unlocking brand value with social communities
TRANSCRIPT
1. The value and challenges of Social
2. Key elements of successful brand communities
3. A way to systematically get results
4. The right Energy determines short and long term outcomes in social
5. Six things you can do now to improve your marketing results using social
6. Findings of WFA and STATSIT F&B brand research
Here to talk about
“The people out in the marketplace who embrace the values
of the brand, as customers and/or purchase
influencers, are the brand's true “owners”
BladeCreative Branding
[a Brand Community in social or elswhere]
✓ Increase marketing effect of great customer experiences
✓ Increase efficiency of
crisis management
✓ Increase earned media value
✓ Increase overall marketing efficiency
✓ Increase brand relevance
✓ Increase market research efficiency
Average earned media value of every 1$ invested into paid
media of an influencer program is 6.85$
eMarketer
up 37times bigger
up 6days longerWhen influencers are involved, the
crisis situation issignificantly longer and bigger in volume of conversations
CIC,Social@Ogilvy
Globally, the number of people using ad blocking sofware grew by
41% year over year (21.8 bln of ad revenue blocked)
PageFair,Adobe2016
N=70, STATSIT2016
Negative15.7%
Neutral34.3%
Positive50.0%
Negative, 32.9%
Neutral, 54.3%
Positive, 12.9%
Consumers44.3%Researcher and
Developers, 38.6%
Politics11.4% Businesses
4.3%
Publishers1.4%
Attitude towards Adblocking sofware
Attitude towards Publishers/Advertisers
People talking about Adblocking
“On a scale from strong attraction to strong rejection, 90% of brands sit around a point that might be labelled
weakly positive”
MillwardBrown, 2015
Nearly half of those who described themselves as highly
loyal to a brand, were no longer loyal a year later
NPDGroup
1 in 4 customers would switch to a different provider on
the basis of a single negative experience
Thunderhead
Target Group Chatter
N=5,000 Youth (18-35yo) 380k conversations per month
Brand 1.2%0.02%0.006%
STATSIT
If this is the the relative relevance of food and
beverage, then how about other categories…
F&BComp
At the same time, this is what the usual brand message looks like…
Promotional Discount driven No story 1 - way
Our brand is not really that important in our customer’s life. People tend to change their minds all the time. In order to become more relevant, our brand needs to consistently
aspire to connect with relevant people’s values and
lifestyle. Embrace that our brand can inspire, but has no
real control. The best marketing sells with stories
[Our Brand’s Social Media Mantra]
462
336292
188
112
26 24 21 20 4
22 21 22 19 27 19 22 18 8 16
Market Capitalization (bln USD in Dec 2013)
Average Influence Score of Followers (2013)
• Intel had the highest Influence Score for its followers, but the company size is dwarfed by Apple and Google. STATSIT’s further research revealed that it is not just Influence, but People and Energy that play a significant role in the community of a successful brand
Source: Yahoo and STATSIT, SocialWorks method: N=3,000
Upon investigating commercially and socially successful brand communities, we identified their common characteristics
People Energy Influence
Introducing SocialEcho – a systematic way to evaluate the
brand’s social efforts towards building a 2-way marketing ecosystem
SocialEcho
SocialEcho looks not only at engagement, channel performance
and what content works, but most importantly the kind of rapportthe brand content creates if it’s impactful
Reach is important, but can be bought
A significant decrease in organic reach is not a punishment of the gods of social media, but a message that people want
better content
While most discussions are about products, positive
emotional connection appears to be the key component
in the ecosystem evolving from
1-way (brand leading) to 2-way (consumer leading)
But before being able to engineer the right Energy, we have
to understand what drives the audience within their environment
STATSIT, N=10,000 parents in Indonesia, any topic, text mining. One month’s data.
19%
5%4% 4% 3% 3% 3% 3%
2% 2%
Gasoline Car Books Motorbike House Qurban Child Tickets Food Insurance
Mostly emotional
Mostly functional
2
2
3
7
9
10
17
25
26
29
32
34
36
70
94
Look: Litter
Look: Package
Feel
Liquid absorbation
Flushability
Dust creation
Stacking
Clumpability
Change interval
Price
Disposal / Recycling
Acceptance and suitability
Transport, Storage, Weight
Material
Odor
… if key decision factors can be extracted from a cat litter
category’s conversations, it is likely possible for you
STATSIT’s SocialWorks, manual coding N=674
After the audience and category has been examined, it’s time to engage.
In order to expect engagement and affinity from your customer, one has to contribute first – as in the example of eBay.
“eBay found that by empowering group buying on social
media for gifts, their customers are four times more likely to finish the purchase than otherwise.”
… engaging appropriately with your audience pays back even if you’re not in eCommerce
STATSIT found there was a 39 times greater likelihood that a brand advocate will continue advocating,
if a global technology manufacturer reacted to
a branded tweet
VS
This is what 80% of the social conversations for a
brand sponsorship campaign looked like. It did not achieve a significant
sales effect
… And this kind of conversation drives
relevance and brand equity
If you’re NOT focusing on generating the right kind of Energy, the campaign can have difficulties achieving the
desired sales effect
Formats change, but the fundamentals of marketing are the same.
