"Social Media and IT - What IT Needs to Know" - Lotusphere 2012

Social Media and IT:
What IT Needs to Know
SPN 209

Mark Heid, IBM Cognos
Program Director, Social Analytics

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2 | © 2012 IBM Corporation

Agenda
• Social Media’s Impact on Marketing

• Social Media’s Challenge to Marketing

• Using Analytics to Measure and Drive Action from Social Media

• Social and Customer Analytics Governance

• Summary


3

Stating the obvious. But it’s more
than Tweeting happy thoughts …


4

It’s influencing aggregate behavior that’s shaping
demand and our ability to meet and anticipate it
Leverage Expect Demand
social consistent exactly what Get it now
networking and relevant they want or go
information elsewhere!

95 million 75% $93 billion
Number of tweets sent via Percentage of people who Amount in sales missed due
Twitter each day believe companies don’t tell to out of stock inventory
the truth in advertisements 5 | © 2012 IBM Corporation

5

The impact cascades beyond Facebook – to brand,
reputation, supply and demand
Social media compresses information relevance and the speed to which we seek
to validate it through available communities of interest … forcing business to re-
examine their value chains
Understand Adapt sourcing Market, sell and Service
and anticipate and procurement customers
fulfill the right
customer based on customer flawlessly,
product and service predict and
behavior and demand and
at the right price, drive
needs based optimize supplier
time and place customer
on customer interactions across loyalty
insights across extended value
all channels chains


6

Social Frontlines – Converging marketing channels
Marketing:
Damned if they do;
Damned if they don’t
Tomorrow's
CMO

Today’s Agenda: Today plus:
CMO + Drive consistent interactions across all channels

+ Steward the complete customer experience
Agenda:
+ Enable information & insight across the business
 Understand the market and the customer
+ Anticipate customer needs
 Build awareness and demand
+ Monitor and harness customer evangelism
 Steward the company’s brand experience
+ Optimize outcomes and return on
 Drive brand strategy and execution marketing investment 7 | © 2012 IBM Corporation

7

The vast majority of CMOs are
underprepared to manage the impact of
key changes in the marketing arena
Underpreparedness
Percent of CMOs reporting underpreparedness

50%
Data explosion 71%
Social media 68%
Growth of channel and device choices 65%
Shifting consumer demographics 63%
Financial constraints 59%
Decreasing brand loyalty 57%
Growth market opportunities 56%
ROI accountability 56%
Customer collaboration and influence 56%
Privacy considerations 55%
Global outsourcing 54%
Regulatory considerations 50%
Corporate transparency 47%
Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years?
n=149 to 1141 (n = number of respondents who selected the factor as important)


8

Understanding the Customer and Answering: “Why”
High-value, dynamic approach
- source of competitive differentiation

Interaction data Attitudinal data
- E-Mail / chat transcripts -Market Research
How?
- Call center notes
- Web Click-streams Why?
-Social Media

- In person dialogues

Descriptive data Behavioral data
- Attributes - Orders

Who? What?
- Characteristics - Transactions
- Self-declared info - Payment history
- (Geo)demographics - Usage history

“Traditional approach” 9 | © 2012 IBM Corporation

Social Media Strategy. Fill in the
blanks, please ….


10

Fear and opportunity …
What’s the right combination of social media offence and defence?
Protect or engage. Hide and reveal. Much depends on the business model and
constellation of constituents that can effect reputation, revenue and relationships.

So What’s the Right Balance?

Fear Opportunity


Proliferation and ownership

Execution in large part depends on who owns what. In large organizations there is a
proliferation of social media tools of varying degrees of strength and weakness.

Nearly one fifth of
surveyed
organizations
don’t have a Only 20% of
social media organizations
owner of strategy have centralized
their social media
deployment

How to Organize Your Company for Social Media, by Jeremiah K. Owyang, June 24, 2009


Understanding goals and readiness for social media
So what are the critical process and performance questions
IT should ask marketing?
Questions for Marketing Sponsors
What are your objectives for social media?
What do you intend to measure?
Assess
What criteria will you be assessing vendors with?
Have you engaged other business functions in your social media strategy?

How will you be measuring? And why?
How is social media related to other digital investments?
Measure Who are you targeting and why?
Are we playing offence or defense? Both?
Do you envision these metrics changing over time?

What’s your vision for social media and its integration into operational
marketing systems?
Integrate How do you intend to measure the effects of social media on brand equity and
reputation, pipeline, and sales orders and margins?
And how will you integrate social analytics into other customer data analytics?


Linking together social and customer data allows you to
manage marketing consistently across multiple channels

Planning, coordinating and executing marketing campaigns
to stimulate demand – it’s a process that includes social media

Insights from Create Optimize display and Deliver targeted
social media relevant search ad programs messages and offers
and other messages
data sources

Capture
responses and
refine 14 | © 2012 IBM Corporation

14

Social Media Strategy … Measuring Impact
Consumer Products’ Company’s 4-Point Strategic Plan for Social Media
Analytics:
1. Establish Social Analytics Center of Excellence
2. Establish Advanced Social Analytics Capability for Brands, R&D, Strategy, and Public
Relations
3. Progressively develop and roll out Social Analytics cockpit across Brands and
Organizations
4. Train Business Analysts within each organization to leverage tools & consumer insights

Emerging Integration
Analytics Topics
Sentiment
Affinity 15 | © 2012 IBM Corporation

Product brand check
…what do customers think about my product?
The launch of a permanent mousse coloration product … achieving the highest share of positive statements
drove significant share of voice over its well among all competitive products.
established competitors...

Using CCI, Henkel discovered
a competitor weakness
related to an underlying
category attributes valued by
consumers

■ A 100% increase in analyzed ■ Increased positive share of voice
relevant discussions ■ Confirmed and validated market
■ Sophisticated analyticsthat drove strategy
decision making

How Do We Measure Process and
Success …. Why Analytics


17

Social Media Influence

78%
of consumers trust peer
recommendations
Source: August 25, 2009, “The Broad Reach Of Social Technologies” Forrester report

770
million people worldwide visited
a social networking site.
18
Source: comScore, Social Networking Phenomenon | © 2012 IBM Corporation

Leader: High number of
contacts in his/her community
Network and reciprocity among them.
Social
Follower: Person with a
Analysis similar profile to leader but in
less grade. He/She has direct
communication with the leader.

Important:
Outlier: Person with have number of contacts
Some people a high more
both ways, but with low reciprocity.
influence than others, and
some are more subject to
1st Grade Marginal: Person with a profile similar to the
follower, but he/she is not near the leader.
influence than others
2nd Grade Marginal: Profile not similar to the rest of the roles.
He/She has few or no bidirectional relationships.

Technologies that Bolster Existing Marketing
Processes to Monetize Social Investments
Analyzing social media and applying predictive capabilities to discern new
opportunities, segments and intentions that can optimize marketing and web
activities and drive revenue

Social media analytics that Predictive capabilities that bring Unique customer automation
delivers an accurate view of repeatability to ongoing decision solutions that maximize 1:1
customer attitudes and brand making, and help identify new market consumer relationships and their
preferences opportunities revenue impact

Social Media Analytics
… integrating social media insights and
predictive capabilities into marketing
processes, helping customers proactively
promote and anticipate consumer What’s the
preferences, advocacy and loyalty to Right
improve marketing ROI and grow
revenue. Balance?


Social Media Foundation: IBM Cognos Consumer Insight

• Enterprise class ability to analyze
billions of blog posts
• More than 20 years of NLP
experience
• Determine affinity to multiple analytic
dimensions
• Provide related topics above and
beyond your search
• Seamlessly integrate with Cognos BI

 Understand your customers
 Make evidence-based messaging
decisions
 Ensure seamless customer
experience across all channels
 Expand your point of analysis

Social Media Analytics and Predictive Analytics
based on January 2009 “The Listening Platform Landscape”

IBM Cognos
Predictive Models Consumer
Insight

IBM SPSS
Predictive
Analytics

Predict
Customer behavior (churn,
Xsell, Upsell)
Campaign outcomes
Influencer / Influenced

Using social media to identify influence and action
Quantify,
Monitor &
Segment

Leading
Detractors
Attitudinal Business
Social
Media Analytics
Social
Leaders
Leading
Advocates
Interactions

