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This thought piece, authored by strategists from the Proximity network and presented by Digital Lab, examines the empirical need for social media investment by brands and explores the frameworks for measuring the efficacy of marketing campaigns in the space.
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ROSI: Return on Social Investment
1
Table of contents
The Necessity of Social Investment 2
Future Shock 3
The Advertising Anachronism 4
The Limitations of Social Media 6
•Intheageofsocialmedia,youdonotcontrolyourbrand 6
•Socialmediaisnothingbutatool 7
•Thevalueoffansisdebatable 8
•Advocatesarehard-won 8
•Socialmediarequiresbasicmathskills 9
•Word-of-mouth(WOM)isnotacure-all 10
•Socialmediawillcostyou 11
Measuring the Effects of your Social Media Efforts 12
Social media measurement is immature 13
A framework for measuring social platforms 14
Measuring individual engagement 16
The payoff of measuring engagement 19
Being pragmatic about Social Investments 20
Losing control 22
So what’s the difference? 22
In practice 24
Takeaway Tweets 26
2
The Necessity of Social Investment
3
Future Shock
Whenitsuddenlystrikesyouthatthecultureischangingsofastitfeelsforeigntoyourown,
yougointoshock.It’saverypeculiarkindofshockwhichiscalled‘cultureshock’.
Thiskindofshockhasalsobeenreferredtoas‘futureshock’forsometimenow.Italso
happenstobethetitleofaveryinfluentialbookbyhusband-and-wifefuturistsHeidiandAlvin
Toffler,whointroducedthephenomenon.‘Futureshock’waspromptlyaddedtothe
lexicon,aswerethewords‘informationoverload’and‘prosumers’.Andincaseyoumay
bewonderingwhoquoted‘Changeistheonlyconstant’,well,theydid.In1970.
Whatiswrongwithusadvertisersandadvertisingagencies?Arewesufferingfrom‘future
shock’?Because,fortyyearslater,westilldon’tseemtounderstandthattheoldrulesdon’t
applytothefuture.
‘Futureshock’isprobablytheonlyplausibleexplanationforthisverypersistentphenomenon
we’dliketocall‘theadvertisinganachronism’.
4
The Advertising Anachronism
Lookaroundtodayinanyrandomlychosenadvertisingagencyormarketingcommunications
department.Compareittothewayofworkingin‘MadMen’andthemostfundamental
differenceyouwillnoticetodayisthepresenceofcomputers.Apartfromthat,basically
nothingmuchhaschanged.Howcome?
Well,noconsumereverdiedasadirectresultfromout-of-syncandinefficientmarketing
communications.
“Onceinfrontofascreen,beitadesktop,laptop,orincreasinglyahandhelddevice,
we‘login’–notintoasystem,butintoacommunity.”
5
Thisisnotaquotefrom‘FutureShock’.Itisnotaquotefromamarketingcommunications
handbookeither.Thequoteistakenfrom“War2.0,IrregularWarfareintheInformationAge”
byThomasRidandMarcHecker.
Thearmy,asopposedtotheadvertisingworld,isnotsufferingfrom‘futureshock’.Thearmy
doesnotadheretoabeliefofhowtheworldworkswhichpreventsonefromseeinghow
theworldreallyworks.DanielKahneman,NoblePrizewinnerinEconomics,callsthiseffect
‘theory-inducedblindness’.
Whynot?Deadsimple:youwouldsurelybekilledifyoudo.
Onceinawhile,acompanywhichadherestoacertainbeliefofhowtheworldworksrunsa
campaignthatsaysonething,whiletheiractionsarequitetheopposite.Andonceinawhile,
theseactionsdocauseharmandmakepeoplesuffer.
Whenthishappens,thecompanylearnsinnotimehowtheworldreallyworks.Howconsumers
who,justlikeinsurgentsinwarfaretodayhaveaccesstoveryaccessiblemeansof
communicationsandcheaptechnology,caneasilybringanyhugecompanytoitsknees.
6
The limitations of social media
In the age of social media, you
do not control your brand.
AskComcast,Domino’sPizza,Toyotaor
GAP.AskBP.
