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BUILDING    EFFECTIVE
           COMMUNITIES
                FOR

           BUSINESS
              Jim Haughwout
Approach:
                to Build Effective
   10 Tips      Communities for
                    Business

Based on Real-world Lessons:
1.   Treat Your Community
        as a Channel
     not a Destination
Traditional
Customer
Channels
(Pre-Internet)
Added
Customer          These did not destroy
Channels          traditional marketing
By the Internet




   We Assimilated these New Channels
New
Customer Channels
Thanks to Web 2.0
                    We need to
                    manage these just
                    like
                    our other channels:
                     Define key message
                       Target audience
                       Define interaction
                       Manage content
                       Report and analyze
2.   Put Your Finger
      on the Problem
If you jump on the
Bandwagon
You’ll Just Implement
     Technology

   To achieve
    business
   results, you
  need to focus
   on solving a
     problem
Instead   Define the

                                        6σ
           Problem
          You Want to Solve


  Structured
   Problem
  Statement               Addressable
                            Market
                            Position
           Return on
          Investment
Example   Defining a            More on this
           Problem               Solution in
                                Our Next Tip
             To Solve

            Problem We have many members but they
                    are not generating sufficient
          Statement online revenue

Addressable  Photo and craft enthusiasts
     Market  Photo “professional amateurs”

           Solution Create a community that taps ideas
                    of “professional amateurs” to incent
           Position craft enthusiasts buy online products
3.         Destination
     Pick Your
     Before You Leave
If You Do Not Know
Where You Are Going
How Will You Know When (or If) You’ll Get There?


Don’t
“Eye Ball” it:
Get a Map…
Map Your
Success
from Your
Value Chain
Five Examples of Mapping Your
Community Value Chain
To Define Success…

 Members  Leads Conversions
 UGC  Page Views Ad Revenue
 UGC ✚ Tags  Topics Targeted Ads
 Members ✚Tag their UGC  Demo Data
  Affiliate Marketing Campaigns
 Feature Promotions  Member Interaction
  Click-through-Sales
This Converts
Member Interaction
   into a Sale
4.   Use the Right Tool
          for the Job
There is More
Than One Tool
  To Build Business
    Communities



Don’t
Automatically
Try to Build Your Own:


      You have Many Tools to Use
   Pick the One that Fits Your Problem
Mobile Social
Low Involvement Threshold

Leverages ubiquity of
mobile phones and easy of
user identity to drive action



Social Contests
Low-Med Involvement Threshold

Harnesses competition and
social reputation to drive
content creation
Crowdsourcing
Medium Involvement Threshold

Taps the “wisdom” of
crowds to elicit “pre-
approved” ideas



Full Destinations
High Involvement Threshold

Strengthens existing
communities with branded
Facebook- or LinkedIn-like
social network
5.   Remember,
       It’s Not Just
      About You




                       © The Walt Disney Company, 1937
People are Busy,
They Will Only Participate
If it is Worth Their Time and Effort

Meet Your
Competition:
Which of these is
More Compelling?
Same Purpose, but Different Presentation


    Can you let                  What would
     us know                     you like us
     where we                     to provide
                         O
      can sell           R
                                   to make
    things and                   you happier
       make                        with our
     money?                        product?
A Real-life Example
Of a Community That is Compelling to its Customers



                   “Would you
                   like to lose
                   weight and
                  look better?”
6.   Let your,
     Members be
     Themselves
“I Already Have Too Many Accounts…
Don’t Make Me Join Y.A.N.”
I Won’t (If I do, I’ll likely forget)

                                          Now You
                                        Come Along...

                                         Can You
                                         Join Our
                                         Network
                                           Too

                                            ?
Let People Extend Their Network
By Using Existing Identities



            This eliminates a
             huge barrier to
            registration and
              participation
Another Real-life Example
Small Business Communities: Two Different Models




                        vs.
7.

                                                 Greedy
                                                 Don’t be




© Twentieth Century Fox Film Corporation, 1987
Not Everyone Is a Creator…
Most Are Spectators
Until They Find Something They Like


                                                    Creators




                                                      Critics




                                                     Joiners




                                                  Spectators

          The Social Technographics Ladder
          Source: Forrester Research, Inc. 2009
                                                                0%   25%   50%   75%
Be Open With Your Content
Let Everyone In
                      When you make people
                       Join before you show
                         them content you
                      miss half of your market

                       When you design for
                        Creators you are
                      designing for less than
                        ¼ of your market

   “Creator Oaks”     “Greedy is NOT Good”
However, Most Ignore This
An Example of Great Community that is “Gated”
Open Network Interaction
Let People Be Spectators Before Joiners & Beyond
8.   Treat Your
   Community
Like a Garden
Step 1:
Seed Compelling Content
To Attract “Like Content” from Others




                                    Let’s
                                   Take a
                                    Look
Real World
Example:
Result of
Seeding
Expert
Content




               New
             Valuable
             Member
Step 2:
Nurture the Community
Like a Garden to Make It Grow




