CRM in the SOCIAL AGE
How OgilvyOne helps clients connect with customers
Brian Jensen, Head of Experience Planning
OgilvyOne, London
29 September 2009
Good afternoon.
My name is Brian Jensen and I head up the experience planning practice at OgilvyOne here in London.
I’ve been asked to frame today’s conference with two goals in mind:
1. creating an understanding of how social media is changing our marketing reality and;
2. introduce four areas of practice that OgilvyOne has developed to help our clients connect and create stronger relationships with their customers in social media, these four practices will then be expanded upon by this afternoon’s
experts.

2000s...so far
1. Newspapers
2. Magazines
3. Email
4. Broadcast TV
5. Radio
Platforms have 6.
7.
CD Player
Cable TV
exploded
8. Personal computer
9. Satellite Television
10. Internet
11. Cell Phone
12. DVD players
13. Satellite Radio
14. MP3 players
15. Tivo/DVR
16. Slingbox
17. Ipod
1980s 18. Blogs
1. Newspapers 19. Online video
2. Magazines 20. Mobile Internet
3. Cable TV 21. Console Video Games
4. Broadcast TV 22. PC Video Games
5. Radio 23. MMORP games
6. Cassette Tapes 24. Mobile Games
1960s 7. Walkman 25. Text Messaging
1 Newspapers 8. VCR 26. Mobile Video
2 Broadcast TV 9. Cable TV 27. Download movies
3 Magazines 10. Personal Computer 28. Podcasts
4 Broadcast radio 11. Console Video Games 29. Instant Messaging
5 Eight Track 12. PC Video Games 30. Social Networks
First we start with the obvious:
The Internet has accelerated the explosion of media providing many more media options in an abundant, increasingly technology-led landscape. 50% of today’s media is already digital, 80% will be by 2020.
This trends is mirrored in direct marketing channels as well and 70% marketers are shifting investments in marketing effectiveness form traditional to digital channels. (EMarkter.com Jun 09)

Connecting online, people
contribute, create, collaborate
as never before
With more than 1.5BN people online spending on avg 2 hours a day people are connecting, contributing, creating and collaborating as never before. And mobile internet will likely double the number of people connecting in digital media in
the three years.
(eConsultancy Internet Stats Compendium 2009)

People expect
two-way
dialogue with brands
And they’re not only engaging in dialogue with each other, but expect to be able to connect to all aspects of their lives, including the products and services they buy. According to a Cone Business in Social Media study conducted in Sept of
last year, ‘85% of social media users believe that a company should go further than just having a presence in social media and should interact with its customers.’ Unfortunately, most companies in the UK will spend less than £5K in social
media in 2009’
(eConsultancy / Guava UK SEM Benchmark Report, April 2009)

People trust
each other
more than brands
People trust each other, and their opinions, more than brand communications. LaSandra Brill, Social Media Marketing manager at Cisco, figures that a 1% increase in word-of-mouth generates $16M extra sales, but a 1% reduction in word-
of-mouth puts $49M in sales at risk. (http://lasandrabrill.blogspot.com/)

There is a lot of competition on the
digital shelf
As choice overload continues people increasingly turn to the digital to help make purchase decisions on everything from travel to make up to law firms to cars, technology, university degrees and more.
According to Forrester 81% of people online use reviews in their purchase decisions. The explosive growth of review sites and aggregators like Kelkoo, Which, Tripadvisor or Bazaarvoice means that people have access to the opinions and
experiences of your existing customers. Tripadvisor alone has more than 25M reviews on over 490,000 hotels and attractions. In what is one of the most important trends we’ve seen in the last 12 months the competition for the digital shelf
is revolutionizing how we market products and services. As Trendwatching.com has declared, Reviewing is the new advertising.
And we need to be less afraid of hearing, sharing and activating our customer’s feedback. Bazaarvoice reports that 88% of UK consumers who rated products or services gave 4 out of 5 stars and that once you have a volume of feedback,
misleading or unhelpful feedback is weeded out or countered by what Ross Mayfield calls the ‘phantom authority’ of the group.
(Trendwatching, Transparency Triumph, Sept 2009)

People increasingly turn to digital for
customer service
It’s not just purchase decisions that people are turning to digital for – they are increasingly turning to it when they have a customer service issue or complaint
According to the results of a survey by travel firms Thomson and First Choice, just 3% of people think organisations listen to them enough while 36% are adamant that they are never listened to at all, despite the supposed increase in
spending on customer feedback technologies to enable organisations to hear what their customers are saying.
To counter this many companies are proactively seeking customer opinions on service, Boots and Asda are using till receipts to direct customers online to give feedback on tellasda.com. (http://www.mycustomer.com/topic/customer-intelligence/customer-
feedback-they-dont-listen-or-we-dont-complain-enough

we’re living in
the social age
There’s no denying we live in a social age, and social media (the platforms which encourage and facilitate people connecting, creating, collaborating and critiquing) is impacting how and where we build relationships with our customers.
Social media continues to grow, and the fact that we are in a recession hasn’t changed that.
It’s worth remembering that social media, far from being a single channel, is a wide mix of activities and technologies:

Blogs:
Personal web journals
From the over 133M Blogs worldwide on everything from technology to child development (1.5M of which were updated in the last 5 days) (EConsultancy)

Peer 2 Peer:
File sharing
To filesharing (legal filesharing) on things like BitTorrent in which people share and distribute files on different networks and computers. P2P file sharing still comprises between 43 to 70 percent of Internet traffic varying by region
but is giving way to streaming and filehosting sites
(http://www.itworld.com/internet/62869/study-other-network-traffic-surpassing-p2p-growth)

Wiki:
A collaborative
authoring tool
To collaborative tools like Wikipedia, now holding over 13M articles
(eConsultancy Internet Stats Compendium 2009)

Open source:
Collaborative
program
development
To open source that makes collaborating on software and applications possible

Tagging: A social
bookmarking tool
To bookmarking tools like Digg or Delicious that help us share, organize and access our favourite content

Consumer Review:
Reviews usually rated
by community
To the aforementioned review sites and aggregators like Tripadvisor or CNET, or, my favourite, Connossr (a whisky review website)

Social Network: Sites
connecting people with
similar interests and
experiences
To social networks like the enormous networks Facebook or China’s Qzone to niche or interest led smaller networks like travel’s Dopplr or Dogster and Catster for petowners

Virtual Universe:
immersive, simulated
environments
To virtual universes like Second Life or Habbo that are being revolutionized by moving from text-based to voice-based interactions.

Mobile making real-
time, real world and
virtual collide.
Most of which are accessible on mobile phones making real-time, real-world interaction possible.
And just to be sure we’re clear about the size of the opportunity, let’s look at a few of the numbers

2/3 of the global Internet population visit
social networks
According to Nielsen, 2/3 of the global internet population visit social networks making visiting social sites the 4th most popular online activity -- ahead of personal email and is now growing at 3x the overall internet rate accounting for
~10% of all internet time.
Image: http://www.ivcmedia.co.uk/flash/resources/world-map.png

100,000,000 YouTube
videos are viewed
every day
Over 100M YouTube videos globally are viewed everyday. 3M views alone for this little lady, who went from unlikely star of a Saturday night teatime show to a global phenomenon.
In the UK alone, in the month of Aug there were over 21.8M unique visits with the average visitor coming more than 10x that month (and spending about 17 minutes watching.) (Comscore, Top 100 UK sites, Sept 09)
YouTube, by some accounts, is now the second most popular search engine behind Google.

20% of messages sent on
Twitter are about
brands
The growth of Twitter in the last year is astounding as people take advantage of microblogging not only to tell what they’re up to but to share information, data and resources at an astounding volume: there are an average of 3M tweets per
day on Twitter.
A Univ. of Penn study found that on average 20% of Tweets sent mention brands –people asking for or receiving information about products of services. Representing an opportunity for us to engage with prospective, existing and advocate
customers. (Social media today, 09/14)
Porter Gale, VP for marketing at Virgin America, is using social media not only as a listening tool but as a complete engagement channel. Their Twitter feed has more than 20K followers, a vocal community interacting in ‘twitter time’
meaning that the clients don’t need to respond to every post. But when they respond, it can be very powerful in driving loyalty. Durcing one flight, a woman who just graduated medical shool had tweeted about her excitement at graduating
and also flying Virgin America. Rather than simply saying congratulations, Porter and her team retweeted and asked someone to buy her a drink on the flight. To her surprise there was an immediate response and row 11 bought the
graduate that drink. That’s a MOT that’s hard to buy. (Brian Solis, Real-Time Conversations Hasten Social CRM, Jul 09, TechCrunch)

If it were a country, Facebook would have the
fourth largest population
behind China, India and the US
Facebook just announced they’ve passed the 300M registered users mark, meaning that if it were a country it would be the 4th largest ahead of Indonesia or Brazil. People are spending 5B minutes a day and an estimated 1.5M pieces of
content/information/updates/links are shared daily.
In August alone there were 26M unique visits visiting an average 26.7 times that month. (Comscore, Top 100 UK sites, Sept 09)

OgilvyOne on
Social Media
Big numbers and a lot of opportunity in social media, but we believe it’s core to marketing strategies because it allows us to

Listening to, engaging with consumers and
influencers on platforms which encourage
AUTHENTIC CONVERSATIONS
Listen to, engage with consumers and the people who influence their decisions on platforms which encourage authentic conversations.
Conversations in which we can learn a lot about your consumers. Conversations in which we can participate with your consumers. Conversations in which we can grow the value of your relationships.

