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Delivering on the Promise: Five Ways to Drive Brand Effectiveness with Social Media

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Building successful brands hinges on applying social media insights at every stage of the brand lifecycle. This white paper outlines 5 ways to effectively employ social media to drive positive brand …

Building successful brands hinges on applying social media insights at every stage of the brand lifecycle. This white paper outlines 5 ways to effectively employ social media to drive positive brand equity and ultimately refine your strategy to create deeper, emotional engagement with your consumers.

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  • 1. DELIVERING ON THE PROMISE FIVE WAYS TO DRIVE BRAND EFFECTIVENESS WITH SOCIAL MEDIAWHITE PAPER
  • 2. DELIVERING ON THE PROMISEFIVE WAYS TO DRIVE BRAND EFFECTIVENESS WITH SOCIAL MEDIAWith 80% of American adult Internet users actively This new network paradigm means that companiesengaging with each other and brands online, the must be smarter than ever about how they engageimportance of social media is hard to overstate with consumers. The days when companies could(Figure 1). Malcolm Gladwell, bestselling author tightly control brand messaging and progressof The Tipping Point and Blink, describes today’s consumers along a linear purchase funnel havesocially networked world as the greatest paradigm ended. Consumer decisions and behaviors areshift since the rise of the Baby Boomers in the increasingly driven by the opinions, tastes and1970s. “What we have today,” Gladwell said at preferences of an exponentially larger, globalNielsen’s 2012 Consumer 360 conference, “is pool of friends, peers and influencers. Consumera set of people whose default proposition is Packaged Goods (CPG) marketers now sharenot the hierarchy, but the network. And what is control of the brand’s essence, image and voice.the network? It is people looking horizontally Brand objectives and success metrics need to berather than vertically for information. It is open, re-imagined. According to Forrester Research,not closed; flexible, not disciplined; and it is 92% of marketers believe that social media hasdecentralized, not centralized.” fundamentally changed how consumers engageFIGURE 1: HOW PEOPLE USE SOCIAL MEDIA TO ENGAGE WITH BRANDS: GLOBAL ADULT INTERNET USERS SOURCE: 2012 NIELSEN GLOBAL SURVEY 1
  • 3. NM INCITE WHITE PAPER | DELIVERING ON THE PROMISEwith brands and 93% believe that marketers need to reinventbrand building strategies to effectively engage with their “Consumers andconsumers.In these times of change, marketers and executives are grasping brands are co-evolvingfor familiar notions of Return On Investment (ROI) to bringorder and to make sense of the unfamiliar, uncharted and and moving at a veryseemingly uncertain world of social media. However, beforeasking the blanket question “What is the ROI of social media,” rapid pace. We needmarketers should first disaggregate social media’s impact acrossmarketing activities. Each social media use-case requires its own to learn faster andconsideration. For paid social media (e.g., ads on Facebook orTwitter), ROI is a meaningful metric. However, it is not as relevant really leverage ourfor other use-cases such as applying social media to generateinsights for new product ideation, segmentation or messaging. digital relationshipsThe risk of relying too heavily on ROI for all social media use-cases is missing significant opportunities to improve effectiveness with consumers. Socialacross the brand lifecycle. The focus on ROI can be balanced witha more practical question: “What can I do today to drive brand media plays a big role.”effectiveness using social media?” - Joan Lewis, P&GIMPROVING END-TO-END BRAND Lewis and others have articulated a compelling vision for socialLIFECYCLE EFFECTIVENESS WITH SOCIAL media in market research, recognizing its potential to buildMEDIA relevant and differentiated brands and strong emotional bondsBuilding successful brands hinges on applying social media with customers. Today’s most innovative CPG marketers realizeinsights at every stage of the brand lifecycle. According to P&G’s that social media insights can be used in new ways to informJoan Lewis (Global Consumer and Marketing Knowledge Officer), decision-making at every stage of the brand lifecycle, from initialFIGURE 2: ROLE OF SOCIAL MEDIA IN THE BRAND LIFECYCLE IDEATION LAUNCH IN MARKET • Understand and reach target segments* • Understand the role of social media • Recognize category and consumer • Plan and execute successful in the the Consumer Decision trends new product launches Journey • Identify unmet needs and white • Complement survey research’s • Measure emotional resonance space opportunities asking with social media’s listening* and differentiating attributes* MAY APPLY TO ALL STAGES IN THE BRAND LIFECYCLE 2
