KEY POINTSDramatic increase to total media consumption in the next decade, by 2020… that’s over 10 hours a day!The “mix” of media is also dramatically changing,… where by 2020 80% of media is expected to be digitalUnderstanding and managing these changes is critical to meeting consumers needs and expectations
KEY POINTSSocial media delivers global reach… immediatelyWe now have the ability to learn from consumers on a global scale… better understanding market and demographic impact to product, consumer relations, and mediaBy 20141.8 billion social network users are anticipatedLargest growth and size is in APAC (China is most of that)Social media is CRITICAL to reaching and understanding consumers in these markets (and all markets)
KEY POINTSGiven the proliferation and changes in media… The path to purchase is increasingly complexConsumers have more options to get information… but they also have new roles in this ecosystemAND given the real-time nature of digital… Expectations are changing tooWhile core expectations like Quality, Price, Delivery, etc. remain similar… the REAL/TIME nature and immediate need for gratification creates a HYPER-COMMERCE
Good list of social media “super stars” http://money.cnn.com/gallery/technology/2013/01/17/best-companies-social-media-stars.fortune/index.htmlBUT NOTE that this does NOT mean they are doing everything in Level 3 (only that they are innovative, executing well, etc.)
KEY POINTSMore detail to the “trend” slide (#7) re the role of the consumer and the complex purchase decision processImproving customer relationships and experiences requires us to pay attention to where the consumer is in the purchase funnel“Service Level” is a business-oriented KPI that may be measured and tracked using social mediaThis chart shows that social media channels are the most popular means (cumulatively) of consumers getting information about brands
KEY POINTSDown stream (the lower funnel)… digital methods are also very important… consumers tend to call for more complex issuesBUT ALSO… the issue of TRUST is critical here… where 51% of consumers trust an online forum more than the brand’s website.We ALSO see that younger consumers are even more likely to use online forums… and as that demographic grows… digital will increase in importanceSERVICE LEVEL (e.g., the number of brand responses, the speed of brand response, customer satisfaction and sentiment as well advocacy) CAN BE MEASURED USING SOCIAL MEDIA DATA
KEY POINTSROI has been and continues to be a “flashpoint” for social media. In the early days the “talking heads” even looked down on those who tried to quantify the value of social mediaWe heard things like “What is the ROI – the Return on Ignoring” or “Its only about the conversation”But as technology and analytics improved, it became clear that we can not only capture social media conversations but execute and manage social media initiativesIn 2012, we saw more big data deployments and better access to the data… and some strides with accountabilityBUT Volume… Velocity… and Variety (the common definition of big data)… is not a Measurable Business Objective… let alone ROISo…. We are optimistic that two things will take hold in 2013 (1) VERACITY… better data and (2) ACCOUNTABILITY
KEY POINTSWe see 4 types of analytic approaches to measure performance (to ROI): Notional, Correlation/Metrics, Surveys/Testing, Advanced AnalyticsThere are variations and permutations of theseALSO, it is worth noting that these may be done on an ad hoc or project basis… or systemized in a solution/platformDetermining the right approach means considering the precision + accuracy of the ROI measurementMany companies start on the left and move to the right
KEY POINTSAnalyzing customer value is another important approach to measuring and optimizing performance (media, campaign, program, etc.)… This graphic illustrates how social media metrics may be configured for KPIs such as Awareness, Engagement, AdvocacyFurther, those KPIs need to be “born from” real business objectives. For example “Increase Engagement” is not a good business objective but “Increase New Registrations” IS. How does engagement help increase new registrations. See this article for good fodder: http://www.businessesgrow.com/2013/01/06/social-media-engagement-is-not-a-strategy/A final point, when the data is complete… these types of analyses and measurement can be done at a Segment level… how does value differ by region, by demographic, etc.
