pierre woreczek (mcdonald's) istrategy london

HOW TO CREATE GREATER CUSTOMER ENGAGEMENT THROUGH

CROWDSOURCING?

McDonald's Germany‘Make Your Own

Burger’ 2011 Campaign

Pierre WoreczekiStrategy Conference, London, May 2012

..........................................1McDonald’s in

the new digital context

The

consumers' voices have

become louder than traditional marketing

THE RULES OF THE GAME HAVE CHANGED

SOCIAL MEDIA GIVE INDIVIDUAL THE POWER TO INFLUENCE THE WORLD AROUND THEM 90% of consumer trust

peer recommendations

ONLY 14% trust advertisements12351060100

DIGITAL REVERSED THE WAY BRAND & CUSTOMERS INTERACT

From brand to

customers

From people to the brand

With the digital, people are empowered,have access to resources like neverbefore, get organized and are able totake action.

DIGITAL IS NEITHER A NEW MEDIA, NOR A NEW COMMUNICATION TOOL…

IT’S A REVOLUTIONARY BUSINESS ENGINE

PRODUCTION

DISTRIBUTION CUSTOMER RELATIONSHIP

We do not have a choice

on whether we DO social media,

The question is how well we do it

“”Erik Qualman

SOCIAL MEDIA OFFER HUGE POTENTIAL FOR BRANDS “Always on”

customers

The more you are the more you can do

Direct feedback is priceless

Doing good in their life is the strongest link

WoM, amazing com tool

Fans = best advocates

Source of creativity

THERE ARE MANY REASONS FOR US TO EMBRACE SOCIAL MEDIA

Democratic brand

Open & Transparent

Young adults

oriented

Leader

Techno savvy

LOOKING AT WHAT OUR CONSUMERS WANT

To take part in the creation

process

To be the star of the kitchen

To be more involved in what the brand does

To feel more listened

TO ENGAGE

THERE IS A BIG OPPORTUNITY FOR US

Convert frequent young users into advocates through greater engagement

..........................................2How did we

approach it?

EVERYTHING STARTED IN GERMANY FROM A SIMPLE INSIGHT

Our consumers love playing and experimenting with our products

USING CROWDSOURCING

Crowdsourcing is how the power of the many can be leveraged to accomplish thingsthat were once the responsibility of a specialized few. The crowd is more than wise, it’s talented, creative and stunningly productive.

“Crowdsourcing, why the power of the crowd is driving the Future of Business”by Jeff Hove - 2009

CROWDSOURCING IS MUCH MORE THAN COMMUNICATION

Many companies have done some. But most of them have used it only as a communication mean.

Crowdsourcing helps brands walking toward a new model of

collaboration.

AFTER DECADES OF FOOD INNOVATION ...

... WE DECIDED TO LET YOU DECIDE

AN INNOVATIVE STEP IN BURGER CREATION

…………………………

KEY PRINCIPLES

Create their own burger recipe online Design their digital campaign and

promote it on social media See their burger sold across the

countryDO YOUR OWN BURGER

FOR THE FIRST TIME, CONSUMERS CAN

…………………………

• Create excitement around promotional burgers and generate footfall

• Create digital buzz through viral elements & social media

• Improve RMS thanks to free media coverage• Improve brand bond by leveraging positively

consumers’ ego

OBJECTIVES

…………………………

• Empower consumers and turn them into brand ambassadors

• Position McDonald’s as a digital innovator

…AND ALSO

ROLL OUT: The 5 winning burgers are selected by a jury of food specialists and sold in all McDonald’s restaurants across the country

1

2

3

4

CREATION: People create their own burger online from a selection of 100 ingredients

PROMOTION: They promote their burger trough social network, videos, pictures and Facebook pages to get the most votes

FINALISATION: The creators of the top 10 burgers are invited at McDonald’s to refine their recipe with chefs

A 4 STAGE PROCESS

…………………………

STAGE 1 - CREATION

• Meinburger application launched to allow consumers to create new recipes and vote for their favorites

…………………………

STAGE 1 - CREATION

People created their own unique burger from 70 ingredients

More than 5,000,000 possibilities, all achievable in our restaurants

…………………………

STAGE 1 - CREATION

Burger inventors got an overview of their burger and found out details about calories and quality of each ingredient

…………………………

STAGE 1 - CREATION

Burger inventors choose a name for their burgers before it is published

STAGE 2 - PROMOTION

To generate more buzz, we gave people banners, a facebook profile and posters featuring their creation

STAGE 2 - PROMOTION

Contestants could promote their burgers with a personalized video, in which they were shown as famous burger inventors

STAGE 2 - PROMOTIONPeople succesfully promoted their burger by their own

Steve, winner of the contest on World of warcraft forum

Facebook Fan page of Kann, 800 000 + fans !

