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Research paper 2007 Social Network websites: best practices from leading services 28.11.2007 – Research paper

Research paper 2007

Social Network websites:

best practices from leading services

Network websites: best practices from leading services 28.11.2007 – Research paper faberNovel Consulting 2007
Network websites: best practices from leading services 28.11.2007 – Research paper faberNovel Consulting 2007

28.11.2007 Research paper

faberNovel Consulting 2007 Public document

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Commons, 171 2 n d Street, Suite 300, San Francisco, California, 94105, USA. 28. 11. 2007

28. 11. 2007 Research paper

Commons, 171 2 n d Street, Suite 300, San Francisco, California, 94105, USA. 28. 11. 2007

2

About the study

Amid the growing number of online “ social ” feature offers, many companies, from major actors to start-ups, may ask themselves: socialfeature offers, many companies, from major actors to start-ups, may ask themselves:

How online social features can impact their customer relationship policyfrom major actors to start-ups, may ask themselves: Which social features and practices bring value to

Which social features and practices bring value to their activitiesfeatures can impact their customer relationship policy What the best candidate for an acquisitions is This

What the best candidate for an acquisitions isfeatures and practices bring value to their activities This study aims at answering part or the

This study aims at answering part or the totality of these questions by:activities What the best candidate for an acquisitions is Providing a social networking website typology and

Providing a social networking website typology and understanding the specificities of these different categoriesat answering part or the totality of these questions by: Identifying social networking website best practices

Identifying social networking website best practices and trends and proposing specific analyses for each sitethe specificities of these different categories Assessing the profitability for firms to be involved in

Assessing the profitability for firms to be involved in online social networking activities,and trends and proposing specific analyses for each site under which conditions and regarding what type

under which conditions and regarding what type of investments

This document provides a general background for understanding social network websites and the study of online matchmaking websites and business network websiteswhich conditions and regarding what type of investments This study is only the first step. Distributed

This study is only the first step. Distributed under creative commons license, it should beof online matchmaking websites and business network websites completed and improved through the contribution of external

completed and improved through the contribution of external experts, firms and web users

as major moves in the industry are expected to occur in the coming months

web users as major moves in the industry are expected to occur in the coming months

28. 11. 2007 Research paper

web users as major moves in the industry are expected to occur in the coming months

3

Summary

Some broad principles for understanding social networking websitesSummary Case study: online matchmaking websites Meetic Match.com Case study: business network websites Xing LinkedIn 28.

Case study: online matchmaking websitesprinciples for understanding social networking websites Meetic Match.com Case study: business network websites Xing

Meeticnetworking websites Case study: online matchmaking websites Match.com Case study: business network websites Xing

Match.comwebsites Case study: online matchmaking websites Meetic Case study: business network websites Xing LinkedIn 28. 11.

Case study: business network websiteswebsites Case study: online matchmaking websites Meetic Match.com Xing LinkedIn 28. 11. 2007 – Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

Xingmatchmaking websites Meetic Match.com Case study: business network websites LinkedIn 28. 11. 2007 – Research paper

LinkedInmatchmaking websites Meetic Match.com Case study: business network websites Xing 28. 11. 2007 – Research paper

28. 11. 2007 Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

4

Summary

Some broad principles for understanding social networking websites
Some broad principles for understanding social networking websites

Case study: online matchmaking websitesprinciples for understanding social networking websites Meetic Match.com Case study: business network websites Xing

Meeticnetworking websites Case study: online matchmaking websites Match.com Case study: business network websites Xing

Match.comwebsites Case study: online matchmaking websites Meetic Case study: business network websites Xing LinkedIn 28. 11.

Case study: business network websiteswebsites Case study: online matchmaking websites Meetic Match.com Xing LinkedIn 28. 11. 2007 – Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

Xingmatchmaking websites Meetic Match.com Case study: business network websites LinkedIn 28. 11. 2007 – Research paper

LinkedInmatchmaking websites Meetic Match.com Case study: business network websites Xing 28. 11. 2007 – Research paper

28. 11. 2007 Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

5

Social networking websites are extensively used worldwide

Social networking websites are extensively used worldwide Source : Ipsos 2007 28. 11. 2007 – Research
Social networking websites are extensively used worldwide Source : Ipsos 2007 28. 11. 2007 – Research

Source : Ipsos 2007

28. 11. 2007 Research paper

Social networking websites are extensively used worldwide Source : Ipsos 2007 28. 11. 2007 – Research

6

An introduction to social networking website analysis requires the presentation of a set of five principles

Network organization Basic Virtual economic Identity effects Social networking websites Relevant metrics
Network
organization
Basic
Virtual
economic
Identity
effects
Social
networking
websites
Relevant
metrics
Typology of
social
network
effects Social networking websites Relevant metrics Typology of social network 28. 11. 2007 – Research paper

28. 11. 2007 Research paper

effects Social networking websites Relevant metrics Typology of social network 28. 11. 2007 – Research paper

7

Social network business generally generates economies of scale

Basic economic effects

generates economies of scale Basic economic effects Economies of scale imply that the operating costs of
generates economies of scale Basic economic effects Economies of scale imply that the operating costs of

Economies of scale imply that the operating costs of the website are less than proportional to the number of users on the platform, e.g the more users the website has the less it has to spend per user

This effect depends mainly on:

less it has to spend per user This effect depends mainly on: Example of economies of

Example of economies of scale

The centralization and the independence of the website users: if the community functioning is strongly decentralized and relies on peer to peer relations, : if the community functioning is strongly decentralized and relies on peer to peer relations, the CRM costs and monitoring costs will increase less than proportionally with the number of users. By contrast, if there is a strong need for monitoring and managing users’ interactions (e.g: moderation), the costs will tend to be strictly proportional

The existence of viral marketing: if viral marketing is strong in the segment of the market where the social : if viral marketing is strong in the segment of the market where the social networking website operates, the acquisition cost of new subscribers will be lower since users are going to ensure the advertising instead of the website

Decentralisation of user relations
Decentralisation
of user relations
Viral marketing 28. 11. 2007 – Research paper
Viral marketing
28. 11. 2007 – Research paper
Strong economies of scale
Strong
economies
of scale

8

Networks are characterised by « network externalities » and congestion point

Networks display two effects:by « network externalities » and congestion point Basic economic effects Network externalities : the interest

Basic economic effects

point Networks display two effects: Basic economic effects Network externalities : the interest in being a

Network externalities: the interest in being a member of a network increases : the interest in being a member of a network increases

more than proportionally with the number of users

Congestion point: an increase occurs up to the point where the network cannot : an increase occurs up to the point where the network cannot

support the number of users which depletes the service provided

The challenge for managers of networks is to reach the « critical mass » where there are enough users to produce this network effect, which implies to:the number of users which depletes the service provided Ask a low price when the network

Ask a low price when the network begins to growusers to produce this network effect, which implies to: Make users pay for the use of

Make users pay for the use of the services provided by the network, not theimplies to: Ask a low price when the network begins to grow access to it Price/

for the use of the services provided by the network, not the access to it Price/

access to it

Price/

revenues

by the network, not the access to it Price/ revenues If price is too high Offer

If price is too high

Offer

Demand

Size

Price/

Congestion point

Offer

If price is low Critical mass
If price is low
Critical mass

revenues

« Sponsor the access, charge the use »

(Principle to manage a network)

Demand

Size

If the price is too high, the network does not reach its critical mass since the demand is too low

If the price is low enough, the network reaches its critical mass and grows up to its congestion point

28. 11. 2007 Research paper

low enough, the network reaches its critical mass and grows up to its congestion point 28.

9

Information plays a fundamental role in managing social networks

Basic economic effects

role in managing social networks Basic economic effects Managing social networking websites also requires

Managing social networking websites also requires alleviation of the mistrust of potential users :

Evaluating the interest of a network before joining it is very diffcult 1 ) before joining it is very diffcult 1)

Knowing if the services will meet users’ expectations is hard, even if they can estimate the value of the services promoted 2 expectations is hard, even if they can estimate the value of the services promoted 2)

Q: How can you be sure that registered members in online

matchmatchmaking websites

are not all ugly ?

A:

Allow free registration and free profile base checking

Managers have different tools to tackle these issues. For instance in online matchmaking they can:

Offer free registration that allows users to look at the profiles (or some of thethese issues. For instance in online matchmaking they can: profiles) of other registered users Broadly communicate

profiles) of other registered users

Broadly communicate about their balanced user base between men and womenprofiles (or some of the profiles) of other registered users 1) Internet services are what economists

1)

Internet services are what economists call « experiment goods »: goods that you cannot valuate until you have used it

2)

This is known as « asymetric information ». Potential users know little about the network whereas managers know a lot

». Potential users know little about the network whereas managers know a lot 28. 11. 2007

28. 11. 2007 Research paper

». Potential users know little about the network whereas managers know a lot 28. 11. 2007

10

Social networks have a specific structure

Network organization

networks have a specific structure Network organization Many online social networks are « scale free networks
networks have a specific structure Network organization Many online social networks are « scale free networks

Many online social networks are « scale free networks »

They are organized around some central nodesMany online social networks are « scale free networks » They grow through the principle of

They grow through the principle of « preferencial attachment »: the more a node has connexions, the more chance it has to add new connectionsnetworks » They are organized around some central nodes Example of random network 28. 11. 2007

connexions, the more chance it has to add new connections Example of random network 28. 11.

Example of random network

28. 11. 2007 Research paper

it has to add new connections Example of random network 28. 11. 2007 – Research paper

Example of scale free network

it has to add new connections Example of random network 28. 11. 2007 – Research paper

11

Social website growth depends on the network’s structure

Network organization

depends on the network’s structure Network organization Two classic levers of growth for scale free networks

Two classic levers of growth for scale free networks

Backing a viral adoption of the network , relying on its« scale free network » structure: every new adoption of the network, relying on its« scale free network » structure: every new user of a network is potentially a new « node » of the social network structure, websites have to induce them to bring all their « real » connections into the virtual community

all their « real » connections into the virtual community Supporting the animation of the network
all their « real » connections into the virtual community Supporting the animation of the network

Supporting the animation of the network : since a « connexion-node » (e.g a user that has animation of the network: since a « connexion-node » (e.g a user that has brought a lot of people to the site) may not be an animator

Animation on the website is essential to keep the network growingbrought a lot of people to the site) may not be an animator Websites have to

Websites have to provide multiple and intuitive tools to interact with other userson the website is essential to keep the network growing Sources: Facebook, faberNovel analyses 28. 11.

multiple and intuitive tools to interact with other users Sources: Facebook, faberNovel analyses 28. 11. 2007

Sources: Facebook, faberNovel analyses

28. 11. 2007 Research paper

intuitive tools to interact with other users Sources: Facebook, faberNovel analyses 28. 11. 2007 – Research

12

Social networking platforms change the concept of identity

Virtual identity

platforms change the concept of identity Virtual identity Identity: “ sameness of essential or generic character
platforms change the concept of identity Virtual identity Identity: “ sameness of essential or generic character

Identity: “ sameness of essential or generic character in different instances” (Merriam-Webster). Identity in the real sameness of essential or generic character in different instances” (Merriam-Webster). Identity in the real world is how one is described either by self- assertions or by the assertions of another

Digital identity is a set of characteristics asserted “ by one digital subject about itself or by another digital subject, in a digital by one digital subject about itself or by another digital subject, in a digital realm.(Microsoft). This identity is comprised of multiple pieces of formal and informal data, real or fantasized

Digital identity has three particularities:pieces of formal and informal data, real or fantasized Fragmentation : the identity is broken up

or fantasized Digital identity has three particularities: Fragmentation : the identity is broken up between several

Fragmentation: the identity is broken up between several networks and websites and these different pieces : the identity is broken up between several networks and websites and these different pieces of identity might not be coherent

Fantasy: digital identity can be easily fantasized : digital identity can be easily fantasized

Temporality: identity might not evolve over time ( a comment or an old profile is : identity might not evolve over time ( a comment or an old profile is not automatically removed)

Sources: Cavazza website, faberNovel analyses

28. 11. 2007 Research paper

profile is not automatically removed) Sources: Cavazza website, faberNovel analyses 28. 11. 2007 – Research paper

13

The applications managers have to develop depend on the type of network proposed

Example: according to its position, what kind of applications should be developed by my site ?

