NICK SMITH AND ROBERT WOLLAN WITH CATHERINE ZHOU. John Wiley & Sons, Inc.

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5 NICK SMITH AND ROBERT WOLLAN WITH CATHERINE ZHOU John Wiley & Sons, Inc.

6 Copyright # 2011 by Accenture, LLP. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) , fax (978) , or on the web at Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (2 01) , fax (2 01) , or online a t http: // o m /go/pe rmissio ns. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) , outside the United States at (317) or fax (317) Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at Library of Congress Cataloging-in-Publication Data: Smith, Nick, 1962 The social media management handbook: everything you need to know to get social media working in your business/nick Smith and Robert Wollan; with Catherine Zhou. p. cm. Includes index. ISBN (hardback); ISBN (ebk); ISBN (ebk); ISBN (ebk) 1. Internet marketing. 2. Social media Marketing. I. Wollan, Robert, 1957 II. Zhou, Catherine. III. Title. HF S dc Printed in the United States of America

7 Contents Introduction: What Is Social Media? ix I Social Media Strategy for Organizations 1 1 The Power and Business Risks of Social Media 3 Nick Smith and Robert Wollan 2 How to Develop a Social Media Strategy 16 Chris Boudreaux 3 Social Media ROI: New Metrics for Customer Health 36 Kevin Quiring 4 Selling Social Media within the Organization 54 Robert Wollan II Marketing and Sales in Social Media 65 5 Social Media and the Voice of the Customer 67 Chris Zinner and Catherine Zhou 6 Integrating Social CRM Insights into the Customer Analytics Function 91 Rayid Ghani and Sarah Bentley 7 Using Social Media to Drive Product Development and Find New Services to Sell 104 Adi Alon and A.J. Gupta

8 vi Contents 8 Social Community Marketing and Selling 120 Robert Wollan and Andre Trochymiuk III Customer Service and Support with Social Media Using Social Media in Customer Service and Support 141 Stephanie Sadowski 10 Social Media: Responding to Customer Complaints 160 Todd R. Wagner 11 Staying Out of Trouble: Complying with FTC Disclosures 175 Chris Boudreaux IV Beyond the Pilot Phase: The Core Components of the Agile Digital Enterprise Creating and Implementing a Social Media Technology Platform 189 Anatoly Roytman and Joseph Hughes 13 Social CRM on the Move: Mobility Implications for Social Media Programs 209 Greg Jenko, Lars Kamp, and Saj Usman 14 New Rules for Tools: IT Infrastructure Implications and Options for Supporting Enterprise Social Media 220 Robert Wollan and Kelly Dempski V Empowering Employees for Social Media Success Culture Traits, Employee Incentives, and Training 233 Christine Eberle 16 New Roles and Responsibilities 250 Chris Zinner and Vanessa Godshalk 17 Social Media Policies 274 Chris Boudreaux

9 Contents vii 18 Social Media, Collaboration, and Value Creation in Organizations 286 Robert J. Thomas Appendix Appendix Notes 307 Index 315

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11 Introduction Getting involved in social media is a bitlikegettingafreepuppy.it doesn t cost anything to start, and it looks like nothing but fun until it chews up the carpet, eats the neighbor s plants, and costs thousands of dollars at the veterinarian. Welcome to the world of social media. It s not an understatement to say that social media has equally captured the attention of companies large and small with great promise. Every month, more and more people young and old, around the world take to their computers or mobile devices to connect with friends, post their opinions, and engage in conversations. This rare combination of such massive numbers of customers engaging in such new ways with companies and each other is making businesses take notice. In fact, this strong undercurrent of social media activity and the impact it is having on businesses everywhere are significant whether companies know how much it is happening with their customers or not. Given the massive rise and acceleration of social media adoption around the world, it is clear that customers are using this medium, although few can pinpoint precisely how many and what is being done. It would be a mistake to assume that social media is not a major (and growing) part of customers lives and choose not to act. Thus, it s absolutely vital for business leaders to understand this phenomenon and determine what they need to do to prepare their organizations to thrive at a time when customers wield more power and influence over businesses than ever before. The Audience and What to Expect from This Book The Social Media Management Handbook has been written to help you with everything you need to know to get social media working in your business.

