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Social Media Case Studies
- 3. Summary
Success of Zappos depends on two elements – Service & culture
• Belief – their company culture is unique and it offers them a competitive advantage
They use social media to project their unique culture to the world
• Work hard at building emotional connections in the otherwise cold online experience
Honest & transparent approach makes them real
An online retailer, but do not use online to hard sell
• Email & telephone – primary ways of engaging customers for sales
• Social media – managing culture, engaging & measuring reactions
CEO sets the tone
• Tony Hsieh uses social media to communicate his passions
• Honest & Transparent
Measures of social media success
• Does not measure ROI in terms of revenue or savings
• Measures on parameters of service and culture
August 26, 2012 © Scenario Consulting Private Limited 3
- 4. Who is Zappos?
Business – Online retailing
Founded – June 1, 1999
Main product – Shoes
Ambition – To build a collection of businesses
“powered by customer service.”
2009
listed as one of Fortune magazine's top 25
companies to work for
Acquired by Amazon for over $1.2 billion
August 26, 2012 © Scenario Consulting Private Limited 4
- 5. 10 core values of Zappos
1) Deliver WOW Through Service
2) Embrace and Drive Change
3) Create Fun and A Little Weirdness
4) Be Adventurous, Creative, and Open-Minded
5) Pursue Growth and Learning
6) Build Open and Honest Relationships With Communication
7) Build a Positive Team and Family Spirit
8) Do More With Less
9) Be Passionate and Determined
10) Be Humble
Invited every Zappos employee to participate in defining values. Zappos uses social media to live these
values.
August 26, 2012 © Scenario Consulting Private Limited 5
- 6. CEO Tony Hsieh leads from the front
Digitally wired from top
CEO Tony Hsieh has
1,850,862 followers on
Twitter
Believes that happy
customers help deliver
great customer service
Fun & exceptional customer
service ingrained in
corporate culture
Consciously built a
personality for the company
that is friendly, helpful,
funny & trustworthy
August 26, 2012 © Scenario Consulting Private Limited 6
- 7. Tony Hsieh talks about how they build brand Zappos using the Happiness mantra.
August 26, 2012 © Scenario Consulting Private Limited 7
- 8. Twitter - Building emotional connections &
relationships
Most Zappos employees (500
out of 1500) have an active
account on Twitter, and the
Zappos site has a page that
aggregates all the streams
Aggregates not just Zappos
related conversations but all
conversations by the
employees on Twitter
Built initially to help
employees get a perspective on
each other outside of office
Now a way for customers to get
insight into Zappos personality
& culture
Talking to Zappos is like talking to a friend that happens to sell shoes
August 26, 2012 © Scenario Consulting Private Limited 8
- 9. Zappos.tv – Making every employee a micro star
Five person AV team
Dedicated full time to
conceptualizing, blogging,
shooting & editing what goes on
at Zappos, at work and play
Cross between comedy
improvisation sketch crew and
news team
Gets staff to talk extempore and
does editing later
Type of content
Planned – head-shaving day
Spontaneous – „what super
power would you like to have‟
Latest developments – “bunk”
desks
August 26, 2012 © Scenario Consulting Private Limited 9
- 10. Zappos Blog
Mix of work and play
CEO & COO Blog
− Shares latest updates – update on projects, new
locations, business deals
− Periodically posts internal emails
– Email about having to lay off 8% of
employees in 2008
– Implications of Amazon‟s buying Zappos
Zappos Family
− Zapponian Spotlight – fun interview with
employees
− Latest events
− Team activities
Inside Zappos
− Action inside the Zappos office
More than shoes
− Latest style, trends, tips
Technology
− Latest enhancements on Zappos site
− Technology enhancements and partnerships
August 26, 2012 © Scenario Consulting Private Limited 10
- 11. How Zappos works hard at building culture
$2,000 to quit work
The company regularly offers workers $2,000 to quit, "to make sure
that employees are here for more than just a paycheck”
Match name with photo of the colleague
When Zappos employees log onto their computers, they don't just
enter a login and password. They also have to try to match a name
with a photo of a randomly selected colleague. The company keeps a
record of everyone's score
Ask Anything newsletter
Employees are invited to post questions for the monthly newsletter
Zappos culture book
Describes the ethos of the company
Features 100- to 500-word essays by current employees
August 26, 2012 © Scenario Consulting Private Limited 11
- 12. How do they measure success?
