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Reinventing Consumer Interaction in the Social Media Era and beyond - Managing Communities is what it is! Reinventing Consumer Interaction in the Social Media Era and beyond - Managing Communities is what it is! Presentation Transcript

  • BSI
    Reinventing Consumer Interaction in the Social Media Era and beyond - Managing Communities is what it is!
    Utrecht, April 2011
  • BSI
    2003
  • BSI
    2006
  • BSI
    2008
  • BSI
    FACTS
  • BSI
    FOUR IN FIVE
    COMPANIES WILL USE SOCIAL MEDIA TOOLS IN 2011
    Source: eMarketer 2011
  • BSI
    $1.7 BILLION SPENT IN SOCIAL NETWORKS ALONE!
    Source: eMarketer 2010
  • BSI
    SOCIAL MEDIA SPENDING UP TO 21% OF TOTAL MARKETING BUDGETS IN THE NEXT 5 YEARS
    Source: CMO/Duke 2011
  • BSI
    PROBLEM:
  • BSI
    87% OF ALL SOCIAL MEDIA ACTIVITIES FAIL!
    Source: BSI 2010
  • BSI
    ONLY 7% ARE RESPONSIBLE FOR 89% OF ALL SUCCESSFUL SOCIAL MEDIA PROGRAMS!
    Source: BSI 2011 Photo: BestBuy
  • BSI
    APPROX. 73% OF ALL SOCIAL MEDIA BUDGETS ARE WASTED!
    Source: BSI 2011
  • BSI INCREASING GAP
    Social Media Service Providers
    Successful Social Media Teams
    Source: BSI 2010
  • BSI
    DO CAMPAIGN FAILURES, HIGH-PROFILE FIRINGS SIGNAL THE END OF SOCIAL MEDIA? Adage March 2011
  • BSI
    YES!
    SOCIAL MEDIA ISN’T A CAMPAIGN
  • BSI
    Why?
  • BSI
    INSIGHTS FROM THE SOCIAL MEDIA “INDUSTRY“
    Photo: Facebook 2010
  • BSI EXPERIENCE/DATA
    ...
    Social Media Research
    ...
    ...
    Social Media Experiments
    Social Media / Community Programs
    IN THE LAST 8 YEARS WE ANALYZED:
    187 BRANDS WORLDWIDE
    14.921 CONSUMERS
    47 AGENCIES
    ...
    ...
    ...
    Social Media Consumer Panels
    Social Media Business Planning
    Social Media Consulting
    Note: Upcomingresultsare from different researchstudies
  • BSI
    EIGHT YEARS OF SOCIAL MEDIA, AND BRANDS ARE STILL DISORIENTED
  • BSI SOCIAL MEDIA PHASE MODEL
    ConfusionAverage Team Size 3.7
    Orientation Average Team Size 6.3
    Formation Average Team Size 10.6
    (Re)Integration Average Team Size 25.1
  • BSI SOCIAL MEDIA PHASE
    ConfusionAverage Team Size 3.7
    Orientation Average Team Size 6.3
    Formation Average Team Size 10.6
    (Re)Integration Average Team Size 25.1
    #FAIL
  • BSI SOCIAL MEDIA PHASE
    Confusion
    Orientation
    Formation
    (Re)Integration
  • BSI
    THE BIGGER THE COMPANY IS AND THE MORE INTERMEDIARIES EXIST, THE LESS SUCCESSFUL THESE COMPANIES ARE AT INTEGRATING SOCIAL MEDIA
  • BSI
  • BSI
    ONLY 19% HAVE A CLEAR SOCIAL MEDIA STRATEGY
  • BSI SOCIAL MEDIA DEPARTMENTS
    BSI
    BSI
    2010: Whatdepartmentdoes Social Media reportunder?
    2008: Whatdepartmentdoes Social Media reportunder?
