Death by Word-of-Mouth: Socialize Your Brand NOW 2. Don’s social media poem:
A Facebook fan tweeted his friend
That he liked a good show now and then,
And to his surprise
His good friend advised:
Alterian 2010!
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3. Scary thought:
Gen Y consumers now
Generation Gap? outnumber Baby Boomers
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4. Or Technology Gap?
96% of Gen Y consumers
belong to a social network
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5. “The future is already
here. It’s just not evenly
distributed yet.”
William Gibson
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6. Strategy. Execution. Results.
84% of consumers trust the
recommendations of their friends
>70% trust online recommendations
from complete strangers
Only 5% of consumers trust advertising
Source: “Your Brand: At Risk? Or Ready for Growth?”
Alterian White Paper, 2010
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7. Death by word of mouth…
Strategy. Execution. Results.
Box office receipts down
40% the day after release!
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8. Screw up today, and the Strategy. Execution. Results.
“news” will be permanent
“You
can’t
un-Google
Yourself”
Linda Kaplan Thaler, CEO, Kaplan Thaler Group
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9. Strategy. Execution. Results.
“You can't take something bad off the Internet. That's
like trying to take pee out of a swimming pool.”
Grant Robertson, blog post, May 1, 2007
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10. Click Here to See all the Presentations
Strategy. Execution. Results.
From Alterian’s Engaging Times Summit
Lack of trust slows transactions
down and imposes frictional costs
When more trust is required, business
thrives, as obstacles are reduced
The Need for More Trust Has Boosted Business
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11. works because customers Strategy. Execution. Results.
are social animals
Bees and ants communicate new
discoveries to benefit the group
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12. Strategy. Execution. Results.
In the absence of communication
among your customers, advertising rules
But when customers talk to each other,
it’s the customer experience that counts
Now suppose you were a food
source for bees…
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13. Strategy. Execution. Results.
Customers go online to talk about brands and
their experiences with them
Do you host the conversation your customers
are having? Or does someone else?
Where is your brand’s “community?”
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14. Social media is like a cocktail party
In social media: Apply the “1-9-90 Rule”
Some of the guests initiate most discussion
1%
Others “hang on” and like to contribute
9%
Still90%
others just listen
Most people don’t talk much but they
still enjoy the party!
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15. Social Media “Engagement Pyramid”
Strategy. Execution. Results.
Curating
Producing
Commenting
Sharing
Watching
Source: Altimeter Group (Li and Owyang)
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16. How to engage social consumers Strategy. Execution. Results.
Curators: Public recognition, rating trusted advisors
Producers: Platform for VOC, recognition and ratings
Commenters: Open, friendly community, no trolls
Sharers: Tools, recognition
Watchers: Relevance, monitored content
Source: Altimeter Group (Li and Owyang)
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17. 17
Distribution of social media participants
Strategy. Execution. Results.
United
United States South Korea
Kingdom
Curating <1% <1% <1%
Producing 24.2% 52.8% 18.6%
Commenting 36.2% 74.3% 31.9%
Sharing 61.2% 62.9% 57.6%
Watching 79.8% 91.1% 77.1%
Source: Global Wave Index Wave 1, Trendstream.net, July 2009
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18. Tools for making sense of social networks
and peer-to-peer communications
Network analysis: To identify and quantify the
influencers and the influenced
Sentiment analysis: To understand conversations,
attitudes and dominant opinions in social media
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19. Click Here to See all the Presentations
From Alterian’s Engaging Times Summit Strategy. Execution. Results.
Social networks evolve by
“preferential attachment”
Preferential attachment
can create a
“cascading” effect
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20. Strategy. Execution. Results.
Cascading is inherently
unpredictable
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21. Strategy. Execution. Results.
Netscape has a
million collaborating
members
But 13% of Netscape’s
“most popular”
postings were done
by a single user
Cascading is inherently
unpredictable
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22. Strategy. Execution. Results.
Netscape has a
million collaborating
members
900,000 registered
But 13% of Netscape’s
“most popular”
users on Digg, but
postings were done one third of all
by a single user home-page
postings come from
just 30 users
Cascading is inherently
unpredictable
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23. Strategy. Execution. Results.
900,000 registered
users on Digg, but
one third of all
home-page
postings come from
Reddit’s most
just 30 users
widely read user,
Cascading is inherently Adam Fuhrer, has
millions of page
unpredictable views, including MS
Vista reviews
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24. Strategy. Execution. Results.
Reddit’s most
widely read user,
Cascading is inherently Adam Fuhrer, has
millions of page
unpredictable views, including MS
Vista reviews
Adam
Fuhrer is 12
years old!
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25. Therefore: Word of mouth is also
inherently unpredictable
Just 15% of WOM programs
show positive results!
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26. Be careful with
“WOM marketing”
Despite its customer-friendly architecture, the press
portrayed Speak Easy as sneaky and manipulative
You can’t manufacture “authentic” word of mouth
If it isn’t spontaneous, then it isn’t authentic!
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27. Taking the customer’s perspective…
…is the most critical step when it comes to
customer engagement
You have to see the world through the customer’s eyes
The customer is not interested in your stores or
your products or your people
The customer simply wants his need met
So don’t just speak your brand’s language
Engage by speaking your customer’s language
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28. Can you speak the customer’s language?
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29. Speaking the customer’s language…
…means engaging the customer as a fellow
member of the human race
And every human being is completely unique!
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30. And what about your brand advocates?
What are they actually worth?
