Social Business Journal - Issue 02

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THE A-TEAM.
ITs the advocacy era and ADVOCATES ARE THE SUPERHEROEs
in tHE FAST-PACED WORLD OF Performance Brand Marketing P10
PLUS: CREATE AN
advocacy PROGRAM
IN 7 steps P13
3 2 ISSUE 02 Q1 2013 THE SOCIAL BUSINESS JOURNAL
ADVOCATES ARE BETTER
MARKETERS THAN YOU.
Social is about authentic engagement, promising unprecedented access
to customers (900M Facebook users) and insights (350M tweets/day).
But how do you reach your audience with just a handful of community managers?
To scale social engagement, smart brands are mobilizing advocates, partners,
and employees to engage with their audience and spread their message.
To learn more, sign up for a 1:1 tour at dachisgroup.com/tour
of internet users consider consumer recommendations
to be the most credible form of advertising. [ Emarketer, 2011]
of shoppers spend more online after recommendations from
an online community of friends. [Gannett and The Etailing Group, 2009]
Advocates are a more scalable and more trusted source for spreading
your story to the market. It all comes down to trust and money.
ADVOCATE INSIGHT
And Dachis Groups Advocate Insight identifies and ranks a brands advocates
based on their affinity to and interaction with specific social accounts of the brand.
90
%

67
%

PUBLISHER
Jeffrey Dachis
EDITOR IN CHIEF
Dave Gray
MANAGING EDITOR
Lara Hendrickson
CREATIVE DIRECTOR
Bill Keaggy
SENIOR ILLUSTRATOR
Chris Roettger
PROJECT MANAGER
Krystal Spitz
PRINT MANAGER
Lisa Vorst
PRINTER
Stolze Printing
St. Louis, Missouri, USA
ISSN 2166-3742
ISSUE HASHTAG #SBJ02
CONTRIBUTORS
Adam Clark Estes
Claire Gaul
Jacob Heberlie
Peter Kim
Brian Kotlyar
Olga Kozanecka
Kelly Kriegshauser
James Macanufo
W. Scott Matthews
Ted May
Rachel Meyerson
Lauren Picarello
Ray Renteria
Carly Roye
Susan Scrupski
Allison Squires
Rick Vlaha
David Vordtriede
Jeff Wilson
COVER ILLUSTRATION
David Vordtriede
DACHIS GROUP
515 Congress Avenue
Suite 2420
Austin, Texas 78701
USA
AMERICAS: +1 512 275 7825
EUROPE: +44 0 20 7357 7358
www.dachisgroup.com
sbj@dachisgroup.com
Dachis Group helps improve your brand perfor-
mance by measuring and managing your social
engagement via a powerful suite of SaaS tools
and services. The Social Business Journal is a
free quarterly publication by Dachis Group. No
part of this publication can be reproduced, stored
in a retrieval system or transmitted in any form or
by any means (electronic, photocopy, etc.), except
as permitted by the 1976 U.S. Copyright Act,
without permission of the publisher. Requests
can be submitted at sbj@dachisgroup.com.
Any comments? Questions? Suggestions? Visit
dach.is/02-sbj to let us know what you think.
+ D E P A R T M E N T S
+ F E A T U R E S
+ I S S U E 0 2 Q 1 2 0 1 3
+ A B O U T D G & S B J
+ C O N T A C T U S
Copyright 2012 by Dachis Corporation. All rights reserved.
THE
SOCIAL
BUSINESS
JOURNAL
4
6
8
30
35
10
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18
22
24
32
EDITOR'S NOTE
THE COLLABORATORY
ON THE MOVE IN SBI
VIsual THINKING SCHOOL
SOCial BIZ INSIDER
THE ADVOCACY A TEAM
ADVOCACY & SOCIAL CRM
THE CONNECTED customer
JAKub Hrabovsky
milestones in social biz
DISNEY's TWITTERVERSE
UNDERSTAND YOUR AUDIENCE WITH EMPATHY MAPS
a timeline by carly roye, bill keaggy, & chris roettger
BY SUSAN SCRUPSKI
a book excerpt BY DAVE GRAY
DATA VISUALIZATION by jacob heberlie
THE SOCIAL BUSINESS INDEX
a book excerpt BY DION HINCHCLIFFE & PETER KIM
THE BEST OF OUR BLOG
ADVOCACY AT VODAFONE UK: olga kozanecka interviews...
BY DAVE GRAY
BY Brian Kotlyar, Rachel Meyerson, & Lauren Picarello
For global brands, social brings both the promise of
CONNECTING WITH
MILLIONS OF CUSTOMERS.
and the challenge of how to
SCALE YOUR ENGAGEMENT
AND MEASURE BUSINESS IMPACT.
EMPLOYEE INSIGHT
Faced with a limited staff, many brands are turning to their
constituents including advocates, employees, and partners
to scale their engagement across customers, fans, and followers.
is a subscription software service that helps you mobilize
and measure your comapanys staff to spread your message
across social channels and measure brand impact.
To learn more, sign up for a 1:1 tour at socialbusinessindex.com/employeeinsight
Customers increasingly expect you to be in social
channels. They expect you to respond quickly to
their opinions, messages, and complaints.
Welcome to the advocacy era
Social Business makes engagement a necessity
+ E D I T O R S N O T E : D A V E G R A Y
* T H E A D V O C A C Y I S S U E : W H A T S I N S I D E
I
n this quarters issue we focus on
advocates the genuine fans who
spread positive word of mouth for
your brand.
As customers adopt social network
technologies, word of mouth has in-
creased in importance to the point that
today, customers can make or break
a brand by spreading their satisfac-
tion, delight or dismay to thousands
of people instantaneously. With digital
publishing and search engine index-
ing, one consumer opinion may rapidly
reach over two billion people online.
Today, brand marketers truly have
no choice customers increasingly
expect you to be in social channels.
They expect you to respond quickly
to their opinions, messages, and
complaints. Unfortunately, most
brands are woefully understaffed
and under-budgeted to engage at
scale successfully. But some brands
have succeeded, and even excelled,
by earning the energy and loyalty of
advocates, both inside and outside
their organizations. True advocates
cannot be bought. Their energy and
loyalty must be earned. In this issue
of The Social Business Journal, we
highlight some stories, strategies,
and tactics* that will help you create
strong social advocacy programs for
your brand.
Enjoy the issue your feedback is
encouraged and appreciated. I
Best,
Dave Gray | @davegray
STORIES | Imagine what youd do if your

Facebook wall gets overrun with negative
comments. Got advocates? PAGE 10
STRATEGIES | Jakub Hrabovsky talks about
completely changing social strategy, from mar-
keting messages to true engagement. PAGE 14
TACTICS | Dion Hinchcliffe & Peter Kim
explain the four minimum capabilities a
social CRM solution should have. PAGE 18
The best of the Collaboratory
SAPs slow start
in social
European diversity
makes social difcult
Be curious,
not furious
Building successful
advocacy programs
Accelerate using
employee advocates
+ B L O G R O U N D U P : D A C H I S G R O U P. C O M / B L O G
By Kate Rush Sheehy
Former Strategist
Austin
@katerushsheehy
By Olga Kozanecka
Consultant
London
@olga_nk
By Peter Kim
Former CSO
Austin
@peterkim
By Susan Scrupski
Founder, SBC
Austin
@ITSinsider
By Dion Hinchcliffe
EVP Strategy
Washington D.C.
@dhinchcliffe
F
or the past ve years, there has
been a reoccurring theme of SAP
giving social the cold shoulder. Were
starting to see them embrace the
principles of social business, but
could they be doing it all wrong? For
starters, SAP has chosen to begin
their social journey with two sub-par
social platforms that have seen little
traction in large enterprises. Social is
about reinventing the way we work,
and until SAP grasps that, they will
never capture the human potential of
social media.
I
f European consumers are among
the worlds most connected, why are
their brands known for being so so-
cially clueless? DG London Consultant
Olga Kozanecka explores the reasons
why most European brands are falling
short of engaging their socially savvy
customers, and how one company is
doing it right. Because these brands
havent invested the time or resources
into social, they havent found a way
to capture the linguistic and cultural
differences of Europes diverse geog-
raphy. Only when you blend central
and local efforts can brands capture
an audience as connected and social
as Europes.
P
ublic forums are open doors for de-
tractors. Whether online or ofine,
there will always be individuals who
try to build themselves up by belittling
others, and the Internet is their favor-
ite playground. From bloggers looking
to get hired after publicly insulting a
brands social media campaign, to
online fans who turn against a com-
pany that wont hire them, there is
no shortage of virtual jerks. Peter Kim
has seen it all and offers his advise for
dealing with the noise: dont get furi-
ous, get curious.
I
ts no news that creating a major
advocacy program takes plenty of
time and money, but could that be
the understatement of the year? DG
Managing Strategist Kate Rush Sheehy
recently attended a crash course for
marketers hosted by WordOfMouth.org,
where she learned just how much time
and money it can take. Brands tend to
get discouraged when time passes and
they dont see immediate results, but
some of the most successful ambas-
sador programs have taken years to ac-
complish, not to mention huge chunks
of marketing budgets. Dont give up! A
successful advocacy program is always
worth the hard work.
O
ne of the most under appreciated
components of social business is
actually your most accessible re-
source for achieving social success.
Employee advocacy happens when
a business carefully cultivates their
employees, and turns them into effec-
tive, empowered participants. Having
a small group of social managers to
engage, interact, and help millions
of customers just isnt feasible, and
automated engagement tools practi-
cally kill all previous efforts. Not only
are your employees experts on your
business, but they are also a plentiful
resource made up of people who have
vested interest in seeing your com-
pany succeed.
