Social Media and Multi Channel Retail


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Social Media and Multi Channel Retail

  1. 1. Social Media and Multi Channel Retail<br />Rick Mans - Social Media Evangelist<br />
  2. 2. It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.<br />
  3. 3. Cases<br />Dell<br />Dell said Thursday night (June 12 2008) that the company had earned $3 million in revenue directly through Twitter since 2007, when it started posting coupons and word of new products on the microblogging site. In the last six months, Dell Outlet earned $1 million in sales from customers who came to the site from Twitter, after taking 18 months to earn its first $1 million. Dell has also earned another $1 million from people who click from Twitter to Dell Outlet to and make a purchase there.<br />You can earn money online<br />Procter and Gamble<br />Procter & Gamble&apos;s Being Girl community is an online community targeted at young girls. P&G was able to use this community to market feminine hygiene products in a subtle way to an audience that doesn&apos;t want to talk about them.<br /> <br />What&apos;s very interesting to note is that P&G found community building to be four times more effective than traditional advertising.<br /><br /><br />
  4. 4. Ecosystem<br />Twitter<br />Twitter, a micro-communication service that gives users an opportunity to express their thoughts in 140-character &quot;tweets,&quot; is a hit in the social media world. Companies are also benefiting from Twitter, where 20 percent of the tweets contain requests for product information or responses to the requests, according to Jim Jansen, associate professor of information science and technology in the College of Information Sciences and Technology (IST) at Penn State.<br />Advertising<br />Spending on internet advertising topped £1.75 billion in the first half of 2009, a rise of just 4.6 per cent compared to the same period last year. But the increase was enough for online advertising to pass declining TV spend, which sits at £1.64bn, for the first time in a major market.<br />The figures from PricewaterhouseCoopers and the IAB tell a success story for the online industry, which has toppled TV&apos;s 50 year reign as the UK&apos;s leading medium. Online advertising now accounts for 23.5 per cent of all ad spend compare to TV&apos;s 21.9 per cent.<br />Teens rely more on friends<br />Teens don&apos;t hate advertising, but they rely more on friends. More than twice as many teens as adults — 38% versus 17% — say advertising helps them decide what to buy. That may sound encouraging, but marketers must also take into account that, at the same time, nearly twice as many teens as adults (47% versus 25%) rely on recommendations from friends and family. They are also far more likely to spread the word about products they like (67% versus 39) Blending advertising with social marketing is absolutely critical for marketers targeting this segment.<br /><br /><br />,7211,54086,00.html?src=Alert<br />
  5. 5. Social media as killer feature for Motrin<br />The ad<br />What happened<br />Wearing your baby seems to be in fashion. I mean, in theory it’s a great idea. There’s the front baby carrier, sling, schwing, wrap, pouch. And who knows what else they’ve come up with. Wear your baby on your side, your front, go hands free. Supposedly, it’s a real bonding experience. They say that babies carried close to the body tend to cry less than others. But what about me? Do moms that wear their babies cry more than those who don’t. I sure do! These things put a ton of strain on your back, your neck, your shoulders. Did I mention your back? I mean, I’ll put up with the pain because it’s a good kind of pain; it’s for my kid. Plus, it totally makes me look like an official mom. And so if I look tired and crazy, people will understand why.<br />It all began with an online ad posted Saturday (15 november 2008) on the company’s website. It was about “baby wearing” — i.e. carrying a child in a sling or a wrap, rather than pushing them in a stroller or carrying them in your arms. For some parents it is something they do simply because it works. For others it goes far deeper than that — part of a philosophy of being close to the baby whenever possible.<br />Developments<br />By Saturday evening they were the most tweeted subject on Twitter. By Sunday there was a nine minute video on YouTube, to the tune of Danny Boy, showing screen shots of the outraged twitter posts interspersed with photos of Moms carrying babies in slings. <br />Bloggers began calling for boycotts. Bloggers asked their readers to alert the mainstream press. <br />By Sunday afternoon a few bloggers and tweeters had gotten the ad agency that created the ad on the phone, to find they didn’t know a lot about Twitter and didn’t seem to have a clue that there was so much anger piling up online<br /><br />
