SEO-LGD116-20070228-Defining a Winning TV Business Strategy - NA FPTV (1PR)
Review Driven Marketing (Social Media Marketing) Michael Hong
Share of Online Sales continues to grow e-commerce sales will represent 8 percent of all retail sales in the U.S. by 2014, up from 6 percent in 2009 In 2009, 154 million people in the U.S. bought something online, or 67 percent of the online population (4 percent more than in 2008) Three product categories (computers, apparel, and consumer electronics) represented more than 44 percent of online sales($67.6 billion) in 2009
Some products are more likely purchase online over offline According to a study by the US Census Bureau, the bulk of sales are still in-store. There are, however, several categories in which online sales dominate each product marketplace. These include: books and magazines, clothing, and electronics.
But Online Influenced sales are over 5 times of online sales While $155 billion worth of consumer goods were bought online last year, a far larger portion of offline sales were influenced by online research. Forrester estimates that $917 billion worth of retail sales last year were “Web-influenced.” It also estimates that online and Web-influenced offline sales combined accounted for 42 percent of total retail sales and that percentage will grow to 53 percent by 2014, when the Web will be influencing $1.4 billion worth of in-store sales.
Online influence is increasing as content sharing is getting easier with faster internet speed Internet Speed Engagement Text Audio Pictures Video HD Video Communicate Socialize Task Life management Just for Fun Full Entertainment Web 1.0 Web 2.0 High High Information Content Sharing
Prosumer produces reviews that influences both manufacturer and consumer
The Cluetrain Manifesto written in 1999 by , Christopher Locke , Doc Searls , and David Weinberger noted that "markets are conversations " with the new economy moving from passive consumers ... to active prosumers. 2 For instance, Amazon.com emerged as an ecommerce leader -- partially due to its ability to construct customer relations as conversations rather than simple, one-time sales. Amazon supports exchange of information among customers; it provides spaces for customers to add to the site, in the form of reviews . 2
However, mass customization has not taken place in most areas of the economy. Most consumption continues to be passive as critics of television , recorded music, and fast food would argue. Indeed, people are generally uninterested in going to the effort of customizing the myriad products that comprise modern consumer culture. In The Paradox of Choice: Why More is Less , Barry Schwartz argues that diminishing returns from a confusing abundance of consumer choice is producing stress and dissatisfaction. 3 Still, one key area of high-customization is taking place: highly involved hobbyists.
Members of motorcycle clubs are often viewed in a negative light by traditional society. This perception has been fueled by the movies, popular culture, and highly publicized incidents. One of the earliest and most notorious of these occurred in Hollister, California in 1947   and is now dubbed the Hollister riot . Whether or not an actual riot occurred is debatable, but there was a motorcycle rally in Hollister from July 4 to July 6 of that year that was attended by about 4000 people. Several newspaper articles were written that, according to some attendees, sensationalized the event and Life magazine ran an article and a staged photograph of an intoxicated subject on a motorcycle parked in a bar. The film The Wild One , starring Marlon Brando , was inspired by the event, and it became the first in a series of movies that depicted bikers and members of motorcycle clubs in this stereotypical manner. The press asked the American Motorcyclist Association (AMA) to comment on the Hollister incident and their response[ citation needed ] was that 99% of motorcyclists were law-abiding citizens, and the last one percent were outlaws. Thus was born the term, "one percenter" . They are also known as " Outlaw Motorcycle Gang " or (OMG) according to the ATF  .