Great storytelling sells. Video is currently the strongest format for organic reach. It’s evolving quickly into short videos/animations (think GIF and iPhone live photos), augmented
reality and virtual reality
“To the companies and boards who are winding down the marketing function whilst ramping up the digital and data units….I say be careful. You are confusing marketing with tools, channels and feedback loops.”
David WheldonChief Marketing Officer
Start listening
Platform and
content strategy
Establish brand
presence
Engage with
existing customers
Curate existing
UGC
Integrate media with
curated UGC
1st integrated campaign
Measure ongoing social efforts
Always-on strategy
Advocacy program
Curate other
content
Influencer program
Become a brand-
publisher
Right:
Audience
Message
Channel
Time
Brand’s Social Journey
…
from KPIs to ROI
Playing snakes and ladders won’t work.
There are several cost-effective strategies that deliver great value
a. Engaging with customers is cheaper than producing contentb. Curating content is cheaper than producing contentc. An advocacy program is cheaper than an influencer program
Attracting influencers organically takes place as it does with other consumer experiences – they are drawn to dedicated
communities, great products and services.
However, brand advocates should be systematically rewarded for spreading the word
Content Sharing and Engagement = $$$ of social
STATSIT found that inviting 33 influencers to a sponsored event
delivered 16x more engagement for H&M than the brand’s own branded social channels
While non-communal users are important, the
Communal users (Autocrats, Fans) are the real drivers
of the 2-way eco-system and help to increase brand
Influence
Fan – a behavior advocating a brand with conviction
Product update by Chobani saying they are not delivering upon the original brand promise of 0% fat, but its a range from 0.25% - 0.5%
Seems caring and honest
This could attract a mixed reaction...
Here is what can happen when you have a healthy brand community with ample Fans
Instead…Consumer1 posts a
R&D idea
Brand acknowledges feedback
Consumer1 explains more
A Ranter steps in to stir the mood
Consumer1 provides more evidence on idea
Consumer1 explains idea further…
Ranter doesn't stop…
Consumer1 seems irritated, explains more politely. By now has given a lot of detail
Consumer2 offers an alternative
Consumer3 acknowledges Consumer1’s idea
The Ranter keeps on Ranting
Consumer4 acknowledges Chobani as a brand and products
1. Evaluate your current strategy by People, Energy and Influence. It’s likely that Energy will need the biggest focus
2. Engage with your audience in real conversations. Don’t be afraid of your own customers
3. Consistently attract and incentivise Fan behavior
4. Find smart ways to curate user-generated content; almost everyone’s activity levels can be significantly higher
5. Be ready to respond within the first 8 hours of a crisis in branded social channels in order to derive cost savings from crisis management and digital
6. Find out your audience’s emotional, rational and key decision making drivers for producing great content
6 things you can do now to get better results in social
Step 1: 12 leading F&B brands in Indonesia were chosen
Step 2: Although all relevant social platforms were observed, Twitter and Facebook
proved to be the most universally active for brands, and thus were of primary focus. By default the most recently published data was used, gathered prior to August 2015
Step 3: N=2,400 consumer conversations were manually classified using STATSIT’s
SocialWorks method (N=200 per brand). Messages from the brand were not included
People Energy Influence SocialEcho
AQUA beats other F&B brands with a slight margin in the
SocialEcho score, but reaches only half of its potential
15.5
15.4
15.2
11.8
9.8
9.6
8.6
8.4
6.5
5.8
5.2
4.9
AQUA
Indomie
Coca-Cola
Snickers
Bango
Mizone
Wall's
Buavita
Nissin
Enfamil
Frisian Flag
Koko Krunch
max 30
F&B industry average
Every brand has their weaknesses and strengths
6.6
6.1
5.4
5.4
3.4
3.2
2
1.7
0.5
0.5
0.2
0.1
Coca-Cola
Indomie
Aqua
Mizone
Nissin
Wall's
Bango
Buavita
Enfamil
Snickers
Koko Krunch
Frisian Flag
6.1
4.7
4.4
3.6
3.2
3.1
3.1
2.9
2.6
2.6
2.1
0.7
Snickers
Coca-Cola
Bango
Indomie
Koko Krunch
Wall's
Aqua
Buavita
Frisian Flag
Enfamil
Mizone
Nissin
6.9
5.7
5.2
3.9
3.8
3.4
2.7
2.4
2.4
2.2
2.2
1.6
Aqua
Indomie
Snickers
Coca-Cola
Buavita
Bango
Enfamil
Nissin
Frisian Flag
Wall's
Mizone
Koko Krunch
People InfluenceEnergy
max 10 max 10 max 10
F&B industry average
F&B industry average