  6. 6. How did Motrin respond<br />Developments<br />By Sunday evening the ad was taken offline by McNeil Consumer Healthcare, the maker of Motrin.<br />The response<br />I am the Vice President of Marketing for McNeil Consumer Healthcare. I have responsibility for the Motrin Brand, and am responding to concerns about recent advertising on our website. I am, myself, a mom of 3 daughters.<br />We certainly did not mean to offend moms through our advertising. Instead, we had intended to demonstrate genuine sympathy and appreciation for all that parents do for their babies. We believe deeply that moms know best and we sincerely apologize for disappointing you. Please know that we take your feedback seriously and will take swift action with regard to this ad. We are in process of removing it from our website. It will take longer, unfortunately, for it to be removed from magazine print as it is currently on newstands and in distribution. <br />-Kathy<br />Kathy WidmerVP of Marketing - Pain, Pediatrics, GI, SpecialtyMcNeil Consumer Healthcare<br /># times Motrin was mentioned<br />Motrin peaked on Twitter<br /><br />
  7. 7. What are the trends?<br />Partners<br />Trends<br />Embedding services into other brands and products<br />Responses: Standards like OpenSocial<br />Suppliers<br />Customers<br />Responses: Social CRM<br />Trends<br />Agile ways of working including prototyping<br />Trends<br />Web 2.0<br />Social media &<br />Social networking<br />Potential for concepts like Social SRM, Agile PLM<br />SOA & Cloud Computing<br />External<br />e-Business<br />Internal<br />Business Network Transformation<br />Trends<br />Web-oriented personnel<br />Knowledge sharing & collaboration<br />Response: Cloud computing<br />Trends<br />Multi-channel Retail,<br />Industrialisation<br />Flexibility/agility<br />Response: Enterprise 2.0<br />Employees<br />Operations & Systems<br />
  8. 8. The previous slide is incorrect<br />Why<br />Slides and images are static, customers, partners, suppliers and employees are changing roles continuously.<br />(Potential) Customers do employee work<br />Customers are suppliers and partners<br />
  9. 9. The world is flat (especially from 2005 onwards)<br />Web 1.0<br />Web 2.0<br />Traditional media<br />Google search<br />Flickr<br />Mainly Broadband<br />Mainly narrow band<br />Alternative media<br />netvibes<br />Publishing is complex and limited to few traditional media and online merchants<br />Value is created by aggregating content (portals)<br />Wikipedia<br />Easy and free publication for all<br />Value is generated by tools allowing to publish easily<br />2004<br />2005<br />Generation V<br />Generation Virtual is used to describe a growing online culture in which people participate, often anonymously, through personas in a flat, virtual environment. Generation Virtual is not defined by age, gender, social demographics or geographic location. It is based on demonstrated<br />accomplishments (merit) and an increasing preference for the use of digital media channelsto discover information, build knowledge and share insights<br />Generation V is here<br />The Business Impact of Social Computing on Marketing and &apos;Generation Virtual‘ – <br />Gartner ID Number: G00158087 <br />
  10. 10. Members of generation V are not all the same<br />Differentiate<br />Marketers must plan for varying levels of engagement to accommodate them, as well as harness their influence for marketing purposes and, ultimately, for transactions<br />6 segments of online users<br />
  11. 11. More about Social Media<br />
  12. 12. It is mentioned in our Technovision<br />Mash-up Applications<br />Mashup applications<br />Real-Time<br />Business<br />Process<br />Control<br />Real-time<br />business<br />process<br />control<br />Real-time <br />Integrated <br />Business <br />Intelligence<br />Real-time <br />integrated <br />business <br />intelligence<br />Composite <br />Applications<br />Composite <br />applications<br />Sensing Networks<br />Sensing networks<br />Packaged Sector /<br />Segment Solutions<br />Packaged sector /<br />segment solutions<br />Smart Business Networks<br />Smart business networks<br />Free Agents Nation <br />Free agents nation <br />Role Based User Portals<br />Role-based user portals<br />Social collaboration tools /<br />Wikinomics<br />Social Collaboration Tools /<br />Wikinomics<br />iPodification<br />iPodification<br />Software as a Service<br />Software-as-a-service<br />Google-fication<br />Google-fication<br />Utility <br />Business Infra-structure<br />Utility <br />business infra-structure<br />Mastered <br />Data Management<br />Mastered <br />data management<br />Jericho Style Security<br />Jericho style security<br />Rich Internet applications<br />Rich Internet Applications<br />Key technology building blocks<br />
  13. 13. Fromtransaction to interaction<br />Smart business networks<br />Social collaboration tools / Wiki-nomics<br />Free agents nation <br />From Transaction to Interaction<br /><ul><li>Organizations and individuals in a continuous cycle of learning, creating and collaborating
  14. 14. Creating additional value through business innovation with markets, players and consumers constantly shifting position
  15. 15. Global ‘open’ markets where information on available products and vendors vastly increases the competition compared to the levels of existing localized ‘closed’ markets</li></li></ul><li>Social Media Goals<br />SMILE<br />Activities<br />Supporting<br /><ul><li>Help customers and let customers help themselves and others
