Form/ Function: What Are You Driving Through Your Social Media Marketing?
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GUCCI is increasing its investment in social media marketing. It has developed strategies like "Cut & Craft" to generate user-generated content and engagement. This campaign allowed users to make paper versions of GUCCI bags. GUCCI measures the effectiveness of its social media campaigns through various metrics like brand equity, shareholder value, customer service efficiency, and direct sales. Its campaigns have achieved high levels of engagement, sharing, views, and votes, demonstrating the impact of social media for luxury brands.
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Form/ Function: What Are You Driving Through Your Social Media Marketing?
- 1. Social media for luxury brands: building GUCCI’s online presence Micael Barilaro Erinn Leahy Worldwide Digital Project Coordinator VP Sales GUCCI Buddy Media Europe
- 2. Today’s agenda Social media marketing in the luxury sector: trends, challenges, successes GUCCI strategy and case studies Measuring effectiveness: What does success look like? How can luxury brands like GUCCI gauge the success of online campaigns?
- 5. More Than Half of Local Online Populations Engage in Social Networking North America North America Europe Middle East & Africa Asia Pacific Canada 94% Argentina 96% Austria 86% Israel 94% Australia 96% United States 98% Brazil 97% Belgium 93% South Africa 88% China 53% Chile 94% Denmark 94% Hong Kong 93% Colombia 96% Finland 91% India 95% Mexico 96% France 91% Indonesia 94% Peru 96% Germany 90% Japan 58% Puerto Rico 90% Ireland 95% Malaysia 94% Venezuela 96% Italy 93% New Zealand 95% Netherlands 94% Philippines 96% Norway 89% Singapore 94% Poland 95% South Korea 87% Percentage of Online Population Portugal 96% Taiwan 94% Using Social Networking Russia 88% Vietnam 85% Spain 98% around the World* Sweden 93% % Reach of Online Population Switzerland 90% Turkey 96% * Data is based on the 43 countries on which United Kingdom 98% comScore reports individually. Source: comScore Media Metrix, October 2011
- 6. Prestige brands on Facebook: local content Source: L2 Facebook IQ Index, June 2012
- 7. Global prestige brands: average Likes per day Source: L2 Facebook IQ Index, June 2012
- 8. Global prestige brands: external integration Source: L2 Facebook IQ Index, June 2012
- 9. Global prestige brands: the challenge of Timeline Source: L2 Facebook IQ Index, June 2012
- 10. Global prestige brands: content that drives interaction Source: L2 Facebook IQ Index, June 2012
- 11. Global prestige brands: content that drives interaction Source: L2 Facebook IQ Index, June 2012
- 12. GUCCI: driving engagement through rich content
- 13. GUCCI: Managed Audience 9 million fans 2K+ followers 450K+ followers 5K+ followers 1.3M+ followers 160K+ followers 2M+ views 3M+ total downloads 190k+ followers and more in Asia..
- 14. GUCCI: Tone. Narrative. Product. Micro Trends Storytelling What Makes Us Different Micro Trends Total reach 1M fans What Makes Us Editorial Total reach 2M fans Iconinc Products What Makes Us Editorial Total reach 1.5M fans
- 16. GUCCI: Overall Stats Views – 500,000 Primary Events – 610,000* *a sum of all actions taken on the tabs (Votes, Form Submitted & products clicked etc). Tab Shares – 8,000 Link Clicks – 30,000 Source: Buddy Media Analytics Data – 16th April – 17 August 2012
- 17. GUCCI “Cut & Craft”: The Campaign The ―Cut & Craft‖ campaign showcases the Bamboo, Jackie and Stirrup handbags by giving users a paper pattern to create their own version, to give them the chance to have their bag shown to creative director Frida Giannini. Objectives: - Create awareness of Gucci Icons - Enable user-generated content - Build brand loyalty and ambassadors - Express craftsmanship
- 18. GUCCI “Cut & Craft”: The Video
- 19. GUCCI “Cut & Craft”: Multichannel Strategy inspiration products selection prop origami concept based on ROP Cut & Craft videos gucci.com direct marketing blogs & e-pub in store events social media digital adv
- 20. GUCCI “Cut & Craft”: Social Content hub A dedicated tab on Gucci Facebook page host Cut & Craft, available inKorean and Japanese, English, Italian, French, Spanish, Arabic. Users are able to experience short 3-D films introducing the three bags along with an image gallery and description of the current collection, linked to Gucci Digital Flagship Store. Up to 800K views On Youtube
- 21. GUCCI “Cut & Craft”: User Generated Content Users are invited to download patterns and style out their own bags from the Cut & Craft Facebook Tab as well as view instructional videos for each pattern. Total reach 3M fans for editorial post
- 22. GUCCI “Cut & Craft”: Voting Contest Users who take a picture of their pop-up bag and upload it to our designated Facebook tab, will be featured in the voting section . The most popular bags will be featured as the cover photo on Gucci’s Facebook Timeline. In Japan and Korea, the campaign has an actual prize, and winners there will receive complimentary bags.
