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BA Social Media Final Presentation

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BA Social Media Final Presentation

  1. 2. Process <ul><li>We worked with many different departments to put together this project </li></ul><ul><ul><li>Strategic Transformation—Despina Papaioannou </li></ul></ul><ul><ul><li>Marketing—Anne Tedesco, Melissa Fernandez </li></ul></ul><ul><ul><li>Customer Relations—Carol O’Rourke </li></ul></ul><ul><ul><li>Claire & Vanessa </li></ul></ul><ul><li>Initial confusion about how to treat social media: customer service and/or marketing? </li></ul><ul><li>Discovered new use for social media: unique platform for multiple purposes </li></ul>
  2. 3. United Breaks Guitars What NOT to do on social media!!
  3. 4. Engaging Customers through Social Media Elspeth Ong & Laurel Goverman July 28 th , 2010
  4. 5. Agenda <ul><li>Overview of Social Media </li></ul><ul><ul><li>Why businesses should care about this new channel </li></ul></ul><ul><li>Competitive Analysis </li></ul><ul><ul><li>Benchmarking against other airlines </li></ul></ul><ul><li>Relevance to British Airways </li></ul><ul><ul><li>What we are currently doing </li></ul></ul><ul><li>Potential Plan of Action </li></ul><ul><ul><li>Evolution of BA social media implementation </li></ul></ul>
  5. 6. I. Overview of Social Media What is social media? <ul><li>Social media allows people to connect with each other more extensively and quickly than ever before </li></ul>
  6. 7. I. Overview of Social Media Why social media? <ul><li>Social media is a unique hybrid of advertising/PR/CRM due to its main characteristics: </li></ul><ul><li>Immediacy </li></ul><ul><li>Far reach (millions of people are online) </li></ul><ul><li>Ability to form personal relationships </li></ul><ul><li>with customers </li></ul>
  7. 8. I. Overview of Social Media Popularity of social media
  8. 9. I. Overview of Social Media Social media platforms useful to BA <ul><li>Highest penetration: </li></ul><ul><li>Facebook (500 million users) </li></ul><ul><li>Fastest growth: </li></ul><ul><li>Twitter (75+ million users) </li></ul>
  9. 10. I. Overview of Social Media Increasingly public platform <ul><li>Whether positive or negative, consumer sentiment is broadcast via social media </li></ul><ul><li>Positives: </li></ul><ul><ul><li>Low key praise is good for brand image </li></ul></ul><ul><li>Negatives: </li></ul><ul><ul><li>Destroy brand image in a matter of hours </li></ul></ul><ul><ul><li>United Breaks Guitars </li></ul></ul>
  10. 11. II. Competitive Analysis Positive case study
  11. 12. II. Competitive Analysis Benchmarking against competitors Both 1,042,717 Southwest Reactive 66,918 British Airways Proactive 36,551 Lufthansa Proactive 13852 Virgin Atlantic Both 100,152 United Both 1,594,065 JetBlue Both, @DeltaAssist acct. 70,923 Delta Mostly Proactive/ Reactive? # of Followers Airline
  12. 13. III. Relevance to British Airways BA customers are on social media <ul><li>Our travellers correspond with the largest segment of users on Twitter </li></ul><ul><li> *BA Exec Club members flying biz + leisure and are US Residents (Apr 09- Mar 10) </li></ul><ul><li>Twitter and Facebook users are most likely to be affluent and living in an urban area (Nielsen) </li></ul>Age Group BA N.A.* Facebook Twitter 26-34 12% 23% 19.6% 35-54 49% 31% 41.7%
  13. 14. III. Relevance to British Airways Potential for engaging on Facebook <ul><li>Strengths: </li></ul><ul><ul><li>High brand loyalty </li></ul></ul><ul><li>Weaknesses: </li></ul><ul><ul><li>No interaction with fans </li></ul></ul><ul><li>Opportunities: </li></ul><ul><ul><li>Build relationships with customers </li></ul></ul><ul><li>Threats </li></ul><ul><ul><li>Losing customers to competitors </li></ul></ul>
  14. 15. III. Relevance to British Airways Active engagement on Twitter <ul><li>Strengths: </li></ul><ul><ul><li>Knowledgeable and friendly </li></ul></ul><ul><li>Weaknesses: </li></ul><ul><ul><li>Response times are inconsistent </li></ul></ul><ul><li>Opportunities: </li></ul><ul><ul><li>Low cost, wide reach </li></ul></ul><ul><li>Threats </li></ul><ul><ul><li>Negativity spreads rapidly </li></ul></ul>
  15. 16. III. Relevance to British Airways Types of interaction on Twitter <ul><li>Incoming tweets by type </li></ul><ul><li>(June 12- July 12, 2010) </li></ul><ul><li>Twitter allows us to engage customers in a speedy way </li></ul><ul><li>General Feedback </li></ul><ul><ul><li>Show that we are listening </li></ul></ul><ul><li>Quick Questions </li></ul><ul><ul><li> Answer queries speedily </li></ul></ul><ul><li>Service seeking </li></ul><ul><ul><li>Acknowledge customer concerns </li></ul></ul>
  16. 17. III. Relevance to British Airways Departments involved on Twitter <ul><li>General feedback: PR </li></ul><ul><ul><li>Consumer-generated opinions on a public medium </li></ul></ul><ul><ul><li>Our response has impacts customer perception of brand </li></ul></ul><ul><li>Quick questions: Customer service </li></ul><ul><ul><li>Similar to those handled by ba.com & call centre </li></ul></ul><ul><ul><li>However, many of these questions only require short replies </li></ul></ul><ul><li>Service seeking: PR & Customer service </li></ul><ul><ul><li>Relates to core customer needs </li></ul></ul><ul><ul><li>However, situation may escalate if not handled well </li></ul></ul>Incoming tweets by type (June 12- July 12, 2010)
  17. 18. IV. Potential Plan of Action Strategy for engagement <ul><li>Facebook </li></ul><ul><li>PR & Marketing </li></ul><ul><li>Engage with relevant and interesting content and ask the user what they think </li></ul><ul><li>Soft-sell BA products (e.g. Metrotwin) and sentiments (British identity) </li></ul><ul><li>Twitter </li></ul><ul><li>PR & Customer service </li></ul><ul><ul><li>Focus on customer service </li></ul></ul><ul><ul><li>Maintain good brand image and control potential PR fiascos </li></ul></ul>
  18. 19. IV. Potential Plan of Action Type of engagement Proactive Reactive Emotional connection Soft-sell promos Link to Promos on ba.com Short answers Link to FAQ on ba.com Follow up Facebook X X X Twitter X X X X X X
  19. 20. IV. Potential Plan of Action Disruption planning <ul><li>Can be used to communicate with customers both personally and on a mass scale: </li></ul><ul><li>Immediate proactive dissemination of up to date information regarding current crisis </li></ul><ul><li>Reassure customers </li></ul><ul><li>Be open and honest with our customers </li></ul>
  20. 21. IV. Potential Plan of Action Possible options <ul><li>No change of current strategy </li></ul><ul><ul><li>Pros: Gain better understanding of social media </li></ul></ul><ul><ul><li>Cons: May delay entering into channel </li></ul></ul><ul><li>Outsource to social media agency </li></ul><ul><ul><li>Pros: No added complexity internally </li></ul></ul><ul><ul><li>Cons: High cost, Lack of control, Level of “expertise” uncertain </li></ul></ul><ul><li>Centralize to UK in a cross-functional team </li></ul><ul><ul><li>Pros: Globally consistent service proposition for customer </li></ul></ul><ul><ul><li>Cons: Cannot manage 24/7, difficult to deal with market variations </li></ul></ul><ul><li>In-source across regional offices </li></ul><ul><ul><li>Pros: Adapts to consumer preferences across regions </li></ul></ul><ul><ul><li>Cons: Inconsistent service for customer </li></ul></ul>
  21. 22. IV. Potential Plan of Action Proposed plan for BA social media <ul><li>Understand what BA customers want from social media </li></ul><ul><li>Gain expertise from social media specialists </li></ul><ul><li>Increase no. of users on BA social media accounts </li></ul><ul><li>Evaluate success using metrics </li></ul><ul><li>Integrate further into departments and internal systems </li></ul><ul><li>Use in PR, marketing and customer service as part of official channel mix </li></ul>
  22. 23. IV. Potential Plan of Action Metrics for success <ul><li>This enables us to gauge success at each stage and determine if our social media investment should be moved forward </li></ul><ul><li>Interaction </li></ul><ul><ul><li>No. of Followers/Fans </li></ul></ul><ul><ul><li>Depth of conversation </li></ul></ul><ul><li>Effectiveness </li></ul><ul><ul><li>Feedback: Helpful or not helpful? </li></ul></ul><ul><li>Productivity </li></ul><ul><ul><li>How many tweets responded to </li></ul></ul><ul><li>Marketing effectiveness </li></ul><ul><ul><li>No. of clickthroughs and resultant purchases </li></ul></ul>
  23. 24. IV. Potential Plan of Action Overview of costs <ul><li>Web-based platform has few set up costs </li></ul><ul><li>Manpower </li></ul><ul><ul><li>PPI for one external hire: $50k </li></ul></ul><ul><ul><li>Consultancy: $15-500k </li></ul></ul><ul><li>Analytic Technology </li></ul><ul><ul><li>Nielsen BuzzMetrics: $42k+/yr and upwards </li></ul></ul><ul><li>Cost of creating new department </li></ul><ul><ul><li>Set up computer systems </li></ul></ul><ul><ul><li>Overhead costs </li></ul></ul>
  24. 25. Moving forward and next steps <ul><li>Social media is a powerful tool </li></ul><ul><li>Customers are potentially willing to engage with us </li></ul><ul><li>BA can benefit with some investment </li></ul><ul><li>We will be meeting the Digital Innovations department at Waterside tomorrow to develop this further </li></ul>

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