Date post: | 01-Nov-2014 |
Category: |
Business |
Upload: | michael-hong |
View: | 2,332 times |
Download: | 1 times |
Review Driven Marketing(Social Media Marketing)
Michael Hong
Share of Online Sales continues to grow
2
e-commerce sales will represent 8 percent of all retail sales in the U.S. by 2014, up from 6 percent in 2009In 2009, 154 million people in the U.S. bought something online, or 67 percent of the online population (4 percent more than in 2008)Three product categories (computers, apparel, and consumer electronics) represented more than 44 percent of online sales($67.6 billion) in 2009
Some products are more likely purchase online over offline
3
According to a study by the US Census Bureau, the bulk of sales are still in-store. There are, however, several categories in which online sales dominate each product marketplace. These include: books and magazines, clothing, and electronics.
But Online Influenced sales are over 5 times of online sales
4
While $155 billion worth of consumer goods were bought online last year, a far larger portion of offline sales were influenced by online research. Forrester estimates that $917 billion worth of retail sales last year were “Web-influenced.” It also estimates that online and Web-influenced offline sales combined accounted for 42 percent of total retail sales and that percentage will grow to 53 percent by 2014, when the Web will be influencing $1.4 billion worth of in-store sales.
Online influence is increasing as content sharing is getting easier with faster internet speed
Internet SpeedE
ng
agem
ent
Text
Audio
Pictures
Video
HD Video
Communicate Socialize
Task Life management
Just for Fun Full Entertainment
Web 1.0 Web 2.0
High
High
Information Content Sharing
Prosumer produces reviews that influences both manufacturer and consumer
• The Cluetrain Manifesto written in 1999 by , Christopher Locke, Doc Searls, and David Weinberger noted that "markets are conversations" with the new economy moving from
passive consumers ... to active prosumers.2 For instance, Amazon.com emerged as an ecommerce leader -- partially due to its ability to construct customer relations as conversations rather than simple, one-time sales. Amazon supports exchange of information among customers; it provides spaces for customers to add to the site, in the form of reviews.2
• However, mass customization has not taken place in most areas of the economy. Most consumption continues to be passive as critics of television, recorded music, and fast food would argue. Indeed, people are generally uninterested in going to the effort of customizing the myriad products that comprise modern consumer culture. In The Paradox of Choice: Why More is Less, Barry Schwartz argues that diminishing returns from a confusing abundance of consumer choice is producing stress and dissatisfaction.3 Still, one key area of high-customization is taking place: highly involved hobbyists.
ProfessionalProducer Consumer
It’s that 1% makes all the difference
• Members of motorcycle clubs are often viewed in a negative light by traditional society. This perception has been fueled by the movies, popular culture, and highly publicized incidents. One of the earliest and most notorious of these occurred in Hollister, California in 1947[6] [7] and is now dubbed the Hollister riot. Whether or not an actual riot occurred is debatable, but there was a motorcycle rally in Hollister from July 4 to July 6 of that year that was attended by about 4000 people. Several newspaper articles were written that, according to some attendees, sensationalized the event and Life magazine ran an article and a staged photograph of an intoxicated subject on a motorcycle parked in a bar. The film The Wild One, starring Marlon Brando, was inspired by the event, and it became the first in a series of movies that depicted bikers and members of motorcycle clubs in this stereotypical manner. The press asked the American Motorcyclist Association (AMA) to comment on the Hollister incident and their response[citation needed] was that 99% of motorcyclists were law-abiding citizens, and the last one percent were outlaws. Thus was born the term, "one percenter". They are also known as "Outlaw Motorcycle Gang" or (OMG) according to the ATF[8].
Just about everything is being reviewed and rated
Even Reviews are being Reviewed
davedude123456789 (3 months ago) Show Hide omg! im sorry but who cares about the voice command. also the speaker on my lg rumor is perfect and loud! there are 20 ringtones and you definitely only need 6 or 7 msging tones. the exposed number pad is just fine especially if it does have the lock! i love the phone! VolcomSkater211 (3 months ago) Show Hide whoa negative much?learn what the phone can do before talking smack about it! TrentonStolte (3 months ago) Show Hide umm....... i have the scoop and u can do voice command... its not that hard to get to.... why dont u try to actually look for what the phone features before you start talking shit on it andrechristi (3 months ago) Show Hide this girl sucks at this man!!! POST some gud comments . U SUCK AT THIS. BY the WAY THAT flip phone sucks. U dunt noe how to advertise videoguy2005 (3 months ago) Show Hide =( u suck at this
Reviews are being searched 86 million times per month and growing
Video Review are also fast growing.. Over one million video reviews
7354
13373
2360
4590
3507
3283
2007 2008
VOC Study 1Q-3Q ’07 vs. 1Q-3Q‘08
Number of reviews are growing…
5524
10779
2982
4466
1573
3869
2451
1855
691
232
2007 2008
MU
CE
DA
Cnet
Amz
BBuy
Sears
Home Depot
13,221
21,201
60%
13,221
21,201
60%
60%
94%
∆6%
95%
50%
146%
∆ 24%
Review Volume Trend
It about time that you start listening to customers
Reviews are the
Voice of Customers
I am listening but not sure what do to with that
Some tries Fake Reviews …it’s a PR nightmare
Why do they Review?
