social media and multichannel consumer

Confidential & Proprietary

Multi-Channel Customer Engagement


Baking new Brand X Recipe for Suzy’s party. She loves it

Day in the Life of today’s Consumer

Mom blogging Recipe Look Up Menu building Mom tweets

Mom-Blog

Planning Suzy’s birthday party. Looking for menu ideas for 10 kids.

Rep engages

Dietician responds Mom at grocery storeRep texting reply

Does it Contain gluten?

No ur good. Try Dirt Cupsdesert. Yum!

No ur good. For dessert try these http://tinyurl/uwc87s Yum!

I ‘m diabetic. R these ok?

Mom continues …

…ybe you would like to

Try Fluffy Sugar Free

Jello-O Pie instead . …

@mom Good luck w/recipe. My kids love it! Txt 57238 if u get stuck

Also click on this link for coupon http://tinyurl/uwc87s

Maybe Try Sugar Free instead. Here is the link to our recipe. http://tinyurl.com/cRT67v.

http://tinyurl/uwc87s




http://tinyurl.com/cRT67v



Clicks photo of item still looking for; buys online

Mom-Blog

Bday party big success http://twitpic.com/. New recipe was so easy see recipe @brandx site!

Speech Recognition & Customer Hold Messaging

Mom connected with IVR

Checks out website… clicks on icon to call

Mom checks out Mom blogs to 5,000 readers

I just want to talk to a person.

Bypass!

Join our Innovation

Community, to sign up…

Speaks with tech savvy Rep

Have you tried this recipe? I will send

you a coupon.

http://twitpic.com/z02o8



Mom & Rep enter chat session to locate product

Mom receives email … joins Innovation Community and more

Rep: Hi Mrs. MomMom: HiMom: I am looking for Golden Oreos MinisRep: I will take you to the Netgrocer website we can shop together. Mom: Thanks I will submit the orderRep: Have a nice day. Bye.

Receives text via Text Messaging Service

Video conference tomorrow

Leverage your most important asset to create strategic business advantage

Confidential & Proprietary5

Do consumers want engagement with brands?


What if… we looked at the business value differently?

6

Multi Channel Customer

Engagement

store

mobile social web

email

@Phone

WHY?VOC

WHAT CONSUMERS SAY? WHAT THEY DO? WHY THEY DO WHAT THEY DO? WHERE & HOW THEY DO WHAT THEY DO?

MORE CHANNELS

MORE ACCESS


2013 Trends in Customer Service & Contact Centers*

7

• Mobile• Social Media• Community-based service• VOC Analytics• Next Best Action• Proactive customer service• The Cloud• BPA• Cross-channel/Agile• Knowledge/Content Management

*Kate Legget – Forrester Research, September 2012


Social Media Trends


Agenda

Trends in the Market

Digital Fitness

Trends in Corporate

9


♦Global Media Consumption per Week

Media Consumption is Changing

Source: Carat

1900 1920 1940 1960 1980 2000 2020

100

80

60

40

20

0

2020: 80% of All Media Digital

2010: 66% of All Media Digital

2007: 50% of All Media Digital hours


Social Media Delivers Global Reach♦ Number of Social Network Users

Worldwide– 1.4 billion at the end

of 2012♦ Largest Social Networking

Region– Asia-Pacific, with

nearly 616 million users

♦ Country with the Most Social Network Users

– China, with more than 307 million in 2012, nearly double the number in the US

♦ Countries Where Social Networking is Growing the Fastest

– India and Indonesia, which will each see 50%+ growth in users this year

11

♦ Social Network Users Worldwide• Internet users who use a social network site via any

device at least once per month

2011 2012 2013 20140MM

200MM

400MM

600MM

800MM

1,000MM

1,200MM

1,400MM

1,600MM

1,800MM

2,000MM

493.5 615.9 745.6 853.7164.9

191.8215.9

236.9

163.9174.7

181.9189.2

139.0157.4

176.5192.7

111.1

148.5

183.0211.6

129.8

145.3

159.4

170.8

Asia-Pacific Latin America North America Eastern Europe

Middle East & Africa Western Europe

Source: eMarketer Feb-2012

1,202.2

1,433.5

1,622.4

1,854.7

23%

19%

16%

12%


Social Media is 24×7

12

• In a recent social media study for Nestlé's ice cream brands, it was discovered that the largest day segment for ice cream conversation occurs at prime time and the late night.

• These consumers tend to participate in Life Sharing activities such as “I’m watching my favorite movie while eating my favorite ice cream, Haagen Dazs!”.

• At other times of the day, topics such as Health are more prevalent (noon to 5).


