A Practical Guide To Marketing & Making Money Through Social Media: Dell Case Study


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A Practical Guide To Marketing & Making Money Through Social Media: Dell Case Study. Presented at SES Hong Kong in September 2011.

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A Practical Guide To Marketing & Making Money Through Social Media: Dell Case Study

  1. 1. A Practical Guide To Marketing & Making Money Through Social Media: Dell Case Study 21st September 2011 Damien Cummings Online & Social Media Director
  2. 2. About Dell CSMB Online & Social Media
  3. 3. We revolutionized the industry once, and we’ll do it again First to sell complex configurable items First company to hit $1M a day in online revenue One of the first to launch online discussion forums One of the first companies to launch online support CSMB Online & Social Media
  4. 4. Dell Online Today 725K B2B transactions per year Online: Dell.com + Premier + Global Portal + B2B + Channel Portal + eSupport + Community Googled 1M times per day 1B visits per year to Dell.com via eSupport per day Channel partners online 166 countries $10B 190k Premier pages supported 170M visits to community properties 150M online resolutions 58K 34 languages online revenue 13B page views in FY’09 An online order is placed every 2 seconds CSMB Online & Social Media
  5. 5. Dell’s Social Media and Community Journey 5 CSMB Online & Social Media
  6. 6. Power of a Social Brand More than ever – a company’s brand is influenced by what consumers are saying about the brand 25% of search results for the world’s top 20 largest brands are links to usergenerated content (Socialnomics, ’09) 6 Confidential Visitors to Facebook and Twitter spend more money on the Web than other Internet users (eMarketer, June 2010) People more likely to buy from brands they follow (51% more likely to buy following brands on Facebook. 67% Twitter) (iModerate research) A negative customer review on YouTube, Twitter or Facebook can cost a company about 30 customers (Convergys Corp.) CSMB Online & Social Media
  7. 7. Dell’s Vision of Social Media 1. The future of Dell. 2. Solid strategy is in place, grounded in business and customer value drivers. 3. Benefits are real, tangible and will strengthen insights in coming years. 7 Confidential CSMB Online & Social Media
  8. 8. Dell’s Social Media Heritage Industry Evolution1 Consumer SMB LE Social Relationships Social Functionality Users interact in new ways online Early Adopter Social Colonization Users find each other online Public Social not limited to “social sites” Blogosphere Outreach Decreased ability to respond due to resourcing Social Network Platforms 1.3M Followers on Twitter today; $6.5M revenue Global Offsite Properties Strong brands, but nearly 90% YoY traffic decline Premier, Health Storms launched 2K ideas in first 2 weeks IdeaStorm Recent implemented ideas include backlit keyboards, Linux OS Shown to improve conversion by as much as 176% Ratings & Reviews Moved to segmentspecific blogs Blogs 7 core blogs, 100+ contributors, 4-5 posts/week 10K+ ‘accepted solutions’ Forums 2006 1995 8 1 Forrester, “Future of Social Web” 2007 2008 2009 2010 CSMB Online & Social Media * Data as of October 2009
  9. 9. Global Reach (As of Jan 2010) Global reach is good, globalization strategy needs to be focused and more thoughtfully executed Online & Social Media CSMB
  10. 10. Dell’s Social Media Marketing & Commercial Strategy 10 CSMB Online & Social Media
  11. 11. 1 Content & Listening: SNS Blogs & Twitter Best Practice: 5 11 2 Build Fans & Followers Through Social Networks Best Practice: 3 4 Dell.com Dell Swarm Online Video & Viral Marketing: New Product Launch & Key Brand Campaigns Social Commerce: Including Dell.com Improvements & Dell Swarm Group Buying Best Practice: Best Practice: Social Media Training for all Employees 5 Steps To Social Media LeadershipOnline & Social Media CSMB
  12. 12. Listening To Customers CSMB Online & Social Media
  13. 13. Social Media Listening Command Centre • • Using Radian6 (but considering other technology platforms). • 13 First Centre in Austin, Texas Monitoring 25,000 daily conversations. CSMB Online & Social Media
  14. 14. Example: “Gorilla Glass” on Dell Streak 5 Dell Streak “gorilla glass” The “gorilla glass” on Dell Streak tablet phone is breaking CSMB Online & Social Media
  15. 15. How the SMLCC Responds: Product Group SMLCC Work with vendor for appropriate solution. Consider for future design Business Analysts Customer Care Monitor volume, reach & sentiment Handle any customer escalations to repair / replace Online Listeners Hears customer complaints: “gorilla glass on Streak breaks!” Community Manager Develop & publish appropriate response / content on social sites Adjust online content / merchandising Manage Dell Community forum discussions SMLCC Director Coordinates action plan within SMLCC & other Dell teams Marketing Revise any relevant copy in marcom Social Commerce Manager Minimize impact on social commerce Sales Aware with at-ready talking points Corp Comm / Public Relations Manage any media exposure CSMB Online & Social Media
