Transcript

Becoming a Social Business

ITSMA December 4, 2012

Richard Margetic, Dell Director, Global Social Media

Global Marketing

Our Journey to Becoming a Social Business

Dell saw Social Media as an opportunity to build and further nurture customer relationships through listening to, and engaging with, customers in meaningful ways.

• Realization: Social was impacting many parts of the business

• Challenge: Establish a framework that could scale across the business

• Solution: Define a platform-agnostic strategy, a governance model to manage, a communication system to educate / inform, an insights program to measure impact and a culture that embraces it

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January 2008Dell aligns organization for success

August 2006Blog outreach expanded beyond tech Support

December 2006Ratings and reviews launched on Dell.com

July 2006Direct2Dell launchedToday Direct2Dell exists in English, Spanish, Norwegian, Japanese and Chinese.

February 2006Michael Dell askedWhy don’t we reach out and help bloggers with tech support issues?

January 2007StudioDell launchedDell’s video and podcast site, with helpful tips and tricks. Eventually expanding this into the YouTube channel making sharing easier.

February 2007IdeaStorm launchedA voting based site allowing customers and others to submit ideas for Dell.

June 2007Dell joined Twitter

EmployeeStorm launchedInternal Blogs Launched for Employees.

October 2007Michael Dell quoted in Business WeekIn response to Jeff Jarvis question around whether companies want to be part of the online conversation: ”My argument is you absolutely do. You can learn from them. You can improve your reaction time. And you can be a better company by listening and being involved in that conversation.”

November 2007DellShares launchedThe first investor relations blog by a public company.

March 2008Accepted Solutions launched on Community Dell France begins Online Community Outreach

May 2008Dell Outlet achieved$0.5M in sales via Twitter

April 2008Inside IT launchedBlog focused on business customers, and Cloud Computing.

June 2008Channel blog launched

January 2009Dell Organizes into four customer focused business units

Spring 2009Members of Community and Conversations deployed within each of the new Dell Business units

June 2009$2M+ Salesvia Twitter

2009Dell TechCenter

June 2009Global Twitter revenues of $6.5 M

December 2009Huffington Post Blog

March 2010Dell joins Sina Weibo in China

2006 2007 2008 2009 2010 2011

Altimeter recognized

Dell with “Open Leadership Award for Innovation and

Execution”

Social Media & Community University (SMaC U) launched5,000 teammembers trained byend of year

B2B pages on Facebook

Dell named the No. 1 most social brand

6 Awards for the Social Media Listening Command Center

June 2010CAP Days launched In-person events for vocal online customers

December 2010

Social Media Listening Command

Center launched

More than six years of social media experience

3

2012

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Realization

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Marketing before it became formal

Intimate, customer connections

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2005-2006

• Thousands of conversations about Dell and related topics of interest

• Conversations rich with valuable insights

• Various parts of the business impacted

• Online traffic/time spent shifting to social

• No Dell voice

4,000 online conversation

s per day regarding

Dell

• Companies viewed customer support and marketing as primarily one-way.

• Marketing by Dell, its competitors and business in general involved traditional use of mass media.

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Challenge

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Meeting the Opportunity

• Shifting from one way communications to conversations

• Undefined benefits from investing in social– Belief in social media impact will only get us so far

• Incremental resources needed– How do you justify shifting roles to social media management?

• Solve the complexity of coordination across multiple business units and regions– Conversations were around products, customer issues, technology

trends, sales and more

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Solution 1. A platform-agnostic strategy

2. A governance model to manage and scale

3. A communication system to educate and inform

4. An insights program to measure impact

5. A culture that embraces it

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Solution 1. A platform-agnostic strategy

2. A governance model to manage and scale

3. A communication system to educate and inform

4. An insights program to measure impact

5. A culture that embraces it

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All social activities share the same roots

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Smart business fundamentals never change

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Social roots business fundamentals

core social business strategy

+

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Foundation of social strategy: Focus on Value Drivers

Value to Customers Value For DellSocial connections meet variety of needs across customer segments, and enable customers to …

Social connections create potential for tangible impact against Dell’s key value drivers …

Customer Insights to

Drive Innovation

Marketing Spend

Efficiency

Traffic

Basket Size

Cost Savings

• Retention• Profitability

Customer Lifetime Value

Conversion Rate

• Brand awareness• Lead generation• Net Promoter Score

• Support• Sales and marketing

• Unique visitors• Visits/page

views

• Average order value

• Indirect R&D savings

• Leaks in purchase path

1. Make meaningful connections based on shared interests

2. Express themselves

3. Receive exclusive rewards and recognition

4. Get advice, validation, and assurance about decisions

5. Solve a specific problem (their own or someone else’s)

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Integrate where Customer & Business Value are realized across all business functions

Product Development

• Feedback Loop• Early Warning• New Product

Ideation

Marketing

• Demand Forecast• Lead Generation• Message Reach

Online Presence

• Ratings & Reviews• Communities• Customer Stories

Sales

• Collaboration• Thought

Leadership• Blogs

Customer Service

• Listening• Support Widgets• Outreach

Communication

• Rich Media• Brand Reputation• Influence• Reputation

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Listening to Be A Better Business, across the Business

