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Online Reputation: Get ready for war

Online reputation (or e-reputation) is a 2010 buzzword but this is a serious subject to handle.
This presentation is here to help marketing and communication executives to better understand how the digital world is working and the consequences for their brands.
It also give some key to handle your digital strategy.

Online Reputation: Get ready for war

  1. Online reputationThe art of war - 2011January 2011Gregory Pouy@gregfromparis
  2. YEAH !Online reputation wasthe buzzword of 2010 …
  3. But that’s a problem.
  4. (Online) reputation is not a buzz word.It’s a hardcore reality.
  5. …then what are wetalking about ?
  6. OMG !The Media Worldhas shifted.OK there are tons of statistics about the web and more specifically theSocial Web.I’m sure you’ve seen your share,, but you’re still not convinced.Here’s just one fact : according to a Forrester study from December2010, Americans spend as many hours online as they do in front oftheir TVs (give or take 13 hours/week).
  7. Wait…you’re not in the U.S. ?
  8. Don’t worry, the situation is or will be thesame in your country, too. Soon. Number  of  friends   Internet   Have  a     people  stay  in   Penetra)on   social  profile   contact  with  on  SM   80%   58,1%   53   USA   40%   74,5%   74   BRAZIL   43%   79,3%   47   RUSSIA   36%   68,4%   50   CHINA   65%   53,2%   40   FRANCE  I should point out that these figures are based on people that connect to the web at least onceevery 2 days For more international statistics check out this presentation
  9. It used to be easy… For years, marketers assumed that consumers started with a large number of potential brands in mind and methodically winnowed their choices until they’d decided which one to buy. After purchase, their relationship with the brand typically focused on the use of the product or the service, itself. Source : CDJ Mc Kinsey Study
  10. …but brand relationships have changed.Consider & buy Evaluate & Advocate BondMarketers often New types of media have madeoveremphasize the the “evaluate” and “advocate” If a consumers’ bond with a“consider” and “buy” stages stages increasingly relevant. brand is strong enough, theyof the journey, allocating 70 Marketing investments that help repurchase without cyclingto 90% of resources to consumers navigate the evaluation process and spread through the earlier decisionbuilding awareness through word of mouth can be as stagesadvertising, and encouraging important as building awarenessbuying through promotions. and driving purchases. Source : CDJ Mc Kinsey Study
  11. “Nowadays, more than 60% of consumers of facial skin care products worldwide do online research about them after purchase.” Do you work on this touchpoint at your company ? Source : CDJ Mc Kinsey Study
  12. What are some consequences ?
  13. F***!“You’re spending your moneyin all the wrong places.”David.C.Edelman – coleader of McKinsey’s Global Digital Marketing Strategy.Management still focuses on “working media spend” - the portionof a marketing budget devoted to what is known today as paidmedia – which doesn’t make sense unless you consider owned andearned media, as well.i.e. : A VIRAL VIDEO IS WORTHLESS if the product gets badreviews, or worse -- if no one is talking about it.
  14. I’m sure you get the point, but
  15. 90% of digital budgets arestill allocated to websites.(When only 1 out of 10 consumers visitcompany sites to get information)Source : CDJ Mc Kinsey Study concerning electronics goods
  16. So maybe you don’t?…
  17. This presentation is here tohelp you.
  18. The rule of branding havechanged.Your online reputation is defined by all (visible) content available about your company, itsproducts/services, employees, partners, affiliates, clients and suppliers.Earned media (be it negative, neutral or positive) is more trusted by consumers/candidates/partners by far, meaning it is important to monitor what is being said on the web and to work onthese touchpoints.Your online reputation has to be built over a long term process and not a one-shot campaignstrategy.
  19. How can you manageyour online presence ?
  20. #1 Understand your online reputation# 2 Organize yourself internally# 3 Work on the basics# 4 Evaluate the type company you’re in# 5 Get Prepared for War#6 What about R.O.I. ?
  21. #1 Understand your online reputation Conversations evolve within a global ecosystem In-house Platform(s) Dedicated spaces on third party platforms Third party sites In-house platform(s) : company website, corporate blog, webTV… Dedidated space(s) : Facebook page, YoutubecChannel… Third Party sites : Forums, blogs, third-party Facebook pages… The idea IS NOT to bring everybody back to the corporate website (even if your site represents 90% of your digital activity so far –- I thought so…) but to create and manage conversations within these 3 different types of “spaces”.
