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Twitter: @BradleyJLittle




      The Value of Social Media

      Getting Down to Business

      September 15, 2010
“Advancing Social Media Intelligence”
▪   Jointly owned by Nielsen and McKinsey;
    co-developing unique software, metrics,
    and analytic services                      Trusted Data
▪   Market leader in enterprise social         Metrics & KPIs
                                               Insights
    media monitoring/analytics
    (Source: Forrester)
▪   Dataset: Billions of social media
    conversations per year across 145
    million blogs, message boards and social
    networks                                   Strategic Consulting
                                               Process and Organization
▪   Global: 13 markets now ; 20 by EOY         Digital Marketing
    2010; over 150 clients globally
▪   Quality is highest in the industry
    (source: Microsoft)
▪   Proprietary technology for analyzing
    social media
Built to deliver trusted insights
World’s largest content reservoir           Slice wisely for relevant,
                                               actionable insights


                   Social
                                                                                          Analytics
                  Networks
                                                                  Relevance
  Proprietary
     Data
                                                                                                       Local, full-
                                                                                                 time researchers
                 Blogs
                Boards
                Groups                             Harvesting
                                                                         Cleaning

                               Control the harvest to
                               ensure quality inputs
                                                                     Filter the noise to focus
                                                                         on what matters


                                                        3
What do we deliver?
        Client Dashboard Tools & API     Analyst Research Reports & Strategic Services




       Use It For:                             Use It For:
        At a glance brand metrics             • Longitudinal brand tracking
        Self-service brand monitoring         • Adjusting key launches, events
        Analyst-Grade research tool           • Deeper, brand Insights
        Integration with other                • Informing strategy
          applications

     All of the above supported by our local Social Media Analysts
     and/or Digital Strategic Services Consultants

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The document discusses implementing a whole-of-company social media strategy. It recommends securing buy-in by linking social media objectives to business plans and measuring returns. It also suggests identifying long-term game changers and early wins to evaluate success and constantly communicate objectives across business units.

how tomarketingsocial media
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1) The era of the social customer is ending and the era of customer engagement is beginning, driven by the rise of social media which has created a new "nervous system" for the planet. 2) The social customer is savvy in social channels, trusts peer recommendations more than companies, expects immediate responses from companies, and uses social networks to effect change. 3) Customer intimacy is the top priority for CEOs who want to strengthen bonds with customers and continuously learn more about them. Customer engagement is an ongoing, active relationship where the level of engagement can vary depending on the customer's self-selection of channels and involvement.

social crmsocial business#socialbizatl
5
The “new” purchase funnel


                            Expression




                                         6
Abundance of buzz sources
              Social media (“buzz”) refers to public, online conversations



                                                          More than 2/3 of
                       Globally consumers                 global consumers      41% of Facebook
                       spend 6 hours a                    use online product   users in MENA are
                       month on Facebook                  reviews to make      over 30 years old
                                                          purchase decisions



                       More than 60% of                                        >35% of consumers
                       consumers have                                          rely on peer
                       visited a                                               recommendations
                       consumer-driven                                         and WOM to make
                       website                                                 purchase decisions


SOURCE: Nielsen                                                                                     7
Increasingly relevant for brands
                                                “This product made my hair frizzy, dry and
 “I love this shampoo. I went through a phase   worst of all, led to...HAIR LOSS! Totally not
 in my life where I dyed my hair every color    worth it. I will go back to my old shampoo
 under the sun. This caused my hair to          and conditioner.”
 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
                                                                                        of online discussion
 dryness, split ends, or frizz.”                                            26%         mentions brands




SOURCE: NM Incite                                                                                              8

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Amplified impact on business
Case example: TV buzz (US)




                               9
Social media drives intent…
                    Net sentiment and change in purchase intent from buzz exposure (case example)

                      Large increase
                            in intent
                                                                            A              Brand A had a 15%
                         Difference in                                                   lift in purchase intent
                                                                                B
                                intent                                                      vs. 3% for Brand E
                             between
                              exposed
                          and control

                                            E    D
                         No increase                          C
                            in intent

                                                       Net sentiment

                                         Less positive buzz       More positive buzz

SOURCE: NM Incite                                                                                                  10
…and influences sales
       Online word-of-mouth influence on purchases
       (European example)
       Percent of sales influenced

       Electronics and
       computer equipment

       Beauty care and clothes                       Word-of-mouth is
                                                     the primary factor behind

       Finance products/services                     of all purchasing
                                                     decisions
       Telecom services