KEY POINTSAnother great social media objective is improving brand and consumer insightsMost legacy research firms and data providers are integrating social media into their portfolio… there are also new players that focus on social media first or social media onlyEmotion is one example of better insightsIn a recent, comprehensive ARF study of the consumer decision process… social media posts were analyzed to understand how emotions changed through the decision processTop Line trends (interpreting the graph)Joy grows considerably at post-purchaseAnticipation is highest at Problem Recognition and Purchase DecisionNegative emotions (annoyance, anger disgust are consistent through the process)Interest changes dramatically through the processPOTENTIAL Q&AWhat sector is this for? The research is a composite of multiple sectors. Grocery, Electronics, and Automotive were featured in the studyHow do you “calculate emotion”? The emotion taxonomy is based on the work of Robert Plutchik who developed the “Wheel of Emotions” in 1980. Emotions were likely coded by analysts for this study but methods are emerging (and improving) to use Natural Language Processing (NLP) and Machine Learning (ML) algorithms to automatically code emotion
KEY POINTSMany of the objectives on the prior pages are delivered in the market place through ad hoc projects and research or measurement studiesThe “next frontier” is to operationalize the analytics through standard reporting or dashboard solutions
KEY POINTS- Covered several measurement and insight related topics for digital fitness… reminder that digital fitness is about value creation and requires the proper data, analytics, processes, and org structure
Confidential & ProprietaryBaking new Brand X Recipe for Suzy‟s party.She loves itDay in the Life of today‟s ConsumerMom blogging Recipe Look Up Menu building Mom tweetsMom-BlogPlanning Suzy‟s birthday party.Looking for menu ideas for 10 kids.Rep engagesDietician responds Mom at grocery storeRep texting replyDoes itContaingluten?No urgood.Try DirtCupsdesert.Yum!No ur good.For desserttry thesehttp://tinyurl/uwc87sYum!I „mdiabetic.R theseok?Mom continues …@mom Good luck w/recipe. My kids love it!Txt 57238 if u get stuckAlso click onthis link forcouponhttp://tinyurl/uwc87sMaybe Try Sugar Freeinstead. Here is the link toour recipe.http://tinyurl.com/cRT67v.
Confidential & ProprietaryDay in the Life of today‟s ConsumerClicks photo of itemstill looking for;buysonlineMom-BlogBday party big success http://twitpic.com/.New recipe was so easy see recipe @brandxsite!Speech Recognition &Customer Hold MessagingMom connectedwith IVRChecks out website…clicks on icon to callMom checks out Mom blogs to 5,000 readersI just want totalk to aperson.Bypass!Join ourInnovationCommunity, to sign up…Speaks with techsavvy RepHave you tried thisrecipe? I will sendyou a coupon.
Confidential & ProprietaryDay in the Life of today‟s ConsumerMom & Rep enter chatsession to locate productMom receives email … joinsInnovation Community and moreRep: Hi Mrs. MomMom: HiMom: I am looking for GoldenOreos MinisRep: I will take you to theNetgrocer website we can shoptogether.Mom: Thanks I will submit theorderRep: Have a nice day. Bye.Receives text via TextMessaging ServiceVideoconferencetomorrowLeverage your most important asset to create strategic business advantage
Confidential & Proprietary5Do consumers want engagement with brands?