One research study of customers separated
“spending” value and “referral” value
LTV = CSV + CRV (i.e., spending plus referrals)
Surprise: Best references aren’t
always the highest spenders!
Source: “How Valuable is Word of Mouth?” Harvard Business Review, October 2007
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31. A telecom company
CSV vs. CRV - Telecom Company
$2,500
$2,000
$1,500 Most valuable referrers
Value
CSV
$1,000 CRV
$500
$-
1 2 3 4 5 6 7 8 9 10
Most valuable spenders Customer Decile
Source: “How Valuable is Word of Mouth?” Harvard Business Review, October 2007
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32. Network
influence
DoubleClick
varies by
analyzed 6,000
Web users
individual
1,000 influencers with certain traits
Use the Web more than twice as much
“People often ask my
Pay more attention to online ads, and
advice about…”
want more relevance
“I am an expert in
But also more likely to clear their cookies
certain areas…”
regularly, as well as to fast-forward
through video commercials
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33. Within Social Networks
The only way to
succeed in a
networked world
Build and
influencers maintain a
and reputation for
connectors
are curious trustability
and
inquisitive
people.
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34. Alterian’s
“Social Engagement
Index”
100 = Average
Super Bowl 2010
Google reached ~103.5M
Top 10 account for 50%
34 (of 46) below average
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35. Calculating the Alterian
“Social Engagement Index”
Social Engagement Index (SEI) incorporates:
1. Number of social media mentions, and
2. Influence of author
∑ (N x I) i
SEIi = x 100
Average
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36. SEI changed over time
Pre-Game Game Day
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37. SEI changed over time
Post Game
Some brands showed better persistence
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38. Sentiment analysis: Making sense
of written and spoken language
Analyzing attitudinal information requires
evaluating the “valence” of words
versus
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39. Michael Jackson dies
Heath Ledger dies
Gross National Happiness Index
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40. Sentiment analysis:
“Voice of the customer” in real time
Used online searches of consumer
comments in launching Windows 7
Tapped customer search requests, along with
comments in blogs, YouTube, and Twitter, to
advertise its Lotus business software
Uses feedback from TripAdvisor, Twitter, and
Facebook to position its casino brands
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41. Why the sudden surge of negative blog
sentiment after a rain-delayed game?
Stadium officials mistakenly told hundreds of fans the game
had been canceled
But StubHub denied requests for refunds, because the game
had actually been played
Sentiment analysis tool spotted trouble brewing online
So company offered discounts and credits to affected fans
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42. Alterian’s
Social
Sentiment
Engagement
Index
(SSEI)
Super Bowl 2010
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43. Calculating the Alterian
“Social Sentiment Engagement Index”
SSEI incorporates:
1. Number of social media mentions,
2. Influence of author, and
3. Valence of sentiment (either +1 or -1)
∑ (N x I x V)i
SSEIi = x 100
Average
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44. Sentiment helps explain persistence
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45. Monitoring social media mentions
Listen for mentions of your brand (and your
competitors’ brands!)
Who is talking about the brand?
What are people saying about the brand?
Where are they talking about the brand?
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46. Monitoring social media mentions
Also, pay attention to individual customers
What pain points are being highlighted? Directed to
company at large, or a particular situation?
What is the emotion or sentiment being shared, either
negative or positive?
What information is being shared about the various
customer experience touchpoints?
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47. Handling individual problems
“Don’t bother wasting money on social media until
your organization can competently handle a
customer phone call or email.”
– John Burton, SAP Labs
To fix a service problem:
Acknowledge
Apologize
Act
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48. Handling individual problems
Monitors Twitter, blogs, and online
review sites for negative mentions
2400 stores in nine countries
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49. Twitter is WAY more than just “Twitter”
Why customers turn to Twitter
They can avoid the call center altogether
Complaints via traditional channels get lost or just
fall through the cracks
They’re not being heard or taken seriously
Twitter agents can be more objective and
empathetic
Immediate resolution to cross-departmental issues
The crowd can participate in solving customer’s
issues, providing better answers
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50. How Carphone Warehouse uses Twitter
Customer
posts on
her blog My Carphone Warehouse horror story!
Little did I know when I bought my phone from CPW
that I would enter a week-long nightmare…
Customer
then Read about my Carphone Warehouse horror story
“tweets” here: www.customerblog.co.uk
the blog
Mon, 8 Mar, 15:55
Sorry to hear about your CPW problem. Maybe I can CPW
help. Send me a direct message @CPWcares responds
to tweet
Mon, 8 Mar, 17:34
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51. How Carphone Warehouse uses Twitter
Customer
posts on
her blog My Carphone Warehouse horror story!
Little did I know when I bought my phone from CPW
that I would enter a week-long nightmare…
Customer
now writes Update: CPW comes through for me!
a positive First, I want to thank CPW for responding to my problem
blog post! so quickly and professionally. I’m very impressed that
they are taking customer service so seriously…
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52. Assign a 20-something to monitor your
brand mentions on social media sites
Analyze what your customers are saying,
and how they influence other customers
Start intercepting customer complaints
before they become complaints!
Some things you can do now
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53. Do you allow reviews on your site?
Radical idea: Everyone here should allow
customers to review products and services
The technology is inevitable
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54. And don’t forget:
People are just like big honeybees!
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55. @DonPeppers
Peppers & Rogers Group
Management consultants in
customer strategy issues
Magazines, newsletters,
research white papers
Offices and clients around the world
To subscribe to the “1to1 Weekly” email newsletter: dpeppers@1to1.com
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