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INDEX:
SOCIAL LEADERBOARD:
week-on-week performance of top 3 luxury car brands…
SUMMARY
Sins of short term social gains…
OBSERVATIONS
RECONNECT GRADE:
o BMW
o AUDI
o MERCEDES-BENZ
WHY COMMUNITIES?
METHODOLOGY:
the research process…
ABOUT SHACK
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
3. 2:
SOCIAL LEADERBOARD
18th August – 31st August 2012
13,00,000
12,00,000
12.4%
5.1%
10.8% 21.9%
11,00,000
Community Size (members)
10,00,000 BMW (W7)
BMW (W8)
9,00,000
Audi (W7)
8,00,000 Audi (W8)
Merc (W7)
7,00,000 Merc (W8)
8.2%
6,00,000 7.0%
5,00,000
- 5.0% 10.0% 15.0% 20.0% 25.0%
Activity Grade
Share of members (%) Activity Grade (%)
Current 1w ago Current 1w ago
39.2% 39.5% 12.4% 21.9%
39.9% 39.5% 5.1% 10.8%
20.9% 21.1% 7.0% 8.2%
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
4. 3:
SUMMARY
Sins Of Short Term Social Gains
Brands using digital as a communication medium are gradually
increasing their marketing investment in this medium. Audi, for
instance, will spend close to 30% of its marketing spend on the digital
medium in this financial year. However, any such incremental
expenditure has to be justified through tangible results for the brand.
Setting up KPIs and then mapping it to the marketing objectives of the
brand and the impact of the traditional communication media (print,
TV etc.) is a tough challenge faced by marketers and brand managers.
The challenge is made more difficult by the increasing number of
engagement avenues (Facebook, Twitter, Blog, Forums, Websites,
Groups etc.) for users and customised measures for each such
platform (fans, followers, discussions, pageviews, bounce rate etc.).
Therefore, it becomes hard to account for all these avenues and
reduce them into a data set that is indicative of the combined
effectiveness of all these platforms.
Flawed measurement begets flawed outcomes
Likes, followers, fans and page views are insufficient measures when they
are not broken down. Therefore, it is easy for brand managers to be
misguided by the media managers with the promise of a shiny new
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
5. 4:
technology and the potential million users accessing that technology.
In this excitement, two key questions are ignored
1. What does the brand stand for?
2. Who does the brand serve?
Digital allows for customized relationships with the audience and a
considerably more comprehensive feedback loop. In chasing the new shiny
thing, marketers forget those two aspects.
As a result, we observe a big gap between the actual outcome and the
desired one.
Volume of users and engagement is an extremely weak ROI indicator. What
really matters is the quality of the audience and the engagement. We
are going to explore this statement in more detail with the help of two case
studies.
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
6. 5:
Real Life Case I
For our first case, let us look at the estimated paid media
spends of a well-known car brand and their return on
investment for the campaign.
We do a quick calculation and observe that there is c. 84% correlation
between the visits and the level of investment. The regression
coefficient (r2) at 0.71 also substantiates the high dependence of the
total visits on the media spend.
This means that a very little % of the approx. 170 lakhs of investment
results in organic growth as word-of-mouth referrals - a worrying sign
for any brand.
Site visits highly dependant on media spend L
o
1600 80.0 y
a
66.7
l
Investment (lakhs)
1200 60.0
Page Views ('000)
t
38.3 y
800 40.0
18.5 L
400 23.0 20.0
11.9 a
5.0 d
8.6
0 0.0 d
Jan Feb Mar Apr May Jun Jul e
r
PV (K) Invst (lakhs)
Significant %age of visits come from users at the bottom of the
customer loyalty chain
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
7. 6:
This is what we mean by having a BROKEN web presence. If your
consumers genuinely cared about your brand, they would share their stories
on social platforms that, in turn, will generate organic traffic between
various brand-owned platforms
There are two main reasons for this
1. There is no emphasis by brands in attracting the right target audience
on the platform. As can be seen in most KPI reports, there is no
mention of the audience profile. Just faceless likes and pageviews.
2. Brands are self-obsessed and, therefore, never talk about what the
users actually care about.
Companies attempting to "position" themselves need to take a
position. Optimally, it should relate to something their market actually
cares about.
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
8. 7:
Real Life Case II - BMW
Are a million fans any good when not even 1/1000th of
that number identify with what the brand stands for?
