Edelman Trust Barometer 2012 – Lessons for Social Media Teams

 

Last evening I was fortunate to attend the Chicago Social Club event hosted by Edelman’s Richard Edelman and David Armano. The topic was the 2012 Edelman Trust Barometer and themes that it implies for business, governments, and NGOs.

One of the more interesting observations from this year’s study is the shift away from trusting government leaders and business leaders towards the average employee in an organization. I take that as a pretty strong signal that we’re starting to come out of the Great Recession of 2008-11. With the disaster of the past years playing such a large role in the average person’s life, it seems appropriate that looking to government leaders to lead us out of the mess would be strong. Trust that our elected leaders would help us find a path forward seemed like a good strategy at the time. However, looking back now, we see that in many ways our leadership in government failed us completely no matter which side of the aisle you support. That break down in trust pushed us back to what I would call our gut feelings. That is, I trust someone more like me than someone who is not like me. The statistics backing this up provided by Richard Edelman were interesting to say the least.  While Americans tend to be very parochial in viewing the world through an America first lens, the rest of the world experienced similar drops in trust for its leadership. For example, Brazil respondents reported a huge 50% drop in trust for their leaders despite their economy doing really well in comparison to the U.S. Europeans responded with a staggering 66% drop in trust of their leaders.

As Richard continued, a simple reason for this came through… there is a huge gap right now between actual performance by our government leaders and their words. The old adage “Words are cheap.” applies here.

So, you are probably thinking what does this have to do with Social Media and Online Communities. Well, in truth it has a lot to do with both.

 Let’s look at what was discussed in terms of corporate trust. CEOs are the second least trusted group following government leaders. In their place in the trust hierarchy, the trust in the “average employee” has risen significantly. To me, a compelling reason for this rise is due to the employees using social media to communicate with each other, customers, prospects, with their network effect spreading the information faster and better than traditional communications. Bloggers play an important role as an information resource, but so do content curators who help audiences skim through massive amounts of information quickly. When Twitter, Facebook, and LinkedIn are used to then spread the information through a network, the message is amplified. With the right source, tone, and level of information, trust is built. We see this all the time in online communities. Those members who reply to others frequently, with good information are trusted more by members than those who don’t answer or engage. That applies to both company personnel and non-company members.

Along these same lines, what struck me as interesting was that of all the industries measured by Edelman technology was trusted the most by respondents. While this has been the case for many years, with the shift towards trusting average employees over CEOs, it makes sense. Companies like Cisco, SAP, Microsoft, Intel, and Apple have had open communication channels with their customers, prospects, partners, developers, and other stakeholders for years. We know that these communities are populated with employees who care about their community members and their information needs. When managed properly, communities build a lot of trust. The movement towards external communities using social media (LinkedIn Groups, Facebook fan pages, etc.) will continue to generate trust for the companies that execute them properly. But it begins with a dedicated group of employees who truly want to engage.

During one of the questions asked, Richard Edelman said “The rise in trust of the average employee to #4 in the survey is controversial to clients. Those who want top down communication not horizontal or peer-to-peer communications find this trend really hard to take. But in the end, you have to allow for the dispersion of ideas.” Unfortunately those companies see the risk as too great versus the potential reward.

In our experience over the past twelve years, we’ve seen those companies that keep their eye on the reward make gains that bring value to their organization using communities and social media. Those that focus on the risk not only don’t bring the value they could, but also make the social media mistakes that you read about in the media. So, which do you want to be?

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EMC Documentum Developer Community Takes Support to the Next Level

Today Impact Interactions follows Jerry Silver and the EMC Documentum Developer Community on a long, successful journey the site started in 2001 as a place for tools and code to its current state, the full-fledged flourishing community bursting at the seams with member-generated content that it is today. Impact Interactions’ interview with Jerry offers important insights into the best practices that have not only allowed the community to align with Documentum’s business goals but have also nurtured its progression beyond a basic online support space for its members into a valuable destination for them to enhance their reputations and expertise.  Learn from Jerry as he covers everything from how to maintain a steady, well-organized flow of content via the involvement of subject matter experts to tips on recognizing employees and non-employees in a way that results in their ongoing participation.

