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Social media - How it fits into your customer marketing and retention strategy

  1. VIPdesk Webinar Series May 11, 2010 Cover Slide Social Media: How it fits into your customer marketing and retention strategy Presented by: Geoff Nelson: Partner, Ivy Worldwide Nick White: Partner, Ivy Worldwide Webinar Host: Mary Naylor: CEO, VIPdesk View The Webinar
  2. About The Host Mary Naylor CEO VIPdesk • Mary Naylor is the CEO and Co-founder of VIPdesk • VIPdesk provides concierge-quality contact center solutions for leading global brands through a nationwide network of home-based Brand Ambassadors, Concierge, and Customer Service Representatives. • VIPdesk provides its clients Concierge, Contact Center, and Social Media support services. • VIPdesk is continually recognized through numerous awards, including the Inc. 500, Inc. 5000, NCBEA Business Ethics Award, Stevie Awards for Women in Business and Smart CEO Future 50. Confidential & Proprietary VIPdesk Information 2
  3. About The Presenters Geoff Nelson Partner Ivy Worldwide • Co-founded Ivy Worldwide in 2007 • More than 20 years of experience in brand programs, both online and offline, measurement and analysis, business development, project management, integrated communications, and much more. • Has an impeccable track record in solving complex marketing communications challenges for top tier companies. • Has worked for AMD, Leo Burnett Technology Group and Y&R • Adjunct professor at Texas State University, guest lecturer at the University of Texas at Austin on Word-of-Mouth marketing. Confidential & Proprietary VIPdesk Information 3
  4. About The Presenters Nick White Partner Ivy Worldwide • Joined Ivy Worldwide in 2008, launched Seattle office • Began his career at where he worked to bring their nationwide network of distribution centers online • Managed speech technology deployments at Conversational Computing, then worked on Spanish-language mobile phone deployments at InfoSpace • At Microsoft for five years, working first in Mobile and Embedded Devices Division and most recently in Windows Client managing social media relations and writing the most-trafficked blog at Microsoft • Double-degree graduate of University of Washington with MBA from Duke University Confidential & Proprietary VIPdesk Information 4
  5. About Ivy Worldwide •Brand Evangelist Experts - Ivy Worldwide is a word-of-mouth social media and influencer marketing agency founded in 2007 • Proven Credentials - One of the most award wining social media agencies in the world for effectiveness. Have driven lead awareness, lead generation and sales on average between 40-80% consistently • Clients include: HP, ATT, ProFlowers, Time Inc., Microsoft and many others • Offices in Austin, Seattle and Houston • They have evangelists too – Google “Ivy Worldwide” and “Buzz Corps” (former name) and see what others have to say about us
  6. About VIPdesk VIPdesk’s full suite of Brand Experience Management solutions include Virtual Concierge and Contact Center Services, Social Media Management, Experiential Programs, IVR Services and Voice of the Customer Surveying & Analytics. Global industry leaders trust VIPdesk to enhance their brands through our customer care and loyalty programs. Serving as a seamless extension of their brands, our innovative Brand Experience Management Solutions deliver memorable customer experiences, business insights and actionable intelligence that generate customer advocacy and drive business growth.
  7. Agenda • Social media—what is it and why is it important to your company? • When, where, and how to engage the right forms of word of mouth marketing • What to do and not to do when communicating with customers via social media • Successfully organizing and executing a customer-centric social media plan • And more! Confidential & Proprietary VIPdesk Information 7
