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From crisis prevention to consumer insights
- 1. FROM CRISIS PREVENTION TO CONSUMER INSIGHTS
- 2. “A BRAND IS NOT WHAT YOU SAY IT IS. IT’S WHAT This is THEY SAY IT IS.” a product -‐ ANONYMOUS BRAND MANAGER
- 4. It’s not just the usual suspects that get into trouble • Agribusiness • Animal Care • Automo7ve & Transporta7on • Building & Construc7on • Consumer Goods • Defense & Aerospace • Educa7on • Energy, Power & U7li7es • Fashion & Lifestyle • Financial Services & Insurance • Food & Beverage • Global Security • Government • Healthcare • Luxury • Manufacturing • Retail • Sports • Technology • Travel & Tourism
- 5. The cost of crises Perrier (Benzene incldent) $263,000,000 4x Union Carbide (Bhopal) $527,000,000 8x Pan Am (Lockerbie) $652,000,000 9x Barings Bank $900,000,000 13 x Occidental Oil (Piper Alpha) $1,400,000,000 20 x Exxon (Valdez spill) $13,000,000,000 186 x Source: Managing corporate reputa7on through crisis – Adam Jolly -‐includes cleanup costs, days of lost produc7on, boycoQs, recalls, falling share price, brand damage
- 6. The Internet is a Crisis “Game-‐Changer” One person can Crises play on a Pace of events “light the fire” global stage accelerates 6
- 7. $10 million reputa7on damage in 10 days • A forum was used to seed the complaint about Kryptonite • Blogs, Search Engines and Social Media spread the nega7ve message • Because Search Engines record everything, one forum contributor had a viral audience of millions. The nega7ve reputa7on is archived forever un7l you ac7vely neutralize it • A reputa7on was destroyed online in 10 days • The cost of ignoring online = 10 million USD product recall
- 8. The reputa7on of a market leader destroyed • Kryptonite has had over 500,000 viewers on one channel alone • Blogs and Search Engine results con7nue to damage the reputa7on long a_er the crisis is resolved hQp://www.youtube.com/watch?v=t8XxcOj3Seo
- 9. San Lu crisis: Chinese ne7zens get crea7ve 12 September 2008 Source: hQp://www.chinasmack.com
- 10. Lenovo crisis averted because of issues monitoring • In 2006 BaQery catches fire in LAX United Airlines lounge • Forum post on somethingawful.com • Lenovo monitoring team picked up the discussion • Within 1 hour Lenovo scien7sts flew to LAX to examine the issue • Sony baQery determined to be the issue • Sony issues recall • Lenovo reputa7on saved
- 11. Remember -‐ Search engines record all kinds of media and store it forever Source – seomoz.com
- 12. Key Ques7on • Why spend millions building your brand if you won’t spend a few thousand dollars on a monitoring its reputa7on? Big brand with a mul7-‐ million dollar marke7ng budget Unhappy customer grumbling in an internet cafe
- 14. Tip 1 -‐ Villain Avoidance: Vulnerability Assessment Audit • An honest examina7on of every aspect of your business • Skeletons in the closet? • A list of possible crisis areas…
- 15. Tip 2 -‐ With All Monitoring Make Sure that You Cover Off Audiences Customers Distributors General Public Vendors Media Employees Financial Institutions Government Industry Analysts NGOs
- 16. Tip 3 -‐ Create a team, don’t rely on the en7re Company § Monitoring should be done by a dedicated team but all parts of the Human business need to be in the loop Resources when deciding ac7on Marketing and Legal Communications Team Monitoring Solution Customer Finance Service Operations
- 17. Tip 4-‐ Create a process, so that everyone is on the same page
