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W E B I N A R S E R I E S
Hello!
Jonathan Nguyen
Regional Director, APAC
Social@Ogilvy
Rob Blackie
Director of Social
at Ogilvy
Tell us where you’re dialing in from!
What’s the weather like in your city?
Want this deck?
It will be available for download shortly after
the webinar on: slideshare.net/socialogilvy
Ogilvy staff: It’s also on The Market!
themarket.ogilvy.com
Are you on the go? You can join our webinars on mobile, too!
Download the GoToWebinar app from the App Store or Google Play
How digitally
mature are you?
CMOs globally have invested millions into social
media programs, but most have not been able
to quantify any results.
Has the promise of social been a swindle or are
we missing something?
May 2017
81.5% of CMOs have
not been able to show
any impact or only
qualitative impact
from their social
media investments
*The CMO Survey, February 2017
https://cmosurvey.org/
Social media is
perceived to
contribute little to
company performance
*The CMO Survey, August 2016
https://cmosurvey.org/
So what’s the
ROI on all this
content?
© 2016, Ogilvy & Mather Asia Pacific 8
2016 marked the beginning of the Relationships era and CMOs
are questioning the value of content and ”engagement”.
Late 90s
Dawn of the Social
Epoch
2006
Platform Era
2013
Content Era
2016
Relationship Era
2018
Machine Era
Over time, content and conversations became more sophisticated
© 2016, Ogilvy & Mather Asia Pacific 9
Content EraPlatform Era Relationship Era
Conversation style:
Maximise the number of platforms, and only have
conversations to avoid a crisis.
Conversation style:
Help customers with their problems and answers
their questions.
Conversation style:
Use social care and social CRM to build longer term
relationships.
The greater the investment, the greater the budget oversight
© 2016, Ogilvy & Mather Asia Pacific 10
Content EraPlatform Era Relationship Era
Accountable:
Social media managers
“How do I convince my company that this is
important?”
Accountable:
Marketing managers, CMOs
“How do I convince my boss this has an impact on
our brand?”
Accountable
CMOs, CIOs
“How do we convince the board this will make a
return?”
$
$$$
Time has forced brands to mature in their approach and invest more
Failure is a difference in opinion here
H&M’s digital team can
quantify X,000,000
leads to its
ecommerce and retail
stores monthly in
China
KLM’s social media
team generates
EUR25MM annually
What is it that these
brands do differently
to outperform their
category competitors?
These brands have realised it’s not “Social Media” but Three types of Dialogues
© 2016, Ogilvy & Mather Asia Pacific
14
No longer is lumping social media into a bucket and giving it to a social media manager enough. To
drive value, these businesses have recognised they’re having conversations with customers that have
serious business impact.
Customer Value AcquisitionBrand Value
They have customer centric
Service Dialogues that reduce
churn and builds advocacy with
every interaction
They have Selling Dialogues that
builds commercial value
through focused content
They have meaningful Brand
Dialogues that build trust and
creates a favourable selling
environment
Six things these companies do (and you should too)
Treat social as a business investment
Requires a whole of business buy-in and an
alignment of people, process and technology.
Evidence based approach
The brand voice is built on research and is not
imagined in a vacuum.
Customer centric
Treat service dialogues as boon and not a burden.
Understand the new context
But don’t cut and paste what you learnt in the
call centre.
Content is created deliberately
Create content that sells and measure it
Using behavioural science to persuade
You are not alone, use science to help you be
more persuasive.
They have
matured
approach that
treats social as
business
assets that
drive value
© 2016, Ogilvy & Mather Asia Pacific 16
Survival in the relationship era requires a CMOs / COOs take a
more business oriented approach to social. Random content and
transactional “approved responses” are not enough.
§ Approach social media from the
perspective of driving three types
of conversations: brand, servicing
and acquisition
§ Invest in them, and KPI them that
way:
§ Coca-Cola wants to know how
this investment will increase
their “brand love” score
§ Vodafone wants to know how
this will improve the NPS
§ Deutsche Bank wants this
campaign to drive $x in
insurance acquisition
§ Align all departments: IT, legal,
compliance, customer service,
marketing and communications!
