An interesting whitepaper on - How Marketers Can Leverage Consumer-Generated Media

1. Listening to Consumers 101
How Marketers Can Leverage
Consumer-Generated Media
Melissa Davies
Research Director, Healthcare
Nielsen’s Online Division
October 2008

2. Listening to Consumers 101
Table of Contents
Market Context ........................................................ 2
........3
Case Study:
CGM Provides an Early Alert ...........................4
Getting Started ........................................................4
This whitepaper is provided by The Nielsen Company for informational purposes only and is not intended and should not be construed
as regulatory or legal advice. Readers should consult with and obtain the advice of their company’s marketing, regulatory and legal

3. Market Context:
The Empowered Consumer
The roles of consumers and corporations have changed
significantly since the rise of the Internet. YouTube is only the
latest manifestation of a broader trend: consumers have the
ability to voice opinions about products and brands, and there
is now little standing in their way.
Consumers have come to expect that boards, blogs and online groups. A
companies can and should listen to their recent Nielsen survey found that 73%
ideas, requests and questions, and that of online U.S. adults actively participate
companies will react to this input. A broad in consumer-generated media (CGM) in
range of traditional companies—including some form. Nielsen Online’s BlogPulse
Purina, Mattel, American Airlines and service tracks the creation of blogs—at
Comcast, to name just a few—have this writing, there are more than 91 can companies do to change this dynamic
quickly learned the importance of million identified blogs, and more than and open a door of communication with
listening and responding to consumers. 80,000 of these were launched in the today’s empowered consumer? The
Companies are being held to increasingly last 24 hours. Social media is an easily answer to this question is complicated,
high standards set by organizations that accessible forum for nearly anyone who but one thing is clear: marketers have a
excel at listening and responding, such has an opinion and would like to share it. lot to gain by listening to the social media
as Zappos, Geico, Starbucks, Southwest conversation that is already taking place.
Airlines and others. These companies are Companies today face an increasingly
setting the bar not just for their direct difficult challenge: how to communicate
competitors, but for all businesses that with consumers in a way that encourages
serve consumers. trust and engagement, in an environment
where companies’ statements and actions
Consumers who feel they are not being are routinely dissected on the Internet for
heard will turn to other channels to share the entire world to see. As consumers take
opinions and express frustration. Many an increasingly proactive and vocal role,
choose the Internet—and specifically marketers and brand managers now must
social media sites including discussion navigate new and unfamiliar waters. What
2 Listening to Consumers 101

4. The Challenges and
Benefits of Listening
There can be no doubt that packaging and have had some hands- allows researchers to avoid respondent
on experience with it. Consumers often bias by studying the full scope of
creating a listening culture turn to the experiences of others within consumer feedback—the good, the bad
presents a challenge for many the online community for answers to and the ugly. This can be a humbling
companies. In certain corners their questions or help with product experience, and in some cases brand
knowledge. Understanding the questions managers will need to brace themselves
of corporate America, a
that typically come up can inform for what they will learn. However, many
“listening as liability” mindset the language used in brand packaging marketers believe that a proactive
has prevailed. inserts, Web site content, marketing approach to learning about issues being
and more. What’s more, these consumer discussed is preferable to reacting to
Many companies are intimidated by the experiences are logged online and visible an issue already snowballing within
procedures that must be put in place to others—including potential new consumer discussion.
for logging consumer feedback, seeing customers who are considering your
that it gets to the right place and, most product. Understanding the questions and Expand the feedback base
importantly, following through. But if we challenges that are associated with your The sheer number of consumers who are
can move past these challenges, there product can help you address any issues participating in online discussion creates
are some very real benefits that can be that may emerge as deal-breakers for an opportunity to collect data from a
realized by tapping into social media potential future customers. much larger sample than is often possible
as a resource for better understanding
through survey or focus group research.
consumers. Following are just a few
Learn about
examples of the learning opportunities
social media research presents: consumers’ experiences Answer questions
using the product the brand team didn’t
Understand Is the packaging hard to open? Is the think to ask
battery life shorter than consumers
consumers’ questions expect? How does customer service
Even the best survey instruments cannot
Consumers who are new to a product uncover the answers to unasked questions.
measure up to competitors? This type
often have questions about how to use But if consumers are talking about issues
of feedback can quickly bubble to the
it. In many cases, these questions may outside of what is expected, listening to
surface within online discussion.
not occur to the consumer during the their online discussion is a great way to
buying process, but only after they have learn about the topics that are driving
taken the product home, removed the Avoid response bias that conversation. Having this knowledge
Overcoming respondent bias is a can inform brand strategy or help shape
challenge of market research. Following traditional market research efforts to
consumer conversations that are naturally further explore these consumer issues.
taking place in the online environment
3 Listening to Consumers 101

