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Social Media in Business (Australian Edition)


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Social media is the new media revolution. Many now believe social media is fast becoming the biggest area of risk and reward for Australian businesses. The social media in Business report by George Patterson Y&R explores the various strategies of social media within Australian corporations, their risks and ultimately benefits.

Whether you’re a digital novice or seasoned marketing professional, there's something to be learned from this report.

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Social Media in Business (Australian Edition)

  1. 1. Social Media In BusinessOctober 2011
  2. 2. Social MediaTable Of ContentsIntroduction 3Y&R Group Expertise 4The Australian Landscape 67 Social Strategies To Enable Business 7Listening 8Customer Service 10Crisis Management 13Content Distribution 16Recruitment 18Community Engagement 20Internal 23Y&R Group Global Case StudiesGatorade Mission Control 26Dell - Review, Respond, Record, Redirect 32 2
  3. 3. Social MediaIntroduction"I just got a new Dell laptop and paid a fortune for the four-year, in-home service. The machine is a melon and the service is a lie….DELL SUCKS DELL LIES. Put that in your Google and smoke it, Dell."It was 2005 when Jeff Jarvis posted this scathing comment onlineand, whilst nowadays we might call the ensuing publicity aTwitterstorm, back then they just called it ‘Dell Hell’. Yet if there isone lesson to be learnt from social media, it is that pain and gainoften come together. Shocked into action by ‘Dell Hell’, within fiveyears the company announced that they had made more than$6.5m in revenue from Twitter sales alone.In this document we use case-studies and the combined wisdom ofthe Y&R Group to explore seven key uses of social media, andsketch out the associated risks and rewards.Looking at other Australian service brands, we see that approachesvary massively from one to the other. Hardly any brands engage inall seven uses - some choose to employ social media as a branding Grasping the nettle.mechanism only, while others use it as a core customer servicechannel. For you, the same will doubtless be true: sometimes therisk will outweigh the reward; sometimes the opposite will be true.Yet, as our final Dell case-study shows, the key is to ‘grasp thenettle’ in the first place. All brands need a strategy on theirapproach to social media. This report is designed to be the firststep towards writing yours This document includes work from the Australian Y&R Group, our global network and best practice examples from other sources. 3
  4. 4. Social MediaY&R Group ExpertiseFor over 5 years Y&R Group have been engaged in the practice Social Media Highlightsof social media. As the media landscape has evolved into a • 2 x Cannes Lion Winner – Cadbury Picnic (Social Mediademocratic existence of brands and consumers so have the Campaign)strategies and tactics of advertising agencies. No longer does a • Canvas2Kickass – Crowdsourced Integrated Campaignsingle TV ad sit by itself in the media stream, because now there • ActewAGL Social Media Strategy & Policyare platforms and places for consumers to comment, critique • Spring Valley Community Development (20,000 – Marketand contribute to the rise and fall of a brand public image. leader in juice category)Brands now build communities, ask consumers for opinions and • Just Car Insurance Community Development (20,000 – Largest Insurance Page In Australia)even allow the public to help create advertising campaignswhich are seen by millions of Australians. Y&R have embraced • Cadbury Bar Portfolio Facebook Managementthis change in media and now employee specialist social media • Australian Defence Force Social Media Policy Review (2011)staff who work alongside the traditional disciplines of this • Defence Force Recruitment Facebook Chats (Navy, Army, Airagency. Force) 4
  5. 5. Social MediaA 162 Collins Street Perspective On Social MediaWhat’s the single biggest implication ofsocial media in business today?Russel Howcroft Mark McCraith Luc WiesmanChief Executive Officer Chief Operating Officer Head of Digital StrategyYoung & Rubicam Group Maxus George Patterson Y&R“Social is the new Media. It’s that “How do clients use this medium “Change. The sooner brands putsimple. And that’s scary. “ effectively as a marketing/ media the right resources, practices and channel, and more importantly policies in place, the sooner they how the dialogue is constructed can realise its potential.“ and how often.” 5
