Objective is to explore the social measurement to enhance online marketing effectiveness

1. Driving Customer Intelligence
Through Social CRM
Team Mufasa
Alonso Velasquez, Ashwanth Vemulapalli, David Anna, Ishita Vayada
June 04, 2012

2. Agenda
• Executive Summary
• Social CRM Platform
• Marketing Analysis
• Business Models
• Q&A
2

3. Executive Summary
Driving tangible marketing results by better harnessing the power of Social Media is
one of the key capabilities organizations like Disney need to develop to stay ahead in
the marketplace by:
• Enhancing Disney’s existing CRM with the right Social Media data
• Using this Social CRM Solution to:
o Enhance the effectiveness of an existing business model (web property ad
revenues)
o Setup and execute a new revenue sharing business model with key strategic
partners
3

4. Social CRM platform

5. Solution & Concept Overview
Conceptually the proposed solution combines customer insights
gained from social media monitoring with internal customer
databases across all Disney business units to create a holistic
view of the customer and help generate more actionable insights
that drive business value.
This implies
– Listening to social media conversations (in real-time or mine)
– Extracting relevant content for analyzing
– Integrating social data with traditional CRM data
– Integrating multiple social data sources
5

6. The Listening Platform Process
Companies that use social data to only gauge consumer
reception to a new product launch or sentiment around a
new marketing campaign are failing to take full advantage
--- Gleansight
6

7. Value Proposition – Benefits to Functional Groups
• Improved Performance
CUSTOMER SERVICE – Faster resolution of customer problems
– Customer Support Cost Reduction
• Better Market Insights
MARKETING – Segmentation & Targeting, Improved Ad ROI
PRODUCT • Increased Success of New Products
MANAGEMENT – Quickly & Cheaply Validate New Products & Services
MARKET RESEARCH • Reduce Costs
– Cheaply, Quickly and Accurately Complete Researches
• Risk Management
PR – Customer Protect brand reputation in real-time
7

8. Value Drivers
1: Technology Sample Metrics
 Business Process Measurement
 Vendor Selection  Sales Funnel Method (For Marketing or Sales
 Data Capturing Goals)
 Brand Pyramid – For Brand Building Goals)
 Analyzing and Distilling Information
 Customer Service Cost Reduction
 Corporate Reputation
 Exposure and Engagement
 Share of Positive Discussion
2: Strategy  Comments/posts ratio
 Number of Mentions on Social media
 Generating Insights  RTs per 1,000 followers
 Distributing Findings to the Right People
4: Results
3: Action
 Measuring Results
 Taking Necessary Action
8

9. Technology Landscape
Aggregator 1
Aggregator 2
Aggregator 3
 Diverse Social Media Sites  Diverse Aggregators  Should you sign-on?
Not all Listeners are created equal
 Different Content  No Aggregator captures  Some are basic  Which Listener?
(text, photo, video, etc) everything from every  What Model
 Use keyword search (brand
 Different demographics social media site  Internal Business
name, product, service, comp
 Different use scenarios etitor, etc)
Strategy?
 Others are more advanced –
 Use computational linguistic
algorithms to break a post
down into
paragraph, sentence, gramma
9 r, tone

10. Planning a Social CRM Strategy
• Craft an Objective for deploying Social CRM
Objective • Must be measurable and aligned with specific business strategy
• Avoid building a social CRM strategy based on listening tool capability
• Determine relevant data sets
Data Sets
• Determine the source of data & how to harness it
• Select the best fitting tool(s)
Tools/Platforms based on objective and
required data sets
10

11. Important Considerations
• Consumer Privacy Regulation
Regulatory
• Disparate Legal Jurisdictions
Environment
• Do you have the right in-house expertise to generate
Technology/Expertise actionable insights from Social CRM?
• In-house support or outsourced?
• How willing are your
Customer Participation customers to share their
social media ID with you?
11

