the real value of social media
DESCRIPTION
introduction to social media facts and ideas. McKinsey and Nielsen view of growin social mediaLeverage your social media in businessesTRANSCRIPT
Where is the Real Value of Social Media?SMS
Club session February
10, 2011
Agenda for tonight
▪
Introduction to Social media …
a few facts and ideas
▪
Quick refresh on Nielsen and McKinsey…
the growing importance of social media
▪
Leveraging social media in business …
does your company facebook?
Agenda for tonight
▪
Introduction to Social media …
a few facts and ideas
▪
Quick refresh on Nielsen and McKinsey…
the growing importance of social media
▪
Leveraging social media in business …
does your company facebook?
3
Social media … do we still need to introduce the topic?
SOURCE: Nielsen
4
Social media does include YouTube marketing …
Direct social media engagement
drove impact•
Videos generated more than 34
million aggregate views and a billion
PR impression in a single week•
Old Spice, with 94 million views, had
become the No. 1 all‐time most‐
viewed sponsored channel
on
YouTube •
fan interaction jumped
800%
since the launch of the
personalized videos
Traffic to
oldspice.com grew 300%
Old Spice launched 186 viral videos featuring
former NFL wide receiver Isaiah Mustafa as
“The Man You Can Smell Like”http://www.youtube.com/watch?v=owGykVbfgUE
5
Wikis
Blogs Message boards
Reviews and recommendations
Social networking
…
but also a much broader array of
consumer‐controlled media …
6
11
SOURCE: NM Incite
Product innovation
22 Launch and real time
product feedback
33 Merchant insights
88 Service experience
and engagement
99 Defensive branding
44 Brand positioning and
messaging
55 Brand health along the
consumer decision journey
66 Social media marketing
77 Marketing ROI
Product development Marketing and sales Service
… which can inform and bring innovation across
business functions
7
SM
But how do I use Social
Media in practical ways
for my marketing ?
Agenda for tonight
▪
Introduction to Social media …
a few facts and ideas
▪
Quick refresh on Nielsen and McKinsey…
the growing importance of social media
▪
Leveraging social media in business …
does your company facebook?
Over 62.4 billion retailProduct transactions a year
Conditions & sales in
350,000+ stores
Purchasing behaviorin 250,000+ households
Over 48% of global
TV viewing
35,000 Mobilephone users
85% of global
internet activity
Over 8 million consumer
interviews each year
85% of the world’s
advertising spending
Tested 87,000 new
product concepts since 1977
Copyright ©
2011 The Nielsen Company. Confidential & proprietary.
Nielsen Watch – Buy Strategy: Understand influencers &
Drivers Of Shopper / Consumer Behavior
New Product
Innovation
Mobile
Online
Television
Advertising
Social Media
CONSUMERS
SHOPPERS VIEWERS
Assortment
Segmentation
& Targeting
Pricing
Marketing ROI
Trade
promotion
The Demand Chain: Linking knowledge about shoppers,
consumers, & retailers across many points
Introducing
NM Incite: an innovative
Joint Venture between
Nielsen and McKinsey & Company
▪
Jointly owned
by Nielsen and McKinsey; co‐developing social
media software, metrics, analytic services
▪
Market leader in enterprise social media
monitoring/analytics (Source: Forrester)
▪
Dataset: Billions of social media conversations per year
across 120 million blogs, message boards, customer reviews
and social networks▪
Global: 14 markets now (US, UK, Germany, Spain, Italy,
France, Australia, New Zealand, China, Japan, India, Brazil,
Canada and Korea); 20 by EOY
2010; over 150 clients globally▪
Proprietary technology for analyzing social media
▪
Dedicated analyst support
with category expertise
What is NM Incite?
