Communities.cisco.com Reaps Rewards of Sound Strategy

Success in the B2B online community space seems to come from just the opposite of what many companies actually put into it: planning , teamwork and transparency. That’s right. Some companies we talk to or observe online still aren’t grasping the concept that communities need a dedicated team and strategy to thrive.

Communities.cisco.com, on the other hand, gets it. A platform that contains more than 50 communities for Cisco’s partners, customers and employees, communities.cisco.com, also known as Cisco Communities, has almost doubled its membership and has seen a 50% increase in overall traffic in the last year. Additionally, Cisco continues to see measurable savings and efficiencies as a result of the program. Allison Johnson, Social Media and Community Manager at Cisco, who has worked with Cisco for 5 years and communities.cisco.com for the past year and a half, discusses the ingredients that make up Cisco’s recipe for success and the challenges of managing a successful global community platform.

Q: What is your role at communities.cisco.com?

A:  At Cisco I manage the communities.cisco.com platform in addition to driving social media and digital marketing across the company.

When working on the communities platform I oversee the entire program at a macro level. My team and I work on everything from identifying technical problems and scheduling the bug fixes as well as onboarding new teams and setting up the overall program structure. We work closely with the community managers to help them reach their individual goals as well as goals we have for the program.

Sometimes we joke around that in my role I’m essentially a community manager of community managers. Every day is different and I never know what hat or situation I’ll find myself in. A main focus for us is our long-term strategy. People forget that communities are a long-term commitment and it’s essential to align your long-term plan with corporate strategies and initiatives. At the end of the day, the most important thing I can do is give the community managers the tools they need to be successful.

Q: What’s your vision for communities.cisco.com and its business purpose?

A: We set both short-term and long-terms goals for the program. Our 5-year vision is to sustain and create a global community program that deepens relationships with partners, customers and employees. Getting there involves building out some of our core areas to make them more engaging and relevant. We’re in the process of a study to learn more about behaviors. Currently we added a social share functionality to the platform to encourage conversations that are happening in the social web to interact and share with our communities.

Q: Tell us about some of the success you’ve seen as you’ve worked toward that vision.

A: This past year we saw tremendous growth in registrations (more than 50% to more than 110,000). Overall that is one of our largest success metrics. Monthly, we capture metrics and do analysis on our platform. This past year we’ve seen a lot of growth. Ways we hope to continue this growth are building out case studies and best practice sharing modules from these growth spikes.

A more specific example can be seen in our Partner Community. This private space was built for our Cisco partners and we have seen it contribute to reducing travel and increasing the productivity of Cisco experts. These experts travel most of the time and have little time for face-to face interactions with our partners. Now these experts broadcast training sessions for partners on communities, which achieves the goal of deepening relationships with our partners.

The common theme here is that the Web 2.0 technology that communities use can positively impact the business by encouraging innovation, reducing travel costs, opening communication and open up resources. Another way we’re positively impacting the business is that we are capturing and sharing frequently asked questions and conversations within the community. We have a wider reach and we’re able to answer more than one person’s question online. If someone else has the same question it’s all right there with a paper trail.  Communities.cisco.com have proven to be a very transparent, authentic way to communicate so more than one person is able to benefit.

Q: Those are impressive results. What are some recent milestones you’ve reached in terms of overall traffic and membership?

A: Our membership a year ago was at about 74K. We are now at about 113K. In 2011, we saw more than a  50% increase in overall membership and traffic. And, we’re also happy about the response time we’re seeing. Support questions usually get at least one or multiple responses within 24 hours.

Q: What are a few best practices you can outline that have helped achieve these results?

A: Open and frequent communications are a must when you are working with a group this large. We have an open bi-weekly Community Manager meeting to serve as a communication platform as well as a best practice share and overall time to update one another on the various projects we have in the works. We set the agenda in advance and we have an area in our own Community Managers Community, completely dedicated to presentations delivered and communications relayed in these meetings. We encourage CMs to bring up topics they want to cover as well as set the agenda for future facing meetings. Not limiting ourselves, we also bring in our external networks.  I think it’s really valuable that we’re always willing to learn from internal and experts about how to best manage the platform.