STAGE 2 - PROMOTION

Inventors invite their friends to vote for their burgers, spreading the word about the campaign

…………………………

STAGE 3 - FINALISATION

The top 10 burgers made it into the McDonald’s kitchen

…………………………

STAGE 3 - FINALISATION After building, tasting and finetuning their burgers, the contestants presented their creations to a jury.

Based on appearance, creativity and flavour, the jury choosed the top 5 burgers.

…………………………

STAGE 3 - FINALISATION Fans could vote on line for their favourite and the Winner was announced.

…………………………

STAGE 4 – ROLL OUT

…………………………

STAGE 4 – ROLL OUT

German TV Ad 2011

Case Study Video

3What did we learn?

..........................................

WE HAD GREAT RESULTS

« We really did not expect to have this much success with the campaign. The access we had was in part 40, 50, 60 times higher than previous successful campaigns »

Norma Rockmann, Razorfish Germany

.............................................

RESULTS OF THE FIRST EDITION

116.000 Burgers created

1.500.000 Votes

Every 23 sec. a burger was created

12.000 Individual Campaigns

2.000.297 Campaign views on the McD Site

21.100 Facebook Likes

120.000 additional Facebook fans

2011

.............................................

THE 2nd EDITION ACHIEVED EVEN BETTER RESULTS

327.653 Burgers created

4.995.278 Votes

Every 7 sec. a burger was created

22.895 Individual Campaigns

3.287.297 Campaign views on McD Site

37.150 Facebook Likes

200.000 additional Facebook fans

2012

41

HUGE MEDIA COVERAGEONLINE & OFFLINE

AD OF THE YEAR

Highest ad recall

of the year

Highest Likeabilityof the year

Ad Treck Report “Mein Burger”

NEW RECORDS ON FACEBOOK POSTS AND FANS

McDonald’s have never won so many new Facebook Fans throughout a campaign before

In the history of McDonald’s there were never so many Facebook posts for a campaign

#1 Facebook fan page in Germany

44

BEST EVER PROMOTIONAL CAMPAIGN IN SALES

Results – internal sources

Mein Burger brought more guest to

McDonald’s than any other campaign before

All 5 wining burgers exceeded all

expectations by far and were even partly

sold out

No campaign achieved as many sales as

“Mein Burger”

The winner burger “Just Stevinho” is the

best sold Chicken promotion burger of

the last 3 years

GREAT BENEFITS FOR THE BRAND

BONDOpportunity to create

an emotional connection with

consumers

QUALITYOpportunity to talk

about the ingredient quality and story

The first crowd sourcing experience with

burgers

MODERNITY Social media exposure & customisation trend

LEADERSHIP

And also ... Low budget cost

... AND ALSO FOR THE CONSUMERS

Feel empowered and listened

CELEBRITYFamous on social

network but also TV, POP, radio

Can create the burger of their choice among

+100 ingredients

INSIDERGet behind the scene of

burgers creation and meet the chefs

CUSTOMIZATIONVALORISATION

A GREAT RESOURCEFOR R&D

460,000 recipes created in 2011 and 2012

We know better which ingredients and combinations consumers want - Duncan Cruttenden, R&D Manager, McD Germany

5 THINGS TO REMEMBER FOR YOUR DIGITAL AGENCY

Ensure that the platform is secure against hack attacks

Run a stress test on the platform before you start Do not underestimate the number of participants,

especially in the first hours and days Put a lot of care and attention in the design and

navigation Get your community manager ready

COMMUNITY MANAGEMENT IS A VERY SENSITIVE TOPIC

Involve Communication Department Be transparent and communicate openly

and honestly with the community at any stage

Never change the rules within the running campaign

Be prepared to act fast

…………………………

SOME REMAINING QUESTIONS

Are we still going to be recognized for our expertise of burgers creators?

What are the longer term effect on our relationship with

customers?

What do they expect next?

CONCLUSIONS• Digital technologies enable companies to better know,

understand and collaborate with consumers but in exciting new ways.

• Digital is not a new media. It is a new platform that generates new services.

• The quest for the R Factor - Consumer Relevance - should lead the transformation process of the companies.

• Social CRM is making traditional CRM outdated.

Pierre WoreczekiStrategy Conference, London, May 2012

THANK YOU