Value of Social Media and Word of Mouth by David Wolff, Fleishman-Hillard

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Value of Social Media and Word of Mouth by David Wolff, Fleishman-Hillard

  1. 1. The commercial opportunities of social media; thinkfirst, then act.David Wolff@zapachenetherlands.fleishmanhillard.com/ 1
  2. 2. 2
  3. 3. The unpredictable power of social media 3
  4. 4. Digital Influence Index > 1. INFLUENCIAL > 2. RESEARCH & POSITIONING > 3. SOCIAL NETWORKS & DECISION-MAKING > 4. CONFIDENCE IN INFORMATION > 5. PEER INFLUENCE VS STRANGERS > 6. TWITTER & INFORMATION OVERLOAD > 7. DIALOGUE VS SENDING http://www.slideshare.net/FHamsterdam/report-digital-influence-index-netherlands 4
  5. 5. What do I want to talk about?> The importance of search engines and eWOM in decision-making> Reputation or brand image? Silos and social media..> What is the current state of the market, are we ready for the next step?> The value of content and conversation> The real value of social media> How do you organize your social media-activities?> Social Media Checklist 5
  6. 6. Reputation or brand image? 6
  7. 7. Word of Mouth is nothing newhttp://www.cluetrain.com/ 7
  8. 8. DIRECT VISIBLE DEFINITEWOM = SUPERCHARGED! 8 8
  9. 9. 9 9
  10. 10. 10
  11. 11. Reviews 11
  12. 12. Reviews 12
  13. 13. If it is on Wikipedia it is true..? 13
  14. 14. Google Sidewiki: 14
  15. 15. DEFINITE: 80% of all internet-users starts with a search engine 20% of all queries are brand related 15
  16. 16. Social Media? 16
  17. 17. “Google isn’t a searchengine, it’s a reputation management system.” Clive Thompson, Wired 17 17
  18. 18. SOURCE: http://sncr.org/wp-content/uploads/2008/10/customer-care-study.pdfSOURCE: http://www1.emarketer.com/Article.aspx?R=1008019 18
  19. 19. The necessity of social media forCustomer Care 19
  20. 20. Quick and cheap reach?> Quicksilver video http://www.youtube.com/watch?v=6xfBNxNds0Q 20
  21. 21. Oops… 21
  22. 22. It can be worse: social media screw ups SOURCE: http://www.slideshare.net/socialmediainfluence/social-media-screw-ups 22
  23. 23. 23
  24. 24. “They’ve made it so easy for us. Nestle just don’t seem to have a good understanding as to what happens on the social space.“ Tracy Frauzel, head of digital communications at Greenpeace 24
  25. 25. Nestle: what went wrong?> They should have seen it coming> Not familiar with the dynamics of social media> Poor community management> No community guidelines> Censoring of the logo, the video and the discussions that came into existence, without a policy.> The impact of this story: – A negative case study – A brand problem (long term) – Criticism keeps coming 25
  26. 26. Could Nestle have been prepared? > Monitor and know your ‘opponents’ > Anticipate! > Make sure you have a platform – Besides existing social channels, also an ‘owned’ channel – Make sure that you are prepared for a ‘paid’ strategic solution > Select good community managers – Training – Take care of a clear process & policy – ‘Take the higher road’ > Make sure you have a community-policy > Continue to stay in dialogue. – Make smart moves towards constructive subjects. > Compose guidelines for social media 26
  27. 27. BRAND SOCIAL MEDIA REPUTATIONSOURCE: http://www.briansolis.com/2010/12/the-best-of-2010-hybrid-theory-and-the-future-of-marketing/ 27
  28. 28. So…> Word of Mouth is not new, but the impact has changed> The directness and definite visibility have influence on the decisions made by consumer> Search engines as reputation management systems> Search engines play a key role in decision making> From silos to social company: it is no longer possible to communicate from your silo without interfering with other silos> Reputation or brand image: social media is where they connect> The market seems to be ready for the next step.. 28
  29. 29. The value of Social Media 29
  30. 30. 30SOURCE: http://www.communicatieonline.nl/nieuws/bericht/bedrijven-wensen-onderzoek-naar-effectiviteit-social-media/
  31. 31. “..we run behind , our“..we need a Twitter- competitor also has a strategy…” Facebook Page…” “..we want to raise our share in the conversation…”“..Twitter is a great sales channel…” SOURCE: http://www.slideshare.net/mixtmedia/social-media-for-government-32309-1185070 31
  32. 32. From outside-in to inside-out 32SOURCE: Social Media Piramide (© SocialMediaModellen.nl)
  33. 33. Start with creating value: BRAND: ENGAGEMENT ACTIVATION OF THROUGH CREATE CONTENT CONTENT VALUABLE CONTENTSOURCE: http://www.theconversationprism.com/ 33
  34. 34. Community management is keySOURCE: http://nusum.wordpress.com/2010/06/14/what-makes-a-community-manager/ 34
  35. 35. SOCIAL CURRENCY 35
  36. 36. The example of good content 36
  37. 37. Which creates dialogue 37
  38. 38. Brands as publishers… 38 38
  39. 39. Why do people share information?– Acknowledgement– Attention– Respect– Approval– Safety– Identity– Sense of belonging > SOURCE; http://www.bijgespijkerd.nl/social-media/social-media-brengt-maslow- SOURCE:http://eatsleepsocial.com/2010/06/02/the-psychology-of-social- naar-de-massa currency/#more-307 39
  40. 40. The value of your Social currencySOURCE: http://blog.stevesponder.com/how-valuable-is-your-social-currency 40
  41. 41. It is about content, content, content.. SOURCE: http://www.marketingcharts.com/direct/overposting-drives-away-facebook-fans-16055/exacttarget-brand-unliking-on-fb-feb11gif/ 41
