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crowded space: a business case for social media?


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Red Door Interactive brings you this look at reaching target consumers through social media, but more importantly why companies would want to and whether or not a strategy of this type is justified. (from a talk given Oct 12,2010 at Leeds School of Business, University of Colorado, Boulder)

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crowded space: a business case for social media?

  1. 1. Tony Felice, Sr. Strategist<br />
  2. 2. Tony Felice, Sr. Strategist<br />Frequent speaker on Visibility, Acquisition and Analytics<br />Over 15 years of experience in Interactive Marketing<br /><br /> <br />Today’s Presenter<br />
  3. 3. Offices and Denver, San Diego, and Carlsbad<br />Internet Presence Management agency<br />Over 50 full-time employees<br />Diverse client base <br />Red Door Interactive<br />
  4. 4. Internet Presence Management<br />
  5. 5. “<br />if a new technology extends one or more of our senses outside us into the social world, then new ratios among all of our senses will occur in that particular culture”<br />-Marshall McLuhan<br />The Gutenberg Galaxy: The Making of Typographic Man,1962<br />
  6. 6. All media is inherently social<br />Communication vector<br />Ubiquitous<br />Social media is a solidarity good<br />User Generated Content<br />Blogs<br />Wikis<br />Lifestreaming<br />Review sites<br />NOT a broadcast (or push) medium<br />1 Billion<br />4.1 Billion<br />Social Media<br />Videos viewed per day on YouTube.1 YouTube outperforms Yahoo! as the second largest search engine.2<br />Source: YouTube, ComScore<br />SMS text messages that are currently sent each day, nearly doubling the number from last year.3<br />Source: CITA<br />
  7. 7. 10/18/2010<br />©2009 Red Door Interactive<br />7<br />The Impact Social Media<br />The explosion in Consumer Generated Media over the last couple of years means consumers’ reliance on word of mouth in the decision-making process, either from people they know or online consumers they don’t, has increased significantly.”4<br />- Jonathan Carson<br />President of Online, International, The Nielsen Company<br />Consumer Trust in Advertising*5<br />Source: The Nielsen Company<br />*Respondents reported some degree of trust in the respective advertising medium<br />e.g. 90% of respondents trusted "completely" or "somewhat" recommendations <br />from people they know5<br />
  8. 8. 10/18/2010<br />©2009 Red Door Interactive<br />8<br />What’s the buzz about?<br />Consumer Behavior<br />Measurability <br />Availability and ubiquity<br />Challenges<br />Point of message origination<br />Lack of (direct) control<br />Shift in power<br />Success requires<br />Honesty, transparency<br />Solid plan, and a trusted helmsman<br />Synergy between the medium and the target<br />2 Billion<br />The Impact of Social Media<br />pieces of content shared weekly on Facebook 6<br />Source: Facebook<br />
  10. 10. 10/18/2010<br />©2009 Red Door Interactive<br />10<br />Audience Segmentation<br />Demographic<br />Geographic<br />Technographic Profile<br />Creators<br />Critics<br />Joiners<br />Collectors<br />Spectators<br />Inactives<br />72%<br />73%<br />Understanding the Audience<br />Of domestic internet users have some degree of trust in opinions and reviews posted online.5<br />Source: Nielsen<br />Domestic internet users visit social media sites.7<br />Source: Forrester Research<br />
  11. 11. Understanding the Audience<br />Social Technographic Profiles, 20097<br />Joiners<br />The number of users that maintain an online profile has more than doubled since 2007.7<br />Source: Forrester Research<br />Inactives<br />The number of users that are inactive in social media has dropped nearly 60% since 2007.7<br />Source: Forrester Research<br />.2008. 2009(est)<br />
  12. 12. 10/18/2010<br />©2009 Red Door Interactive<br />12<br />Third party research (such as Hitwise or comScore)<br />Focus groups<br />Targeted emails and customer surveys<br />Monitor social channels<br />Monitoring is critical<br />List of tools in “Resources” appendix<br />Ensure analytics are installed on the target site<br />Describes traffic patterns, inbound vectors<br />Identifies geographics<br />Details keywords <br />Understanding the Audience<br />25%<br />of search results for the world’s top 20 largest brands are links to user-generated content.9<br />Source: SES Magazine<br />
  13. 13. 10/18/2010<br />©2009 Red Door Interactive<br />13<br />Understanding the Audience<br />
  14. 14. 10/18/2010<br />©2009 Red Door Interactive<br />14<br /><ul><li>Identify communities, discussions and influencers
  15. 15. Monitor challenges to your brand
  16. 16. Find relevant industry information
  17. 17. Inform your overall Social Media strategy
  18. 18. Who are the influencers?
