THis is the presentation on social media and its role in driving loyalty that I gave while at The Planning Agency, at the SM conference organised by Pacific Conferences in Singapore and Hong Kong.

1. The Planning Agency
The Insight Led Agency
Friday Oct 24 2011

3. Today’s Topic
Social Media, its role in Loyalty

4. Our First Observation

5. Social media being touted as the Holy Grail
A new way to build loyalty

6. Our POV

7. Social media won’t replace existing forms
of loyalty building, but add to them

8. WHY?

9. When we speak of loyalty, we’re looking at
behaviour not attitude

10. Behavioural loyalty is fundamentally an outcome
of recognition and differentiation

11. but in a business context not a social context

12. An effective loyalty marketing programme
recognises and differentiates between
customers based on value or potential value to
the organisation

13. Don Peppers on Customer Management

14. Peppers and Rogers, 2003, replayed by Vladimir Dimitroff, Prism Consulting London on Slideshare

15. A social media programme on the other hand
talks to customers based on social influence not
business influence

17. http://online.wsj.com/article/
SB10001424052748704637704576082383466417382.html

18. There is an inherent loyalty issue in this

19. People are rewarded based on popularity
not actual transaction or purchase

20. The corresponding impact is
ALIENATION

21. So can social play any role in creating
loyalty?

22. YES

23. This role must be carefully understood
however and the discipline introduced in areas
where of genuine strength/advantage

24. What social is really good at?
Understanding Enhancing Enhancing Empathy/
Issues Experiences Exposure

25. If Singapore’s leading taxi service were
listening to customers on social media this
is what they’d know

26. People are People are
pissed off about pissed off about
peak charges waiting time
People are People are
pissed off about pissed off about
pick up refusal aggressive driving

28. Many companies don’t know how to
listen, and how to act as a result

29. They are, in effect, Social Cripples

30. A company that failed to listen and act
It’s ok to pick a fight. Just not with the wrong person! Unit did just that. It refused to
fix musician Dave Carroll’s guitar that the airline broke during baggage handling.
Dave (clearly disgruntled) did the only thing he could - write a song about it!
The rest as they saw was history.

31. http://www.youtube.com/watch?v=5YGc4zOqozo

32. DKNY had its
site taken over by
PETA (to protest
rabbit fur) that
cleverly used
profile pictures
and message
posts in a
coordinated
move that made
their page look
like this.

33. Comcast’s service was so bad, it led to one individual setting up a site called
Comcastmustdie! A viral video that had CC technician fall asleep on the phone after being
on hold for 1 hour with HQ, went super viral on You Tube. Then came along Frank Elliason
Named Time Twitter Man of the Year, he took 8 employees from customer service and set
up Comcast Cares. A service that used Twitter to answer queries, acknowledge issues and
do its best to resolve them. IN 2000, xxx decided to take down Comcastmust die. The
brand didn’t need it any more, it had learnt and responded to the issues raised.

34. Listening is fundamental to any social
media strategy designed to build loyalty

35. The starting point to success

36. The second area that social media is good
at is enhancing experience

37. This is relevant given what most
organisations today have come to resemble
IMPENETRABLE FORTRESSES

38. Companies can use social media
to break down the walls between them and
their customers

39. Companies that are doing so effectively?

40. Companies that are doing so effectively?
Fairprice was Singapore’s first supermarket to set up a presence on Facebook. The brand
uses the page to not just keep customers up to date but also to respond to queries.
One of the few brands to measure progress, Fairprice uses a variant of NPS to understand
how it is improving strength of customer relationship.

41. Companies that are doing so effectively?
A lot of us have heard of Twelpforce. But basically, it’s a service from best Buy that advises
clients on technological issues they have with gadgets. The genius is you dont have to have
bought the gadget from Best Buy to receive advice or an answer!

42. Social media can enhance relationships by addressing
issues key to them. Often enlisting the help of a
brand’s very own customer base

43. The third area that social media is good at
- building empathy and exposure

44. 3.22m pages of content on Google
We are Social developed this terrific idea for Heinz. It allows buyers to send the can as a
get well card with a prsonalised message on it. Absolute genius!
That led to 3.22 m pages of content on Google.

45. Warren Buffet the rich should be taxed more
3.16m pages of content on Google

46. The 4 Seasons Hotel, Atlanta
Reicheld himself, the high priest of Loyalty, talks about 4 Seasons and how during the
Atlanta Olympics they didn’t raise room rates but kept them the same. Giving regular
customers preferential occupancy. How loyalty inducing is that?

47. What we need to understand?
This kind of loyalty is attitudinal not behavioural.
There may or may not be a commercial correlation.

48. Social media is fun, but metrics are key

49. One brand has measured fans true worth

50. FairPrice NPS
Neutral, no. of real fans (promoters) v/s detractors and passives
calculated with constant measurement along the way

51. Tips for measuring success
Use as many business drivers as possible (Fournaise report)
(revenue, sales, profit, cost elimination)
Speak the language of your CEO - he gives you the investment you need

52. Beyond measurement, beyond academic
truth, how do you make social media a
reality in your organisation?

53. There is only one way
understanding and
Through
Involvement enterprise-wide

54. Ways to instigate this
Management Workshops Evangelists
Presentations that facilitate an an and the creation
that show understanding of of public
what your social media and support for
audience is how others are them and their
saying about using it as part of teams through
you their strategy the CEO

55. Social media structure
Listeners
Action-takers Executors

56. Thinking of using social media to
build loyalty?

57. 1. Be aware 2. Don’t 3. Listen, 4. Measure 5. Involve your
of the two hasten to understand and your success. entire
types of shut down then act. organisation in
loyalty - traditional Quantify it in the
attitudinal transaction Ensure your business programme.
and based conversations terms that
behavioural programmes, are attuned to your CEO You will not
- consider recognise those of your will succeed in
which is the value customers’. understand. your
more they offer - It will get you endeavours
appropriate that social What they are the unless you do.
for your media cant saying is out investment Involvement is
business or wont. there. you need. key to success

58. Thank You and Questions
For answers, e-mail me directly at patrick@theplanningagency.com.sg