  • 4. trend spotting and ideation all the way to measuring FIGURE 4: SAMPLE BLOG POST AND TWEETS ABOUT CURLY HAIRongoing brand health (Figure 2). Naturallycurly.comThis approach is so powerful precisely becauseconsumers are expressing their opinions and preferencesfor their own ‘decision journeys.’ They write and readblog posts about emerging needs and desires unfulfilledby current products. They ask questions during the‘consideration’ phase and tweet about their post- Twitter.compurchase experience. Consumers are scattering digitalbreadcrumbs, highlighting their journeys, and marketershave a unique opportunity to connect these dots andboost brand effectiveness.FIVE WAYS TO DRIVE BRANDEFFECTIVENESS WITH SOCIAL MEDIAHow can you surface fresh, meaningful insights thatshape brand strategy and result in deeper consumerengagement? No matter what tools, processes, systems elated discussions, CPG marketers should tap into category- rand capabilities your organization possesses, there are five level conversations. As Figure 3 illustrates, there are overproven techniques for achieving maximum brand effectiveness 20 times more messages about general hair care than aboutwith social media: specific hair care brands. Analyzing unbranded conversations1. Broaden your scope beyond brands to categories and reveals unmet needs, provides fodder for new product segments. development and innovation, and helps marketers craft marketing messages that resonate with the authentic voice While it is important to manage and grow positive brand- of the customer.FIGURE 3: SOCIAL MEDIA MESSAGES ABOUT HAIR CARE (U.S.) t is also important to take advantage of the full panoply of I(JANUARY 2012 - JUNE 2012) social media sources. While Facebook and Twitter account for the lion’s share of social media messages, blogs and 2.3 MILLION boards often contain richer content laden with deeper insights. As an example, consider the hair care messages in Figure 4, culled from naturallycurly.com and Twitter. The implication is that each social media type has a unique 24x advantage depending on the marketing use-case. 2. Take segmentation to the next level. n today’s social world, marketers win by developing a I more intimate, nuanced understanding of the customer. Segmentation has never been more important and social 90,000 media can significantly enhance your approach. BRANDED NON-BRANDED There are two important considerations to keep in mind. 3
  • 5. NM INCITE WHITE PAPER | DELIVERING ON THE PROMISE he first consideration is whether you are using social to T f orums and other social networking sites. The questions here learn more about your existing segments or to uncover are more about identifying and understanding the value of your ‘organic’ ones. As consumers self-segment in social media most engaged fans. However, your online communities will (e.g., sophisticated city moms on urbanbaby.com), you are always represent just a fraction of the overall market. You still likely to discover consumer groups that represent untapped need to develop an in-depth understanding of what makes the opportunities for brand and product extensions. In the case broader category segments tick. of new or expecting moms, for example, you might find 3. Benchmark yourself relative to ‘expected’ outcomes. organic segments like “the sage,” “the nervous nelly” and “the fashionista.” You can identify each segment’s needs, quantify efining, measuring and tracking performance metrics for D the market opportunity and determine the right approach for social media is critical for activating your online communities. influencing each segment. Size, reach and level of engagement constitute a basic but critical starting set of social media metrics. The important The second consideration is related to your business context. point is not to dwell on absolute numbers (e.g., how many For businesses selling or marketing directly to consumers, Facebook fans do I have?). The real question is how many social media segmentation improves your ability to profile your Facebook fans or Twitter followers should you have? A brand best customers, determine what and when they are most likely will have an ‘expected’ level of social media performance given to purchase next, and find others like them. And while most its size, segments, customer satisfaction scores, ad spend and CPG companies do not sell directly to consumers, they still many other variables. Figure 5 illustrates how benchmarking have a vested interest in understanding their end consumers relative to expected outcomes provides true insight into brand and in activating their online communities on Facebook, Twitter, performance. In this example, there is a clear relationshipFIGURE 5: FACEBOOK FANS FOR MAJOR U.S. COSMETICS BRANDS ARE CLOSELY CORRELATED TO ADVERTISING SPEND 4.0 BRAND B - MORE FANS 3.5 THAN EXPECTED GIVEN AD SPEND FACEBOOK FANS (MILLIONS) 3.0 2.5 BRAND A - FEWER FANS 2.0 THAN EXPECTED GIVEN AD SPEND 1.5 1.0 0.5 0 0 50 100 150 200 250 300 350 400 450 2011 AD SPEND ($ MILLIONS) 4