  22. Hold on…
  23. #1 Understand it Don’t run into Facebook, Twitter or any other shiny objects You have to understand that above all Social Media ≠ Facebook + Twitter only In 2011, THE WEB IS SOCIAL and discussions are taking place everywhere. Never ever decide to put your company on Facebook just because “you have to be on Facebook”. A strategy based on social media tools is the quickest path to failure.. or at least to disappointment.
  24. #1 Understand it Understand your consumer’s decision journey Analyze and understand how your customers make decisions in order to determine which touchpoints are priorities and how to leverage them. You might be surprised.
  25. #1 Understand it Understand your consumer’s decision journey One of McKinsey’s clients, after discovering that consumers often eliminated them from their decision set, set out to find out why. They studied consumers actively searching for a TV and found : ✚  Off-line channels are only influential in the “consider” phase ✚  During the evaluation stage, people use search engines much less than Amazon and other retail sites that show consumer reviews and allow product comparisons ✚  Display ads are only relevant if they include a promotional offer – and only when consumers are already ready to buy ✚  1/10 consumers visit the brand’s website ✚  Consumers have strong relationships with several brands after purchase ✚  Consumers often talk about and rate their purchases after the fact ✚  Consumers tend to turn to review sites for troubleshooting advice 

  26. #1 Understand it 6 types of content to work on Credibility 4 5 6 Offline content 2 3 1 Accuracy 1.  Content created and controlled by the brand on its website 2.  UGC content (User Generated Content) controlled to a certain extent by the brand on its website 3.  Content created and controlled by the brand on sites other than its own site 4.  UGC Content controlled by the brand on sites other than its own site 5.  UGC content 6.  Media content
  27. #1 Understand it#2 Organize your company internally# 3 Work on the basics# 4 Evaluate the type company you’re in# 5 Get Prepared for War#6 What about R.O.I. ?
  28. #2 Organize your company internally It’s not (just) about marketing ! During McKinsey’s study, a consumer marketer realized that every new product requires a company to create more than 160 pieces of content involving more than 20 different departments and reaching 30 different touch points…without even counting other departments like HR. Marketing Human Customer & commun Retail Legal Others… Resources services -ications An organization with a customer-centric approach is a huge challenge to create. Someone (usually a CMO) has to have a complete view of all customers touchpoints in order to provide a coherent customer experience. This should be done at an international level (meaning every country uses the same tools in the same way).
  29. #1 Understand it# 2 Organize yourself internally#3 Work on the basics# 4 Evaluate the type company you’re in# 5 Get Prepared for War#6 What about R.O.I. ?
  30. #3 Work on the basics. Ensure the visibility of your “in-house” platform (s) local website local website website local Mobile website Application Dedicated spaces on third party platforms Third parties Domain name Strategy is key : Alphabetic (russian, arab..); Geographic (extension), Sector (.mobi, .travel….); Linguistic (accent); Typographic (mcrosoft, mikrosoft…); product universe (Iphone 5, 6…10) SEF & SEO SEF (Search Engine Friendly) make sure that the structure of your website is optimized for search engines SEO (Search Engine Optimization): make sure to refresh content on a regular basis and have a netlinking strategy (an abundance of incoming links)
  31. #3 Work on the basics. TIPS ! A Social Media Center can help Definition: A social space within the brand’s website that collects social media conversations about the brand. Advantages : ✚  It shows the openness and richness of the brand. ✚  It generates indexing content and positions the website on keywords related to the brand. ✚  It stimulates search engine spiders with fresh content ✚  Be careful when allowing UGC content. Both positive and negative content can show up if you aren’t monitoring properly. Example H&M (http://www.hm.com/fr/socialmediaroom__socialMediaRoom.nhtml)
  32. #3 Work on the basics. Begin your S.M.O. strategy with content you already have In-house Platform Flickr Youtube Third parties Wikipedia SMO (Social Media Optimization) Allows people to find your brand in other places (Flickr for photos, Youtube for videos, or any local platforms) when surfing the web. This also offers the chance to discover another side of the brand and to avoid “squatted” or “irrelevant” UGC or competitor-created content. On Wikipedia make sure the existing definition is precise and improve it (if necessary) while respecting Wikipedia’s rules. You might also want to check the online presence of your managers, products/services.
  33. #1 Understand it# 2 Organize yourself internally# 3 Work on the basics#4 Evaluate your brand’s “personality”# 5 Get Prepared for War#6 What about R.O.I. ?
