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Brands Taking Action on the Social Web

Oct 17, 2014

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Business

Michael Brito (Edelman) presents at Social Media Marketing 2010 San Francisco. Learn how brands are taking the collective intelligence of the community; and changing their business models, products and processes because of it. Including case studies and campaign results, this session will also demonstrate how the simple act of listening and “taking action” are yielding positive results for brands, big and small.

Slide 1

Brands Taking ActionOn the Social Web

Michael [email protected] on Twitter1Good morning. So we are here today to talk about this concept of building brand loyalty on the social web and I wanted to share with you a motto that I try to liveby when I worked on the brand side and also when I advise some of my clients today. It is this If you love your customers, they will love you back and tell others.So as I walk you through my slides, I would ask that you keep that the back of your mind.

So a couple of years ago, I think it was 2007, the hard drive on my dell laptop crashed. I took it to Best Buy thinking the Geek Squad would be able to fix it, I mean after all, they are geeks right? Well it turned out that they could only fix it if they sent my laptop to their technical center in Kentucky and it was going to cost a minimum of $400 to get my data back. So, I went back home and Tweeted something like The Geek Squad arent geeks after all b/c they couldnt fix my laptop. Now, I am not the type of guy that makes really vocal customer services complaints and broadcasts them across the web expecting preferential treatment. But I kinda a thought it was funny and I admit, I was a tad irritated. So about an hour laterI get an email from Robert Stephens.

Who is the CEO of Geek Squad.

MAKE DATA DRIVEN DECISIONS2008 Study2009 Study59% of Americans use Social Media to interact with brands78% of Americans use Social Media to interact with brands93% believe a company should have a presence in social media37%of users engaging companies or brands via new media at least once per week43% of consumers say that companies should use social networks to solve the consumers' problemsNew media users overwhelmingly believe companies or brands should not only have a presence in new media (95%) but also interact with their consumers (89%).41% believe that companies should use social media tools to solicit feedback on products and serviceshttp://www.coneinc.com/content1182http://www.coneinc.com/content2601

Michael [email protected] on Twitter22This is a study conducted by Cone in 2008 and 2009. I just wanted to highlight a few data points here. Notice the growth from 2008 to 2009 of consumers who use Social Media to connect with brands. Up 20 points.

Also, in 2008, 41% of consumers believe that brands should use social media to solicit feedback about their products and services.

And then in 2009, consumers not only expect brands to be present in social media, they want them to interact/engage.

The tools come and go. Myspace FriendsterPlurkTwitterGoogle Buzz

Consumers expectations arent changing. In fact, they want more out of brands. That is a good thing.

ITS ABOUT THE PEOPLE, NOT THE TOOLSMichael [email protected] on Twitter33If you notice on the previous slide, there is no mention of Twitter, FB Google Buzz, Orkutbecause the tools dont matter. They are simply channels that facilitate conversations and they change all the time. What doesnt change is consumers expectations of the brands they love.

SO THE QUESTION IS .How do we live up to consumer expectations?Michael [email protected] on Twitter44So the question we need to ask ourselves is How do we live up to consumer expectations? PAUSE

We have to create kick ass products or services. (apple does it)

We have to have superior customer service. (Zappos, Comcast)

We have engage with the community, we are authentic the data tells us that (Dell)

But its more than being authentic. We have been talking about authenticity for 10 years now and I think brands do actually get it, even though some do still make mistakes. Besides, you can be authentic and never do shit.

KICK A$$ PRODUCTS

Michael [email protected] on Twitter55So the question we need to ask ourselves is How do we live up to consumer expectations? PAUSE

We have to create kick ass products or services. (apple does it)

We have to have superior customer service. (Zappos, Comcast)

We have engage with the community, we are authentic the data tells us that (Dell)

Make emotional connections (build on the trust factor here)

But its more than being authentic. We have been talking about authenticity for 10 years now and I think brands do actually get it, even though some do still make mistakes. Besides, you can be authentic and never do shit.

