SMART BUSINESS, SOCIAL BUSINESS

Michael Brito Senior Vice President, Social Business Planning Edelman Digital Mobile: (415) 871 – 5165 Email: [email protected] Twitter: @Britopian

HTTP://THE SOCIALBUSINESSBOOK .COM

100% of all book royalties are being donated to Not For Sale THE EVOLUTION OF SOCIAL BUSINESS

THE EVOLUTION OF SOCIAL BUSINESS 2008 to present

2003 to present SOCIAL BUSINESS

1995 to present SOCIAL BRAND

SOCIAL CUSTOMER

• Technology Innovation gives • Companies and brands join • Organizations begin humanizing customers a voice Twitter, and create business operations • They are Influential corporate blogs • Organizational models are • Amplified voice across the • Engage with the social formed to include customer in various channels • Organizational silos are torn • Google indexing critical • Social Media teams are down between internal teams conversations about forming slowly • Governance models and social companies • Small budgets are allocated on media policies are created • Social Customers are trusted a project basis to social media • Social becomes an essential amongst their peers as engagement and community attribute of organizational influence grows building culture

The social customer is gaining influence everyday and their voice is amplified via the social web .. says @britopian

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100% of all book royalties are being donated to Not For Sale HOW DOES THE SOCIAL CUSTOMER BEHAVE?

Product Discovery • Active on Google, research products before purchase Social Participation • Fans, followers, likes and RSS subscribers Sharing Content • Engaging with a brand in a two way dialogue, not just consuming content but creating content Brand Advocacy • Discuss the brand within their own micro communities, without hesitation or the need for incentives

The social customer participates a variety of different ways; brands need to be omnipresent and engage with them @britopian

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100% of all book royalties are being donated to Not For Sale 2011 GLOBAL SNAPHOT OF THE SOCIAL CUSTOMER

EUROPE (EMEA) 31% comment on blogs 27% comment in forums 20% uploaded a video online 39% uploaded a photo online 63% watch a video online 13% actively blog

LATIN AMERICA 49% comment on blogs ASIA PACIFIC 35% comment in forums 42% comment on blogs 41% uploaded a video online 43% comment in forums 56% uploaded a photo online 29% uploaded a video online 74% watch a video online 50% uploaded a photo online 27% actively blog 65% watch a video online 37% actively blog Marketers should consider more than just Facebook and Twitter; there are other networks too says @britopian

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100% of all book royalties are being donated to Not For Sale THE NEW PURCHASE FUNNEL

• A brand should build relationships with the social customer on order to drive advocacy • Advocates talk about the brand, even when the brand isn’t listening • Advocates are trusted among their peers and within their micro communities • Advocates are aiding and influencing others down the purchase funnel • The reach of one advocate is minimal; as an aggregate, the total reach can make a strong business impact

Advocates aid & influencers their communities through the purchase funnel and don’t need incentives to engage says @britopian

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100% of all book royalties are being donated to Not For Sale DEFINING A SOCIAL BRAND

When a product, brand, organization uses Twitter, Facebook, blogs, Google+ or any other social technology to connect with the social customer and/or its constituencies.

A social brand is any organization that uses social technologies to engage with the social customer says @britopian

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100% of all book royalties are being donated to Not For Sale ORGANIZATIONS FOCUSING ON INTERNAL DYNAMICS

• The social brand has caused chaos and organizational anarchy in many companies today • Employees are running wild on the intrawebs with little to no guidance, direction or governance • Different geographies and business units are creating social communities externally and not sharing or communicating internally

The social brand has caused chaos for many companies today; now they are focusing on changing internally @britopian

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100% of all book royalties are being donated to Not For Sale USHERING IN SOCIAL BUSINESS

• A social business is built upon three pillars – people, process and technology • Change management and culture change is essential in order for genuine social business transformation to occur • Organizations cannot have effective external conversations with customers unless they can have effective, internal conversations with each other first

A social business is built upon 3 pillars – people, process and technology says @britopian #socialbiz

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100% of all book royalties are being donated to Not For Sale UNDERSTANDING THE DIFFERENCE

SOCIAL BRAND SOCIAL BUSINESS

External Communications Operations & Change Management (internal)

Usually owned and driven by marketing or corporate Business leaders, employees in every job function across the organization communications and in every geography

Engagement with the social customer and within the external Engagement with internal teams and channel partners at every level within community like blogs, Twitter and Facebook the organization

Measurement: clicks, impressions, engagement, likes, comments, Measurement: employee participation, # of employees trained, process web traffic, etc. efficiencies, etc.

