The BrainYard Webcast - Social Business & Social Analytics - 3/1/12

Social Analytics - Putting theScience into Social BusinessAn InformationWeek & The BrainYard Webcast Sponsored by

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Todays Featured Presenter Webcast is here: http://w.on24.com/r.htm?e=272891&s=1&k=8EB9C4CBEB1C376A942A644887F45994&partnerref=IBM10 Mark Heid Program Director Social Analytics at IBM

Marketing’s Challenges…and Opportunities Years to reach Tablet § Channels proliferate… 50M users: 2 Yrs § The Internet evolves… Facebook 3 Yrs Internet § The consumer is in control… 4 Yrs Network of pages Network of people TV § The rate of change accelerates… 13 Yrs Marketing’s role must evolve…6 © 2011 IBM Corporation

Expanding marketing’s role, and contribution to the business + Transformative CMO Traditional CMO Agenda: + Understand the customer in real time, across the business Agenda: + Anticipate customer needs ü Understand the market and + Drive consistent, compelling interactions the customer across all channels ü Build awareness and demand + Steward the customer experience across ü Steward the company’s brand all touch points ü Drive brand strategy and + Monitor and harness customer evangelism execution + Accountable for business outcomes and7 return on investment © 2011 IBM Corporation

The vast majority of CMOs are underprepared to manage the impact of key changes in the marketing arena Underpreparedness Percent of CMOs reporting underpreparedness 50% Data explosion 71% Social media 68% Growth of channel and device choices 65% Shifting consumer demographics 63% Financial constraints 59% Decreasing brand loyalty 57% Growth market opportunities 56% ROI accountability 56% Customer collaboration and influence 56% Privacy considerations 55% Global outsourcing 54% Regulatory considerations 50% Corporate transparency 47% Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n=149 to 1141 (n = number of respondents who selected the factor as important)8 © 2011 IBM Corporation

Customers are the New Intellectual Property (Keep the promise) Customer Intimacy Decision Management Product Operational Leadership Excellence (Make the promise) (Deliver the promise)9 © 2011 IBM Corporation

We are seeing unprecedented upheaval in the consumer buying process In the past….there was a funnel • Many Brands - Consumers start buying process with a large number of brands in mind • Fewer Brands: These choices are narrowed down to a few • Final Choice: A decision is made between the few • Buy: A purchase is made… • Post Purchase: Consumers’ relationship with the brand is focused on the use of the product or service Today’s consumer buying process is far more dynamic and interactive…..10 * David C. Edelman, McKinsey, Dec 2010 © 2011 IBM Corporation

Increasingly, customer acquisition is more nuanced. Generating loyalty is the new marketing imperative Social Analytics is the key to success in Gain insights and increase positive this new environment sentiment in social conversations Accelerate re-purchase through propensity models Strengthen brand preference through advocacy11 * David C. Edelman, McKinsey, Dec 2010 © 2011 IBM Corporation

Knowing the customer… involves creating a complete picture • Gender / Age Target • Geography Demographics Audience • Income • Channel • Contact Time Preferences • Value Buyer • Visit Frequency • Purchases Behaviors Jane Cogswell • Lifecycle stage Demographic Profile • Financial Planner • Single • Hobbies • 28 years old • Family Interests • Located in Boston, MA • Lifestyle13 © 2011 IBM Corporation

Social attributes will improve understanding and results Typical audience targeting: Social media informs interest, brand demographics disposition, likes/dislikes Mom WifeAccountant Golfer14 © 2011 IBM Corporation

Pulling together the whole scenario Cookie=24601 Rinse and Email =jane@brainyjanie.com Regular web site browser Email and cookie are Repeat Cookie =24601 Recently looked at green widgets tied together Open rate: 73% Comes to the web site and gets a cookie, Click-through rate: 5% @BrainyJanie browses, but does not buy Tweets sneak preview link, opened by 25 Later receives an email with a friends personal URL, and clicks through to the web site. Connections made between: § Cookie and Email Jane gets an email invitation to § House Hold and Cookie attend a sneak Jane makes a purchase and § Email and House Hold preview of Green enters her email for the Widget 2.0 and confirmation and address she can invite her for shipping friends via Facebook ID Twitter. And cookie tied together? Jane, loves her product Jane, tweets so much she becomes a about fan on The Facebook. #GreenWidget Channel ID @BrainyJanie Cookie 24601 Following 53 Email jane@brainy.com Followed by 152 Direct Jane Cogswell Facebook ID=01810 210 Facebook friends Facebook 01810 Born in Houston, TX Twitter BrainyJanie Twitter handle appended Gadget’s Galore Fan15 through third party © 2011 IBM Corporation

Monetizing Social Media Execute at the individual level by mapping aggregate insights to 1:1 social media profiles Surveys, Focus Capture, Analyse Optimize Cross groups & Model Channel, Integrated Retailer POS Campaigns Extract trends Data E-Commerce Marketing Campaigns PR Activities Web Browsing Merchandising Mix Expose patterns Category Management Sales Contact Center Social Media Discover relationships Map Aggregate Models to 1:1 User Profiles17 © 2011 IBM Corporation

