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Designing Social Media Strategy in Today's Market


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This is an intro slideshare for AppAddictive training series - Social Media has become an integral part of Marketing and offers an opportunity to influence consumers throughout their purchase decisions. We will discuss the best framework an organization can adapt to leverage the functions of Social Media and develop an effective Social Media Strategy. You will gain an understanding of Word of Mouth and in our training learn how to set up WOM benchmarks and KPI's to measure effectiveness of any marketing initiative.

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Designing Social Media Strategy in Today's Market

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  3. 3. Old Advertising Model Killed by the Internet & Personal Tech Fails to describe today’s consumer purchase decisions: 1. Assumes: Mass Media educates consumers. Consumers are overwhelmed and tune out. 2. Assumes: Linear path to purchase. Experience with is repetitive. 3. Assumes: Starts with many funnel down to few. Today‟s consumers are empowered to research more options.McKinsey & Company, April 2009
  4. 4. New Model: Customer Decision Journey Active Evaluation Path: Consumer ads or subtracts brands based on perception as they evaluate what they want. 2. Evaluate 6. BondInitial Loyalty Loop: Consumer decidesConsideration to choose same brand for future Moment of 1. ConsiderSet: based on purchases. 2 Types of Loyalty* 3. Buy Purchase:brand perceptions Ultimately, the Trigger consumer selectsand exposure torecent touch points one brand Post Purchase Path: Consumer builds expectations based on experience to inform next decision. Shares their experience with peers. *2 Types of Loyal Consumers: Active Loyalists - Stick with the brand and recommend Passive Loyalists – stay with the brand because of convenience but are open toMcKinsey & Company, April 2009 messages from competitors
  5. 5. McKinsey & Company, April 2009
  6. 6. 1. Monitor 2. Respond 3. Amplify 4. Lead To consumers‟ Steps in the Consumer Decision Journey Social channel current positive Change in for comments activity/tone sentiment or trends, insights behavior Consider Brand Crisis Referrals and Brand content monitoring Management recommendations awareness Evaluate Product launches Buy Targeted deals, offers Experience Customer Fostering Customer service communities input Advocate Brand Advocacy Bond12 McKinsey & Company, April 2012
  7. 7. Social Listening StudyIdentified: consumers areskeptical about„Effectiveness‟, TooWaxy, „Fake Hair‟commercialsP&G Identified Influencer withright Tone of VoiceNadine Jolie Beauty Blogger& Author: BeautyConfidential: The NoPreaching, No Lies, Advice-Youll-Actually-Use Guide toLooking Your BestNot your typical “CelebrityModel”
  8. 8. Twelpforce has responded to near 63K customer inquiries viaTwitter, enlisted 2600 employees to share their knowledge, and paid foritself via extensive PR coverage, enhanced brand perceptions, and savings to the call center isn%E2%80%99t-marketing
  9. 9. Groupon and Gilt Groupe provide consumers with credit foreach first-time purchaser they refer. McKinsey‟s researchshows that direct recommendations from peers generateengagement rates 30x higher than traditional onlineadvertising.
  10. 10. AmEx Sync ProgramTwitter:brands to promote special offers on Twitter thatwould be made available exclusively to userstweeting specific hashtags.#AmExWholeFoods - they would get an automatic 20percent discount on their next purchase at WholeFoods when they used their AmEx card
  11. 11. Bonobos held a “Twixlusive,” a 24-hour sale…Incentivized Twitter followers by unlocking adiscount code after its messages were resent acertain number of times.As a result of 100 consumers bought products fromthe site for the first time - 1,200% ROITwitter is 13x more cost effective than any otherchannel for Bonobos
  12. 12. How does the McKinsey Framework apply toyour Organization?LEARN MORE…SIGN UP FOR APPADDICTIVE TRAININGEMAIL: nyc@appaddictive.com18
  13. 13. Word of Mouth play a crucial role in Influencing Consumers, especially in Emerging Markets 20McKinsey & Company, April 2010
  14. 14. 8% to 10% of consumers are influential - whose common factor is trust and competence Influentials typically generate 3X WOM messages than non-influentials do Each message has 4X more impact on a recipient’s purchasing decision About 1% of these people are Digital Influencers most notably, bloggers with disproportionate power 21McKinsey & Company, April 2010
  15. 15. KPI: WOM Equity - Average sales impact of a brand message multiplied by the number of WOM messages “High Impact recommendation from close relationship is 50x more likely to Trigger purchase than Low Impact by a stranger”22
  16. 16. Learn How to Create MeasurableWORD OF MOUTH KPI’sSIGN UP FOR APPADDICTIVE TRAINING:EMAIL: nyc@appaddictive.com23
  17. 17. 5 Steps to Developing a Social Media Strategy:1. Set Objective: focus on critical Touch Points and barriers to overcome2. Understand who your “Active Loyalists” and “High Potential” costumers are3. Identify & select best forums to engage4. Engage & Lead your Target Audience5. Foster Advocacy & Bonding – connect Loyalists & High PotentialsStart with an assessment of current efforts…
  19. 19. Thanks!