Social Media Marketing & Measurement in the Age of the Customer

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1 Social Media Marketing & Measurement in the Age of the Customer Eric Yale Digital Business Practice Forrester Research Challenge thinking. Lead change.

2 Here is what I ll be talking about.. We are in The Age of the Customer Marketing / Sales Funnel vs. Customer Lifecycle Stop measuring social engagement Understand Your Social Customer Social Marketing RaDaR Case Studies: creating social reach, depth, and relationship Thoughts to take back to the office 2015 Forrester Research, Inc. Reproduction 2

3 Welcome to The Age of the Customer Age of manufacturing Mass manufacturing makes industrial powerhouses successful Ford Boeing GE RCA Age of distribution Global connections and transportation systems make distribution key Wal-Mart Toyota P&G UPS Age of information Connected PCs and supply chains mean those that control information flow dominate Amazon Google Comcast Capital One Age of the customer Empowered buyers demand a new level of customer obsession Macy s Salesforce.com USAA Amazon A 20-year business cycle in which the most successful enterprises will reinvent themselves to systematically understand and serve increasingly powerful customers 2015 Forrester Research, Inc. Reproduction 3

4 Requires focus on four key market imperatives Turn big data into business insights Transform the customer experience Build value around the customer, not the channel or product Embrace the mobile mind shift Become a digital business 2015 Forrester Research, Inc. Reproduction 4

5 What does it mean to become customer obsessed? A customer-obsessed enterprise focuses its strategy, its energy, and its budget on processes that enhance knowledge of and engagement with customers and prioritizes these over maintaining traditional competitive barriers Forrester Research, Inc. Reproduction 5

6 Power has shifted from seller to buyer 2015 Forrester Research, Inc. Reproduction 6

7 Marketer s dilemma: attention is fatigued and there is information overload Past Attention Abundance Today Information Overload Information Scarcity Attention Fatigue 2015 Forrester Research, Inc. Reproduction 7

8 Fact check: attention spans 8 Seconds 9 Seconds 2015 Forrester Research, Inc. Reproduction 8

9 Its time to retire the traditional marketing/sales funnel Elias Lewis ( ) 2015 Forrester Research, Inc. Reproduction 9

10 The Customer Lifecycle to the rescue Customer is at the center It considers the complete brand experience Mobilize People, Tools, And Systems To Move Toward The Customer Life Cycle 2015 Forrester Research, Inc. Reproduction 10

11 Technology is a part of how we travel 38% of US travelers use social networks while traveling 88% of travelers take mobile devices with wifi or 3G capabilities on vacation 68% of travelers globally use mobile devices to connect with friends and family, 22% for work tasks Over 50% of travelers will pack travel apps on their devices before going on vacation Over 1/3 of travelers will share vacation-related content if they think friends/family will enjoy seeing it Source: North American Consumer Technographics Travel & Auto Online Benchmark Recontact Survey, Forrester Research, Inc. Reproduction 11

12 Social media is growing up Note: All numbers rounded down Source: Forrester Research Social Media Forecast, 2014 to 2019 (US) 2015 Forrester Research, Inc. Reproduction 12

13 But it s still not creating business value 2015 Forrester Research, Inc. Reproduction 13

14 But it s still not creating business value Note: Not all responses are shown Source: Forrester s Q Global Social Relationship Platform Wave Online Survey 2015 Forrester Research, Inc. Reproduction 14

15 Biggest problem: Measurement Source: Forrester s Q Global Social Relationship Platform Wave Online Survey 2015 Forrester Research, Inc. Reproduction 15

16 Fact: measurement and optimization are what allowed other digital channels to grow Note: All numbers rounded down Source: Forrester s US Digital Marketing Forecast, 2014 To 2019 report Forrester Research, Inc. Reproduction 16

17 But social marketers still measure the wrong metrics Base: 84 Forrester Groundswell award entries (2015) 2015 Forrester Research, Inc. Reproduction 17

18 Reality: social engagement barley exists Source: Forrester Report How Top Brands Use Facebook, Twitter, and Instagram August Forrester Research, Inc. Reproduction 18

19 To succeed in social, study your audience The most important question is no longer whether your customer use social media but rather how best you can use social media to interact with those customers Social Technograhpics Score Tells you how important social is to your marketing plan Social Technograhpics Life Cycle Rankings Guide you to the right social marketing strategy Social Technograhpics Intensity Matrix Helps you develop the best social marketing tactics Source: Forrester Report Social Technographics Defines Your Social Strategies and Tactics October Forrester Research, Inc. Reproduction 19

20 First, learn how important social media is to your marketing plan 27% of US Online adults who fit into this category are free spending, hungry to own the best brands, and receptive to marketing messages Social Stars demand social interactions with your company. Social Savvies expect social interactions with your company. Social Snackers appreciate social interactions with your company. Social Skippers spurn social interactions with your company. Source: Forrester s North American Social Technographics Online Benchmark Survey Part 1, Forrester Research, Inc. Reproduction 20

21 Second, find the data you need to craft a social strategy Once you know whether social media matters to your audience, dig deeper to learn where social media fits into their customer lifecycle US online adults are social savvies who use social for exploration and discovery Source: Forrester s North American Social Technographics Online Benchmark Survey Part 1, Forrester Research, Inc. Reproduction 21

22 Third, get the insights you need to develop the right social tactics Each box in the matrix represents the combination of one behavior in one location Prioritize combinations that score very high - this indicates that 40% or more of your audience engages in that behavior on that type of site Make combinations that score high a secondary focus. Think twice before targeting combinations that score medium Source: Forrester s North American Social Technographics Online Benchmark Survey Part 1, Forrester Research, Inc. Reproduction 22

23 Solution: use the customer lifecycle to show value Social relationship tactics build stronger engagement with your best customers Social reach tactics help people discover your brand, product, and promotions. Social reach tactics help prospects explore and buy your products 2015 Forrester Research, Inc. Reproduction 23

24 Example: Creating social reach Four Seasons studied how WoM created new leads for the sales team 1 2 Focused on whether people research the services in more detail More than on-third of visitors from social media downloaded a brochure or made a booking inquiry Forrester Research, Inc. Reproduction 24

25 Example: Creating social depth Starwood studied whether Facebook fans use more of the company s offerings 1 Most important metric was cross-sell Measured clicks on its posts and then used web analytics to track how many people converted into the new program Forrester Research, Inc. Reproduction 25

26 Example: Creating social relationship Starbucks asked Pumpkin Spice Latte fans to show their loyalty Success metric was increased sales among its loyal customers Pumpkin spice latte fans got so excited that first-week sales increased by 22% YoY Interact with customers who love the product 2015 Forrester Research, Inc. Reproduction 26

27 Summary & Key Takeaways Bad measurement = bad outcomes Take the engagement metrics off your reports If you can t prove success, it can t help you optimize Stop measuring social engagement and start utilizing the customer lifecycle to show social marketing success/value Focus on creating social marketing reach, depth, and relationship Every platform has it s own use case: swim with the current Hypertargeted, well informed, and customer-centric social content cuts through the clutter 2015 Forrester Research, Inc. Reproduction 27

28 Thank you Eric Yale linkedin.com/in/ericyale

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