12. Solution Overview
DISNEY Open ID
Aggregator
Traditional CRM Web Properties External segmentation
Name Database (Prizm Claritas)
Address Login ID
Phone Other Info • Facebook Connect
Email * • Google
Last Purchase * • Yahoo Open Platform
Last Touch Point
*
*
Social Data
LISTENING TOOL
Facebook
 Social ID
 Social Network
 Comments Twitter
 “Likes”
 Klout Score
 etc Tumblr
MySpace
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13. The “Enhanced” Customer View
Disney Identification Unique ID
Other Social
Social Media ID Facebook Twitter Youtube
Media
Influencer Status, Network Comments,
Friends, Pos Networks, C Videos Videos
Posts, Linke Followers
Sentiments, Klout Score ts, Likes omments Watched Posted
d URLs
Mr Bob Jones
Linkedin Recent Blog Posts Disney Claritas
Disney ID Facebook ID Twitter
Network Comments “My Visit to Segmentation Segmentation
123444 BobJones @BobRocks
Amazon “ESPN Rocks” Disney Parks” Male 35-45 Winners Circle
13

14. Marketing Analysis

15. The Walt Disney Company
Operations % of total
Media networks US & Canada
Parks & resorts Europe
Studio Asia/Pacific
entertainment
Consumer
products
Media networks Consumer products Parks and resorts
A&E Television Networks (42%) Disney Publishing Worldwide Adventures by Disney
ABC Family Channel Disney Stores (retail outlets) Disney Cruise Line
ABC Television Network Euro Disney (40%)
Disney Channel Disney Village
ESPN (80%) Disneyland Paris
JETIX Europe The Walt Disney Studios Park
SOAPnet Disneyland Resort
Television broadcast stations Hong Kong Disneyland (47%)
Toon Disney Tokyo Disney Resort
Walt Disney Imagineering
Studio entertainment Walt Disney World Resort
Dimension
Disney Music Group Interactive media
Disney Theatrical Group Disney Interactive Studios
Marvel Entertainment Club Penguin (Kids social networking)
Pixar Disney Online
Touchstone Pictures
Walt Disney Pictures
15

16. Social Media Context
700+ Billion minutes spent every month.
900+ Million objects people interact with
250+ Million people engage with Facebook on external sites.
200+ Million access via a mobile device.
Average user generates 90 pieces of content every month.
100 Million+ members. 17.8 Million in groups.
1.2 million comments and posts.
1 million companies have a company page.
1 Million new members every week.
2 billion videos viewed every day.
24 hrs of video uploaded every min.
Video is uploaded in 60 days > all 3 major US networks in 60 years.
46 years of videos watched a day, on Facebook via YouTube.
200+ Million users. 40+ Billion tweets. 140 Million tweets a day.
300,000+ apps.
1,000+% growth. 500,000 accounts added, daily.
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17. Potential Collaborators
Partner Companies Engagement tools
Monitoring tools Agencies
17

18. Internal Collaborators
18

19. Competitors’ Social CRM Efforts
Social TV
GetGlue
Focus shifted from DVD to Social
Uses monitoring and engagement tools
Social TV
Adaptly
Sold MySpace
Social Networking games
True Car
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20. End Customers
Park Visitors
Disney site visitors
Television audience Disney merchandise customers Movie audiences
20

21. Segmenting the Social CRM customer
PRIZM Claritas Segmentation (from Nielsen)
• Provides consumer lifestyle segmentation
• Examples: Young Digerati, Kids & Kul-De-Sacs etc.
Provides deeper insights into customer preferences that:
• Inform Disney marketing messages & tactics
Total Target Market • Enable attracting the right advertisers & strategic partners
25,201,384
households
Total Segments:
15
The idea is to mesh the existing Disney
segmentation w/ PRIZM Claritas , layer on the
sentiment & social data and get a clear
understanding of the segments representative of
the end customer & their households
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22. Business Models

