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Brands: The Cost of Being Human	   @jenvandermeer	   EVP, Services Dachis Group	   SXSW, 2012    #SXhumancost
A Story in 3 Acts:1. Brands2. The Cost3. Of Being Human
I calculate ROI in my sleep
BRANDS
I was talking to some socialbusiness executives a few days ago
and a few nights ago
what does your company’s socialbusiness budget look like?Informal survey over cocktails of 10 Fortune 500 consumer brand m...
what does your company’s social business budget look like?        Staff to manage        Tools                            ...
Staff to manage     2010                          2010                                            2012E    1.5 FTE        ...
paid media to drive social efforts    2010                          2010                                         2012E  $R...
Staff/media: the olive ratio      2010                         2010                                            2012EInform...
This sets up a conflict                                    vsInformal survey over cocktails of 10 Fortune 500 consumer bra...
This sets up a conflict     social    business     vs       cmo     team
This sets up a conflict     social    business     vs       cmo     team
This sets up a conflict     Cluetrain   vs       Madmen
This sets up a conflict    Authentic      vs     Reach!   Conversation!
This sets up a conflict     Give me              Get me more                 vs    headcount!                fans!
This is a false conflict.
To re-connect thebrand back to thepeople, we’regoing to need toalign the vision                    Dave Gray’s sketch
Branding didn’t start here.
It started here.
And then HERE.
Oh, and here.
“When it rains, it pours.”Which       “It’s toasted.”created a   “A diamond is forever.”need forTHEM...     “Reach out and...
and THIS...
Whenever there’san advancement intechnology......someone figures out how to use thattechnology to stimulate the economy.
and wetried. sovery hard.
and we stepped oneach other’s toes.
and we gotinto falsearguments.
but then thebusiness value wasfound.
But the revolution didNOT actually happen.
Because we are still stuck.                         In HERE.
but this this happened...
and then THIS!!!!!!!
SO great.
the market moved from here14th Street and 9th Avenue 1911
to here in 100 years14th Street and 9th Avenue 2011
and back again14th Street and 9th Avenue 2011
so howdo wetalk
to all of these people.
TheCOST
But I still want to know....How do I get moreheadcount.I’m tired.
But that’snot thepoint.
2 Case Studies: _ Small business _ Complex global multibrand jumbocorp
The following numbers are imaginary, for illustration purposes only.please do not quit your day job to start a mutton hone...
Food truck social business ROI inputsTime frame: 2008 - 2012Food Trucks: 1Employees: 1% FTE dedicated to social media: 10%...
Social data       Twitter > Bit.ly Clicks   Foursquare Redemptions15001125750375   0          2008         2009      2010 ...
Incremental Revenue Per Year                       Incremenatal Revenue150001125075003750    0          2008         2009 ...
ROI calculation                 Year 0          2008     2009      2010    2011     2012 Revenue                         $...
What did we learnWorfklow to capture ROI dataValue is not the individual transaction level but thelonger term spend, and r...
Case 2: BigMultinationalBrand
Bigger staffs #FAILYou can’t staff into capitalizing on engagement @ scale          #FAIL                      11         ...
BRANDS:THE COSTOF BEING HUMAN
WE CARE ABOUT THISBECAUSE
“Fans”          spend            $72                more on products than “non-fans”Syncapse 2010
People who follow   brands on   Facebook are  51%                                              more likely to buy a produc...
People who   follow brands   on Twitter are  67%                                     more likely to buy a                 ...
PRE-INTERNET:BRAND BUILDINGAll about meaning.Unreliable measurement.
INTERNET:                    PRE-INTERNET:MEASUREMENT                  BRAND BUILDINGDirect response model.       All abou...
SOCIAL:MEANING AT SCALEThe best medium for measurable brandexpression.Companies that are active in socialperform better th...
By giving      And now, weBy finding   advocates      can measureadvocates    interesting    the impact of             thi...
What will we see when we look at thesocial data?
Great brands grow because they  connect deeply with peopleBrands as diverse as Method, Red Bull,Lindt, Petrobas, Samsung, ...