  8. What is Social Media and Why Is It Important?
  9. “For And With” Is The Model "Instead of marketing at customers, our job in the digital age is to get customers working with us and for us. And you do that by working with them and for them. This is where the new marketing energy and breakthrough results are to be found." Mark Beeching Chief Creative Officer Digitas Confidential Ivy Worldwide ©2010 Ivy Worldwide
  10. Social Media Evolves 3 million blogs First Blog 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010+ There is one constant through all of this: PEOPLE Confidential Ivy Worldwide ©2010 Ivy Worldwide
  11. What is Social Media/Word-of-Mouth Marketing? Working with influencers and communities, both online and offline, to educate them on your offerings and share the company’s perspectives Creating brand ambassadors that share opinions/information, educate others and help drive brand preference Using Web 2.0 tools and on-going programs that make it easier to create and share your information virally Leveraging the network’s knowledge base to gain valuable customer, market and product insights on you and your competitors 12 Confidential Ivy Worldwide ©2010 Ivy Worldwide
  12. Why your customers are using social media Participation: Many are no longer satisfied to just consume the thoughts and opinions of professional experts - but want to be involved in the process of discussing and interacting with the news Inclusion: Many of the new forms of media that are emerging not only involve readers in the reporting and interpretation of news, but they create spaces where community springs up around the news and information being shared Suspicion of institution: Big business, government, church, and other institutions are increasingly being viewed with suspicion Customization: New media allows people to customize the information and news that they want to consume – using tools like news aggregation they can now choose specific topics that they wish to follow and control when and how they consume it Immediacy: No longer satisfied to wait for tomorrow’s paper or tonight’s news broadcast - people are increasingly following events in real time online Confidential Ivy Worldwide ©2010 Ivy Worldwide
  13. Keys to leveraging CGM via Social Media Tools 1. Monitor consumers generating content about your brand via alert or tracking program 2. Leverage your CGM community: Consider selecting one or two key individuals commenting on your brand to contribute to your marketing efforts 3. Reward participation: Let contributors know that you’re listening and that you are open to their suggestions and ideas 4. Participate in existing consumer-driven communities – Identify the most highly used destinations of CGM that matter to you and your brand and join in 5. Respond to negative commentary 6. Select the right technology to engage your customers – Video, Audio, etc. 7. Enable your audience to create content on your behalf leveraging your products and services Confidential Ivy Worldwide ©2010 Ivy Worldwide
  14. Keys to WOM/Social Media Success Content is king • Focus on community relationships – You can replace your product, but not your contacts • Use content — and products — as a means, not an end – Develop deeper consumer relationships with each interaction • Don’t create, aggregate – Consumer Generated Content is out there and you should look to help your customers create and deliver it The response is the message • Listen and learn – Extend the dialogue offline and support the community, you establish deeper relationships • Share – Social media users expect to be able to try an experience your products and be free to say anything they like • Excite – Give your consumers an experience or a chance to be part of something Customers call the shots • Leverage influential consumers and work with them to drive the buzz • Share control with influencers – Communities make firms not the other way around • Gain trust by acting human Confidential Ivy Worldwide ©2010 Ivy Worldwide
  15. When, where and how to engage the right forms of word of mouth marketing
  16. SM Touches Every Part Of The Business Product Development Service and Support Design Measurement Throughout Use and Packaging Maintenance & Distribution Go To Market Confidential Ivy Worldwide ©2010 Ivy Worldwide
  17. “Customer decision journey” 33.5% 67.5% Consumer-driven Company-driven Social Social • Advice from friends • Advertising • Searching • Presence in consumer- • Word-of-mouth driven activities • Researching Awareness Consideration Consideration Set Demand Purchase Research/Decide: Blogs, Twitter, FB, Google , friends/family Source: McKinsey Confidential Ivy Worldwide ©2010 Ivy Worldwide
  18. Whom to target? Managed Relationships Tier 1 & Tier 2 influencers Tier 1 Individuals who Influencers have the ability to Roughly 10% of the Influence their • Most Influential/ Web users create social networks Relevant Enthusiasts the consumer due to their • Bloggers generated content Level of Engagement Reach and Influence reach and/or influence viewed by the other Direct Connections 90% • Facebook, twitter Word-of-Mouth • Related Communities Marketing • Private forum members Association • Roughly 5,000-10,000 people Non - Managed Relationships • Webcasts / Chats visitors Non-Managed • Website registrants Relationships are • New or non-core target blogs the “minor leagues” • User groups to identify future • More than 5,000+ influencers Number of participants Confidential Ivy Worldwide ©2010 Ivy Worldwide