- 18. Be prepared for all scenarios Take reasonable ac7on to fix issue and let customer know ac7on taken Posi7ve Nega7ve Yes Yes No Do you want Assess the Evaluate the Does customer need/ to respond? message purpose deserve more info? Yes Unhappy Yes Are the facts No Gently correct the No Response Customer? correct? facts No Yes Can you add No Dedicated Yes Are the facts No value? Complainer? correct? No Yes Is the Explain what is being Respond in Thank the Comedian problem Yes done to correct the kind & share person Want-‐to-‐Be? being fixed? issue No Yes This framework was built using the USAF Blog Triage. (Adapted by Let post stand and Jeremiah Owyang, Al7meter Group) monitor 18
- 19. A blueprint for manual issues monitoring Set up Web analy7cs Set up tracking of video (sudden burst of traffic Hire a full 7me analyst and image channels from one source) Set up keywords for Have a policy of how to your brand’s known classify and allocate weaknesses, Set up tracking of responsibility to the compe7tors websites right team compe7tors, each of your products Iden7fy where discussions about your Set up page change industry/brand take alerts place Set up Google alerts and Set up RSS feeds media monitoring
- 20. What you can miss with manual monitoring Missed! Non mainstream sources e.g. Jeff Jarvis a media-‐industry blog The catalyst of Dell’s reputa7on issues of 2005. 12 blog posts, 100,000’s of readers 1000’s comments Indexed by Google Captured
- 21. A beQer solu7on? Should you use tools to monitor issues
- 22. A few key decisions to make – Asian vs.. US centric – Human vs.. machine – Outsourced vs.. In-‐house – Presenta7on of data
- 23. ISSUES MONITORING – ASIAN OR US CENTRIC?
- 24. Is there a big difference • Does it maQer that they are saying good things about you in English?
- 25. US versus Asian tools – there can be a huge difference Asian centric tool US centric tool 5,000 conversa7ons 60 Conversa7ons (and other forums and discussions) (and other local forums and discussions)
- 26. Key lessons • Ensure that your tool measures your local market or you could miss an issue that becomes a crisis • Ask what channels the tool monitors • Be prepared to adapt the themes and words you are monitoring daily
- 27. ISSUES MONITORING – HUMAN OR MACHINE?
- 28. Automated sen7ment scoring • Natural Language Processing (NLP) is a complex technology • NLP engineers have PHDs in ar7ficial intelligence • It involves teaching a machine to know the difference between good and bad sen7ment – Remove false posi7ves – Retain varia7ons like spelling and synonyms
- 29. Automated sen7ment scoring can be very inaccurate. WARNING! Analysis can have much as 50% variation! > “Positive” could actually be “Negative”! > “Negative” could actually be “Positive”! Posi7ve Nega7ve Nega7ve Posi7ve Nega7ve Posi7ve Nega7ve
- 30. There are tools and there are tools… There are some solu7ons which have a beQer understanding of the sen7ment than others. Tools that… – Don't just understand polarity (nega7ve/posi7ve) but also emo7onal states (sadness) and actual emo7ons (angry) – Understand that language varies by industry e.g. “Tony Hawks is wicked” – Understand that there are specific expressions around a single brand e.g. “Apple’s iPad2 is a re-‐skin” – Are analyst friendly – no programming required
- 31. ALWAYS use a human analyst
- 32. ISSUES MONITORING – WHAT CAN YOU DIGEST IN A CRISIS?
