Becoming a Social Business: Our Journey at Dell
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Richard Margetic, Dell Director Global Social Media, presentation on how Dell became a social business.
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Becoming a Social Business: Our Journey at Dell
- 1. Becoming a Social Business ITSMA December 4, 2012 Richard Margetic, Dell Director, Global Social Media
- 2. Our Journey to Becoming a Social Business Dell saw Social Media as an opportunity to build and further nurture customer relationships through listening to, and engaging with, customers in meaningful ways. • Realization: Social was impacting many parts of the business • Challenge: Establish a framework that could scale across the business • Solution: Define a platform-agnostic strategy, a governance model to manage, a communication system to educate / inform, an insights program to measure impact and a culture that embraces it Global Marketing
- 3. More than six years of social media experience February 2006 March 2008 June 2009 Dell Michael Dell asked February 2007 Accepted Solutions Global Twitter named Why don’t we reach out and help revenues of Altimeter IdeaStorm launched launched on Community recognized Dell the No. bloggers with tech support issues? $6.5 M A voting based site allowing Dell France begins Online with “Open 1 most customers and others to Community Outreach submit ideas for Dell. May 2008 Leadership Award social Dell Outlet achieved for Innovation and brand Execution” October 2007 $0.5M in sales via Twitter Michael Dell quoted in Business March Week 2010 December 2006 In response to Jeff Jarvis question around Dell Ratings and whether companies want to be part of the online conversation: ”My argument is you joins reviews launched January 2009 absolutely do. You can learn from them. You Sina on Dell.com can improve your reaction time. And you can Dell Organizes June 2009 Weibo be a better company by listening and being into four involved in that conversation.” $2M+ Sales in December 2010 customer via Twitter China Social Media focused Listening business units Command Center launched 2006 2007 2008 2009 2010 2011 2012 July 2006 Direct2Dell launched June 2007 2009 Social Media & Today Direct2Dell exists in Dell joined Twitter June 2008 Dell TechCenter Community English, Spanish, Norwegian, Channel University (SMaC U) Japanese and Chinese. EmployeeStorm blog Spring 2009 launched launched January 5,000 team 6 Awards for the launched Members of December Internal Blogs Launched 2008 members trained by Social Media Listening for Employees. Community 2009 Dell aligns end of year Command Center and Huffington organization Conversations Post Blog January 2007 for success StudioDell launched deployed B2B pages on November 2007 within each of Dell’s video and podcast site, with Facebook helpful tips and tricks. Eventually DellShares the new Dell August 2006 expanding this into the YouTube launched Business units Blog outreach channel making sharing easier. The first investor April 2008 expanded beyond relations blog by a Inside IT launched public company. Blog focused on business June 2010 tech Support customers, and Cloud CAP Days launched Computing. In-person events for vocal online customers 3 Global Marketing
- 4. Realization Global Marketing
- 5. Marketing before it became formal Intimate, customer connections 5 Global Marketing
- 6. 2005-2006 • Companies viewed customer support and marketing as primarily one-way. • Marketing by Dell, its competitors and business in general involved traditional use of mass media. • Thousands of conversations about Dell and related topics of interest 4,000 online conversations • Conversations rich with valuable insights per day • Various parts of the business impacted regarding Dell • Online traffic/time spent shifting to social • No Dell voice Global Marketing
- 7. Challenge Global Marketing
- 8. Meeting the Opportunity • Shifting from one way communications to conversations • Undefined benefits from investing in social – Belief in social media impact will only get us so far • Incremental resources needed – How do you justify shifting roles to social media management? • Solve the complexity of coordination across multiple business units and regions – Conversations were around products, customer issues, technology trends, sales and more Global Marketing
- 9. Solution 1. A platform-agnostic strategy 2. A governance model to manage and scale 3. A communication system to educate and inform 4. An insights program to measure impact 5. A culture that embraces it Global Marketing
- 10. Solution 1. A platform-agnostic strategy 2. A governance model to manage and scale 3. A communication system to educate and inform 4. An insights program to measure impact 5. A culture that embraces it Global Marketing
- 11. All social activities share the same roots Global Marketing
- 12. Smart business fundamentals never change 12 Confidential Global Marketing
- 13. Social roots + business fundamentals core social business strategy Global Marketing