5. Getting Started
For companies ready to take a more affinity groups—making it easy for brand
active role in the process of listening to managers to find relevant discussion
Case Study consumers, but not sure where or how to too. Those concerned about the content
A few months after the launch of start, the following steps can provide a of online conversations can start with
a new prescription that used an roadmap to leveraging the digital space: a subject area different from what they
innovative administration mechanism, work on. Online discussion boards are
patients began reporting difficulties
that were related to its adhesive
Listen to the conversation public places, and members understand
that any information shared there
This advice may seem obvious, but
application mechanism but not to the is publicly accessible, so reading the
for companies wondering how to
medication itself. The first accounts of information shared in these communities
take advantage of the rich learning
these experiences surfaced in online is not a violation of members’ privacy.
opportunities in social media, this is the
discussion forums four months before
best place to start. There are many ways
another media outlet picked up the Visit Wikipedia and see what
to approach this important first step.
story, and nine months before a information has been posted about
major national media outlet reported the brand. Hint: Wikipedia entries
Conduct an online search on the brand.
on it. When the Institute for Safe typically include both an “article,” which
Start by scrolling through the first 20
Medication Practices (ISMP) reported is often more reference-based, as well
or 30 search results. How many of these
on these difficulties, it cited messages as “discussion” that usually incorporates
are written by consumers? The answer
posted by patients and caregivers consumers’ input. Brand managers will
may surprise you. Marketers reviewing
from “several online message boards” want to be sure to read both.
online search results should note that
in its alert.
these are the very same search results
From the very first consumer- Check for consumer-created videos
that consumers will find if they search
generated messages on this issue, about the brand. From serious how-
the same terms.
patients and caregivers shared details to videos to personal stories and
about their experiences, as well as testimonials to spoofs on anything from
Head online to a discussion board
tips and potential solutions for ways marketing to product functionality, many
and start reading. Marketers could
to work around the application marketers are surprised to learn how
easily start with any of the large sites
difficulty, such as putting the many product-themed videos (often
that are home to industry-specific
medication in the freezer briefly to brand-specific) are already online. For
discussion—in healthcare, examples
make it easier to apply. Ultimately, the many brands, snippets from news or other
include WebMD or Revolution Health;
pharmaceutical company marketing television coverage have been posted in
in consumer technology, Howard
the medication was able to go back addition to consumer-generated videos. In
Forums; in automotive, Edmunds.com.
to its manufacturing partner and work searching for online videos, marketers will
Most discussion sites are organized
to resolve the issue. want to search on both their own brands
into smaller forums by subject area,
as well as competitors.
allowing consumers to congregate into
4 Listening to Consumers 101

6. Those who are ready for a more broad- The Sheraton Hotels Web site see incorporated. The site also features
ranging analysis (or simply do not (www.sheraton.com) has a form where a blog where Starbucks representatives
have time to monitor the discussion guests can share their travel stories. share updates on ideas that are being
themselves) may want to consider These stories are then featured on the explored further or that have already
enlisting a third-party service, such as site’s home page along with photos been implemented.
Nielsen Online, to provide this information. from consumers’ travels. Not all of these
stories are related to a stay at a Sheraton In addition to launching a discussion
Hotel—the site invites consumers to community (or instead of this approach,
Facilitate the conversation share “the details, the sights, the fun and for companies that are not ready), there
For companies already comfortable
the tips that made your trip memorable.” are other options for helping to facilitate
listening to the conversation, a next
consumer discussion.
step to consider is helping to build the
Starbucks has received a lot of attention
community in which consumers will
recently for its My Starbucks Idea Web Go where the audience is. A brand team
congregate. Several companies have
site (http://mystarbucksidea.force.com/), might consider partnering with an existing
already taken this approach.
where consumers can share their own discussion site to sponsor a subforum
ideas, discuss the ideas that have been for discussion related to its brand or
In healthcare, GlaxoSmithKline hosts
posted by other consumers and even vote product category. This type of community
myalli.com, the Web site for its over-the-
on which ideas they would most like to may benefit from the participation of
counter weight loss product, alliTM. In
addition to product information, how-to’s
(in both text and video) and assessment
tools to help consumers determine
whether alli is right for them, the site also
incorporates a very popular moderated
discussion forum. As of late October 2008,
the alli discussion boards boasted more
than 275,000 messages written by nearly
235,000 registered uses, and the site is
adding new users at a rate of 100+ per day.
That is an incredible community of people
supporting and encouraging one another
to continue using the product—and an
amazing opportunity for GSK to listen to
its consumers.
5 Listening to Consumers 101