  16. 16. Ensure there is a platform for them where they can find you, the brand, and other customers</li></ul>Meshing<br /><ul><li>Integrate customer feedback and input in your product cycles
  17. 17. Create a place where customers can provide input on your product and where they can see the result.</li></ul>Interacting<br /><ul><li>Start solving real world problems
  18. 18. Create an environment that promotes and enables co creation
  19. 19. Use a platform in which you can interact with your customers</li></ul>Listening<br /><ul><li>Doing web care is a good way to get to know what is said about your products
  20. 20. Give customers a platform on which they can share their thoughts.</li></ul>Evangelizing<br /><ul><li>Provide customers a home base with tools so they can promote you / your products
  21. 21. Create easy promotion kits that can be reused over and over again.</li></li></ul><li>Who decides about social media use and what is the basis of the decision?<br />
  22. 22. Match your goals withthose of your (potential) customers<br />Use the goals in the SMILE-model to translate your goals<br />Enagement / Brand building<br />Need / Want Recognition<br />Information search<br />Provide context<br />Promote products<br />Evaluation<br />Purchase<br />Trust / transactions<br />Postpurchase<br />Satisfaction / loyalty<br />Model inspired on: The Business Impact of Social Computing on Marketing and &apos;Generation Virtual‘ – Gartner ID Number: G00158087 <br />
  23. 23. The online channel develops fast and what yesterday was a “Differentiator” may today be a “Must have”<br />Differentiators<br />Becoming <br />the norm<br />Must have<br />
  24. 24. Web care<br />One of the thingsyoucan do withsocial media<br />
  25. 25. Webcare<br />Image<br />
  26. 26. Webcare has different stages<br />Webcare<br />Don’t wait till the customers come to you<br />Interactive<br />Pro active<br />Reactive<br />Classic<br />Passive<br />Wait till the customer comes to you<br />
  27. 27. Yourorganisationshouldchange as well<br />Public Relations<br />Linked<br />The webcare team should have direct links with:<br /><ul><li>Customer Care for solving problems
  28. 28. Marketing to share customer feedback
  29. 29. Public relations to consult what can and can’t be communicated</li></ul>Discover and prevent issues<br />Share successes<br />Web care<br />Get feedback for <br />product development<br />Educate customers<br />Problem solving<br />Customer experience<br />Marketing<br />Customer Care<br />
  30. 30. Thinkonhowyoucould response<br />.. or are you completely clueless<br />Do you have plan…<br /><br /><br />
  31. 31. Howcan Capgemini help<br />
  32. 32. How Capgemini can help<br />Strategic advise on<br /><ul><li>Social media (Web 2.0 – the social web)
  33. 33. E-commerce
  34. 34. “do more with less” (out-of-the-box solutions that cost less or will reduce costs)
  35. 35. Emerging technologies like Cloud Computing
  36. 36. Social media roadmap
  37. 37. IT landscape roadmap
  38. 38. Social CRM
  39. 39. Business Network transformation</li></ul>Technological advise on<br /><ul><li>Social Networking and collaboration solutions
  40. 40. E-commerce (e.g. Microsoft Commerce Server with SAP integration, ATG)
  41. 41. Integration with existing social networks
  42. 42. Integration with existing enterprise software
  43. 43. Social CRM</li></ul>Implementation<br /><ul><li>Development
  44. 44. Project management
  45. 45. Business Analysis
  46. 46. Architecture
  47. 47. Community management
  48. 48. Benchmarking
  49. 49. Process (re) design</li></ul>Market / sector expertise: Retail sector (Capgemini Retail Solutions, former Maxeda IT)<br />
  50. 50. Generic cases<br />
  51. 51. Lego factory<br />SOLUTION<br /><ul><li>Lego launched the Lego Factory ( – an online model of engagement for potential and existing Lego users, which allows users to design, share and buy their own customized LEGO models</li></ul>THE LEGO FACTORY WEBSITE <br />BACKGROUND<br /><ul><li>Lego had traditionally been surrounded by a highly active constellation of Lego User Groups - fan communities comprising of both adult and young members
  52. 52. These groups maintained large online presence; operated independently of the company; exchanged and showed creative toy designs and models amongst themselves
  53. 53. Lego needed to move out of closed proprietary mode and adapt a participative strategy for customer interaction, which would utilize existing user creativity in product design</li></ul>BENEFITS<br /><ul><li>Designer users can then order the bricks needed to make their model, and also customize their own box for the model
  54. 54. Other users on the site can buy uploaded designs in the gallery, and will receive both the bricks for the model as well as the building instructions
  55. 55. Through the Lego Factory, the company has taken a step further in the evolution of user involvement, building strong brand relationship