When BMW India recently reached a million Facebook fans,
Dr. Andreas Schaaf, President, BMW Group India, said,
“With the launch of BMW India page on Facebook, we have
focused on harnessing the power of social media to create
passionate brand engagement with the fans of BMW. Today, our Facebook
page interacts with an ever growing fan base and spreads Joy in the virtual
world. With Sachin Tendulkar as the One Millionth fan of BMW India on
Facebook, we are proud to have achieved yet another milestone in our social
media journey.”
We looked at the 2 key points mentioned in the above statement i.e.
Passionate brand engagement among BMW fans
Sachin Tendulkar as a brand evangelist and brand ambassador
We ran an analysis on the SHACKMATRIX™ to find out that actual numbers
do not validate the above points.
On an average, the average engagement frequency per fan was 1.3x
which means that each unique user only engaged with the brand
approximately once.
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
9. 8:
We analysed the activity score for three key attributes common to Sachin
and BMW to see whether the celebrity endorsement affected the perception
of the users.
Legacy -> Only 2 in every 500 fans associate brand BMW with this
attribute
Power -> Only 4 in every 500 fans associate brand BMW with this
attribute
Masterpiece -> Only 4 in every 500 fans associate brand BMW with
this attribute
Weak reconnect with key brand attributes
6
Engaged fans (per 500 fans)
4
4 engaged in 4 engaged in
2
every 500 fans every 500 fans
2 engaged in
every 500 fans
0
Legacy Power Masterpiece
Brand Attribute
Clearly the numbers tell a much different story than what has been claimed.
The primary reason for this difference between the perceived results and
actual results is that the industry still has an excessive reliance on gross
numbers that does not differentiate in value between customer A and
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
10. 9:
customer B. If you can’t make that differentiation then it is only
natural that you can’t reap returns on your investment.
The current audience on
BMW’s Facebook page
can classified as rented
audience as opposed to
earned
Conclusion: Digital should be part of the core
and not an afterthought
A me-too strategy
Currently the tendency of most brands is to look at the digital space as
hygiene related afterthought – a me-too strategy. The problem with most
corporations is that in the absence of contests & events, they lack any plan
to keep their audience engaged. As a result, to their intended online
audiences, companies sound hollow, flat, and literally robotic. By speaking in
this language, they build walls to keep brand owners, loyalists and
enthusiasts at bay. Companies that don't realize their markets are now
networked person-to-person, getting smarter as a result and deeply joined
in conversation are missing their best opportunity.
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
11. 10:
Tie it in with macro brand objectives
If digital has to make sense for brands as an important marketing medium,
then marketers need to incorporate it into their scheme of things when they
are charting out the overall marketing plan and connect its performance
with the macro brand goals of improving preference, brand association,
loyalty and perception.
A good example
Nowness.com is a great example of a brand using the digital medium to
engage with its relevant audience by finding the common ground between
the brand message and what the brand’s audience cares about. It is an
editorial web platform owned by LVMH that showcases an exclusive daily
premiere of the most inspiring stories influencing contemporary arts and
global lifestyle.
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
12. 11:
OBSERVATIONS
We see an opportunity for BMW to create a platform and leverage its
association with design, art & music that, on an average, appealed to 5
in every 100 community members. The reconnect with the attributes of
power and comfort associated with the new-3 series declined
considerably to 0.8% and 0.2% respectively. With the absence of any
contests and events, the activity score fell by almost 50% to end at
12.4%.
Audi organised the Quattro drive event which saw Audi India brand
director Michael Perschke and members of the Super car club go on an
off-roading trip from Srinagar to Leh. The objective of the trip was to
showcase the power, agility and endurance of Audi's Quattro drive
technology in its Q-series range of cars. For the first week, 6 in every
100 brand followers connected with the off-roading theme while the
figure fell to 3 in every 100 in the second part of the week. However,
only 1 in every 100 engaged with content about Quattro technology.
The Star Drive promotion was the highlight of the fortnight for
Mercedes-Benz with an online contest that promised the winner a drive
experience with Farhan Akhtar. The ShackMatrix showed that 4 in every
100 brand community members were fans of Farhan Akhtar but this
affinity did not translate into positive W-o-M for the brand. Overall,
Mercedes still finds itself trailing BMW and Audi even with the Sports
Tourer launch and the Ultimate touring trails initiative that was
designed to cater to a younger target group.
