tap into the vast number of successful social business
example of this, offering incredibly as successful startups. These macro ones emerging. Previously stable accurately predicted at least as far
capabilities of the global populace for case studies that illuminate key strat-
detailed control of to a wide spectrum trends will have direct impact on industries, such as finance and media, back as the Cluetrain Manifesto, which
mutual benefit, delivering it through egies, as well as the proposition that
of customer types, all without human how successful an existing organiza- are feeling the pinch the strongest, said that because of a direct result of
a central production route is just organizations will ultimately have to
intervention on the customer-side. tion will be as it tries to become a but most others will be disrupted the user-shaped Internet, “markets
non-competitive for most purposes. change in order to transform in very
social business by design. as well. The Great Recession has are getting smarter — and getting
Networked resources on the network 5. Cloud and ecosystem-based meaningful ways how they engage
created a bigger gap between healthy smarter faster than companies”. 5 It’s
will almost always greatly outnumber open supply chains as the basis 7. New resource constraints. the marketplace, produce output,
and unhealthy businesses, while not even really a shift, it’s more of an
whatever classical business processes of growth and agility. The social Today’s economic baselines (e.g. generate revenue, and even define
many industries are being unbundled addition of a new dimension to how
can bring to bear. The traditional business will literally be distributed the Great Recession, green business their very existence. In other chap-
means of enlisting contribution along the edge of the network, be- models, peer production) require ters, we take a much more detailed
(employment) won’t work, something coming both a volume supplier and organizations to find new ways of look at the specific techniques of
new will be required. a consumer of others best-of-breed accomplishing goals using fewer Footnotes social business, how they are effec-
3. Social power structures as services. Social business will build resources. This includes identifying 1 Jarvis, J. “Rupert Murdoch’s pathetic paywall”. The Guardian. [http://www.guardian.co.uk/
tively used, and how to be successful
the means of self-organizing and upon other best-of-class and trust- the means to capture opportunity commentisfree/2010/mar/26/rupert-murdoch-pathetic-paywall] March 26, 2010. at applying them with in a large orga-
governing. Organizational hierarchy worthy social companies and non- and transform “in process” business 2 Gunn. A. “Amazon Cuts Publishers Out of the Mix, Makes Deals With Writers.” nization as part of a strategic change
remains in place to set business goals commercial communities, building activities using newer, more efficient PCWorld. [http://www.pcworld.com/businesscenter/article/242095/amazon_cuts_publishers_ management process. n
and objectives, but social models are a vibrant and deeply meshed supply models. Social businesses will need out_of_the_mix_makes_deals_with_writers.html] October 18th, 2011.
leveraged therein as effective and chain while carefully exposing and to effectively link IT and operations 3 Hutchinson, A. “Human Resources: The job you didn’t even know you had”. Dion Hinchcliffe is based in Washington
protecting strategic data. Ability much more so than in the past to The Walrus. March 2009. p. 15-16.
efficient ways to run organizations. D.C. and is Executive Vice President of
Work itself, however, takes place via to dynamically adapt and rapidly accomplish the movement to this 4 von Ahn, L. NOVA ScienceNow s04e01 (Television program). 2009. Quote occurs at 46:58. Strategy at Dachis Group. Peter Kim is
community-based relationships that respond to the current needs of the new baseline. Note that only certain 5 Levine R, Locke C., Searls D., & Weinberger D. The Cluetrain Manifesto. Chief Strategy Officer in Austin.
cloud. Because of the self-organizing inputs, such as access to traditional Perseus Books, 2000.](https://image.slidesharecdn.com/socialbusinessjournal-issue01-120502165559-phpapp02/85/Dachis-Group-Social-Business-Journal-Issue-01-18-320.jpg)
Dachis Group Social Business Journal - Issue 01
- 1. THE Letter from Jeff Dachis 4 THE SOCIAL BUSINESS JOURNAL US CELLULAR's SHERRI MAXSON 8 EVERYTHING IS A SERVICE 14 SOCIAL BUSINESS BY DESIGN 30 SOCIAL BUSINESS JOURNAL tw ay pl it boo te k r THE TWITTER ISSUE 01 · Q2 2012 PLAYBOOK P.22 Everything marketers should know about launching, managing, and measuring brand efforts on Twitter. Your free chapter, “EARNED OPPORTUNITIES,” starts on...
- 2. 2 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 3 MOVE YOUR THE SOCIAL STRATEGY SOCIAL + CONTACT US FORWARD BUSINESS DACHIS GROUP 515 Congress Avenue Suite 2420 8 MAR 18 APR 9 MAY 23 MAY 21 JUN 26 JUL 12 SEP Austin, Texas 78701 AUSTIN SHANGHAI RIO DE JANEIRO BERLIN LONDON SINGAPORE NEW YORK JOURNAL USA AMERICAS: +1 512 275 7825 EUROPE: +44 0 20 7357 7358 www.dachisgroup.com [email protected] JOIN US AT A 2012 DACHIS GROUP SOCIAL BUSINESS SUMMIT. The Summit brings together practitioners, + DEPARTMENTS + ISSUE 01 · Q2 2012 thought leaders, and industry experts for a series of keynotes focusing on Performance PUBLISHER CONTRIBUTORS 4 MESSAGE FROM 5LETTER FROM Jeffrey Dachis Katherine Bish John DeOlivera Brand Marketing, Connected Company, THE CEO By Jeffrey Dachis THE EDITOR By Peter Kim EDITOR IN CHIEF Dion Hinchcliffe Peter Kim Erik Huddleston and Social Business Intelligence. Our goal Lindsey Kirkbride is for attendees to leave the Summit armed 6 BLOGS & BOOKS A roundup of good reads 43 SOCIAL BIZ INSIDER By Susan Scrupski MANAGING EDITOR Dave Gray CREATIVE DIRECTOR Brian Kotlyar Susanne LeBlanc Noah MacMillan David Mastronardi with tactical advice and empowered to move their social strategy forward. Bill Keaggy Scott Matthews Cynthia Pflaum SENIOR ILLUSTRATOR Ray Renteria + FEATURES Chris Roettger Carly Roye SPEAKERS INCLUDE Zoë Scharf The Social Business Summit is by invitation only. Jeremiah Owyang Bonin Bough Tiffany LaBanca Steve Furman 8 OPERATIONS MANAGER Christoph Schmaltz ALTIMETER GROUP KRAFT FOODS NEWS CORP. DISCOVER SHERRI MAXSON Lara Hendrickson Susan Scrupski Request an invitation David Armano Adriana Knackfuss Dave Gray FINANCIAL SERVICES INTERVIEW PRINT MANAGER Jen van der Meer David Vordtriede at socialbusinesssummit.com EDELMAN DIGITAL THE COCA-COLA DACHIS GROUP Social at US Cellular COMPANY Jeff Dachis Lisa Vorst Brian Williamson Arnaud Frade Clara Shih DACHIS GROUP #SBS2012 TNS (APAC) Sam Flemming HEARSAY SOCIAL 12 PRINTER COVER ILLUSTRATION CIC Lee Bryant Sandy Carter Dion Hinchcliffe ATTRIBUTES OF A The Composing Room St. Louis, Missouri USA Chris Roettger IBM Sherri Maxson DACHIS GROUP DACHIS GROUP SOCIAL BUSINESS Melissa Lavigne- US CELLULAR Peter Kim DACHIS GROUP A visual XPLANATiON ISSN: 2166-3742 Ted Stanton Sanjay Mehta Delville SOCIAL NBC UNIVERSAL IBM WAVELENGTH 14 ISSUE HASHTAG: #SBJ01 Donna Li Alistair Rennie Erik Huddleston EVERYTHING RENREN INC. IBM DACHIS GROUP IS A SERVICE By Dave Gray + ABOUT SBJ 22 The Social Business Journal is a free THE TWITTER quarterly publication produced by Dachis Group. If you’d like to receive future issues, PLAYBOOK please contact us at [email protected]. By Brian Kotlyar 30 Comments? Questions? Suggestions? We’d 36 love to hear your feedback on the first issue SOCIAL BIZ SUPER BOWL of the SBJ. Visit dach.is/01-sbj to let us BY DESIGN OF BRANDS know what you think. A book excerpt By Erik Huddleston ©2012 Dachis Group
- 3. 4 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 5 “Everything that can be social will be.” + MESSAGE FROM THE CEO: JEFFREY DACHIS + LETTER FROM THE EDITOR: PETER KIM Welcome to the Social Business Journal Here’s another way to work out loud A vehicle for deliberate, intentional transformation In real life, online — and now in print Iam thrilled that you have joined us in these pages to discuss Social Business and the many inspiring processes and engagement programs will exceed their strategic goals and drive superior financial performance. D achis Group enters its fifth year this spring and along the way we’ve experimented with a variety this new vehicle to our communica- tions mix as a complement to digital and physical interactions. ways companies are evolving by inte- I couldn’t be more excited for the of channels to communicate and In each issue of the Social Busi- grating the power of social technology Social Business Journal to chronicle engage our ecosystem in social busi- ness Journal, we’ll be drawing on our into their DNA. companies making powerful social ness discourse. When we launched research in visual thinking, business I firmly believe that we are at the shifts in order to enhance their busi- our company website in October advisory, and big data. We will also crux of the largest shift in the com- nesses in ways that are more scalable 2009, we created a stir by “work- be highlighting the stories of profes- munications landscape in the history and efficient than ever before. ing out loud” and publishing our sionals who are “in the trenches” and of mankind. The digital revolution Thank you in advance, I’d love to aggregated activity stream on the making transformation a reality, as has democratized the tools of self- this connection and engagement is hear your thoughts @jeffdachis. n home page, showing when someone pects, including The Collaboratory well as giving industry thought lead- expression, creating a culture of trackable, traceable, and measurable. sent an email and to what domain, (dachisgroup.com/blog), Twitter ers a platform to share their insights. sharing, connection, participation and There has never been a more uploaded a file to Basecamp, posted (@dachisgroup), and Facebook I hope you enjoy this issue and engagement. valuable opportunity for businesses to a message to Yammer, published a (facebook.com/dachisgroup). thank you for reading. Your feedback Social Business, and by proxy interact with their key stakeholders, blog post, and so on. But this year we’re launching a is encouraged and appreciated. n meaningful, authentic, and trans- driving valuable insights that were Jeffrey Dachis In 2010, we launched our Social new communications vehicle that’s a parent engagement at scale creates once unavailable in traditional one- Chief Executive Officer, Business Summit series, which will bit of a throwback — a print collec- Best, exponential and never before seen op- way marketing approaches. Organiza- Chairman and Founder, take us to seven cities this year: tion of thought leadership focused portunities for businesses. Moreover, tions that embrace social technology, Dachis Group Austin, Shanghai, Rio de Janeiro, on social business. I see this as a Berlin, London, Singapore, and reflection on the nature of social New York (for more information, business — when done properly, it Peter Kim visit socialbusinesssummit.com). extends across channels, functions, [email protected] We’ve also used the usual sus- and constituencies. So we’re adding +1 512 275 7825
- 4. 6 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 7 + B L O G R O U N D U P : D A C H I S G R O U P. C O M / B L O G + WHAT WE’RE READING: BOOKS, BLOGS, ETC. The best of the Collaboratory “The Social Organization” By Anthony J. Bradley and Mark P. McDonald “Beautiful Evidence” By Edward R. Tufte “Everything Is Obvious” By Duncan Watts EDITED BY CARLY ROYE Jacob Heberlie Anne Bartlett-Bragg Maia Garau Designer Managing Director ILLUSTRATIONS by CHRIS ROETTGER Senior Consultant St. Louis Sydney Amsterdam @hebchop @AnneBB @garau Use social tools and 4 key steps to Responsive design: We want you! To Insights across Deeper than fan employee expertise being a connected The future of content join the sketchnote your entire social counts: Social to solve problems. company. consumption. revolution. presence? Yes. metrics CMOs love. SMART SMART WEB WEB DESIGN 72 DESIGN Business Customers SMART WEB DESIGN 47 63 -7 0 8 -15 15 - SBI + ? By Dion Hinchcliffe By Cristoph Schmaltz By Lindsey Kirkbride By Bill Keaggy By Erik Huddleston By Jen van der Meer EVP Strategy Consultant UX Designer Creative Director Chief Technology Officer EVP Managing Director Washington D.C. London Portland St. Louis Austin New York @dhinchcliffe @christoph @lindseyk @keaggy @ehuddleston @jenvandermeer T he 21st century has brought re- markable change to the world B eing a genuine social business means more than having an online pres- ence, but most companies don’t have the T he number of people using their mobile devices for web browsing is growing at a remarkable rate, and it’s B ill Keaggy wants you to join the sketchnote revolution. The DG E ven the largest social businesses share a similar challenge of clearly under- U p till now, the tools available for companies to measure its social of business, but perhaps none greater Creative Director shares his answer for standing their social presence, and how performance have been limited to listen- than the push towards systems of know-how to change. Christoph Schmaltz time for designers to catch up. Recently, freeing yourself from mind-numbing successfully or unsuccessfully their social ing programs and experience enhance- engagement. Dion Hinchcliffe explains explains how businesses have slowly it’s been a common practice to build conference notes, by creating something media accounts are performing. CTO Erik ment. Too many community managers that even though a business is rooted distanced themselves from their custom- an individual website for each different that you’ll be proud to share, and eager to Huddleston explains how DG’s Social think their primary focus should be in outdated systems of record, it can ers and hindered their success in the browsing device (desktop, mobile, tablet), look back on. Instead of simply transcrib- Portfolio Insight (SPI) tool is clearing a on fan growth, but the number of fans still use new social tools to open up process. He offers four key concepts to but this often leads to unnecessary work ing words onto paper, visual note taking lot of that confusion by allowing compa- a company has is hardly an accurate the conversation with customers, help clients easily understand the path to and an inconsistent customer experience. allows you to arrange things the way your nies to easily examine and manage their assessment of their social success. Jen and use its employees’ expertise to becoming a truly connected business. By Lindsey Kirkbride discusses responsive mind naturally does, and builds a greater multiple social accounts. With the SPI, van der Meer explains how DG’s social best solve problems. The transition getting rid of outdated company policies web design and mobile first thinking as connection between you and the content. businesses can analyze their social pres- performance tools dig much deeper process can be intimidating, but when and conservative hierarchy structures, the future for building websites. By build- You don’t have to be an artist to do it ence with highly organized data, and gain into a company’s social performance, a company starts distancing itself a company can use social media tools ing the mobile site first and making small either. Scribbled sketches can be just as insight into the overall sentiment of their measuring everything from brand love to from old transactional systems, it to connect to its client base, bond its changes from there, companies will spend effective as ingenious illustrations. Bill of- customer base. By seeing the entire social brand awareness and advocacy. By tak- can then connect to its employees, and give its far less time and money on fers some practical tips for picture, a company can be ing a richer look into these customers and business customers real people to design, and, in the process, getting started and shares more in tune with its cus- different aspects of social, partners in a more talk to. Bottom line, people will create a much more some inspirational sketches tomers and less consumed a company can maximize cost-effective and want to connect with other user-friendly experience for of his own. Note taking with sifting through the their outcomes and outper- human way. people, not companies. its customers. never looked so beautiful. social weeds. form the competition. Read the entire blog post at dach.is/j7sLDb Read the entire blog post at dach.is/oqIHok Read the entire blog post at dach.is/t5toOm Read the entire blog post at dach.is/rwnlDL Read the entire blog post at dach.is/vdnACa Read the entire blog post at dach.is/wHw1o9