  6. 6. Social MediaThe Australian LandscapeAustralian corporations are nowinvesting in the key social platforms; How does your brand stack up?Facebook, Twitter, YouTube andLinkedIn. 250000"Whilst strategies in this space differfrom company to company, thesentiment remains the same- have a 200000"plan, a presence and always belistening. 150000"Key takeouts:• Facebook remains the most dominant platform for businesses, due to its immense local 100000" user base.• Energy and Insurance have least developed presence in this space. However, Just Car is a standout 50000" within the category.• Travel has the largest audience, and offers multiple accounts for 0" various business units. (i.e. Media, AGL Qantas Jetstar ANZ Westpac NAB Telstra 3 Mobile Virgin Optus Ford Holden Nissan Toyota Just Car AAMI Vodafone Tiger TruEnergy Momentum Energy Origin Energy Bendigo Bank CommBank Virgin BMW Brand, Customer Service.)• Holden, a standout performer across Australian corporations. Energy Travel Financial Services TeleCommunications Automotive Insurance Brand vs. Social Media Followers (All Platforms) 6
  7. 7. Social Media7 Strategies To Enable BusinessesProven social media Listeningstrategies forAustralian business. Internal Customer ServiceWith social media, there’s no one size fits all strategy. Tosuccessfully utilise this channel, business must invest inunderstanding the different uses, risks and rewards. SocialAs a method of simplifying this process, we divide social Mediamedia into 7 key categories. These categories enable a Community Crisisbusiness to ask; is this right for us? what’s the ROI? do we Management Managementhave enough resource to manage this? and what are therisks involved?With this information, a business can implement the rightpartners, people and processes to successfullyparticipate and leverage the benefits of social media. Content Recruitment DistributionAs seen in the previous page, these strategies have beenimplemented and proven by a number of large Australiancorporations across banking, finance, automotive andtourism.Question: If you’re not already using social media, howmight one of these strategies benefit your business? 7
  8. 8. Social Media1. ListeningListening empowers brands withreal-time consumer sentiment.What is Listening?Listening is defined as the monitoring and collection of social discussion to make informed decisions based on ‘real’ evidence andinsight. Listening occurs across channels such as Facebook, Twitter, forums, blogs and other digital channels of open discussion. Byengaging in “Listening”, a business can better understand the consumer sentiment toward its brands, products, people and services. Risks Benefits • Listening enables businesses to better understand consumer sentiment of its brand, products and services • Insight from social data can influence business strategy • Ability to gauge public interest of new products and services • Creates a system to alert staff of the need to address customer service and crisis • A method of identifying influential people and websites that can amplify positive discussion around a brand, product and service. 8
  9. 9. Social Media1. ListeningDiscussion becomes insight, insight creates action.Adidas Microsoft xBoxIn 2008, Adidas launched new soccer boot. After an impressive Xbox was due to launch its hotly anticipated 360 console. Totwo months, the sales of the product began to halt. By assist the launch strategy, xBox monitored a number of gamingmonitoring its customers in online and social media forums, blogs to identify the most vocal and influential. These influentialAdidas soon learned their new product had a fault in its bloggers were flown to xBox HQ to be the first to play the newconstruction, causing it to fall apart. 360 console.With this knowledge, Adidas went back to the factory, fixed the After 3 days of experiencing the next big thing, bloggers flewproblem, relaunched the boot, and notified its vocal social media home and began telling their respective gaming communities.consumers. When xBox went to market, Microsoft had gained a loyal groupSales of the boot soon returned to their previous levels. of advocates willing to promote its console (for free). This also helped give xBox a massive advantage over Sony’s PS3 console. 9
  10. 10. Social Media2. Customer ServiceTransparent interactions withyour customers online.Today, customer service is more than just setting up a call centre and waiting for consumers to call you. The fragmentation of mediahas created an expectation that brands will exist across various platforms, to answer questions and provide support via variousmediums. Consumers now want to ask questions at a time and on a channel that suits them. Brands that successfully do this, arerewarded with high customer satisfaction and customers sharing their stories about their service. Risks Benefits• Negative comments and feedback are publicly visible. • Greater ability to deliver customer service quickly and• Examples of poor customer service live on, well after the initial efficiently incident. • Reduced load on calls centres and other forms of traditional• Resourcing and staff who can respond to customers in a customer service channels timely manner (within 24 hours). • Increased levels of customer satisfaction (ability to receive• Ignoring disgruntled customers can escalate situations service on a channel they prefer and without waiting on hold) unnecessarily. Often, a simple response can avoid potential • Ability to personalise and humanise the impersonal channels disasters. of a business • Good customer service can easily be shared and amplified amongst customer’s social networks • An opportunity to be seen as an industry leader in accessibility, transparency and customer satisfaction • A method of tracking successful outcomes • Cross promote customer and sales channels to improve acquisition of new customers. 10