- 14. Foundation of social strategy: Focus on Value Drivers Value to Customers Value For Dell Social connections meet variety of needs Social connections create potential for tangible across customer segments, and enable impact against Dell’s key value drivers … customers to … 1. Make meaningful Marketing Spend • Brand awareness connections based on Efficiency • Lead generation shared interests • Net Promoter Score • Unique visitors Traffic • Visits/page views 2. Express themselves • Leaks in purchase Conversion Rate path 3. Receive exclusive rewards • Average order and recognition Basket Size value Customer • Retention 4. Get advice, validation, and Lifetime Value • Profitability assurance about decisions • Support Cost Savings • Sales and marketing 5. Solve a specific problem (their own or someone Customer else’s) Insights to Drive • Indirect R&D savings Innovation Global Marketing
- 15. Integrate where Customer & Business Value are realized across all business functions Product Development Marketing Online Presence • Feedback Loop • Demand Forecast • Ratings & Reviews • Early Warning • Lead Generation • Communities • New Product • Message Reach • Customer Stories Ideation Sales Customer Service Communication • Collaboration • Listening • Rich Media • Thought Leadership • Support Widgets • Brand Reputation • Blogs • Outreach • Influence • Reputation Global Marketing
- 16. Listening to Be A Better Business, across the Business 16 Confidential Global Marketing 3/21/2
- 17. IdeaStorm Purpose Our goal through IdeaStorm is to give our customer an avenue to share their ideas on Dell Products, Services and Operations. Statistics • 60,000+ User Accounts • 18,000+ Ideas • 739,000+ Votes • 97,000+ Comments • 520+ ideas Implemented Value • Revenue from IdeaStorm members is ~50% higher than non-members • Purchase frequency is 33% higher • Higher Lifetime Value 17
- 18. Solution 1. A platform-agnostic strategy 2. A governance model to manage and scale 3. A communication system to educate and inform 4. An insights program to measure impact 5. A culture that embraces it Global Marketing
- 19. Governance: Facebook Reinvention turned a jungle into a tended garden 2008, a search for Dell on Governance reduced the Facebook returned 485 number of official and non- results, including official Dell pages, deleting abandoned, off-brand, noise & bringing focus to unmonitored sites high priority Dell initiatives. Agreed upon governance model Governance process rolled out to all social – To contain unbridled proliferation of sites media platforms that would harm the brand – Processed ~1,000 social media requests to Consistent brand date, – To stay ensure alignment Cross-segment core team established to ensure Results Taxonomy framework Today interlocks and alignment – To know where any new site fits and – Extended team exceeds 50 weekly improve user experience members Standardized tools Agreed upon core social strategy – To minimize launch churn, maximize – Enables establishing presence in new efficiencies by leveraging BIC functionality platforms friction-free (Google+, Tumblr) Shared agency Embedded tracking – To maximize spend, avoid churn and stay – Ensures all accounts in compliance are aligned tracked effectively 19 Global Marketing
- 20. SMaC Governance Reporting Social Media Requests Social Media Fans & Followers by Platform 60 Pinterest 50 40 Slideshare 30 Consumer YouTube 20 LE 10 Qzone 0 SMB Corporate/Global LinkedIn Google+ Sina Processed Launched Sunset Declined Feb-11 Apr-11 RenRen Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Tencent Weibo Aug-12 946 711 101 103 Oct-12 Twitter Compliance Social Media Fans & Followers by Region • 128 Issues were reported • 105 Pages were taken down 6,000,000 • 23 are Pending verification 5,000,000 4,000,000 NARC Report 3,000,000 2,000,000 Processed Launched Sunset 6% 1,000,000 40% - 54% NA APJ Global EMEA LATAM Series1 5,301,1 4,918,0 1,345,0 742,274 449,144
- 21. Customer Experience Social Outreach Team Formed March 2006 Team begins by just listening and monitoring earned social. Tech support experts were then hand-selected for their tech problem-solving expertise and superior interpersonal skills. When pointed at owned social, our negative sentiment in Facebook was halved in the first two months Today On average, the team addresses 3,000 posts a week in 11 languages – 98% resolution rate – 45% ranters to ravers Global Marketing
- 22. Solution 1. A platform-agnostic strategy 2. A governance model to manage and scale 3. A communication system to educate and inform 4. An insights program to measure impact 5. A culture that embraces it Global Marketing
- 23. Educating Employees: Social Media & Community University Principles Policy Processes Training & tools Global Marketing
- 24. SMaC U Today • > 12,000 employees trained • > 7,000 employees certified • We train globally in 55+ countries – Focus on regions where our largest marketing, sales and product teams exist • Launched a Training Ambassador program, where certified employees may apply to teach on behalf of the University. • SMaC Champions: Certified employees given a list of social activities that they can participate in. One is crowdsourced translations of social media content. Global Marketing