To correct the record when you see that somebody else has given an unfair review
22%
Why do they Review?
Because giving feedback publicly is the best way to get companies to listen to what you have to say
39%
Why do they Review?
To help retailers make better choice about what products they sell
46%
Why do they Review?
To help companies make improvements in the products and services they offer
48%
Why do they Review?
Because you rely on consumer reviews and posting reviews yourself is a way of giving back
56%
Why do they Review?
To reward a company that has done right 56%
Why do they Review?
To share experiences with other people62%
Why do they Review?
To help other consumers make good decisions70%
Who are the reviewers?
Most reviewers likes to write positive things
Thinking of all the times you've posted feedback online over the last 30 days, has your feedback been:
Product reviewers are also Influencers
Told friends and family about my experience
Sent an email to friends and family about my experience
Posted my comments on some other product review website
Telephoned the company directly to express my opinion
Sent an email to the company directly to express my opinion
Sent a letter the company directly to express my opinion
Posted my comments on a weblog (blog) of some kind
Besides posting your feedback online, have you already expressed your opinions on that same product or service experience using any of the following methods? If not, do you expect you will do any of these things in the future?
59%
One out of two reviewers are frequent writers
About how many times in the last 30 days have you posted publicly on the Internet any kind of feedback regarding a product or service?
They leave their voice where they buy
On a website belonging to a retailer and relating to an offline purchasing experience
On a website belonging to a retailer and relating to an online purchasing experience
On a product manufacturer's own website
On an independent "product review" website such as Epinions, ConsumerReview, ConsumerSearch, CNET, TripAdvisor, etc.
None of the above
On a weblog (blog) belonging to you or some other individual
Please tell us all the types of places you have posted feedback online about products or services (select all that apply)
66%
34%
Time
Arming for fightArming for fight Trying it onTrying it on ReassuranceReassurance
Internet
WOM In-storeForums
& Reviews
Collecting info
Avoiding a mistake
Feeling more
confident
Final check
Talk to friends
+
- Narrow choice
Obtain a visual
baseline
Talk to friends PURCHASE
WOM In-storeLeaflets &
internet
PurchasePurchase
▶Through out the journey of purchase, customer listens to what other customer have to say ▶Review Driven Marketing is to leverage customer’s voice to influence brand perception
So how do Reviews impacts my business?
* Source : Saatchi X
▶ 77% of online shoppers seek product ratings & reviews▶ 84% trust user reviews over a critic ▶ 58% of consumers start their research on the manufacturer web site
Customers are actively using product reviews
* Source : Saatchi X
* Source : Forrester, Jupiter Media, Shop.org
Case Study
Influence marketing by LG
Influencer Marketing
• Form of marketing in which focus is placed on specific key types of individuals rather than the target market as a whole
• It identifies the individuals that have influence over potential buyers, and orients marketing activities around these influencers
What It Is
Why LG Use It
For LGE, we see four key channels in the influencer ecosystem
• To increase awareness of LG within the influencer community and ultimately among target markets
• To raise brand affinity and influence purchasing decisions in a more impactful way than traditional forms of marketing
• To build advocacy by turning influencers into advocates of LG
• To keep the pulse of the brand by capturing consumer opinions that can affect product choices and marketing strategies
Retailer
Expert
Social Media
Consumer
Gain deeper consumer and brand insight
Monitor and check LGE’s influencer community and its impact among target markets
Keep a pulse on the brand
Foundation of Influencer Marketing
Engage MonitorInfluence
Influence the influencers
Join the conversation to contribute value
Amplify positive conversation to key influencers
Cultivate and facilitate consumer engagement
Turn most loyal consumers into citizen marketers
Generate viral buzz that will increase dialogue within key peer groups
Create a “momentum effect” where consumers use and share brand elements
34
1. Monitoring
2. Engage
• Monitor top 5 websites highly relevant ( Amazon, Bestbuy, Sears, Home Depot and Cnet etc.)
