1. Social Media and Multi Channel Retail Rick Mans - Social Media Evangelist
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.
3. Cases Dell 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 Dell.com and make a purchase there. You can earn money online Procter and Gamble Procter & Gamble'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't want to talk about them. What's very interesting to note is that P&G found community building to be four times more effective than traditional advertising. http://bits.blogs.nytimes.com/2009/06/12/dell-has-earned-3-million-from-twitter/ http://www.themoderatorcommunity.com/blog/case-study-community-building-4-times-more-effective-advertising-finds-procter-gamble
4. Ecosystem Twitter Twitter, a micro-communication service that gives users an opportunity to express their thoughts in 140-character "tweets," 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. Advertising 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. The figures from PricewaterhouseCoopers and the IAB tell a success story for the online industry, which has toppled TV's 50 year reign as the UK's leading medium. Online advertising now accounts for 23.5 per cent of all ad spend compare to TV's 21.9 per cent. Teens rely more on friends Teens don'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. http://live.psu.edu/story/41446 http://www.revolutionmagazine.com/news/rss/942047/Its-official-online-bigger-TV-ad-spend-figures-show/ http://www.forrester.com/Research/Document/0,7211,54086,00.html?src=Alert
5. Social media as killer feature for Motrin The ad What happened 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. 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. Developments 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. Bloggers began calling for boycotts. Bloggers asked their readers to alert the mainstream press. 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 http://parenting.blogs.nytimes.com/2008/11/17/moms-and-motrin/
6. How did Motrin respond Developments By Sunday evening the ad was taken offline by McNeil Consumer Healthcare, the maker of Motrin. The response 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. 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. -Kathy Kathy WidmerVP of Marketing - Pain, Pediatrics, GI, SpecialtyMcNeil Consumer Healthcare # times Motrin was mentioned Motrin peaked on Twitter http://parenting.blogs.nytimes.com/2008/11/17/moms-and-motrin/
7. What are the trends? Partners Trends Embedding services into other brands and products Responses: Standards like OpenSocial Suppliers Customers Responses: Social CRM Trends Agile ways of working including prototyping Trends Web 2.0 Social media & Social networking Potential for concepts like Social SRM, Agile PLM SOA & Cloud Computing External e-Business Internal Business Network Transformation Trends Web-oriented personnel Knowledge sharing & collaboration Response: Cloud computing Trends Multi-channel Retail, Industrialisation Flexibility/agility Response: Enterprise 2.0 Employees Operations & Systems
8. The previous slide is incorrect Why Slides and images are static, customers, partners, suppliers and employees are changing roles continuously. (Potential) Customers do employee work Customers are suppliers and partners
9. The world is flat (especially from 2005 onwards) Web 1.0 Web 2.0 Traditional media Google search Flickr Mainly Broadband Mainly narrow band Alternative media netvibes Publishing is complex and limited to few traditional media and online merchants Value is created by aggregating content (portals) Wikipedia Easy and free publication for all Value is generated by tools allowing to publish easily 2004 2005 Generation V 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 accomplishments (merit) and an increasing preference for the use of digital media channelsto discover information, build knowledge and share insights Generation V is here The Business Impact of Social Computing on Marketing and 'Generation Virtual‘ – Gartner ID Number: G00158087
10. Members of generation V are not all the same Differentiate Marketers must plan for varying levels of engagement to accommodate them, as well as harness their influence for marketing purposes and, ultimately, for transactions 6 segments of online users
12. It is mentioned in our Technovision Mash-up Applications Mashup applications Real-Time Business Process Control Real-time business process control Real-time Integrated Business Intelligence Real-time integrated business intelligence Composite Applications Composite applications Sensing Networks Sensing networks Packaged Sector / Segment Solutions Packaged sector / segment solutions Smart Business Networks Smart business networks Free Agents Nation Free agents nation Role Based User Portals Role-based user portals Social collaboration tools / Wikinomics Social Collaboration Tools / Wikinomics iPodification iPodification Software as a Service Software-as-a-service Google-fication Google-fication Utility Business Infra-structure Utility business infra-structure Mastered Data Management Mastered data management Jericho Style Security Jericho style security Rich Internet applications Rich Internet Applications Key technology building blocks
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14. Creating additional value through business innovation with markets, players and consumers constantly shifting position
22. Match your goals withthose of your (potential) customers Use the goals in the SMILE-model to translate your goals Enagement / Brand building Need / Want Recognition Information search Provide context Promote products Evaluation Purchase Trust / transactions Postpurchase Satisfaction / loyalty Model inspired on: The Business Impact of Social Computing on Marketing and 'Generation Virtual‘ – Gartner ID Number: G00158087
23. The online channel develops fast and what yesterday was a “Differentiator” may today be a “Must have” Differentiators Becoming the norm Must have
24. Web care One of the thingsyoucan do withsocial media
26. Webcare has different stages Webcare Don’t wait till the customers come to you Interactive Pro active Reactive Classic Passive Wait till the customer comes to you
29. Public relations to consult what can and can’t be communicatedDiscover and prevent issues Share successes Web care Get feedback for product development Educate customers Problem solving Customer experience Marketing Customer Care
30. Thinkonhowyoucould response .. or are you completely clueless Do you have plan… http://xkcd.com/386/ http://www.web-strategist.com/blog/2008/12/31/diagram-how-the-air-force-response-to-blogs/
52. These groups maintained large online presence; operated independently of the company; exchanged and showed creative toy designs and models amongst themselves
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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. Through the Lego Factory, the company has taken a step further in the evolution of user involvement, building strong brand relationship
56. The initiative has created high levels of awareness and interest with the consumers
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. Users interested in custom-designing their own Lego models have to download and install the ‘Lego Digital Designer’ –
59. In the designer, the user can drag and drop to create a virtual toy design
60. Once the user has created a design, he can upload the same to the online gallery
61. Lego approves all designs before they are added to the online gallery, to filter out models for appropriateness for all age groupsSource: MRD Lab Analysis. Capgemini, “ECR Europe Conference: Future Consumer Presentation”, May 2008. coBrandit.com, “Lego Co-creation Presentation by Mark Hansen: Video”, September 2006. Crowdsourcingdirectory.com, “Co-Creation in Lego Factory”, September 2007. European Centre for the Experience Economy, “Lego’s participative army marches on”, April 2008.
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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
67. R&D investment as a percentage of sales is down from 4.8% in 2000 to 3.4% in 2006
68. P&G’s average two-month cycle of generating physical prototypes and testing them with consumers has reduced to around 24 to 48 hoursP&G’s 7500+ R&D team work on solutions suggested and with internal communities INNOVATIONS In Areas Of Packaging, Design, Marketing Models, Research Methods, Engineering, Technology, Etc Source: MRD Lab Analysis. Harvard Business School, Working Knowledge, “P&G'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”.
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70. Nike+ was born as a multi-channel, multi-sensory marriage of Nike and Apple technologies
76. August 2008; 800,000 people globally simultaneously run a 10km race in 26 cities
77. Share of the Sports Shoe market: 2006 – 48% 2008 – 61% (12 month average)CUSTOMER CENTRICITY THROUGH BETTER INTERACTION USING WEB 2.0 Nike.com III Widgets for setting challenges, goals… Blog facility for Nike+ users Link to purchase Nike+ kit and other Nike gear I II III III II I Source: MRD Lab Analysis. Nike+ website. ‘Nike does business 3.0’ Phill Butler, 2007.
78. Contact details Rick Mans rick.mans@capgemini.com http://twitter.com/rickmans http://www.linkedin.com/in/rickmans
