Engaging the customer

New Marketing
Understand, Embrace
and Engage with
Your Customer

Dr. Ute Hillmer, Better Reality Marketing
Reutlingen, 12.6.2012
12.6.2012 Dr. Ute Hillmer

Content of the SM Marketing Lecture
1. Why engaging with the customer?
2. The Social Media Marketing Basics
3. Content Marketing for B2B
4. The SM Toolbox
Corporate Website Crowd Sourcing
Corporate Blog Online Shops
Social Networks Microblogging
Content Sharing Platforms Social CRM

5. Cases
6. Social Media Marketing in Practice

Engaging with the
Customer
“Do I have to do this?”


Why is Marketing Changing?

Do I have to be in the Web 2.0, in
Social Media as a Company?

Do I really have to be there as a
B2B Company?


Die


Why is Marketing
Changing?
Because buyer behaviour
is changing significantly!


How did you buy yesterday?
How do you buy today?
How will you buy tomorrow?


The Power of Recommendations:
„I‘ll Have What She is Having“


Change Engines on the Meta Level
Technological Development
• Digitalization • Visualisation tech.
• Network technologies • Social Media
• Converging media • Digital distribution
• Storage technologies • Intellig. automation
• …

Social Development
The mature human – the mature customer
• Selfconfidence
• Participation
• Self-determination
• Individualisation


Changing Kommunication from
Sender

Receiver


Changing Kommunication to
Sender

Receiver


From Product- to Customerfocus
Product Customer Needs
Price Customer Cost
Place Convenience / Access
Promotion Communication
McCarthy: Basic Marketing: A managerial approach, 1960
Schullz, Stanley I. Tannenbaum, Robert F. Lauterborn, Integrated Marketing Communications, 1993

Social Media –
“Do I really have to
be there as a
Company? “

It‘s not only the web 2.0 generation that is
Warum sind Sie in Sozialen Netzen
online
(Europea Data)

...to get to know things about
(new) products / brands
...to come in contact with brands /
companies

...to stimulate my career

...to find other users of a certain
brand / product
...to find promotions of a certain
brand / product

...to become a famous person

...to become an opinion leader
12.6.2012 Dr. Ute Hillmer Source: Social Media Around the World 2011, InSites Consulting

Customers + Web 2.0 Technologies


Social Media: Does it Pay Off? 1

http://www.experian.com/simmons‐
research/register‐2011‐social‐media‐consumer‐
trend‐report.html


http://www.experian.com/simmons‐
research/register‐2011‐social‐media‐consumer‐
trend‐report.html

They talk about you!
• They do it with or without you … you should steer
the direction best you can!
• Dell Hell was a showcase starting point in 2005


Dell Hell


Dell Hell 2

“Obviously a lot of people are in the blogosphere
talking about their issues with Dell products, why aren’t
we doing anything about it?”
Michael Dell, 2006


Dell

2006:“Obviously a lot of people are in the blogosphere talking about their
issues with Dell products, why aren’t we doing anything about it?”
Michael Dell, 2006

2011: Dell named “most social brand of 100 top brands”

Targeted Customer Dialog


Social Media –
“Do I really have to be
there as a B2B
Company? “

Dr. Ute Hillmer, Better Reality Marketing 19.12.2011

Social Media

Not just for nurds


How Social Media matters to B2B
• Chief stakeholders may not be using social media.
– but their lieutenants will

• Social media is impacting how B2B decisions are
being made.
– Background research
– Expertise
– Search results impact


Social Media and the Buying Process
Post-sales
user-exp. reports
support+help
complains
learning
upgrading
Sales
looking for the best deal

Pre-sales
looking for information


Social Media and the buying process


Customer Centric Business Model
Marketing
Product/Service

Customer

Dr. Ute Hillmer, Better Reality Marketing 2005.
T. Hannagan, Management: Concepts & Practices,
12.6.2012 Dr. Ute Hillmer 19.12.2011

Development Steps in Marketing
(Meffert, 2008 S. 8)
Inhaltlicher Fokus
des Marketings

Netzwerk‐
orientierung Netzwerke

Umwelt‐
orientierung Umwelt

Wettbewerbs‐ Wett‐
orientierung bewerber

Handels‐
Handel
orientierung

Verbraucher‐ Ver‐
orientierung braucher

Distributions‐
Unter‐
orientierung
nehmung
Anspruchs‐ 1950‘er 1960‘er 1970‘er 1980‘er 1990‘er
spektrum des Zeit
2000‘er
Marketings


Konvergenz des Mediensystems (Gläser 2010, S. 274)
Traditionelle Trägermedien Traditionelle Übertragungsmedien Universalmedium

Form der Text/ Bild        Ton         AV Ton         AV        Sprache       Daten      Multi‐ Text/Bild/Ton/
Kommunikation Sprache/AV/
media Daten/Multimedia
Medium Film/ Fern‐ Telefon ‐ Daten ‐ Online ‐ Universalmedium
Buch    Presse    Audio  Video Hörfunk sehen dienste dienste dienste

Produktions‐ Verlag  Verlag Verlag Verlag Sender    Sender Dienst ‐ Dienst ‐ Dienst ‐ Universalmedium‐
unternehmen leister leister leister unternehmen

Distribution:
Terrestrische Breitbandkabel Internet Satellit Telefonnetz
Konvergente
Sender Mobilfunk
Datennetze

Radio, TV, Pay‐per‐channel/view, Video‐on‐demand, Audio‐/Video‐Streaming, Internetdienst, Teleshopping,E‐Mail

