SOCIAL NETWORK SITES

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SOCIAL NETWORK SITES CUSTOMER EMPOWERMENT
Jeff McCarthy, Partner 07900 808230 jeff_at_jeffmccar
thy.co.uk
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OVERVIEW

• Impact of SNS on Relationship Marketing
• Turning Threat into Opportunity
• Dealing with re-tribalized online communities

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SOCIAL NETWORKS

• A social network service focuses on building
  online communities of people who share interests
  and/or activities, or who are interested in
  exploring the interests and activities of others.
  Most social network services are web based and
  provide a variety of ways for users to interact,
  such as e-mail and instant messaging services.
  (Wikipedia, 2008)
• web-based services that allow individuals to (1)
  construct a public or semi-public profile within
  a bounded system, (2) articulate a list of other
  users with whom they share a connection, and (3)
  view and traverse their list of connections and
  those made by others within the
  system. (Boyd, D., Ellison N., 2008)
• Social networking refers to systems that allow
  members of a specific site to learn about other
  members skills, talents, knowledge or
  preferences. (The McKinsey Quarterly,
  2007)

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THE BIG DILEMNA...



Commercial space
Social / Private space
Customer engagement
Marketer persuasion
Customer empowerment
Push Push Pull
Push Pull Push
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COMMUNITY GROWTH
Source http//www.online-publishers.org/
http//www.online-publishers.org/page.php/prmID/4
21 (accessed 300309)
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COMMUNITY GROWTH
Source http//www.online-publishers.org/
http//www.online-publishers.org/page.php/prmID/4
21 (accessed 300309)
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SPORT AS AN EXAMPLE...
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THE NEED TO CONTROL?
Figure 7. Warning from a User of the Forum
Reminder of Legal Implications
Source McLean Wainwright, 2009
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BLOGS

• 2008 number of blogs doubled to over 71 million
  in just three months.
• opinion leaders, opinion formers and valuable
  information about world events, business and
  lifestyle could be found.
• Ordinary people now engaged in journalist
  activity

Source KMP, www.kmp.co.uk 2009
Image sourceSunday Times, http//technology.time
sonline.co.uk/tol/news/tech_and_web/the_web/articl
e6121761.ece (accessed 22.04.09)
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Have A Complaint?

• Forget the sternly worded complaint letter,
  thats so 20th century. These days, companies can
  pay a much bigger price for their customer
  service slip-ups. Thanks to the proliferation of
  blogs and online video sites like YouTube, a
  global audience is at the fingertips of every
  ticked-off consumer. Companies continue to learn
  the hard way that poor-customer-service
  complaints can make their way from niche Web
  sites to network television before theres time
  to say full refund.
• Business Week Case in point Dell Hell
  blog

• Ryanair freaks out...

Sourceeconsultancy http//econsultancy.com/blog/
3346-ryanair-freaks-out-at-blogger-disses-wordpres
s-shoots-foot (accessed 24.02.09)
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THE MISSING LINK

• Multi-nodal dialogue

Source Cova and Cova, 2002 601. (adapted from
Desjeux, 1996)
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Online Communities of Consumption

• Types of member

Source Kozinets, 1999 255
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Online Communities of Consumption

• interaction modes

Source Kozinets, 1999 255
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Customer Community Leadership

• Community Creation
• Leading but not owning the community
• A route to market leadership
• Mutuality
• Multi-level dialogue
• Customer empowerment at its core

Source Rowley et al, 2007
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ETHICAL ISSUES

• Professional lurking...
• Participant observation
• Known / unknown?
• Active participation?
• Customer consent data protection issues

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Advertising on Social Media?

• Opt in...
• Facebook applications exponential growth!

Source KMP, www.kmp.co.uk 2009
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MONETIZATION
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MAKING SOCIAL MEDIA MATTER

• Make meaning, not buzz
• Listening leads to innovation discourse is
  conversation
• Dialogue is more interesting than your
  products/services
• Nothing to say is why people dont talk
• Measure involvement vs. awareness
• Is your organisation brave enough?

Source http//www.beelinelabs.com/files/1020Wa
ys20to20Make20Social20Media20Matter20to20Sk
eptical20CEOs.pdf accessed Feb 2009
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QUESTIONS PLEASE
IDM Stand E3025
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TAKE HOME

• Useful Reading
• Journal of Direct, Data and Digital Marketing
  Practice Special Issue Web 2.0, Vol.9, No.3.
  January-March 2008