F&B industry average
Facebook is more communal than Twitter
• The conversations were strongly brand- (not audience) driven• Only Coca-Cola and Koko showed a significant amount of independent, communal activity
N=1284
0% 2% 2% 3%4%
5% 6% 7% 7%9%
14%16%
Wall's Nissin Indomie Snickers Buavita Bango Frisian Flag Enfamil Aqua Mizone Coca-Cola Koko
% of communal behavior
Few brands actually trying to drive community rapport
• The dominance of brands (not audience) was even more overwhelming onTwitter than it was on Facebook• The only small exceptions to this were Aqua, Coca-Cola and Bango – all within the best placed in the
complete ranking
0% 0% 0% 0% 0% 0% 0% 0% 0%1%
2%
5%
Enfamil Mizone Nissin Buavita Indomie Wall's Snickers Frisian Flag Koko Coca-Cola Aqua Bango
N=1116
% of communal behavior
Mizone the most brand- and lifestyle-driven
N=1284
71%
12%
64%
98%
59%65% 68%
64%71%
95%
58%
32%
29%
88%
36%
2%
41%35% 32%
36%29%
15%
42%
68%
Enfamil Mizone Aqua Coca-Cola Nissin Buavita Indomie Wall's Snickers Frisian Flag Bango Koko
Brand Product
Different platforms need a slightly different approach
N=111630%
4%
39%
8%
69% 71%
20%
93%
46%
82%87%
100%
56%
93%
61%
92%
31% 29%
80%
7%
54%
18%13%
Enfamil Mizone Aqua Coca-Cola Nissin Buavita Indomie Wall's Snickers Frisian Flag Bango Koko
Product Brand
Type
FA
Fans advocate
brand with conviction and show a level of affinity
Type
RA
Rantersshare
experiences driven by
impulse and emotion
Type
RE
Reactorsreact upon messages
without much
conviction or emotion
Type
DE
Deal Hunters seek for the best offers,
discounts and
competitions
Type
AU
Autocratsuse brand words as their lingo
The social fabric of archetypes
Communal and loyal
Communal and positive
Communal and negative
Not communal, silent majority
Not communal, ego driven
• Indomie benefits from widespread popularity in the country for years, but their social content can be greatly improved to capitalise on that phenomena
• The share of fans and a good SocialEcho score seemed to be connected, but outliers, like Coke with 4% on Twitter, occurred as well
52%
34%
34%
32%
20%
15%
11%
8%
6%
5%
4%
2%
Indomie
Aqua
Bango
Buavita
Coca-Cola
Wall's
Mizone
Frisian Flag
Koko
Snickers
Nissin
Enfamil
Share of Fan Behaviour
N=1186
38%
26%
18%
18%
11%
7%
4%
4%
3%
2%
0%
0%
Snickers
Indomie
Aqua
Buavita
Frisian Flag
Bango
Coca-Cola
Nissin
Mizone
Wall's
Enfamil
Koko
N=1284
3.1
6.9
5.4
max 10
15.5Max 30
RE69%
FA18% DE
1%
Best score for friends/followers in People
2x bigger share of Fans than Twitter
- People: reach FB 2mil+, Twitter reach of 250,665- Energy: great variety of content, frequent videos (17%), but brand not conversing- Influence: best influence from observed brands, avg Twitter follower’s followers 124,000
Opportunities:- Real brand engagement with Fans is almost missing- Utilise brand’s social projects in content, to gain longer term effect of branding- Utilise existing customer UGC to personalise the brand image- Consider increasing post frequency to increase engagement (currently 0.5 per day)
4.7
3.9
6.6
max 10
15.2Max 30
- People: significant reach, FB at 2mil+, Twitter at 202,980- Energy: Coke ID campaign generates authentic consumer-generated conversations- Energy: Coke engages itself casually, creating a positive associations
Opportunities:- Increase frequency -> start curating and amplifying consumer generated content- Develop ways for Fans to become part of something more meaningful
RE89%
FA4%
20% more effective in likes / favourites. 75% less effective in generating Energy
Driver of People score
What did we learn while doing this?
ü Having talked to dozens of brand managers, it is clear that the industry needs one simple, yet comprehensive metric to measure a brand’s social efforts vs competitors, across all channels
ü Most brand marketers still struggle with showing value. We believe too much emphasis is put on reach and general engagement, rather than creating the right Energy (like the most
commercially successful brands do)
ü Social is continuously changing, thus SocialEcho is far more developed in 2016 and will continue to evolve
People InfluenceEnergy
SocialEcho with actionable recommendations
Over 30 metrics about location, timing, emotion, network reach, share of fans and more
Recommendations
Analysis
Mismatch of audienceOptimal message timing
Channel priorityAudience interests
Engaging content examplesBalance of topics
Engagement opportunities
Emotional toneBalance of product vs other topics
Posting frequencyBest case content examples
Influencers to work withPartners to work with