Top 50 brands pursuefundamental human valuesthat improve people’s lives:
1. Eliciting Joy: Activating experiences ofhappiness, wonder, and limitlesspossibility.
2. Enabling Connection: Enhancing theability of people to connect with each otherand the world in meaningful ways.
3. Inspiring Exploration: Helping peopleexplore new horizons and newexperiences.
4. Evoking pride: Giving people increasedconfidence, strength, security, and vitality.
5. Impacting Society: Affecting societybroadly, including by challenging thestatus quo and redefining categories
Where do I get my headcount? Wrongquestion.It’s time for us to become performancebrand markters.To reconnect the brand bac...
THANK YOU.@jenvandermeer#SXhumancost
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Brands the cost of being human sxsw 2012

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Brands, social media, ROI, social business, measurement, performance, community management, brand strategy, humanity

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Brands the cost of being human sxsw 2012

  1. 1. Brands: The Cost of Being Human @jenvandermeer EVP, Services Dachis Group SXSW, 2012 #SXhumancost
  2. 2. A Story in 3 Acts:1. Brands2. The Cost3. Of Being Human
  3. 3. I calculate ROI in my sleep
  4. 4. BRANDS
  5. 5. I was talking to some socialbusiness executives a few days ago
  6. 6. and a few nights ago
  7. 7. what does your company’s socialbusiness budget look like?Informal survey over cocktails of 10 Fortune 500 consumer brand marketers - median
  8. 8. what does your company’s social business budget look like? Staff to manage Tools 4% 7% Custom Development 7% Agencies Media 10% Commerce 2%10% 15% 12% 39% 60% 11% 10% 31% 21% 24% 26%11% 2010 2011 2012E $Small $Still small Still only 1% of total marketing spendInformal survey over cocktails of 10 Fortune 500 consumer brand marketers - median - not statistically significant.
  9. 9. Staff to manage 2010 2010 2012E 1.5 FTE 3 FTE 7-8 FTEInformal survey over cocktails of 10 Fortune 500 consumer brand marketers - median - not statistically significant.
  10. 10. paid media to drive social efforts 2010 2010 2012E $Rounding $See what Becoming best friends error you can do with my Facebook repInformal survey over cocktails of 10 Fortune 500 consumer brand marketers - median - not statistically significant.
  11. 11. Staff/media: the olive ratio 2010 2010 2012EInformal survey over cocktails of 10 Fortune 500 consumer brand marketers - median - not statistically significant.
  12. 12. This sets up a conflict vsInformal survey over cocktails of 10 Fortune 500 consumer brand marketers - median - not statistically significant.
  13. 13. This sets up a conflict social business vs cmo team
  14. 14. This sets up a conflict social business vs cmo team
  15. 15. This sets up a conflict Cluetrain vs Madmen
  16. 16. This sets up a conflict Authentic vs Reach! Conversation!
  17. 17. This sets up a conflict Give me Get me more vs headcount! fans!
  18. 18. This is a false conflict.
  19. 19. To re-connect thebrand back to thepeople, we’regoing to need toalign the vision Dave Gray’s sketch
  20. 20. Branding didn’t start here.
  21. 21. It started here.
  22. 22. And then HERE.
  23. 23. Oh, and here.
  24. 24. “When it rains, it pours.”Which “It’s toasted.”created a “A diamond is forever.”need forTHEM... “Reach out and touch someone.” “Be all you can be.”
  25. 25. and THIS...
  26. 26. Whenever there’san advancement intechnology......someone figures out how to use thattechnology to stimulate the economy.
  27. 27. and wetried. sovery hard.
  28. 28. and we stepped oneach other’s toes.
  29. 29. and we gotinto falsearguments.
  30. 30. but then thebusiness value wasfound.
  31. 31. But the revolution didNOT actually happen.
  32. 32. Because we are still stuck. In HERE.
  33. 33. but this this happened...
  34. 34. and then THIS!!!!!!!
  35. 35. SO great.
  36. 36. the market moved from here14th Street and 9th Avenue 1911
  37. 37. to here in 100 years14th Street and 9th Avenue 2011
  38. 38. and back again14th Street and 9th Avenue 2011
  39. 39. so howdo wetalk
  40. 40. to all of these people.
  41. 41. TheCOST
  42. 42. But I still want to know....How do I get moreheadcount.I’m tired.
