Uploaded byLeon Benjamin
Change Comes From Within
The document discusses the necessity for companies to embrace social media and internal cultural change to adapt to the evolving network economy. It highlights case studies from British Airways and Mornflake, showcasing how social media can enhance customer engagement, brand awareness, and operational efficiency while outlining the challenges of content quality and organizational structure. It emphasizes the importance of peer-to-peer connections and collaborative capitalism over traditional command-and-control business models.
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Change Comes From Within
- 1. Change comes fromwithin Why social media outside the company isn’t enough Leon Benjamin
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- 3. What’s the story?Social media actually works Case studies and insights British Airways Mornflake (who?) Challenges, limits Why change comes from within The implications of an unstoppable shift to a network economy How to adapt Discussion
- 4. British Airways –Business Case Classes of Business Benefit Intangible Tangible Source of contribution Customer Loyalty & Brand Awareness Direct Revenue Lower Operational Expense Comment Customer/Member profile √ √ Customer intelligence & extending market reach at low cost Advocacy/pass through revenue √ √ √ Sales channel for complimentary products/services Group Discounts √ √ Special offers to subscribers Affiliation √ √ Viral sales Member-Member commerce √ √ Packaging brand products to serve customer's own network Web Services, community, UGC √ Forms deeper customer relationships Competitive research √ √ Access to opinions using polls/surveys Product development & feedback √ √ √ Lower service development costs Peer-to-peer self-help √ √ Reduces contact centre traffic Membership √ √ √ Friends invitations. Member get member
- 5. British Airways -Metrotwin Social recommendation engine Places & things in London & New York If you like this in London, you’ll like this in New York Innovative use of lists IBM’s experience of lists Twitter launches lists
- 6. British Airways -Metrotwin Innovative use of Google Maps Improve navigation Easy filtering What’s around my hotel? Twinning Places Areas Indexing The Metrotwin Index Complex algorithm Genuine popularity Prevent ‘gaming’
- 7. British Airways –Challenges Quality of content How do you guarantee quality? Recruited/vetted specialists in each city ‘ A’ List bloggers Content partners (Radio & web) The Metrotwin Network Incentives (a lot) of BA Miles (per list, per entry) Bragging rights Page rank/links Anyone can sign up but only MT Network can create new entries Other users can rate, suggest twins, comment Images Flickr, image rights and the use of Creative Commons Licensing Getting people to join (seeding/community outreach) Cannot be underestimated whatever the brand Email campaign BA’s Club Card, agencies, partners PR Campaign Conventional print (consumer/trade) Mayor from each city submitting a list
- 8. British Airways –Challenges Legal & Moderation Hosting User Generated Content (UGC) makes directors responsible Jail time – EU eCommerce Directive Strict terms & conditions of use covers much of the risk Contracts with content partners Moderation Pre-moderation? Post-moderation? Reactive? 24hr coverage Outsourced Transfers a lot of risk – insurance is expensive Names, logos, searches – time consuming! Organisational Multi-agency effort Competing agencies (MadeByMany, BBH, Agency.com, Headshift, Tempero...and others!) Increased complexity & politics Greater effort/cost to deliver
- 9. British Airways -Outcomes Business Case Achievements Useful tool used/promoted by many customers Brand awareness Deeper relationships 5k-10k ACTIVE users Low maintenance moderation/operational effort Low numbers of deviants Incorporated into BA’s overall marketing mix London-Mumbai coming soon! Good return on investment Recognition of the value of intangibles/relationships Failures Advertising/pass through revenue not nearly enough to cover the operational costs Facebook type volumes required
- 10. Mornflake – CaseStudy Classes of Business Benefit Intangible Tangible Source of contribution Customer Loyalty & Brand Awareness Direct Revenue Lower Operational Expense Comment Customer/Member profile √ √ Customer intelligence & extending market reach at low cost Advocacy/pass through revenue √ √ √ Sales channel for complimentary products/services Group Discounts √ √ Special offers to subscribers Affiliation √ √ Viral sales Member-Member commerce √ √ Packaging brand products to serve customer's own network Web Services, community, UGC √ Forms deeper customer relationships Competitive research √ √ Access to opinions using polls/surveys Product development & feedback √ √ √ Lower service development costs Peer-to-peer self-help √ √ Reduces contact centre traffic Membership √ √ √ Friends invitations. Member get member
- 11. Mornflake Video CompetitionMake a video about your values £15k first prize 10 week campaign Uvizz Innovative use of video technology Groups, reward structure 52 uVizz video submissions 11,000 unique views 20,000 total views 30-90sec clips 5 TV quality commercials Value = £250k Legal Reasonably straight forward
- 12. Social Media Assets– Flickr Innovative seeding strategy Engaged a network of ‘free thinkers’ Open source, authentic approach Created presence in wide variety of ‘destinations’ Flickr, Youtube, Twitter, Facebook, blogs Twitter Permission marketing tool
- 13. Competitive Comparison Webpresence indicator Jordans Dorset Mornflake Comment Main site Page Rank 4 5 4 Mornflake catches up Google Search Results 47,800 37,000 21,000 At peak. Currently 14,000. SamePoint Search Results 2,700 5,500 1,600 Reflects the shorter time/less content No. Twitter Followers 330 188 4,000 Surpassed competition.