Afterthesecompaniesexperiencedthis
firstandforemostlimitationofsocial
media,theyacquiredsocialmediaskills
andlearnedtousetheseverysame
accessiblemeansofcommunicationsand
cheaptechnologytotheirbenefitremarkablyfast.
BPprovedthatyoucannotpromisetheworldthatyourcompanyisallaboutrenewable
energy(“BeyondPetroleum”)andheavilyunder-deliveronthatpromise(whileheavilyover-
deliveringonpetroleumintheGulfofMexico).
BPprovedthatbrandingtodayisafundamentallydifferentgame.Agamewherethevalueof
anyelaboratecampaignisreducedtozeroinasnapifyourmessageisuntruthful.Ifitisall
wordsandnoaction…
Becauseintheageofsocialmedia,consumerswillgiveyouexactlywhattheythink
youdeserve.
“ In the age of social media, you do not control your brand.”
7
Social Media is nothing but a tool.
Themisunderstandingthatquiteoftenprevailstodayisthatwhenyouthinkyouareactually
practising‘socialmediamarketing’youaremerelypractising‘socialmediacheckmarketing’.
DoIhaveaFacebookFanPage?Check.DoIhaveaTwitteraccount?Check.DoIhavea
blogandachannelonYouTube?Check.Check.
Ifthisiswhatyoursocialmediamarketingplanlookslike,don’tevenbother.Itwillmost
certainlybetonoavail.Whatyoufirstneedisastory.Astorybasedonfacts.Andifthefacts
areallwrong,youwillhavetofirstironoutthisproblem(rememberBP).
Ifyou’rereadytotellyourstory,thendefinitelydoso.Ifyoudon’t,somebodyelsewilldoitforyou.
8
The value of fans is debatable.
Advertiserswhoaremorefamiliarwithtraditionalmediaoftenareextremelycriticalwith
regardstosocialmedia.Whereastheoreticalvalueswithregardstotraditionalmedia
(whicharesometimesseriouslyflawed)aremetwithamuchlesscriticalattitude.Thatbeing
said,thevalueofafan(ora‘liker’intoday’sterms)isattheveryleastdebatable.
Fansandfollowerscomparebesttowhattraditionaladvertisingcalls‘eyeballs’,‘traffic’,
‘targets’or‘potentialreach’.Theyare‘thepeopleformerlyknownastheaudience’.Theyare
howevermorevaluable:theyhaveknowinglyclickedabuttonwhichsaid‘like’or‘follow’,
designatingthattheyareinterestedinyourbrandandwanttohearfromyou.
Ontheotherhand,clickinga‘hide’buttonisjustaseasy.Andnoteveryoneisawareofeach
andeverypost.So,evenifyouhaveahugenumberoffansandfollowers,youmaystillbe
talkingtoanimaginaryaudience.
Althoughthisstilltrumpscommercialswhicharemoreoftenthannotasignaltohurryto
thebathroomorstarttime-shifting,itisnotmerelythefansandfollowersyoushouldbeafter.
Asanadvertiser,youshouldbepredominantlyoccupiedwithgoingaftertheadvocates.
Advocates are hard-won.
AccordingtoMcKinsey,consumershavebecomeoverloadedandincreasinglysceptical
abouttraditionalcompany-drivenadvertisingandmarketing.Theyincreasinglyprefertomake
purchasingdecisionslargelyindependentofwhatcompaniestellthemabouttheirproducts.
Thisiswhereyouradvocateswillmakethedifference.
Wordofmouthis–andalwayshasbeen–themostpowerfulformofmarketing.Itisthe
onlyformofmarketingthatcanmakeaconsumerchangehismindcompletelyorevenmake
consumersconsiderbrandstheywouldneverhaveconsideredotherwise.
Butwhendoconsumersstarttalkingactivelyaboutyourproductorservicetotheirsocial
networks?Whendotheybecomeyouradvocates?There’sonlytwooccasions.Eitherwhen
9
youover-deliverandgivethemabetterexperiencethanexpected.Orwhenyouunder-deliver
andgivethemaworseexperiencethanexpected.Whatyouhavetodoisassimpleasitis
hard:youhavetoover-deliverinorderforpeopletostartsharingpositivenewsaboutyour
brandwiththepeopletheysociallyengagewith.
