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Slide 1: The Business Case  for Online Communities for Online Communities Don Tapscott – Author, Wikinomics Barry Libert – Author, We Are Smarter Than Me  b h h Aaron Strout, VP New Media, Mzinga
Slide 2: What You’ll Get Out of Today’s Session The Benefits of Community Featured Case Studies Featured Case Studies` Market Pricing for Communities Demonstrated ROI D t t d ROI How to Get Started: 5 Simple Steps Q&A with the Experts, Don and Barry Reference Materials
Slide 3: Types of Online Communities Marketing Effectiveness • Lead Generation Customer Communities Customer Communities • • • Prospects Customers Partners • New Customer Acquisition New Customer Acquisition  • Customer Adoption & Loyalty • Product & Service Innovation • Customer Service & Support • Market Research Market Research Employee Communities Employee Effectiveness • Recruiting & Retention • Communications • Training & Development • Employee Performance & Growth • Innovation • Intellectual Property • Employees • Alumni • Shareholders 3
Slide 4: The Power of Customer Communities Extend Brand Visibility Market  Market Research • Demand  Generation • • Product  Prod ct Innovation Customer  Customer Community  New  Customer  Acquisition • Establish a continual dialogue with the market Actively promote thought leadership Create viral “buzz” around progress & success Extend market reach & access to new target  g audiences Customer  Service &  Support Customer  Adoption &  Loyalty Increase Revenue & Drive Efficiencies • • • • Easily and immediately identify viable leads E il di di t l id tif i bl l d Streamline in‐ & out‐bound sales & marketing  communications Reduce marketing costs by leveraging viral  Reduce marketing costs by leveraging viral channels Shorten sales cycle 4
Slide 5: The Power of Customer Communities Elevate Customer Satisfaction Market  Market Research • Demand  Generation • Product  Prod ct Innovation Customer  Customer Community  New  Customer  Acquisition • • Provide an outlet for inquiries, suggestions, etc. Provide direct access to key experts / executives  within your business Leverage the speed of trust Streamline customer education  Customer  Service &  Support Customer  Adoption &  Loyalty Increase Productivity • • • Create an extensible services & support model Centralize access to resources Minimize the need for one point of contact  Manage Risk • • • Proactively address client issues Increase business agility Increase business agility Obtain more immediate information re:  product/service concerns 5
Slide 6: The Power of Customer Communities Speed Time to Market Market  Market Research • Demand  Generation • Product  Prod ct Innovation Customer  Customer Community  Leverage wisdom of crowds to help drive  product and service enhancements Streamline launch & rollout processes New  Customer  Acquisition Gain Direct Access to Business Intelligence • • Customer  Service &  Support Customer  Adoption &  Loyalty Reduce the cost of R&D Capture, track and analyze trends, areas of  Capture, track and analyze trends, areas of interest, etc. 6
Slide 7: The Power of Employee Communities Attract & Retain Talent Intellectual  Intellectual Property Recruiting &  Retention • • • Innovation Workplace  Workplace Community  Commun‐ Comm n ications • Create a culture of openness l f Identify and reward employee contributions Connect people across departments & locations Foster teamwork and collaboration Improve Employee Morale & Satisfaction Performance  Performance & Growth Training &  Development • • • • • • Establish organization‐wide alignment E t bli h i ti id li t Create clear channels of communication Reduce barriers between executives & staff Proactively address change management P i l dd h Invite employees to participate in business  decisions Collect feedback & measure ongoing satisfaction Collect feedback & measure ongoing satisfaction 7
Slide 8: The Power of Employee Communities Enhance Employee Productivity Intellectual  Intellectual Property • Recruiting &  Retention • • Innovation Workplace  Workplace Community  Commun‐ Comm n ications • Capture and sharing best practices Provide centralized access to key information,  documentation and experts Drive knowledge sharing Increase virtual team effectiveness Performance  Performance & Growth Training &  Development Drive Employee Growth & Performance Di E l G th & P f • • • • • Facilitate formal and social learning Establish mechanisms for mentoring Easily identify budding talent & SMEs E il id if b ddi l & SME Locate employees with ancillary skill sets to their  job roles Promote opportunities for horizontal & upward  Promote opportunities for horizontal & upward career advancement 8