Konsum:
konvergente Fernsehgerät PC Handy Print
Konsumgüter

„Push“ Communication
Agency  Media  Fulfillment

Unique Products / Offers
Marketer Customer /
Messages and Incentives
Prospect

D. Schultz etDr. Ute Hillmer Customer-Brand Relationships , 2009, p. 5
12.6.2012 al., Building

„Pull“ Communication
Web Search
Employees/Recommenders/Distributers/Influencers
Agency  Media  Fulfillment
Competitors

Unique Products / Offers Competitors
Marketer Customer/
Messages and Incentives
Competitors
Prospect
Competitors

Word‐of‐Mouth New Forms of Media

D. Schultz etDr. Ute Hillmer Customer-Brand Relationships , 2009, p. 6
12.6.2012 al., Building

360° integrated Marketing Communication (Don
Schulz 2009)

Botschaft

360°
Marketing‐
Kommunikation

Kunde/ Media
Community


Changes in Marketing:
The Marketing Funnel
• Is the funnel still there?

Attention

Interest

Preference

Action


360° Medienmanagement
Integriertes Markenkommunikationsmodell (Don
Schulz 2009)

Botschaft

Kunde Media


Product positioning process
• Generally, the product positioning process involves:
• Defining the market in which the product or brand will compete (who the
relevant buyers are)
• Identifying the attributes (also called dimensions) that define the product
'space'
• Collecting information from a sample of customers about their perceptions of
each product on the relevant attributes
• Determine each product's share of mind
• Determine each product's current location in the product space
• Determine the target market's preferred combination of attributes (referred to
as an ideal vector)
• Examine the fit between:
– The position of your product
– The position of the ideal vector


Positioning concepts
• More generally, there are three types of positioning concepts:
• Functional positions
– Solve problems
– Provide benefits to customers
– Get favorable perception by investors (stock profile) and lenders
• Symbolic positions
– Self-image enhancement
– Ego identification
– Belongingness and social meaningfulness
– Affective fulfillment
• Experiential positions
– Provide sensory stimulation
– Provide cognitive stimulation


Social Media
Basics
What do I have to know and
understand to get started?

How to get started
1. Stay focused on your objective
• Define marketing goal
• Define target markets

• Which channel, which
medium, which platform will
help me reach my target?

Be where your
customers are!!

How to get started
2. What do you intent to achieve?
• Win additional customers • Increase communication with
• Gain a new customer base customers
• Increase sales • Increase website traffic
• Increase awareness • Increase image
• Enter new markets • Change image
• Increase online reputation

As with traditional marketing:
set yourself realistic goals!


How to get started
3. Where are your customers having their conversations?

“Let's spend a day in your customers
media mix and learn to understand what
they experience, how they feel, and most
of all, how they communicate and
interact. “
Kevin Colleran, Facebooks #1 Sales Rep


“Spend a Day in your
Customers Media Mix”
“Let's spend a day in your customers media mix and
learn to understand what they experience, how they
feel, and most of all, how they communicate and
interact. “
Kevin Colleran, Facebooks #2

How to get started
4. The Content

Relevance

Benefit
Entertainment


How to get started
5. Set Strategy + Processes
Ask yourself
• Where are my customers => What • Which social networks will be
product(s) are suitable for social suitable?
networks? • What reactions should I be
• How do I position these products? prepared to get?
• Does my CI and brand fit the online • How will I react to negative
community? feedback from blogs, etc.?
• How do I communicate online (tone • Do I communicate centralized
and stile)? or distributed?

You have no glue?
Then have a look how your competitors do it!

Social Media Marketing has an ever
growing Toolbox
– Search Engines – Podcasts
– Forums – YouTube
– Blogs – Price Search Engines
– Interest Groups – Rating Sites
– Portals – Picture Galleries
– Social Networks – …
(Facebook, Twitter, Xing, LinkedIn,
Spotify, Pinterest…)


The Old Way:
eMarketing and eCommerce Tools
– eMail
– Portals
– Corporate Websites
– …


Social Media Marketing

Trad. Media vs. Social Media
Shouting vs. Sharing

→ additional Marketing Chanel(s)

Consequences of Social Media Marketing
for the Product Range “The Long Tail”
•

Chris Anderson: The Long Tail, 2006.

for the Customer
“The Cluetrain Manifesto (2001)”
95 Theses Excerpt
1. Markets are conversations.
12. There are no secrets. The networked market knows more than companies do about
their own products. And whether the news is good or bad, they tell everyone.
17. Companies that assume online markets are the same markets that used to watch their
ads on television are kidding themselves.
18. Companies that don't realize their markets are now networked person-to-person, getting
smarter as a result and deeply joined in conversation are missing their best opportunity.
19. Companies can now communicate with their markets directly. If they blow it, it could be
their last chance.
21. Companies need to lighten up and take themselves less seriously. They need to get a
sense of humor.


for the Customer
“The Cluetrain Manifesto (2001)”
• “These networked conversations are enabling powerful new forms
of social organization and knowledge exchange to emerge.
• As a result, markets are getting smarter, more informed, more
organized. Participation in a networked market changes people
fundamentally.
• People in networked markets have figured out that they get far
better information and support from one another than from
vendors. So much for corporate rhetoric about adding value to
commoditized products.”

Levine , Locke, Searls ,Weinberger:
The Cluetrain Manifesto: The End of Business as Usual, 2001.

Σ Social Media Basics

#1 Built and maintain networks:
THE SM TOOLBOX

#2 Built credibility and trust, especially in B2B:
CONTENT MARKETING

#3 Be found by your target market:
SEO + SMM


Recap Social Media Basics
• What was most important for you so far?
Tell your neighbor to the right and left.

• What open question emerged?

• What is unclear?


What is
Content
Marketing?
Dr. Ute Hillmer


Content marketing equips
buyers with the knowledge to
Content Marketing better-informed
make
decisions.
The thinking behind it:
Central to content marketing is the belief that if businesses
deliver consistent, helpful information to buyers at the right
time, then prospects will ultimately reward the company with
their purchase and loyalty.

What is Content Marketing?

Content is the reason
people go to your site


Give your customers the content they
want…

…not what YOU think they need!

Picture Dan Zarella

Why is Content Marketing important?

Average person is exposed to
5.000 ads / offers per day

Buyers have tuned out marketing

Think of an Art Gallery

Where is the Art?


People come to see art,
not empty frames or empty walls

Content is the reason
people go to your site


Content Marketing Fundamentals 1
Shift thinking from marketer to publisher
1. Define a critical group of buyers
2. Determine what info prospects really need
3. Determine how prospects want to receive info
4. Deliver info for maximum impact on goals
5. Measure and recalibrate



World views!



1. Consider the worldview of your
target customer group

2. Tell a compelling story



Age is no longer a key indicator -

areas of interests are!


Content Marketing im B2B
• Companies don‘t have conversations, PEOPLE have!

• B2B is usually about niche problem solving – problems
are best solved in teams with many different experts
contributing  “niche”
CONVERSATIONS

• Problem solving requires trust  RELATIONSHIPS

• 1:1 Marketing was a buzzword of B2B  n:n

Content Marketing im B2B
• PEOPLE

• niche CONVERSATIONS

• RELATIONSHIPS

• n:n

→ Social Media Chanels

New Technologies in B2B Markets

thus we have to
change how we
do things...


Behavioural Economics
• Behavioral economics and the related field, behavioral
finance, study the effects of social, cognitive and emotional
factors on the economic decisions of individuals and
institutions and the consequences for market prices, returns
and the resource allocation. The fields are primarily
concerned with the bounds of rationality of economic agents.
Behavioral models typically integrate insights from
psychology with neo-classical economic theory. In so doing
they cover a range of concepts, methods, and fields.[1]
• Behavioral analysts are not only concerned with the effects of
market decisions but also with public choice, which describes
another source of economic decisions with related biases
towards promoting self-interest. 1


An Idealized Technology Product Lifecycle
Marketsize

Innovators Early Early Late Time
Laggards
2,5% Adopters Majority Majority 16%
13,5% 34% 34%
Moore; Crossing the Chasm

An Idealized Technology Product Lifecycle
Marketsize

Laggards
13,5% 34% 34%

Adopter Categorization on the Basis of
Innovativeness
Pragmatists:
Stick with the herd!
Marketsize

Conservatives:
Hold on!
Visionaries: Skeptics:
Techies:Get ahead! No way!
Try it!

Time
Innovators Early Early Late Laggards
Adopters Majority Majority


Mainstream Behaviour
number of adoptions
Noncumulative

Increasingly
conforming behaviour

Innovators Early Early Late Laggards Time

Hillmer, Technology Acceptance in Mechatronics, 2009.

Individualistic Behaviour
number of adoptions
Noncumulative

Increasingly
individualistic
behaviour
Chart based on Rogers 1995, p. 262 and Moore 1999, p. 12


Σ Content Marketing


Σ Content Marketing
„Once upon a time…“


Best and Worse Practice


Trust building with Pragmatic Innovation
Customers
„Concentrate a overwhelming power on a small,
focused target market segment“
 FOCUS

Customer


Focus


Trustbuilding with
Pragmatic Technology Customers
• Be familiar with the worldview, processes and the
issues that worry your customer segment
Customer Insight
 Relative
advantage
 compatibility  References
 trialability  Peer communities
 observability
 Vender neutral
 less complexity technology information


Herausforderung B2B im Social Marketing


Krones AG einer der führenden Hersteller von Maschinen und
Anlagen für die Prozess‐, Abfüll‐und Verpackungstechnik.


Krones Ziele im Web
 Entscheider ansprechen (insbesondere zukünftige)
 Zielsegmente ansprechen: z.B.
Maschinenbediener, Weinblogger
 Recruting neuerTwitter
Facebook Mitarbeiter Xing Youtube

 Identifikation der Mitarbeiter mit dem Unternehmen
stärken

C. Schmidt, Social Media Officer, Krones AG, 2010

Interessenten-und Kunden Community:
Nutzertypologien

Li, Bernoff, Groundswell; Forrester Research, 2009, S.43

Membership Development Stages

Hagel, Armstrong: Net Gain; McKinsey 97

Im Dialog mit Anwendern
• Facebook „Krones Academy“

 Facebook im Doppelpack: Krones und Krones Akademie ca. 2000 Fans
 Recruiting , Mitarbeiter und Kundenbindung

Im Dialog mit heutigen und zukünftigen
Entscheidern - zielgruppenspeziefisch


Im Dialog mit heutigen und zukünftigen
Entscheidern


Im Dialog mit dem zukünftigen Mitarbeiter


Best Practice Innov. Marketing


Best Practice ‚Listening‘
Influencer Monitoring: Adobe with eCairn
• maps virtual
social
communities
(groups of
passionate
people experts
on a topic) and
ranks key
influencers
within a specific
community


Best Practice ‚Talking‘
UPS with popurls.com + whiteboard videos


Best Practice ‚Energizing‘
Spiceworks
• The Spiceworks Network is a community of over
1 million IT pros from small to medium Bs using
the Spiceworks IT management application in
190 countries.
• Most active
"SpiceHeads",
attracted 1,500
new IT
professionals
every day.