‘Social media’ requires basic math skills.
AccordingtoMcKinsey,“word-of-mouthequity”isanindexofabrand’spowertogenerate
messagesthatinfluenceaconsumer’sdecisiontopurchase.Word-of-mouthequitybasically
isaformula:volumetimesimpact.
Volumeiseasyenough:aretherefewormanymessagesthatmayinfluencemy
purchasedecision?
Impactissomewhatmorecomplexanddeterminedbythefollowingfactors:
• Where:messagessharedwithinaclosedortrustednetworkcreatemoreimpact
comparedtomessagessharedwithinalargeordispersednetwork.
• What:ifthemessageaddressesimportantproductorservicefeatures,itismorelikely
toinfluenceconsumerdecisions.
• Who:isthesenderatrustedpersonandishe/sheinfluential?
• Source:isthemessagebasedonone’sownexperienceoronhearsay?
ResearchbyMcKinseyshowedthatahigh-impactrecommendation–fromatrustedfriend
conveyingarelevantmessageforexample–isupto50timesmorelikelytotriggera
purchasethanisalow-impactrecommendation.
From“Anewwaytomeasureword-of-mouthmarketing”,McKinsey
“ Marketers tend to build campaigns around emotional positioning, yet we found that consumers actually tend to talk – and generate buzz – about functional messages.”
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WOM is not a cure-all.
Onecanneverarguethatwhatiswrongisright.Ifyourproductorserviceisnotuptopar,
crossoutanybudgetyou’respendingonmarketingcommunicationsanduseittogetyour
acttogetherfirst.
Thebestwaytoeradicateabadproductorserviceistoadvertiseit.Andthisiscertainly
truetoday:consumerstrustanonymouspeersmorethantheytrustadvertisers.Systematic
negativeword-of-mouthwillputastoptoyourbusiness.
Butwhatcanpositiveword-of-mouthdoforyou?Well,thereareallkindsofword-of-mouth
—andthesearetheonesyoushouldunderstand.
• Experientialword-of-mouthresultsfromaconsumer’sdirectexperiencewithaproduct
orserviceifthatexperiencedeviatesfromwhat’sexpected.
• Consequentialword-of-mouthoccurswhenconsumersdirectlyexposedtotraditional
marketingcampaignspassonmessagesaboutthemorthebrandthey’republicising.
• Intentionalword-of-mouthise.g.whenmarketersusecelebrityendorsementstotrigger
positivebuzzforproductlaunches.
From“Anewwaytomeasureword-of-mouthmarketing”,McKinsey
“ To turn consumers into an effective marketing vehicle, companies need to outperform on product and service attributes that have intrinsic word-of-mouth potential.”
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Social media will
cost you.
Ifyoustayawayfromsocial
media,itwillcostyou.
RememberBP:ifyoudon’t
tellyourstory,somebodyelse
willdoitforyou.Butgetting
involvedwithsocialmediawill
costyouaswell.Andthere
arethreewaysofinvestingin
socialmedia.
Investmentinculture
Socialmediaisallabouttrustandengagement.Ifyoubuildyourcompanyonthesepillars,
yourfirstandbestadvocateswillbeyouremployees.Asoftoday,thepeoplefromZappos
havenotspentonedollaronmarketingcommunications.Theyhaveafire-and-hirepolicy
basedonthecompany’scorevalues.AndtheyhavemadeZapposacompanywhere
everyonewins:company,employeesandcustomers.
Investmentingoodideas
Youdon’thavetobeCoca-Colatocomeupwithagoodideaeveryonestartstalking
about(‘TheHappinessMachine’).Albion’sOven,aLondon-basedbakery,startedsending
automatedtweetswheneversomethingabsolutelytastyhadjustbeentakenoutoftheoven.
That’stheonlymarketingiteverneeds.
Investmentindata
Nomatterwhatyourcompanydoesyoushouldstartseeingyouractivitiesasan
‘information-basedservice’.Youhavetogettoknowyourcustomersifyouwanttobe
abletodeliverthemabetterexperience.Itis‘betterexperiences’thatwillturneachand
everyoneofyourcustomersintoadvocates.