Social Media PlayersUsers Typical User Profile Best For Secret Weapon

845+ million Largest segment is 21-24, followed by 18-20 year olds

Personal interaction Houses all information about your brand in one place

572+million 55% female 42% are 31-49 42% are 18-29

Monitoring conversations about your brand

Identify new consumers and engage with influencers

150 million 51% male 25–54

Networking and sharing professional accomplishments

Join groups and engage in Q&A

800+ million 18-34 70% outside US

Sharing videos and content partnership

In-stream ads

11 million >80% female Affluent 25-44

Images and photography Driving social media purchases

100+ million 70% male Leans towards

professionals

Starting conversations and adding people to it

Circles

80 million TBD Influencer Marketing Mobile78 million 18-44 Reviews Mobile


Paths toPurchase

• The root of the importance is more about the consumer than the media

Social Media is Pretty Important

Roles ofthe Consumer

Expectationsof the Consumer

RadioSocial Media DisplayTelevision Out of HomeDigitalPrint

PurchaseAssess MotivateParticipate

Quality ServicePrice Delivery Control


Social Media is the Consumer’s Ballpark♦ The Role of a Brand

• Brands are sometimes invited to:

15

♦ People Tend not to Trust the Brand• “When forming an opinion of a company, if

you heard information about a company from each person, who credible would the information?”

• (Percent responding “very credible” or “extremely credible”)

Gov't Official or Regulator

CEO

Financial or Industry Analyst

NGO Representative

Regular Employee

A Person Like Yourself

Technical Expert in the Company

Academic or Expert

0% 10% 20% 30% 40% 50% 60% 70%

20%

38%

46%

50%

50%

65%

66%

68%

Play

Watch

Umpire

Sell

Tailgate

Source: Edelman Trust Barometer Jan-2012


There is an Invitation…

16

• …brands start by listening

Key Question BrandSentiment

ConversationDrivers

Time of DayAnalysis

TopicAnalysis

InfluenceAnalysis

CompetitiveBenchmarking

How do consumers view my brand? +

What are the primary factors that influence the conversation?

+

What trends influence my engagement strategies? + + +

Who or where are our most valuable or influential customers?

+

What are my competitors doing? Am I winning? +


Agenda


Digital Fitness

Trends in Corporate

17


The “Moneyball” Approach to Winning

Right Metrics

Data Access

Supportive Management

Relentless Evaluation

Ruthless Efficiency


Building the Capability

19

Business Strategy

Social Media

Strategy

Social Media

PlanningListening, Monitoring & Reporting

Research & Insight Development

Measurement & Analysis

Consumer Engagement Community Management

Social CRM Social Commerce

Social Media Planning & Buying

Content Strategy & Planning

Communications Planning

Influencer & Advocacy Management


Understanding Social Ownership

20

Centralized

Decentralized

Hub & Spoke

Holistic

“Dandelion”

♦ Social Ownership is Typically Distributed Across the Organization

– Nearly half of companies report that social media efforts are either highly centralized or completely decentralized

♦ The Evolution of Social Business• “In which department does your core Social Media team

reside?”

Other

Digital

Social Media

Corp Comm/PR

Marketing

0% 5% 10% 15% 20% 25% 30% 35% 40%

5%

14%

14%

26%

40%

Base: 125 respondents with over 1,000 employeesSource: Six Stages of Social Business Transformation, Mar-2013


Social Media Maturity

BusinessTransformation

BusinessEffectiveness

BusinessEfficiency

3

2

1

Level

Level

Level

Inno

vate

Impr

ove

Lear

n

Social Objectives

Social Infrastructure

Level 3 Business Integration Strategic business goals and ROI

measurement Executive leadership Social governance Enterprise applications

Valu

e

Level 2 Focus Common engagement solutions Live access to social data via BI Dedicated team and/or COE Establish enterprise architecture

Level 1 Focus Common listening tools and processes Weekly or monthly reporting Emerging team

Level 3 Focus Enterprise platforms Data integration Policy and procedure Enable flexibility & agility Innovation & value

Level 1 Assess and Learn Social Understand channel usage Assess the conversation Count mentions and sentiment

Level 2 Engagement Amplify the good and address consumer

issues Drive purchase considerations Improve customer satisfaction


Data

Analytics

Organization

Process

Audit data sources Integrate and standardize data from multiple media Collect market research and brand studies

Clearly define all business objectives Determine KPIs Define analytic methodology/needs

Identify social/analytic champion and owner Identify system and technology inputs Collaborate across consumer relationship, media, analytic and

research functions

Audit planning processes Collaborate across data and analytic functions Assess reporting process

Typical Next Steps


Agenda


Digital Fitness

Trends in Corporate

23

24

Achieving Business Objectives:In and With Social MediaValue Creation In Social Value Creation With Social

Improve customer experience & relationships Planning Generate better brand and consumer insightsImprove performance Performance Measure and analyze brand healthOptimize customer value Optimization Optimize media spend & marketing programsCollaborate with customer Innovation Drive new products and services


Improve Customer Experience and Relationships IN Social Media

PLANNINGService Level

PERFORMANCEROI

OPTIMIZEConsumer Lifecycle

PLANNINGBrand and

Consumer Research

Integrated Reporting and Analysis

Problem Recognition Information Search

CompetitiveEvaluation

Purchase Decision

Post-Purchase

Social media plays a very different role based on where the CPG consumer is in the purchase funnel

A recent ARF study, found that consumers in grocery are most likely to get information from brand/company websites. However, social media sources (highlighted in green) play the more predominant role.

Friends/followers on social networks

Fan/brand pages on social networks

Blogs

Comparison-shopping sites

Search engines

Reviews: profession/expert

Reviews: consumer-generated

Brand/Company website

Online-only retailer

Other retail websites

Video websites

Online advertising

Daily-deal sites

0% 10% 20% 30% 40% 50% 60%


Improve Customer Experience and Relationships IN Social Media


PERFORMANCEROI


PLANNINGBrand and

Consumer Research


Social media plays a very different role based on where the CPG consumer is in the purchase funnel

CompetitiveEvaluationProblem Recognition Information

SearchPurchase Decision

Post-Purchase

43%

51%

And 37%…use online forums to sort out a problem with a product or a service

And if you account for age… 52% of customers 16-24 use online forums.

Avaya and BTThe Autonomous Customer, 2012

Also, when a consumer requires support or product advice, they prefer digital methods and only call about more complex issues

Further, about half of consumers trust online customer forums than a brand website.



PERFORMANCEROI


PLANNINGBrand and

Consumer Research


Improve PerformanceIN Social Media

Before 2010The Talking Heads

2011 – 2012Big Data

2013Accountability?

Volume • Turn 12 terabytes of Tweets created each day

into improved product sentiment analysis?

Velocity• Sometimes 2 minutes is too late?• Analyze 100 million daily call detail records in

real-time to predict customer churn faster?

Variety• Integration text, sensor data, audio, video,

click streams, log files and more?

Veracity1 in 3 business leaders don’t trust the information they use to make decisions.

“41% of more than 1,000 companies and agencies surveyed had “no return on investment figure for any of the money they had spent on social channel as of October 2011.”

eConsultancy, State of Social Report, November 201



PERFORMANCEROI


PLANNINGBrand and

Consumer Research


Improve PerformanceIN and WITH Social Media

Notional Correlation and Metric Analogs

Surveys or Multivariate Testing Advanced Analytics

DescriptionA template provides all relevant value and cost line items, users enter data based on limited analysis and general experience

Historic social data is analyzed and correlated to generally accepted media metrics

Consumers and tactics are segmented. A survey provides insights about purchase behavior. An analysis of media spend, digital media performance and sales data provides model coefficients to score segments based on value.

Individual-level models through attribution modeling, transactional analysis and media weighting to provide real-time Fan valuation

Valuation LevelBroad Segments Consumer Segments Consumer Segments Segments to Individuals

Strengths • Very easy to complete

and low cost• Provides a basic “proof

point”

• Reasonably easy to complete• Connects volume-metrics to

understand and quantify relationships

• The value of an “incremental consumer” is quantified

• May be leveraged for more advanced solutions

• Segment value• Accurate and precise

understanding of value• Highly actionable for

communications planning and campaign development

• Can provide weekly update and understanding

• Highly accurate and precise understanding of value

• Highly actionable including real-time decisioning

Weaknesses• Only averages• Too imprecise to make

actionable marketing decisions

• Likely a temporary solution as media use expands

• Requires 12+ months of data from multiple sources

• Does not account for all consumer segments

• Requires data from multiple sources, sometimes difficult to secure

• Data may require significant cleansing

• Surveys may need to be longitudinal

• Requires data from multiple sources

• Data may require significant cleansing

• Solution may provide too much functionality



PERFORMANCEROI


PLANNINGBrand and

Consumer Research


Optimize Customer Value WITH Social Media

AdvocacyAwareness Engagement

Brand Profiles

Listening

Followers Page Views Views

Re-tweets Replies Interactions Subscribers

Fans Likes Value

Creation and

Segment Analysis

Mentions Share of Voice

Posts Length Sentiment

Positive Mentions

Manage Influence

Improve Brand Health

New Registrations

Customer Acquisition

ROI



PERFORMANCEROI


PLANNINGBrand and

Consumer Research


Generate Better Brand and Consumer Insights WITH Social Media

• Social media has the potential to reveal the consumer’s emotion at each phase of the purchase cycle

♦Emotions at Each Purchase Stage



PERFORMANCEROI


PLANNINGBrand and

Consumer Research


Achieving Business Objective IN and WITH Social Media

♦ Social Reporting• Monthly reporting of brand mentions and sentiment,

important topics, key influencers♦ Performance Reporting

• Monthly to quarterly reports that quantify business objectives through KPIs built on media metrics

♦ Advanced Reporting• Advanced analytics to quantify contributing factors to

KPIs, effect of spend and relationship between KPIs and value

♦ Performance Dashboard• Performance media reporting delivered through a dynamic

dashboard♦ Analytic Platform

• In addition to the Dashboard functionality, advanced analytic tools to optimize and manage the tradeoffs that impact KPIs (e.g., media spend) and value (e.g., ROI)


Summary

Value Creation

Data Analytics

OrganizationProcess


Which Are We Doing?♦ Trade Baseball Cards

33

♦ Win Championships

Right Metrics

Data Access

Supportive Management

Relentless Evaluation

Ruthless Efficiency

social media and multichannel consumer

Business

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