"Social Media and IT - What IT Needs to Know" - Lotusphere 2012

Social Media and IT: What IT Needs to KnowSPN 209

Mark Heid, IBM CognosProgram Director, Social Analytics

| © 2012 IBM Corporation2

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Agenda

• Social Media’s Impact on Marketing

• Social Media’s Challenge to Marketing

• Using Analytics to Measure and Drive Action from Social Media

• Social and Customer Analytics Governance

• Summary

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Stating the obvious. But it’s more than Tweeting happy thoughts …


Leverage social networking

Expect consistent and relevant information

It’s influencing aggregate behavior that’s shaping demand and our ability to meet and anticipate it

Demand exactly what they want

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95 millionNumber of tweets sent via Twitter each day

75%Percentage of people who believe companies don’t tell the truth in advertisements

$93 billionAmount in sales missed due to out of stock inventory

Get it now or go

elsewhere!


Understand and anticipate customer behavior and needs based on customer insights across all channels

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Adapt sourcing and procurement based on customer demand and optimize supplier interactions across extended value chains

Market, sell and fulfill the right product and service at the right price, time and place

Service customers flawlessly, predict and drive customer loyalty

The impact cascades beyond Facebook – to brand, reputation, supply and demand Social media compresses information relevance and the speed to which we seek to validate it through available communities of interest … forcing business to re-examine their value chains


Agenda: Understand the market and the customer

Build awareness and demand

Steward the company’s brand experience

Drive brand strategy and execution

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Today’s CMO

Agenda: Today plus: + Drive consistent interactions across all channels

+ Steward the complete customer experience

+ Enable information & insight across the business

+ Anticipate customer needs

+ Monitor and harness customer evangelism

+ Optimize outcomes and return on marketing investment

Tomorrow's CMO

Social Frontlines – Converging marketing channels

Marketing: Damned if they do;

Damned if they don’t


The vast majority of CMOs are underprepared to manage the impact of key changes in the marketing arena

50%71%

68%

65%

63%

59%

57%

56%

56%

56%

55%

54%

50%

UnderpreparednessPercent of CMOs reporting underpreparedness

Data explosion

Social media

Growth of channel and device choices

Shifting consumer demographics

Financial constraints

Decreasing brand loyalty

Growth market opportunities

ROI accountability

Customer collaboration and influence

Privacy considerations

Regulatory considerations

Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n=149 to 1141 (n = number of respondents who selected the factor as important)

Global outsourcing

Corporate transparency 47%

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Behavioral data- Orders- Transactions- Payment history- Usage history

Descriptive data- Attributes- Characteristics- Self-declared info- (Geo)demographics

Attitudinal data-Market Research-Social Media

Interaction data- E-Mail / chat transcripts- Call center notes - Web Click-streams- In person dialogues

“Traditional approach”

High-value, dynamic approach- source of competitive differentiation

Understanding the Customer and Answering: “Why”

Who?Who? What?What?

Why?Why?How?How?


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Social Media Strategy. Fill in the blanks, please ….


Fear and opportunity …

So What’s the Right Balance?

What’s the right combination of social media offence and defence? Protect or engage. Hide and reveal. Much depends on the business model and constellation of constituents that can effect reputation, revenue and relationships.

Fear Opportunity


Proliferation and ownership

How to Organize Your Company for Social Media, by Jeremiah K. Owyang, June 24, 2009

Nearly one fifth of surveyed

organizations don’t have a social media

owner of strategy

Only 20% of organizations

have centralized their social media

deployment

Execution in large part depends on who owns what. In large organizations there is a proliferation of social media tools of varying degrees of strength and weakness.


Understanding goals and readiness for social media

Questions for Marketing Sponsors

Assess

What are your objectives for social media?

What do you intend to measure?

What criteria will you be assessing vendors with?

Have you engaged other business functions in your social media strategy?

Measure

How will you be measuring? And why?

How is social media related to other digital investments?

Who are you targeting and why?

Are we playing offence or defense? Both?

Do you envision these metrics changing over time?

Integrate

What’s your vision for social media and its integration into operational marketing systems?

How do you intend to measure the effects of social media on brand equity and reputation, pipeline, and sales orders and margins?

And how will you integrate social analytics into other customer data analytics?

So what are the critical process and performance questions IT should ask marketing?


Linking together social and customer data allows you to manage marketing consistently across multiple channels

Planning, coordinating and executing marketing campaigns to stimulate demand – it’s a process that includes social media

Create relevant

messages

Deliver targeted messages and offers

Optimize display and search ad programs

Insights from social media

and other data sources

Capture responses and

refine

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Social Media Strategy … Measuring Impact

Consumer Products’ Company’s 4-Point Strategic Plan for Social Media Analytics:1. Establish Social Analytics Center of Excellence

2. Establish Advanced Social Analytics Capability for Brands, R&D, Strategy, and Public Relations

3. Progressively develop and roll out Social Analytics cockpit across Brands and Organizations

4. Train Business Analysts within each organization to leverage tools & consumer insights

AnalyticsAffinity

EmergingTopics

Sentiment

Integration


■ A 100% increase in analyzed relevant discussions

■ Sophisticated analyticsthat drove decision making

… achieving the highest share of positive statements among all competitive products.

The launch of a permanent mousse coloration product drove significant share of voice over its well established competitors...

Product brand check…what do customers think about my product?

Using CCI, Henkel discovered a competitor weakness related to an underlying category attributes valued by consumers

■ Increased positive share of voice ■ Confirmed and validated market

strategy


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How Do We Measure Process and Success …. Why Analytics


Social Media Influence

78%of consumers trust peer

recommendationsSource: August 25, 2009, “The Broad Reach Of Social Technologies” Forrester report

770million people worldwide visited

a social networking site.Source: comScore, Social Networking Phenomenon


SocialNetwork

Analysis

Leader: High number of contacts in his/her community and reciprocity among them.