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Measuring the effects of your Social Media efforts
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Social media measurement is immature
Marketinginvestmentinsocialmediaisincreasing,yetmarketerscontinuetostrugglewith
themethodologiesforvalidatingtheseinvestments.Alotofexcitementaccompaniesthe
developmentofsocialmediamarketingideasbecausethemajorityofmarketersandagency
representativesprefertoworkwiththeircreativeright-brainfunctions.However,weneedthe
decidedlylesssexyleft-brainanalyticsskillstomeasureandproveROI.Justlikeanyother
medium,measuringtheeffectsofsocialmediaisacriticalcomponenttosuccess.
Socialmediameasurementisquiteimmature,justaswebanalyticswasafewyearsago.
Todeterminehowcapablemarketersareatmeasuringtheresultsoftheironlinedirect
response,brandingandsocialmediacampaigns,wesurveyedalmost100Belgianmarketers.
Whenaskedtoranktheirmeasurementcapabilitiesonascaleof1to3where1isnoviceand
3isexpert,wefoundthatmarketersconsiderthemselvestobe(cf.Figure1):
• Bestatdirectresponse.Marketersratetheirabilitytomeasuretheeffectofdirect
responsecampaignsatanaverageof1.29outof3.Notsurprisingconsidering
marketershavemoreexperiencewithdirectresponsetoolslikeemailandpaid
searchescomparedwithneweronlinetoolslikeonlinevideoorblogs.
• So-soatbrandmarketing.Belgianmarketersarealittlelessconfidentwhenitcomesto
measuringbrandcampaigns,averaging1.05outof3.
•Novicesatsocialmedia.
Marketersratedthemselves
theleastmaturewith
measuringsocialmedia
effortsat0.85outof3.We
findthisaverageambitious
comparedtotheothertwo
disciplines,consideringthat
socialmediaisonlyafew
yearsold.
Figure1
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A framework for measuring social platforms
Theonlinemarketerisoverwhelmedbythenumberofmetricsavailablethrough(free)web
analyticssoftware.ManyofthesemarketerssufferfromtheGoogleAnalyticssyndrome:
“measureeverything”.Justbecauseyoucanmeasuresomething,doesn’tmeanyoushould.
Infact,theamountofavailableonlinedatacanparalysemarketerswhotrytotrackitall.
It’sbettertofocusonasmallsubsetofmetricsthataligncloselywithclearly-definedbusiness
orcampaigngoals.Notallmetricswillbeequallyrelevanttoallmarketers;notallmetricsare
equallyrelevanttoallcampaigns.
It’snotsurprisingthatmarketershavesomuchtroublemeasuringsocialmediawell.Every
socialplatformandvendoroffersitsownmetrics,andthereareliterallyhundredsofwaysto
measurethesuccessofsocialinitiatives.
“ Just because you can measure something, doesn’t mean you shoulD.”
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Wecaneasilyclassifyallavailablesocialmediametricsintofourcategories:
Userreachdescribeshowfarandwideyourmessagesspread.
Volumeofparticipationdescribeshowmanyconsumersinteractwithyoursocial
initiatives.
Userimpactdescribeshowyoureffortschangeconsumers’actionsoropinions.
Qualityofparticipationdescribesthestrengthanddepthofconsumers’interactions
withyoursocialinitiatives.
Measuringuserreachiseasybutimperfect.It’ssoeasy,infact,thatit’sthemostusedmetric.
CountingFacebookfans,Twitterfollowers,andblogfeedsubscriberscanallgiveyouinsight
intohowmanyconsumersyou’rereaching.Butkeepinmindthatnoteveryonewhofollowsor
likesyourbrandinsocialmediawillseeeverymessageyoupost.Click-throughratesonthe
linksyoupost—asmeasuredthroughtraditionalwebanalytics—cantellyouwhatportion
ofyoursocialmediaaudienceareeffectivelyreached.