- 5. 8 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 9 + SOCIAL BUSINESS PROFILE: SHERRI MAXSON A SOCIAL BUSINESS JOURNEY As the first Director of Digital Marketing and Social at US Cellular, Sherri Maxson is responsible for the $4.2 billion wireless services firm’s social business journey. Dachis Group’s Peter Kim, David Mastronardi, and Cynthia Pflaum sat down with her to discuss where she’s been and where she’s taking US Cellular. PHOTOGRAPHY by KATHERINE BISH
- 6. 10 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 11 Social Business Journal: Let’s start MARCH 2012 frastructure needs to be built, and 1 at the beginning. Why did you make 147 programs created. All of these must 100 happen without disrupting exist- the decision to join US Cellular? 200 ing processes that already generate Sherri Maxson: Being in the Chi- 300 positive returns for the company. cago area, I was familiar with 400 SEPT. 2011 The key is how to make business as 561 usual better by rearchitecting initia- U.S. Cellular’s strong product and 500 award-winning customer service. I 600 tives back into the business. joined U. S. Cellular in December 700 2010 and was excited to be part a Providing customer service in social 800 company that believed in a dynamic SEP OCT NOV DEC JAN FEB MAR channels creates outcomes tradi- culture, where associates are em- tionally associated with marketing. powered to provide the best experi- Maxson launched US Cellular’s social customer service initiative in September 2011. These two organizations are now ence to customers and prospects. A month later the company’s Social Business Index score (socialbusinessindex.com) much more tightly coupled. All parts Over the past four years through my began rising, and so far has improved almost 400 spots. (The early dip likely is the of the business need to collaborate result of multiple companies with better SBI rankings getting added to the Index, and work towards shared business personal experience and the rise of causing US Cellular’s rank to temporarily suffer.) GRAPHIC by ZOë SCHARF social, I’ve learned how critical it is outcomes, which are amplified by to have the right culture in place for social. Meanwhile, the connections social business success. between marketing and sales chan- complete infrastructure in place to thoughtful about how participation Part of Team US Cellular, from left to right: Jessica Masterson, Social Media Manager; nels start to impact everything and How did your role come about at take full advantage of business op- should work, activating specific Sharif Renno, Manager, Social Media, Sherri Maxson, Director Digital Marketing & Social; create new opportunities. U.S. Cellular? portunities in social, which led to the business areas to engage on behalf and Sonny Gill, Social Media Manager. PHOTO BY KATHERINE BISH creation of my position. of our brand. I worked with HR to Looking forward, what’s next in I filled a role that was new to the create a policy that everyone could social business at U.S. Cellular? company, created to capitalize on Scalability is certainly a key live with, with an agreement that sors were bought-in to our progress. How did you measure your results? emerging opportunities in digital and challenge as companies move we would iterate rapidly as needed. Communication and cross-depart- Now, it’s all about activating the so- social media. Before I started, the towards social business. Where mental collaboration was critical We are measuring outcomes in a cial business platform. We’ve called company had gotten familiar with did you start solving this issue Sounds like you had some good to staying on track with the plan. variety of ways. Some of the ones our programs “betas” so far to help social media through a Facebook for U.S. Cellular? momentum. Where did you take it In addition, U.S. Cellular takes the I can share publicly include the get people into a test-and-learn presence initially created as part from there? customer experience very seriously. number of issues we are resolving mentality to encourage participa- of an integrated marketing cam- One of the first building blocks we We had to be sure to not disrupt through social channels. From our tion and feedback. We’re ready to We needed to get executive buy-in for existing processes that were already initial baseline, we have increased paign. When the page went live, the needed to put in place was a com- apply lessons learned within general making social business a reality. So I working for us, which required train- our average volume handled by company engaged using a volunteer prehensive strategy, supported by operational channels, as well as created an internal “mini-roadshow” ing on how to use program-specific 625%. Another metric we are force of responders from across the policy. We had many points of view marketing vehicles and channels. to meet with executives and explain tools and engage on-brand. tracking is social business perfor- organization, whose efforts went on social participation. Some people how our policy and social business mance as measured by the Social above and beyond their day jobs. felt everyone should be participating This is the most rewarding thing I’ve plan would enable scale. Our orga- One of the first programs we Business Index. We are also look- This group, fully supported by execu- instantly and generating brand love done professionally, in perspective nizational structure would centralize launched was a national sales pro- ing at the impact of taking formerly tive leadership, comprised about 55 everywhere in social media, similar of watching the evolution of digital operations in marketing, with efforts gram on Facebook and Twitter. We private conversations public and associates. While the team’s efforts to Zappos. Others were focused on from 1995 to today. It’s not easy; a coordinated by a cross-functional started listening for relevant men- the amplification we are seeing in displayed plenty of passion, scal- minimizing risk by limiting involve- lot of experts talk about what’s pos- center of excellence. We would focus tions of industry and brand topics, social channels. We believe that ability continued to be a challenge. ment to just my team. Somewhere sible, but actually getting it done is initially on sales and service, two then engaged users proactively this is a perfect venue for getting As new opportunities emerged, the in between, there was a belief the hard part. It’s fun, challenging, business areas where we could show in conversation. At one point, we our customer focus, one of our company realized it didn’t have a that we should be deliberate and and important to the future of busi- a tangible business impact. started a prospect conversation on core strengths, displayed out in the ness. I’m fortunate to have found a Twitter with a person who voiced open. The organization has been culture at U.S. Cellular that lends “ So you had a plan in place. How a complaint about her existing car- highly supportive of social business itself naturally to being a social Customer service is the new did you turn that plan into reality? rier. After we started engaging, her activities and we communicate business, which helps connect the current carrier joined the conversa- wins regularly within the company. dots between the power of business marketing. All parts of the We started by bringing in outside perspectives to help shape our pro- tion, asking her to stay. After some and people. n public back-and-forth on Twitter, business need to collaborate grams and fine-tune our initiatives. We then started putting more detail we ended up winning the busi- What lessons stand out at this point in your journey? Peter Kim is Dachis Group’s Chief and work towards shared around requirements to operational- ize our inter-departmental programs, ness. Our front line associates were well-prepared with the right tools When you are implementing enter- Strategy Officer and is based in Austin, where David Mastronardi is business outcomes, which working with key business area and training, all we had to do was identify the opportunity and they prise social business, there are so many things that need to be done. an Engagement Manager; Cynthia Pflaum is a Consultant in the New stakeholders. As we progressed, are amplified by social. we made sure that program spon- were successful. You need contracts in place, in- York office.
- 7. + X P L A N A T i O N : AT T R I B U T E S O F A S O C I A L LY O P T I M I Z E D B U S I N E S S 13 BUSINESS BENEFITS FOR: SOCIAL BUSINESS IMPACT ON THE GLOBAL DEFINING ATTRIBUTES Marketing Sales R&D Customer Service Customers IS A MARATHON — WORKFORCE: OF THE SOCIALLY- Better connected More playful, faster, Fluid and continuous More agile, innovative More caring, direct, Have a say and NOT A SPRINT: EVOLVED BUSINESS: responsive, stream- relationships with decreased dev accessible — know it — they feel lined and direct cultivated online cycles, increased opps embraces and deals the authenticity Break down barriers REAL-TIME CREATIVE for outsourcing with mistakes COLLECTIVE TRUSTED ST ART Manage cultural differences AUTHENTIC ENCOURAGING CONNECT MORE DOTS: Easy to find experts COHESIVE OPEN KEY DIFFERENCES VERSUS Alignment & perspective COLLABORATIVE R&D SALES TRANSPARENT TRADITIONAL BUSINESS: Higher performance Greater achievement CUSTOMER-CENTRIC Become more dynamic ! CRM Greater ERP MKTG acceptance PAINS FELT BY Team-oriented, of risk, failures ORGANIZATIONS ATTRIBUTES OF A SOCIALLY OPTIMIZED BUSINESS much flatter: Clear guidelines Exists beyond THAT ARE NOT allow everyone to the org chart SOCIALLY-EVOLVED: speak openly on Greater business behalf of company FEEDBACK METRICS TRENDS ALERTS · Low employee engagement What’s different? Who benefits? visibility: Info flows · Opaque and misaligned vertically and horizontally · Lack of creativity Democratization · Keep reinventing the wheel of information Comfortable with outward-facing The social business is alive with dogma, progressive organizations · Can’t be nimble · Can’t capitalize on resources communication energy and big ideas — you are waking up to the disturbing truth · At competitive disadvantage Leaders and experts might call it a Renaissance that they’ve squeezed all the creativity · Slow to change can easily emerge for the information age. out of their business. When companies · No perspective on future After decades of mechanistic, embrace organic, passionate, socially- dehumanizing, process- savvy initiatives, they blossom. NEW BEHAVIORS IN INDIVIDUALS: oriented management Who benefits? Everyone. · More open to sharing Culture that’s more comfortable communicating, collaborating INTELLIGENCE & INSIGHTS VIA DASHBOARDS: · Introverts become extroverts HELLO Change Content MY ROLE IS · Diverse audiences join together · Thinkers can release thoughts EASILY ACCESSIBLE NEW ROLES: Agent Editor EER ” · Pride in being “the expert” · More questioning TECHNOLOGIES: “EMERGEN · Less risk-averse Video Mobile & IAL SOC Transparency & trust ·Things get done because people want to versus are Blogs Wikis IM told to Shorter decision- making cycles · Enables all to ask questions Collaborative Community and get answers Consultant Manager MASSIVE SHIFT Attitude change KNOWLEDGE VS SOCIAL Authenticity Overall improvement in individuals in business practice FROM “ME” TO “WE”: MANAGEMENT BUSINESS: is everywhere WE creates long-term · People “work out loud” impact on culture Structured, not very useful · · Gather 1st, organize 2nd · Ideas are crowdsourced Capture of information · · Capture of interaction · Openness is rewarded Taxonomy of knowledge · · Folksonomy of knowledge Top-down · · Community BUSINESS BENEFITS FOR: Finance Line Managers Partners More innovative and Proactive, have faster More connected transparent, can allocate turnaround, work out and efficient, can resources better, give the loud, increase employee be included in department a human face engagement conversations XPLANATiON BY BILL KEAGGY & NOAH MACMILLAN
- 8. 14 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 15 + SOCIAL BUSINESS FEATURE: THE CONNECTED COMPANY EVERYTHING BY DAVE GRAY is a service The emerging service economy will require business and society to do some fundamental restructuring. The organizations that got us to this point have been hyper-optimized into super-efficient production machines, capable of pushing out an abundance of material wealth. Unfortunately, there is no way to proceed without dismantling some of that precious infrastructure. The changes are already underway. PHOTO courtesy THE U.S. THE GREAT BIG SHIFT-RESET. In The Power of Pull: How Small Moves, LIBRARY OF CONGRESS Smartly Made, Can Set Big Things in Motion, ILLUSTRATIONS & CHARTS John Hagel and John Seely Brown observe by DAVE GRAY that return on assets, the measure of how ef- ficiently a company can use its assets to gen- erate profits, has steadily dwindled to almost a quarter of what it was in 1965. They argue that ever-improving digital infrastructure and social networks are causing profound social change that increases competitive intensity. Since this turbulent environment shows no signs of stabilizing, they say, the only sus- tainable competitive advantage is the rate at which a company can learn.
