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Social Media Case Study
- 1. February 2010 Social Media as an Effective Communications & Marketing Tool for Small Business A Case Study with Alegria Cocina Restaurant in Long Beach, CA Geoffrey Kutnick & Julie Kreisler The Kreisler Group
- 2. 2 | The Kr reisler Group p Social Media a Case Study ABSTRAC CT. Large cor rporations liike Dell™, Zaappos.com™ ™ and Best Bu uy™ have ha ad great succ cess with usinng social med dia as a com mmunications, marketing g and sales ggenerating to ool. But wouuld a similar m model using s social mediaa work for sm mall business ses? That is the question n we attemp pt to answer w within this caase study. Th he Kreisler GGroup (TKG) ), a Marketin ng and Public c Relations F Firm based in Long Beach, CA, developed a ten‐w week social m media trial w with Alegria CCocina Restaura ant. Through this trial TK KG was able t to confirm rroles social mmedia play to o help small businesse es sustain an nd grow. We e will be disc cussing in deetail the rolees social med dia can play and how that t directly affected sales f for the resta aurant. KEYWOR RDS: Social M Media, Small l Business RODUCTION INTR N With Soc cial Media be eing the buzz words for the latter ha alf of this past decade, a and ‘tweets’ being talked about b by everybody y from the President Obama to Opra ah to Ashton n Kutcher an nd back again, it made s sense why pundits, mark keters and so‐called social media ‘gu urus’ were debating g the viabilityy of small bu usinesses usi ing social me edia as a bus siness tool. B But what truuly sparked t this case stuudy were find dings from aa Citibank annd GfK Roper survey that TKG had trouble pprocessing. F First, here is the data repported from the survey release on O October 9, 20 1: 009 • 500 Small Bus siness Execuutives interviewed acros ss the US • 76 percent di id not find so ocial networ rking sites lik ke Facebook k, Twitter and Linkedin to be helpful in gen nerating business leads o or expanding g their businness • 86 percent sa ay they have e not used so ocial networ rking sites too get busines ss advice or innformation • 61 percent of f respondent ts say they r rely on searc ch engine sit tes like Googgle and Yaho oo foor business a advice or infformation Use Soc cial Media to Cre eate Bus siness Lea ads or Expand BBusiness s 24% No 76% Yes 1 Wulfhors st, Ellen. (8 Oct t. 2009). “Small Business, Soc cial Media Not Mixing.” Reute ers. Retrieved from http://wwww.reuters.com m/article/idUSTTRE59759L2009 9ten08
- 3. 3 | The Kr reisler Group p Social Media a Case Study 86% 611% Do not use social media for Rely on searc ch engines like bus siness advice or Google and Yahoo fo or informatioon business information n TKG does sn’t questionn the validity y of the resu ults mentionned above. WWe just beliv ve they askedd the wrong pe eople the wrrong questio ons. Accordinng to a 20022 Survey of B Business Owners (SBO) conducte ed by the USS Census Bur reau, almost t 1/3 of busin ness ownerss are above tthe age of 55 5. Here is a graph of theeir findings. 29% 30% 24% 2 25% 20% 20% 15% 11% % 12% 10% 5% 2% 0% Age 65+ Age 55‐64 Age A e 45‐54 Age 35‐44 Age 25‐3 Under 25 34 Age o of Business Ow wners The data from the US S Census bureau (while a little old, 2 2007 numbe ers still being g analyzed and interpretted) illustrates that a ma ajority of bussiness owne ers (60 perceent) are age 45 or older.2 This meaans that mos st business o owners were e born during g or before t the 1960s. T The original Internet, entitled thee ARPAnet, wwas not inve ented until thhe end of the decade in 1969. So, of f course a majority of business ow wners may no ot believe th hat social meedia will help p sales acquisitio ons and overall growth i if they do no ot understan nd the full ca apabilities of f the technology. Secondlyy, because so ocial media ggrows at an unpreceden nted rate witth thousands of startup companies, the know wledge divide between t those whom m ‘get’ social media and t those whom m do not contiinually growws every day. . While younnger generat tions furtherr integrate d different 2 United St tates Census Bureau. Survey of Business Ow wners. Retrieve ed from http://www w.census.gov/ /econ/sbo/02/c cvbosof.html