Confidential & ProprietaryWhat if… we looked at the business value differently?6Multi ChannelCustomerEngagementstoremobile social webemail@PhoneWHY?VOCWHAT CONSUMERS SAY? WHAT THEY DO? WHY THEY DO WHAT THEY DO? WHERE & HOW THEY DO WHAT THEY DO?MORECHANNELSMOREACCESS
Confidential & Proprietary2013 Trends in Customer Service & Contact Centers*7• Mobile• Social Media• Community-based service• VOC Analytics• Next Best Action• Proactive customer service• The Cloud• BPA• Cross-channel/Agile• Knowledge/Content Management*Kate Legget – Forrester Research, September 2012
Confidential & ProprietaryAgendaTrends in the MarketDigital FitnessTrends in Corporate9
Confidential & Proprietary♦Global Media Consumption per WeekMedia Consumption is Changing10Source: Carat1900 1920 1940 1960 1980 2000 20201008060402002020: 80% of All Media Digital2010: 66% of All Media Digital2007: 50% of All Media Digitalhours
Confidential & ProprietarySocial Media Delivers Global Reach♦ Number of Social NetworkUsers Worldwide– 1.4 billion at the endof 2012♦ Largest Social NetworkingRegion– Asia-Pacific, withnearly 616 millionusers♦ Country with the Most SocialNetwork Users– China, with morethan 307 million in2012, nearly doublethe number in theUS♦ Countries Where SocialNetworking is Growing theFastest– India and Indonesia,which will each see50%+ growth inusers this year11♦ Social Network Users Worldwide• Internet users who use a social network site via anydevice at least once per month493.5615.9745.6 853.7164.9191.8215.9236.9163.9174.7181.9189.2139.0157.4176.5192.7111.1148.5183.0211.6129.8145.3159.4170.80MM200MM400MM600MM800MM1,000MM1,200MM1,400MM1,600MM1,800MM2,000MM2011 2012 2013 2014Asia-Pacific Latin America North AmericaEastern Europe Middle East & Africa Western EuropeSource: eMarketer Feb-20121,202.21,433.51,622.41,854.723%19%16%12%
Confidential & ProprietarySocial Media is 24 712• In a recent social media study for Nestlés ice cream brands, it was discovered that the largestday segment for ice cream conversation occurs at prime time and the late night.• These consumers tend to participate in Life Sharing activities such as “I’m watching myfavorite movie while eating my favorite ice cream, Haagen Dazs!”.• At other times of the day, topics such as Health are more prevalent (noon to 5).
Confidential & ProprietarySocial Media PlayersUsers Typical User Profile Best For Secret Weapon845+ million Largest segment is 21-24, followed by 18-20 yearoldsPersonal interaction Houses all informationabout your brand in oneplace572+million 55% female 42% are 31-49 42% are 18-29Monitoring conversationsabout your brandIdentify new consumersand engage withinfluencers150 million 51% male 25–54Networking and sharingprofessionalaccomplishmentsJoin groups and engagein Q&A800+ million 18-34 70% outside USSharing videos andcontent partnershipIn-stream ads11 million >80% female Affluent 25-44Images and photography Driving social mediapurchases100+ million 70% male Leans towardsprofessionalsStarting conversationsand adding people to itCircles80 million TBD Influencer Marketing Mobile78 million 18-44 Reviews Mobile
Confidential & ProprietaryPaths toPurchase• The root of the importance is more about the consumer than the mediaSocial Media is Pretty Important14Roles ofthe ConsumerExpectationsof the ConsumerRadioSocial Media DisplayTelevision Out of HomeDigitalPrintPurchaseAssess MotivateParticipateQuality ServicePrice Delivery Control
Confidential & ProprietarySocial Media is the Consumer’s Ballpark♦ The Role of a Brand• Brands are sometimes invited to:15♦ People Tend not to Trust the Brand• “When forming an opinion of a company,if you heard information about a companyfrom each person, who credible would theinformation?”• (Percent responding “very credible” or “extremelycredible”)0% 10% 20% 30% 40% 50% 60% 70%Govt Official or RegulatorCEOFinancial or Industry AnalystNGO RepresentativeRegular EmployeeA Person Like YourselfTechnical Expert in the CompanyAcademic or Expert20%38%46%50%50%65%66%68%PlayWatchUmpireSellTailgateSource: Edelman Trust Barometer Jan-2012
Confidential & ProprietaryThere is an Invitation…16• …brands start by listeningKey QuestionBrandSentimentConversationDriversTime of DayAnalysisTopicAnalysisInfluenceAnalysisCompetitiveBenchmarkingHow do consumers view mybrand?+What are the primary factorsthat influence theconversation?+What trends influence myengagement strategies?+ + +Who or where are our mostvaluable or influentialcustomers?+What are my competitorsdoing? Am I winning?+
Confidential & ProprietaryAgendaTrends in the MarketDigital FitnessTrends in Corporate17