1) What is your role at EMC and with the community? How long have you been with EMC?

I work in product marketing, covering Documentum xCP, a family of products for Application Composition, Business Process Management and Case Management.  I’ve been here for about 3 ½ years.  Within our marketing group we’re organized by product and also by channel.  In my case, the product is Documentum xCP, and the channel is social media and community for xCP and related products.  Developers are a key constituency for my products, which has led me to the role of manager of the Documentum Developer Community.

2) What is the community’s purpose and when was its inception?

As the name suggests, the Documentum Developer Community is a destination for developers that build on the Documentum platform. We also provide lots of great content covering all technical aspects of the platform, such as administration, integration, and performance tuning.  The community is completely public and complements our support forums, which are currently only accessible to customers with a support contract. That said, we’re putting plans in place to make the support forums public and to integrate them into the community.  So the community’s primary purpose is to meet the needs of our members. It supports them in the use of our products, helps them build their knowledge, recognizes them for their expertise, and allows them to network and share information with other developers.

For the company, the community is a channel for increasing product satisfaction and engaging directly with our customers.  We learn a lot about how they’re using our products and the direction they  need us to take  to meet their business and technical needs.

The community grew organically from a home grown site that was launched in 2001 and primarily provided downloads of developer tools and sample code, to the site that you see today.  It’s part of the larger EMC Community Network (ECN) and runs on a commercial platform (Jive SBS).  Downloads are still important, but we now offer considerable interactive, member-generated content – wikis, blogs, discussions, videos, polls, etc.

3) Tell us about your membership. How has it changed over time? Who are they? Customers? Partners? Employees?

ECN has around 200,000 members, but that’s across all of EMC.  We don’t break the numbers out by community since all communities share a common user base.  I can tell you that our community alone gets more than 20,000 unique visitors every month, and many of those visitors make repeat visits during the month and beyond.  Because the community has evolved over 10 years it’s difficult to say how much it’s grown over that time.  Participation is roughly 20% by employees and 80% non-employees.  A large number of partners participate but we don’t break them out as a separate group.  We are looking at programs to more directly engage partners.

4) Give us some examples that demonstrate how the community has achieved its business  goals.

In terms of meeting member needs, the numbers speak for themselves.  The number of unique visitors is growing, as is the number of first time visitors.  We’re able to maintain that momentum through a steady stream of new content, in addition to  programs like developer contests that offer substantial prizes and generate a lot of interest and useful content in terms of contributed code and expertise. Our last major contest had a $50,000 prize pool.

A key business goal for our division is to encourage an approach to development based on modeling and composition, rather than writing raw code.  This approach is supported by our newest toolset, Documentum xCP, and is a transition for many of our members who are familiar with our legacy APIs and more traditional, code-intensive methods. This has therefore become a focus for the community, and we’ve seen interest shift towards the xCP and composition related information, which is now the most popular content on the site.  It includes a substantial and growing library of “xCelerators” – sample applications, pluggable components, design patterns, and best practice guides that extend our product set in highly useful ways.  So the community has also become an effective distribution channel for product extensions that is much more dynamic and agile than the traditional release cycle.

We’re also starting to track how the community contributes directly to revenue generation.  This is a challenging problem, but we’re figuring out how we can correlate community participation with sales wins and repeat business.

5) What are your greatest challenges and how have you addressed them?

Our community is very content rich, which is great but poses challenges in navigation  – just finding the right content.  One approach that works is to enlist subject matter experts to “curate” content. For example, we have created index pages that guide members to relevant information.  We’re also in the midst of a usability review and expect to revamp the user experience in the near future.  Unlike most marketing Web sites, which are highly architected from the outset, community content grows organically, as new industry topics become relevant and emerge .  While  “too much” content is a nice problem to have, it does mean that a periodic refresh of the community design and navigation is required to keep up with the constant flow of information and interaction communities contain.