Volumeofparticipationtellsyouhowengagedconsumersare.Thenumberofcommentson
yourblogposts,thenumberof@repliesyoureceiveonTwitter,andthenumberoflikesand
commentsonyourFacebookfanpagequantifyhowmanyconsumersareinteractingwith
yourefforts.Butasmuchassomemarketersfixateonthiscategory,it’snotthebestwayto
measuresuccessforanyofyoursocialmediaobjectives.
Bothfore-mentionedquantitativemetricsshouldbecomplementedwithqualitativemetrics
toassessthefullimpactofyoursocialmediainvestments,suchasuserimpactandqualityof
participation.
Whenmeasuringuserimpact,youmightlookforreturningvisitorspermonthoractive
visitorspermonth,whichgiveanindirectindicationofuserimpact.Ifdirectresponseisyour
mainobjective,conversionssuchassubscriptions,leadsorsalesderivedfromyoursocial
initiativesshouldbeyourfocus.Andifyou’rehopingtomakeabrandimpact,anonline
surveyisstillyourbestoptiontomeasuretheeffect.Perhapscomplementedwithsentiment
trackingvialisteningplatforms,asurveyisthebestwaytofindoutifyourfollowers,
subscribersorfansaremoreeagertopurchasefromyou,ortoreferyourbrandtotheirpeers.
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Qualityofparticipationisasubjectivemetric.You’llknowhigh-qualityparticipationwhen
youseeit.Insupportforumsitmeansyourcustomersaresatisfiedandsupportcallvolume
drops.Whileinuserinnovationinitiatives,itmeansyouhavelotsofgreat,newideasinyour
developmentqueue.Likewise,ifthevideoentriesyougeneratefromacontestaregood
enoughtouseonyourwebsiteoronTV,thenyou’vesucceeded.
Tohaveaholistic
viewoftheimpact
ofyoursocial
platform,itisbest
tomeasureacross
bothaxes:quality
vs.quantityand
usersvs.usage.
Thisrequiresaset
ofmeasurement
toolsandmetrics
thatgobeyondthe
onesprovidedbythesocialplatformitselfsuchasfocusgroups,onlinesurveysandsocial
listeningtrackingsystems.
Measuring individual engagement
Theabove-mentionedframeworkstillonlymeasuresfirst-degreeimpactofsocialplatform(s):
i.e.theparticipationvolumeandqualityoftheuserspresentontheplatforms.Itdoesnotyet
measuretheall-encompassingimpact,takingintoaccountthereachandinfluenceoftheseusers.
So,howcanwemeasuretheimpactofyoursubscribers,followersorfansandtheir
interactionswithyoursocialinitiativesonothers?Theanswerliesperhapsbyputtingthe
individualatthecentreofthetwoaxes.
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Engagementmeasurementencompassesquantitativeandqualitativemetrics.Itcomprises
concreteindividualmetricsfromwebsitevisitsandonlinepurchasestothesofterinsights
frombrandawarenessstudies,sentiment,loyalty,andadvocacy.
Forrester’sdefinitionofengagementis:
Engagementisthelevelofinvolvement,interaction,intimacyandinfluenceanindividualhas
withabrandovertime.
Fourcomponentsmakeuptheengagementframework—thefourI’s:
• Involvement—thepresenceofapersonatvariousbrandtouchpoints.Metricsincludewebsite
visitors,timespentperpage,andpagesviewed.Themaindatasourceiswebanalytics.
• Interaction—thesocialactionspeopletakewhilepresentatthesetouchpoints.Metrics
includecomments,reviews,ratings,uploadedphotosorvideos,etc.Datasourcesinclude
mainlysocialmediaplatforms.
• Intimacy—theaffectionoraversionapersonholdsforabrand.Metricsincludesentiment
measurementinblogposts,blogcomments,discussionforums,etc.Datasourcesinclude
brandmonitoringservices,surveyresponses,etc.
• Influence—thelikelihoodapersonistoadvocateonbehalfofthebrand.Metricsinclude
NetPromoter,satisfactionratings,forwardedcontent,etc.Datasourcesincludemarket
researchservices,surveys,webanalytics,etc.
