The Value of Social Media
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1 The Value of Social Media Getting Down to Business
2 Advancing Social Media Intelligence Jointly ownedby Nielsen and McKinsey; co-developing unique software, metrics, and analytic services Market leader in enterprise social media monitoring/analytics (Source: Forrester) Dataset: Billions of social media conversations per year across 145 million blogs, message boards and social networks Global: 13 markets now ; 20 by EOY 2010; over 150 clients globally Quality is highest in the industry (source: Microsoft) Proprietary technology for analyzing social media Trusted Data Metrics & KPIs Insights Strategic Consulting Process and Organization Digital Marketing
3 You have likely seen the data Social is Significant and Rich with Valuable Consumer Data Globally consumers spend 6 hours a month on Facebook More than 60%of consumers have visited a consumer-driven website More than 2/3 of global consumers use online product reviews to make purchase decisions Facebook Rising >35% of consumers rely on peer recommendations and WOM to make purchase decisions
4 And learned new media frameworks... How Should We Be Thinking About Media in Today s Landscape? PAID EARNED OWNED Purchasedmarketing activities. Generally short term in nature and end in the absence of funding Messaging carried out voluntarily by consumers on behalf of the brand Efforts which occur on proprietary properties which are wholly owned by the Marketer. Example Tactics Traditional TV and Print advertising as well as digital efforts such as Paid Search, Display, Video, Gaming, etc. Consumer ratings and reviews. Online conversations on discussion boards and blogs. Organic search and traditional (offline) WOM Brand Web Sites, Brand tools and apps, and CRM efforts Marketing Objective Drive Awareness Enhance equity / liking Build emotional rapport Personalize branding for consumer Build advocacy Drive credibility of messaging Build community Connect w/ consumers Deliver deep brand or category knowledge Build a sustained relationship with my consumers Drive Sales
5 And discussed new processes 2) Learn, Strategise, and Organise 1) Listen 3) Leverage Listening can be Continuous!
6 And dissected a new funnel Expression 6
7 The Manager go to an Event I keep seeing... then ask the team to do Social Media 7
8 8
9 Increasingly relevant for brands I love this shampoo. I went through a phase in my life where I dyed my hair every color under the sun. This caused my hair to become dry and damaged. No matter what product I used nothing helped. Then this beauty came into my life and my hair is wonderful! I suggest this to anyone with dryness, split ends, or frizz. This product made my hair frizzy, dry and worst of all, led to...hair LOSS! Totally not worth it. I will go back to my old shampoo and conditioner. 26% of online discussion mentions brands SOURCE: NM Incite 9
10 Amplified impact on business Case example: TV buzz (US) 10
11 Social media drives intent Net sentiment and change in purchase intent from buzz exposure (case example) Large increase in intent Difference in intent between exposed and control A B Brand A had a 15% lift in purchase intent vs. 3% for Brand E No increase in intent E D C Net sentiment Less positive buzz More positive buzz SOURCE: NM Incite 11
12 and influences sales Online word-of-mouth influence on purchases (European example) Percent of sales influenced Electronics and computer equipment Beauty care and clothes Finance products/services Telecom services Word-of-mouth is the primary factor behind of all purchasing decisions Travel & Entertainment SOURCE: McKinsey 12
13 Impact spans beyond marketing and sales Measurable impact of using social media and other web 2.0 technologies Percent of companies Increasing marketing effectiveness (e.g., awareness, consideration, conversion, loyalty) Increasing customer satisfaction Reducing marketing costs Reducing customer support costs Reducing travel costs Increasing revenue Reducing time to market for products/services Increasing number of successful product/service innovations SOURCE: McKinsey Global Institute 13
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15 Challenges to social media strategy 15
16 Holistic View of Brand Advocacy Opportunity Sony asked NM Incite to measure online buzz and offline survey data for its TV brand relative to its competitors. The inclusion of both online and offline data was needed to provide a holistic view of Sony s brand health. Methodology Offline surveys were conducted and buzz data from forums, blogs, social networks and product reviews were compiled. In both cases, Sony brand attributes (price, sound, quality, customer service, etc.) were compiled against their competitive set. Insight The advocacy scores differed significantly between online and offline data, as customers tended to be more candid in their online discussions. Blending the two inputs provided a more holistic perspective of customer intentions and experience and insights for Sony and its competitors.
17 The value we see in the BAQ is that it demonstrates impact from a financial point of view which is often difficult to measure in social media. BAQ lets Sony prove the value of social media and allows us to effectively integrate it into the marketing mix model. With the BAQ we can now go to the CMO and say here s the work we are doing and here is how we are measuring it. Christina Stahler Senior Manager, Consumer Insights at Sony Electronics
18 Relevance: buzz can be messy What people tweet ~50% of tweets have useless information...but cutting through this messiness is where the value and the advantage lies. In a word: Unprompted! SOURCE: Nielsen, Google Trends, Mashable 18
19 Advocacy: measuring influentials ThatKevinSmith twitter account 1.6 million followers Southwest Airlines twitter account 1.0 million followers Kevin Smith twitpic caption: Look how fat I am on your plane! Quick! Throw me off! 19
20 Challenges of social media measurement Relevance Reach and impact Advocacy Identifying relevant information Determining the right scope for your brand/product category Measuring the full reach of social media and its influence Quantifying the business impact (marketing ROI) Identifying influencers and measuring influence Determining the impact of online advocacy and criticism 20
21 How do we get there? 21
22 There is value in Sales/Marketing, but there is so much more! R&D/Insight Sale/Marketing PR/Comms Service Customer Insight New Product Dev Demand Forecasting Packaging Brand Strengths Bottlenecks Marketing Mix Influence Threats Investors Reputation Feedback Engage Advocacy New Launch Tracking How can we use social to extract How can we use social to extract maximum value for the company? How can we use social to transform the organization?
23 Optimize New Product Innovation and Consumer Insight Opportunities What new products are possible if I listen to consumer conversation about my category or their lives rather than about product? Who are your consumer segments and what are their real needs?
24 New Product Development when I m eating in my car. Illustrative Verbatim I LOVE fun food Brand Centric I hate it when my refrigerator is without I wish I could find Mornings are IMPOSSIBLE without my We will be focusing on developing several concepts out of this work for further testing. -NPD Group, Kraft
25 Asking vs. Listening Survey Attributes tested in survey questions Percent agreeing strongly Social media analysis Associated Online Attributes Relative score Environmentally friendly 68 Organic Diaper rash Cost effective 40 Home schooling 24 Healthier More comfortable Fit well Survey indicates 68% of consumers believe "environmentally friendly" is most important, however unprompted consumer feedback ranks it last Home birthing Flushable Cheaper Cost Environmentally friendly In authentic, online conversations, "organic" and avoiding "diaper rash" are most associated concepts and attributes
26 Optimize Marketing Opportunities How can listening help me drive greater return on my marketing and media investment? How can paid and earned media work together for maximum efficiency and impact?
27 Evian Dancing Roller Babies France [5mn] UK [8mn] Germany [9mn] US [43mn] Japan [8mn] Canada [6mn]
28 Using Digital Media to Maximum Effect 2X Gross Rating Points in earned media to paid media (U.S.) 26% increase in spontaneous awareness (France) 8% increase in purchase intent (France) 5% sales increase above base spend in weeks following the campaign (U.K.)
29 Better Manage Threats & Brand Health Opportunities How can I identify and deal with issues that escalate in social? What is the right course of action in an increasingly regulated environment?
30 The Impact of Association How quickly a brand can change?
31 Build Advocacy for the Brand and Increase Customer Value Opportunities How can brands deepen loyalty and advocacy through listening and consumer engagement? How can I identify and support brand advocates?
32 The Consumer Experience BT.com/help BT.com Community Forums You Tube BTCare Channel Mobile BT.com Community Forums Live Chat UK Consumer and Technical Forums
33 Key Takeaways 1. Social is relevant, impactful, drives intent, and influences sales 2. However, there is impact beyond the Marketing & Sales departments 3.To capture this value, you must create a new strategy and a foundation in measurement and build a new kind of organization 4.The key is to evolve the way you listen, act, and engage by changes in culture, talent, and systems 33
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