Driving Both Engagement and Sales Through Social Media | Damien Cummings, Dell | iStrategy Singapore 2010

Driving Both Engagement& Sales Through Social MediaA Case Study of Dell in Asia

December 2010

Damien Cummings

Global Marketing

About Today’s Workshop:

How.Getting Started. Making Money.

Global Marketing

What is Social Media?

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Listening & Engaging

Online Video

Applications

Group Buying & Social

Commerce

Platforms (Twitter,

Facebook, etc.)

Your Website (make it social!)

“Social” experience gets better when more people use it.

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Global Marketing8 Confidential

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We revolutionizedthe industry once, andwe’ll doit again

One of the firstto launch online

discussion forums

First company tohit $1M a day inonline revenue

One of the first companies to launch

online support

First to sell complex configurable items

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Dell Online TodayOnline:

Dell.com + Premier + Global Portal + B2B + Channel Portal + eSupport + Community

An online orderis placed

every 2 seconds

$10Bonline revenue

34 languages supported

Googled 1M times per day

58KChannel partnersonline

150M online resolutionsvia eSupport per day

170M visitsto community properties

190kPremier pages

725K B2Btransactions per year

166 countries 13Bpage views in FY’09

1Bvisits per year to

Dell.com

Online is a research tool

95% of first time visitors do not buy from Dell.com. The “sweet spot” is around 8 – 10 visits.

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Dell’s Vision of Social Media

1. The future of Dell.

2. Solid strategy is in place, grounded in business and customer value drivers.

3. Benefits are real, tangible – will strengthen insights in coming years.

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Dell’s Key Learnings in Social Media

1. This is a long-term play. No company has cracked the code on ROI measurement. But all results are modest. – Most “campaigns” have at best 1:3 ROI

– Best efforts so far (in China) have 1:10 ROI

2. Listening and engaging with frustrated customers works great– Question remains: is it financially scalable?

3. Listening and engaging to business conversations is a challenge– Customers only talk about IT when they have a problem (“buy it” or “break it”)

– Only techies talk about IT but they will not tolerate hard selling

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Dell’s Social Media Heritage

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Dell’s Social Media HeritageConsumer

Early AdopterSMBLE

Public

1995 2006 2007 2008 2009 2010

Social RelationshipsUsers find each

other online

Social FunctionalityUsers interact innew ways online

Social ColonizationSocial not limitedto “social sites”

IndustryEvolution1

Strong brands, but nearly 90% YoY traffic decline

2K ideas in first 2 weeks

Moved to segment-specific blogs

1.3M Followers on Twitter today; $6.5M revenue

Premier, Health Storms launched

10K+ ‘accepted solutions’

Shown to improve conversion by as much as

176%

Recent implemented ideas include backlit keyboards,

Linux OS

7 core blogs, 100+ contributors, 4-5 posts/week

Decreased ability to respond due to resourcing

1 Forrester, “Future of Social Web” * Data as of October 2009

SocialNetwork Platforms

GlobalOffsite Properties

IdeaStorm

Blogs

Forums

Blogosphere Outreach

Ratings & Reviews

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Global Reach (As of Jan 2010)

Global reach is good, globalization strategy needs to be focused and more thoughtfully executed

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Social Transformation

Training all of Dell’s 100,000 employees in social media.

1. Social Media policy in place.

2. Robust training program in place:• Getting Started in Social Media• Brand Mgmt in Social Medai• Twitter• Facebook• RenRen & Sina (China)• Blogging & Community• Internal Social Media

3. 5,000 employees already trained.

4. Will fundamentally transform Dell.

Global Marketing

Social Media Engagement & Social Commerce Platforms

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Dell Swarm:Social Commerce & Group Buying

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YouTube Live “Town Halls” and Webinars

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Twitter:@DellOutlet1,570,397 followers$10m+ revenue

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Dell.com Website Evolution

Dell.com 1996 Dell.com 2010 Dell.com 2011+

?

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Ratings & Reviews:3.5 Star+On Dell.com and in Social Media.

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Ask A Friend:FacebookConnect / Social Plugins

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Levi’s Store (US)

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Developing a Commercial Social Media Strategy

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We Wanted Two Things:

A “Territory” or Proposition we can own (as Business-to-Business).

Ideas on how to make this an executable plan in-country in Asia.

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We Looked At Many Options:

E-commerce outside of Dell.com

“Vertical” industry

specialist

Software as a

Service Aggregator

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Dell will Growand Mentor SMBs

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Customer Pain Points

Key SMB Pain PointsSales & marketing

“How Do I Grow My

Business?”

HR, Hiring & Nurturing Talent

“How Attract/Hire

New Talent?”

IT & Technology

“How Do I Scale My

Business?”

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Global Marketing

Workshop Project

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Workshop Project (40 minutes)1. Identify Industry, Segment & Location (i.e. IT, Small & Medium

Business in Asia Pacific).

2. Develop your Proposition/Strategy (i.e. Grow & mentor SMBs).

3. Identify top 3 customer segment “pain points”(i.e. Grow my business, staff turnover, IT to support growth).

4. Write down 3 social media engagement ideas.

5. Describe in detail one social media idea: content / platform / marketing / sales – such as Group Buying, Online Video, Facebook, Twitter, Social Media Applications.

6. Is it Social Media Engagement? Sales/Commercialization? Both?

7. Present to the group.Confidential

Global CSMB Social Media

Questions?Damien Cummings

Global Social Media Director (Consumer & SMB)

Email: [email protected]

Twitter: @damiencummings

LinkedIn:http://www.linkedin.com/in/damiencummings

Blog: “Digital Future” http://damiencummings.blogspot.com