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Measurementofindividualengagementiscomplex.Andrequiresasetoftools:
Themostfundamentaltoolrequiredisacentralcustomerdatarepositoryprovidinga
consolidatedviewofanindividualcustomerorprospect’srelationshipwithyourbrand.
Analyticstoolsworkoffthiscentraldatabasesuchaswebanalyticstomapindividual
research,browseandpurchasebehaviour.Butonlineisn’tjustabouttransactional
relationships.Consumersuseyoursocialchannelstosharefeedback,createand
distributecontentandbroadcastopinions.You’llneedmoresophisticatedmonitoring
toolsbeyondtraditionalwebanalyticstocapturethistypeoffeedback.
Socialmonitoringtoolshelpmarketerstounderstandhowconsumersperceiveand
interactwiththebrandinchannelsnotcontrolledbymarketers.Consumershave
numerousvenuesoutsidetheorganisation’scontroltovoicetheirattitudesand
preferences.Thesetoolscollect,organiseanddeliverinformationonthestrengthand
typeofconsumersentiment.Thisallowsmarketerstoanswerimportantquestionslike:
“Whatareconsumerssayingaboutus?”or“Who’sinfluencingtheirpeersinapositive
ornegativemanner?”
Finally,theoften-neglectedbututterlyinvaluablecustomersurveys(satisfactionsurvey,
brandresearch,etc.)areextremelyimportantinprovidingadditionalinsightintobrand
affinityandinfluenceofcustomers.Andtogetacompletepictureofthestateofthe4I’s
atanindividuallevel.
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The payoff of measuring engagement
Measuringengagementisnotaneasytask,andmeasurementvendorsdon’tyetprovide
unifiedservicestohelptieitalltogether.Togetstarted,you’llneedtotakethefirststeps
alone.Butconsiderthepayoffofyourhardwork.You’llbeableto:
• Gainmuchdeeperinsightintocustomerbehaviourandbeliefs.Andtranslatethis
insightintomarketingstrategiesthattargetcustomersegmentswithmorerelevantand
persuasivemessagesandinnovativeproducts.
• Measureandlearnfromthingsyoucurrentlyignore.Qualitativemetricslikefeelings,
affinityandsentimenthistoricallyhavebeendifficulttotrack.Butsocialmediamakes
iteasierforcustomerstooffertheiropinion,andasaresult,allthatdataissittingout
therewaitingtobemined.Bytrackingcommentaryindiscussionforums,you’llget
insightsthatnosurveywouldeverdetectsincetheycomestraightfromthemindsof
thecustomers.
• Identifycustomerswhoinfluenceotherstobuy.Apersonwhocontributescontent,
suchasaproductrevieworavideooftheproductinuse,maybefarmorevaluable
thantheaveragepurchaser.Asaresult,yourideaofwhoyouwouldconsiderthemost
valuablecustomerwillchange.Identifycustomerswhomakesignificantproductreviews
thatinfluenceotherpeoples’purchases,andtheninitiateprogrammestoencourage
thesecustomerstocontributemorecontent.Thiswillbecomeyourfocus.
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“TheWhirlpoolcase:Twitteruser@doocecomplainsaboutherMAYTAGwashingmachineafteracustomerserviceagenttellsher itdoesn’tmattershe’sgot1.5+millionTwitterfollowers.”
Being pragmatic about Social Investments
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Let’simagineforasecondthatyou’vedecidedsocialmediashouldbeapartofyour
communicationsstrategy.Youcreatedpolicies,boughtmonitoringsoftware,hiredasocial
mediaexpertandthoroughlydiscussedandoutlinedallpossiblescenarios.You’rereadyto
enterthepromisingworldofsocialmediaconversations.
Andyet,youaren’t.Inasmuchasyouhavealltheprocessesdefined,ultimatelyit’supto
thecustomertodecidewhatisgoingtohappen.Youcanprobablyalreadyguesswhatthis
means.HewilllikelystumbleuponaproblemonanearlySundaymorning,trytocontact
yourcustomersupportserviceandfindoutitisonlyopenedduringofficehours.Thisiswhen
hestartstosharehisproblem(andfrustrations)withhisonlinefriends,followersandthe
worldwideweb.