- 33. Ideal issues monitoring report size 33
- 34. High-‐level snapshots of issues/crises
- 35. Purchased brand x Purchased brand x Recall Products Purchased brand x Recall Products From Guangzhou Recall Products Is HK brand x baby milk Disappointed at brand x 14 Female powder in the recall list? 3 (100%) 4 1 (75%) 4 4 (100%) (100%) (4%) How can I get my refund? (4%) Total Audiences 14 Anger towards brand x China refund process Purchased brand x (13%) Recall Products From Guangzhou Female 12 4 Mother 150 Why China consumers are (12%) (100%) 1 treated differently (17%) (100%) 110 Post 70s 104 1 (73%) From Zhuhai (95%) (1%) 1 From Shanghai Praise of brand x's recall (100%) 1 1 Unidentified initiative (17%) (8%) Can brand x still be trusted? The impact of brand x's recall 2 Purchased brand x 6 55 Recall Products Post 70s (2%) (5%) (36.67%) The truth behind every 5 1 Post 80s 1 Purchased brand x baby milk powder brands (5%) (20%) 1 Updates of recalling (100%) Recall Products brand x power Purchased brand x (100%) 39 2 Recall Products From Dongwan From Shanghai 2 (2%) (71%) 1 (2%) (20%) 1 2 (100%) (5%) From Zhuhai Teacher From Nan’ning 1 From Zhenzhou Post 80s Gender From Chengdu (3%) 1 1 1 Parent ID 1 (3%) (3%) 1 (50%) (100%) Themes (50%) From Maoming From Guangzhou Occupation From Guangzhou Generation ID 1 7 From Beijing (3%) 1 Location (18%) 1 (100%) Purchased brand x (3%) Recalled Products
- 36. 酩悦香槟是一种历史悠久 的珍贵的酒类品牌，香港 港口边缘的当代辉煌气质 洲际酒店与酩悦香槟进行 和风格，香港洲际酒店属 了合作，并将筹划一场独 世界级商务及休闲酒店 特的庆祝晚宴。 "从酒店可以看到维多尼 亚港， 另外交通也非常方便，门 房间设施以及无敌海景一 口就有地铁入口" 流：早上起来打开窗帘 （电动的啊）维多利亚港 尽收眼底，当然晚上的维 Mentions 多利亚 港更漂亮 17th January – 16th February 2011
- 37. Too Expensive: few consumers expressed that the venue in Hong Kong is 7meworn and cannot jus7fy their high prices. Room too small: few consumers traveling with family complained the rooms are so small that they couldn't even put in an extra bed.
- 38. More depth – influencers, emo7ons and ac7ons
- 39. Key lessons • If you do not have a full-‐7me analyst make sure that your tool is supported by a human analyst • Make sure the interface can create custom reports that answer exactly the ques7ons you need answered • Use custom reports to inform communica7ons and business strategies
- 40. ISSUES MONITORING – IN-‐HOUSE OR OUTSOURCED?
- 41. Op7on 1 -‐ Keeping Issue Monitoring In-‐House: DELL • Dell’s social media listening command centre • Covering 11 languages • 22,000 daily topic posts related to Dell • Monitoring of TwiQer men7ons • Conversa7on, sen7ment, share of voice, trends • Machine sen7ment analysis + human analysts Dell’s team engages 1,000 customers a week Source: hQp://mashable.com/2010/12/08/dell-‐social-‐listening-‐center/
- 42. Op7on 1 -‐ Keeping Issue Monitoring In-‐House: Gatorade • Gatorade has 4 full 7me staff • Gatorade hopes such coordina7on will help head off poten7al crises like PepsiCo's slow response to consumer complaints that an Apple iPhone applica7on for its . Amp energy drink was sexist Read more: hQp://online.wsj.com/ar7cle/ SB10001424052748703466704575489673244784924.html#ixzz1FEoTYoFI
- 43. Op7on 2 -‐ Hybrid model: working with your agency • In-‐house plus agency is o_en an easier transi7on – It is cheaper – Fewer costly mistakes by the company – Faster learning because of expert agency involvement – Easier to digest for the company – It can make management listen – Agencies can share past experience and can conduct training Agency
- 44. Op7on 3 -‐ Outsourced solu7on The outsourced solu7on is the easiest to start with Human Resources – It is the cheapest solu7on – It is o_en the easiest to Marketing and digest Legal Communications Team Agency runs monitoring and analysis and liaises with Customer Communications Finance Service team Operations