Read the entire blog post at dach.is/QPrpwh Read the entire blog post at dach.is/QPqBr4 Read the entire blog post at dach.is/QPrGPG Read the entire blog post at dach.is/QPrjoe Read the entire blog post at dach.is/QPr24S
EDITED BY CARLY ROYE & LARA HENDRICKSON
ILLUSTRATIONS by CHRIS ROETTGER
Read the entire blog post at dach.is/QPqT16
Five keys to great
employee advocacy
By Brian Kotlyar
Senior Strategist
Austin
@bkotlyar
C
onsumers dont trust companies
they trust other consumers.
Brands around the world are realizing
that customer advocates are essential
in turning prospects into buyers, but
could their most valuable advocates
be right in the mirror? Employee
advocates are the untapped support
system that companies are missing out
on. Not only are employees experts
on the companys products, but they
represent a trustworthy relationship
between employer and company to the
rest of the world. DG Senior Strategist
Brian Kotlyar explores ve key factors
to successfully running an employee
advocacy program, and determining
whether or not your company is ready.
A Hologram
for the King
By Dave Eggers

Zo Scharf (@zoescharf)
Designer, St. Louis
Good to Great: Why
Some Companies
Make the Leap...
and Others Dont
By Jim Collins
Cynthia Paum (@cpaum)
Strategist, New York
Social successes on SBI
+ S O C I A L B U S I N E S S I N D E X . C O M : A S N A P S H O T O F M O V E R S
BY ALLISON SQUIRES & ADAM CLARK ESTES
GRAPHICS by RICK VLAHA & JEFF WILSON
E
ach week, The Atlantic Wire and Da-
chis Group take a look at whos making
a move in social, how theyre engaging
and why it matters. This article showcases
a few brands highlighted in the weekly
Top 20 in Social Media series, which
can be found at dach.is/PpuHM7.
Over the past few months, we saw
brands swing up and down on the Social
Business Index. From riding the coattails
of the Instagram announcement to the
excitement of a brand announcing new
products or events, spring brought some
interesting shifts in the social sphere.
A few common takeaways from brands
making big moves:
1. A diligent and effective social media
team that responds quickly and con-
sistently shows fans they can reach
the brand via social
2. Providing fans with interesting and
relevant content inspires inuencers to
syndicate content to their friends
3. Leveraging multi-media content related
to a current event engages and excites
a brands audience
4. Adding a social component to a brand
campaign greatly amplies marketing
efforts in the online space
The following excerpts were written by
Adam Clark Estes (@adamclarkestes) at
The Atlantic Wire.
WWE
Remember wrestling? The fake sport
company WWE (formerly WWF) that
hit its peak popularity in the 1990s is
surging in social media in April thanks to
innovative uses of the theatrical elements
that make wrestling entertaining in the
rst place. WWE jumped 16 spots on the
Social Business Index and entered the top
ten. The lift was catalyzed by two televi-
sion events (Wrestlemania and Monday
Night Raw), but what really caused the
rankings shift was the interplay of current
and past wrestling legends on the screen
combined with an online content blitz,
said Dachis Group strategist Brian Kotlyar.
And blitz is a perfect word to use, as
WWE didnt necessarily do anything par-
ticularly innovative in order to build buzz
around their events. Their social media
team was just plain diligent and efcient.
The company tweets roughly once an
hour a mix of links back to photos and
videos and retweets of WWE wrestlers
content and updates its Facebook page
at least half a dozen times a day. The
frequency and well balanced variety end
up giving voracious fans just the excite-
ment they crave.
Forever 21
Forever 21 is creeping towards the top
100 having boosted itself 22 spots
in the ranks this week landing at No.
136. Believe it or not, it was all about
the weather for the fast-fashion retailer.
Rather than simply adding updates to
Facebook, Forever 21 takes it a step
further and provides its fans with useful
content like fashion tips and notices
about sales. Whether its colored denim
or colored hair chalk, fashion followers
have a lot to dive into on Forever 21s
Facebook page, says Dachiss Lauren
Picarello. One post featuring colored
dresses earned 10,000 likes and over
300 comments, in part thanks to the
brands expanding global presence. Pi-
carello added, We expect to see Forever
21 continue gaining traction in the sum-
mer months across social platforms as
the engaging content stream continues
its shift from colored denim to colored
bikinis.
Wendys
This was the week of Instagram and
Wendys managed to get a boost in
the rankings thanks to a single photo.
Zooming up 14 ranks to No. 103, the
fast food chain simply put an Insta-
gram photo of fries dunked in a Frosty
on Facebook, and fans responded in
droves. Nearly 7,000 of them in fact.
What really helped is posting the photo
on Wendys subsidiary Frosty page for
its two million fans to see. It wasnt so
much that the picture was pretty, Dachis
analyst Allison Squires explained: Both
the Wendys and the Frosty Facebook
pages appealed to their audience
through this picture by sparking a play-
fully delicious debate. But seriously
have you ever tried it?
Starbucks
Did you know that the Frappuccino
Facebook page has 9.3 million fans?
Its true, and theyre active. Starbucks
broke back into the top 10 this week
thanks to a well executed Frappuccino
promotion and a community service
campaign. For the former, Starbucks
invited its customers to post Twitter and
Instagram images of their favorite frozen
coffee treat during a weeklong Frappuc-
cino Half Price Happy Hour promotion,
and those that added the hashtag #frap-
puccinohappyhour had the chance to
win prizes. There was also the chance
to create your own Frappuccino mixes
online and share them with friends.
Starbucks takes deliberate measures to
create social components for many
investments in their marketing portfolio,
a lesson all companies should learn,
says David Mastronardi of Dachis
Group. In addition to Starbucks
employees launching local projects, the
Vote Give Grow program used online
ballots to help give out $4 million in
funding to 124 non-prots. Because
the ballots were shareable, the program
drummed up some good chatter across
social media platforms. And all for a
good cause! I
As the world becomes an increasingly noisy space, brands continue to look for
ways to scale their social engagement and measure performance. The Social
Business Index, a free site run by Dachis Group, has quickly become an industry
benchmark for Social Business performance, measuring and ranking the social
conversations across 30,000 companies and 100 million social accounts.
+ WHAT WE RE READI NG:
BOOKS & BLOGS
I frequent Thedaily
wh.at & adweek.com/
adfreak for industry
and cultural news.

Nate Custard (@natecustard)
Associate Creative Director,
Lincoln
The Age of Spiritual
Machines: When
Computers Exceed
Human Intelligence
By Ray Kurzweil

Jed Singer (@jedsinger)

Engagement Manager,
Philadelphia
The Art of the Start
By Guy Kawasaki

Joe Pinaire (@joeknowsjoe)
Associate, Austin
I
Imagine this scenario: Its 8:00 a.m. on January 12, 2012 and the half dozen social
media staff members at a company called Triple T Teas wake up to nd the brands
Facebook page overrun with negative comments. The usual positive conversation
has been replaced by curiosity and outrage. Fans are engaged in a back and forth
debate are Triple T Teas unhealthy? While some are questioning the basic ingre-
dients of Triple T Teas, many more are watching from the sidelines. How does a
staff of six begin to systematically address this public relations issue taking root on
a social platform in front of such an enormous audience?
BY Brian Kotlyar, Rachel Meyerson, & Lauren Picarello
ILLUSTRATIONS BY DAVID VORDTRIEDE
THE A-TEAM.
ITs the advocacy era and ADVOCATES ARE the SUPERHEROEs
in tHE FAST-PACED WORLD OF Performance Brand Marketing.
10
1. dene objectives
Advocacy programs often suffer from a
lack of clear objectives at the outset and
a lack of solid measurement throughout
their lifecycle. Setting clear brand and
business outcomes that frame what
precisely the program is expected to
inuence will do two critical things: rst,
it informs the strategy of the program. If
you understand your Key Performance
Indicators, you can plan your activities to
inuence them efciently. Second, it en-
ables ongoing optimization. If an activity
isnt affecting your goals, then you can
make adjustments much more rapidly.
2. identify advocates
In identifying advocates, we recom-
mend that organizations cast a broad net
and consider every possible advocate that
could be benecial to the organization.
Given the myriad forms advocacy can
take, it rarely makes sense to limit the
scope of the search at the start.
It is also important to remember that
advocates dont exist solely outside the
walls of the organization. The rise in
credibility of regular employees is one of
the single most important ndings from
the 2012 Trust Barometer study. Employ-
ees can create inuence online with cred-
ible expertise, and a direct relationship to
the brand. Dell, for instance, has enabled
thousands of employee advocates to help
engage with consumers, build trust, and
produce results.
A few common sources of advocate
candidates are NPS surveys, loyalty
program databases, look-alike targeting,
frontline employee referrals and primary
research on social media outlets. An
emerging means of nding advocates,
is to employ software-based aids. Dachis
Group offers a SaaS application called
Advocate Insight that helps organizations
identify a pool of potential advocates
based on big data processing of social
media activity. This application can jump-
start the creation of an advocacy program
by streamlining the identifying stage of
the advocacy process.
what is advocacy?
For brands, advocacy is the activation
of people who are, or could be, pas-
sionate enough to engage on behalf of
the brand and ultimately expand the
customer base.