       Travel & Entertainment

SOURCE: McKinsey                                                             11
Impact spans beyond marketing and sales
               Measurable impact of using social media and other web 2.0 technologies
               Percent of companies

                    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/services
                            Increasing number of successful
                                product/service innovations


SOURCE: McKinsey Global Institute                                                       12

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13
Challenges to social media strategy




                                      14
Relevance: buzz can be messy
                   What people tweet




                                                   of tweets have
                                            ~50%   “useless” information




   ...but cutting through
  this messiness is where
     the value and your
       advantage lies.
 In a word: Unprompted!
SOURCE: Nielsen, Google Trends, Mashable                                   15
Reach and impact: marketing effectiveness

Weekly buzz volume and reach

                          Campaign




   Reach


   Volume
            4/18/10       5/2/10     5/16/10

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Advocacy: measuring influentials
ThatKevinSmith twitter account                          Southwest Airlines twitter account
1.6 million followers                                   1.0 million followers




                     Kevin Smith twitpic caption:
                     Hey @SouthwestAir! Look how fat
                     I am on your plane! Quick! Throw
                     me off!

                                                                                             17
Challenges of social media measurement
Relevance                 Reach and impact         Advocacy
▪ Identifying relevant    ▪ Measuring the full     ▪ Identifying
 information               reach of social media    “influencers” and
                           and its influence        measuring influence
▪ Determining the right
 scope for your           ▪ Quantifying the        ▪ Determining the
 brand/product             business impact          impact of online
 category                  (marketing ROI)          advocacy and
                                                    criticism



                                                                          18
Organizing for social media transformation


            Product development
                 Marketing
               Customer care
             Defensive branding




                                             19
How do we get there?




                       20

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It’s as global as the World Cup




6
And Paul the octopus
   Paul the octopus generated more buzz than all players combined
How about the 2022 bid in Qatar?
                                                                                                          D
                                               A
                                                                B                C




•                                                        •
A Thebid for the 2022Qatar’s Cup submission of
  it’s
       Buzz is around
                      World
                             official                    C The Buzz revolves around China desire to bid for
                                                           2026 World Cup
•                                                        •
    The Buzz is driven by Australia withdrawal of 2018
B World Cup Bid                                          D The Buzz spike isin Qatar by the arrival of FIFA
                                                           inspection team
                                                                             generated
What is the Arab world saying about the bid?
                                                            A•   Comment underlining Qatar
“                                                                capability to host the 2022
                                                                 World Cup

                                                   ”
http://vb.alarabi.qa, July 28, 2010


             “                                              B•   Comment praising Qatar
                                                                 infrastructure and rapid
                                                                 development



                                                            C•   Comment on the quality of the
             http://www.z5z5z.com, September 10, 2010            stadium and interest in the
                                                                 soccer by the Qatari
    “                                                            population.

                                                        ”
    http://www.kanzalarb.com, September 15, 2010

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There is value in Sales/Marketing, but there is so much more!
  R&D/Insight               Sale/Marketing       PR/Comms          Service
    ▪ Customer Insight      ▪ Brand Strengths   ▪ Threats      ▪ Feedback
    ▪ New Product Dev       ▪ Bottlenecks       ▪ Investors    ▪ Engage
    ▪ Demand Forecasting    ▪ Marketing Mix     ▪ Reputation   ▪ Advocacy
    ▪ Packaging             ▪ Influence
    ▪ New Launch Tracking

       How can we use social to extract
       maximum value for the company?

       How can we use social to transform
       the organization?
New Product Development

                        “I LOVE fun food”

                                     “I hate it when my
                                 refrigerator is without…”

   “…when I’m eating
                  in                 “I wish I could find…”
            my car.”
                                           “Mornings are
                                            IMPOSSIBLE
                           Brand
                                            without my…”        “We will be focusing on developing several
                           Centric
                                                              concepts out of this work for further testing.”
                                                                                         - NPD Group, Kraft
Illustrative Verbatim
Asking vs. Listening
Survey                                             Social media analysis
Attributes tested in survey questions              Associated Online Attributes
Percent agreeing strongly                          Relative score

Environmentally                                     Organic                                        42
                                              68
friendly
                                                    Diaper rash                             28
Cost effective                          40          Home schooling                     24

                                                    Home birthing                 16
Healthier                       25
                                                    Flushable                10

