Social Leaderboard_Indian luxury car brands_31 August 2012
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Social Leaderboard_Indian luxury car brands_31 August 2012



Shack evaluated India's three top-selling luxury car brands – BMW, Audi and Mercedes-Benz – to derive a comparative benchmark of their standing on social platforms. ...

Shack evaluated India's three top-selling luxury car brands – BMW, Audi and Mercedes-Benz – to derive a comparative benchmark of their standing on social platforms.

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    Social Leaderboard_Indian luxury car brands_31 August 2012 Social Leaderboard_Indian luxury car brands_31 August 2012 Document Transcript

    • 1:INDEX:  SOCIAL LEADERBOARD: week-on-week performance of top 3 luxury car brands…  SUMMARY Sins of short term social gains…  OBSERVATIONS  RECONNECT GRADE: o BMW o AUDI o MERCEDES-BENZ  WHY COMMUNITIES?  METHODOLOGY: the research process…  ABOUT SHACK©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 2:SOCIAL LEADERBOARD 18th August – 31st August 2012 13,00,000 12,00,000 12.4% 5.1% 10.8% 21.9% 11,00,000 Community Size (members) 10,00,000 BMW (W7) BMW (W8) 9,00,000 Audi (W7) 8,00,000 Audi (W8) Merc (W7) 7,00,000 Merc (W8) 8.2% 6,00,000 7.0% 5,00,000 - 5.0% 10.0% 15.0% 20.0% 25.0% Activity Grade Share of members (%) Activity Grade (%) Current 1w ago Current 1w ago 39.2% 39.5% 12.4% 21.9% 39.9% 39.5% 5.1% 10.8% 20.9% 21.1% 7.0% 8.2%©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 3:SUMMARYSins Of Short Term Social GainsBrands using digital as a communication medium are graduallyincreasing their marketing investment in this medium. Audi, forinstance, will spend close to 30% of its marketing spend on the digitalmedium in this financial year. However, any such incrementalexpenditure has to be justified through tangible results for the brand.Setting up KPIs and then mapping it to the marketing objectives of thebrand and the impact of the traditional communication media (print,TV etc.) is a tough challenge faced by marketers and brand managers.The challenge is made more difficult by the increasing number ofengagement avenues (Facebook, Twitter, Blog, Forums, Websites,Groups etc.) for users and customised measures for each suchplatform (fans, followers, discussions, pageviews, bounce rate etc.).Therefore, it becomes hard to account for all these avenues andreduce them into a data set that is indicative of the combinedeffectiveness of all these platforms.Flawed measurement begets flawed outcomesLikes, followers, fans and page views are insufficient measures when theyare not broken down. Therefore, it is easy for brand managers to bemisguided by the media managers with the promise of a shiny new©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 4:technology and the potential million users accessing that technology.In this excitement, two key questions are ignored 1. What does the brand stand for? 2. Who does the brand serve?Digital allows for customized relationships with the audience and aconsiderably more comprehensive feedback loop. In chasing the new shinything, marketers forget those two aspects.As a result, we observe a big gap between the actual outcome and thedesired one.Volume of users and engagement is an extremely weak ROI indicator. Whatreally matters is the quality of the audience and the engagement. Weare going to explore this statement in more detail with the help of two casestudies.©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 5:Real Life Case IFor our first case, let us look at the estimated paid mediaspends of a well-known car brand and their return oninvestment for the campaign.We do a quick calculation and observe that there is c. 84% correlationbetween the visits and the level of investment. The regressioncoefficient (r2) at 0.71 also substantiates the high dependence of thetotal visits on the media spend.This means that a very little % of the approx. 170 lakhs of investmentresults in organic growth as word-of-mouth referrals - a worrying signfor any brand. Site visits highly dependant on media spend L o 1600 80.0 y a 66.7 l Investment (lakhs) 1200 60.0 Page Views (000) t 38.3 y 800 40.0 18.5 L 400 23.0 20.0 11.9 a 5.0 d 8.6 0 0.0 d Jan Feb Mar Apr May Jun Jul e r PV (K) Invst (lakhs)Significant %age of visits come from users at the bottom of thecustomer loyalty chain©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 6:This is what we mean by having a BROKEN web presence. If yourconsumers genuinely cared about your brand, they would share their storieson social platforms that, in turn, will generate organic traffic betweenvarious brand-owned platformsThere are two main reasons for this 1. There is no emphasis by brands in attracting the right target audience on the platform. As can be seen in most KPI reports, there is no mention of the audience profile. Just faceless likes and pageviews. 2. Brands are self-obsessed and, therefore, never talk about what the users actually care about.Companies attempting to "position" themselves need to take aposition. Optimally, it should relate to something their market actuallycares about.