Zappos measures social media on the parameters of culture &
service
They don’t calculate its ROI on sales; they don’t consider it a
traditional marketing channel
August 26, 2012 © Scenario Consulting Private Limited 12
- 13. The journey from a shaky start to, process
integration globally
© Scenario Consulting Private Limited 13
- 14. How it all started
Early 2005
“DELL SUCKS.DELL LIES. Put
that in your Google and
smoke it,”
- Jeff Jarvis on his blog,
BuzzMachine
Core issue – bad customer
service
Company policy to not respond meant that Dell remained silent despite bad online press and
negative blogs. The negative outage hurt their stock price and reputation. Michael Dell returned
to run the company after 3 years.
August 26, 2012 © Scenario Consulting Private Limited 14
- 16. Source: Embracing & Sustaining Your Community Ecosystem by Dell Social Media
August 26, 2012 © Scenario Consulting Private Limited 16
- 17. Today
Ranked #1 most social brand in ranking of top 100 brands in a study by Headstream in 2011
August 26, 2012 © Scenario Consulting Private Limited 17
- 18. Source: Embracing & Sustaining Your Community Ecosystem by Dell Social Media
August 26, 2012 © Scenario Consulting Private Limited 18
- 19. Social Media Use Cases as defined by Dell
August 26, 2012 © Scenario Consulting Private Limited 19
- 20. Framework for mapping presence
Source: Embracing & sustaining your community ecosystem by Dell Inc
August 26, 2012 © Scenario Consulting Private Limited 20
- 21. Mapping Dell’s presence
Facebook
Blogs
Corporate
Support Blog
Forums (Direct2Dell)
External
Communities
(Networking)
Twitter LinkedIn
Dell.com
Groups
YouTube
Employee
• Dell Software News Storm
• Dell Shares IdeaStorm
Blogs • Education Blog
• Enterprise External
• Healthcare
Studio
Communities
Dell
(Content)
Flickr Slideshare
August 26, 2012 © Scenario Consulting Private Limited 21
- 22. Hosted Communities
Support Mastery & Use Affinity Ideation
• Dell - Support • Groups • Direct2Dell • IdeaStorm
Forums • Dell Blogs • Facebook for • EmployeeStorm
• Twitter - • Studio Dell Small Business
@DellCares
• Facebook
Support
Key Programs for Community
-Listening
- Management & Moderation
- Advocacy
- Reputation Management
August 26, 2012 © Scenario Consulting Private Limited 22
- 23. Dell’s framework – Listen, Engage, Act
August 26, 2012 © Scenario Consulting Private Limited 23
- 24. Community – Customer-ideation
Dell Ideastorm
Launched in Feb 2007
Objective
To encourage ideas,
feedback, input and
dialog from customers
Results
15,000 ideas generated
by the community
750,000 promotion of
ideas
84,000 comments
400 ideas implemented
by Dell
August 26, 2012 © Scenario Consulting Private Limited 24
- 25. Learnings from IdeaStorm for Dell
Spike of ideas occurred in the first few days
Dell received 2,000 ideas in first 2 weeks
Community expected immediate response/engagement
Beginning – their updates were sporadic
Today – they have a dedicated blog with updates every 2 weeks
Expectations of two key stakeholders & addressing them
Customers
− Positive experience – timely feedback
− Action taken on ideas – clear status updates
− Recognition – thank you mechanisms
Business partners
− Positive experience – timely/accurate reporting
− Executive support – alignment with strategy
− Defined process – communication support
Source: IdeaStorm Overview by Dell Inc
August 26, 2012 © Scenario Consulting Private Limited 25
- 26. Challenges faced by Dell & proposed solutions
Type of entries recieved
Understanding the ideas posted Create a User Toolkit –
Poorly formulated ideas Do’s and Don’ts
Ambiguity about scope of its proposed
Tools for developing
Solutions
application,
Volume of entries consensus – Vote up and
Determining the best ideas down, Comments
Voting mechanism
Duplicate ideas splintered votes Respond Quickly, Ask
Excessive influence of unrepresentative Questions
minority
