a look at challenges, measurement, business value and the social web...the changes we can dream for better business

1. Perspectives about Business:
Opportunities in Social Media
Richard Binhammer, Director, Social Media and Community
1 Confidential
TrueMedia Social Media Workshop, August 2011 Global Marketing

2. go for a drive
Key enablers
and strategies
Rethink
Relationships Business and
Technology Global Marketing

3. A Revisionist and Simplistic Look at
Evolution of Business Organizations
and Marketing….
3 Global Marketing

4. Business and
Technology:
aims for efficient
organization of
work through
specialization of
labor
1776, Adam Smith, Wealth of Nations
4 Global Marketing

5. Business Management:
Getting people together
to accomplish desired
goals & objectives using
available resources
efficiently and
effectively.
5 Global Marketing

6. Bureaucracy:
The Boss’ Another Equal or
Colleague or The Boss Corporate
a rational, efficient Corporate
Competitor
Competitor
method of
organization…
Boss Assistant
hierarchical
authority &
functional Direct Direct Direct Report
specialization. Report, Specialty A Report, Specialty B Specialty C
6 Global Marketing

7. Marketing:
Evolved from
production &
efficiency models used
in business to a selling
orientation, where
marketing deals with
the needs, wants and
demands of customers
7 Global Marketing

8. Tremendous
Reach
Mass Markets
Customer
Segments
Global Marketing

9. Marketing
and Business:
more
efficient &
productive…
All for you!
9 Global Marketing

10. Creation of
Iconic Brands
10 Global Marketing

11. Business
Success =
Dominance
and Power
11 Global Marketing

12. 75 Year
Difference in
Business Life
Expectancy
since 1936
12 Source: Deloitte Report: John Hagel Global Marketing

13. Source: Mary Meeker, 2010 Internet Trends Global Marketing

14. 14 Source: Shanghai Web designers via Neville Hobson Global Marketing

15. Global Conversations
Listen. Engage. Act
Global Marketing

16. A shift in
who speaks 66%
for your OF BRAND
TOUCHPOINTS ARE
brand NOW GENERATED
BY CUSTOMERS
34%
OF BLOGGERS POST
OPINIONS ABOUT
PRODUCTS
16 Global Marketing

17. Internet:
Unlike other
technologies, the Web
was unpredictable;
opened more
opportunities to
change perspectives
anywhere it reached
17 Global Marketing

18. Something is
Happening.
Opportunities to
dream? A dream
for brands and
business
organizations
18 Global Marketing

19. Were
markets really
always
relationships
and
conversations?
19 Global Marketing

20. If Markets are Conversations…
• “Networked markets are beginning to self-
organize faster than the companies that have
traditionally served them.
• Thanks to the web, markets are becoming better
informed, smarter, and more demanding of
qualities missing from most business organizations.
Markets are conversations.
• Markets consist of human beings, not demographic
sectors. Conversations among human beings
sound human. They are conducted in a human
voice, Whether delivering
information, opinions, perspectives, dissenting
arguments or humorous asides, the human voice
is typically open, natural, uncontrived.”
20 Source: Cluetrain Manifesto Global Marketing

21. …..But
(Social Media) Conversations are
Not Just Marketing
• In both internetworked markets and among intranetworked
employees, people are speaking to each other in a powerful new
way.
• These networked conversations are enabling powerful new forms
of social organization and knowledge exchange to emerge.
• As a result, markets are getting smarter, more informed, more
organized. (not siloed or segmented the way we normally think)
• Participation in a networked market changes people fundamentally.
21 • Source: Cluetrain Manifesto Global Marketing

22. Conversations
are
conversations
not
Business
segments
Where to find you
Share with others how & why
you have great products/services
…………….and more
22 Global Marketing
Graphic thanks to @Gapingvoid

23. Don’t Look,
Listen or
Touch
This is not a
strategy that
works.
23 Global Marketing

24. The world around us is changing
Control
is not as successful
as influence
companies that embrace this the fastest will win
• Disintermediation between the customer and the expert is happening already
• Users spending more time across the web engaging – beyond company’s website
• Customers trust their peers more than anyone else
• Traditional methods are not scaling; Does Social Media?
24 Global Marketing