Real identity

applications should be developed by my site ? Real identity Virtual identity • Network expansion tools

Virtual identity

be developed by my site ? Real identity Virtual identity • Network expansion tools • Self-promotion
be developed by my site ? Real identity Virtual identity • Network expansion tools • Self-promotion
be developed by my site ? Real identity Virtual identity • Network expansion tools • Self-promotion

Network expansion tools Self-promotion Recommandations and profile certification

Public

exposition

Recommandations and profile certification Public exposition • Improvement of user’s public profile • Enhancement
Recommandations and profile certification Public exposition • Improvement of user’s public profile • Enhancement
Recommandations and profile certification Public exposition • Improvement of user’s public profile • Enhancement
Recommandations and profile certification Public exposition • Improvement of user’s public profile • Enhancement

Improvement of user’s public profile Enhancement of the image displayed to the rest of the community

Fantasized identity

28. 11. 2007 Research paper

Fantasized identity 28. 11. 2007 – Research paper • Privacy/intimacy protection •“ Relationship

Privacy/intimacy protection •“Relationship certificates

Qualitative

contacts

2007 – Research paper • Privacy/intimacy protection •“ Relationship certificates ” Qualitative contacts 14

14

The way users manage their identity and the functionalities available on the site are closely linked

Virtual identity

available on the site are closely linked Virtual identity MySpace vs. Facebook Facebook Presentation of a

MySpace vs. Facebook

are closely linked Virtual identity MySpace vs. Facebook Facebook Presentation of a real identity Extension of

Facebook

Presentation of a real identitylinked Virtual identity MySpace vs. Facebook Facebook Extension of real friendships « Dialog » space: additional

Extension of real friendshipsvs. Facebook Facebook Presentation of a real identity « Dialog » space: additional applications are developed

« Dialog » space: additional applications areof a real identity Extension of real friendships developed to interact with other users MySpace Presentation

developed to interact with other users

MySpace

Presentation of a desired identityare developed to interact with other users MySpace Meeting of new friends based on center of

Meeting of new friends based on center of interestswith other users MySpace Presentation of a desired identity « Monolog » space: additional applications are

« Monolog » space: additional applications are limited to personal spaceof a desired identity Meeting of new friends based on center of interests 28. 11. 2007

interests « Monolog » space: additional applications are limited to personal space 28. 11. 2007 –
interests « Monolog » space: additional applications are limited to personal space 28. 11. 2007 –

28. 11. 2007 Research paper

interests « Monolog » space: additional applications are limited to personal space 28. 11. 2007 –

15

Social networks have all their specificities: four criteria can be identified

Typology of social networks

Degree of decentralisation of

the network

• How far are interactions between users and profiles monitored and how “open” is the
• How far are interactions between users and profiles
monitored and how “open” is the platform ? (for
instance can users develop their own applications ?)

Number of different types of interactions allowed

• Is the network dedicated to a unique type of service (such as online matchmaking)
• Is the network dedicated to a unique type of service
(such as online matchmaking) or does it allow many
more kinds of services ?

Type of identity

• Is the identity developed on the network close to the real identity of the
• Is the identity developed on the network close to the
real identity of the user or is it a fantasized identity ?

Potential size of the network

• What part of the Internet population might join the network ? Niche vs mainstream
• What part of the Internet population might join the
network ? Niche vs mainstream network
part of the Internet population might join the network ? Niche vs mainstream network 28. 11.
part of the Internet population might join the network ? Niche vs mainstream network 28. 11.

28. 11. 2007 Research paper

part of the Internet population might join the network ? Niche vs mainstream network 28. 11.

16

Four types of networks can be identified

Goal: socializing

Goal: career and

business opportunities

Online communities

Business networks

business opportunities Online communities Business networks Typology of social networks Goal: soulmate Online
business opportunities Online communities Business networks Typology of social networks Goal: soulmate Online
business opportunities Online communities Business networks Typology of social networks Goal: soulmate Online
business opportunities Online communities Business networks Typology of social networks Goal: soulmate Online
business opportunities Online communities Business networks Typology of social networks Goal: soulmate Online
business opportunities Online communities Business networks Typology of social networks Goal: soulmate Online
business opportunities Online communities Business networks Typology of social networks Goal: soulmate Online
business opportunities Online communities Business networks Typology of social networks Goal: soulmate Online
business opportunities Online communities Business networks Typology of social networks Goal: soulmate Online

Typology of social networks

communities Business networks Typology of social networks Goal: soulmate Online matchmaking Goal: getting back in

Goal: soulmate

Online matchmaking

of social networks Goal: soulmate Online matchmaking Goal: getting back in touch Alumni networks Facebook is
of social networks Goal: soulmate Online matchmaking Goal: getting back in touch Alumni networks Facebook is
of social networks Goal: soulmate Online matchmaking Goal: getting back in touch Alumni networks Facebook is
of social networks Goal: soulmate Online matchmaking Goal: getting back in touch Alumni networks Facebook is

Goal: getting back in

touch

Alumni networks

matchmaking Goal: getting back in touch Alumni networks Facebook is currently moving from an « alumni
matchmaking Goal: getting back in touch Alumni networks Facebook is currently moving from an « alumni
matchmaking Goal: getting back in touch Alumni networks Facebook is currently moving from an « alumni
matchmaking Goal: getting back in touch Alumni networks Facebook is currently moving from an « alumni
matchmaking Goal: getting back in touch Alumni networks Facebook is currently moving from an « alumni
matchmaking Goal: getting back in touch Alumni networks Facebook is currently moving from an « alumni

Facebook is currently moving from an « alumni network » to an« online community »

Facebook is currently moving from an « alumni network » to an« online community » 28.

28. 11. 2007 Research paper

Facebook is currently moving from an « alumni network » to an« online community » 28.

17

Example of a representation of social networking websites

Example of a representation of social networking websites Distance from real identity Facebook Meetic Match.com LinkedIn

Distance

from real

identity

Facebookof social networking websites Distance from real identity Meetic Match.com LinkedIn Myspace Potential size of the

Meeticnetworking websites Distance from real identity Facebook Match.com LinkedIn Myspace Potential size of the network

Match.comwebsites Distance from real identity Facebook Meetic LinkedIn Myspace Potential size of the network Degree of

LinkedInDistance from real identity Facebook Meetic Match.com Myspace Potential size of the network Degree of

Myspacefrom real identity Facebook Meetic Match.com LinkedIn Potential size of the network Degree of decentralization of

Potential size of the network

Degree of decentralization of the network

28. 11. 2007 Research paper

Typology of social networks

network 28. 11. 2007 – Research paper Typology of social networks Number of different types of

Number of

different types

of interactions

allowed

network 28. 11. 2007 – Research paper Typology of social networks Number of different types of

18

Classic metrics are not always relevant for analyzing

the success of a social networking website

Relevant metrics

the success of a social networking website Relevant metrics The emergence of social networks highlights the
The emergence of social networks highlights the need for new metrics

The emergence of social networks highlights the need for new metrics

Traditional metrics are limited

Differentiating the metrics is necessary

Traditional metrics still applied:Number of unique users Number of pages viewed Average time spent Number of registered /

Number of unique usersTraditional metrics still applied: Number of pages viewed Average time spent Number of registered / active

Number of pages viewedTraditional metrics still applied: Number of unique users Average time spent Number of registered / active

Average time spentstill applied: Number of unique users Number of pages viewed Number of registered / active users

Number of registered / active usersof unique users Number of pages viewed Average time spent Number of profiles created As well

Number of profiles createdAverage time spent Number of registered / active users As well as geo-socio-demographic metrics : Gender

As well as geo-socio-demographic metrics :of registered / active users Number of profiles created Gender Age Household revenue Geographical data But

Genderprofiles created As well as geo-socio-demographic metrics : Age Household revenue Geographical data But they are

Agecreated As well as geo-socio-demographic metrics : Gender Household revenue Geographical data But they are not

Household revenueAs well as geo-socio-demographic metrics : Gender Age Geographical data But they are not relevant for

Geographical datageo-socio-demographic metrics : Gender Age Household revenue But they are not relevant for every social networking

But they are not relevant for every social networking websitemetrics : Gender Age Household revenue Geographical data For business networks (Xing, LinkedIn): Irrelevant but used

For business networks (Xing, LinkedIn):they are not relevant for every social networking website Irrelevant but used metrics (examples): Number of

Irrelevant but used metrics (examples):networking website For business networks (Xing, LinkedIn): Number of pages Time spent by users Relevant metrics

Number of pages(Xing, LinkedIn): Irrelevant but used metrics (examples): Time spent by users Relevant metrics (examples): Number of

Time spent by usersIrrelevant but used metrics (examples): Number of pages Relevant metrics (examples): Number of requests transmitted

Relevant metrics (examples):used metrics (examples): Number of pages Time spent by users Number of requests transmitted or accepted

Number of requests transmitted or acceptedof pages Time spent by users Relevant metrics (examples): Number of useful active users For online

Number of useful active users(examples): Number of requests transmitted or accepted For online Match.com): matchmaking websites (Meetic,

Fortransmitted or accepted Number of useful active users online Match.com): matchmaking websites (Meetic, Irrelevant

online

Match.com):

matchmaking

websites

(Meetic,

Irrelevant but used metrics (examples):users For online Match.com): matchmaking websites (Meetic, Number of profiles Number of pages viewed Relevant metrics

Number of profileswebsites (Meetic, Irrelevant but used metrics (examples): Number of pages viewed Relevant metrics (examples): Number

Number of pages viewedIrrelevant but used metrics (examples): Number of profiles Relevant metrics (examples): Number of subscribers Number of

Relevant metrics (examples):(examples): Number of profiles Number of pages viewed Number of subscribers Number of active users Churn

Number of subscribersof profiles Number of pages viewed Relevant metrics (examples): Number of active users Churn rate and

Number of active usersNumber of profiles Number of pages viewed Relevant metrics (examples): Number of subscribers Churn rate and

Churn rate and its componentsNumber of profiles Number of pages viewed Relevant metrics (examples): Number of subscribers Number of active

Number of active users Churn rate and its components Sources: faberNovel analyses 28. 11. 2007 –

Sources: faberNovel analyses

28. 11. 2007 Research paper

Number of active users Churn rate and its components Sources: faberNovel analyses 28. 11. 2007 –

19

Summary

Some broad principles for understanding social networking websitesSummary Case study: online matchmaking websites Meetic Match.com Case study: business network websites Xing LinkedIn 28.

Case study: online matchmaking websites
Case study: online matchmaking websites

Meeticnetworking websites Case study: online matchmaking websites Match.com Case study: business network websites Xing

Match.comwebsites Case study: online matchmaking websites Meetic Case study: business network websites Xing LinkedIn 28. 11.

Case study: business network websiteswebsites Case study: online matchmaking websites Meetic Match.com Xing LinkedIn 28. 11. 2007 – Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

Xingmatchmaking websites Meetic Match.com Case study: business network websites LinkedIn 28. 11. 2007 – Research paper

LinkedInmatchmaking websites Meetic Match.com Case study: business network websites Xing 28. 11. 2007 – Research paper

28. 11. 2007 Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

20

Summary

Some broad principles for understanding social networking websitesSummary Case study: online matchmaking websites Meetic Match.com Case study: business network websites Xing LinkedIn 28.

Case study: online matchmaking websitesprinciples for understanding social networking websites Meetic Match.com Case study: business network websites Xing

Meetic
Meetic

Match.comwebsites Case study: online matchmaking websites Meetic Case study: business network websites Xing LinkedIn 28. 11.

Case study: business network websiteswebsites Case study: online matchmaking websites Meetic Match.com Xing LinkedIn 28. 11. 2007 – Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

Xingmatchmaking websites Meetic Match.com Case study: business network websites LinkedIn 28. 11. 2007 – Research paper

LinkedInmatchmaking websites Meetic Match.com Case study: business network websites Xing 28. 11. 2007 – Research paper

28. 11. 2007 Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

21

CASE STUDY: Meetic 28. 11. 2007 – Research paper 22

CASE STUDY: Meetic

CASE STUDY: Meetic 28. 11. 2007 – Research paper 22
CASE STUDY: Meetic 28. 11. 2007 – Research paper 22

28. 11. 2007 Research paper

CASE STUDY: Meetic 28. 11. 2007 – Research paper 22

22

Brief presentation of the company

Brief presentation of the company Meetic was founded by Marc Simoncini, the current CEO, in November

Meetic was founded by Marc Simoncini, the current CEO, in November 2001Brief presentation of the company Meetic has been profitable since 2003 and in five years, it

Meetic has been profitable since 2003 and in five years, it has become the leader in online dating in Europefounded by Marc Simoncini, the current CEO, in November 2001 Meetic realized an IPO in October

Meetic realized an IPO in October 2005, its market capitalization was 508,491 million euros November 16th 2007years, it has become the leader in online dating in Europe Meetic is active in 16

Meetic is active in 16 countries after a large campaign of acquisitions in 2006 and 2007capitalization was 508,491 million euros November 16th 2007 In 2007 Meetic launched its new version Meetic

In 2007 Meetic launched its new version Meetic 2.0is active in 16 countries after a large campaign of acquisitions in 2006 and 2007 28.

of acquisitions in 2006 and 2007 In 2007 Meetic launched its new version Meetic 2.0 28.