Bottlenecks in engagement If You Let Them Vote,
Transparency vs Business confidentiality
Make It Count
Presenting ideas “accurately” on the community
Limited resources and confidentiality concern
hindered engagement Present Your Progress
Clearly and Openly to
the Community
© Scenario Consulting Private Limited 26
- 27. Ideas breakdown
Breakdown of ideas
received
12% unusable – no
action needed
4% innovative – possible
game changing ideas
80% improvements
− Incremental ideas for
next gen products &
improvements for
existing products &
services
Source: IdeaStorm Overview by Dell Inc
August 26, 2012 © Scenario Consulting Private Limited 27
- 28. Promotions
Integration with social networks as Facebook
Interacting with people in their own environment
Encouraging friends to participate in ideas
August 26, 2012 © Scenario Consulting Private Limited 28
- 29. Similarly, ideation community for employees
Launched in June 2007
Objective
Encourage ideas,
feedback, input and
dialogue from
employees
Results
4,800 ideas generated
250,000 promotions of
ideas
22,000 comments
150 ideas implemented
by Dell
August 26, 2012 © Scenario Consulting Private Limited 29
- 30. Key Learning – Building Advocates
1% advocates will drive 90% content & engagement
Source: Embracing & sustaining your community ecosystem by Dell Inc
August 26, 2012 © Scenario Consulting Private Limited 30
- 31. Dell on Twitter
2007 2010
Exploratory Formalised
Source: The Evolution of Dell on Twitter by Dell Inc
August 26, 2012 © Scenario Consulting Private Limited 31
- 32. Dell on Facebook
Dell has several pages on Facebook spanning several geographies and business functions. Use it to
lend support to the community and build affinity.
August 26, 2012 © Scenario Consulting Private Limited 32
- 33. Internal - Embedding Social Media into fabric of the
company
Internal Social Training &
Councils Communication Listening
Media Events
Blogs
SMaC Council SMaC university
Chatter
Social Media
Weekly Smac
Command
Digest
Centre
EmployeeStorm
Community
SMaC Talk
Leadership
Unconferences
Council
Sharepoint
August 26, 2012 © Scenario Consulting Private Limited 33
- 34. Dell’s journey on Social Listening
Learning – With 4,000-5,000 online conversations everyday, there was need to scale up beyond
centralised social media efforts
August 26, 2012 © Scenario Consulting Private Limited 34
- 35. Launch of Social Media Command Centre in
December 2010
Role – Support listeners and responders across Dell. Contain viral issues, coordinate on-boarding, maintain
standards, share best practices
August 26, 2012 © Scenario Consulting Private Limited 35
- 36. Training & Events – SMaC University
Established Social Media
& Community team
(SMaC) in 2010
Governance
Setting infrastructure
Training
SMaC University
Over 10 training
modules
Community, Facebook,
Twitter
Outcome
Certified: 2357
5000 unique members
trained by end of year
August 26, 2012 © Scenario Consulting Private Limited 36
- 37. Training & Events – SMaC Talk Unconferences
Established Social Media
& Community team
(SMaC) established in
2010
Governance
Setting infrastructure
Training
Certified: 2357
5000 unique members
trained by end of year
August 26, 2012 © Scenario Consulting Private Limited 37
- 38. Impact of Social Media on Dell’s customer lifecycle
Source: Paving the way to social business by Dell Inc
August 26, 2012 © Scenario Consulting Private Limited 38
- 39. Dell’s thoughts on ROI
Source: Embracing & sustaining your community ecosystem by Dell Inc
August 26, 2012 © Scenario Consulting Private Limited 39
- 40. Source: Paving the way to social business by Dell Inc
August 26, 2012 © Scenario Consulting Private Limited 40
- 41. Metrics for tracking performance
Business Value (examples)
Brand: Net promoter score, sentiment, satisfaction, advocacy
Support: Questions, answers, time to answer, % answered by you,
views of answered content
Content: Content created, views of content, comments