• Understand competitive landscape and apply learning to strategic planning
• Generate products reviews in text and video format via lgusa.com, Expotv and Youtube
3. Influence
• Amplify positive message while neutralize negative message
• Syndicate review contents between LG and strategic partners
• Increase search visibility via keyword tagging
Your Action Plan
Consumer reviews are the ultimate ‘unbiased advice’
People really trust the opinions of people like them and put a lot of weight to them. The bad reviews are as important as the good – if not more so. You need to encourage purchasers to write reviews and tell the world about their wonderful new experience
How do I incorporate this into my marketing strategy?
Opportunity
AmazonBest BuySearsHome DepotCnet
Monitoring VOC and Usage
DB
Product Improvement• Customer experiences
Consumer Insight
Marketing• Leverage VOC to
communications strategy
Sales• Product lifecycle extension• Product Exit Strategy
DB Capturing Storage DB Mining Application
Marketing Application of VOC
▶ Tell your customer about Top rated Products In-Store, Website, Email Print etc.
Amplification
Retailers
YouTube
ExpoTVCnet
▶ Spread the reviews to where your targets are.
Generate UCC on LG product review that will be highly visible in search site such as Google and Yahoo
Approach: Partner with YouTube & Google generating UCC on LG product review. Develop a set of keywords and tag to all UCC to support search engine.
Invite LG product users
to generate LG products review
Video content as Search results
Syndicate video content to
LGusa.com and other partners.
Tag Keywords to make the
video content search friendly
▶ Search engines are now offering video content as search results ▶ Product review contents are on high demand but video formats are not available. (< 2% per brand) ▶ Video contents are not search friendly due to improper keyword tagging.
Illustrative
AppendixAmplification
Marketing Application of VOC
Editorial Reviewswill influence early adopters
2Q2Q 3Q3Q 4Q4Q 1Q1Q
Reviews by early adapters are critical to 4Q sales
Insufficient reviews or bad reviews will negatively impact brand consideration
Heavy incoming Reviews determine winners and losers
Early Buzz
• Arrange publications to write product reviews (Cnet)
• Inject educational product contents to relevant context (Youtube, ExpoTV Retail sites)
Volume building
• Review writing contest (Product Registration, Wirewise etc.)
• Mobilize brand ambassadors (BzzScape, Adfusion)
Syndication
• Exchange review contents with retail partners
• Leverage reviews to influence purchase decision
Sales Extension
• Extend life cycle of High Buzz, High Rating product beyond 1st Q
• Leverage the recognition to next generation products
WOM Action Plan
1. VOC Monitoring Appendix
HE
LCD Plasma Bluray
Mos YTD Mos YTD Mos YTD
LG 6% 4% 6% 4% 3% 5%
Samsung 74% 62% 34% 42% 20% 35%
Sony 12% 21% 0% 0% 51% 32%
Panasonics 2% 1% 59% 54% 21% 18%
Sharp 6% 12% 0% 0% 4% 9%
n= 393 12,728 108 3,524 98 1,355
HA
Washer Dryer Refrigerator
Mos YTD Mos YTD Mos YTD
LG 20% 27% 10% 20% 32% 26%
Samsung 12% 5% 0% 1% 24% 8%
Kenmore 36% 49% 70% 43% 21% 42%
Whirlpool 16% 9% 10% 18% 11% 5%
GE 8% 3% 0% 10% 8% 8%
Maytag 8% 6% 10% 9% 5% 10%
n= 25 1923 10 820 38 1671
Source: LG VOC tracking at amazon, cnet, Bestbuy, Sears and Homedepot
Share of Voice - Illustrative sample report
September 2008
Recommendation Rate – Illustrative sample report
Model Mos n YTD n Ind NormLHX 3 3 4.5 15LH90 4.6 2 4.3 30LH55 4.9 1 4.6 24LH50 4.5 3 3.9 105LH85 4.3 5 4.5 12LH75 4.6 6 4.3 150LH40 2.2 2 4.6 23LH30 4.5 2 3.9 45LH20 4.3 3 4.5 67LU60 4.6 3 4.3 25LF11 3.9 1 4.6 7CL 40 3.9 1 3.9 5PS80PS60 THXPQ30PS30 PS25PQ20 PQ15
BD390BD370BD370M
BD270LHB977LHB953LHB954 M237WDW1953TQW2053TQW2253TQW2253C W2353VW2453VW2753VW1943T W2043TW2243T W2343TW3000H W2061TQ W2361V W2361VG
