Habitat, a furniture maker, used Twitter inappropriately by spamming and hijacking trending topics and current events to self-promote. This was exposed and other Twitter users retaliated by reporting Habitat's account for spam. Pantene launched a cause marketing campaign in the Philippines that misled women into joining a Facebook group for social change that was actually a front for promoting Pantene's products, angering the women who felt duped. Kenneth Cole tweeted a promotion for its spring line that hijacked the sensitive #cairo hashtag during the Egyptian revolution, receiving backlash on social media until it apologized.
2. FUTURELAB
Welcome
What is this talk about
Who am I
Who are We
Why are we here?
A new age of media
The death of advertising
The Digital trap
A new model
Relevance
Engagement
Reputation
Finale
(Organisation)
(Segmentation)
Conclusions
3. FUTURELAB
FUTURELAB
A Personal Introduction
Athens
Berlin
Brussels
Bucharest
Chicago
Hamburg
Helsinki
Iasi
Kiev
London
Melbourne
Miami
Milton Keynes
Moscow
Prague
Shanghai
The Hague
Valencia
4. FUTURELAB
“Like an architect,
we add to the
vision of our
clients and
manage their
agencies and
vendors towards
the desired
result.”
Futurelab International For more information about this
Hoornzeelstraat 24 proposal, please contact
3080 Tervuren
Belgium Stefan Kolle, Partner
T: +32 2 7338332 E: sko@futurelab.net
F: +32 2 7065772 M: +32 (473) 888 996
E: info@futurelab.net
We are business strategist with a passion for customers, innovation and profit
We deliver new profit opportunities through customer-centricity, commercial sense and hands-on innovation
12/11/2011 4
5. FUTURELAB
Thought leadership Recognition
• + 10,000 articles
• 75-100k regular readers
+ 3.15.000 views
+ 10,000 followers
Regular speaking & media
appearances
We do more than consult, we want to right what is wrong
Opinionated – a desire to make a difference – unafraid to take the high road
6. FUTURELAB
Why are we here?
So, you‟re going to tell us we need a social media strategy, right?
8. FUTURELAB
The traditional marketing
model is being challenged, and
(CMOs) can foresee a day
when it will no longer work.
McKinsey Quarterly, 2005, Number 2
11. FUTURELAB
And there are all these new tools of engagement
“The workers
should
appropriate
the means of
production”
12. FUTURELAB
And engagement goes deep ... very deep
84% of Germans under 30
would rather give up their car or
partner than live without internet
or mobile telephone.
Source: Bitkom study via Onlinekosten.de – March 2, 2009
72% of British male gamers
would avoid having sex for a
chance to try their hands on a
brand new PS3-game.
Source: PS3 Price Compare study, via Itproportal, March 3, 2009
13. FUTURELAB
Facebook expects its largest user base to
come from India in the near future
Facebook's user count in India jumped 85% to
34 million as of June this year over the 18
million last year, as per Comscore.
The Economic times India
08/11/2011
Sure – but all of this is not relevant for India, right?
14. Awareness, penetration, average
number of networks
Aware of at least one network 98%
Member of at least one network 73%
Average number of networks one is
1,9
member of
86%
75% 34%
95% 44%* 1,8
76% 3,4
2,1 98%
88%
3,9
97%
86% 96%
3,1 67%
Emerging markets Brazil and
1,5
India show the highest
awareness and penetration of
social networks. * The 44% share of social networkers in China is low compared to other
countries. This might be due to the fact that some large Chinese networks
(eg RenRen) were not included in this survey.
15. Daily log on to social media
60%
63%
58%
67%
82%
76%
61%
N Europe = 5613 / F = If member of social network(s)
16. Following brands | Europe in perspective
Europe has the lowest share
of brand fans, 51%. Compare
India: 70% follows a brand.
Brand followers 51% 60%
Average no. of brands followed 12,2 9,3
57% 62%
20,2 7,9
70%
15,6
55%
19,6 55%
8,3
N Europe = 5613 / F = If member of social network(s)
17. FUTURELAB
Great – so now start advertising to them, right?
Ah, well, if you must call it spam....