- 45. Key lessons Deciding whether to fully outsource or do it in house depends on – how much money you have – how ready your organiza7on is Par7ally Fully outsourced outsourced, Fully in-‐house issues monitoring par7ally in-‐house issues monitoring issues monitoring • Suits a organiza7on • Suits an organiza7on dabbling in issues where execu7ve team monitoring. The has fully bought into the concept s7ll needs to be importance of the proven in-‐house to the informa7on and can see execu7ve team the usefulness of the • Cost = low data beyond crisis • Cost = high
- 47. Media Dashboard December VOLUME AND MEDIA TYPE SOV - WIRELESS STORY VOLUME: WIRELESS COMPANIES 30000 9,017 8,670 13,422 AT&T T-Mobile 25000 Verizon Sprint 4036 20% AT&T 20000 3012 29% 3392 4968 Verizon 15000 4610 3909 4418 13% 1395 1369 Sprint 10000 Dec Nov Rolling 12 T-Mobile Month 38% 5000 Offline News Online News Blogs 0 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec X AND VERIZON SENTIMENT SOV - CABLE STORY VOLUME: CABLE COMPANIES 3000 U-verse TWC FiOS Comcast 32% 29% 36% 32% 5% 2500 13% U-verse 2000 48% 46% FiOS 48% 52% 48% 1500 Time Warner 34% 21% 25% 16% 16% Comcast 1000 AT&T Verizon AT&T Verizon 500 December December November November Positive Neutral Negative 0 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec KEY MESSAGE PENETRATION BROADCAST COVERAGE TREND TOP ISSUES 10000 ISSUE TOTAL VOLUME Mobilization 3.93% 8000 T-Mobile deal 13,497 Innovation 0.64% 6000 Qualcomm 4,101 4000 LG Nitro HD 3,857 Growth 0.65% 2000 0 Carrier IQ 814 Community 0.51% Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 0% 1% 1% 2% 2% 3% 3% 4% 4% 5% National Local Consumer Reports 432
- 48. Social Media Dashboard Twitter TWITTER FOLLOWERS TWITTER – CLICK TO LINKS 120,000 Promoted tweets 110,000 100,000 MONTH CLICKS 90,000 80,000 Dec. 13,834 70,000 60,000 Nov. 27,809 Change from Previous Month 50,000 40,000 XXX +3% Oct. 27,004 30,000 20,000 10,000 Jan Feb Mar Apr May June July Sept Sept Oct Nov Dec RETWEET RATE @ MENTIONS 20 15000 17.2 18 15.8 11,843 11,546 15.8 13000 16 9,671 13.2 12.2 11000 9,350 14 8,513 7,669 12 8.2 9000 10 7000 8 6 (RTs/1000 Followers) 5000 4 3000 2 0 1000 -1000
- 49. Social Media Dashboard Facebook FACEBOOK FANS 2,000,000 1,750,000 1,500,000 1,250,000 Change from Previous Month 1,000,000 750,000 FACEBOOK +3% 500,000 250,000 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec FACEBOOK CLICKS TO LINKS POSTS AS BRAND 150 MONTH CLICKS 109 125 100 116 Dec. 38,930 75 90 87 Nov. 45,366 50 25 Oct. 52,442 0 Sept Oct Nov Dec FACEBOOK IMPRESSIONS ACTIVE FANS 16,000,000 15,124,449 1,000,000 14,000,000 881,900 866,374 12,000,000 800,000 10,000,000 8,549,397 11,188,717 600,000 654,075 7,492,020 8,000,000 475,828 6,000,000 400,000 Sept Oct Nov Dec Sept Oct Nov Dec
- 50. CompePPve Share of Voice B 12% A 23% C 65%
- 51. Share of ConversaPons by Media Type A C Forums 2: 25% Forum Forums Replies Blogs 7: 17.5% 4: 50% 23: 57.5% Micromedia 2: 25% Forum Replies B 4: 10% Forums Aggregator 12: 14% 3: 7.5% Blogs Micromedia 47: 54.7% News 1: 2.5% 9: 10.5% Videos News 1: 2.5% 1: 2.5% Forum Replies 12: 14% Aggregator Videos Micromedia 5: 5.8% 2: 2.3% 3: 3.5%
- 52. CompePPve Share of Voice Cairn India 88.2% 11.8% Reliance Energy
- 53. Share of ConversaPons by Media Type Cairn India Reliance Energy Mainstream News Micromedia 20.0% 6.4% Comments Other (video 8.0% and blog) 3.7% Other (forum) Mainstream 8.0% News 89.8% Micromedia 64.0%
- 54. INSIGHTS
- 55. What insights? B A 12% 23% Cairn India 88.2 % 11.8 C % Reliance 65% Energy B’s share of voice online is rela7vely low I’ve got my work cut out for im8 Cairn India’s share of voice s e. compared to its compe7tors’ respec7ve They seem to be doing Energy’s. 7mes that of Reliance everything business schools’. right. How the hell am I ever going to improve upon this figure?