Web Traffic: Pageviews, uniques, referrers, domains
Innovation: ideas
Community Health
Velocity of Change: Registrations, content creation, content
consumption
Population Segmentation: 90/9/1
Creators: posts, answers, comments
Watchers: views, page depth, time on site, bounce rate Global
Marketing
Source: Embracing & sustaining your community ecosystem by Dell Inc
August 26, 2012 © Scenario Consulting Private Limited 41
- 43. Major SM interventions; 3 key segments
Enterprise Collaboration Corporate Reputation Consumer Marketing Community
SupportCentral
GE Reports Ecomagination Ecomagination Challenge
• Internal wikis
• Blogs
GE Expert network Healthymagination
GE Show
August 26, 2012 © Scenario Consulting Private Limited 43
- 45. Enterprise Collaboration at GE
1999, built an internal network called SupportCentral
which hosts
− 100,000 wikis
− 30 million documents
− 40,000 blogs
Employee usage
− 25 million web hits everyday
− 5 million page views
− 500,000 downloads everyday
August 26, 2012 © Scenario Consulting Private Limited 45
- 47. Key challenges
Early 2000
Strongly associated with its lighting and appliance products which
formed only a small percentage of the company business
Stakeholders were unaware of the diversified portfolio at GE
− Understood in parts but not as a complete whole
Late 2000
Negative stories by mainstream media on the future of the company
− Financial difficulties in 2008-09 started casting aspersion on the future
outlook
Repositioned from „We bring good things to life‟ to „Imagination at work‟ in January 2003.
August 26, 2012 © Scenario Consulting Private Limited 47
- 48. In 2008-09 front page stories in national business publications questioning viability of the company. Profits at
GE Capital had dropped by 80% in Q2
August 26, 2012 © Scenario Consulting Private Limited 48
- 49. Gary Sheffer, GE‟s head of corporate communications realized they needed to communicate their story better.
August 26, 2012 © Scenario Consulting Private Limited 49
- 50. Solution?
© Scenario Consulting Private Limited 50
- 51. GE Reports
“This is a tough
environment, a lot of
misinformation in the
market place. This is just a
fast and simple way to
punch through it and to
make sure that you tell
your story in a simple and
engaging way.”
- Gary Sheffer on launch
of GE Reports
Widely heralded as a new form of communicating with the investors on the Wall Street.
August 26, 2012 © Scenario Consulting Private Limited 51
- 52. GE Reports – Current Scenario
Format
Is an online blog that gives
viewers an inside glimpse at
personalities, breakthroughs
and technology
serves as a news channel blog
Audience
Mainstream media
Bloggers - news and financial
sites/blogs
Investors
Employees – current &
potential
Tech & Science enthusiasts
August 26, 2012 © Scenario Consulting Private Limited 52
- 53. GE Reports – What works
Content configuration
Breakthroughs & science
Applied technology
People behind innovation
Big and small stories
− Steady stream of interesting
news
− Showcases a diversified
portfolio
Customised consumption
Content can be accessed basis
reader‟s preferred channel
Distinct personality
Passion for cool technology
Unearthing lost stories
Making big stories accessible
Humor occasionally
August 26, 2012 © Scenario Consulting Private Limited 53
- 55. Edison’s Desk launched in 2005
Showcasing the best of R&D work led by the Global Research Centre. Giving promising PhD candidates a
view into work happening at GE labs
August 26, 2012 © Scenario Consulting Private Limited 55
- 56. GE Show
Showcasing the GE product portfolio in an informal, friendly and conversational tone. Users can share
feedback in the comments section.
August 26, 2012 © Scenario Consulting Private Limited 56
- 57. Aggregating the expert network
Over 40 experts across 8 businesses are showcased as part of the expert network on Innovation.