25. Dell’s Social
Media and
Community
Journey
25 Global Marketing

26. Dell’s Direct & Online Heritage: Critical Enablers
Leader in online
First company to frictionless
First to sell complex
hit $1M a day in commerce from
configurable items
online revenue order to delivery
One of the first One of the first
companies to Early adopter of
to launch online social media
discussion forums launch online
support

27. Before the Social Web: Our Online Perspective
Dell.com Our
Communities
27
Global Marketing

28. Five years of experiments and experience
December 2006 October 2007 May 2008 June 2009
February 2006 Dell named #1 most
Ratings and Michael Dell quote in Business Week Dell Outlet achieves Global Twitter social brand in
Michael Dell Asks reviews on Jeff Jarvis story quote, “These conversations are $0.5M in sales via Twitter revenues of $6.5 M ranking of 100 top
Why don’t we reach out and help going to occur whether you like it or not. Do you
bloggers with tech support issues?
Dell.com want to be part of that or not? My argument is you
Community team active on Twitter brands
absolutely do. You can learn from them. You can Small Business
improve your reaction time. And you can be a blog launched
August 2006 better company by listening and being involved in
Blog outreach that conversation.”
expands beyond February 2007 March 2008 March 2010
tech support Accepted Solutions China Micro-
IdeaStorm Launched January 2009 June 2009
launched on Community Blogging
A voting based site allowing Dell Organizes in to $2M+ Sales
customers and others to submit Dell France begins Online 4 customer focused
ideas for Dell. Community Outreach via Twitter Social Media Listening
business units
Command Center
2006 2007 2008 2009 2010 2011
Dell Social Media and
Community University
July 2006 launched/5,000 team
Direct2Dell launched June 2007 April 2008 2009 members trained by
end of year
Today Direct2Dell exists in Dell joins Twitter Inside IT launched Dell TechCenter
English, Spanish, Norwegian, January (Aug.)
Blog focused on business
Japanese and Chinese.
Dell launches 2008 customers, and Cloud
Dell aligns Computing. Altimeter recognizes Dell with
EmployeeStorm Spring 2009 December 2009 “Open Leadership Award for
Internal Blogs organization
Launched for for success
Some Members of Huffington Post BlogInnovation and Execution”
Community and (Oct.)
Employees.
Conversations Dell
April 2006 January 2007 deployed within each launches
Tech support StudioDell launched of the new Dell B2B pages
Facebook
outreach to blogs Dell’s video and podcast
February 2008 Business units
(Jun.)
site, with helpful tips and
tricks. Eventually expanding November 2007 Twitter expanded
this into the YouTube channel DellShares launched
making sharing easier. The first investor relations blog by
June 2008
a public company. Channel blog
28 launched Global Marketing

29. Recognizing & Aligning a Powerful Ecosystem
Dell.com
External Communities Our Communities
Team Members
29 Confidential
Global Marketing

30. Listen, Engage, Act.
It’s at the heart of all strategies…
But How to Scale? Think of it as a tool,
not a channel
Global Marketing

31. Listening to Be A Better
Business, Across the Business
31 Confidential From 4,000 posts/day to 26,000 posts/day
3/21/2011 Global Marketing

32. June 2005 – August 2006: Several Online Issues = Offline
too
32 Global Marketing

33. Customers in
need are critical
opportunities
Social Media gives
them voice & you
opportunities
Global Marketing

34. @DellCares Across the Web Generates Positive Connections
The Customer: Model Supplies Sales, Followers: 60,000+
Issue/Resolution: The customer tweeted in regards to an LCD issue w/her PC on 4/18 to her friends.
@DellCares identified the customer was in need of assistance and responded on 4/19, The issue was resolved
on 4/29. MSD tweets her a thank you on 5/25, which she responds to immediately.
… Dell … delighting the Customer
Customer voices Listens, Engages whose following retweets
to 150k+ users
frustration… and Resolves
issue…
Michael Dell jumps in… Model Supplies raves
@ModelSupplies Thanks for contacting You're very welcome! @MichaelDell Thank you
@dellcares and for positive feedback too. for the fantastic service - and for the reminder of
Thrilled to hear you are a happy Dell customer! things still to do! x0x 7:43 PM May 25th via web
6:14 Confidential 25th via web
34
PM May
Global Marketing