Member engagement is another challenge that requires some investment.  For the past couple of years we’ve focused on internally produced content. Getting employees to  participate amidst other competing priorities can be difficult.  It requires persistence and constant evangelism.   What works well is to find employees that are inherently motivated to contribute, and to recognize and reward their participation to create incentives for others to follow.  The reward doesn’t have to be monetary. It seems that just seeing your product or latest blog post featured in the community can be reward enough. We’ve even seen team members compete for who gets the most page views in a month.  We’ve recently had some success with a leader board that tracks the most popular content and the most prolific contributors for a particular segment of the community.  That seems to be working. I’m starting to be approached by more groups that want a presence in the community.

Now that we have an active core of internal contributors we need to encourage more non-employee-generated content, beyond discussions.  For that, we’re looking at introducing reward and recognition programs that will identify community MVPs and provide incentives for increased participation.  I believe that recognizing a member’s expertise and contributions to the community is the best incentive, but sometimes you also have to help things along with the occasional iPad giveaway.

6) What are three best practices that you’ve taken away from this community?

We’ve recently become more consistent about tracking metrics, and I regret that we didn’t do this sooner.  But don’t just track metrics for their own sake.  Make sure you’re measuring meaningful activity, and that the metrics lead to actionable results.  For example, we started tracking the top searches.  These indicate members’ interests, which helps with content planning, but also tells us what they’re having trouble finding in the community.  That prompts us to use curation techniques like index pages to help them discover and browse to content instead of searching for it.  Metrics have also helped us sell the value of the community to senior management, who are more willing to invest in community programs if they can see a measurable impact on revenue or customer satisfaction.

A continuous flow of new content is important, but equally important is the organization of that content.  Many community managers understand the role of moderation, but don’t realize that curation is just as important.  Moderation is mostly about ensuring that community content is appropriate and that responses to questions are given when needed, but curation is about making content easy to find and keeping it up to date. Note too, that these are different roles that require different skill sets.  A non-technical community manager can handle moderation tasks, but subject matter experts who understand the content and the members’ needs are needed to curate.

Finally, recognize that B2B communities differ from B2C social networks, and have a distinct set of challenges and approaches.  In a B2B community, the company is much more welcome as an active participant, and in fact is expected to play an active role.  B2B customers want to engage with their vendors and get to know the personalities behind the products, and that personal connection can be a powerful tool for winning and sustaining customer loyalty.

7) Is there anything we may have missed that would give the world a great example of how your community is benefiting EMC?

Many vendors host a community to answer post-sales support questions and think they’re done.  That’s a necessary starting point, but it isn’t really a community until it becomes an integral part of the members’ professional lives.  I think our community has evolved well past its support roots to become a valuable destination for our members to enhance their reputations and expertise.  And it’s proving to be an effective channel that engages customers at all stages of the “buy cycle” – pre- and post- sales – which brings real value to our business.

Jerry Silver has over 25 years of IT development and marketing experience, specializing in content management, collaboration, application development, Web technologies, BPM, and social media. Jerry spent 15 years at Oracle in a variety of technical roles, most recently as Principal Product Manager of Oracle Application Server Portal. He also served as Director of Product Strategy with content management vendor NCompass Labs, now part of Microsoft, and was Director of Product Management for XMetaL, a leading XML authoring tool. Jerry is currently Senior Product Marketing Manager for the EMC Documentum xCP Platform, and is also responsible for the Documentum and xCP Developer Communities.

Blog: https://community.emc.com/blogs/ecmteam
Twitter: http://twitter.com/JerrySilver
LinkedIn: http://ca.linkedin.com/in/jerrysilver

- Lauren Bittner is Senior Director of Client Services at Impact Interactions and has 10 years of experience with helping companies align their social media efforts with their business goals.

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Management Efficiency – Using Dashboards for Executive Reporting



HI to all the readers of the Impact Interactions blog! My name is Robert Hu and I work at Impact Interactions as a manager of client services and I will be blogging about my experiences with how we manage social media and reporting.

We have been using tool called Xcelsius for almost 2 years now and it has worked wonders for all of our clients. No more 50 slide decks which no one ever read. With Xcelsius, we can now put all those charts, graphs, and other visuals that we had to repeat in the PowerPoint deck for each category into one simple visual which the user can filter to see what they are looking for. This not only saves so much time but also gives a more coherent story about what is going on with the social media strategy. Instead of putting 15 slides of the same line graph for each region, we can have just one graph the changes depending on which region the user selects.