SUPERIOR CUSTOMER SERVICE

Michael [email protected] on Twitter66So the question we need to ask ourselves is How do we live up to consumer expectations? PAUSE

We have to create kick ass products or services. (apple does it)

We have to have superior customer service. (Zappos, Comcast)

We have engage with the community, we are authentic the data tells us that (Dell)

Make emotional connections (build on the trust factor here)

But its more than being authentic. We have been talking about authenticity for 10 years now and I think brands do actually get it, even though some do still make mistakes. Besides, you can be authentic and never do shit.

AUTHENTIC COMMUNITY ENGAGEMENT

77So the question we need to ask ourselves is How do we live up to consumer expectations? PAUSE

We have to create kick ass products or services. (apple does it)

We have to have superior customer service. (Zappos, Comcast)

We have engage with the community, we are authentic the data tells us that (Dell)

But its more than being authentic. We have been talking about authenticity for 10 years now and I think brands do actually get it, even though some do still make mistakes. Besides, you can be authentic and never take any action.

Brands need to become believable.

BRANDS BECOME BELIEVABLEMichael [email protected] on Twitter88Brands need to become believable. I am not trying to make a political statement at all here; but if you remember during the election, Obama positioned his candidacy on hope and change we can believe in. I know many people that voted for him because they really did believe what he had to say. That message was pounded in trough the media daily, for months.

Intel example.

So how does a brand become believable? They have to listen and act!

Top Ten Brands / measuring breath and depth within the social web

Starbucks (127) Dell (123) eBay (115) Google (105) Microsoft (103) Thomson Reuters (101) Nike (100) Amazon (88) SAP (86) Tie - Yahoo!/Intel (85)

Engagement Correlates To financial Performance

PEOPLE BUY THINGS FROM BRANDS THAT LISTEN

Michael [email protected] on Twitter99This is not a scientific study; just a correlation. So lets take a look at a few brands who have used the collective knowledge of the community to make strategic decisions.

Engagement Correlates To financial Performance

TRADITIONAL SALES FUNNELMichael [email protected] on Twitter1010Does everyone recognize this? Its the traditional sales funnel; and we as marketers spend a lot of time focusing on each of the phases. What messages resonate with consumers, how me measure our marketing activities at each phase. We spend a lot of money trying to figure out what to say, when to say it, how to say it and who to say it to. This funnel will always be important and play a significant part in our strategic planning .. But it has changed.

ACTIVATING YOUR ADVOCATES

If you love your customers, they will love you back,And tell others! Michael [email protected] on Twitter1111This to me represents the new sales funnel, or I should say cycle. Its meant to illustrate how social media influences and aides consumers through the purchase funnel. Its circular because when a brand listens to their customers and takes some form of action; they create customer advocacy.

And when this happens, these advocates will influence others down the purchase funnel; thus creating a cycle of influence and advocacy that a brand can begin facilitating.

Michael [email protected] on Twitter1212Does anyone know that this is called?

Launched MyStarBucks Idea a few years agoCrowdsourcing products, services and improvement to the coffee experienceBuilding strong & profitable customer relationships

STARBUCKS LISTENS & ACTSSplashstickMichael [email protected] on Twitter1313

STARBUCKS LISTENS & ACTS

1414

Michael [email protected] on Twitter1515What about this? Has anyone ever seen this vehicle on the road?

GM CANCELS PRODUCTION: BUICK CROSSOVER

Decision based solely on real time customer feedbackSaved the company million in manufacturing costs, inventory, etc.

Michael [email protected] on Twitter1616

Show videohttp://www.youtube.com/watch?v=jqLPHrCQr2I.Michael [email protected] on Twitter1717Does anyone know that this is called?

Ajay Bhatt co founder of the USB port

INTEL CASE STUDY ROCKSTARS

Launched Sponsors of Tomorrow, May 09Released the video on YoutubeOver million views in one monthThe community was begging for t-shirts like this one Youtube comments, Twitter, Gizomodo, Engadget

Michael [email protected] on Twitter1818A ROCKSTAR IS BORN!

Michael [email protected] on Twitter1919

Michael [email protected] on Twitter2020

THE ANALOG GROUNDSWELLMichael [email protected] on Twitter2121