28. 11. 2007 Research paper

of acquisitions in 2006 and 2007 In 2007 Meetic launched its new version Meetic 2.0 28.

23

Meetic is the leading company in online matchmaking in Europe

Meetic is the leading company in online matchmaking in Europe Language Website translated into 12 languages

Language

Website translated into 12 languages

Number of profiles [M] 2006

28,5

Number of subscribers 2006

426 000

Audience share 1) of online matchmaking websites in Europe (November 2006)

19,49 % (number one in Europe)

Turnover 2) [M$] 2006

107

Operating income 2) [M$] 2006

18,65

Number of employees

200

ARFU 2) [$/subscriber] 2006

18,83

ARPU 2) [$/subscriber] 2006

20,93

1): Audience share is calculated as follows: (number of unique visitors to the site x time spent on the site) / (number of unique

visitors under the category “dating” x time spent on this subcategory) x 100 2) : Converted at 0,734 per $

Sources: Meetic, NielsenNet Rating faberNovel analyses

onverted at 0,734 € per $ Sources: Meetic, NielsenNet Rating faberNovel analyses 28. 11. 2007 –

28. 11. 2007 Research paper

onverted at 0,734 € per $ Sources: Meetic, NielsenNet Rating faberNovel analyses 28. 11. 2007 –

24

Meetic offers several subscription formulas

Free offer
Free offer

Nofee subscription Enables to access the limited profiles of the other members members

fee

subscription

EnablesNo fee subscription to access the limited profiles of the other members members

to

access the limited

profiles of the

other members

members

Pass Pass Meetic Premium Three subscription Three subscription offers: offers: Monthly subscription: Monthly
Pass
Pass
Meetic
Premium
Three subscription
Three subscription
offers:
offers:
Monthly
subscription:
Monthly
subscription:
€29,99/month
€44,89/month
($40,86/month)
($54,35/month)
Trimester subscription :
Trimester subscription :
€19,95/month
#34,85/month
($27,18/month)
($40,64/month)
Semester subscription :
Semester subscription :
€16,95/month
€29,85/month
($20,37/month)
($33,86/month)
The pass enables
The pass has all
them to contact
Pass
Meetic
members and use
functionalities and
meetic phone
all registered users
can
contact
premium members
phone all registered users can contact premium members Pass Select + Premium Three subscription offers:
phone all registered users can contact premium members Pass Select + Premium Three subscription offers:
Pass Select + Premium Three subscription offers: Monthly subscription: €54,79/month ($67,83/month) Trimester
Pass
Select +
Premium
Three subscription
offers:
Monthly
subscription:
€54,79/month
($67,83/month)
Trimester subscription:
€44,75/month
($53,16/month)
Semester subscription:
€39,75/month
($47,34/month
The functionalities
are those of Pass
select
and
Premium
Pass Select Same fees as Pass Premium The pass has all Pass Meetic functionalities and
Pass
Select
Same
fees
as
Pass Premium
The pass has all
Pass
Meetic
functionalities and
subscribers
can
check
profiles
without
triggering
an
alert
and
define
authorized
contacts

Subscription fees are highly progressive to induce members to subscribe for the longest period possible

induce members to subscribe for the longest period possible 1) All the offers are converted at

1) All the offers are converted at 0,734 per $

Sources : Meetic, faberNovel analyses

28. 11. 2007 Research paper

the offers are converted at 0,734 € per $ Sources : Meetic, faberNovel analyses 28. 11.

25

Meetic offers multiple additional services

Improvement of meetic messenger based on MSN Messenger, with a visio chat with secured modeMeetic offers multiple additional services Photograph album “Meetic test” : allows the subscribers to create their

Photograph albumbased on MSN Messenger, with a visio chat with secured mode “Meetic test” : allows the

“Meetic test”: allows the subscribers to create their own questions : allows the subscribers to create their own questions

engine with multiple

to create their own questions engine with multiple Meetic search criteria selection “Meetic live” : events

Meetic

search

criteria selection

“Meetic live”: events for meetic subscribers (Live oenology, salsa, … ) : events for meetic subscribers (Live oenology, salsa, )

“Meetic phone”: allows a user to call a : allows a user to call a

subscriber without disclosing his

phone number with an “available / unavailable” presence function

his phone number with an “available / unavailable” presence function 28. 11. 2007 – Research paper

28. 11. 2007 Research paper

his phone number with an “available / unavailable” presence function 28. 11. 2007 – Research paper
his phone number with an “available / unavailable” presence function 28. 11. 2007 – Research paper
his phone number with an “available / unavailable” presence function 28. 11. 2007 – Research paper
his phone number with an “available / unavailable” presence function 28. 11. 2007 – Research paper

26

Meetic provides its customers with multiple tools to manage their identities

Contracts offered:its customers with multiple tools to manage their identities « Pass Meetic »: contact by email,

multiple tools to manage their identities Contracts offered: « Pass Meetic »: contact by email, visio,
« Pass Meetic »: contact by email, visio, meetic phone and see video and photograph

«

Pass Meetic »: contact by email, visio, meetic phone and see video and photograph album

Pass Premium »: Pass Meetic functionalities plus allows registered users to contact premium members «

Pass Premium »: Pass Meetic functionalities plus allows registered users to contact premium members

«

Pass Select »: Pass Meetic functionalities plus checking profiles without sending an alert and defining

Pass Select »: Pass Meetic functionalities plus checking profiles without sending an alert and defining authorized contacts

«

Identity management tools:sending an alert and defining authorized contacts « Nickname commonly used Multiple identities possible,

Nickname commonly useddefining authorized contacts « Identity management tools: Multiple identities possible, although uncommon and closely

Multiple identities possible, although uncommon and closely watched by Meetic employees« Identity management tools: Nickname commonly used Common information, physical and psychological description.

Common information, physical and psychological description. Between 10 to 80 criteria availablealthough uncommon and closely watched by Meetic employees Five photos per profile Personal video advertisement

Five photos per profiledescription. Between 10 to 80 criteria available Personal video advertisement Information available to

Personal video advertisementBetween 10 to 80 criteria available Five photos per profile Information available to others: Full profile

Five photos per profile Personal video advertisement Information available to others: Full profile available to

Information available to others:Five photos per profile Personal video advertisement Full profile available to other subscribers and very limited

Full profile available to other subscribers and very limited profile available to registered usersvideo advertisement Information available to others: Profiles of “Pass premium” subscribers can be accessed

Profiles of “Pass premium” subscribers can be accessed by all registered users accessed by all registered users

No public profile (e.g. available through searchsubscribers can be accessed by all registered users engine) Sources : Meetic, faberNovel analyses 28. 11.

engine)

Sources : Meetic, faberNovel analyses

28. 11. 2007 Research paper

Profile availability

Subscriber

Subscriber
Subscriber

Registered

Registered
Registered

Public

Public
Public

Limited Profil

Full Profil

28. 11. 2007 – Research paper Profile availability Subscriber Registered Public Limited Profil Full Profil 27

27

Meetic business model depends on three central mecanisms

Meetic business model depends on three central mecanisms Providing an efficient service to its clients (finding

Providing an efficient service to its clients (finding his soulmate) while capping the churn rate of its subscribers.

Monetized its user base (turning users into subscribers)

Business

model

28. 11. 2007 Research paper

Business model 28. 11. 2007 – Research paper Recruiting new clients to replace those who find

Recruiting new clients to replace those who find their soulmate and stop using Meetic service

2007 – Research paper Recruiting new clients to replace those who find their soulmate and stop

28

Meetic’s strong conversion rate is achieved through four levers

strong conversion rate is achieved through four levers Charging for every service, except now to contact

Charging for every service, except now to contact premium membersstrong conversion rate is achieved through four levers Payment systems adapted to each country’s culture or

Payment systems adapted to each country’s culture or custom (for instance country’s culture or custom (for instance

credit card for French clients, direct debit for German)

A contract menu with four different subscriptions (“pass Meetic”, “pass premium”, “pass select”, “pass premium + select”) to meet all the clients’ (“pass Meetic”, “pass premium”, “pass select”, “pass premium + select”) to meet all the clients’ needs

A low churn rate due to an important CRM strategy (37% of Meetic employees are devoted to customer relationship management)premium + select”) to meet all the clients’ needs Sources : Meetic, faberNovel analyses 28. 11.

employees are devoted to customer relationship management) Sources : Meetic, faberNovel analyses 28. 11. 2007 –
employees are devoted to customer relationship management) Sources : Meetic, faberNovel analyses 28. 11. 2007 –

Sources : Meetic, faberNovel analyses

28. 11. 2007 Research paper

devoted to customer relationship management) Sources : Meetic, faberNovel analyses 28. 11. 2007 – Research paper

29

Meetic business development strategy is based on three pillars

Service extensions:business development strategy is based on three pillars Mobile version that represents 7% of the traffic

strategy is based on three pillars Service extensions: Mobile version that represents 7% of the traffic

Mobile version that represents 7% of the trafficstrategy is based on three pillars Service extensions: Thematic website for young people (Superlov), people over

Thematic website for young people (Superlov), people over 35 years old in search of a long-term relationship (Ulteem) and gay (Cleargay)extensions: Mobile version that represents 7% of the traffic External growth: In 2006 Meetic acquired Yeeyoo

of a long-term relationship (Ulteem) and gay (Cleargay) External growth: In 2006 Meetic acquired Yeeyoo (China,

External growth:of a long-term relationship (Ulteem) and gay (Cleargay) In 2006 Meetic acquired Yeeyoo (China, 10 million

In 2006 Meetic acquired Yeeyoo (China, 10 million registered users) for around 31 million dollars*, Lexa (the Netherlands, 30.000 subscribers) for 15,67 million dollars* and Perperfeito (Brazil, 8 million profiles created) for 29,42 million dollars*relationship (Ulteem) and gay (Cleargay) External growth: In 2007 Meetic acquired DatingDirect (4,5 million members)

In 2007 Meetic acquired DatingDirect (4,5 million members) for £ 27,3M and Cleargay (undisclosed amount)8 million profiles created) for 29,42 million dollars* Partnerships: Meetic has developed around 120 internet

members) for £ 27,3M and Cleargay (undisclosed amount) Partnerships: Meetic has developed around 120 internet

Partnerships:members) for £ 27,3M and Cleargay (undisclosed amount) Meetic has developed around 120 internet distribution

Meetic has developed around 120 internet distribution partnerships on internet portals such as Alice, AOL, Orange, Lycos, Yahoo!, Lastminute and around 20 mobile partnerships (notably Orange, Bouygues, SFR, Vodafone)for £ 27,3M and Cleargay (undisclosed amount) Partnerships: Partnerships accounted for 37% of Meetic’s new profiles

Partnerships accounted for 37% of Meetic’s new profiles and for 25% of sales in 2006 Meetic’s new profiles and for 25% of sales in 2006

Sources : Meetic, faberNovel analyses

28. 11. 2007 Research paper

*: Converted at 0,734 per $

sales in 2006 Sources : Meetic, faberNovel analyses 28. 11. 2007 – Research paper *: Converted

30

Some best practices can be drawn from Meetic functioning

Some best practices can be drawn from Meetic functioning BEST PRACTICES Providing a secure environment Meetic

BEST PRACTICES

can be drawn from Meetic functioning BEST PRACTICES Providing a secure environment Meetic has a churn
can be drawn from Meetic functioning BEST PRACTICES Providing a secure environment Meetic has a churn

Providing a secure environment

Meetic has a churn rate twice as low as its competitors because:Providing a secure environment employees devoted to CRM and moderation of the website are the two

employees devoted to CRM and

moderation of the website are the

two biggest contributors to headcount

Moderators make human controls for each new profile created (notice and photos) and semi automatic controls based on keyof the website are the two biggest contributors to headcount words for writing communications The counterpart

words for writing communications

The counterpart is the absence of economies of scale in Meetic business model since it has to keep its number of employees proportional to its number of userscontrols based on key words for writing communications Meetic does not give public profile to respect

Meetic does not give public profile to respect user privacyof scale in Meetic business model since it has to keep its number of employees proportional

Meetic does not give public profile to respect user privacy Focusing on keeping a balanced user

Focusing on keeping a balanced user base between men and women

Free registrationand free

and

free

consultation

of

limited

profiles

allow potential users to try Meetic

and

check

the

number

of

interesting profiles

 

Subscription for women was free before 2007 and at a lower price from 2007, ensuring women account for around 50% of client basecheck the number of interesting profiles   Meetic constantly communicates this statistic which

Meetic constantly communicates2007, ensuring women account for around 50% of client base this statistic which reassures women about

this statistic which reassures women about the reliability of the service

28. 11. 2007 Research paper

reliability of the service 28. 11. 2007 – Research paper Understanding the specificities of its market(s)

Understanding the specificities of its market(s)

ofAbsence

Absence

viral

marketing:

Meetic

invests

heavily

in

advertising campaigns

 

Diversity of users’ needs : users’ needs:

Meetic draws a clear segmentation of the market with four websites (Superlove, Meetic, Ulteem, Cleargay) to guarantee their clients they will find exactly the profiles for which they are

searching

Diversity of local markets: :

Meetic proposes different versions of its website and acquires online matchmaking firms that are already well implemented in the countries within which the firm

wants to develop

online matchmaking firms that are already well implemented in the countries within which the firm wants

31

Summary

Some broad principles for understanding social networking websitesSummary Case study: online matchmaking websites Meetic Match.com Case study: business network websites Xing LinkedIn 28.