- 9. 16 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 17 A SERVICE ECONOMY. saturated and it gets more and more difficult to sell them more This digital revolution is ushering in all kinds of new ways to stuff. By 1960, 70% of families owned their own homes, 85% deliver, combine and mix up services, resulting in all kinds of had a TV, and 75% had a car. enticing combinations: streaming music, following other people’s As markets became saturated with material goods, produc- book highlights, renting strangers’ apartments or cars by the day, ers found a new way to apply the principle of mass-production Since 1960, services have dominated US employment. To- negotiating bargain prices at 4-star hotels and much more. in mass-marketing. With a TV in nearly every house, producers day’s services sector makes up about 80% of the US economy. had a direct line to customers. Customers became known as Services are integrated into everything we buy and use. Nine of every ten companies with fewer than 20 employees are in URBANIZATION. In addition, there is an increasing trend to- consumers, because their role in the economy was to consume ward urbanization. Throughout the world, city populations are everything that producers could make. Increasingly, this pro- services. Companies like GE and IBM, who started in manufac- growing much faster than rural populations. We are becoming ducer-consumer economy developed into a marketing-industrial turing, have made the transition and now make the majority of an urban society and living more urban lifestyles. complex dependent on consumer dissatisfaction and the mass- their money in services. Fifty percent of the world’s population today lives on two per- creation of desire for the next new thing. What’s driving the move to services? Three things: Product cent of the earth’s crust. In 1950 that number was 30%, and by New technologies of communication have splintered the saturation, information technology, and urbanization. 2050 it is expected to be 70%. channels of mass-communication into tiny fragments. It’s no Why are people moving to cities? Because cities are where longer possible for mass-marketers to reach out and touch all of the action is. There are more jobs, and more kinds of jobs, avail- In The Great Reset: How New Ways of Living and Work- their customers at once. The megaphone is gone. And with the able in cities, and even when the same job is available in the ing Drive Post-Crash Prosperity, Richard Florida points to a rise of social networks and peer-to-peer communication chan- country and the city, the job in the city pays more. Urban work- shift from an economy based on making things to one that nels, every customer can have their own megaphone. ers make, on average, 23% more than rural workers. And the is increasingly powered by knowledge, creativity, and ideas: To many mass-marketers this feels like a chaotic cacophony more highly skilled you are as a worker, the more you stand to “Great Resets are broad and fundamental transformations of voices, and it’s hard to be heard in the crowd. But to most cus- gain financially by moving to a large city. of the economic and social order and involve much more tomers it’s an empowering feeling to have a voice, to be heard. Also, if you happen to get laid off or your company goes out of than strictly economic or financial events. A true Reset trans- Even if a company ignores your complaint, the world will hear, business, as a worker it’s much easier to find a new job without forms not simply the way we innovate and produce but also and if companies don’t respond they will eventually feel the pain, having to pick up and move. ushers in a whole new economic landscape.” as customers find new places to go to get what they want. As work becomes more complex and more skills are required, Jeffrey Immelt, CEO of General Electric, agrees. The producer-driven economy is giving way to a new, cus- cities become more attractive to companies too, because that’s “This economic crisis doesn’t represent a cycle. It repre- tomer-centered world, where companies will prosper by develop- where the skilled workers are. Cities pack a lot of people and sents a reset. It’s an emotional, raw social, economic reset. ing relationships with customers by listening to them, adapting businesses into a relatively small space, which is good for ser- People who understand that will prosper. Those who don’t and responding to their wants and needs. vices companies in several ways. will be left behind.” The problem is that the organizations that generated all The good news is that although resets are initiated by failures — sometimes catastrophic failures, like we have this wealth were not designed for this. They were not de- signed to listen, adapt and respond. They were designed SPACE: People living in small city apartments just don’t have seen in the mortgage system — they also lead to new pe- a lot of room for products, and because they are making more to create a ceaseless, one-way flow of material goods and money than their rural counterparts, they tend to spend more riods of growth and innovation, built on new systems and information. Everything about them has been optimized for on services. Why take up space with a washer and dryer when infrastructure. Whether you call it the Big Shift, the Great Reset, or the great big shift-reset, there’s little doubt that a fundamental this one-directional arrow, and product-oriented habits are so deeply embedded in our organizational systems that it will be PRODUCT SATURATION. When people already have most of there’s a laundry service right down the street? difficult to root them out. the material goods they need, they will tend to spend more of economic restructuring is underway. There will be winners their disposable income on services. Increasingly the products It’s not only companies that need to change. Our entire and there will be losers. that companies want to sell us are optional; they offer not func- society has been optimized for production and consumption on tionality but intangible things like status, pride of ownership, the AN AGE OF ABUNDANCE. a massive scale. Our school systems are optimized to create good cogs for the corporate machine, not the creative think- new color that’s in this year, and so on. ers and problem-solvers we will need in the 21st century. Our And products, we have found, can not only make life easier, government is optimized for corporate customers, spending its they can be a burden. When you own a house, you have to As we stand on the verge of a new era, it’s easy to disparage spend money to fix the roof or the plumbing. Where’s the fun in money to bail out and protect the old infrastructure instead the old-school industrial economy. But let’s not forget that the that? And moving can be a big hassle when you have a truckload of investing in the new one. Our suburbs are optimized to in- industrial economy gave us an abundance of material wealth we of stuff to lug along with you. crease consumption, with lots of space for products and plenty now take for granted, including many things that were unavail- able — and unimaginable — in previous centuries. Economist J. Bradford DeLong points out that in the 1890s, of nearby places where we can consume more stuff, including lots of fuel along the way. INFORMATION TECHNOLOGY. In addition, another, post- While workers are being laid off in many industries, technol- industrial revolution is delivering a new kind of abundance — even the richest of the rich could not go to the movies or watch an abundance of information, along with networks and mobile ogy companies like Facebook and Google are suffering from criti- football on TV, and traveling from New York to Italy took at least devices for moving that information around, and much faster cal shortages, struggling to fill their ranks and depending heavily a week. In 1836, the richest man in the world, Nathan Roths- processing that allows us to do more interesting kinds of things on talent imported from other countries that place a higher prior- child, died of a common infection that would have been easily with the information we have. ity on technical education. curable with modern antibiotics. And while at first this shift was driven by the kinds of things “The whole approach of throwing trillions of public dollars at The material abundance we all enjoy was made possible by we traditionally think of as information containers, like docu- the old economy is shortsighted, aimed at restoring our collec- an industrial economy that focused primarily mass- ments and images, now it has exploded to include many things tive comfort level. Meaningful recovery will require a lot more producing material goods. The philosophy of mass production was based on Henry than government bailouts, stimuli, and other patchwork mea- sures designed to resuscitate the old system or to create illusory, that were previously undocumented. Your network of friends and acquaintances, the efficiency of your car’s engine, the things you DENSITY: Urban density makes it more attractive for compa- Ford’s big idea: If you could produce do, the places you go, the things you buy, what you think about nies to provide a wide variety of services. For example, a cable short-term upticks in the stock market, housing market, or car company can wire a city apartment building and serve hundreds great volumes of a product at a low them, and even your random throwaway thoughts are being cap- sales.” —Richard Florida of households for a fraction of the cost to do the same thing in cost, the market for that product tured in Foursquare check-ins, tweets, status updates, photo and We no longer live in an industrial economy. We live in a ser- a suburb or rural area. Taxis find customers quickly in dense- would be virtually unlimited. In video uploads and other kinds of “data exhaust” that you may not vice economy. And to succeed in a service economy we will need ly-packed urban centers. One city block can support several the early days his idea held true, even know you’re generating, simply by using your phone and to develop new habits and behaviors. And we will need new specialty stores and a variety of restaurants. And in a reciprocal but eventually, every market gets other devices. organizational structures.
- 10. 18 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 19 A PRODUCT IS A SERVICE AVATAR. loop, that wide variety of services makes cities even more attrac- cy, but services are not processes. They are experiences. tive places to live. Unlike products, services are often designed or modified as Consider the quintessential industrial-age product, the they are delivered; they are co-created with customers; and ser- automobile: For many, a symbol of individuality, status, per- vice providers must often respond in real time to customer de- The first step to a service orientation is to change the way we sonality and freedom. In suburban and sparsely-populated sires and preferences. Services are contextual — where, when think about products. Instead of thinking about products as ends rural areas, a car provides you with unlimited mobility and and how they are delivered can make a big difference. They may in themselves, we need to think of them as just one component choice. But in a densely-populated urban environment, a car require specialized knowledge or skills. The value of a service in an overall service, the point of which is to deliver a stellar quickly becomes more trouble than it’s worth. A permanent comes through the interactions: it’s not the end product that mat- customer experience. parking space in New York costs more than a house in many ters, so much as the experience. Today, we think of an avatar as the face or icon that repre- other areas. To this end, a company with a service orientation cannot be sents you in your Twitter stream, or on your Facebook page. Density creates demand for more services, like taxis, lim- designed and organized around production processes; it must be But the original word avatar comes from ancient Sanscrit, based ousine services, buses and subways. It also creates opportu- designed and organized around customers and experiences. This on the root words ava (descent, coming down) nities for new services. For example, Zipcar is a car-sharing is a complete inversion of the mass-production, mass-marketing and tatari (crossing over). The original mean- service that gives customers shared access to a pool of cars paradigm that will be difficult for many companies to adopt. ing is the divine made flesh; an incarnation or located throughout their city. RelayRide and Whipcar are In Evolving to a New Dominant Logic for Marketing, Stephen physical manifestation of an idea or god. In peer-to-peer services that allow car-owners to rent their car L. Vargo and Robert F. Lusch describe a new paradigm they call Hindu belief, Buddha was an avatar of the to neighbors by the hour or by the day. Uber connects a net- service-dominant logic, a fundamental shift in worldview and god Vishnu — a physical manifestation work of professional limo drivers with city dwellers, who can orientation toward marketing as a social process, where products of the deity descended to earth. Energy order a car by SMS or mobile phone app. Orders are routed are not ends in themselves but means for provisioning services, transformed into matter. to the nearest available driver, payments are automated and the customer is seen as a co-producer, and knowledge is the In the same way, a product can be driver tips included, creating a simple, easy, seamless cus- source of competitive advantage. considered as a physical manifestation of a tomer experience. In product-dominant logic, production is the core of the service or set of services: a service avatar. Cars themselves will increasingly become platforms for de- value-creation process, while customer service is a cost to be Products come with knowledge and services embedded Products aren’t just things. They are servants. livering services. In 1995 GM created OnStar, an in-car sub- minimized. But in service-dominant logic, products are the cost within them. A car is the manifestation of years of learning, “The Kindle is not a device, it’s a service” said Jeff Bezos scription service that offers turn-by-turn directions, hands-free centers, and services become the core value-creation processes. accumulated through research, crash testing, metallurgy, elec- in a recent interview. The Kindle is a physical manifestation calling, and remote diagnostics. If your car is stolen, GM can Why such a fundamental shift? trical engineering, design and a score of other disciplines, in- and extension of the services Amazon provides to its cus- track the vehicle, slow it down, or shut off the ignition remotely. Products are costly and require large investments of capital in cluding good old trial and error. And as we have seen, a car tomers; an avatar for Amazon services. On the Kindle, you But that’s just the beginning. Automakers will increasingly be R&D, factories, and manufacturing before money can be made. itself provides the service of getting you comfortably from one can go to the store, browse for stuff, read reviews, and start integrating with digital services, and cars will become platforms Products are anchors. Investments in manufacturing take place to another. reading a book, listening to music or watching a film in less for a broad array of apps and services that will help you lower time to provide returns, and during this time period customer The ratio of knowledge to matter in any product increasingly than a minute. Kindle’s service aspect becomes even more your fuel costs, stream music, avoid collisions, find parking, needs are likely to change. Investing in physical products “hard- favors knowledge. A modern car contains more computing pow- clear when you use it with more than one device. Open a notify you if friends are near, and a whole host of other things ens” the offering and reduces the company’s ability to respond er than the system that guided Apollo astronauts to the moon. Kindle book on your iPad, and the service syncs to the last we can’t yet imagine. Ford announced recently that they are and adapt to changing customer preferences. Consider the difference between a TV and a TiVo. The knowledge page you were on. It doesn’t matter what device you’re us- creating an open platform that will allow tinkerers and develop- Investing in services “softens” the offering and increases the and services embedded in a product are what gives the product ing, Kindle follows you from device to device and always ers to electronically “hot-rod” their cars. And Google is working company’s flexibility. Since costs aren’t sunk into a single product, its value. Consider an iPhone. Its value comes from the services remembers your place. on cars that will drive themselves. How’s that for a service? it’s easier to shift the offering and keep pace with their demands. it provides you: You can talk to friends, send messages to them, If a car can be a service, anything can. Like looking through a telescope the long way round, for and access a wide variety of applications, songs, books and even movies if you care to. Having an iPhone allows you to carry SERVICES ARE CO-CREATED. The majority of business growth in the coming decades — many people who have become habituated to a product orienta- new jobs and new businesses — will come from services. tion, this inversion will at first feel unnatural and uncomfortable. around a whole city’s worth of services in your pocket. The job Some people argue that the majority of services growth comes The good news is that there is huge room for improve- of the iPhone is to provision you with services. from low-wage jobs without much potential for growth. But ac- ment, and companies that dedicate themselves to improving The words we use to describe products are a dead giveaway. In a product-dominant world, value is exchanged in trans- cording to the US Bureau of Labor Statistics, job growth will services stand to make significant gains in profitability and Think about the number of product names that are essentially actions between buyers and sellers. But in a service-dominant be led by health care, followed by professional, scientific, and competitive advantage. verbs or job descriptions: world, value is co-created by companies and customers work- technical services, as well as education. According to an Accenture survey, customer satisfaction is ing together. This kind of exchange requires a relationship, declining in every area they measure, and 64% of customers PRODUCTS AS VERBS: You use an iron to iron things, a brush and the product is only an intermediate step in the value- have switched companies in the past year due to poor service. to brush things, and a bottle to bottle things. You ladle with a creation process. SERVICE-DOMINANT LOGIC. Only one in four people say they trust the companies with which ladle and hose things down with a hose. You step on a step, Value is co-created: A company can’t create value. Value is they do business. drum a drum, handle a handle and grill with a grill. When you’re only created through exchange. The customer must participate Another survey by American Express found that two thirds driving you brake with the brake, accelerate using the accelera- in defining and determining that value. That car, beautiful as it Most companies today are designed to produce high volumes of of customers have not noticed improvements in customer ser- tor and steer with the steering wheel. You mail the mail, drink may be, has value, in an economic sense, only to the degree consistent, standard outputs, with great efficiency and at low cost. vice, and that fewer than one in ten customers think compa- a drink, lock a lock and microwave things with the microwave. that a customer is willing to pay for it. The company can only Even many of today’s services industries still operate in an industrial nies are exceeding their expectations. An overwhelming ma- Cups cup things, nails nail things, and staples staple things. You create an offer, value proposition or proposal. The customer fashion. Schools efficiently produce standardized students. Hospi- jority of customers are willing to spend more to get excellent tape things together with tape. A light gives light. must accept in order to create value. The bus can make an of- tals efficiently move the sick and injured through a diagnostic-and- service, and more than half of them will switch companies to fer, but the customer still must step onto the bus for the value prescriptive production line. Drive-through restaurants move drivers get it. The same survey also found that while 40% of custom- PRODUCTS AS JOB DESCRIPTIONS: A blender’s job is to to be delivered. quickly and efficiently through an order-fulfillment pipeline. ers are willing to tell their friends about good service experi- blend things. A washer washes things and a dryer dries things. But most of these services are not really services at all. They ences, even more of them — 60% — will tell their friends The lawn mower mows the lawn. The heater heats, the boiler CO-CREATED VALUE REQUIRES A RELATIONSHIP: are factory-style processes that treat people as if they were prod- about poor service experiences. boils and the air conditioner conditions the air. In your kitchen, Products can play a role in relationships — even a key role ucts, moving through a production line. Just think of the last time It doesn’t take a genius to figure out that poor service will re- the refrigerator refrigerates and the freezer freezes. At work, the — but products can’t have relationships. The relationship be- you called a company’s “customer service line” and ask yourself sult in lost sales, and good service will result in repeat business. copier copies, the scanner scans, the printer prints and the com- tween a company and its customers develops gradually, as if you felt well-served. And for most companies, the biggest growth opportunities in the puter computes. The doorstop stops the door. Lipstick sticks to customers build trust in the company and its ability to deliver Sure, many services require some level of production efficien- coming years will come through services. your lips and eye shadow shadows your eyes. on their promises over time.