  16. 16. Building Fans, Followers, Likes, Connections, etc. CSMB Online & Social Media
  17. 17. What is the value of a Fan? - Spend an additional $71.84 - Fans are 28% more likely to continue to use Dell - Fans are 41% more likely to recommend Dell Source: Syncapse Value of Facebook Fan research Global CSMB Social Media
  18. 18. 4 Ways to Build Fans, Likes & Connections • Paid Advertising contributes up to 75% of your Fan/Like acquisition (Facebook). Paid Advertising (up to 75%) • Around US$1.10 per Fan acquisition. • Relevant content, incentives and CSR keeps Fans, Followers, Connections engaged. • Acquisition changes depending on the number of existing Fans, Followers Connections (early stage vs. category leader: 1 million+). 18 Relevant Content Incentives Corporate Social Responsibility Global CSMB Social Media
  19. 19. Online Video CSMB Online & Social Media
  20. 20. Video: User Generated vs Agency Produced 295,217 views 20 7,429 views CSMB Online & Social Media
  21. 21. Social Commerce CSMB Online & Social Media
  22. 22. Social Commerce: Group Buying via the Dell Swarm brand CSMB Online & Social Media
  23. 23. Dell Swarm Platform Positioning Dell Swarm Dell.com Group Buy Focus: S&P and End-of-life Premium, New and Full Range of Products • • • • Large discount expectation Social, WOM and Buzz generation Upsell/traffic drive to Dell.com Purchase, Delivery and Help all leverage Dell.com platform Customisation & everything you’d expect of Dell.com CSMB Online & Social Media
  24. 24. Dell Swarm in Australia Success due to a number of factors: - Business Partners able to offer steep discounts - Affiliate Marketing partners - Growing WOM (now 50% of traffic), +19% more likely to Buy than average - Simplified Discount approach (modeled on Groupon) 1hr 11min Sold Out 10hr 5min Sold Out 2hr 23min Sold Out 33min Sold Out 22min Sold Out 19hrs 12min Sold Out CSMB Online & Social Media
  25. 25. Next Steps for Dell Swarm Geo Expansion Partnerships Mobile & Social Integration Now: - Singapore & Malaysia, Australia & UK. Coming Soon: - The World! 25 CSMB Online & Social Media
  26. 26. Twitter: @DellOutlet 1,570,397 followers $5m+ revenue CSMB Online & Social Media
  27. 27. Training: Unleashing Your Team As Social Media Advocates CSMB Online & Social Media
  28. 28. 1. Social Transformation Training all of Dell’s 100,000 employees in social media. Social Media policy in place. 2. Robust training program in place: • Getting Started in Social Media • Brand Mgmt in Social Media • Twitter • Facebook • LinkedIn • RenRen & Sina (China) • Blogging & Community • Internal Social Media 3. 9,000 employees already trained. 4. Will fundamentally transform Dell. CSMB Online & Social Media
  29. 29. Dell’s Five Social Media Principles 1. Protect Information 2. Be Transparent and Disclose 4. Be Responsible 3. Follow the Law, Follow the Code of Conduct 5. Be Nice, Have Fun and Connect CSMB Online & Social Media
  30. 30. SMaC U Training & Certification Training and Certification Personal SMaC Enthusiast SMaC Professional SMaC Spokesperson • SMaC U Certification is required for any team member using Social Media on behalf of Dell beyond their personal social media platforms Team Member Roles fan "Fan" Social Media use Team member uses personal SM platforms (facebook, flickr) only for personal use "Cheerleader" cheerleader player "Player" Team member that uses personal Team member responds directly to SM platforms and will occasionally customer needs, engaged in support Dell initiatives on personal conversations and/ or owns a social pages media group on behalf of Dell broadcaster "Sports Broadcaster" Team member certified to speak on behalf of Dell with the media Code of Conduct and Other Dell Corporate Policies SMaC U Basic Required Training N/A MKTG2002 SMaC Principles MKTG2002 SMaC Principles, MKTG2003 Get Started SMaCing and MKTG2005 Building Brand on SMaC Select one or more based on the tools you plan to use MKTG2006 Building Relationships on Facebook, MKTG2007 Building Relationships on Twitter, MKTG2008 Buildinig Relationships on Community, (TBD) Building Relationships on LinkedIn (New Classes added as needed) Platform Specific Classes Media Training YES Team member certification Hours required Audience handles 30 Confidential 6- 7 Minimum sassysarah sassysarah 7- 8 Minimum SarahatDell SarahatDell CSMB Online & Social Media
  31. 31. Questions? Want a job? Damien Cummings Online & Social Media Director Dell Singapore Talent Acquisition damien_cummings@dell.com ta_sg@dell.com @damiencummings www.dell.com/careers/singapore http://sg.linkedin.com/in/damiencummings www.linkedin.com/company/dell http://damiencummings.blogspot.com www.dell2direct.com CSMB Online & Social Media