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The Value of Social Media
Getting Down to Business
September 15, 2010
Twitter: @BradleyJLittle
“Advancing Social Media Intelligence”
Trusted DataMetrics & KPIsInsights
Strategic ConsultingProcess and OrganizationDigital Marketing
▪ Jointly owned by Nielsen and McKinsey; co-developing unique software, metrics, and analytic services
▪ Market leader in enterprise social media monitoring/analytics (Source: Forrester)
▪ Dataset: Billions of social media conversations per year across 145 million blogs, message boards and social networks
▪ Global: 13 markets now ; 20 by EOY 2010; over 150 clients globally
▪ Quality is highest in the industry (source: Microsoft)
▪ Proprietary technology for analyzing social media
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BlogsBoards Groups
Proprietary Data
Social Networks
CleaningHarvesting
RelevanceAnalytics
World’s largest content reservoir Slice wisely for relevant, actionable insights
Control the harvest to ensure quality inputs
Filter the noise to focus on what matters
Local, full-time researchers
Built to deliver trusted insights
What do we deliver?
Client Dashboard Tools & API Analyst Research Reports & Strategic Services
Use It For: At a glance brand metrics Self-service brand monitoring Analyst-Grade research tool Integration with other
applications
Use It For: • Longitudinal brand tracking• Adjusting key launches, events• Deeper, brand Insights• Informing strategy
All of the above supported by our local Social Media Analystsand/or Digital Strategic Services Consultants
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The “new” purchase funnel
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Expression
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Abundance of buzz sourcesSocial media (“buzz”) refers to public, online conversations
SOURCE: Nielsen
Globally consumers spend 6 hours a month on Facebook
More than 60% ofconsumers have visited a consumer-drivenwebsite
More than 2/3 ofglobal consumersuse online productreviews to makepurchase decisions
41% of Facebook users in MENA are over 30 years old
>35% of consumersrely on peer recommendations and WOM to makepurchase decisions
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Increasingly relevant for brands
“This product made my hair frizzy, dry and worst of all, led to...HAIR LOSS! Totally not worth it. I will go back to my old shampoo and conditioner.”
“I love this shampoo. I went through a phase in my life where I dyed my hair every color under the sun. This caused my hair to become dry and damaged. No matter what product I used nothing helped. Then this beauty came into my life and my hair is wonderful! I suggest this to anyone with dryness, split ends, or frizz.”
of online discussion
mentions brands26%
SOURCE: NM Incite
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Amplified impact on businessCase example: TV buzz (US)
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Social media drives intent…
SOURCE: NM Incite
Large increase in intent
No increasein intent
Less positive buzz More positive buzz
Difference in intent
between exposed
and control
Net sentiment
Net sentiment and change in purchase intent from buzz exposure (case example)
A
B
D
C
E
Brand A had a 15% lift in purchase intent
vs. 3% for Brand E
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…and influences sales
SOURCE: McKinsey
Online word-of-mouth influence on purchases (European example)Percent of sales influenced
Word-of-mouth is the primary factor behind
of all purchasing decisions
Electronics and computer equipment
Beauty care and clothes
Finance products/services
Telecom services
Travel & Entertainment
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Impact spans beyond marketing and sales
SOURCE: McKinsey Global Institute
Measurable impact of using social media and other web 2.0 technologiesPercent of companies
Increasing marketing effectiveness (e.g., awareness, consideration, conversion, loyalty)
Increasing customer satisfaction
Reducing marketing costs
Reducing customer support costs
Reducing travel costs
Increasing revenue
Reducing time to market for products/services
Increasing number of successful product/service innovations
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Challenges to social media strategy
15SOURCE: Nielsen, Google Trends, Mashable
Relevance: buzz can be messyWhat people tweet
of tweets have
“useless” information~50%
...but cutting through this messiness is where
the value and your advantage lies.
In a word: Unprompted!
5/16/105/2/104/18/10
Weekly buzz volume and reach
Reach
Volume
Campaign
Reach and impact: marketing effectiveness
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Advocacy: measuring influentialsThatKevinSmith twitter account1.6 million followers
Southwest Airlines twitter account1.0 million followers
Kevin Smith twitpic caption: Hey @SouthwestAir! Look how fat
I am on your plane! Quick! Throw
me off!
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Challenges of social media measurement
Relevance Reach and impact Advocacy
▪ Identifying relevant information
▪ Determining the right scope for your brand/product category
▪ Measuring the full reach of social media and its influence
▪ Quantifying the business impact (marketing ROI)
▪ Identifying “influencers” and measuring influence
▪ Determining the impact of online advocacy and criticism
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Organizing for social media transformation
Product development
Marketing
Customer care
Defensive branding
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How do we get there?
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It’s as global as the World Cup
Paul the octopus generated more buzz than all players combined
And Paul the octopus
• The Buzz is around Qatar’s official submission of it’s bid for the 2022 World Cup
• The Buzz is driven by Australia withdrawal of 2018 World Cup Bid
• The Buzz revolves around China desire to bid for 2026 World Cup
• The Buzz spike is generated by the arrival of FIFA inspection team in QatarB
CA
B C
A
D
D
How about the 2022 bid in Qatar?
• Comment underlining Qatar capability to host the 2022 World Cup
• Comment praising Qatar infrastructure and rapid development
• Comment on the quality of the stadium and interest in the soccer by the Qatari population.
“
”http://vb.alarabi.qa, July 28, 2010
“
http://www.z5z5z.com, September 10, 2010
“
”http://www.kanzalarb.com, September 15, 2010
B
C
A
What is the Arab world saying about the bid?
There is value in Sales/Marketing, but there is so much more!
▪Feedback
▪Engage
▪Advocacy
▪Brand Strengths
▪Bottlenecks
▪Marketing Mix
▪ Influence
▪Customer Insight
▪New Product Dev
▪Demand Forecasting
▪Packaging
▪New Launch Tracking
▪Threats
▪ Investors
▪Reputation
How can we use social to transform the organization?
How can we use social to extract maximum value for the company?
R&D/Insight Sale/Marketing PR/Comms Service
“I wish I could find…”
“I LOVE fun food”
“I hate it when my
refrigerator is without…”
“Mornings areIMPOSSIBLE without my…”
“…when I’m eating in
my car.”
Brand Centric “We will be focusing on developing several
concepts out of this work for further testing.”
- NPD Group, KraftIllustrative Verbatim
New Product Development
Social media analysisSurvey
Attributes tested in survey questionsPercent agreeing strongly
13
18
25
40
68
Fit well
More comfortable
Healthier
Cost effective
Environmentallyfriendly
2
4
8
10
16
24
28
42
Environmentallyfriendly
Cost
Cheaper
Flushable
Home birthing
Home schooling
Diaper rash
Organic
Associated Online AttributesRelative score
Survey indicates 68% of consumers believe "envi-ronmentally friendly" is most important, however unprompted consumer feedback ranks it last
In authentic, online conversations, "organic" and avoiding "diaper rash" are most associated concepts and attributes
Asking vs. Listening
0.5
1.0
1.5
2.0
2.5
3.0
3.5
BT or British Telecom
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
2009 2010
15 26 10 24 07 21 5 19 02 16 30 13 27 11 25 08 22 06 20 03 17 31 14 28 14 28 11
Trended Sentiment Score
Increasing customer lifetime value by improving service experience
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We can help!
Let us help you harness the power of social media intelligence and drive smarter and more efficient decisions across your organization.
Brad LittleHead of NM Incite, EMEA189 Shaftsbury AvenueLondon, WC2H 8TJUnited Kingdom+44 (0)20 7014 [email protected]: @bradleyjlittle