  34. #4 Evaluate your brand’s “personality” #1 “Basic” #2 Functional #3 Exciting #4 Vital Source : Synthesio’s presentation At Monitoring Social Media Conference 2010
  35. #4 Evaluate the type ofcompany you’re in. If you don’t know which type of brand you have, YOU ARE an online mapping can HERE help (even if you thought you knew) A mapping is a snapshot of your brand online. It allows you to understand where your brand is talked about online, how (sentiment), and how much. This is an ESSENTIAL for going digital.
  36. #4 Evaluate the type ofcompany you’re in. An in-depth analysis of your brand’s statistics can also be helpful When analyzed with the purpose of feeding your communication strategy, statistics (for example, how people arrive at your website..) can lead to important insights that can help your creative team.
  37. #4 Evaluate the type ofcompany you’re in. “Basic” Brand Very Weak Medium Strong Strong Volume of conversations Sentiment Presence on social media Number of comments A “Basic” brand typically means products/services for which people don’t usually talk about, mostly because there isn’t much to say. A basic brand can do or create funny or useful content to set itself apart. Surprise consumers, differentiating yourself easily from the market.
  38. #4 Evaluate the type ofcompany you’re in. Basic Brand Blendtec is a famous basic brand. Blenders are basic, inexpensive and easy to use. It’s not the kind of product you spend hours talking about, and Blendtec managers know that. They created a web series called “Will it blend ?” where they successfully surf on trends (Ipad, Old Spice Actor…). They now have 58 000 + fans on Facebook and are most certainly the most discussed blender brand.
  39. #4 Evaluate the type of company you’re in. Functional Brand Very Weak Medium Strong Strong Volume of conversations Sentiment Presence on social media Number of comments Most brands are functional (even if they dream of being something else). People mention functional brands at length online because people have questions about how their products or services work The brand should engage and answer wherever discussions are taking place (and not expect the consumer to use the funnel the brand decided (from CRM to SRM). Engaging through social media should help decreasi the others funnels (R.O.I) > meaning increased satisfaction, marketing insights (an advantage of digital information) and decreased customer service costs.
  40. #4 Evaluate the type of company you’re in. Functional Brand “People are going to shop with companies they think really care”. ” Brian.J. Dunn – Best Buy CEO You don’t have to go “above and beyond” – people are just looking for answers to their questions – be quick, short and relevant. Twelpforce is an efficient customer service on Twitter because Best Buy succeeded in uniting all of their specialists of all of their products in one place.
  41. #4 Evaluate the type of company you’re in. Functional Brand “Websites influence more than 50% of our in- store sales, and about 30% of customers ordering online opt to pick up their purchases in a store.” Brian.J. Dunn – Best Buy CEO
  42. #4 Evaluate the type of company you’re in. Exciting Brand Very Weak Medium Strong Strong Volume of conversations Sentiment Presence on social media Number of comments Exciting brands have self-made fans on Facebook and around the web that talk about them. A lot. (Nike, adidas, Apple, Sony…). They’re the kinds of brands that are always in speakers’ presentations because what they’re doing seems inspirational. Unfortunately, not many brands are quite as exciting… These brands should focus on regularly creating top-notch content so that enthusiasts can dig in and enjoy. To determine the R.O.I. for this type of brand, the best is to compare the “buzz” around each campaign and make sure that the volume of conversations is growing (and that sentiment is improving).
  43. #4 Evaluate the type ofcompany you’re in. Exciting Brand Harley Davidson is a unique brand followed by diehard enthusiasts (how many other brands have been tattooed like this ?) yet they don’t have to work as hard as other brands online. Rain or shine, their fans will follow. TIPS ! Encouraging REAL LIFE meetings can foster community feelings and behavior
  44. #4 Evaluate the type of company you’re in. Vital Brand Very Weak Medium Strong Strong Number of conversations Sentiment Presence in social media Number of comment There are some brands that affect people in a very direct manner (health, the environment…). These brands should listen carefully to what people are saying to discover meaningful insights. The second stage of “attack” is identifying sympathetic ears that can serve as “force multipliers” (opinion leaders like journalist or bloggers are an example) in the case of a crisis, when internal specialists’ opinions will fall on deaf ears.