August 26, 2012 © Scenario Consulting Private Limited 57
- 59. GE Healthymagination campaign with YouTube
influencers in 2010
Activity - Reached out to six YouTube stars to make videos about
healthy living as part of its Healthymagination programme
August 26, 2012 © Scenario Consulting Private Limited 59
- 60. GE Healthymagination campaign with YouTube
influencers
Outcome
Combined the clips received over 12 million views
Value
Delivered corporate message in an authentic voice that‟s
more powerful than traditional advertising
Leveraged their built-in distribution network
− Message percolated other networks as Facebook, Twitter via
devoted subscribers
Helped reach a younger audience
When traditional advertising stopped, this campaign lived and
continued to grow
Replicated the same programme for GE Ecomagination with 15 YouTube stars. Brief – challenge people to
lead a greener life.
August 26, 2012 © Scenario Consulting Private Limited 60
- 61. “Get Fit” campaign by GE Healthcare on Twitter
Global competition
Encouraging people to “Get Fit”
and join the fight against cancer
Share their healthy lifestyle
choices on Twitter
Each country to have its own
hash tag. E.g. #GetFit_IND
$20,000 donation from GE
healthcare to be given to Red
Cross in the winning country
Over 700 participants from 55
countries generated 5,500
GetFit tweets
Innovative campaign at a global scale but did the different hashtag for each country approach really work?
August 26, 2012 © Scenario Consulting Private Limited 61
- 64. Ecomagination Challenge
Invited businesses, entrepreneurs, innovators and students from around the world to join
the $200 million challenge and share solutions for world's energy problems
Tied up with 4 well-known venture capital firms to fund the winning ideas
3 categories
Create - Renewable Energy
Connect - Grid Efficiency
Use - EcoHomes/EcoBuildings
Selected winners offered opportunity to develop commercial relationship with GE
Investment, Strategy, Development, Distribution and Growth
Selection
Public vote but final decision to be made by the jury
Cash award of $50,000 for entry with most user-submitted votes
Participation
70,000 visits
800 ideas submitted
10,000 comments
1,500 established companies participated -- 25 percent of which already generate at least
$2 million in annual revenue
Unlike Dell Ideastorm, community involved in sharing ideas. Selection done by the experts.
August 26, 2012 © Scenario Consulting Private Limited 64
- 66. Why chose the vicious cycle, when you can chose the
virtuous one
August 26, 2012 © Scenario Consulting Private Limited 66
- 69. The importance of Har Friend Zaroori Hota Hai
August 26, 2012 © Scenario Consulting Private Limited 69
- 70. The lack of story telling opportunities
August 26, 2012 © Scenario Consulting Private Limited 70
- 71. The cost of “faking it”
8/26/2012 © Scenario Consulting Private Limited 71
- 72. The cost of “faking it”
8/26/2012 © Scenario Consulting Private Limited 72
- 73. Pantene fakes an interview
August 26, 2012 © Scenario Consulting Private Limited 73
- 75. Twitter and blogs abuzz with posts
August 26, 2012 © Scenario Consulting Private Limited 75
- 76. Annexure
© Scenario Consulting Private Limited 76
- 77. Framework for Social Business objectives & KPIs
Business Objective Key Performance Indicators
Foster Dialog Share of Voice
Audience Engagement
Conversation Reach
Promote Advocacy Active Advocates
Advocate Influence
Advocacy Impact
Facilitate Support Resolution Rate
Resolution Time
Satisfaction Score
Spur Innovation Topic Trends
Sentiment Ratio
Idea Impact
Source: Altimeter Group and Web Analytics Demystified
August 26, 2012 © Scenario Consulting Private Limited 77
- 82. Measuring customer value in social age
Traditional scenario New-age scenario
Lifetime value of the customer Lifetime social influence an
(LVC) metric – a financial activity of the customer
measure - Level of influence in context of
Products &services bought by our products, services,
Customer X – cost of servicing competitors or overall industry
Customer X = value added by - Participation in customer
the customer X on the company support communities,
bottom line knowledge shared to resolve
tier one issues (lowering service
Those who spend more = A-list costs)
customers
Role of social influence and activity on customer valuation
August 26, 2012 © Scenario Consulting Private Limited 82
Editor's Notes
- http://postadage.wordpress.com/2011/06/13/dell-from-hell-to-ideastorm/