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Internet Community Internet Community Fundamentals Fundamentals and Operations and Operations Management Management by by Digital Places Digital Places www.digiplaces.com www.digiplaces.com
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An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Mar 26, 2015

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Page 1: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

An Overview of Internet An Overview of Internet Community FundamentalsCommunity Fundamentals

and Operations Managementand Operations Management

byby

Digital PlacesDigital Places

www.digiplaces.comwww.digiplaces.com

Page 2: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Capitalizing on “Community”Capitalizing on “Community”

SponsorSponsor communities frequented by target communities frequented by target customerscustomers

Participate Participate in communities frequented by your in communities frequented by your high margin target customers, partners and high margin target customers, partners and employees.employees.

Build Build communities to be frequented by those communities to be frequented by those with whom you have the most valued relationshipswith whom you have the most valued relationships

Page 3: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Communities are more cost effective than content-Communities are more cost effective than content-focused services because they positively influence each of focused services because they positively influence each of the four factors in the online service equation:the four factors in the online service equation:

Members create content which Members create content which reduces the costreduces the cost to produce the service. to produce the service. Active members establish reputations within the community, become Active members establish reputations within the community, become

committed to remaining and tell friends about it. These dynamics committed to remaining and tell friends about it. These dynamics contribute to contribute to increasing the average customer lifeincreasing the average customer life and and decreasing the decreasing the average cost of customer acquisitionaverage cost of customer acquisition..

Marketers will Marketers will pay morepay more for access to committed, active community for access to committed, active community members who constitute a tightly-focused target market.members who constitute a tightly-focused target market.

NetProfit/Loss

=Cost

AcquiringCustomer

-Lifeof Customer[ ]Revenue

Avg/CustomerCost

Avg/Customer( )- *

The Online Service EquationThe Online Service Equation

Page 4: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Operational HighlightsOperational Highlights

Organize internally for success Organize internally for success Manage the Social factorsManage the Social factors

– Carefully select and train “Caretakers”Carefully select and train “Caretakers”– Support the MotivatorsSupport the Motivators

Provide Provide – Value for their informationValue for their information– ApplicationsApplications– ““Presence Infrastructure” & search/browsePresence Infrastructure” & search/browse

Page 5: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Community ApplicationsCommunity Applications

Msg boards, chat, listserves, IMMsg boards, chat, listserves, IM Homepage/Profile building and searchHomepage/Profile building and search

Page 6: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

AgendaAgenda

Membership and PresenceMembership and Presence Community ProfilesCommunity Profiles Community Management RolesCommunity Management Roles

Page 7: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

What Is Community?What Is Community?

Any online group wherein the site Any online group wherein the site developer provides facilities that enable developer provides facilities that enable communications among members. May be:communications among members. May be:– typical message boards and chattypical message boards and chat– feedback mechanisms like eBayfeedback mechanisms like eBay– elaborate virtual worlds like Palace & elaborate virtual worlds like Palace &

WorldsAwayWorldsAway

Page 8: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Organizational GoalsOrganizational Goals

WhyWhy aare you investing in developing anre you investing in developing an

online community?online community?

Page 9: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Defining Your MembershipDefining Your Membership

Who is your Target Audience? Who is your Target Audience? – DemographicsDemographics– Psychographics Psychographics – Wants and NeedsWants and Needs

Page 10: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Online PresenceOnline Presence

Enable individuals to express their identity Enable individuals to express their identity and/or develop a reputation onlineand/or develop a reputation online

Expanding presence increases interactionExpanding presence increases interaction Presence => Member communications => Presence => Member communications =>

Community ExperienceCommunity Experience

Page 11: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Creating PresenceCreating Presence

Individual ProfilesIndividual Profiles– Information about the memberInformation about the member– Provided by the memberProvided by the member– Structured by Community DeveloperStructured by Community Developer– Contains information important to the Contains information important to the

communitycommunity– Richness increases depth of engagementRichness increases depth of engagement

Page 12: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Member Involvement

Caretakers - .5% Motivators - 3% Actives - 15% Passives - 80%

Page 13: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Figallo’s Community ProfilesFigallo’s Community Profiles