Additionally, every community has an established and committed community manager. You must always have one point of contact for each space. This way that person can drive communications about the community and content within their space. It is also imperative that they manage the editorial calendar. This is another best practice.

Overall the CM will coordinate with campaigns in different parts of the organization to drive awareness. Some may also work with hired moderators to make sure questions are escalated to appropriate subject matter experts. They should be focused on the communities health.

Q: What is the biggest challenge ahead of you?

A: I’d say it is taking the platform to next level. As I mentioned before we recently added social share into the platform, but what else is out there? It will be a challenge making communities an easy go-to Web 2.0 tool. There are so many different ways we communicate day-to-day whether it’s Facebook, Twitter, e-mail or text messaging. It’s hard to make sure there’s one central place to go to. From a platform perspective, technology and communities will continue to evolve and it’s my job to monitor this space and help drive what will make communities a better platform and program, without losing sight of our goals.

 - Lauren Bittner, the author of this blog, is Senior Director of Client Services at Impact Interactions and has 10 years of experience with helping companies align their online community management efforts with their business goals.

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Upcoming Event – Social Media Best Practices for B2B Communicators, San Jose CA, May 4-5 2011

Impact Interactions’ president Mike Rowland to present “Ten Years in the B2B Trenches: A Practioner’s Guide to Maximizing the Return on Your Community” at Social Media Best Practices for B2B Communicators Conference, May 4, 2011 in San Jose, CA.

How many online communities really succeed at meeting their objectives? Does yours? Online communities are proven tools for expanding the conversation with your customers, prospects, and fans. Whether you are looking to reduce your support costs, generate leads, nurture customer relationships, or build awareness for your products, online communities require a clear purpose and processes to deliver results. Managed properly, online communities can deliver a stunning ROI that will impress even the most jaded executive. Drawing upon ten years of experience and examples from Cisco, NetApp, SAP, Ace Hardware, Intel, and others, Mike Rowland will discuss many of the best practices and issues that impact online community success (including how to use social media with your community). This three hour session will help attendees to understand the best practices for building, managing, and measuring a focused B2B online community. The last hour of the session will be dedicated to answering your questions utilizing a panel of top B2B community management executives from Impact Interactions’ client teams. To learn more about this great B2B focused event, please click here.

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Social Media Metrics – Driving to Value

We’re members of the Online Community Research Network and recently received the latest report on Community Metrics derived from a survey of the membership. While we’re happy to see a lot of progress in the responses about tying measurement to business objectives, we continue to see confusion about measuring value. Over the past ten years, we’ve developed a methodology that can help online community and social media managers structure their reporting in order to focus on the value their efforts produce in terms of business objectives.

Looking  at the report’s question #12 (Were your community’s metrics created in support of your organization’s broader business goals or were they created independent of a corporate business?), the following responses were given:

• 47% Created to support existing business goals
• 31% Created independently but helping refine existing business goals
• 22% Neither of the above (summarized from three additional responses)

Looking at what metrics the respondents use to support or refine existing business goals provides insight into the confusion over what constitutes value in online community and social media efforts.

Question 19 asked “What are the three most important community key performance indicators (KPIs) in the reports you send to upper level management?” The answers are a startling contrast to the answers to Question 12:

1. Number of Page Views or Clicks
2. Number of Site Visits
3. Number of Unique Visits

Why are these responses startling? Because the metrics are traffic metrics not value metrics. These are base level metrics not KPI worthy metrics for upper level managers. (In fact, three of the top five metrics measured as detailed in an earlier question were traffic metrics too: Unique Visitors, Page Views, and Visitors. Only two were not: Registrations and Posts.)

What these two questions’ responses demonstrate is that the respondents are still struggling with determining value from their community work that truly builds into measurable business objectives.

When asked about ROI, 71% of respondents confused engagement and traffic metrics with value. Only 29% correctly identified a tangible value metric to use in measuring ROI.

To provide a little clarity in reporting metrics, let’s look at how Impact Interactions’ reporting methodology can help. First, our categories are structured as follows:

• Traffic - The basic building blocks that measure “How Many?”
• Behavior – The second level of metrics measuring conversion and engagement
• Value – The highest level of community metric where the activity has an economic or dollar value associated with it (This is what management really cares about!)

