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The Marketing Effects of
Consumer Influence on Social Media


  March 6, 2013

  Janet Jaiswal
  Sr. Director of Global Product Marketing at
  Tealeaf, an IBM Company
  jjaiswal@us.ibm.com



                                                1
Background

       • Twenty years of experience building and marketing products in the
         mobile, payments, and e-commerce space for both businesses and
         consumers.
       • Has introduced about ten technology products and services to the
         enterprise and consumer market.
       • Previous positions: eBay, Scient, TRUSTe and PayPal
       • Leading our social media marketing efforts at Tealeaf, an IBM company
         that has resulted in a 250% increase in unique visitors and a 45%
         increase in followers.

       • MBA from the Tepper School of Management at Carnegie Mellon
         University
       • BS at the University of California at Berkeley
       • Certified in Social Media Marketing by Marketing Sherpa

       • Follow Janet at @JanetJaiswal (Mobile and Customer Experience
         Management)



                                                                                 2
Important note



      The information presented in today’s
         session reflects my viewpoints,
      experience and learnings only and do
         NOT represent IBM in any way
                  whatsoever.




                                             3
Agenda

› Three key trends in consumer media
› Implications for marketers & their companies
› Potential strategies
› Questions & answers




                                                 4
The main goal of Marketers is to
reach people at those moments
    or touch points, that can
   influence their purchasing
           behavior.




                                   5
#1 – Social site’s population grows, especially Pinterest

    Launched in 2011, Pinterest is primarily B2C but also B2B




         “Pinterest users reported a surprisingly high correlation between
         pinning and subsequent purchasing; more than 1 in 5 Pinterest users
         has pinned an item that they later purchased”
                                              - Harvard Business Review, May 2012
Source: Socialmediaexaminer.com                                                     6
#2 – Mobile is the media of choice to access social content

                                                  How do users access social media?
                                                        (in addition to the PC)

                                                     43% of users use smartphones
                                                            16% use tablets




                                                                     5%



                                                               34%
                                                                          61%


             Jul’11    Jul’12   Jul’11   Jul’12

          Mobile Apps           Mobile Web

Source: Nielsen 2012                                                                  7
In 2013 mobile will exceed desktop internet usage




                                                    8
Mobile Driving Success / Failure




                           “eBay sees mobile as a game changer”




                                                                  9
Bad Mobile Experiences = Real Consequences

                                   @xxxx *sigh* So
                                    depressing. Why
                                    do this?

                        --------------------------

                         “A bad review in the app
                         store scars your app for
                         life”
                        – Mobile Orchard (leading iOS Blog)




                                                              10
Expectations vs. Realities

  85% of adults who have completed a mobile
  transaction in the past year expect the
  experience to be better than using a laptop
  or desktop computer



                                               Yet 41% of comments about the
                                               top mobile companies expressed
                                               frustration
                                                                           11
Source: Harris Interactive Survey of Mobile User Experience March 2011
The perfect storm builds…



             63% of all online adults would be less likely to buy
             from a company via other purchase channels if they
             experienced a problem conducting a mobile
             transaction.




                                                                                                                                12
Source: Harris Interactive Survey of Mobile User Experience March 2011, Image source: Tim Greenhalgh, connectedeverywhere.com
#3 – Voice of the Customer is the new way consumers gain
   attention




   • Voice of the Customer (VOC) includes social networking sites,
     surveys, feedback, updates, tweets, reviews, forums etc.
   • Remember…online content is indexed for a long time….
            Social media is used to…

           Listen and learn about other consumers’ experiences:         70%

           Find more information about brands, products and services:   65%


          Compliment brands:                                            53%

Source: Socialmediaexaminer.com, Image source: researchaccess.com             13
IMPLICATIONS FOR MARKETERS AND
THEIR COMPANIES




                                 14
Some disconnect between sites used by consumers vs.
   marketers
             Social Media Sites Used by Marketing Decision-Makers and Consumers Worldwide
             % of respondents




Source: Pitney Bowes Software, Nov 2012                                                     15
Consumers’ reaction to marketing messages on social media




           Consumers are more tolerant of marketing messages on
              social media if they are from brands they follow.


Source: www.emarketer.com                                         16
Consumer distrust advertising even if its disguised




         “72% of those who felt they had been duped by a Sponsored Story
         either felt the same way or worse about the brand afterwards; 62% of
         those feeling mislead by a Promoted Tweet said the same.”
                                                                 Source: MediaBrix




Source: www.emarketer.com                                                            17
POTENTIAL STRATEGIES




                       18
Strategy #1 for Mobile

                                             Native Apps             Mobile Web
  • Mobile should be a priority for
    your content
       – Content should be personalized
       – Content should be engaging
       – Content needs to be optimized for
         various mobile devices and
         platforms
  • Understand your mobile users
      including user demographics
      such as…
        – Geography, gender, age, income,
            device, platform etc.
                                                           Tablets
   • Measure the impact
        – Campaign effectiveness, # of
            customers acquired, retention
            rate, conversion rates etc.      Hybrid Apps               HTML5


Image source: Tealeaf, an IBM company                                             19
Strategy #2 for Pinterest


 • Place high quality
   photography
      – Think themes not product
        promotion
      – Creativeness and visual appeal is
        key
 • Add the “Pin It” Button
   on your site
 • Be prepared to spend
   time to engage with                                                Pinterest supports hashtags
   “Pinners”
 • Engage with users
     – Repin content (users get notified and hopefully they will go to your board)
     – Make comments (comments stay with the picture so others can see it)
     – Follow others (user gets notified and hopefully they will follow you)



Image source: Charles Nicholls on mashable                                                          20
Strategy #3 for VOC


 Pay attention to the Voice of the Customer
      – Not just for marketers and researchers
      – Be wary of the perfect storm
      – Use VOC to attract visitors, educate them, maintain
        relationships and provide customer service
      – Gather and evaluate VOC data regularly
      – Evaluate resources requirements before you start



                                              “Online, no one can hear
                                              you scream.”
                                                              - Unknown




Image Source: YA Novelties
                                                                          21
Questions?




