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The Facebook Era
Preparing for a New Kind of Customer 
Relationship



                                        “The Facebook Era recognizes 
Clara Shih                              that we’ve come to a place where 
Author, The Facebook Era                people can represent their real 
                                        identity—and use the social filters 
CEO, Hearsay Labs                       on the Web to connect with the 
                                        world around them.”
                                        —Sheryl Sandberg
October 15, 2009                        Chief Operating Officer, Facebook
Practice what we preach




                      @clarashih
                      #EEC09




                                   TheFacebookEra.com
Agenda
Trends and Numbers

New Consumer Psychology

Rethinking Sales and Marketing

Q&A




                                 TheFacebookEra.com
The trends and numbers




                         TheFacebookEra.com
Welcome to The Facebook Era


                         On Facebook alone . . .

                          Over 300M active users

                      8 billion minutes spent each day

                           1 million developers 
                           from 180 countries

                              is email dead?




                                           TheFacebookEra.com
PUBLISH




                               everybody‐to‐
                               everybody



                many‐to‐many




          1‐1                    1‐many

                                    CONSUME
Winning mainstream audience appeal




         Source: Nielsen Online Global Index, Dec 2008




                                                         TheFacebookEra.com
Facebook’s growth just keeps going




                                     TheFacebookEra.com
CMOs are shifting dollars to social media

                             CMO Council – March
                                   2009

                           “ Digital marketing and new 
                           media dominates demand 
                           generation and advertising 
                           spend allocation priorities for 
                           the coming year, with budgets 
                           aimed at online and Web 2.0 
                           initiatives almost 50% higher 
                           than spend earmarked for 
                           traditional media. ”




                                                TheFacebookEra.com
Three Pillars of Facebook Marketing




      Facebook Apps   Facebook Pages   Facebook Ads
The new consumer pyschology




                          TheFacebookEra.com
(short video)




                TheFacebookEra.com
Why Facebook was different




                             TheFacebookEra.com
Facebook as a forum for online identity


                              Photos and interests

                                Demographic info

                              Employer, school, city

                                     Friends

                           Socially acceptable to share




                                         TheFacebookEra.com
Facebook Connect extends trusted identity to 
any website




                                    TheFacebookEra.com
Example. http://thefacebookera.com




                                 TheFacebookEra.com
As a result, user expectations have changed


                             Due diligence expected

                            Personalized interactions

                                 Transitive trust




                                          TheFacebookEra.com
Facebook and Twitter invented new modes 
of communication


                               Casual 

                           But emotional

                          Foster weak ties

                          Capture long tail




                                         TheFacebookEra.com
Rethinking Sales & Marketing




                               TheFacebookEra.com
Sales: The Power of Transitive Trust



                                  Qualify leads early
                            Low‐cost way of staying in touch
                                Build personal rapport
                                  Navigate buyer orgs




                                            TheFacebookEra.com
Sales: Prospecting Friend‐of‐Friend Networks




                                Example: 
                                Aster Data Systems




                                      TheFacebookEra.com
Customer Service: Crowdsource 
to Your Customers




                             TheFacebookEra.com
The ultimate opt‐in marketing channels
                        Example
                        Dell Outlet moved $2M in inventory over 
                        Twitter last year




                                                 TheFacebookEra.com
Marketing: The power of hypertargeting


“ Fifty percent of my          Minimize wasted ads
  advertising is wasted, I 
                                  Latent interest
  just don’t know which 
  fifty percent”              Test new segments and 
                                    messaging




                                          TheFacebookEra.com
Marketing: The power of referrals



                                 Word of mouth 
                                   automated
                            Existing customers = your 
                                    sales force
                               Search.twitter.com




                                         TheFacebookEra.com
eMarketer: Endorsements from friends 
matter most




                                TheFacebookEra.com
Social Customer Lifetime Value (sCLV)




  Social CLV = CLVold
              + Word‐of‐mouth referrals
              + Customer support cost savings
              + Sales resulting from idea contributions

                                               TheFacebookEra.com
Thank you

                      Stay in touch
http://facebook.com/thefacebookera




                                          RELEASED APRIL 2009
                                      Featured in The New York Times



                                                       TheFacebookEra.com

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EEC09 - Clara Shih, autora del libro The Facebook Era y creadora de la aplicación Faceconnector