Piskorski-Seguros

© 2012 Mikolaj Jan Piskorski

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Follow me on Twitter: @mpiskorski

Associate Professor of Strategy and Richard Hodgson FellowHarvard Business School

Social Strategies in Automotive Industries

© 2012 Mikolaj Jan Piskorski

2,000,000,000+ internet users are very social

Social

Newspapers

Politics

Company website

0 20 40 60 80 100

Index of relative number of visits

Number of visits

© 2012 Mikolaj Jan Piskorski

And they are your customers!

15-24 25-34 35-44 45-54 55+0%

2%

4%

6%

8%

10%

12%

14%

16%

Women Men

Perc

enta

ge o

f soc

ial n

etw

orke

rs

© 2012 Mikolaj Jan Piskorski

And they are your customers in Chile too!

18-24 24-35 36-45 45-55 55-0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Male Female

Mill

ions

of u

sers

© 2012 Mikolaj Jan Piskorski

They love to look at other people, not companies…

Viewing pictures and profiles

79%

Adding content 8%

Adding/removing friends

8%

Email5%

© 2012 Mikolaj Jan Piskorski

They also love video and mobile…

• Video

• 80% of social platform users do this

• Average = 150 videos/month

• Men watch 2x as many videos as women do

• Mobile

• 40% global cellphone users have data access

• Primary activity: search + social networks

• 45% of Facebook traffic is mobile now

© 2012 Mikolaj Jan Piskorski

Social media is critical to car industry:Bought as a result of seeing content on social media

Automotive

Food

Financial services

Travel

Alcoholic beverages

Personal care

Healthcare

Nonalcoholic beverages

0 5 10 15 20 25

Percentage of social network users

© 2012 Mikolaj Jan Piskorski

Social is critical to automobile industry:People use social when they make decisions

• 80% of auto shoppers in US use Facebook

• 30% use it to make car buying decision

• 41% saw post and added a car to consideration

• 58% mentions new car purchase on Facebook

• What kinds of content matters to them?

• 60% will get advice from friends

• 60% will go to company page on Facebook

• 50% will go to dealership page on Facebook

© 2012 Mikolaj Jan Piskorski

Social is critical to automobile industry:They want to connect to brands and other drivers!

Discou

nts

Get a

dvice

Iden

tify

with b

rand

Custo

mer

ser

vice

Conne

ct to

oth

er c

onsu

mer

s0

10

2030

4050

6070

Food TravelFinancial services Cars

Pe

rce

nta

ge

of

res

po

nd

en

ts

© 2012 Mikolaj Jan Piskorski

Four steps to successful social strategy

Find your currentand future customers

Make their socialexperience better

Get them to tell their friends how great you are

Integrate socialtechnologies into

your business

© 2012 Mikolaj Jan Piskorski

Connect:Use a Facebook Page as your entry point

© 2012 Mikolaj Jan Piskorski

Connect:Ask your customers off-line to “Like” you

© 2012 Mikolaj Jan Piskorski

Connect: Ask on-line customers to “Like” youand use the power of social endorsement!

© 2012 Mikolaj Jan Piskorski

Engage:Content that makes their social experience better

• You are not a friend,

you are a brand• Research shows you

should stay on brand

• Use pictures and video

• 30% people search for

car after seeing a video

of it online

© 2012 Mikolaj Jan Piskorski

Engage:Content that makes their social experience better

• Get others to tell your

story• 60% people do not

believe stories that car

companies tell

• User generated content

• Volkswagen

• Ford Fiesta Movement

• Chevy Sonic

© 2012 Mikolaj Jan Piskorski

Engage:Typical economic outcomes for social campaigns

• Ford Fiesta• Some videos received 200,000 views – average 1,600

• 1st quarter name recognition at 42% of intending to buy

• Compare to 23% for Nissan Cube comparable

• 289,000 website visitors vs. 144,000 comparable

• 20% configured vehicle online

• 72,000 annualized test drives

• Cost them roughly $6 million

• $83 / test drive versus $300 average for the category

© 2012 Mikolaj Jan Piskorski

Influence:Get people to tell their friends how great you are

© 2012 Mikolaj Jan Piskorski

Influence:Get people to tell their friends how great you are

© 2012 Mikolaj Jan Piskorski

If you really want friends to influence others,you need to integrate into product experience

© 2012 Mikolaj Jan Piskorski

Integrate:eBay and GroupGifts

© 2012 Mikolaj Jan Piskorski

Integrate:eBay and GroupGifts

© 2012 Mikolaj Jan Piskorski

Integrate:eBay and GroupGifts

© 2012 Mikolaj Jan Piskorski

Integrate:eBay and GroupGifts

© 2012 Mikolaj Jan Piskorski

Integrate:eBay and GroupGifts

© 2012 Mikolaj Jan Piskorski

Integrate + Influence:eBay and GroupGifts

© 2012 Mikolaj Jan Piskorski

Integrate + Influence:Economic outcomes of integration campaigns

• Lots of happy people getting gifts• Average 4.2 contributors

• Economic benefits• Average ticket price increased 5 times

• 1 in 3 people signed up for a PayPal account

• Everyone returned to eBay four times

• How much did this cost eBay?• Fixed cost of technology, nothing in marginal costs

© 2012 Mikolaj Jan Piskorski

Use Facebook Platform•To get friendship data•To write to people’s profiles

To connect people to each other in ways

•They can’t connect on FB•Or in the off-line world

And get them to do tasks for you

•Such as advertising or providing inputs for free as they connect to others

Integrate + Influence:General prescription

How American Expressis growing market share

over Visa and MasterCard?

© 2012 Mikolaj Jan Piskorski

Use Facebook Platform•To get friendship data•To write to people’s profiles

To connect people to each other in ways

•They can’t connect on FB•Or in the off-line world

And get them to do tasks for you

•Such as advertising or providing inputs for free as they connect to others

Integrate + Influence:How to leverage this in car selling?

Want to be the 1st to test ride?

Use your Facebookto sign up for

exclusive previewtest rides…

And bring at least three friends!

And post this on your Facebook page to get your friends to

vote for you

© 2012 Mikolaj Jan Piskorski

Use Facebook Platform•To get friendship data•To write to people’s profiles

To connect people to each other in ways

•They can’t connect on FB•Or in the off-line world

And get them to do tasks for you

•Such as advertising or providing inputs for free as they connect to others

Integrate + Influence:How to leverage this in car selling?

Sign up if you already own

Come to serviceyour car

Post on-line discounts for your

friends to use

© 2012 Mikolaj Jan Piskorski

Four steps to successful social strategy

Start withFacebook Pages

Provide pics and videoand get others to do it

Get people to sharecontent with their friends

Make sharingcentral to your

business model

© 2012 Mikolaj Jan Piskorski

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@mpiskorski

More detail: http://bit.ly/SocialCarReport

Thank you!