7. a third-party moderator—someone Incorporate the voices of actual
clearly identified as affiliated with or customers through personal stories
representing the brand—who will take on the brand site. These could include
part in the discussion, answer questions tips for using the product, customer
and provide information, and generally success stories, personal milestones. Text
keep an eye on what is being said. is the traditional format for these types
of stories, but marketers may want to
Provide materials that will help consider the power and influence of a
consumers better define their needs, video in which a consumer tells his or her
and make a more informed purchase own story directly to others who may
decision. Depending on the type of have the same questions and needs.
product, there are several options a brand
manager might consider: for example, Allow and encourage consumers to
healthcare marketers might provide a link to these resources from other Consider starting a blog. Although it
brief questionnaire that helps patients sites. Consumers hungry for product may take time to research, gain approval
quantify their symptoms prior to a information will actively share what they for and launch a branded blog, marketers
conversation with the doctor. Automotive find with others. who raise the idea within their companies
or consumer tech companies can provide may find that they are not alone in
comparison charts for different models.
Join the conversation thinking about leveraging this platform
Marketers might also consider leveraging on behalf of their organization. There is
Social media is here to stay. Web 2.0
CGM—perhaps by providing expert no doubt that launching a blog will take
is a fact of life. Corporate blogging is a
advice from a blogger who is known in work and planning—marketers who start
reality—in fact, a survey conducted by
the field, or by sharing relevant content now may just be able to make it happen
PRWeek in early 2008 concluded that
based on questions that frequently come down the road.
15% of Fortune 500 companies are
up in CGM discussion.
blogging. It may be hard to envision the
possibility of a corporate blog within
Share product information or how-to’s
some companies or industries. But there
in the form of podcasts that can be
was a time when automotive executives
downloaded from the brand’s Web site.
could not imagine allowing a corporate
This brief video format allows consumers
blog—and today, both GM and Toyota
to watch again and again and to take the
have successful, popular blogs led by
information along with them for viewing
high-ranking corporate executives.
at a convenient time.
6 Listening to Consumers 101

8. Appoint someone from the brand For any company, taking steps to begin
team to take an active role in listening to social media discussion can About the Author
online discussion as an be a challenging task. But the potential As Research Director,
representative of the brand. Under no rewards are powerful: companies stand Healthcare, Melissa
circumstances should companies try to gain a better understanding of their Davies oversees
a “stealth” approach—there is a high consumers’ authentic voices, their integrated Nielsen
likelihood that this approach will be successes and frustrations, their actual Online research and
discovered and the potential damage to experiences. Consumers can share in the analytics for the
the brand’s reputation is great. In fact, benefits by having their voices heard company’s healthcare
legislation enacted in the U.K. in May and their needs better understood. practice, which serves the top 15 largest
2008 makes it a criminal offense for a Many companies are already seeing the pharmaceutical companies in the U.S. as
brand representative to falsely represent benefits of listening to—and, in some well as many other healthcare clients. In
him/herself as a consumer in online cases, participating in—consumers’ online this role, Melissa has managed research
discussion. Having a brand representative discussion. For other companies, though projects to study patient/consumer
active in the online community creates the challenges in getting started may perceptions about multiple disease
an opportunity to share information seem particularly steep, the potential categories, emerging and established
about product developments or new rewards can be well worth the effort. treatments, and key marketplace issues
R&D efforts, point individuals to helpful affecting the healthcare industry.
information or other resources and Melissa joined Nielsen Online as a Senior
provide answers or additional input when Analyst with BuzzMetrics, which provides
questions (or misinformation) are shared. monitoring and insights based on online
When this is done with an open, honest, consumer-generated media (CGM).
straight-forward approach, members of
the online community tend to appreciate
the fact that a company cares enough
about its consumers to meet them on
their own turf.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing and consumer
information, television and other media measurement, online intelligence, mobile measurement, trade shows and business
publications.
Recognized as an industry leader in enabling companies to protect and promote brands through the measurement and analysis
of consumer-generated media, Nielsen BuzzMetrics uncovers data-driven insights culled daily from more than a million blogs
and social networks worldwide. Nielsen delivers trusted brand metrics, meaningful consumer insights and real-time market
intelligence to help marketers compete and thrive in today’s consumer-driven world.
To learn more about how Nielsen can help with your listening strategies, contact sales.us@nielsen.com
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