- 56. Decision Factors 1. Word of mouth Applicants rely heavily on word of mouth for course recommenda7ons. “My roommate from year 3 said that this course is a waste of money. If you look into their course structure, you will realize that it is almost the same as the course structure for people who doesn’t even have a major. Their only compe@@ve edge is that students can go on exchange for half a year. However, as long as you have a decent grade, exchange programs are really not that hard to get into.”
- 57. Decision Factors 2. Future career paths One of the hurdles that business schools have in 3. Flexibility and resources common is the idea that business degrees are not as While comparing City University and the Hong Kong useful as other more specialized degrees, and that it is Polytechnic University online, ne7zens believe that an ins7nc7ve skill to have. City University is more favorable because of its flexibility in choice of courses and the resources it puts into exchange programs and internships for business programs.
- 58. Decision Factors 4. AuthoritaPve ranking HKUST was recently listed in the 2011 Global MBA Rankings report as one of the 7er one MBA Schools in the world. Other universi7es, such as City University, has already been leveraging this to their advantage on discussion boards.
- 59. Influencers ConversaPons around the industry SONAR found that these influencers are less subjec7ve and tend to retweet ar7cles and mainstream news.
- 60. Influencers ConversaPons around Reliance Energy The conversa7ons around Reliance Energy are very subjec7ve compared to those on the industry and Cairn India. These are mostly complaints and nega7ve news.
- 61. Top 5 news by comment count 20 18 A. RBI Policy, Budget to help hold 4500: PRABHUDAS LILLADHER 16 hQp://www.moneycontrol.com/news/market-‐outlook/rbi-‐policy-‐ budget-‐to-‐help-‐hold-‐4500-‐prabhudas-‐lilladher_646026.html 14 B. Vodafone wins $2 BN tax case in supreme court 12 hQp://www.business-‐standard.com/india/news/vodafone-‐wins-‐2-‐ bn-‐tax-‐case-‐in-‐supreme-‐court/155821/on 10 C. M J Anthony bureaucrats as arbitrators hQp://www.business-‐standard.com/india/news/m-‐j-‐antony-‐ 8 bureaucrats-‐as-‐arbitrators/462703/ 6 D. RIL’s shares drop a_er Morgan Stanley downgrade hQp://www.rediff.com/business/report/rils-‐shares-‐drop-‐a_er-‐ 4 morgan-‐stanley-‐downgrade/20120113.htm E. Random logic: UPA's arbitrary hurdles for deal-‐ 2 making hurt India's reputa7on 0 hQp://www.business-‐standard.com/india/news/random-‐logic/ 462932/ A B C D E
- 62. Recent conversaPon Pmeline IOC, ONGC keen to buy Gujarat Gas, Cairn not in race 1 “Tatas may manufacture JLR models in India More Other firms interested include Adani Group and Gujarat State Petroleum Corp (GSPC) but Cairn India is not keen.” hQp://www.business-‐standard.com/india/news/ioc-‐ongc-‐keen-‐to-‐buy-‐gujarat-‐gas-‐cairn-‐not-‐in-‐race/154527/on Cairn details long-‐awaited $3.5 bln cash return 2 “Oil explorer Cairn Energy said it would return 1.60 pounds per share in cash to investors, as part of a well-‐ flagged plan to distribute $3.5 billion from the proceeds of the part sale of its Indian oil business.” hQp://www.sify.com/finance/cairn-‐details-‐long-‐awaited-‐3-‐5-‐bln-‐cash-‐return-‐news-‐equity-‐mbkqUpeaafg.html RIL shares drop, as Morgan Stanley raises concerns 3 “Cairn India stood to gain by way of its "produc7on growth and free cash flow.” hQp://www.mydigitalfc.com/companies/ril-‐shares-‐drop-‐morgan-‐stanley-‐raises-‐concerns-‐068 1 2 3
