shespeaks viral marketing cosmetics case study
Post on 19-Oct-2014
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DESCRIPTION
How does traditional media compare to social media as a driver of response, engagement and sales? This case study explores these differences and that influencers can in fact be identified before a sampling program to help maximize viral impact and return.TRANSCRIPT
Copyright © 2008 SheSpeaks, Incorporated
OPI’s Nic’s SticksOPI’s Nic’s SticksWord-of-Mouth Word-of-Mouth Program ResultsProgram Results
September 2008
Copyright © 2008 SheSpeaks, Incorporated
SheSpeaks
•SheSpeaks is the leading women’s insights and word-of-mouth network. There are over 100,000 women with a common desire to be heard and share their views who have signed up to be part of the SheSpeaks Network/experience, sharing personal information and interests.
SheSpeaks taps into this powerful community of women to deliver word-of-mouth and insights for major brands
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3Copyright © 2008 SheSpeaks, Incorporated
SheSpeaks’ Services
• SheSpeaks functions as a multi-platform media network offering clients the opportunity to directly engage with their target in order to build word-of-mouth recommendations, consumer insight and brand advocates.
• Direct engagement with members allows our clients to:
• Stimulate interest in their brands
• Build viral recommendations about products and services
• Refine products and services
• Create effective marketing campaigns
Copyright © 2008 SheSpeaks, Incorporated
SheSpeaks’ Expertise is recognized
• Award winning network, recognized as experts on women insights and consumer advocacy, and presenting at leading industry events: Forbes Leadership Conferences, AdTech, Columbia University and The Economist CMO Conference
• Works with recognized and respected brands across industries and categories:
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55Copyright © 2007 SheSpeaks, Incorporated
Who Are The Women?
• Moms- 74% have children
• Varied Ages: 75% are 25-49 years old
• Education: 74% have at least some college
• Married/in partnered relationship: 71%
• Connectors: 71% have more than 10 interactions with others per day
• Refer Products: 99% will refer a product they like to others.
• Create Content: 30% have their own blog and an additional 51% read/comment on blogs
SheSpeaks Members Spread the WordSheSpeaks Members Spread the Word
6Copyright © 2008 SheSpeaks, Incorporated
Over 30% of SheSpeaks members have blogs and they use this as a tool to spread the wordIS IT STILL 30%?
Nic’s Sticks???
I just got one of these in the mail yesterday….It ROCKS!! Supposedly you can get them at Target and Walmart.
(link to nicolebyopi.com)
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SharedPurpose
Connection
Impact Recognition
How do Brands Build Advocacy?How do Brands Build Advocacy?
SheSpeaks Metrics Tracking
Tracking and Measurement WOM:
• Online survey responses and private community
• Coupon or promotional code redemption tracks sales
• SheSpeaks Email Facility
• Online Blogs- blog entries
• Online Communities
• Word of Mouth Measurement Reporting Firm i.e., ChatThreads, BuzzMetrics
Tracking and Measurement
Insights/Research:
• Quantitative Research: via online surveys
• Qualitative Research: private online discussion communities
• Direct Engagement with consumer
• Analysis and reporting
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OPI Objectives for Nic’s SticksOPI Objectives for Nic’s Sticks
9Copyright © 2008 SheSpeaks, Incorporated
Raise Awareness and
Excitement
Gather Consumer
Insight
DriveSales
Measure Returnon Investment
• Communicate availability, features and benefits• Get target customer to use the product• Build Word of Mouth
• Capture qualitative customer feedback• Capture quantitative survey data
• Build awareness of retail distribution• Create WOM referrals with product offers
• Track product sales attributable to SheSpeaks network
• Compare against other channels
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Member Invitationemail
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Pre-Test SurveySheSpeaks.com
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Product DeliveryCustom Insert, Pass AlongCoupons, Test instructions
Targeting & Qualification Member Sampling & Engagement
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Member EngagementSheSpeaks.com
Discussion Forums,Download coupons, Custom
Content
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Post-Test SurveySheSpeaks.com
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Thank You & OfferEmail
Pass Along Offer
Measurement & Thank You
SheSpeaks OPI Program Overview
Study questions: how much, how, and why?
• shespeaks about the product: how much?– What is the effectiveness of the shespeaks campaign as compared to
other traditional media?
• shespeaks about the product: how?– How much do members talk online versus offline?– How do online and offline conversations complement / substitute each
other?
• shespeaks about the product: who?– Is it possible to identify the members that will drive the success of the
campaign before the campaign starts? What are their characteristics?– Are the members that drive the success in one campaign likely to
drive the success in other campaigns?