  19. Not All Influencers Are Created Equal Word-of-Mouth The Top Tier The Influencers The Buyers Framework The New Media Who are they? Top 1% of market like bloggers or Top 10% any market like forum The other 90% or any other super-engaged consumers members or your core customers consumers/buyers How many is this usually? Top 100 to 250+ Top 5000+ Rest of the World What is the type of relationship? 1 to 1 1 to Many Many to Many What do they do? Start conversations Carry and promote conversations Read and drive conversations What do they want? Why now, why you, why are you Look at this? What is your take on What should buy? What should I better? this? How does this compare? consider? Has anyone tried this? Participate in the conversation and What will they do for us? Start/Tell and deliver the story/topic Re-tell the story as their own and pass bring more people in over time it along in their way to the masses How do they see themselves? Brand/category The informed whose job it is help Buyers wanting to make the ambassadors/defenders right/smart choice What is their role? Education: Writers Evangelists: Copy & paste, with Empathy: Readers, consumers and comment buyers What role do they serve? The new media The town criers Consumers/buyers and future influencers What do I need to do to work Enfranchise them/make them part of Identify their communities& vehicles – Figure out what you want them to with them? the design/program ASAP be where they are feel? How you want them to act? Use to/for/with methodology to get Give them something worth How do I engage them? them to deliver the story/topic Use to/for/with methodology to get discussing and keep it going any way them to deliver the story/topic possible Confidential Ivy Worldwide ©2010 Ivy Worldwide
  20. How To Leverage Influencers Mktg./Adv./PR WOM channel How? Pre Focus groups (end-user) Message testing (end- LISTEN FIRST! – Then go create: Advisory boards Find and pull in closer. Connect with and user) Service testing with experts Product design (end-user) Product seeding create evangelism PR Message Development Seeding with media Pro Advertising Media CGM – made about the product Affiliate programs Prepare, empower Direct Newsletters/web pointing back to Set free – guide Web influencers and replenish Channel programs Reviews SEO/SEM Forums Videos Post Support Pages Call center Ubiquitous tech support – where customers live Find where customers are and be Up-sale End-user recommendations there – with the Re-mention evangelists Confidential Ivy Worldwide ©2010 Ivy Worldwide
  21. Customers Expect A Dialog With You • Only ask what you are willing to act on • Talk to the right people – Top 2% love you – Bottom 2% hate you, take 43% of customer service time and will never be loyal – Middle 96% are most likely to walk away – 10% are the most involved and drive the other 90% • Don’t stop talking to them just because they became a customer • Don’t wait until there is a problem • Understand their goals and objectives • Share the knowledge with everyone in the organization • Customers want to be treated like individuals – Men’s clothing store Confidential Ivy Worldwide ©2010 Ivy Worldwide
  22. Common Social Media Tools • 2.6B Facebook minutes per day • 400 Facebook Users Worldwide • Over 6 million registered users • Over 4 million Tweets per day •20 hours of video is uploaded to YouTube every minute •FourSquare just surpassed 1 million users Confidential Ivy Worldwide ©2010 Ivy Worldwide
  23. Finding the Right Tools • Use the tools your customers are using to connect with you. Because they are using the tools doesn’t always meant they want to have you there. • Can determine where your customers are via due diligence • Always pay attention to new social media channels and how the technology is connecting you and your customers • Plan for when you might use one vs. the other and when Source: Confidential Ivy Worldwide ©2010 Ivy Worldwide
  24. Know the Audience Confidential Ivy Worldwide ©2010 Ivy Worldwide
  25. The Palette of WOM Tactics WOM Experiential Strategies and Tactics Vlogs Marketing Employee Fan Advocacy Programs Sites Email Advocacy Contextual Company Fan Marketing Clubs Non-Traditional Advertising Rating Sites Advertising Search Engine Corporate Radio Ads Private Cause Marketing Blog Marketing In-Store TV Ads Social Networks Display/ Traditional Dialogue Discussion POS Influencer/VIP Boards Openness Marketing Print Ads Insider Clubs Direct Mail Tactics Brand Lifestyle Product Advergaming Word of Mouth Press Release Broadcast Community Placement Stunts/ Marketing Web Site Product Sponsorships Publicity Seeding Podcasts Virtual Mobile Wikis Marketing Affiliate Authenticity Communities Consumer Generated Programs Viral Marketing Content Customer Blogger Beta Outreach Advisory Testers Crowd Sourcing Co-Creation/ Innovation Panels User Collaboration Confidential Ivy Worldwide ©2010 Ivy Worldwide