Confidential & ProprietaryThe “Moneyball” Approach to Winning18Right MetricsData AccessSupportiveManagementRelentlessEvaluationRuthlessEfficiency
Confidential & ProprietaryBuilding the Capability19BusinessStrategySocialMediaStrategySocialMediaPlanningListening, Monitoring & ReportingResearch & Insight DevelopmentMeasurement & AnalysisConsumer Engagement Community ManagementSocial CRM Social CommerceSocial Media Planning & BuyingContent Strategy & PlanningCommunications PlanningInfluencer & Advocacy Management
Confidential & ProprietaryUnderstanding Social Ownership20CentralizedDecentralizedHub & SpokeHolistic“Dandelion”♦ Social Ownership is Typically Distributed Across theOrganization– Nearly half of companies report that social mediaefforts are either highly centralized or completelydecentralized♦ The Evolution of Social Business• “In which department does your core Social Media teamreside?”0% 10% 20% 30% 40%OtherDigitalSocial MediaCorp Comm/PRMarketing5%14%14%26%40%Base: 125 respondents with over 1,000 employeesSource: Six Stages of Social Business Transformation, Mar-2013
Confidential & ProprietarySocial Media Maturity21BusinessTransformationBusinessEffectivenessBusinessEfficiency321LevelLevelLevelInnovateImproveLearnSocialObjectivesSocialInfrastructureLevel 3 Business Integration Strategic business goals and ROImeasurement Executive leadership Social governance Enterprise applicationsValueLevel 2 Focus Common engagement solutions Live access to social data via BI Dedicated team and/or COE Establish enterprise architectureLevel 1 Focus Common listening tools and processes Weekly or monthly reporting Emerging teamLevel 3 Focus Enterprise platforms Data integration Policy and procedure Enable flexibility & agility Innovation & valueLevel 1 Assess and Learn Social Understand channel usage Assess the conversation Count mentions and sentimentLevel 2 Engagement Amplify the good and address consumerissues Drive purchase considerations Improve customer satisfaction
Confidential & ProprietaryDataAnalyticsOrganizationProcess Audit data sources Integrate and standardize data from multiple media Collect market research and brand studies Clearly define all business objectives Determine KPIs Define analytic methodology/needs Identify social/analytic champion and owner Identify system and technology inputs Collaborate across consumer relationship, media, analytic andresearch functions Audit planning processes Collaborate across data and analytic functions Assess reporting processTypical Next Steps22
Confidential & ProprietaryAgendaTrends in the MarketDigital FitnessTrends in Corporate23
Achieving Business Objectives:In and With Social MediaValue Creation In Social Value Creation With Social24Improve customer experience & relationships Planning Generate better brand and consumer insightsImprove performance Performance Measure and analyze brand healthOptimize customer value Optimization Optimize media spend & marketing programsCollaborate with customer Innovation Drive new products and services
Confidential & ProprietaryImprove Customer Experience and RelationshipsIN Social Media25PLANNINGService LevelPERFORMANCEROIOPTIMIZEConsumer LifecyclePLANNINGBrand andConsumer ResearchIntegrated Reportingand AnalysisProblem RecognitionInformationSearchCompetitiveEvaluationPurchaseDecisionPost-PurchaseSocial media plays a very different role based on where the CPGconsumer is in the purchase funnelA recent ARFstudy, found thatconsumers in groceryare most likely to getinformation frombrand/companywebsites.However, social mediasources (highlighted ingreen) play the morepredominant role.0% 10% 20% 30% 40% 50% 60%Friends/followers on social networksFan/brand pages on social networksBlogsComparison-shopping sitesSearch enginesReviews: profession/expertReviews: consumer-generatedBrand/Company websiteOnline-only retailerOther retail websitesVideo websitesOnline advertisingDaily-deal sites
Confidential & ProprietaryImprove Customer Experience and RelationshipsIN Social Media26PLANNINGService LevelPERFORMANCEROIOPTIMIZEConsumer LifecyclePLANNINGBrand andConsumer ResearchIntegrated Reportingand AnalysisSocial media plays a very different role based on where the CPGconsumer is in the purchase funnelCompetitiveEvaluationProblem RecognitionInformationSearchPurchaseDecisionPost-Purchase43%51%And 37%…use online forums to sortout a problem with a productor a serviceAnd if you account for age…52% of customers 16-24 useonline forums.Avaya and BTThe AutonomousCustomer, 2012Also, when aconsumer requiressupport or productadvice, they preferdigital methods andonly call about morecomplex issuesFurther, about half ofconsumers trust onlinecustomer forums thana brand website.
Confidential & ProprietaryPLANNINGService LevelPERFORMANCEROIOPTIMIZEConsumer LifecyclePLANNINGBrand andConsumer ResearchIntegrated Reportingand AnalysisImprove PerformanceIN Social Media27Before 2010The Talking Heads2011 – 2012Big Data2013Accountability?Volume• Turn 12 terabytes of Tweets created each dayinto improved product sentiment analysis?Velocity• Sometimes 2 minutes is too late?• Analyze 100 million daily call detail records inreal-time to predict customer churn faster?Variety• Integration text, sensordata, audio, video, click streams, log files andmore?Veracity1 in 3 business leaders don‟t trust theinformation they use to make decisions.“41% of more than 1,000companies and agencies surveyedhad “no return on investmentfigure for any of the money theyhad spent on social channel as ofOctober 2011.”eConsultancy, State of SocialReport, November 201
Confidential & ProprietaryPLANNINGService LevelPERFORMANCEROIOPTIMIZEConsumer LifecyclePLANNINGBrand andConsumer ResearchIntegrated Reportingand AnalysisImprove PerformanceIN and WITH Social Media28NotionalCorrelation andMetric AnalogsSurveys orMultivariate TestingAdvanced AnalyticsDescriptionA template provides allrelevant value and cost lineitems, users enter databased on limited analysisand general experienceHistoric social data is analyzedand correlated to generallyaccepted media metricsConsumers and tactics aresegmented. A survey providesinsights about purchase behavior.An analysis of media spend, digitalmedia performance and sales dataprovides model coefficients toscore segments based on value.Individual-level modelsthrough attributionmodeling, transactionalanalysis and media weightingto provide real-time FanvaluationValuation LevelBroad Segments Consumer Segments Consumer Segments Segments to IndividualsStrengths• Very easy to completeand low cost• Provides a basic “proofpoint”• Reasonably easy to complete• Connects volume-metrics tounderstand and quantifyrelationships• The value of an “incrementalconsumer” is quantified• May be leveraged for moreadvanced solutions• Segment value• Accurate and preciseunderstanding of value• Highly actionable forcommunications planning andcampaign development• Can provide weekly update andunderstanding• Highly accurate andprecise understanding ofvalue• Highly actionable includingreal-time decisioningWeaknesses• Only averages• Too imprecise to makeactionable marketingdecisions• Likely a temporary solution asmedia use expands• Requires 12+ months of datafrom multiple sources• Does not account for allconsumer segments• Requires data from multiplesources, sometimes difficult tosecure• Data may require significantcleansing• Surveys may need to belongitudinal• Requires data frommultiple sources• Data may requiresignificant cleansing• Solution may provide toomuch functionality
Confidential & ProprietaryPLANNINGService LevelPERFORMANCEROIOPTIMIZEConsumer LifecyclePLANNINGBrand andConsumer ResearchIntegrated Reportingand AnalysisGenerate Better Brand and Consumer InsightsWITH Social Media30• Social media has the potential to reveal theconsumer‟s emotion at each phase of the purchasecycle♦Emotions at Each Purchase Stage
Confidential & ProprietaryPLANNINGService LevelPERFORMANCEROIOPTIMIZEConsumer LifecyclePLANNINGBrand andConsumer ResearchIntegrated Reportingand AnalysisAchieving Business Objective IN and WITHSocial Media31♦ Social Reporting• Monthly reporting of brand mentions and sentiment,important topics, key influencers♦ Performance Reporting• Monthly to quarterly reports that quantify businessobjectives through KPIs built on media metrics♦ Advanced Reporting• Advanced analytics to quantify contributing factors toKPIs, effect of spend and relationship between KPIs andvalue♦ Performance Dashboard• Performance media reporting delivered through a dynamicdashboard♦ Analytic Platform• In addition to the Dashboard functionality, advancedanalytic tools to optimize and manage the tradeoffs thatimpact KPIs (e.g., media spend) and value (e.g., ROI)