value of social media and word of mouth by david wolff, fleishman-hillard
DESCRIPTION
Contact: David WolffTRANSCRIPT
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David Wolff@zapache
netherlands.fleishmanhillard.com/
The commercial opportunities of social media; think first, then act.
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The unpredictable power of social media
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Digital Influence Index > 1. INFLUENCIAL
> 2. RESEARCH & POSITIONING
> 3. SOCIAL NETWORKS & DECISION-MAKING
> 4. CONFIDENCE IN INFORMATION
> 5. PEER INFLUENCE VS STRANGERS
> 6. TWITTER & INFORMATION OVERLOAD
> 7. DIALOGUE VS SENDING
http://www.slideshare.net/FHamsterdam/report-digital-influence-index-netherlands
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> The importance of search engines and eWOM in decision-making
> Reputation or brand image? Silos and social media..
> What is the current state of the market,
are we ready for the next step?
> The value of content and conversation
> The real value of social media
> How do you organize your social media-activities?
> Social Media Checklist
What do I want to talk about?
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Reputation or brand image?
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Word of Mouth is nothing new
http://www.cluetrain.com/
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DIRECT
DEFINITE
VISIBLE
WOM = SUPERCHARGED!
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Reviews
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Reviews
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If it is on Wikipedia it is true..?
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Google Sidewiki:
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DEFINITE:
80% of all internet-users starts with a search
engine
20% of all queries are brand related
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Social Media?
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“Google isn’t a search engine, it’s a reputation
management system.”Clive Thompson, Wired
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18SOURCE: http://sncr.org/wp-content/uploads/2008/10/customer-care-study.pdf SOURCE: http://www1.emarketer.com/Article.aspx?R=1008019
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The necessity of social media for Customer Care
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Quick and cheap reach?
> Quicksilver video http://www.youtube.com/watch?v=6xfBNxNds0Q
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Oops…
22SOURCE: http://www.slideshare.net/socialmediainfluence/social-media-screw-ups
It can be worse: social media screw ups
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“They’ve made it so easy for us. Nestle just don’t seem to have a good understanding as to what happens on the social space.“
Tracy Frauzel, head of digital communications at Greenpeace
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Nestle: what went wrong?
> They should have seen it coming
> Not familiar with the dynamics of social media
> Poor community management
> No community guidelines
> Censoring of the logo, the video and the discussions that came into existence, without a policy.
> The impact of this story:– A negative case study
– A brand problem (long term)
– Criticism keeps coming
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Could Nestle have been prepared? > Monitor and know your ‘opponents’ > Anticipate! > Make sure you have a platform
– Besides existing social channels, also an ‘owned’ channel
– Make sure that you are prepared for a ‘paid’ strategic solution
> Select good community managers – Training
– Take care of a clear process & policy
– ‘Take the higher road’
> Make sure you have a community-policy> Continue to stay in dialogue.
– Make smart moves towards constructive subjects.
> Compose guidelines for social media
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BRAND
REPUTATION
SOCIAL MEDIA
SOURCE: http://www.briansolis.com/2010/12/the-best-of-2010-hybrid-theory-and-the-future-of-marketing/
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So…
> Word of Mouth is not new, but the impact has changed
> The directness and definite visibility have influence on the decisions made by consumer
> Search engines as reputation management systems
> Search engines play a key role in decision making
> From silos to social company: it is no longer possible to communicate from your silo without interfering with other silos
> Reputation or brand image: social media is where they connect
> The market seems to be ready for the next step..
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The value of Social Media
30SOURCE: http://www.communicatieonline.nl/nieuws/bericht/bedrijven-wensen-onderzoek-naar-effectiviteit-social-media/
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“..we run behind , our competitor also has a
Facebook Page…”
“..we need a Twitter-strategy…”
“..we want to raise our share in the conversation…”
“..Twitter is a great sales channel…”
SOURCE: http://www.slideshare.net/mixtmedia/social-media-for-government-32309-1185070
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From outside-in to inside-out
SOURCE: Social Media Piramide (© SocialMediaModellen.nl)
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Start with creating value:
BRAND:
CREATE VALUABLECONTENT
ACTIVATIONOF
CONTENT
ENGAGEMENTTHROUGH CONTENT
SOURCE: http://www.theconversationprism.com/
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Community management is key
SOURCE: http://nusum.wordpress.com/2010/06/14/what-makes-a-community-manager/
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SOCIAL CURRENCY
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The example of good content
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Which creates dialogue
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Brands as publishers…
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Why do people share information?
– Acknowledgement
– Attention
– Respect
– Approval
– Safety
– Identity
– Sense of belonging
> SOURCE; http://www.bijgespijkerd.nl/social-media/social-media-brengt-maslow-naar-de-massa
SOURCE:http://eatsleepsocial.com/2010/06/02/the-psychology-of-social-currency/#more-307
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The value of your Social currency
SOURCE: http://blog.stevesponder.com/how-valuable-is-your-social-currency
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It is about content, content, content..
SOURCE: http://www.marketingcharts.com/direct/overposting-drives-away-facebook-fans-16055/exacttarget-brand-unliking-on-fb-feb11gif/
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Value Exchange??
> SOURCE: http://blog.cmbinfo.com/press-center-content/bid/46920/Consumers-Engaged-Via-Social-Media-Are-More-Likely-To-Buy-Recommend
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SOCIAL BRAND VALUE
SOCIAL CURRENCY
CONVERSATION
INFORMATION
AFFILIATION
IDENTITY
UTILITY
ADVOCACY
INFORMATIONHow many feel they exchange fruitful information with others?
AFFILIATIONWhat share of your users has a sense of community?
ADVOCACYHow many act as disciples and stand up for your brand?
CONVERSATIONWhat share of your brand users recognizes and stirs buzz?
IDENTITYHow many of your users can identify with other users?
UTILITYHow many derive value from interaction with other users?
SOURCE: http://www.vivaldipartners.com/pdfs/Vivaldi_Partners_Social_Currency_US_Report_2010WEB.pdf
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Relation with premium pricing
SOCIAL CURRENCY
CONSUMERBRAND
BRAND LOYALTY
PREMIUM PRICING
SOCIAL CURRENCY
53% BRAND LOYALTY CAN BE EXPLAINED BY SOCIAL CURRENCY
CORRELATION 73%
SOURCE: http://www.vivaldipartners.com/pdfs/Vivaldi_Partners_Social_Currency_US_Report_2010WEB.pdf
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Advocacy vs Numbers
SOURCE: http://images.fastcompany.com/magazine/145/next-44-tech-currency-infograph.jpg
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Social context vs social presence
SOURCE: http://images.fastcompany.com/magazine/145/next-44-tech-currency-infograph.jpg
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Information value vs entertainment value
SOURCE: http://images.fastcompany.com/magazine/145/next-44-tech-currency-infograph.jpg
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Social currency for whom?
SOURCE: http://images.fastcompany.com/magazine/145/next-44-tech-currency-infograph.jpg
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Engagement is differentiating for brands
SOURCE: http://www.engagementdb.com/downloads/ENGAGEMENTdb_Report_2009.pdf
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Conversation: Gatoradefrom Community Management to Command Centers
SOURCE: http://online.wsj.com/article/SB10001424052748703466704575489673244784924.html
SOURCE: http://www.youtube.com/watch?v=InrOvEE2v38
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> 80% of the market is still in the experimental stage
> To make the next step there are two important mindshiftsnecessary
– Conversation (community management)
– Continuously create value (content strategy)
> From outside-in to inside-out is a big step for companies
> Social currency is the lubricant of social interaction: what value do you add as a brand for consumers to be able to interact
> Social currency is a must for brands on social media
> Engagement: involvement amongst consumers themselves is one of the powerful ‘drivers’ for brands
So…
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How?
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80% of the market is still in the tactical stage of social media
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The step from tactical to integrated…
SOURCE: http://www.socialmediaexplorer.com/social-media-marketing/social-media-strategy-learning-curve-and-framework/
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Social Business Analyses
•Map social media initiatives
•Analyze existing content
•Map of tracking systems
•Map social media objectives
•Etc,…..
Analyse
•Install cross disciplinary team
•Make sure of consensus
•Define joint objectives
•Etc ….
Collaboration•Create guidelines, protocols and
compliance
•Develop SM strategy
•Develop content strategy
•Develop measurement strategy
•Etc…
Develop
•Train directly involved employees
•Train the other employees
•Produce a toolkit and templates
•Etc…
Install
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Organize
SOURCE: http://www.altimetergroup.com/
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Organize: who decides?
SOURCE: http://www.altimetergroup.com/
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Organize: Roles & Responsibilities
Department CorpComm Marketing
Function
Brand & BusinessObjectives
Lead Lead
Digital Content Contribute Contribute
Digital Distribution Lead Lead
Listen, Respond & Engage
Lead, Two-Way, Public-Facing Conversations
*with Customer Care team
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Develop: Content strategy
SOURCE: http://www.ia-experience.com/
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Develop: Measurement strategy
ACTION
What actions if any has the target taken?
INFLUENCE
How we influenced perceptions & attitudes
of the target
ENGAGEMENTEXPOSURE
Who is interacting & engaging with our content? How and
where?
To what degree have we created exposure
to content and message?
Non-Financial ImpactPossible Financial
Impact/ROI
SOURCE: http://www.socialmediaexplorer.com/online-public-relations/the-digitization-of-research-and-measurement-in-public-relations/
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Issue-analysis
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Delete Policy
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Exit-strategy
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> Determine your position> Monitor> Organization-model> Roles & Responsibilities> Strategy > Content strategy> Measurement strategy> Exit strategy> Community management> Issue-management> Escalation process> Delete policy
Checklist social media
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> To get more value from your social media-strategy, you have to be well prepared and organized: from outside in to inside out
> Make sure of the integration of and consensus within silos
> A good content strategy is the basis of your social media-activities
> Make sure of a well integrated measurement strategy for different objectives and levels
> Standardize processes
So…
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> Social media moves through and effects all departments and layers of an organization
> A next step is only possible as a result of good organization and integration of silos and joint strategy
> For exchange value you as a brand have to create the right value for your specific target group
> The real value of social media is in good content, conversation and connected consumers through your brand
Think first, then act…