  19. 19. What are these people saying?
  20. 20. When are these influencers active?
  21. 21. Where are the conversations happening?
  22. 22. Why are people talking (or staying quiet)?</li></ul>65 Million<br />20%<br />Understanding the Audience<br />active users currently access Facebook through their mobile devices … 50% more active than non-mobile users.6<br />Source: Facebook<br />Twitter traffic comes thru the website. Where does the other 80% come from?10<br />Source: Guardian<br />
  23. 23. STRATEGY<br />
  24. 24. 10/18/2010<br />©2009 Red Door Interactive<br />16<br />Laying the groundwork <br />Technical<br />Verify infrastructure<br />Analytics Installation<br />Benchmark traffic profile<br />Operational<br />Establish a Policy<br />Visibility<br />Contingencies<br />Plan B<br />Third party outages<br />High level buy-in<br />Strategy<br />The Good, the Bad, but not the Ugly. If the content is positive or negative and in context to the conversation, then we approve the content, regardless of whether it's favorable or unfavorable to Intel. However if the content is ugly, offensive, denigrating and completely out of context, then we reject the content.”11<br />-Intel’s Social Media Policy<br />
  25. 25. 10/18/2010<br />©2009 Red Door Interactive<br />17<br />Goals and Objectives<br />Budget and Resources<br />Identify your motivation<br />Market research<br />Customer service <br />Crowdsourcing / Research & Development<br />Advertising (Influencing) & Sales<br />Select appropriate channels<br />Locate key influencers<br />Identify Key Performance Indicators (KPI)<br />Strategy<br />Over and over again, connecting people with one another is what lasts online. Some folks thought it was about technology, but it’s not.”<br />-Seth Godin, author of “Small is the New Big”, pg 208<br />
  26. 26. 10/18/2010<br />©2009 Red Door Interactive<br />18<br />
  27. 27. 10/18/2010<br />©2009 Red Door Interactive<br />19<br />Plan<br />Fail fast and adapt quickly<br />High visibility & Heavy engagement<br />Basics<br />Provide value<br />Expertise & opinions<br />Set and meet expectations<br />Design interactivity<br />Social Objects<br />Contests<br />4pm<br />Strategy<br />may be the best time to deliver social messaging. While the general traffic patterns on twitter remain relatively constant throughout the day, retweets peak at 4pm.12<br />Source: Dan Zarrella, The Science of Retweets, pg. 20<br />
  29. 29. 10/18/2010<br />©2009 Red Door Interactive<br />21<br />Understand the Dynamics<br />Relationships<br />Conversations<br />Phatic Communications aka “Small talk”<br />Find a connection, a commonality<br />Joining the Conversation<br />
  30. 30. 10/18/2010<br />©2009 Red Door Interactive<br />22<br />Lifecycle<br />Listen<br />Respond<br />Engage and Nurture<br />Create Buzz<br />Be Transparent<br />Converse <br />Joining the Conversation<br />
  31. 31. 10/18/2010<br />©2009 Red Door Interactive<br />23<br />The currency of social interaction is trust. The equity is influence.<br />As in real life, hard won, easily lost.<br />Joining the Conversation<br />
  32. 32. DETERMINING ROI<br />
  33. 33. 10/18/2010<br />©2009 Red Door Interactive<br />25<br />Determining ROI<br />Business has not changed, this type of marketing is simply a shift in the way business is done.<br />Hard Metrics<br />Soft Metrics<br />
  34. 34. 10/18/2010<br />©2009 Red Door Interactive<br />26<br />Hard metrics – financial impact<br />Cost reduction<br />Revenue generation <br />Soft metrics - transactional precursors<br />Brand Mentions<br />View-throughs<br />Click-throughs<br />Traffic<br />Impressions<br />Determining ROI<br />
  35. 35. 10/18/2010<br />©2009 Red Door Interactive<br />27<br />Maintain an activity timeline<br />All events driven by strategy<br />Any events that may impact the campaign<br />Press Releases<br />News Articles<br />Awards and Recognition<br />Any milestone events in the campaign<br />Social Reach (network milestones)<br />Shared Content<br />Configure analytic funnels (goals)<br />Determining ROI<br />
  36. 36. 10/18/2010<br />©2009 Red Door Interactive<br />28<br />Compile transactional precursors<br />Pull the hard numbers<br />Sales Revenue<br />Number of Transactions<br />Customer Count<br />(Identify new vs. repeat)<br />Overlay all the timelines<br />Transactional precursors<br />Traffic <br />Funnel goal completions<br />Conversions<br />Determining ROI<br />