Best Practice ‚Spreading‘
Threatpost by Kaspersky
• Threatpost is a security news site.
• The editorial team for Threatpost created a site that includes both
original reporting and aggregation of the most important security
news stories.
• Threat post reached 208,000 page views, 90,000 unique visitors, and
200 monthly comments between November 2009 and June 2010.
There are 10,000 op-in subscribers to its newsletters in English,
Spanish, and Portuguese.
• Combined, Threatpost activities have captured over 1200 leads for
Kaspersky.


Best Practice ‚Supporting‘
IBM developerWorks
• IBM developerWorks is a free community and social network for 8 million
developers and IT professionals worldwide. It includes content and discussions on
open standards, open source, and IBM technical resources in English, Chinese,
Japanese, Russian, Korean, Vietnamese, Brazilian Portuguese, and Spanish. It
includes 30,000 articles, forums that attract 1 million visitors a month, 400,000
active profiles, 800 bloggers, and 450 wikis. IBM saves $100 million annually from
people who use this resource instead of contacting IBM support.


Mehr bei Forrester
• http://forrester.typepad.com/groundswell/2010/10/wi
nners-of-the-2010-forrester-groundswell-awards-
b2b.html


Some Not So Lucky Strickes

See Razorfishs presentation at:
http://www.slideshare.net/rlovinger/content-gone-wild


What is a Content Strategy?
Content Strategy plans for the creation, publication
and governance of useful, usable content.

Content strategy helps you understand not only what
content needs to be created and when it needs to be
published, but why. (Kristina
Halvorson)


Content Strategy at eBay


Let‘s learn from mistakes others made
Slides from Razorfish


Technology Marketing –
What role does
engegement and
dialog play? “


1. technology product lifecycle or:
why focus??
2. diffusion of innovation
3. customer profile categories
4. 5 things to remember
5. summary


development phases of
a new business or service
Cash flow over time

Market
Demand:
Product
R&D
Lifecycle

R&D and
inbound Marketing
outbound Marketing

an idealized technology product lifecycle

Disruptive Innovation

Continuous Innovation
Market size

Laggards
13,5% 34% 34%
Rogers Diffusion of Innovation 1995

diffusion of innovation varies…
Marketsize

Time

Marketsize
Marketsize

Time

Rogers DiffusionUte Hillmer
12.6.2012 Dr.
of Innovation 1995 Time
Moore; Crossing the Chasm 1999.

Why do certain
innovations diffuse much
faster than others?

Why do certain innovations
have a much longer
main street momentum?


new disruptive technology …

changes how
we do things

thus we have
to change how
we do things...


technology life cycle and its buyer
categories
Market size

Laggards
13,5% 34% 34%
Chart based on Rogers 1995, p. 262 and Moore 1999, p. 12

technology life cycle and “the gap” or:
why you should focus
Market size

Laggards
13,5% 34% 34%
Chart based on Moor 1999

mainstream behaviour
Marktgröße

Increasingly
conforming behaviour

Innovators Early Early Late Laggards Zeit


individualistic behaviour
Marktgröße

Increasingly
individualistic
behaviour
Innovators Early Early Late Laggards Zeit


things to remember

stereotype behaviour is
universal


start by focusing
on 1-3 niches


an advantage for one
individual, a thread for
another !


- segment your customer
communication to accommodate
the differences!


when your technology dramatically
changes human behavior -
be prepared, …


the majority of the market might
hesitate to buy for a long time

but when the new way of doing
things gets accepted, everybody wants
it right away.


what you are familiar with, will be easier
accepted by the mainstream

– even if the link is more than vague!


Intel, mobile devices and 野比のび太
野比のび太
Nobita Nori of the
Doraemon Manga with
his dōgu “doko demo
door“, the “go-anywhere
door“ that opens up to
any place the user
wishes and imagines.


search for local familiarities
and wrap it in a story

What you are familiar with, will be easier
accepted by the mainstream – even if the link is
more than vague!

Source: Mail Online , 17 November 2010

Use the different personality profiles in
your customer dialog:
visionaries as visionaries,
pragmatists as pragmatists


early adopters = visionaries
Marktsize



early majority = pragmatists
Marktsize



in


don’t forget to
look outside the
boundaries of
rationality, despite the
economic
these usually context
vary by culture


Subjective Construction of Reality
Each individual sees the world
through subjective lenses.
Consider typical customer
segments universally and look
for social and emotional
differences by region...

and then TELL YOUR STORY!
Seth Godin, All Marketeers tell stories, 2009
Mischel and Morf, Ute Hillmer of self and identity, 2003.
12.6.2012 Dr. Handbook
Kelly, The psychology of personal constructs, 1991

And now


Exanples Dialogmarketing heute
• mymuesli
• Dell
• Krones
• Litago Milch
• Jugend gegen Aids
• Domino Pizza


Krones Kundenfokus
Krones plant, entwickelt und fertigt Maschinen und
komplette Anlage … wie viele andere auch … aber:
Vertrauensaufbau durch klare Ausrichtung auf
Marktsegmente
- aus der
Kundenperspektive!