18. FUTURELAB
76% of consumers don‟t believe that companies
tell the truth in advertisements
Yankelowich,2006
28. FUTURELAB
The Sad Reality
Many digital
marketing herd
activities just don‟t
cut it either ...
FUTURELAB
29. FUTURELAB
Different Channel, Same Problem
78% of consumers consider in-stream advertising as
“intrusive”. Half of viewers stop watching an online
video once they encounter an in-stream ad.
Source: Burstmedia, January 2008
29% of consumers leave a website that appears to be
cluttered with advertising.
Source: Burstmedia, December 2008
BANNER/AD BLINDNESS
Only 13% of UK consumers pay attention
to ads on social networking sites.
NEW !!
Source: Ebay Advertising, March 2009
TWITTER SPAM
30. FUTURELAB
Different Channel, Same Problem
Reality Check
What does this
mean for the
business???
“If I tell my Facebook friends about your brand, it’s not
because I like your brand, but because I like my
friends.”
Mike Arauz
32. FUTURELAB
People dont want to “socialise” with a brand
What do they want?
Facilitate their
actual needs
and desires
Provide value;
not noise
33. FUTURELAB
Consumers expect something for a “like”
Expect access to exclusive
58%
content, events or sales
Expect discounts or
58% EaxctTarget reports that more than six in
promotions through Facebook
Expect to receive updates 10 (63%) Facebook users who “like” a
47%
about the co. to the newsfeed brand or product on Facebook expect
Expect the company to post
39% something in return. Results from “The
updates, photos or videos to…
Expect to share with friends, Meaning of Like” indicate that a leading
38%
family and/or coworkers 58% of Facebook likers expect both
Expect the name of co. access to exclusive content, events or
37%
to show up on my profile
sales, and discounts or promotions
Do not expect
37%
anything to happen through Facebook. Only 37% do not
Expect the co. to send more expect anything to happen.
36%
relevant…
Expect to interact with page
28%
owner (e.g., brand, person)
Expect the co. to access data
27%
in my public profile
Expect the co. to contact me
24%
through other channels
The Social Media Data Stacks
34. FUTURELAB
But they don‟t expect to be spammed!
What Constitutes Permission to Market on Facebook?
% of respondents, July 2011
Source: ExactTarget
You click a Facebook Like The ExactTarget survey found that the
button placed by the highest percentage of respondents, a rather
10% 42% 48%
company elsewhere on
low 15%, “always” expected a marketing
the web
initiative after liking a company at its
You like a Facebook page source, but that dropped to
comment/photo/article
9% 41% 50% 10% for a click on a “Like” button elsewhere
posted by a company on
Facebook on the web.
You go to a company Only 9% always expect marketing after
Facebook page and like 15% 46% 39% logging a reaction to Facebook content.
the company
Always Sometimes Never
The Social Media Data Stacks
36. FUTURELAB
The Pen Is Mightier Than the
Lock
Soon after the release of the so-called
unbreakable new lock, someone
described on a bikeforum how he
managed to open it with an ordinary
ballpoint pen.
Though it waited for what some might
say was too long, the company decided
to recall all the new and unbreakable
locks and replace them .
We are accelerating the delivery of the
new disc cylinder locks and we will
communicate directly with our
distributors, dealers and consumers
within the coming days. The world just
got tougher and so did our locks. -
Kryptonite
Results:
Estimated cost for free products exchange: $ 10 million.
Image damage for trying to ignore – a multiple of that
38. FUTURELAB
Motrin
“hell hath no fury like a mommyblogger
scorned”
Motrin experienced first hand the power
of social media when it released a TV
campaign that blamed carrying babies in
a pouch for backpains, as a strategy to
sell pain killers.
After a while, the entire campaign was
hijacked by social media active mothers
who found it offensive.
Motrin responded by taking down the ad,
without engaging in conversation which
only added to the buzz.
Communispace found that the more
emotional responses were about the
firestorm and how Johnson & Johnson
had responded, not about the actual ad.