  • BSI
    ONLY 16% HAVE A COMPANY- WIDE DEFINITION OF WHAT SOCIAL MEDIA IS
  • BSI
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    Hmmm…
    Hmmm…
    Hmmm…
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    Hmmm…
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  • BSI
    Hall ofFameoftheofmost stupid socialmediabriefingswegot:
    … In future, our Web site should be in a social-media format. We will thus ensure that our content is only accessed by registered users. In the long term, registered users should be transferred to a pay-per-view model …
    … With the help of social media we want to become more customer-focused and convey our brand message through 1:1 dialogue. To this end, we want to abandon our Web site and integrate our brand solely via Facebook, YouTube, and Twitter …
    … The objective must be to convert spontaneous direct-response purchase into sales at POS through the use of social media. In order to achieve this objective we are leaving every creative social-media idea on social networks and blogs – FISH WHERE THE FISH ARE …
  • BSI SOCIAL MEDIA DEFINITION IN COMPANY
    (Re)Integration
    Confusion
    Orientation
    Formation
  • BSI
    ONLY 19% KNOW HOW TO WORK WITH A SOCIAL MEDIA AGENCY
  • BSI AGENCY SELECTION/ WORKFLOW SOCIAL MEDIA
    Confusion
    Standardized Marketing Processes
    Orientation
    StandardizedProcesses, but awareofcostinefficiencies
    Formation
    ProcessReengineering Program
    (Re)Integration
    New Social Media Processes
    Boutique
    Freelancer
    Advertising Agencies
  • BSI
    Hey Agencies, youneedtoredefineyourroleas a serviceprovider
    AGENCIES HAVE TO REDEFINE THEIR ROLE IN THE SOCIAL MEDIA CONTEXT
  • ONLY 12% ARE AWARE OF THE NEED TO FORMALIZE SOCIAL MEDIA ROLES/FUNCTIONS
    ONLY 11% ARE AWARE OF THE NEED TO FORMALIZE SOCIAL MEDIA ROLES/FUNCTIONS
  • BSI ROLES AND FUNCTIONS
    1. Observer
    Observer:
    Social Media team tracks a subset of relevant online conversations to get a picture of what their customers think about them and their competition.
    Moderator:
    Social Media teamfostersconversations, allowscustomersand prospects to exchange information.
    Mediator:
    Social Media team actually takes control of the information and disseminates it itself.
    Participant:
    Social Media team participates directly in consumer-to-consumer conversations
    CONSUMER
    2. Moderator
    BRAND
    3. Mediator
    4. Participant
    CONSUMER
    2. Moderator
  • BSI ROLES AND FUNCTIONS
    (Re)Integration
    Confusion
    Orientation
    Formation
    Roles/Functions (implicit)
    Roles/Functions (explicit)
    CONSUMER
    CONSUMER
    CONSUMER
    CONSUMER
    Roles/Functions (explicit)
    Roles/Functions (implicit)
    Evaluate
    Evaluate
    Evaluate
    Evaluate
    Education
    Education
    Education
    Education
    Measure
    Measure
    Measure
    Measure
    BRAND
    BRAND
    BRAND
    BRAND
    Research
    Research
    Research
    Research
    Planning Cycle (unaware):
    PlanningCylce (aware):
    Planning Cycle (aware):
    Planning Cycle (unaware):
    CONSUMER
    CONSUMER
    CONSUMER
    CONSUMER
    Manage
    Manage
    Manage
    Manage
    Strategy
    Strategy
    Strategy
    Strategy
    Implementation
    Implementation
    Implementation
    Implementation
    Planning
    Planning
    Planning
    Planning
  • 79% HAVE NO SOCIAL MEDIA- OR MODERATION GUIDELINES
  • BSI
    …what???
  • …yay!!!
    HOW THE REALITY OF BMW CONSUMERS LOOK LIKE
    HOW BMW THINKS OF CONSUMERS
  • BSI
    (Re)Integration
    Confusion
    Orientation
    Formation
    Howcan I solvethisissueas fast andasgoodas I can!?
    #WTF
    JOSHUA THE INTERN
    RICHARD THE COMMUNITY MANAGER
  • BSI MODERATION WORKFLOW
    Negative/Reactive
    Positive/Active
    Take reasonable action to fix issue and let customer know action taken
    No
    Assess the message
    Evaluate the purpose
    Do you want to respond?
    MISSING!
    Yes
    Pull-Out Medium
    Yes
    Escalation
    No
    Competitor
    Yes
    Does customer need/deserve more info?
    Are the facts correct?
    No Response
    Yes
    Engaged Critic
    Advocates influence
    Not satisfied
    No
    Yes
    Can you stop it?
    No
    Gently correct the facts
    No
    Yes
    DedicatedComplainer?
    Engage respectfully
    Thank the person
    No
    Are the facts correct?
    No
    No
    Involve Legal/CC
    Let post stand and monitor.
    Troublemaker
    Yes
    Pull-Out Medium
    Escalation
    Yes
    Is the problem being fixed?