Krones Support und Training


Wismet Filter für höchste Ansprüche


Elsäßer Filtertechnik


Vertrauensaufbau mit dem
“Pragmatischen Technologiekunden”
Seine Arbeitsprozesse, seine Probleme und Sorgen
sowie seinen Blick auf die Welt kennen und
verstehen. Kunden Insight
 Relative Vorteile
 Referenzen
 Kompatibilität
 Testbarkeit  Gemeinschaft
Gleichgesinnter
 Beobachtbarkeit
 Reduzierte  Herstellerneutrale
Informationen
Komplexität

Dell‘s zielgruppenspez. Kundendialog


Es wird auch über Ihre Produkte geredet –
sind Sie im Bilde?
• Man redet über ihre Produkte – mit Ihnen oder ohne
Sie …
Versuchen Sie den Verlauf mitzubestimmen!
• “Dell Hell” war 2005 ein Weckruf


Jeff Jarvis Blogpost


Dell Communities Blog‘s ,Forums, IdeaStorm

Zielsetzung
 Kundeninsight
 Plattformen für Problemlösungen und Ideen
 Kundenbonding, pos. Marken-wahrnehmung
Zielkunde
 Segmentierte Kundengruppen + zukünftige Kunden
SM Strategie
 Beteiligung + Lernen von und mit Kunden
 „Be were your customer is“
Resultate
 Ca. 1.7 M registrierte Mitglieder
 2.300-2.500 Posts/Woche


TechCenter Blog, Chat, Community


Dell IdeaStorm Ideenbörse und Innovationszentrum

Zielsetzung
 Kundenideen + –problemen generieren
 Kundeninsight zu Dringlichkeiten
Zielkunde  Marketing
 Kunden
 F&E
 Potentielle Kunden
SM Strategie
 Beteiligung + Lernen
Resultate
 15.000 Ideen
 >900.000 Stimmen abgegeben
 500 Ideen Implementiert


Dell Design Studio Mass Individualisation
Zielsetzung
 Mass Customization
 Brand-
Wahrnehmung
Zielmarkt
 Individualist. Kunden
SM Strategie
 Online Angebot


Dell Shop eCommerce mit sozialen Inhalten


DellOutlet Twitter als Outletstore

Zielsetzung
 Verkauf
 Brand-Wahrnehmung ändern
Zielmarkt
 Kunden
SM Strategie
 Twitter als Geschäftsplattform
Resultate
 Juni 2009: $6,5 M Umsatz
 Twitter USA: 1,5 Mio Follower
 (D: 131 seit Feb. 2011)


DellOutlet Deutschland Twitter als Outletstore


DellOutlet China Twitter als Outletstore


DellCares Twitter als Supportkanal
Objective
 Kundenprobleme lösen
 Brand-Wahrnehmung ändern
Target
 Kunden
SM Strategie
 Twitter als Supportkanal
Resultate
 10.000 Follower
 10.000 Tweets


Dell Monitoring „Social Media Listening Command Center“
Zielsetzung
 Informieren: Kundenfeedback in
Echtzeit bereitstellen
 Zuhören & Agieren: frühe Warnsignale
erkennen und schnell handeln
 Sicherstellen, daß effektive
Kundeninteraktionen stattfinden
 Unterstützend – Infos und Support für
die Communities mit Einfluß im Netz
Zielkunde
 Alle relevanten Abteilungen im
Unternehmen
 Kunden/potentielle Kunden
 Communities / influencer
SM Strategie
 Schaltzentrale

The
Social Media
Toolbox


What Media Channels should I
use?

Where should my company be
present?


The Social Media Toolbox

Choose your
channel wisely

Slide by Presentation Advisors

Select YOUR Tools
not All Tools!


Which Media to choose?

12.6.2012 Dr. Ute Hillmer 19.12.2011

Social Media as a Workflow Process
Communication
Channel Corporate Hosting

XING PR Content
Youtube
Facebook Website
Flickr
Twitter Microsites
Issuu
Foursquare Blog
Slideshare
Yammer Newsletter

Slide by Björn Eichstädt, Storymaker

Types of Social Media Interaction
by Source Social
Service
Questions &
complaints

Social Market
Market‐ Sales Information

triggered social
Social Customer
interactions Marketing Preferences
(outside‐to‐outside) Market
Twitter
Corporate Social Content Existing Social Media FB
Accoun
Corporate Blogs, Forums, (Facebook, Xing, Twitter, Page t
branded / unbranded Social Linkedin, etc.)
Networks, etc.) Google …
+
Business‐ Customer‐facing
triggered social employee

interactions Monitoring /
Data Mining
(inside‐to‐outside Corp.
inside‐to‐inside)
Website

Socially‐enabled Socially‐enabled Socially‐enabled Socially‐enabled
Marketing Sales Service F&E

based on Cipriani 2009
12.6.2012 Dr. Ute Hillmer Marketing Sales Service F&E

by Purpose

Marketing Sales Service/Support Innovation

Social Marketing Social Sales Social Support Social Innovation
Insight Insight Insight Insight

Rapid Social Rapid Social Rapid Social Crowedsourced
Marketing Response Sales Response Support Response F&E

Social Event Socially‐enabled
Sales Referal
Management Service

Social Campaign Proactive Lead
Tracking Generierung

CRM = Customer Relationship Management


How to get started
3. Which Media to choose?
generate interest for a
Marketinggoal  Get visitors to the
conference
website
 Media

maybe

maybe


Kundenprofile beachten
• Was machen Silver Surfer (>50 J.)
Online?


Kundenprofil: Digital Natives
Was machen Digital Natives (zwischen 14 und 29 J.) online?


The Corporate Website:
Center Stage +Aggregation Point


The Corporate Website
• You control the content and the design
• You can backlink all media channels to the site
• One stop overview, monitor and archive
• Low cost professional site with Open Source tools
like Wordpress und Joomla, templates, plug-ins und
RSS feeds.