Meanwhile, digital is (r)evolutionising
CRM
Meanwhile, digital has been quietly (r)evolutionizing CRM.

In 2008, the worldwide CRM market
grew 12.5%
While a lot of people had written off CRM. The CRM market is still growing. 12.5% in 2008, according to Gartner and despite the financial market volatility. Investments in CRM technologies which enhance productivity, insight into customer
behaviours and drive online sales and support activities are expected to continue growing.

16% of the CRM market comes from
D+E markets
The most impressive growth coming from D&E markets where we suspect that CRM might follow mobile technology in leapfrogging Developed markets because there is less reliance on legacy proprietary systems.

The trend dominating the agenda of CRM
professionals?
The necessity to adapt to the rapidly
changing ‘social’ consumer. Forrester
And what is the trend dominating the agenda of CRM professionals according to Forrester?
The necessity to adapt to the rapidly changing ‘social’ consumer. To understand how evolving social media behaviour is changing what we can learn about our customers and how we service them.

Creating more flexible
CRM models
Open Data Cost
Why? Because it’s creating more nimble CRM models in which systems are open source and less reliant on proprietary data and where automation of data and the number of channels we can conduct CRM means we can drive lower cost
of contact

Making CRM
easier to deliver
1:1 1:many 1:1:many
It’s made CRM easier to deliver in every channel from 1:1 channels like DM and email, to 1:many channels like your websites or social networks like Facebook or Orkut where we can serve up targeted, personalised engagement. to
1:1:many influencers channels where loyalty messages are shared with communities of prospective / existing customers.

Making CRM
happen in real-time
Mobile Location-based
It means that CRM can happen in real-time through mobile and location-based technologies that serve up relationship-building engagement and conversation when it matters most.

OgilvyOne on
CRM
So we believe CRM deserves a fresh look because the social age means that...

Managing profitable
CUSTOMER ENGAGEMENT
to drive customer and business value
Managing customer engagement to drive business and customer value is more important (and possible) than ever. We do this:

Focus on value
Brand value exchange
An obsession with data
Needs/engagement drivers
Test, learn, apply in realtime
A clear focus on where value lies
A mutually beneficiable exchange of brand value
An obsession with data
A holistic approach and view of the relationship
Constantly testing, learning and applying in realtime

Awareness
Consideration
Preference
Purchase
Loyalty
CRM
Advocacy
This impacts the role of CRM in your marketing strategy.
In reality, because of cost and data that was driving systems, CRM was most often applied to the post-purchase relationship when we were better able to collect and act on knowledge of our customers. It was used to largely for loyalty: to
grow value of existing relationships (be that through spend or uptrading) or to reduce defection.
Although designed to help drive conversion through the entire marketing cycle, It wasn’t as efficient to use pre-purchase in converting more leads to customers.
In short, it had limited application to what was a largely linear process.

Awareness
Long listing
Consideration
Re-listing Preference Short listing
Researching /
Purchase
engaging
Loyalty
Advocacy
But the reality of ecommerce and things like social shopping brought immense change in how people short list, research and engage with products and services. It was no longer linear activity that could be driven by a shift from 1:many to
1:1 channels.
It complicated all of that. It also gave us the opportunity to advantage of the insight we have into what triggers and influences consideration and purchase actions and grow greater loyalty and value from it.

Awareness
the social age
Consideration
CRM in
Preference
Purchase
Loyalty
Advocacy
CRM in the social age becomes advantageous across the whole of marketing activity.

Conversations
Awareness
Earned
the social age
Consideration
Brand value
CRM in
Preference
exchange Purchase
Loyalty
Dialogue
Advocacy
It benefits from conversations prospective customers have
From WOM or earned media that provide new cost-effective and impactful reach
Brand value exchange: engagements that have meaning and value for our customer
From more platforms and opportunities for authentic conversations or dialogue.

CRM in the Social Age
Building relationships much earlier in the traditional
marketing cycle based on real-time value exchange
with individuals and communities, converting more
prospects to leads, more leads to customers.
We believe that CRM is social age means building relationships much earlier in the traditional marketing cycle based on real-time value exchange with individuals and communities, converting more prospects to leads, more leads to
customers.
To help our clients get the most from CRM in social media we are developing four key practices:

CRM in the Social Age
Listening Participating
for insights from conversations that with customers in
drive engagement and propositions authentic conversations
Activating Engaging
influence in and outside of communities with brand value exchange
your customer set wherever they gather
Four big practices making the most of CRM in the Social Age. Each of which will now be brought to life by experts in social media.