Some of the actual metrics that we use for clients are as follows:

1. Traffic - Unique Visits, Unique Visitors, Page Views, etc.
2. Behavior- Page Views/Unique Visit, Page Views/Unique Visitor, Active Members/Unique Visitors, New Registrations/New Unique Visitors, Total Registrations/Total Unique Visitors, Downloads/Registered Member, Content Added/Registered Member, Content Added/Unique Visitor, Downloads/Unique Visits, Full profiles completed, Referrals from Twitter/Facebook/YouTube, etc.
3. Value – Number of successful customer support resolutions in the community, Total Contact Sales Inquiries/ Total Unique Visitors (or Registered Members), Total Leads Qualified/Generated, Product Referrals, Positive Product Reviews as a % of Total Product Reviews, Direct Revenue Generated from Community Activities, Length of Sales Cycle for community member vs non-member, Average Purchase Size/Frequency for community member vs non-member, etc.

Take a look at those metrics again. The first two categories of Traffic and Behavior can usually be obtained using the platform’s tools (like Jive, Telligent, or Lithium) or through your web analytics’ tools (like Google Analytics, Omniture, or WebTrends). The Value metrics take a little more work. In fact, to really be able to perform a realistic ROI calculation, you will need to get help from outside the community/social media area of your organization.

To derive an ROI related to marketing objectives from a community, you’ll need to access your CRM system. For a support ROI, you’ll need to know the cost per interaction in complementary/competitive areas such as a call center. The standard tools won’t get you there, you’ll have to build relationships within your organization in order to really build a solid analysis that ties back to business objectives. An ROI model built on traffic will contain far too many holes to be useful.

We’ve been helping our clients with these issues and have developed a strong set of best practices that can help you succeed in your reporting. Please feel free to share your insights into this issue and ask questions about reporting and analyzing your community and social media efforts. We’re happy to answer them and help reduce the confusion.

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Community Myth Busting – OCUE2009 Presentation Notes

This entry is a summary of a presentation we made at last week’s Online Community Unconference East meeting in NY. The session was attended by roughly 20-25 members and lead by our president, Mike Rowland.

The idea of the session was to drive discussions regarding many of the common ideas around community that have been published/promoted/blogged about as if they were absolutes rather than the experiences of a few. The topics covered the following:

1. 90-9-1 Rule- Comes from concept of Participation by Jakob Nielson. Worked pretty well in early 1990s when published. Major impacts on this idea have been adoption of online communities since 1990, broadband adoption, social networks, etc. We find that the numbers don’t hold and should not be relied upon in selling a project to management or in goal setting due to the wide variances we’ve measured with over 40 communities over the past eight years.
   - At Participate.com, we modified the rule to use as an outreach rule of thumb.
   - At Impact Interactions, our clients have ratios all over the map
   - It’s more important to measure the quality of interactions as it relates to your objectives instead of trying to work towards a specific ratio
2. Self-Policing Communities – Using volunteers to moderate and report violations is a hot trend for organizations to buy into right now. But it’s been that way since at least 2000 when we spoke of hyper-affiliates and enthusiasts. Our experience has shown that most community members cannot be relied upon to keep the community moving forward.
   - Volunteers will catch some violations, but mostly report content that they don’t agree with. This forces community team to review content twice or more which is inefficient
   - Volunteers are good at defensive work (spam, porn, etc.) but do not align with your organization’s objectives in most cases and won’t faciliate most B2C communities (B2B support communities, they usually will keep the conversations moving forward towards a resolution.)
   - Data in our presentation that we’ve been tracking each year for clients shows that members generally report about 20-30% of all violations in any given month. You still need moderation…
   - Our surveys of multiple community members (both B2B and B2C) over time shows that members don’t want to be classified as a tattle tail, nor do they believe it is their responsibility to keep the community free of junk, nor do they want to handle being attacked for removing or editing members’ content for violations.
3. Personas – There are strong feelings around this topic. The term authenticity comes up quite a bit when discussing personas when what is really meant is transparency.
   Great conversations on this one, with no conclusion reached about using personas or not.
   - Most personas get blown by members because the host creating the persona doesn’t think through the process and character, misuse the persona to cheerlead the organization and its products, is so unbelievable (master of health issues, political issues, computer technology, astrology, etc.), or is used to sell in the community. All of these are wrong and should be avoided.
   - Where personas work well is very, very limited. In new communities, personas can help seed conversational content and help demonstrate norms. In a flame war, they can help diffuse the situation (especially in the case of unjust attacks). Over time, as the community grows, the role of the persona should diminish.
4. Volunteers/Hyper-Affiliates as Good Guys – Beware the myth that your top people will always love and support your community.
   - The more volunteers/hyper-affiliates you have is not always a good metric
   - They don’t always follow the rules and have no objectivity
   - When a volunteer or hyper-affiliate turns against you, the result is a much larger confrontation than you might think.
   - Once enabled, it is very difficult to make changes to your site/community without a large time commitment to deal with the criticism of your volunteer network.
   - Letting volunteers and hyper-affiliates run the community demonstrates favoritism on the part of the host organization in the eyes of many non-recognized members. It is a double edged sword which if not carefully managed can have very negative consequences on your community’s conversion and engagement ratios.
5. Community ROI cannot be measured – Everyone is familiar with the cost avoidance argument to measure ROI. But after that, the conversation usually stops because the thought is that it is too hard to show the economic value of the community.
   - Don’t confuse value with ROI… they are not the same!
   - You can measure the economic value generated by your community using multiple data sources and methods. We’ve measured the online community ROI for sales (influence on purchase & intent), Marketing (awareness and loyalty), lead generation (development and qualify leads faster), and e-learning (higher achievement and registrations). They all require certain data that doesn’t come just from the community’s metrics.