The Corporate Website
• You must manage and maintain the site including its
layout and design, content, tech. support and its
URL(s)
• Corporate Websites are usually seen as push
marketing.
• Cost and time intensive


The Corporate Blog
as the “Sun of the Solar Content System”


The Corporate Blog
blog.daimler.de


Dell Blogs Blogs ,Forums

Objective
 Kundeninsight
 Plattform for problem solving and ideas
 Customer bonding, pos. brand recognition
Target
 Segmented customer groups + prospects
SM Strategy
 Engagement and learning from and with customers
Results
 1.7 M registered members (spring11)
 2.300-2.500 Posts/Woche


Direct2Dell Blog


TechCenter Blog, Chat, Community


Dell Shares Investor Relations


The Corporate Blog
Employees as Experts


Types of Social CRM Interaction
Social Questions &
Service complaints

Social Market

triggered social
Social Customer
Existing Social Media
Corporate Social Content Networks
Corporate Blogs, Forums, (Facebook, Xing, Twitter,
Networks, etc.)


(inside‐to‐outside Data Mining

Marketing Sales Service R&D
12.6.2012 Dr. Ute Hillmer Marketing Sales Service R&D

The Corporate Blog




Sales Referal
Management Service



The Corporate Blog
• You can show that you know a lot about a topic
• You are easily found by search engines (search engines follow
backlinks; a good article easily generates 10-50 backlinks in a few days)
• It is free for the customer and free media for you as a
vendor
• You can segment your target market nicely
• It can be the starting point for new content, hosts
conversations, can provide context for news
• It can be a starting point for personal brands
• Small companies can get to the top of search engine
rankings

The Corporate Blog
• Frequency is a must  time consuming
• You are not credible in a “controlled” bog
• You don’t control what is said in an open employee
blog
• Generating relevant and interesting content on a
frequent basis is not easy


The Corporate Blog
Make some rules.
Empower all employees… they are the brand.

• Behave professionally and ethically.
• Take personal responsibility.
• Include a disclaimer: your opinions are yours,
not IBM’s.
• Don’t pick fights.

“Use social media as a means to expose IBM’s
experts—and expertise—to the world.”
Adam Christensen
Manager, Social Media Communications

http://www.ibm.com/blogs/zz/en/guidelines.html

Social Networks


Social Networks 2
Social networks are network communities on the
internet. Users can add friends or followers and
send them messages or notify them about updates
concerning themselves.


Built and Maintain Networks
 Individuals, professionals and companies look for
suitable networks and clusters
 Within a network, they look for suitable groups and
joint them


How Social Networks work
Think about a
sports club!


How Social Networks work 2
• Voluntary active or passive membership
• Special areas of interests
• One communicates where one has something to say
(or not), has an opinion, answers questions, asks
questions, …
• If one is open, friendly and nice, friendships will develop
that value ones expertise and opinion
• Once one has built a reputation, it will be accepted,
even appreciated if one recommends and hints one
ones products and services, online shop, other
products…

How Social Networks work 3
Friends are easily found,
one links up, meets, networks, …
and own expertise distributes …


Dell on Facebook Community
Objective
 Customer insight
 Customer bonding, pos. Brand
recognition
Target
 Segmented customer groups
and prospects
SM Strategy
 „Be were your customer is“
 Offer community experience
Results
 644.723 likes (July 2011)
 909.910 likes (Dec 2011)

Dell on Facebook Ratings


Dell on Google +


Dell on Google + Hangouts


Social Questions &
Service complaints

Social Market

triggered social
Social Customer
Networks, etc.)





Areas of Action in Social CRM




Sales Referal
Management Service



Starting point for Social Customer Relationship
Management




Sales Referal
Management Service



Social Networks
• Direct customer communication • Efficient marketing tool
• Largest social Network • Gives companies “a face”
• Many forms of interaction or “faces”
• Entertainment • Connectable with twitter,
• Full display of many media Google+, linkedin…
formats (pictures, movies, games, ...) • Mobile app
• Cool ideas result in huge reach • Location updates
• Personal reputation • Many apps enlarge
management functionality
• Facebook statistics

Social Networks Practice

• Uncontrolled environment • Privacy problems
for employees – Like button (documenting all
activity on the website)
• Time-consuming – Open FB tab in Browser
• Less exciting products – Apps can result in spam

can have a hard time • Hard to separate private and
gaining recognition business
• FB can change the rules as
• Requires high frequency they like (free service)
of relevant content
generation

Business Oriented Social Networks
• More serious environments,
no personal content
• Suitable for personal business
profile pages • Increasingly commercial +
• Customer + recruiter research spam
• Personal reputation • Time consuming
management
• Not all audiences are in
• Business oriented groups these networks
• Business contact initiation and
• Often regional
management


Content Sharing Platforms
• Online Communities for archiving and sharing
content such as:
– Photographs and images
– Videos
– Audios
– Presentations


Social Media as a Workflow Process
Communication Channel Corporate Hosting

XING PR Content
Youtube
Facebook Website
Flickr
Twitter Microsites
Issuu
Foursquare Blog
Slideshare
Yammer Newsletter


Content Sharing Platforms
 Easy way to display,
archive and share • Copyright problems
 No need for own • Free data upload or
infrastructure and information spread is
storage limited
 Possible real time • No quality control of
reporting of events content and material
 Products / content is
ranked by audience


