Building the business case for online communities

I’m at the Communities 2.0 conference in San Francisco this week. It’s such a beautiful and diverse city and sadly not enough time to explore (sigh).

One of the hot topics raised at the ROI symposium was the thorny issue of getting internal buy in for your online community from across departments and management levels. At FreshNetworks a lot of the early work with our clients is around supporting the project sponsor to achieve this. It’s often the hardest part of getting an online community started and even when you are rolling, how do you keep the visibility of it high to ensure continued investment?

I’ve been struck by the number of passionate mavericks I’ve met who ‘just knew’ their company should be starting a dialogue with customers (or employees) and could see the benefits a mile away even if they couldn’t quantify them. Euan Semple started the BBC intranet on a box under his desk and the seasoned community practitioner Dawn Lacallade (previously Lead Stormchaser at Dell and now at solarwinds) tirelessly waded through the politics at Dell to extol the benefits of the early Dell communities. Many social media projects start as skunkworks projects and sometimes this is the only way to gather the evidence that the demand and the benefits are there. I’m all in favour of piloting, learning and evolving but there can be some pitfalls:

  • you may end up with multiple communities targeting the same people, creating real confusion for your customers
  • as social media people leave the company, community ghost towns will appear as no-one knew about all the cul-de-sacs of conversations existed and there’s no-one to carry on the conversation
  • social media enthusiasts may be good at Twitter but they may not understand how to manage risk. Online communities can impact all areas of the business and there is nothing worse for a customer who has made the effort to talk to you than getting no response back from the brand.

So here are some tips from Dawn about how she used her powers of persuasion at Dell (at solarwinds everything they do starts with ‘how do we involve customers in this’ so I gather life is less complicated for her now!). I’ve added to the list from some of our experiences at FreshNetworks too.

  1. Amongst the other skills you need as a community manager, you need to develop your sales skills! Equip yourself with loads of great case studies to convince stakeholder of the value to the business. They are unlikely to respond to words like blog, wiki – only to phrases like customer retention and cost reduction!
  2. Identify all the key stakeholders in the business (i.e. those that give you money, those that can vote on what you are about to do and those that are likely to give you grief!)
  3. Meet/call/survey these people to understand the priorities of the business and each department. At FreshNetworks we try to encourage setting up a cross-functional team to attend at least a half day workshop, including directors. It’s amazing how many epiphany moments happen when people are sharing ideas with each other and often the biggest cynics walk away as converts and later evangelize the project. Play back to the group what phase 1 is going to cover and what it’s not to set expectations.
  4. Prioritise the objectives and work out the business KPIs for the community. Use the language of your stakeholders. If the KPIs don’t contribute to departmental goals you are unlikely to get support for the project. KPIs include things like ‘reduce acquisition costs’ not ‘number of top contributors’. The latter is an essential metric for managing a community but unlikely to mean much to a management team under pressure to deliver their quarterly targets! And finally remember – value is fluid. I met Tina Card this week, another driven community manager from Scottrade who told me their community is producing benefits that hadn’t even envisaged at the outset.
  5. Test the business readiness. Is the company committed to investing in the medium term to develop the community to maturity and value? Have you thought through the internal process changes that might be required to respond to say an ideas community?
  6. Launch a beta then work hard to play back the results to your stakeholders. And never stop doing this, get in front of Execs on a regular basis. There are a lot of repetitive tasks involved in managing a community and marketing people particularly are not used to this as they live in a campaign-based world.

We’d love to hear about your experiences so we can continue to add to the list!

Google soft-launches commenting – UGC search results

Google Lego 50th Anniversary InspirationImage by manfrys via Flickr

People are often comparing Twitter with Facebook. They’re wrong to do this. Facebook is about connections, friends and contacts. Twitter is not about this at all. It’s about information and search.

The real value of Facebook is when you have a group of friends with who you share ideas, experiences and content. Twitter, on the other hand is not really built for connecting with people – its real value comes from the comments and contributions that are added to its database and that can then be searched.

That’s why I’ve always preferred to compare Twitter with Google. On Google I search for information and get a set of results based on which sites score most highly in their algorithm. On Twitter I search for information and get a set of results based on which links are most often read and forwarded by other users. Google produces mathematical search results. Twitter produces UGC ones. Until now.

ZDNet is reporting that Google has soft-launched public comments on search results:

Google’s Searchology press conference unveiled a boatload of new features including different ways to visualize results, better support for semantic markup, and more. But when I was looking at the results page, I noticed a little comment icon. There was no mention of this.

The article goes on to describe how some users can now comment on search results and this is made pubilc to others. I cannot see this yet and so it is probably being rolled-out across the user-base slowly.

This is a huge change and shows that Google is taking seriously the potential threat of Twitter and other UGC search sources. Allowing users to comment on search results really could combine a solid algorithm with user’s own expertise. And we know that people are more likely to trust peers when making purchase decisions, so why not when searching online too.

There is obviously a lot to know about how this might work – who can comment, are these comments moderated (and if so how and by whom, will rating of sites be included too, how will Google cope when many thousands of people review one site. But these will no doubt be resolved as people start to comment on search results and use these to inform their own search.

For now we just know that UGC search is serious business. Twitter has integrated search into its main page and now google is allowing comments on it’s own search results. This really does show the power of social media. Once an algorithm would show the those results that were mathematically best suited to our query. Now users influence this – either by searching user content and links on Twitter or, perhaps, the potential for comments on Google itself.

Exciting times.

Is social media making it easier to take research inhouse?

In February this year a survey on the market research industry in 2009 showed two very different pictures. The research, sponsored by online-oriented companies Cambiar, MRops and Peanut Labs, found that whilst clients and agencies alike predicted a small growth in the market of about 1%, this did not tell the full story. Although they saw the market growing slightly in 2009, they thought that the proportion of work that was brought inhouse would increase significantly.

There are a number of reasons for clients bringing research inhouse. The current economic climate is making organisations review external contracts more thoroughly and spend money more carefully, and also making employers use their own staff in the most efficient way possible. So rather than paying  external agencies to do some tasks, clients are using their internal teams instead.

But even without the current economic climate there are deeper reasons for this move inhouse. The survey showed that one in five clients would use social media and social networks to generate sample, and that one in three clients intended to build their own branded community for research. The use of social media as part of the research process is changing the role of agency and client and changing the range of tools and methodologies available to us all. It can seem to make it easier for us all to do research, find people, watch what they are discussing and ask them questions.

We wrote yesterday about the promise of online research communities, and how too often they don’t quite live up to this. Whilst social media is empowering clients and agencies alike to do research in different ways, there is still a role for both. A good online research community is not just about asking the right questions, it’s about engaging people, building a real community that is vibrant and active and ready to contribute to research, innovation, word-of-mouth and in many other ways.

To do this isn’t easy. Whilst social media may make access to people and the ability to build a community site easier, it does not make motivating, moderating, and working with community members any easier. In fact it adds a whole range of new problems. How do you design a community that really meets your business needs? How do you find and engage the people you want to? How do you grow and build members, conversations, activities and word-of-mouth? How do you make sure that the brand is represented well in the community, and that the community is represented well in the organisation? How do you deal with negative discussions as well as positive ones?

These and other questions are the new challenges that social media and online communities present for research. If there is a move inhouse that is not necessarily a bad thing for the industry. It may be that certain parts of the research process are taken inhouse, whereas others are left for agencies to support. Agencies can operate where they add value most and where their expertise is best put to use. Clients, for their part, can take more control or have greater influence over some parts of the process. Exactly how this relationship changes is not yet clear, but change it will.

Clients will take more things inhouse, but have greater need for agency support in new areas. To cater for this, agencies need to change and some of their traditional roles may become redundant. For me that’s the bigger story for the market research industry in 2009.

I’ll be talking about the changing client-agency relationship, and in particular how clients can manage their own online research communities at the Online Research Methods conference in London in June.

When online research communities don’t live up to their promise

We’ve written before about the real power that online research communities can bring to a brand, and also of the way in which you can get insight from any online community. The promise of rich insight is great – real people talking to each other about your brand, market and competitors. They provide a real hub for innovation and co-creation and give you access to real-time insight. But sometimes they just don’t seem to work, they just don’t deliver what you might expect.

At FreshNetworks we have built online communities from scratch, and also worked  with organisations who have an incumbent online research community that isn’t living up to its promise. Through this experience we’ve developed the following four tips to help discover what the problem might be:

1. Do you actually have a panel, not a community?

Research panels and online research communities are very different. They work in different ways, deliver different types of research and insight and are useful for different business objectives. The biggest failing that we see with online research communities is that what you really have is a panel of people and not a community. The discussions tend to be between the brand or agency and community member, rather than peer-to-peer in the community. And you find that the majority of your traffic comes when you send an email about an activity, survey or discussion that you want people to respond to.

This can be the most difficult problem to solve. You need to think again about who you want to engage and why and  build an engagement strategy alongside your research plan.

2. Do your community members actually want to engage with you?

Wanting to engage with people in an online community is really only half of the story. There are probably lots of things that you want them to do, but do they really want to do them? And if so do they want to do them in your community?

The difference between an online research community and other forms of market research is that you want to build and grow a community of people to work with to help you for insight and research. You can’t call through a list of people until you find those who want to answer your questions. You need to build a community that targets and meets the requirements of the people you want to engage so that they will be there to answer your questions when you have them. If they don’t actually want to engage with you, this can be difficult.

3. Are you incentivising in the right way?

The topic of incentives is one much discussed in market research – should you incentivise people, for what behaviours and with what reward? Get your incentive structure wrong and you will encourage and grow the  wrong behaviours. People will only contribute to your online research community to an extent they think appropriate for what they are getting in return.

The signs that your incentivisation structure is wrong includes unusually larger churn-rates. Indeed you might see the higher rates of churn typical of a research panel, rather than the low churn rates we see in online research communities. You’ve moved people from the social context of the community to a market context where they aren’t engaging with you but transacting.

4. Are you part of your community?

The role of the brand and agency is changing with the growth of online research communities (a topic I shall be returning too at the Online Research Methods conference in London June). One major change is that rather than the agency and brand always asking the questions, and the respondent answering, the playing field is levelled somewhat. Online research communities only really work if you play a role in the community as a peer, rather than trying to lead or direct it.

You have questions to ask and activities that you want people to do, but you also need to join in the conversations. Don’t always ask questions, but answer some too. Join the forums, talk about yourself – give a face and a name to the research and the brand. This makes the experience better and fairer for everybody. And also more enjoyable for you. Where this doesn’t happen, where the agency or brand hides behind an ‘Admin’ name, or doesn’t engage in the community, you miss out on a whole range of real, rich benefits.

So, if you see an online research community that you think just isn’t living up to its promise then ask these four question of it. Of course, identifying the problem is less than half the battle. The next step is to fix it.

What right do brands have to do research in social media?

Last month I spoke at the Conversations event in London, debating with Jeremy Brown, from Sense Worldwide, the right that brands have to do research in social media. The debate was lively in in ten minutes we managed to pack in a lot: co-creation, why the best ideas come from outside your business, what you have a right to ask people where, online research communities and why people really will talk about washing powder online.

I talk about using research and in particular online research communities as a base for open innovation, and a way to get input from those outside your organisation. We also discuss whether there is a limit to the types of people that will engage with research in this way or the topics that are suitable for discussion. In our experience at FreshNetworks, the answers to these questions are not as clear cut as many may assume. There are a vast range of people that you can engage in an online community who may not typically be heavy users of social media for entertainment. It is also often surprising the topics people are willing to talk about – if you can establish what about the topic matters to them and why they would share and discuss this, you can get valuable insight on a really diverse range of things. Even on washing powder.


Conversations, London – Jeremy Brown, Matt Rhodes from designbyfront on Vimeo.