Listening
Mining insights from conversations that drive
engagement and propositions
Volume Sentiment Language Emerging
Listening to social media with conversation scanning and analyzing tools that mine powerful insights to drive engagement and propositions, analysing the volume and sentiment of their conversation,
but also gaining insights into the language they're using to form and articulate their needs
and the emerging trends / habits / desires that we can use to engage them.

Listening for British Airways: Using social media to
mine insights for loyalty communications
it's something we use for BA to drive insights into their loyalty communications

Participating
With customers in
authentic conversations
Existing Inviting Servicing
Helping our clients to participate in authentic conversations with their customers.
Entering personal, sacred conversations that customers are already having.
Inviting our customers to dialogue with us and shape their relationship and the value they get from it.
And improving the speed and success rates of servicing their problems and issues.

Participating: IBM’s voice of the business partner
programme
IBM’s voice of the business partner programme invited their customers to a conversation about what they were looking for in a technical vendor. 10% of those surveyed participated (Case study: Paul Beck, Ogilvy New York)

Activating
influence in and out of
your customer set
Activating the most influential people: whether they are existing customers or people who write and create content that influence customers.

The impact on one person
... one ... 10 ... 89
will create will will view
content interact the content
with it and interaction
We know how influence works online
(http://www.guardian.co.uk/technology/2006/jul/20/guardianweeklytechnologysection2)

Activating: influencers to create a fanbase for
Motorola in Japan
When Motorola launched RAZR in Japan we faced a challenge – most people purchased their mobiles in Nov, when company bonuses were handed out. They were launching in Dec. and a year behind the rest of the world. So we
soft launched with bloggers to help grow awareness and preference for the phone and in 3 weeks pre-registered more than 5,000 new customers. (Case study: OgilvyOne Japan)

Engaging
individuals and communities with brand
value exchange, wherever they gather
Creating brand value exchange to grow relationships with individuals and communities, wherever they are.

Mini was looking for a way to engage ‘Car guys’ -- avid car owners who were particularly passionate about motor sports and autotuning.
We need to create an online platform that helped Mini connect to this community, and for those communities to connect with each other. And to do so without competing with the existing Minicommunities but to include them in an open way
with the goal of learning more from them and driving higher customers satisfaction.
Mini united is:
- a personalized home page that every car guy can configure, just like his Mini to his interest
- a central hub integrating existing mini forums and blogs, while also providing a new mini blog offering exclusive content
- a place for communities of owners to make contacts, promote their clubs and events and order tickets for official mini events.
[Play]
Results
the 'car guys' are a very small target group. Research showed us that there are approx. only 30,000 real 'car guys' around the world. But after 4 months we had 100,000 unique visitors and 10,000 newsletter registrations, from over 30
countries.
We sold 15,000 tickets for the big MINI United 2009 event in Silverstone this year, where 25,000 people from all over the world attended.
(Case study: OgilvyOne Frankfurt)

CRM in the Social Age
Listening Participating
for insights from conversations that with customers in
drive engagement and propositions authentic conversations
Activating Engaging
influence in and outside of communities with brand value exchange
your customer set wherever they gather
Four big practices making the most of CRM in the Social Age. Each of which will now be brought to life by experts in social media.

Getting started today
• Don’t create a standalone social media strategy — embed it into an
existing programme
• Conversation monitoring — start with the first scan
• Develop rules of engagement for your brand
• Skill up the organisation in social
• Plan your branded value exchange
• Identify your primary community platform
• Call us
There are simple things we can do to take advantage of CRM in Social Media today
1. Embed social media into an existing initiative / CRM programme
Social media shouldn't be developed as a standalone channel strategy. It's best planned as part of an existing initiative that is important to your business, that requires channels working together to grow value, and that has clear and
actionable success metrics.
2. Conversation monitoring - start with the first scan
There are tools available which can now analyse and organise what your customers are saying about you in social media. It's time to take advantage of what is undoubtedly the most powerful, most transparent, mass insight
methodology available.
4. Develop rules of engagement
Most companies don't have social media policies in place. You’ll need clear guidelines on tone of voice, issue resolution and escalation and legal requirements (Don’t forget to include your legal team!)
3. Skill up your marketing and service organisation to dialogue
Don't leave talking to your customers to an intern or an unqualified company. Take care in choosing who is going to be dialoguing with your customers. It will require your front staff being fast, being on brand, and being able to
resolve or action solutions to your customers' problems
5. Plan the engagement: content or experience that engages your customers in authentic conversation which can be delivered as CRM in social media
6. Identify the best platform (the website, community, social network) for that conversation.
And lastly, call us.

Thank you
Brian Jensen
Head of Experience Planning, OgilvyOne London
brian.jensen@ogilvy.com
Twitter: brianj777
Thank you.