InteractivityInteractivity FocusFocus CohesionCohesion

Page 14: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

InteractivityInteractivity

Shrines -------- Theatres --------- CafesShrines -------- Theatres --------- Cafes CafesCafes

– Don’t impose strict controlsDon’t impose strict controls– Advertisements are more toleratedAdvertisements are more tolerated

ShrinesShrines– Host knowledge of subject is very importantHost knowledge of subject is very important– Heavy participation by host requiredHeavy participation by host required

Page 15: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

FocusFocus

Bazaars -------- Malls ---------- BoutiquesBazaars -------- Malls ---------- Boutiques BazaarsBazaars

– Games & play, little focused interactionGames & play, little focused interaction MallsMalls

– May act as portal sites, ads more toleratedMay act as portal sites, ads more tolerated BoutiquesBoutiques

– Deliberate participation, subscription models Deliberate participation, subscription models more likelymore likely

Page 16: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

CohesionCohesion

Loners ------- Associates -------- FamiliesLoners ------- Associates -------- Families LonersLoners

– Warning signWarning sign AssociatesAssociates

– Core of loyal users, lots of interactionCore of loyal users, lots of interaction FamiliesFamilies

– Pre-packaged, value history and traditionsPre-packaged, value history and traditions– Message boards more effective than chatMessage boards more effective than chat

Page 17: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Management RolesManagement Roles

Executive ProducerExecutive Producer– Responsible for fiscal success of the businessResponsible for fiscal success of the business

Community ManagerCommunity Manager– Responsible for social success of the communityResponsible for social success of the community

Online StaffOnline Staff– The bridge between you and your communityThe bridge between you and your community

Page 18: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Management RelationshipsManagement Relationships

Executive Producer

Content &E-commerce

Webmaster& Designers

CommunityManager

RemoteStaff

CustomerService

Training& Events

Page 19: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Executive ProducerExecutive Producer

Duties/ResponsibilitiesDuties/Responsibilities– Directs creation of total service Directs creation of total service

» Content, e-commerce, and communityContent, e-commerce, and community

– May decide business direction and modelsMay decide business direction and models– Keep community consistent with these goalsKeep community consistent with these goals– Revenue attainment & cost containmentRevenue attainment & cost containment

Page 20: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Executive ProducerExecutive Producer

QualificationsQualifications– Conscious user of online mediaConscious user of online media– Technically savvyTechnically savvy– Business savvy - understands cost/return Business savvy - understands cost/return

tradeoffstradeoffs Performance MeasurementsPerformance Measurements

– Total membership, growthTotal membership, growth– Revenue, Profit/LossRevenue, Profit/Loss

Page 21: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Community ManagerCommunity Manager

Duties/ResponsibilitiesDuties/Responsibilities– Selects, trains and monitors hosting staffSelects, trains and monitors hosting staff– Guides social aspects as they relate to the total Guides social aspects as they relate to the total

service (content, e-commerce, etc.)service (content, e-commerce, etc.)– Liaison between community members, hosts, Liaison between community members, hosts,

producersproducers– Enforce/Implement site policiesEnforce/Implement site policies

Page 22: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Community ManagerCommunity Manager

QualificationsQualifications– Naturally sociable personNaturally sociable person– Sensitivity and knowledge of legal environmentSensitivity and knowledge of legal environment– Able to motivate staff and participantsAble to motivate staff and participants

Performance MeasurementsPerformance Measurements– Member retention (quality & quantity)Member retention (quality & quantity)– Ratio of community staffing costs to total Ratio of community staffing costs to total

membersmembers

Page 23: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Online Staff RolesOnline Staff Roles

Advisors, Allies, Ambassadors, Community Advisors, Allies, Ambassadors, Community Proxies, Feedback Gatherers, Greeters, Proxies, Feedback Gatherers, Greeters, Mediators, Moderators, Representatives, Mediators, Moderators, Representatives, Role Models, Supporters, Teachers….Role Models, Supporters, Teachers….

