forrester marktplein dm

The Groundswell

What’s Social Computing and why it’s important

Mary Beth KempPrincipal AnalystForrester Research

Innocent’ Big Knit has 662 Flickr photos…

7Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Blogs

UGC

RSS

Widgets

Podcasting

Buzz

Twitter

Wikis

XMLGadgets

IM

Social Networks

Forums

Personal portals

8Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Theme

Create a coherent social strategy by focusing

on relationships – not technologies

9Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Agenda

• What are the essentials of social media?

• How are Dutch consumers connecting?

• How do social technologies integrate with marketing?

• What are the opportunities and evolutions?

10Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Agenda

• What are the essentials of social media?

• How are Dutch consumers connecting?

• How do social technologies integrate with marketing?

• What are the opportunities and evolutions?

11Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Definition – Social Computing

► Social computing is a social structure in which technology puts power in communities, not institutions.

12Entire contents © 2008  Forrester Research, Inc. All rights reserved.

The consumer is in control

13Entire contents © 2008  Forrester Research, Inc. All rights reserved.

People trust advice from friends

Recommendations from friends/family

Ads on mobile phones

Web banner ads

Search engine ads

Branded Web sites

Ads in magazines

Ads on radio

Ads on TV

Ads in newspapers

Requested email updates

Consumer opinions posted online

0% 20% 40% 60% 80% 100%

“I trust:”

Base: European online consumers

14Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Consumer to consumers dynamics are key

15Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Agenda

• What are the essentials of social media?

• How are Dutch consumers connecting?

• How do social technologies integrate with marketing?

• What are the opportunities and evolutions?

16Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Europeans are avidly adopting social computing

• Half of online Europeans engage in social computing

• Major brands are using it to reach consumers: Jeep, Coke, Lego, Dell….

• And it’s influencing company policies; Cadbury’s Wispa, HSBC backdown on student charges…

17Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Percentage of consumers who use these technologies monthly or more often

Dutch consumers are most-often spectators

42%

33%

33%

13%

11%

8%

8%

8%

7%

4%

4%

3%

2%

1%

16%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Watch peer-generated video on a video-sharing site

Read customer ratings/reviews

Visit social networking sites

Read blogs

Contribute to online forums or discussion groups

Publish your own web pages

Comment on someone else's blog

Post to photo-sharing sites

View photo-sharing sites

Publish or maintain your own blog

Post ratings/reviews

Use RSS (really simple syndication) feeds

Listen to podcasts

Upload video/audio you created

Add labels to or \tag\ Web pages, online photos, etc.

Base: 1034 Dutch online adultsSource: Forrester’s European Technographics Benchmark, Q2 2008

18Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Percentage of consumers who use these technologies monthly or more often

Men are more interested, especially in video

50%

38%

30%

15%

13%

9%

8%

8%

7%

6%

5%

5%

4%

2%

34%

28%

35%

18%

9%

7%

8%

9%

7%

1%

3%

4%

1%

0%

17%9%

0% 10% 20% 30% 40% 50% 60%

Watch video from other users

Read customer ratings/reviews of product/services

Visit social networking sites

Contribute to online forums or discussion groups

Read blogs

Publish or update your own Web pages

View photo-sharing sites

Comment on someone else's blog

Post to photo-sharing sites

Publish, maintain or update a blog

Use RSS feeds

Post ratings/reviews of products/services

Upload video you created to a public Web site

Listen to podcasts

Add labels to or tag Web pages, online photos, etc.

Men

Women

Base: 1,034 Dutch online adultsSource: Forrester’s European Technographics Benchmark, Q2 2008

19Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Peer-generated video divides the generations most

0%10%20%30%40%50%60%70%80%90%

100%

16-24 25-34 35-44 45-54 55-64 65 and over

Watch video from other users Read customer ratings/reviews of product/servicesRead blogs Contribute to online forums or discussion groupsComment on someone else's blog Publish, maintain or update a blogVisit social networking sites

Age

Percentage of consumers who rarely use these technologies

Base: Dutch online adultsSource: Forrester’s European Technographics Benchmark, Q2 2008

20Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Creators

Critics

Collectors

Joiners

Spectators

InactivesConsumers participating in at least one of the activities at least monthly

Source: European Technographics® Benchmark Survey, Q2 2008

Social Technographics® shows consumer participationEuropean online

adults

15%

20%

7%

18%

50%

43%

21Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Social Technographics Profile of Dutch consumers

Base: Dutch adults online. Source: European Technographics® Benchmark Survey, Q2 2008

19%

20%

9%

61%

29%

39%

Creators

Critics

Collectors

Joiners

Spectators

Inactives

Index Online adults = 100

127

100

129

217

122

68

European Online adults

22Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Agenda

• What are the essentials of social media?

