ibm webinar: beyond the hype, using social media to enhance your customer experience

Business Analytics and Optimization

Beyond the Hype: Using Social Media to Enhance Your Beyond the Hype: Using Social Media to Enhance Your Customer ExperienceCustomer Experience

Create Relationships. Build Advocacy. Improve Loyalty.

© 2011 IBM Corporation


2 Social Media Monitoring Discussion

Agenda

� Shifting Customer and Marketing Landscape

� Social Media Maturity and Customer Experience

� IBM Cognos Consumer Insight – Demo

� Selling Social Media Internally

� Summary




What is social media?

Social Media is the democratization of information, transforming people from content readers into publishers. It is the shift from a broadcast mechanism, One-to-Many, to a Many-to-Many model , rooted in conversations between authors, people, and peers.

Brian Solis, Social Media Thought Leader




Source: Gartner, September 2010

Gartner Hype Cycle – Emerging Technologies

Social Analytics are in a hype cycle characterized by heightened if not unrealistically high expectations…




Social Media is not only influencing consumer behaviour but creating vast amounts of new and valuable information

78%of consumers trust peer

recommendations

Source: August 25, 2009, “The Broad Reach Of Social Technologies” Forrester report

770million people worldwide visited

a social networking site.Source: comScore, Social Networking Phenomenon




Leverage

social

networking

Expect

consistent

and relevant

information

We have entered the age of the empowered consumer

Demand

exactly what

they want

95 millionNumber of tweets sent

via Twitter each day

75% SkepticalPercentage of people who

believe companies don’t tell

the truth in advertisements

$93 billionAmount in sales missed due

to out of stock inventory

Get it now

or go

elsewhere!




The evolving role of marketing

Mission:

� Understand the market and the customer

� Build awareness and demand

� Steward the company’s brand experience

� Drive brand strategy and execution

Today’s

CMOMission: Today’s plus:

+ Drive consistent interactions across all channels

+ Steward the complete customer experience

+ Enable information & insight across the business

+ Anticipate customer needs

+ Monitor and harness customer evangelism

+ Optimize outcomes and return on marketing investment

Tomorrow's

CMO




Transformational shift in marketing

30% + consumer media spending is through digital ch annels

Standardization of digital metrics is fueling wider adoption

Suppliers (agencies) continue embracing digital cap abilities to get in front of their customers

Winterbury Group, October, 2010




Implications ….




Agenda





� Summary




Organizations are still trying to determine the right balanceof social media offense and defense

So What’s the Right Balance?

Protect or engage. Hide or reveal. Much depends on the business model and constellation of constituents that can effect reputation, revenue and relationships.

Fear Opportunity




Savvy companies tap into customer generated content to answer key brand, R&D, corporate strategy and public relations questions

Social Analytics POV

What will consumers from

different segments say about our

products?

What will consumers from

different segments say about our

products?

How do consumers

feel about our new messages / ads?

How do consumers

feel about our new messages / ads?

Is there negative chatter around our sales force that our Public Relations team or training programs should respond to?

Is there negative chatter around our sales force that our Public Relations team or training programs should respond to?

What are our competitorsdoing to excite the market? What are our competitors

doing to excite the market?

Are my spokespersons helping or hurting my reputation?

Are my spokespersons helping or hurting my reputation?

What new products

should we develop? Which products /

companies should we acquire?

What new products

should we develop? Which products /

companies should we acquire?

How are consumers using our

products? What attributes do they associate with them?

How are consumers using our

products? What attributes do they associate with them?

What are the most talked about product

attributes among product categories? Is

it good or bad?

What are the most talked about product

attributes among product categories? Is

it good or bad?




Understanding your goals and readiness for Social Media Analytics

• What’s your vision for social media and its integration into operational

marketing systems?

• How do you intend to measure the effects of social media on brand equity

and reputation, pipeline, and sales orders and margins?

• How will you integrate social analytics into other customer data analytics?

Integrate

• Who are you targeting and why?

• What will you be measuring:

� Share of Voice?

� Activation?

� Brand Sentiment?

� Influencers?

� Sales over the life of the customer engagement?

Measure

• What are your customer objectives:

� Attract Customers

� Increase Value of Existing Customer Relationships

� Retain Customers

• How do customer interact with you today?

• What are they interested in?

• Where do they hang out Online?

• Are there significant influencers that speak to your brand or products?