- 11. 20 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 21 The product is an intermediate step, not an end in itself: in many ways it is sold like a product. A product-dominant amount, at the right place and the right time. + EVENTS Even after a customer buys a product, they must learn how mindset says “we sell life insurance, car insurance and home- Cemex wins customers with services like 24/7 deliv- to use it, maintain it, repair it, and enjoy it. If the company owner’s insurance. Our customers come to us when they need ery, ATM-like ordering systems, education and training for is lucky, they will like it enough to tell friends about it, insurance.” But if a company can find a way to offer business customers, and construction financing. Customers can or- LONDON SHANGHAI educate others, promote it, buy additional services around partners insurance as a configurable service, a lot more op- der online and get text messages when cement is ready for AUSTIN it and so on. tions open up. delivery. Cemex will actively manage a customer’s cement A service-dominant world changes the game significantly. For example, Whipcar allows car owners to rent their car inventory, to anticipate and respond to demand in real time. Service-orientation is a fundamental shift and creates oppor- out when they are not using it. Part of the Whipcar service Cemex will provide pre-fabricated components like walls, tunities for new business strategies, new sources of competi- involves bundling car insurance along with the rental, which ceilings and basements. And if a customer so desires, Ce- NEW YORK BERLIN SYDNEY tive advantage, new ways of interacting with customers, and requires the “insurance service” be available on demand in in- mex will carefully match the color and texture of older con- new ways of organizing work. crements as small as one hour. The more networked and link- crete roads and paths. able an insurance service, the more easily it can be blended RIO SINGAPORE and bundled with Whipcar’s other services. EVERYONE IS A SERVICE. WHERE TO START. PayPal is a super-granular payment service which is easy to plug in to any ordering system. Some of PayPal’s custom- ers are so happy with the service, and so loyal, that they will not buy from merchants who don’t offer PayPal payment Where will we be over the next In a service-oriented company, it makes sense to consider service. After all, buying from another vendor is usually just every aspect of the company as a service. Managers provide This kind of change can feel overwhelming to contem- one click away. a management service. Engineers provide an engineering ser- plate. But help is at hand. vice. Designers provide a design service. Marketers provide a marketing service. We have developed a tendency to think of flows in terms In 1983, bank executive G. Lynn Shostack proposed a design tool called the service blueprint as a tool for service design. The service blueprint connects customer activities few months? of process, but services and processes are not the same. Pro- and touchpoints with a company’s “front stage” where ser- cesses are linked, linear chains of cause and effect that, when vices are provided, as well as “backstage” operations that Everywhere. Dachis Group is involved in speaking, managed carefully, drive predictable, reliable results. support and enable the front stage. participating, or sponsoring events and conferences A service is different. Processes are designed to be con- The Service Research and Innovation Institute, a non- around the globe. For speaking inquiries, send an sistent and uniform, while services are co-created with cus- profit organization initiated by IBM, was formed to lead and email to [email protected]. Service networks also thrive by making a set of comple- tomers. This difference is not superficial but fundamental. A support organizations through the massive transformations mentary services more easily available to customers. A restau- process has only one customer, the person who receives the that will be required. MAY 2012 rant does better if it’s within a short walk of a movie theater final result. A process is rule-bound and tightly regulated. The The Consortium for Service Innovation is a non-profit al- • 9th: Dachis Group Social Business Summit in Rio de and shopping. Customers tend to like convenient clusters of quality of a process’s output can be judged by the customer liance of organizations focused primarily on facing the chal- Janeiro, Brazil. The Social Business Summit is by invita- services. For example, it’s nice if you can go grocery shop- at the end of the line. lenges of customer support services. tion only. If you’re interested in attending, email sbs@ ping, drop off your laundry and get a coffee in a single stop or On the practitioner side, the Service Design Network was dachisgroup.com, and include your location preference, within a short distance. formed in 2004 as an international network of service de- your name, company name, and job title. We’ll let you sign professionals, with the purpose of strengthening and know when invitations become available. developing service innovation practices. Their peer-reviewed MAKING CHANGE HAPPEN. publication, Touchpoint, is an excellent resource for service • 23rd: Dachis Group Social Business Summit design thinking. in Berlin, Germany. The Social Business Council is a peer-to-peer member- • 31st: Dachis Group Social Business Strategy Summit The biggest impediment to service innovation is not a lack ship organization of business professionals that are directly in London, England. Dachis Group London Managing of ideas. It’s the inability of companies to deliver them the way involved in planning, leading and executing social business Director Lee Bryant will be speak. This event will bring they are currently structured. Service designer Ben Reason transformation initiatives. together the most influential thought leaders and leading A service is at its core a relationship between server and notes that “coming up with innovative services is easy. What’s Although the cogs and gears are still turning in many large analysts from the world of social business. The aim is to served. Service is work performed in support of another. At hard is getting companies to adapt.” companies, it is the result of momentum, not progress. The help you discover how you can apply social media to all every point of interaction, the measure of success is not a Industrial one-way mass-production logic must give way to industrial economy is fueling new growth in some parts of aspects of your enterprise to drive internal collaboration, product but the satisfaction, delight or disappointment of the more reciprocal service logic before progress can be made. the world, but it is leaving the US and Europe, and it’s not engage in social CRM and support your social transition. the customer. This is so exceedingly difficult that not many companies have coming back. The time to change is not some day in the successfully made the transition. It involves changing not only future, when you have reached a crisis of GM, Kodak, or JUNE 2012 org structure but the company’s dominant culture and logic, Greek proportions. The time to change is now, while you • 21st: Dachis Group Social Business Summit a herculean task. still have the financial resources to change assertively and in London, England. SERVICE NETWORKS. But change is possible. proactively. n IBM and GE led the way, with major organizational trans- JULY 2012 formations in the 1980s and 1990s. IBM famously divested Dave Gray is Senior Vice President, Strategy at Dachis • 24th: KM Australia in Sydney. Topics will include social its last manufacturing operations in 2005 by selling its laptop Group. His new book, The Connected Company, will be re- media, communication & collaboration, change manage- As if change wasn’t already difficult enough, service orien- division to Chinese company Lenovo, and more than half of leased by O’Reilly later this year. ment, content & information management, organizational tation for many companies will require a whole new approach GE’s profits come from services today. capability, eLearning and more. Dachis Group Senior to business partnerships. Consider Cemex, a global cement company. What could be Read the original blog post and ensuing Consultant James Dellow will present. Because services map to increasingly demanding customer more industrial-age than cement? Cement is clearly a product, conversation at dach.is/vWTu5d. • 26th: Dachis Group Social Business Summit preferences, companies must find ways to make them more not a service. And perhaps the most obvious way for a cement in Singapore. granular, as well as easier to bundle with other services. Cus- company to compete is on price. But to customers, cement tomers want services to be convenient for them, not for you. is only one aspect of a larger project. Customers don’t just Consider insurance. Even though insurance is a service, For more info and up-to-date lists visit dachisgroup.com/ care about cement, they want the right cement, in the right events and socialbusinesssummit.com.
- 12. 22 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 23 + W H I T E PA P E R E X C E R P T: T H E T W I T T E R P L A Y B O O K THE TWITTER PLAYBOOK FOR MARKETERS by Brian Kotlyar ILLUSTRATIONS by DAVID VORDTRIEDE with Noah Macmillan This pra ctical gu tells mark ide everythin g there is eters about launch to know ing, managing, and measuring your efforts on Twit ter. Here’s a free chapter. CHAPTER 5: Earned opportunities T he vision for Twitter is to become “the best way to discover what’s new in your world” and Twitter’s mission is to “instantly connect people everywhere to what’s most important to them.” When you think about what this means for a brand trying to maximize Twitter as a marketing platform some interesting questions are raised: · How can my company align itself with what is new and important to Twitter users in order to successfully achieve my marketing objectives? · How will I organize to operate at the speed of Twitter? · What should my marketing objectives be in the context of such a real-time and participatory medium? · How will I know if I have achieved them? The Twitter Playbook for Marketers answers these questions and many more. Let’s get started.
- 13. 24 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 25 THE TWITTER PLAYBOOK 2. NAMING YOUR ACCOUNT 2.6 Claiming Your Twitter handle can be claimed by registering your unique name and related email address and or mobile 2.1 Twitter handle number. In a perfect world you will be able to claim your Starting your Twitter presence desired name(s) to suit the needs of your brand or com- is a quick process and well out- CHAPTER 5: EARNED OPPORTUNITIES pany. Although it is important to establish your name(s) lined in Twitter Help at support. early, you can change your account name at any time twitter.com/groups/31-twitter-basics/ should you encounter any obstacles to your plans. P topics/104-welcome-to-twitter-support/ revious chapters covered brand conversations, sentiment, and articles/100990-how-to-sign-up-on-twitter. 2.7 Verifying influencers. Now it’s time to join the conversation and start to You will likely be challenged with the identity, brand- ing and corporate requirements about your new image Verification is the only way that users know for sure and without a doubt that a Twitter handle belongs to participate. In this section we’ll discuss foundational elements and presence. Consider these elements when selecting your Twitter handle. your brand. As such, it is critical that if you can get your essential to effective brand participation. These are: Defining your channel verified you do so as quickly as possible. Verifi- cation of Twitter accounts occurs on a case-by-case ba- 2.2 Start with the name of your company purpose, Naming your account, Favorites and Follows, Standing It is critical that you retain the name of your company sis and is managed through your brand’s Twitter Account Representative. Contact your representative to place your out from the noise, and Twitter for websites. as your Twitter handle. If it is not already in your posses- sion, then attempt to register it. If it is taken, then follow verification request. More information is available here: support.twitter. the steps in the “Recovering your Twitter name” section com/articles/119135-about-verified-accounts. below to gain control. 1. DEFINING YOUR PURPOSE 2.8 Recovering names 2.3 Evergreen or campaign focused? It happens sometimes that a brand’s preferred Twitter Evergreen Twitter handles are a superior choice to Every account needs a goal. You will need to choose from one of three primary campaign focused ones. Campaign channels are hard to name has been taken by another Twitter user. Accounts that impersonate brands, famous people and fictional Twitter use cases and then align your channel strategy accordingly. Your choices maintain over time and often result in orphaned groups characters are launched on what seems like an hourly of followers split across accounts. If an audience is split are: Communications, Commerce, or Service. among many accounts it can be difficult to reach the criti- basis. Brands are limited in their options for handling false accounts without triggering significant consumer cal mass necessary for effective use of Promoted Products. backlash. It is often best to simply monitor the existence A more effective approach is to build campaign-oriented of these phony channels without taking action. In the flexibility into the charter of an evergreen channel. event that a channel gains a large following for a sus- tained period of time or begins to engage in truly slander- 2.4 Length of handle ous or brand-damaging behavior, then it may be time to Handle names also have constraints and are limited to trigger legal action. The safest course of action most of 15 characters. Remember that the name of the handle the time is simple: wait until they get bored. The excep- has to be included in every subsequent conversation for tion to this approach is around trademark enforcement the life of the account. It is critical that the name is recog- and is discussed further below. nizable, authoritative and short. If it is absolutely necessary to reclaim a Twitter handle for reasons of brand risk or trademark infringement then · @ACME is better than @American_Company_that_ there are a few options: 1.1 Communications 1.2 Commerce 1.3 Service Makes_Everything Marketing your brand: Selling your products: Customer service issues: 2.9 Negotiation Extend your brand voice in a consis- Twitter offers direct access to your Twitter enables you to engage If multiple channels are in place, then it often helps to In scenarios where the impostor has a legitimate claim tent way that encourages valuable most influential customers to drive existing or potential customers explain the function of the channel in the name. to a Twitter handle the brand needs, then it can be effec- outcomes like message amplification, commerce actions either offline or in with direct communication tive to request control of the handle from that user. Twitter increased awareness or consideration. existing brand e-commerce spaces. to start the resolution process. · @ACMESupport is better than @ACMEHelpers prohibits the purchase and sale of Twitter handles, but it may be possible to negotiate for control of the name. 2.5 Branding From a branding perspective the most important thing 2.10 Trademarks Most brands want to achieve all three, but not every brand’s existing Twitter is that the name be instantly associated with the brand or Brands vigorously defend their trade- audience will be appropriate for these kinds of activities. You will need to balance campaign for which it is chartered. marks in all avenues and Twitter is no the needs of your brand with the interests of your Twitter customer base. · Target is @Target different. Most trademark infringement · Dell deals is @DellDeals will become apparent as the brand’s so- Once you have selected your areas of focus, start to consider what to name your · Citi customer service is @AskCiti phistication in listening increases. Twitter account...