Their brand
voice is
differentiated
and is built on
research
17
Have you ever noticed how most social media guidelines want
the brand voice to be ”casual, like a friend, but not too casual”?
© 2016, Ogilvy & Mather Asia Pacific
§ Use data to understand how your
consumers in each market
understand the brand
§ Understand the cultural context in
which your brand now lives
§ Understand what your consumers
care about!
They see
service
dialogues as a
boon not a
burden
© 2016, Ogilvy & Mather Asia Pacific 18
Did you hear the story about the brand who closed their
Facebook wall to avoid hearing complaints while spending
millions on customer research?
§ 1 out of 5 customers don’t bother
complaining, they just churn
§ Social networking apps are used by
more than 2 billion people globally,
and social network accounts are
accessed every day by 61% of the
global online population2.
§ Customers have a strong incentive
to complaint in social because they
can publicly shame the brand for
bad service
They don’t cut
and paste what
they do in the
call centre
The lines have blurred between customer service and brand,
Relationship Era brands understand that applying call centres
techniques into social media will not work.
© 2016, Ogilvy & Mather Asia Pacific 19
§ Call centres prioritize avoidance,
this doesn’t work
§ Customer service issues are not
generally caused by customer
service
§ Caused by customer
misunderstanding 20-30 per cent
§ Caused by the company, through
poor marketing / communications
and sales practices 40-60 per
cent
§ Employee attitude / error 20 – 30
per cent
§ Brands that use social media
purely to improve call centre
metrics by reducing response
times and increasing first contact
resolution at best are addressing
the last 20 – 30 per cent of the
problem and at worst will create
all of the wrong headlines.
They create
deliberate
content
© 2016, Ogilvy & Mather Asia Pacific 20
A selling conversation in social media begins with a piece of
content and leads to a customer, success is measured in sales
§ Allocate a percentage of your
content creation to building a
pipeline
§ Create a narrative over several
posts that builds to a sale
§ Don’t write template responses!
Write a dialogue.
They’re
building that
content on
science
© 2016, Ogilvy & Mather Asia Pacific 21
Modern behavioural science tells us there are more effective
ways to communicate in order to influence purchase, but most
content is built on guesswork
§ Read the available material on how
our cognitive biases impact choices
§ Create small experiments to test
your content against each of the
biases
§ Optimise, repeat and use
technology to help you!
This sounds hard, I
don’t think we’re
ready!
It’s not hard, you just have to know where to start
23
Initial Managing Quantifying Optimising Evolved
Five Question Rapid Assessment
© 2016, Ogilvy & Mather Asia Pacific 24
We know our content
engagement rate Stage 1: Initial
We can quantify to our
executive team how our
social efforts impact
consumer behaviour
False Stage 2: Managing
We can quantify to our
shareholders how our
digital assets contribute to
revenue
False Stage 3: Quantifying
We have statistical models
that can accurately predict
new customer acquisition
False Stage 4: Optimising
Stage 5: Evolved
True
True
True
We accurately predict
societal needs and bring
products and services to
market rapidly to respond
True
Then you can work out where you need to go next
Stage 1: Initial Stage 2: Managing Stage 3: Quantifying Stage 4: Optimising Stage 5: Evolved
How the organisation views
social media
Do we need a Facebook page? Social media might be important
but we don’t know how.
Social media is important to my
department and I can prove it.
We use social to aggressively
grow our business to you
customer segments.
We don’t distinguish between
social and traditional
Goal / KPIs Demonstrate to the organisation
that social media impacts the
brand. (Brand value, brand
appeal, brand image)
Prove to executive committee
social media impacts consumer
behaviour. (Penetration, loyalty,
advocacy, price sensitivity)
Prove to shareholders we drive
commercial value out of social
investments. (Sales)
Use digital to acquire new
customers and grow market
share. (Market share, profit)
Use digital to build new portfolios,
categories and industries.
(Growth from new markets)
Must be Mastered: Mastery is
achieved when the processes are
clearly defined, understood,
consistently execute and
measurable across the entire
brand portfolio.