Assess

Questions for Marketing CMO’s and SponsorsConsiderations




Customer example – consumer products

� 4-Point Strategic Plan for Social Media Analytics� Establish Social Analytics Center of Excellence

� Establish Advanced Social Analytics Capability for Brands, R&D, Strategy, and Public Relations

� Progressively develop and roll out Social Analytics cockpit across brands and organizations

� Train Business Analysts within each organization to leverage tools & consumer insights




Social Media Analytics helps organizations extend beyond traditional segmentation and gain enhanced understanding of the consumer

Age +Income +

Geography

Preferred Product

Categories

Preferred Channel

Participation in Loyalty Program

Use of In-House Credit

CardUse of Service

ProgramsReturn / Exchange Behavior

Breadth of Categories ShoppedLength of

Time as Customer

Recency + Frequency +

Value

Response to Media

Time until Repurchase in Key Categories

Annual Spend Level

Annual Transactions

Econometric: Real-estate &

Unemployment

Most segmentation

approaches only

focus here

Social media analytics can provide an

increased aperture of the consumer

and the ability to see new patterns

and opportunities




Creating a path to customer analytics with social mediaU

niqu

e V

alue

Del

iver

ed

Relative scope and complexity of change

Gain a comprehensive Gain a comprehensive Gain a comprehensive Gain a comprehensive understanding of consumer understanding of consumer understanding of consumer understanding of consumer behavior, loyalty and behavior, loyalty and behavior, loyalty and behavior, loyalty and attitudesattitudesattitudesattitudes

Achieve near realAchieve near realAchieve near realAchieve near real----time time time time consumer insight and consumer insight and consumer insight and consumer insight and decision makingdecision makingdecision makingdecision making

Develop deeper Develop deeper Develop deeper Develop deeper understanding of consumersunderstanding of consumersunderstanding of consumersunderstanding of consumers1 2 3

VALUE

• Create better understanding of consumer sentiments via social analytics

• Gain insight into shopper and consumer needs, preferences and behaviors

• Capture and leverage insights to create differentiated product offerings

• Gain multi-channel insights to provide consistent brand experience

� Improved visibility of consumer behavior & perceptions

� Aligned product offerings with consumer expectations and segments

� Increase consumer awareness and retention of brand attributes and benefits

� Increase consumer loyalty and reduction of brand ‘trade-offs’

� Improve category volume and profit for retailers

� Maximize margins by proactively refining brand programs via live market insight

� Increase lifetime value of the consumer

• Refine consumer segmentation models

• Align views of consumer segments between CP and Retail

• Use analytics to optimize merchandising, promotional and marketing tactics

• Plan more effective promotions and new product introductions

• Listen to digital channels and deliver personalized 1:1 communication

• Act with speed to improve promotions and product introductions

• Operate near real-time at store level to dramatically improve performance

• Align all aspects of traditional and digital consumer communication

• Continual improvement of all brand program elements




Agenda





� Summary




Create Relationships. Build Advocacy. Improve Loyalty.

Enhance YourReputation

Improve Yourcustomer experience

Grow YourBusiness

The foundation for the solutions is IBM Cognos Consumer Insight




IBM Cognos Consumer Insight

• The industry’s most scalable social media analytic application

• Richer insight into consumer sentiment from billions of blog posts and discussion boards

• More sophisticated analysis of consumer preferences and interests (Affinity and Evolving Topics)

• The only solution capable of seamlessly integrating with a robust business analytics environment

• The industry’s most scalable social media analytic application

• Deep insight into consumer sentiment from billions of blog posts and discussion boards

• Sophisticated analysis of consumer preferences and interests (Affinity and Evolving Topics)

• The only solution capable of seamlessly integrating with a robust business analytics environment

Why choose CCI?




IBM Cognos Consumer Insight - Retail

• Search billions blog of posts, 100,000 forums and discussion groups to measure the effectiveness of your social media campaign and the sentiment of consumer responses

• Gain insight into affinity relationships in your search of your campaign’s hot words to more agilely and precisely modify messaging for your campaigns

• Expand your social media campaigns to incorporate other discussion contexts with analysis of evolving topics

• Target other social media communities or communications channels

Social Media Campaign Management

Create Relationships

MerchandiseManager

• Make call center staff more productive by quickly responding to sentiment of consumer blogs and posts, reducing call and email volume with timely analysis

• Anticipate customer reaction to products and services with affinity relationships and evolving topics associated with searchable hot words

• Improve customer lifetime, loyalty and positive word-of-mouth endorsements with rapid first-contact resolution

• Capture customer comments with precise filtering and drill though

Social Media Customer Service Management

Improve Loyalty

Customer Service

• Apply the analysis of key stakeholders and influencer sentiment to targeted public relations, investor relations or public affairs initiatives

• Inform senior management of improvements to reputation among stakeholders with consistent analytics using a standard sentiment dictionary

• Examine affinity relationships to anticipate new opportunities to engage audiences around specific subject areas

• Easily configure business rules, filters and analytics to more quickly and precisely measure and respond to new events

Social Media Reputation Management

Build Advocacy

Public Relations




To continuously review how relevant and attractive their merchandise is perceived, they want to evaluate social media

sentiment on their product category to assess the scope of awareness, hot word affinity and relationship to different products.

