Strategic Business Leadership Executive Education Seminar Raj Agnihotri November 2014

2 Industrial Experience in Sales & Marketing with Start-ups to Major Corporations Author of Sales-Force Automation and CRM Implementation James Comer Award for the Best Contribution to Sales Management Theory Excellence in Teaching Award from Marketing Management Association Dr. Raj Agnihotri Freeman Professor of Sales Leadership Chair of Marketing Department

321 Understanding the current market environment Exploring social media as a business tool Outlining a social media startegy Discussion topics

“A global bank executive recently described to us a challenge for our times. It turns out that a customer who normally would qualify for the lowest level of service has an impressive 100,000 followers on Twitter. The bank isn’t doing much yet with social media and has no formula for adapting it to particular customers, but the executive still wondered whether the customer’s “influence” might merit special treatment.” From: What’s Your Social Media Strategy? Wilson and colleagues (2011), Harvard Business Review

“…..a customer who normally would qualify for the lowest level of service” CustomerLifetimeValue

The Power of Social Capital

“connected, informed, empowered, and active consumers” (Prahalad and Ramaswamy 2004) market2.0

Customer Value Organization’s Social Capital Social Capital… What? Communication to maintain Social Structure Communication to Build & Maintain Trust Communication to Share the Vision Social Media Use (Kothandaraman, Agnihotri, and Kashyap 2011) Communication-Social Capital Link

Now the Question Becomes… How to facilitate this link?

OrganizationConsumerProduct t Organization Product t+1 Consumer Value Co-Creation Market Evolution Collaborator (Agnihotri and Hu 2009)

Social Media in B2C Context

Social Media in B2B Context B2B Marketing Solutions B2B Sales Approach B2B Service Solutions

(From: Agnihotri et al. 2012) Information Sharing Customer Service Trust Building SOCIAL CONTENT ENABLER SOCIAL NETWORK ENABLER ORGANIZATION ACTIONS Customer Perceived Value Organization Perceived Value Fit between Social Media Use & Service Actions to “Pull’ Customers towards Firm Generated Content Fit between Social Media Use & Actions to “Push” Information through Expanding Networks of Connections VALUE CREATION ibm.com/connections/blogs/ player_embedded&v=F5CF1FEm_oA#t=12

Social Media Use Value Oriented Behaviors Value Creation Nothing will change without changing behaviors

Work within your group/table and come up with the ‘social media marketing strategy’ for Ford Fiesta,Ford Fiesta that has potential to offer organizational and customer value. Let’s Put Theory into Action

This is How They Did It Target Market Generation Y/ Millennial Find a fit Empty Nesters/Baby Boomers Content Creators Content Consumers Different language Different mix of media Different ratio of visuals and textBlog

Ford Fiesta Movement, a campaign to promote the Fiesta model Giving cars to 100 social “agents” and let them promote vehicle through Social Media All without spending a dollar on traditional media Results of six month campaign -4.3 million YouTube views -500,000+ Flickr views -3 million+ Twitter impression -50,000 interested potential customers, 97% of which don’t own a Ford currently.

How are you going to measure the ROI when implementing your Social Media Strategy?

ROI: commonly used metrics* 73% Customer Acquisition rate *Gleansight: social media marketing, November 2010 Organizations can set milestones in terms of – i)Marketing efforts (e.g., number of tweets posted per week, number of blogs written and followed, etc.) ii)Outcomes (e.g., number of leads generated through blogs) Performance evaluation should include - i)Objective (e.g., changes in service support costs) ii)Subjective criteria (e.g., number of referrals and/or positive recommendations by existing customers through social networks) 86% Audience growth rate -e.g., # of facebook fans, twitter followers, etc., per week 77% Volume of relevant posts/comments 81% Customer engagement rate -e.g., # of click-thrus, registrations, etc., per week 73% Customer Acquisition rate

Do your research before investing in SM Remember the ‘Market’ in marketing strategy Create value ….and finally Connect with people because nothing can replace the - personal touch Tips to Remember

Thank You and Good Luck!