We’ve uploaded the presentation as a pdf on our web site in our Social Media Resource Center.

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Why Does Everyone Believe Community ROI Is So Hard To Measure?

Just finished reading Jeremiah Owyang’s blog on ROI for online communities and social media. The entry is here. Jeremiah’s suggestions are accurate and some of the comments from our colleagues are really helpful. Here is our commentary which we’ve also posted on Jeremiah’s blog:

What I find interesting about this topic is the general disagreement of the relevance of ROI in the discussions of community and social media experts. We’ve attended events, webinars, and industry meetings, where people were unclear or downplayed the importance of this measure for social media and communities. Others in the Social Media space blog frequently that ROI is either tough to do or not relevant.

At Impact Interactions, we believe that ROI is a crucial element of the community building and management process. You must start building your framework before the community even launches, then refine it over time. But you cannot use just the metrics from your community, you must align them with additional data from within the organization (CRM records for B2B for example).

For B2B support clients, we measure technical questions answered by members as a cost avoidance measure to demonstrate the scalability of the community versus call center costs. We supplement it with survey data on customer satisfaction, purchase influence, and information utility. It all adds up to a large ROI.

For a marketing focused B2B community, we built a framework that demonstrated the influence that the community had in influencing sales of multi-million dollar contracts. We mined the transactional data and compared it with the CRM records to develop a pattern of influence on sales velocity, lead generation, and sales.

For a B2C automotive parts company, we compared sales transactions from the companies e-commerce database with community transactions to find the ROI for the community. It also reinforced the powerful notion that community members were buying more frequently than non-community members and that each purchase transaction was larger than those of non-community members.

For a B2C subscription based service, at Participate.com we demonstrated that community members churned at a rate 50% lower than non-community members, resulting in millions of dollars of revenue and profits.

Each of these clients had an ROI on their community of over 100% once their communities scaled.

It is not hard to develop the ROI framework, but it does take time and relationships within the organization to get the appropriate data. If you are a community manager, you need to build a network outside of the community area in your organization in order to align the community’s analytics with your organization’s focus and goals. Only then will you be able to tap into CRM or e-commerce databases to validate your framework.

We have some basics on B2B ROI in presentations available for free in our Social Media Resource Center on our website. Please feel free to visit and download the presentations. In our introductory deck on Impact Interactions, we have quotes from Cisco, Mercury Interactive, and ATT on their ROI from their online community efforts. Here is the link: http://www.impactinteractions.com/social-media-resource-center.html

What Jeremiah has posted is absolutely spot on. But is up to you as a community manager to act. In this environment, you cannot afford to have your community (and job) viewed as a soft application that doesn’t produce tangible, measurable results. If you’d like to learn more, please contact us.

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Beware the 90%-9%-1% Myth of Community Participation

Over the past year or two, it has been very fashionable for social media consultants to push the 90%-9%-1% community participation breakdown as the benchmark for all communities to reach or surpass. We’ve seen this statement be presented at the Community2.0 conferences, Forum One’s community conferences, in blogs, and now in a new site 90-9-1.com. While we do not doubt the sincerity of our competition in trying to develop a benchmark that is easy to remember and use, we do have an issue with this one.

Let’s start with the generalization across all communities and social media. Do active blogs and wikis really have 1% superusers and 9% active users who are adding content? I doubt it. Take out the company sponsor/employee who is employed to maintain the blog or wiki and the numbers drop in a big way. Most of the blogs we’ve seen metrics on in the B2B space have a ratio closer to 99-.9-.1. That’s a lot less than the ‘benchmark’ being touted as the industry standard. Go to any of the major blogs whose audiences are the high users of social media like AllThingsD or TechCrunch to see how low these ratios actually are. I don’t have the metrics, but a casual glance reveals that even at TechCrunch, the ratio is closer to the 99-.9-.1 than 90-9-1.

What about online communities? There again, the ratios are dependent upon the purpose of the community. With most community consultants failing to distinguish between a B2B and a B2C community, most advice provided is based upon B2C communities. But that is a major mistake. B2B communities are very different than B2C in terms of function, objectives, members, and participation. In our experience managing and measuring many B2B communities, the participation results are all over the map. One client offers an open B2B technology community with a ratio of 70-25-5. A previous client offers a closed B2B support community that achieved a ratio of 60-30-10. Another B2B client had a ratio of 98-1.9-.1.

Even the B2C communities we’ve managed have a different ratio based upon their targeted audience. AARP’s online community (that we are managing) currently has a ratio closer to 99.9-.07-.03. Using the myth of 90-9-1, this community would be considered a failure. But with a membership of over 800,000 new members in the past year and the demonstrated success in meeting the organization’s online goals, it is far from a failure.

Why is there a difference between what we are seeing and the myth of 90-9-1? Our experience has proven to us that there is no magic number to reach for when building and managing your community. Rather, the results are dependent upon several factors:

1. What are the demographics of your audience? Older audiences read more, participate less (with the exception of political communities and blogs). Male dominated audiences tend to participate at higher rates than female dominated audiences with the caveat that men usually try to dominate the participation in mixed audiences. Audiences who are more comfortable with technology will usually have higher participation rates than non-technology audiences.
2. What is the focus of your community? Support communities have much higher participation rates than any other type of community we’ve measured. General entertainment communities without a purpose usually spike, but then show declines in participation as they age (usually due to dominant members who use the community as their bully pulpit).
3. Are you B2B focused or B2C focused? B2B communities should have higher participation levels because members come to find information and build relationships with the company offering the community. If they find what they want, they return. A well run, facilitated B2B community will bring members back again and again.
4. What level of outreach and marketing are you performing? Unless your community becomes the next viral success, your participation rates are directly related to the amount of success you have in marketing your community.
5. How engaged is your organization in the community? In B2B communities, the higher the engagement of your employees, the more members will participate. In B2C communities, the moderators must be visible, yet not play in the community as members. They are the referees. When B2C moderators become too friendly with members in a community, new members see favoritism not balance. They then have a disincentive to participate.
6. How much content is available? Without content, there isn’t much to discuss.
7. Does your organization practice the “If we build it, they will come” method for managing communities? If so, your participation rates are doomed to be low (as will your conversion and other engagement rates). You must actively manage your community. We recommend personas as well as employees to demonstrate desired community norms and to establish the member to member interactions model for the community.

If you’ve read down this far, hopefully you’ll agree that the 90-9-1 ratio is a myth not reality. Where is your community with regards to this ratio? Does it matter? Not really.

What does matter is what are the measurable results for your community or social media offering. Are members getting what they need? Is that successful interaction benefiting your organization? These are the questions that are important, not a ratio.

We’ve helped many organizations achieve stronger results with their social media projects than they thought possible. We have created the best practices for B2B and B2C efforts that can help meet both the needs of your audience and your organization. We’d be happy to help your organization move beyond basic social media tactics to a more strategic method to engage members and achieve business results. To learn more, please contact us.

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