- 23. GUCCI “Cut & Craft”: Spread The Words
- 24. GUCCI “Cut & Craft”: Enhancing Experiences Traditionally, we have viewed offline and online experiences as two separate things — complementary, perhaps, but separate. Today, physical and digital are revealing themselves to be two sides of the same experience. People want to be immersed. They want to get involved in a story, to carve out a role for themselves, to make it their own. Launch of ―Cut & Craft‖ Campaign during Fashion's Night Out at Gucci Fifth Avenue on September 6, 2012 in New York City
- 25. GUCCI: Flora Garden Views – 440,000 Discover the Scents – 7,500 Voting – 65,000 Tab Shares – 7,000
- 26. GUCCI: Fan Messaging Total reach: up to 1.5M collectively
- 28. Measuring effectiveness 5 measures: Brand Equity Shareholder Value Talkability Customer Service efficiency Web traffic referrals + 1 ROI deep-dive: SALES
- 29. Brand Equity Fans v. NON-Fans Brand Awareness: +58% Brand Favourability: + 46% Share of Wallet: 4X (13% v. 3%) Blackberry owners case: NON-Fans: 44% would recommend Fans: 87% would recommend CMOs perspective - Social has a measurable effect on: BRAND AWARENESS: 82.3% Agree BRAND LOYALTY: 81.5% Agree Sources: Millward Brown UK 2011, Forrester US 2012, BazaarVoice 2012
- 30. Shareholder Value “Strong financial results thanks to continued investment in innovative design, digital marketing and retail strategies” A. Ahrendts – CEO, Burberry Sources: Source: Marketing Week, Feb 2012
- 31. Shareholder Value "At Ford, Social Media is bigger than advertising.” +600% Matt VanDyke – Mktg Dir. Ford US Source: AdAge, Feb 2012
- 32. Talkability “Zeebox could spell the future of Social TV” New Media Age, 2012
- 33. Customer Service efficiency “Diverting resources from call centers to Social channels has made us much more efficient in managing our customer service costs” Top Exec. at a major UK Bank
- 34. Web Traffic referrals YouTube gets more traffic from Facebook than from Google comScore, UK and US, Feb. 2012 Source: comScore Source/Loss report UK and US, Total entries, Feb 2012
- 35. Sales – deep-dive Source: comScore “The Power of LIKE – Europe” July 2012
- 36. THANK YOU! buddymedia.com facebook.com/buddymedia @BuddyMedia linkedin.com/company/buddy-media youtube.com/BuddyMedia © 2012 Buddy Media Inc. Proprietary and Confidential
Editor's Notes
- In January 2012, BSkyB bought a stake in Zeebox, and announced plans to integrate the software with its offering. [3]. In March 2012, a TV advertising campaign was launched across the UK promoting zeebox as "the best thing to happen to TV since TVInto_Now already with millions of users in US, providing already advertising opportunities in conjunction with live TV ads. A Shazam-like system that automatically customises the interface based on what you are watching.
- Finally sales! If you measure ROI in Sales coming directly from Social, if your ROI measures are focused on the immediate, transactional aspect of your return from social…Throughout this white paper we have evaluated the incremental reach and diversity of audience that a brands’ social network on Facebook can achieve. Higher rates of visitation of retail brand’s Friends of Fans potentially point to a pre-existing receptivity of a wider audience for brand messaging, product information and promotions. As the Fan Networks of the selected retail brands in this study represent audience sizes in the millions, these brands are capable of marketing to consumers who exhibit lighter visitation patterns at impressive scale. A final area of analysis that is often enquired about by brands is whether paid media and earned media on Facebook are effective at driving increased purchasing behaviour. To explore this further we have conducted two additional analyses, which provide further evidence that both social impressions and paid impressions on Facebook can drive action. We have used examples from ASOS to illustrate the case. The first analysis examines the likelihood of making a purchase on the ASOS site for an ASOS Fan and Friend of Fan (ASOS Site Visitors, Social) compared to an ASOS Site Visitor that is not a Fan or Friend of Fan (ASOS Site Visitors, Non Social). The purchasing behaviour is identified through the ASOS.com Thank You page that is displayed post-purchase and the data below is indexed against the total purchasing audience. The below illustration shows that ASOS Site Visitors who are a Fan or Friend of Fan (ASOS Site Visitors, Social) are over 10 percent more likely to make a purchase on the ASOS site as compared to site visitors that are not within ASOS’s Friend of Fan reach. While the below correlative data doesn’t indicate the extent to which these differential purchase rates are attributable to media’s influence, it reveals that Fans and Friends of Fans represent a group of shoppers shown to be within ASOS’s consideration set of target consumers. Our second analysis examines the likelihood of conducting a purchase on the ASOS site after exposure to a paid impression on Facebook. As with the above example, purchasing behaviour is identified through the ASOS.com Thank You page that is displayed post-purchase. These results highlight the ability of Facebook paid ads to drive purchase in the weeks following exposure. In this campaign, 1.7 percent of those exposed to an ASOS sponsored ad on Facebook purchased from the ASOS site at least once in the four weeks after first exposure to the campaign; compared to only 0.7 percent of those not exposed to the campaign. Facebook advertising generated an uplift of 130 percent in purchase behaviour on the ASOS site. This is relative to those consumers who were not exposed and importantly demonstrated a similar affinity to ASOS as the test group (e.g. site visitation and purchase) in the four weeks prior to the advertising campaign.