23. Model 1: Micro-Targeted Ads
Vision:
Micro target every customer that visits Disney web properties to
increase the effectiveness of ad impressions by taking into
consideration the new segmentation and their sentiment towards the
content
Business Objective:
Increase Conversion revenues on a yearly basis up to $4.4 million,
assuming our targeting improves conversions by 50%
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24. Model 1: Micro-Targeted Ads
Micro-Targeted Social CRM
Mart
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25. Model 1: Micro-Targeted Ads
Revenue Model Assumptions:
• April is a representative month for year-long web property activity
• US Households across the nation: +120M
• Conversion Rates:
• Disney ads: 0.46%
• Partner ads: 0.04%
• ECPM:
• Disney: $11.90
• Partner: $11.83
For each 1% of additional accuracy provided by Social CRM, we
estimate net revenues to rise by $88,698
A 50% increase would mean an increase of over ~$4.4M/year
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26. Model 1: Micro-Targeted Ads
Cost Model Assumptions:
Capital Expenses:
Breakeven Analysis:
Item
Custom development by Vendor
Custom development by Disney
In order to determine if this
Segmentation model updates
business model will be able to
Pricing model to ad partners updates justify 100% of the Social CRM
investment on its own, additional
lift forecasting and extensive
Yearly Fixed Expenses:
costing analysis must ensue.
Item
Licensing Fees from vendor
Support from Vendor
Support from Disney
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27. Business Model #2 Vision
Harvest partner data to enhance Social CRM
Vision:
Business Model 2 proposes to harvest customer insights gained by
partners. Vision of this idea is to create alliances with partners to
collect data that will complement Disney data to target customers
effectively. Also, it helps Disney to create a more holistic view of
customer that will help various functional groups.
27

28. Model 2: Strategic Partner Network
Setup
American
Airlines CRM
Orbitz CRM
Micro-Targeted Social
Facebook
CRM Mart Connect-based
OR custom
linking
Partner ID Fandango
CRM
Clearinghouse
28

29. Model 2: Strategic Partner Network
Scenario 1: Disney Direct Marketing Campaign
Facebook
Connect-based
OR custom
linking
Partner ID American
Micro-Targeted Social
Airlines CRM
CRM Mart Clearinghouse
29

30. Model 2: Strategic Partner Network
Scenario 2: Partner Direct Marketing Campaign
Facebook
Connect-based
OR custom
linking
Micro-
Fandango CRM Partner ID Targeted
Clearinghouse Social CRM
Mart
30

31. Business model #2: Strategic Partner Network
High-level pricing model
• Revenue sharing percentages are specific to each contract
• Negotiation criteria for revenue sharing:
o Relevance of partner data to Disney business and vice versa
o Forecasted lift on white space coverage due to partner data and vice versa
o Additional intangible benefits derived from data and vice versa
• Tiered pricing model
o Revenue sharing percentage increase with increase in volume
Considerations:
Strategic fit to make sure that complements Disney Data
31

32. Business model #2: Partner Network of
“Foodie” badges when they check in to Zagat rated restaurants.
Special badges and features for the Winter Olympics.
BART ran a promotion to give $25 promotional tickets
Follow celebrities, endorsed venues and recommendations.
Harvard Town and campus hot spots
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33. Case Study:
Key Learnings:
Not enough attention to details
Incomplete harness of social CRM
Gaps to abuse the business model
Starbucks and Foursquare Partnership:
• Oversaturation: offers specific to stores
• Difficult redemption: Timing. Not immediate use. Need to become a mayor
• No behavioral targeting: Isn’t targeted based on users’ data.
• No geo-targeting: Same offer irrespective of your home town
• Employee competition: Employees check-in the most for deal
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34. Risk Analysis
Overall Risks
• Nascent Technology
• Privacy Concerns
• Justifying investment into the platform
Business Model # 1 – Risks
• Leadership buy-in
• Lack of in-house Social CRM experience
• Segmentation Accuracy
Business Model # 2 – Risks
• Brand Reputation
• Partner Fraud
• Complex Implementation
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35. Q&A