- 14. 26 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 27 When trademark infringement is detected: first, con- 2.2 To follow or not to follow? 4.1 Top Tweets It is also possible to take advantage of existing Top Trend tact your Legal stakeholders and review your options for Large brands have a tendency to either follow every Definition: Top Tweets are algorithmically selected conversations by identifying Top Trends relevant to the resolution at support.twitter.com/articles/18367-trade- Twitter user they encounter or ignore anyone that isn’t Tweets from across the entire Twitter platform. The pri- brand and participating actively in that topic. This places mark-policy. If you determine to proceed, then submit clearly influential and ‘brand appropriate.’ This will some- mary driver of selection is resonance. Additional factors the brand’s Tweets in the midst of the conversation and the following information to support.twitter.com/forms/ times result in skewed follow counts. There are three rea- are inclusion of link, image or video. Top Tweets are very wins attention from users that are following that trend. Al- trademark. sons to worry about how many individuals follow your prominently displayed on the twitter.com search interface. though the potential novelty of this approach may be ac- brand and how many users you follow back. Marketing value: Top Tweets are a powerful tool for ceptable in humorous trends, it also does have the potential · Username of the reported account massively boosting impressions of a particular Tweet. The to cause brand reputation issues. Capitalizing on breaking · Your company name · Direct messaging (particularly in service scenarios) is additional exposure drives traffic to any content linked in news or information driven trends is a particular challenge · Your company Twitter account a critical tool for customer relations that can be restrictive the Tweet and also helps accounts grow their follower base. if the brand is not an established authority on the topic. · Company website if there is not reciprocal following. Top Trends can change rapidly and rarely are sustained · Your trademarked word, symbol, etc. · Twitter users tend to appreciate when a brand fol- 4.2 How to get “Top Tweeted” for a full day. · Trademark registration number lows them back. This is most effective when that user has Top Tweets are determined by an algorithm that ag- Geographically, Top Trends start locally and have the · Trademark registration office already followed or otherwise interacted with the brand. gregates and weights all user interactions (e.g. shares, potential to spread nationally or expand Worldwide. Unsolicited or ‘cold’ follows are not always as welcome. Retweets, clicks etc.) with any given individual Tweet. 2.11 Use of personal handles · The ‘Who to Follow’ algorithm (discussed below) This aggregated score is called “Velocity.” Velocity is a 4.5 Who to Follow Many brands have gotten their start (particularly from does not approve of accounts with highly asymmetrical measure of the attention and interaction conferred on Definition: Who to Follow are a series a service perspective) with a lone Twitter user re-purpos- follower ratios. any given Tweet. When a Tweet exceeds the ‘expected of suggestions that a user sees when ing a personal handle to suit their work. Your brand may velocity’ for a given user account, it enters the running to logged into twitter.com. These sugges- have even started this way. While common, this approach As a general rule, you will be rewarded for partici- become featured as a Top Tweet. tions focus on accounts that the Twit- to Twitter is not ideal for a brand’s primary channels and pating in Twitter through following your engaged audi- In practice, this means a successful Tweet should succeed ter algorithm believes a particular user most companies have moved away from allowing employ- ence. The reciprocal connection contributes to your in drawing the interest of existing Twitter followers, but also ought to follow and/or interact with. ees to use personal handles for company business except organic appearance in the “Who to Follow” recom- maintain appeal as it moves across the network to individu- The algorithm determines who they ought in very specific circumstances. The reasons against this mendations and will position your account as worthy als who do not follow the brand account. If readers of the to follow based on who the user already follows and other approach are simple: of algorithmic promotion. Tweet engage with it at an unusually high rate this indicates factors. The most powerful aspect of this Twitter feature to the algorithm that the Tweet might be of broad interest at is a “Follow” call to action which can drive free follow · It is possible to achieve an ‘authentic’ voice without 3.3 To favorite or not to favorite? that moment and puts it into the Top Tweet category. acquisition or a variety of other secondary options for the using personal handles Twitter’s “favorite” functionality is an under-utilized Typical Top Tweets are some combination of the fol- user to engage with the brand. · If an employee leaves the company do you really tool for driving earned engagement. The primary benefits lowing: funny, touching, informative, surprising, outra- These suggestions appear in a few different areas: twit- want them taking the brand’s Twitter following with them? of “favoriting” a piece of user content are: geous or shared by a really famous person. ter.com sometimes has a small sidebar of “Who to fol- · Monitoring a large number of active personal Twitter low” in the left column. accounts is extremely challenging and introduces an · The opportunity to make a customer or prospect feel 4.3 Top Trends An expanded Who to Follow area offers additional user unacceptable level of risk for most brands Definition: Top Trends are algo- referrals. In this area suggested accounts are divided into recognized for a piece of content that the brand chooses rithmically selected categories of three areas of discovery: Suggestions, Topics and Friends. to favorite. The exception to this rule is scenarios where brands Tweets grouped together by keyword · The opportunity to organically insert the brand into a have established a tiered approach to Twitter participa- or the “#” category (e.g. #justin- · “Suggestions” offers an expanded list of accounts to user’s activity stream and thus gain free impressions and tion. At the top of the pyramid are branded and owned bieber, #rihanna, #sh*tmydadsays) follow. mindshare. Twitter accounts (i.e., @BestBuy) and through certifica- and displayed prominently for all twitter.com · “Topics” filters accounts by a limited selection of tion and governance a pyramid is created where addition- and third party Twitter clients. topics primarily focused on sports, entertainment, news, You should not hesitate to favorite content that pres- al branded employee accounts are safely enabled (i.e., Marketing value: Top Trends are a powerful tool for business, charity, music and other lifestyle or information ents your brand in a positive light or is otherwise worthy of @SteveatBestBuy) and ultimately just employee ac- bringing a topic of interest to a sub-culture of Twitter users categories. brand promotion. This will create a stronger connection to counts (i.e, @Steve). The same individual (Steve) may into the consciousness of the broader Twitter user base. For · “Find Friends” enables users to search contacts in other your engaged audience as well as offer more opportunities be managing each of these accounts, however the role of example, an event with a broad but not ubiquitous cultural platforms to surface Twitter handles. Search is available in to position yourself organically in user feeds. the account in the Twitter strategy of the company varies. influence like MTV’s Video Music Awards or SXSW can Gmail, Yahoo, Hotmail/Messenger, AOL and LinkedIn. dominate the Top Trends and thereby win mindshare and attention for the event with otherwise disengaged users. Marketing value: Suggestions for You helps promote growth of a brand’s Twitter account by linking it to similar 3. MASTERING FOLLOWS & FAVORITES 4. STANDING OUT FROM THE NOISE 4.4 How to get “Top Trended” accounts and raising its profile among users interested in The key to becoming a Top Trend is to activate a signif- the subject area of that account. Twitter has created tools to aid consumers in navi- icant sub-culture within Twitter to rally around a particu- 3.1 How to approach Follows and Favorites gating the huge flow of information across their net- lar “#” topic rapidly and simultaneously in a geography 4.6 How to get “Suggested” Many brands struggle with Follow and work. These tools are a boon to consumers, but more during a fixed time period. It is difficult to become a “Suggested” account on a broad Favorites, but there are significant earned importantly are a powerful source of earned media in In practice, this means either establishing a timely con- basis organically, however it is possible to align a Twitter ac- media opportunities that you can influ- the hands of social marketers. The tools (Top Tweets, versation with the potential to capture the imagination of count’s behaviors with those of a more established account ence through the correct application of Top Trends, Who to Follow, Twitter Lists) are explored a broad base of Twitter users or to tie into a real-world and encourage the algorithm to associate the two accounts. these Twitter features. further below. event or concept that has already done so. To do this: select a model account. Follow users who
- 15. 28 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 29 already follow the model account. At the same time entice cover them and choose to associate them with other 5.1 Tweet button rapidly and with a user effort. This is accomplished by users that follow the model account to follow you. Do so similar accounts. It is possible to artificially spur this How it works: The Tweet button is a great way to positioning Twitter buttons in visible places on your most by following and conversing with the target users. growth by contacting Twitter users that maintain pop- begin optimizing your website for Twitter. It is an off- trafficked visible assets thereby driving organic growth ular and/or pertinent lists and requesting to be added the-shelf button that can be embedded in your website of your Twitter accounts. Leading video sites have seen 4.7 Lists to the list. this work successfully. They report a 70% increase in alongside content that users may want to share. When Definition: Lists are a tool that Twitter provides Replies, 131% increase in Retweets and 150% increase clicked, a new window appears with suggested Tweet which lets individuals curate different groups of Twitter in Favorites when the Follow button is deployed. copy (provided by the brand) which the user can cus- users by self-defined categories (e.g., celebrities, NBA tomize and then share with their Twitter followers. players or companies on Twitter). Marketing value: Being listed is a 5. OPTIMIZING WEBSITES Marketing value: The purpose of the Tweet button 5.3 Web Intents mechanism for staying top of mind & LANDING PAGES is to increase content distribution and grow traffic ex- changed between your website and Twitter accounts. This How it works: Web Intents provide off platform access to some of the most important actions that Twitter users with a particular consumer and Twitter provides a series of but- is an ideal way to extract additional value from content can do on twitter.com. These actions are: Tweet, Reply, also a great method of becoming tons and accompanying APIs to and promotions you house within your website. For ex- Retweet, Favorite and Follow. associated with other similar Twit- enable easy creation and optimi- ample, Quora.com receives roughly 30 clicks for every Marketing value: With Web Intents you can make it ter accounts. Each of these helps zation of digital assets for Twit- Tweet that comes from their site using the Tweet button. possible for users to interact with Twitter content in the grow the influence of an account and also ter. These are designed to make it context of your site, without leaving the page or having to has the potential to increase the reach of an easier for marketers to grow their 5.2 Follow button authorize a new app just for the interaction. This means account’s messaging. All other Twitter users can view accounts using off-Twitter proper- How it works: Like the Tweet button, the Follow but- you can build customized Twitter-like experiences with- and subscribe to other users’ public lists. This means ties as well as rapidly transmit con- tent into ton is where many brands begin their Twitter website in the confines of your digital assets. This means users that some highly prominent lists can be a short- and across Twitter. optimization. The Follow button is an off-the-shelf com- can interact with Twitter while remaining inside of a fully cut to reaching a very significant Twitter audience. There are three pieces of technology that Twitter ponent that can be embedded in a digital asset. When branded site with calls to action and design treatments Additionally, Lists offer an additional engagement provides for website and landing page optimization. clicked the button will automatically add you to that fully under your control. A typical example of what is pos- point for your customers to engage with you to boost These are: Tweet button, Follow button and Web user’s followed accounts. sible can be viewed on the HBO Game of Thrones website your resonance. intents. We will review these in brief below. There Marketing value: The purpose of the Follow button is at: connect.hbo.com/vizualizer/game-thrones. n is a great deal of additional information and 4.8 How to get Listed documentation available at: dev.twitter.com/docs/ to help you build an audience for your Twitter account Brian Kotlyar is a Consultant in the Austin office. Twitter users will add accounts to lists as they dis- twitter-for-websites. + SIDEBAR: THE CUSTOMER 5 ways to take on social customer service also set, creating enjoyable interactions and giving employees targets to strive for beyond skill growth. For example, defin- more quickly — providing even more service avenues for the customer. service efforts, your vision needs to extend past real-time support. People don’t scale on their own: How will you augment customer by Cynthia Pflaum We recently undertook a client engage- and then direct the discussion based on ing an initial response time goal ensures 4. Create personal and genuine interac- service’s expertise and successful one-on- ILLUSTRATIONS by Noah MacMillan ment where we worked through these the customer’s responses. While one of customers are treated equally regardless tions through brand voice. Regardless one interactions with customers? Continuous disruptions. The key to conquering these the most difficult concepts to master, of the complaint they surface. of the platform, tone and brand nuances program management plays a key role here: S ocial customer service shatters the structured nature of call center opera- tions. Complaints received at all hours. challenges? Recognizing the importance of serving customers where they demand public problem acknowledgement takes the pressure off the representative and 3. Accelerate skill building through factor into how customer recognizes and engages with service representatives. We defining strategy, shepherding internal com- munications, aligning key resources, and service. Here are a few ways that helped comforts the customer. coaching. Scaling the service process empower representatives to use their own ensuring service interactions don’t suffer a Product issues resolved in public. Reso- us broker the transition from traditional to requires more than simply managing voice as long as it taps into brand style quality fail once the program expands. lution expected instantly. Service vol- emerging channel support: 2. Provide a consistent experience additional communications between the guidelines appropriately. These contribu- No company launches social cus- umes unpredictable — at least initially. through enforcing workflow and service company and customer. Engagement and tions connect representatives directly to tomer service with all of these pieces One customer criticism quickly spirals 1. Develop a conversational approach levels. A few years ago, companies service content creation are long-term the program’s success and help maintain perfectly in place. You must start strong into ten, as other customers also take the to mirror phone support. The urge to assigned an expert to their Facebook responsibilities. That’s why we grow the that connection as the social customer with a few capabilities, and build as you opportunity to voice their dissatisfaction. ask a series of 10 questions, like typical pages to resolve distracting complaints. foundation of these skills through specific service strategy scales. go. Until then, questions will continue The company is under fire — without phone support, is quickly thwarted by Today, we create sustainable operations feedback and scheduled review sessions. to fill your Facebook and Twitter pres- any way to mend customer relationships character limits and customer time con- — through process — that guide issue These investments typically pay off in 5. Establish dedicated program manage- ences; distracting prospects and custom- and stop the discussion from advancing straints. We urge service participants to resolution regardless of social platform. associate performance and allow people ment to ensure scalable growth. To real- ers from your other social initiatives and further. How should it respond? focus on the critical details of a comment Goals for the customer experience are to take on additional service assignments ize business impact from social customer threatening your brand’s reputation. n R Joe I need Help!! 5 @Co. 2 ? wrong 4 Co. Yikes! what’s 3 1 @Joe