Invest 70% of your resources here
Brand dialogues:
Understand how each of the
major platforms work and how
they impact your consumers and
brand.
Create first branded presence
with appropriate internal and
external guidelines
Brand dialogues:
Ongoing and campaign content
that resonates with target
audience
Service dialogues:
Customer journey well
understood by customer service
teams who handle omni-channel
support and multi-media.
Selling dialogues:
Servicing and sales can move
seamlessly between channels as
people, process and tools are
aligned to support
Commercial forecasts for digital
channels are consistently
accurate as are customer
advocacy scoring.
Digital only / ecosystem products
represent a significant portion of
revenues.
Must be Managed: These items
are documented and operational
and understood by the required
teams.
Invest 20% of your resources here
Branded content is created to a
schedule
Response guidelines developed
and approved by internal
stakeholders
Establish Social Council
Service / selling dialogues:
Customer service teams enabled
to do their own support through
social
Target audience is segmented
and personas in development
Automation of service dialogues
through chat bots where
appropriate in customer journey
Selling dialogues:
Highly targeted selling content for
high value customer segments
built on behavioural nudges
Service / selling dialogues:
BI teams build predictive models
for customer experience and
purchasing propensity supported
by AI / machine learning.
Product integrations into voice
and digital assistants
AI automatically adapts products
based on the market conditions
and customer
Products can all be purchased by
AI voice and digital assistants
Product teams use AI models to
develop new products.
Must start Doing: These items
need to be understood by the
social lead who must start the
internal stakeholder engagement
to operationalise.
Invest 10% of your resources here.
A strategy for social that captures
how the organisation will build
capability to manage: brand,
service and selling dialogue with
consumers
Segmentation of target audience
Upgrade of existing CRM / ERP
systems to handle social data
Customer journey mapping
Behavioural science training for
content for teams start
Purchasing propensity models
built and integration into CRM
Automation of service and selling
dialogues through chat bots
based on predictive models
Digital and “ecosystem” products
and services in development
Products developed specifically
for AI to AI purchase
© 2016, Ogilvy & Mather Asia Pacific 25
Build a really simple 1 page plan
Brand X 2017 Plan Current State:
Stage 1
Step 1:
Build Organisational
Alignment
Step 2:
Build Organisational
Capability
Step 3:
Technology enablement
Future State:
Stage 2 by then end of 2017
Description
How the organisation views
social media
Do we need a Facebook page? We know our customers talk to us
in social media and we can
engage with them as it is
important to our business.
Goal Demonstrate to the organisation
that social media impacts the
brand.
The organisation recognises that
social engagements impact
consumer preference and
customer satisfaction.
Must be Mastered: Mastery is
achieved when the processes are
clearly defined, understood,
consistently execute and
measurable across the entire
brand portfolio.
Invest 70% of your resources here
Brand dialogues:
Understand how each of the
major platforms work and how
they impact your consumers and
brand.
Create first branded presence
with appropriate internal and
external guidelines
Brand dialogues:
We are regularly creating content
that resonates with our audience
and drives questions and interest
in our products. We would like to
get to a point where we start
linking our content with sales.
Must be Managed: These items
are documented and operational
and understood by the required
teams.
Invest 20% of your resources here
Branded content is created to a
schedule
Response guidelines developed
and approved by internal
stakeholders
Establish Social Council
Service / selling dialogues:
Our customer service teams
handle service enquiries. We’re
able to measure their
responsiveness and customer
satisfaction compared to other
channels.
We’d like to be more proacitve.
Must start Doing: These items
need to be understood by the
social lead who must start the
internal stakeholder engagement
to operationalise.
Invest 10% of your resources here.
A strategy for social that captures
how the organisation will build
capability to manage: brand,
service and selling dialogue with
consumers
Segmentation of target audience
Upgrade of existing CRM / ERP
systems to handle social data
Customer journey mapping
Behavioural science training for
content for teams start
© 2016, Ogilvy & Mather Asia Pacific 26
Your Plan
The machine
era is coming
© 2016, Ogilvy & Mather Asia Pacific 27
Machine learning will displace the non-competitive through
radical efficiencies, sometimes completely replacing humans.
