Social Business, Culture and Branding
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This document discusses how business is becoming increasingly social and human-centric. It argues that to be successful in today's world, businesses need to think of themselves as "Hyper-Social Organizations" and understand human behaviors and social dynamics. Specifically, businesses should: (1) break down barriers between themselves and external networks, (2) avoid creating new barriers, (3) break down internal silos, (4) fix issues across the entire customer experience, and (5) establish trust as the new currency rather than prioritizing the company. Understanding human social behaviors is more important than new technologies.
Social Business, Culture and Branding
- 1. SMBME 24 - Now What?Back to Being Human,Social Culture, Caring & Branding July 31, 2011@RobertCollins
- 2. …once againBusiness is becoming social
- 3. In the beginning – All business was socialSatisfaction results in positive or negative word of mouth which makes a difference3
- 4. Then business started scaling…but the social could not scale and made no difference anymore – so it disappeared from business4
- 5. And companies started to develop real bad habitsInterrupting people, targeting people, segmenting people – it felt like going to war with customers (& employees)5
- 6. But then came the Internet and Social MediaBlogs, wiki’s, discussion boards, tags, social networks – a massive platform of participation6
- 7. And because humans are hardwired to be socialThe social reentered business and commerce with a vengeance – employees, customers could once again behave the way they’re hardwired to behave: humanly, tribally.7
- 8. So to understand how to do business in a 2.0 world…You are better off understanding Human 1.0 – not as individuals, but as hyper-social creaturesYou do not need to understand the Web 2.0 technologies
- 9. The SAP Developer Network9Stats:1.4 M users400K+ business expertsContent-richOriginal Incentive System:Point system leading to personal rewardsThe Results:Bullying behavior in the communityNew Incentive System:Point system leading to donation to good causeThe Results:No more bullying in the communityWeb 2.0 or Human 1.0?
- 10. A look at some NIH + Duke ResearchExperiment #1:People play Atari-style video game which allows them to earn or lose money for themselvesMRI scans shows that the pleasure side of the brain lights up – that same part that gets addicted to drugsExperiment #2:People play Atari-style video game which allows them to earn or lose money for a charityMRI scans shows that the altruism side of the brain lights up – that same part that is responsible for social interactions
- 11. Let’s get a level deeper on the Human 1.0…
- 12. Why are social beings helping one another?Reciprocity = a Reflex
- 13. Why are people going out of their way to punish others?Humans have an innate sense of fairness = keeps reciprocal society working
- 14. How do we make decisions?Market FrameworkSocial Framework
- 15. Why do people like to look like others?Because humans have mirror neurons
- 16. Why do we lie to market researchers?Because we lie to ourselves and others, and we tell people what we think they want to hear
- 17. Why is status so important (and why do we hoard it)?Because it used to get us a better mate – proceed with caution: status works both ways!
- 18. We are a herding species – self herding even
- 19. What are the important Human 1.0 Hyper-Social TraitsReciprocity – it’s a reflex that allows us to be the only super-social species without all being brothers and sistersThe role of fairness in assessing situationsSocial framework of evaluating things vs. market frameworkThe importance of looking cool and mimicking othersHerding and self-herding(early research shows that social behavior does not change when it scales)So to the extent that we can basically be human with what we know, and share it as freely as we possibly can, I think we’ll go a long way towards gaining a higher or stronger level of trust with the consumers.Barry Judge, CMO Best Buyhttp://www.cmotwo.com
- 20. How they think differently about their businessSuccessful Hyper-Social OrganizationsInformed by Tribalization of Business Study:2008-2010 – 1,000+ companies took the survey
- 21. Hyper-Social companies think differentlyThink tribe – not market segmentWe need to find groups of people who have something in common based on their behavior, not their market characteristicsThink knowledge network – not information channelThe most important conversations in communities happen in networks of people, not between your organization and the community.Think human-centricity – not company-centricityThe human has to be at the center of everything you do, not the organizationThink emergent messiness – not hierarchical fixed processesPeople will want to see responses to their suggestions, even if it does not fit your community goals – FAST“…affinity groups will quickly become the dominant social force in the emerging world economy, changing how we think about markets, fads, social movements, and, ultimately, power” - Tom Hayes, Jump Point: How Network Culture is Revolutionizing Business – 2008
- 22. 22
- 23. 23Today’s buying cycle: a social-powered continuous loop processMany more sources of informationCan still become part of consideration setTribes & NetworksBased on source: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373
- 24. Mapping and Measuring the Value GeneratedSocial MediaRevenueGrowthIncreasecurrentcustomervolumeIncrease volume withnewcustomersIncrease Tenure of Customer RelationshipsOfferInnovativeProducts& ServicesIncrease Breadth of Customer RelationshipsAcquireNewCustomersProduct & ServiceofferingBarriers to switchingCross-Sell /Up-SellBrandawarenessChurnreductionCustomerreach Measure Social is the ways you manage and measure other Business KPIs.24
- 25. Any Questions? Robert CollinsPartner, Human 1.0e. [email protected]. @RobertColllinsOur new book: The Hyper-Social Organizationhttp://www.hypersocialorg.com25
- 28. …In a Hyper-Social World9 ways to think differently about your business
- 29. 1) Bring down that wall
- 30. Do like IBM – get rid of the firewall while protecting IPGreen EnthusiastsCIO’sBusiness model tweakPRCustomer supportIPIPIPProduct Idea…increase knowledge flows…and competitiveness
- 31. 2) Don’t build new walls
- 32. Don’t put a wall between company and people
- 33. Don’t put a wall between company and people
- 34. A New Artisan Workforce - Embrace what people want - …and give them access…it will increase passion & productivity!
- 35. …and get people commitment3) Tear down silos
- 36. Business objectives of communities
- 38. # of people managing community
- 39. Establish Center for ExcellenceBudgetsKPI’s
- 40. …between all the organization’s touch points4) Fix the great divide
- 41. Your brand is only as good as the last transactionFix the whole organization’s user interface with the donor/recipient:Fund raisingSalesCustomer ServicesLoyalty ProgramsLead GenerationMarketingService Deliveryetc…Tap into the passion of employees and volunteers to help one another across boundaries
- 42. …or don’t let history repeat itself5) Don’t build what you built before
- 43. Move with caution – it’s not easy!We need Social graphsWe need Social CRM
- 44. 44The funnel is deadSource: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373
- 45. 6) Make Sure all CxO’s are Best Friends
- 46. Don’t just think technology7) Think Culture
- 47. “We find ourselves in the oddest position – which is to tell the business units that this is not a technology issue but a people and process issue.” – CIO at a major pharmaceutical companyBe Human
- 48. Culture – perhaps the most important Human 1.0 CharacteristicHumans developed culture to deal with changeWe now use culture to adapt to changes that we create ourselvesHarness culture to create lasting competitive advantagesWhere we used to deploy Technologies to impact social behavior, now we need to deploy Technologies to support social behaviorsSenior IT Strategy Executive with a major system integrator
- 49. …not your Company’s Advocate8) Be the Advocate for your Customers & Their Needs
- 50. How can you expect anyone to trust you if you cannot trust your employees & volunteers?9) Establish trust as the New Currency
Editor's Notes
- #37: Top 4 have not changed – 5 and 6 swapped – Reduce customer acquisition cost almost doubledImprove knowledge management was not asked in earlier years
- #38: Big disconnects here between key processes supported and who is actually running the community. There’s a lot of learning about tribes that needs to take place during these community encounters, and critical functions are being excluded from the learning.
- #39: 2/3 of respondents report having 1 or fewer full-time people managing their communities!