Disney Field Study


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Objective is to explore the social measurement to enhance online marketing effectiveness

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  • Driving tangible marketing results by better harnessing the power of Social Media is one of the key capabilities organizations like Disney need to develop to stay ahead in the marketplace. Our team has been tasked to develop a strategy for Disney to accomplish this and therefore in this presentation we aim to explain our recommendations, which can be summarized in these 3 major areas:How to enhance Disney’s existing CRM ecosystem with the right Social Media data and related capabilitiesEffects of enhancing the effectiveness of an existing business model (web property ad revenues) using this enhanced Social CRMHow to setup and execute a new revenue sharing business model with key strategic partners made possible by this enhanced Social CRM
  • It is common to need two or more tools - for example, a web analytics package and a social content analysis platform - in order to fully meet data requirements.Social Intelligence means Systematically analyzing the endless flow of unstructured data to generate actionable insights –Ensuring that the insights reach the right decision makers wherever they may reside within the companyTracking and measuring results to drive continuous performance improvementGleansight
  • It is common to need two or more tools - for example, a web analytics package and a social content analysis platform - in order to fully meet data requirements.Social Intelligence means Systematically analyzing the endless flow of unstructured data to generate actionable insights –Ensuring that the insights reach the right decision makers wherever they may reside within the companyTracking and measuring results to drive continuous performance improvementGleansight
  • Consumer products Disney Publishing Worldwide Disney Stores (retail outlets)Interactive media Disney Interactive Studios (video games) Club Penguin (social networking for children) Disney Online Disney.com DisneyFamily.comMedia networks A&E Television Networks (42%) A&E Bio (The Biography Channel) The History Channel History International Lifetime Lifetime Movie Network Lifetime Real Women The Military History Channel ABC Family Channel ABC Television Network Disney Channel ESPN (80%) ESPN2 ESPN Classic ESPNEWS JETIX Europe SOAPnet Television broadcast stations KABC (Los Angeles) KFSN (Fresno, CA) KGO (San Francisco) KTRK (Houston) WABC (New York City) WJRT (Flint, MI) WLS (Chicago) WPVI (Philadelphia) WTVD (Raleigh-Durham, NC) WTVG (Toledo, OH) Toon DisneyStudio entertainment Dimension Disney Music Group (music production and distribution) Disney Theatrical Group (live entertainment events) Marvel Entertainment Pixar Touchstone Pictures Walt Disney PicturesTheme parks and resorts Adventures by Disney (vacation packages) Disney Cruise Line Euro Disney (40%) Disney Village Disneyland Paris The Walt Disney Studios Park (Marne-La-Vallee, France) Disneyland Resort (Anaheim, CA) Disneyland Disney's California Adventure Hong Kong Disneyland (47%) Tokyo Disney Resort (owned and operated by Oriental Land Co.; Disney earns royalties) Tokyo Disneyland Tokyo DisneySea Walt Disney Imagineering (planning and development) Walt Disney World Resort (Orlando, FL) Disney Vacation Club Disney's Animal Kingdom Disney's Hollywood Studios Disney's Wide World of Sports Downtown Disney Epcot Magic Kingdom
  • google, twitter, facebook, dribble, delicious, ember, flickr, last fm, rss, skype, stumbleupon and vimeo.