Late 90s
Dawn of the Social
Epoch
2006
Platform Era
2013
Content Era
2016
Relationship Era
2018
Machine Era
Questions?
Jonathan Nguyen
Regional Director, APAC
Social@Ogilvy
Rob Blackie
Director of Social
at Ogilvy

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What's the ROI of Social Media?

  • 1. The webinar will start shortly… Thanks for joining us today! W E B I N A R S E R I E S
  • 2. Hello! Jonathan Nguyen Regional Director, APAC Social@Ogilvy Rob Blackie Director of Social at Ogilvy
  • 3. Tell us where you’re dialing in from! What’s the weather like in your city?
  • 4. Want this deck? It will be available for download shortly after the webinar on: slideshare.net/socialogilvy Ogilvy staff: It’s also on The Market! themarket.ogilvy.com Are you on the go? You can join our webinars on mobile, too! Download the GoToWebinar app from the App Store or Google Play
  • 5. How digitally mature are you? CMOs globally have invested millions into social media programs, but most have not been able to quantify any results. Has the promise of social been a swindle or are we missing something? May 2017
  • 6. 81.5% of CMOs have not been able to show any impact or only qualitative impact from their social media investments *The CMO Survey, February 2017 https://cmosurvey.org/
  • 7. Social media is perceived to contribute little to company performance *The CMO Survey, August 2016 https://cmosurvey.org/
  • 8. So what’s the ROI on all this content? © 2016, Ogilvy & Mather Asia Pacific 8 2016 marked the beginning of the Relationships era and CMOs are questioning the value of content and ”engagement”. Late 90s Dawn of the Social Epoch 2006 Platform Era 2013 Content Era 2016 Relationship Era 2018 Machine Era
  • 9. Over time, content and conversations became more sophisticated © 2016, Ogilvy & Mather Asia Pacific 9 Content EraPlatform Era Relationship Era Conversation style: Maximise the number of platforms, and only have conversations to avoid a crisis. Conversation style: Help customers with their problems and answers their questions. Conversation style: Use social care and social CRM to build longer term relationships.
  • 10. The greater the investment, the greater the budget oversight © 2016, Ogilvy & Mather Asia Pacific 10 Content EraPlatform Era Relationship Era Accountable: Social media managers “How do I convince my company that this is important?” Accountable: Marketing managers, CMOs “How do I convince my boss this has an impact on our brand?” Accountable CMOs, CIOs “How do we convince the board this will make a return?” $ $$$ Time has forced brands to mature in their approach and invest more Failure is a difference in opinion here
  • 11. H&M’s digital team can quantify X,000,000 leads to its ecommerce and retail stores monthly in China
  • 12. KLM’s social media team generates EUR25MM annually
  • 13. What is it that these brands do differently to outperform their category competitors?
  • 14. These brands have realised it’s not “Social Media” but Three types of Dialogues © 2016, Ogilvy & Mather Asia Pacific 14 No longer is lumping social media into a bucket and giving it to a social media manager enough. To drive value, these businesses have recognised they’re having conversations with customers that have serious business impact. Customer Value AcquisitionBrand Value They have customer centric Service Dialogues that reduce churn and builds advocacy with every interaction They have Selling Dialogues that builds commercial value through focused content They have meaningful Brand Dialogues that build trust and creates a favourable selling environment
  • 15. Six things these companies do (and you should too) Treat social as a business investment Requires a whole of business buy-in and an alignment of people, process and technology. Evidence based approach The brand voice is built on research and is not imagined in a vacuum. Customer centric Treat service dialogues as boon and not a burden. Understand the new context But don’t cut and paste what you learnt in the call centre. Content is created deliberately Create content that sells and measure it Using behavioural science to persuade You are not alone, use science to help you be more persuasive.