- 4. 4 | The Kreisler Group Social Media Case Study applications of social technology into their lives, those not exposed lack vital knowledge essential to current business and profit models. The process in which people find information about retailers, products and services has changed dramatically over the last few years. According to research conducted in March of 2009 by Penn Schoen & Berland Associates in partnership with LinkShare, 81% of respondents participate in online research ‘most of the time’ before buying a product.3 Data released from Experian’s Hitwise after 2009’s Black Friday shopping holiday revealed that 4.3% of Facebook users and 2.3% of Twitter users visited the website of a top 500 retailer immediately after visiting the social networking sites. 4 Lastly, with the large percentage of internet users consulting the web for information and reviews, 1 out of every 5 internet users use a status update service like Twitter.5 These findings led us to pursue a case study with Alegria Cocina Restaurant, to establish and prove the roles social media could play and most importantly show significant sales growth from the previous ten weeks and the same ten‐week period of the previous year. THE TOOLS TKG established that there were 3 social media tools that would allow Alegria to communicate their message effectively and efficiently to a large audience while playing to its strengths. The selected social media platforms used include: Facebook, Twitter and Flickr. WHY FACEBOOK? 1) Communicate messages to a large targeted audience effectively and efficiently 2) Boasts a user base of over 350 million people 3) 14,600 Long Beach Residents and Workers participate with status updates6^ 4) 64,000 people within Greater Long Beach use sites like Twitter & Facebook7^ 5) Very multimedia friendly: videos, pictures, links 6) The ability to reach out to potential and existing customers with friend requests*, events, groups*, fan pages, fan page suggestions & friend suggestions*. 3 Dietrich, Liane. (15 Jan. 2001). “How the Online Marketing Landscape Looks in 20ten.” UTalkMarketing.com Retrieved from http://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=16428 4 Zmuda, Natalie. (7 Dec. 2009 ). “Retailers Go Nuts for Social Media in Holiday Marketing.” Advertising Age. Retrieved from http://www.AdvertisingAge.com 5 Fox, Susannah, Kathryn Zickuhr, and Aaron Smith. “Twitter and Status Updating, Fall 2009.” Pew Internet & American Life Project. October 2009. Retrieved from http://www.pewinternet.org/Reports/2009/17‐Twitter‐and‐ Status‐Updating‐Fall‐2009.aspx 6 Downtown Long Beach Association. Downtown Long Beach Residents and Employment. Retrieved from http://www.downtownlbbusiness.com/learn/information 7 Long Beach Redevelopment Agency. (2009). Downtown Long Beach Market Study. Long Beach: Strategic Economics. ^ Numbers estimated from Pew Internet Study and Long Beach Population Numbers
- 5. 5 | The Kreisler Group Social Media Case Study WHY TWITTER? 1) Communicate messages to a large targeted audience effectively and efficiently 2) One of the fastest growing social networking sites in 2009. Experienced 1382% year‐ to‐year growth from Feb. 2008 – Feb. 20098 3) The amount of residents, workers & tourists in Long Beach and the surrounding areas on Twitter and Facebook (approximated numbers included in ‘Why Facebook’ section) 4) Extensive amount of Third Party Applications (TPAs) that assist in message dissemination, link shortening, file sharing, linking to other social media sites, etc. 5) Ability to reach out to local users based on ZIP code and key words (e.g. salsa, Latin, dinner, etc.) 6) Trackability – Because of link shorteners like Bit.ly and Ow.ly you can track your click‐throughs from the links you sent out via social media. Web site analytics also allows users to check ‘referring’ sites, to see what percentage of the audience came from where. WHY FLICKR? 1) Ability to create shareable photo slideshows, allowing users to associate the food with the brand for an extended period of time 2) Alegria had professional photos on file ready to be uploaded 3) One of the top photo sharing services with wide audience base BUILDING AN AUDIENCE Before we focused on the proper messaging and dissemination for Twitter and Facebook, TKG built an audience for Alegria on the respective platforms. Because Twitter and Facebook have their differences in social interaction we developed strategies to build audiences for both. The following strategies allowed us to generate an audience quickly and then allow the base to grow organically. Targeted Prominent Groups, Media Outlets and Users Our Alegria Facebook profile allowed TKG to connect with individuals of similar interests including users interested in Latin American cuisine, Latin American dance, Long Beach restaurants and the city of Long Beach. Facebook Groups and Fan Pages were essential to grow our audience in the beginning stages. We targeted potential customers geographically and by tracking text queries on Alegria’s Twitter profile. For instance, TKG could potentially witness every tweet that originated in the 8 Ostrow, Adam. “Twitter Now Growing at a Staggering 1,382 Percent.” Mashable.com. 15 Jan. 20ten. Web. 13 March 2009. *Alegria Cocina had created a Facebook Profile before Facebook’s user agreement changed and forced businesses to use Business Pages in 2008. We used this profile because of their established audience and ability to make friend requests to increase our audience base.
