7_Future

[|Andreas Weigend] MBA 267, Spring 2009-B Haas School of Business, University of California at Berkeley
 * Marketing 2.x: The Social Data Revolution**

=**Class 7: The Future**= May 7, 2009 Audio recording and transcript: Part 1: [|mp3] [|transcript] Part 2: [|mp3] [|transcript]

=**Agenda**= >>>> The end takeaway: It's not trivial. There are many effects. Facebook doesn't have an overall objective.
 * Recommender systems
 * Two things to keep in mind:
 *  1.  Social recommendations matter more than anything else. Mass media disconnected us from social recommendations for a while (Superbowl ads, etc.). With the social data revolution, people are openly sharing information about products.
 *  2.  Contextual /situational recommendations. Trying to understand the situation a person is in (for example, sitting at home, trying to catch the bus, . . . ). It’s not just about the context, but really the mindset someone is in. Are they ready to accept the recommendation?
 * Matching
 * Global objective
 * What should facebook be trying to optimize in their friend recommendations (People you may know)? Suggestions included:
 * 1) Trying to make less active users into more active users
 * 2) Watch out - if you do too much, people m ay drop out. Example was from Asia
 * 3) The number of new friends who are made.
 * 4) The number of friends who are brought in by new friends
 * 5) Getting all the friend links together increases the value of the overall data set and marketing to them
 * Rich order types
 * Surveys have to be fun, can't be 7 pages. Things have to be lightweight.
 * Example: "I have that problem too" button from airlines
 * We have moved away from a strict Amazon system of recommending things to people simply. Now there are also more contextual recommendations. Recommendations are also C2C rather than just B2C.
 * Skout.com - A site that tells you who in your area fits certain criteria. A dating site.
 * Data and beyond
 * How has data influenced marketing?
 * It's no longer influencers that matter. It's now simply connections between everyone. **//Link to paper from website here//**.
 * Regression analysis
 * Transactions -> Interaction - "Instrumenting the world"
 * True power: experiments (live in response to change A/B, not dead data). Historical data isn't as important anymore. Have problems with correllation vs. causation. The web has brought about the key of **feedback loops**, where you can see how your changes have affected user behavior in **real time**.
 * 1st data revolution
 * Everything is public. People interact with search engines and show, but don't expect it to be shared.
 * Also mobile data
 * Social data revolution
 * Everything that you once expected to be private, now you expect to be shared.
 * Explict sharing. willingly and knowingly
 * Who talks to whom?
 * Previous Dell example: We're talking to consumers, and hey maybe the consumers are talking to us through things like warranty cards.
 * And who listens?
 * Companies were B2C, hope for C2B
 * But is it C2C and C2W (private -> public).
 * It is no longer about surveys and hope that people fill them out. They now understand that people talk to other people.
 * eBiz - me-Biz
 * Company focus -> user focus (later: community)
 * eBiz - Is about pages and impressions. Getting people on your site.
 * me-Biz: The individual is in the center. I happen to create data, but I'm in charge of it even though it's on YOUR site. Rather than having CRM, we now have CMR (customer managed relationships)
 * Andreas suggested that we even move to we-Biz, where there is a shift to community
 * Not adversarial relationship
 * Used to be: "If we only get people to buy stuff that they don't want"
 * Airline example: People can get ticket refunded within 24 hours of purchase. Airlines now choose to hide it.
 * Reversal of arrow: Companies also should think about: What can the customer do for me now, rather than what I can do for the customer.
 * Lightweight / Norms
 * Incentives
 * Just another part
 * Giving users self metrics compared to others, we drive people in a certain directions.
 * Example from the Italian Earthquake team - Give people information about how much they've donated.

//Talk cuts off here, Andreas now moves to comments from the class

Comments: //


 * 1) // Companies should focus their efforts on facilitating conversations between customers, listening to that conversation, then responding. Example: Listen to grievances about a product and then change the product. Consumers are now more empowered to reject projects. //
 * 2) Example from Amazon - when a book was scanned for "Search within" it was purchased 7% more than a similar book that was unavailable for search within. Marketing now is still stuck in this superbowl marketing and not focused on helping people find things. There have been studies that indicate that if you knew where to find things, you may spend 3-4x what you do now.
 * 3) Companies will no longer be able to "fool" people with bad products

=**Notes**= Submitted by Alec Schweikert, Nii Sai Sai, Emily Lin, Summer Chen, Jesus Palacios