Findings in Snapshot
• shespeaks about the product: how much?– Word-of-mouth plays an important role in the marketing mix-
raising awareness, driving trial and sales for brands
• shespeaks about the product: how?– Online activities must be supplemented with offline viral tools in
order to take full advantage of its effects
• shespeaks about the product: who?– “Influencers” can readily be identified and activated in groups of
consumers
Research questions: how much, how, and why?
• shespeaks about the product: how much?– What is the effectiveness of the shespeaks campaign as compared to
other traditional media?
• shespeaks about the product: how?– How much do members talk online versus offline?– How do online and offline conversations complement / substitute each
other?
• shespeaks about the product: who?– Is it possible to identify the members that will drive the success of the
campaign before the campaign starts? What are their characteristics?– Are the members that drive the success in one campaign likely to
drive the success in other campaigns?
How much does shespeaks about the product?
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Copyright © 2008 SheSpeaks, Incorporated
Full Page Ad with Coupon
Free Standing Insert (FSI)/Coupon
(1,200%)
(1,200%)
SheSpeaks program coupon redemption performed 1,200% better than both a full page magazine ad with coupon and newspaper coupon
Coupon Redemption RateVs. SheSpeaks ResultChannel
SheSpeaks Network
.9%
.7%
12% 1,200% better than Magazine
1,200% better than FSI
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Copyright © 2008 SheSpeaks, Incorporated
OPI Nic’s Sticks Program Results
Indicator
Sales per member
Result
Net Promoter Score
Conversations Generated
Total Sales
13 sales per member
220% increase
790,000
120,000 units
Total Incremental Revenue
$1,000,000
ROI 28%
Research questions: how much, how, and why?
• shespeaks about the product: how much?– What is the effectiveness of the shespeaks campaign as compared to
other traditional media?
• shespeaks about the product: how?– How much do members talk online versus offline?– How do online and offline conversations complement / substitute each
other?
• shespeaks about the product: who?– Is it possible to identify the members that will drive the success of the
campaign before the campaign starts? What are their characteristics?– Are the members that drive the success in one campaign likely to
drive the success in other campaigns?
How does shespeaks? Summary
• Most of the conversations happen offline
• Most members use multiple communication channels
• Online conversations are an “extension” of offline conversations
Although SheSpeaks members are highly online savvy and the program engagement is heavily focused on online, nothing trumps the in person
conversation
Most of the conversations happen online
Most members used multiple communication channels
• “How did you communicate with about Nic's Sticks?”– In person (90%)– Let them use my Nic’s Stick to see what they thought (48%)– Gave them Nic's Sticks coupons directly (47%)– Over the phone (43%)– Shespeaks discussion board (27%)– Sent a personal email to others (24%)– Another discussion board (13%)– Left coupons where people would see them/pick them up (11%)– Sent an email to a friend via SheSpeaks tell-a-friend tool (9%)– Wrote an entry in my blog (8%)– On a social networking site i.e. Facebook (8%)– Posted comment on a shopping website (i.e., beauty.com) (6%)
• Average: 3.32 different means of communication per member
Judged as MOST effective
Judged as LEAST effective
Online conversations are an extension of offline conversations
• Offline conversations happen no matter what…– 94% of the members used at least one offline mean of
communication
• … and may extend online– 54% of those who talk offline also talk online
• The more shespeaks offline, the more shespeaks online– Out of members who use only 1 offline mean of communication, 25%
talk online– This goes up to 48% for members who use 2 offline means of
communication, 64% for those who use 3, 78% for those who use 4, and 82% for those who use 5
• The most vocal members write entries on blog or post comments on shopping websites
– The members who posted an entry on their blog used an average of 5.7 additional means of communication, versus 3.0 for those who did not
– The members who posted a comment on a shopping website used an average of 6.3 additional means of communication, versus 3.1 for those who did not
Research questions: how much, how, and why?
• shespeaks about the product: how much?– What is the effectiveness of the shespeaks campaign as compared to
other traditional media?
• shespeaks about the product: how?– How much do members talk online versus offline?– How do online and offline conversations complement / substitute each
other?
• shespeaks about the product: who?– Is it possible to identify the members that will drive the success of the
campaign before the campaign starts? What are their characteristics?– Are the members that drive the success in one campaign likely to
drive the success in other campaigns?
Who speaks? Summary
• It is possible to identify some of the most active members before the start of the campaign
• The best predictors are the “social characteristics” of the members– Independent of the specific product and common across campaigns– “Social score” to predict activity across campaigns
• Product-specific characteristics (e.g., attitude towards the brand, nail polish usage) are not as good predictors of involvement.