  • 16. They have matured approach that treats social as business assets that drive value © 2016, Ogilvy & Mather Asia Pacific 16 Survival in the relationship era requires a CMOs / COOs take a more business oriented approach to social. Random content and transactional “approved responses” are not enough. § Approach social media from the perspective of driving three types of conversations: brand, servicing and acquisition § Invest in them, and KPI them that way: § Coca-Cola wants to know how this investment will increase their “brand love” score § Vodafone wants to know how this will improve the NPS § Deutsche Bank wants this campaign to drive $x in insurance acquisition § Align all departments: IT, legal, compliance, customer service, marketing and communications!
  • 17. Their brand voice is differentiated and is built on research 17 Have you ever noticed how most social media guidelines want the brand voice to be ”casual, like a friend, but not too casual”? © 2016, Ogilvy & Mather Asia Pacific § Use data to understand how your consumers in each market understand the brand § Understand the cultural context in which your brand now lives § Understand what your consumers care about!
  • 18. They see service dialogues as a boon not a burden © 2016, Ogilvy & Mather Asia Pacific 18 Did you hear the story about the brand who closed their Facebook wall to avoid hearing complaints while spending millions on customer research? § 1 out of 5 customers don’t bother complaining, they just churn § Social networking apps are used by more than 2 billion people globally, and social network accounts are accessed every day by 61% of the global online population2. § Customers have a strong incentive to complaint in social because they can publicly shame the brand for bad service
  • 19. They don’t cut and paste what they do in the call centre The lines have blurred between customer service and brand, Relationship Era brands understand that applying call centres techniques into social media will not work. © 2016, Ogilvy & Mather Asia Pacific 19 § Call centres prioritize avoidance, this doesn’t work § Customer service issues are not generally caused by customer service § Caused by customer misunderstanding 20-30 per cent § Caused by the company, through poor marketing / communications and sales practices 40-60 per cent § Employee attitude / error 20 – 30 per cent § Brands that use social media purely to improve call centre metrics by reducing response times and increasing first contact resolution at best are addressing the last 20 – 30 per cent of the problem and at worst will create all of the wrong headlines.
  • 20. They create deliberate content © 2016, Ogilvy & Mather Asia Pacific 20 A selling conversation in social media begins with a piece of content and leads to a customer, success is measured in sales § Allocate a percentage of your content creation to building a pipeline § Create a narrative over several posts that builds to a sale § Don’t write template responses! Write a dialogue.
  • 21. They’re building that content on science © 2016, Ogilvy & Mather Asia Pacific 21 Modern behavioural science tells us there are more effective ways to communicate in order to influence purchase, but most content is built on guesswork § Read the available material on how our cognitive biases impact choices § Create small experiments to test your content against each of the biases § Optimise, repeat and use technology to help you!
  • 22. This sounds hard, I don’t think we’re ready!
  • 23. It’s not hard, you just have to know where to start 23 Initial Managing Quantifying Optimising Evolved
  • 24. Five Question Rapid Assessment © 2016, Ogilvy & Mather Asia Pacific 24 We know our content engagement rate Stage 1: Initial We can quantify to our executive team how our social efforts impact consumer behaviour False Stage 2: Managing We can quantify to our shareholders how our digital assets contribute to revenue False Stage 3: Quantifying We have statistical models that can accurately predict new customer acquisition False Stage 4: Optimising Stage 5: Evolved True True True We accurately predict societal needs and bring products and services to market rapidly to respond True
  • 25. Then you can work out where you need to go next Stage 1: Initial Stage 2: Managing Stage 3: Quantifying Stage 4: Optimising Stage 5: Evolved How the organisation views social media Do we need a Facebook page? Social media might be important but we don’t know how. Social media is important to my department and I can prove it. We use social to aggressively grow our business to you customer segments. We don’t distinguish between social and traditional Goal / KPIs Demonstrate to the organisation that social media impacts the brand. (Brand value, brand appeal, brand image) Prove to executive committee social media impacts consumer behaviour. (Penetration, loyalty, advocacy, price sensitivity) Prove to shareholders we drive commercial value out of social investments. (Sales) Use digital to acquire new customers and grow market share. (Market share, profit) Use digital to build new portfolios, categories and industries. (Growth from new markets) Must be Mastered: Mastery is achieved when the processes are clearly defined, understood, consistently