Case study: online matchmaking websitesprinciples for understanding social networking websites Meetic Match.com Case study: business network websites Xing

Meeticnetworking websites Case study: online matchmaking websites Match.com Case study: business network websites Xing

Match.com
Match.com

Case study: business network websiteswebsites Case study: online matchmaking websites Meetic Match.com Xing LinkedIn 28. 11. 2007 – Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

Xingmatchmaking websites Meetic Match.com Case study: business network websites LinkedIn 28. 11. 2007 – Research paper

LinkedInmatchmaking websites Meetic Match.com Case study: business network websites Xing 28. 11. 2007 – Research paper

28. 11. 2007 Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

32

CASE STUDY: Match.com 28. 11. 2007 – Research paper 33
CASE STUDY: Match.com 28. 11. 2007 – Research paper 33

CASE STUDY: Match.com

CASE STUDY: Match.com 28. 11. 2007 – Research paper 33

28. 11. 2007 Research paper

CASE STUDY: Match.com 28. 11. 2007 – Research paper 33

33

Presentation of Match.com

Presentation of Match.com Launched on the Web on April 21, 1995, Match.com was a pioneer in

Launched on the Web on April 21, 1995, Match.com was a pioneer in online dating and is considered as having taken this service mainstreamPresentation of Match.com Match.com is an operating business of IAC/InterActiveCorp quoted on Nasdaq Match.com is today

Match.com is an operating business of IAC/InterActiveCorp quoted on Nasdaqand is considered as having taken this service mainstream Match.com is today the world’s number one

Match.com is today the world’s number one dating and relationship site world’s number one dating and relationship site

on Nasdaq Match.com is today the world’s number one dating and relationship site 28. 11. 2007

28. 11. 2007 Research paper

on Nasdaq Match.com is today the world’s number one dating and relationship site 28. 11. 2007

34

Match.com is operating worldwide

Match.com is operating worldwide Language 30 localized international dating sites in 18 languages Number of

Language

30 localized international dating sites in 18 languages

Number of profiles [M] 2007

Over 20 million

Number of subscribers [M] June

 

2007

1,313

Number of Unique Visitors in the US* (Dec. 2006)

3970000 (number three in the US)

Turnover [M$] 2006

311,2

Operating income [M$] 2006

58,4

Number of employees 2006

275

ARFU [$/user] 2006

18,37

ARPU [$/user] 2006

20,42

* : Excludes traffic from sites powered by Match.com, such as Love@AOL (1.0 million unique visitors) and MSN Personals (635,000 unique visitors)

Sources : Match.com, Comscore, faberNovel analyses

(635,000 unique visitors) Sources : Match.com, Comscore, faberNovel analyses 28. 11. 2007 – Research paper 35

28. 11. 2007 Research paper

(635,000 unique visitors) Sources : Match.com, Comscore, faberNovel analyses 28. 11. 2007 – Research paper 35

35

Match.com has one simple offer for its main

product but numerous additional services

for its main product but numerous additional services Match.com has a single two contract offer: Free

Match.com has a single two contract offer:for its main product but numerous additional services Free offer enables members to access the profiles

Free offer enables members to access the profiles of the other members

Premium offer (Monthly subscription: 29.95/month ($34,99/month), Trimester subscription : 19,95/month ($19,99/month), Semester subscription : 16,50/month ($16,99/month)) enables members to contact other members ,block profiles, check members who have looked at their profile

profiles, check members who have looked at their profile Premium offer + MindFindBind (for English, American

Premium offer + MindFindBind (for English, American and Canadian subscribers): subscribers can benefit from Dr. Phil’s advice (through the MindFindBind program) about how to determine good action plans, dating insights and related strategies and so forth. This service charges $9,99

Match.com proposes numerous additional services:related strategies and so forth. This service charges $9,99 Matchmobile: a free service allows members to

Matchmobile: a free service allows members to consult their alerts. A premium offer ($4,99 per month) allows members to use mobile phones for anonymous and secure wireless matching and online dating services (write and answer emails)$9,99 Match.com proposes numerous additional services: MatchPlatinium: a custom tailored online matchmaking site

MatchPlatinium: a custom tailored online matchmaking siteand online dating services (write and answer emails) Matchtravel.com: a travel agency for singletons

Matchtravel.com: a travel agency for singletonsMatchPlatinium: a custom tailored online matchmaking site MatchLive.com: a subscription-based service offering a

MatchLive.com: a subscription-based service offering a variety of social events and parties for single adultssite Matchtravel.com: a travel agency for singletons Match.com Advisors: a network of trained dating,

Match.com Advisors: a network of trained dating, relationship and marriage experts accessible through the Match.com sitea variety of social events and parties for single adults Happen Magazine™: a dating advice and

Happen Magazine™: a dating advice and information magazineand marriage experts accessible through the Match.com site Profile Assistance: a service providing a network of

Profile Assistance: a service providing a network of writers skilled in creating and tailoring online profiles for members.Happen Magazine™: a dating advice and information magazine Sources : Match.com, faberNovel analyses 28. 11. 2007

in creating and tailoring online profiles for members. Sources : Match.com, faberNovel analyses 28. 11. 2007

Sources : Match.com, faberNovel analyses

28. 11. 2007 Research paper

and tailoring online profiles for members. Sources : Match.com, faberNovel analyses 28. 11. 2007 – Research

36

Match.com provides its customers with multiple tools to manage their identities

its customers with multiple tools to manage their identities Contracts offered:   « Members »: search
Contracts offered:  

Contracts offered:

 
« Members »: search others profiles, download photos and send/receive « winks »

«

Members »: search others profiles, download photos and send/receive « winks »

« Members »: search others profiles, download photos and send/receive « winks »
Subscribers »: contact by email, block profiles, check members who have looked at their profile

Subscribers »: contact by email, block profiles, check members who have looked at their profile

«

Identity management tools:  

Identity management tools:

 

Nickname commonly usedat their profile « Identity management tools:   Mutliple identities possible, although uncommon Common

Mutliple identities possible, although uncommonIdentity management tools:   Nickname commonly used Common information (Height, bodytype, astrological sign,

Common information (Height, bodytype, astrological sign, daily diet, income, …) 

 

Twenty five photos possible 

 

« Catcher » available but no video presentationincome, …)   Twenty five photos possible   Description of the ideal partner   Profile availability

Description of the ideal partner  « Catcher » available but no video presentation   Profile availability Information available to others:

 

Profile availability

Information available to others:  

Information available to others:

 
     
 

Full profile available to other subscribers and  Subscriber

Subscriber

  Full profile available to other subscribers and Subscriber
  Full profile available to other subscribers and Subscriber
 

registered users, which is a big difference in

Registered

  registered users, which is a big difference in Registered
  registered users, which is a big difference in Registered

comparison with Meetic

comparison with Meetic
comparison with Meetic
 

No public profile (e.g. not available through search engine)  Public

Public

Limited Profil

Full Profil

search engine) Public Limited Profil Full Profil Sources : Match.com, faberNovel analyses 28. 11. 2007 –

Sources : Match.com, faberNovel analyses

28. 11. 2007 Research paper

Public Limited Profil Full Profil Sources : Match.com, faberNovel analyses 28. 11. 2007 – Research paper

37

Match.com has developed both generic and

specific search tools

has developed both generic and specific search tools Match.com search engine offers roughly the same
has developed both generic and specific search tools Match.com search engine offers roughly the same

Match.com search engine offers roughly the same functionalities as those provided by Meetic searchhas developed both generic and specific search tools The firm has developed two alternative and original

The firm has developed two alternative and original tools:the same functionalities as those provided by Meetic search The « matchWords »: every profile can

The « matchWords »: every profile can list a number of key words. Then registered members can matchWords »: every profile can list a number of key words. Then registered members can browse through these key words

The « double compatibility » tool: for each profile visited by, members can see this mutliple criteria double compatibility » tool: for each profile visited by, members can see this mutliple criteria spreadsheet, gibing the compatibility details for the different criteria of the two profiles

Sources : Match.com, faberNovel analyses

28. 11. 2007 Research paper

the different criteria of the two profiles Sources : Match.com, faberNovel analyses 28. 11. 2007 –
the different criteria of the two profiles Sources : Match.com, faberNovel analyses 28. 11. 2007 –

38

Match.com succeeds in monetizing its user base thanks to four levers

succeeds in monetizing its user base thanks to four levers A strong differentiation of its local

A strong differentiation of its local websites,

which allows Match.com to perfectly match

the specificities of the countries where it operates

match the specificities of the countries where it operates Home Page Match.com (China) Home Page Match.com

Home Page Match.com (China)

the countries where it operates Home Page Match.com (China) Home Page Match.com (India) Permanent help at

Home Page Match.com (India)

Home Page Match.com (China) Home Page Match.com (India) Permanent help at every different step during the

Permanent help at every different step during the use of Match.com services (when users wantHome Page Match.com (China) Home Page Match.com (India) to fill their profile, make a search, …

to fill their profile, make a search, )

The creation of Dr. Phil (which provides advice aboutusers want to fill their profile, make a search, … ) how to get ready to

how to get ready to have a good relationship, how to bind its couple, ):

Provide an original serviceto have a good relationship, how to bind its couple, … ): Reassure potential users who

Reassure potential users who might be reluctant to use online matchmakinghow to bind its couple, … ): Provide an original service Different strategie s to «

users who might be reluctant to use online matchmaking Different strategie s to « tease »

Different strategies to « tease » the users and convince them to subscribe to Match. com’s s to « tease » the users and convince them to subscribe to Match.com’s offer:

Match.com sends compatible profiles by email on a daily/weekly basis even to those who have not subscribedand convince them to subscribe to Match. com’s offer: Match.com provides access to the full profile

Match.com provides access to the full profile but charges if users want to contact by email or by « phone » (the MatchMobile)a daily/weekly basis even to those who have not subscribed Match.com enables users to send «

Match.com enables users to send « wink » for free. Thus if a user is winked at he will have a greaterwant to contact by email or by « phone » (the MatchMobile) incentive to subscribe so

incentive to subscribe so that he can develop his contacts

incentive to subscribe so that he can develop his contacts Sources : Match.com, faberNovel analyses 28.

Sources : Match.com, faberNovel analyses

28. 11. 2007 Research paper

so that he can develop his contacts Sources : Match.com, faberNovel analyses 28. 11. 2007 –

39

Match business development strategy is based on 4 axes

Match business development strategy is based on 4 axes International development through acquisitions of local well
Match business development strategy is based on 4 axes International development through acquisitions of local well

International development through acquisitions of local well established actors

In February 2007, Match.com acquires leading online dating and relationship companies in France and China:

Netclub in France (number 3 dating and relationship site, 4 million members)dating and relationship companies in France and China: eDodo in China (more than 180.000 subscribers)

eDodo in China (more than 180.000 subscribers)(number 3 dating and relationship site, 4 million members) Diversification of its revenues Match.com Match.com

Diversification of its revenues

Match.com

Match.com

business

business

development

development

strategy

strategy

Match.com powers MSN dating services on all continents (which accounts for more than 30 million visitors per month) and AOL for its Love@AOL service (1 million unique visitors in Dec. 2006), BET Interactive, Tiscali (France, Spain, Italy) and so forthbusiness development development strategy strategy In 2006 Match.com struck a partnership with Yahoo! to

In 2006 Match.com struck a partnership with Yahoo! to provide its dating services in England and GermanyBET Interactive, Tiscali (France, Spain, Italy) and so forth I n 2005 Match.com signed an agreement

Yahoo! to provide its dating services in England and Germany I n 2005 Match.com signed an

In 2005 Match.com signed an agreement with Deal Group Media to put advertising on its n 2005 Match.com signed an agreement with Deal Group Media to put advertising on its website for the first time

In the summer of 2007 Match.com launched its mobile platform in the US, the UK and Canada. It would be expanded to 9 other countries at the end of 2007. This service is charged at $4,99 per monthMedia to put advertising on its website for the first time Recruitment of new paying members

Recruitment of new paying members through a very efficient partnership policy

Intensive marketing campaigns

Advertising campaigns account for a large part of Match.com costsThis firm often uses grand marketing campaigns:

This firm often uses grand marketing campaigns:Advertising campaigns account for a large part of Match.com costs

In 2005, Match.com spent more than £3 million in the UKcosts This firm often uses grand marketing campaigns: In 2006 Match.com was third in terms of

In 2006 Match.com was third in terms of spending on online advertising for dating services in the US (16% of the total between January and November)In 2005, Match.com spent more than £3 million in the UK Match.com strategy is clear: concentrate

Match.com strategy is clear: concentrate its marketing expenditures early in the year to drive subscriber growthfor dating services in the US (16% of the total between January and November) 28. 11.