35. Surprising Sometimes!
Where your fans are…
…and what they share
Special Thanks to
BlaM4C and Marshalus
& more than 4000 customers before Dell
was on Flickr Global Marketing

36. New opportunities
Further our Direct
connections with Quality Interaction: No tricks or gimmicks
customers
Relationship Marketing:
Link Online:
Behavioral Targeting and Deal Posting
36 Global Marketing

37. Aggregation of Web
Content, Rich Media
Global Marketing

38. Campaigns
Scale, but are
capital intensive.
You can not buy
fans & followers
for life …
Global Marketing

39. A Tool to be Leveraged Across the Fabric of a
Company: different functions, uses and values
Product Development Marketing Online Presence
• Feedback Loop • Demand Forecast • Ratings & Reviews
• Early Warning • Lead Generation • Communities
• New Product • Message Reach • Customer Stories
Ideation
Sales Customer Service Communication
• Leads
• Collaboration • Listening • Rich Media
• Thought Leadership • Support Widgets • Brand Reputation
• Blogs • Outreach • Influence
• ReputationMarketing
Global

40. Customer Connected Employees
are your company’s rock stars
40 Global Marketing

41. Internal Social Networks
• Dell is using Chatter to increase
cross-departmental team
collaboration
• Over 90,000 Dell employees quickly
and easily collaborate around
documents and information like
sales opportunities, team projects
and campaigns
• Fosters relationships
• A hybrid of
Twitter, Facebook, Sina, Ren-
Ren, Orkut
41 Global Marketing

42. Empowering Employees:
Social Media & Community
University
Principles
Policy
Governance
Training & tools
Global Marketing

43. Empowering
Dell Team
Members
Certified: 2357
Unique Team
Members
Trained: 5254
43 Global Marketing

44. Meanwhile …
Back at the
Office
Global Marketing

45. They are asking about
the social web
infrastructure
Global Marketing

46. Starting Down a
New Road, in a
Vehicle, yet to
be proven
Even today, the
Infrastructure is
evolving
46 Global Marketing

47. Authority Exchange
Community
47 Global Marketing

48. Where is
the ROI
Business
Value of
Social
Media
48 Global Marketing

49. • Where customers are  Primary social media focus
• Do they like/love you?  Sentiment
• What are they saying  Listen, learn and improve business
• They recommend you  Your fans deserve appreciation
• Share links with friends  Advocates deserve attention too
• Rating & Reviews  Inform your products
• Publicly complaining  Showing you care about customer
• Going to your website  Purchase or deeper interest
Identify your business objective
Choose the metrics that help you
measure & evolve
49 Global Marketing

50. SM  B2C & B2B
50 Global Marketing

51. Yes Virginia, there is ROI Business Value: It is
measurable in many forms, there is not 1 number …
Global Marketing

52. Look across the entire customer lifecycle. It can be
used everywhere …
• Insight: Social media improves
Dell’s reach and share of voice
• Insight: SM keeps customers
engaged, provides solutions
and improves loyalty.
Dell.com
• Insight: Established causality
between social media activity
and purchase
Our External
Communities Communities
• Insight: Social media based
support improves sentiment
and correlates with higher
revenue • Insight: Social Media provides
high Business Value and
contributes to demand gen
vehicle
Global Marketing

53. Are Businesses
Less Machine
and more
Networked
Organism?
Human
Organizations
53 Global Marketing

54. It’s about
pragmatic approaches
Smart business fundamentals
never change
Global Marketing

55. Connected and Lit Up
55 Confidential Global Marketing

56. you gonna
miss the old
car?
Global Marketing

57. Thank You