- 6. 6 | The Kreisler Group Social Media Case Study 90802 area code. However, we tracked key words like “Long Beach” and “Downtown” and were able to participate in those conversations and add our input or information. TKG also connected with many prominent Long Beach media outlets including Long Beach Post, 562 City Life, The District Weekly & OC Weekly. TKG promoted Alegria’s information (events, live entertainment, etc) that would bring people down to the street ‐ Pine Avenue. Alegria Cocina also had a VIP Email list that allowed TKG to engage with the regular customers that were engaging in social media. Finding and inviting those passionate about Alegria through social media, only helped TKG expand Alegria’s audience and spread their messages. Lastly, we listed Alegria on Twitter Directories that can help lead people to your specific profile based on location, type of food, genre of entertainment, etc. TKG listed Alegria Cocina on Justtweetit.com, Twellow.com, and Wefollow.com. Through these strategies we were able to increase Alegria’s connections on Facebook and Twitter by hundreds in a few weeks time. ROLES SOCIAL MEDIA PLAYED Building Loyalty & Brand Recognition TKG discovered new data reported from GroupM Search and comScore about the role social media plays in regards to organic and paid search. The findings are as follows. ‐ 50% Click Through Rate (CTR) increase in paid search when consumers are exposed to social media ‐ Consumers whom have been exposed to a brand’s social marketing campaign are 2.4 times more likely to click on organic links to the brand’s site9 This study proves that interaction with social media strengthens relations and builds brand recognition. But the question was, ‘How do we measure our relationships and interaction?’ The answer involved tracking the different types of interactions available on each social network: likes, comments, requests, mentions, retweets, direct messages, etc. These two roles gave TKG inspiration to create a custom report that tracked our different levels of interaction week‐to‐week to measure Alegria’s progress. Word of Mouth Magnified & Communicating in Real Time It has never been easier to share information with people you know. Twitter culture encourages ‘Re‐tweeting (now a viable action on the service), or re‐broadcasting information that the user enjoys or wants to pass on. Followers of the restaurant could now send Alegria’s original message to their specific audience; a group of people outside Alegria’s own reach. Using Twitter’s search service (search.twitter.com) in combination with their mentioning function (e.g. @Alegria), TKG was able to reach out to people in real time with inquiries about 9 GroupM Search & comScore. (2009). The Influenced: Social Media, Search and the Interplay of Consideration and Consumption. New York: Chris Copeland.
- 7. 7 | The Kreisler Group Social Media Case Study food, restaurant choice, entertainment, etc, while also sending out an update to Alegria’s followers. 1) Searching for people tweeting Key Terms like ‘Salsa Long Beach’ 2) Twitter Search displayed people talking about Salsa in Long Beach within the last 7 days 3) Tweeting messages and mentioning relevant users from our search This allowed us to introduce Alegria to new people in the area and stay consistent with updates, further allowing for our message to be spread to our audience and potential new audiences with every update.