28. 11. 2007 Research paper

concentrate its marketing expenditures early in the year to drive subscriber growth 28. 11. 2007 –

40

Some best practices can be drawn from Match.com functioning

Some best practices can be drawn from Match.com functioning BEST PRACTICES Providing a secure and simple
Some best practices can be drawn from Match.com functioning BEST PRACTICES Providing a secure and simple

BEST PRACTICES

can be drawn from Match.com functioning BEST PRACTICES Providing a secure and simple environment Monitoring

Providing a secure and simple environment

Monitoring the profiles of its users:Providing a secure and simple environment texts, photos and “ambiguous” profiles. Moderators provide human

texts, photos and “ambiguous” profiles. Moderators provide human controls (not only automatic ones)

This guarantee results in:provide human controls (not only automatic ones) User base is 50% women 60% of new subscribers

User base is 50% women(not only automatic ones) This guarantee results in: 60% of new subscribers are women, even if

60% of new subscribers are women, even if they have had to pay since 2006ones) This guarantee results in: User base is 50% women The counterpart is the absence of

The counterpart is the absence of economies of scale in Match.com business model: employees are to be kept proportional to the number of usersare women, even if they have had to pay since 2006 Match.com also provides services to

Match.com also provides services to ease the use of Match.com website and to give confidence to non usual users (especially with Dr. Phil’s advice) Phil’s advice)

to non usual users (especially with Dr. Phil’s advice) Adopting an efficient “teasing strategy” Match.com

Adopting an efficient “teasing strategy”

Match.com allows full access to its users’ profiles: potential subscribers can be sure of the service Match.com provides users’ profiles: potential subscribers can be sure of the service Match.com provides

Every user can receive a “wink” but must subscribe if they want to communicate “wink” but must subscribe if they want to communicate

Different simple and explicit “compatibility tools” (the double compatibility spreadsheet or the matchWords) underline the usefulness of the service “compatibility tools” (the double compatibility spreadsheet or the matchWords) underline the usefulness of the service

Match.comsends compatible

sends

compatible

profiles regularly

If all the most compatible profiles have already been sent, the firm sends the same again in a different orderservice Match.com sends compatible profiles regularly This gives the illusion that new interesting profiles

This gives the illusion that new interesting profiles register all the timeregularly If all the most compatible profiles have already been sent, the firm sends the same

illusion that new interesting profiles register all the time Understanding the specificities of its market(s) of

Understanding the specificities of its market(s)

ofAbsence

Absence

viral

marketing:

Match.com

strongly

invests

in

advertising campaigns

 

Diversity of local markets: :

 

Match.com proposes different versions of its websitescampaigns   Diversity of local markets :   Match.com acquires online matchmaking firms that are already

Match.com acquires online matchmaking firms that are already well implemented in the countries within which the firm wants to develop its activitiescampaigns   Diversity of local markets :   Match.com proposes different versions of its websites

28. 11. 2007 Research paper

implemented in the countries within which the firm wants to develop its activities 28. 11. 2007

41

Summary

Some broad principles for understanding social networking websitesSummary Case study: online matchmaking websites Meetic Match.com Case study: business network websites Xing LinkedIn 28.

Case study: online matchmaking websitesprinciples for understanding social networking websites Meetic Match.com Case study: business network websites Xing

Meeticnetworking websites Case study: online matchmaking websites Match.com Case study: business network websites Xing

Match.comwebsites Case study: online matchmaking websites Meetic Case study: business network websites Xing LinkedIn 28. 11.

Case study: business network websites
Case study: business network websites
websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

Xingmatchmaking websites Meetic Match.com Case study: business network websites LinkedIn 28. 11. 2007 – Research paper

LinkedInmatchmaking websites Meetic Match.com Case study: business network websites Xing 28. 11. 2007 – Research paper

28. 11. 2007 Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

42

Summary

Some broad principles for understanding social networking websitesSummary Case study: online matchmaking websites Meetic Match.com Case study: business network websites Xing LinkedIn 28.

Case study: online matchmaking websitesprinciples for understanding social networking websites Meetic Match.com Case study: business network websites Xing

Meeticnetworking websites Case study: online matchmaking websites Match.com Case study: business network websites Xing

Match.comwebsites Case study: online matchmaking websites Meetic Case study: business network websites Xing LinkedIn 28. 11.

Case study: business network websiteswebsites Case study: online matchmaking websites Meetic Match.com Xing LinkedIn 28. 11. 2007 – Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper
Xing
Xing

LinkedInmatchmaking websites Meetic Match.com Case study: business network websites Xing 28. 11. 2007 – Research paper

28. 11. 2007 Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

43

CASE STUDY: Xing 28. 11. 2007 – Research paper 44
CASE STUDY: Xing 28. 11. 2007 – Research paper 44
CASE STUDY: Xing 28. 11. 2007 – Research paper 44

CASE STUDY: Xing

28. 11. 2007 Research paper

CASE STUDY: Xing 28. 11. 2007 – Research paper 44

44

Brief presentation of the company

Brief presentation of the company XING AG was founded in August 2003 as a German limited

XING AG was founded in August 2003 as a German limited liability company by Lars Hinrichs. It was first called Open Business Club AGBrief presentation of the company The platform was officially launched on November 1 s t ,

The platform was officially launched on November 1 s t , 2003 st , 2003

In 2005, Open Business Club launched a multilingual platform in 16 languages and became one of the leaders of online professional networkswas officially launched on November 1 s t , 2003 In December 2006, Open Business Club

In December 2006, Open Business Club AG was the first Web 2.0 company to go public, floating in the Prime Standard segment of the Frankfurt Stock Exchange. It changed its name and became Xing for the IPObecame one of the leaders of online professional networks Its market capitalization on November 23th 2007

Its market capitalization on November 23th 2007 was 290 million dollarsof the Frankfurt Stock Exchange. It changed its name and became Xing for the IPO 28.

for the IPO Its market capitalization on November 23th 2007 was 290 million dollars 28. 11.

28. 11. 2007 Research paper

for the IPO Its market capitalization on November 23th 2007 was 290 million dollars 28. 11.

45

Xing is one of the leading company in business networks in Europe

is one of the leading company in business networks in Europe Language Website translated in 16

Language

Website translated in 16 languages

Number of profiles [M] September

4 (1)

2007

Number of subscribers March 2007

258 000

Number of unique visitors (December 2006, worldwide)

1,186,000 (number two) (2)

Turnover [M$] 2006 3)

8,4

Operating income [M$] 2006 3)

- 1,26

Number of employees 2006 3)

73

ARFU [$/user] 2006 3)

52,88

ARPU [$/user] 2006 3)

48,65

1) Including members from Neurona (over 1 million) and eConozco (360,000)

2) Includung unique visitors from Neurona (240,000) 3) Converted at 0,734 per $

Sources: Xing, NielsenNet Rating faberNovel analyses

Converted at 0,734 € per $ Sources: Xing, NielsenNet Rating faberNovel analyses 28. 11. 2007 –

28. 11. 2007 Research paper

Converted at 0,734 € per $ Sources: Xing, NielsenNet Rating faberNovel analyses 28. 11. 2007 –

46

Xing has been experiencing strong growth

CAGR: 304%
CAGR: 304%

* : converted at 0,734 per $

Sources: Xing, faberNovel analyses

304% * : converted at 0,734 € per $ Sources: Xing, faberNovel analyses 28. 11. 2007

28. 11. 2007 Research paper

CAGR: 182%

304% * : converted at 0,734 € per $ Sources: Xing, faberNovel analyses 28. 11. 2007
304% * : converted at 0,734 € per $ Sources: Xing, faberNovel analyses 28. 11. 2007

47

Xing has a simple contract offer

Xing has a simple contract offer Xing has a single two contract offer: Free offer enables

Xing has a single two contract offer:

Free offer enables members to access limited profiles of the other members, invite other users to join enables members to access limited profiles of the other members, invite other users to join their network (which allows them to send a message), make basic searches, receive private messages, join groups, organize one meeting per month, research job offers

Premium offer ( € 5,95 ($8,12*) per month) enables members to receive and send private messages, make (5,95 ($8,12*) per month) enables members to receive and send private messages, make advanced searches, post job offers, organize unlimited meeting and conferences, check members who have looked at their profiles and have access to the « premium world » (discounts ofr airline tickets, hotels, etc.)

world » (discounts ofr airline tickets, hotels, etc.) Subscription offer gives premium members access to all
world » (discounts ofr airline tickets, hotels, etc.) Subscription offer gives premium members access to all
world » (discounts ofr airline tickets, hotels, etc.) Subscription offer gives premium members access to all

Subscription offer gives premium members access to all the functionalities provided by Xing, which makes Xing offer one of the simplest and most readable offer of social networking websites

* : converted at 0,734 per $

Sources: Xing, faberNovel analyses

websites * : converted at 0,734 € per $ Sources: Xing, faberNovel analyses 28. 11. 2007

28. 11. 2007 Research paper

websites * : converted at 0,734 € per $ Sources: Xing, faberNovel analyses 28. 11. 2007

48

Xing offers several additional services

Xing mobile allows members to view messages or manage and search for contacts on their mobile phones, Blackberry or PDAXing offers several additional services Xing paying members can benefit from the exclusive offers available in

Xing paying members can benefit from the exclusive offers available in the PremiumWorld (Avis, Radisson,… ) )

Xing allows members to communicate about events they organizeoffers available in the PremiumWorld (Avis, Radisson, … ) Xing members can join different types of

Xing members can join different types of groups:allows members to communicate about events they organize Alumni networks (ENAss alumni club, Coastal Carolina

organize Xing members can join different types of groups: Alumni networks (ENAss alumni club, Coastal Carolina
organize Xing members can join different types of groups: Alumni networks (ENAss alumni club, Coastal Carolina

Alumni networks (ENAss alumni club, Coastal Carolina University)organize Xing members can join different types of groups: Professional (English job offer and demand, Worldwide

Professional (English job offer and demand, Worldwide legal practitioners)networks (ENAss alumni club, Coastal Carolina University) Thematic (Green electricity, patrimony and taxation) The

Thematic (Green electricity, patrimony and taxation)job offer and demand, Worldwide legal practitioners) The Marketplace allows members to access job offers and

Thematic (Green electricity, patrimony and taxation) The Marketplace allows members to access job offers and

The Marketplace allows members to access job offers and premium members to post three job offers at the same timeThematic (Green electricity, patrimony and taxation) Sources: Xing, faberNovel analyses 28. 11. 2007 –

premium members to post three job offers at the same time Sources: Xing, faberNovel analyses 28.

Sources: Xing, faberNovel analyses

28. 11. 2007 Research paper

members to post three job offers at the same time Sources: Xing, faberNovel analyses 28. 11.