                                Week 1   Week 2   Week 3   Week 4   Week 5
Step 3:
Prune the Weeds
To Prevent Bad Elements From Taking Over

                             Weed Your Content
                             Through Moderation
                              Highlight Good Content
                              Archive Old Content
                              Edit or Send Back
                               Content with Errors
                              Reject Inappropriate
                               Content
Crowdsourcing Without Moderation:
The National Dialog
9.   Create
a SAFE
Environment
If You Do Not Create
Safe Environment
Your Members Will Be Afraid to Participate


    Look at your
      personal
    experience…

  Which mainstream
   social networks
  have you joined?
  Which did you join
        first?
You Need to Employ
Four Tools
To Create A Safe Community


                             1.   Attribution
                             2.   Privacy
                             3.   Flagging
                             4.   Moderation

                              If You Do Not Have
                               ALL of These Your
                             Community is Unsafe
Safety Tool #1:
Attribution
Make Critics & Creators Identify Themselves

  Raises likelihood of valuable
   content (UGC)
  Encourages more civil
   discussion
  Enables targeted action (both
   rewards and penalties)
Safety Tool #2:
Privacy Controls
Keep Data Private Unless Told Otherwise

  Builds trust through control
  Ensures regulatory
   compliance
  Reduces risk of social
   network abuse
Safety Tool #3:
Flagging
Enable Members to Police Themselves

 Flag content as
  Inappropriate
 Escalates
  attention for
  Moderation
 Automated
  removal upon
  threshold


         Provides 24 7, Empowered Protection
Safety Tool #4:
Moderation
Enable Community Managers to Moderate Content

 Enables
  Message Control
 Pro-actively
  Protects Your
  Members
 Enables You to
  Reward Good
  Content (and
  Penalize Bad)
10.   Connect All
      the Dots to
      Capitalize on
       Your Idea
If you leave your
Community Detached
It Won’t Drive Results Into Your Value Chain


    Instead you will
  just create a place
     to socialize…

   To avoid this, you
  need to embed the
    community into
    your enterprise
At a Minimum, You Need To
Connect Three Elements:
To Form the Core of Your Value Chain


                         The Community:
                         Where you attract insight
                         and input from partners
                           360 View
                         and customers


The Data Warehouse:




                                                     z
  Where you analyze                        Your Back Office:
      your customers z                   Where you automate
across the community                      rules and workflow
  and your enterprise                             for
                                         SFA, CRM, ERP, etc.
                                          based on customer
                                                insight
When You Link These to All Channels
You Leverage the Community
To Create the Most Value




                      CRM
                      SFA
                      ERP
The Communities Highlighted Today
Have “Connected The Dots”
To Obtain Large Returns on their Investments
Day Job:
Neighborhood America
CIO & VP of Technology
http://www.NeighborhoodAmerica.com



For More Information:
Email:     Jim@NeighborhoodAmerica.com
Twitter:   http://Twitter.com/JHaughwout
Blog:      http://www.The-Corner-Office.com


Questions?

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Building Effective Social Media Communities for Business