- 25. Social Media Playbook • Designed for Dell Marketers & individuals responsible for planning & operationalizing social media Social • Helps you Media plan, build, execute, measure & syndicate social media Playbook strategies • Provides tools for creating KPI’s & measuring business value • Includes helpful templates, checklists and worksheets 25 Confidential Global Marketing
- 26. Solution 1. A platform-agnostic strategy 2. A governance model to manage and scale 3. A communication system to educate and inform 4. An insights program to measure impact 5. A culture that embraces it Global Marketing
- 27. Measuring Owned Global Marketing
- 28. Measuring Earned Global Marketing
- 29. Insights • Social media engagement improves Dell’s reach and share of voice in the marketplace • There is a causality between social media activity and engagement leading to Dell purchases • Social media engagement positively attributes to demand generation • Social media support improves sentiment, which correlates with higher customer revenue • Social media engagement keeps Dell and customers connected and that improves loyalty Global Marketing
- 30. Solution 1. A platform-agnostic strategy 2. A governance model to manage and scale 3. A communication system to educate and inform 4. An insights program to measure impact 5. A culture that embraces it Global Marketing
- 31. Scalable strategy Clear objectives Defined processes = Crisp communications + Precise measurements Global Marketing
- 32. “Engaging in honest, direct Conclusion conversations with customers and stakeholders is a part of who we are, who we’ve always been. The social web amplifies our opportunity to listen and learn and invest ourselves in two-way dialogue, enabling us to become a better company with more to offer the people who depend on us,” Michael Dell, CEO Global Marketing
- 33. Thank You
Editor's Notes
- Dell has embedded social media across all businesses and functions, using it to build and nurture customer relationships through listening to, and engaging with customers in meaningful ways. Dell is committed to developing innovative programs that bring our passion for social connectivity and transparency to life, including the Social Media Listening Command Center, IdeaStorm, and a complete training and certification program empowering thousands of employees globally. These efforts contribute to product improvement, positive brand sentiment and an unmatched connection to our customers. Instead of targeting customers, Dell hears what they are saying and invites them to share their ideas.
- Dell’s use of social media really goes to the roots of who we are as a company: the power and value of direct connections with customers, as well as using the Web as a tool to be a better business. Our teams have been exchanging information with customers online since the late 1980s with listservs, and by 1996 we had our own Dell Community forums at Dell.com (other examples include: early leadership of e-commerce, the Web infrastructure to drive our supply chain, Premier Pages, etc)Today, we see social media as tool to be used across the fabric/functions of our businesses to build better business and be more connected with customers (i.e. the social web is not just about marketing or a customer support channel, rather it is a tool to be used to collaborate, connect and constantly do more with customers, from quality, to innovation, to building better business processes, to connecting and sharing real time, as well as solving technical or customer care issues) Highlights to pick out:Started with technical support (Customer service delivery)Just over 5 years ago became an early adopter using social media to connect with customers and build a better business. In March 2006 we established the Online Community Outreach team, a group of tech support experts that reached out to bloggers around the world who had questions or required assistance. Later that year we expanded blog outreach beyond tech support to include any conversations about Dell. 2006 was also the year we launched our blog, Direct2Dell.Moved into communications – using as a channel to tell our story – Direct to DellDeveloped into crowd sourced product and service development with IdeaStormGone multi-lingual – multi-platforms – from our own .com/blog out to those customers select for themselves – no good just listening to the conversations in English, in your own front room - got to get out into the street to hear what customers really thinkInternal and external – agent for collaboration and innovation within the organisation e.g. Employee Storm; ChatterDirect sales (or facilitation) channel – lot made of our sales on platforms like twitter with @delloutlet but also important to realise that buying behaviours for products and services are also now heavily influenced by the social web – the opinions of trusted friends often first port of call (social web friends; bloggers)…so bringing those views into the buying process is impactful – so dell.com brings reviews/ratings front and centre with customersPower of advocates/ambassadors not to be underestimated – your team members are powerful voices for your brand/products and services… SMaC training and open access to all the tools they need at work to both LISTEN and ENGAGENote: Google+Dell team members from around the around the world are early adopters and users of social media, most recently on Google+ and Pinterest.
