2008 TRIBALIZATION OF BUSINESS STUDY

HOW TO ACHIEVE TRANSFORMATIONAL CHANGE THROUGH COMMUNITIES AND SOCIAL NETWORKS
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A STUDY PRODUCED BY:

Deloitte (www.deloitte.com) Beeline Labs (www.beelinelabs.com) Society for New Communications Research ( www.sncr.org)

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OVERVIEW:

FIRST ACT: UNDERSTANDING THE DYNAMICS AT WORK WITHIN COMMUNITIES SECOND ACT: A QUICK OVERVIEW OF THE FINDINGS OF THE STUDY THIRD ACT: THE MAJOR TAKEAWAYS FROM THE STUDY

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FIRST ACT: UNDERSTANDING THE DYNAMICS AT WORK WITHIN COMMUNITIES

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WHAT’S THIS TRIBAL THING ALL ABOUT?

TRIBALISM IS THE VERY FIRST SOCIAL SYSTEM THAT HUMAN BEINGS EVER LIVED IN, AND IT HAS LASTED MUCH LONGER THAN ANY OTHER KIND OF SOCIETY TO DATE.
(WIKIPEDIA)

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THE MOTIVATIONS ALLOWING THIS TO WORK…

PEOPLE WANT TO CONNECT WITH PEOPLE PEOPLE WANT TO HELP AND BE HELPED PEOPLE OPERATE EITHER IN A SOCIAL FRAMEWORK OR A MARKET FRAMEWORK

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UNDERSTANDING THE DRIVING FORCES OF COMMUNITIES
THE MORE CONTENT YOU HAVE THE MORE MEMBERS YOU WILL GET. THE MORE MEMBERS YOU HAVE THE MORE CONTENT YOU WILL GET. THE BETTER YOU MATCH CONTENT AND MEMBERS TO MEMBER PROFILES THE MORE MEMBERS AND CONTENT YOU WILL GET. THE EASIER IT IS TO DO TRANSACTIONS THE MORE MEMBERS YOU WILL ATTRACT.

THOSE PILLARS CREATE THE DYNAMICS OF INCREASING RETURNS WHICH HELP COMMUNITIES DELIVER GAME CHANGING RESULTS 7

SECOND ACT: A QUICK OVERVIEW OF THE FINDINGS OF THE STUDY

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TOP USAGE SCENARIOS:

Idea generation Co-innovation Amplifying Word of Mouth
New Product Development
Reputation management Product testing

Customer service

Market research
LONG TAIL SALES

CANARY IN THE COALMIN Developer relations

Public relations Employee communications

General Marketing

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OP BUSINESS OBJECTIVES:

Reduce market research costs

Bring outside ideas into the organization faste

Generate word of mouth
Improve PR effectiveness Reduce customer support cost Decrease customer acquisition cost

Increase customer loyalty

Increase brand awareness
Increase new product success ratios
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WHO’S IN CHARGE?

Sales
Employee communications

Product development

MARKETING IT
Public Relations
Finance R&D

Customer service

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DISCONNECT: Not in support of any goal…
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URING PROGRESS AND SUCCESS – QUALITATIVE

Tonality Sustainability

Software downloads engagement

Sentiment Activity levels Participation rate Impact on sales
Impact on cost

Growth

Amount of learning

Anecdotal stories

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Could lead to premature shutdown of community

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THIRD ACT: THE MAJOR TAKEAWAYS FROM THE STUDY

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TAKEAWAY #1: COMMUNITIES ARE ABOUT DELIVERING GAMECHANGING RESULTS

COMMUNITIES CAN

INCREASE REVENUE PER CUSTOMER DRAMATICALLY – I.E., 50%

COMMUNITIES WILL

INCREASE PRODUCT INTRODUCTION SUCCESS RATIOS AMPLIFY EVERYTHING YOU DO

COMMUNITIES

INCREASING EFFECTIVENESS AND DECREASING COSTS

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TAKEAWAY #2: THE RISE OF THE CMO 2.0?

COMMUNITIES

SHOULD BE AN IMPORTANT PART OF THE
CMO’S TOOLSET

(BUT FOR MANY LARGE COMPANIES – THERE IS AN UNDERINVESTMENT AND SCALE PROBLEM)

COMMUNITIES

SHOULD EVOLVE THE ROLE OF THE
CMO INTO

(BUT THAT WILL REQUIRE DRASTIC CHANGES IN ATTITUDE AND APPROACH TO MARKETING)

CHIEF COMMUNITY OFFICER

IF DONE PROPERLY, COMMUNITIES WILL

(REDUCED COSTS, IMPROVED EFFECTIVENESS, NEW OPPORTUNITIES)
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TRANSFORM THE WAY MARKETING WORKS

TAKEAWAY #3: THE NEED FOR NEW MANAGEMENT THINKING

MISMATCH BETWEEN

COMMUNITY GOALS ASSOCIATED INVESTMENTS COMMUNITY GOALS IS BEING MEASURED

AND

MAJOR GAPS BETWEEN

AND WHAT

COMMUNITIES HAVE TO COMBINE WITH MAJOR TALENT INITIATIVES COMMUNITIES WILL TRANSFORM BUSINESS PROCESSES
MOST
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TAKEAWAY #3.5: THE WORST PRACTICES ENJOY WIDE ADOPTION

THE

BUILD IT AND THEY WILL COME
FALLACY

(AGAIN)

THE

LET’S KEEP IT SMALL SO IT DOESN’T MOVE THE NEEDLE PHENOMENON
THE

NOT INVENTED HERE

SYNDROME

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QUESTIONS?

Contacts: Francois Gossieaux, Beeline Labs: francois@beelinelabs.com Jen McClure, Society for New Communications Research: jmcclure@sncr.org Ed Moran, Deloitte: emoran@deloitte.com

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