12 x Introduction We all engage in social media in one way or another, especially in our personal lives through friends and family. But to date many of us have not practiced extensively or thought through precisely what it means to our business. Social media is undoubtedly out there and evidently important to a rapidly, exponentially expanding number of people. Our customers, our coworkers, and, therefore, our business must be connected. We can t ignore it Canutelike, hoping the changing world of digital conversations will somehow pass us by unaffected. But what do we need to do about it? How can we build our strategies and organize our customer-facing activities to continue to meet the important challenge of remaining relevant, competitive and attractive to our consumer? If you are engaged in commerce and have a fair understanding of your customers and the growing importance of this new type of conversation we call social media but aren t entirely clear how best to respond to the challenge, this book is for you. If you have experimented with using social media to engage directly with your customers to establish a dialogue, manage customer complaints, shore up your reputation, sell more, prevent your customers from defecting, and understand customers sentiments toward your business in the social media environment (or blogosphere ), this book is for you. If you have sought to collaborate with coworkers to improve customer service, solve problems of delivery, or create systems or products that are more relevant to your customers and more competitive; if you have sought to engage your colleagues in seeking new ways to present the business or get input into the development of advertising or communications but have done so in only a piecemeal or ad hoc way, this book is for you. Social media is not a passing phenomenon; this new form of communication is changing behavior and expectations of consumers and employees. The consumer is no longer king, he is emperor, with the power to make or break brands. If business hasn t already woken up to the opportunity (and challenges), it had better do so soon because social media is not just here to stay; in time it will fundamentally change the way we do business. During the course of this simple how-to guide, we cover the strategy, culture, metrics, policies, roles, and responsibilities related to making social media work for your business. The question we get asked most is not How can we start? Instead, managers and executives want to know how they can

13 Introduction xi bring structure and commercial return to this new and vibrant global conversation and how they can divert funds and effort sensibly into something that is neither fully accountable nor controllable. The thing is, to win it, you ve got to be in it. This guide should help make your welcome to the world of social media a little more thoughtful, comprehensive, and confident knowing you re aware of practical lessons learned from others in the marketplace... and their social media customers that just might be your social media customers. This Book Is Just the Start... Access the Social Media Resource Portal Social media and new ideas are emerging in the market all the time. To help you keep up with some of the best and latest examples of social media, Accenture has developed a social media portal. This site will give you access to updated content, other relevant documents, and project templates to download and put to use in your business. Get connected to a whole new network of social media professionals access the site at managementhandbook.accenture.com. What Is Social Media? Before going any further, we should confirm what we mean by social media in the context of this handbook. Strictly speaking, social media is not a new phenomenon; people have been providing recommendations and opinions to friends and contacts for millennia via channels through which a two-way conversation can take place. In modern history, such channels have included face-to-face discussions, letters, the telephone, and, more recently, . So what is new? We see a number of characteristics that distinguish today s digital social media interaction from other types of social conversations. It enables one-to-many or many-to-many conversations. (We use the phrase peer-to-peer to describe these dialogues.) It features content created and posted by consumers of that content. It is easy to use.

14 xii Introduction It is highly accessible (everyone), highly scalable (everyone þ everywhere), and operates in real time (everyone þ everywhere þ every time). It is entirely public and transparent. In short, social media enables the swift and easy development, creation, dissemination, and consumption of information and entertainment by both organizations and individuals. A Growing Force The advent of social media interactions is creating a whole new ball game for the world of commerce and connection. They are materially impactful, unavoidable, and so ubiquitous that no business can afford simply to ignore them. In fact, social media already has a massive presence and just keeps growing and evolving. Consider the growth of the most popular social networking sites. Facebook, the behemoth of the group, topped 500 million users worldwide in 2010 and is currently growing at a rate of 500,000 new users daily. 1 Twitter claims 105 million users (adding 300,000 users per day) and is projected to process 6.7 billion tweets per month by January 2011 (see Figure I.1) 2 while LinkedIn and MySpace have 60 million and 57 million users, respectively. 3 Yelp, just an idea six years ago, now serves more than 30 million visitors a month. 4 Flickr now hosts more than 4 billion images, while Wikipedia currently has in excess of 14 million articles. 5 And unlike several years ago, when such sites were the purview of young people, older adults now are driving much of this growth. For example, a recent AARP study found that use of social networks by those over 50 has tripled in the past 18 months, and once boomers join a social networking site, one-third of them visit at least once a day. 6 A survey by Accenture found that baby boomers are connecting on social networking sites at a rate nearly 20 times faster than younger generations, with 28 percent of boomers indicating they use such sites. 7 (See Figure I.2.) While the popularity of social media is growing, so is the frequency and duration of use. According to one study, 56 percent of social media users said they need to check Facebook at least once a day, and 12 percent check in every couple of hours just to see what s happening. 8 (Those under 25 years old are more likely than those over 25 to check in frequently.) Furthermore,

15 Introduction xiii FIGURE I.1 Tweets per Month on Twitter: Predicted Growth. FIGURE I.2 Baby Boomers Are Adopting Social Media at a Far Greater Pace than Younger Users. Source: Accenture 2009 Consumer Electronics Products and Services Usage Report.