Crowd Sourcing / Open Innovation

19.12.2011


Dell‘s Crowdsourcing Aktivitäten


IdeaStorm Open Innovation Platform

Objective
 Collect product ideas, and Product solution ideas from customers
 Custoner insight ranked by urgency
Target
 customer
 prospect
 Marketing
SM Strategy R&D
 Engagement + learning
Results (7/11)
 15.000 ideas
 >900.000 votes
 500 ideas implemented

12.6.2012 Dr. Ute Hillmer 19.12.2011

Dell Design Studio Mass Individualisation
Objective
 mass
customization
 brand
recognition
Target
 individualistic
customers +
prospects
SM Strategie
 online offer


Open Innovation through Social Media


Directly involved Innovation Resources: R&D
and Marketing (inbound+outbound)
Cash flow over time

Market Demand:
Product Lifecycle

R&D

inbound Marketing

outbound Marketing


Social Questions &
Service complaints

Social Market

triggered social
Social Customer
Networks, etc.)



based on Cipriani 2009 Marketing Sales Service R&D

Areas of Action in Social CRM




Sales Referal
Management Service


based on AltimeterHillmer 2010
12.6.2012 Dr. Ute Group

Starting point forSocial Customer Relationship
Management




Sales Referal
Management Service



Online Shops


Dell Shop eCommercewith Social Content

Objective
 sales
 Change brand perception
Target
 customers
 prospects
SM Strategie
 eShop with rankings +
reviews


Recommendation Platforms
• Here users share
experiences, perceptions
and recommendations
about products, services
and organizations . • bad products are exposed
Sometimes detailed
discussions can evolve..
• Products are ranked by
audience
• credibility
• good products are usually
ranked positively


Social Questions &
Service complaints

Social Market

triggered social
Social Customer
Networks, etc.)




19.12.2011

Management




Sales Referal
Management Service



Microblogging


Twitter
Microblogging is a form of blogging that allows
users to send brief text updates (or micromedia
such as photos or audio clips) and publish them.
These messages can be submitted by a variety of
means like text messaging, instant messaging, E-
mail, digital audio or the web. (Wikipedia)


Dell on Twitter


Dell‘s Twitter Activities


DellOutlet Twitter as an Outletstore

Objective
 selling
 change brand recognition
Target
 customers
 prospects
SM Strategy
 Twitter as a sales plattform
Results
 June 2009: $6,5 M revenue
 Delloutlet: 1,54 Mio 7/11
 1,55 Mio 12/11 follower
 (D: 131 seit Feb. 2011)

12.6.2012 Dr. Ute Hillmer 19.12.2011

DellOutlet Deutschland Twitter as an Outletstore


DellOutlet China Twitter as an Outletstore


Twitter
 fast
 cheap • only short messages (Twitter 140
 real-time communication characters)
 real-time market research • short lifetime of tweets
 advertising allowed • a lot of meaningless information
 direct customer in twitter sphere
 great monitoring tool (alternative • difficult to measure
clients, e.g. tritterdeck)
 interest based, not friendship • Spam / unpleasant followers
based possible
 global • Fast media for fast + easy
 mobile mistakes

Social Questions &
Service complaints

Social Market

triggered social
Social Customer
Networks, etc.)




12.6.2012 Dr. Ute Hillmer Marketing
Dr. Ute Hillmer, Better Reality Marketing Sales Service R&D
19.12.2011

DellCares Twitter as a Support Channel
Objective
 Solve customer problems
 Change brand recognition
Target
 customers
 prospects
SM Strategy
 Twitter as a support channel
Results
 10.000 follower (7/11)
 15.600 follower (12/11)
 13.460 Tweets


Monitoring Twitter as a trend scout
Objective
 Identify future trends
 Identify brand + product issues
Target
 Marketing
 R&D
SM Strategy
 Twitter als Supportkanal


Why Social Media Monitoring?
Issue Management
What expectations do different stakeholders
hold?
Identify areas with potential for conflict early and
address them proactively (before the broader public gets
aware)

Identify, monitor and construct actions to
manage/reduce/neutralize stakeholder
discrepancy of expectations.
Develop an “early warning system”

12.6.2012 Dr. Ute Hillmer Dr. Ute Hillmer, Better 19.12.201
Reality Marketing 1

Remember: They talk about you!
• They do it with or without you … you should steer the
direction best you can!
• Dell Hell was a showcase starting point in 2005

12.6.2012 Dr. Ute Hillmer Dr. Ute Hillmer, Better Reality Marketing 19.12.2011

Customer Service and Support, CRM
Identify and address core customer needs
Sales advice
Setup / integration support
Runtime support
Customers help customers
Identify and bond with advocates
Identify and utilize star experts
Reduce support cost
Reality Marketing 1

Product Marketing and R&D
Identify + address product shortcomings / improvement
opportunities
Customer / user complains
Customer / user suggestions and ideas
Customer / user use cases
Identify and address core customer needs
Industry discussions
Crowd sourcing
Identify trends
Industry discussions
Crowd sourcing
Reality Marketing 1

SMM Value Creation and KPIs
Traditional Online Marketing
Page Impressions
Unique Visitors
Conversions
Social Media Marketing
Foster Dialog
Promote Advocacy
Facilitate Support
Spur Innovation

Reality Marketing 1


Source: rolandfiege.com Dr. Ute Hillmer, Better 19.12.201
Reality Marketing 1

Brand Management
What brand image do stakeholders have in
mind?
What brand image do I want them to have?
Develop brand buzz to help steer brand image
(truthful and authentic)

