WHY SOCIAL MARKETING WILL DELIVER A POSITIVE ROI FOR YOUR BRANDHow to use social media marketing to meet concrete business objectives

Whitepaper | Why Social Marketing Will Deliver a Positive ROI for Your Brand

Contents

executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

the numbers and backstory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Where are your consumers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Howdoessocialmediainfluenceuserstorecommend and buy? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Where your brand Wins With social media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

3PhasesofSocialMarketingforBrands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

GroW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Whatdoconsumersexpectwhenbecomingafan? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

AdoptthesesocialmediamarketingtipsandGROWafancommunityaroundyourbrandwith targetedadvertisingandoffers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

GROWdoneright . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

enGaGe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Earnedmediaisthekeytounlockingthepowerofsocialforyourbrand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

AdoptthesesocialmediamarketingtipsandENGAGEusinganunprecedentedunderstandingofusers 7

enGaGe for roi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

monetiZe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

AdoptthesesocialmediamarketingtipsandMONETIZEusingthesocialsalesdimension . . . . . . . . . . . . . . . . . . . 9

MONETIZEtoConvert . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

exeCutive summary

WhilemostmarketingchannelshavestandardizedmethodsforcalculatingROIorvalue,otherchannels,likesocialmedia,canbehardertoquantify.Wecompiledthisreporttohelpyoubetterunderstandhowsocialmediadeliversonrealbusinessobjectives,andhowtogetthemostvalue,andhighestROI,fromyoursocialmarketingefforts.

Accordingtoaseriesofrecentstudies,“earnedmedia,”whichistheunpaidpublicitycreatedbyusersaboutyourbrand,istheuniquebenefitofsocialmediamarketing.Itdeliversincrediblyhighvaluetobrandsbecauseitisbasedonatrustedrecommendationbetweenfriends,andsocialmarketingmakesitpossibleforyourbrandtoseedthecreationofthismedia...atscale.

Infact,arecentstudyconductedbyFacebookandComScoredeterminedthatexposuretoearnedmediahadsignificantpositiveimpactonpurchasingbehavior:

• Starbucksfansandfriendsoffansdemonstrateda38%liftinpurchasebehaviorwithin4weeksofexposuretoearnedmedia

• Targetfansandfriendsoffanswere21%morelikelytopurchaseinTargetinthefourweeksfollowingexposure

Thefactsaresimple:themoreearnedmediayourbrandgeneratesthroughengagingwithfansandfollowersinsocialmedia,thehigheryourROIwillbe.Withinthispaper,wediscussthethree-phasesocialmediacycleforbrands.We’llfocusonhowtounlockthepotentialofearnedmedia,extendedreach,andhigherconversionsinsocial.We’llalsoreviewtheuniqueapproachessixbrandshavetakentoreachingacommonoutcomeofpositiveROIinsocial.

CONTROL TEST

4.5%4.0%3.5%3.0%2.5%2.0%1.5%1.0%0.5%0.0%

FANS FRIENDS OF FANS COMBINED

3.3%

4.0%

3.3%

3.9%

3.0%

3.8%

+19% +27% +21%

Target: Exposure to Earned Media on Facebook Drives 21% Lift in Online and Offline Purchases

earned media, driven by social media networks like Facebook, has an incredible effect on purchase behavior.

Comscore also found that fan communities (and friends of those fans, as reached by earned media) spend more money than non-fans.

FANSIndex of 100 = Segment spend as much, on average, as the general population

FRIENDS OF FANS

250

200

150

100

50

0AMAZON BEST BUY TARGET WALMART

209

108

231204 197

151 160

116

Fans and Friends of Fans Spend More Than the General Population

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Whitepaper | Why Social Marketing Will Deliver a Positive ROI for Your Brand

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Whereareyourconsumers(bothcurrentandpotential)spendingtheirtime?Themostcurrentnumbersdepictingactivepopulationsofusersonsocialnetworksarestaggering.Facebookisthelargestnetworkwith901MMusers.WhenFacebook’suserbasegrowstoonebillionusers—whichitwilldoshortly—theactiveuserpopulationwillberepresentativeofone-halfoftheworld’sinternetusers!

IfoneineverytwopeopleintheWorldthathasaninternetconnectionisalsoaFacebookuser,howcanyouaffordtodenythevalueofsocialmediatoyourmarketingstrategy?

Furthermore,socialprofilesarebeginningtooutpacebrandedwebsitesasthego-tolocationsforuserinteractionwithabrand.Infact,accordingtoComScore,theSkittlesbrandwebsite(www.skittles.com)attracted23,000U.S.uniquevisitorsinMarch2012whiletheSkittlesbrandpageonFacebook(www.facebook.com/skittles)attracted320,000visitors.That’s14timesasmanyvisitstoSkittlesonFacebookastoSkittles.com.Manybrandsareseeingthissametrend.

How does social media influence users to recommend and buy?

[Figure 1.1: marketForce study analyzing influence of social media on user actions.]

Howareusersaffectedbysocialmedia?Doeshavingamassivepopulationofconsumerscongregatingandinteractingwithasocialnetworkinfluencetheiractionsinanyway?Greatnews:itdoes,andverysignificantly.Accordingtoastudyof12,000consumersconductedin2012byMarketforce:

• 80%ofusersclaimthat“becauseofsocialmedia,Iammorelikelytotrynewthingsbasedonfriends’suggestions.”

• Inadditiontotryingnewthings,72%arealsomorepronetoswitchingsidesandmakingrecommendationstoencouragetheirownfriendstotrynewproducts.

Youmaystillwonder:“but,a‘Like’isnotapurchase,”orthatfansaredifferentfromcustomers.FurtheranalysisbyMarketforceanalyzestheimpactofsocialmediaonpurchasingdecisions,specifically:

• 81%ofrespondentsindicatethatpostsbyfriendsdirectlyinfluencetheirpurchasedecision.

• 78%ofrespondentsindicatethatpostsbycompaniesdirectlyinfluencetheirpurchasedecision.

introduCtionThemostpressingquestioninthesocialmediamarketingindustryrevolvesaroundROI.“Whatisthereturnoninvestmentofmysocialmediainitiatives?”“WhatisthevalueofasocialFacebookfanorTwitterfollower?”WhilethedefinitionofROI(revenueminusexpenses/expenses)isfairlystraightforward,understandinghowtomeasurethevalueofsocialmarketingroi is more nebulous.

ROIcanonlybedefinedwhenyouunderstandwhatresultsprovide“value”toyourbrand.Afterall,thereturnofanew“Like”onFacebookisincalculableunlessyou’vealreadyassignedavaluetoLikes(fans,comments,oranyotheractivity).

ROIisameasureofvalue.Whatvaluedoessocialbringtoyourbrand?First,wewilllookatavarietyofsocialmediamarketingstudiesinordertounderstandthebevyofwayssocialcanliftyourbrand.Next,wewillexplorethesocialmediamarketingsuccesscycle,a3-phasemodelofgrowth,engagement,andmonetization.Finally,noreportonROIwouldbecompletewithoutreal-worldexamples.Withineachsuccessphase,wehaveincluded2casestudiestounderstandhowthesebrandsstructuredtheirsocialmarketingapproachestoresultinpositiveROI.

the numbers and baCkstoryTounderstandtheuniqueopportunitiesforbusinesssuccessofferedbysocialmedia,weneedtohaveanunderstandingofthesocialmarketinglandscape.Whereareusersspendingtheirtime,whataretheydoing,andhowaretheseactivitiesimpactingtheirinteractionswithbrandsandbusinesses?

Where are your consumers?

[Figure 1.0: active users across social networks.]

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GrowInthegrowthphase,yoursuccessmetricisverysimple—fancount.Whenthegoalsyousetsoundlikethefollowing,you’reingrowthmode:

• 5,000newfansbytheconclusionofthispromotion

• 15%increaseinthefanbasebyQ3

• Doublethefanbasebytheendoftheyear

Inordertogrowyourfanbaseandrecognizesomeofthebusinessbenefitsoutlinedabove,itisnecessarytounderstandwhatusersarethinkingwhentheycommittheiraffinitytoyourbrandonasocialnetwork.

What do consumers expect when becoming a fan?

Socialnetworkuserscanbeprettyexplicitaboutwhattheirexpectationsareofbrandsinexchangeforcommittingto“Like”orfollow.InarecentstudyconductedbyLithium,inconjunctionwiththeChiefMarketingCouncil,whenconsumerswereaskedwhatthey“expect”whenbecomingafanorfollowerofabrand,thetop3expectationsare:

1. Tobeeligibleforexclusiveoffersandcontent(67%)

2. Tointeractwithothercustomersandsharemy experience(60%)

3. Tofindgames,promotions,andotherunique experiences(57%)

Understandingusers’expectationsisanimportantfactorinshapingyoursocialmarketingstrategy.Ifyoucanmeetorexceedthoseexpectations(bearinggiftsofexclusivecontent,offers,promotions,andinterestinginteractions)youcanstimulatethegrowthofanactiveandengagedcommunity.Oncethefanbaseisactivatedandtruststhebrand,youcanunleashmonetizationinitiatives.Thistri-phaseapproachtosocialmarketingisconsistentforallbrands—onceyouunderstandthethreedistinctphasesofsocialmediamarketing,youcancatereveryplannedinitiativetoalignwiththegoalsandsuccessmetricsrelevanttoit.

Adopt these social media marketing tips and GROW a fan community around your brand with targeted advertising and offers

Theadoptionofsocialmediamarketingintoyourorganizationcreatesmanybusinessbenefits.Herearethreetipsforhowtousesocialmediamarketingtoachievegrowthofyourbrandthroughsocialchannels.

Usersarelistening,andtheypayattentionandreacttothethingsthey“hear”viasocialmedia.

Ifthisremarkablyactiveandengagedcommunityofusersdoesn’tconvinceyoutotakeactionwithsocialmediamarketing,thenthesestatisticswill:

• 42%ofusersclaimthatbecauseofsocialmedia,theyaremorelikelytoshareanynegativeexperienceswithbrandsorproducts.

• 32%saytheyaremorelikelyto“notbuycertainproductsbecause[they]learnedofanegativecustomerexperiencethroughsocialchannels.”

Thepowerofsocialmediaisindisputable.Ifyourbusinesshasn’tbeenconvincedofthevalueyet,thefiguresabovedemonstratethatbeingamarketinglaggardcanhurtyourbrand—consumershavedeclared(andquitepublicly)thattheyarecomfortablewithhavinginteractionsaboutbrandsusingsocialmedia.Ifyourbrandisn’tapartoftheseconversations,usersarecontenttohavethemwithoutyou,leavingyouwithlittlecontroloverthetonetakenbythecommunityorthemessagesbeingspreadaboutyourbrand.

where your brand wins with soCial mediaTheremainderofthepaperwillfocusonunderstandingtheexpectationsoftheseusersandhowyourbrandcanapproachthoseexpectationsfromtheframeworkofthe3phasesofsocialmarketing.Bywalkingthroughthevarietyofbusinessbenefitssocialmediamarketingoffersyourbrand,wewilllayasolidfoundationforunderstandingwhereyoucandrawpositiveROIfromsocialmarketing,bothimmediatelyandinthelongterm.

3 Phases of Social Marketing for Brands

Overthepast250,000+socialmediamarketingcampaignsthatWildfirehaspoweredforover15,000customers,wehaveseenthatsocialmediamarketinginitiativescanbeseparatedinto3phases.These3phasesarecyclical,anditisimportanttorecognizewhichphaseyourimmediatemarketinggoalsaddresstoknowhowto“score”yourselfattheconclusionofyourcampaignsandtomeasureROI.

[Figure 2.0: social media marketing initiatives typically align within these 3 cyclical phases.]

42% of users claim that because of social media, they are more likely to share any negative experiences with brands or products.

Whitepaper | Why Social Marketing Will Deliver a Positive ROI for Your Brand

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thecompanyonthenetworkbyutilizingcontentcreatedforawomen’sleadershipgroupsponsoredbyCiti.Finally,theYouTubeadvertisementsthatshowupwhenausersearchesfor“makeup”aretwovideosaboutmakeup,createdasrealcontentforpopularbrandsMACandClinique.

2. Run exclusive promotions and special offers, catered to new fans and friends of fans, encouraging viral spread.

Usershavedeclaredwhattheywantfromyourbrandwhentheyjoinyouasafollower(seepage3)—accesstospecialpromotions,exclusiveoffers,specialcontent,andthelike.Socialmediaenablesyourbrandtogrowcommunitiesaroundthisspeciallydevelopedcontent,andinmostcases,“gate”thatcontentexclusivelyforusersthatselectivelyenterthroughthegatebybecomingafan.

Chevy’sFreshMexdemonstratesonestrategyforaddressingthisopportunity:runningapromotiononitsFacebookpagethatawardsprizestowinnersdaily.Thispresentstheuserwithareasontoreturntothefanpageoften,evenafterbecomingafan(whichhehadtodoinordertoenteratall)—ifhedidn’twintoday,hemaytrytomorrow,ashisoddsarenotdiminished.

[Figure 3.1: Chevy’s Fresh mex hosts a daily promotion, encouraging users to commit to becoming a fan in order to participate, and return often to keep trying to win.]

3. Systematize growth by launching the same campaigns across all social networks, maximizing coverage and integrating your social marketing efforts.

Keepingaconsistentmarketingmessage,theme,tone,andpurposeacrosseverymarketingchannelisadifficultbutrewardingtaskthat,whenexecutedproperly,resonatesincrediblywellwithusers.Howcanyoutell?Companiesthatmanagetheirintegratedmarketingstrategysuccessfullytendtohavetheirmessagestick.Forexample,accordingtoBusinessWeek,mostpeople,whenpolled,areabletoinstantlyrecallthebrandassociatedwiththefamousslogan“Justdoit.”Samefor“Thinkdifferent,”and“You’reingoodhands.”Howdidyoudo?

Integrationofyourbrand’smarketingmessageshouldspanacrossallthesocialprofilesyourbrandmaintains.Social

1. Use a paid content strategy to drive new traffic to your brand in addition to word of mouth.

Themajorsocialnetworks,includingFacebook,YouTube,LinkedIn,andTwitter,haverobustadvertisingplatformsbuiltintothemarketingexperience.Socialmediamarketingismovingtheindustrywithaconstantlyevolvingadvertisingformatwhereinthecontentisthead.Eachsocialnetworkenablesbrandstocreateadvertisingoutofusergeneratedcontent,enablingtheendorsementofearnedmedia.Thisconsiderablyincreasesreach,creatingascalablewaytopromotedigitalwordofmouth.

[Figure 3.0: social media marketing provides a new venue and framework for paid media, where the content is the ad.]

Inthethreeexamplespictured,eachsocialnetworkusescontentcreatedorsubmittedbyusersaspartoftheadvertisingendorsement.Nestlepromotesapostthatwaspublishedtoitsfanpagewall,alongsideanexplicitendorsementofthebrandbyfriendsofthispaper’sauthor.Starbuckspromotesatweetoriginallycreatedbyuser“bradnelson.”LinkedInallowsCitithecapabilityofadvertisingasocialconnectionto

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GROW done right

Study,theory,andanalysisisonething,butrealworldapplicationisthecherryonthesundae.ThefollowingtwoexamplesdemonstratecompaniessuccessfullycreatingpositiveROIwithsocialinitiativesinthe“Growth”phase.

CanvasPop

WHO:CanvasPopisacanvasphotoprintingservice.Acustomercanuploadaphotooranytypeofimage,andCanvasPoprendersitoncanvas,creatingartworkthatcanbehung.

WHAT: CanvasPopwantedtorunagrouppromotiononitsFacebookpagetobuildbrandengagementbyencouragingfanconversationandpromotingcontentsharing.ThecompanyalsosoughttomonetizeitsFacebookfanbasewithitsgroupdealbyofferingdiscountsonCanvasPopproducts,exclusivetoitsfanbase.

UsingWildfire,CanvasPopranathree-daySummerGroupDeal.SimilartoaGroupon,thisapplicationofferedupanexclusive-to-Facebookrateof55%offacanvasprintjob,butonlyifthegroupdealthresholdwasreached.CanvasPopaimedtosell20commitmentsoverthethreedays.

RESULT: Theresultsofthepromotionwentwayoverthisthreshold—CanvasPopendedupselling513 deals in just three days.ThebuzzaroundthedealledtoCanvasPop’sFacebookpageseeingnearly3,000visits,whichalsodroveasignificantamountoftraffictoitswebsite.

Aninterestingsidenoteisthatoverthethreedaypromotion,CanvasPopwon700newfans.Thisisparticularlyintriguingbecauseitwasnotmandatoryto

marketingsoftwarewillenablebrandstolaunchandreplicatebrandingeffortsquicklyandefficiently,acrossallrelevantnetworks,thatareconsistenttotheintegratedmarketingplan.

SoDelicious,adairy-freedessertandmilkalternativebrand,executedawellintegratedmarketingplanover100daysin2011.Thethemewas“100daysofchange,”promotinghealthfullifestylesandnutritionalchoices,withcelebrityfitnessguruJillianMichaelsasthespokespersonforthecampaign.SoDeliciousdeployedtheintegratedcampaigninaconsistentmanneracrosstraditional,digital,andsocialmarketing,includingtheprint,localevent,productdesign,andFacebookcampaignsdepictedhere.TheresultsofthesocialmediacomponentoftheSoDelicious“100DaysofChange”initiativeareincludedasacasestudyinthenextsectionofthispaper.

[Figure 3.2: so delicious ran a 100-day long integrated marketing campaign around “100 days of Change.” the campaign’s print ad and product design, shown above, demonstrates the integrated message, creative, and tone across channels.]

Whitepaper | Why Social Marketing Will Deliver a Positive ROI for Your Brand

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RESULT:FueledinpartbySoDelicious’concurrentintegratedadvertisingcampaign,the100DaysofChangegiveawaywasanincrediblesuccess.Overthethree-monthpromotionperiod,SoDelicioussawasignificantreturnonitsinvestment:it experienced two of its most successful sales days ever, and ultimately increased its category share by 60% and sales units by 74%. so delicious also enjoyedasizablegrowthinitsFacebookfanbasewhichgrewbymorethan1,000%.Intotal,100DaysofChangereceived322,664entries,averaging3,226entriesperday.

enGaGeEngagementisanentirelydifferentanimalthangrowth.Weoftenfindthatourclientsdevotealotoftimetoplanningoutintricatecampaignplansforgrowingtheirfanbase,butneglecttoplanappropriatelyfortheengagementphase.Lackofengagementinitiativesmeansfanshearlessfromyouandhavelittlereasontoreturntoyourpage.Lessengagedfanstranslatetolessreach.Themorefansyoulosetodisinterest,thelessfansthatultimatelyseeyourmessaging,duetothefactthatFacebook’scontentsortingalgorithm(calledEdgeRank;readmoreabouthowitworkshere)allocatesreachlargelyinlinewithhowengagingyourbrandis.

Successfulengagementinitiativesresultinsignificantbusinessbenefitsincluding:

• Increasedword-of-mouth

• Increasedearnedmediabenefits

• Brandliftandincreasedawareness

• Brandadvocacyandloyalty

Themostvaluablebusinessbenefitthatemergesfromsocialmediamarketingisearnedmedia.Tounderstandwhy,it’simportanttounderstandthattherearethreetypesofmarketingcontent:Paid, Owned, and Earned. successful brands own socialprofilepagesburstingwithcompellingcontentandactivecommunityconversations.Theydrivetrafficandattentiontotheseownedpropertieswithacarefullyplannedpaidmediastrategy,craftingadvertisementstoemphasizeandinfluenceavarietyofend-useractions.Andhopefullybrandsaregettingearnedmediaaswell:thisisthecoverageyoucan’tbuy,andincludesmentions,recommendationsandsharesgeneratedbyuserswhoaresoengagedbyyourbrandedcontentthatthey’recompelledtoshareitwiththeworld(or,theirrespectivesocialnetworkworld).Andwhen90percentofinternetuserssaythattheyfindarecommendationfromafriendtrustworthy(Nielsen),brandswantalltheearnedmediatheycanget.

becomeafaninordertotakepartinthespecialdeal—whatlikelyhappenedinsteadisthatusers,excitedbythegreatvalue,committedtheir“Like”toCanvasPop,subscribingthemselvestothe“insider’sclub”ofFacebookfansinordertobeonthelistoffolkstofindout—vianewsfeedupdates—thenexttimeadeallikethiswasofferedup.

So Delicious

WHO: TurtleMountainLLC,aprivatelyheldnaturalfoodscompanyheadquarteredinOregon,isthecreatoroftheSoDeliciousDairyFreebrand.TheSoDeliciousbrandincludesdairyfree,soy,andcoconut-basedproductssuchasmilk,yogurt,andicecream.

WHAT:SoDeliciouscollaboratedwithSterling-RiceGrouptodesignits“100DaysofChange”Wildfiregiveaway.SoDeliciouswantedtoencourageuserstoembraceandcelebratepositivepersonalchange,createnewbrandadvocates,andexpanditsfanbase.Toattractandinteractwithawideaudience,SoDeliciouspairedits“100DaysofChange”socialpromotionwithacomprehensiveintegratedprintandpoint-of-saleadvertisingcampaign.

SoDeliciousranaseriesofdailysweepstakesencouraginguserstoembracepositivepersonalchangeandfollowtheleadofSoDeliciousbrandspokespersonandhealthandwellnessexpert,JillianMichaels.Eachday,thesweepstakesofferedprizespromptingthewinnertochangehisorherlifeforthebetter,likeyogamats,waterfilters,iPads,andtreadmills.OneluckywinnerreceivedagrandprizetriptoKohSamui,Thailand.

The most valuable business benefit that emerges from social media marketing is earned media.

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Adopt these social media marketing tips and ENGAGE using an unprecedented understanding of users

1. With traditional marketing, you choose media placement based on predicted demographic profiles, historical populations, and projected figures.

Atraditionaldigitalmarketingnetworkprovideshistoricalstatisticsaboutpopulationsofuserswithcertaininterests.Butwhatelsedoyouknowaboutthe“fitness,diet,health,andwellnessadvocates”thatyou’repromisedtoreachbyusingthismarketingchannel?Ifthefitnessorienteduserisactuallyalsoacarenthusiast,orunemployed,orcurrentlyastudent,wouldthedigitalmarketingnetworkparsethisinformationforyouruse?Wouldn’titbeproductivetoyourstrategytoknowmoreaboutauser’ssocialprofile?

Socialmedianetworksknowalotabouttheirusers.Whenabranddevelopscustomapplicationsforthesenetworks,orrunsadvertisingwithinthem,thebrandcanpotentiallyhaveaccesstoamuchrichercacheofinformationabouttheuser(withtheirpermission,ofcourse.)Usingthisinformationwhencraftingacontentstrategycanbebeneficial,asdifferenttypesofuserswilllikelyengagewithdifferentcontentinitiatives.Socialmediaprovidesmoreinsightintoconsumersthanhaseverbeenavailablebefore.

[Figure 3.3: the digital network can offer historical populations of users reached, but how much deeper can the user profile go?]

2. For the first time, your audience is telling you exactly who it is.

Socialmediaallowsuserstotelltheworldwhotheyare.Usersarefillingouttheirownprofiles,anddeclaringtothenetwork(anditsadvertisersandbrands)whatregiontheylivein,what

There’sacatchthough:youcan’tbuyorcreateearned mediadirectly.Yourbrand’sFacebookpagewillonlyspawnearnedmedia(likes,sharesandcomments)ifyourunmarketingcampaignsthatareoptimizedforengagement andsharingactivity.

Earned media is the key to unlocking the power of social for your brand

ArecentstudyconductedbyFacebookandComScoreprovidedsomeofthemostcompellingstatisticswe’veseenregardingthevalueofearnedmedia.Recognizingthat“manymarketerstodaydonotfeelwell-equippedtoeffectivelymeasuresocialmarketingROI”,ComScoredevisedascientificresearchexperimentthatwouldmeasureliftfromearnedmediaexposure.Theexperimentwasperformedfortwobrands,tomeasuretwodifferentuserbehaviors:

• Starbucks:tomeasuretheeffectofearnedmediaexposureonin-storepurchasing

• Target:tomeasuretheeffectofearnedmediaexposureonin-storeandonlinepurchasing

Forbothexperiments,theeffectsofexposuretoearnedmediahadstatisticallysignificantpositiveimpactsonpurchasingbehaviors.Infact,Starbucksfansandfriendsoffansdemonstrateda38%liftinpurchasebehaviorwithin4weeksofexposuretoearnedmedia(comparedtothecontrolgroup).TheTargetfansandfriendsoffanswere19%morelikelytopurchaseinTargetinthefourweeksfollowingexposure.

Tocapitalizeontheincredibleeffectsthatearnedmediacanhaveonyourbrandthough,youhavetostartsomewhere—withafanbase.Earnedmediacancomefromanyuserthatchoosestotellastoryaboutyourbrandtotheirfriends.Theydothisby“Liking”astatusupdateoraphoto,commentingonyourpage,interactingwithyourapplications,orjusttaggingyourbrandinapost.Themostcommonsourceofthisactivitycomes from your fans.

So,howcanyougetmoreearnedmedia?Bylookingatsuccessstrategiesforbrandsintheengagementphaseofsocialmediamarketing,ofcourse!

Starbucks fans and friends of fans demonstrated a 38% lift in purchase behavior within 4 weeks of exposure to earned media

Whitepaper | Why Social Marketing Will Deliver a Positive ROI for Your Brand

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ENGAGE for ROI

ThetwocasestudiesofcompaniesthatsuccessfullydrewpositiveROIresultsfromtheir“Engage”phaseofsocialinitiativesarefromdifferentpartsoftheworld.Thatdidn’taffecttheresultsofeachcampaign,provingthatengagementbreedstrust,earnedmedia,andadvocacydespitedifferentlanguages,regions,andusers.

Çiçek Sepeti

WHO: ÇiçekSepetiisTurkey’sleadingonlineflowerstoreandgift-givingcompany.

WHAT: Whileitse-commercewebsitealreadyhadsignificanttraction(itreceivesmorethan15,000visitorsandapproximately2,000ordersdaily),ÇiçekSepetiwantedtogrowitsfanbaseandincreasefanengagementonFacebook.Thecompanyhadalsorecentlyintroducedseveralnewproducts,andsoughttopublicizethemusingsocial media.

ÇiçekSepetiusedWildfiretoolstorunmorethanadozencampaigns,includingquizzes,trivia,coupons,contests,andsweepstakes,designedtokick-startfangrowthandpromotecontinuedengagement.Foroneparticularlysuccessfulcampaign,ÇiçekSepetiusedaquizapplicationtoposelight-heartedquestionstoitsmaleaudienceabouttheirromanticbehaviors.Forinstance,onequestionstated,“Yourspouse’sbirthdayoccursthesamedayasachampionshipsportsgame--whatwillyoudo?”

RESULT: Thecompanycreditedoneofitsquizzeswithaclick-throughrate20timesgreaterthanstandardFacebookads.Onthedaythequizlaunched,ÇiçekSepetidoubledits“PeopleTalkingAboutThis”count,akeyengagementmetric.Thepromotionranforfourweeks,duringwhichtimetheonlineretailerrecognizeda 20% increase in its monthly revenue,andmorethan38,000visitstoitsFacebookpage.Bythetimeitended,thequizhadreceivedmorethan17,000entriesandyieldedover450“Likes.”

theirinterestsare,whotheirfriendsare,andlimitlessotherinformationtheychoosetoshare.OnLinkedIn,they’resharingtheireducationalandprofessionalpursuits.OnPinterest,they’resharingtheirstyleandaspirations,andonTwitterthey’resharingcontentthatintereststhem.Savvybrandsareonthelookoutfortechnologythatcompilesthesesocialprofilestogetherandenablesbrandstoprovideatrulycustomizedexperienceforeachuser.Giventheincrediblespeedofdevelopmentinthisindustry,goingfromcommunicatingtothefacelesstoputtingfacesonoursocialconsumersisnotalongwayaway.

[Figure 3.4: similar to traditional lead generation techniques, users can fill out all of their own information to get access to social networks and the custom applications within them, like this custom whitepaper download application on the wildfire fan page.]

3. Profiling of user interests, friend lists, employment, education, industry, geography, groups, affiliations, style, (and more) enables a rich understanding of your consumer.

Eachsocialnetworkhasauniquesetofinformationabouttheusersengagedwithinit.LinkedInknowsusers’employmenthistories,industry,seniority,region,educationlevel,andmore.Facebookknowstheuser’sfriendsandwhatthey’reinterestedin,whatplacestheuserhaspreviously“checkedin”to,andbrandstheuserthinksarecool.Pinteresthasarunninglistofeveryitemontheinternetthattheusertooktimeenoughto“pin”todemonstratetheirinterestsandstyle.Howmuchmorepowerfulwouldyourmarketingstrategybeifyoucouldaccessamoreunifiedsocialprofileofyourconsumers,aggregatinginformationaboutyourcustomersacrosssocialnetworks?Combiningthissocialdatawithdataaboutusers’interactionswithyourbrand(havetheypurchasedinthelast3months?Havetheyclaimedbutnotredeemedacouponinthelastyear?)canpotentiallycreatetheleveloftargetingthatwillnurtureyourcommunitiesofadvocatesintoaction.

How much more powerful would your marketing strategy be if you could access a more unified social profile of your consumers, aggregating information about your customers across social networks?

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monetiZeAsafanbuildstrustandengagementwithabrandthroughitssocialchannels,theywillmovetowardsmonetizationandadvocacy.Asuccessfulapproachtomonetizingyoursocialchannelpresenceleadstomeasurablebusinessbenefitssuchas

• collectionofhigh-qualityleads

• leadconversiontosales

• purchasingbehaviors

• accountretention

Ismonetizingyoursocialchannelaseasyaslaunchinganelectronicshoppingcart?Ifonly!We’veoutlinedsomeimportanttipstoconsiderwhenyourbrandiscontemplatingitsapproachtothe“Monetize”phaseofsocialmediamarketing.

Adopt these social media marketing tips and MONETIZE using the social sales dimension

1. Users expect specific activities when they’re interacting with social networks— your typical e-commerce shopping cart solutions are not intriguing in this medium.

InDecember2010JCPenneylauncheditsfirstecommercestoreonFacebook,makingwavesinthepressforbreakingground.Withinayear,however,thatversionofthestorefrontwasremovedfromtheFacebookpage.Now,anevolvedshoppingappisliveonthefanpage,drivingtraffictothesiteusingdifferentsocialfeatureslike“Makeityourown,”whichusesprofileinformationtodisplayoffersthat(nowrebranded)jcpconsidersrelevanttotheuser,personally.Sociale-commerceaddsanewdimensiontoshoppingactivities,andbrandsthatembracethisdimensionwillfindsuccessinthenewindustry.

[Figure 3.5: JCPenney’s original approach to F-Commerce.]

Blowfish Shoes

WHO: BlowfishshoesisashoedesignerandretailerheadquarteredinSantaMonica,California.

WHAT: Blowfishwantedtoexpanditsemaildatabaseandgrowandengageitsfanbase.Italsosoughttoattractnewfanswhoalignedwiththebrand–creative,originalandyouthful.Blowfishcreatedadigitalsweepstakestogiveawayapairofshoestoanewcustomereverydayforayear.Sincebuildingitsemaildatabasewasacriticalobjective,Blowfishmadesuretodevelopanentryformthatpromptedentrantstoprovidetheiremailaddresses.BlowfishalsosupporteditssweepstakesbyrunningtargetedFacebookadsandaYouTubepromotionannouncingtheweeklywinners.Thecompanyputalotofsocialmediasavvybehinditspromotion,creatingfunandquirkyweeklyvideosanimatingapairofshoeswalkingintoaboxandbeingshippedtothatweek’swinner.Thesepersonality-infusedeffortsresonatedhighlywithBlowfishfansandfollowers,influencinghighengagementandreturnratestothepromotion.

RESULT:Duringthe12-monthpromotionalduration,Blowfish increased its email database by 865%, and grew its Facebook fan base by a remarkable 2,488%. the analyticsfurthershowedthat64%ofcontestantsvoluntarilycontinuedtobrowseBlowfish’sshoecollectionafterenteringthesweepstakes,andthatnearly half of all sales transactions during the promotion period involved contestants.ThepromotionwentsowellbyallaccountsthatBlowfishendeduprunningitasecondtime,callingittheir“SecondAnnualShoe-a-DayGiveaway!”

Whitepaper | Why Social Marketing Will Deliver a Positive ROI for Your Brand

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[Figure 3.7: oscar de la renta showcases a monthly F-commerce application that allows users to purchase an item through the fan page that is not available anywhere else in the world.]

3. Use advanced demographic and psychographic profiling with segmentation strategies to offer users personalized and meaningful experiences.

Withaccesstomoreinformationthaneverbeforeaboutusers,successfulmonetizationtacticsshouldstrivetoincorporateprofilingandsegmentationtechniques.Aunifiedsocialprofilewillenableyourbrandtoknowwhichofitsfansalso“Like”yourcompetitors,orwhichofthosefanshavebeendormantinthepastquarter.Createmonetizationeffortsbasedonthisinformation,tospeedthepathtoconversionorrepeatpurchase.

[Figure 3.6: jcp’s new approach to social commerce, adding in a customized “make it your own” feature that mixes up the shopping experience per user.]

2. Social selling involves activity with friends, gamification of sales, or special offers exclusive to the fan community.

Anideal“social”sellingexperienceshouldofferauserelementsofthesameexpectationstheysetforbrandswhenbecomingafan.Weknowuserswantexclusivecontent,customoffers,andspecialpromotions.Howcanyourbrandintegratetheseuserdesiresintosellinginitiatives?OnegreatexamplecomesfromOscarDeLaRenta’sFacebookfanpage.Thefanpagehasacustomapplicationcalled“ShopExclusives”thatenablesusersoncepermonthtobuyoneitemthroughtheFacebookinterfacethatiscompletelyunavailableanywhereelseintheworld.Duringthemonththatthispaperwaswritten,theexclusiveshoppingexperiencefeaturedastylishnotebookcalled“theBaubleBook,”a$39purchaseavailabletoFacebookfansonly.

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HauteLook

WHO: HauteLookisanonlineprivatesalesitethatfeatureslimited-timesaleevents.Everyday,HauteLookpartnerswithpremiumfashionandlifestylebrandstocreateprivate,upscalesaleevents.

WHAT: HauteLookwantedtoattractnewuserstotheirfanpageaswellasinfluencefanstovisitthewebsitebyusinganincentivetomakeapurchase.HauteLookusedWildfiretorunan“InstantWin”campaignwhichranforjustsevendaysontheirFacebookFanPage,mimickingtheurgencythatHauteLook’slimited-timesalesinciteinmembers.Facebookusersneededtobecomeafaninordertoredeemthecoupon,whichrevealedwhattheywon.

MONETIZE to Convert

Thetwocasestudiesfeaturedbelowdemonstratebrandsthatcreatedoffersofhighvalueforusers,andanevenhighervalueforthesebusinesses.

Eye City

WHO: Foundedin1996,EyeCityVisionisaLasikeyesurgerycliniclocatedinTexas.EyeCityprovidespatientswithcompleteeyecare,eyewear,cataractcare,andLasikinonelocation.

WHAT:SinceLasikpurchaseshadbeendownduetotherecession,EyeCityVisionhadalreadyexperimentedwithprintadvertising,onlineadvertising,anditswebsitetogenerateawarenessofitsofferings.Lookingtogrowitsbusiness,EyeCityVisionwantedtoleveragethepowerofsocialmediaanddrivetraffictoEyeCityVision.

EyeCityVisionusedWildfiretolauncha6-monthlongcouponcampaign.ThecouponprovidedindividualswhovisitedandclaimedthevoucherontheEyeCityVisionfanpagea$1,000offdiscountonLasik.

RESULT:Duringthepromotioncycle,EyeCityVisionhaditstwo highest sales monthssincethecompanywasfoundedin1996,withsales up more than 40% from prior year.ThoughEyeCityVisionhadbeensuccessfulinrunningcouponsthroughprintadvertisingaswell,thecompanycitedthathavingcouponsaccessibleviaFacebookwasasignificantandpowerfulforcefortheirbusiness.Thecouponwasclaimedby373users,impressivesincetheofferfortheclinicisonlyrelevantforatwolocationsthatservecentralTexas.

Whitepaper | Why Social Marketing Will Deliver a Positive ROI for Your Brand

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ConClusionYouunderstandthatsuccessfulsocialmediainitiativesstartwithanalignmenttothesocialmediamarketing“phase”thebrandisin.You’vemasteredanunderstandingofthepowerfulwaysinwhichyoucanusesocialmediatogrowyourbrandanddriverealbusinessresults.You’vethoughtthroughengagementstrategies.Andyou’veevenusheredinbuyingactivityfromyourfanswhoarepartofyourtrustworthycommunity.

Thisthree-phaseframeworkiscyclical.Continuedengagementwithusersenablesactions,stories,andmessagestospreadthroughfans’networksandattractfriendsoffanstothebrandpage(generatingearnedmedia),helpingtoleadintogrowthinitiativesagain.FollowthisframeworkandkeystakeholderswithinyourbusinesswillrecognizethevalueandROIdeliveredthroughouteachstepofthisvirtuouscycle.

Fromtheuser’sperspective,thisapplicationseemedlikeascratch-offlotterycard—afterfillingouttheentryformwiththeuser’spersonaldetails,shewouldbeservedherlotterycardwithher“winnings.”Everycardhadavalue,from10%offanHauteLookpurchase,tothemorecoveted“Buyonegetonefree”itemvoucher,tothebiggestprizeofall:one$10,000giveaway.

RESULT: Overthesevendaysofthecouponcampaign,theHauteLookFanPage’sfanbaseincreasedby4,200newfanswhoclaimednearly3,800coupons.Todate,21%ofthecouponswereredeemedbyfirst-timeHauteLookbuyers.Inaddition,19%ofthecouponsthatwereclaimedweredonesoby“dormant”buyers,ormembersoftheHauteLooksitethathadbeeninactiveforacertainnumberofmonths.Asaresultofthissocialsellingcampaign,HauteLook generated $30,000 in revenue and a 250% ROI net of all campaign and marketing costs.

Whitepaper | Why Social Marketing Will Deliver a Positive ROI for our Brand

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