    Explain what is being done to correct the issue.- Checklist/Isolate
    Yes
    Yes
    No
    Can you add value?
    Advocates influence
    No
    Not satisfied
    Yes
    Flamer
    No
    Respond in kind & share
    Thank the person
    Refocus possible?
    Pull-Out Medium
    No
    Yes
    Thank the person
    Let post stand and monitor.
    Comedian WannaBe?
    Escalation
    Advocates influence
  • BSI SENTIMENT AND CONVERSIONS
    ConfusionAverage Team Size 3.7
    Orientation Average Team Size 6.3
    Formation Average Team Size 10.6
    (Re)Integration Average Team Size 25.1
    Negative Sentiment
    Neutral Sentiment
    Positive Sentiment
  • BSI
    47% JUST GIVE SOCIAL MEDIA A “TRY“ … AS A CAMPAIGN
  • BSI SOCIAL MEDIA COMMITMENT
    (Re)Integration
    Confusion
    Orientation
    Formation
    Planning Cycle (unaware):
    PlanningCylce (aware):
    Planning Cycle (aware):
    Planning Cycle (unaware):
    Evaluate
    Evaluate
    Evaluate
    Evaluate
    Education
    Education
    Education
    Education
    Measure
    Measure
    Measure
    Measure
    Research
    Research
    Research
    Research
    Manage
    Manage
    Manage
    Manage
    Strategy
    Strategy
    Strategy
    Strategy
    Implementation
    Implementation
    Implementation
    Implementation
    Planning
    Planning
    Planning
    Planning
  • BSI
    GIVING SOCIAL MEDIA A „TRY“ IS LIKE HAVING A ONE-NIGHT STAND WITH YOUR CUSTOMER
  • BSI
    91% ALLOCATE BUDGETS INCORRECTLY
  • BSI BUDGET ALLOCATION
    (Re)Integration
    Confusion
    Orientation
    Formation
    Evaluate
    Evaluate
    Evaluate
    Evaluate
    Education
    Education
    Education
    Education
    Measure
    Measure
    Measure
    Measure
    Research
    Research
    Research
    Research
    Manage
    Manage
    Manage
    Manage
    Strategy
    Strategy
    Strategy
    Strategy
    Implementation
    Implementation
    Implementation
    Implementation
    Planning
    Planning
    Planning
    Planning
  • BSI BUDGET ALLOCATION
    Soft Costs
    Social Media Team/ Staff
    180.000
    15.000
    Social Media Research and Development
    5.000
    70.000
    Training / Education Team and Moderators
    20.000
    External Moderation Team
    Customer-Facing Initiatives
    190.000
    Online Promotion Spend
    200.000
    Advertising Agency
    40.000
    Boutique Agencies
    10.000
    Advocate Programs
    5.000
    Offline Events
    Technology Investments
    Social Media Monitoring
    40.000
    129.000
    Community Plattforms
    25.000
    70.000
    Customer Technology Development
    8.000
    Social CRM/ Rewards
    Company in Formation Phase €0.8 Mio.
    Company in (Re) Integration Phase €1.93 Mio.
  • BSI BUDGET ALLOCATION / SOCIAL MEDIA VALUE
    Corporate Culture
    Platforms/ Technology
    Content
    SOCIAL MEDIA VALUE
    Advocates/ Userdata
  • BSI
    70% HAVE NO CLEAR SOCIAL MEDIA BUSINESS OBJECTIVES
  • BSI
    Return on Investment
    5
    Action
    Online, Offline Word-of-Mouth
    4
    Engagement
    3
    Postings, Comments, CheckIns, Likes, etc.
    Involvement
    2
    Fans, Followers, App. Usage, etc.
    Visibility
    1
    Clicks, Views,timespend on site, etc.
    Consumer Insights
  • BSI
    PROBLEM:
    ENGAGEMENT ≠ ACTION
  • BSI
    1:1:Many
  • BSI
    ONLY ONE OUT OF 50 SOCIAL MEDIA PROGRAMS SCALE
  • BSI
    COMPLAINTS ALWAYS SCALE!!!
    ADVOCACY DOES NOT!
  • BSI
    WHAT CAN YOU DO ABOUT IT?
  • Understand consumermotives
    Become relevant!
    Manage itright!
    Maketherightstart!
    Get CEO Support
    Reward
    Become relevant offline again
    Think aboutmeasuring
  • MOTIVES!
  • THE NET IS THE NEW CONSUMER PROPERTY!