  26. Principles of community interaction It’s about people The rules are the same for corporations and separate individuals alike However, expectations of corporations are different • Identify and use the influencers – they are your allies • Define, know and stick to the role you’ve identified for yourself • Play active role in responding to inquiries and correcting inaccuracies • Keep it personal by discussing your experience as an individual and telling your story • Give first-hand advice, perspective, anecdotes • Use phrases such as “I think…”, “It’s my feeling that…” and “In my experience…” Give back – every interaction must add value Confidential Ivy Worldwide ©2010 Ivy Worldwide
  27. Entering an existing community Find places where your customers congregate • Keep an open mind – customers may turn up in odd or unexpected places • Identify and branch into tangential communities that match strategic objectives Always leave them wanting more • This gives you an entrée to lead them back to your site • Let the community do the heavy lifting for you • Recognize champions and leverage their efforts when they align with your own • Give credit for good ideas • Link to others of like mind -- pull in others’ stories (tacit endorsement of individual as company envoy) Always respect existing norms • Listen and learn before speaking • Be judicious about entering conversation – avoid creating interference or noise Confidential Ivy Worldwide ©2010 Ivy Worldwide
  28. Keys to Successful Customer Communication • Converse with and don’t market to customers – marketing spin KILLS conversation • Be honest • Have something valuable to say – customers won’t bother to pass on information they don’t care about • Align strategies to the reasons consumers buzz – customers initiate discussions on products because they like to help their friends, find a common interest with others, or demonstrate their knowledge of a topic • Empower, but don’t expect to force, the spread of the message – the easier the marketer makes it for consumers to spread the word, the more consumers will participate • Target the right people Confidential Ivy Worldwide ©2010 Ivy Worldwide
  29. Responding to Social Media Appropriately Confidential Ivy Worldwide ©2010 Ivy Worldwide
  30. Social Customer Communication: Do’s and Don’ts
  31. How to be Antisocial in 8 Easy Steps 1. Viral equals social success – Viral is an outcome, from a good sales and marketing strategy, not the other way around ( 2. Social command and control – Social media is not about control, it is about cooperation and engagement – if you post only about you/your brand (even if it is on Facebook, YouTube, etc.), it is not social media 3. Social is the content and the campaign – Social media is about people doing what is in their best interest, not yours – Requiring people to upload content that benefits on you is a recipe for disaster ( 4. Social prostitution – The reason you want social media is authenticity sells – if you try to deceive, your audience will find out (Google: “Pay Per Post”) Confidential Ivy Worldwide ©2010 Ivy Worldwide
  32. How to be Antisocial in 8 Easy Steps 5. Social = social – Not all social media is the same just like not all marketing is the same – corporate blogs, communities or any other tactics may not be best for your social media goals (Comcast Twitter) 6. Social is PR – Social media is too big for one department – there are benefits for other departments across the board 7. Adver-social – Social media delivers results when you have Google results, third-party endorsements, CGM and real people carrying the message in unison – when its controlled and only in an ad box, you lose lower results and raise costs 8. Social is the program – Social media amplifies traditional marketing, driving up ROI across the board – by itself, it usually is sub-optimal at best (Skittles) Confidential Ivy Worldwide ©2010 Ivy Worldwide
  33. Most-often committed sins 1. Failing to be transparent: Transparency is the currency of the blogosphere – clearly disclose for who you are 2. Appearing to bribe: Don't send stuff to customers before asking them 3. Not knowing the why and what of blogging: They are not journalists (despite appearances) 4. Making a bad first step: Know the tool and what they talk about and how 5. Being scripted: SM platforms are a conversation tools and you would never recite talking points at a cocktail party – no sales pitches in emails or phone conversations just be honest and open, not stiff and predictable 6. Forgetting everything is on the record: You don't put anything in writing you wouldn't want to be online 7. Making claims that can be easily disproved: Influencers love to call BS; don’t give them a reason to do so Confidential Ivy Worldwide ©2010 Ivy Worldwide
  34. WOM Case Studies
  35. Unpronounceable Volcano When crisis strikes businesses are quickly overwhelmed – people turn to others for help and information • On April 15th, as airlines’ call centers got choked with frantic passengers, and most websites still were not updated with the latest flight delays • The term #ashtag was first used by Ireland-based Tweeter JL Pagano to note personal concerns and updates about the situation. It was very quickly adopted by a number of other travelers • However, it was only when airlines started using #ashcloud on Twitter, along with their official updates, that the utility increased significantly • Travelers were being informed of their flight status online. KLM and Lufthansa became the first major airlines to use the hashtag. It was then picked up by other airlines • 7 days - 55,000 mentions of #ashtag, and the usage was so widespread that only 5.8% of the tweets came from the Top 10 users –- which is unusual • See case study – -- search for “ashtag” Source: Confidential Ivy Worldwide ©2010 Ivy Worldwide