  • 1. BUILDING EFFECTIVE COMMUNITIES FOR BUSINESS Jim Haughwout
  • 2. Approach: to Build Effective 10 Tips Communities for Business Based on Real-world Lessons:
  • 3. 1. Treat Your Community as a Channel not a Destination
  • 5. Added Customer These did not destroy Channels traditional marketing By the Internet We Assimilated these New Channels
  • 6. New Customer Channels Thanks to Web 2.0 We need to manage these just like our other channels:  Define key message  Target audience  Define interaction  Manage content  Report and analyze
  • 7. 2. Put Your Finger on the Problem
  • 8. If you jump on the Bandwagon You’ll Just Implement Technology To achieve business results, you need to focus on solving a problem
  • 9. Instead Define the 6σ Problem You Want to Solve Structured Problem Statement Addressable Market Position Return on Investment
  • 10. Example Defining a More on this Problem Solution in Our Next Tip To Solve Problem We have many members but they are not generating sufficient Statement online revenue Addressable  Photo and craft enthusiasts Market  Photo “professional amateurs” Solution Create a community that taps ideas of “professional amateurs” to incent Position craft enthusiasts buy online products
  • 11. 3. Destination Pick Your Before You Leave
  • 12. If You Do Not Know Where You Are Going How Will You Know When (or If) You’ll Get There? Don’t “Eye Ball” it: Get a Map… Map Your Success from Your Value Chain
  • 13. Five Examples of Mapping Your Community Value Chain To Define Success…  Members  Leads Conversions  UGC  Page Views Ad Revenue  UGC ✚ Tags  Topics Targeted Ads  Members ✚Tag their UGC  Demo Data Affiliate Marketing Campaigns  Feature Promotions  Member Interaction Click-through-Sales
  • 15. 4. Use the Right Tool for the Job
  • 16. There is More Than One Tool To Build Business Communities Don’t Automatically Try to Build Your Own: You have Many Tools to Use Pick the One that Fits Your Problem
  • 17. Mobile Social Low Involvement Threshold Leverages ubiquity of mobile phones and easy of user identity to drive action Social Contests Low-Med Involvement Threshold Harnesses competition and social reputation to drive content creation
  • 18. Crowdsourcing Medium Involvement Threshold Taps the “wisdom” of crowds to elicit “pre- approved” ideas Full Destinations High Involvement Threshold Strengthens existing communities with branded Facebook- or LinkedIn-like social network
  • 19. 5. Remember, It’s Not Just About You © The Walt Disney Company, 1937
  • 20. People are Busy, They Will Only Participate If it is Worth Their Time and Effort Meet Your Competition:
  • 21. Which of these is More Compelling? Same Purpose, but Different Presentation Can you let What would us know you like us where we to provide O can sell R to make things and you happier make with our money? product?
  • 22. A Real-life Example Of a Community That is Compelling to its Customers “Would you like to lose weight and look better?”
  • 23. 6. Let your, Members be Themselves
  • 24. “I Already Have Too Many Accounts… Don’t Make Me Join Y.A.N.” I Won’t (If I do, I’ll likely forget) Now You Come Along... Can You Join Our Network Too ?
  • 25. Let People Extend Their Network By Using Existing Identities This eliminates a huge barrier to registration and participation
  • 26. Another Real-life Example Small Business Communities: Two Different Models vs.
  • 27. 7. Greedy Don’t be © Twentieth Century Fox Film Corporation, 1987
  • 28. Not Everyone Is a Creator… Most Are Spectators Until They Find Something They Like Creators Critics Joiners Spectators The Social Technographics Ladder Source: Forrester Research, Inc. 2009 0% 25% 50% 75%
  • 29. Be Open With Your Content Let Everyone In When you make people Join before you show them content you miss half of your market When you design for Creators you are designing for less than ¼ of your market “Creator Oaks” “Greedy is NOT Good”
  • 30. However, Most Ignore This An Example of Great Community that is “Gated”
  • 31. Open Network Interaction Let People Be Spectators Before Joiners & Beyond
  • 32. 8. Treat Your Community Like a Garden
  • 33. Step 1: Seed Compelling Content To Attract “Like Content” from Others Let’s Take a Look
  • 35. Step 2: Nurture the Community Like a Garden to Make It Grow Week 1 Week 2 Week 3 Week 4 Week 5
  • 36. Step 3: Prune the Weeds To Prevent Bad Elements From Taking Over Weed Your Content Through Moderation  Highlight Good Content  Archive Old Content  Edit or Send Back Content with Errors  Reject Inappropriate Content
  • 38. 9. Create a SAFE Environment
  • 39. If You Do Not Create Safe Environment Your Members Will Be Afraid to Participate Look at your personal experience… Which mainstream social networks have you joined? Which did you join first?
  • 40. You Need to Employ Four Tools To Create A Safe Community 1. Attribution 2. Privacy 3. Flagging 4. Moderation If You Do Not Have ALL of These Your Community is Unsafe
  • 41. Safety Tool #1: Attribution Make Critics & Creators Identify Themselves  Raises likelihood of valuable content (UGC)  Encourages more civil discussion  Enables targeted action (both rewards and penalties)
  • 42. Safety Tool #2: Privacy Controls Keep Data Private Unless Told Otherwise  Builds trust through control  Ensures regulatory compliance  Reduces risk of social network abuse
  • 43. Safety Tool #3: Flagging Enable Members to Police Themselves  Flag content as Inappropriate  Escalates attention for Moderation  Automated removal upon threshold Provides 24 7, Empowered Protection
  • 44. Safety Tool #4: Moderation Enable Community Managers to Moderate Content  Enables Message Control  Pro-actively Protects Your Members  Enables You to Reward Good Content (and Penalize Bad)
  • 45. 10. Connect All the Dots to Capitalize on Your Idea
  • 46. If you leave your Community Detached It Won’t Drive Results Into Your Value Chain Instead you will just create a place to socialize… To avoid this, you need to embed the community into your enterprise
  • 47. At a Minimum, You Need To Connect Three Elements: To Form the Core of Your Value Chain The Community: Where you attract insight and input from partners 360 View and customers The Data Warehouse: z Where you analyze Your Back Office: your customers z Where you automate across the community rules and workflow and your enterprise for SFA, CRM, ERP, etc. based on customer insight
  • 48. When You Link These to All Channels You Leverage the Community To Create the Most Value CRM SFA ERP
  • 49. The Communities Highlighted Today Have “Connected The Dots” To Obtain Large Returns on their Investments
  • 50. Day Job: Neighborhood America CIO & VP of Technology http://www.NeighborhoodAmerica.com For More Information: Email: Jim@NeighborhoodAmerica.com Twitter: http://Twitter.com/JHaughwout Blog: http://www.The-Corner-Office.com Questions?