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Creating a social media strategy for a tourism business | Block 2: Social Tourism


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Creating a social media strategy for a tourism business
Block 2: Social Tourism
International Master in Hospitality and Tourism Management
ESCP Europe - Cornell University School of Hotel Administration

Published in: Technology

Creating a social media strategy for a tourism business | Block 2: Social Tourism

  1. 1. Creating a social media strategy for a tourism business Block 2: Social Tourism International Master in Hospitality and Tourism Management January 9th, 2013 Francisco Hernández fran.meThis document has been produced by 11 Goals & Associates. It is not complete unless supported bythe underlying detailed analyses and oral presentation.
  2. 2. About me SHAMELESS SELF-PROMOTIONEducation: Universidad Politécnica de Madrid, UNED,London Business School, University of Chicago – Fundaciò“laCaixa” & Fundación Rafael del Pino scholarships.Firms worked for full-time: Abengoa, McKinsey&Co, ABNAMRO, Real Madrid C.F.Entrepreneurship: CrisaliaSocial Media & Internet consulting: 11goals.comLectures & Speaker in 3 continents: The Wall Street Journal, Universidad Politécnicade Madrid, London Business School, Cornell University, Politecnico di Milano, CEIBS(Shanghai), Kungliga Tekniska högskolan, The Business Factory, Asociación J.W.Fulbright Spain, ESCP Europe, UIMP, and several private companies.Full profile:
  3. 3. Seminar’s agendaBlock 1: Basics of online marketing (day 1)Block 2: Social tourism (days 2 & 3)Block 3: E-Commerce in tourism (day 3)Block 4: Case presentations (day 4) How do I make money in Internet? (Block 3) How can I market my business in Internet? (Blocks 1 and 2)
  4. 4. Summary of block 1 REMINDER  Online advertising  Affiliate programs  Referral marketing  Email marketing  SEO  Content marketing  Online public relations Social marketing  Fake marketing Block 1 presentation
  5. 5. Quote of the block “A child of five would understand this. Send someone to fetch a child of five.” Groucho Marx
  6. 6. Agenda  Tourism is social by nature  Web 2.0  Social media advertising  Community Marketing  Building an effective online community
  7. 7. Sending a postcard…
  8. 8. Displaying where we have been…Our parents Our children (& ourselves)
  9. 9. Knowing how people live in touristic destinations • 9 out of 10 Egyptians and Tunisians asked in a poll said they used Facebook to organize protests and spread awareness
  10. 10. Most voted comment at a Foursquare’s tapas barcheckin page
  11. 11. My friend Federico recommending a restaurant afterlearning I am in the city of Santander
  12. 12. Metropolitan Police in YouTube & Twitter #London2012
  13. 13. KLM: App to create personilized luggage tags
  14. 14. Preparing my trip to Venice1/5: I first met Alejandro at a dinner and we connect asfriends in Facebook.After dinner, I complitely forgot he lived in Venice. So many things in myhead, why should I? Life goes on…
  15. 15. Preparing my trip to Venice2/5: Few weeks later I had to prepare a trip to Venice and Isearch in the Internet. I “Like” some pages about bridges inVenice. Of course Alejandro was not top pf my mind. I did not remember he lived in venice!
  16. 16. Preparing my trip to Venice3/5: Facebook’s algorithm detects my interest in “Venice”and next day Alejandro is showen in my wall.
  17. 17. Preparing my trip to Venice4/5: Snooping in his wall I discover he talks about “Casade Uscoli”.
  18. 18. Preparing my trip to Venice5/5: I looked up Casa de Uscoli in TripAdvisor. MyTripAdvisor account is linked to my Facebook account. 96 reviews but only one matters to me, Jesus’…
  19. 19. How do we play?Offline, Social 5.7 mill. daily users “Transactionalization” Online, Social Online, Non-Social “Re-Socialization”Source: App Data
  20. 20. ILLUSTRATIVE EXAMPLESThe path to social+online Non Social Social ¿? SOCIAL TECHNOLOGIES Online (Social relevance / real identities) & ¿? INNOVATION Each segment has its own INFORMATION TECHNOLOGIES way and pace to be online TV and social GamingOffline Travelling Electronics Supermarket Shopping ShoppingSource: 11 Goals & Associates
  21. 21. Inertia in the application of new technologiesRadio as newspaper… TV as radio… It always takes time to adapt to new technologiesWeb 1.0 as newspaper… Web 2.0 as Web 1.0… We expect years developing applications of current and future social technologiesSource: 11 Goals & Associates
  22. 22. Agenda  Tourism is social by nature  Web 2.0  Social media advertising  Community Marketing  Building an effective online community
  23. 23. Definition of web 2.0 “Web 2.0 is the network as platform, spanning all connected devices; Web 2.0 applications are those that make the most of the intrinsic advantages of that platform: delivering software as a continually- updated service that gets better the more people use it, consuming and remixing data from multiple sources, including individual users, while providing their own data and services in a form that allows remixing by others, creating network effects through an "architecture of participation," and going beyond the page metaphor of Web 1.0 to deliver rich user experiences.” Tim O’Reilly (October 2005)Source: O’Reilly Radar:
  24. 24. Evolution towards web 2.0 “Social” “Catalog” “Search” “Web 2.0” (www) (Google) (Facebook)
  25. 25. Social media is a reality, a sound reality  In October 2011 (latest comScore’s global report), there were 1,200 million people on social networks, a 82.4% of World’s online population.  In Europe, 28% of navigation time happens on social networks (~7 hours/month).  98% of Spaniards interact with Social Networks.  Digital natives (<25 year-old) spend on SNS 8 times what they spend on email.  Largest IPO in history (Facebook, 2012). Facebook’s market cap (USD 63.8 b) is larger than Ford’s (USD 51.2 b), BBVA’s (USD 53.2 b), Telefonica’s (USD 62.6 b), etc. [Jan 7th, 2013]Source: comScore, Bloomberg
  26. 26. Our growing circle of trustFrom “Me” to “Social” … Me Mom Dad Enrique … Miguel Carmen Esther … … Arturo Gonza Miguel • One of our most valuable assets is the trustworthiness system we are continuously building up during our lives. It helps us to take decisions • Social media phenomenon succeeded because of this translated into onlineSource: 11 Goals & Associates
  27. 27. How do we use our circle of trust? Extract value We rely on people we know to: from the circle • Get informed. • Make decisions. Yo Mamá Papá Enrique We use our experiences to: Miguel Tomás Esther • Increase our Goodwill • Arturo Rafael Identify ourselves. Miquel Julio … • Self-express ourselves. • Self-realise • Socialize around an excuse Nourish and for conversation extend the circle 26
  28. 28. What’s a social networking service? SNS: “online service, platform, or site that focuses on building and reflecting of social networks or social relations among people, who, for example, share interests and/or activities” (Wikipedia) ~85% of online population use SNS There are discrepancies about which services are really a SNS and which ones are notSource:
  29. 29. EXAMPLETraditional, offline Social Networks
  30. 30. The first online social network… Social networking service: “online service, platform, or site that focuses on building and reflecting of social networks or social relations among people, who, for example, share interests and/or activities” (Wikipedia)Photo:
  31. 31. World map of Social NetworksJune 2009Source:
  32. 32. World map of Social NetworksJune 2012 The World Facebookised (1000 mill. Active users)Source:
  33. 33. Facebook#1 international social networking website  Friends networking + Brand communities  >1,000 mill. active users  Grew concentrically: Ivy league universities -> universities -> high schools -> open  Open Graph  Facebook connect + API  Social gaming  Great content segmentation tools  Social advertising  Moving fast towards Mobile
  34. 34. OCTOBER ‘12International Facebook presenceXX,X XX% X,X% Users (mill.) | Penetration (%) | 3-month growth (%) EEUU 167,6 54% 7,6% Brasil 60,7 30% 13,1% India 60,5 5% 17,8% Indonesia 50,5 21% 14,9% México 39,4 35% 8,4%Reino Unido 33,2 53% 9,2% Turquía 31,4 40% 2,2% Filipinas 29,9 30% 4,3% Francia 25,3 39% 4,7% Alemania 25,0 30% 4,9% Italia 22,8 39% 5,1% Argentina 20,4 49% 5,2% Canadá 18,6 55% 7,7% Tailandia 17,5 26% 11,7% Colombia 17,5 39% 2,9% España 17,3 37% 8,3% Japón 16,4 13% 61,0% Malasia 13,2 50% 5,8% Taiwan 13,1 57% 5,2% Australia 11,7 55% 6,7%Source: Social Backers, Facebook Inc, INE
  35. 35. Motivations for sharing To bring valuable and entertaining content to others To get the word To define ourselves out about causes or brands 5 key motives to others for sharing To grow and nourish Self-fulfillment our relationshipsSource: “The Psycology of Sharing: Why do people share online?”, The New York Times’s Customer Insight Group
  36. 36. Most popular Facebook pagesJanuary 2013 # fans # fansSource: Page Data
  37. 37. Most popular Facebook appsJanuary 2013Source: App Data
  38. 38. Tencent - QZoneChina’s largest social networking service(s)  ~600 mill. users  Part of Tencent Holdings, a diversified Chinese Internet company which became popular thanks to QQ messenger.  Unlike Microsoft, Tencent was able to turn a messenger tool into a successful, real social networking website.  Tencent is the third (after Google and Amazon) largest Internet company in the World by Market capitalization (USD 42 bill.)  Revenues (2011): ~3 bill. /yr (less than 15% from advertising)
  39. 39. Twitter#1 Microblogging site  It is more a microblogging tool rather than a social networking site.  >500 mill. users  Works better for 1-to- many communication
  40. 40. Real activity in SNS. Facebook rules. Facebook world’s time share: •75% (SNS) •14% (Internet)Source: comScore
  41. 41. Google PlusLatest SNS by the Google factory  >500 mill. Users (but moderate usage per user)  Great usability and systems.  Great Circles and Hangouts features.  Deeply integrated with other Google services  However: there is already a predominant social networking site and it is hard for people to spend time in changing to another social networking site. People tend to use one service, and is reluctant to change unless there is a huge difference between services, which is not the case.
  42. 42. Sina Weibo#1 social microblogging website in China  Launched in 2009  >370 mill. Users  Huge engagement, 30th website in the World by traffic (Alexa)  Celebrity accounts
  43. 43. Mixi#1 social networking website in Japan  ~25 mill. Users  30% from mobile  Revenues: mostly advertisement
  44. 44. GreeThe most profitable social company in Japan Yoshikazu Tanaka  Founded in 2004 by Yoshikazu Tanaka  Gaming Social Networking website, and specially mobile.  98% users from mobile.  Most of revenue coming from virtual goods.
  45. 45. CyWorld#1 Social Networking website in South Korea  ~20 mill. Users.  Owned by SK main telecom company.  Pioneers in virtual currency: Dotori.  ~80% revenues from virtual goods.  Failed to enter in the US and Europe.
  46. 46. What is a social graph? Social graph: “the global mapping of everybody and how theyre related” (Wikipedia) Sociograms: “graphic representation of social links that a person has” (Wikipedia)Source: ,
  47. 47. A Facebook’s sociogram exampleSource: Facebook Inc. Paul Butler
  48. 48. Sociogram by Networks (Top 250 friends)Another Facebook exampleSource: Touch Graph
  49. 49. Facebook API, Open graph • Facebook offers the ability to access to the user’s social graph if she gave access to us. • Brands should understand the graph’s possibilities and should work out ways to build social way of promoting their brands. • Examples: • Spotify • Netflix • NYTSource:
  50. 50. …and the first social graph Social graph: “the global mapping of everybody and how theyre related” (Wikipedia)
  51. 51. Web 2.0 is not only SNS: Social Media Ecosystem Nobody owns theSource: Luma Partners ecosystem
  52. 52. 5 attitudes regarding the social media ecosystem Ignore Complement [Hi-Tech] [Content] Combat Copy Minimum presence (most brands) Pasive  Reactive  ProactiveSource: 11 Goals & Associates
  53. 53. In Social Media, the medium is the people Audience• Message• Image Real• Video impact• Emotion• Poll• … Social Ecosystem Community Marketing/Management: Audience knowledge: •Experience •Analytics (Tests) Social Ecosystem knowledge
  54. 54. A powerful presence in SNS helps Obama to…Movilize StrikeKnow Inform Defend …without intermediaries, faster, and to a broader audience
  55. 55. Agenda  Tourism is social by nature  Web 2.0  Social media advertising  Community Marketing  Building an effective online community
  56. 56. Facebook ads format o Picture o Text o Social
  57. 57. EXAMPLECreate a Facebook Ad: Segmenting o Facebook allows to find your target group based on demographics and interest. o Example: 1,860 women liking Real Madrid C.F, engaged, living less than 50 miles from Madrid and speaking Spanish.
  58. 58. EXAMPLECreate a Facebook Ad: Ad auction o Similar auction system like Google’s, but one can choose CPM or CPC (in our notation PPI or PPC)
  59. 59. Contextual Vs Social Advertising Focus on “Keywords”. Focus on “Target Segment”. Unknown user. Known user: We know who he is and what he likes. Active user: He know what he wants because he is Passive user. searching for it or mentioning it in his emails. “one time” user. “continuously contacted/relationship” user. PPI PPI/PPC RECOMMENDED FOR: RECOMEMNED FOR: •“Direct response” from customers who have •“Direct response” from customers who have NOT explicitly expressed a need (“Close the sale, explicitly expressed a need (“Activate a subjacent message in the right moment, at the right time.”). need.”). •“First contact” with potential customers of slow- selling products (“Establish a productive So far Google Ads have proven relationship.”). to be more profitable. Facebook •“Brand image” campaigns. platform still fine-tuning.
  60. 60. Agenda  Tourism is social by nature  Web 2.0  Social media advertising  Community Marketing  Building an effective online community
  61. 61. World’s best brands according to InterbrandSource: “Best Global Brands 2012”, Interbrand
  62. 62. World’s best brands according to meSource: Me 61
  63. 63. Customers trust each other, not the brand! 76% of American consumers believe companies don’t tell the truth in advertising -Yankelovich (2005) 60% have a much more negative opinion of marketing & advertising than a few years ago - Yankelovich (2004) 78% say consumer recommendations are the most credible form of advertising - Nielsen (2007) 83% say online evaluations and reviews influence their purchasing decisions - Opinion Research Corporation (2008) 84% trust user reviews more than critics’ reviews - MarketingSherpa (2007) Trust in “person like me” tripled to 68% from 2004-2006 – biggest influencer to consumers - Edelman Trust Barometer (2006, 2007)Source: Your Users Trust Each Other, Not You: Why and How to Implement Ratings and Reviews, by Molecular Inc.
  64. 64. What form of advertising do consumers trust? Recommendations from people I know 92% Consumer opinions posted online 70%Editorial content such as newspaper articles 58% Branded Websites 58% Emails I signed up for 50% 28.000 Internet users in Ads on TV 47% 56 countries Brand sponsorships 47% Ads in magazines 47% Billboards and other outdoor advertising 47% Ads in newspapers 46% “Recommendations from Ads on radio 42% people I know” is, by far, Ads before movies 41% the most trusted form of TV program product placements 40% marketing Ads served in search engine results 40% Online video ads 36% However, “Ads on social Ads on social networks 36% networks” not really Online banner ads 33% trusted Display ads on mobile devices 33% Text ads on mobile phones 29%Source: Nielsen, Global Trust in advertising and Brand Messages, Abril 2012
  65. 65. “Marketing is dead”Harvard Business Review – 9 Aug 2012Traditional marketing — including advertising, public relations, branding and corporate communications — is dead. Many people in traditional marketing roles and organizations may not realize theyre operating within a dead paradigm. But they are. The evidence is clear.Buyers are checking out product and service information in their own way, often through the Internet, and often from sources outside the firm such as word-of- mouth or customer reviews.Actually, we already know in great detail what the new model of marketing will look like. Its already in place in a number of organizations. Here are its critical pieces:  Restore community marketing  Find your customer influencers  Help them build social capital  Get your customer advocates involved in the solution you provide. Most read article in Aug 2012Source:
  66. 66. 3-SLIDE SUMMARYCommunity Marketing used to be this…Picture:
  67. 67. 3-SLIDE SUMMARY…that in order to get scale was denaturalized by this…
  68. 68. 3-SLIDE SUMMARY…until this came along and allowed scale and directcontact simultaneously
  69. 69. Web 2.0 and Community Marketing in football 0FFLINE WEB 1.0 WEB 2.0 (CIRCULATION) (DAILY REACH %) (FANS/FOLLOWERS) Marca: 244.456 /day Facebook/Twitter (mill.) Diario As: 198.758/day Marca: 0,65/0,91 Real Madrid: ~0 Diario As: 0,28/0,41 Real Madrid: 31,8/6,8 MD: 95.907 /day Facebook/Twitter (mill.) Sport: 91.753/day MD: 0,18/0,64 FC Barcelona: ~0 Sport: 0,23/0,22 FC Barcelona: 35,3/12,4Web 2.0 allow football clubs –better than ever before- to be in touch directly with their fanbaseSource: OJD (2011),, Facebook Inc. Twitter Inc.
  70. 70. The value of Community Marketing Real Madrid: estimated equivalent advertising value of its Facebook page: EUR 30 mill./month (Apr 2011)Source: IAB Spain, Ontwice,
  71. 71. Agenda  Tourism is social by nature  Web 2.0  Social media advertising  Community Marketing  Building an effective online community
  72. 72. Do we need a [great] brand to create a [great] onlinecommunity? Online community Failure Success Strong Brand Weak or non-existent No Common interestSource: 11 Goals & Associates
  73. 73. Do we need brand’s leadership to create a greatonline community?Facebook fans ranking Facebook engagement ranking27 Nov 2011 14 Nov 2011 No Motivated leadersSource: y
  74. 74. From a person to the online community People Community Online community Common interest Online • An online community is a group of people that interact and communicate online around a topic of interest. Internet allows those interactions to be real-time, effective, and free (as in free speech). • Due to members being scattered around the world, most of those communities would not be possible if online means did not exist. Many of those communities go directly to being an online community without being previously an offline community. • More and more communities are shifting online, with or without the brand’s leadership.
  75. 75. The most important learning about managing [online]communities “Robust communities are built not on brand reputation but on a deep understanding of members’ lives.”Source: “Getting Brand Communities Right”, Harvard Business Review, April 2009.
  76. 76. ILLUSTRATIVE EXAMPLESCommunity segmentation Soccer Club Country’s tourism board @1 Former Potential visitors visitors Team Supporters Other gov entities Country Tourist Employees industry @2 citizens Football fans General public Interests? Motivations? Roles?Source: 11 Goals & Associates
  77. 77. Interests and role of each subgrup within the community Subgroup Interests Rol 1  …  …  … 2  …  …  … 3  …  …  … …  …  …  … Key question: Does it make sense as a system? How can the brand close any gap in the system?Source: 11 Goals & Associates
  78. 78. EXAMPLECommunity member roles • Core participants • Needlers • Readers/Lurkers • Newbies or NewBees • Dominators • PollyAnnas • Linkers, weavers and • Spammers pollinators • "Black and White" Folks • Flamers • "Shades of Grey" Folks • Actors and Characters • Untouchable Elders • Energy Creatures • Defenders Full description: Figure out your community roles
  79. 79. Women rule on Social NetworksSubtitle Some studies indicate that women are able to socialize better in social networks like Facebook. Women are able to maintain more relationships online, interact more, and when they share a content, it is on average more popular than if the content was shared by a man.Source: comScore, Inside Facebook
  80. 80. Three forms of Community Affiliation “Pools” “Web” “Hub” • People have strong • People have strong one- • People have strong associations with a to-one relationships connections to a shared activity or goal, with others who have central figure and Description or shared values, and similar or weaker associations loose associations with complementary needs. with one another. one another. • Apple enthusiasts. • Cancer patients and • Oprah Winfrey. Examples • Political party relatives. • Hannah Montana. members. • Apple enthusiasts (too) • Apple enthusiasts (too) RRSS Most frequent type Preferred by brandsSource: “Getting Brand Communities Right”, Harvard Business Review, Abril 2009, 11 Goals & Associates
  81. 81. Building up an coherent social media community ANALYTICS (SOCIAL BALANCED SCORECARD) STRATEGY ORGANIZATION SERVICES MARKETING ONLINE & SOCIAL MEDIA INTERNAL & EXTERNAL FOR COMMUNITY MANAGEMENT SOCIAL & GENERAL COMMUNITY ENGINEERING SOCIAL MKT• The “community engineering” stages are key to build a truly brand community on social networks and to achieve a high level of social capital.• Without a good community engineering (and social capital) campaigns simply do not work.• Currently most brands think of social media as another ad place, and get easily disappointed because they did not work enough the community before beginning to extract value from it.Source: 11 Goals & Associates
  82. 82. How is Social Media organized in your company?Source: Altimeter Group
  83. 83. Myths and realities about managing communities SUMMARY Myth Reality 1. A brand community is a marketing 1. A brand community is a business Strategy. strategy. 2. A brand community exists to serve 2. A brand community exists to serve the business. the people in it. 3. Build the brand, and the 3. Engineer the community, and the community will follow brand will be strong. 4. Brand communities should be 4. Smart companies embrace the lovefests for faithful brand conflicts that make communities advocates. thrive. 5. Opinion leaders build strong 5. Communities are strongest when communities. everyone plays a role. 6. Online social networks are the key 6. Online networks are just one tool, to a community strategy. not a community strategy. 7. Successful brand communities are 7. Of and by the people, communities tightly managed and controlled. defy managerial control.Source: “Getting Brand Communities Right”, Harvard Business Review, April 2009.
  84. 84. Priorities when developing the community LONG TERM • …. • …. MEDIUM TERM • …. • …. • …. SHORT TERM • …. • …. • ….. • …. More Revenues + keep More Fans Engagement fans and engagementSource: 11 Goals & Associates
  85. 85. Today’s main takeawaysPage 1 of 3 ¶ Tourism is a social activity by nature. Social media just changed the way that is expressed. ¶ Online Social Tourism sometimes happens through highly complex processes that involve several tech services. ¶ Internet de-socialized some human activities. But now Social Technologies are re- socializing them. It is a general trend observed in many human activities. ¶ When a new technology is introduced, it always takes years to discover models and formats to extract value from it. Innovation is frequently slow, and so it is the adoption of Social Technologies by companies. ¶ Web 2.0 is all about people participating in projects, contents, etc. ¶ Web 2.0 is a sound reality. No doubt about that. Hope you are not still thinking whether it makes sense or not! ¶ The huge importance of social media is due to the fact that SNS were able to translate online (and make it more efficient and powerful) one of the World’s most important human activities: socializing; managing and using our circle of trust. ¶ Facebook is Worldwide leader in usage and technology. The World is still leaning towards Facebook in many countries where it is not yet the leading SNS. Only China and Russia seem to stay away from Facebook’s rule, the second one due to its blocking.
  86. 86. Today’s main takeawaysPage 2 of 3 ¶ Web 2.0 is not only Social Networking websites. There are other categories like social blogging, microblogging, video, gaming, etc. ¶ In our opinion, the existence of an Social Graph that resembles a person’s real social life is what distinguishes an actual SNS from a Social Medium. ¶ There are also a ton of complementary services to SNS and other Web 2.0 tools. We call it the “Social Media Ecosystem”. ¶ It is interesting to observe and understand the 5 attitudes companies generally adopt regarding the Social Media Ecosystem. The best attitude is “to Complement it”, but few companies are mature enough to understand that. However bad experiences are helping a lot to let them understand. ¶ In Social Media, the medium is the people. Interesting little fact to have top of our minds… ¶ Social media advertising is intrinsically different from other type of ads like contextual advertising. They complement each other rather than compete. They should be used for different goals. ¶ People trust in people more than in brands. In the last years even more due to the never- ending roll of corporate scandals and the crisis.
  87. 87. Today’s main takeawaysPage 3 of 3 ¶ Some Marketers (even “traditional” ones) believe that “Marketing is dead”, at least in its current form. They believe brands should turn their eyes into the “Community Marketing” ¶ “Community Marketing” is actually the oldest form of marketing. However brands had to leave it because of scale. ¶ Social technologies have proven useful for brands with the mission of applying “Community Marketing” while keeping their size. E.g.: Football clubs. ¶ Building an effective online brand community is an important business tool for many companies. However it is a very difficult one to achieve because it is a long term goal and the final impact in the P&L account is not easily measured. ¶ It is a frequent mistake to believe that having a good brand makes it easier to have a good online community. ¶ In order to build your own successful online community it is important to understand in depth your underlying community: how your members affiliate, what are their key roles within the community, how do they benefit from being a member, etc. ¶ Online communities take time: first hire fans, then engage them (almost immediately after hiring them), and finally try to monetize them in the least possible frictional way.
  88. 88. Thanks Francisco Herná