Monitor brand image of core stakeholder groups
and construe action to reduce discrepancy if
necessary
Identify brand associations
Monitor the competition
Reality Marketing 1

Success metrics must be developed with specific business
objectives in mind to be used and useful.

mythological, pragmatic, common sense
Source: Social Marketing Analytics, Altimeter 2010, p. 9

Social CRM
CRM 1.0 CRM 2.0

Targeting Establishing
need

impressions
Expansion

Acquisition

Sharing

Decision
Targeting

Expansion

Acquisition
Retention Experience
Retention

Customer Support processes
Marketing Sales Value
Service
Operation processes


Formen von CRM
Analytisches CRM
• Detaillierte Analyse aller kundenbezogenen Transaktionen und
Prozesse und Verwertung der Information für zielgruppengerichte
Strategien und personalisierte 1-to-1-Konzepte.
Operatives CRM
• Kunden-und -kanalspezifische Implementierung kundenbezogener
Geschäftsprozesse. Integration von Customer Touchpoints (Call
Center, Web etc.) und Backoffice.
Kollaboratives CRM
• Management der verschiedenen Vertriebskanäle (Multi Channel
Management) inkl. der Identifikation von Kanalkonflikten, -kosten
und -potenzialen.


Customer Centric Business Model
Produkt/Service

Marketing

Customer


Definition Social CRM
Social CRM is the business strategy of engaging
customers through Social Media with the goal
of building trust and brand loyalty.
Loyalty is defined as attitude towards a brand that inclines a
customer to repurchase it and/or recommend it to others.

Harish Kotadia, Definition of Social CRM, 2011.

Conversation‐ and process oriented

Evolution in CRM Involving customers for better customer
insight, trust building, building brand
loyalty, problem recognition and customer
segmentation.
Transaction- and process oriented
Technology enabled customer processes in order to support and organize sales-, marketing and support
More customer insight through his network
activities (Shaw) connections and communities.

CRM 2.0
CRM 1.0
Kunde Kunde
Kunde Kunde

Kunde Kunde Kunde Kunde

Kunde Kunde
Konkurrenz Supplier / Partner
Konkurrenz Supplier / Partner
Kunde Kunde
Kunde Kunde

Eigenes
Kunde Unternehmen Kunde
Eigenes
Kunde Unternehmen Kunde
Kunde Kunde

Dell „Social Media Listening Command Center“
Objective
 Inform: customer feedback in real
time
 Listen and act: recognize alarm
signals early and act upon them
 Ensure effective + appropriate
customer interaction
 Support: Information + support for
the influencers and communities
with influence online
Target
 all relevant departments
 customers and prospects
 communities / influencer
SM Strategy
 control center

Social CRM Tools and Foundation

Greenbaum, Social CRM comes of Age, 2009, p.13

Social Questions &
Service complaints

Social Market

triggered social
Social Customer
Networks, etc.)




12.6.2012 Dr. Ute Hillmer Marketing
Dr. Ute Hillmer, Better Reality Marketing Sales Service F&E
19.12.2011

Social CRM functional architecture

Market‐
Corporate Social Content Ext. Social Media Networks
Market
oriented (Corporate Blogs, Forums, Branded / (Facebook, MySpace, Twitter,
Social Tools unbranded Social Networks, etc.) Linkedin, etc.)

Social Channel
Interface

Traditional Channel Website Letter
Face to face
Interfaces Phone / E‐mail
SMS Internal Social Tools Fax
(Internal blogs, wikis, sharing platforms, social
Interne POS Business
networks, innovation portal, etc.)
Collaboration Tools Partner

Social CRM Layer

Traditionalle Processes Marketing Sales Service F&E
Based on Cipriani 2009

Management




Sales Referal
Management Service



Recap Social Media Toolbox
• What was most important for you in this
session?
Discuss it in the workgroup from the role
play.

• Make one joint statement

• What is unclear?

Hands on Exploitation
Investigate the online + social media activities of one of
the following companies:
 Mymuesli.com (Online Composition and Retail)
 Krones.de (B2B)
 Litago.no (Customer Experience)

Present in 5 Minutes, what they do Online and what you
think is useful and what not.


Suggested Reading
• Groundswell by Charlene Li, Josh Bernoff
• Positioning by Trout and Ries
• In Pursuit of Wow! + The Tom Peters Seminar by Tom Peters
• What would Google do by Jeff Jarvis
• All Marketeers tell Stories by Seth Godin
• 1 to 1 Marketing Future by Don Peppers
• CRM at the Speed of light by Paul Greenberg
• The Long Tail by Chris Anderson
• The Wisdom of Crowds by James Surowiecki
• Crossing the Chasm by Geoffery Moore
• Selling the Dream by Guy Kawasaki


Social Media -
Was macht der Marketingtrichter?
Klassisches Social
Klassisches Online
Marketing Marketing
Marketing

Auf‐
merksam‐
keit

Interesse

Präferenz

Aktion


360° Marketing
Klassisches Social
Klassisches Online
Marketing Marketing
Marketing

Auf‐ Aktivierung
merksam‐
keit Anreiz‐
schaffung
Interesse
Dialog
Präferenz
Anerkennung
Aktion Bestätigung


360° Marketing
Klassisches Social
Klassisches Online
Marketing Marketing
Marketing

Aufmerksam‐ Aktivierung
keit
Anreiz‐schaffung
Interesse
Dialog
Wunsch
Anerkennung
Aktion Bestätigung


360° Marketing

Quelle: Forrester Research 2010

This presentation is available in 3 parts in the
download area of
www.better-reality.com


Dankeschön!


Engaging the customer

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