Presentation on theme: "Vircomm '99 by Digital Places"— Presentation transcript:
1Vircomm '99 by Digital Places www.digiplaces.com April 25, 1999An Overview of Internet Community Fundamentals and Operations ManagementbyDigital PlacesDigital Places -- "Profit from Internet Communities"
2Capitalizing on “Community” Sponsor communities frequented by target customersParticipate in communities frequented by your high margin target customers, partners and employees.Build communities to be frequented by those with whom you have the most valued relationships
3The Online Service Equation NetProfit/Loss=CostAcquiringCustomer-Lifeof CustomerRevenueAvg/Customer()*Communities are more cost effective than content-focused services because they positively influence each of the four factors in the online service equation:Members create content which reduces the cost to produce the service.Active members establish reputations within the community, become committed to remaining and tell friends about it. These dynamics contribute to increasing the average customer life and decreasing the average cost of customer acquisition.Marketers will pay more for access to committed, active community members who constitute a tightly-focused target market.
4Operational Highlights Organize internally for successManage the Social factorsCarefully select and train “Caretakers”Support the MotivatorsProvideValue for their informationApplications“Presence Infrastructure” & search/browse
5Community Applications Msg boards, chat, listserves, IMHomepage/Profile building and search
6Agenda Membership and Presence Community Profiles Community Management Roles
7What Is Community?Any online group wherein the site developer provides facilities that enable communications among members. May be:typical message boards and chatfeedback mechanisms like eBayelaborate virtual worlds like Palace & WorldsAway
8Why are you investing in developing an Organizational GoalsWhy are you investing in developing anonline community?
9Defining Your Membership Who is your Target Audience?DemographicsPsychographicsWants and Needs
10Online PresenceEnable individuals to express their identity and/or develop a reputation onlineExpanding presence increases interactionPresence => Member communications => Community Experience
11Creating Presence Individual Profiles Information about the member Vircomm '99April 25, 1999Creating PresenceIndividual ProfilesInformation about the memberProvided by the memberStructured by Community DeveloperContains information important to the communityRichness increases depth of engagementProfiles are information about the member, provided by the member, structured by the community developer. A personal profile is structured by the user (your signature, your web page), but the community profile is structured by the community developer according to what’s important to your remembers.Pick what’s important to your community. For instance if you run a golf community, you need to pick fields or elements for your profile that are important to the user’s golf identity. (Need an example here -- they don’t care about where you live or what your hobbies are?) For example, what’s your handicap, what courses have you played, reviews of these courses, what’s your game strength, etc.Digital Places -- "Profit from Internet Communities"
13Figallo’s Community Profiles InteractivityFocusCohesion
14Interactivity Shrines -------- Theatres --------- Cafes Cafes Shrines Don’t impose strict controlsAdvertisements are more toleratedShrinesHost knowledge of subject is very importantHeavy participation by host required
15Focus Bazaars -------- Malls ---------- Boutiques Bazaars Malls Games & play, little focused interactionMallsMay act as portal sites, ads more toleratedBoutiquesDeliberate participation, subscription models more likely
16Cohesion Loners ------- Associates -------- Families Loners Associates Warning signAssociatesCore of loyal users, lots of interactionFamiliesPre-packaged, value history and traditionsMessage boards more effective than chat
17Management Roles Executive Producer Community Manager Online Staff Responsible for fiscal success of the businessCommunity ManagerResponsible for social success of the communityOnline StaffThe bridge between you and your community
19Executive Producer Duties/Responsibilities Directs creation of total serviceContent, e-commerce, and communityMay decide business direction and modelsKeep community consistent with these goalsRevenue attainment & cost containment
20Executive Producer Qualifications Performance Measurements Conscious user of online mediaTechnically savvyBusiness savvy - understands cost/return tradeoffsPerformance MeasurementsTotal membership, growthRevenue, Profit/Loss
21Community Manager Duties/Responsibilities Selects, trains and monitors hosting staffGuides social aspects as they relate to the total service (content, e-commerce, etc.)Liaison between community members, hosts, producersEnforce/Implement site policies
22Community Manager Qualifications Performance Measurements Naturally sociable personSensitivity and knowledge of legal environmentAble to motivate staff and participantsPerformance MeasurementsMember retention (quality & quantity)Ratio of community staffing costs to total members
23Online Staff RolesAdvisors, Allies, Ambassadors, Community Proxies, Feedback Gatherers, Greeters, Mediators, Moderators, Representatives, Role Models, Supporters, Teachers….
24Online Staff Skills/Qualifications Helpful, patient, tolerantInitiator, entrepreneur, leader, respected within communityNatural enthusiasm, know their tools, know their own limits
25Online Staff - Special Skills ChatMessage BoardsEventsBackend Toolsfast typist, efficient communicator, attentivehigher degree of communication, summarizationmoderation, motivation, preparationbroader technical savvy, feedback solicitation and summarization
26Recruiting Online Staff Online communities are a burgeoning training groundRecruit from services you respectBalance observation with application process
27Training Online Staff Set expectations of effort and conduct Train to meet those expectationsTeach “how-to” not “do-for” – sowing the seeds of future staff
28Managing Online Staff Motivation Compensation Burnout Lessons to be learned from DOL versus AOLCompensation“The 10th best worker is a volunteer – you can’t make them do what you want to do…”Scott Kurnit, CEO of MiningCo.comBurnoutOnly you can prevent forest fires.
29Question:What is the most important element of any community??
31Trust is CentralThe community belongs to the members. Serving the members is the first and foremost goal. Decisions that subordinate this goal can undermine trust and jeopardize the stability of the group.