  • (fandango, American airlines, orbitz, target, etc – whatever makes sense depending on segmentation)
  • The 15 identified segments enable targeted marketing out of the gate. Based on additional information Disney may expand/consolidate the target segments for various propertiesKey ingredient for business model # 1PRIZM Claritas segmentationhttp://www.claritas.com/MyBestSegments/Default.jsp?ID=30&id1=1027Why we chose Claritas:PRIZM Claritas – provides consumer lifestyle segmentation yields the richest consumer behavioral information for shopping, financial and technology preferences, media habits (online and offline) and so much more. These powerful insights enable marketers to identify, understand and reach their best customers more effectively with messages that resonate with them.Also helps answer the following:Who are my targets?What are they like?Where can I find them?How can I best reach them?Other Segmentation providers:http://www.sric-bi.com/ - VALS, established in 1978, is one of the first major consumer segmentation systems based on lifestyle characteristics. Consumer products and services companies throughout the United States have used VALS to improve product development, product positioning, advertising effectiveness, and corporate image
  • Web property visitHousehold/individual is mapped to their Social CRM IDHyper-relevant media, content and ads are displayedIncreased Disney conversion ratesIncreased CPM for partner ads
  • Identify a few strategic partners and enter revenue share agreement. Requirements:Complimentary servicesCannot compete in any wayEstablished relationships on other lines of businessMVP partnersb. Jointly create a partner ID clearinghouse brokered by FB Connectc. Setup ID and rich targeting data exchange without PIId. Other partners setup exact same rich ID and targeting data exchange without PII
  • Very rich list creation done by procuring Disney and partner CRM dataDirect campaign (mail, email, even ads) is executed for ANY Disney offeringConversion happens for Disney offeringRevenue share to partner(s) who contributed CRM data for customer
  • Very rich list creation done by procuring proprietary and partner CRM datab. Direct campaign (mail, email, even ads) is executed for ANY partner offeringc. Conversion happens for partner offeringd. Revenue share to Disney if it contributed CRM data to customer
  • what Foursquare knows about us, wouldn’t you think relevant and interesting advertising would be a slam dunk? I’m not a coffee drinker, and Foursquare should know this; probably fewer than 1% of my check-ins are at coffee shops, and I doubt I’ve checked in at a Starbucks more than once. No geo-targeting: The fourth problem may at first seem odd for a company in the geolocation business, but the Starbucks ad lacks sensible geo-targeting. I just checked in on Foursquare in Boston, 3,100 miles away from home, and there’s that darn Starbucks ad again. Foursquare knows where I live and hang out, so why display a mayor offer in a location where I cannot possibly become mayor? Doing so make this offer completely irrelevant. Employee competition: As marketers begin to leverage geolocation for loyalty purposes, they face a major headache: No customer can possibly visit a business more than a full-time employee. With check-ins from employees and customers going into the same pool, mayorships are being claimed by the paid help and not the paying patron. Complaints are surfacing that customers checking in at Starbucks are finding their barista is the mayor, effectively blocking them from earning the discount.
  • Summarize:Overlooking Operational complications borne of out product and business model particularitiesNot harnessing Social CRM well enough Fool and Fraud-proofing the business model