• How are Dutch consumers connecting?

• How do social technologies integrate with marketing?

• What are the opportunities and evolutions?

23Entire contents © 2008  Forrester Research, Inc. All rights reserved.

How not to create a social strategy

• Pick a technology

• Build an application

• Generate a lot of activity (or not)

• Ask “what are we trying to do, again?”

24Entire contents © 2008  Forrester Research, Inc. All rights reserved.

“P.O.S.T.”A strategic framework for tapping the groundswell

1. Profile: Understand the activities of your audience

2. Objectives: Decide what you want to accomplish

3. Strategy: Decide on how you want relationships with customers to change

4. Technology: Implement an application

25Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Define what you want to accomplish

Listening

Talking

Energizing

Supporting

Embracing

Learning from what your customers are saying

Two-way conversation, not just shouting

Helping your best customers to recruit others

Enabling your customers to support each other

Involving customers in your product development

26Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Listening

Learning from whatyour customers aresaying

27Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Listening…InterContinental runs a private community for research and exchange

28Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Talking

Two-way conversation,not just shouting

29Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Talking…to blender buyers

Users can also add the video to their

own sites

Over 4 M views

Blender sales are up 20%

Cost of the initial videos was $50

30Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Energizing

Helping your best customersto recruit others

31Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Energize…lingerie fans

Users put VS Pink badges on their own pages, where friends

see them

Their friends then go and visit the VSPink profile page, where

they can also download the badges

32Entire contents © 2008  Forrester Research, Inc. All rights reserved.

VSPink Has +300K Members And Thousands Of Comments

33Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Supporting

Enablingyour customersto supporteach other

34Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Supporting… ‘moms’

35Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Embracing

Involvingcustomersin yourproduct development

36Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Embracing…dog lovers

37Entire contents © 2008  Forrester Research, Inc. All rights reserved.

A conversation with customers

Del Monte: What does your dog eat for breakfast?

George: . . . she would definitely want bacon and eggs and she would want ketchup on her eggs. She loves ketchup!!!

Del Monte: Would you buy more treats if they had vitamins and minerals as ingredients?”

George: I would buy healthier treats over ones that didn’t have vitamins and minerals. . . . I try to look for amino acids and omega 3 and fish oils.

38Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Decide on your objective

• Listening – find out what your customers are really saying

• Speaking – connect with your customers in new ways

• Energizing – get your best customers to evangelize your products

• Supporting – help customers solve their own and each other’s problems

• Embracing – working with your community to make products better

39Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Decide on how you want relationships with customers – and between customers - to change

40Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Measure based on Objectives

• Each Objective has different metrics

» Listening >>> Insight and reduction of pains, increased customer retention

» Talking >>> Share of voice, more leads, more trial» Energizing >>> Trust or velocity, reduced cost of sale» Supporting >>> Reduced support costs, increased

customer satisfaction» Embracing >>> Products faster to market, better

adoption of new products, more brand advocates

41Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Agenda

• What are the essentials of social media?

• How are Dutch consumers connecting?

• How do social technologies integrate with marketing?

• What are the opportunities and evolutions?

42Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Influence will become highly valuable

Lifetime(or financial)

value

Socialvalue

Ambassadors

Influencers

Core buyers

Misers

+

+

--

43Entire contents © 2008  Forrester Research, Inc. All rights reserved.

What will be important for social networks

• Marketers will pay to reach and influence valuable

• Each person will have their own “personal CPM”*

• Social networks will compete to have the best experience for high-influence individuals

* From Marian Salzman, JWT

44Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Social Media is here to stay…

• It’s part of young consumer’s lives

» What they do might change, but the idea of social media sticks

• 5-10 years: Ubiquitous social networks

» Open technology

» Shared identities

» Information flow

» Advertising embraces social influence

45Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Summary

• Social strategies start with an understanding of your audience’s Social Technographics profile.

• Map out how relationships with your audience will change over time and implement technologies accordingly.

• Prepare your organization for greater levels of participation, engagement, and discourse.

46Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Theme

Create a coherent social strategy by focusing

on relationships – not technologies

47Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Mary Beth Kemp

mbkemp@forrester.com

+ 33 (0)1 47 58 93 22

www.forrester.com

Thank you