- 63. Recent conversaPon Pmeline Cairn eyes bigger output from Rajasthan block 4 “Cairn India is set to get approval for raising output from Mangala field in the prolific Rajasthan block to 150,000 barrels per day.” hQp://www.business-‐standard.com/india/news/cairn-‐eyes-‐bigger-‐outputrajasthan-‐block/155715/on 5 Cairn India Q3 net up 12% at Rs 2,262 cr hQp://www.business-‐standard.com/india/news/m-‐j-‐antony-‐bureaucrats-‐as-‐arbitrators/462703/ Cairn India CEO sells stock ahead of opPons grant “Cairn India CEO Rahul Dhir. Dhir sold Rs 1.5 million between 30 January and 1 February, Cairn said in a 6 stock exchange filing on Thursday.” hdp://www.livemint.com/2012/02/02175943/Cairn-‐India-‐CEO-‐sells-‐stock-‐ah.html 5 4 6
- 64. TAKEAWAYS
- 65. Main takeaways 1. Mainstream news and microblogs are the major channel for online conversa7ons, followed by discussion forums and online news outlets. 2. Reliance Energy may have a lot more presence on microblogs, but not all publicity is good publicity, most of the comments on Reliance energy are complaints. Although Cairn India’s social media reputa7on is compara7vely beQer, they must plan for social media crisis ahead of 7me. 3. Online men7ons of Cairn India are mostly generated from financial news around assets and investor rela7ons, and less from user experiences. Cairn India can strengthen customer rela7ons by pu}ng a face to the brand.
- 66. WHY IS IT ESSENTIAL?
- 67. Board • Overall Brand Equity and Long Term Strategic Planning. C-‐Level • Overall Brand Equity and Daily Opera7ng Strategy Planning. Sales • Iden7fy sales targets (segments, sites, people, etc). Marke7ng • Create and test marke7ng engagements and get 7mely feedback. PR / Corp Comm • Be aware of online chaQer and proac7vely engaging public. Investor Rela7ons • Manage and track the sen7ments of public, investors, analysts, etc. Product Management • Gather 7mely feedback on product/service to react on. Risk Management • Find and aQempt to remove sensi7ve informa7on. Customer Services • Address customers dissa7sfac7ons to stop snowball effect. M&A • Gather “ground truths” and other rumors on poten7al targets. HR • Iden7fy and profile possible candidates for hire / fire. CSR • Understand public percep7on of CSR ac7vi7es for improvement.
- 68. SUMMARY
- 69. Summary • The tool is not the answer, it is the approach and strategies that maQer most • Use human analysis to interpret the data • Every monitoring output should be unique and tailored to your business • Consider working with an experienced partner who understands your business not one who only knows about the technology and tools • Think long-‐term, invest in the right skill sets, build a team • Monitoring should inform EVERYTHING YOU DO
- 70. QUESTIONS? James Hacking 2967 8982 James.hacking@bluecurrentgroup.com