  42. 42. Value Exchange??> SOURCE: http://blog.cmbinfo.com/press-center-content/bid/46920/Consumers-Engaged-Via-Social-Media-Are-More-Likely-To-Buy-Recommend 42
  43. 43. SOCIAL BRAND VALUE INFORMATION CONVERSATION How many feel they exchange What share of your brand fruitful information with users recognizes and stirs others? buzz? INFORMATION CONVERSATION AFFILIATION AFFILIATION SOCIAL IDENTITY What share of your users has a sense of community? CURRENCY How many of your users can identify with other users? ADVOCACY IDENTITY UTILITY ADVOCACY How many act as disciples and UTILITY stand up for your brand? How many derive value from interaction with other users?SOURCE: http://www.vivaldipartners.com/pdfs/Vivaldi_Partners_Social_Currency_US_Report_2010WEB.pdf 43
  44. 44. Relation with premium pricing SOCIAL BRAND PREMIUM CURRENCY LOYALTY PRICING 53% BRAND LOYALTY CAN BE EXPLAINED CORRELATION 73% BY SOCIAL CURRENCY BRAND CONSUMER SOCIAL CURRENCYSOURCE: http://www.vivaldipartners.com/pdfs/Vivaldi_Partners_Social_Currency_US_Report_2010WEB.pdf 44
  45. 45. Advocacy vs NumbersSOURCE: http://images.fastcompany.com/magazine/145/next-44-tech-currency-infograph.jpg 45
  46. 46. Social context vs social presenceSOURCE: http://images.fastcompany.com/magazine/145/next-44-tech-currency-infograph.jpg 46
  47. 47. Information value vs entertainment valueSOURCE: http://images.fastcompany.com/magazine/145/next-44-tech-currency-infograph.jpg 47
  48. 48. Social currency for whom?SOURCE: http://images.fastcompany.com/magazine/145/next-44-tech-currency-infograph.jpg 48
  49. 49. Engagement is differentiating for brands SOURCE: http://www.engagementdb.com/downloads/ENGAGEMENTdb_Report_2009.pdf 49
  50. 50. Conversation: Gatoradefrom Community Management to Command CentersSOURCE: http://www.youtube.com/watch?v=InrOvEE2v38SOURCE: http://online.wsj.com/article/SB10001424052748703466704575489673244784924.html 50
  51. 51. So…> 80% of the market is still in the experimental stage> To make the next step there are two important mindshifts necessary – Conversation (community management) – Continuously create value (content strategy)> From outside-in to inside-out is a big step for companies> Social currency is the lubricant of social interaction: what value do you add as a brand for consumers to be able to interact> Social currency is a must for brands on social media> Engagement: involvement amongst consumers themselves is one of the powerful ‘drivers’ for brands 51
  52. 52. How? 52
  53. 53. 80% of the market is still in the tactical stage of social media 53
  54. 54. The step from tactical to integrated… SOURCE: http://www.socialmediaexplorer.com/social-media-marketing/social-media-strategy-learning-curve-and-framework/ 54
  55. 55. Social Business Analyses•Map social media initiatives Collaboration •Create guidelines, protocols and Install•Analyze existing content compliance•Map of tracking systems •Install cross disciplinary team •Develop SM strategy •Train directly involved employees•Map social media objectives •Make sure of consensus •Develop content strategy •Train the other employees•Etc,….. •Define joint objectives •Develop measurement strategy •Produce a toolkit and templates •Etc …. •Etc… •Etc… Analyse Develop 55
  56. 56. OrganizeSOURCE: http://www.altimetergroup.com/ 56
  57. 57. Organize: who decides?SOURCE: http://www.altimetergroup.com/ 57
  58. 58. Organize: Roles & Responsibilities Department CorpComm Marketing Function Brand & Business Lead Lead Objectives Digital Content Contribute Contribute Digital Distribution Lead Lead Lead, Two-Way, Public- Listen, Respond & Facing Conversations Engage *with Customer Care team 58
  59. 59. Develop: Content strategySOURCE: http://www.ia-experience.com/ 59
  60. 60. Develop: Measurement strategy EXPOSURE ENGAGEMENT INFLUENCE ACTION To what degree have Who is interacting & How we influenced we created exposure engaging with our What actions if any has the perceptions & attitudes to content and content? How and target taken? of the target message? where? Possible Financial Non-Financial Impact Impact/ROISOURCE: http://www.socialmediaexplorer.com/online-public-relations/the-digitization-of-research-and-measurement-in-public-relations/ 60
  61. 61. Issue-analysis 61
  62. 62. Delete Policy 62
  63. 63. Exit-strategy 63
  64. 64. Checklist social media> Determine your position> Monitor> Organization-model> Roles & Responsibilities> Strategy> Content strategy> Measurement strategy> Exit strategy> Community management> Issue-management> Escalation process> Delete policy 64
  65. 65. So…> To get more value from your social media-strategy, you have to be well prepared and organized: from outside in to inside out> Make sure of the integration of and consensus within silos> A good content strategy is the basis of your social media-activities> Make sure of a well integrated measurement strategy for different objectives and levels> Standardize processes 65
  66. 66. Think first, then act…> Social media moves through and effects all departments and layers of an organization> A next step is only possible as a result of good organization and integration of silos and joint strategy> For exchange value you as a brand have to create the right value for your specific target group> The real value of social media is in good content, conversation and connected consumers through your brand 66
  67. 67. David.wolff@fleishman.comTwitter: @zapachenetherlands.fleishmanhillard.com/ 67

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