Slide 9: The Power of Employee Communities Foster Innovation Intellectual  Intellectual Property • Recruiting &  Retention • Innovation Workplace  Workplace Community  Commun‐ Comm n ications Leverage the wisdom of crowds to advance  your business Solicit, rate, review and track suggestions, ideas  and insights on your business strategy, products  & solutions & l ti Performance  Performance & Growth Training &  Development Reduce Risk • • • Capture and repurpose subject matter expertise  & key intellectual capital  Provide a platform for retirees and alumni to  stay engaged Establish mechanism for alumni mentoring and  extended workforce 9
Slide 10: Case Study: Procter & Gamble – R&D Situation: • • In 2000, A.G. Lafley new CEO, change to R&D Perception: Despite an incredible track record, innovation  Perception: Despite an incredible track record innovation was not happening fast enough Mission & Challenges • • Goal: By the end of the decade, 50% of all new P&G  G l B th d f th d d 50% f ll P&G products and technologies come from outside Massive change resistance Results By 2006: • 35% of all ideas are from outsiders • 60% 60% productivity increases • 80% of product launches are successful  (industry average is 30%)
Slide 11: Case Study: Brewtopia – New Marketing BlowFly Beer Situation: • Emerging company without capital Solution • Liam Mulhall invited 140 friends to contribute ideas for their  ideal beer  Results • • Within weeks, there were more than 10,000 participants The Community drove:  • • • • Beer style (lager) & Color (pale amber) Alcohol content (4.5%) Shape of the bottle, and label colors Shape of the bottle, and label colors Direct shipments; customers can define their own label • • 4 years later – 50,000 customers worldwide Wine, bottled water, soft drinks on the way…
Slide 12: Alex Tapscott’s Wikinomicists Community Web 2.0 The  Net Generation The Social  Revolution The Economic  Revolution
Slide 13: Harnessing Mass Collaboration 3. Prosumers
Slide 14: Market Pricing for Online Communities Item Community Setup Community Setup Description • Strategy • Design • Setup •H Hosted SaaS solution dS S l i • Ongoing moderation • Content/Programming • Best practices • Business Intelligence Cost $25,000 50,000 (one  $25,000‐50,000 (one time) $15,000 ‐25,000  $15 000 25 000 (month) Community  C i Hosting & Services Total Costs Total Costs $205,000‐350,000  $205 000 350 000 (annual)
Slide 15: Demonstrated ROI Potential Annual Benefits Business Function Marketing g Description • Increase revenue from existing customers • Reduce cost of lead generation by allowing  prospects to self qualify within the community • Reduce time to “qualified lead” by getting prospects  to get learn about your products quicker • Reduce cost of support by allowing customers to Reduce cost of support by allowing customers to  help each other • Reduce cost of documentation and help with  customer created wikis • Reduce time to customer satisfaction by providing  access to experts quicker than traditional  access to experts quicker than traditional “escalation policy” • Increase revenue – customer create product  extensions to new segments • Reduce cost of integration – customers create  adapters for native products d f d • Increase testing coverage into new and  unsupported environments Conservative $0.75M Expected $0.94M Optimistic $1.12M Support $.67M $ 67M $1.1M $1 1M $1.6M $1 6M Innovation $0.63M $.69M $.75M $2.2M $2.96M $3.77M Courtesy Mukund Mohan, Best Engaging Communities
Slide 16: How to Get Started: 5 Simple Steps 1. 2. 2 3. 4. 4 5. Pick a process Identify a crowd Identify a crowd Give them the required tools and support Accept their wisdom A t th i i d Measure their performance (and YOURS) as  community contributors community contributors
Slide 17: Q&A with Barry and Don 17
Slide 18: Resources We Are Smarter Than Me (the book) wearesmarter.org Wikinomics (the book) wikinomics.com Web Strategist blog: web‐strategist.com/blog Mzinga.com Del.icio.us [search for “mzinga”] Top Marketing Blogs: adage.com/power150 18
Slide 19: Ongoing Monthly Webinar Series Featured Speakers Practical Advice Practical Advice Case Studies Steps for Success St fS