17

IdeaStormPurpose

Our goal through IdeaStorm is to give our customer an avenue to share their ideas on Dell Products, Services and Operations. Statistics

• 60,000+ User Accounts • 18,000+ Ideas• 739,000+ Votes • 97,000+ Comments • 520+ ideas Implemented

Value

• Revenue from IdeaStorm members is ~50% higher than non-members

• Purchase frequency is 33% higher • Higher Lifetime Value

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Solution 1. A platform-agnostic strategy

2. A governance model to manage and scale

3. A communication system to educate and inform

4. An insights program to measure impact

5. A culture that embraces it

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Governance: Facebook Reinvention turned a jungle into a tended garden

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2008, a search for Dell on Facebook returned 485 results, including abandoned, off-brand, unmonitored sites

Governance reduced the number of official and non-official Dell pages, deleting noise & bringing focus to high priority Dell initiatives.

Agreed upon governance model – To contain unbridled proliferation of sites

that would harm the brand Consistent brand

– To stay ensure alignment Taxonomy framework

– To know where any new site fits and improve user experience

Standardized tools– To minimize launch churn, maximize

efficiencies by leveraging BIC functionality

Shared agency– To maximize spend, avoid churn and

stay aligned

Resu

lts

Governance process rolled out to all social media platforms– Processed ~1,000 social media requests

to date, Cross-segment core team established to

ensure interlocks and alignment– Extended team exceeds 50 weekly

members Agreed upon core social strategy

– Enables establishing presence in new platforms friction-free (Google+, Tumblr)

Embedded tracking– Ensures all accounts in compliance are

tracked effectively

Today

Social Media Requests Social Media Fans & Followers by Platform

Compliance

• 128 Issues were reported• 105 Pages were taken down• 23 are Pending verification

Social Media Fans & Followers by Region

SMaC Governance Reporting

54%40%

6%

NARC Report

Processed Launched Sunset

Processed

Launched

Sunset Declined

946 711 101 103

Faceb

ook

Google

+

Linke

dIn

Twitte

r

Wei

bo

YouTube

0102030405060

Consumer

LE

SMB

Corporate/Global

Feb-11

Apr-11

Jun-11

Aug-11

Oct-11

Dec-11

Feb-12

Apr-12

Jun-12

Aug-12

Oct-12

PinterestSlideshareYouTubeQzoneLinkedInGoogle+SinaRenRenTencent WeiboTwitterFacebook

NA APJ Global EMEA LATAM

Series1 5301108 4918005 1345053 742274 449144

500,000

1,500,000

2,500,000

3,500,000

4,500,000

5,500,000

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Team begins by just listening and monitoring earned social.

Tech support experts were then hand-selected for their tech problem-solving expertise and superior interpersonal skills.

When pointed at owned social, ournegative sentiment in Facebook was halved in the first two months

On average, the team addresses 3,000 posts a week in 11 languages

– 98% resolution rate

– 45% ranters to ravers

Customer Experience

Today

Social Outreach Team Formed March 2006

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Solution 1. A platform-agnostic strategy

2. A governance model to manage and scale

3. A communication system to educate and inform

4. An insights program to measure impact

5. A culture that embraces it

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Educating Employees: Social Media & Community University

Principles

Policy

Processes

Training & tools

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SMaC U Today

• > 12,000 employees trained

• > 7,000 employees certified

• We train globally in 55+ countries– Focus on regions where our largest

marketing, sales and product teams exist

• Launched a Training Ambassador program, where certified employees may apply to teach on behalf of the University. 

• SMaC Champions: Certified employees given a list of social activities that they can participate in. One is crowdsourced translations of social media content.

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Social Media Playbook

• Designed for Dell Marketers & individuals responsible for planning & operationalizing social media

• Helps you plan, build, execute, measure & syndicate social media strategies

• Provides tools for creating KPI’s & measuring business value

• Includes helpful templates, checklists and worksheets

Confidential25

SocialMedia Playbook

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Solution 1. A platform-agnostic strategy

2. A governance model to manage and scale

3. A communication system to educate and inform

4. An insights program to measure impact

5. A culture that embraces it

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Measuring Owned

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Measuring Earned

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Insights

• Social media engagement improves Dell’s reach and share of voice in the marketplace

• There is a causality between social media activity and engagement leading to Dell purchases

• Social media engagement positively attributes to demand generation

• Social media support improves sentiment, which correlates with higher customer revenue

• Social media engagement keeps Dell and customers connected and that improves loyalty 

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Solution 1. A platform-agnostic strategy

2. A governance model to manage and scale

3. A communication system to educate and inform

4. An insights program to measure impact

5. A culture that embraces it

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Scalable strategy

Clear objectives

Defined processes

Crisp communications

Precise measurements+

=

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Conclusion “Engaging in honest, direct conversations with customers and stakeholders is a part of who we are, who we’ve always been. The social web amplifies our opportunity to listen and learn and invest ourselves in two-way dialogue, enabling us to become a better company with more to offer the people who depend on us,” Michael Dell, CEO

Thank You


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