sales and marketing in the facebookera€¦ · sales and marketing in the facebookera preparing for...

Sales and Marketing in the Facebook Era

Preparing for a new kind of customer relationshiprelationship

Companion slides to The Facebook Era by Clara Shihthefacebookera.com

“The Facebook Era recognizes that we’ve come to a place where people can represent their real identity—and use the social filters on the Web to connect with the world around them.” —Sheryl SandbergChief Operating Officer, Facebook

ContentsIntroduction to The Facebook Era

Social Sales- Expected due diligence- Transitive trust- Facebook is the new CRM- Customer Service 2.0

© 2009 The Facebook Era by Clara Shih TheFacebookEra.com

Social Capital from Online Networking

Social Network Marketing- Loyalty magnification effect and “passive word of mouth”- Recalculation customer lifecycle value- Precision marketing with hypertargeted campaigns- Persona marketing

Corporate Governance

Welcome to The Facebook Era

The Internet Era was about the World Wide Web of information. The Facebook

Era is about the World Wide Web of people. Knowing who is connected to

whom and how.

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whom and how.

Marked by a change in individuals’ behavior, interactions, and relationships

with one another and with vendors

Implications not just in our personal lives but also our professional lives, across the enterprise: sales, marketing, recruiting,

product development, and on.

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No longer just for college studentsIN

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200M+ active users who spend 3 billion minutes each day


Source: Nielsen Online Global Index, Dec 2008

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660,000 developers from 180 countries

Nielsen Online: “social networking sites more popular

than email”

The network effects of social networks

Facebook growth in

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Facebook growth in the US (last six months)

Source: QuantCast, March 2009

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Social technologies are the most important CRM trend in 2009“ ”

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Wealth of data available from social network profiles

As a result, user expectations have changed

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Expected due diligence by sales and marketing

Personalized interactions

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Social network maps allow mutual friend discovery and facilitate transitive trust

Sales reps and others can tap into “transitive trust” – if Customer B knows and trusts Sales Rep C, and

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knows and trusts Sales Rep C, and Prospect A knows and trusts

Customer B, then A is more likely to be open to a conversation with C.

Trust is transitive, to a degree. Prior to the Facebook Era, A and C

wouldn’t have known that B was a mutual contact.

Sales Rep C can use social network maps to connect the dots and tap into transitive trust to get her foot in the door with A

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Online social networking has transformed sales prospecting

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Facebook is the new CRM

Shih: “Facebook is CRM for individuals”

Her app, Faceconnector, was

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Her app, Faceconnector, was the first business application

on Facebook

Integrates Facebook profile and friend information with

Salesforce Customer Relationship Management

(CRM)

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Watch the 2-minute demo>> http://thefaceforce.com

Customer Service 2.0

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Facebook introduced new communication modes that are both more casual and more emotional

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Similar to when we went from in-person to phone, and phone to email)

But unlike email revolution, also more emotional (because of photos and profile)

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The new Facebook communication modes on foster weak ties

Cost of staying in touch goes down- So we can foster more weak ties- Research shows most social capital maximized with weak ties. Usually we are not doing deals with

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our parents and close friends but rather friend-of-friend networks

Capture long tail of relationships- People we meet can become “relationship options” – we have the option but not the obligation to exercise down the road. Can accumulate social capital over time.

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The loyalty magnification effect

Transitive Trust with products –if customer B likes/trusts your

product C, and prospect A

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product C, and prospect A likes/trusts customer B, then A is

more likely to consider C

“Passive” word of mouth -instead of having to actively tell

friends about your product, Facebook News Feed broadcasts on their behalf status messages and someone becoming a fan of

your product. WOM is automated.

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CLV new = CLVold

+ Level of influence x Size of network+ Level of influence x Size of community+ Sales resulting from idea contributions

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Precision marketing with hypertargeted ads

Only target the specific audience segments who are

Fifty percent of my advertising is wasted, I just don’t know which fifty percent

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Traditional method:

Facebook Era method: Hypertarget ads based on profile information

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Only target the specific audience segments who are most likely to buy- eg, golf apparel company targets individuals with “golf” in their list of hobbies on their Facebook profile

Test new segments and messaging

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Hypertargeting helps cost-effectively capture “latent demand”

Minimize wasted ads on people who would never buy

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Cost-effectively capture latent interest (search marketing leaves latent demand on the table)

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B2B versus B2C in the Facebook Era

In general, relationships and trust play a bigger role in purchase decisions of higher-priced items that are more difficult to value

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priced items that are more difficult to value and require greater expertise to understand

Relationship building and hypertargetingindividuals on social networking sites is even more important in B2B because corporations don’t make decisions. Peopledo.

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Persona marketing with social network profile pages

Ideal metaphor for persona marketing (become a “friend”, access to fun or

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(become a “friend”, access to fun or funny information on the profile page)

Can help bring otherwise boring brands to life

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Corporate Governance and Risk

Misrepresentation of brands – either accidental or malicious, such as disgruntled former employee

Information boundaries – trade secrets, PR leaks, customer privacy

“Temporary” corporate identity – what happens when someone who has been Twittering on behalf of a brand leaves the company?

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been Twittering on behalf of a brand leaves the company?

Optimal level of risk is not zero- Companies should add to employee training and corporate policy (similar to email). Zappos Inc. includes “Twitter 101” as part of new hire orientation.

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Individual Threats and Risk

Identity theft and phishing- Users are tricked into disclosing passwords and their accounts get compromised- Identity thieves use compromised accounts to lure friends of the user into wiring money or giving up more information

Privacy- Use combination of Facebook friend lists and privacy control settings to make

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- Use combination of Facebook friend lists and privacy control settings to make sure you are sharing the right content with the right people. People are accountable for managing their online identities just like they manage their offline ones.- “Facebook is forever.” Users need to think twice before posting a compromising photo or comment. - Facebook etiquette should be added to school curriculumCH

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Learn more & join the discussionRELEASED MARCH 30, 2009featured in The New York Times


twitter clarashihblog/web thefacebookera.com

For sales, marketers, business professionalsto understand how to use Facebook for business

ü Understand how customer behavior and expectations of vendors have changed

ü Maximize social capital in deals and your career

ü Establish effective brand presence and hypertargeted

About The Facebook Era, by Clara Shih


ü Establish effective brand presence and hypertargetedcampaigns on Facebook

ü Achieve viral marketing by leveraging transitive trust and social referrals across networks

ü Read success stories from real companies using Facebookand Twitter for sales, marketing, recruiting, and product innovation

from the creator of the first business application on Facebook

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