Online Scoring Scoring for
Surveys Propensity to propensity to
Advocate buy
Descriptive

Optimize and Execute
Campaigns

Behavior Viral marketing
Points of offers to
Interactions customer
Special offers
for Advocates 23 | © 2012 IBM Corporation

and Potential
Advocates

Social Segmentation – Customer example
…understanding motivations to drive revenue
Global consumer goods company created
… to establish a baseline of marketing activities
an advocacy model that measured
that can be evaluated on driving revenue and
participation with a brand and its attributes
ability to influence.
…

■ Identified segments using weighted scoring ■ Predictive model used to determine the
based on social media activity and discussions propensity to gain/retain influence by assessing
regarding brand attributes posting patterns to identify the likelihood of a
blogger to move into a more positive
■ Combined social media analysis with participation segment
predictive capabilities to ascertain triggers of
■ Segment movement was predicted on similar
segment movement from brand believers to
factors in terms of determining increasing levels
brand advocates
of passion, increasing frequency of © 2012 IBM Corporation
24 | postings

Global digital content created will
increase some 30 times over the next
ten years – to 35 zettabytes (IDC)

How can we ensure analytics mean
something with massive growth in
data volume … Governance


25

Where are you in a social maturity curve?
Quantify & Integrate
Listen Predict & Integrate
Operationalize Transparently
Business Outcomes

Don’t wait to start  Predict & Improve  Seamless Integration of
a data Outcomes With Internal, Extranet & Public
governance Continuous Feedback Social Media Analysis &
discussion with
marketing …  Quantitatively Optimize Action
Decisions Across  Systemic Governance
 Identify & Measure ROI Functions
 Operationalize Insight via  Limited Governance
 Identify & Track KPIs
Business Processes  Embedded Social
 Qualitatively Improve
 Quantitatively Improve Analytics
Marketing Decisions
Marketing Decisions  Full Sentiment  “Targeted Crowd
 Open-up Social Media
Marketing Channel  Geo-Spatial Analysis Sourcing”
 Platform Analysis
 Limited sentiment
 Predictive Modeling
 Network & influencer
 SaaS & On Premise
analysis
Capabilities

 Monitor & Engage  Limited back-end process
 Lightweight “Domain-Specific” integration  Partner / Ecosystem
Analytics  SaaS & On Premise Datasets
 SaaS-Only  Business Intelligence
 Complete Back-End
Sourcing: ERP, HR, etc
 Broad Public Social Media  3rd-Party Datasets
 OEM-Level Sourcing of “Big
Sources

Sourcing (“Big Data”)
Data

 Mainstream Social  Enterprise CRM & Data”
Media Transactional Data

Organizational Maturity & Sophistication

Social Media Readiness – IT Considerations

Social media has broader business implications … IT needs
to be involved as guardians of data and its distribution within
the enterprise

Further confirmation that the business model needs
to match the application of social media … that scale
and governance are central.

Best Practices: Applying Social Business Challenges To Social Business Maturity Models, by Ray Wang,
Costellation Research, 2011

Yes… but be sure that marketing is engaging a wider
audience. Social media has a wider impact on an
organization’s different functions – requiring cross- 27 | © 2012 IBM Corporation
functional approaches to its adoption and management.

Final Thoughts ….

• Marketing is going to use social media …
• IT can help marketing by helping the CMO and his
team:

– Map out the right social media and marketing
integrations process

– Provide analytics that enable the
measurement the effect across different
business drivers

– Establish data governance to deal with the
huge volumes of social media data and
integration into customer analytic processes


Questions?

Mark Heid

?
Email: mheid@us.ibm.com
Twitter: @mheid
LinkedIn: Mark Heid

?
?

Communities

• On-line communities, User Groups, Technical Forums, Blogs,
Social networks, and more
– Find the community that interests you…
• Information Management ibm.com/software/data/community
• Business Analytics ibm.com/software/analytics/community
• Enterprise Content Management ibm.com/software/data/content-
management/usernet.html

• IBM Champions
– Recognizing individuals who have made the most outstanding
contributions to Information Management, Business Analytics, and
Enterprise Content Management communities
• ibm.com/champion

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"Social Media and IT - What IT Needs to Know" - Lotusphere 2012

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