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How Social Media Has Created Empowered Customers: What Marketers Need To Know

Wayne St. Amand – Executive Vice President, Marketing Twitter: @WayneSaint @CrimsonHexagon

#PowerCustomer

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MARKETERS STRUGGLING WITH REACH, RELEVANCE & RESONANCE

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WE LIVE IN THE AGE OF THEPOWERFUL CUSTOMER

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"As we talk about devices you should never forget that behind every one there is a person, a customer. It is not the Internet-of-things, but the Internet-of-people, of customers. We are moving to one-to-one relationships.” - Marc Benioff,

CEO, Salesforce.com

“At Forrester, we call this the Age of the Customer, and this is not over-stated” - George Colony, Founder, Forrester

World Economic Forum, DavosJanuary 22, 2014

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MARKETERS CAN BE MORE POWERFUL TOOIF THEY LISTEN & TAKE ACTION

ON WHAT THEY LEARN

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SOCIAL MEDIA DATA HAS CHANGED THE GAME

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SOCIAL MEDIA IS THE SINGLE LARGEST SOURCE OF

UNSOLICITED CONSUMER OPINIONS EVER

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400+ BILLIONPOSTS

(1 billion more every 48 hours)

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QUANTIFY THE QUALITATIVE

ON A MASSIVE SCALEIN NEAR REAL-TIME

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BASIC SENTIMENT ALONE IS INCOMPLETE

Major Automotive Brand

102,784 mentions

Positive Negative

23%66% 11%

Neutral

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BASIC SENTIMENT ALONE IS INCOMPLETE

Major Automotive Brand

102,784 mentions

Positive Negative

23%66% 11%

Neutral

Love Chevy Legendary Want One Looks & Design

Performance Great Business

Maintenance Prefers Competitor

Asking advice

11%

9%

18%

9%

11%

8%

11%12%

11%

Love the Brand

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POLLING QUESTION

Do you currently analyze social media to better understand your consumers?• Not yet• Just getting started• Basic sentiment only• Deep qualitative analysis

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LEARN CONSUMER PREFERENCESIN NEAR REAL TIME

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FIRM: BlackBerry (formerly Research in Motion)

BUSINESSQUESTION: How is my new branded smartphone

anticipated and received by consumers in international markets?

METHOD: Develop a framework for evaluating new consumer electronics devices to inform marketing initiatives and new product development by analyzing online consumer discussion resulting from the BlackBerry Z10 product launch in January 2013.

CASE STUDY: BLACKBERRY Z10

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WHAT THE ANALYSIS REVEALED

FINDINGS

A. Since the device’s January UK launch, reactions Z10 have been very negative (74%)

B. Largest driver of negative conversation in UK is simply lack of interest in Z10 (40%)

C. Interestingly, 13% of Z10 conversation reflects pessimism about company’s future

UK Consumers: Reactions to BlackBerry Z10(1/28/13 – 2/18/13) 32,237 Relevant Posts

BLACKBERRY Z10: UK RESULTS

A

B

C

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WHAT THE ANALYSIS REVEALED

FINDINGS

A. Pre launch in the US, there was 2x greater negative volume (74%)

B. In comparison, the largest driver of negative conversation is pessimism on the company’s future (40%)

C. Almost a quarter of conversation expresses belief that BlackBerry is industry follower

US Consumers: BlackBerry Z10 Discussion(1/28/13 – 2/18/13) 62,530 Relevant Posts

BLACKBERRY Z10: RESULTS

A

C

B

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• Able to complete consumer research in hours

• Analyze online brand and product discussions, and contextualize new findings around major events and product launches

• Discover nuance in conversation related to your products and those of your competitors across international markets—in each native language

• Through deep online conversation analysis, companies can uncover desired value elements in each consumer population to inform market messaging

BLACKBERRY Z10 - KEY TAKEAWAYS

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CASE STUDY: EMOTIONAL BRANDING

BUSINESSQUESTION: How can Hallmark forge an emotional bond

with today’s social audience through its classic, sentimental greeting cards?

METHOD: Develop a framework for identifying opportunities to build brand affinity among consumers by analyzing the online conversation about Hallmark over a 12-month time period.

BRAND: Hallmark

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EMOTIONAL BRANDING: HALLMARK

FINDINGS:

A. Over half of conversation about Hallmark consists of sarcastic references to the brand’s emotional attributes

B. Criticism of the brand stems from Hallmark’s commercialization of sentimental moments and messages shared with loved ones

Hallmark: Emotional Tweeting

(2/1/12 – 2/18/13) 169,393 Relevant Posts

A

B

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EMOTIONAL BRANDING: HALLMARK

FINDINGS:

A. Over half of conversation about Hallmark consists of sarcastic references to the brand’s emotional attributes

B. Criticism of the brand stems from Hallmark’s commercialization of sentimental moments and messages shared with loved ones

Hallmark: Emotional Tweeting

(2/1/12 – 2/18/13) 169,393 Relevant Posts

A

B

“Does Hallmark make a ‘Sorry I had a mental breakdown on you’

card?”-@TheJennaBee

“Valentine's day is just a hallmark holiday #whatsthepoint

#singleawarenessday #ismorelikeit.”