It’saproblemwe’vehadtodealwithinthepast—beforeonline/socialmedia—aswell.
However,astheconsumerdoesn’thavethemeanstosolvetheproblemwithanyoneelse
butus,wemanagedtoteachhimtorespectourrules(ourofficeopeninghours,expensive
phonenumber,etc.)andthuscallusonMondaymorning.AnentireCustomerRelationship
Management(CRM)businesswasbuiltaroundthisidea,makingitaseasyaspossiblefor
companiestomanageinteractionswithcustomers,prospectsandsuppliers.
Abrilliantideareally,thatonlyrecentlystartedtoshowsomeweaknesses.Theadventofthe
internet—andsocialmediainparticular—allowedthecustomertoentirelycircumventthe
company.Henowhasaccesstoawiderangeoftoolstogetintouchwithothercustomers,
askthemaboutanythinghewantstoaskandcomplainaboutanythinghefeelsyou,asa
brand,didwrong.Moreover,“customers”arenolongeronlylimitedtopeopleyouhavea
financialrelationshipwith;yourbestcustomerinthisnewsituationisn’tnecessarilytheone
whobuysthemost.
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Losing control
Innotimeatall,thecompanymovedfromacentralpositionincontrolofinteractiontoan
isolatedentity,desperatelytryingtoregainrelevancy.PaulGreenbergdescribessocialCRM
as“thecompany’sresponsetothecustomer’sownershipoftheconversation.”It’supto
thebrandtobecomearelevantpartoftheconversationagain.Itgoeswithoutsayingthata
traditionalinside-outCRMapproachisnotthekindofrelevancyyourcustomerexpects.
Onecouldthereforewonderifsocialcustomerrelationshipmanagementisthebesttermto
describethisnewdiscipline.We’renolongertalkingaboutcustomersonly,andrelationships
todayarequitedifferentfromwhattheyusedtobe.Andlet’snoteventouchonthesubject
ofmanagement,whichisinfactquitetheoppositeofwhatishappening.We’llleavethe
challengeofcomingupwithabetternametosomeoneelse.Yettotakeawayanyconfusion,
let’sfirstdefinehowsocialCRMrelatestotraditionalCRM.
So what’s the difference?
Wealreadymentionedtheconsumerisincontroloftheconversation.Oppositetothe
traditionalinside-outapproach,socialCRMisallaboutoutside-in.Nolongerpushing
messages,butrathermonitoring,listeningandresponding.Whichalreadyindicatesatypical
SCRMflowisfarmoredecentralised:asconsumersprefertoconsultwiththeirfriends
insteadofbrands,it’suptothesebrandstoactivelylookforconversations(inanychannelthe
customerprefers).
Company CustomerTRADITIONAL CRM: INSIDE OUT
SOCIAL CRM: OUTSIDE IN
23
There’snoneedtomentionthatthisisaratherdrasticswitchforbusinessesandthewaythey
interactwiththeircustomers:
• RatherthantheCRMdepartmentonly,everyone needs to be involvedandawareof
boththeopportunitiesandthreatsofsocialmedia.Youasamarketermightbewell
awareofallthis,butyourprimarycustomer-facingdepartments(suchasyouroutsourced
customerserviceteam)shouldbeevenmoreso.
• Thecustomer will take the initiative,whichmeansit’suptoyoutomakesureyou’ve
gotallthetoolsandprocessesinlinetoreactadequately.
• There’snoneedtosaythisisnot limited to business hours.Expecttheworstona
Fridaynight.
Onasidenote:innowaydoessocialCRMreplacetraditionalCRM.Infact,bothcanbe
perfectlycomplementary.Anythingyou’velearnedwhilemonitoringsocialmediacanbe
appliedtotraditionalsales,marketingandcustomersupportCRMflowsandviceversa.
“ Twitter has changed the culture of our company.” BrianRoberts,ComcastCEO
Assigned departments
company-defined process
business hours
defined channels
transaction
inside out
who
what
when
where
why
how
everyone
customer-defined process
customer sets the hours
customer-driven dynamic channels
interaction
outside in
24
In practice
There’snoone-size-fits-allsolutionaseveryapplicablesituation,targetgroupandgoalwillbe
unique.However,everysocialCRMimplementationwillsomehowneedtotakeintoaccount
thefiveM’sofsocialCRM(asdefinedbyAltimeter).