Another benefit of a dashboard is that it can display data from multiple sources. As shown above from our dashboard, the data from traffic, behavior, value, and listening are all congregated into one simple view. This means that if you wanted to view the number of Twitter followers for this quarter you would click on the traffic tab. You can then go to the behavior tab and analyze how many of these followers are retweeting your content and finish by calculating the worth for all these tweets, followers, and retweets in the value tab. This process does not just apply to one social media tool, all of your social media offerings can be displayed in the dashboard which allows you a easy way to compare the results of each tool.

So you might be asking with all of these tools being displayed at once how do I compare the ones i want? The great thing about a dashboard is that you can filter out data that is important to you, therefore one dashboard can be distributed to multiple levels of management. The first screenshot shows a typical graph in a PowerPoint presentation, there are so many lines that it becomes confusing which competitor is doing better. But with the filters in a dashboard you can easily display only the competitors that you want to compare your company with which makes visualization of the data much easier.

Simplistic, versatile, and aesthetically pleasing, dashboards are the future of reporting and offer an enhanced way to view your data and make decisions from all your metrics.

Click here (flash required) and see for yourself on how a social media dashboard can look like and please let me know your thoughts on your own reporting experiences.

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Cisco Service Provider Community Makes Business Personal

We invite you to read and learn from Impact Interactions’ interview with Deborah  Strickland, Manager, Social  Media  and Digital Marketing for Cisco Systems. Deborah manages the Cisco Servicer Provider Community for executives in the mobility industry, as well as many other social media projects. Listen to Deborah discuss the challenges of creating a collaborative online environment for a group and a level of professionals who not only compete, but also typically avoid sharing information. Join us and allow Deborah’s innovative strategies for engaging her target audience and generating fresh, compelling content to pack some punch to your online strategy.

1) Describe your role at Cisco:

I manage a team of other social media strategists and web developers who work across mobility, video, routing and switching, and data center products. We cover events, product and solutions announcements. In January we worked on the Videoscape announcement at CES, the Consumer Electronic Show, and we recently promoted an online TelePresence concert with the singer Jewel. This was in collaboration with AT&T and Marriott.  We also completed our first series of tweet chats for our mobile and video campaigns.

2) Describe the Cisco Service Provider Community and your business goals.

The community started in June 2009 as part of an experiment to increase our global influence. We wanted an open platform where we could discuss the technical and business details of the challenges global operators have in regard to upgrading, managing and identifying revenue opportunities for their networks.  It was not intended to be a forum for product or technical support issues; there are plenty of those already.

A secondary goal is to give our internal subject matter experts (such as solution managers, product engineers, and marketing managers) an opportunity to participate in a public arena where they can showcase their expertise and make themselves available for ongoing conversations. The community is a way to get our experts’ names out there where they can write in a more natural format (as opposed to the highly edited format of a white paper), and put a personal face on our content. Plus it gives them a taste of social media and eases them into the idea of being conversational.

3) Give us an example of this “personal touch” and some of the benefits and challenges of using it.

In one instance, a colleague of mine was meeting mobile operators in Asia to explore the monetization of 3G and 4G networks. I proposed to her that she do something a little different than the usual post-event summary.  Although she wasn’t able to name specific customers, we turned her business trip into a series of travel stories. She did a great job of giving a daily wrap-up recorded from her hotel room. She included local photos and videos of where she happened to be, the food she was eating, and a summary of her customer conversations. This shows that we actually go out and talk to people. We’re not just sitting here in our cubes 3,000 miles away from the action. In this case it was the first time this person did a blog, let alone a video blog and she was a natural. It showed other people on the team how they could use storytelling to get their point across sans the Power Point deck.

People are also more apt to want to reply back to blogs, discussions and other community content if the content is not dry. Our content is written in such a way that you know the person who’s talking. It’s just like you met them at a dinner party.