Results:
Motrin pulled the ad, apologized. (perhaps prematurely,– consider the following numbers:
Percent of internet users who visit twitter at the time = 0.1%
Days that the ad went widely ignored for = 45
Mommies' youtube videos exposure = less than a 30s cable ad
Peak number of tweets/hour = 300
Estimated % of negative tweets = 35%
39. FUTURELAB
Gap logo redesign
Gap Inc, puts forth a logo redesign,
but is met with severe backlash
from passionate fans, critics, and
media on social media channels.
There were thousands of
comments, logo redesign websites,
Twitter spoof accounts (over 4000
followers) and even Facebook
accounts setup to lead this branding
revolt and over 626 results in
Google News on “Gap Logo” from
mainstream press.
Results: Gap reverted to the original logo
41. FUTURELAB
GoDaddy CEO kills Elephant,
loses customers
After Bob Parsons (GoDaddy‟s
CEO) posted a video of himself
shooting an elephant in Zimbabwe
and then tweeted to brag about it,
GoDaddy competitor Namecheap
offered to donate $1 for every
customer who transferred their
accounts over, raising over $20.000.
for Save the Elephants, a
conservation group.
PETA and other organizations also
denounced the move and
encouraged customers to stop
doing business with GoDaddy
Results: Besides the media backlash, GoDaddy found themselves bleeding customers as
competitors jumped at the opportunity, offering discounted transfer fees and also vouching to donate
money to animal welfare organization for every new account.
42. FUTURELAB
Milk Fail
The Milk Board and their agency, San
Francisco-based Goodby, Silverstein &
Partners, launched a new social media
campaign, a tongue-in-cheek look at how
drinking “milk can help reduce the
symptoms” of premenstrual syndrome.
The campaign, however was targeted at
men, and a micro-site, with the URL
“everythingidoiswrong.org,” was set up
and labeled for men as “your home for
PMS management.” The site was
launched around two weeks ago and
originally scheduled to be live through the
end of August. The site‟s content
included lists of “apologies” that men
could use with women with PMS
symptoms.
Results: After just a few days, the Milk Board found themselves in the middle of a firestorm of criticism on Twitter,
Facebook, and the blogosphere as women rose up . Even FunnyorDie came up with a vicious parody ripping the
campaign. In the end Goodby and the Milk Board took the site down after 12 days and redirected the original URL to
a site titled “Got Discussion” where they tried to undo the damage done.
43. FUTURELAB
Kenneth Cole #cairo hijack
In a self-promotional tweet that
hijacked the world sensitive #cairo
tag during the revolution, Kenneth
Cole promotes their own spring
lineup.
Immediately, someone setup a fake
KC account (@KennethColePR),
which posted ironic tweets such as
“People from New Orleans are
flooding into Kenneth Cole stores”
As a sidenote, the tweet in question
was signed –KC, meaning it was
sent off by the designer himself.
Results: KC later apologized via Twitter and Facebook but not before severe SM Backlash
45. FUTURELAB
Pantene‟s Cause Marketing
backfires
A cause marketing style campaign
was launched in the Philippines,
asking women to get join a
Facebook page called “I Commit to
Change“. Once the members joined
the independent ‟cause‟ Pantene
unleashed its branding campaign,
promoting their latest products as
the agent of change. Feeling duped,
the women responded via social
media, posting blogs in which they In all of their actions in the Facebook page including the notes
expressed their discontent at the they said that it was a movement committing for change.
ruse. There was not a single mention that it is connected to any
commercial product or brand.
– Blogger on the ICTC campaign
Results: thousands of angry key influencers in the core audience
46. FUTURELAB
Habitat
The stylish furniture maker Habitat
jumped on the Twitter bandwagon in
a big way but was exposed for
spamming. Its self-promoting tweets
that included popular trending topics
to attract attention.
And if including a hashtag# for a
popular HBO drama like "True
Blood" wasn't enough, the company
actually took advantage of the
misfortunes of others by including
"Mousavi" and the "Iran Election" on
tweet updates as well.
Results: Retaliating against this form of 'parasite marketing,' the Twitterverse struck back by
exposing the practice to Twitter's SPAM department.
49. FUTURELAB
• You can be the answer, not the problem
On the contrary • Re-intermediation
It‟s only just begun!