  43. 43. But that’snot thepoint.
  44. 44. 2 Case Studies: _ Small business _ Complex global multibrand jumbocorp
  45. 45. The following numbers are imaginary, for illustration purposes only.please do not quit your day job to start a mutton honey truck or anyfood truck without doing a thorough ROI analysis.
  46. 46. Food truck social business ROI inputsTime frame: 2008 - 2012Food Trucks: 1Employees: 1% FTE dedicated to social media: 10%Cost of employee: $14k first year, increasing 3%every year but really am much more fulfilledInvestment in social media: 1 iPhone which lastedfor 5 years and never fell into the deep fryer
  47. 47. Social data Twitter > Bit.ly Clicks Foursquare Redemptions15001125750375 0 2008 2009 2010 2011 2012
  48. 48. Incremental Revenue Per Year Incremenatal Revenue150001125075003750 0 2008 2009 2010 2011 2012Value of each Foursquare redemption: $60 yearly share of wallet + average oneadditional customer referred who had a $60 yearly spend
  49. 49. ROI calculation Year 0 2008 2009 2010 2011 2012 Revenue $480 $720 $1920 $5400 $1440iPhone Cost -$400Costs x Year -$1400 -$1540 -$1694 -$1864 -$2050Profit x Year -$920 -$820 $226 $3537 $12350 $14373 - $400 = $13973 = 35X ROI!! $400
  50. 50. What did we learnWorfklow to capture ROI dataValue is not the individual transaction level but thelonger term spend, and referral valueROI does not kick in until scale acceleratesBut... there are limits to growth
  51. 51. Case 2: BigMultinationalBrand
  52. 52. Bigger staffs #FAILYou can’t staff into capitalizing on engagement @ scale #FAIL 11 + 33 = .37 + .25Deleted slides here on cost of command centers -Contact directly to talk about how to think about this.
  53. 53. BRANDS:THE COSTOF BEING HUMAN
  54. 54. WE CARE ABOUT THISBECAUSE
  55. 55. “Fans” spend $72 more on products than “non-fans”Syncapse 2010
  56. 56. People who follow brands on Facebook are 51% more likely to buy a product post-connection. 60% more likely to recommend a product post- connection.Constant Contact and Chadwick Martin Bailey 2011
  57. 57. People who follow brands on Twitter are 67% more likely to buy a product post-connection. 79% more likely to recommend a product post- connection.ROI Research for Performance, June 2010
  58. 58. PRE-INTERNET:BRAND BUILDINGAll about meaning.Unreliable measurement.
  59. 59. INTERNET: PRE-INTERNET:MEASUREMENT BRAND BUILDINGDirect response model. All about meaning.Metrics, but less meaning. Unreliable measurement.
  60. 60. SOCIAL:MEANING AT SCALEThe best medium for measurable brandexpression.Companies that are active in socialperform better than those that are not.
  61. 61. By giving And now, weBy finding advocates can measureadvocates interesting the impact of things to advocacy do, together At scale
  62. 62. What will we see when we look at thesocial data?
  63. 63. Great brands grow because they connect deeply with peopleBrands as diverse as Method, Red Bull,Lindt, Petrobas, Samsung, and Zappos –were built not just on innovative productor service ideas but on IDEALSMillward Brown Stengel Study on Business Growth Jan 2012
  64. 64. Top 50 brands pursuefundamental human valuesthat improve people’s lives:
  65. 65. 1. Eliciting Joy: Activating experiences ofhappiness, wonder, and limitlesspossibility.
  66. 66. 2. Enabling Connection: Enhancing theability of people to connect with each otherand the world in meaningful ways.
  67. 67. 3. Inspiring Exploration: Helping peopleexplore new horizons and newexperiences.
  68. 68. 4. Evoking pride: Giving people increasedconfidence, strength, security, and vitality.
  69. 69. 5. Impacting Society: Affecting societybroadly, including by challenging thestatus quo and redefining categories
  70. 70. Where do I get my headcount? Wrongquestion.It’s time for us to become performancebrand markters.To reconnect the brand back to ourselves.
  71. 71. THANK YOU.@jenvandermeer#SXhumancost

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