Some of the content on business sites is really dry. We’re changing how people communicate. The challenge is that the writing on many corporate websites is very reviewed and edited.  People who are used to writing in that style find it hard to relax and be conversational. There can be a sense of fear of participating in social media in a corporate environment. Yes you have your own voice and are telling a story, but you’re also very aware of the approved messaging, competitor commentary, and the fact that you can’t take back what you said. Once it’s out there, it’s there forever.

4) How do you prove the value of your content to your executive team?

One example I use is the comparison of how many views a white paper on Cisco.com will get as compared to how many views that same content gets if we repurpose it in creative ways.  A lot of money is spent on developing white papers, but if they aren’t getting viewed, you’ve wasted time and money. There could be many reasons why a piece of collateral isn’t getting consumed so part of the challenge is to experiment and repurpose that same data into different formats that are easier to digest and share.

I identified one particular white paper that wasn’t getting the views we had hoped, but we knew would be of greater interest.  When we divided the white paper into a series of  blog posts, reworded it slightly , added some photos, and dispersed questions throughout the blog,  we received more than 1,200 views (as opposed to 43 when it was posted on cisco.com)

5) What’s the lesson to be learned here?

You don’t have to start from scratch. There is content in your organization that is valuable, but is not getting used or read. Sometimes content on Cisco.com may be hard to find because the site is so big. If you see content on your corporate site has value, but you are disappointed in its usage you can correct it and repurpose it in many ways. You can’t just post it and forget it, and expect people to come to you and hope they find this great piece you wrote. Bite-size pieces are so much easier and inviting for people to consume. You need to rethink how content is created and distributed. You can always provide a link to the detailed document, but quick summaries of the main points are what most people want to find when they only have a few minutes  to get their questions answered.

6) How does the use of 3^rd party applications like Ulitzer.com, a content aggregator which allows articles on the community to be picked up by search engines and RSS feeds, factor into what you’re trying to achieve?

I believe it’s more important that your content get consumed and that people can find it easily than it is to force the audience to come to us to read it. Why spend time creating content that no one can find? It’s about presenting the information the way your audience likes it. We go where the audience is and reference back to the community. Content aggregator systems are sometimes controversial (are they farming or ‘scraping’ content?); but I see it as experimenting  with where your audience is and their preferences. We also use SlideShare to repost some content which also allows readers to post comments (a feature not supported on cisco.com).  For many reasons, corporate web sites are often restrictive in how content can be viewed and distributed. So why not re-create some of it and post it elsewhere?  I would rather  it get consumed than force users to come to me. The days of controlling where and when users consume your content are dead.

The more places you post your content and the more formats you post your content in, the easier is to find. If we only posted videos on our community it wouldn’t work. We also post a written transcript so it’s easier for search engines to find us. A search engine can’t (yet) look inside a video and tell you the video is about. I’ve also posted the audio portion of a video for those who like to listen instead of read. Options. It’s all about options.

You have to educate yourself on what search engines like. Positioning on the page matters, for instance. There are many guidelines but they are always changing. We’ve gotten better and better at  getting our key topics to achieve higher placement in search results.

7) How do you engage experts to provide content?

There are two ways: By writing content that is somewhat controversial and by asking the right questions.  You don’t need all the answers; but being able to invoke thought and spur discussions (in favor or not), is the goal.

It’s also the way you present the content on the page. You also need to put some personality into it. Remember that only a very small percentage of your community will actually reply with comments. The vast majority people are listeners and observers of information. They’re not likely to take the time to rise up and make themselves known. They have better things to do. Even on sites like Amazon where there are so many comments, the huge majority of the users never post a comment. Don’t expect participation relative to the size of your readership. Keep in mind that not everything of value can be measured. Life isn’t that simple.

8)  What guidelines do you give your experts for contributing?

We give them recommendations for how to get their articles to show up on search engines. We work with them on modifying posts so they are less rigid and more casual. There’s a difference between textbook writing and something that is visually appealing. Most people quickly scan an article first to see if it’s worth it to slow down and read it. Laying  out the article with sufficient white space and easy-to-find inflection points is critical. It’s also important to insert questions throughout the article. No one wants to read through pages of dense copy trying to figure out what the author’s point of view is.  Get to the point!  Our community does not want read a doctoral thesis. They have very little time. They want to see what’s new, get inspired, learn something new, and move on.

– Lauren Bittner, Social Media Consultant, Impact Interactions.

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Impact Interactions Welcomes Experienced Social Media Professionals Lauren Bittner & Adam Crawford!

With our continued growth here at Impact Interactions, we’ve recently added two experienced professionals to help our clients’ social media and online community projects succeed. Please join us in welcoming Lauren Bittner and Adam Crawford to our team!

Lauren Bittner (Social Media Consultant) brings over nine years of professional experience in the social media and loyalty programs to help our clients drive deeper, meaningful relationships with their members. With consulting and management experiences ranging from IBM and McGraw-Hill to Allstate Insurance and Ace Hardware, Lauren has a strong foundation in the B2B social media world. She will initially support the Hall of Fame and Expert member recognition program at Cisco’s CSC as well as support additional projects both for Cisco and our other B2B clients.  Prior to joining us at Impact Interactions, Lauren helped improve usability for client sites as well, bringing another dimension to our services for clients. Lauren got her start in social media at online community pioneer Participate.com.

Adam Crawford (Social Media Consultant, Business Development) is an experienced social media professional with over ten years experience in helping large organizations with their social media and online communities. In his experience, Adam has managed teams of moderators for such diverse companies as NBCi, ATT, AARP, and Ace Hardware. Further extending his social media experience, Adam was an Account Development Manager for Open Text, a leading Enterprise 2.0 content management and social media software company for the past five years. This gives Adam a wide understanding of not only the processes and procedures for social media programs, but also a solid understanding of the technology requirements needed for success. Prior to Open Text, Adam worked for Participate.com as well. In his new role, Adam will help Impact Interactions with Business Development and consulting work.

Please join me in welcoming Lauren and Adam to our team.

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What Have You Done For Your Community Lately?

If I could sum up the advice I gather from books and seminars about networking and building business relationships, whether it takes place on a social media site like “LinkedIn” or a face-to-face meeting, it would be this: “Ask not what your network can do for you, ask what you can do for your network.”

Now take that sentence and substitute the word “online community” for “network”. It still works. The members of a community are connecting to help each other professionally in some way. And they are certainly helping the sponsor of the community drive a business objective. Part of managing a community, just as in managing a network, is focusing on furthering the interests of the people you’re interacting with, rather on focusing solely on how they can help you.

I was reminded of this philosophy when I read “Seven Steps to Creating a B2B Community on Twitter.”  The article relays best practices for creating a relationship with your followers that is more about giving than taking to help build a thriving community.

What examples do you have of ways  you have created a win-win situation for your community members?

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Online Community – Moving Beyond Metrics to ROI

We gave a presentation on building ROI models for online communities at the Online Community Unconference in Mountain View, CA on June 10th. It was added because so many of the participants stated that ROI and calculating the value of their community was the most important issue they faced.  So, we didn’t have time to build a true presentation, but rather lead a workshop for participants to learn more. It was lead by our president, Mike Rowland.

Here are the summary notes taken during the session:

• Have to first identify what is the economic value of the community to the organization offering it: (Don’t confuse traffic or behavior metrics with value)
  • Cost Avoidance
  • Increased subscription rates or lower churn rate
  • More frequent purchase rates
  • Higher purchase level/amts
  • Faster close for large item sales
  • Reduce lead generation cost
• Once you’ve identified your value metrics, break down your metrics into 3 buckets to look at communities:
  • Traffic – PV, visits, visitors, etc.
  • Behavior – What they do when the get there, who they are, download/visit, contribution/member, responses by employees vs. customers
  • Value – can attach an economic value to it. Need $ to get to a true ROI model. See above list.
• You have to build relationships w/ the folks in your company. Need access to other systems. You cannot build ROI from community analytics provided by software vendors or from traffic and behavior metrics alone. 
• ROI Frameworks:
  • Cost Avoidance
    • The person who proposes the question needs to verify the answer. This is a feature needed in the platform.
    • # of community support resolutions X $ complimentary support resolution (1-800 number) = total cost avoidance -> economic value
    • Track over set period of time (e.g. quarterly or yearly)
    • ROI = (total economic value – total costs to set up and run forum) / total costs –> over one period and as a percentage
  • Increased subscription or reduced churn
    • Customer database compared to community database
    • cust. database = Average churn rate (e.g. the number of months the avg user subscribes) X price/subscription = customer value
    • Community database – look at active members and see if the churn rate is better or worse.
    • Price will be the same, so you’ll have to see if the churn rate was more or less. If subscriptions are longer, than you have a higher customer value for community members.
    • Shows you slowed the churn rate down.
  • More frequent purchase or Higher Purchase level/amts
    • Use your eCommerce DB or CRM system
    • What is the avg amt customers spend/purchase?
    • go back to comm DB and parce out active members and compare to ecommerce DB (which ones spend more/purchase?)
    • Do comm members have a higher spend/purchase? active comm users X avg $ they spend = economic value
    • Need to trend this and see how it fluctuates.
    • what is the average number of items in completed shopping activity? (e.g. 1.6 items) Do comm members buy more?
    • Avg cost/item X avg # items = economic value
  • CRM decrease cost
    • Want to find what avg value of customer is
  • Faster close of sale (Good for large purchases like software or hardware systems)
    • How fast are organizations moving through your CRM system to sale?
    • Identify active organizations in community DB to compare them to avg organizations.
    • How long does it take the avg. organization to go through sale stages? What’s the cost/sale? Do active organizations in your community go through more quickly and spend more?
  • Lead generation cost
    • Similar to above, but use cost to generate a lead for average customer versus those which originate in community/social media campaigns
• How can you tell if a user came to your comm and then bought your product through a 3rd party reseller? You can’t unless your resellers provide access to their databases which is next to impossible to get.
• Users of support communities become brand neutral after their issue becomes resolved.
• Hidden costs of community for ROI Analysis, make sure you count these:
  • Servers
  • development costs
  • customizations
  • widgets
  • maintenance
• Make sure that you are amortizing your costs across the same time period as your economic value or you will skew your results.

One point to remember is that the value of communities really is derived from active members, not all members. So define your active members with criteria that meet your behavioral key performance indicators (KPIs). For example, an active member can be someone who posted in a forum, downloaded a featured whitepaper, uploaded content, or viewed a webcast in the past month. For B2B especially, it doesn’t have to be an activity within the past week as most B2B community members average 2-3 visits per month unless they are deep into the sales cycle.

The number one issue to watch out for when building your ROI framework is the use of proxies. If you cannot get the data, don’t guess at a proxy for the value because the more proxies you utilize the bigger the house of cards that you build.

Lastly, value can be a set of different items. For a subscription based community value can be both churn rate differential and purchase levels. ROI is not a single value formula, it is a multiple value formula in most cases as there is marketing value in support communities and vice versa. So make sure that you are at least attempting to capture as much of the value drivers as possible in your analysis.

Want to learn more about online community or social media ROI? Contact us today or leave a comment.

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B2B Communities – What Works

We gave a presentation at last week’s Online Community Unconference (site is open to the public as of June 19th per Forum One) in Mountain View, CA on B2B Communities. We weren’t surprised by the number of attendees looking to learn more about the best practices for running a B2B Community, but were surprised a little bit by some of the misperceptions on managing them.

Top Best Practices for B2B Communities:

1. B2B Community Members have higher expectations than B2C members. You must engage with them as they want to engage with your company just as much as they want to engage with their peers.
2. B2B Communities require internal SMEs to engage early and remain committed to meeting member needs until external SMEs can compliment the internal SME efforts.
3. Third party applications like Twitter and Facebook should not be used as external competitive communities, but rather should be utilized as beacons to drive traffic to your community and key information.
4. You can measure the ROI for B2B communities, but you cannot get there by using only community software metrics and/or web analytics packages like Omniture or Google Analytics. None of these provide true value metrics that have an economic value associated with them. To get to ROI, you must build relationships within your organization so you can obtain real data on customers, leads, ecommerce transactions, etc.
5. When budgeting for B2B communities, be realistic. For example, no single vendor of software or web design or implementation services will ever come in exactly where they quote when you want additional features or customization. So build a small cushion into your budget to be safe.
6. To attract business decision makers, you must focus on how they will use the site… not how you want to market to them.
7. The higher the level within an organization your potential members have attained, the lower the amount of time they will have to spend on your site. So don’t waste their time!