- 8. 8 | The Kreisler Group Social Media Case Study Customer Service Twitter allows for the constant flow of two‐way communication in real time. This means when people had questions regarding Alegria, we could potentially answer them in real‐time. TKG was able to answer questions, resolve disputes and mend relationships in a number of ways. Here are just a few examples of topics addressed: ‐ Parking Availability and Location ‐ Directions, Best Route and Address ‐ Special Event Information ‐ Specials, Discounts, Promotions ‐ Any Issues with Service, Food, etc. ‐ Customer Reviews Public and Media Relations With the development of the 24‐hour news cycle and the increasing numbers of news being viewed digitally, Public and Media Relations have also evolved with the times. Traditional public relations communications (email, fax, phone, paper) now must be combined with digital methods (social media, digital files, blogs) to capture the full scope of today’s media outlets. Most traditional print outlets (newspapers, magazines) are engaged in social media platforms like Twitter and Facebook because of its free usage, real time dissemination and instant promotion. More often than not, writers from these same publications are also on the social media platforms. Writers whom are utilizing social media translates into another means for PR practitioners to develop relationships and share story ideas. During the course of 2009, practitioners saw the Seattle‐Post Intelligencer and the Rocky Mountain News both transition into online publications, ending their print distribution altogether. Because digital news has little overhead in comparison to the print and deliver business model, some major outlets have gone completely digital and hyper‐local digital media outlets are popping up everywhere. Long Beach has seen its fair share of digital media outlets including LBPost, Everything Long Beach and 562 City Life. In this instance, TKG did not initiate a specific media‐relations campaign with Alegria, but did facilitate the relationship between the restaurant and the media. Through social media relationships created and maintained by TKG, Alergia was organically picked up from online publications including a glowing food review in 562 City Life. The article from 562 City Life can be found at: http://www.562citylife.com/profiles/blogs/alegria‐a‐gem‐on‐pine Collaboration of Ideas & Networking During the ten‐week case study, TKG met with Alegria’s management team nearly every week to discuss promotions, events and general brainstorming. Weekly meetings give management time to express thoughts that could enhance our social media communication and/or the business itself. The meetings led to new and improved in‐store promotions, targeted local audiences and created brand new events for the restaurant.
- 10. 10 | The Kreisler Group Social Media Case Study Alegria’s management. TKG was not able to meet with Alegria in this time period, which adversely affected our social media implementation and communication. TKG and Alegria were able to rebound in the last few weeks due to: 1) Buzz surrounding the Halloween Event with Raq‐C 2) Stronger social media content than weeks prior 3) Halloween fell on a weekend 4) Connecting with Downtown Events on Pine Ave. Figure 1 Sales Data Table – 2008 vs. 2009 Week % Increase or Decrease in sales from 2008 to 2009 Week 1 Aug 31‐Sept. 6 2008 vs. Aug. 30‐Sept. 5 2009 ‐3.23% Week 2 Sept. 7‐13 2008 vs. Sept. 6‐12 2009 +17.18% Week 3 Sept. 14‐20 2008 vs. Sept. 13‐19 2009 +15.76% Week 4 Sept. 21‐27 2008 vs. Sept. 20‐26 2009 +41.50% Week 5 Sept. 28‐Oct. 4 2008 vs. Sept. 27‐Oct. 3 2009 +23.84% Week 6 Oct. 5‐11 2008 vs. Oct. 4‐10 2009 +10.71% Week 7 Oct. 12‐18 2008 vs. Oct. 11‐17 2009 ‐8.87% Week 8 Oct. 19‐25 2008 vs. Oct. 18‐24 2009 ‐2.53% Week 9 Oct. 26‐Nov.1 2008 vs. Oct. 25‐31 2009 +9.11% Week 10 Nov. 2‐8 2008 vs. Nov. 1‐7 2009 +5.26% Total +10.33%
