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is a philosophy and a business strategy, supportedby a technology platform, business rules, processesand social characteristics, designed to engage thecustomer in a collaborative conversation in orderto provide mutually beneficial value in a trusted andtransparent business environment.It’s the company’s response to the customer’sownership of the conversation.— Paul Greenberg, Social CRM Strategies, Tools and Techniques for Engaging Your Customers
Since March, 2011 Watsons Ukraine investedin Facebook community growth keeping theengagement rate at the high level.The community numbered over30 000 Watsons customers, 60% of whichcorresponded to the Clients core audience.Facebook community was actively used to launchnew products, stimulate sales with coupons,numerous branded campaigns.
It looked like we have a great community…but something was missing…
We actively engaged with Facebook fans, got reachfor key messages, even made 15% out of Listerinesales during the exclusive launch campaign…— How many of them are real Watsons consumers?— How often do they visit Watsons stores?— What products do they buy?— How much do they spend?— How valuable they are for the Clients business?— Can we somehow chance their buying habits?
The agency outlined the objective – to build thesystem that would let in a real time format answerall those questions at the same time wouldbecome a basis for a new channel of relationshipsbuilding with Watsons customers and vendors.The other objectives were:— to substantially increase the engagement rate with community contents— and raise the number of community members/ generate new Likes.
Taking into account gained expertise withmanaging the community for a year-long time,long-term goals as well understanding the insightsof the community fans,we believed the activation mechanicsshould be based on something other thana big prize fans have to fight for.(e.g iPad2, a car, a trip, etc.)
The approach should have met the following criteria:— Relevance in a long-term perspective (the consumer should have an opportunity to join an activation any time and at the same time have the same chanced as those who were the first to join)— It has to be integrated into Watsons core business and its goals (activation should be interesting to exactly Watsons consumers in contrast to those who like to win prizes or motivate the last to become Watsons consumers )
We developed and launched a system thatrewarded active Facebook community members– basically an extension of the already actingWatsons Club loyalty program.In order to earn bonuses in Watsons Club program just forengaging with the Facebook community content, a userjust needed to enter the Watsons Club Card number. Assimple at that!We gave our fans on Facebook what they wanted(savings on purchases) for what they love to do(Like, comment and share the content).
Watsons Club+ is ability to analyze:— customer behavior in Watsons stores— average check size, purchase frequency— socio-demographics profile— additional communication and sales stimulation opportunities, etc.
The Watsons Club+ launch (testing started onFeb. 7, 2012) was supported by:— content in Facebook community (Wall posts)— targeted ads campaign on Facebook (accent on the existing page fans)— Watsons Club+ E-mail newsletter announcement— Ad in Tviy Watsons‘ (retailer monthly newspaper)
In Watsons Club Watsons Club+ VIP generalAveragefrequency of - 1,96 1,08 3,03purchases, amonthAverage check, 64,60 70,78 18,83 100,27UA Hrn. Terrible! :(
But, the aim of every loyalty program is to make regularcustomers better customers. Is this true for a Facebook-based loyalty program? Can we turn Facebook fans intobetter customers? We decided to give it a try:— 2× bonuses for shopping in Watsons for Watsons Club+ members only— The offer is for 6 days only (15-21.03.12)— There was only one announcement made: a post on Watsons Ukraine wall— 14 thousands comments— 1400 «likes»— 870 «shares»
42.7% of Watsons Club+ membersmade a purchase!For similar CRM-based offers a Client faced 9 to 17%rates in the past.* 1451 customer made 2233 purchase during only 6 days(Watsons Club+ members at the time of the offer – 3396.There are about 4k members now)
As a result of Watsons Club+ launch, Watsons Ukraine Facebook pagefaced +8 000 Likes growth during 1,5 months and keeps the dynamicsof +100 new members a day.
Fans engagement since the launch of Watsons Club+ has grown enormously.5000045000 89%400003500030000 Likes25000 Comments20000 Shares15000 91% 91%10000 11%5000 8% 6% 0 Before Watsons Club+ launch After Watsons Club+ launch
30000 54%2500020000 36% Likes15000 Comments Shares10000 46% 47% 52%5000 43% 6% 4% 3% 2% 3% 3% 0 December January February March
Watsons Ukraine — No 1 in the rating of allFacebook pages in Ukraine for engagement perpost.
— Watsons Club+ will be developed as a social CRM and will become a central part of Watsons Ukraine Facebook community.— Watsons gives a lot to Facebook fans, but it gives so much more to Watsons Club+ members!