  11. 11. Social Media2. Customer ServiceIn September 2010, NAB made a decision to shift into the socialmedia space, understanding it required a whole new approach tocustomer service.Managed by NAB’s ‘social media team’, across both Facebookand Twitter, NAB responds to comments, questions andfeedback from its customers.NAB only responds during business hours, however, they haveways and means to ensure that questions are responded towithin 12 hours.At the same time NAB have managed to grow their social mediacommunity, becoming leaders in this space and putting a humanface on what is a notoriously dry and often disliked industry.Dedicated social media team commissioned to respond on behalf of the bank. 11
  12. 12. Social Media2. Customer ServiceAfter launching the 2011 Ford Explorer, Ford realised the samequestions kept appearing over and over from the community.Rather than responding to each one by text, Ford created the‘Explorer’ channel on YouTube where questions are answered with ashort video.Within this channel, questions such as, ‘How much does the FordExplorer weigh?’ and ‘Will the console fit a handbag?’ could be askedand answered by different members of the Ford team.Ford were able read and respond to questions within a day –publishing the video responses on their social media channels.These videos were also used as content for the community, creatinghours of video for potential buyers to watch and engage with. Social questions answeredwith video responses. Brilliant. 12
  13. 13. Social Media3. Crisis ManagementA means for brands to responddirectly to the public.On the internet, everything moves quickly. So fast in fact that people can read about an earthquake on Twitter from the other side ofthe country before they feel it. When a brand crisis happens, things move just as quickly and can often be just as damaging. Brandsare increasingly developing practices and procedures to deal with such crises, whether it’s a natural disaster or an online scandal.Social media is playing a key role in the response and prevention of these crises, with the ability for brands to communicate withreach and in a timely manner. Risks Benefits• Failure to respond will cause more problems • Ability to diffuse a situation before it becomes a mainstream• Failure to move quickly when a crisis takes place will often crisis have a negative impact on a brand • A platform to provide clear statements and information directly• Lack of honesty and transparency with the issue at hand – can to consumers in times of need amplify the situation and cause more issues. • Ability to reach connected customers before mainstream media does. • Creates positive brand image for brands with the ability to respond quickly. 13
  14. 14. Social Media3. Crisis ManagementIt’s taken Qantas a while to find their feet in the social media space,but now they add value to their business through crisis management.Qantas see both Twitter and Facebook as ways to communicatealmost immediately to passengers during crisis such as industrialstrikes or natural disasters.For example during a recent natural disaster (Volcano Ash Cloud),passengers were confused, lacking information and unhappy.Social media allowed Qantas to broadcast delays, flight informationand updates immediately to thousands of travellers. These updateswere accessible via customers mobile phones in locations wherepassengers were unable to access mainstream media.Qantas followed this up with one-to-one communication withindividuals if further information or help was required.Keeping customers informed. 14
  15. 15. Social Media3. Crisis Management Speed, sincerity and authenticity are paramount in times of crisis.In early 2009, two Domino’s Pizza employees filmed themselvesbathing in the restaurant kitchen. Within hours the video went viraland naturally the Domino’s brand was quickly tarnished over night.Dominos took a best practice approach, and within 24 hours theCEO had filmed his response on YouTube.The video detailed how Domino’s had already handled the issue,clarified statements and errors made by the media and detailedwhat they were doing to ensure Domino’s never had the sameproblem again.Traditionally, a response like this might take weeks or even monthsby the time it gets signed off and goes through each stakeholder.By moving quickly and directly, Domino’s were able to deal with theissue immediately before it grew out of control. 15