We enable our clients to capture value from social media
intelligence and social marketing:▪
Discover unprompted, authentic
consumer insights
on brand
strengths and weaknesses, unmet consumer needs, etc. ▪
Set and track rigorous measurements
of earned media e.g.,:–
Brand share vs. competitors –
Reach of brand buzz (for media mix modeling) –
Brand attributes
▪
Build marketing, communications, and service capabilities to
understand and engage consumers, e.g.–
Talent–
Central vs. distributed structure–
Platforms–
Performance management
Our value proposition
Agenda for tonight
▪
Introduction to Social media …
a few facts and ideas
▪
Quick refresh on Nielsen and McKinsey…
the growing importance of social media
▪
Leveraging social media in business …
does your company facebook?
Globally consumers spend 6 hours a month on Facebook
More than 60%
ofconsumers have visited a consumer‐
driven website
More than 2/3 ofglobal consumersuse online productreviews to makepurchase decisions
Rising
>35% of consumersrely on peer recommendations and WOM to makepurchase decisions
You have likely seen the data …
Social is Significant and Rich with Valuable Consumer Data
PAID EARNED OWNED
• Drive Awareness• Enhance equity / liking• Build emotional rapport• “Personalize”
branding for consumer
• Build advocacy• Drive credibility ofmessaging
• Build community• Connect w/ consumers
• Deliver deep brand or category knowledge
•
Build a sustained relation‐
ship with my consumers • Drive Sales
ExampleTactics
MarketingObjective
And learned new media frameworks ...
How Should We Be Thinking About Media in Today’s Landscape?
3) Leverage1) Listen
2) Learn, Strategise, and Organise
Listening can be Continuous!Listening can be Continuous!
And discussed new processes …
16
Expression
And dissected a “new”
funnel …
The Manager
then ask the team
to ‘do’
Social Media
17
go to an Event
I keep
seeing ...
18
19
Increasingly relevant for brands
“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.”
“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.” of online discussion
mentions brands26%
SOURCE: NM Incite
20
Amplified impact on businessCase example: TV buzz (US)
21
Social media drives intent …
SOURCE: NM Incite
Large
increase
in intent
No increase
in intent
Less positive buzz More positive buzz
Difference in
intent between
exposed and
control
Net sentiment
Net sentiment and change in purchase intent from buzz exposure (case example)
A
B
DC
E
Brand A had a 15% lift
in purchase intent vs.
3% for Brand E
29
27
27
25
22
22
… and influences sales
SOURCE: McKinsey
Online word‐of‐mouth influence on purchases (European example)
Percent of sales influenced
Word‐of‐mouth is the
primary factor behindof all purchasing
decisions
Electronics and
computer equipment
Beauty care and clothes
Finance products/
services
Telecom services
Travel & Entertainment
23
Impact spans beyond marketing and sales
SOURCE: McKinsey Global Institute
Measurable impact of using social media and other web 2.0 technologiesPercent of companies
63
47
43
32
26
25
23
21
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/servicesIncreasing number of successful product/service
innovations
24
25
Challenges to social media strategy
26SOURCE: Nielsen; Google Trends; Mashable
Relevance: buzz can be messyWhat people tweet
of tweets have
“useless”
information~50%
... but cutting through this
messiness is where the value
and your advantage lies.In a word: Unprompted!
27
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
28
Organizing for social media transformation
Product developmentMarketing
Customer careDefensive branding
29
How do we listen and what should we listen to?
30SOURCE: Nielsen; Google Trends; Mashable
What people tweet
of tweets have
“use‐less”
information~50%
Measuring buzz can be messy …
31
…
but effective measurement can deliver robust client metrics
32
Who is talking and
about what
Differentiation vs.
competition
Implications for marketing
touchpoints
Client case example: Insights from social media buzz
33
Product developmentMarketing
Customer careDefensive branding
What is social media?
“I wish I could find…”
“I LOVE fun food”“I hate it when my
refrigerator is without…”
“Mornings areIMPOSSIBLE without my…”
“…when I’m eating in my
car.”
Brand
Centric“We will be focusing on developing several
concepts out of this work for further testing.”