Advocacy goes beyond the idea of
inuencer outreach and beyond even
word of mouth as a driver of commercial
transactions. Advocacy in the age of social
media encompasses the full gamut of
potential positive outcomes that could be
driven by a passionate and empowered
individual. These outcomes range from
word of mouth referrals, new product
ideas, to crisis management and most
importantly brand building.
what advocates do
For some, advocacy is very narrowly
dened as a source of referrals, a way to
distribute samples, or a source of product
recommendations. Each of these is
measured for its direct ability to inu-
ence sales. This is the wrong way to look
at advocacy. Others include research as
a potential value of advocacy. Companies
like Communispace and Drillteam pio-
neered the use of large communities of
users as a viable platform for product and
marketing research at large brands.
A new era of advocacy has begun.
None of the previous roles of advocates
have been discarded. Sampling still
matters. Referral programs still matter.
Research communities remain critical.
Nonetheless, the era of advocates as
brand builders and reputation manag-
ers has arrived. As individuals live their
lives online sharing content, liking
brands, or listening to music they are
also engaging in the endorsement and
co-creation of brands. This is both an op-
portunity and a threat for most brands.
The best way to grapple with this trend
is through advocacy programs. These pro-
grams marshal individuals into groups
and systematically activates them on be-
half of the brand to serve business needs.
This could be for something as simple as
liking brand content, as difcult as aid-
ing in customer service, or as essential as
responding during a brand crisis.
11:00 a.m.
Triple T Teas sends a message to its
advocate community asking for help
combating the spreading social media
crisis on its Facebook page. Moments
later the Triple T Tea Ambassadors
spring into action. Acknowledging their
high sugar and calorie content, dozens
of conversations between advocates and
risks and opportunities
in a social age
Many companies, like Triple T Teas,
have embraced social media as a place to
interact with customers, prospects and
interested bystanders in novel ways. Over
eight million brands have established
pages on Facebook alone. With such
unprecedented access, however, come
challenges. How can an organization
authentically engage with such a large
audience? What happens when internal
business process breaks down? Or a crisis
occurs? The rules are changing and large
organizations must change with them.
why we need advocates
10:00 a.m.
Triple T Teas marketing decision mak-
ers hold an emergency meeting. What
is happening on the Facebook page and
most importantly, what do we do about it?
The typical social media PR playbook is
quickly activated with a variety of tactics
employed, ranging from a press release
and inuencer outreach tactics to direct
social media communications.
However, there is an underlying is-
sue with all of these tactics scale. If
a small team of community managers
attempts to engage with thousands of
outraged individuals, their efforts are
quickly overwhelmed. Realizing this,
Triple T Teas turns to their community
of advocates known as the Triple T Teas
Ambassadors. Identied and recruited
by Triple T Teas for their passion and
loyalty for the brand, this group of
individuals holds the key to an authentic
and scalable response to the crisis. Each
Ambassador is briefed and empowered
to spread accurate, credible messages to
the wider community.
Advocates are critical to the modern
organizations marketing mix for two
primary reasons. The rst weve already
outlined using the story of Triple T Teas.
To get the outcomes that organizations
desire, marketers must design programs
and tactics that have the ability to scale
to serve the needs of social media.
The second reason for the ascen-
dancy of advocacy is the simple issue of
trust. Studies in recent years highlight a
frightening trend for large organizations
consumers no longer view traditional
sources of information as trustworthy.
Edelman Digital, an agency specializing
in public relations, has conducted a trust
study every year for the past 12 years,
and it is now clear that the world has
passed an inection point in the nature
of trusted communications.
According to the 2012 Edelman
Trust Barometer, international attitudes
about trust have shifted dramatically.
For example, CEOs are now considered
among the least credible spokespeople
in the world the largest drop in Trust
Barometer history. Experts and aca-
demics have seen a drop as well. The
message is clear the general popula-
tion no longer trusts business leaders
to tell the truth. As CEOs become less
of a source of credible information
people are turning to their peers for
trusted information. A person like me
saw the biggest increase in credibility
since 2004 in the most recent study.
A similar rise in credibility was found
among regular company employees,
now featured as fourth on the Trust
Barometer list.
Trusted communications also impact
business results. E-Tailing Group
recently noted that six percent of online
shoppers spend more after receiving rec-
ommendations from friends. In another
study, Nielsen Global found that 90% of
consumers said recommendations from
friends were the most trusted form of
advertising. Coming in second (at 70%)
were consumer opinions shared online.
All of this points to consumer and em-
ployee advocacy as the necessary levers
for brands success online today.
The Edelman 2012 Trust Barometer report shows huge changes in spokesperson credibility in just
the last year. SOURCE: EDELMAN DIGITAL DATA !EDELMAN DIGITAL CHART BY TED MAY
UTILIZE advocacy in 7 steps:
DEFINE OBJECTIVES > identify > Recruit > ACTIVATE > amplify > MEASURE > learn& OPTIMIZE
Data captured by Dachis Groups Social
Performance Index SaaS product makes
clear a dramatic rise in negative market
signals (the debates emergence) and the
significant drop immediately afterward
(the advocates swift action).
CHART BY TED MAY
Continued on page 31
nutrition debaters ensue. Triple T Teas
follows a steady drumbeat of carefully
written broadcast communications and
feeds a steady diet of trustworthy, ac-
curate talking points and insider updates
to its advocacy community.
The result? A rapid decline in crisis con-
versation and a calm exit from crisis mode
to business as usual in a matter of hours.
Companies that have endured far worse
crises in recent months Chapstick,
Goldman Sachs and JP Morgan Chase to
name a few could stand to learn a thing
or two from Triple T Teas tactics.
How can other organizations leverage
advocacy to obtain similar results?
HERES HOW AN ILLUSTRATED GUIDE ON HOW TO
W
ith social business, we now have the ability to see the true value of ad-
vocacy and to use it as a lever to drive performance. At Dachis Group,
weve broken down advocacy programs into a seven stage maturity curve
that enables us to quickly implement advocacy programs and prove business
outcomes at large organizations.
The creation of an advocacy program is a seven step process: dene objec-
tives, identify, recruit, activate, amplify, measure and learn and optimize.
Credibility of CEOs and government officials plummet while
peers and regular employees see dramatic rise
As head of Social Media and Web Relations at
Vodafone UK, Jakub Hrabovsky is responsible
for digital and social media reputation management,
online communities, and customer care. Dachis
Groups Olga Kozanecka met with him in London
to discuss the importance of customer advocacy.
advocacy
Anytime,
+ S O C I A L B U S I N E S S P R O F I L E : J A K U B H R A B O V S K Y
anywhere
INTERVIEW BY OLGA KOZANECKA
PHOTOGRAPHY BY Claire Gaul
Olga Kozanecka: How do you dene
advocacy?
Jakub Hrabovsky: I see advocacy as
the way our customers and employ-
ees are talking about and promoting
our brand and services.
Do you think advocacy has evolved
alongside the digital and social
landscape?
I think advocacy as a phenomenon
has always been around, regard-
less whether weve been commu-
nicating ofine or online. People
have always been expressing their
opinions especially about topics
they feel strongly about thats
why successful brands couldve
been successful long before the
internet existed. Social media is a
new channel but brand related con-
versations have always been taking
place over the phone, face-to-
face, etc. What is different nowa-
days is that we can have conversa-
tions with our advocates wherever
they are, and in real time, as those
conversations are taking place out
in the open. And of course those
advocacy messages spread much
more easily now across the social
universe, in effect making advo-
cates more powerful.
How do you see the relationship
between advocates and inuencers?
I think that in the social media
world any customer interacting with
your brand could potentially be an
inuencer. It really depends on how
interesting their story is. Social
media is all about the quality of
the content you share. This I think
drives peoples online credentials
and authority they get, and makes
them inuential in a particular area.
The inuence they have can be
positive for a brand, or negative.
By general rule, inuencers have
a large following on social chan-
nels precisely because what they
share is seen as interesting and
relevant. Advocates on the other
hand are your brand loyalists
people who are passionate about
your brand and your products, and
who at free will spread a good word
about your brand, albeit often at
a smaller scale. Both advocates
and inuencers can also help you
identify issues you might have not
known about, because social media
give them the opportunity to share
instant feedback. Its important to
listen and learn.
What types of advocacy behaviors
do you see exhibited among
consumers?
For a telecommunications organiza-
tion like Vodafone, when it comes
to social media, around 90% of
all the incoming trafc is customer
service related, either reporting
a problem or an issue or asking
for help. The positive feedback
comes when your brand recognizes
there is a conversation happen-
ing, engages if appropriate and
delivers against customers needs.
So whilst the initial contact that a
customer makes with us through
social media might bear negative
connotation or sentiment, we see
a great opportunity to turn the
negative into a positive response.
Reacting in real time, leading with
support and help, is the main op-
portunity to convert a detractor into
a potential advocate. I think social
media as a channel is particularly
suitable for this purpose because
more often than not people will
reward you and spread good word,
which strengthens [a] companys
reputation. The more traditional of-
ine channels dont enable similar
real-time feedback.
Can you think of a successful exam-
ple of an advocacy program, either
within Vodafone or more generally
within the European market?
I think Costa Coffee is a great
example of an advocacy program in
the UK market. The company has
completely changed their strategy
when it comes to social media
engagement, in particular through
Facebook. Whereas in the begin-
ning they were trying to engage
with customers by communicating
marketing messages on their social
channels, they went to create a
real online haven for coffee lovers,
focusing on great content and the
feeling of enjoyment that good cof-
fee brings. The social element and
joy of having a coffee with a friend
were crucial. What resulted was
an online community of fans, who
became well equipped to act as
advocates of the brand and share
the Costa story throughout their
networks. Their Facebook page
literally went from a couple of hun-
dred people to over 500,000 in a
very short time. I see this as a tre-
mendous success for the brand and
a sign that theyve done something
very right in terms of activating
their customers and turning them
into advocates.
