How to gain customer insights in social media

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Talk given at the Social Media CRM seminar at Rouen Business School organized by Markets, Brands and Experiences Research group.

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How to gain customer insights in social media

  1. 1. How  to  gain  customer  insight  in   social  media?   Joonas  ROKKA  November  28,  2012  jrk@rouenbs.fr  @jccnas  
  2. 2. How  to  gain  customer  insight  in  SM?   Nestle’s  “Digital  AcceleraDon  Team”  monitoring  customer  dialogue  online  
  3. 3. Listening  customers  in  social  media     Is  important  because:   –  People  spend  a  lot  of  Dme  in  social  media,  discussing   their  daily  lives,  interests  and  opinions     Facebook  is  the  biggest  Dme-­‐suck  in  the  internet  (17%),   YouTube  (10%)   –  78%  of  consumers  trust  Word-­‐of-­‐Mouth  in  social  media     Only  14%  trust  ads   –  34%  of  blog  arDcles  talk  about  products  and  brands     That  is  more  than  70  million  blogs  (ComScore,  2009,  Jupiter  Research,  2009,  Fortune  2010,  McKinsey  2012)    
  4. 4. Need  for  a  systema:c  approach   Many  companies  are  extremely  confused  by  the   amount  of  informaDon  in  social  media   –  They  are  unable  to  make  use  of  it   –  They  do  not  know  how,  what  and  where  customers   talk  about  their  brands  and  products     In  other  words,  they  risk  being  not  customer   centric!  
  5. 5. Netnographic  approach      Netnography  is  a  research  process  where  social   media  is  studied  by  analyzing  member  discussions,   acDviDes,  and  ulDmately  culture,  via  acDve   parDcipaDon  and  observaDon    It  requires  constant  aaenDon  and  training    It  can  be  applied  to  study  different  social  media:   –  Facebook   –  Twiaer   –  Pinterest   –  Forums   –  Blogs  etc.  See:  Robert  Kozinets  (2010)  Netnography  
  6. 6. Example:  Foodie  communi:es   Rouxbe.comTastespotting.com
  7. 7. Benefits  of  Netnography   Window  into  consumers’  everyday  life  and  naturally   occurring  reality   Faster,  simple  and  less  expensive  than  many  other  methods   Up-­‐to-­‐minute  informaDon   You  can  study  your  customers  on  your  sofa   Basically  everyone  can  use  it!   A  managerial  tool  for  studying   –  Customer  values,  aetudes,  tastes,  preferences,  segments   –  Brand  percepDons,  meanings,  aaributes  
  8. 8. Case:  Valio  How  netnographic  insights  were  used  in   pracDce  for  creaDng  a  new  product?  
  9. 9. Insights  from  discussion  forums   #1  Forum  dedicated  to  gym,  training  and  bodybuilding…   Surprising  insight:  Gym-­‐goers  are  heavy  users  of  Valio’s     compeDng  product  -­‐>  Ehrmann  quark!  Important  source   for  protein,  yet  product  not  opDmal  for  eaDng  directly…  
  10. 10. Valio  Quark  (Crème  Fraîche)   Stable  and  profitable  (cooking)  product   Facing  fierce  compeDDon  from  Ehrmann  quark   Typical  generic  product  
  11. 11. Netnographic  insights  turned  into  success   Valio  had  never  thought  that  quarks  are  highly  valued   among  gym-­‐goers   –  Important  source  for  protein   –  Yet  taste  was  poor  –  product  was  designed  for  cooking   New  products  series  exceed  all  expectaDons   –  One  of  the  most  successful  product  launches  ever   CollaboraDon  with  the  community  is  ongoing  
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