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Session 1b Wilson - The Consumers' Perspective

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Veröffentlicht am

Social Media Conference, Glasgow for Business Week, 8/11/11 http://www.energise2-0.com

Veröffentlicht in: Business, Technologie
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Session 1b Wilson - The Consumers' Perspective

  1. 1. The Consumers’ Perspective Professor Alan Wilson
  2. 2. Social Media <ul><li>Social media enables potential customers to talk to one another </li></ul><ul><li>Social media enables companies to talk to potential customers </li></ul><ul><li>Social media enables customers to talk to companies </li></ul>
  3. 3. Customer to Customer <ul><ul><li>Customers can now make their voice heard far beyond their local communities </li></ul></ul>
  4. 4. Customer to Customer Jupiter Research <ul><li>77% of online shoppers read consumer product reviews and ratings before making a purchase </li></ul><ul><li>40% of all social networkers said they use social networking sites to learn more about brands or products they like </li></ul><ul><li>30% of frequent social networkers trust their peers’ opinions when making a major purchase decision, but only 10% trust an advertisement </li></ul><ul><li>Impact of online reviews in terms of awareness and persuasive effect is stronger for lesser known brands than for well known brands </li></ul>
  5. 5. Customer to Customer: Factors Affecting Choice of Hotel % agreeing or strongly agreeing (base = 518 respondents) Hotel’s website 76% A friend’s positive comment on a social networking site 70% Reviews and ratings on online consumer travel forums (e.g. tripadviser, epinions etc) 54% Reviews or recommendations on other travel or hotel related blogs 52% Hotel brand 48% A Stranger’s positive comment on a social networking site 36% Guest Feedback published on the hotel’s own website 35%
  6. 6. Company to Customer: Rush for Brand Presence on Social Media Platforms KLM responding to customer issues on Twitter Sheraton inviting guests to post a review
  7. 7. Brands can be everywhere in social media and still be ignored!! <ul><li>Unlike traditional advertising – people choose to come to your site, read your message or watch your YouTube video </li></ul><ul><li>Companies have far less control of their content and the reach, frequency and timing of their distribution of the message </li></ul><ul><li>If content isn’t interesting or valuable, people go elsewhere </li></ul><ul><li>People may simply see your site as a place for discounts or a convenient place to complain. </li></ul>
  8. 8. Company to Customer: Why do customers bother to come? <ul><li>Value and usefulness (information they want - mumsnet) </li></ul><ul><li>Information that is important (BA /KLM) </li></ul><ul><li>Identification with other people who use the site </li></ul><ul><li>Giving something away for free ( competitions, games, widgets or something) </li></ul><ul><li>Young people want to enhance their celebrity status </li></ul>
  9. 9. But what about all these fans: Starbucks has 25 Million of them?
  10. 10. Does a Fan Buy More? <ul><li>Research has shown: </li></ul><ul><li>Fans are the Heavy Users of the Promoted Brands </li></ul><ul><li>They don’t change their buying behaviour (either frequency or quantity) after becoming a fan </li></ul><ul><li>Facebook as a stand alone platform does not attract new buyers to a product </li></ul><ul><li>Placing large efforts on recruiting fans and followers may be less valuable than trying to recruit new customers through a variety of other media/ sales channels. </li></ul><ul><li>A fan base can be a useful marketing touchpoint – but the budget it receives should be in line with that. </li></ul>
  11. 11. Customer to Company – why interact? <ul><li>They are engaged with the product or service, or idea </li></ul><ul><li>Easy to interact without much commitment </li></ul><ul><li>Activities to do – like online voting </li></ul><ul><li>There is evidence that someone is listening </li></ul><ul><li>They get a response </li></ul><ul><li>The company is willing to join the conversation and serve me better </li></ul>
  12. 13. Practical Implications <ul><li>What types of social media, if any , are appropriate for your market? </li></ul><ul><li>Fan pages do not result in higher brand loyalty or more sales immediately – be patient </li></ul><ul><li>Engagement is more important than solely fan page usage – generating traffic data is not enough, it is about interaction and engagement </li></ul><ul><li>Valuable content is critical – deliver interesting, entertaining and innovative content </li></ul>
  13. 14. Decisions: <ul><li>If you don’t think Social Media is appropriate for your business, that is ok but can you justify this? </li></ul><ul><li>If you’re not listening to online commentary about your business, what information are you missing? </li></ul><ul><li>If you don’t build a brand presence in social media- are you happy that customers may take control of your reputation? </li></ul><ul><li>If you have a presence in social media but you’re not actively managing it, you need to ask yourself:  what does that say about my organisation relative to the competition? </li></ul>

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