• Curation
• Audience Involvement
• Audience Management
53. FUTURELAB
FUTURELAB
19% of our detractors have
an issue with misaligned
touchpoints when it comes to
complaint resolution.
Real life case
Make the customer‟s voice more interesting
55. FUTURELAB
How often do you and your leaders actually meet with
real customers for real conversations?
The best way to listen to customers
Meet them for real conversations
56. FUTURELAB
Thought leadership Recognition
• + 10,000 articles
• 75-100k regular readers
+ 3.15.000 views
+ 10,000 followers
Relevance in action
And give it away (but dont ask for a number)!
57. FUTURELAB
Pay with a tweet
Innovative Thunder, a NY based
creative team, started the pay with a
tweet project which they describe as
such:
“In today's world the value of people
talking about your product is sometimes
higher than the money you would get for
it. „Pay with a Tweet‟ is the first social
payment system, where people pay with
the value of their social network.
It‟s simple, every time somebody pays
with a tweet, he or she tells all their
friends about the product. Boom.”
Results: the system was launched along with their book, “Oh My God What Happened And What
Should I Do?”. The book got 13.000 downloads in the first 72 hours and 170.000 downloads and
tweets in just 6 months. In six months, 400.000+ people paid for something with a tweet or FB post.
58. FUTURELAB
Harley Davidson (HD Talking)
Harley owners created website and
social community totally funded by
users and user-generated
content. Here, Harley owners trades
photos, jokes, where to find hard to
find parts, advice on Harley models
and ownership plus there are at least
7 mechanics on-call at all
times. HDtalking.com now has
40,000+ members and cost to Harley
is negligible.
59. FUTURELAB
The North Face
The popular brand joined Twitter in
October 2007. However, they had no
clear direction until 2008. In 2008, The
North Face went to create a free digital
tool that would enhance the user‟s
outdoor experience. By December of
2008, they launched a free iPhone
application. In 2009, they relaunched the
app with the consumers feedback in
mind. The new and improved application
included Twitter. They soon realized that
the best way to leverage Twitter and build
a communal following was to promote
The North Face branded content..
Serving up industry information to their
Twitter community, they quickly increased
the following, and saw a steady flow of
re-tweets, which spurred community
interaction.
Results: several related apps for download now; combined downloads of several million apps
61. FUTURELAB
FUTURELAB
Brands seek loyalty for life
Trust us - Engage with us - Become an Advocate - “Love Us”
62. FUTURELAB
FUTURELAB
• Seduce & Forget Campaigns
But in Reality they behave like a • Loyalty Scams
• The New Customer is Prettier
One Night Brand •
•
Join This Week‟s Community
You are just a segment
63. FUTURELAB
FUTURELAB
After the lies, the forgetting, the disregard, the customer promiscuity
Would you still “engage”?
64. FUTURELAB
FUTURELAB
To build buzz for next year's ad
campaign, The Australian Financial
Review recently used a competition
to crowdsource ad copy from
readers. Dubbed Write Our Next Ad,
the brief was for a short, sharp,
clever ad that would resonate with
the audience and promote the
benefits of regular readership, while
reflecting the brand's focus on
leadership, strength and inspiration.
Over 13.000 entries were
submitted.
Write our next ad…campaign...businessplan for us.
65. FUTURELAB
FUTURELAB
WiserPregnancy aims to help users
make informed decisions by
showing them what others have
done in their own situation,
including the choices they made,
their rationale, the outcome of those
choices, and how they felt about it
afterward. The searchable includes
data from thousands of women
about more than 600 choices that
can be faced while pregnant.
Wiser Pregnancy: jointly develop the content
66. FUTURELAB
FUTURELAB
A community website where people
afflicted with certain illnesses can
read all about the experiences of
other people as well as share their
own experiences. The purpose,
then, is to allow users to interact
with one another, track how
treatments are working for other
members, and explore the side
effects patients are seeing with
certain treatments.
Patients Like Me: joint development
67. FUTURELAB
FUTURELAB
Missha‟s Story
The South Korean cosmetics firm
Missha started as an online retailer
before opening storefronts, and
from the beginning it invited its
customers to provide substantive
feedback – about products,
packaging, pricing, image – in short,
everything.