Follower: Person with a similar profile to leader but in less grade. He/She has direct communication with the leader.

Outlier: Person with a high number of contacts both ways, but with low reciprocity.

1st Grade Marginal: Person with a profile similar to the follower, but he/she is not near the leader.

2nd Grade Marginal: Profile not similar to the rest of the roles. He/She has few or no bidirectional relationships.

Important: Some people have more influence than others, and some are more subject to

influence than others


Social media analytics that delivers an accurate view of

customer attitudes and brand preferences

Predictive capabilities that bring repeatability to ongoing decision

making, and help identify new market opportunities

Unique customer automation solutions that maximize 1:1

consumer relationships and their revenue impact

Social Media Analytics … integrating social media insights and predictive capabilities into marketing processes, helping customers proactively promote and anticipate consumer preferences, advocacy and loyalty to improve marketing ROI and grow revenue.

What’s theRight

Balance?

Analyzing social media and applying predictive capabilities to discern new opportunities, segments and intentions that can optimize marketing and web activities and drive revenue

Technologies that Bolster Existing Marketing Processes to Monetize Social Investments


Social Media Foundation: IBM Cognos Consumer Insight

Understand your customers Make evidence-based messaging

decisions Ensure seamless customer

experience across all channels Expand your point of analysis

• Enterprise class ability to analyze billions of blog posts

• More than 20 years of NLP experience

• Determine affinity to multiple analytic dimensions

• Provide related topics above and beyond your search

• Seamlessly integrate with Cognos BI


Social Media Analytics and Predictive Analyticsbased on January 2009 “The Listening Platform Landscape”

Predict Customer behavior (churn, Xsell, Upsell) Campaign outcomes Influencer / Influenced

Predictive Models

IBM Cognos Consumer

Insight

IBM SPSSPredictiveAnalytics


Attitudinal

Interactions

Descriptive

Behavior

Social Media

OnlineSurveys

Points of Interactions

Optimize and Execute Campaigns

Viral marketing offers to customer

Special offersfor Advocates and Potential

Advocates

Scoring for propensity to buy

ScoringPropensity toAdvocate

Using social media to identify influence and action

LeadingDetractors

LeadingAdvocates

SocialLeaders

Quantify, Monitor & Segment

Business Analytics


■ Identified segments using weighted scoring based on social media activity and discussions regarding brand attributes

■ Combined social media analysis with predictive capabilities to ascertain triggers of segment movement from brand believers to brand advocates

… to establish a baseline of marketing activities that can be evaluated on driving revenue and ability to influence.

Global consumer goods company created an advocacy model that measured participation with a brand and its attributes …

Social Segmentation – Customer example…understanding motivations to drive revenue

■ Predictive model used to determine the propensity to gain/retain influence by assessing posting patterns to identify the likelihood of a blogger to move into a more positive participation segment

■ Segment movement was predicted on similar factors in terms of determining increasing levels of passion, increasing frequency of postings


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Global digital content created will increase some 30 times over the next ten years – to 35 zettabytes (IDC)

How can we ensure analytics mean something with massive growth in data volume … Governance


Where are you in a social maturity curve?D

ata

Sour

ces

Organizational Maturity & Sophistication

Quantify & Operationalize

Integrate Transparently

Listen

Mainstream Social Media

Monitor & Engage Lightweight “Domain-Specific”

Analytics SaaS-Only

Identify & Track KPIs Qualitatively Improve

Marketing Decisions Open-up Social Media

Marketing Channel

Identify & Measure ROI Operationalize Insight via

Business Processes Quantitatively Improve

Marketing Decisions

Capa

bilit

ies

Busi

ness

Out

com

es Predict & Improve Outcomes With Continuous Feedback

Quantitatively Optimize Decisions Across Functions

Limited Governance

Limited sentiment Network & influencer

analysis Limited back-end process

integration SaaS & On Premise Business Intelligence

Broad Public Social Media Sourcing (“Big Data”)

Enterprise CRM & Transactional Data

Full Sentiment Geo-Spatial Analysis Platform Analysis Predictive Modeling SaaS & On Premise

Seamless Integration of Internal, Extranet & Public Social Media Analysis & Action

Systemic Governance

Predict & Integrate

Complete Back-End Sourcing: ERP, HR, etc

3rd-Party Datasets OEM-Level Sourcing of “Big

Data”

Partner / Ecosystem Datasets

Embedded Social Analytics

“Targeted Crowd Sourcing”

Don’t wait to start a data

governance discussion with marketing …


Social Media Readiness – IT Considerations

Best Practices: Applying Social Business Challenges To Social Business Maturity Models, by Ray Wang, Costellation Research, 2011

Social media has broader business implications … IT needsto be involved as guardians of data and its distribution withinthe enterprise

Yes… but be sure that marketing is engaging a wider audience. Social media has a wider impact on an organization’s different functions – requiring cross-functional approaches to its adoption and management.

Further confirmation that the business model needs to match the application of social media … that scale and governance are central.


• Marketing is going to use social media …

• IT can help marketing by helping the CMO and his team:

– Map out the right social media and marketing integrations process

– Provide analytics that enable the measurement the effect across different business drivers

– Establish data governance to deal with the huge volumes of social media data and integration into customer analytic processes

Final Thoughts ….


Questions?

??????

Mark HeidEmail: [email protected]: @mheidLinkedIn: Mark Heid


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"Social Media and IT - What IT Needs to Know" - Lotusphere 2012

Technology

social media social

social analytics

social media strategy

proliferation of social

right customer

social media68

social frontlines

ibm corporation3