©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 7:Real Life Case II - BMWAre a million fans any good when not even 1/1000th ofthat number identify with what the brand stands for? When BMW India recently reached a million Facebook fans, Dr. Andreas Schaaf, President, BMW Group India, said, “With the launch of BMW India page on Facebook, we have focused on harnessing the power of social media to createpassionate brand engagement with the fans of BMW. Today, our Facebookpage interacts with an ever growing fan base and spreads Joy in the virtualworld. With Sachin Tendulkar as the One Millionth fan of BMW India onFacebook, we are proud to have achieved yet another milestone in our socialmedia journey.”We looked at the 2 key points mentioned in the above statement i.e.  Passionate brand engagement among BMW fans  Sachin Tendulkar as a brand evangelist and brand ambassadorWe ran an analysis on the SHACKMATRIX™ to find out that actual numbersdo not validate the above points.On an average, the average engagement frequency per fan was 1.3xwhich means that each unique user only engaged with the brandapproximately once.©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 8:We analysed the activity score for three key attributes common to Sachinand BMW to see whether the celebrity endorsement affected the perceptionof the users.  Legacy -> Only 2 in every 500 fans associate brand BMW with this attribute  Power -> Only 4 in every 500 fans associate brand BMW with this attribute  Masterpiece -> Only 4 in every 500 fans associate brand BMW with this attribute Weak reconnect with key brand attributes 6 Engaged fans (per 500 fans) 4 4 engaged in 4 engaged in 2 every 500 fans every 500 fans 2 engaged in every 500 fans 0 Legacy Power Masterpiece Brand AttributeClearly the numbers tell a much different story than what has been claimed.The primary reason for this difference between the perceived results andactual results is that the industry still has an excessive reliance on grossnumbers that does not differentiate in value between customer A and©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 9:customer B. If you can’t make that differentiation then it is onlynatural that you can’t reap returns on your investment. The current audience on BMW’s Facebook page can classified as rented audience as opposed to earnedConclusion: Digital should be part of the coreand not an afterthoughtA me-too strategyCurrently the tendency of most brands is to look at the digital space ashygiene related afterthought – a me-too strategy. The problem with mostcorporations is that in the absence of contests & events, they lack any planto keep their audience engaged. As a result, to their intended onlineaudiences, companies sound hollow, flat, and literally robotic. By speaking inthis language, they build walls to keep brand owners, loyalists andenthusiasts at bay. Companies that dont realize their markets are nownetworked person-to-person, getting smarter as a result and deeply joinedin conversation are missing their best opportunity.©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 10:Tie it in with macro brand objectivesIf digital has to make sense for brands as an important marketing medium,then marketers need to incorporate it into their scheme of things when theyare charting out the overall marketing plan and connect its performancewith the macro brand goals of improving preference, brand association,loyalty and perception.A good is a great example of a brand using the digital medium toengage with its relevant audience by finding the common ground betweenthe brand message and what the brand’s audience cares about. It is aneditorial web platform owned by LVMH that showcases an exclusive dailypremiere of the most inspiring stories influencing contemporary arts andglobal lifestyle.©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 11: OBSERVATIONS  We see an opportunity for BMW to create a platform and leverage its association with design, art & music that, on an average, appealed to 5 in every 100 community members. The reconnect with the attributes of power and comfort associated with the new-3 series declined considerably to 0.8% and 0.2% respectively. With the absence of any contests and events, the activity score fell by almost 50% to end at 12.4%.  Audi organised the Quattro drive event which saw Audi India brand director Michael Perschke and members of the Super car club go on an off-roading trip from Srinagar to Leh. The objective of the trip was to showcase the power, agility and endurance of Audis Quattro drive technology in its Q-series range of cars. For the first week, 6 in every 100 brand followers connected with the off-roading theme while the figure fell to 3 in every 100 in the second part of the week. However, only 1 in every 100 engaged with content about Quattro technology.  The Star Drive promotion was the highlight of the fortnight for Mercedes-Benz with an online contest that promised the winner a drive experience with Farhan Akhtar. The ShackMatrix showed that 4 in every 100 brand community members were fans of Farhan Akhtar but this affinity did not translate into positive W-o-M for the brand. Overall, Mercedes still finds itself trailing BMW and Audi even with the Sports Tourer launch and the Ultimate touring trails initiative that was designed to cater to a younger target group.