49

Xing provides its customers with multiple tools to manage their identities

its customers with multiple tools to manage their identities Contracts offered: Free members »: access to

Contracts offered:its customers with multiple tools to manage their identities Free members »: access to limited or

Free members »: access to limited or full profiles of other members, search other profiles, receive private messagesmultiple tools to manage their identities Contracts offered: Premium members »: access to full or limited

Premium members »: access to full or limited profiles of other members, send and receive private messages, check members who have looked at their profilemembers, search other profiles, receive private messages « « Identity management tools: Real name used Mutliple

«

«

Identity management tools:check members who have looked at their profile « « Real name used Mutliple identities possible,

Real name usedlooked at their profile « « Identity management tools: Mutliple identities possible, although extremely uncommon

Mutliple identities possible, although extremely uncommonprofile « « Identity management tools: Real name used Common information (Surname, name, skype , company,

Common information (Surname, name, skype, company, previous company, study,…) and photo , company, previous company, study,…) and photo

Interests and group/association participationsskype , company, previous company, study,…) and photo Information available to others: The users can choose

and photo Interests and group/association participations Information available to others: The users can choose to
and photo Interests and group/association participations Information available to others: The users can choose to

Information available to others:

The users can choose to make public their profile (available on search engines) or notparticipations Information available to others: Only premium members can decide whether their full profiles

Only premium members can decide whether their full profiles are available to other members or only to their contacts (except for the contact list, all the users can choose to make it available or not topublic their profile (available on search engines) or not others) Sources: Xing, faberNovel analyses 28. 11.

others)

Sources: Xing, faberNovel analyses

28. 11. 2007 Research paper

Subscriber

Registered

Public

Profile availability

oror or

or
or

oror or

or
or
or

or

or
or

Limited Profile

Full Profile

– Research paper Subscriber Registered Public Profile availability or or or Limited Profile Full Profile 50

50

Xing business model relies on three mechanisms

Xing business model relies on three mechanisms Leveraging economies of scale Attracting new members Monetizing its
Leveraging economies of scale Attracting new members Monetizing its user base 28. 11. 2007 –
Leveraging
economies of
scale
Attracting
new
members
Monetizing its
user base
28. 11. 2007 – Research paper
Leveraging economies of scale Attracting new members Monetizing its user base 28. 11. 2007 – Research
Leveraging economies of scale Attracting new members Monetizing its user base 28. 11. 2007 – Research

51

The increase in Xing monetization rate is achieved thanks to five levers

in Xing monetization rate is achieved thanks to five levers A readable offer Discrete but efficient

A readable

offer

Discrete but

efficient

advertising

Adaptation to

local

specificities

Monetization of user base

28. 11. 2007 Research paper

Specific offers for premium members

A high quality of services

of user base 28. 11. 2007 – Research paper Specific offers for premium members A high
of user base 28. 11. 2007 – Research paper Specific offers for premium members A high

52

Xing offer is readable and well adapted

A clear and extremely readable offer (theXing offer is readable and well adapted subscription covers all the functionnalities proposed by the website)

subscription covers all the functionnalities proposed

by the website) which encourages users to subscribe:

They are not afraid of being « over charged »by the website) which encourages users to subscribe: They can use premium functionalities any time they

They can use premium functionalities any time they want and see a clear difference between these ones and the simple functionalitiessubscribe: They are not afraid of being « over charged » It encourages Xing users to

It encourages Xing users to use the website extensivelydifference between these ones and the simple functionalities The adaptation of Xing website to local specificities:

The adaptation of Xing website to local specificities:It encourages Xing users to use the website extensively The website is available in 16 languages

The adaptation of Xing website to local specificities: The website is available in 16 languages Premium

The website is available in 16 languagesThe adaptation of Xing website to local specificities: Premium subscription tariffs evolve depending on the country

Premium subscription tariffsspecificities: The website is available in 16 languages evolve depending on the country to reflect the

evolve depending on the country

to reflect the differences in purchasing power

Sources: Xing, faberNovel analyses

28. 11. 2007 Research paper

differences in purchasing power Sources: Xing, faberNovel analyses 28. 11. 2007 – Research paper Xing in
differences in purchasing power Sources: Xing, faberNovel analyses 28. 11. 2007 – Research paper Xing in

Xing in Chinese

differences in purchasing power Sources: Xing, faberNovel analyses 28. 11. 2007 – Research paper Xing in

53

Xing smartly advertises its offer

Xing smartly advertises its offer Xing provides permanent, changing and discrete advertising for the different services
Xing smartly advertises its offer Xing provides permanent, changing and discrete advertising for the different services

Xing provides permanent, changing and discrete advertising for the different services offered by its premium contract on the user home page

This window changes any time the user refreshes its webpage

Xing regularly offers subscription to the premium contract

user refreshes its webpage Xing regularly offers subscription to the premium contract 28. 11. 2007 –
user refreshes its webpage Xing regularly offers subscription to the premium contract 28. 11. 2007 –

28. 11. 2007 Research paper

user refreshes its webpage Xing regularly offers subscription to the premium contract 28. 11. 2007 –

54

Xing offers a high quality service

Xing has been experiencing a very low churn rate thanks to a high quality of services: the “ member relation team ” accounts for two thirds member relation teamaccounts for two thirds

of Xing employees

relation team ” accounts for two thirds of Xing employees Premium members benefit from multiple special
relation team ” accounts for two thirds of Xing employees Premium members benefit from multiple special

Premium members benefit from multiple special advantages with appropriate services (Financial Times, Radisson Hotels, … ): ):

It contributes to creating a specific environment around themservices (Financial Times, Radisson Hotels, … ): It pampers them and proves how special and important

It pampers them and proves how special and important they are for Xingcontributes to creating a specific environment around them Sources: Xing, faberNovel analyses 28. 11. 2007 –

them and proves how special and important they are for Xing Sources: Xing, faberNovel analyses 28.
them and proves how special and important they are for Xing Sources: Xing, faberNovel analyses 28.

Sources: Xing, faberNovel analyses

28. 11. 2007 Research paper

proves how special and important they are for Xing Sources: Xing, faberNovel analyses 28. 11. 2007
proves how special and important they are for Xing Sources: Xing, faberNovel analyses 28. 11. 2007

55

Xing has a very efficient strategy for recruiting new users

Xing has a very efficient strategy for recruiting new users Marketing expenses*/paying members recruited during the

Marketing expenses*/paying members recruited during the period [$/paying members] (2004-2006

Xingsucceeds

succeeds

in

experiencing

strong

growth

Xing succeeds in experiencing strong growth of its premium members while spending few

of

its

premium

members

while

spending

few

in

marketing

It greatly encourages its existing members to recruit new users:members while spending few in marketing The website offers a very powerful tool to easily import

The website offers a very powerful tool to easily import its address bookencourages its existing members to recruit new users: Members win one month subscription for free for

Members win one month subscription for free for each person they invite and who subscribes to the premium contracta very powerful tool to easily import its address book Xing proposes « premium groups »

Xing proposes « premium groups » for institutions and companies:they invite and who subscribes to the premium contract They ease the identification and the coordination

« premium groups » for institutions and companies: They ease the identification and the coordination of

They ease the identification and the coordination of the members of these institutions ; each member has the logo of the institution he belongs to on his home page« premium groups » for institutions and companies: Institutions will benefit for free from these groups

Institutions will benefit for free from these groups if they agree to promote Xing among their members (otherwise they have to pay to create their group)the logo of the institution he belongs to on his home page They can obtain a

They can obtain a commission if they recruit a certan number of membersmembers (otherwise they have to pay to create their group) Members can benefit from a discount

Members can benefit from a discount if enough members subscribe at the same timea commission if they recruit a certan number of members In September 2006, Xing counted that

In September 2006, Xing counted that 26 Premium groups (Accenture, the University of Hamburg) accounted for 72,000 membersfrom a discount if enough members subscribe at the same time * : converted at 0,734

* : converted at 0,734 per $

Sources: Xing, faberNovel analyses

72,000 members * : converted at 0,734 € per $ Sources: Xing, faberNovel analyses 28. 11.

28. 11. 2007 Research paper

56

Xing viral marketing strategy enables the firm to benefit from economies of scale

strategy enables the firm to benefit from economies of scale While Xing spends little in marketing
strategy enables the firm to benefit from economies of scale While Xing spends little in marketing
While Xing spends little in

While Xing spends

little

in

marketing for each new premium member, it enjoys an increasing average revenue per paying member

It strongly contributes to the

It strongly contributes

to

the

important economies of scale in Xing business model

* : converted at 0,734

per $

Avereage revenues*/Average marketing expenses [$/paying members] (2004-2006)

marketing expenses [$/paying members] (2004-2006) Share of operating costs [000 € ] (2004-2006) 105% 120%

Share of operating costs [000] (2004-2006)

105% 120% 248%
105%
120%
248%

Sources: Xing, faberNovel analyses

28. 11. 2007 Research paper

costs [000 € ] (2004-2006) 105% 120% 248% Sources: Xing, faberNovel analyses 28. 11. 2007 –

57

Xing business development strategy is based on four pillars

Xing business development strategy is based on four pillars International development through acquisitions of local well
Xing business development strategy is based on four pillars International development through acquisitions of local well

International development through acquisitions of local well implanted actors

In

Tuesday AG

2005,

acquisition

of

the

Swiss

company First

Diversification of its offer

Development of PDA versionsof the Swiss company First Diversification of its offer Additional criteria to manage user profiles and

Additional criteria to manage user profiles and to add links to other profiles on Flickr, Twitter, eBay or DiggDiversification of its offer Development of PDA versions Xing has joined Open Social Plateform Xing wants

Xing has joined Open Social Plateformadd links to other profiles on Flickr, Twitter, eBay or Digg Xing wants to increase its

Twitter, eBay or Digg Xing has joined Open Social Plateform Xing wants to increase its number

Xing wants to increase its number of paying members by offering more servicesTwitter, eBay or Digg Xing has joined Open Social Plateform Additional services are numerous: In 2007,

Additional services are numerous:its number of paying members by offering more services In 2007, Xing acquires leading business network

In 2007, Xing acquires leading business network companies in Spain and Latin America:by offering more services Additional services are numerous: eConozco: 150,000 members in March Neurona: 835,000 members

eConozco: 150,000 members in Marchbusiness network companies in Spain and Latin America: Neurona: 835,000 members in June Match.com Xing business

Neurona: 835,000 members in JuneSpain and Latin America: eConozco: 150,000 members in March Match.com Xing business business development

Match.com

Xing business

business

development

development

strategy

strategy

Recruitment of new paying members through a very efficient partnership policy

Promotion of viral marketing

Non-employee Premium Members who serve as country representatives in different countries. They are well-connected individuals who voluntarily use their local and regional contacts to add new membersefficient partnership policy Promotion of viral marketing Huge institutions such as Universities or Numerous tools

Huge institutions such as Universities oruse their local and regional contacts to add new members Numerous tools encourage existing members to

Numerous tools encourage existing members to easily add their contactsto add new members Huge institutions such as Universities or Incitation to add new members through

Incitation to add new members through the offering of the subscription fees during a few months (depending on the number of new users bring on Xing)encourage existing members to easily add their contacts multinational firms which promote the Xing website 28.

multinational firms which promote the Xing website

28. 11. 2007 Research paper

number of new users bring on Xing) multinational firms which promote the Xing website 28. 11.

58

Best practices can be drawn from the Xing case

Best practices can be drawn from the Xing case BEST PRACTICES Promoting viral marketing   The

BEST PRACTICES

Best practices can be drawn from the Xing case BEST PRACTICES Promoting viral marketing   The
Best practices can be drawn from the Xing case BEST PRACTICES Promoting viral marketing   The

Promoting viral marketing

 

The premium groups encourage Xing members to invitePromoting viral marketing   connections who work in the same organization but who are not using

connections who work in the same

organization but who are not using Xing services yet

Xing makes alliances to incite big institutions to promote their services to their employessame organization but who are not using Xing services yet Xing endeavours to ally   with

Xingendeavours to ally   with

endeavours

to

ally

 

with

persons who are

able

to

be

efficient relays for their product.

Their multiple connections

and

central positions enable them to

“prime the pump” marketing

of

viral

Xing has developed tools to ease the importations of all user contactsthem to “prime the pump” marketing of viral Xing incites their members to be promoters of

Xing incites their members to be promoters of the website by offering subscription fee for those who attract new membersto “prime the pump” marketing of viral Xing has developed tools to ease the importations of

offering subscription fee for those who attract new members Creating a pleasant environment Xing’s offer is

Creating a pleasant environment

Xing’s offer is extremely readable and subscribers do not have to pay offer is extremely readable and subscribers do not have to pay

attention to how much they use

Xing

Thesubscription covers

subscription

covers

all

the

services provided

Xing members are more prone to subscribe and to intensively use the servicesThe subscription covers all the services provided Xing subscribers can feel they are “special” for the

Xing subscribers can feel they are “special” for the company: “special” for the company:

advantagesPremium

Premium

pamper

them

Xing ensures a high quality servicefor the company: advantages Premium pamper them in allocating more than the majority of its employes

in allocating more

than the

majority of

its

employes

to

member relations

28. 11. 2007 Research paper

to member relations 28. 11. 2007 – Research paper Understanding the specificities of the markets it

Understanding the specificities of the markets it operates

Xing website is translated into 16 languagesUnderstanding the specificities of the markets it operates Price policy reflects the diversity of purchasing power

Price policy reflects the diversity ofit operates Xing website is translated into 16 languages purchasing power among countries The firm acquired

purchasing power among countries

The firm acquired business networks that were already well implemented in the countries within which the firm wanted to developXing website is translated into 16 languages Price policy reflects the diversity of purchasing power among

acquired business networks that were already well implemented in the countries within which the firm wanted

59

Summary

Some broad principles for understanding social networking websitesSummary Case study: online matchmaking websites Meetic Match.com Case study: business network websites Xing LinkedIn 28.