‐
NPD
Group, Kraft
ILLUSTRATIVE VERBATIMProduct development example: Kraft
35
Direct social media
engagement drove impact▪
Paula Deen’s
video
introduction has 10MM+
YouTube views▪
Website has had 550,000
unique visitors and 3,600
recipe submissions, and
an estimated total 97MM
impressions
Philadelphia Cream
Cheese partnered
with Food Network
star Paula Deen
to
invite everyday
cooks to create a
community
cookbook
Sales growth of since launch8%
SOURCE: Website; Equal
Marketing example: Philadelphia cream cheese
France [5mn] UK [8mn] Germany [9mn]
US [43mn] Japan [8mn] Canada [6mn]
Evian Dancing Roller Babies
▪
2X GRPs
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.)
Using Digital Media to Maximum Effect
38
What is social media?
▪
Who can engage?
▪
How to guide engagement?
▪
What systems to track
engagement?
▪
How to build engagement
into core processes?
“We’ve been looking at how do we
internally get ourselves ready for
plugging Facebook
into what we
already do.”
“We’re tip‐toe‐ing
our way into
with things like George
Brands…
building up the fan base
quite organically. Not going too
aggressively, too early.”DOMINIC BURCH, ASDA Head of Corp Comms
and New Media
ASDA: In testing and learning mode with Facebook
Sense & Respond to Threats, Be Prepared
Feb –
BBC runs program on
Palm Oil / Deforestation March –
Greenpeace launches anti‐
Nestle campaign (palm oil) March –
Nestle
called out for poor
corp
response
on Facebook
Mar/Apr –
Greenpeace
campaign and
mishap
hit mainstream
media
May –
Nestle
changes policies
related to Palm
Oil sourcing
Pre Pre ‐‐CrisisCrisis During/Post CrisisDuring/Post Crisis
Nestle Brand Association Maps –
Pre/Post
0.5
1.0
1.5
2.0
2.5
3.0
3.5
BT or
British
Telecom
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr2009 2010
15 26 10 24 07 21 5 19 02 16 30 13 27 11 25 08 22 06 20 03 17 31 14 28 14 28 11
Trended Sentiment Score
Increasing customer lifetime value by improving
service experience
BT.com
Community Forums
UK Consumer and Technical ForumsUK Consumer and Technical ForumsMobile Mobile Live ChatLive Chat
Twitter Twitter ––
@@BTCareBTCareBT.comBT.com/help/help
BT.comBT.com
Community ForumsCommunity ForumsYou Tube You Tube BTCareBTCare
ChannelChannel
The Consumer Experience
44
How do we get there?
45
31
50
35
40
21
40
52
31
46
Social Media Strategy – What are the main barriers?
SOURCE: NM Incite Social Media Summit Survey (n=48)
Percentage of respondents
Belief that social media is not credible
Cannot quantify
impact
Lack of case studies
Lack of social media talent
to execute plan
No CEO
mandate
No clear social media operational
plan
Regulatory
concerns
Senior executives
not literate
No standard metrics
to track impact
CLIENT SURVEY
46
Mobilizing for social media▪
What is the source of competitive advantage?▪
What is the major driver of growth?▪
Is corporate strategy central to talent strategy?
How to lead it?How to lead it?▪
Call to action/ burning platform (“creation story”)▪
Inspiring, accountable leader(s)
– corporate‐wide vs. by function vs. by
BU vs. by geography
How to How to operationaliseoperationalise??
▪
Coordinated test‐and‐learn
investment program; rapid transfer
of
insights▪
Single standard for measurement
(brand health, service quality,
campaign performance) and business cases▪
Scale and expertise in vendor
management▪
Architect IT
for single view of the customer/consumer▪
Effective governance
(values, policies) for consumer engagement▪
Build/retain talent: own vs. rent, market‐based evaluation
Does it matter?Does it matter?
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
47