Members’ social characteristics (collected when they join shespeaks)
About how many people do you talk to on a daily basis?Which best describes you socially? (very social , outgoing, somewhat social, independent)What did you do last time you found a product that you liked/hated? When you recommend products or services to friends, what do people usually do?In which of the following activities have you been involved in the past 12 months?
Attended a trade show or conferenceJoined a clubJoined an online user groupViewed an online news forumVolunteered my timeAttended a public meeting on town/school affairsWrote or called a politician at local/state/national levelServed on a committee of a local organizationWrote a letter to an editorAttended a political rally or speechForwarded a news article to someone elsePosted a product review online (e.g., Amazon.com etc)
Sent an email to a company regarding their product or service
Level of activity in the campaign is well predicted by social characteristics
• Measure activity by the number of coupons given to others
• Profile of the most active members:– Large number of social interactions– “very social” or “outgoing”– Call others to let them know about a product or post a product review online
if like a product (note: actions if hate a product do not predict behavior)– Recently sent an email or letter to a company or joined a club
• How large is the effect of social characteristics on the level of activity?
• Are these the largest drivers of involvement?
• How can we identify the most active members before the start of the campaign?
Assigning a “social score” to each member
• Regress number of coupons given to others on social characteristics
• Use regression coefficients to compute a score for each member
• Separate “top” members (score is in top 10%) from the rest
• Top members gave on average 3.7 coupons to others (out of 5), versus 2.7 for the other 90%
Who speaks more?
The most social members?
About how many people do you talk to on a daily basis?Which best describes you socially? (very social , outgoing, somewhat social, independent)What did you do last time you found a product that you liked/hated? When you recommend products or services to friends, what do people usually do?In which of the following activities have you been involved in the past 12 months?
The members that best “fit” the product?
How often to you wear nail polish?Have you ever used coupons from the following sources when purchasing nail polish?How familiar are you with the nail polish brand OPI?What is your opinion of OPI nail polish?How familiar are you with Nic's sticks from OPI?How likely are you to purchase Nic's sticks?How likely are you to recommend Nic's sticks?
OR
Assigning a “product score” to each member
• Same methodology as “social score”
• “Top” members” gave on average 3.3 coupons to others (out of 5)
• Compare to 3.7 coupons given by members with top “social scores”
• “Social” characteristics are better predictors than product-specific characteristics
Who speaks more?
The most social members?
About how many people do you talk to on a daily basis?Which best describes you socially? (very social , outgoing, somewhat social, independent)What did you do last time you found a product that you liked/hated? When you recommend products or services to friends, what do people usually do?In which of the following activities have you been involved in the past 12 months?
The members that best “fit” the product?
How often to you wear nail polish?Have you ever used coupons from the following sources when purchasing nail polish?How familiar are you with the nail polish brand OPI?What is your opinion of OPI nail polish?How familiar are you with Nic's sticks from OPI?How likely are you to purchase Nic's sticks?How likely are you to recommend Nic's sticks?
OR
What about other measures of activity?
Impact of being in top 10% in…
social score product score
Coupon given by member to others
+1.03 coupons +0.53 coupons
What about other measures of activity?
Impact of being in top 10% in…
social score product score
Coupon given by member to others
+1.03 coupons +0.53 coupons
Number of conversations about product
+13.14 conversations +6.71 conversations
What about other measures of activity?
Impact of being in top 10% in…
social score product score
Coupon given by member to others
+1.03 coupons +0.53 coupons
Number of conversations about product
+13.14 conversations +6.71 conversations
Number of forum posts +0.64 posts +0.39 posts
What about other measures of activity?
Impact of being in top 10% in…
social score product score
Coupon given by member to others
+1.03 coupons +0.53 coupons
Number of conversations about product
+13.14 conversations +6.71 conversations
Number of forum posts +0.64 posts +0.39 posts
Coupons used by member for herself
+0.18 coupons +0.44 coupons
Take-aways
• Viral marketing appears much more efficient than magazine advertising and FSI
• Most of the conversations about the product happen offline
• Online conversations are an “extension” of offline conversations
• It is possible to identify some of the most active members before the start of the campaign
• The best predictors are the “social characteristics” of the members– Independent of the specific product and common across campaigns– “Social score” to predict activity across campaigns
34Copyright © 2007 SheSpeaks, Incorporated
WOM & Brand AmbassadorsWOM & Brand Ambassadors
Targeted and Known Populations
Opt-In – Permission Based Marketing
Brand Engagement Builds Goodwill
Why Does it Work?