So how have advocates played a
role for Vodafone?
Where we are nding social me-
dia particularly benecial is call
deection and the ability to utilize
peer-to-peer help and community
advocacy. We are in a place right
now where we can quite comfort-
ably say that, and this is based on
a thorough internal study as much
as on phone surveys, that our Web
relations approach that weve been
practicing for the last three-and-a-
half years has resulted in 20% call
deection, which literally means
saving millions of pounds for the
brand. In terms of community
building and advocates cultivation,
the return on investment is clearly
visible. What weve been doing all
this time is using advocacy outreach
tactics on our own forum and across
all available social media channels
where were continually nurturing
our super-users and inuencers who
are providing expert advice to the
Vodafone community by offering
knowledge and hands on expertise.
So our focus lies in making sure the
super-users feel appreciated and
recognized for the great work that
theyre doing simply out of their
passion for our brand and their
interest in technical matters.
Our web relations
approach that weve
been practicing for the
last three and a half
years has resulted in
20% call deection,
which literally means
saving millions of
pounds for the brand.
Jakub Hrabovsky: Reacting in real time, leading with support and help, is the main opportunity to convert a detractor into a potential
advocate. I think social media as a channel is particularly suitable for this purpose. PHOTO BY Claire Gaul
Customers must be able to establish
a social identity and should be able to
interact with other customers as well
as the companys workers in the social
CRM environment.
A social venue
@Joejean
Contests
!"#$ &'(#
!
"#
$%&
Joint product design
'( !"#*&
Conversation
driven
Good social CRM tools direct activities
of a social CRM environment into
accumulated, discoverable, and reusable
forms. The artifacts of these activities are
customer solutions, product suggestions,
and sales opportunities.
Shared collective intelligence
The SOCIAL way
Social CRM is more effective and useful
when participation mechanisms help
guide inputs with specific requirements
and toward productive goals.
Customer participation mechanisms
Deploying social tools to interact with
online customers en masse will enable
thousands of customers to engage.
Scaling mechanisms are essential for
social CRM to produce effective results.
Conversational scale
Can you see me now?
B
IG
AD
!
$
W
h
o
le
G
r
o
c
e
r
s
Honk if you like billboards!
B
IG
A
D
H
E
R
E
!
H
E
Y
Im a really big ad
Y
O
U
!
The OLD way
$
$
$
Transaction
driven
Innovation and
prediction markets
Social customer support
SALES
Collects information from
transactions building a limited
database around existing
customers, theres no integrated
way to garner prospect info.
SALES
Are interaction-based
and aimed as much
at potential customers
as existing ones.
MARKETING
Revolves around
conversation and
engagement.
POSITIVE FEEDBACK
Gets amplified to thousands
even millions online while
negative sentiment is quickly
detected and addressed.
MARKETING
One-way advertising is less
effective as consumers have
many other sources of
information and influence.
SUPPORT
Dynamic and available via
multiple platforms, accessible
when & how the customer likes.
@Jeanjeans
)*$ #+,,,
*"-. /-#'0#,
LIMITED FEEDBACK
Surveys provide limited feedback even as
customers share experiences via word of
mouth and unmanaged social channels.
SUPPORT
Customer service often has limited hours,
often with service reps following scripts,
giving customers limited, shallow support.
12/ 3".#4
SOCIAL CRM
via via
Building advocacy Say goodbye to rigid processes.
Say hello to Social CRM.
by DION HINCHCLIFFE & PETER KIM
VISUAL EXPLANATION by chris roettger Excerpted from the
book Social Business
by Design, published
earlier this year by
Jossey-Bass.
19
I
n 2011, only 6 percent of organi
zations had implemented social
CRM, although a survey of
thirtythree hundred companies in
late 2011 determined that 56 percent
are planning to do so. Research nrm
Gartner estimates that social CRM
will be a $ billion industry by the
end oI zoz, reBecting increasing
adoption by companies as a common
strategy and replacement for existing
CRM approaches. By moving proven
methods, use patterns, and features
into a usable tool set, social CRM
promises to be a predictable, reliable
model, guided by the tenets of social
business, for applying social media to
customer relationships.
Many of the social media tools
and communities that companies
have deployed already to meet CRM
needs are good examples of social
CRM, despite the industrys focus
on optimized, predesigned tools.
Whenever social media let customers
have a relationship with a business
in other words, interaction that
is publicly visible to other customers
whenever possible social CRM
can occur. The old CRM model, a
closed, asocial mode of customer
interaction, is the antithesis of social
CRM and much less likely to lead to
rewarding outcomes for the business
and its customers.
Social CRM paints a vision of
creating a deeper, more engag
ing communitybased relationship
with an organizations customers
and prospects instead of the tra
ditional approach where custom
ers are relegated to a welldenned,
rigid communication management
process. Because it is one part online
community, one part crowdsourcing,
and one part customer selIservice,
social CRM can create an emergent,
collaborative online partnership with
customers that can result in an array
of improvements to business perfor
mance in the customer relationship
process. Beyond being just for the
benent oI the business, however,
customers in social CRM approaches
tend to have more control over the
customer care process, have more
sustained contact with the organiza
tions they care about because they
are more likely to obtain what they
need, and use selIservice, mutu
ally visible participation, collective
history, and social conversations to
assist each other as much asand
typically much more than the clas
sic CRM model ever could or even
was intended to.
Like many aspects of social busi
ness, however, the crowd often has
its own thoughts and feeling about
how work gets done. For social
CRM, this necessarily entails less de
terministic control and outcomes at
times, although many solutions now
zero in on and optimize for predict
able and reliable behavior, even if
they reduce innovation. The Intuit
example in Chapter Three of Social
Business by Design of encouraging
customers to help other customers
within Live Community is a prime
example of the customer care aspect
of social CRM in action. A canonical
pattern here is this: a social CRM
environment will let a visitor ask
a question publicly and let anyone
else in the community, customer or
employee, answer it.
Social CRM tools can also support
processes that generate new ideas
from a community. Dells IdeaStorm
allows customers to try to solve the
companys problems for user and
company benent.
For example, users generate an
idea such as preinstalling specinc
software packages, and the commu
nity votes on its merit. At the core of
making the process work is the ques
tion of who decides what the right
oBcial" answer to a customer prob
lem is or which ideas will be selected
and how nonemployee submitters
will be compensated. These are
questions that organizations need to
work through in order to transition
their customer relationship manage
ment to a social business model. We
explore how best to determine moti
vations and rewards for participants
in the social business design in Part
Three of the book.
By its very nature, social CRM is
asymmetrical when it comes to levels
of participation; there are always
many more customers than work
ers. Success here is denned by how
eBectively the resulting social busi
ness solution deals with the number
of customers who will interact with a
business through these new channels
while still governing the relationship
to make it consistently responsive and
successful from a customer perspec
tive. Participation (Ior example, gen
erating user support questions) must
be balanced with equally eBective
issue communication and resolution,
operating within the requirements of
corporate policy and commercial law
guiding marketing, corporate commu
nications, customer service, consumer
privacy, and so on.
Get Satisfaction is a prime exam
ple of a targeted social CRM service
designed to address the problem
oI asymmetry in the companyto
customer relationship. Get Satis
faction helps over sixty thousand
organizations deal eBectively with
conversational scale" Irom Fortune
,oo enterprises to small startups
while having consistent policies and
procedures for responses to custom
erinitiated social engagement.
Conversational scale is a signincant
challenge for companies without the
right social business tools, because they
are so outnumbered by the size of their
communities. Although social CRM
ultimately includes all customer rela
tionship touch points, Get Satisfaction
focuses on customer service inquiry
resolution. When a customer arrives
at a Get Satisfaction social CRM
community looking for help, he or she
will ask a question. Get Satisfaction
realizes that a million questions from
a million customers are far too many
to deal with eBciently. Consequently,
it puts similar questions into the same
bucket. If someone says, Im having
problem Xwith your product," and
that question has been asked before
in similar fashion, the customer is
asked to combine his or her question
with that bucket. Because its a social
environment, everyones questions can
be seen and combined when possible.
Instead of talking to customers about a
million individual issues, only perhaps
a few thousand total conversational
buckets exist instead, each of which
can have a conversational thread on
how to resolve the issues contained in
it. In fact, thats exactly what happens
after enough collective intelligence
is built up in the community: when
a question is asked and then put in a
bucket with other common questions,
a solution and oIten even a set oI
solutions is usually waiting Ior the
customer.
Given that early social CRM provid
ers have Iocused on only a specinc
phase of social CRM, it begs the ques
tion of the full range of functions that
a social CRM solution should have.
As with most other aspects of social
media, there is now a wide range of
social CRM tools, large and small,
simple and sophisticated. Therefore, as
an organization grows, it will want the
option of expanding the nature of the
social relationships it maintains with
the marketplace, whether market
ing, sales, customer service, product
development, or other business func
tion. The best social tools arent overly
structured; social media are dynamic
and highly Buid, and it's because oI this
characteristic that so many diBerent
outcomes are possible, so tools must
be Bexible and openended to accom
modate a wide range of outcomes.
