An Overview of Internet Community Fundamentals and Operations Management

1. An Overview of Internet Community Fundamentalsand Operations Management by Digital Places www.digiplaces.com

2. Capitalizing on “Community” • Sponsorcommunities frequented by target customers • Participate in communities frequented by your high margin target customers, partners and employees. • Build communities to be frequented by those with whom you have the most valued relationships

3. [ ] - - Cost Acquiring Customer Net Profit/Loss ( ) Life of Customer Revenue Avg/Customer * Cost Avg/Customer = The Online Service Equation • Communities are more cost effective than content-focused services because they positively influence each of the four factors in the online service equation: • Members create content which reduces the cost to produce the service. • Active members establish reputations within the community, become committed to remaining and tell friends about it. These dynamics contribute to increasing the average customer life and decreasing the average cost of customer acquisition. • Marketers will pay more for access to committed, active community members who constitute a tightly-focused target market.

4. Operational Highlights • Organize internally for success • Manage the Social factors • Carefully select and train “Caretakers” • Support the Motivators • Provide • Value for their information • Applications • “Presence Infrastructure” & search/browse

5. Community Applications • Msg boards, chat, listserves, IM • Homepage/Profile building and search

6. Agenda • Membership and Presence • Community Profiles • Community Management Roles

7. What Is Community? • Any online group wherein the site developer provides facilities that enable communications among members. May be: • typical message boards and chat • feedback mechanisms like eBay • elaborate virtual worlds like Palace & WorldsAway

8. Organizational Goals • Whyare you investing in developing an online community?

9. Defining Your Membership • Who is your Target Audience? • Demographics • Psychographics • Wants and Needs

10. Online Presence • Enable individuals to express their identity and/or develop a reputation online • Expanding presence increases interaction • Presence => Member communications => Community Experience

11. Creating Presence • Individual Profiles • Information about the member • Provided by the member • Structured by Community Developer • Contains information important to the community • Richness increases depth of engagement

12. Member Involvement • Caretakers - .5% • Motivators - 3% • Actives - 15% • Passives - 80%

13. Figallo’s Community Profiles • Interactivity • Focus • Cohesion

14. Interactivity • Shrines -------- Theatres --------- Cafes • Cafes • Don’t impose strict controls • Advertisements are more tolerated • Shrines • Host knowledge of subject is very important • Heavy participation by host required

15. Focus • Bazaars -------- Malls ---------- Boutiques • Bazaars • Games & play, little focused interaction • Malls • May act as portal sites, ads more tolerated • Boutiques • Deliberate participation, subscription models more likely

16. Cohesion • Loners ------- Associates -------- Families • Loners • Warning sign • Associates • Core of loyal users, lots of interaction • Families • Pre-packaged, value history and traditions • Message boards more effective than chat

17. Management Roles • Executive Producer • Responsible for fiscal success of the business • Community Manager • Responsible for social success of the community • Online Staff • The bridge between you and your community

18. Executive Producer Content & E-commerce Community Manager Webmaster & Designers Remote Staff Customer Service Training & Events Management Relationships

19. Executive Producer • Duties/Responsibilities • Directs creation of total service • Content, e-commerce, and community • May decide business direction and models • Keep community consistent with these goals • Revenue attainment & cost containment

20. Executive Producer • Qualifications • Conscious user of online media • Technically savvy • Business savvy - understands cost/return tradeoffs • Performance Measurements • Total membership, growth • Revenue, Profit/Loss

21. Community Manager • Duties/Responsibilities • Selects, trains and monitors hosting staff • Guides social aspects as they relate to the total service (content, e-commerce, etc.) • Liaison between community members, hosts, producers • Enforce/Implement site policies

22. Community Manager • Qualifications • Naturally sociable person • Sensitivity and knowledge of legal environment • Able to motivate staff and participants • Performance Measurements • Member retention (quality & quantity) • Ratio of community staffing costs to total members

23. Online Staff Roles Advisors, Allies, Ambassadors, Community Proxies, Feedback Gatherers, Greeters, Mediators, Moderators, Representatives, Role Models, Supporters, Teachers….

24. Online Staff Skills/Qualifications • Helpful, patient, tolerant • Initiator, entrepreneur, leader, respected within community • Natural enthusiasm, know their tools, know their own limits

25. Chat Message Boards Events Backend Tools fast typist, efficient communicator, attentive higher degree of communication, summarization moderation, motivation, preparation broader technical savvy, feedback solicitation and summarization Online Staff - Special Skills

26. Recruiting Online Staff • Online communities are a burgeoning training ground • Recruit from services you respect • Balance observation with application process

27. Training Online Staff • Set expectations of effort and conduct • Train to meet those expectations • Teach “how-to” not “do-for” – sowing the seeds of future staff

28. Managing Online Staff • Motivation • Lessons to be learned from DOL versus AOL • Compensation • “The 10th best worker is a volunteer – you can’t make them do what you want to do…” • Scott Kurnit, CEO of MiningCo.com • Burnout • Only you can prevent forest fires.

29. Question: • What is the most important element of any community? ?

30. Answer: • The Members

31. Trust is Central The community belongs to the members. Serving the members is the first and foremost goal. Decisions that subordinate this goal can undermine trust and jeopardize the stability of the group.

32. Violating Trust • Things that undermine trust

33. Generating Trust • One idea for generating trust in community members • Ideas will be posted on www.digiplaces.com by April 30.

34. Keys to Successful Communities • Establish trust • Make visitors feel welcome • Participate with the users • Select Caretakers carefully • Control membership influx

35. Where is Your Community Going? • Plan your community to meet organizational goals • Costs vary based on Interactivity & Cohesion • Control and guide this to meet business goals

36. Where is Your Content Going? • Is your content appropriate to your members needs? • To your needs? • Control your content, don’t let it control you.

37. What are Your Goals for ... • Interactivity? • Cohesion? • Focus?

38. Wrap Up • What one thing will you change, and when will it be done? • What resources are you missing? • Where will you get them?

39. Community Management Digital Places www.digiplaces.com 650-224-4567