  37. 37. 10/18/2010<br />©2009 Red Door Interactive<br />29<br />Do events in the campaign coincide with fluctuations in transactional metrics?<br />Frequency<br />How often customers are transacting?<br />Reach<br />Number of Customers (new vs. existing)<br />Yield<br />$ per transaction<br />Determining ROI<br />
  38. 38. STAYING CONNECTED<br />
  39. 39. 10/18/2010<br />©2009 Red Door Interactive<br />31<br />Social media should be approached as a long-term strategy, supported over time by consistent communication and valuable content<br />Short-term campaigns work best for follower acquisition, short bursts of increased activity to support a seasonal promo or blended campaign<br />To be successful, you have to stay connected.<br />Staying Connected<br />
  40. 40. 10/18/2010<br />©2009 Red Door Interactive<br />32<br />Understand long-term expectations<br />Growth and Impact<br />Resources <br />Staying Connected<br />
  41. 41. CASE STUDIES<br />
  42. 42. 10/18/2010<br />©2009 Red Door Interactive<br />34<br />Raising awareness<br />Adding value<br />Increasing sales<br />Targeted Campaigns<br />$3M attributed to Twitter alone<br />Connecting with customers<br />Case Study: Dell<br />We thought, ‘Great-this has a really short lead time, and it will let us communicate our message effectively. We started using it for one-way communication. <br />…We realized that people were really interested in talking with us.”<br />- Stefanie Nelson, manager of demand generation at Dell Outlet.<br />
  43. 43. 10/18/2010<br />©2009 Red Door Interactive<br />35<br />Blogger Rebellion<br />“Dell Hell”<br />Blindsided from ignorance<br />Listened<br />Joined the conversation<br />Learned the right way to interact<br />Reached out to community<br />Acknowledged customer<br />Timeline: 3+ years<br />Case Study: Dell<br />…clueless Dell, your customers can just blog their questions and answers without you. Or should I say, former customers?”<br />- Stefanie Nelson, manager of demand generation at Dell Outlet.<br />
  44. 44. 10/18/2010<br />©2009 Red Door Interactive<br />36<br />The Hub<br />Failed mySpace clone<br />Encouraged teens to upload photos, videos, shopping lists<br />Jim and Laura, bloggers<br />Disclosed as a hoax funded by PR agency, Edelman<br />Facebook Failure<br />Attempt to attract college students<br />All they got were haters<br />Case Study: Wal-Mart<br />Communities already exist…Instead you should be asking yourself, what can I do to help this community do what it wants to do?”<br />-Mark Zuckerberg, Facebook, CEO<br />
  45. 45. 10/18/2010<br />©2009 Red Door Interactive<br />37<br />Recovery<br />Ratings and Reviews<br />The Checkout Blog<br />voice for Wal-Mart’s product folks<br />Elevenmoms<br />Colony of mommy bloggers<br />Transparent, full disclosure<br />The real success: High level buy in<br />Case Study: Wal-Mart<br />…we’re not hesitant, we’re ready to embrace this stuff.”<br />-H. Lee Scott, Walmart, CEO<br />
  46. 46. 10/18/2010<br />©2009 Red Door Interactive<br />38<br />Let’s explore whether a company such as White Wave should take this approach, and if so, how they could be successful…<br />Hypothetical: White Wave Foods<br />
  47. 47. SUMMARY<br />
  48. 48. QUESTIONS<br />
  49. 49. Ground Floor is a new agency within Red Door established to give students hands-on experience managing and growing a real interactive agency.<br />TEAM WORK <br />developing interactive strategy<br />designing and implementing integrated programs<br />analyzing campaign performance<br />managing clients, employees, and vendors<br />EXPERIENCE <br />work directly with clients and vendors<br />professional support from your RDI counterpart & faculty support<br />Internship Program<br />
  50. 50. Email:<br />LinkedIn:<br />Twitter:<br />Web:<br />Blog:<br />Intern Program:<br />Email:<br />Twitter: @reddoorand @reddoorjobs<br />Contact the Speaker<br />More Info on Red Door Interactive<br />
  51. 51. 10/18/2010<br />©2009 Red Door Interactive<br />43<br />Citations and Reference<br />
  52. 52. 10/18/2010<br />©2009 Red Door Interactive<br />44<br />Slideography<br />
  53. 53. 10/18/2010<br />©2009 Red Door Interactive<br />45<br />Resources<br />