Social Media Improves Traditional Predictive Analytics High-value, dynamic approach - source of competitive differentiation Interaction data Attitudinal data - E-Mail / chat transcripts -Market Research - Call center notes -Social Media - Web Click-streams - In person dialogues 360 degree Customer View Descriptive data Behavioral data - Attributes - Orders - Characteristics - Transactions - Self-declared info - Payment history - (Geo)demographics - Usage history18 “Traditional approach” © 2011 IBM Corporation

…..and more accurately answers “Why?” High-value, dynamic - source of competitive differentiation Interaction data Attitudinal data - E-Mail / chat transcripts - Opinions How? - Call center notes - Web Click-streams Why? - Preferences - Needs & Desires - In person dialogues 360 degree Customer View Descriptive data Behavioral data - Attributes - Orders - Characteristics - Transactions Who? - Self-declared info - (Geo)demographics What? - Payment history - Usage history “Traditional”19 © 2011 IBM Corporation

Drill-Down: Web Analytics and Predictive Analytics With web analytics data alone, we get some insight into web metrics that are important in predicting item sales on an ecommerce website.20 © 2011 IBM Corporation

Drill-Down: Web Analytics, Social Media and Predictive Analytics With web analytics and Cognos Consumer Insight data, we get new insights into other factors that may be important in predicting item sales, such as conversations around “modern” designs. Key Social Media Insight: Messaging “modern” really matters. This wasn’t picked-up with traditional predictive analytics21 © 2011 IBM Corporation

Real-world Example: Predicting Advocacy Online bloggers are clustered using the segmentation model ACTION Antagonist Social Advocate Advocates: Scored population that is x% x% regularly active on a high number ofDETRACTION/DISAGREEMENT Personal brand concepts Skeptic Believer ADVOCACY/AGREEMENT x% x% Uncertain Believers: Scored population that is x% either overall less active or only active Doubtful on a single or small group of concepts Consumer x% x% Detractor Supporter Uncertain: The majority of posters x% x% * SEGMENTS REPRESENTATIVE “casually” discuss the product. INACTION A predictive model uses posting patterns to identify the propensity of a blogger to be moved into a more positive participation segment 93 (1.84%) 339 (6.72%) 5 (0.1%) 259 (5.13%) 353 (7.0%) 97 (1.92%) 152 (3%) 471 (9.34%) 4599 (91.16%) 74 (1.47%) 0 (0%) 4315 (85.3%) Current State Predicted Movement Future State © 2011 IBM Corporation

Earned Media Delivered through a third party without exchange of payment. Traditional Digital § Public relations • Twitter social generated news media • Blogs PR § Analyst coverage • Product reviews word of mouth27 © 2011 IBM Corporation

Owned Media Media, content, and channels that the company directly delivers, has control over, or owns. Traditional Digital Includes DIRECT MAIL POS CALL CENTER WEB SITE EMAIL off domain digital outposts ATM BRANCH KIOSK MICROSITES FAN PAGES28 © 2011 IBM Corporation

Looking ahead – The future must be intelligent marketing that understands the interrelations of all channels and media e Owned media PR Paid Customer Earned Ads media media Google Google30 © 2011 IBM Corporation

1. CaptureSocialSources FORUMS/ MICROBLOGS VIDEO SHARING SOCIAL WIKIS PHOTO S SOCIAL MEDIA BLOGS NEWSGROUPS NETWORKS HARING NEWS (Publicly available) 100+ million 120+ million AGGREGATORS Consumer Insight Social “Earned” media feeds “owned” media outposts Social referrals and downstream conversations Social Email Analytics Links from emails and websites that are shared, liked, and commented on32 © 2011 IBM Corporation

2a. Monitor and Analyze “Earned” Media Social Media Analytics with CCI Social Media Analytics Consumer Insight Analyze “earned” social media, identify brand sentiment, emerging topics33 © 2011 IBM Corporation

2c. Monitor and Analyze Social Email Analytics with Unica Social Media Analytics Social Email Analytics Analytics for email and web links that are shared, liked, and commented on35 © 2011 IBM Corporation

2d. Monitor and Analyze Predictive Social Analytics with SPSS Social Media Analytics Predictive Social Analytics Social segmentation Predict behavior based on social attributes36 © 2011 IBM Corporation

3b. Act and Engage Social Media Customer Experience Suite Business Execution Social Media Business Execution Social commerce, branded communities, social widgets, product ratings, and more… Social Media Business Execution38 © 2011 IBM Corporation

Q&A Session Mark Heid Program Director Social Analytics at IBM

Thank you for attending! To View This or Other Events On-Demand Please Visit: http://informationweek.com/events/past For more information please visit: www.ibm.com/social

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The BrainYard Webcast - Social Business & Social Analytics - 3/1/12

by Mark Heid on Mar 19, 2012

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