  • Overall Risks1) The Social CRM technology is very nascent. Several companies have made serious listening mistakes especially the ones that use advanced language processing. It has been observed that these still need human intervention. Mitigation: Maybe good to stay away from long term vendor licenses, potentially outsource v/s trying to develop the full spectrum of capabilities in-house. 2) There is greater focus on Privacy. Especially self-reported concerns in the sharing and use of personal and behavioral information. Mitigation: Consumers’ Opinions About Data And Trust are malleable & can be addressed if a value exchange exists. Also important to update privacy policies to contain clear language -- including statements about what they aren’t collecting, sharing, or usingfor ads -- and motivating consumers to share information by providing access to free and cost-saving content online.3) The actual value and metrics to justify the development of the platform are harder to quantify. Business Model # 1 Risks1) Leadership may decide that this business model alone must justify platform investment before proceeding.Mitigation: If it is hinted that this may happen, then additional use cases and business model applications must be found and undergo revenue forecasting before pitching the idea.2) Lack of in-house Social CRM experience may prevent Disney from harnessing its full potential at the moment. Mitigation: Do not look at vendor offerings narrowly as product integration projects. Identify opportunities to engage into a marketing consulting or even outsourcing contract with vendors for the short term, while building the necessary capabilities for the long term3) Initial segmentation accuracy increase projections may fall short after full roll-out happens Mitigation: Engage in A/B testing for a representative yet relatively small channel to come up with more accurate projections and adjust expectations accordinglyBusiness Model # 2 RisksBrand Reputation – stringent selection criteria for partnersPartner Fraud – develop trusted partnerships for the revenue sharing. Put checks and balances in the system /on top the clearing house solution to monitor integrity of the partner reportingComplex Implementation – Implementation is key to get this right. Different states have different laws on disclosing the use of data to customers
  • Disney Field Study

    1. 1. Driving Customer IntelligenceThrough Social CRMTeam MufasaAlonso Velasquez, Ashwanth Vemulapalli, David Anna, Ishita Vayada June 04, 2012
    2. 2. Agenda• Executive Summary• Social CRM Platform• Marketing Analysis• Business Models• Q&A 2
    3. 3. Executive Summary Driving tangible marketing results by better harnessing the power of Social Media is one of the key capabilities organizations like Disney need to develop to stay ahead in the marketplace by: • Enhancing Disney’s existing CRM with the right Social Media data • Using this Social CRM Solution to: o Enhance the effectiveness of an existing business model (web property ad revenues) o Setup and execute a new revenue sharing business model with key strategic partners 3
    4. 4. Social CRM platform
    5. 5. Solution & Concept Overview Conceptually the proposed solution combines customer insights gained from social media monitoring with internal customer databases across all Disney business units to create a holistic view of the customer and help generate more actionable insights that drive business value. This implies – Listening to social media conversations (in real-time or mine) – Extracting relevant content for analyzing – Integrating social data with traditional CRM data – Integrating multiple social data sources 5
    6. 6. The Listening Platform Process Companies that use social data to only gauge consumer reception to a new product launch or sentiment around a new marketing campaign are failing to take full advantage --- Gleansight 6
    7. 7. Value Proposition – Benefits to Functional Groups • Improved PerformanceCUSTOMER SERVICE – Faster resolution of customer problems – Customer Support Cost Reduction • Better Market Insights MARKETING – Segmentation & Targeting, Improved Ad ROI PRODUCT • Increased Success of New Products MANAGEMENT – Quickly & Cheaply Validate New Products & ServicesMARKET RESEARCH • Reduce Costs – Cheaply, Quickly and Accurately Complete Researches • Risk Management PR – Customer Protect brand reputation in real-time 7
    8. 8. Value Drivers1: Technology Sample Metrics  Business Process Measurement  Vendor Selection  Sales Funnel Method (For Marketing or Sales  Data Capturing Goals)  Brand Pyramid – For Brand Building Goals)  Analyzing and Distilling Information  Customer Service Cost Reduction  Corporate Reputation  Exposure and Engagement  Share of Positive Discussion2: Strategy  Comments/posts ratio  Number of Mentions on Social media Generating Insights  RTs per 1,000 followers Distributing Findings to the Right People 4: Results3: Action  Measuring Results Taking Necessary Action 8