             22

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Marketing to Consumers Using Social Media

  • 1. The Marketing Effects of Consumer Influence on Social Media March 6, 2013 Janet Jaiswal Sr. Director of Global Product Marketing at Tealeaf, an IBM Company jjaiswal@us.ibm.com 1
  • 2. Background • Twenty years of experience building and marketing products in the mobile, payments, and e-commerce space for both businesses and consumers. • Has introduced about ten technology products and services to the enterprise and consumer market. • Previous positions: eBay, Scient, TRUSTe and PayPal • Leading our social media marketing efforts at Tealeaf, an IBM company that has resulted in a 250% increase in unique visitors and a 45% increase in followers. • MBA from the Tepper School of Management at Carnegie Mellon University • BS at the University of California at Berkeley • Certified in Social Media Marketing by Marketing Sherpa • Follow Janet at @JanetJaiswal (Mobile and Customer Experience Management) 2
  • 3. Important note The information presented in today’s session reflects my viewpoints, experience and learnings only and do NOT represent IBM in any way whatsoever. 3
  • 4. Agenda › Three key trends in consumer media › Implications for marketers & their companies › Potential strategies › Questions & answers 4
  • 5. The main goal of Marketers is to reach people at those moments or touch points, that can influence their purchasing behavior. 5
  • 6. #1 – Social site’s population grows, especially Pinterest Launched in 2011, Pinterest is primarily B2C but also B2B “Pinterest users reported a surprisingly high correlation between pinning and subsequent purchasing; more than 1 in 5 Pinterest users has pinned an item that they later purchased” - Harvard Business Review, May 2012 Source: Socialmediaexaminer.com 6
  • 7. #2 – Mobile is the media of choice to access social content How do users access social media? (in addition to the PC) 43% of users use smartphones 16% use tablets 5% 34% 61% Jul’11 Jul’12 Jul’11 Jul’12 Mobile Apps Mobile Web Source: Nielsen 2012 7
  • 8. In 2013 mobile will exceed desktop internet usage 8
  • 9. Mobile Driving Success / Failure “eBay sees mobile as a game changer” 9
  • 10. Bad Mobile Experiences = Real Consequences @xxxx *sigh* So depressing. Why do this? -------------------------- “A bad review in the app store scars your app for life” – Mobile Orchard (leading iOS Blog) 10
  • 11. Expectations vs. Realities 85% of adults who have completed a mobile transaction in the past year expect the experience to be better than using a laptop or desktop computer Yet 41% of comments about the top mobile companies expressed frustration 11 Source: Harris Interactive Survey of Mobile User Experience March 2011
  • 12. The perfect storm builds… 63% of all online adults would be less likely to buy from a company via other purchase channels if they experienced a problem conducting a mobile transaction. 12 Source: Harris Interactive Survey of Mobile User Experience March 2011, Image source: Tim Greenhalgh, connectedeverywhere.com
  • 13. #3 – Voice of the Customer is the new way consumers gain attention • Voice of the Customer (VOC) includes social networking sites, surveys, feedback, updates, tweets, reviews, forums etc. • Remember…online content is indexed for a long time…. Social media is used to… Listen and learn about other consumers’ experiences: 70% Find more information about brands, products and services: 65% Compliment brands: 53% Source: Socialmediaexaminer.com, Image source: researchaccess.com 13
  • 14. IMPLICATIONS FOR MARKETERS AND THEIR COMPANIES 14
  • 15. Some disconnect between sites used by consumers vs. marketers Social Media Sites Used by Marketing Decision-Makers and Consumers Worldwide % of respondents Source: Pitney Bowes Software, Nov 2012 15
  • 16. Consumers’ reaction to marketing messages on social media Consumers are more tolerant of marketing messages on social media if they are from brands they follow. Source: www.emarketer.com 16
  • 17. Consumer distrust advertising even if its disguised “72% of those who felt they had been duped by a Sponsored Story either felt the same way or worse about the brand afterwards; 62% of those feeling mislead by a Promoted Tweet said the same.” Source: MediaBrix Source: www.emarketer.com 17
  • 19. Strategy #1 for Mobile Native Apps Mobile Web • Mobile should be a priority for your content – Content should be personalized – Content should be engaging – Content needs to be optimized for various mobile devices and platforms • Understand your mobile users including user demographics such as… – Geography, gender, age, income, device, platform etc. Tablets • Measure the impact – Campaign effectiveness, # of customers acquired, retention rate, conversion rates etc. Hybrid Apps HTML5 Image source: Tealeaf, an IBM company 19
  • 20. Strategy #2 for Pinterest • Place high quality photography – Think themes not product promotion – Creativeness and visual appeal is key • Add the “Pin It” Button on your site • Be prepared to spend time to engage with Pinterest supports hashtags “Pinners” • Engage with users – Repin content (users get notified and hopefully they will go to your board) – Make comments (comments stay with the picture so others can see it) – Follow others (user gets notified and hopefully they will follow you) Image source: Charles Nicholls on mashable 20
  • 21. Strategy #3 for VOC Pay attention to the Voice of the Customer – Not just for marketers and researchers – Be wary of the perfect storm – Use VOC to attract visitors, educate them, maintain relationships and provide customer service – Gather and evaluate VOC data regularly – Evaluate resources requirements before you start “Online, no one can hear you scream.” - Unknown Image Source: YA Novelties 21