Just about everything is being reviewed and rated
Even Reviews are being Reviewed davedude123456789 (3 months ago) Show Hide omg! im sorry but who cares about the voice command. also the speaker on my lg rumor is perfect and loud! there are 20 ringtones and you definitely only need 6 or 7 msging tones. the exposed number pad is just fine especially if it does have the lock! i love the phone! VolcomSkater211 (3 months ago) Show Hide whoa negative much? learn what the phone can do before talking smack about it! TrentonStolte (3 months ago) Show Hide umm....... i have the scoop and u can do voice command... its not that hard to get to.... why dont u try to actually look for what the phone features before you start talking shit on it andrechristi (3 months ago) Show Hide this girl sucks at this man!!! POST some gud comments . U SUCK AT THIS. BY the WAY THAT flip phone sucks. U dunt noe how to advertise videoguy2005 (3 months ago) Show Hide =( u suck at this
Reviews are being searched 86 million times per month and growing 86 M
1 M Video Review are also fast growing.. Over one million video reviews
VOC Study 1Q-3Q ’07 vs. 1Q-3Q‘08 Number of reviews are growing… MU CE DA Cnet Amz BBuy Sears Home Depot 13,221 21,201 60% 13,221 21,201 60% 60% 94% ∆ 6% 95% 50% 146% ∆ 24% Review Volume Trend 60%
It about time that you start listening to customers Reviews are the Voice of Customers
I am listening but not sure what do to with that
Most reviewers likes to write positive things Thinking of all the times you've posted feedback online over the last 30 days, has your feedback been:
Product reviewers are also Influencers Told friends and family about my experience Sent an email to friends and family about my experience Posted my comments on some other product review website Telephoned the company directly to express my opinion Sent an email to the company directly to express my opinion Sent a letter the company directly to express my opinion Posted my comments on a weblog (blog) of some kind Besides posting your feedback online, have you already expressed your opinions on that same product or service experience using any of the following methods? If not, do you expect you will do any of these things in the future? 59%
One out of two reviewers are frequent writers About how many times in the last 30 days have you posted publicly on the Internet any kind of feedback regarding a product or service?
They leave their voice where they buy On a website belonging to a retailer and relating to an offline purchasing experience On a website belonging to a retailer and relating to an online purchasing experience On a product manufacturer's own website On an independent "product review" website such as Epinions, ConsumerReview, ConsumerSearch, CNET, TripAdvisor, etc. None of the above On a weblog (blog) belonging to you or some other individual Please tell us all the types of places you have posted feedback online about products or services (select all that apply) 66% 34%
Time Arming for fight Trying it on Reassurance Internet WOM In-store Forums & Reviews WOM In-store Leaflets & internet Purchase ▶ Through out the journey of purchase, customer listens to what other customer have to say ▶ Review Driven Marketing is to leverage customer’s voice to influence brand perception So how do Reviews impacts my business? * Source : Saatchi X Collecting info Avoiding a mistake Feeling more confident Final check Talk to friends + - Narrow choice Obtain a visual baseline Talk to friends PURCHASE
▶ 77% of online shoppers seek product ratings & reviews ▶ 84% trust user reviews over a critic ▶ 58% of consumers start their research on the manufacturer web site Customers are actively using product reviews * Source : Saatchi X * Source : Forrester, Jupiter Media, Shop.org
Form of marketing in which focus is placed on specific key types of individuals rather than the target market as a whole
It identifies the individuals that have influence over potential buyers, and orients marketing activities around these influencers
What It Is Why LG Use It For LGE, we see four key channels in the influencer ecosystem
To increase awareness of LG within the influencer community and ultimately among target markets
To raise brand affinity and influence purchasing decisions in a more impactful way than traditional forms of marketing
To build advocacy by turning influencers into advocates of LG
To keep the pulse of the brand by capturing consumer opinions that can affect product choices and marketing strategies
Retailer Expert Social Media Consumer
Gain deeper consumer and brand insight Monitor and check LGE’s influencer community and its impact among target markets Keep a pulse on the brand Foundation of Influencer Marketing Engage Monitor Influence Influence the influencers Join the conversation to contribute value Amplify positive conversation to key influencers Cultivate and facilitate consumer engagement Turn most loyal consumers into citizen marketers Generate viral buzz that will increase dialogue within key peer groups Create a “momentum effect” where consumers use and share brand elements
Monitor top 5 websites highly relevant ( Amazon, Bestbuy, Sears, Home Depot and Cnet etc.)