- 16. 30 + B O O K E X C E R P T: ‘ S O C I A L B U S I N E S S B Y D E S I G N ’ THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 31 ‘Social Business By Design’ DROPS May 1, 2012 by Jossey-Bass. SOCIAL ENTERPRIsE THE SOCIAL ENTERPRISE This excerpt is chapter 5: How will business make the transition? You can learn more about the book and pre-order it here: dach.is/sbdbook. by DION HINCHCLIFFE & PETER KIM · XPLANATiON by chris roettger & ZOË SCHARF S ocial, cultural, and technological trends are transforming every business environment. Executives must understand how to create and capture val- ue from current changes in the market to foster competitive advantage and solidify customer relationships. Getting started requires an understanding of the elements of social business and how they differ from legacy market approaches. The shift in control from institutions to communities is underway, driven by the availability of data, affordable technology, and more efficient operating models. Harnessing these trends and pivoting an enterprise is easier said than done, but HARNESSING BIG PEER PRODUCTION SOCIAL STRUCTURES SELF-SERVICING OPEN SUPPLY CHAINS DYNAMICALLY ADAPT COMMUNITY DATA DRIVES CREATION HELP SELF ORGANIZE MARKET NICHES ARE BASE OF GROWTH & RAPIDLY RESPOND examples of next-generation business have emerged to learn from. Successful businesses Peer feedback is the Social internal Consumers that Cloud- and Rapid, unpredictable will be those that most efficient and structures are the interact with ecosystem-based communities require have the richest, most valuable source for best means of their own product open supply chains the ability to up-to-date data driving business governing and achieve the highest are the basis of dynamically adapt Reprinted by permission of the publisher, John Wiley FACTORS DRIVING THE & Sons, Inc., from Social Business By Design: sources & market dominance. decisions. building community- based relationships. economic scale. growth and agility. and quickly respond to current needs. GLOBAL MARKETPLACE CHANGE Transformative Social Media Strategies for the Connected Company by Dion Hinchcliffe and Peter Kim. ©2012 by Dion Hinchcliffe and Peter Kim. All rights reserved. Conversation is no longer in the past; it’s in the present and even the future. Companies can not only track what people have done, but can ascertain what they will do. INFORMATION GLOBAL MARKET NETWORKS INFORMATION FLOWS DISCONTINUITY CUSTOMER & PARTNER COMMUNITY 20TH CENTURY 21ST CENTURY Resource abundance Resource constraints SOCIAL Value in transactions Value in relationships COMPUTING MOVING the Business stability Business flux MARKETPLACE Well-defined industries One-way markets Industry transformation Two-way markets Limited information Information abundance TRADITIONAL BUSINESS MODEL POTHOLES the GLOBAL MARKETPLACE INSTITUTIONS the COMMUNITY POOR GRASP RIGID DISCONNECTED UNRESPONSIVE STORED DATA IS SYSTEM IS SLOW OF BIG DATA SUPPLY CHAIN INTERNAL STRUCTURE PRODUCT OFFERING PRIVATE & CLOSED OR UNABLE TO ADAPT
- 17. 32 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 33 organizations are willing to accept. some certainly more than others, software industry has been dra- resource: human brain cycles.” 3 In tory barriers and rethinking how The shifts of control required by particularly marketing, customer matically affected by open source response, they pivoted the reCAPT- business gets done. SOCIAL ENTERPRIsE social business are challenging: how we communicate (from point-to- care, and HR. One response that occurs frequently is serious discus- (software peer produced by global communities). Other industries are CHA service to tap into a huge reservoir of highly cost-effective Traditional businesses point to social), how we organize sion about “putting the genie back lining up for similar disruptions, labor to tackle enormous problems. must face off new social I t’s far easier for small and (hierarchies to communities), how into the bottle” and reverting to including most industries involved Turning individual work into collec- medium-sized companies to we create (central output to peer old models for working, collabo- in services and knowledge work tive productivity, the system started businesses change the way that they work. output), and where value comes from rating, and producing work. One that can be recast in social busi- using images from failed optical Emerging new institutions — The methods through which they (hierarchies to networks). of the most famous examples of ness terms. In the near term, these character recognition jobs in its social businesses — will look very interact and stay connected to the The old question about the in- this was when newspaper magnate include financial services, educa- human verification tests (the text different from the organizations we marketplace and their customers novator’s dilemma has become more Rupert Murdoch decided to ignore tion, information services, consult- displayed is actually scanned from a have today. They will derive power are easier to change when there are urgent as the new business landscape new Internet business models and ing, and most administration and printed source). and value from deep integration into fewer constraints. In contrast, large looks increasingly unfamiliar: we require that many of his news outlets government. Longer term, social reCAPTCHA subsequently went the lives of both the people and busi- companies are challenged when now live in an age where historically charge for access to their websites, business will transform most hu- on to digitize over a century of nesses that they touch upon, not from making the transition to social busi- scarce resources are now abundantly despite the fact that companies like man activity. Ultimately, everything newspaper and print archives from a large centralized market presence. ness, having to deal with change on available — at least on the network Google were much more successful that can be social will be social. the New York Times and plans to Think of reCAPTCHA as the 21st a larger scale. People are the primary — in seemingly unlimited quantities in monetizing in entirely new ways accomplish far more going for- century organization: Deeply net- element of any successful business (e.g. new ideas, existing knowledge, with advertising and other indirect Next-generation business: ward.4 Businesses that employ OCR worked to millions of partners, highly participative by enlisting millions of transformation and changing people and productive capacity, and access fees.1 Those industry directly in the Open, social, self-service correction staff and compete with is notoriously difficult. Thus the to an organization’s customers and firing line of social media, including this service are at primary risk for participants, and both delivering and How then do businesses cross the larger the business, the greater the competitors). Conversely, what was Hollywood and virtually all media disruption if they don’t change their providing value in a very integrated divide between the traditional busi- difficulty encountered. formerly abundant is now scarce (e.g. are exposed to profound disruption, methods. This seemingly limit- and profoundly connected way. ness era and the social business era? The ongoing and seemingly inexo- broad demand for big ticket, high such as when Amazon decided in An example of how foreign yet novel less and free source of mental and rable decline of a traditional industry margin, low volume products and 2011 to directly connect authors with these new ways of doing business physical effort (both recognition What does Social Business and keying) has been harnessed by consist of ? reCAPTCHA at virtually no cost. A social business consists of three The service taps into community unique and critical aspects: 1) It creates A vast legacy landscape of existing output — the community of all and delivers most of its value over the Web users. ReCAPTCHA doesn’t network, usually indirectly (i.e. not actually control its own product; centralized production, but via peer business models, customer needs, their partners that use their badge production), 2) it consists of a loosely do, thereby contributing their users coupled entity of partners comprised of — usually very large number of — customers and suppliers who have as learned behaviors, and instilled You can pre-order Social Business much control over outcomes as any other part of the business, and 3) it has effective strategies to take advantage culture must be overcome. by Design here: of the new balance of abundance and dach.is/sbdbook. scarcity, along with greatly reduced dependencies on the old balance. Social business models and operat- ing structures are tuned to operate such as old media continues to be services in the form of large adver- its global online publishing network, will be is the story of reCAPTCHA. and delivering shared benefit to all smoothly using the post-Great Reces- a canonical example of what hap- tisers, big corporate customers, and cutting out publishers and editors This service puts brief, hard-to-read involved. This loosely shared coop- sion resource-and-demand landscape. pens when the ground rules change anything else.) Business has become altogether.2 Responses like these are text snippets on forms in Web sites erative partnering via the network is Self-organizing peer production in an industry fundamentally unable increasingly fine-grained, scaled, and near-desperate attempts from fading so that users can prove that they are a simple yet powerful example of the is the motive force, network effects to adapt to new market conditions. oriented around mass customization industries deeply impacted by chang- really humans and not spammers or enormous scale and value possible are the new market share, and social In this chapter we’ll explore some as opposed to traditional scaling of es in wrought by the digital revolu- bots. The service was designed to with social business models. power structures are what drive busi- of the more traditional limitations one-size-fits-all. tion. They are usually misguided and process the several hundred million In the social business era, suc- nesses forward, becoming perpetuat- that virtually all organizations face, Businesses frequently remain short-sighted while also insufficiently online verification forms that are cessful organizations will be open to ing communities of self-interested, as they realize they have to literally very uncomfortable about explor- imaginative. These periodic debates filled out each day around the Web. participation, tapping into far-flung like-minded individuals. “blow up” what are often hallowed ing the future in such an uncertain also show us the future of social busi- The creators of the product soon communities and social networks Putting aside for now the le- processes, traditions, and internal and rapidly changing landscape. The ness and the need for effective vision realized they had unintentionally to accomplish work in larger scales gal, societal, and cultural impacts institutions. The resulting so-called feedback cycles of social media are and transformation. “created a system that was fritter- than they ever imagined before. This and challenges of all this (barriers “new normal” has begun to seem relentlessly real-time, affecting every Old media has been deeply ing away, in ten-second increments, requires overcoming organizational, explaining why the transformation to more and more foreign than most major business function, though impacted by social media, and the millions of hours of a most precious cultural, structural, legal, and regula- social business has taken so long, de-
- 18. 34 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 35 spite the Internet having existed for decades), let’s focus on the business side. The new business landscape will Ultimately, everything workforces or centralized business infrastructure, are constrained. On the output side, abundance is or transformed into new ones (for example, traditional software compa- nies moving to SaaS and cloud com- business operates organizationally and is the hallmark of social business. This new addition changes the dy- that can be social will still take a half decade or more to increasingly produced in such great puting, or the rise of crowdsourcing namics of where useful information arrive and these drivers explain how quantities that it would overshadow competing with outsourcing at the comes from, how decisions are made markets will get there: shortcomings in the business side. low end.) Today’s dynamic Web-driv- in an organization, and how more be social. 8. Sustainable value moving from en global knowledge flows and agile autonomy and self-determination The value drivers business transactions to relation- online models for computing and col- will be needed — and tolerated — in ships. This represents the growing re- laboration — as well as economic and modern organizations to meet more of social businesses intellectual production — are now a dynamic and changing global work- alization that the traditional rote busi- 1. Strategic control over peer- significant change agent. places comprised of communities ness transaction as the core source of produced community data drives instead of traditional employees. drive forward business activities and aspect of social media, change will be organizational value is diminishing. 