• Needs ability to assess product interest among shop pers • Needs to evaluate shopping experience • Needs to assess promotions• Needs to monitor sentiment vs. product sales

Social Media Analysis� Sentiment analysis of product category, sub-categories and

specific features� Drill down filtering capabilities to individual posts by geo � Affinity relationship with products and purchasing intent over

time, so promotional activities can be factored in

IBM Cognos Consumer Insight� Highly scalable to search billions of blog posts and

discussion boards� Easy to configure analysis to target consumer shoppers� Capacity to assess affinity of product features and intent to

purchase – and to correlate with sales

Merchandise Manager

Merchandise Manager – Demo Example




IBM Cognos Consumer Insight




Agenda





� Summary




Age +Income +

Geography

Preferred Product

Categories

Preferred Channel

Participation in Loyalty Program

Use of In-House Credit

CardUse of Service

ProgramsReturn / Exchange Behavior

Breadth of Categories ShoppedLength of

Time as Customer

Recency + Frequency +

Value

Response to Media

Time until Repurchase in Key Categories

Annual Spend Level

Annual Transactions

Econometric: Real-estate &

Unemployment

Gain actionable insights through advanced analytics

Social Media Analytics

�Understand what the

marketplace is (or isn’t) saying

about your brand, product,

service, etc.

�Understand the tone and

impact of that conversation.

�Identify areas of opportunity to

help shape that conversation

and to gather valuable market

intelligence.

� Understand who your customers are.

Understand what your customers are doing.

= Actionable InsightsOptimize marketing spend, convert customers, shape public opinions, stay ahead of

emerging trends, build brand awareness and loyalty

Customer Analytics

Revolutionary customer segmentation approach tailored uniquely to each client’s business model, customer data, and operational practices

Analyzing Taxonomies Analyzing Relationships

Create Point of View

Discovery

Cognos Consumer Insight

Front-end Reporting

+

Optimize spend bygeographic area

Predict ROI by area

Optimize investment strategies

Foresight

Dashboard




Social media approach …. Internal stakeholdersWhat are the key constituents to justifying a social media and

customer analytics approach ….

● Brand contributed to 68% and 71% of Disney’s and MacDonald’s market capitalization respectively. Shouldn’t we measure the business impact of our brand’s performance using social media? (Source: Interbrand)

● Kryptonite’s faulty bicycle lock started with one compliant and over 10 days reached up to 1.8M posts, forcing the company to spend $10M in free product exchanges . What can we do to anticipate and quickly manage crises and threats to our reputation?

● Analytic-driven organizations outperform their peers in revenue, EBITDA, return on invested capital. Are we capable of getting a consolidated view of customer and supportive analytics? (Source: CFO Study 2010)

● Consolidated management of social and customer anal ytics with technologies that provide insight into structured and unstructured customer data for a consistent view across the organization. Are we able to get a consistent view of the customer across different technologies?

● Packaged social media analytics that assesses customer and stakeholder perceptions that can scale with business needsand minimize IT support. How can we consolidate the number of vendors?

● Seamless BI glide path to existing Cognos and integration support for other IBM assets, helping you more effectively gain insight into your customer data. What’s our social media IT strategy and how can it be connected to wider enterprise imperatives?

● 88% of CEOs will focus on getting closer to their customers in the next 5 years . What’s our strategy to get closer to customers to better meet their needs, drive greater loyalty and profitability? (Source: CMO Study 2009)

● Time to reach mass audience has shortened from 38 years 3 years with social media ...Twitter reached 50 million users in 3 years. How can we be more nimble and cost-effective in our approach to acquiring and retaining customers to meet revenue objectives? (Source: CMO Study and Gartner CEO Study, 2009)




GBS Business Analytics Optimization

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• No Question - The richness of social media data and the unbounded growth of user generated content found in networks, communities, blogs, forums, etc., on the web provides an exceptional opportunity for companies to more effectively listen to and discern what being said about your products and services by real people passionate about their beliefs:

• Social media monitoring tools provide and excellent opportunity to listen, analyze and evaluate conversations to understand more about key issues and/or how a company may be viewed by influential members of important communities

• However, the answer does not lie in technology alone. As a matter of fact, applying technology without a strong understanding of customer objectives, subject areas and capabilities of analytical tools is not very useful or productive.

AT IBM, we believe that as designers, developers and users of social media tools who live and breath social media we can provide strong results for companies to evaluate for how to successfully integrate social media into current business processes and objectives

• We would be happy to structure a project to address your unique social media monitoring needs




Questions

??

?

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