Monitoring(obviously)requiresyoutoscanthewebforrelevantcontentandlistento
whateverpeoplearesayingrelatedtoyourbrandorproduct.Inatypicalsecondmapping
phase,onlineandofflineprofilesandidentitiesshouldbemappedandconnectedinorderto
providerelevance.Nottoomany—ifanyatall—complaintsonTwittertodayclearlyindicate
theuser’scustomerID.Inordertoeffectivelysolveanissue,we’llhavetoknowwho’stalking
tous.Thisiscertainlynottheeasiestthingtodo,yetbyofferingtherightbenefitsand
rewardsuserscanactuallybeencouragedtodothemappingthemselves.
Whichleadsustothethirdphase:ifweknowwhat’sbeingsaidandweknowwho’ssayingit,
thenit’suptousto(possibly)respond.Who’sgoingtorespondandhow?Themanagement
phasewilldefinetheprocessanddispatchinformationtotherightpeople(rememberSCRM
isabouttheentireorganisation).CloselyrelatedtothisisthefourthM—middleware —
aswenotonlyneedtodispatchmessagestotherightpeople,we’llalsohavetosavethis
informationinourdatabaseinordertointegrateitwithanyothercorporatedata.
“The five M’s of social CRM”: - Monitoring - Mapping - Management - Middleware - Measuring
25
Needlesstosay,ourlastMisaboutmeasuring.Wealreadystressedtheimportance
ofmetricsinapreviouschapter,yetwecan’tstressitenough:whatyoucan’tmeasure,
youcan’timprove.
Baseduponthe5Mmodel,Altimeterdefined18differentsocialCRMusecasesappliedto
sales,marketingandcustomersupport.Dependingonyourorganisationandneeds,these
canbeusedasaframeworktogetstartedwithsocialCRMinyourorganisation.Pickoneand
trytoapplyittoyoursituation.You’llbesurprisedtodiscoverallthedifferentopportunities
socialCRMoffers.
26
Takeaway tweets
27
28
See your company as an information-based service. Get to know your
customers, offer a better experience # FollowFridays10:58AMNov3rd
Branding today is a whole different game: you need to make sure you’re
backing it up in the market place # FollowFridays1116AMNov3rd
You have to overdeliver in order to generate WOM! # FollowFridays11:03AMNov3rd
Experiential WOM beats Consequential WOM! # FollowFridays11:25AMNov3rd
AdNerds
AdNerds
AdNerds
AdNerds
29
Marketing dollars will shift from outbound communication to data
analysis # FollowFridays09:36AMNov4th
Measuring engagement means measuring and learning from things you
currently ignore # FollowFridays10:08AMNov4th
Identifying and targeting “evangelists” rather than only new customers
becomes relevant # FollowFridays09:52AMNov4th
Measure beyond volume, i.e. engagement # FollowFridays10:21AMNov4th
AdNerds
AdNerds
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AdNerds
30
Polar organizations focused purely on analytics or creative are destined
to fail # FollowFridays10:46AMNov4th
It’s a solution to business problems that have always existed.
# FollowFridays10:13AMNov7th
Social CRM is not a replacement for traditional CRM, or for social
media. # FollowFridays10:02AMNov7th
AdNerds
AdNerds
AdNerds
31
There’s no such thing as one-size-fits-all. # FollowFridays11:29AMNov7th
We’re just scratching the surface. And you should do that too.
# FollowFridays11:56AMNov7th
SCRM is a (long-term) strategy. Technology is only the enabler.
# FollowFridays11:08AMNov7th
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32www.bbdo.com
www.proximityworld.comwww.digitallabblog.com
authors
Tijs Vrolix
http://be.linkedin.com/in/tijsvrolix
Franky Willekens
http://be.linkedin.com/in/frankywillekens
Jan Algoed
http://be.linkedin.com/in/janalgoed
33www.bbdo.com
www.proximityworld.comwww.digitallabblog.com
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