Logic+Emotion

Thoughts On Altimeter's Digital Influence Report

Altimeter's most recent report titled "The Rise of Digital Influence" revolves around the theory and practice of "digital influence". A trend that will not die despite the industry's counter movement against platforms such as Klout and the scores of imitators which have subsequently followed. (Full disclosure, I was interviewed in depth for the report). Altimeter rightfully begins the analysis of "digital influence" by calling out the distinction from how we view influence traditionally and offering a brief definition:

"Traditional influence is defined as the act, power, or capacity of causing an effect in indirect or intangible ways. For the purpose of this report, we will use the following as the definition for Digital Influence: The ability to cause effect, change behavior, and drive measurable outcomes online."

The last line is really important as it gets to the crux of the complexity and controversy of looking at digital influence: the difference between measuring the potential to influence action and the actual outcomes of that potential—connecting the two is where the rubber meets the road.

Pillars of Influence

Altimeter does a nice job of articulating "Pillars of Influence"—a similar construct to one I had worked on last year, but I really like how they've fleshed out a way of looking at the building blocks of how you build upon the potential to influence decision and actions. They are:

Pillar 1 — Reach: Relationships form the union of the social graph and define how far information can travel across the social graph and communities at large. Reach is a measure of popularity, affinity, and potential impact.

Pillar 2 — Relevance: Topical relevance is the glue of the interest graph and the communities of focus. Individuals aligned through subject matter create a series of linked relationships that send information along communities of focus.

Pillar 3 — Resonance: The culmination of reach and relevance serve as the foundation for “the score.” Here, resonance is the measurement of the duration, rate, and level of interactivity around content, a topic, or conversations. High resonance ensures that more people will see each post or update. In theory, this number determines the reach of activity and how long it can stay alive in the social streams of online consumers.

Notice that there is no mention of tools in these pillars. This is because, tools and platforms do not dictate what the pillars are and are only helpful in supporting the intent of an outcome. Measuring influence in the digital realm is always a means to an end and never and and itself. 

Social Capital: The Soul of Digital Influence

Probably my favorite part of the report and what Brian and I spent a good deal talking about was the concept of "social capital" and it's correlation to an effect. When looking at programs which are fueled by tapping digital influence, it comes down to the social currency of individuals which is much more critical than network size. A large group of individuals who have built up social capital over time can be just as influential as a small highly connected group with similar capital built up. Combine these dynamics with the size and quality of their social graphs and you have the basic chemistry to create an effect. When we raised nearly 17 thousand dollars for a family in need (effect) I observed that it was less about the size of people's networks (it took large and small ones to move the needle) and more about the quality of them.
 

Influence Metrics: Measuring Impact

Surprisingly or perhaps less so, Altimeter's report lays out a set of high level metrics which can be used as a starting point when building your own measurement framework against programs which involve digital influence. What I noticed most is that nearly all of the below metrics are consistent with many external social programs, and even more broadly consistent with traditional metrics which have always resided within either public relations or marketing business functions. The biggest take away here is that while digital influence tools and techniques may have evolved at the core it's being embraced as an upgrade to both traditional marketing and public relations. Altimeter's metrics include:

•    Brand Lift/Awareness — Benchmark where the company is today in social networks, and set goals and KPIs to improve brand awareness and reach.
•    Brand Resonance — How often is your business discussed in the social web today? Define how resonance will keep your business top of mind and to what extent can be driven through influence programs.
•    Reach Through Advocacy and WOM — Existing advocacy and WOM initiatives can be designed to influence customer behavior and decisions.
•    Sales/Referrals — Through special offers and promotions or exclusive incentives for engagement, brands can drive leads, sales, and referrals.
•    Sentiment/Shift — Negative or indifferent perception can be shaped toward positive or favorable views.
•    Thought Leadership/Authority — Tapping into the communities of expert individuals can help your brand tap its social capital to contribute to the stature within the community you hope to earn.
•    Demand — Invest in demand creation through exclusive programs and intentional outcomes.
•    Trends — Changing behavior is possible once you understand what it is today, how you see it evolving, and identifying the right people and value to help you get there.
•    Audience — Investing in the size of your community and its quality is a function of design and purpose, and its value grows through strategic alignment and engagement.

Why It Matters: People Don't Change, But Digital Behaviors Do

The report is worth reading not only for it's concise constructs, but also for it's collection of real world case studies as well as it's overview of tools. (Disclaimer: Tweetlevel is an Edelman platform and I am on the advisory board for Appinions). However the report is timely as it underscores a reality—while the basics of communication and interactions remain the same, our digital behaviors are constantly evolving whether it be the newly empowered consumer class or the ability for individuals who have never met in person to weave powerful and influential online networks. Understanding, measuring and tapping digital networks is fast becoming the equivalent grassroots efforts meets rewards programs. As individuals continue to build up their networks earning and spending social capital, businesses will seek to align themselves with the most relevant and connected groups.

A full version of the report can be found on Slideshare: (below).

The Rise of Digital Influence

View more documents from Altimeter Group Network on SlideShare

Klout Targets Agencies Via "March Madness" Competition

Klout has dialed up their marketing efforts, this time placing agency individuals in a March Madness bracket style competition they are calling "Agency Insanity".  Critics will scoff at it as another attempt to get individuals to pump up scores, but in actuality the effort is a straight forward marketing initiative aimed at raising awareness, generating buzz and getting Klout to show up in people's social streams. A while back, Klout's founder Joe Fernandez and I discussed something like this as part of a brand initiative and it's interesting to see it in action under a different context.

I'm playing along as are my colleagues Steve Rubel and Michael Brito. Speaking for myself—if I end up winning, I'm going to figure out how to give the grand prize away (a Vegas get away) perhaps to a couple who could really use it. Our team will still get the free Pizza party. Don't like the tactic? Get used to it. Social marketing techniques are increasingly designed to get others to compete while leveraging their networks in the process (gamification leverging social currency). It's actually taking an old model and updating it for a social era.

Four Ways I Participated @ SXSW

Photo by Geoff Livingston

The interactive portion of SXSW is over—and by all accounts this year was the biggest (wettest) and probably the most "mature" of the event as more senior individuals from companies across the globe make their Mecca to Austin to network and learn about the convergence of technology and business. Here's a quick roundup of a few things I participated in and what I thought about them:

The Social Business Summit Soars

One of the highlights for me was the Social Business Summit hosted by The Dachis Group which kicked off SXSW. The event is intimate and invite only and I thought it was one of the better "signal to noise" ratio events connected to SXSW. IBM's Sandy Carter did a really nice job setting up the day with her social business construct and the folks at Dachis Group did an exceptional job orchestrating the speakers ranging from big strategic thoughts, to the nitty gritty practice as demonstrated by folks from Discover Card and US Cellular to wrapping up with views on "what's next" highlighting trends such as social shopping. The event caught the attention of Forbes Magazine which did a write up titled "What Do the Extinction of Dinosaurs and Social Business Have in Common?"

SXSW Winners & Losers: Panels vs. Big Data

Legend goes that SXSW panels are hit and miss—and sometimes they even present opportunities to catch up on much needed sleep! I didn't attend many panels this year due to a fairly packed schedule of business meetings, client lunches and dinners and of course our own events, but I did see the interview of Dennis Crowley billed as "Making The Real World Easier To Use". The session was decent overall, nothing groundbreaking—however one thing Dennis talked about that I thought made immediate sense was how location based services like Foursquare can become more utilitarian as they get smarter. For example, as Forsquare remembers places you visit, it could make recommendations on similar places in different locations and serve them up to you. "Big Data", was a re-occurring theme in not only this panel, but perhaps the entire conference. I'd even say "Big Data" was this year's Twitter for SXSW.

Allhat Rides Again 

This year marked our fourth "Allhat" event at SXSW—a tradition which started as a simple "tweet-up" several years ago. By all accounts it was the most well attended event we've hosted and my co-host Richard Binhammer and I were relieved that the weather cooperated. The Sun literally came out minutes after we opened the gate at Guero's. One of the coolest things about the events are the photos people take. You can view some great ones here, here, and here.

Measuring Media (Not Social ROI)
I also participated on a panel titled "Media Measurement: Science, Art or a Load of Crap" where we discussed the intricacies of what to measure when it comes to digital and social data, how to measure it and what it means. Bottom line, this is an area in infancy especially when it comes to the social side, but for whatever reason—our panel didn't cause the same stir as the panel on Social ROI before us. Below are some highlights from our measurement panel:

As usual, SXSW was a flurry of activity and for some an exercise in being both seen and heard. This year, you could see huge efforts from big brands like AMEX with huge activations including celebrities. Even agencies like R/GA got in the mix by driving a big white bus around with their logo prominently placed. At Edelman we sent over fifty staffers and hosted our second "Nightcap" event. To me, SXSW has evolved from a scrappy tech festival where geeks and start-ups gathered, to a high powered networking event which blends social and business seamlessly. It's increasingly important to be at this interesection.

Visual Notes From The Social Business Summit @ SXSW

Rather than write down some notes I thought I'd share a couple of pages from my notebook after the AM session from the Social Business Summit at SXSW. No more updates for a whie as my schedule is packed with business meetings, dinners, events and in person networking. Great summit though.

Weaving The Social Layer Across Your Organization

Next week I am joining thousands of innovators, digital pioneers and social strategists for the interactive portion of SXSW. A highlight of the trip will be joining my former colleagues from social business consultancy Dachis Group who are organizing their third installment of the Social Business Summit—a global series of events which kicks off in Austin. I'll be speaking along side folks like Clarah Shih author of the Facebook Era and who now serves on *Starbuck's board dedicating to navigating social. Other notable speakers include Sandy Carter who has taken the lead on IBM's push for social business integration, Bonin Bough who recently departed *PepsiCo to lead social efforts at Kraft and of course Jeremiah Owyang who has helped define this space.

We Are Here: The Novelty Is Over
I'm starting my premise with the fact that many organizations (especially those who have led in social initiatives) are now past the "experimentation" phase of social disruption. Some are even beginning to take a step back to evaluate what they've done in the past—what worked and didn't and how things need to more forward at scale. For many organizations who have gotten past the unrealistic expectations first experienced when social got traction in their organization, they now understand that the changes needed to take place will be long term, gradual and not exactly glamorous. That said, we have a long way to go, and my take is that social business is really only getting started.

From Silos To Layer: Weaving Social Into Your Organization's DNA
Despite the progress that many organizations, businesses and brands have made over the past few years—the reality is that for many, social integration isn't integrated. It's happening, but typically within silos and some are moving faster than others. Take for example the most recent changes announced by Facebook last week which affect business pages. Some companies responded to the changes immediately while others are still grappling with what they need to do and how they need to do it. Even in the cases where an organization has high proficiency using social in one silo (like marketing and communications) they are grappling with how to apply it to others. There are few examples emerging however which illustrate some convergence—Dominos Pizza for example has recently integrated product development with social marketing in their "Think Oven" initiative which invites customers to submit ideas or predefined participate in projects all via a Facebook app which is built into their business page. What Dominos is doing may be the tip of the iceberg, but getting your customers to work with you for mutual gain is a core value of what social business is supposed to be about.

Weaving The Social Layer Will Take Time
Still, the Dominos example isn't a success story as much as it is a mere signpost on the very long and winding road that is social business. Even with the ability to mine ideas from enthusiastic customers via social networks which are part of their lives, there are still operational challenges which include coordinating activities between the marketing department, agency partners, product development, and even legal. Right now, most organizations are making progress in pockets vs. the whole and it's going to take significant time for social to be woven into the fabric, culture and operations of any company. And, it's likely to not happen to all, but will definitely happen to some. The next ten years will be critical for a business in how it handles these disruptions and opportunities. We've now entered the threshold where the "weaving" of social into the fabric of an organization will take vision, time, resource, money, dedication and most importantly—patience.

*Starbucks and PepsiCo are Edelman clients