Sean Moffitt @SeanMoffitt

Ottawa, Ontario

June 2, 2010

Wikibrands - Reinventing Your

Business in a Customer-Controlled Marketplace

A Presentation to:

www.agentwildfire.com

SMB Ottawa

So What The Heck Do I Know?

Obstacle #1 �There are 45,000 social

media experts online right now

- Interview 50 top global experts

- Study of 100 of the most engaged

businesses/brands

- Part of a multimillion study with Don Tapscott

Instead, we studied the best�

Running - Nike PlusFinance- American Express

Hospitality �Starbucks

B-to-B - Intuit Automotive - Camp Jeep

Travel �Starwood Hotels

Tech � Dell ecommerce � eBay Startup - Freshbooks

We went cross industry for insight �

Obstacle #2 �If you have a profile on Facebook, you have an

opinion�

Just A Blonde Guy With a Cause

�Authenticity, Passion, Storytelling

- 2nd annual report

-Survey of 300 Canadian

marketers, media and executives

-30 questions on new media,

technology and customer culture

We built some verifiable proof

Obstacle #3 �The Cluetrain has left the station�organizations, businesses and brands don�t belong in social

media

Social Media = Smart Business

�The Sensitive New Age Social Media� Religion Type

�The Never in a Million YearsTraditionalist� Religion

Key Point - You Don�t Have to Choose Sides, Social Media is not a Religion

Caveat - There is a difference between �Being social�

Versus �Doing Social�

MASS MARKETING

DIRECT MARKETING

SOCIAL INFLUENCE MARKETING

A Culture Change is Required

Wikibrands: Culture

Let�s get started�

Wikinomics - 2007 Don Tapscott�How Mass Collaboration Changes Everything�

-Openness- Peering- Sharing

- Globalness

Wikibrands - 2010 Sean Moffitt and Mike Dover�How Customer Participation Changes Business�

- Online community and content- Customer engagement and brand experience

- Social influence, buzz and word of mouth- Peer to peer media and technology

Business and Brands still Matter�.

�but�

� Shifts in media� Shifts in brand drivers*� Shifts in customer needs� Shifts in technology� Shifts in demographics� Shifts in business models� Shifts in economy

7 Fundamental Changes are Occurring in How We Build Great Business

One highlight � what used to build brands and business is not what builds them now

Top 8 Value Desirability Drivers

- High Quality- Trustworthy- Good Value

- Reliable- Original- Simple

- Fun- Leader

Source: Y&R Brand Asset valuator

Top 8 Differentiation

Drivers

- Unique- Dynamic- Different

- Distinctive- Innovative- Visionary

- Daring- Progressive

23

�Something you Buy� �Something you Trust� �Something you Want�

�Something you Prefer� �Something you Love��Something you Participate In�

There�s a new currency on how to build business

Wikibrands � personal brands and social phenomena are great; but we want to know how

social media affects these people?

Why Now?- Business Use of Social Media-

Top Reasons �Why Now Social Media

#1 The Need for Authenticity and Transparency -42%

#2 The rise of social networks - 38%#3 Increasing role of wireless/mobile - 35%#4 Customers/people waning attention spans - 25%#5 Media fragmentation - 22%#6 Change in mass marketing effectiveness - 20%

Agent Wildfire -The Buzz Report, April 2010

½ Dozen Reasons Why This is Important?

#1 -Engaged brands are

winning.

Engaged Brand Value

+18%

Non-Engaged

Brand Value -6%

Interbrand 2010 Top Global Brand report

#2 � Social Media = Many Benefits

Brand Advocacy (Marketing)- Word of mouth- Referral/recommendation- Badging- Sales/traffic- Reduction in media budgets

Brand Perception (PR)- Awareness/exposure/SEO- Affinity- Empathy/respect- Lead industry conversation

Brand Support (Customer service)- Customer service- Education/ advice- Value-add experience- Lead industry conversation

Brand Serendipity (HR)- Stories/Inspiration- Corporate social responsibility- Galvanize employees- Traditional media interest

Brand Content (Media/Customer Experience)- Co-innovation/solutions- User-generated Creative- User-generated content- Reviews/ratings

Brand Insight (Research and Innovation)- Idea stimulus- Beta-testing- Market research/polling- Industry/competitive intelligence

Maker�s Mark Advocates

Molson in the Community

Doritos Content

Starbuck�s Insight

Whole Foods Support

Pepsi Serendipity

The Top Reasons Why Canadian Business Use

Social Media Now

Most Frequently Stated Objectives

#1 - Deliver buzz/awareness/publicity#2 � Participate in a Dialogue/Conversation#3 - Drive brand loyalty/affinity/lifetime value of customer#4 � Build better customer experiences#5 � Deliver web visitors/offline traffic#6 � Drive referrals, leads, members#7 � Develop/enhance grassroots credibility

#3 � It�s Where Your Audience Lives

Online Canadians are spending 18 hours online each week (higher than TV)

We�re spending 82% more time on social networks than last year

Scale � 14,252,000 CanadiansEngagement � ½ log on everydayAge - 37% are over 35 years oldAssociations - 500,000 pages/5.3 billion fansPurchasers - 53% femaleConnected - Average 130 friends

Scale � 3,000,000 Canadians (est.)Followers � 190 followers each (after 2 yrs)Influence - 0.7% of audience are followed

by 1000+ usersExperts -10% of audience is posting 90%

of tweets

#4 � It will Keep Growing

⌧ Canadian Marketers plan on spending more/less in 2010:

MoreLessNewspaper 5% 32%Radio 5% 33%TV 4% 37%Magazines 3% 39%

Ching Ching $$$There is a solid industry business case

79% of firms will be increasing

investment in Web 2.0 technologies;

only 6% will decrease.