- 11. 11 | The Kreisler Group Social Media Case Study Figure 2 Sales Data Line Graph 2008 vs. 2009 % Increase / Decrease from 2008 to 2009 50.00% 40.00% Hispanic Engineers 30.00% Conference 20.00% Comic‐ Con 10.00% Scheduling Conflicts w/ Alegria 0.00% Management ‐10.00% ‐20.00% Sept. Sept. Sept. Sept. Oct. Oct. Oct. Oct. Oct. Nov. Week 1 Week 2 Week 3 Week 4 Week 1 Week 2 Week 3 Week 4 Week 5 Week 1 % Increase / Decrease ‐3.23% 17.18% 15.76% 41.50% 23.84% 10.71% ‐8.87% ‐2.53% 9.11% 5.26% Further Sales Analysis There were two specific weeks where TKG and Alegria could directly associate a significantly large percentage sales increase with the social media strategy being implemented. Week 4 and Week 5 of the case study saw a 41.50% and 23.84% increase from 2008, respectively. Because of Alegria’s proximity to the Long Beach Convention Center (LBCC), TKG implemented a social media strategy to connect with two major conventions happening within blocks from Alegria. Social media has become an integral part of contemporary conventions, allowing conversations to happen before, during and after the convention itself. ComicCon and The Hispanic Engineers Conference both had Twitter and Facebook accounts that TKG was able to communicate with. TKG never sought out convention directors or group leaders by phone or email, but all through social media. Through Alegria’s social media profiles TKG promoted their events as it was also relevant to our Long Beach audience. Through these connections Alegria received endorsements from key individuals at the conference which translated into increased foot traffic into the restaurant. 1) TKG connected Alegria with key representatives of the conferences. 2) TKG connected Alegria with the audiences of these conferences
- 12. 12 | The Kreisler Group Social Media Case Study 3) TKG communicated essentials to these audiences: location, menu, events, hours, etc. 4) TKG made these audiences feel special: discounts, delivery, special promotions for conference goers only Comparing Sales June‐Aug. 2009 vs. Sept.‐Nov. 2009 TKG compared the sales from the ten weeks prior (June 21‐August 29, 2009) with the ten‐week case study period (August 30‐November 7, 2009). Many restaurant operators might not agree with comparing numbers from Summer with numbers from Fall because of the seasonality differences. But this is precisely why TKG wanted to compare the numbers. The ten weeks prior to our case study occurred in the heart of summer when Long Beach tourism is up and more local consumers are spending money on dining. Other notable factors include: starting a restaurant case study in the notoriously slow dining month of September and consumer spending dropped .5% nationwide in the same month.10 Yet, TKG was still able to increase total sales in the time period by 2.43%. When TKG analyzed the sales numbers and percentages, readers should take note of a few things. First, Alegria’s average sales in June ‘09 were significantly lower than August ‘09. So instead of seeing a general rise toward the ending percentage of 2.43%, you will see some larger percentage increases in the first four weeks, and a decline later in the case study. The decrease in percentages in the later weeks is due to the strong sales performance Alegria had in August. Figure 3 Summer 2009 vs. Fall 2009 Week % Increase or Decrease in Sales from Summer to Fall Week 1 +7.71% June 21‐27 2009 vs. August 30‐5 2009 Week 2 +8.68% June 28‐July 4 2009 vs. Sept. 6‐12 2009 Week 3 +12.56% July 5‐11 2009 vs. Sept. 13‐19 2009 Week 4 +33.37% July 12‐18 2009 vs. Sept. 20‐26 2009 10 News Service. (30 Oct. 2009) “U.S. Consumer Spending Slipped in September.” New York Times. Retrieved from http://www.nytimes.com/2009/ten/31/business/economy/31econ.html
- 13. 13 | The Kreisler Group Social Media Case Study Week 5 ‐3.61% July 19‐25 2009 vs. Sept. 27‐Oct. 3 2009 Week 6 +5.70% July 26‐Aug.1 2009 vs. Oct. 4‐10 2009 Week 7 ‐2.33% Aug. 2‐8 2009 vs. Oct. 11‐17 2009 Week 8 ‐9.93% Aug. 9‐15 2009 vs. Oct. 18‐24 2009 Week 9 ‐13.55% Aug. 16‐22 2009 vs. Oct. 25‐31 2009 Week 10 ‐10.57% Aug 23‐29 2009 vs. Nov. 1‐7 2009 Totals +2.43% CONCLUSION – SUMMARY OF THE TEN ROLES Building Loyalty & Brand Recognition TKG’s social media campaign was able to connect an upwards of 1000 people directly and thousands more through the infrastructure of Facebook, Twitter and Flickr. TKG broadcasted updates daily with new and relevant information to its audience, which led to increases in audience numbers and interaction. Word of Mouth and Communicating in Real Time TKG found and connected with potential clientele for Alegria by tracking search terms in real‐ time. The user‐friendly infrastructure of the different social media platforms allowed Alegria’s message to spread and penetrate different groups and individuals. Customer Service Communicating in real‐time allowed us to answer questions on a public forum and receive feedback from our customers and the general public. Questions about specific events, parking or cuisine were public conversations and spread awareness of any resolved issue.