A
t a minimum, an eBective
social CRM solution should
have four capabilities:
1. Asocial venue. Customers must
be able to establish a social identity
and perceive other customers and their
contributions, as well as be able to dis
tinguish the companys workers from
other customers. They should be able
to interact with both types of parties
in the social CRM environment.
2. Customer participation mech!
anisms. Although generalpurpose
discussion Iorums are openended
and can be used for many types of
participation, they
allow customer
contributions to
head in any direc
tion, productive or
otherwise. Alittle
structure, though
not enough to kill
valuable emergent
outcomes, can go
a long way. Social
CRM becomes
more eBective and
useful when par
ticipation mecha
nisms help guide inputs with specinc
requirements and toward productive
goals. These might include specinc
features to enable transactions around
social customer support, competitive
contests, innovation and prediction
markets, or joint product design.
Some services, such as Kluster, pro
vide nnely tuned controls that can be
adjusted to nnd the right mix oI struc
ture and open participation. Newer
social CRM tools increasingly have
pluggable participation applications
that let third parties oBer rapidly de
ployable, industryspecinc customer
relationship solutions very similar
to Apples successful App Store but
aimed at useful customer relationship
scenarios.
3. Shared collective intelligence.
Social media are most successful for
businesses when focused participation
creates a shared repository of knowl
edge from combined user participa
tion. Good social CRM tools direct
activities of a social CRM environ
ment into accumulated, discoverable,
and reusable forms. The artifacts of
these activities are customer solu
tions, product suggestions, sales
opportunities, and so on. Successful
social CRM creates relationships that
get better the more people use them.
4. Mechanisms todeal withcon!
versational scale. Many businesses
still worry that deploying social tools
to interact with online customers en
masse will create unexpected costs or
overhead as thousands and, in some
cases, millions oI customers try to
engage with them. Since most existing
social media tools have not been de
signed explicitly to deal with this, this is
an area where social CRM tools shine.
Servicelevel agreements that guarantee
that customers will get a response if
the community at large doesnt deliver
or tools that bucket identical inquiries
together, as well as other scaling mecha
nisms, are essential for social CRM to
produce eBective results.
Social CRM will be the primary
way that traditional organizations
will transform customer relation
ships in the social business era.
However, the biggest barrier to
adopting social CRM is not the
technology, the tools, or customers:
rather, it's the mindset about what
CRM can and should accomplish.
Social CRM is not about managing
customer records or maintaining
email blast schedules. Its about
forming a close partnership where
the organization retains a leadership
role and the use of social media re
sults in the creation of vibrant cus
tomer community relationships. The
elimination of decades of inadequate
channels of customer communica
tion will unleash a sudden tide of
opportunities, as well as challenges,
in the move to social business. I
Social CRM paints a vision of creating
a deeper, more engaging community
based relationship with an organizations
customers and prospects instead of the
traditional approach where customers
are relegated to a welldenned, rigid
communication management process.
Learn more about
Social Business
by Design here:
dach.is/sbdbook.
WHAT A LONG, STRANGE TRIP ITS BEEN
(AND ITS ONLY JUST BEGUN)
BY CARLY ROYE & BILL KEAGGY INFOGRAPHIC BY CHRIS ROETTGER
!"#$%&'($%
"(
%')"*#
+,%"($%%
Early 2000s
THE BEGINNING
July: ARPANET
commissioned
by DoD
CompuServe
introduces
online chat
August: WWW
released by
CERN
August: Pizza Hut
online orders
June: AOL
launches
July: Amazon
goes live with
user-generated
reviews
November: TheGlobe.com
allows personalization,
content publishing, and
interaction with other users
Spring: Six
Degrees, the
first social
network, is
launched
August: Blogger
debuts, allowing
easy publishing
to the Web.
April: The
ClueTrain
Manifesto
April: Dodgeball (precursor
to Foursquare) launches location-
based social networking
Crowdsourcing
& communities
September: Delicious debuts
social bookmarking
May: Professional networking
site LinkedIn launches
August: MySpace launches
February: The
Facebook launches
at Harvard
April: Burger Kings The Subservient
Chicken campaign goes live, marking
the beginning of viral brand campaigns
July: Howard Dean
becomes the first
candidate to build
a social network
and fundraising
campaign online
February: YouTube
launches social video
June: The
Dell Hell
story by
Jeff Jarvis
December: Wists launches
as a visual bookmarking /
social shopping site
April: Andrew McAfee
publishes his E2.0 manifesto,
introducing online collaboration
for enterprises
July: Twitter
(social
microcontent)
launches
September:
Facebook becomes
available to anyone
13+ who has a valid
email address
November: Office Maxs
Elf Yourself gets 193
million visits during the
holiday season
June: The first
iPhone is sold
in the U.S.
October:
Dion Hinchcliffe
expands the
definition of Web
2.0 to include
social media
September: Get
Satisfaction launches
February: JetBlue
strands passengers
in grounded planes
April: Dachis
Group is
founded by
Jeffrey Dachis
the term Social
Business is
coined
October: Jive
releases its 4.0
software platform,
defining it as Social
Business software
March: Skittles
home page is a
live Twitter stream
November: Facebook
Pages debut
July: United Breaks
Guitars becomes a
YouTube hit
January:
Foursquare
launches
February: Old Spice
launches its The
Man Your Man Could
Smell Like campaign
March: Pinterest
launches visual
social bookmarking
January:
Arab Spring
January: At its annual
Lotusphere conference,
IBM declares Social
Business the next wave
of enterprise computing
August: Salesforce
embraces social as
messaging platform for
customers and employees
September:
Social Business
Index launches
February: Twitter
rolls out expanded
brand pages
March: Pinterest
surpasses LinkedIn
and Tagged to
become the 3rd
largest social
networking site
March: Facebook
Timeline for brands
is introduced
May: Facebook becomes the
largest tech IPO in history at
$38 a share... so whats next?
March: @ComcastCares
joins Twitter, marking
the rebirth of customer
service online
October: The term Web
2.0 and the Read/Write
Web is coined at the
Web 2.0 Conference,
marking the beginning
of a collaborative
medium on the Internet
July: Yelp
relaunches as a
user-submitted
local review site
1994
1995
1997
1999
2000
2003
2004
2006
2007
2008
2009
2010 2011
2012
1969
1980 1991
2005
+ B O O K E X C E R P T : T H E C O N N E C T E D C O M P A N Y
CUSTOMER
THE
Customers are connecting,
forming networked comm
unities that allow them to
rapidly share information
and to self-organize into
powerful interest groups.
Companies will have to be more
responsive to customer needs and
demands if they want to survive.
CONNECTED
BY DAVE GRAY
PHOTO courtesy U.S.
LIBRARY OF CONGRESS
ILLUSTRATIONS
by DAVE GRAY
This article is excerpted from the book The Connected Company
by Dave Gray, SVP Strategy, Dachis Group, published September
2012 by OReilly. Learn more about it at dach.is/OGUpYC.
The balance of power is shifting
The balance of power is shifting from companies to the
networks that surround them. Connected, communicating
customers and employees have more choices, and more
amplied voices, than ever before. They have more knowl-
edge than ever before. These trends are only increasing
with time. This means the network customers, partners,
and employees will increasingly set the agenda, deter-
mine the parameters, and make the decisions about how
they interact with companies.
A wake-up call at starbucks
In February 2007, Starbucks chairman Howard Schultz
sat down to write a difcult memo.
Schultz, always in the habit of visiting stores around
the world, had noticed that the Starbucks experience was
deteriorating. And in 2006, Starbucks legendary growth
had started to slow. The amount of money customers were
spending was starting to dip.
In his 2007 memo, The Commoditization of the
Starbucks Experience, Schultz laid out his concerns.
Espresso machines, which increased efciency, were too
tall; they created a wall that blocked the line of sight be-
tween customers and baristas, a barrier to conversation
and connection. Flavor-locked packaging, which guar-
anteed fresh roasted coffee in every cup, also made the
stores more antiseptic, depriving them of their rich, avor-
ful, coffee aromas. Streamlining store designs increased
efciency, but many customers perceived them as sterile,
cookie-cutter designs.
We have all been part of these decisions, wrote Schultz.
I take full responsibility myself, but we desperately need to
look into the mirror and realize its time to get back to the
core and make the changes necessary to evoke the heri-
tage, the tradition, and the passion that we all have for the
true Starbucks experience.
The memo was meant to be a wake-up call to the senior
executive team as they embarked on their yearly strategic
planning process. But it soon became much more than
that. A little over a week later, a colleague stepped into
Schultzs ofce. Someone leaked the memo, he said.
Its on the internet.
Schultz was shocked.
Reporters were already calling, but Schultz was too
shaken up to grant any interviews. This had been a con-
dential memo to the CEO and a small group of senior
executives in the company. He couldnt believe any of
them would have done such a thing.
The memo had rst appeared on a blog called Starbucks
Gossip and was quickly picked up by the mainstream me-
dia. The speed at which word spread, and the breadth
and depth of the online conversations that ensued, as-
tonished Schultz:
The day after the memo was posted, the mainstream
media picked it up like a whirlwind. The Wall Street
Journal. The New York Times. The Associated Press.
Bloomberg, Reuters, the Financial Times. Online nan-
cial news sites and independent blogs. Articles quoted
the memo and parsed my words, usually under dour
headlines that implied, or stated outright, that trouble
was brewing at Starbucks. Online, readers posted com-
ments one after the other. Many of them stung. Stunned
as I was that the memo had been leaked, I was also
astonished by the depth of conversation it unleashed,
as well as the speed. It seemed that everyonecustom-
ers, partners, analysts, reporters, industry insiders, and
business experts had an opinion about the memo,
its motive, what it meant for the future of the company
as well as what it said about me as a leader.
