Value of Social Media and Word of Mouth by David Wolff, Fleishman-Hillard

transcript

David Wolff@zapache

netherlands.fleishmanhillard.com/

The commercial opportunities of social media; think first, then act.

The unpredictable power of social media

Digital Influence Index > 1. INFLUENCIAL

> 2. RESEARCH & POSITIONING

> 3. SOCIAL NETWORKS & DECISION-MAKING

> 4. CONFIDENCE IN INFORMATION

> 5. PEER INFLUENCE VS STRANGERS

> 6. TWITTER & INFORMATION OVERLOAD

> 7. DIALOGUE VS SENDING

http://www.slideshare.net/FHamsterdam/report-digital-influence-index-netherlands

> The importance of search engines and eWOM in decision-making

> Reputation or brand image? Silos and social media..

> What is the current state of the market,

are we ready for the next step?

> The value of content and conversation

> The real value of social media

> How do you organize your social media-activities?

> Social Media Checklist

What do I want to talk about?

Reputation or brand image?

Word of Mouth is nothing new

http://www.cluetrain.com/

DIRECT

DEFINITE

VISIBLE

WOM = SUPERCHARGED!

Reviews

If it is on Wikipedia it is true..?

Google Sidewiki:

DEFINITE:

80% of all internet-users starts with a search

engine

20% of all queries are brand related

Social Media?

“Google isn’t a search engine, it’s a reputation

management system.”Clive Thompson, Wired

18SOURCE: http://sncr.org/wp-content/uploads/2008/10/customer-care-study.pdf SOURCE: http://www1.emarketer.com/Article.aspx?R=1008019

The necessity of social media for Customer Care

Quick and cheap reach?

> Quicksilver video http://www.youtube.com/watch?v=6xfBNxNds0Q

Oops…

22SOURCE: http://www.slideshare.net/socialmediainfluence/social-media-screw-ups

It can be worse: social media screw ups

“They’ve made it so easy for us. Nestle just don’t seem to have a good understanding as to what happens on the social space.“

Tracy Frauzel, head of digital communications at Greenpeace

Nestle: what went wrong?

> They should have seen it coming

> Not familiar with the dynamics of social media

> Poor community management

> No community guidelines

> Censoring of the logo, the video and the discussions that came into existence, without a policy.

> The impact of this story:– A negative case study

– A brand problem (long term)

– Criticism keeps coming

Could Nestle have been prepared? > Monitor and know your ‘opponents’ > Anticipate! > Make sure you have a platform

– Besides existing social channels, also an ‘owned’ channel

– Make sure that you are prepared for a ‘paid’ strategic solution

> Select good community managers – Training

– Take care of a clear process & policy

– ‘Take the higher road’

> Make sure you have a community-policy> Continue to stay in dialogue.

– Make smart moves towards constructive subjects.

> Compose guidelines for social media

REPUTATION

SOCIAL MEDIA

SOURCE: http://www.briansolis.com/2010/12/the-best-of-2010-hybrid-theory-and-the-future-of-marketing/

> Word of Mouth is not new, but the impact has changed

> The directness and definite visibility have influence on the decisions made by consumer

> Search engines as reputation management systems

> Search engines play a key role in decision making

> From silos to social company: it is no longer possible to communicate from your silo without interfering with other silos

> Reputation or brand image: social media is where they connect

> The market seems to be ready for the next step..

The value of Social Media

30SOURCE: http://www.communicatieonline.nl/nieuws/bericht/bedrijven-wensen-onderzoek-naar-effectiviteit-social-media/

“..we run behind , our competitor also has a

Facebook Page…”

“..we need a Twitter-strategy…”

“..we want to raise our share in the conversation…”

“..Twitter is a great sales channel…”

SOURCE: http://www.slideshare.net/mixtmedia/social-media-for-government-32309-1185070

From outside-in to inside-out

SOURCE: Social Media Piramide (© SocialMediaModellen.nl)

Start with creating value:

BRAND:

CREATE VALUABLECONTENT

ACTIVATIONOF

CONTENT

ENGAGEMENTTHROUGH CONTENT

SOURCE: http://www.theconversationprism.com/

Community management is key

SOURCE: http://nusum.wordpress.com/2010/06/14/what-makes-a-community-manager/

SOCIAL CURRENCY

The example of good content

Which creates dialogue

Brands as publishers…

Why do people share information?

– Acknowledgement

– Attention

– Respect

– Approval

– Safety

– Identity

– Sense of belonging

> SOURCE; http://www.bijgespijkerd.nl/social-media/social-media-brengt-maslow-naar-de-massa

SOURCE:http://eatsleepsocial.com/2010/06/02/the-psychology-of-social-currency/#more-307

The value of your Social currency

SOURCE: http://blog.stevesponder.com/how-valuable-is-your-social-currency

It is about content, content, content..

SOURCE: http://www.marketingcharts.com/direct/overposting-drives-away-facebook-fans-16055/exacttarget-brand-unliking-on-fb-feb11gif/

Value Exchange??