©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 12:RECONNECT GRADE 18th August – 24thAugust 2012 7.0% 6.1% 6.0% Reconnect Grade 5.0% 4.0% 3.5% 3.4% 3.0% 2.0% 1.0% 0.4% 0.4% 0.04% - - 8.0% 7.4% 6.3% Reconnect Grade 6.0% 4.5% 4.0% 3.6% 1.7% 1.52% 2.0% 0.19% - 5.0% 4.0% Reconnect Grade 3.0% 2.6% 2.2% 2.0% 1.1% 1.0% 0.8% 0.7% 0.7% 0.4% -©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 13:RECONNECT GRADE 25th August – 31stAugust 2012 7.0% Reconnect Grade 6.0% 5.5% 5.0% 4.0% 3.0% 2.0% 0.8% 0.8% 0.6% 1.0% 0.2% 0.02% - - 8.0% Reconnect Grade 6.0% 4.2% 4.0% 3.2% 2.0% 1.1% 0.7% 0.2% 0.21% 0.02% - 5.0% 4.3% 4.3% 4.3% 4.0% Reconnect Grade 3.0% 2.0% 2.0% 1.6% 1.0% 0.4% 0.3% -©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 14:About the Social LeaderboardThe Leaderboard updates the results derived from our internal tools andmethodologies on a bi-monthly basis, based on which we will bring out ourconclusions. Shack uses a proprietary grading mechanismShackMatrix™ to derive the Authority, Activity and Reconnect Grades,which are key determinants of a brand’s social presence. Read moreabout the Matrix and Grades.Why Communities?Create, Connect, Curate — The Shack Manifesto for BuildingCommunitiesWith the social online world becoming an important cog in a customer’srelationship with a brand, there is a need for a common language that cangive meaning to the seemingly unstructured social data scattered acrossplatforms that represents a brand’s interaction with its core community.As has happened with the introduction of any new communication medium,practitioners are making the mistake of using the measuring stick (such asviews and reach) of traditional advertising media to gauge success in thesocial web. For over a half a century, we have been thinking about©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 15: marketing in terms of campaigns with a very clear beginning, middle and an end. But the online digital world is currently in the process of being rebuilt around people and what we know as the social web, in a few years, would simply be the web. Therefore, long term success for brands depends on leveraging these human relationships to create a strong sense of community around products, concepts and values that are dearest to the brands.How we measure effectiveness in Online Communities?The ShackMatrix™ is a proprietary framework that enables assessment of abrand’s digital footprint in a holistic way. It is a common language designed tounderstand the value of a brand’s online efforts expressed through 5 grades thatcombine the understanding of traditional branding with the dynamics of a socialonline world.  Presence Grade: Measures how well is the brand represented on digital platforms.  Authority Grade: Measures how authoritative is a brand’s owned- channels for information on the brand and its products.  TG Grade: Measures the percentage of the desired target group mix active on the brand’s owned platforms.  Activity Grade: Measures the level of activity on existing channels.  Re-Connect Grade: Measures the extent to which community members connect and identify the brand with the attributes desired by it. ©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 16:Data MethodologyWe take online performance as a holistic concept. While size of the brand’scommunity and level of activity are important factors, the profile of the TG,the authority of the brand’s platforms and its recall are also equallyimportant ingredients.In calculating the ShackMatrix™, we assign weights to the different metricson individual platforms in order to combine them into a single comparablegrade that is relevant to the digital objectives of the brand.The weights are decided based on the relative effectiveness of the platformto a brand’s community as well as the brand’s own digital goals.Data Validity and IntegrityWe source the data from the brand’s official digital properties. Our scope isrestricted by the data made available through the APIs of the socialplatforms we cover.The coverage of data in this report is restricted to Facebook and Twitter.More detailed and granular metric studies are done for clients on a projectbasis.©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
    • 17:About ShackShack is a digital marketing company which brings together brands and theircustomers in carefully crafted, wholesome communities, providing exceptionalexperiences for all.We leverage communities for brands:In order to create and maintain buzz around your brand you need your targetaudience to form lasting relationships with your brand.We build platforms for the communities:Being a one-stop solution for all your community building and web-based marketingneeds, we craft comprehensive campaigns, based on careful strategy, encompassingan entire digital eco-system.We develop content for the platforms:Along with creating engagement tools both online and off-line we also encourage andfacilitate generation of remarkably effective and compelling content, in a methodicalmanner by our own team, and in a random manner, by your community members.We measure the impact on the brand:You need to monitor the impact that the campaign has on your brand. This impact isnot something hypothetical, it is hard, tangible, three-dimensional data that not onlytells you where you presently stand, but also tells you where you need to go andwhat path you need to follow with the help of Shack’s proprietary Digital EcosystemManagement tool. Website || Blog || Twitter ©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands