The Fiscal Cliff

BRAND COMMITMENT SCORE IN ACTION

Twitter Hash Tag #Fiscalcliff

Follow us @SDLSocial

How do national financial crises impact my brand?

Fiscal Cliff $800 billion* taken out of the U.S. economy

Source: http://www.forbes.com/sites/rickungar/2012/11/10/the-fiscal-cliff-explained/2/

1. Understand how the fiscal cliff impacted brand commitment 2. Determine the level of shareability around fiscal cliff content

3. Understand audience segments talking about the fiscal cliff and determine what drove engagement and sharing among these groups

Objectives

The challenge is analyzing

and making sense of the vast

dataset that is available...

“90% of the data in the world

today has been created in

the last two years alone.” Source: IBM/bigdata

Context

How do we get customers to buy our product, share our message and advocate for our brand?

How do we get customers to buy our product, share our message and advocate for our brand?

Product commitment score (PCS) predicts likelihood to buy

How do we get customers to buy our product, share our message and advocate for our brand?

Product commitment score (PCS) predicts likelihood to buy

Customer relevance score (CRS) predicts likelihood to share

How do we get customers to buy our product, share our message and advocate for our brand?

Product commitment score (PCS) predicts likelihood to buy

Customer relevance score (CRS) predicts likelihood to share

Brand commitment score (BCS) predicts likelihood to advocate

How do we get customers to buy our product, share our message and advocate for our brand?

Product commitment score (PCS) predicts likelihood to buy

Customer relevance score (CRS) predicts likelihood to share

Brand commitment score (BCS) predicts likelihood to advocate

You Have A Score But What Does It Mean?

Scores + human-led analysis

Strategy recommendations

Fiscal Cliff

Brands Affected

High-End Value

Shareability

Mainstream News

Social Media Blogs Forums

Audience Understanding

Behavior Attitudes

Methodology

THE FISCAL CLIFF AT A GLANCE Lets Get the Preliminary Stuff Out of the Way…

In the month of December 2012 there were

737,956 conversations around the “Fiscal Cliff”

97% 2% 1% >1% >1%

As You Can Imagine, There Were A LOT of Conversations, Mostly Stemming from the US but with Volumes in APAC and EMEA

BUT HOW DID THE FISCAL CLIFF AFFECT BRAND CONVERSATIONS?

So There Was A lot of Buzz…

Retail Apparrel: Higher-end brands lose brand commitment in times of financial uncertainty

Brands 2011 BCS

2012 BCS

% Change

Walmart

52.04 51.45 -1.1%

Forever 21

67.43 60.58 -10.2%

Nordstrom

54.38 46.77 -14.0%

X[BAR CHART’

High volume/ Low commitment

conversations

Action: Drive advocacy – stimulate

conversation

Strong players: Committed clients

Action: Retain and reward

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Nordstrom

Walmart

Forever 21

Low level engagement

Action: Drive sharing conversations

and create a strong brand story

Niche/Emerging: Committed heartland

Action: Retain and drive advocacy/

Conversation through community

engagement

McDonald’s Is The Only Brand We Looked At Whose Brand Commitment Rose From Q4 2011 To Q4 2012

Brands 2011 BCS 2012 BCS % Change

Walmart 52.04 51.45 -1.10%

Forever 21 67.43 60.58 -10.20%

Nordstrom 54.38 46.77 -14.00%

Budweiser 51.41 48.19 -6.30%

Patrón 51.94 47.91 -7.80%

McDonald’s 53.9 55.5 +3.00%

These brands stayed on their normal strategy, whereas McDonald’s took action

SO WHAT DID MCDONALD'S DO RIGHT?

Ramped up the Dollar Menu options and messaging

Aligned with people’s changing values and priorities

Rising Brand Commitment Score correlates to Increased Sales

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Oct-12 Nov-12 Dec-12

• Declining sales in 2.2% in October. • Brand commitment rose by 4 points, corresponding to a 2.4%

increase in sales and a 1.3% increase in stock. • BCS remained elevated in December as sales remained on par

with November 2012 levels

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SO…YOU NEED TO TAKE ACTION BUT WHAT ACTION TO TAKE WITH WHAT MESSAGING STRATEGY?

Inaction leads to lower brand commitment in a time of financial crisis

Determine the fiscal cliff’s level of shareability among the public to determine if specific messaging makes sense

Are People REALLY sharing things about the Fiscal Cliff?

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All Up Buzz (Vol) CRS Conversations (Vol) Commitment Conversion Rate (%)

YES!!!! The Majority of social media conversations around the fiscal cliff were sharing conversations were users re-tweeted content, recommended content, or forwarded content from another medium.

* Commitment conversion rate = % of conversations that are linked to brand affinity

HOW ABOUT INDIVIDUALS IN THE SOCIAL MEDIA REALM?

So we figured out that the fiscal cliff is on the minds of a lot of people…

In the month of December 2012 there were

737,956 conversations around the “Fiscal Cliff”

67% of those conversations were from individual social

media posters – just like you!

Emotional

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Clinical

Four Distinct Personas

The Whiner

The Revolutionary

The Taxpayer The Debater

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The Whiner

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The Revolutionary

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The Taxpayer

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The Debater

LET’S SOME IT ALL UP That’s a lot of information…

What Have We Learned Today?

Monitor brand commitment to keep a constant pulse on brand health so you can course correct in REAL Time

By monitoring major events with the customer relevancy score you can determine which conversations you need to be a part of

Creating personas increases your ability to craft targeted messaging based on the audience you care most about

ANY QUESTIONS? CAMERON PLOMMER EMAIL ME: CPLOMMER@SDL.COM JUSTIN KISLE EMAIL ME: JKISLE@SDL.COM

Thank you!