e-business me-business we-business:

e-businessme-businesswe-business:

How the Social Data Revolution Changes the Way

Consumers Make DecisionsDigital Day China

Shanghai, 22 Nov 2011

Approval

Belonging

Communication

Why this revolution?It addresses the 3 deep

needs:

Irreversible shift in mindset of customers about who they are, how they relate, how they make decisions

What is the revolution?

e-businessme-businesswe-business

e-business(company focus, Web 1.0)

• Website provides controlled information

• Website possibly allows for transactions

me-business(user focus, Web 2.0)

• Consumer in the center• Self-expression, 晒 (shai, show off)

we-business(community focus, Web 3.0)

• Collective intelligence• The social consumer

SocialLocal

Mobile

• Friends: People who like you– Offline– Online

• Peers: People like you– Similar background– Similar situation

• Experts

USA: Who do Consumers Trust?

average (1-10 scale)

| China: Credibility

8.5 | Friends and family8.0 | Internet word of

mouth7.0 | News and

authorities5.3 | Sales person5.0 | Ads

Source: CIC 2010 Efluencer Survey

Two meanings of “social”

1. Social graph Who is connected with whom?

2. Social data

Case study: What data for targeting a new phone product?

Connection data

• Who called who?

Traditional segmentation

• Demographics• Loyalty

Connection data

Traditionalsegmentation

0.28%

Adoptionrate

1.35%

4.8x

Amazon.com Share the Love

Result: Amazing conversion rates

since customer chooses

Content (the item)

Context (she just bought that item)

Connection (she asked Amazon to email her friend)

Conversation (information as excuse for

communication)

1. Social graph 2. Social data Consumer create and share data Knowingly and willingly

Two meanings of “social”

Or is information justan excuse for

communication?

Purpose of communication:to transmit information?

Customers- engage- connect- 3 times per week on average

Nike+

Rooms to Avoid:

01, 21

08, 17

Rooms Ending in:

Possible Ice Machine / Elevator Noise

Limited View Rooms

Corner / Oversized Rooms:

04

24

Oversized, Corner Room, Quiet RoomOversized, Corner Room with North Times Square Views (Higher Floors are Preferred

Rooms Ending in:

SocialLocal

Mobile

Local Absolute: Place, time

• Individual: Identity, History• Aggregate: Insights

Relative: Distance• To a business: Advertising• Between people: Dating• Between devices: Risk

Location HistoryGoogle Latitude

SocialLocal

Mobile

“SoLoMo”

MobileContext, situation• Sound• Light

Customers interact• Tag• Scan

Situation• Geo-

location• Device

Attention• Clicks,

Transactions

Intention• Search

Connection• Social

graph

User generated• Reviews

Question:

What is the biggest changein the last 5, 10 years

you have seen?

The amount of data a person creates

doubles every 1.5 years• after five years x 10• after ten years x 100

Social Data Growth is EXPONENTIAL

Data = Digital Air

10,000,000 Web searchesAd requestsText messages

1,000,000 Facebook posts

100,000 Product searchesTweets

In the last Minute…

Fundamental Shift in Communication

One-way Two-way

Asynchronous SynchronousPlanning Interaction

List FlowPrivate Public

A. Production: Everybody creates data.

B. Distribution: Everybody shares data.

C. Consumption: Everybody uses data.

• The study of the consumer has changed

• The consumer has changed

Consumer Decision Making

Marketer-generated

awareconsider

buy useopinion

share

Consumer-generated

Funnel Megaphone

“Tina Jiang is my go to LV person”

Top 8 Brands (by number of posts)

Source: The Voice of the Luxury (4.5M posts in CIC luxury panel 2011.Q1)

Category (by number of posts)

Source: The Voice of the Luxury (4.5M posts in CIC luxury panel 2011.Q1)

Topic (number of posts)

Content (by number of posts)

Who Can You Get To Work For You?

100M Customers

100k Employees

100 Specialists

Company

Customers

Product

Customer

Brand

Help people make better decisions

Make it trivially easy for them to

contribute

Give people an excuse to connect

Note: Products/services that use social data improve over timeTake the test yourself http://socialdatalab.com/intelligence

Product Culture

Do not have Somewhere already

Cannot get Can! User will give

Must not use Embrace it

Be secretive Be transparent

Information asymmetry

Information symmetry

Data Culture

1. Facebook Designed for contribution and distribution

2. Google Take whatever you can get

3. Amazon Customer-centric: Help them make decisions

Company Culture (“DNA”)

Advertising

Branding

Corporate Communication

Ingredients for engagement:

Approval

Belonging

Communication

Ingredients for engagement:

Two Monologues are not a Dialogue!

Twitter: The Illusion of an Audience?

1993

“On the Internet, nobody knows you’re a dog”

2011

“On the Internet, everybody knows you’re a dog”

e-businessme-businesswe-business

aweigend@stanford.edu+86 138 1818 3800www.weigend.com

Dr. Andreas Weigend, Social Data Lab