    9. 9. Technology Landscape Aggregator 1 Aggregator 2 Aggregator 3 Diverse Social Media Sites  Diverse Aggregators  Should you sign-on? Not all Listeners are created equal Different Content  No Aggregator captures  Some are basic  Which Listener? (text, photo, video, etc) everything from every  What Model  Use keyword search (brand Different demographics social media site  Internal Business name, product, service, comp Different use scenarios etitor, etc) Strategy?  Others are more advanced –  Use computational linguistic algorithms to break a post down into paragraph, sentence, gramma 9 r, tone
    10. 10. Planning a Social CRM Strategy • Craft an Objective for deploying Social CRM Objective • Must be measurable and aligned with specific business strategy • Avoid building a social CRM strategy based on listening tool capability • Determine relevant data sets Data Sets • Determine the source of data & how to harness it • Select the best fitting tool(s) Tools/Platforms based on objective and required data sets 10
    11. 11. Important Considerations • Consumer Privacy Regulation Regulatory • Disparate Legal Jurisdictions Environment • Do you have the right in-house expertise to generate Technology/Expertise actionable insights from Social CRM? • In-house support or outsourced? • How willing are your Customer Participation customers to share their social media ID with you? 11
    12. 12. Solution Overview DISNEY Open ID AggregatorTraditional CRM Web Properties External segmentationName Database (Prizm Claritas)Address Login IDPhone Other Info • Facebook ConnectEmail * • GoogleLast Purchase * • Yahoo Open PlatformLast Touch Point** Social Data LISTENING TOOL Facebook  Social ID  Social Network  Comments Twitter  “Likes”  Klout Score  etc Tumblr MySpace 12
    13. 13. The “Enhanced” Customer View Disney Identification Unique ID Other Social Social Media ID Facebook Twitter Youtube Media Influencer Status, Network Comments, Friends, Pos Networks, C Videos Videos Posts, Linke Followers Sentiments, Klout Score ts, Likes omments Watched Posted d URLs Mr Bob Jones Linkedin Recent Blog Posts Disney ClaritasDisney ID Facebook ID Twitter Network Comments “My Visit to Segmentation Segmentation 123444 BobJones @BobRocks Amazon “ESPN Rocks” Disney Parks” Male 35-45 Winners Circle 13
    14. 14. Marketing Analysis
    15. 15. The Walt Disney Company Operations % of total Media networks US & Canada Parks & resorts Europe Studio Asia/Pacific entertainment Consumer productsMedia networks Consumer products Parks and resorts A&E Television Networks (42%) Disney Publishing Worldwide Adventures by Disney ABC Family Channel Disney Stores (retail outlets) Disney Cruise Line ABC Television Network Euro Disney (40%) Disney Channel Disney Village ESPN (80%) Disneyland Paris JETIX Europe The Walt Disney Studios Park SOAPnet Disneyland Resort Television broadcast stations Hong Kong Disneyland (47%) Toon Disney Tokyo Disney Resort Walt Disney ImagineeringStudio entertainment Walt Disney World Resort Dimension Disney Music Group Interactive media Disney Theatrical Group Disney Interactive Studios Marvel Entertainment Club Penguin (Kids social networking) Pixar Disney Online Touchstone Pictures Walt Disney Pictures 15
    16. 16. Social Media Context 700+ Billion minutes spent every month. 900+ Million objects people interact with 250+ Million people engage with Facebook on external sites. 200+ Million access via a mobile device. Average user generates 90 pieces of content every month. 100 Million+ members. 17.8 Million in groups. 1.2 million comments and posts. 1 million companies have a company page. 1 Million new members every week. 2 billion videos viewed every day. 24 hrs of video uploaded every min. Video is uploaded in 60 days > all 3 major US networks in 60 years. 46 years of videos watched a day, on Facebook via YouTube. 200+ Million users. 40+ Billion tweets. 140 Million tweets a day. 300,000+ apps. 1,000+% growth. 500,000 accounts added, daily. 16
    17. 17. Potential Collaborators Partner Companies Engagement tools Monitoring tools Agencies 17
    18. 18. Internal Collaborators 18
    19. 19. Competitors’ Social CRM Efforts Social TV GetGlue Focus shifted from DVD to Social Uses monitoring and engagement tools Social TV Adaptly Sold MySpace Social Networking games True Car 19
    20. 20. End Customers Park Visitors Disney site visitorsTelevision audience Disney merchandise customers Movie audiences 20