10. Moving from change as the market dominance. The real, irre- objectives. The commercial and com- more rapid and unpredictable since Value now comes from relationship exception to change as the norm. Putting all of the concepts that placeable value of the social business munity motivations that have made it will often be led on the community dynamics. As such, it’s more impor- The world is already seeing faster have been presented here so far to- economy is high-value information. open source software so successful as side. People in social business ecosys- tant to have community capacity to consumer behavior shifts, quicker gether into a strategic plan to redesign It is the currency of the realm on the a productive model based on social tems will make decisions and change create on-demand that it is to actually pricing changes, more rapid product an organization can seem a daunting network, which will always route to power structures serve as a powerful course, affecting businesses and cus- have stocks of inventory or knowl- cycles, and faster media feedback task. There are multiple competing the best source. Only the richest and examples of how this is taking place. tomers much faster than traditional edge, which quickly age and become loops. While this can also lead to more forces for change today and a vast most up-to-date data sources will Many others are presented here in business models. Success requires irrelevant. It’s the relationships and extreme market conditions, it also legacy landscape of existing business have market dominance and they this book. With the adoption of designing for low levels of central their ability to produce what’s needed enables opportunities to be turned models, customer needs, learned will have inordinate market power as social business, a full range of social control and enabling highly fluid in the moment that matter more in a into bottom-line impact for organiza- behaviors, and instilled culture that well. 20th century companies greatly business models will be involved, evolution and development based on fast-moving, real-time marketplace. tions that can adapt to market realities must be overcome. Fortunately, a undervalue and under-exploit their from internal social collaboration to near real-time market feedback. This has many implications including quickly enough. The network is the large amount of the early transition to vast data assets today. Social busi- customer care communities. using new management methods (ex- culprit (and solution) for much of this. social business is not only incremental nesses can’t and don’t. They relent- 6. This paints a high-level picture ample: from top down command-and- We now have pervasive social media but naturally complements what most lessly use it to their advantage, as a 4. Mass self-servicing of market of how the business landscape is control to community curator and fa- instantly transmitting and shaping cul- organizations are already doing today high-value revenue stream, monetiz- niches achieves the highest eco- transforming in a generational cilitator), tapping into new reservoirs tural phenomenon and faster financial with their early forays into social ing it in ways their communities and nomic scale. Social businesses will way over the next decade or so. of innovation, adopting new ways of cause-and-effect in the markets, real- media. Whether it’s social marketing, their own organizations benefit from. enable self-service as their primary However, for some protected and interacting with customers, or driving time online markets, and so on. In the social CRM, social collaboration, or 2. Peer production as the most means of interaction with the market, highly regulated industries, it may better tacit interactions. The tenets of 21st century, following a plan is increas- social product development, getting efficient and richest source of whether integrating with open data take longer than expected. There are social business will ultimately enable ingly less important than responding started is not the big challenge. The value creation. Centralized produc- or letting customers and partners dis- macro trends that also affect how organizations to accumulate deep actively and effectively to change. real challenge is acting strategically tion is inefficient and less optimal tribute their functionality to the far social businesses will either emerge reservoirs of relationship capital. enough to matter. corners of the world. Google’s indus- from the successful transformations 11. A shift of control to the edge compared to social business meth- Section 1 of the book presents a try leading AdWords service is a great of existing organizations, or grow 9. Industries in flux with new of organizations. This has been ods. When you can tap into the vast number of successful social business example of this, offering incredibly as successful startups. These macro ones emerging. Previously stable accurately predicted at least as far capabilities of the global populace for case studies that illuminate key strat- detailed control of to a wide spectrum trends will have direct impact on industries, such as finance and media, back as the Cluetrain Manifesto, which mutual benefit, delivering it through egies, as well as the proposition that of customer types, all without human how successful an existing organiza- are feeling the pinch the strongest, said that because of a direct result of a central production route is just organizations will ultimately have to intervention on the customer-side. tion will be as it tries to become a but most others will be disrupted the user-shaped Internet, “markets non-competitive for most purposes. change in order to transform in very social business by design. as well. The Great Recession has are getting smarter — and getting Networked resources on the network 5. Cloud and ecosystem-based meaningful ways how they engage created a bigger gap between healthy smarter faster than companies”. 5 It’s will almost always greatly outnumber open supply chains as the basis 7. New resource constraints. the marketplace, produce output, and unhealthy businesses, while not even really a shift, it’s more of an whatever classical business processes of growth and agility. The social Today’s economic baselines (e.g. generate revenue, and even define many industries are being unbundled addition of a new dimension to how can bring to bear. The traditional business will literally be distributed the Great Recession, green business their very existence. In other chap- means of enlisting contribution along the edge of the network, be- models, peer production) require ters, we take a much more detailed (employment) won’t work, something coming both a volume supplier and organizations to find new ways of look at the specific techniques of new will be required. a consumer of others best-of-breed accomplishing goals using fewer Footnotes social business, how they are effec- 3. Social power structures as services. Social business will build resources. This includes identifying 1 Jarvis, J. “Rupert Murdoch’s pathetic paywall”. The Guardian. [http://www.guardian.co.uk/ tively used, and how to be successful the means of self-organizing and upon other best-of-class and trust- the means to capture opportunity commentisfree/2010/mar/26/rupert-murdoch-pathetic-paywall] March 26, 2010. at applying them with in a large orga- governing. Organizational hierarchy worthy social companies and non- and transform “in process” business 2 Gunn. A. “Amazon Cuts Publishers Out of the Mix, Makes Deals With Writers.” nization as part of a strategic change remains in place to set business goals commercial communities, building activities using newer, more efficient PCWorld. [http://www.pcworld.com/businesscenter/article/242095/amazon_cuts_publishers_ management process. n and objectives, but social models are a vibrant and deeply meshed supply models. Social businesses will need out_of_the_mix_makes_deals_with_writers.html] October 18th, 2011. leveraged therein as effective and chain while carefully exposing and to effectively link IT and operations 3 Hutchinson, A. “Human Resources: The job you didn’t even know you had”. Dion Hinchcliffe is based in Washington protecting strategic data. Ability much more so than in the past to The Walrus. March 2009. p. 15-16. efficient ways to run organizations. D.C. and is Executive Vice President of Work itself, however, takes place via to dynamically adapt and rapidly accomplish the movement to this 4 von Ahn, L. NOVA ScienceNow s04e01 (Television program). 2009. Quote occurs at 46:58. Strategy at Dachis Group. Peter Kim is community-based relationships that respond to the current needs of the new baseline. Note that only certain 5 Levine R, Locke C., Searls D., & Weinberger D. The Cluetrain Manifesto. Chief Strategy Officer in Austin. cloud. Because of the self-organizing inputs, such as access to traditional Perseus Books, 2000.
- 19. 36 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 37 + THE SOCIAL BUSINESS INDEX: SUPER BOWL BRAND INSIGHTS Who really WON SUPER BOWL? b the d ran Let’s ask social media. The USA Today AdMeter visibility into the universe of coffee brand marketing activities and the Second, while massive in audi- shop and water cooler conversations dominant vehicle for measurement ence size, social data also offers the the day after the big game. And now of brand marketing success. Social ability for incredibly deep analysis by ERIK HUDDLESTON has long been the benchmark for to measure success. Panels, surveys that standalone Super Bowl ads have has two characteristics not seen in of customer interactions. This direct ILLUSTRATION by SCOTT MATTHEWS brand marketers to measure the and polls have long been the “insight evolved into week-long, multichannel, other channels. First, social is now at quantitative analysis of brand interac- graphics by Bill keaggy success of Super Bowl ads. But vehicle of choice” for brand market- pre-game campaigns, the measure- scale. While this year’s Super Bowl tions cuts out the survey and poll- & chris roettger in 2012 and beyond, the world of ers due to the difficulty in scaling ment challenge has deepened. broke viewership records to become based methodologies of the past (and brand measurement has changed, brand measurement across a market. the most-watch television show in their associated cognitive biases). thanks to social and big data. As appealing as it seems, it’s always THE PROMISE OF SOCIAL MEASUREMENT US history (for the third straight year) been unattainable for marketers to 2012 represents a watershed mo- with more than 111 million viewers, RANKING THE SOCIAL BOWL FOCUS GROUPS, CLIPBOARDS AND M&Ms peer into the living rooms of television ment for brand marketing. Spe- social represents a brand marketing Recognizing this shift, Dachis Group Like many old-school measures of viewers and see if they are laughing, cifically, the last few months have vehicle that can potentially reach took a deep dive into the social brand success, the AdMeter relied crying (or for that matter, watching at seen the rise of social media as Super Bowl sized audiences the other analytics behind the Super Bowl ads on an in-person panel (focus group) all), just as it’s been a stretch to get the most promising channel for 364 days of the year. and published two reports (leveraging
- 20. 38 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 39 What else did we learn? our in-house infographics gurus). thing Wednesday after the game, in-person polls. We hope you enjoy The first report, published the compares the new world of social the infographic — a side-by-side day after the game, ranks the social measurement against the historical analysis of the AdMeter results to performance of the 45 Super Bowl panel approach of the USA Today the Dachis Group approach. n ads against the brand marketing AdMeter. This year, the USA Today business outcomes they were aiming recognized the potential power of so- GigaOm has a deep dive into the role to achieve: Brand Awareness, Brand cial as well by combining Facebook of big data and brand performance Love, and Mindshare. voting, but were unable to let go of monitoring. How Social is Making The second report, released first the historical bias to measure with Polling Obsolete: dach.is/yCjp3c. Despite what AdMeter says... ADMETER RIGHT H&M SEIZES HONDA’S SNEAK BEST BUY SPARKS ON DORITOS THE SPOTLIGHT PEEK WORKED MAJOR POSITIVITY COKE IS A TOP SBI RANK ADMETER RANK BRAND AWARENESS There is no doubt that Doritos had a hit on their hands this H&M proved that even neophyte Super Bowl advertis- Honda extended their Super Bowl relevance by offering The largest disparity between AdMeter and social media data PERFORMER 2 15 A Super Bowl, but social data ers can make a huge impact access to its ad long before it arose for Best Buy. An initial can explain why. Doritos with the big game as their aired during the game. glance might suggest that Best garnered close to 1,000,000 launching point. The novelty of Nonetheless, the excitement Buy’s innovation message AdMeter doesn’t do the Coke brand-marketing juggernaut justice. 96 new video views in the wake of their Super Bowl launch, enjoyed an uncharacteristic H&M’s presence was reflected in an abysmal rank of 30th in AdMeter, but social media tells and positivity of being re-introduced to Ferris Bueller proved to be an effective tactic missed the mark. Further examination indicates that this is not the case. Best Buy Coca-Cola rejected Super Bowl theatrics in favor of 29.6% lift in subscribers and a very different story. The for Honda. The company saw a enjoyed a 10x increase in running three integrated advertisements focused on the BRAND LOVE elicited heavy positivity for its reality is that with this one 2,000,000 view increase in viewership over the period company's traditional brand positioning. While this ads across the board. These advertisement H&M took a activity around its videos while studied. This spike, combined method may not have been designed to grab the had a predictably helpful modestly well-known brand its overall subscriber base grew with exceptionally favorable spotlight, it was exceptionally powerful and in aggregate impact on Doritos’ Brand and launched it into the center by more than 5% in just two reactions to the message, 98 propelled Coca Cola’s combined brand metrics to number Awareness and Brand Love of the online conversation. days. Brand Love around the resulted in a high degree of two overall — 13 spots higher than AdMeter indicates. attributes — exactly the kind of Brand Awareness spiked in a video only increased over time sharing of the ad and uniquely lift marketers pray the Super huge way as the video and as more and more people high Brand Love scores. The most important element in this surge was the Bowl can deliver. conversation surrounding it welcomed Ferris back with cumulative impact of the three commercials, further BRAND MINDSHARE spread across H&M’s base of open arms. amplified by Coca-Cola’s passionate and massive social subscribers. This set up a communities. In each case the company’s Brand Love perfect storm of peak interest scores set the bar for positivity and receptivity while and peak favorability with the 37.65% Brand Awareness and Mindshare stood out from the Beckham Bodywear brand at competition. This manifested itself in an increase of more the nexus. than 700,000 subscribers across Coca-Cola’s social accounts as well as more than half a million new views SBI RANK ADMETER RANK SBI RANK ADMETER RANK SBI RANK ADMETER RANK SBI RANK ADMETER RANK 1 1 7 30 8 16 13 43 on the videos themselves. WHY THE DISCREPANCY? AdMeter views each commercial as a discrete brand entry into health of the Coca-Cola brand. Dachis Group obtained a deeper AWARENESS LOVE MINDSHARE AWARENESS LOVE MINDSHARE AWARENESS LOVE MINDSHARE AWARENESS LOVE MINDSHARE the Super Bowl lottery. As a result neither the voting on view into the full impact of Coca-Cola’s Super Bowl participa- Facebook nor the panel in a room in Virginia can accurately tion and gave credit accordingly by analyzing the combined A+ A A B capture the cumulative impact of three commercials on the data across all three advertisements. 98 96 35% 94 96 84% 95 94 .62% 84 96 29% METHODOLOGY · Rankings were determined based on the marketing business outcomes like Brand Love, market participants on social channels. · Brand Love reflects the passion, satisfaction, same time frame as AdMeter using data Mindshare, and Brand Awareness. Brand Awareness measures factors like reach and affection with which market participants from the Dachis Group Social Business · Brand Awareness measures the mar- of a brand’s marketing message, growth in react to, and engage with, brand content. Index, which benchmarks the social per- ket’s knowledge of the brand as a result of engaged audience, and the strength of brand- · Mindshare is presented as a proportion of formance of 30,000 brands against brand interacting with brand content and other relevant conversation. brand recognition within the brand’s industry. n