37. APPENDIX

38. When should we consider big data
38

39. Common patterns for employing big data
39

40. Enterprise Listening Platforms
40

41. Service improvement opportunities
41

42. Seamless experience across multiple contact points
42

43. CRM Life Cycle
43

44. Engagement Process Framwork
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45. Social view
45

46. Data Intelligence Architecture
46

47. Consumer Persona - Young Digerati (Urban)
Name: Carol & James
Age: 25-44 w/ children
Income: $85,599 (Wealthy)
Media: Use: Internet user, computer, tablet & smart phone
Watch: late night & Disney channel
Read: Parenting blogs, Economist, sports news on ESPN.com
Connects: via Facebook, Pintrest, Myfamily and LinkedIn
Education: Graduate Plus
Ethnicity: White, Asian, Hispanic, Mix
Other: Plan vacations on expedia.com
Go Waterskiing
Carol shops Disney princess dresses online
Drive Audi A3
Seek richer videos online & ease of purchase given their busy
lives
47

48. Consumer Persona - Kids & Cul-de-sacs (Suburban)
Name: Janine & Henry
Age: 25 – 44 w/ children
Income: $71,926 (Upper mid)
Media: Use: Internet user, computer & smart phone
Watch: late night & Disney channel
Read: Cooking blogs, WSJ, watch sports on ESPN.com
Connect: via Facebook, Blackplanet, LinkedIn, Instagram
Education: College Graduate
Ethnicity: White, Black, Asian & Hispanic
Other: Shop at Disney store
Buy educational toys
Drive VW Routan
Homeowners
Very active and social on weekends
Henry plays fantasy basketball on ESPN.com
Janine looks for budget vacation advice online
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49. Consumer Persona – Upward Bound (Second City)
Name: Stephanie & Andy
Age: 35 – 54 w/ children
Income: $83,651 (Upscale)
Media: Use: Internet user, computer, tablet & smart phone
Watch: the N
Read: PC gamer
Connect: via Facebook, Pintrest, Google+, Fantage
Education: College Graduate
Ethnicity: White, Asian, Hispanic, Mix
Other: Homeowners
Buy toys on internet
Order from target.com
Drive Toyota Sequoia
Heavy purchasers of computers, games, action figures, board
games, dolls
Tend to be kid-obsessed
49

50. Consumer Persona – Country Squires (Town & Country)
Name: Claire & Steve
Age: 35-54 w/ children
Income: $101,507 (Upscale)
Media: Use: Internet user, computer & smart phone
Watch: pay-per-view movies
Read: Family fun
Connect: via Facebook,LinkedIn, Instagram
Education: Graduate Plus
Ethnicity: White, Asian & Mix
Other: Enjoy skiing, boating, golfing
Order from amazon.com
Drive GMC Yukon Denali
Homeowners
Very active
Steve follows golf leader boards on ESPN.com
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51. Targeting
Social CRM can enable Disney to identify the specific customer and layer on the
social insights to develop a rich persona.
Target to provide rich visual experiences to these customers, content they like
and identify the family unit
Targeted sales, support, content
http://www.socialmediaexaminer.com/what-is-social-crm/
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52. Visually Focused Sites Find Their Place
 Curation and imagery are key to the current state of social
media. Many users want to express themselves by cultivating
an online space that represents them visually.
 Brands, too, are interested in opportunities to develop their
story in a visually engaging manner. The services that help
consumers express themselves can do the same for brands.
 Facebook is helping by integrating with apps and third-party
social sites. In January 2012, Facebook announced
integrations with companies such as
Pinterest, Fab.com, LivingSocial and Goodreads.
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53. Business model #1: Hyper-Targeted Ads
A/B testing approach (before rolling out for all campaigns)
1. Choose a representative yet relatively small channel and
segment set. Example: ABC Family in one midwest city like
Cleveland.
2. Divide set into:
• A: Control group
• B: New segmentation algorithm #1 applied
• C: New segmentation algorithm #2 applied
3. Measure conversions for each set, isolate best response
4. Iterate steps 2-3 until all algorithms have been exhausted.
5. Rollout to all channels and geographies
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