Case study: online matchmaking websitesprinciples for understanding social networking websites Meetic Match.com Case study: business network websites Xing

Meeticnetworking websites Case study: online matchmaking websites Match.com Case study: business network websites Xing

Match.comwebsites Case study: online matchmaking websites Meetic Case study: business network websites Xing LinkedIn 28. 11.

Case study: business network websiteswebsites Case study: online matchmaking websites Meetic Match.com Xing LinkedIn 28. 11. 2007 – Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

Xingmatchmaking websites Meetic Match.com Case study: business network websites LinkedIn 28. 11. 2007 – Research paper

LinkedIn
LinkedIn

28. 11. 2007 Research paper

websites Meetic Match.com Case study: business network websites Xing LinkedIn 28. 11. 2007 – Research paper

60

CASE STUDY: LinkedIn 28. 11. 2007 – Research paper 61
CASE STUDY: LinkedIn 28. 11. 2007 – Research paper 61

CASE STUDY: LinkedIn

CASE STUDY: LinkedIn 28. 11. 2007 – Research paper 61

28. 11. 2007 Research paper

CASE STUDY: LinkedIn 28. 11. 2007 – Research paper 61

61

Brief presentation of the company

Brief presentation of the company LinkedIn was founded in May 2003 by Reid Hoffman, former CEO

LinkedIn was founded in May 2003 by Reid Hoffman, former CEO and now Chairman and PresidentBrief presentation of the company LinkedIn has become profitable since March 2006, and has $30 million

LinkedIn has become profitable since March 2006, and has $30 million in backing from venture firms such as Sequoia Capital ($4,7 million in Novemberby Reid Hoffman, former CEO and now Chairman and President 2003), Greylock ($10 million in October

2003), Greylock ($10 million in October 2004), Bessemer Venture Partners

and European Founders ($12,8 million in January 2007), valuing the company at $250 million

LinkedIn is the largest online professional network worldwide, with more than 16 million usersin January 2007), valuing the company at $250 million The website is only available in English,

The website is only available in English, but has raised funds in prevision ofnetwork worldwide, with more than 16 million users an international expansion in the near future 28.

an international expansion in the near future

but has raised funds in prevision of an international expansion in the near future 28. 11.

28. 11. 2007 Research paper

but has raised funds in prevision of an international expansion in the near future 28. 11.

62

LinkedIn is the world’s leading company in business network

is the world’s leading company in business network Language Website only available in English Number of

Language

Website only available in English

Number of profiles [M] November

16

2007

Number of Unique Visitors [M]

1,5

(Dec.2006)

Turnover [M$] 2006

6,5 (1)

Operating income [M$] 2006

1

Number of employees 2006

70

ARFU [$/user] 2006

0,62 (1)

ARPU [$/user] 2006

20,63 (1)

1) : Estimates

Sources: NielsenNet Ratings, Thomson Financial, LinkedIn

20,63 (1) 1) : Estimates Sources: NielsenNet Ratings, Thomson Financial, LinkedIn 28. 11. 2007 – Research

28. 11. 2007 Research paper

20,63 (1) 1) : Estimates Sources: NielsenNet Ratings, Thomson Financial, LinkedIn 28. 11. 2007 – Research

63

LinkedIn boasts an impressive growth

More than 16 million users as of November 2007LinkedIn boasts an impressive growth Around 9 million members at the start of the year All

growth More than 16 million users as of November 2007 Around 9 million members at the

Around 9 million members at the start of the yeargrowth More than 16 million users as of November 2007 All members are professionnals, meaning the

All members are professionnals, meaning the site’s target audience is restricted2007 Around 9 million members at the start of the year LinkedIn was the fastest growing

LinkedIn was the fastest growing social networking website in the US in 2007:meaning the site’s target audience is restricted up 189% between October 2006 and October 2007 Top

up 189% between October 2006 and October 2007

US in 2007: up 189% between October 2006 and October 2007 Top 10 Social Networking Websites
US in 2007: up 189% between October 2006 and October 2007 Top 10 Social Networking Websites
Top 10 Social Networking Websites for October 2007 (US, Home and Work) Unique Audience (000)
Top 10 Social Networking Websites for October 2007
(US, Home and Work)
Unique Audience (000)
Social Networking Site
Oct-06
Oct-07
% Change
Myspace
49,516
58,843
19%
Facebook
8,682
19,519
125%
Classmates Online
13,564
13,278
-2%
Windows Live Spaces
7,795
10,261
32%
AOL Hometown (TWX)
9,298
7,923
-15%
LinkedIn
1,705
4,919
189%
AOL People Connection
5,849
4,084
-30%
Reunion.com
4,723
4,082
-14%
Club Penguin
1,512
3,880
157%
Buzznet.com
1,104
2,397
117%

Sources: LinkedIn, Nielsen Online

28. 11. 2007 Research paper

1,512 3,880 157% Buzznet.com 1,104 2,397 117% Sources: LinkedIn, Nielsen Online 28. 11. 2007 – Research

64

LinkedIn gives users a high level of control over

their digital identity and their personal information

LinkedIn users that know someone to the third degree can see his/her profile in fullover their digital identity and their personal information Information displayed in a profile includes: Full name

Information displayed in a profile includes:someone to the third degree can see his/her profile in full Full name and picture Current

Full name and pictureprofile in full Information displayed in a profile includes: Current and past positions Education Connections

Current and past positionsdisplayed in a profile includes: Full name and picture Education Connections Recommendations E-mail adress (only

Educationincludes: Full name and picture Current and past positions Connections Recommendations E-mail adress (only for direct

ConnectionsFull name and picture Current and past positions Education Recommendations E-mail adress (only for direct connections)

Recommendationsand picture Current and past positions Education Connections E-mail adress (only for direct connections) Other users

E-mail adress (only for direct connections)and past positions Education Connections Recommendations Other users will only see a limited profile This profile

Other users will only see a limited profileRecommendations E-mail adress (only for direct connections) This profile can be customized to display only what

This profile can be customized to display only what one wishes to make publicly availableconnections) Other users will only see a limited profile This profile can be found using search

This profile can be found using searchto display only what one wishes to make publicly available engines (a feature that can be

engines (a feature that can be turned off)

The ‟Invitation Block” feature lets users block invitations from people they do not know well ‟Invitation Block” feature lets users block invitations from people they do not know well

users block invitations from people they do not know well Sources: LinkedIn 28. 11. 2007 –

Sources: LinkedIn

28. 11. 2007 Research paper

well Sources: LinkedIn 28. 11. 2007 – Research paper Subscriber Registered Public Profile availability up to
well Sources: LinkedIn 28. 11. 2007 – Research paper Subscriber Registered Public Profile availability up to

Subscriber

Registered

Public

Profile availability

up to
up to
up to

up to

 
 
 
 
 
 

Limited Profile

Full Profile

Research paper Subscriber Registered Public Profile availability up to     Limited Profile Full Profile 65

65

LinkedIn’s business model is based on three mechanisms

LinkedIn’s business model is based on three mechanisms Gain adhesion from LinkedIn users by providing additional
Gain adhesion from LinkedIn users by providing additional services Providing free services Attracting intensive
Gain adhesion
from LinkedIn
users by providing
additional
services
Providing
free services
Attracting
intensive
users
Offering a
valuable service
Attracting intensive users Offering a valuable service Attract users willing to pay for specialized features that

Attract users willing to pay for specialized features that let them extend their connections

28. 11. 2007 Research paper

extend their connections 28. 11. 2007 – Research paper Offer services that tap into the user

Offer services that

tap into the user base’s knowledge and connections

28. 11. 2007 – Research paper Offer services that tap into the user base’s knowledge and

66

LinkedIn provides users with multiple free services

LinkedIn provides users with multiple free services Free offer : allows users to manage their network,

Free offer: allows users to manage their network, send request introductions (but not inmails), see the : allows users to manage their network, send request introductions (but not inmails), see the profiles of their network members and check out job offers

LinkedIn Service Recommandations: LinkedIn users can search service providers of all : LinkedIn users can search service providers of all

types (Financial & Legal Services, Health & Medical, Consulting, ), who are ranked by

number of recommandations (even if they are not LinkedIn members) and look up service providers recommanded specifically by their network. Each user can ask members of his/her network to recommand them.

user can ask members of his/her network to recommand them . LinkedIn Groups : any user

LinkedIn Groups: any user can create a group, which makes relations between members of a same : any user can create a group, which makes relations between members of a same organization easier to manage. More than 1000 such groups currently exist on LinkedIn.

Sources: LinkedIn

to manage. More than 1000 such groups currently exist on LinkedIn. Sources: LinkedIn 28. 11. 2007

28. 11. 2007 Research paper

to manage. More than 1000 such groups currently exist on LinkedIn. Sources: LinkedIn 28. 11. 2007

67

LinkedIn provides an array of free tools to better integrate the

information available in the users’ everyday life and uses

Linkedn Outlook Toolbar

the users’ everyday life and uses Linkedn Outlook Toolbar Helps the user build his/her network •
the users’ everyday life and uses Linkedn Outlook Toolbar Helps the user build his/her network •
Helps the user build his/her network
Helps the user build
his/her network

See which people you e-mail

often, and invite them to your LinkedIn network

Fast one-click invites

Upload your Outlook contacts in LinkedIn

Manages contacts and communications in Outlook
Manages contacts and
communications in
Outlook

Create an Outlook contact from

text with the Grab feature

Update Outlook contacts with

LinkedIn information

Manage contacts and

communications with the LinkedIn Dashboard

Integrates LinkedIn services
Integrates LinkedIn
services

Direct access to LinkedIn

features

Search LinkedIn by keyword,

name, title or company

•

button displays profile

information for every e-mail received

Linkedn Browser Toolbar*

for every e-mail received Linkedn Browser Toolbar* Provides extensive search features Integrates LinkedIn
Provides extensive search features Integrates LinkedIn services Features the LinkedIn JobsInsider
Provides extensive
search features
Integrates LinkedIn
services
Features the LinkedIn
JobsInsider
LinkedIn services Features the LinkedIn JobsInsider • Search LinkedIn by keyword, name, title or company

Search LinkedIn by keyword,

name, title or company

Highlight any text and right click

to search LinkedIn

Save search results as

bookmarks for future references

*For FireFox / Internet Explorer

Sources: LinkedIn, faberNovel analyses

Direct access to LinkedIn

features

Save profiles of interest as

bookmarks for future references

•

button displays profile

information for every webmail received

28. 11. 2007 Research paper

See what people in your

connections can help you with job offers displayed on job sites (Craigslist, Monster, etc.)

Request an introduction, additional

information or help to get hired from these people

Monster, etc.) • Request an introduction, additional information or help to get hired from these people

68

LinkedIn offers intensive users three paying services

LinkedIn offers intensive users three paying services Personnal offer One subscription offer: $60 per year The
LinkedIn offers intensive users three paying services Personnal offer One subscription offer: $60 per year The

Personnal

offer

One subscription offer: $60 perPersonnal offer year The pass allows one to: Be contacted by any LinkedIn member without revealing

year

The pass allows one to:Personnal offer One subscription offer: $60 per year Be contacted by any LinkedIn member without revealing

Be contacted by any LinkedIn memberOne subscription offer: $60 per year The pass allows one to: without revealing his email or

without revealing his email or phone

number (the OpenLink Messages”)

Receive premium support fromhis email or phone number (the “ OpenLink Messages”) LinkedIn’s Customer Service team Get five more

LinkedIn’s Customer Service team

Get five more Introductions at a timepremium support from LinkedIn’s Customer Service team Announce that you want to make new contacts Find

Announce that you want to make newCustomer Service team Get five more Introductions at a time contacts Find and be found by

contacts

Find and be found by other membersService team Get five more Introductions at a time Announce that you want to make new

of the OpenLink Network

Sources: LinkedIn, faberNovel analyses

the OpenLink Network Sources: LinkedIn, faberNovel analyses Business offer Three subscription offers: Business :

Business

offer

Three subscription offers:Business offer Business : $19,95 per month Business Plus : $50 per month Pro : $200

Business: $19,95 per month : $19,95 per month

Business Plus: $50 per month : $50 per month

Pro: $200 per month : $200 per month

These passes offer:per month Business Plus : $50 per month Pro : $200 per month Business :15 request

Business:15 request introductions at a :15 request introductions at a

time, 3 inmail sending per month and

100 LinkedIn Network search results

request

introductions at a time, 10 inmail

sending per month and 150 LinkedIn

Network search results

Businesssending per month and 150 LinkedIn Network search results Plus : 25 Pro : 40 request

Plus:

25

Pro: 40 request introductions at a time, : 40 request introductions at a time,

50 inmail sending per month and 200

LinkedIn Network search results

All give access to the OpenLink NetworkPlus : 25 Pro : 40 request introductions at a time, 50 inmail sending per month

28. 11. 2007 Research paper

to the OpenLink Network 28. 11. 2007 – Research paper Job service Two offers: Post one
to the OpenLink Network 28. 11. 2007 – Research paper Job service Two offers: Post one

Job

service

Two offers:Job service Post one job offer: $145 Post 5 or 10 job offers: $125 per offer

Post one job offer: $145Job service Two offers: Post 5 or 10 job offers: $125 per offer

Post 5 or 10 job offers: $125 per offerJob service Two offers: Post one job offer: $145

– Research paper Job service Two offers: Post one job offer: $145 Post 5 or 10

69

Corporate recruiters have access to improved services

Main interest for recruiters : gaining access to all LinkedIn users, even those that are not actively seeking jobsCorporate recruiters have access to improved services Recruiters can get in touch with interesting candidates using

Recruiters can get in touch with interesting candidates usingusers, even those that are not actively seeking jobs LinkedIn Introductions and Inmails 30 times more

LinkedIn Introductions and Inmails

30 times more likely to get a response than cold calls or emails, excellent response ratecandidates using LinkedIn Introductions and Inmails Available to: Recruiters who have upgraded to business

Available to:response than cold calls or emails, excellent response rate Recruiters who have upgraded to business accounts

Recruiters who have upgraded to business accountscold calls or emails, excellent response rate Available to: Corporate accounts : Between $10,000 and $250,000

Corporate accounts :to: Recruiters who have upgraded to business accounts Between $10,000 and $250,000 annually for subscriptions

Between $10,000 and $250,000 annually for subscriptionswho have upgraded to business accounts Corporate accounts : Provide an array of tools and services

Provide an array of tools and services designed specifically for corporate recruiting professionals to source, manage and hire: Between $10,000 and $250,000 annually for subscriptions talent, such as: The LinkedIn Project: A browser-based

talent, such as:

The LinkedIn Project: A browser-based project management tool that lets recruiters add private comments to profiles and organize them during the search processprofessionals to source, manage and hire talent, such as: Targeted Recruiting Advertising: An on-site advertising tool

Targeted Recruiting Advertising: An on-site advertising toolto profiles and organize them during the search process to reach a specific type of candidates,

Targeted Recruiting Advertising: An on-site advertising tool to reach a specific type of candidates, according to

to reach a specific type of candidates, according to their

skills, location or experience

Sources: LinkedIn

28. 11. 2007 Research paper

of candidates, according to their skills, location or experience Sources: LinkedIn 28. 11. 2007 – Research
of candidates, according to their skills, location or experience Sources: LinkedIn 28. 11. 2007 – Research
of candidates, according to their skills, location or experience Sources: LinkedIn 28. 11. 2007 – Research

70

LinkedIn Jobs lets users leverage their network to find job opportunities

lets users leverage their network to find job opportunities Benefits: The poster: Makes sure he/she hires

Benefits:

The poster:leverage their network to find job opportunities Benefits: Makes sure he/she hires quality applicants (by reviewing

network to find job opportunities Benefits: The poster: Makes sure he/she hires quality applicants (by reviewing

Makes sure he/she hires quality applicants (by reviewing their references)network to find job opportunities Benefits: The poster: Uses his/her connections to spread the word on

Uses his/her connections to spread the word on his posthires quality applicants (by reviewing their references) The applicant : Gets information on the poster Can

The applicant :Uses his/her connections to spread the word on his post Gets information on the poster Can

Gets information on the posterconnections to spread the word on his post The applicant : Can be introduced by a

Can be introduced by a common relationthe word on his post The applicant : Gets information on the poster Sources: LinkedIn 28.

information on the poster Can be introduced by a common relation Sources: LinkedIn 28. 11. 2007
information on the poster Can be introduced by a common relation Sources: LinkedIn 28. 11. 2007

Sources: LinkedIn

28. 11. 2007 Research paper

information on the poster Can be introduced by a common relation Sources: LinkedIn 28. 11. 2007

71

The LinkedIn Answers feature lets users tap into the vast

pool of knowledge that LinkedIn members represent

the vast pool of knowledge that LinkedIn members represent Launched in January 2007 LinkedIn Answers gives

Launched in January 2007the vast pool of knowledge that LinkedIn members represent LinkedIn Answers gives users the opportunity to

LinkedIn Answers gives users the opportunity to ask questions and get answers from qualified professionnalsthat LinkedIn members represent Launched in January 2007 Forbidden content: Advertisement Inappropriate questions

Forbidden content:ask questions and get answers from qualified professionnals Advertisement Inappropriate questions Duplicate of questions

get answers from qualified professionnals Forbidden content: Advertisement Inappropriate questions Duplicate of questions

Advertisementget answers from qualified professionnals Forbidden content: Inappropriate questions Duplicate of questions already asked

Inappropriate questionsqualified professionnals Forbidden content: Advertisement Duplicate of questions already asked Different levels of

Duplicate of questions already askedForbidden content: Advertisement Inappropriate questions Different levels of propagation (chosen by the users): Only

Different levels of propagation (chosen by the users):Inappropriate questions Duplicate of questions already asked Only visible to the poster’s direct connections Visible to

Only visible to the poster’s direct connectionsasked Different levels of propagation (chosen by the users): Visible to all LinkedIn users Usefulness and

Visible to all LinkedIn usersusers): Only visible to the poster’s direct connections Usefulness and reward For the poster: getting specific

Usefulness and rewardposter’s direct connections Visible to all LinkedIn users For the poster: getting specific information from relevant

For the poster: getting specific information from relevant sources in different fields that would otherwise be inaccessibleVisible to all LinkedIn users Usefulness and reward For answering users: showing one’s expertise in a

For answering users: showing one’s expertise in a specific field to all interested in the subjectsources in different fields that would otherwise be inaccessible Sources: LinkedIn 28. 11. 2007 – Research

expertise in a specific field to all interested in the subject Sources: LinkedIn 28. 11. 2007
Sources: LinkedIn 28. 11. 2007 – Research paper
Sources: LinkedIn
28. 11. 2007 – Research paper

72

LinkedIn development strategy is based on three pillars

LinkedIn development strategy is based on three pillars Gain an international influence: One of the last
LinkedIn development strategy is based on three pillars Gain an international influence: One of the last

Gain an international influence:

One of the last funding round’s main objectives (Jan. 2007) round’s main objectives (Jan. 2007)

To be achieved by developing several major partnerships with international entitiesof the last funding round’s main objectives (Jan. 2007) Develop the social aspects of the website

Develop the social aspects of the website ( Addition of several features used in other popular social networking websites ):

User profile picturesused in other popular social networking websites ) : “Network Updates” equivalent to the Facebook newsfeed

“Network Updates” equivalent to the Facebook newsfeed equivalent to the Facebook newsfeed

Improved messenging functions“Network Updates” equivalent to the Facebook newsfeed LinkedIn possible evolution with Open Social (beta test)

LinkedIn possible evolution

with Open Social (beta test)

LinkedIn possible evolution with Open Social (beta test) Integrate platform: the Open Social One of the

Integrate

platform:

the

Open

Social

One of the social networking websites that agreed to join Google’s Open Social initiative Google’s Open Social initiative

Creation of a global API platformthat agreed to join Google’s Open Social initiative that could be used across all partner social

that could be used across all partner social networks

28. 11. 2007 Research paper

of a global API platform that could be used across all partner social networks 28. 11.

73

Best practices can be drawn from the LinkedIn case

Best practices can be drawn from the LinkedIn case BEST PRACTICES Positionning the website as an

BEST PRACTICES

practices can be drawn from the LinkedIn case BEST PRACTICES Positionning the website as an efficient
practices can be drawn from the LinkedIn case BEST PRACTICES Positionning the website as an efficient
Positionning the website as an efficient recruitment tool and career accelator
Positionning the website as an efficient recruitment tool and career accelator

Positionning the website as an efficient recruitment tool and career accelator

Positionning the website as an efficient recruitment tool and career accelator

LinkedInas an efficient recruitment tool and career accelator insists on the professional interest of developing one’s

insists

on

the

professional interest of developing one’s network : finding interesting potential hires and checking their background
professional interest of developing one’s network : finding interesting potential hires and checking their background
professional interest of developing one’s network : finding interesting potential hires and checking their background

professional interest of developing one’s network : finding interesting potential hires and checking their background using one’s connections

LinkedIn offers paying subscribers access to their database, letting them find the ideal candidate and
LinkedIn offers paying subscribers access to their database, letting them find the ideal candidate and
LinkedIn offers paying subscribers access to their database, letting them find the ideal candidate and

LinkedIn offers paying subscribers access to their database, letting them find the ideal candidate and get in touch with himand checking their background using one’s connections Compared to traditional job postings, the recruiter can also

Compared to traditional job postings, the recruiter can also target passive members, which are not

Compared to traditional job postings, the recruiter can also target passive members, which are not actively looking for a joboffers paying subscribers access to their database, letting them find the ideal candidate and get in

passive members, which are not actively looking for a job   Maximising its user base’s potential
 

Maximising its user base’s potential

LinkedIn presents its user base as a formidable resource that subscribers can tap into

LinkedIn presents its user base as a formidable resource that subscribers can tap into

Accessing the knowledge and expertise of million of professionals coming from various spheres and industriesbase as a formidable resource that subscribers can tap into Using existing connections to quickly develop

Using existing connections to quickly develop new relations and extend their networkcan tap into Accessing the knowledge and expertise of million of professionals coming from various spheres

28. 11. 2007 Research paper

and extend their network 28. 11. 2007 – Research paper Integrating the website on other platforms

Integrating the website on other platforms to increase its influence

LinkedIn offers tools that let users develop their networkthe website on other platforms to increase its influence LinkedIn tools can also help looking for

LinkedIn tools can also help looking for a job onlineLinkedIn offers tools that let users develop their network LinkedIn’s main functionalities can thus be accessed

LinkedIn’s main functionalities can thus be accessed from tools always main functionalities can thus be accessed from tools always

used by professionals, without

having to be on the website

can thus be accessed from tools always used by professionals, without having to be on the

74

Allow us now to introduce ourselves…

Allow us now to introduce ourselves… 28. 11. 2007 – Research paper 75

28. 11. 2007 Research paper

Allow us now to introduce ourselves… 28. 11. 2007 – Research paper 75

75

faberNovel’s activities are split into 3 units

faberNovel’s activities are split into 3 units Consulting Strategy and organization for growth and innovation Assisting

ConsultingfaberNovel’s activities are split into 3 units Strategy and organization for growth and innovation Assisting large

Strategy and organization for growth and innovation

Assistinglarge

large

groups

on

methodology,

analysis

and

decision making

Innovation consultingon methodology, analysis and decision making Innovation strategy Organization and innovation Change

Innovation strategyanalysis and decision making Innovation consulting Organization and innovation Change management Knowledge

Organization and innovationdecision making Innovation consulting Innovation strategy Change management Knowledge management R&D portfolio

Change managementInnovation consulting Innovation strategy Organization and innovation Knowledge management R&D portfolio management

Knowledge managementInnovation consulting Innovation strategy Organization and innovation Change management R&D portfolio management

R&D portfolio managementmaking Innovation consulting Innovation strategy Organization and innovation Change management Knowledge management

Stimulate innovative genes

XPR&D portfolio management Stimulate innovative genes Experimentation and project management Strategic

Experimentation and project management

Strategic experimentationReduction of innovation risks Fast acquisition of key know- how and skills Conception and development

Reduction of innovation risksStrategic experimentation Fast acquisition of key know- how and skills Conception and development of innovative products

Fast acquisition of key know-Strategic experimentation Reduction of innovation risks how and skills Conception and development of innovative products

how and skills

Conception and development of innovative products and servicesrisks Fast acquisition of key know- how and skills Functional specification Outsourced project management

Functional specificationand development of innovative products and services Outsourced project management Conception and business

Outsourced projectof innovative products and services Functional specification management Conception and business validation Evaluation and

management

Conception and business validationFunctional specification Outsourced project management Evaluation and identification of partners Piloting and

Evaluation and identification of partnersservices Functional specification Outsourced project management Conception and business validation Piloting and feedback

Piloting and feedbackspecification Outsourced project management Conception and business validation Evaluation and identification of partners

Carry out quickly

28. 11. 2007 Research paper

feedback Carry out quickly 28. 11. 2007 – Research paper Venturi Internal project development and investment

Venturi

Internal project development

and investment

Venture capital, “excubation” Investment and development of internal projects Company creation assistance Capital

Venture capital, “excubation”

Venture capital, “excubation” Investment and development of internal projects Company creation assistance Capital