  45. #4 Evaluate the type of company you’re in. TIPS ! #1 basic #2 Functional Whichever type of brand yours may be : ✚  Start small but think big (and long term) ✚  Monitor online conversations and respond (to questions, negative comments, extremely positive comments) with a community manager ✚  Accept that you might not know what your best strategy is (between us : no one does really…but I won’t tell) – #3 Exciting #4 Sensitive but you have to test, even if your boss wants immediate results ✚  Don’t box your brand into just one type
  46. #4 Evaluate the type of company you’re in. Your objective is to be present and monitor every conversation taking place right now local website local website website Mobile Community App site FB YT Wikipedia Slideshare Twitter Local Platforms Flickr Forums Twitter Tumblr FB Wikipedia Linkedin Blogs Don’t try to be on every single platform (this schema is just one Online example). Maximize conversations and monitor them. press In-house Platform(s) You have to choose the tools that best suit your customers’ behavior and assign a role to each platform. Dedicated spaces on thid party platform(s) The goal is to create a coherent experience for Internet users throughout the web. Third Party sites
  47. Wondering if traditional marketingactivities are irrelevant ?
  48. Wrong!“The social web makes iturgent that companies getthe basics right”Patrick Barwise, Marketing Professor – London Business SchoolThe social web is NOT REINVENTING MARKETING or your brand.On the contrary, you have to go back to the basics. You can’t hidebehind advertising anymore (Wikileaks will make sure of that for somecompanies). DO :✚  Offer and communicate a clear, relevant customer promise✚  Build trust by delivering on that promise✚  Drive market share by continually improving on that promise✚  Gain an edge by innovating in your market
  49. #1 Understand it# 2 Organize yourself internally# 3 Work on the basics# 4 Evaluate the type company you’re in#5 Get ready for “war”#6 What’s about R.O.I. ?
  50. #5 Get ready for “war” “Today anyone armed with a hundred dollar digital camera and an internet connection is a potential Spielberg or Riefenstahl.” Two military scholars – Bullets and blogs
  51. #5 Get prepared for “war” Hold on !
  52. #5 Get prepared for “war” Can a real crisis really occur on the social web ? There are different kind of crises that can arise online. The most common are communication crises that can cause short-term damage but won’t mean the end of your company (i.e. they won’t impact sales or stock rates). However, certain crisis can directly effect your core business and products. Beware of these types of crises
  53. #5 Get prepared for “war” What happened in Vegas won’t stay in Vegas anymore. Even more than ever with the rise of Wikileaks, online crises are a future certainty It’s impossible in 2011 to present “online reputation” without talking about Wikileaks. The winds they are a-changing… From now on, everything that concerns your company (particulary non-ethical matters, as well as the interactions with employees, partners, competitors, and consumers) risks to be exposed. Businesses will have to change, and so will your ways of communicating.
  54. #5 Get prepared for “war” The Bank of America already lost 3% of its value. On a rumor. Wikileaks announced that a bank will be targeted in January 2011. Just the simple rumor that it might be the Bank of America caused it to lose 3% of its current value. This is just a foreshadowing of the consequences that Wikileaks may have on brand reputations and their values. This can also help to understand how companies may have to allocate their communication budgets differently.
  55. #5 Get prepared for “war” How can you fight back ?
  56. #5 Get prepared for “war” New media can be your friend. Attacking is the best defense : Begin by defining all sensitive subjects that concern your company. Identifying and listening to weak signals on the social web can help you to determine whether you need to change company policies or develop corporate communications for a particular subject before a crisis occurs. Use the Social Web : There are two sides to the social web : threats and opportunities. When used properly (and ethically), the social web can provide advantages. A YouTube video can be much more effective than a formal press release. People may be surprised to see a corporate executive on YouTube, but that can become a story in itself (Eurostar, Domino’s Pizza, Chevrolet…).
  57. #5 Get prepared for “war” New media can be your friend “Managers may hesitate to engage with (social) media but if you fail to adapt to and use your adversaries’ best tactics, you cede on the field of battle.” Leslie Gaines- Ross – Chief Reputation Strategist at Weber Shandwick.
  58. #5 Get prepared for “war” Find sympathic third parties. Force Multipliers: You certainly have in-house experts but in the case of a crisis they’ll be the last people consumers will trust. Develop a network of independent third parties willing to take your side. Bloggers, journalists, and forum administrators can help you maintain a positive or (at least) neutral position. You may not have as many diehard enthusiasts like Harley Davidson, but if you provide reasonable arguments, you might find some. Develop long-term relationships with a small number of well-targeted bloggers chosen with an online influencer mapping.