    21. 21. Segmenting the Social CRM customer PRIZM Claritas Segmentation (from Nielsen) • Provides consumer lifestyle segmentation • Examples: Young Digerati, Kids & Kul-De-Sacs etc. Provides deeper insights into customer preferences that: • Inform Disney marketing messages & tacticsTotal Target Market • Enable attracting the right advertisers & strategic partners25,201,384householdsTotal Segments:15 The idea is to mesh the existing Disney segmentation w/ PRIZM Claritas , layer on the sentiment & social data and get a clear understanding of the segments representative of the end customer & their households 21
    22. 22. Business Models
    23. 23. Model 1: Micro-Targeted AdsVision:Micro target every customer that visits Disney web properties toincrease the effectiveness of ad impressions by taking intoconsideration the new segmentation and their sentiment towards thecontentBusiness Objective:Increase Conversion revenues on a yearly basis up to $4.4 million,assuming our targeting improves conversions by 50% 23
    24. 24. Model 1: Micro-Targeted Ads Micro-Targeted Social CRM Mart 24
    25. 25. Model 1: Micro-Targeted Ads Revenue Model Assumptions: • April is a representative month for year-long web property activity • US Households across the nation: +120M • Conversion Rates: • Disney ads: 0.46% • Partner ads: 0.04% • ECPM: • Disney: $11.90 • Partner: $11.83 For each 1% of additional accuracy provided by Social CRM, we estimate net revenues to rise by $88,698 A 50% increase would mean an increase of over ~$4.4M/year 25
    26. 26. Model 1: Micro-Targeted AdsCost Model Assumptions: Capital Expenses: Breakeven Analysis: Item Custom development by Vendor Custom development by Disney In order to determine if this Segmentation model updates business model will be able to Pricing model to ad partners updates justify 100% of the Social CRM investment on its own, additional lift forecasting and extensive Yearly Fixed Expenses: costing analysis must ensue. Item Licensing Fees from vendor Support from Vendor Support from Disney 26
    27. 27. Business Model #2 VisionHarvest partner data to enhance Social CRMVision:Business Model 2 proposes to harvest customer insights gained bypartners. Vision of this idea is to create alliances with partners tocollect data that will complement Disney data to target customerseffectively. Also, it helps Disney to create a more holistic view ofcustomer that will help various functional groups. 27
    28. 28. Model 2: Strategic Partner NetworkSetup American Airlines CRM Orbitz CRM Micro-Targeted Social Facebook CRM Mart Connect-based OR custom linking Partner ID Fandango CRM Clearinghouse 28
    29. 29. Model 2: Strategic Partner NetworkScenario 1: Disney Direct Marketing Campaign Facebook Connect-based OR custom linking Partner ID American Micro-Targeted Social Airlines CRM CRM Mart Clearinghouse 29
    30. 30. Model 2: Strategic Partner NetworkScenario 2: Partner Direct Marketing Campaign Facebook Connect-based OR custom linking Micro- Fandango CRM Partner ID Targeted Clearinghouse Social CRM Mart 30
    31. 31. Business model #2: Strategic Partner NetworkHigh-level pricing model• Revenue sharing percentages are specific to each contract• Negotiation criteria for revenue sharing: o Relevance of partner data to Disney business and vice versa o Forecasted lift on white space coverage due to partner data and vice versa o Additional intangible benefits derived from data and vice versa• Tiered pricing model o Revenue sharing percentage increase with increase in volumeConsiderations: Strategic fit to make sure that complements Disney Data 31
    32. 32. Business model #2: Partner Network of “Foodie” badges when they check in to Zagat rated restaurants. Special badges and features for the Winter Olympics. BART ran a promotion to give $25 promotional tickets Follow celebrities, endorsed venues and recommendations. Harvard Town and campus hot spots 32
    33. 33. Case Study: Key Learnings: Not enough attention to details Incomplete harness of social CRM Gaps to abuse the business modelStarbucks and Foursquare Partnership:• Oversaturation: offers specific to stores• Difficult redemption: Timing. Not immediate use. Need to become a mayor• No behavioral targeting: Isn’t targeted based on users’ data.• No geo-targeting: Same offer irrespective of your home town• Employee competition: Employees check-in the most for deal 33
    34. 34. Risk AnalysisOverall Risks• Nascent Technology• Privacy Concerns• Justifying investment into the platformBusiness Model # 1 – Risks• Leadership buy-in• Lack of in-house Social CRM experience• Segmentation AccuracyBusiness Model # 2 – Risks• Brand Reputation• Partner Fraud• Complex Implementation 34
    35. 35. Q&A
    36. 36. APPENDIX
    37. 37. When should we consider big data 38
    38. 38. Common patterns for employing big data 39
    39. 39. Enterprise Listening Platforms 40
    40. 40. Service improvement opportunities 41
    41. 41. Seamless experience across multiple contact points 42
    42. 42. CRM Life Cycle 43
    43. 43. Engagement Process Framwork 44
    44. 44. Social view 45
    45. 45. Data Intelligence Architecture 46
    46. 46. Consumer Persona - Young Digerati (Urban) Name: Carol & James Age: 25-44 w/ children Income: $85,599 (Wealthy) Media: Use: Internet user, computer, tablet & smart phone Watch: late night & Disney channel Read: Parenting blogs, Economist, sports news on ESPN.com Connects: via Facebook, Pintrest, Myfamily and LinkedIn Education: Graduate Plus Ethnicity: White, Asian, Hispanic, Mix Other: Plan vacations on expedia.com Go Waterskiing Carol shops Disney princess dresses online Drive Audi A3 Seek richer videos online & ease of purchase given their busy lives 47
    47. 47. Consumer Persona - Kids & Cul-de-sacs (Suburban) Name: Janine & Henry Age: 25 – 44 w/ children Income: $71,926 (Upper mid) Media: Use: Internet user, computer & smart phone Watch: late night & Disney channel Read: Cooking blogs, WSJ, watch sports on ESPN.com Connect: via Facebook, Blackplanet, LinkedIn, Instagram Education: College Graduate Ethnicity: White, Black, Asian & Hispanic Other: Shop at Disney store Buy educational toys Drive VW Routan Homeowners Very active and social on weekends Henry plays fantasy basketball on ESPN.com Janine looks for budget vacation advice online 48
    48. 48. Consumer Persona – Upward Bound (Second City) Name: Stephanie & Andy Age: 35 – 54 w/ children Income: $83,651 (Upscale) Media: Use: Internet user, computer, tablet & smart phone Watch: the N Read: PC gamer Connect: via Facebook, Pintrest, Google+, Fantage Education: College Graduate Ethnicity: White, Asian, Hispanic, Mix Other: Homeowners Buy toys on internet Order from target.com Drive Toyota Sequoia Heavy purchasers of computers, games, action figures, board games, dolls Tend to be kid-obsessed 49
    49. 49. Consumer Persona – Country Squires (Town & Country) Name: Claire & Steve Age: 35-54 w/ children Income: $101,507 (Upscale) Media: Use: Internet user, computer & smart phone Watch: pay-per-view movies Read: Family fun Connect: via Facebook,LinkedIn, Instagram Education: Graduate Plus Ethnicity: White, Asian & Mix Other: Enjoy skiing, boating, golfing Order from amazon.com Drive GMC Yukon Denali Homeowners Very active Steve follows golf leader boards on ESPN.com 50
    50. 50. TargetingSocial CRM can enable Disney to identify the specific customer and layer on thesocial insights to develop a rich persona.Target to provide rich visual experiences to these customers, content they likeand identify the family unitTargeted sales, support, contenthttp://www.socialmediaexaminer.com/what-is-social-crm/ 51
    51. 51. Visually Focused Sites Find Their Place Curation and imagery are key to the current state of social media. Many users want to express themselves by cultivating an online space that represents them visually. Brands, too, are interested in opportunities to develop their story in a visually engaging manner. The services that help consumers express themselves can do the same for brands. Facebook is helping by integrating with apps and third-party social sites. In January 2012, Facebook announced integrations with companies such as Pinterest, Fab.com, LivingSocial and Goodreads. 52
    52. 52. Business model #1: Hyper-Targeted AdsA/B testing approach (before rolling out for all campaigns)1. Choose a representative yet relatively small channel and segment set. Example: ABC Family in one midwest city like Cleveland.2. Divide set into: • A: Control group • B: New segmentation algorithm #1 applied • C: New segmentation algorithm #2 applied3. Measure conversions for each set, isolate best response4. Iterate steps 2-3 until all algorithms have been exhausted.5. Rollout to all channels and geographies 53