-@MackenzieeeeeeB

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EMOTIONAL BRANDING: HALLMARK

FINDINGS:

A. Negative opinions dominate Valentine’s Day in 2012 and 2013, eclipsing 80% of total conversation about Hallmark

B. Interestingly, mid-October rise in criticism corresponds to Sweetest Day— a regional holiday celebrated mainly in the Midwest

Hallmark: Seasonal Sentimentality(2/1/12 – 2/18/13) 169,393 Relevant Posts

A A

B

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EMOTIONAL BRANDING: HALLMARK

FINDINGS:C. Majority of

commentary during the year consists of consumers pairing Hallmark’s sentimental brand image with edgier humor• New forms of emotional

brand engagement are not addressed by Hallmark’s traditional product offerings

Hallmark: Seasonal Sentimentality

(2/1/12 – 2/18/13) 169,393 Relevant Posts

C

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EMOTIONAL BRANDING: KEY TAKEAWAYS

• Successful emotional branding requires an intimate understanding of consumers’ evolving emotional needs and aspirations• Disconnect exists between most consumers’ emotional need/state regarding greeting

cards, and Hallmark’s brand messaging

• Romantic holidays incite criticism of Hallmark’s greeting card business (80%)• To help build emotional engagement and brand loyalty, Hallmark can develop new

marketing communications that reach beyond traditional promotions for sentimental holiday cards

• Throughout the year, Hallmark conversation is dominated by a sarcastic voice (54%)• Might these consumers purchase Hallmark cards, rather than mock them, if the company

engaged with their own brand of sarcastic, self-referential humor?

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CASE STUDY: REBRANDING

BUSINESSQUESTION: What was the impact of American Airlines’

January 2013 rebranding initiative on the firm’s overall brand reputation?

METHOD: Develop a framework for measuring the success of a rebranding campaign by analyzing the online conversations about the brand over a 12-month time period.

FIRM: American Airlines

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AMERICAN AIRLINES: BRAND BASELINE

REACTIONS TO REBRANDING

INITIATIVE

2

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REBRANDING: AMERICAN AIRLINES

FINDINGS:

A. Over the last 12 months, 70% of conversation is unfavorable

B. Largest driver of negative commentary is customer service

• In addition to specific shortcomings (23%), consumers discuss AA customer service more broadly, underscoring an unfavorable brand perception (30%)

C. 15% demonstrate brand affinity with American Airlines

B

A

American Airlines: Brand Baseline

(1/1/12 – 1/16/13) 279,164 Relevant Posts

C

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REBRANDING: AMERICAN AIRLINES

FINDINGS:

A. Unfavorable consumer opinion of customer service, as well as complaint sharing, persist over the entire calendar year

• Frustration with AA is not seasonal; instead, we find this popular perception drives criticism of the brand (30%)

American Airlines: Brand Baseline

(1/1/12 – 1/16/13) 279,164 Relevant Posts

A

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REBRANDING: AMERICAN AIRLINES

FINDINGS:

A. Less than one quarter of the conversation lauds the American Airlines rebrand

B. 17% criticize the new logo, even call rebranding a waste of money

C. Most consumers, however, discredit the initiative altogether; 36% suggest the brand should instead invest resources in improving customer service

American Airlines: Rebrand

(1/17/13 – 1/19/13) 2,289 Relevant Posts A

B

C

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REBRANDING: AMERICAN AIRLINES

FINDINGS:

A. Less than one quarter of the conversation lauds the American Airlines rebrand

B. 17% criticize the new logo, even call rebranding a waste of money

C. Most consumers, however, discredit the initiative altogether; 36% suggest the brand should instead invest resources in improving customer service

American Airlines: Rebrand

(1/17/13 – 1/19/13) 2,289 Relevant Posts A

B

C

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REBRANDING: KEY TAKEAWAYS

• Rebranding presents an opportunity to align the new brand image with consumers’ desired value elements • Over the last year, 53% of conversation about American Airlines consisted of

customer service criticism

• AA’s brand re-launch inspired commentary that did not reflect new brand affinity; instead, consumers were quick to point out the rebrand does not solve the airline’s unsatisfactory customer service (36%)

• American Airlines can launch a new customer service initiative emblazoned with the rebranded logo to proactively combat existing, unfavorable brand associations

• By analyzing reactions to subsequent brand messaging, AA can determine the net impact on consumer perception of customer service

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POLLING QUESTION

Are you surprised that social media data delivers these kinds of deep consumer insights?• Not surprised• Yes, this did surprise me• Surprised & skeptical• Surprised & want to know how

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SOCIAL MEDIA MAKES CUSTOMERS AND MARKETERS MORE POWERFULOPPORTUNITY:

LISTEN, LEARN, ACT

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THANK YOU – QUESTIONS?Visit our web site to request an online demo

CrimsonHexagon.com

#PowerCustomer Follow us on Twitter: @CrimsonHexagon@WayneSaint

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