> SOURCE: http://blog.cmbinfo.com/press-center-content/bid/46920/Consumers-Engaged-Via-Social-Media-Are-More-Likely-To-Buy-Recommend

SOCIAL BRAND VALUE

SOCIAL CURRENCY

CONVERSATION

INFORMATION

AFFILIATION

IDENTITY

UTILITY

ADVOCACY

INFORMATIONHow many feel they exchange fruitful information with others?

AFFILIATIONWhat share of your users has a sense of community?

ADVOCACYHow many act as disciples and stand up for your brand?

CONVERSATIONWhat share of your brand users recognizes and stirs buzz?

IDENTITYHow many of your users can identify with other users?

UTILITYHow many derive value from interaction with other users?

SOURCE: http://www.vivaldipartners.com/pdfs/Vivaldi_Partners_Social_Currency_US_Report_2010WEB.pdf

Relation with premium pricing

SOCIAL CURRENCY

CONSUMERBRAND

BRAND LOYALTY

PREMIUM PRICING

SOCIAL CURRENCY

53% BRAND LOYALTY CAN BE EXPLAINED BY SOCIAL CURRENCY

CORRELATION 73%

SOURCE: http://www.vivaldipartners.com/pdfs/Vivaldi_Partners_Social_Currency_US_Report_2010WEB.pdf

Advocacy vs Numbers

SOURCE: http://images.fastcompany.com/magazine/145/next-44-tech-currency-infograph.jpg

Social context vs social presence

Information value vs entertainment value

Social currency for whom?

Engagement is differentiating for brands

SOURCE: http://www.engagementdb.com/downloads/ENGAGEMENTdb_Report_2009.pdf

Conversation: Gatoradefrom Community Management to Command Centers

SOURCE: http://online.wsj.com/article/SB10001424052748703466704575489673244784924.html

SOURCE: http://www.youtube.com/watch?v=InrOvEE2v38

> 80% of the market is still in the experimental stage

> To make the next step there are two important mindshiftsnecessary

– Conversation (community management)

– Continuously create value (content strategy)

> From outside-in to inside-out is a big step for companies

> Social currency is the lubricant of social interaction: what value do you add as a brand for consumers to be able to interact

> Social currency is a must for brands on social media

> Engagement: involvement amongst consumers themselves is one of the powerful ‘drivers’ for brands

80% of the market is still in the tactical stage of social media

The step from tactical to integrated…

SOURCE: http://www.socialmediaexplorer.com/social-media-marketing/social-media-strategy-learning-curve-and-framework/

Social Business Analyses

•Map social media initiatives

•Analyze existing content

•Map of tracking systems

•Map social media objectives

•Etc,…..

Analyse

•Install cross disciplinary team

•Make sure of consensus

•Define joint objectives

•Etc ….

Collaboration•Create guidelines, protocols and

compliance

•Develop SM strategy

•Develop content strategy

•Develop measurement strategy

•Etc…

Develop

•Train directly involved employees

•Train the other employees

•Produce a toolkit and templates

•Etc…

Install

Organize

SOURCE: http://www.altimetergroup.com/

Organize: who decides?

SOURCE: http://www.altimetergroup.com/

Organize: Roles & Responsibilities

Department CorpComm Marketing

Function

Brand & BusinessObjectives

Lead Lead

Digital Content Contribute Contribute

Digital Distribution Lead Lead

Listen, Respond & Engage

Lead, Two-Way, Public-Facing Conversations

*with Customer Care team

Develop: Content strategy

SOURCE: http://www.ia-experience.com/

Develop: Measurement strategy

ACTION

What actions if any has the target taken?

INFLUENCE

How we influenced perceptions & attitudes

of the target

ENGAGEMENTEXPOSURE

Who is interacting & engaging with our content? How and

where?

To what degree have we created exposure

to content and message?

Non-Financial ImpactPossible Financial

Impact/ROI

SOURCE: http://www.socialmediaexplorer.com/online-public-relations/the-digitization-of-research-and-measurement-in-public-relations/

Issue-analysis

Delete Policy

Exit-strategy

> Determine your position> Monitor> Organization-model> Roles & Responsibilities> Strategy > Content strategy> Measurement strategy> Exit strategy> Community management> Issue-management> Escalation process> Delete policy

Checklist social media

> To get more value from your social media-strategy, you have to be well prepared and organized: from outside in to inside out

> Make sure of the integration of and consensus within silos

> A good content strategy is the basis of your social media-activities

> Make sure of a well integrated measurement strategy for different objectives and levels

> Standardize processes

> Social media moves through and effects all departments and layers of an organization

> A next step is only possible as a result of good organization and integration of silos and joint strategy

> For exchange value you as a brand have to create the right value for your specific target group

> The real value of social media is in good content, conversation and connected consumers through your brand

Think first, then act…

David.wolff@fleishman.comTwitter: @zapachenetherlands.fleishmanhillard.com/

Value of Social Media and Word of Mouth by David Wolff, Fleishman-Hillard

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