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
13. 12:
RECONNECT GRADE
18th August – 24thAugust 2012
7.0%
6.1%
6.0%
Reconnect Grade
5.0%
4.0% 3.5% 3.4%
3.0%
2.0%
1.0% 0.4% 0.4%
0.04% -
-
8.0% 7.4%
6.3%
Reconnect Grade
6.0%
4.5%
4.0% 3.6%
1.7% 1.52%
2.0%
0.19%
-
5.0%
4.0%
Reconnect Grade
3.0% 2.6%
2.2%
2.0%
1.1%
1.0% 0.8% 0.7% 0.7%
0.4%
-
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
14. 13:
RECONNECT GRADE
25th August – 31stAugust 2012
7.0%
Reconnect Grade 6.0% 5.5%
5.0%
4.0%
3.0%
2.0%
0.8% 0.8% 0.6%
1.0%
0.2% 0.02% -
-
8.0%
Reconnect Grade
6.0%
4.2%
4.0% 3.2%
2.0% 1.1%
0.7%
0.2% 0.21% 0.02%
-
5.0%
4.3% 4.3% 4.3%
4.0%
Reconnect Grade
3.0%
2.0%
2.0% 1.6%
1.0% 0.4% 0.3%
-
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
15. 14:
About the Social Leaderboard
The Leaderboard updates the results derived from our internal tools and
methodologies on a bi-monthly basis, based on which we will bring out our
conclusions. Shack uses a proprietary grading mechanism
ShackMatrix™ to derive the Authority, Activity and Reconnect Grades,
which are key determinants of a brand’s social presence. Read more
about the Matrix and Grades.
Why Communities?
Create, Connect, Curate — The Shack Manifesto for Building
Communities
With the social online world becoming an important cog in a customer’s
relationship with a brand, there is a need for a common language that can
give meaning to the seemingly unstructured social data scattered across
platforms that represents a brand’s interaction with its core community.
As has happened with the introduction of any new communication medium,
practitioners are making the mistake of using the measuring stick (such as
views and reach) of traditional advertising media to gauge success in the
social web. For over a half a century, we have been thinking about
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
16. 15:
marketing in terms of campaigns with a very clear beginning, middle and an
end. But the online digital world is currently in the process of being rebuilt
around people and what we know as the social web, in a few years, would
simply be the web.
Therefore, long term success for brands depends on leveraging these
human relationships to create a strong sense of community around
products, concepts and values that are dearest to the brands.
How we measure effectiveness in Online Communities?
The ShackMatrix™ is a proprietary framework that enables assessment of a
brand’s digital footprint in a holistic way. It is a common language designed to
understand the value of a brand’s online efforts expressed through 5 grades that
combine the understanding of traditional branding with the dynamics of a social
online world.
Presence Grade: Measures how well is the brand represented on digital
platforms.
Authority Grade: Measures how authoritative is a brand’s owned-
channels for information on the brand and its products.
TG Grade: Measures the percentage of the desired target group mix
active on the brand’s owned platforms.
Activity Grade: Measures the level of activity on existing channels.
Re-Connect Grade: Measures the extent to which community members
connect and identify the brand with the attributes desired by it.
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
17. 16:
Data Methodology
We take online performance as a holistic concept. While size of the brand’s
community and level of activity are important factors, the profile of the TG,
the authority of the brand’s platforms and its recall are also equally
important ingredients.
In calculating the ShackMatrix™, we assign weights to the different metrics
on individual platforms in order to combine them into a single comparable
grade that is relevant to the digital objectives of the brand.
The weights are decided based on the relative effectiveness of the platform
to a brand’s community as well as the brand’s own digital goals.
Data Validity and Integrity
We source the data from the brand’s official digital properties. Our scope is
restricted by the data made available through the APIs of the social
platforms we cover.
The coverage of data in this report is restricted to Facebook and Twitter.
More detailed and granular metric studies are done for clients on a project
basis.
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
18. 17:
About Shack
Shack is a digital marketing company which brings together brands and their
customers in carefully crafted, wholesome communities, providing exceptional
experiences for all.
We leverage communities for brands:
In order to create and maintain buzz around your brand you need your target
audience to form lasting relationships with your brand.
We build platforms for the communities:
Being a one-stop solution for all your community building and web-based marketing
needs, we craft comprehensive campaigns, based on careful strategy, encompassing
an entire digital eco-system.
We develop content for the platforms:
Along with creating engagement tools both online and off-line we also encourage and
facilitate generation of remarkably effective and compelling content, in a methodical
manner by our own team, and in a random manner, by your community members.
We measure the impact on the brand:
You need to monitor the impact that the campaign has on your brand. This impact is
not something hypothetical, it is hard, tangible, three-dimensional data that not only
tells you where you presently stand, but also tells you where you need to go and
what path you need to follow with the help of Shack’s proprietary Digital Ecosystem
Management tool. Website || Blog || Twitter
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands