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McKinsey & Company | 1
McKinsey on Marketing & Sales – Slideshare Brief
LAREINA YEE | @LareinaYee
@McK_MktgSales
The Social
Enterprise
How your customers produce
and consume in the social world
McKinsey & Company | 2
Productivity & Management
Social is
shaping
enterprise
McKinsey & Company | 3
Social is easier
today
McKinsey & Company | 4
Record speed
adoption
SOURCE: Multiple press reports
Time to reach 50 million users
Radio 13 years
iPod 3 years
Internet 4 years
Facebook 1 year
Twitter 9 months
TV 38 years
McKinsey & Company | 5
Social is everyone
SOURCE: eMarketer, February 2011, McKinsey Global Institute Analysis
Age
NOTE: Numbers may not sum due to rounding.
16 14 13
20 18 17
22
21 21
65+
15
2
12--17
2011
0-11
18-24
25-34
35-44
45-54
55-64
18
10
4
2010
2
17
15
9
4
2009
2
16
14
8
3% of total US users
McKinsey & Company | 6
Social is growing faster than
traditional communications
Unique monthly visitors
SOURCE: comScore Media Metrix, October 2011; McKinsey Global Institute Analysis
31
36
-5 p.p.
2011
64
2007
69 53
69
-16 p.p.
31
47 44
18
100% =
1,430
+26 p.p.
82
76056
E-mail Instant messaging Social networking
Users of service
Non-users
% of global online population
McKinsey & Company | 7
Enterprise usage is growing fast
SOURCE: McKinsey Global Institute
2011
41
2008
29
2011
50
2008
23
2011
38
2008
27
Blogs Video Sharing Social Networking
% of respondents of enterprise users
Social is in the enterprise
McKinsey & Company | 8
Social impacts enterprise
processes
SOURCE: McKinsey web 2.0 survey, 2011, McKinsey Quarterly
Scanning external
environment
Finding new ideas
Managing projects
Developing strategic
plan
Allocating resources
Social
networking
n = 1,728
Wikis
n = 809
Micro-
blogging
n = 654
Prediction
markets
n = 190
Blogs
n = 1,322
40 9 13 529
36 12 13 429
19 17 5 212
16 8 5 411
10 4 2 25
20 - 40% 5 - 10%
10 - 20% Less than 5%
Top Ranking
Dimensions Total
75
73
56
43
30
McKinsey & Company | 9
Greater collaboration
drives value
SOURCE: McKinsey Global Institute analysis
Total value at
stake
% of revenue
Product
development
Operations
and
distribution
Sales and
marketing
Customer
service
Business
support
functions
Financial
services
Insurance—
P&C ~3–6
Insurance—
life ~3–4
Retail banking ~4–7
Consumer packaged goods ~5–6
Professional services n/a ~8–11
Advanced
manufacturing
Semi-
conductors ~5–7
Automotive ~4–6
<0.5
0.5–2.0
>2.0
Potential value chain productivity benefit
McKinsey & Company | 10
Distributes decision making
Creates permeable
organizational boundaries
Rapid adaptation and a shift
to more iterative problem
solving and product delivery
Your customers’
environment is different
McKinsey & Company | 11
5ways social is
shaping your
customers
McKinsey & Company | 12
Customers conduct research on products and services
well ahead of the official start to the sales cycle
#1DIY
prospecting
McKinsey & Company | 13
Peer
influence
Customers pulse their peers at every step of the journey
#2
McKinsey & Company | 14
Trial before
purchase
User testing; grassroot support; no longer a single decision
instance; smaller purchase bundles
#3
McKinsey & Company | 15
Buyer & user
are the same#4
Changes decision and influence points
in enterprise purchasing
McKinsey & Company | 16
Click to
compare
Pricing transparency is foundational; consumer
expectations have shaped enterprise behavior
#5
McKinsey & Company | 17
Change is good
Reboot sales
& marketing
teams
McKinsey & Company | 18SOURCE: Internet search, Salesforce.com video library; KLM Facebook page
Reimagine data and
customer loyalty
McKinsey & Company | 19SOURCE: McKinsey Marketing and Sales practice, McKinsey Quarterly ―The consumer decision journey‖
39
26 22
28
11
12
26
42
100%
Marketing led by
the company
Marketing led by
the consumer
Previous experience
with product/brand
Contact in store/
with sales agent
31
5
37
21
▪ Word of mouth
▪ Online research
▪ Recommendations/
criticisms
▪ Traditional advertising
▪ Direct marketing
▪ Sponsorship
▪ Store experience
Consider | Evaluate | Buy
Rethink how you
reach customers
McKinsey & Company | 20
9.3% increase in
customer
satisfaction as
benchmarked by
American Customer
Satisfaction Index
150,000 customers
helped through
Twitter
Personalized
10 versus 25,000
@comcastcares = ―Make it Right‖
Alternative rather than primary customer
support channel
Handles customer complaint in public
arena
SOURCE: Internet search, Comcast Twitter Feed, Business Week 2009 ―Comcast’s Twitter Man‖
Reimagine service
and information
McKinsey & Company | 21SOURCE: McKinsey expert interviews
Customer asks Account Leader for additional information about product capabilities . . .
~5-10 emails
~3 man hours
2 days round trip
~5-10 tweets/
Chatters/ Jabbers
~30 minutes
2 hours round trip
Redefine sales
team workflow
McKinsey & Company | 22
The business case is clear
Your customers’
expectations are shifting
Be ready to adapt
Social sales & marketing
McKinsey & Company | 23
LAREINA YEE | @LAREINAYEE
@McK_CMSOForum
―Social economy: unlocking value and productivity through social technologies‖
http://www.mckinsey.com/insights/mgi
The Social
Enterprise
How your customers produce
and consume in the social world

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The social enterprise

  • 1. McKinsey & Company | 1 McKinsey on Marketing & Sales – Slideshare Brief LAREINA YEE | @LareinaYee @McK_MktgSales The Social Enterprise How your customers produce and consume in the social world
  • 2. McKinsey & Company | 2 Productivity & Management Social is shaping enterprise
  • 3. McKinsey & Company | 3 Social is easier today
  • 4. McKinsey & Company | 4 Record speed adoption SOURCE: Multiple press reports Time to reach 50 million users Radio 13 years iPod 3 years Internet 4 years Facebook 1 year Twitter 9 months TV 38 years
  • 5. McKinsey & Company | 5 Social is everyone SOURCE: eMarketer, February 2011, McKinsey Global Institute Analysis Age NOTE: Numbers may not sum due to rounding. 16 14 13 20 18 17 22 21 21 65+ 15 2 12--17 2011 0-11 18-24 25-34 35-44 45-54 55-64 18 10 4 2010 2 17 15 9 4 2009 2 16 14 8 3% of total US users
  • 6. McKinsey & Company | 6 Social is growing faster than traditional communications Unique monthly visitors SOURCE: comScore Media Metrix, October 2011; McKinsey Global Institute Analysis 31 36 -5 p.p. 2011 64 2007 69 53 69 -16 p.p. 31 47 44 18 100% = 1,430 +26 p.p. 82 76056 E-mail Instant messaging Social networking Users of service Non-users % of global online population
  • 7. McKinsey & Company | 7 Enterprise usage is growing fast SOURCE: McKinsey Global Institute 2011 41 2008 29 2011 50 2008 23 2011 38 2008 27 Blogs Video Sharing Social Networking % of respondents of enterprise users Social is in the enterprise
  • 8. McKinsey & Company | 8 Social impacts enterprise processes SOURCE: McKinsey web 2.0 survey, 2011, McKinsey Quarterly Scanning external environment Finding new ideas Managing projects Developing strategic plan Allocating resources Social networking n = 1,728 Wikis n = 809 Micro- blogging n = 654 Prediction markets n = 190 Blogs n = 1,322 40 9 13 529 36 12 13 429 19 17 5 212 16 8 5 411 10 4 2 25 20 - 40% 5 - 10% 10 - 20% Less than 5% Top Ranking Dimensions Total 75 73 56 43 30
  • 9. McKinsey & Company | 9 Greater collaboration drives value SOURCE: McKinsey Global Institute analysis Total value at stake % of revenue Product development Operations and distribution Sales and marketing Customer service Business support functions Financial services Insurance— P&C ~3–6 Insurance— life ~3–4 Retail banking ~4–7 Consumer packaged goods ~5–6 Professional services n/a ~8–11 Advanced manufacturing Semi- conductors ~5–7 Automotive ~4–6 <0.5 0.5–2.0 >2.0 Potential value chain productivity benefit
  • 10. McKinsey & Company | 10 Distributes decision making Creates permeable organizational boundaries Rapid adaptation and a shift to more iterative problem solving and product delivery Your customers’ environment is different
  • 11. McKinsey & Company | 11 5ways social is shaping your customers
  • 12. McKinsey & Company | 12 Customers conduct research on products and services well ahead of the official start to the sales cycle #1DIY prospecting
  • 13. McKinsey & Company | 13 Peer influence Customers pulse their peers at every step of the journey #2
  • 14. McKinsey & Company | 14 Trial before purchase User testing; grassroot support; no longer a single decision instance; smaller purchase bundles #3
  • 15. McKinsey & Company | 15 Buyer & user are the same#4 Changes decision and influence points in enterprise purchasing
  • 16. McKinsey & Company | 16 Click to compare Pricing transparency is foundational; consumer expectations have shaped enterprise behavior #5
  • 17. McKinsey & Company | 17 Change is good Reboot sales & marketing teams
  • 18. McKinsey & Company | 18SOURCE: Internet search, Salesforce.com video library; KLM Facebook page Reimagine data and customer loyalty
  • 19. McKinsey & Company | 19SOURCE: McKinsey Marketing and Sales practice, McKinsey Quarterly ―The consumer decision journey‖ 39 26 22 28 11 12 26 42 100% Marketing led by the company Marketing led by the consumer Previous experience with product/brand Contact in store/ with sales agent 31 5 37 21 ▪ Word of mouth ▪ Online research ▪ Recommendations/ criticisms ▪ Traditional advertising ▪ Direct marketing ▪ Sponsorship ▪ Store experience Consider | Evaluate | Buy Rethink how you reach customers
  • 20. McKinsey & Company | 20 9.3% increase in customer satisfaction as benchmarked by American Customer Satisfaction Index 150,000 customers helped through Twitter Personalized 10 versus 25,000 @comcastcares = ―Make it Right‖ Alternative rather than primary customer support channel Handles customer complaint in public arena SOURCE: Internet search, Comcast Twitter Feed, Business Week 2009 ―Comcast’s Twitter Man‖ Reimagine service and information
  • 21. McKinsey & Company | 21SOURCE: McKinsey expert interviews Customer asks Account Leader for additional information about product capabilities . . . ~5-10 emails ~3 man hours 2 days round trip ~5-10 tweets/ Chatters/ Jabbers ~30 minutes 2 hours round trip Redefine sales team workflow
  • 22. McKinsey & Company | 22 The business case is clear Your customers’ expectations are shifting Be ready to adapt Social sales & marketing
  • 23. McKinsey & Company | 23 LAREINA YEE | @LAREINAYEE @McK_CMSOForum ―Social economy: unlocking value and productivity through social technologies‖ http://www.mckinsey.com/insights/mgi The Social Enterprise How your customers produce and consume in the social world