a practical guide to marketing & making money through social media: dell case study

A Practical Guide To Marketing & Making Money Through Social Media: Dell Case Study21st September 2011

Damien CummingsOnline & Social Media Director

CSMB Online & Social Media

About Dell


We revolutionizedthe industry once, andwe’ll doit again

One of the firstto launch online

discussion forums

First company tohit $1M a day inonline revenue

One of the first companies to launch online

support

First to sell complex configurable items


Dell Online TodayOnline:

Dell.com + Premier + Global Portal + B2B + Channel Portal + eSupport + Community

An online orderis placed

every 2 seconds

$10Bonline revenue

34 languages supported

Googled 1M times per day

58KChannel partnersonline

150M online resolutionsvia eSupport per day

170M visitsto community properties

190kPremier pages

725K B2Btransactions per year

166 countries

13Bpage views in FY’09

1Bvisits per year to

Dell.com

CSMB Online & Social Media 5

Dell’s Social Media and Community Journey


Power of a Social Brand

More than ever – a company’s brand is influenced by what consumers are saying about the brand

A negative customer review on YouTube, Twitter or Facebook can cost a company about 30 customers (Convergys Corp.)

25% of search results for the world’s top 20 largest brands are links to user-generated content (Socialnomics, ’09)

People more likely to buy from brands they follow (51% more likely to buy following brands on Facebook. 67% Twitter) (iModerate research)

Visitors to Facebook and Twitter spend more money on the Web than other Internet users (eMarketer, June 2010)

Confidential6

CSMB Online & Social Media 7 Confidential

Dell’s Vision of Social Media

1. The future of Dell.

2. Solid strategy is in place, grounded in business and customer value drivers.

3. Benefits are real, tangible and will strengthen insights in coming years.


Consumer

Early AdopterSMBLE

Public

1995 2006 2007 2008 2009 2010

Social RelationshipsUsers find each

other online

Social FunctionalityUsers interact innew ways online

Social ColonizationSocial not limitedto “social sites”

IndustryEvolution1

Strong brands, but nearly 90% YoY traffic decline

2K ideas in first 2 weeks

Moved to segment-specific blogs

1.3M Followers on Twitter today; $6.5M revenue

Premier, Health Storms launched

10K+ ‘accepted solutions’

Shown to improve conversion by as much as

176%

Recent implemented ideas include backlit keyboards,

Linux OS

7 core blogs, 100+ contributors, 4-5 posts/week

Decreased ability to respond due to resourcing

1 Forrester, “Future of Social Web” * Data as of October 2009

SocialNetwork Platforms

GlobalOffsite Properties

IdeaStorm

Blogs

Forums

Blogosphere Outreach

Ratings & Reviews

Dell’s Social Media Heritage


Global Reach (As of Jan 2010)

Global reach is good, globalization strategy needs to be focused and more thoughtfully executed


Dell’s Social Media Marketing & CommercialStrategy

10

CSMB Online & Social Media 115 Steps To Social Media Leadership

Dell.comDell Swarm

Best Practice: Best Practice: Best Practice: Best Practice:

1 2 3 4Online Video & Viral Marketing:New Product Launch& Key Brand Campaigns

Social Commerce: Including Dell.com Improvements & Dell Swarm Group Buying

Social Media Training for all Employees

Build Fans & FollowersThrough Social Networks

Content & Listening:SNSBlogs & Twitter

5


Listening To Customers


• First Centre in Austin, Texas

• Using Radian6 (but considering other technology platforms).

• Monitoring 25,000 daily conversations.

Social Media Listening Command Centre


Dell Streak “gorilla glass”The “gorilla glass” on Dell Streak tablet phone is breaking

Example: “Gorilla Glass” on Dell Streak 5

http://www.dell.com/us/p/mobile-streak/?modaltype=box&position=center&ovrcolor=gray


Community Manager

Develop & publish appropriate response

/ content on social sites

Business Analysts

Monitor volume, reach & sentiment

Social Commerce Manager

Minimize impact on social commerce

MarketingRevise any relevant copy in

marcom

SalesAware with at-ready talking

points

Product GroupWork with vendor for appropriate solution.

Consider for future design

Corp Comm / Public Relations

Manage any media exposure

Customer CareHandle any customer escalations to repair /

replace

OnlineAdjust online content /

merchandising Manage Dell Community

forum discussions

SMLCC

ListenersHears customer

complaints: “gorilla glass on Streak

breaks!”

SMLCC DirectorCoordinates action plan within SMLCC & other

Dell teams

How the SMLCC Responds:


Building Fans, Followers, Likes, Connections, etc.

Global CSMB Social Media

- Spend an additional $71.84

- Fans are 28% more likely to continue to use Dell

- Fans are 41% more likely to recommend Dell

What is the value of a Fan?

Source: Syncapse Value of Facebook Fan research

Global CSMB Social Media

4 Ways to Build Fans, Likes & Connections

Paid Advertising

(up to 75%)

Incentives

Corporate Social Responsibility

Relevant Content

18

• Paid Advertising contributes up to 75% of your Fan/Like acquisition (Facebook).

• Around US$1.10 per Fan acquisition.

• Relevant content, incentives and CSR keeps Fans, Followers, Connections engaged.

• Acquisition changes depending on the number of existing Fans, Followers Connections (early stage vs. category leader: 1 million+).


Online Video


Video: User Generated vs Agency Produced

295,217 views 7,429 views

http://www.youtube.com/watch?v=0tP6DZiHed4

http://www.youtube.com/user/AlienwareChannel?blend=1&ob=5#p/c/022F5B823C4FC118/15/Hcx2JrjpmEs


Social Commerce


Social Commerce: Group Buying via the Dell Swarm brand


Dell Swarm Platform Positioning

Dell.com

Premium, New and Full Range of Products

• Customisation & everything you’d expect of Dell.com

Purchase, Delivery and Help all leverage Dell.com platform

Dell Swarm

Group BuyFocus: S&P and End-of-life• Large discount expectation• Social, WOM and Buzz generation• Upsell/traffic drive to Dell.com


Dell Swarm in Australia

1hr 11min10hr 5min2hr 23min 33min 22min19hrs 12minSold Out Sold OutSold OutSold OutSold OutSold Out

Success due to a number of factors:- Business Partners able to offer

steep discounts- Affiliate Marketing partners- Growing WOM (now 50% of

traffic), +19% more likely to Buy than average

- Simplified Discount approach (modeled on Groupon)


Next Steps for Dell Swarm

Geo Expansion Partnerships

Mobile & Social

Integration

Now:- Singapore & Malaysia,

Australia & UK.

Coming Soon:- The World!


Twitter:@DellOutlet1,570,397 followers$5m+ revenue


Training: Unleashing Your Team As Social Media Advocates


Social Transformation

Training all of Dell’s 100,000 employees in social media.

1. Social Media policy in place.

2. Robust training program in place:• Getting Started in Social

Media• Brand Mgmt in Social Media• Twitter• Facebook• LinkedIn• RenRen & Sina (China)• Blogging & Community• Internal Social Media

3. 9,000 employees already trained.

4. Will fundamentally transform Dell.


1. Protect Information

2. Be Transparent and Disclose

3. Follow the Law, Follow the Code of Conduct

4. Be Responsible

5. Be Nice, Have Fun and Connect

Dell’s Five Social Media Principles

CSMB Online & Social Media 30 Confidential

Training and Certification• SMaC U Certification is required for any team member using

Social Media on behalf of Dell beyond their personal social media platforms

Personal SMaC Enthusiast SMaC Professional SMaC Spokesperson

Team Member Roles

"Fan" "Cheerleader" "Player" "Sports Broadcaster"

Social Media useTeam member uses personal SM platforms (facebook, flickr) only

for personal use

Team member that uses personal SM platforms and will occasionally support Dell initiatives on personal

pages

Team member responds directly to customer needs, engaged in

conversations and/or owns a social media group on behalf of Dell

Team member certified to speak on behalf of Dell with the media

N/A MKTG2002 SMaC Principles

Media Training YES

Team member certification

Hours required 6-7 Minimum 7-8 Minimum

Audience handles sassysarah sassysarah SarahatDell SarahatDell

SMaC U Training & Certification

MKTG2006 Building Relationships on Facebook, MKTG2007 Building Relationships on Twitter, MKTG2008 Buildinig Relationships on

Community, (TBD) Building Relationships on LinkedIn (New Classes added as needed)

Platform Specific Classes

Select one or more based on the tools you plan to use

SMaC U Basic Required Training

Code of Conduct and Other Dell Corporate Policies

MKTG2002 SMaC Principles, MKTG2003 Get Started SMaCing and MKTG2005 Building Brand on SMaC

fan cheerleader player broadcaster

http://www.youtube.com/watch?v=0tP6DZiHed4


Questions?Damien CummingsOnline & Social Media Director

[email protected]

@damiencummings

http://sg.linkedin.com/in/damiencummings

http://damiencummings.blogspot.com

Want a job?Dell SingaporeTalent Acquisition

[email protected]

www.dell.com/careers/singapore

www.linkedin.com/company/dell

www.dell2direct.com