In short, B2B communities can deliver impressive results when managed properly with a focus on those segments who deliver the value to your organization. Don’t be all things to all people, that strategy is doomed to fail. To learn more about the best practices for B2B communities, please download our presentation , ask questions in the comments area below, or contact us.

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Online Community – Understanding the Myths

Are You Blindly Following the “Wisdom of the Crowds” ?

Last year, we presented this topic at the Online Community Unconference in NYC to a standing room only crowd. It’s a fun topic, albeit one that elicits strong opinions and discussions. Whether you are an industry veteran or someone who is new to online communities and social media, this presentation can help you understand and avoid some of the classic mistakes being sold by the blogosphere and ‘gurus’ every day online. It’s available in our Social Media Resources area as a pdf that you can download.

For this month’s Online Community Unconference (June 10th in Mountain View, CA0, we are updating the presentation to cover even more myths that continue to gain a following despite impacting the results of communities and their teams. For example, are you using B2C thinking in your B2B community? Are you sure you need to be on third party platforms like Twitter, Facebook, MySpace, and others? What about metrics, are you confusing traffic with value? What role should volunteers play in your community?

These and other topics will be discussed in our talk. We hope that you’ll join us.

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The New Reality – What It Takes To Get Hired In Social Media

The economy is tough, but social media keeps growing. Impact Interactions is growing this year and once again is adding staff. We’re also trying to help those impacted by the economy and those coming right out of school to understand what working in social media is really like.

From our experience, here is what it takes to get hired:

• A focus on business skills like written communications, presentations, and statistics
• Understanding of how businesses operate from a financial perspective
• A basic understanding of Marketing, eCommerce, Advertising, and Sales
• Experience as a team member who’s used the power of collaboration to help everyone succeed
• A positive attitude
• A “relaxed” professional appearance (you know what business casual means)

Did you expect that?

Notice what’s missing?

That’s right, you do not have to be a Facebook addict or have 2,000 followers on Twitter or 500 connections on LinkedIn. You don’t have to know how to build a widget to update a user for when the top 20 members are on the site. If you use Tweetdeck, great. If you have no idea what it is, no problem.

Yet, when we give career talks, advice to job seekers, and interview our own candidates they focus on their Facebook or MySpace skill, the number of followers they have on Twitter, or what online community they use. What are we focused on? Simple, can the candidate learn our business while building strong relationships with our clients? Can the candidate make the client look good while understanding that he or she will be in the background?

Afterall, Social Media for all its wonderful claims of revolutionizing the world is really just another set of tools to increase the efficiency of business in meeting their goals. Direct mail, robo-calls, telemarketing, advertorials, infomercials, email campaigns, listservs, click-to-chat, click-to-call, and other marketing tactics helped businesses gain efficiency in their marketing efforts. Social Media is doing the same thing. The underlying principle is to use the correct tool set to engage your customers in a way that benefits both sides of the relationship. (It really is that simple.)

But you have to understand and like business for business sake. Because Social Media is not all about playing with the latest cool technology, it’s about getting results. No results equals no budget.

The great push right now is to find employees who can help companies understand social media and measure the results of their efforts. Think about every online community, web 2.0, or social media conference you’ve attended or read about… what is the one area that is always a topic of interest? Measurement and monetization.

Success in Social Media requires a focus on results, thinking strategically and executing tactics that achieve tangible results like additional sales, reduced marketing costs, faster velocity of sales, reduced lead generation costs, reduced support costs, etc. There are so many people who want to work in Social Media today, but few are willing to demonstrate their business acumen to get the position. We saw this in the late 1990s in the online community world, again in around 2003 with the blogosphere, and yet again in 2005 with the early social network companies. And here we are almost ten years later with the same issues.

So do you want to work in Social Media? My advice to you is brush up on your business skills first. Worry about your number of followers on Twitter later.

What do you think? What skills do you think it takes to work in Social Media?

Mike

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