- 14. Quantitative Outcomes Target/objectiveAchieved? Delivered Comment 100,000 registrations X 3138 683 video, 2455 Bag of Oats 20m interactions with the brand X 2m interactions Based on link planting Rich video advertising content √ 51, 30sec-90sec videos £250k market value Customer intelligence √ Qualitative feedback after trying product Cost avoidance of focus groups? Incremental demand for product Cost avoidance (Facebook advertising) √ £50k Based on five month ad campaign to raise awareness (home page ads) Presence all major social media platforms √ Flickr, Youtube, Facebook, Typepad (blog), Twitter 4,000 Twitter followers Improve the selling process to big supermarkets √ Young buyers at supermarkets more aware of product Penetrate new demographics √ See above Engaged new demographic age group 25-45
- 15. Why isn’t thisenough? Mornflake Culture shock Unwilling to ‘take over’ Receive training Marketers not given permission to incorporate ‘conversation’ into daily schedule E.g. Maintain blog, Twitter But wants to capture a new demographic? Agency execution Outsourced their personality Danger that new advocates will feel used British Airways Ditto To interact with networks, brands must themselves become networks Adopting social media ‘inside’ Changes behaviour Digital (banner) advertising is losing its effectiveness
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- 17. What’s that comingover the hill?
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- 19. The Biggest Storyof the 21 st Century? The demise of command and control Massive advances in technology Prosperity to millions But at what cost to humanity, equality , society and the environment? Network organisation as the model of choice There is a spectre haunting the world. The spectre of peer-to-peer Open source production Collaborative capitalism * not * managerial capitalism The future is about less Web 2.0 Is about “architectures of participation” Hanging out where your customers are
- 20. What do theseneed to survive? Orders Order Stability Continuity Rules Fear Withholding Information Measurement Incentives Competition
- 21. The Cost ofCommand & Control Modern Ways Open India’s Doors to Diabetes Got the cash but it comes with ‘issues’ Western diet/lifestyle 35m type 2 diabetics. 75m by 2030 Work Rage France Telecom’s suicide rate 21 since Feb 2008 One more last week despite ‘interventions’ 2.6m people in Britain on incapacity benefits Over 60% there courtesy of workplace stress Inequality USA 1950, CEO earns on average 40 X lowest paid worker In 2009, CEO earns on average 4,000 X lowest paid worker Frequently as high as 200,000 X 47m Americans without health insurance In the UK poverty is almost at pre-war levels Environment The economy is a wholly owned subsidiary of the environment The Story of Stuff, An Inconvenient Truth, etc, etc The West: Signs of cracking? US infant mortality, UK & US drop to 17 th & 19 th (out of 19) on preventable deaths 30m Americans on ‘low food security’ Education disparity
- 22. What do theseneed to survive? Everyone is a leader Everyone sensing, responding, Transparency Trust Peers Agile Adaptable Self-organising
- 23. The Value ofPeer-to-Peer Production Open Source Software Google, Facebook, Yahoo, Amazon, eBay could not exist without Open Source technology Linux & Coase’s Penguin P2P lending Grameen bank, Kiva, Zopa...many others Prosperity without growth Steady state economies Fractional work Creative commons Crowdsourcing is solving some of the world's intractable problems NASA Clickworkers Crowdsourcing “ The future of a country depends less on the nature of its issues, and more on its capacity to invent social structures able to solve them”. Noubel
- 24. Where to start?Create antibodies & Super Connectors ‘ Chief listening Officer’ Sole purpose is to achieve the same levels of productivity being achieved by ‘open source’, peer-to-peer production models No other way to have a continuous dialogue with the market Adopt different tools & methodologies Projects/programmes Bioteams Rowe (Best Buy) Agile development The intranet as a conversation platform Email is important? More private messages sent on social networks than email (as of 2008) Read The Cluetrain Manifesto Published in 2000
- 25. Change comes fromwithin In both internetworked markets and among intranetworked employees, people are speaking to each other in a powerful new way Companies that assume online markets are the same markets that used to watch their ads on television are kidding themselves To speak with a human voice, companies must share the concerns of their communities. But first, they must belong to a community . Intranets naturally tend to route around boredom. The best are built bottom-up by engaged individuals cooperating to construct something far more valuable: an intranetworked corporate conversation. We want you to take 50 million of us as seriously as you take one reporter from The Wall Street Journal
- 26. Room for discussion?Objects in the mirror are closer than they appear......