- In fact, as I think back in history to the general store or the early department stores or the mom and pop shops in our neighborhoods, the smart business person was a true marketerThat business person knew his customers by name, had a connections with themIndeed therein lies the early beginning of successful business – not the advertisement of brand names but the intimate customer connectionsIn some cases, the general store was actually the community center. People shopped, chatted, shared news, played a game of cards…..So, as we talk today about social media, I think this context is important….
- Social media’s rapid growth and measurable impact led to the realization that ad hoc solutions couldn’t scaleWild West: Saloons and churchesPlatforms change, people don’tBlogs, MySpace, Facebook, Twitter, Renren, Tumblr, Pinterest, InstagramScaling needs:Consistent metricsEducationCommunicationGovernance
- “Man is by nature a social animal.” Aristotle The motives to engage, relate, share, be accepted are at the base of all social activity. In this sense, the digital world is no different than the physical. Our lives depend on other humans. Infants are born unable to care for themselves. Survival depends on another human's efforts. We develop and learn about the world around us through the filter of other people. Our connections to others are key to not only our survival, but also to our happiness and the success of our careers.
- People think there’s a fundamental paradigm shift with the advent of social. There is a paradigm shift, but not at the fundamental level, which is constant.
- Lesson 3 and I have touched on this…but over 5 years we have found the conversations touch every part of Dell’s business……well, I'm not sure accounting has many customer conversations about them To realize business value from the customer, it is important that web interactions and conversations are heard by those who are most impacted, the relevant Dell team members and various parts of the business.
- "Today, 66% of online Americans are actively using social networking, but only 16% of companies use social media to engage with customers.“You cannot have credibility saying you are customer-centric if you ignore your customers in social media channels.“ Charlene Li
- According to ReadWrite Enterprise, “IdeaStorm is one of the touchstones of the enterprise social media age.” Launched in 2007, Dell’s IdeaStorm is a community site where anyone can submit ideas about improving Dell’s products/services, and allows the community to vote for their favorite submissions. Recently reinvigorated, the redesign supports more robust ideation, more prominent member presence and better social sharing. Dell has 28 IdeaStorm Partner employees, representing every aspect of our product line, who promote two-way dialogue between Dell and the community, IdeaStorm is also used to for customer feedback when Dell is in the process of designing/developing new products. In this situation, Dell puts its own ideas on IdeaStorm, hosting a “Storm Session.” Taking place in real-time, participants join a session to provide feedback on issues/proposed products.
- Recognizing the focus on resolution, where and when a customer needed it, Dell brought together a unified team of professionals covering both technical support and customer care on the Web for both business to business and consumer customers. Traditionally separate business units, the social media outreach services (SOS) team merged customer care and technical support into one effort. The team established its own “outbound” approaches, listening and hearing a customer in need and proactively reaching out to solve the issue, rather than waiting for the customer to call. Unlike the traditional phone queues, identity of the customer is not always clear, which means the team must operate without always having the benefit of the traditional “case management” information in the Dell systems. Another unique factor impacting this operation is given Dell’s privacy and protection of customer data policies, the Web, unlike a phone call, is public. Therefore the SOS team works in a non-traditional manner to solve issues without the usual confirmation of names, addresses and service tags.
- Lesson 5 relates to giving employees the tools to do their job…that means training.At Dell, We have put in place a robust social media and community curriculum that covers everything from our policies about transparency and protecting company and customer information to how to best use tools like Twitter, Facebook, LinkedIn, and blogging
- Not everyone necessarily needs to be active on the Web. However, as the social Web emerges as a key marketing tool, every marketing leader needs to understand how to think about challenges, opportunities, costs, and how the social Web may or may not be a part of a marketing campaign or program. The Dell Social Media Playbook is a 105 page internal guide for planning and executing social strategy for the world’s largest social platforms including social networks, microblogs, video blogs, professional nets, as well as photo sharing, presentation, and publishing sites. Dell CMO, Karen Quintos introduces the guide saying, “Success in marketing means recognizing that experts in the social universe have the power to become some of our most authoritative advocates. Exceling as a social business means embracing these relationships and incorporating the feedback we get across the entire fabric of Dell so that we can continue to delights our customers with every touch point.” The innovative guide teaches marketers to build, engage, promote and track successful social media campaigns on behalf of the company. It also talks about tracking listening data before a market launch and how to factor this into messaging development.
- Our social media engagement improves Dell’s reach and share of market voice, establishes causality between social media activity and engagement, and contributes greatly to demand generation and higher customer revenue. Most importantly, our social media efforts improve customer loyalty through the solid relationships we build and nurture.