More comfortable             18                     Cheaper                  8

                                                    Cost                 4
Fit well                   13                       Environmentally
                                                                        2
                                                    friendly
Survey indicates 68% of consumers believe "envi-   In authentic, online conversations, "organic" and
ronmentally friendly" is most important, however   avoiding "diaper rash" are most associated concepts
unprompted consumer feedback ranks it last         and attributes
Increasing customer lifetime value by
      improving service experience
3.5


3.0


2.5

                                                                                               BT or
2.0                                                                                            British
                                                                                               Telecom
1.5


1.0


0.5
      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
       Apr   May   Jun   Jul    Aug    Sep   Oct     Nov   Dec     Jan      Feb   Mar    Apr
                               2009                                          2010

          Trended Sentiment Score

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The Consumer Experience
                                                              Twitter – @BTCare
                      BT.com/help


                BT.com Community Forums
                                                               You Tube BTCare Channel




          BT.com Community Forums

Mobile
                           Live Chat      UK Consumer and Technical Forums
What is the Value of Social Media?
We can help!
Let us help you harness the power of social media intelligence and
drive smarter and more efficient decisions across your organization.

                 Brad Little
                 Head of NM Incite, EMEA
                 189 Shaftsbury Avenue
                 London, WC2H 8TJ
                 United Kingdom
                 +44 (0)20 7014 0590
                 brad.little@nmincite.com
                 Twitter: @bradleyjlittle

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What is the Value of Social Media?

