Simmons Leadership Conf - Charlene Li

Winning in a World Transformed by Social Media

April 2, 2013 | Simmons Leadership Conference

Charlene Li, Founder & Analyst, Altimeter Group@charleneli | [email protected]

2

Social is About

RELATIONSHIPS

Not Technology

STRATEGY

ORGANIZATION

PREPARE

© 2011 Altimeter Group

Why Most Social Strategies Fail

No Clear Business Impact

Strategy Requires Planning

Six Phases of Social Business Maturity

1

8

Planning“Listen to Learn”

9

Red Cross monitors social channels during disasters to direct relief efforts During disasters, the Red Cross is able to find out about specific incidents, spot trends, and anticipate public needs. Red Cross representatives can use the command center to quickly match disaster victims with aid relief.

10

Presence“Stake Our Claim.”2

Shell Tracks Reputation Impact…Daily

© 2011 Altimeter Group

Have The Courage to Take the Leap

13

Engagement“Dialog Deepens Relationships”

3

14

Develop rules for engagement

Source: “Social Media Strategy Secret Sauce: How Intel Makes Data-driven Decisions,”

Allen Stephens, Keith Molesworth, and Tiffany Peery, March 21, 2011

15

Formalized“Organize For Scale”4

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

• Responsible for social strategy

• Alignment of roadmaps and plans

• Analytics and reporting infrastructure

• Monthly Social Media Council meetings, with knowledge sharing initiatives

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

17

Strategic“Become a Social Business”5

Sephora integrates social + digital in communities as well as in stores. Goal: Understand their “superfans” who spend 10X. average customer

community user

superfan10x

2.5x

customer spending

19

Transformation“Business is social.”

6

20

ARAMARK must contend with separate businesses and differing goals and objectives

ARAMARK’s challenges:

1. Over 255K employees

2. Organized into separate businesses by industry

3. 1000s of client locations

4. Different client goals and objectives

5. Ingredient brand

21

It’s equipped and enabled over 400+ locations to manage social media – within parameters

Rebranded for social engagement, around voice, purpose, and image.

Previously siloed, now creating new processes that result in improved customer satisfaction and sales across the value chain

STRATEGY

ORGANIZATION

PREPARE

© 2011 Altimeter Group

Rigid Organizations Adaptive Organizations

(re)Organize Marketing for Agility and Resilience

Success Factors of A Social Business

Strategy is What You Decide To Do

And What You Decide NOT To Do

• Learn: What can be learned from customers and community

• Dialog: The nature of our interactions with customers

• Advocate: How to build advocacy among customers and community

• Support: How to provide support via social channels

• Innovate: Using customer and community to drive innovation

Social Business Initiatives Framework

Learn

Dialog

Advocate

Support

Innovate

Plan out what will happen over time

MONTHS 1-6 MONTHS 7-12

Year One

MONTHS 1-6 MONTHS 7-12

Year Two

MONTHS 1-6 MONTHS 7-12

Year Three

28Example: Social Business Initiatives, organized by Goals into a 3 Year Roadmap

Category InitiativeNow – 6 months

6-12 months

12-18 months

18-24 months

24-30 months

30-36 months

Create greater loyalty to drive salesAdvocate InitiativeSupport InitiativeAdvocate InitiativeAdvocate InitiativeAdvocate InitiativeIncrease share in SMB marketLearn Initiative            

Dialog InitiativeDialog InitiativeAdvocate InitiativeCreate four new productsInnovate InitiativeInnovate InitiativeLearn Initiative            

Reduce customer service costsLearn InitiativeDialog InitiativeSupport InitiativeSupport InitiativeSupport Initiative

Most companies organize as Hub & Spoke, but are moving toward Multiple Hub & Spoke

9.4% 29.1% 35.4% 23.6% 2.4%

Create Discipline In Engagement30

Source: “H&R Block’s Response Process” David Armano, Edelman 2010

Social Media Training is About Developing Judgment -- and the Confidence to Use It

What you should do

What you shouldn’t do

Judgment is needed in between

STRATEGY

ORGANIZATION

PREPARE

© 2011 Altimeter Group

#1 Align Executives With Clear Business Goals

#2 Ask the Right Questions About Value

34

“We tend to overvalue the

things

we can measure, and

undervalue the things we

cannot.”

- John Hayes, CMO of American

Express© 2011 Altimeter Group

#3 Create a Culture of Sharing35

#4 Master the Art of Failure36

No relationships are perfect

Google’s mantra: “Fail fast, fail

smart”

© 2011 Altimeter Group

#5 Determine Your Personal Social Strategy

Warrior engages colleagues and friends through both work…

…and personal passions39

Social is AboutRELATIONSHIPSNot Technology

Charlene Li

[email protected]

charleneli.com/blog

Twitter: charleneli

For slides and reports, send an email

to [email protected]

For more information & visit

charleneli.com

© 2012 Altimeter Group