social media and startups

SOCIAL MEDIA & STARTUPS

Presented at Pitch & Mix at IdeaSpaceCambridge, 23 September 2010

Eric SwainManaging Director

Businesses need an Internet presence

if

The Internet is increasingly social

and

Businesses must have a social element

then

David Gillespie

WHAT

social networkssocial mediasocial business

DON’T FOCUS ON THE TOOLS!

It’s about people having conversations, connecting

and engaging online.

unsocialadvertiseattention

targettelevised

one to manyimpressions

campaignscontrol

socialentertainparticipationcontentfriendedone to one, many to manyexpressionsmovementsleverage

Unsocial / Social

CONNECTED 2.0 PRINCIPLE

CONNECTED 2.0 PRINCIPLE

90-9-1 PRINCIPLE

10

“In social groups, some people actively participate more than others… Social participation tends to follow a 90-9-1 rule:”

SOCIAL MEDIA AND STARTUPS

challenges

resourcesunknown

noisenot your customers

no brandresources

need speed

opportunities

access to passionideareachnetworksfresh brandfreedombuild real relationships

WHY

social networkssocial mediasocial business

The new marketing is about being found by customers when they are looking to buy what you are selling.Be found

when and where your customers are looking

This means on the

Internet and the lips of

friends

A recommendation from a friend would make 71% of people more comfortable with a product or service – more so than advertising (15%) or even personal experience (63%)

MediaLab Startup Ideas

VERTICAL ENGAGEMENT

Between the org and peopleCampaign-based, valuable but limitedThis is your engagement activity

LATERAL ENGAGEMENT

Between peopleFor startups, this starts with the Idea“We have to share this”

http://blog.nielsen.com/nielsenwire/nielsen-news/social-networking-new-global-footprint

2/3OF THE GLOBAL INTERNET POPULATION VISIT SOCIAL NETWORKS

The power of social media lies in people using these tools – the creation of self-organised communities of like-minded people – making it a good way for businesses to understand, inform and connect with the people who buy their products and services.

RE-THINKING MARKETING

old marketing

telemarketingprint ads

direct mailtrade showstv/radio ads

spam

interruption!

new marketing

seo/search marketingbloggingsocial mediarssviral videosword of mouth

permission

Startup Ideas

“My customers don’t use social networks”

WHY

Relationship

Authority

Discovery

RELATIONSHIPS

AUTHORITY

DISCOVERY - 75/25 GOOGLE PRINCIPLE

75% 25%

Google weighs external links over on-site keywords 75/25

Search click rates SEO

DISCOVERY – SOCIAL SEARCH

WHY? - ROI

Cost Reduction

• Ops efficiency

• Reduced marketing spend

• Shorten sales cycles

• Cheaper customer service

• Market research

• Business intelligence

Revenue Increase

• More transactions

• Higher yield

• Net new customers

• Customer loyalty

ROI – F.R.Y.

FrequencyIncrease how often customers buy from us

ReachIncrease net number of transacting customersIncrease net number of transactions per customer

YieldIncrease average spend per transaction

FRY from Olivier Blanchard My illustration

Gary Vaynerchuk grew his family wine shop from $4 million to $50 million using social media.

$0 Twitter = 1,800 new customers

$7.5k Billboards = 300 new customers

$15k Direct Mail = 200 new customers

$0 Twitter = 1,800 new customers

B2B

Content

Expert

Show (not) Tell

Relationships

Trust

Soften & Support

Network

Connections

Knowledge base

StoryTools

Framework

WHAT

social networkssocial mediasocial business

Marketing SalesService & Support

Innovation

PRCustomerExperienc

e

Marketing Insights

Rapid Social Marketing Response

Social Campaign

Social Business/Social CRM

Social Event Managemen

t

Social Sales Insights

Rapid Social Sales

Response

Proactive Lead

Generation

Support Insights

Rapid Social Response

Peer-to-Peer Unpaid Armies

Innovations Insights

Crowdsourced R&D

Reputation Managemen

t

Enterprise Collaboratio

n

SeamlessCustomer

Experience

VIP Experience

Brand Managment

Use Cases of Social

Altimeter Group

MARKETING CASE STUDY – GRASSHOPPER.COM

http://bit.ly/unr2v

Video and boxes of chocolate covered grasshoppersConnection via social networks – not promotion, just conversation, photos, user videos, etc

1st month: •93% increase in website clicks•187,000 video views•1,461 Tweets to 1M+ followers•More buzz than previous 6 yrs

SALES CASE STUDY – HP 31 DAYS OF THE DRAGON

Blogger outreach ONLY

Promotion of new laptop system – HDX Dragon

31 systems to giveaway – bloggers created contests for their readers

•25,000 entries, website traffic up 14%•50M impression, 10,000 videos created, 380,000 discussions•Dragon sales up 84%, PC sales up 10% (sustained)•blog traffic up 150% - Win/Win

SALES CASE STUDY – HP 31 DAYS OF THE DRAGON

Even after the end sales remainwell above normal – long term effects

Giveaways begin

Giveaways end

HP HDX Dragon Sales Results

CUSTOMER EXPERIENCE CASE STUDY - FRESHBOOKS

Userbase up 300% in 2 years

Customer-centric approach

Twitter engagement key

CONSUMER INSIGHTS CASE STUDY - KODAK

Dismay in the social networks at the name of the new Zi8

Kodak launched a contest to let users choose the next name.

1000s of suggestions via Twitter and blog

Press coverage everywhere

PR CASE STUDY – NESTLÉ

Greenpeace “ad” on YouTube

Facebook censorship

Tidal wave of attacks

Have a plan

Domino’s were slow to react initially, but came good.

HOW

social networkssocial mediasocial business

HOW

1. Listen

2. Strategise

3. Implement4. Manage

5. Measure

LISTEN & LEARN

Social technology adoption by consumers is no longer nascent – it’s nearly a mainstream activity.

To be accurate in your social strategy, you must know the specific behaviors of your customer base.

43

SOCIALGRAPHICS ASKS KEY QUESTIONS

1. Where are your customers online?

2. What are your customers’ social behaviors online?

3. What social information or people do your customers rely on?

4. What is your customers’ social influence? Who trusts them?

5. How do your customers use social technologies in the context of your products.

44

MONITORING AND GRAPHING

THE SOCIAL CUSTOMER

“The Social Web is distributing influence beyond the customer landscape, allocating authority amongst stakeholders, prospects, and peers.” – Brian Solis

CLVSocial

Landscape

CRVCustomer Social Customer

STRATEGY

Align social with strategic business goals

Set measureable objectives (measure the right things)

Create strategic plan and financial model

Develop tactics to achieve strategy

Refer to what you learned monitoring

Who? What? When? Where?

Implement / Integrate

Staffing

Cross-departmental

Tools, configurations, workflows

Training

Company guidelines, policies, procedures

MANAGE

Day to day execution

Content production/publishing

Distribution

Community engagement

Business intelligence

Customer support

Market research

Monitoring

MEASURE

Are the objectives being met?

Do we need to reassess or refine the strategy/tactics?

Are we successful?

HOW

1. Listen

2. Strategise

3. Implement4. Manage

5. Measure

TAKE AWAY

52

Examine your 2010 goals

Pick one where social can have an impact

Where to start? Align social with strategic goals

Start small, start now

Pick a goal

Startup Ideas

Thank you!

Eric Swain+44 7773 798259www.spice.co.ukeric@spice.co.uk@ericswain