Page 24: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Online Staff Skills/QualificationsOnline Staff Skills/Qualifications

Helpful, patient, tolerantHelpful, patient, tolerant Initiator, entrepreneur, leader, respected Initiator, entrepreneur, leader, respected

within communitywithin community Natural enthusiasm, know their tools, know Natural enthusiasm, know their tools, know

their own limitstheir own limits

Page 25: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Online Staff - Special SkillsOnline Staff - Special Skills

ChatChat

Message BoardsMessage Boards

EventsEvents

Backend ToolsBackend Tools

fast typist, efficient communicator, fast typist, efficient communicator, attentiveattentive

higher degree of communication, higher degree of communication, summarizationsummarization

moderation, motivation, preparationmoderation, motivation, preparation

broader technical savvy, feedback broader technical savvy, feedback solicitation and summarizationsolicitation and summarization

Page 26: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Recruiting Online StaffRecruiting Online Staff

Online communities are a burgeoning Online communities are a burgeoning training groundtraining ground

Recruit from services you respectRecruit from services you respect Balance observation with application Balance observation with application

processprocess

Page 27: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Training Online StaffTraining Online Staff

Set expectations of effort and conductSet expectations of effort and conduct Train to meet those expectationsTrain to meet those expectations Teach “how-to” not “do-for” – sowing the Teach “how-to” not “do-for” – sowing the

seeds of future staffseeds of future staff

Page 28: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Managing Online StaffManaging Online Staff

MotivationMotivation– Lessons to be learned from DOL versus AOLLessons to be learned from DOL versus AOL

CompensationCompensation– ““The 10th best worker is a volunteer – you The 10th best worker is a volunteer – you

can’t make them do what you want to do…”can’t make them do what you want to do…”– Scott Kurnit, CEO of MiningCo.comScott Kurnit, CEO of MiningCo.com

BurnoutBurnout– Only you can prevent forest fires.Only you can prevent forest fires.

Page 29: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Question:Question:

What is the most important element of any What is the most important element of any community?community?

??

Page 30: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Answer: Answer:

The MembersThe Members

Page 31: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Trust is CentralTrust is Central

The community belongs to the members.The community belongs to the members. Serving the members is the first and Serving the members is the first and foremost goal. Decisions that subordinate foremost goal. Decisions that subordinate this goal can undermine trust and jeopardize this goal can undermine trust and jeopardize the stability of the group.the stability of the group.

Page 32: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Violating TrustViolating Trust

Things that undermine trustThings that undermine trust

Page 33: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Generating TrustGenerating Trust

One idea for generating trust in community One idea for generating trust in community membersmembers– Ideas will be posted on www.digiplaces.com by Ideas will be posted on www.digiplaces.com by

April 30.April 30.

Page 34: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Keys to Successful CommunitiesKeys to Successful Communities

Establish trustEstablish trust Make visitors feel welcomeMake visitors feel welcome Participate with the usersParticipate with the users Select Caretakers carefullySelect Caretakers carefully Control membership influxControl membership influx

Page 35: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Where is Your Community Going?Where is Your Community Going?

Plan your community to meet Plan your community to meet organizational goalsorganizational goals

Costs vary based on Interactivity & Costs vary based on Interactivity & CohesionCohesion

Control and guide this to meet business Control and guide this to meet business goalsgoals

Page 36: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Where is Your Content Going?Where is Your Content Going?

Is your content appropriate to your Is your content appropriate to your members needs?members needs?

To your needs?To your needs? Control your content, don’t let it control Control your content, don’t let it control

you.you.

Page 37: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

What are Your Goals for ...What are Your Goals for ...

Interactivity?Interactivity? Cohesion?Cohesion? Focus?Focus?

Page 38: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Digital Placeshttp://www.digiplaces.com

Wrap UpWrap Up

What one thing will you change, and when What one thing will you change, and when will it be done?will it be done?– What resources are you missing?What resources are you missing?– Where will you get them?Where will you get them?

Page 39: An Overview of Internet Community Fundamentals and Operations Management by Digital Places .

Community ManagementCommunity Management

Digital PlacesDigital Places

www.digiplaces.comwww.digiplaces.com

650-224-4567650-224-4567