Schultz says he took two very important lessons from his
experience. First, nothing can be pre-
sumed condential. Second, Starbucks
did not have a voice in the global
conversation:
The heated online conversations
about the memo were beyond
Starbucks inuence, more
so than any other con-
troversy we had experi-
encedthe good things
about us, our values and the
acts that distinguished us,
these were getting lost in
the public conversation. The
millions of dollars we invest-
ed in local communities. The
health-care coverage and stock we extended to part-
timers, at a considerable cost to the company. While
we never put forth press releases about many of these
initiatives believing they were just the right things to
do we also were not getting credit for them
Our website, with its beautifully designed pageswas
primarily a one-way dialogue, inadequate in the digital
age. Starbucks had no interactive presence online. No
way to speak up quickly on our own behalf, to talk di-
rectly to customers, investors, as well as partners, or let
them talk directly to uswe were losing control of our
story, in the stores as well as the real world.
The leaked memo and its aftermath were a wake-up call
for Schultz. I was not sure where to begin, he writes to-
day, but we had to do something.
Somethings happening here
If Starbucks didnt have a voice in the global conversa-
tion, who did? The Starbucks Gossip blog, the main-
stream media, readers, customers, analysts, and so on
in other words, anyone and everyone who was interested:
the network. And because the memo was interesting, it
cascaded through the network, gaining momentum as it
went, like a tidal wave.
These kinds of cascading effects are common in net-
works. An initial event strikes a chord: its interesting, fun-
ny, sad, disgusting, or enraging. As a result, it is shared,
commented on, analyzed, and argued about. And as it
moves through the network, it is amplied, sometimes to
an exponential degree.
Cascading effects can be initiated by customers
In 2005, Dell learned a tough lesson when they shut down
peer-to-peer customer forums, and Dell customer (and
blogger) Jeff Jarvis, who had recently bought a machine
that almost immediately malfunctioned, expressed his
dissatisfaction on the Web in a post titled, Dell lies. Dell
sucks. Jarvis coined the term Dell Hell, saying Dell didnt
respect [customers] enough to listen to them.
Within a week, Dell Hell was a story in The New York
Times and Business Week. Hundreds of other bloggers
chimed in to tell their Dell Hell stories. At the time, Dell
had an internal policy not to reply publicly to blogs. So the
company remained silent, and the PR nightmare snow-
balled. Sales plummeted, along with Dell s reputation.
Dell has learned from its mistake, and in 2010 launched
a customer listening command center to monitor and
proactively respond to online conversations. Founder and
CEO Michael Dell is active on social media, engaging
with customers directly.
In another incident, Canadian musician Dave Carroll was
traveling on United Airlines in 2008 and had checked his
guitar into baggage, when his plane landed at Chicagos
OHare airport en route to Omaha. He became concerned
as he watched baggage handlers on the runway throwing
guitars. When he arrived in Omaha, he found that indeed
the neck of his $3,500 Taylor guitar had been broken. He
led a claim with the airline, but they refused to honor it be-
cause he had failed to make the claim within 24 hours. For
nine months, he tried to negotiate with the airline. Finally,
in frustration, he wrote a song titled United Breaks Guitars
and released a music video on YouTube. The songs refrain:
I should have own with someone else, or gone by car,
cause United breaks guitars.
The video was an Internet hit. Within one day of its
release, it had amassed 150,000 views. In a few weeks,
that number had risen to 5 million, and in December,
Time magazine listed it as number 7 on a list of top viral
videos of 2009.
Once the video was released, United contacted Carroll to
try to right the wrong, but it seems that their efforts were
too little, too late. Bob Taylor, owner of Taylor Guitars, gave
Carroll two free guitars, and Carroll refused compensation
from United, asking instead that they revise their customer
service policies and give the money to charity. United do-
nated $3,000 to the Thelonious Monk Institute of Jazz as
a gesture of goodwill, but by that point, the damage had
been done.
Cascading effects can be initiated by employees
In 2009, two Dominos workers videotaped themselves
doing disgusting things to food one put cheese up
his nose and mucus on sandwiches while the other nar-
rated and they posted the video on the internet. One
of the employees, who identied herself as Kristy, said,
In about ve minutes itll be sent out on delivery where
somebody will be eating these, yes, eating them, and
little did they know that cheese was in his nose and that
there was some lethal gas that ended up on their salami.
Now thats how we roll at Dominos.
Within the week, the video had garnered over a million
views. We got blindsided by two idiots with a video camera
and an awful idea, said Dominos spokesman Tim McIntyre
to The New York Times.
Kristy Hammonds, 31, later said in a company email that
it was just a joke and that she was sorry. But the damage
had been done.
Cascading effects can be initiated by enemies or competitors
In March 2011, conservative activist James OKeefe,
posing as a member of a Muslim education group, se-
cretly videotaped NPR fundraising chief Ron Schiller
saying republicans were racist and xenophobic, and
that NPR didnt need federal funding. Schiller resigned
and the CEO was forced to step down shortly thereafter.
Cascading effects can be initiated by senior executives
On June 30, 2011, tech blog The Boy Genius Report
published an anonymous memo from an executive at
Blackberry maker Research in Motion (RIM), addressed
to the RIM Senior Management team, starting with the
words, I have lost condence. While I hide it at work, my
passion has been sapped. The letter went on to plead for
drastic changes.
The company issued an ofcial reply, saying, It is par-
ticularly difcult to believe that a high-level employee in
good standing with the company would choose to anony-
mously publish a letter on the web rather than engage
fellow executives in a constructive mannerRIM is none-
theless fully aware of and aggressively addressing both
the companys challenges and its opportunities.
The Boy Genius Report published the response, but at
the same time also published more anonymous letters
from RIM employees supporting the original memo and
accusing RIM of poor leadership, leading to low morale
throughout the company.
The ATM revolt
In September of 2011, Bank of America announced that
it would start charging customers
$5 per month to shop with their
debit cards. In early October, a
27-year-old gallery owner in Los
Angeles named Kristen Christian
set up a Facebook event page,
inviting 500 of her Facebook
friends to move their accounts
to local credit unions by
November 5, which she called
Bank Transfer Day.
Together we can ensure that
these banking institutions will al-
ways remember the 5th of November, she
wrote. If we shift our funds from the for-prot
banking institutions in favor of not-for-prot credit unions
before this date, we will send a clear message that con-
scious consumers wont support companies with unethical
business practices.
Christians groundswell movement quickly snowballed.
Within three days, 8,000 people had signed up to attend
the event.
I was tired, wrote Christian in another post. Tired of the
fee increases, tired of not being able to access my money
when I need to, tired of them using what little money I have
to oppress my brothers & sisters. So I stood up. Ive been
shocked at how many people have stood up alongside me.
With each person who RSVPs to this event, my heart swells.
Me closing my account all on my lonesome wouldnt have
made a difference to these fat cats. But each of YOU stand-
ing up with methey cant drown out the noise well make.
By November 4, the day before Bank transfer Day, at
least 650,000 people had added $4.5 billion to cred-
it union savings accounts. That same week, Bank of
America dropped its plan to charge additional fees.
Power in the network
By changing the way we create, access, and share infor-
mation, social networks are changing the power structure
in society.
Customers like Kristen Christian can pick up a mega-
phone at any time, and if they have a message that reso-
nates with the network, it can gain momentum very fast.
Rogue individuals can target you in sting operations, as
James OKeefe did, or they can simply act stupidly, as the
Dominos employees did.
Disgruntled employees can get their message out
through leaks or anonymous memos like those from
Starbucks and RIM.
However it happens, once something is released to a
network, it can rapidly spin out of control.
Clearly, social networks such as Twitter and Facebook,
which didnt exist in 1999, have gained momentum far
more quickly among the general population than they
have in corporations. Customers are connecting and shar-
ing information at a far faster rate than the companies
that serve them. Theres no question that when it comes
to social networking, companies lag behind their markets.
Networked customers can easily bypass formal channels
to get information and support directly from each other.
Think about where you go when you want to make a
buying decision today. In general, you go to peers rst. If
you want to go to a restaurant, you might go to Yelp! or
Urbanspoon to read recommendations and reviews from
customers. Booking a hotel? If you care about comfort
and service, you might go to Hotels.com to read some
reviews, or if price is a priority, you might go to Priceline,
where you can set your own price. Want to watch a movie?
You can nd the best picks at Rotten Tomatoes, Netix, or
IMDB, where movie-watchers have a voice.
These peer-to-peer conversations subvert traditional mar-
keting channels. Cust omers trust each other more than they
trust companies, who have a vested interest in making them-
selves look good. A 2009 Nielsen study found that 90% of
customers trusted recommendations from other customers
more than any other form of advertising. And customers
have begun to recognize, and exercise, their power.
This power, in and of itself, is not necessarily new.
Customers have always had the power to choose what
they wanted to buy. Customers and workers have always
had the power to share their experiences with friends and
peers. They have always had the power to promote or
demote a company based on what it promised and
what it delivered. Customers have always been able to
vote with their wallets.
But they werent connected to a global network with
the potential to amplify their opinions and experiences to
hurricane strength. And that little thing we call linking
makes all the difference.
Any dictator will tell you that in order to control the state,
you must control the media. So ask yourself: who controls
the media today? And which way are the trends heading?