  59. #5 Get prepared for “war” Respond quickly Quickly doesn’t mean poorly The web is real-time thanks to social media tools like Twitter. The majority of companies are not. By the time a board or team of directors has decided to react, the damage has usually already started to spread. Monitor (I can’t stress that enough) to identify weak signals as soon as they arise. Train someone to answer quickly and efficiently. Find internal shortcuts for validating answers more quickly (a response chart can help) and understanding the social web.
  60. #5 Get prepared for “war” Avoid any show of force The “David vs Goliath” law rules the web A typical company’s reaction to an online attack has been a juridical approach or show of force. Neither has ever been a good idea. A juridical approach is lengthy and cannot reflect on your company as well as a reasonable and humane approach -- even if you’re in the right. People don’t care who leaked the information, they just want your company to be responsible. If your company is in the wrong, apologize, reform, and show that you are addressing properly the problem.
  61. #5 Get prepared for “war” Empower your team People talk with people People don’t want to hear the rose-colored version from a top executive. They want to talk with a real employee. Empower your employees to express themselves. You might be surprised what amazing stories they’ve got. N.B. Your employees can also be a great resource in the case of a social media crisis. If you give them the tools, guidelines, and opportunity to represent the company at all times (at the office and at home) they can be a great resource, period.
  62. #5 Get prepared for “war” Treat your team well. You are only as strong as your weakest link Make sure that your employees are happy at work. Employees are the most influential people for your company and could be your greatest threat. If we go back to Wikileaks, they could be the ones doing the “leaking”.
  63. #5 Get prepared for “war” Prepare your company ! You’re next Ok, maybe you’re not but you should act as if you are What if Wikileaks effects your company ? Identify vulnerable subjects, improve them, plan for the worst, and develop plans for action. This isn’t just about communications ; this is about the entire board.
  64. #5 Get prepared for “war” TIPS ! Sadly enough, a crisis is (often) THE reason for CEOs to dive into the social web. OK, this isn’t a tip but if you look at the companies that are now admired for their social web strategies, you’ll discover that almost all of them have suffered crises (Dell, Comcast, Starbucks..) An argument to help you convince your CEO?..maybe not. Check out the Social Media Screw- up presentation
  65. #1 Understand it# 2 Organize yourself internally# 3 Work on the basics# 4 Evaluate the type company you’re in# 5 Get Prepared for WarWhat about R.O.I. ?
  66. What about R.O.I. ?Who cares ?The Social Web is cool !
  67. What about R.O.I. ?OK… your boss seems like hemight care(or maybe the accountant?)
  68. What about R.O.I. ?“How are you going to monetize this” I think is the wrongquestion.The right question is “How am I going to deepen myrelationships with my customers and employees.”Brian.J. Dunn – Best Buy CEO
  69. What about R.O.I. ?Whoever he is,that dude still looks prettyskeptical.
  70. What about R.O.I. ?Focus on the right objective for yourcompany’s profile Directly Financial # 1 Financial # 2 Risk Management Perspective Is your brand better Did your actions help prepared to respond increase sales ? to attacks? (how much would it cost if not ?) Short term Long term # 3 Digital Perspective # 4 Brand perspective Has your brand Has your brand’s enhanced its digital relationship with its presence? customers improved ? Undirectly Financial Forrester report – The ROI of Social Media Marketing – july 2010
  71. What about R.O.I. ?What about R.O.N.I ?Risk Of Non Investment : it’s not whether investing 1€ will make an impact, but what willhappen if you don’t :1. Misunderstanding of customer expectations2. Missed opportunities to improve CRM3. Failure to make up for the decline in efficiency of classic advertising4. Failure to connect with generation Y and their behaviors5. Inability to manage potential crises before they begin . *… Source : Francois Guillot- Internet et opinions
  72. Key takeaways ?
  73. You need me to manage your strategy !
  74. Ok - just kidding…
  75. Back to the key takeaways !+  The media world has shifted and the Internet is no longer just an option+  Communication in the digital world is long term (short-term buzz is nice but won’t make a difference over time)+  Understand your customers’ decision journey to plan your strategy accordingly+  Understand your brand’s online presence and your company profile to determine your priorities+  Go back to the basics for corporate branding+  Prepare yourself because your brand doesn’t belong to (just) you anymore+  Be humble. We are all learning. Be curious.
  76. THANK YOUGregory Pouy I @gregfromparisgregory.pouy(at)gmail(.)com All pictures are from Ben : http://www.flickr.com/photos/h2-blog