  • 6. between advertising spend and Facebook fans for major that matter for your categories, brands and target customers. U.S. cosmetics brands. Evaluating actual to expected Marketers can rigorously track brand performance along performance, Brand A is significantly underperforming each emotional dimension using an emotional taxonomy. relative to its peers at that level of ad spend. Conversely, Brand B is able to generate outsized social media he taxonomy enables you to quickly determine where your T performance at a very low level of ad spend. brand is succeeding or struggling, identify and respond to competitive threats, and differentiate your brand in4. Create an emotional taxonomy. a crowded product landscape. An emotional taxonomy onsumers today have an abundance of product choices, C enables marketers to take the pulse of their brands and and increasingly, the lines of functional differentiation have their customers, and forge durable bonds. The emotional blurred (e.g., virtually all laundry detergents are colorfast, taxonomy illustrated in Figure 6, for example, would help so having a colorfast detergent is not going to set your brand marketers understand that Brand 3 excels at making apart in the mind of the consumer). Creating emotional consumers feel sexy, beautiful and luxurious, while Brand 1 engagement between your brands and your consumers has leads at making consumers feel healthy, clean and energized. become the key to success. According to former PG CEO 5. Tie social media to existing tools and processes. A. G. Lafley, “In an environment in which consumers and retailers have more choices than ever, the capability to build inally, remember that social media is, in large part, an F lasting bonds separates brands.” If emotional engagement is amplifier of other media channels and strategic initiatives. the key to success, then measuring the emotional resonance Be sure to integrate social media measurement and analysis of your brands is vital. The first step is to define the emotions into the tools you already use to manage your business. TheFIGURE 6: HAIR CARE EMOTIONAL TAXONOMY: HOW PEOPLE FEEL CLEAN SPORTY SEXY ENERGIZED CAREFREE CONFIDENT SOPHISTICATED LUXURIOUS BEAUTIFUL WHOLESOME PURE HEALTHY BRAND 1 BRAND 2 BRAND 3 BRAND 4 5
  • 7. NM INCITE WHITE PAPER | DELIVERING ON THE PROMISE emotional taxonomy described above is a perfect example. The synergy between social media and brand equity tracking Rather than create the taxonomy from scratch, design it is just one example; social media can and should also be tied as a complement to your existing brand equity tools. This to tools and processes used throughout the brand lifecycle. enables marketers to achieve real-time equity tracking, and Social media is a vital input and/or complement to new product brings immediacy and agility to what has historically been an innovation processes, media mix modeling and traditional annual or semi-annual evaluation process. Complementing survey research. traditional brand equity monitoring with a social media • • • taxonomy empowers marketers to understand what is driving changes in brand equity values and to react quickly Social media has become integral to the way consumers to risks and threats. Social media can also be used to refine engage with brands today. There is a clear imperative traditional brand equity studies. It can help marketers for CPG marketers to harness the power of social rewrite questions using the consumer vernacular, or build media insights at each stage of the brand lifecycle. The out additional emotionally relevant attributes uncovered approaches outlined in this white paper have been proven through social listening. out by innovative, global CPG marketers. The time is right for applying social media to achieve brand success in today’s social world. About NM Incite Global Fortune 1000 marketers rely on NM Incite solutions to discover emerging, industry-specific consumer insights and build relevant, differentiated and emotionally engaging brands. NM Incite customers are innovative, global marketing executives in brand management, consumer insights and market research at leading Consumer Packaged Goods, Financial Services, Healthcare and Technology companies. They understand that winning in today’s social world hinges on developing deeper and more provocative consumer and market insights to create superior marketing strategies, boost brand strength, develop new products, innovate in customer care and maximize the impact of marketing campaigns. NM Incite is a joint venture between Nielsen and McKinsey Company, bringing to bear deep expertise in measurement science and management consulting. As one of the largest global leaders in applying social media to solve marketing problems, NM Incite operates in over 30 markets, including the United States, Canada, United Kingdom, Germany, China, India, Japan and Australia. 6
  • 8. CORPORATE HEADQUARTERS770 BroadwayNew York, NY 10003-9595United States855.888.6904nmincite.comCOPYRIGHT © NM INCITE

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