Understand competitive landscape and apply learning to strategic planning
Generate products reviews in text and video format via lgusa.com, Expotv and Youtube
Amplify positive message while neutralize negative message
Syndicate review contents between LG and strategic partners
Increase search visibility via keyword tagging
Your Action Plan Consumer reviews are the ultimate ‘unbiased advice’ People really trust the opinions of people like them and put a lot of weight to them. The bad reviews are as important as the good – if not more so. You need to encourage purchasers to write reviews and tell the world about their wonderful new experience How do I incorporate this into my marketing strategy? Opportunity
Marketing Application of VOC ▶ Tell your customer about Top rated Products In-Store, Website, Email Print etc.
Amplification Retailers YouTube ExpoTV Cnet ▶ Spread the reviews to where your targets are.
Generate UCC on LG product review that will be highly visible in search site such as Google and Yahoo Approach: Partner with YouTube & Google generating UCC on LG product review. Develop a set of keywords and tag to all UCC to support search engine. Invite LG product users to generate LG products review Video content as Search results Syndicate video content to LGusa.com and other partners. Tag Keywords to make the video content search friendly ▶ Search engines are now offering video content as search results ▶ Product review contents are on high demand but video formats are not available. (< 2% per brand) ▶ Video contents are not search friendly due to improper keyword tagging. Illustrative Appendix Amplification
Reviews by early adapters are critical to 4Q sales Insufficient reviews or bad reviews will negatively impact brand consideration Heavy incoming Reviews determine winners and losers WOM Action Plan 2Q 3Q 4Q 1Q
Arrange publications to write product reviews (Cnet)
It's not cheap, but we feel like got our money's worth
VOC Trend study ‘ Flat Panel Reviews Volume Cnet Amz BBuy Sears Pan SS Sony Sharp LG ▶ Flat Panel Reviews are significantly increased at Amazon.com ▶ SOV of LG significantly increased from 1.8% to 5.5%. 71% 71% 5,013 8,553 5,013 8,553 VOC Study 1Q-3Q ’07 vs. 1Q-3Q‘08 120% L 79% P 21% L 78% P 22% 75% 131% 23% 17% 420% Illustrative
VOC Trend study Washer Reviews Volume HD Amz BBuy Sears May Ken WP Sam LG ▶ Washer reviews are significantly decreased in ‘08 ▶ SOV of LG significantly increased from 22% to 36%. ∆ 21% 27% 918 720 918 720 VOC Study 1Q-3Q ’07 vs. 1Q-3Q‘08 ∆ 35% 178 % ∆ 21% GE ∆ 48%
VOC Trend study Refrigerator Reviews Volume HD Amz BBuy Sears May Ken WP Sam LG ▶ Refrigerator reviews are significantly decreased except Samsung ▶ SOV of LG increased from 21% to 26%. ∆ 57% 600% 941 402 941 402 VOC Study 1Q-3Q ’07 vs. 1Q-3Q‘08 ∆ 73% 102 % ∆ 47% GE ∆ 48% ∆ 90% ∆ 57%
Net Recommendation Rate = (# of Recommended - # of Not Recommended) Total Review Volume Share of voice = Total Brand Review Volume Total Category Review Volume VOC Trend study ▶ WOM Strength can be measured by NRR (Net Recommendation Rate) and SOV (Share of Voice)
Net Recommendation Share of Buzz 50% 100% 25% 0% 50% MU DA CE 1. VOC Monitoring –Summary ▶ Samsung has the highest Share of Buzz and strong rate of recommendation ▶ MU and DA are leading the VOC for LG Illustrative
Michael Hong, Digital Marketing Consultant Michael is a Senior Marketing Management professional with exceptional skills and experience in e-Commerce Marketing. Michael has 20 years of marketing and marketing communications experience at corporations such as AT&T and LG Electronics. He is a creative marketer and a thought leader in digital marketing and multicultural marketing industry. He spoke at numerous conferences such as Internet Retailer and the eM9-Marketing Conference. Specialties: Advertising Strategy, Planning and Execution, Digital Marketing (SEO, SEM, Social media, Word-of-Mouth), Direct Marketing, Multicultural Marketing, B-B Marketing Education: Cornell University, Ithaca, New York B.A. 1985 School of Art, Architecture and City Planning Contact: (C) 201 841 9659 [email_address] Thank You