  36. Kryptonite’s Kryptonite • A video demonstrating how to pick these expensive bike locks with an ordinary Bic pen appeared on a blog and quickly reached hundreds of thousands of blog readers a day • When the company issued a statement downplaying the issue saying the locks “continue to present an effective deterrent to theft” the NY Times and the AP picked up the story, exposing the problem in newspapers all across the country • By the time the company announced the product exchange plan almost a week later, the “make-good” received very little coverage • Even today the story lives on: lock buyers today will find today turns up 8 negative stories about this incident in the top 10 results of a Google search for “kryptonite lock”– but no mention of the problem being corrected and affected locks having been replaced Confidential Ivy Worldwide ©2010 Ivy Worldwide
  37. Search “Ivy Worldwide” and Wholistic for Social Demand? see what the market has to say about us Proven Results - Just some of HP’s successes Product Development Launch Sales/Promotion TX-1000 Notebook Design Dv2 Back to School - On/Offline HP’s 31 Days of the Dragon • Goal: get credit for HP design/launch TX- • Goal: Drive sales during BTS and position • Product in-market for 9 months 1000 dv2 as a college must-have • Provided 31 HDX “Dragon” systems to 31 • Asked 200 bloggers/influencers to tell HP • Support overall campaign and drives sales influencers/bloggers to give away to what features they want in a notebook 1. Support HP’s NBA/dv2 microsite readers over 31 days (one per site) • Done in Ivy’s private forum (IN Network) 2. Content generation to showcase the dv2 • Sites could give them away any way they • HP used suggestions which included what 3. Make the dv2 cool and a must-have for wanted they liked and disliked with competitors students with college blogs throwing • Google 31 Days of Dragon to see for parties in a box using the dv2 to run the yourself party. Locations: LA, Chicago, NYC Results Results Results • Features suggested were used in the TX- • 47% 1st month/71% 2nd month sales • 84% sales increase HDX Dragon (m/m 2000 increase ( • Valuable insight on competitors from • 11.5+ million people saw the campaign • 20% increase in traffic to people that review 150+ systems a year (Alexa) • 10% increase in overall sales at • Influencers took credit for the HP design • 23,171 total Google back links and helped launch “the product they • 300+ content assets created • 380,000 Google links helped design” • Influencers continue to develop content • 50+ million people saw the campaign • Began real relationship of listening and a about their everyday use of the dv2 in (Alexa) true evangelization between HP and college setting • 50% increase in traffic to influencers that continues to grow influencers sites Confidential Ivy Worldwide ©2010 Ivy Worldwide
  38. Key Takeaways From Case Studies 1. Social media marketing can work in ways traditional methods can’t or won’t 2. Influencers can and will drive sales and create a viral effect 3. A holistic program such as “31 Days of the Dragon” forces competitors to become reactive to your marketing 4. The combination of social media, CGM, search results and third- party endorsement from credible sources hits consumers where and when they are making buying decisions Confidential Ivy Worldwide ©2010 Ivy Worldwide
  39. Steps To WOM/Social Media Success 1. Be ethical and transparent 2. Read WOMMA’s Ethics Code at 3. Listen to the conversations (find supporters, detractors and influencers) 4. Set goals 5. Develop a content strategy 6. Choose the WOM/social media tools that make sense for your strategy 7. Deliver the right content to the right audience 8. Engage with your customers, readers, evangelists, detractors, influencers 9. Facilitate evangelism — show you are the right company, doing the right things to earn it 10. Measure the effectiveness of the strategy and adapt Confidential Ivy Worldwide ©2010 Ivy Worldwide
  40. Questions? Confidential & Proprietary VIPdesk Information 41
  41. Upcoming VIPdesk Webinars • May 27: 5 Main Reasons to Use Work-at-Home Customer Service Reps • June 8: Integrating Social Media Into Your Contact Center • June 22: Friends, Fans and Tweeps: A Social Media Primer and What is Means to your Customers For more information or to register for the VIPdesk Webinar series, visit Confidential & Proprietary VIPdesk Information 42
  42. Connect With Us Online Website: Blog: Twitter: Facebook: LinkedIn: YouTube: Via RSS: Confidential & Proprietary VIPdesk Information 43
  43. Thank You for Attending! Geoff Nelson Nick White Partner Partner @IvyWorldwide @IvyWorldwide (512) 560-0196 (206) 650-4865 Mary Naylor CEO (703) 837-3501 Confidential & Proprietary VIPdesk Information 44