  16. 16. Social Media4. Content DistributionMore messages in more places.Across various channels, consumers are liking, following and subscribing to brands they feel represent their digital selves. In doing so,they opt-in to receive communications and content material, along with the rest of the community. The most popular form of socialmedia distribution is via Twitter and Facebook pages – where consumers receive daily updates from their favourite brands. Risks Benefits• Consumers expect brands to maintain regular • Ability to build large ‘databases’ of engaged consumers with communications and engagement with its followers common interests• Communities which created then neglected offer little or no • A cost effective way to broadcast information and brand value for a brand updates to a large group of consumers / customers.• Content creation and management of these channels can • A simple method of message amplification – content, videos, become costly as communities grow in size and demand images, are shared to personal networks.• Users can sometimes ‘spoof’ or create parodies from branded • A method of distributing content to more places beyond your content (i.e. Chevy Tahoe). brand’s homepage, i.e. Embedded amongst blogs and forums. 16
  17. 17. Social Media4. Content DistributionHolden have a quarter of a million loyal followers on Facebook.They’re regularly able to share campaign material, informationabout new models, and talk to their most devoted and loyal fans.Everything Holden does in marketing or communications isdistributed via these 230,000 fans, giving Holden an incrediblehead start creating hype or interest around new products, eventsand its associated businesses (i.e. Holden Racing).Holden has developed a content strategy around what’s publishedwithin the channels, ensuring the brand can maximiseengagement and interest in their content.Engagement and interest are then measured and tracked -offering insight into the ROI social media provides the brand. Holden have created one of the largest branded communities in Australia. 17
  18. 18. Social Media5. RecruitmentNew opportunities in sourcing talent.Social media offers businesses new opportunities to promote themselves as an employer of choice using social media via channelssuch as LinkedIn, Facebook, YouTube and Twitter. It enables businesses to showcase its employees, projects and internal culture toprospective candidates and industry peers. Risks Benefits• Poor personal behaviour and social etiquette of company staff • A means of searching for candidates who openly display their can tarnish a brand’s image, even if the employee is not acting current employment and previous history. on behalf of the business. • Use of social media by employees can demonstrate thought• Inappropriate use of blogs, social networks and even Twitter leadership within their industry. For example if an employee accounts can generate negative commentary in the media, writes for an industry blog, this has positive associations for however can be avoided with the development of an the business, generating a more positive image of the business Employee Social Media Use policy. for potential recruits. • Social media, particularly through LinkedIn, can be used to generate networking opportunities, particularly useful for recruitment. • Businesses can use social platforms to demonstrate who they are, their internal culture as well as distribute the work they create. 18
  19. 19. Social Media5. RecruitmentAs a business, Rio Tinto value social media as a method of not onlyrecruiting, but showcasing their business as an employer of choicevia LinkedIn.Whilst Rio Tinto may be a global company, it has amassed close to16,000 followers on LinkedIn. Within their corporate profile they sharenews, announce hires as well as newly vacant positions and providegeneral information about the culture of the Rio Tinto business.By maintaining an up-to-date presence on LinkedIn, Rio Tinto increasetheir visibility as an employer of choice, allow closer relationships withcandidates and in-turn reduce the need for recruiters to find qualityemployees. Rio Tinto connect directly with staff and employment candidates. 19
  20. 20. Social Media6. Community EngagementDigital brand advocates.Brands build positive relationships with their customers by creating branded communities. Communities within the likes of Facebook,allow consumers to collectively discuss their interests in a brand. As these communities gain momentum, brands can leverage thecollective opinion and insights they provide. Product development, service improvement and brand advocacy are just some of theways brands leverage this strategy. Risks Benefits• An open forum allows consumers to openly critique and • A strong community of loyal brand advocates will manage criticise brands. itself. In most instances negative publicity / discussion is• Without a social media response and management policy, outweighed by the brand advocates positive voice. negative discussion within a branded community can turn • Real-time feedback on new products and services (asking the toxic. community questions)• Communities require regular moderation and monitoring of • Ability to recruit brand champions / advocates to promote a discussions and comments. product or talk on behalf of the brand (xBox) • Quality content is amplified to consumers social networks - drawing new followers to a brand and increasing positive brand currency. 20
  21. 21. Social Media6. Community EngagementJust Car insurance currently have the largest social mediacommunity of any insurance brand in Australia. Off the back of theirsuccessful Canvas2Kickass campaign, they have amassed over37,000 followers. Within their community, they regularly engage theircommunity with competitions, content, discussions and productinformation.Members of the community provide Just Car with real-time feedbackon new products and offer a place for Just Car to gain collectiveintelligence about their key target audience. Just Car also has staffon standby to answer any insurance questions within 24 hours.The Just Car Facebook page continues to drive community growthand keep existing members interested and participating indiscussion.Building a branded community around a common interest. (Modified cars) 21
  22. 22. Social Media6. Community EngagementStarbucks wanted to engage their thousands of customers in away which could make a positive difference to the was created as a method to generatecrowdsourced ideas. People from all over America joined thisimmensely popular website, to openly contribute and co-createwith the Starbucks brand.In its first year over 75,000 ideas were submitted, The websiteis now in its third year, and whilst the company has been slowimplementing the ideas (only 25 in the first year), they havemaintained its popularity and it continues to be contributed toby brand advocates.Empoweringcustomers to shapethe future of a brand. 22
  23. 23. Social Media7. InternalCo-creation and collaboration.Although not as commonly used, social media can also provide platforms for businesses to support internal culture andcommunication between employees. Initiatives to drive collaboration and sharing through internally-facing social media platforms canprovide employees with access to tools and resources to increase effectiveness and innovation. Risks Benefits• As the concept is quite broad and can vary dramatically, • Increased levels of communication, sharing and collaboration internal use of social media platforms (i.e. Yammer) requires between staff members help from within the business to drive the project, i.e a • Ability to develop internal culture and promote sharing of champion information• Take-up of internal social media platforms can be slow without • A method of introducing employees to one another a direct benefit to staff. • Co-creation and collaboration in otherwise segmented business departments. 23
  24. 24. Social Media7. Internal Empowering employees to shape the future of your brand.I Am FedEx is almost a social network for all 275,000 FedExemployees. Although it’s public, it’s as much an internal tool as it isan external one. Employees are encouraged to submit their ownstories, share with one another, learn about the company and itsculture and above all; bring FedEx employees together.Employees submit their stories through the platform, and FedExwill send a camera crew to film the most interesting ones. Videosare uploaded to the website, with stories ranging from a deliverytruck driver in India who dances in his spare time to a motorbikeenthusiast who sorts packages in a factory in Texas.I am FedEx has become a tool for FedEx to communicate andstrengthen the culture to employees, and demonstrate their corevalues to key stakeholders both within and outside the business. 24
  25. 25. Case StudiesGatorade & Dell
  26. 26. How the world’smost popularsports drinkmanages socialmedia.
  27. 27. Social MediaA behind the scenes look at GatoradeGatorade has already netted a few notable trophies for its Gatorade is setting the stagefantastic Replay work, including two Grand Prix at Cannes andthe highly coveted Grandy at the Andy awards. for digital leadership. Wherever people are talking, clicking, typing about our brand,When you take a peek at the brands social media command mission control is there to listen.’centre, it offers some clue as to why this brand is suddenly inthe limelight. This kind of control room that facilitates agile reactions in real- time should be an investment under consideration for all brandsThrough our global partner VML, PepsiCo-owned gave us insight right now.into their war room for monitoring the brand in real-time acrosssocial media.The company uses the Command Centre to track mediaperformance, create an ongoing dialogue with consumers, andcollect insights which will influence new product developmentand marketing strategies.For instance, a track featured in a Gatorade ad was released infull following positive online feedback, while the multi-dashboard room also helps to steer online consumers in theright direction.Gatorades ultimate goal: To take the largest sports brand in theworld and turn it into largest participatory brand in the world. See the video here: Contagious 27
  28. 28. Social Media, 28
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  30. 30. Social MediaComplete Social Integration 30
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  32. 32. Social MediaA digital pioneersapproach to tracking,responding andmanaging socialmedia discussion.
  33. 33. Social MediaDell - Review, Respond, Record & RedirectDell is largely recognised as one of the global leaders in bothdigital customer service management and in social media Dell’s Four Point Approachengagement. 1. Review what is being said.Every day, there are 25,000 online conversations that mentionDell. That means 25,000 opportunities to try to resolve consumer 2. Respond appropriately.problems, to amplify solutions, to make Dell products better. 3. Record compelling video.A new Social Media Listening Command Centre now runs 24/7to identify, code and distribute digital Dell references. 4. Redirect your traffic. Where do they look for the positive effect of social media? In digital shopping carts. Dell identify people who have participated in their social-media program, and almost always see a larger shopping cart. In Asia, it can be twice or three times as big. The key to that continued growth is not just listening but what they do after they listen.Source:  Geoffrey Precourt, Warc Exclusive, April 2011 33
  34. 34. Social MediaDell - Review, Respond, Record & Redirect1. Review what is being said To tap into that burgeoning usage, Dell uses three differentDell do more than just respond. They leverage data to change kinds of digital media:the company and business.At Dell, thats embedded into the fabric of the company, with anaction chain that starts with marketing and communications andmoves on to customer service, human resources, productdesign, and development.2. Respond appropriatelyOne of the principal machines that drives Dells social success isits IdeaStorm, a digital engagement/collaboration centre thatbegan in 2007.IdeaStorm has reviewed more than 10,000 consumer-driven"brainstorms” and "taken action” on 400 ideas about designingproducts differently-a process that has transformed the businessand technical support.People are talking about Dell on Twitter, Facebook, fan sites andtracker sites. Dell realised their home page was no, it was and and twitter.comand and and  Geoffrey Precourt, Warc Exclusive, April 2011 34
  35. 35. Social MediaDell - Review, Respond, Record & RedirectTo that end, the company has invited all kinds of employees to talkwith its customers in each of the three Dell digital venues. To date, Dell has formalised its procedures with an ‘Our Social8,800 employees have graduated from a Social Media Certification Media Principles handbook that gives Dell employeesprogram that gives them the basics on the workings of such pointers on how to:offerings as Facebook and Twitter. • Protect information: Whats confidential is confidential.For different tiers of social-media engagement, Browns groupoffers "three levels of access". • Be transparent and disclose: There are 10 magic words that begin every online conversation: ‘Hi. My name is Adam and I work for Dell.’At its most basic level, the instruction essentially emphasisescourtesy, comfort and the basic understanding not to give away • Follow the law, follow the code of conduct: Dell doesany privileged information. have a page of legalese with such guidelines as, Speaking OnBehalf of Dell. Blogging and other online dialogue are far-reaching forms of communication; distribution is meant for a vast public audience. Information purported to be published by Dell contained within blogs and other websites could have a negative impact to Dell and our stakeholders, with potential legal implications. Unless you have successfully completed Dells Social Media training courses and have been certified to speak on behalf of the company via Social Media, You shall never claim to be speaking on behalf of Dell or expressing an official company position in such communications. The ‘OurIn 2011 Dell says their Social Media Principles handbook is much more reader- friendly.approach is to “Go fish • Be responsible. • Be nice, have fun, connect.where the fish are.”Source:  Geoffrey Precourt, Warc Exclusive, April 2011 35
  36. 36. Social MediaDell - Review, Respond, Record & Redirect3. Record and RedirectThe people who volunteer for consumer contact come fromsectors across the fabric of the company. Each unit has aspecific customer-facing engagement role:Dell believe traditional marketing wont work for digitalconsumer engagement. These are conversations, theyrerelationships, If you have them, you dont need a slogan or atagline.Dell says campaigns based on earning sustainable relationshipsleverage the existing audience and grow it for future use."We track ratings and reviews forall of our products. We listen tothe communities and hear ourconsumers stories.They create; we benefit."Source:  Geoffrey Precourt, Warc Exclusive, April 2011 36
  37. 37. Social MediaDell’s Social Media MilestonesSource: Global Marketing 37
  38. 38. Social MediaTaking ActionWith the correct planning, people and risk management,your brand can begin using social media.Brands must have a clear position on social media. The decision to participate (or not) should be based on an educatedunderstanding of costs, risks and ROI social media can offer.We recommend businesses take these steps to evaluate and setup their social media practice. Audit Identify resources Identify opportunities Assign responsibility Develop strategy Training (Staff) Plan of attack Knowledge and tools to participate Social media policy Review Rules of engagement for staff Always be listening / measuring 38
  39. 39. Social MediaFurther InformationThis document was compiled by the Y&R Group.For further information, please contact:Russel HowcroftY&R GroupCEOP 03 9287 1200E 39
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