  56. 56. The initiative has created high levels of awareness and interest with the consumers
  57. 57. The initiative has put Lego a step ahead of competition by moving out of closed proprietary content mode and involving fresh ideas from consumers and community for New Product Development
  58. 58. Users interested in custom-designing their own Lego models have to download and install the ‘Lego Digital Designer’ –
  59. 59. In the designer, the user can drag and drop to create a virtual toy design
  60. 60. Once the user has created a design, he can upload the same to the online gallery
  61. 61. Lego approves all designs before they are added to the online gallery, to filter out models for appropriateness for all age groups</li></ul>Source: MRD Lab Analysis. Capgemini, “ECR Europe Conference: Future Consumer Presentation”, May 2008., “Lego Co-creation Presentation by Mark Hansen: Video”, September 2006., “Co-Creation in Lego Factory”, September 2007. European Centre for the Experience Economy, “Lego’s participative army marches on”, April 2008. <br />
  62. 62. P&G connect + Develop<br />SOLUTION<br /><ul><li>P&G launched the ‘Connect + Develop’ initiative, tapping into a global innovation network comprising of a host of sources, right from independent innovators to virtual innovator networks such as InnoCentive
  63. 63. Having a clear sense of consumers' needs, the company identifies promising ideas throughout this network and applies its own R&D, manufacturing, marketing, and purchasing capabilities to them to enhance the rate of innovation</li></ul>BACKGROUND<br /><ul><li>As P&G grew to a $70 billion enterprise, the global innovation model it devised in the 1980s was yielding shrinking success rates
  64. 64. Their R&D productivity had leveled off, and innovation success rate had stagnated at about 35%, whereas innovation costs were climbing faster than top-line
  65. 65. While P&G owned a 7500+ strong R&D team, it realized that viable product innovation was increasingly being done externally at small and midsize entrepreneurial companies</li></ul>P&G CONNECT + DEVELOP<br />P&G converts them into ‘science problems and sends into the network<br />P&G identifies top 10 customer needs<br />P&G’s Global Innovation Network<br />BENEFITS<br /><ul><li>More than 35% of P&G’s new products have elements that originated from outside P&G, up from about 15% in 2000
  66. 66. R&D productivity increased by nearly 60%
  67. 67. R&D investment as a percentage of sales is down from 4.8% in 2000 to 3.4% in 2006
  68. 68. P&G’s average two-month cycle of generating physical prototypes and testing them with consumers has reduced to around 24 to 48 hours</li></ul>P&G’s 7500+ R&D team work on solutions suggested and with internal communities<br />INNOVATIONS In Areas Of Packaging, Design, Marketing Models, Research Methods, Engineering, Technology, Etc <br />Source: MRD Lab Analysis. Harvard Business School, Working Knowledge, “P&G&apos;s New Innovation Model”. Leveraging Ideas for Organizational innovation Blog, Dr. Kevin Desouza, “ Connect & Develop Innovations the P&G Way”. P&G, “P&G Connect & Develop – Brochure”.<br />
  69. 69. Nike+, in collaboration with Apple<br />SOLUTION<br />HEAR YOU RUN…<br />Sensor in the shoe helps the runner hear through the iPod, the details about pace, time, distance and calories burned<br />1<br />BACKGROUND<br /><ul><li>Nike wanted to create an immediately resonant experience for a broad target market, from marathoners to fitness joggers
  70. 70. Nike+ was born as a multi-channel, multi-sensory marriage of Nike and Apple technologies
  71. 71. Nike+ provides a robust platform of virtual racing, progress tracking, motivational goals and stories, global community comparison tools</li></ul>SEE YOU RUN…<br />On docking and synchronizing the iPod, Nike+ software loads the workout statistics to their website where the user will be able to track his/her workout progress<br />2<br />CONNECT AND CHALLENGE<br />Run data can be used to track progress, set goals, motivate runners. win rewards and challenge pals or all Nike+ users<br />3<br />BENEFITS<br /><ul><li>Nike+ is a unique way to engage with and promote higher levels of brand identity amongst Nike users
  72. 72. Delivers increased value to Nike users through a unique way of collaborating
  73. 73. Engages current and prospective Nike users with uninterrupted and targeted advertising
  74. 74. 20% reduction in ad budgets as Nike is moving towards developing its own media network through such technological endeavors
  75. 75. Total Sales worth $59 million and 1.8 million users
  76. 76. August 2008; 800,000 people globally simultaneously run a 10km race in 26 cities
  77. 77. Share of the Sports Shoe market: 2006 – 48% 2008 – 61% (12 month average)</li></ul>CUSTOMER CENTRICITY THROUGH <br />BETTER INTERACTION USING WEB 2.0<br /><br />III<br />Widgets for setting challenges, goals…<br />Blog facility for Nike+ users<br />Link to purchase Nike+ kit and other Nike gear<br />I<br />II<br />III<br />III<br />II<br />I<br />Source: MRD Lab Analysis. Nike+ website. ‘Nike does business 3.0’ Phill Butler, 2007.<br />
  78. 78. Contact details<br />Rick Mans<br /><br /><br /><br />