  • SELF EXPRESSION AS STATUS SYMBOL!
  • VOYEURISM AS A
    METHOD TO UNDERSTAND
    THE SOCIAL RANKING
  • SHARING AS A WAY TO
    INCREASE PROPERTY
  • RELEVANCE!
  • DISRUPT SCHEMAS
  • APPROACHES?
  • BRANDED CONTENT/ ENTERTAINMENT?
  • CONSUMER PARTICIPATION – USER-GENERATED-CONTENT?
    Quelle: Brand Science Institute 2007: Brand Communities als Kundenbindungsstrategie effektiver als Bonuspunkteprogramme
  • USEFUL SERVICES?
  • CONSUMER PANELS?
    Quelle: Brand Science Institute 2007: Brand Communities als Kundenbindungsstrategie effektiver als Bonuspunkteprogramme
  • WHICH APPROACH IS MORE SUCCESSFUL?
  • BSI
    BRANDED CONTENT
    INTEGRATED CONTENT/EXPERT-PANELS
    12%
    38%
    19%
    CROWD-SOURCING
    31%
    USEFUL SERVICES
  • MANAGE!
  • SOCIAL MEDIA PROJECTS = INTERNAL START UPS
  • EARLY-AVAILBILITY OVER CORRECTNESS
  • Brand Communication
    CONSUMER INTEREST
    MEDIA
    Pre-launch
    Launch
    Post-Launch
  • Brand Communication
    MEDIA
    CONSUMER INTEREST
    Pre-launch
    Launch
    Post-Launch
  • START RIGHT!
  • EVERYBODY?
  • CONCENTRATE ON YOUR HIDDEN ADVOCATES!
  • LIGHT LOYAL:LUCY!
    Quelle: Brand Science Institute 2008: Exploring The Effects of Weak-Ties on Brand Community Performance
  • BSI
    Automotive
    Telecommunication
    Light-Loyals
    IDENTIFY YOUR LIGHT-LOYALS ONLINE AND OFFLINE
    Light-Loyals
    Packaged Consumer Goods
    Consumer Electronics
    Light-Loyals
    Light-Loyals
  • LET LUCY LOOK BETTER – SOCIAL ENHANCEMENT IS THE KEY!
  • BSI FACTORS DRIVING ADVOCACY
    FACTORS :
    EXCLUSIVENESS
    IMPACT
    MEANINGFULNESS
    SOCIAL ENHANCEMENT
    Meaningfulness
    INFORMATION VALUE
    Word-of-Mouth
    EXCLUSIVENESS
  • SUPPORT!
  • GET TOP-LEVEL SUPPORT!
    Quelle: Brand Science Institute 2008: The Influence of Corporate Culture on Long-Term Community Performance
  • …AND A SUPPORTIVE LEGAL DEPARTMENT!
  • …ooops!
  • BSI
    HIRE THE RIGHT PEOPLE TO MANAGE YOUR SOCIAL ENHANCEMENT INITIATIVES
  • REWARD!
  • REWARD ADVOCATES
  • OFFLINE!
  • TAKE CARE OF PARA-SOCIAL BEHAVIOR!
    ABER!
    Quelle: Brand Science Institute 2007: Social-Network Community Behavior: Effects on Para-Social Interaction and Impulse Buying
  • „A longwayhome…“
  • BECOME RELEVANT OFFLINE!!!
  • BSI
    DEFINE THE RIGHT KPI‘S!
  • ?
    BSI
    (pricepaid – directservicingcost) * prob. repeatbuying
    Return on Investment
    -
    CLV:
    acquisitioncost
    5
    1 + discount rate
    ?
    # Advocate Brand Interactions / Advocate
    Advocate Interactions:
    Total # Interactions
    4
    Action
    # AdvocateDrivenConversations
    Advocate Impact:
    Total # Brand Interactions
    ?
    # Posts + Comments + Shares + Trackbacks
    Engagement Rate:
    Total Views
    3
    Engagement
    # Positive/Neutral/Negative Brand Mentions
    Sentiment Ratio:
    # Total Brand Mentions
    Total People Involved / Social Media Channel
    AudienceReach:
    Total AudienceExposure
    ?
    2
    Involvement
    Brand Mentions/ Social Media Channel
    Share of Voice:
    ?
    Total Mentions (Brand + Competitors)
    1
    Visibility
  • BSI
    THE REINVENTION OF CONSUMER INTERACTION
    STARTS IN YOUR COMPANY!