execute and measurable across the entire brand portfolio. Invest 70% of your resources here Brand dialogues: Understand how each of the major platforms work and how they impact your consumers and brand. Create first branded presence with appropriate internal and external guidelines Brand dialogues: Ongoing and campaign content that resonates with target audience Service dialogues: Customer journey well understood by customer service teams who handle omni-channel support and multi-media. Selling dialogues: Servicing and sales can move seamlessly between channels as people, process and tools are aligned to support Commercial forecasts for digital channels are consistently accurate as are customer advocacy scoring. Digital only / ecosystem products represent a significant portion of revenues. Must be Managed: These items are documented and operational and understood by the required teams. Invest 20% of your resources here Branded content is created to a schedule Response guidelines developed and approved by internal stakeholders Establish Social Council Service / selling dialogues: Customer service teams enabled to do their own support through social Target audience is segmented and personas in development Automation of service dialogues through chat bots where appropriate in customer journey Selling dialogues: Highly targeted selling content for high value customer segments built on behavioural nudges Service / selling dialogues: BI teams build predictive models for customer experience and purchasing propensity supported by AI / machine learning. Product integrations into voice and digital assistants AI automatically adapts products based on the market conditions and customer Products can all be purchased by AI voice and digital assistants Product teams use AI models to develop new products. Must start Doing: These items need to be understood by the social lead who must start the internal stakeholder engagement to operationalise. Invest 10% of your resources here. A strategy for social that captures how the organisation will build capability to manage: brand, service and selling dialogue with consumers Segmentation of target audience Upgrade of existing CRM / ERP systems to handle social data Customer journey mapping Behavioural science training for content for teams start Purchasing propensity models built and integration into CRM Automation of service and selling dialogues through chat bots based on predictive models Digital and “ecosystem” products and services in development Products developed specifically for AI to AI purchase © 2016, Ogilvy & Mather Asia Pacific 25
  • 26. Build a really simple 1 page plan Brand X 2017 Plan Current State: Stage 1 Step 1: Build Organisational Alignment Step 2: Build Organisational Capability Step 3: Technology enablement Future State: Stage 2 by then end of 2017 Description How the organisation views social media Do we need a Facebook page? We know our customers talk to us in social media and we can engage with them as it is important to our business. Goal Demonstrate to the organisation that social media impacts the brand. The organisation recognises that social engagements impact consumer preference and customer satisfaction. Must be Mastered: Mastery is achieved when the processes are clearly defined, understood, consistently execute and measurable across the entire brand portfolio. Invest 70% of your resources here Brand dialogues: Understand how each of the major platforms work and how they impact your consumers and brand. Create first branded presence with appropriate internal and external guidelines Brand dialogues: We are regularly creating content that resonates with our audience and drives questions and interest in our products. We would like to get to a point where we start linking our content with sales. Must be Managed: These items are documented and operational and understood by the required teams. Invest 20% of your resources here Branded content is created to a schedule Response guidelines developed and approved by internal stakeholders Establish Social Council Service / selling dialogues: Our customer service teams handle service enquiries. We’re able to measure their responsiveness and customer satisfaction compared to other channels. We’d like to be more proacitve. Must start Doing: These items need to be understood by the social lead who must start the internal stakeholder engagement to operationalise. Invest 10% of your resources here. A strategy for social that captures how the organisation will build capability to manage: brand, service and selling dialogue with consumers Segmentation of target audience Upgrade of existing CRM / ERP systems to handle social data Customer journey mapping Behavioural science training for content for teams start © 2016, Ogilvy & Mather Asia Pacific 26 Your Plan
  • 27. The machine era is coming © 2016, Ogilvy & Mather Asia Pacific 27 Machine learning will displace the non-competitive through radical efficiencies, sometimes completely replacing humans. Late 90s Dawn of the Social Epoch 2006 Platform Era 2013 Content Era 2016 Relationship Era 2018 Machine Era
  • 28. Questions? Jonathan Nguyen Regional Director, APAC Social@Ogilvy Rob Blackie Director of Social at Ogilvy