MONITORS
4.1
4.3
4.2
4
4.5
LCD
PDP
BD-P
BD-HTS
Model Mos n YTD n Ind NormLHX 3 3 4.5 15LH90 4.6 2 4.3 30LH55 4.9 1 4.6 24LH50 4.5 3 3.9 105LH85 4.3 5 4.5 12LH75 4.6 6 4.3 150LH40 2.2 2 4.6 23LH30 4.5 2 3.9 45LH20 4.3 3 4.5 67LU60 4.6 3 4.3 25LF11 3.9 1 4.6 7CL 40 3.9 1 3.9 5PS80PS60 THXPQ30PS30 PS25PQ20 PQ15
BD390BD370BD370M
BD270LHB977LHB953LHB954 M237WDW1953TQW2053TQW2253TQW2253C W2353VW2453VW2753VW1943T W2043TW2243T W2343TW3000H W2061TQ W2361V W2361VG
MONITORS
4.1
4.3
4.2
4
4.5
LCD
PDP
BD-P
BD-HTS
HE HA
VOC – Key Learning
Pro: • Design ,picture
quality,4 HDMI
Con• Remote is not the
best in the world • No dvi out for
computer
Pro•Quiet, Looks great
Con• terrible odor (mold/must) and leaks. •paint on top shows scratches easily •long cycles (Washing & Drying)
LG - SteamWasher 4.2 Cu. Ft. 9-Cycle Ultra Capacity Washer - Wild Cherry Red Model: WM2487HRMA | SKU: 8631983
Customer Reviews: 4.3 Read reviews (23)
LG - Scarlet 42" 1080p 120Hz Flat-Panel LCD HDTV Model: 42LG60 | SKU: 8808329
Customer Reviews: 4.9 Read reviews (18)
LG - 20.5 Cu. Ft. Counter-Depth Side-by-Side Refrigerator w/ Thru-the-Door Dispenser - Stainless-Steel Model: LMX21981ST | SKU: 8846083
Customer Reviews: 4.3 Read reviews (3)
Pro•The look and water/ice dispenser
Con• It's not cheap, but we feel like got our money's worth
2908
5078
519
1198
954
1175
542
634
90
468
2007 2008
VOC Trend study
2831
62251183
1398
843
801
156
126
2007 2008
‘Flat Panel Reviews Volume
Cnet
Amz
BBuy
Sears
Pan
SS
Sony
SharpLG
▶Flat Panel Reviews are significantly increased at Amazon.com▶SOV of LG significantly increased from 1.8% to 5.5%.
71%
71%
5,013
8,553
5,013
8,553
VOC Study 1Q-3Q ’07 vs. 1Q-3Q‘08
120%
L 79%P 21%
L 78%P 22%
75%
131%
23%
17%
420%
205261
528
276
80
32
28
48
51
80
26
23
2007 2008
VOC Trend study
676
440
82
228
146
28
14
23
2007 2008
Washer Reviews Volume
HD
Amz
BBuy
Sears
May
Ken
WPSam
LG
▶Washer reviews are significantly decreased in ‘08▶SOV of LG significantly increased from 22% to 36%.
∆ 21%
27%
918
720
918
720
VOC Study 1Q-3Q ’07 vs. 1Q-3Q‘08
∆ 35%
178%
∆ 21%GE
∆ 48%
127
15
17
42
66
46
520
96
14
99
195
104
2007 2008
VOC Trend study
595
161
101
204
241
25
4
7
2007 2008
Refrigerator Reviews Volume
HD
Amz
BBuy
Sears
May
Ken
WP
Sam
LG
▶Refrigerator reviews are significantly decreased except Samsung▶SOV of LG increased from 21% to 26%.
∆ 57%
600%
941
402
941
402
VOC Study 1Q-3Q ’07 vs. 1Q-3Q‘08
∆ 73%
102%
∆ 47%
GE
∆ 48%
∆ 90%
∆ 57%
Net Recommendation Rate =
(# of Recommended - # of Not Recommended)
Total Review Volume
Share of voice =
Total Brand Review Volume
Total Category Review Volume
VOC Trend study
▶WOM Strength can be measured by NRR (Net Recommendation Rate) and SOV (Share of Voice)
Net Recommendation
Sh
are
of
Bu
zz50%
100%
25%
0% 50%
MU
DA
CE
1. VOC Monitoring –Summary
▶ Samsung has the highest Share of Buzz and strong rate of recommendation ▶ MU and DA are leading the VOC for LG
Michael Hong, Digital Marketing Consultant
Michael is a Senior Marketing Management professional with exceptional skills and experience in e-Commerce Marketing. Michael has 20 years of marketing and marketing communications experience at corporations such as AT&T and LG Electronics. He is a creative marketer and a thought leader in digital marketing and multicultural marketing industry. He spoke at numerous conferences such as Internet Retailer and the eM9-Marketing Conference.
Specialties: Advertising Strategy, Planning and Execution, Digital Marketing (SEO, SEM, Social media, Word-of-Mouth), Direct Marketing, Multicultural Marketing, B-B Marketing
Education: Cornell University, Ithaca, New York
B.A. 1985 School of Art, Architecture and City Planning
Contact: (C) 201 841 9659 [email protected]
Thank You