- 21. 40 THE SOCIAL BUSINESS JOURNAL ISSUE 01 Q2 2012 41 This tells us that... THERE WERE STARK DIFFERENCES IN RANKINGS Super Social SBI RANK ADMETER RANK See more detail on previous page 1 5 Coke, Doritos and Audi see tremendous Brand Awareness 10 15 Big data’s take and Brand Love from their Super Bowl ads. T he whole world has an opinion on which Super Bowl ads lets us review hundreds of millions of consumer actions around on big events ‘worked’ and which didn’t, but for the companies that the Super Bowl to determine which marketers got their money’s 20 invested $3.5 million dollars for 30 seconds at a time, the point worth. This infographic definitively captures the two most wasn’t necessarily to entertain the masses. The advent of social important brand outcomes that marketers are searching for: media combined with cutting edge data processing techniques Brand Love and Brand Awareness. The results are eye opening. RANKINGS 25 30 What brands scored a touchdown — or fumbled the ball — on Super Sunday? by Brian KotLyar 35 graphics by Bill keaggy, ® ® 40 Noah Macmillan, zoë scharf, ® ® BRIAN WILLIAMSON ® ® 45 Y ear after year brand marketers 50 BRAND AWARENESS + BRAND LOVE = RANK OF BRAND BRAND SOCIAL RANKING 55 gather around televisions to see Brand Awareness measures the market’s Brand Love reflects the passion with which Rankings were determined using data from the Dachis The specific brand promoted in a Super Bowl commercial, This is the parent company’s rank on Dachis Group’s Social Business Index: knowledge of the brand market participants react Group Social Business along with a representative still socialbusinessindex.com. The platform MARVEL FILMS BUDWEISER HYUNDAI GENESIS COUPE R CARS.COM *No AdMeter ranking the latest in the Super Bowl com- as a result of interacting with brand content and to, and engage with, brand content. Intelligence Platform, which benchmarks the social image and some insight into what worked and what didn’t. analyzes trillions of permutations of social signals in the social business GALAXY NOTE METLIFE BRIDGESTONE “SWAMP PEOPLE” HONDA CR-V GO DADDY PARAMOUNT TAXACT mercial arms race. Unfortunately, it other market participants performance of companies, graph to measure the effectiveness of 1 on social channels. brands and industries. a brand’s social strategy. CADILLAC ATS HM BUD LIGHT CENTURY 21 has always been difficult to determine A+ PEPSI HYUNDAI VELOSTER SKECHERS GORUN HULU SUZUKI KIZASHIA* Coke AUDI ACURA NSX CHEVY SILVERADO GENERAL ELECTRIC CAREER BUILDER PEPSI MAX OIKOS GREEK KIA OPTIMA PRICELINE NEGOTIATOR* BUD LIGHT PLATINUM which ads really worked and which The Coca-Cola social media juggernaut continues with the highest Love and Awareness failed. This year, Dachis Group turned 97 98 5 scores of the evening. A highly CHRYSLER BEST BUY CHEVY CAMARO TELEFLORA E-TRADE engaged audience combined with COCA-COLA VW BEETLE UNIVERSAL CHEVY SONIC CHEVY VOLT* the always-lovable polar bears proved to be a potent mix. the lens of our big data Social Busi- 2 DORITOS FIAT MMs TOYOTA CAMRY LEXUS 2013 GS ness Intelligence platform on the Su- A+ Doritos Doritos did the impossible by per Bowl to determine which brands matching Coca-Cola from an Awareness perspective and 98 92 19 lagging just behind on Brand How can we be so sure? Love. The user-generated humor won Super Bowl Sunday based on approach to the Super Bowl has done it again. 3 hard data — not just opinion. A- Audi The Dachis Group approach Vampires and Echo The Bunnymen. The most goth Super focuses on the aggregation of millions Bowl ad ever? Probably. It was a 91 98 61 top performer with off the chart Love ratings and pretty broad Twitter Awareness. The hashtag trended of signals across brand social ac- worldwide on Twitter and made 4 Audi stand out from the... coven? counts to determine lift in key metrics A+ Acura NSX admeter Facebook that matter to marketers: Brand Seinfeld’s miffed he’s not first on the new Acura waiting list; spends the rest of the commercial trying to 95 89 93 The two bigge Awareness, Brand Love and Brand st live television buy the #1 spot. Then Jay Leno incredible oppo even rtunities for adve ts offer swoops in at the last minute. And the Osca rtisers. Unique in its ability to spark best advertisin r for Mindshare. These signals are rooted engagement and reach fueled by a Social sites 5 more limited base of initial positivity. g opportunity goes to... in actual consumer actions and as a A- Pepsi ACADEMY Alignment with pop culture, s SUPER SBI result our data is a powerful measure AWARDS versu famous faces, and inside jokiness helped pump up this ad as “No 90 97 B19 L OW Pepsi for you!” caught the hearts of the audience with a very high of how consumers behave. This dif- Brand Love score, plus it quickly Google+ $1.7 trended on Twitter to extend its MIL 6 moment in the sun. LION fers from other approaches in that it Price of a 30-se cond spot $3.5 MILLION A- 41.7 Veloster Turbo Price of a 30-se focuses on what people do, not what cond spot Hyundai goes for two near-death MILLION experiences and gets it right with 117 they say they will do. a cheetah, but wrong with a Viewers 91 96 147 pedantic boss — perhaps people MILLION Viewers would have preferred to see the YouTube old man croak? Blogs This infographic shows our com- A- 7 prehensive ranking of Super Bowl Career s Builder over.optio the The days of rise of DVR “must-see TV” and other on-d are With Forums effectiven emand Enter social advertisers in the hours during and ess television med Year afterne. ofCareerbuilder’s ls ns, the to decli year commercia better amplified ia. To determine which even However, two conti advertisers’ t monkey ads continue tomassive live-broad nues opportunities perform. value beyond broadcast reach messages and creat remain, whic 91 cast The Brand Love surrounding this captured alone, we meas ed 87 57 over $275,600 h combined every piece ,000 of social conte ured immediately following this year’s was average, ds in 2012 mark ad the Academy Awarbut where it eting dollars: the advertisem nt creat ents during both ed around all of and Supe The Oscars. really showed to pay a prem r Bowl. Brands are clearly willin strength was g As it turns out, the Super Bow won’t tell you, what GRPs and l and Awareness. Itreal-time audieium to access a good old-fashioned got people talking, audience grow the social unive TRPs still unclear nce — but what rse will. Insig which may mean more banana game. Another infographic compared is how that spen ’s th, conversat hts into brand impact. d translates sentiment are ion lift, and 8 peels and monkey jokes in 2013. into revealed by discussion Artificial and too easily gamed Mines a brand’s entire social graph if you’re a bran a look into the d advertiser data impact, whic looking for maxi . So, B+ h event serve mum s you better? ROI of Super Bowl time versus the Chrysler Read on. USA Today should be lauded for innovating around their Dachis Group believes that analyzing the conversations of a WHICH EVENT PER Chrysler nailed the mood of the FORMED moment with its combination of BETTER? existing effort. Nonetheless, the core assertion that brand’s engaged market on social channels is the one area Academy Awards. n OUR MILLIO“Half-time for Clint Eastwood and 87 97 124 N ME of on Twitter and received some MBER AC America”. The ad quickly trended ADEMY people’s votes for what ad they most enjoyed correlates where a company can effectively review actual consumer Handing out the hardware the highest overall marks for easy, but should be Brand Love of the night. This will have the fact is that it depends on WAS TORN The Oscars the category. 9 gener some longevityate coming weeks. twice as many in to a successful brand commercial does not stand up to response through tens of thousands of brand-specific You can view the Super Bowl info- subsc ribers. Super S Bowl SUBSCRIBER advertisers B receive General Electric Conversatio scrutiny. Brands are not trying to win a film competition interactions and compose them into a larger picture of that 60% are 5 times ns graphics at dach.is/wQJRsW and more positi ve for Super Bowl more conve advertisers Themes ofRSAmerican innovation and rsatio ns . 5x DOLLA — they are trying to improve their brand positioning. company’s relationship to its consumers. Brand Love, Brand rejuvenation sparked significant SPENT Want to grow dach.is/y5EmG while the Oscars your audience? Love, but the lack of a Superbowl 84 97 301 positivity The Super Bowl Want peop ‘hook’ has a larger women or humor le talking about you? than (and costslike dogs,audience Observed social media behavior is a purer data source Awareness, and Brand Mindshare are the measures that Want people drags down Awareness. Use ofita s to sparking new conve Oscars, but every twice as much dollar brand as) the When come tions the Super to like you? Twitter twice asaeffective s to have had Bowl takes the trophy. rsa- s is hashtag seems results can be seen at dach.is/ on the Oscar spend The Super Bowl A typical brand scores a blowo engaging new at can expect 60% over the Oscar you’re lookin impact with ers. If ads neverrsation score from the littleg audience memb the conve lift in ut win s in for determining this than any popularity contest could marketers have always cared about — why should social change. On Super driving sentiment 10 to build a Super trending base,better social Twitter.to twice that of the Oscars.Bowl — media subsc ription worldwide on more than want start If you average conve Bowl Sunday, rsation aroun the question that there’s no a buzz about 5 times more d a brand is wuDFA5. the Academy can monetize your brand (and B+ positi in this catego ry. Awards wins it effectively), the Super night. And while ve than on Oscar ever be. See it at admeter.usatoday.com. media change that? See more at socialbusinessindex.com Bowl is cham MetLife pion showing up for in a mass audie of triggering discussions Game costs brand the Big nce. on the red carpe s more than appearing t, pay for: it costs brands get what they almost 2.5 times MetLife continues its tradition of much to get increase during a point of sentim ent as using the cast of “Peanuts”, but the Oscars. amplifies it with a host of other ACADEMY AWARDS 87 92 682 cartoon characters, including the SUBSCRIBERS FLOC gang, He-Man, and Scooby Doo SUPER BOWL Voltron. K AWARENESS TO DIET COKE LOVE A+ AWARENESS 96 COCA-COLA LOVE COCA-COLA INCR 92 A SBI RANK One of the only 97 EASES advertisers to make a 98 CONVERS
- 22. ISSUE 01 Q2 2012 43 + SOCIAL BUSINESS INSIDER: SUSAN SCRUPSKI Do you have the guts, the heart, the backbone to lead in Social Business? A t Dachis Group, we talk a lot about the massive transformative currents underway in our world. Our to make it come true. If even sowing the seeds of change, you are setting in motion a new ideology — a new CEO, Jeff Dachis, says repeatedly, vision of how things could be. Take “We are on the cusp of the largest inspiration from the early Impres- shift in the communications land- sionist painters who also took career scape in the history of mankind.” For risks to paint authentically, outside, those of us who’ve signed up to help with bright colors. These rogue Robert Caldera, Senior Communications Manager, PwC organizations migrate to this new way artists broke with convention and of working and communicating, this rebelled against the prevailing power journey comes with a gift basket of ity are opening up vast avenues for structure that thwarted their freedom Join the Social Business Council, a community of Social Business enthusiasts. complexity and difficulty. productivity, growth, innovation, and of expression. Of course, they faced Our clients and members of the huge returns from the “humanization” criticism, even mockery, but they We all share a common enthusiasm for bringing a new way of communicating Social Business Council are embold- of business. prevailed. Because of their passion, and working to our representative organizations. We’ve come together in this ened to take a tough stand for some- Our Social Business champions energy, conviction, and talent, they thing they believe in. Whether it’s are fighters. And they’re lovers too. changed the course of art history. peer-to-peer knowledge sharing network to learn from one another. the lone brand manager who’s will- They’re fighting against old world There is something very special ing to put her reputation and career thinking, corporate power structures about the people who are drawn Council membership is open to all business professionals personally involved on the line to stand resolutely behind and politics, the fear of the masses to Social Business. The fact that an innovative social strategy, or the to veer into a new way of engaging you’re reading this publication in Social Business initiatives within a large business. If you want to share your CIO who needs to sell the benefits customers and colleagues. They’re identifies you as an independent experiences with your peers and learn from theirs, we invite you to submit your of a socially savvy enterprise, these fighting against complacency. Instead thinker. You’re drawn to this calling individuals are swimming upstream of a sword or hammer, they’re fight- and this history-changing moment application for membership. socialbusinesscouncil.com @SocBizC oftentimes without a paddle, a raft or ing with a deep-seated love and pas- because you believe there is some- even a compass in many instances. sion for social business reinvention. thing greater beyond a paycheck in The course is still unfolding before Many admit this is the most difficult, this work we’re doing. You can be them with rough rapids compound- yet most rewarding position they’ve a catalyst for change. Never doubt ing dangerous twists and turns. ever had in their career histories. your ability or qualifications to suc- But they know in their hearts, in With this mission comes some ceed with this important mission. their gut, and with all the strength self-doubt, some indecision, some You are the right person at the right they can muster, it’s the right thing career risk. One of our SBC members time to introduce dramatic change to do. They know that they’re not once asked, “Who am I to change into your organization. interested in being a passive par- a culture?” To this we responded, Lean into the fear and resistance ticipant in the mediocrity that has “You... are that guy. You are the one with us. We’re amassing an army of characterized business-as-usual for who knows why the culture needs change agents that is laser focused on decades. They see that transparency, changing. You see the future and our collective success. It’s your turn to collaboration, trust, and authentic- you’re not afraid to take a career risk change the world. Join us. n
- 23. 44 THE SOCIAL BUSINESS JOURNAL ISSUE 01 · Q2 2012 We are Dachis Group + W H AT W E D O + MORE Dachis Group created the Dachis Group powers the design, development, management Social Business Index (SBI), and measurement of Social Business solutions for the world’s providing ongoing real-time ranking, analysis, and bench- leading companies. We have been fortunate enough to deliver marking of Social Business social solutions, drive social brand engagement and deliver adoption and performance. We also operate and manage meaningful social insights for the world’s largest companies the Social Business Council, and most valuable brands. the largest peer-to-peer knowledge-sharing commu- nity for active Social Business practitioners. And we host YOUR BRAND a series of Social Business Summits, exploring the most current ideas in Social Business thought leadership. Learn more: R R + socialbusinessindex.com + socialbusinesscouncil.com + socialbusinesssummit.com MEASURE YOUR MANAGE YOUR CONNECT YOUR SOCIAL PERFORMANCE SOCIAL BRAND SOCIAL ENTERPRISE As the leader in Social Business Performance Brand Marketing Are you a Connected Company? + C O N TA C T Intelligence, Dachis Group is Dachis Group’s brand engage- The world of work is changing AMERICAS: +1 512 275 7825 helps global organizations mea- ment solution for CMOs, brand and old organizational models EUROPE: +44 0 20 7357 7358 sure social performance, bench- marketers, brand managers, and are under increasing pressure + [email protected] mark against their competitors line of business leaders wanting from a more connected, + www.dachisgroup.com and industry peers, and directly a comprehensive set of perfor- collaborative, participatory, and correlate to brand marketing mance-oriented social solutions engaged way of doing business. · Austin business outcomes to drive for social engagement and social Social Business. · Amsterdam a more effective and efficient insights across the entire social · Lincoln + Enterprise Social Technology · London investment in social marketing. engagement spectrum. + Workforce Collaboration · New York + Social Business Index + Social Apps Experiences · Philadelphia + Change Programs · Portland THE SOCIAL BUSINESS JOURNAL + Social Portfolio Insight + Listening Programs + Learning Training · St. Louis + Social Performance Monitor + Social Brand Strategy + Social CRM + Community Management + Advocacy Programs + Social Media Buying + Influencer Outreach Programs + Youth Insights Strategy