Source: Gartner, Sept 2009

Types of New Media Future Growth

#5 � We�re Not Very Good at It

Business and marketing are lagging their customers

Question: How familiar are you with the tools of social media?

71% of marketers are less/only

equally familiar with the use of social media tools than their customers

#6 � Your Customers Want It

85% of people want companies engaging with their customers in social media

56% of people feel a stronger connection with those companies they interact with in social media

The Recipe for Success?

Technology? Design? Funding?

The Biggest Social Media Sins- Listening, Content and Focus

The FLIRT Model � A Recipe for Community Success

FOCUS� �Why are we doing this/what are we doing?�

FOCUS� Marry All Parties� Interests/Capabilities

FOCUS� Two Big Axioms

Social/member needs > Company needs

Focus > Technology

Nike + -Members/Customers Values/Lifestyle/Desires

LANGUAGE & OUTREACH�do I like this/can I identify with this?�

�It doesn�t matter what you say, if I don�t like the way you�re saying it�

James Cherkoff, Collaborate Marketing

Outreach - The Community Tentacles

CommunityPortal

Content Engine

Blog/RSS

SocialTargeted

Findability

Visual

Multimedia

Updates

Interesting-ness

Conversation

Collaboration

Offline

Direct

Grassroots

Outreach Badging

Aggregation

Visual

Outreach � Not Everyone is Equal

INCENTIVES & MOTIVATIONS�what�s in it for me?�

� Better life/supporting cause� Challenge/competition� Creativity� Fun & enjoyment� Group effort/achievement� Learning� Satisfying curiosity� Wanting to make a better product� Meet people of similar interests

25 Community Incentives - Intrinsic

�How do I identify with, help the community�

� Ability to join VIP circle� Access to exclusive channels� Access to exclusive resources� Chance for wider Fame� Recognition (peer & company)� Reputation building� Recognition by company� Reputation by peers

25 Community Incentives - Extrinsic

�How do I appear to others?�

� Customer service� Information/advice� 3rd party incentives� Customized/personalized

treatment� Cash rewards� Non-monetary rewards� Discounts� Invitation to Events� Points accumulation

25 Community Incentives - Explicit

�What is my direct, tangible reward?�

Souplantation

45,000 Facebook fans, 12,000 twitterers

RULES�what can/can�t I do here?�

� Experience Facilitation

� Legal & Ethical Concerns

� Employee Policies

� Ownership

Rules

Coca Cola�s 10 Social Media Rules1) Be Certified in the Social Media Certification Program.2) Follow our Code of Business Conduct and all other Company policies.3) Be mindful that you are representing the Company.4) Fully disclose your affiliation with the Company.5) Keep records.6) When in doubt, do not post.7) Give credit where credit is due and don�t violate others� rights.8) Be responsible to your work.9) Remember that your local posts can have global significance.10) Know that the Internet is permanent.

TOOLS & PLATFORM�how and where does it work?�

Platform Choice - Criteria

- Type of Software/Language

- Cost & Time

- Customization

- Scalability & Usability

- Security & Ownership

Platform Choices

COMMUNITY MANAGEMENT�who will lead the conversation?�

How to Avoid This�

Community/Brand Evangelists - Tasks

The Hero Community Manager � Nature Valley

The Collective Effort - Kashi

The Outsourced Effort � Philadelphia Cream Cheese

LIFE STAGE OF THE COMMUNITY�when do we need to adapt?�

The Life Stage of Social Media/Community

Fresh produced contentHighlight contribution

Incentives pitchedNetworked

Seeded audience

Milestone achievementUser generated contentIncentives materialized

Mass supportedExpected cycle of activity

ExpansionBroadened focus

Company culture changeSelf-governance

Tiered membership

METRICS, MEASUREMENT, INSIGHTS & ROI

�what do we measure and look for?�

- Traffic Pattern & Statistics - 75%

- Community Member Engagement - 74%

- Unique Number of Visitors - 72% - New Member Registration - 70%

- Member Satisfaction - 59%- Provide Feedback/Ideation for R&D - 49%- Number of Referrals by Members - 33%- Transition Lurkers into Active Members - 29%

- Impact of community on revenue - 27%- Mentions of Organization or Brand on other Community Sites - 27%

The Most Popular Community Metrics

CULTURE & ORGANIZATIONALCHANGE

�how will we be changed?�

Why aren�t we doing this? And succeeding?

The biggest obstacles that continue to exist in implementing Wikibrands/social media in

your company/clients?

1. Lack of Budgets 32% 2. Inability for company culture to accept 26%3. Technical skills required to implement 24%4. Inability to measure 23%5. Fear of loss of control 21%

Source: Agent Wildfire Buzz Report 2009/10

Implementation Issue � Lip Service > Action

-Business and brands do belong

- 6 Potential benefits/reasons why

- Create a Wikibrand culture

- Listen

- Remember to FLIRT

- Resource for sustainability � MILC

Key takeaways

-McGraw-Hill (Dec, 2010)

@wikibrandsFacebook group

Blog, Wiki, Tour and Awards to

follow

Let�s Start Your Next Brand Conversation�Inquire: spreadtheword (at) agentwildfire.com

Phone: 416-255-4500

URL: www.AgentWildfire.com

Book: @wikibrands

Blogs: http://BuzzCanuck.typepad.com/

http://www.spreadslikewildfire.com/