  • 1. Twitter: @BradleyJLittle The Value of Social Media Getting Down to Business September 15, 2010
  • 2. “Advancing Social Media Intelligence” ▪ Jointly owned by Nielsen and McKinsey; co-developing unique software, metrics, and analytic services Trusted Data ▪ Market leader in enterprise social Metrics & KPIs Insights media monitoring/analytics (Source: Forrester) ▪ Dataset: Billions of social media conversations per year across 145 million blogs, message boards and social networks Strategic Consulting Process and Organization ▪ Global: 13 markets now ; 20 by EOY Digital Marketing 2010; over 150 clients globally ▪ Quality is highest in the industry (source: Microsoft) ▪ Proprietary technology for analyzing social media
  • 3. Built to deliver trusted insights World’s largest content reservoir Slice wisely for relevant, actionable insights Social Analytics Networks Relevance Proprietary Data Local, full- time researchers Blogs Boards Groups Harvesting Cleaning Control the harvest to ensure quality inputs Filter the noise to focus on what matters 3
  • 4. What do we deliver? Client Dashboard Tools & API Analyst Research Reports & Strategic Services Use It For: Use It For:  At a glance brand metrics • Longitudinal brand tracking  Self-service brand monitoring • Adjusting key launches, events  Analyst-Grade research tool • Deeper, brand Insights  Integration with other • Informing strategy applications All of the above supported by our local Social Media Analysts and/or Digital Strategic Services Consultants
  • 5. 5
  • 6. The “new” purchase funnel Expression 6
  • 7. Abundance of buzz sources Social media (“buzz”) refers to public, online conversations More than 2/3 of Globally consumers global consumers 41% of Facebook spend 6 hours a use online product users in MENA are month on Facebook reviews to make over 30 years old purchase decisions More than 60% of >35% of consumers consumers have rely on peer visited a recommendations consumer-driven and WOM to make website purchase decisions SOURCE: Nielsen 7
  • 8. Increasingly relevant for brands “This product made my hair frizzy, dry and “I love this shampoo. I went through a phase worst of all, led to...HAIR LOSS! Totally not in my life where I dyed my hair every color worth it. I will go back to my old shampoo under the sun. This caused my hair to and conditioner.” 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 of online discussion dryness, split ends, or frizz.” 26% mentions brands SOURCE: NM Incite 8
  • 9. Amplified impact on business Case example: TV buzz (US) 9
  • 10. Social media drives intent… Net sentiment and change in purchase intent from buzz exposure (case example) Large increase in intent A Brand A had a 15% Difference in lift in purchase intent B intent vs. 3% for Brand E between exposed and control E D No increase C in intent Net sentiment Less positive buzz More positive buzz SOURCE: NM Incite 10
  • 11. …and influences sales Online word-of-mouth influence on purchases (European example) Percent of sales influenced Electronics and computer equipment Beauty care and clothes Word-of-mouth is the primary factor behind Finance products/services of all purchasing decisions Telecom services Travel & Entertainment SOURCE: McKinsey 11
  • 12. Impact spans beyond marketing and sales Measurable impact of using social media and other web 2.0 technologies Percent of companies 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/services Increasing number of successful product/service innovations SOURCE: McKinsey Global Institute 12
  • 13. 13
  • 14. Challenges to social media strategy 14
  • 15. Relevance: buzz can be messy What people tweet of tweets have ~50% “useless” information ...but cutting through this messiness is where the value and your advantage lies. In a word: Unprompted! SOURCE: Nielsen, Google Trends, Mashable 15
  • 16. Reach and impact: marketing effectiveness Weekly buzz volume and reach Campaign Reach Volume 4/18/10 5/2/10 5/16/10
  • 17. Advocacy: measuring influentials ThatKevinSmith twitter account Southwest Airlines twitter account 1.6 million followers 1.0 million followers Kevin Smith twitpic caption: Hey @SouthwestAir! Look how fat I am on your plane! Quick! Throw me off! 17
  • 18. Challenges of social media measurement Relevance Reach and impact Advocacy ▪ Identifying relevant ▪ Measuring the full ▪ Identifying information reach of social media “influencers” and and its influence measuring influence ▪ Determining the right scope for your ▪ Quantifying the ▪ Determining the brand/product business impact impact of online category (marketing ROI) advocacy and criticism 18
  • 19. Organizing for social media transformation Product development Marketing Customer care Defensive branding 19
  • 20. How do we get there? 20
  • 21. It’s as global as the World Cup 6
  • 22. And Paul the octopus Paul the octopus generated more buzz than all players combined
  • 23. How about the 2022 bid in Qatar? D A B C • • A Thebid for the 2022Qatar’s Cup submission of it’s Buzz is around World official C The Buzz revolves around China desire to bid for 2026 World Cup • • The Buzz is driven by Australia withdrawal of 2018 B World Cup Bid D The Buzz spike isin Qatar by the arrival of FIFA inspection team generated
  • 24. What is the Arab world saying about the bid? A• Comment underlining Qatar “ capability to host the 2022 World Cup ” http://vb.alarabi.qa, July 28, 2010 “ B• Comment praising Qatar infrastructure and rapid development C• Comment on the quality of the http://www.z5z5z.com, September 10, 2010 stadium and interest in the soccer by the Qatari “ population. ” http://www.kanzalarb.com, September 15, 2010
  • 25. There is value in Sales/Marketing, but there is so much more! R&D/Insight Sale/Marketing PR/Comms Service ▪ Customer Insight ▪ Brand Strengths ▪ Threats ▪ Feedback ▪ New Product Dev ▪ Bottlenecks ▪ Investors ▪ Engage ▪ Demand Forecasting ▪ Marketing Mix ▪ Reputation ▪ Advocacy ▪ Packaging ▪ Influence ▪ New Launch Tracking How can we use social to extract maximum value for the company? How can we use social to transform the organization?
  • 26. New Product Development “I LOVE fun food” “I hate it when my refrigerator is without…” “…when I’m eating in “I wish I could find…” my car.” “Mornings are IMPOSSIBLE Brand without my…” “We will be focusing on developing several Centric concepts out of this work for further testing.” - NPD Group, Kraft Illustrative Verbatim
  • 27. Asking vs. Listening Survey Social media analysis Attributes tested in survey questions Associated Online Attributes Percent agreeing strongly Relative score Environmentally Organic 42 68 friendly Diaper rash 28 Cost effective 40 Home schooling 24 Home birthing 16 Healthier 25 Flushable 10 More comfortable 18 Cheaper 8 Cost 4 Fit well 13 Environmentally 2 friendly Survey indicates 68% of consumers believe "envi- In authentic, online conversations, "organic" and ronmentally friendly" is most important, however avoiding "diaper rash" are most associated concepts unprompted consumer feedback ranks it last and attributes
  • 28. Increasing customer lifetime value by improving service experience 3.5 3.0 2.5 BT or 2.0 British Telecom 1.5 1.0 0.5 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 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2009 2010 Trended Sentiment Score
  • 29. The Consumer Experience Twitter – @BTCare BT.com/help BT.com Community Forums You Tube BTCare Channel BT.com Community Forums Mobile Live Chat UK Consumer and Technical Forums
  • 31. We can help! Let us help you harness the power of social media intelligence and drive smarter and more efficient decisions across your organization. Brad Little Head of NM Incite, EMEA 189 Shaftsbury Avenue London, WC2H 8TJ United Kingdom +44 (0)20 7014 0590 brad.little@nmincite.com Twitter: @bradleyjlittle