In February 2010, a nonprot organization called
WikiLeaks began releasing classied cables between the
US State Department and its consulates, embassies, and
diplomatic missions around the world. It was the larg-
est leak of classied material in the history of the world,
and there was nothing the US government could do about
it. Once information is released to a network, it cant be
pulled back. Wikileaks has demonstrated denitively that
no secret, corporate or political, is safe for long.
Weve been saying the customer is king so long that
it has become a clich. And in most cases, our actions
dont match those words. But customers will be kings and
queens, not only in name, but in fact. One by one, cus-
tomers are recognizing the power that comes from a world
in which their choices are innite and their voices are am-
plied. They are connecting. They are organizing. They are
gaining mass and momentum.
Customers dont need to revolt in an active way. All
that is required is for a new company to come along and
offer a better service. Connected customers will become
aware of such services far more easily than they have in
the past, and share the information more quickly, too.
If the new service is interesting, it will quickly cascade
through the network.
Some companies have gured out how to create these
kinds of direct relationships. Amazon allowed customers
to write negative reviews on the stores website since the
day they launched. That was a controversial decision at
the time. Why would a retailer allow anyone to post infor-
mation that would help a customer decide to not to buy
something? Jeff Bezos recalls a publisher calling him and
saying, I dont think you understand your business. You
make money when you sell books. But Bezos knew bet-
ter. He understood that what connected customers value
is a company that will help them make better buying deci-
sions. And today we all understand that.
To think that this customer revolution wont affect your
business is naive. It will affect every business. It is al-
ready shifting the balance of power. It is changing the way
power is controlled and exercised. It will change the way
companies are organized and the way they do business.
Eventually, every customer will be a connected custom-
er. And if you want to win over connected customers, you
will need to become a connected company. I
Notes for chapter one
Most of the stories here
can easily be found by
Google search. Inuential
sources include the sayings
and writings of Doc Searls,
David Weinberger, Clay
Shirky, Peter Kim, and Dion
Hinchcliffe. If you havent
read it yet, check out The
Cluetrain Manifesto.
STARBUCKS: For that anecdote,
Im indebted to the candid
thoughts Howard Schultz
expressed in his book, Onward: How Starbucks Fought
for Its Life Without Losing Its Soul, (Rodale Inc., 2011).
DOMINOS: Stephanie Clifford, Video Prank at Dominos Taints
Brands, The New York Times, April 15, 2009.
BANK OF AMERICA: Bank withdrawal numbers from the Credit Union
National Association newsletter, November 4, 2011.
CUSTOMER RECOMMENDATIONS: 2009 Nielsen Global Online Consumer
Survey.
AMAZON: Jeff Bezos recalls a publisher calling him and say-
ing I dont think you understand your business. You make
money when you sell books. From A Conversation with
Jeff Bezos by Franois Bourboulon, Les Echos (blog), June
23, 2011.
Continued from page 17
Olga: How about using advocates
for crisis management?
Jakub: I think for that particular
matter the internal social team
bears the bulk of responsibility.
When it comes to technical problem
resolutions, if customers dont know
how to set up their handset etc.,
then yes, the community is likely to
take care of itself and the advocates
/ super users will help together
with the dedicated moderation of
the Web Relations team or through
peer-to-peer intervention. However,
when it comes to corporate cri-
ses, its the company and internal
spokespeople who are responsible
for communicating through social
media channels keeping the target
audiences up to date.
Do you differentiate between your
super-user advocates on the forum
and your fans on the Vodafone
Facebook page or your followers
on Twitter?
As a brand we have the responsibil-
ity to listen to all of our custom-
ers. Whether on Facebook, Twitter,
YouTube or our own forum we as a
brand have a responsibility to listen
and engage with customers through
whichever social media channel they
prefer. Failing that wed be missing
opportunities from the reputation
management standpoint, customer
care angle, and the overarching NPS
(Net Promoter Score) perspective,
because we wouldnt be engaging
with people who are talking about
our brand and services to us or their
peers, followers or friends.
How do you know who your
advocates are?
Were actively listening to online
conversations through regular social
media analysis. We highlight par-
ticularly active users that are talking
about us and/or directly to us.
And how do you measure success?
We have a clear set of measures
were looking at. On the one hand,
were tracking the overall volume of
online conversations and looking at
sentiment scores. On the other hand,
we also measure how commercially
viable our social media activities are,
in terms of cost savings through call
deection, and sales through direct
sales via Web Acquisitions.
Have you run any internal
advocacy programs aimed at
activating employees?
We have a pretty open policy at
Vodafone, providing our employees
with a clear set of guidelines, rules
and principles as to how they should
engage on behalf of our brand. If
they like Vodafone as a brand, they
will act as our advocates on their
own accord. Vodafones responsibil-
ity is to be a good employer, so that
people are proud to be associated
with the brand and promote our
products and services. I
Jakub Hrabovsky
Goal
Quickly develop holistic understanding of
someone with this visual persona we call
an Empathy Map
Time
10-15 minutes per subject
Materials
Markers and whiteboard (or paper)
Purpose
The best way to understand your target
audience is to get inside their head.
Whether its a customer, a user, an em-
ployee, we can start to dene what it is
that they think about and the forces that
are at work on their lives. When we know
this, we can begin to understand how
best to solve their problems.
How to do it
1. Introduce the subject and draw their
head at whatever delity you can
even a large circle that will accommo-
date writing inside it will work (just add
eyes, ears, and nose). Give this person a
name. When creating a representative of
a large or diverse group of people (users,
for instance) it may be better to have an
abstract or ctional title. But a real person
or role will get you stronger examples.
2. Based on what information you want to
collect, label different areas around the head.
You may want to start by writing Hearing
to the left, Seeing to the right and Think-
ing in the center of the head. Sometimes
adding Feeling below can help.
3. Putting yourself in this persons shoes
is key to creating empathy. On a given
day, what is this person experiencing? Ask
everyone to ll in the blanks. What is he
hearing? What is she thinking and seeing?
What is he doing, feeling? As you capture
information, consider emphasizing the
more signicant pieces of the puzzle and
color-coding different types of thoughts,
sights and sounds. I
+ V I S U A L T H I N K I N G S C H O O L : E M P A T H Y M A P S
Understand your audience
BY W. SCOTT MATTHEWS & JAMES MACANUFO
SKETCHES by W. SCOTT MATTHEWS
Learn more about visual thinking and facilitation techniques like this in the OReilly book Gamestorming by Dave Gray, James Macanufo, and Sunni Brown: dach.is/QPs4O9.
THE A-TEAM
3. recruit advocates
You should now be left with a sizable and
detailed list of people who might prove to be
excellent advocates on behalf of your brand.
The challenge is turning that list into an
actual group of committed advocates.
For recruiting to work, the brand must
be transparent with the expectations and
privileges associated with the program.
This also requires clarity of vision on your
side what do you expect out of the advo-
cates? What resources are you prepared to
invest in the program? An understanding
of these elements lets you broker an au-
thentic relationship with potential recruits.
Once youve dened the nature of the
relationship you desire, rank your advocate
candidates by their likely ability to achieve
the specic goals you seek. For example,
an advocacy program for customer service
should require extensive knowledge and
passion for brand products accompanied by
a willingness to share that knowledge. Take
this opportunity to get the best of the best.
One effective practice is to have
individuals undergo a rigorous applica-
tion process to become advocates. This is
benecial for two reasons. First, it ensures
that people who join the program are truly
excited and committed to participation.
Second, it is an opportunity to elicit ad-
ditional information about your advocates
and use it in your ranking and segmenta-
tion of the advocate pool.
4. activate advocates
Advocate activation usually takes the
form of a series of creative ideas that
benet from the distributed authentic-
ity and passion of an advocacy program.
Advocacy brings unique challenges of
managing, guiding, and empowering ad-
vocate activity. Strong programs provide
the resources that advocates need to be
effective, but also set them free to be their
authentic selves. The goal is to inform
and guide without stiing love or passion.
At this stage, brand advocacy pro-
grams commonly employ community
platforms and other technology to facili-
tate communication, organize efforts,
and build a unied advocate culture.
Technology could be something as
simple as a Facebook group, as complex
as a standalone forums and community
solution, as innovative as a mobile appli-
cation or some combination of all three.
It is also important to consider how to
reward advocates. There are a number of
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@DWAnimation 75k
DreamWorks Animation
@NBCNews 282k
@NBCOlympics 180k
@NBCSports 109k
@FOXSports 160k
@FOXNews 1.7m
@serenawilliams 2.7m
@DwightHoward 3.3m
@spongebob 500k
@iCarly 775k
@MirandaCosgrove 2.2m
iCarly actress
@NBC 174k
Its a big world, after all
Charting The Walt Disney Companys Twitterverse
T
witter didnt exist in 1928 and neither did cartoons
with synchronized sound. Regardless, one whistling
mouse character started a media revolution as disruptive
as Twitters 140 characters.
Walt Disneys Steamboat Willie (considered the debut
of Mickey & Minnie Mouse) seems ancient to us now. But
that grainy black and white cartoon rodent was ahead of his
time. And The Walt Disney Company continues to be ahead
of the curve in the age of social.
Many of us start our day (Good Morning America)
and end it (Jimmy Kimmel Live!) with Disney property
ABC. Pixar and Disney lms are practically part of the
family. But you may be surprised to learn that most of the
chatter in Disneys Twitter portfolio isnt about fairy tales
or mind-blowing computer animation.
Almost half of Disneys +30 million
followers are thanks to interest in
actual humans like LeBron
James, Hope Solo, Venus
Williams, and Tim Tebow.