Budget allocated to support external facing objectives like agency Budget allocated towards “consultative” agencies, internal social support, Facebook applications, social ads technologies, training and change management initiatives

Little to no internal collaboration to be somewhat effective Collaboration is imperative to the success of social business transformation

Difficulty level is easy Difficulty level is hard, very hard

A social brand focuses on external communications w/the social customer. Social business focuses on the internal says @britopian

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100% of all book royalties are being donated to Not For Sale COMMON ORGANIZATIONAL MODELS - CENTRALIZED

• In a centralized organizational model, the “social media” job function is usually owned by corporate communications • Little to no collaboration between corp com and other marketing organizations and business units • Organizational Silos dominate • No social media policies that empower employees to engage externally

@britopian says that centralized social organizations are surrounded by silos that prevent knowledge sharing and communication

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100% of all book royalties are being donated to Not For Sale COMMON ORGANIZATIONAL MODELS - DECENTRALIZED

• In a decentralized organizational model, the “social media” job function is scattered – everyone is doing it • Many decentralized organizations are a natural result of silos • Little to no collaboration or best practice sharing is happening • Loose social media policies exist but rarely enforced • Confusion about roles and responsibilities and conflict about “who owns” social media

Social media was bred out of decentralized social organizations i.e. Product groups engaging with the social customer @britopian

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100% of all book royalties are being donated to Not For Sale FULLY COLLABORATIVE SOCIAL BUSINESS MODEL

• A governing body, usually a “Center of Excellence” exists that is responsible for governance and strategic insights • Responsible for sharing best practices and technology recommendations with regions and other business units • Geographies and business units will execute external social media programs

A fully collaborative social business is usually driven by a social media “center of excellence” says @britopian

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100% of all book royalties are being donated to Not For Sale FROM CHAOS TO GOVERNANCE

GOVERNANCE DOCUMENT BEHAVIORS/DETAILS

Social Media Policy • Full disclosure within social media channels (Legal Document) • What can and cannot be shared online i.e. anything confidential, financial or operational results, forecasts, or personal information about others • Do not post anything that is defamatory, harassing, an invasion of privacy or in violation of any applicable law or enterprise policy, including the Company’s Code of Business Conduct and Ethics • Employees are accountable for their actions. They are personally responsible for what they share.

Social Media Guidelines • Guidelines include “rules of engagement” and “how to act” • Be professional, courteous, respectful to others, transparent • Only write/blog/tweet about what you know Moderation Guidelines • Usually addresses the organization’s moderation policy for communities and Facebook • Post moderation – content is approved immediately and checked later • Pre moderation – content has to get approved before going live

Governance is the key to success for social business transformation; it builds intelligence and process @britopian

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100% of all book royalties are being donated to Not For Sale FROM CHAOS TO GOVERNANCE

GOVERNANCE DOCUMENT BEHAVIORS/DETAILS

Global or Business Unit • A process for geographies or business units that want to create an external presence on Expansion into Social Twitter, Facebook or other • Usually a “center of excellence” or social media committee will have to approve and require the region or business unit to present a plan of action that addresses the following:  What is the content strategy?  Is there a community manager ready to engage?  What is the moderation and/or escalation policy?

New Social Media Practitioner • Usually addresses a process for new employees that want to engage and talk about the brand within their own social networks

Training • A training program that outlines very specific curriculum and what the organizational expectations are once an employee becomes a social media practitioner

Creating a learning organization will help companies become more open and intelligent – necessary for social business says @britopian

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100% of all book royalties are being donated to Not For Sale CREATE A PARTICIPATORY LEARNING ORGANIZATION

Internal Metrics: numbers of employees trained :: number of employees blogging internally

Training Curriculum Training Curriculum Training Curriculum I • Basics of Social Media (i.e. overview of • Basics of Community Engagement • Advanced tactics of Community N blogging • Listening & Monitoring Tools and Apps Engagement and Management • Overview of owned media channels to • Intended Uses of Social Media • Leveraging search to create social T include enterprise communities, • Engagement Model & Escalation content for blogs E blogs, Facebook and Twitter accounts Process • Metrics deep dive – understanding • Policies & Guidelines • Metrics Overview metrics and making data driven R • Simple Escalation process decisions Additional Material N • Advanced training on social tools and Additional Material A • Desktop Conversational Guide technologies like Radian6, Meltwater • Desktop Conversational Guide • Links to owned media social media Buzz, Sprinklr, Shoutlet, CoTweet, and L • Links to owned media social media channels other publishing/listening platforms channels. • List of industry influencers • Train the trainer • List of industry influencers • Social Post Suggestions

WHITE BELT BLUE BELT BLACK BELT Awareness & Engagement Fluency & Participation Expertise & Ownership

