Vircomm '99 by Digital Places www.digiplaces.com April 25, 1999 An Overview of Internet Community Fundamentals and Operations Management by Digital Places www.digiplaces.com Digital Places -- "Profit from Internet Communities"

Capitalizing on “Community” Sponsor communities frequented by target customers Participate 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

The Online Service Equation Net Profit/Loss = Cost Acquiring Customer - Life of Customer [ ] Revenue Avg/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.

Operational Highlights Organize internally for success Manage the Social factors Carefully select and train “Caretakers” Support the Motivators Provide Value for their information Applications “Presence Infrastructure” & search/browse

Community Applications Msg boards, chat, listserves, IM Homepage/Profile building and search

Agenda Membership and Presence Community Profiles Community Management Roles

What Is Community? Any online group wherein the site developer provides facilities that enable communications among members. May be: typical message boards and chat feedback mechanisms like eBay elaborate virtual worlds like Palace & WorldsAway

Why are you investing in developing an Organizational Goals Why are you investing in developing an online community?

Defining Your Membership Who is your Target Audience? Demographics Psychographics Wants and Needs

Online Presence Enable individuals to express their identity and/or develop a reputation online Expanding presence increases interaction Presence => Member communications => Community Experience

Creating Presence Individual Profiles Information about the member Vircomm '99 April 25, 1999 Creating Presence Individual Profiles Information about the member Provided by the member Structured by Community Developer Contains information important to the community Richness increases depth of engagement Profiles are information about the member, provided by the member, structured by the community developer. A personal profile is structured by the user (your email 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"

Member Involvement Caretakers - .5% Motivators - 3% Actives - 15% Passives - 80%

Figallo’s Community Profiles Interactivity Focus Cohesion

Interactivity Shrines -------- Theatres --------- Cafes Cafes Shrines Don’t impose strict controls Advertisements are more tolerated Shrines Host knowledge of subject is very important Heavy participation by host required

Focus Bazaars -------- Malls ---------- Boutiques Bazaars Malls Games & play, little focused interaction Malls May act as portal sites, ads more tolerated Boutiques Deliberate participation, subscription models more likely

Cohesion Loners ------- Associates -------- Families Loners Associates Warning sign Associates Core of loyal users, lots of interaction Families Pre-packaged, value history and traditions Message boards more effective than chat

Management Roles Executive Producer Community Manager Online Staff Responsible for fiscal success of the business Community Manager Responsible for social success of the community Online Staff The bridge between you and your community

Management Relationships Executive Producer Content & E-commerce Webmaster & Designers Community Manager Remote Staff Customer Service Training & Events

Executive Producer Duties/Responsibilities Directs creation of total service Content, e-commerce, and community May decide business direction and models Keep community consistent with these goals Revenue attainment & cost containment

Executive Producer Qualifications Performance Measurements Conscious user of online media Technically savvy Business savvy - understands cost/return tradeoffs Performance Measurements Total membership, growth Revenue, Profit/Loss

Community Manager Duties/Responsibilities Selects, trains and monitors hosting staff Guides social aspects as they relate to the total service (content, e-commerce, etc.) Liaison between community members, hosts, producers Enforce/Implement site policies

Community Manager Qualifications Performance Measurements Naturally sociable person Sensitivity and knowledge of legal environment Able to motivate staff and participants Performance Measurements Member retention (quality & quantity) Ratio of community staffing costs to total members

Online Staff Roles Advisors, Allies, Ambassadors, Community Proxies, Feedback Gatherers, Greeters, Mediators, Moderators, Representatives, Role Models, Supporters, Teachers….

Online Staff Skills/Qualifications Helpful, patient, tolerant Initiator, entrepreneur, leader, respected within community Natural enthusiasm, know their tools, know their own limits

Online Staff - Special Skills Chat Message Boards Events Backend Tools fast typist, efficient communicator, attentive higher degree of communication, summarization moderation, motivation, preparation broader technical savvy, feedback solicitation and summarization

Recruiting Online Staff Online communities are a burgeoning training ground Recruit from services you respect Balance observation with application process

Training Online Staff Set expectations of effort and conduct Train to meet those expectations Teach “how-to” not “do-for” – sowing the seeds of future staff

Managing Online Staff Motivation Compensation Burnout Lessons to be learned from DOL versus AOL Compensation “The 10th best worker is a volunteer – you can’t make them do what you want to do…” Scott Kurnit, CEO of MiningCo.com Burnout Only you can prevent forest fires.

Question: What is the most important element of any community? ?

Answer: The Members

Trust is Central The 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.

Violating Trust Things that undermine trust

Generating Trust One idea for generating trust in community members Ideas will be posted on www.digiplaces.com by April 30.

Keys to Successful Communities Establish trust Make visitors feel welcome Participate with the users Select Caretakers carefully Control membership influx

Where is Your Community Going? Plan your community to meet organizational goals Costs vary based on Interactivity & Cohesion Control and guide this to meet business goals

Where is Your Content Going? Is your content appropriate to your members needs? To your needs? Control your content, don’t let it control you.

What are Your Goals for ... Interactivity? Cohesion? Focus?

Wrap Up What one thing will you change, and when will it be done? What resources are you missing? Where will you get them?

Digital Places www.digiplaces.com 650-224-4567 Community Management Digital Places www.digiplaces.com 650-224-4567