What Missha found should not have
been a surprise, but it was new to
many: its customers had a lot to say
and they liked being asked.
Results: During a period of five years, Missha has built a customer base of more than 1.8
million customers who are actively engaged with determining the company’s future.
68. FUTURELAB
FUTURELAB
Amateur Outsiders
In Brazil, Kaiser Beer embarked on
a CUSTOMER-MADE adventure
last year by asking their customers
to co-create its Kaiser Novo Sabor:
a new premium beer reflecting the
opinions and personal taste
preferences of more than 11,000
contributors in 130 cities across
Brazil.
Results: The beer was an instant hit, with the initial 11,000 contributors eager to play
the role of brand ambassador. (Source: Springspotter Network, Paula Rizzo)
69. FUTURELAB
Fiskars – use your fans
300 year old Finnish company that makes
fine cutting tool created online
social community of crafting enthusiasts
called “Fiskateers” to build relationships
with the underutilized channel of small
retailers for a 3X increase in company
sales.
71. FUTURELAB
FUTURELAB
It is not only fat sociopathic 16-year-olds with acne
You think “people like us” or “our women” don‟t play?
http://mashable.com/2010/02/17/social-gaming-survey/
73. FUTURELAB
Who do you trust?
Survey Methods
Results are based on a Gallup Panel study consisting of web surveys completed by 17,254
national adults, aged 18 and older. Respondents were deemed proficient internet users based
on their ability to complete the survey via the web. The study was conducted in September and
October 2010. Gallup Panel members are recruited through random selection methods. The
panel is weighted so that it is demographically representative of the U.S. adult population. For
results based on this sample, one can say with 95% confidence that the maximum margin of
sampling error is ±1.43 percentage points. Margins of sampling errors vary for individual
subsamples. In addition to sampling error, question wording and practical difficulties in
conducting surveys can introduce error or bias into the findings of public opinion polls.
75. FUTURELAB
The Power of Recommendation
1955 1967 1983 2001 2007
Word-of-mouth is 7x more effective than newspaper advertising,
5x stronger than a personal sales pitch and 2x as effective as
radio advertising
Marketing Science Institute, 2006
This is not exactly news....
76. FUTURELAB
Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & Company
How likely are you to recommend ?
0 1 2 3 4 5 6 7 8 9 10
77. FUTURELAB
Which provides for a simple, yet effective approach to customer
segmentation
Detractors (hate you) Passives (don’t care) Promoters (ambassadors)
Different economic behaviour + the value of word-of-mouth = substantial profit impact
78. FUTURELAB
Those who speak well about you are more profitable
Lifetime customer value
Happy customers = more profit
-They spend more
-They negotiate less
Average
-They stay longer
customer
-They are easier to service
-They upgrade quicker
-...
0 1 2 3 4 5 6 7 8 9 10
Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & Company
79. FUTURELAB
Customers that are so happy that they‟d recommend your
business to a friend, colleage or family member …
spend more
negotiate less
stay longer as customers
are more open to upselling
are easier to service
upgrade quicker
are ready to refer to others
etc.
Over the lifetime of a customer a 5% improvement in customer retention can cause
an increase in profitability between 25% and 85% (F.Reichheld)
80. FUTURELAB
Go forth and discover
this wonderful brand!
Once the basics are sorted
You can start activating promoters
81. FUTURELAB
THE ACTIVATION CHALLENGE
Are you likely to Do you actually
recommend? recommend?
YES !! NO
What goes wrong ?
That‟s not the whole story
You can start activating promoters
82. FUTURELAB
Mmmhhh … I‟d like
some of that …
I just have to tell
you about Stefan…
Let‟s stay “in theme” with a case study
Say I seek promoters for my skills as a lover.
83. FUTURELAB
Which would be the most effective method
To turn you into a promoter for my skills as lover.
Direct Sales? Advertising? Sales Promotion?
Recommend a friend & get
e-coupon
www.
greatlover 60 Minutes Extra
.com
This voucher cannot be combined
with other promotions.
Hi, I‟m a great lover. Tell them he‟s a
2-for-1 Promo
Bring a friend & collect
Would you mind great lover!! double loyalty points to
telling your friends? get those wine glasses!
FUTURELAB
84. FUTURELAB
If it doesn’t spread … it’s dead.
Customer delight stories need to memorable, but also worth mentioning
85. FUTURELAB
If you want me to talk about you
Tell me a story
that makes myconversations
(and me) more interesting.
88. FUTURELAB
Random acts of kindness
In September 2010, Interflora (www.interflora.co.uk) launched a social media campaign in the UK designed to
brighten up the lives of Twitter users by sending them flowers. As part of the campaign, Interflora monitored Twitter
looking for users that it believed might need cheering up. Once found, the users were contacted directly and sent a
bouquet of flowers as a surprise.
89. FUTURELAB
If you want me to introduce you to my friends
Give me tools
that demonstrate my value to my
friends, colleagues and family
90. FUTURELAB
We have a
superpromoter
who already sold 7
shavers because
he wants to offer
his friends the joy
of a Philips shaver.
Our job is to help
him help his
friends.
Mechanisms to spread the word
Case: Philips consumer products FUTURELAB
91. FUTURELAB
If you want me to introduce you to my friends
Just ask me
You’d be surprised how easy it is
to get me to talk
92. FUTURELAB
• After customers pay, have waiters ask if they
would recommend. If they say yes, give them
a voucher for the person they want to
recommend to – and make it shareable
online
• Let them invite their friends to a testdrive;
give away a testerpack of beers; give a gift
subscription – but just ask them who it should
be given to:
Just ask....
Both in social media and real life – ask them!
93. FUTURELAB
Prescribe the Nation
The idea behind the project was to
give Vaseline Clinical Therapy lotion
to one Alaskan woman and to ask
her to lather it on everyone she
loved.
The people she gave the product to
loved it, and then they gave the
product to people they loved, who
gave it to people they loved, and so
on.
This is the essence of word of
mouth. Now, to make this Alaskan
network go even further, Vaseline
has created a website to show us
whose hands our main character,
Petal Ruch, was able to soften.
Results: 1,000 of her community‟s 6,000 residents switched to Vaseline Clinical Therapy
lotion. In 30 weeks of campaign, 3,000,000 people around the world have been
“prescribed” Vaseline Clinical Therapy
94. FUTURELAB
But how will I control all this?
This freedom will lead to thousands of inaccurate and divergent conversations.
12/11/2011 94
96. FUTURELAB
Timecheck hidden slides
Their intentions may be pure
They may just be having a bad day
They may not see the (potential) harm in what they‟re doing
BUT EVERYTHING THEY SAY SHAPES YOUR BRAND
So be tolerant – and be ready...
So dont even try...
You cannot “control” every message
Sources:
http://blogs.forbes.com/markpasetsky/2011/02/03/news_kenneth_cole_egypt_tweet_19871/
http://jalopnik.com/#!5780113/chrysler-loses-control-of-twitter-account-drops-f bomb
http://www.autoblog.com/2009/09/03/honda-purges-some-comments-from-crosstour-facebook-page/
97. FUTURELAB
Make sure you get the basics right
Integrate throughout the company
Give your people space and pride
Give room to the voice of the customer – by
listening but also taking it into the boardroom
and the rest of the company
Dont do „campaigns‟ – this is about behaviour
and quality
Start with an insight, not an idea
Provide value, not noise
Build relationships
Happy customers bring more money and
more customers
Go for the influencers – and turn them into
promoters
Through Relevance; Engagement, reputation
Conclusions – in random order
Yes we can
98. FUTURELAB
Or in a nutshell
What does this do for the customer? How will it delight him? How will it encourage him to advocate us?
99. FUTURELAB
KLM Surprise
KLM wanted to reach out to KLM
passengers in the real world to
reward them for flying with KLM.
They monitored check-ins on
Foursquare at KLM locations and
did some social media monitoring to
find the people that mentioned KLM
in their check-in. When they had a
picture of who the person was, their
activities, interests and
personalities, they hunted them
down, bought them a small gift, and
gave it to them as they waited for
their flight.
But people still hate the company!