ESPNs network of journalists stoke the social res
by talking sports (and trash) and feeding us fast facts
via Twitter, driving the company to #2 on the Social
Business Index (socialbusinessindex.com).
Still, Disney has competition. Companies like Viacom
seem to be doing a better job making their ctional
characters accessible on Twitter. Relative newcomer
Spongebob Squarepants (Nickelodeon) has an audience
of half a million while Disneys 100-year-old Tinker Bell
has just three thousand.
So... have you found and followed Nemo? What do
you think Buzz DMs to Woody? And then theres Snow
White what does she think about all of these remakes
and retweets? Disney and many others with huge (or
not) followings have major engagement and advocacy
opportunities via social. To the generations growing up in
this connected world, will an @ reply from Mickey mean
more than hugging a sweaty person in a mouse costume
at a theme park?
Probably. I
WORDS & VISUALS BY JACOB HEBERLIE
+ D G D A T A V I Z : D I S N E Y S S B I R A N K & T W I T T E R A U D I E N C E S
30.7 million total followers
espn
14.8m
abc
7.9m
disney
5.6m
other
2.4m
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32 33
SOURCE: SOCIAL BUSINESS INDEX
Now starring in your products
lifestream: the fabulous me
+ S O C I A L B U S I N E S S I N S I D E R : S U S A N S C R U P S K I
A
t the end of 2008, I made some
end-of-year predictions. Some
right on the money, some completely
wrong (like Nokia over Apple on
smartphones. Sheesh).
One that I was right about,
however, and seemed odd at the
time was this one: The Long Tail
of Micro-Inuence Will Disprupt...
Everything.
Back then, Twitter was still gather-
ing steam. The Arab Spring wouldnt
happen for two more years, and
Twitters charm was mostly (only)
appreciated by tech industry and
social media enthusiasts. The liner
notes on this slide read:
Twitter. Who knew? Something so
innocuous could create so much
disruption. Mini micro web-celebs
with their legions of adoring fan/fol-
lowers will mess with reputation and
loyalty all across the globe. When
networks of networks connect, the
micro-sharing phenomenon will whip
its long tail and knock out the best
laid plans of strategic planners.
Even Facebook didnt roll out its
ability to Like a page until 2010.
But the unfettered ability to deliver
this kind of interactive brand power
into the hands of todays consumers
is staggering. The escalating strength
behind the consumer voice is writ-
ten about all the time, but mostly
by marketers who see the target
shape-shifting into some sort of
brand-message-devouring monster.
But, its important to see the con-
sumer from the inside out through
their eyes.
Ive often said these sharing and
voicing behaviors arent new, but
the platform upon which we can
now take action is fresh and highly
signicant. In 2012, every man,
woman, child, and some inuential
domestic animals have become
the equivalent of celebrities. Each
personal Facebook News Feed and
Twitter stream (along with every
other personalized social feeds
activity stream) presents a custom-
ized view of a world that orbits
neatly around the individual. Theres
a heightened sense of self-impor-
tance thats reinforced by the social
attention we give and get. Were
all moving toward a Social Atten-
tion Economy where we are rmly
established as the center of gravity
for all that revolves around us. This
includes, family, friends, employ-
ers, partners, and yes, products
and services. So when we talk to
a brand, we expect a response. We
demand service from our brands in
a way that has only been reserved
for celebrities, athletes, rock stars,
royalty, and the super wealthy.
So, what does this tell us about
Advocacy? In short: advocates mat-
ter a lot to brands. And, the race to
secure and cultivate advocates is
just beginning.
When a brand is fortunate enough
to enter into an individuals orbit,
thats an opportunity to secure a new
advocate. Advocates are passionate
brand defenders. They take bullets
for you. They stake their own self-
importance and reputation on your
product or service. But remember,
they are at the center of their social
center, not you. To the degree you
can complement or extend their
personal brand identity, there is a big
win-win in the ofng. Remember, be-
hind every tweet, like, mention, and
complaint is an attention-seeking
quasi-narcissist that demands your
time and respect. To the degree you
can fold into their personal narrative,
you will earn their brand love and
all the rewards that are reaped from
that special relationship. In other
words, the key to advocate passion
is relevance. Be worth their limited
time and attention.
So, as for my 2008 prediction, I
was correct. But in that prescient
observation, what I couldnt see was
how we can now use sophisticated
tools to identify, attract, and cultivate
those wild and woolly social beings.
As the socially connected world
grows more dense, more rich, and
more attention-starved, your brand
advocates will play an even greater
role in amplifying and legitimizing
your brands promise. The time
to start investing in an advocacy
program is now. Similar to the early
days of the Internet, being ahead of
the curve will pay dividends. I
THE A-TEAM / advocacy in 7 steps
different ways to approach rewards in ad-
vocacy programs. These range from highly
symbolic (non-nancial) rewards all the
way to paid compensation. Unfortunately,
there is no simple set of rules that any or-
ganization can follow to solve the advocacy
rewards conundrum. Instead, it makes
sense to adhere to a set of basic principles
when interacting with advocates.
The most important principle in
rewarding advocates is to ensure that the
rewards encourage a behavior that the
advocates would commit anyway. Reward
schemes that incentivize advocates to
behave in unnatural or inauthentic ways
taint the spirit of the relationship and
move dangerously close to pay-for-advoca-
cy schemes. This more cynical approach
might work for a while, but it will typi-
cally backre as advocates lose interest in
having another job advocating on your
behalf. In addition, this re-introduces the
problem of scalability into the program.
If advocates only act for nancial reasons,
then the program is inherently limited in
its impact to the amount of nancial re-
ward your organization can bring to bear.
5. amplify advocates
There is a new problem emerging
among brands that have embraced social
media the challenge of consistently
generating interesting content to share
in social channels. For many brands this
is one of their greatest challenges on a
day-to-day basis. After a few months the
resources required to constantly interact
with the community in a visual, branded
way overwhelms the brands ability to do
anything but seek out images, compose
questions, and generate conversation.
Advocates are an excellent way to ad-
dress the issue.
Most advocacy programs, even the
most lightweight contests or promotions,
result in a bevy of user generated content
of varying levels of quality. This content,
amplied organically in social channels or
even promoted with paid media, can gen-
erate authentic interest and conversation
around the brand. Longer term that con-
tent can be the foundation of the content
calendar for months into the future. Some
Dachis Group clients work with their
advocates to generate content postings,
testimonials, blog posts, and even high-
quality promotional videos all at a lower
cost and with a greater level of authenticity
and trust than traditional marketing.
6. measure advocates
With the correct tools and planning,
advocate activity is one of the most
measurable contributors to business
outcomes available to marketers. Brands
have the advantage of tools like Dachis
Groups Advocate Insight, to locate and
track brand contributions of advocates,
as well as foreknowledge of a programs
tactics and objectives to design measure-
ment and reporting for their program.
Most advocacy programs rely on a
combined dashboard approach that en-
compasses brand metrics, advocacy com-
munity metrics, and business metrics. Ad-
ditionally, the strongest programs will also
include product and brand insights that
can be integrated into business strategy.
7. learn & improve
Learn from your advocates. Ask them
questions, thank them, show them that
things are changing, and while you make
them a part of the process, also give them
room to engage and develop as advocates.
This stage of the advocacy process
seems easy, and in fact, it should be easy.
Unfortunately, most organizations really
struggle with capturing feedback from
external sources and integrating it into
operations. It is worth it though. Advo-
cates are typically not just a brands most
outspoken customers, they are also often
a brands most frequent and protable
customers. Learning from advocate com-
munities is not only a feel-good exercise
for the advocate community, it also con-
tributes to business performance.
the advocacy opportunity
Engaging with advocates is a business
and marketing tactic born of the social
era and perfectly adapted to success in
the social era. Creating relationships
with advocates is not easy identifying,
recruiting, activating, amplifying, and
learning from advocates requires entirely
new skills that most organizations must
discover. Nonetheless, in business cases
ranging from Vitaminwater to Red Bull
to Nestl, the value of advocacy has been
proven many times over. Organizations
focused on seizing the social opportunity
must look to advocacy to scalably unlock
the value waiting to be tapped. I
+ E V E N T S : D A C H I S G R O U P A R O U N D T H E W O R L D
D
achis Group is involved in speaking,
participating, or sponsoring events
and conferences around the globe. Last
year we hit nearly every continent on the
planet talking about Social Business
and were currently planning our 2013
Social Business Summit series. For
speaking inquiries, please get in touch
with us at speaking@dachisgroup.com.
For more info and up-to-date lists visit
our dachisgroup.com/events page and
socialbusinesssummit.com. I
36 THE SOCIAL BUSINESS JOURNAL
Join the Social Business Council, a community of Social Business enthusiasts.

We all share a common enthusiasm for bringing a new way of communicating
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peer-to-peer knowledge sharing network to learn from one another.
Council membership is open to all business professionals personally involved
in Social Business initiatives within a large business. If you want to share your
experiences with your peers and learn from theirs, we invite you to submit your
application for membership.
Robert Caldera
Senior Communications Manager
PwC
socialbusinesscouncil.com
@SocBizC
DACHIS GROUP
515 Congress Avenue
Suite 2420
Austin, Texas 78701
USA
PRESORTED
STANDARD
U.S. POSTAGE PAID
ST. LOUIS, MO
PERMIT NO. 5283

Social Business Journal - Issue 02

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Social Business Journal - Issue 02

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STORIES | Imagine what youd do if your

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