Organizational Expectations Organizational Expectations Organizational Expectations E • Research & monitoring • Frequent tweeting and retweeting; • Frequent blogging, tweeting and • Listening to owned media channels responding to comments on/off of responding to comments on/off of X • Escalate conversations to others enterprise owned media channels enterprise owned media channels T • Responding to customer support issues • Solving customer support issues on and and escalating to appropriate channels E off enterprise owned media channels • Basic community management • Mentoring and training white and blue R belts; team brown bags N • Speaking at conferences • Participate in and attend bi-weekly social A From participation to complete ownership media integrations forums L External Metrics: share of voice :: community growth :: aggregated reach and impressions :: number100% of allof book customer royalties problems are being donated solved to Not For Sale ESTABLISHING A MEASUREMENT FRAMEWORK

Financial Impact Metrics

ROI These metrics measure the amount of money invested on a program or initiative and the amount of money received from that same program. • Establishing a measurement Paid, Earned, Paid, earned, and owned media value is defined as the monetary value of impressions Owned Media delivered from different marketing channels and assigning an equivalent cost per thousand framework is more about Value impressions (CPM) that a company is willing to pay (or has paid) for those impressions. ensuring that all stakeholders Purchase Funnel Specific metrics can be defined at each phase of the purchase funnel – Awareness, agree on social media Metrics Consideration, Preference, Purchase, Advocacy. One example is: measurement; and that its • Awareness = Total ads served or impressions • Consideration = Total clicks on ad measured consistently across the • Preference = Number of users who engaged with branded content, blog comments • Purchase = Number of users who purchased organization. • Advocacy = Number of users who joined a community

Non-Financial Impact Metrics

Community • Community membership & MTM growth Health - Growth • Content views and downloads • Content or channel RSS subscriptions • Unique visitors and page views

Community • Customer retention Health - • Customer satisfaction scores (CSAT) Membership • Customer loyalty scores • Overall sentiment within the community

Community • Likes, shares, and comments Health – • Twitter @replies and @mentions, Lists It’s less about how to measure Engagement • YouTube comments and embeds social media; more about ensuring • Blog comments that everyone is consistent says @britopian Share of Voice & Share of voice is a company or product’s conversational weight Sentiment expressed as a percentage of a defined total market. …tweetable moment Sentiment is the context of the conversations. It’s usually categorized as positive, negative, or neutral. 15 INDICATORS OF SOCIAL BUSINESS TRANSFORMATION

1. Organizational leadership mandating that internal teams collaborate across functional business units, geographies, product teams and channel partners 2. CEO and/or executive teams using social technologies to communicate externally and encouraging employees to do the same 3. Social Media “Center of Excellence” teams and Social Organization Models forming 4. Global/functional teams sharing best practices frequently; organizational silos die 5. Social behaviors become engrained in the everyday fabric of employees’ workflow 6. Social business becomes a consistent line item in marketing, operations and IT budgets 7. Human Resources adds “social media” in job descriptions and employees are held accountable to participate

One indicator of social business transformation is a consistent budget line item for social media People says @britopian

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100% of all book royalties are being donated to Not For Sale 15 INDICATORS OF SOCIAL BUSINESS TRANSFORMATION

8. Governance models created, published and shared across the organization i.e. process for new employees to be trained to be social media practitioners, escalation processes, etc. 9. Social Media Policies and guidelines co-created by senior management and employees 10. Consistent social media measurement framework agreed upon and used to measure both internal and external social initiatives 11. Workflows created that collect external customer feedback and filtered back to the product organizations

One indicator of social business transformation are co-created social media policies and guidelines says Process @britopian

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100% of all book royalties are being donated to Not For Sale 15 INDICATORS OF SOCIAL BUSINESS TRANSFORMATION

12. Internal communities and collaboration systems deployed and being used across functional business units – sales, marketing, customer support, 13. Collaboration happens within internal communities more so than in email or conference calls 14. Social CRM capabilities, applications and systems become a priority in management and deployment 15. IT loosens up firewall restrictions (bandwidth, IP blocking) of social media usage from behind the firewall

One indicator of social business transformation is when collaboration becomes a priority Technology @britopian

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100% of all book royalties are being donated to Not For Sale THE SOCIAL BUSINESS CHANGE AGENT

is responsible for … should understand … educating others about social business including but not social media – in terms of being a necessary imperative for limited to senior executives, employees, partners, and an organization to address and successfully interact with customers the social customer facilitating collaboration across job functions, teams, business basics such as operations, human resources, business units and geographies customers support , finance, etc. making strategic recommendations on what type(s) of social technologies such as collaboration and community social technologies to deploy related software applications creating, distributing and managing various governance community management, marketing strategy, models (i.e. social media policies, crisis communications, measurement i.e. paid, earned and owned media and feedback workflows) asking for more budget every quarter the brand, it’s products and services persuading the c-suite that social business should be a the basics of change management, culture, strategic priority and come equipped with case studies and communication, collaboration and employee models communications/engagement how to articulate change to employees at all levels in the demonstrating business value of a social organization organization

The social business change agent can be anyone in the organization that is inspiring and drive change @britopian

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