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To help drive sales to its small business customers—and bolster its reputation with them—American Express launched Small Business Saturday in November 2010. The company started with a social media campaign to encourage consumers to shop at small businesses in their towns on the Saturday after Thanksgiving—the day after the “Black Friday” shopping spree when millions of Americans descend on malls and big-box stores, marking the start of the holiday shopping season. Amex created a large social advertising campaign on Facebook and also provided 10,000 participating small businesses with free Facebook advertising to help drive sales. It also created a tool to allow small business owners to promote their business via social networks. About 100,000 small business owners downloaded point-of-purchase and promotional materials and, on average, saw a 28 percent lift in revenue over the after-Thanksgiving Saturday of the previous year. The 2011 Small Business Saturday drew 103 million shoppers and generated a 23 percent increase in Amex card member transactions.11
Beverages lend themselves to social-based marketing because they are often consumed in a social context. Beer brands have millions of online “friends” and offer apps to entertain fans and reinforce brand loyalty. Diageo’s Captain Morgan rum offers pictures, videos, and downloadable games for its Facebook friends. In Australia, Coca-Cola’s “Share a Coke” social media campaign included significant social elements: sharing songs and virtual Cokes online, as well as competitions. The company sparked a social media phenomenon when it shipped special bottles of Coke, each with the familiar trademarked script spelling out one of the 150 most popular names in Australia. Coke kept quiet about what it was up to, so the campaign went viral, as social network users speculated about what the special bottles were all about. Coke followed up with a second round, in which consumers could vote for which names should be put on the bottles next. The campaign resulted in a 4 percent volume increase in three months.“‘Share a Coke’ campaign post-analysis,” Marketingmagazine.com, June 22, 2012, and Cannes Lions, “Share a Coke,” Media Lions Entry, 59th International Festival of Creativity, June 17–23, 2012, www.canneslions.com.
While products such as laundry detergent are not used socially and lack the level of engagement that a favorite food elicits, marketers are finding that social technologies can also help raise consumer engagement with products that aren’t found in the food and beverage aisles. In Brazil, for example, Unilever used social media to promote its OMO liquid detergent. The company posted a series of online videos, featuring a high-energy maid called Super Nice, who gives advice on how to manage the household, (e.g., how to iron shirts). References to OMO products are made only when it is relevant for the topic. Once Super Nice gained popularity on video, Unilever dispatched 150 models dressed like Super Nice to grocery stores, helping lift OMO sales by 194 percent in just four weeks.Presentation by Unilever’s marketing director at Proxxima conference, May 2011.
UK-based alternative lending start-up Wonga developed an algorithmic, big-data approach to underwriting microcredit loans that combines data from social platforms with other customer information. Underwriting payday loans—emergency loans issued to borrowers who often have no other sources of credit—traditionally has not been very sophisticated (lenders charge high fees and accept high risk). Wonga’s algorithm allows it to take a different approach, by allowing it to more clearly differentiate between good and bad credit risks among the types of consumers who rely on payday lending. Customers who apply for a loan on Wonga’s Web site are guided through a series of questions. The answers build a record of 30 pieces of simple information about the potential borrower for Wonga. Based on that information and social platforms, Wonga has found it can access a further 6,000 to 8,000 online data points that relate to the applicant. By refining the algorithm and using machine learning from past loans, Wonga was able to reduce its default rate from 50 percent in the first few weeks of the operation to single-digit percentages in the most high-risk loan market.Lucy Tobin, Entrepreneur: How to start an online business (Hoboken, NJ: John Wiley & Sons, 2012).
SOCIAL MEDIA THAT WORKS
SOCIAL MEDIA THAT WORKS!
THE SOCIAL ECOSYSTEMIf you are not part of the conversation you will not be part of the consideration set
THE SOCIAL ECOSYSTEMSocial technologies have literally changed how billions ofpeople live. People rely on their online social connections –often including friends and associates they have never met inperson – for everything from advice on what movie to watchto positive reinforcement for behavior modification (e.g., dietand weight loss). -- Clay Shirkey, Cognitive Surplus.
THE SOCIAL ECOSYSTEMCONSUMER:• 1.5 billion social networking users globally;• 80% of total online users interact with social networks regularly;• Facebook logged its 900 millionth user in May 2012;• Share of online time spent on social networking doubled between 2008 to 2011, from 7% to 15%.
THE SOCIAL ECOSYSTEMCONSUMER PERSPECTIVE:• Social technologies are replacing other web application and uses – email and instant messaging are off sharply in past few years.
THE SOCIAL ECOSYSTEMSOCIAL NETOWRKING ALSO AFFECTS SEARCHING:• In 2010 33% of internet users accessed content (articles, videos, reviews etc) via links through social media rather than search engine recommendations - a 20% jump since 2008.• Facebook overtook Google as the leading source of traffic to YouTube in October 2011.
THE SOCIAL ECOSYSTEMAND THEN HERE IS THE “MOBILE EFFECT”:• There are now more than 6 billion mobile phones in the world.• Smartphones make up more than 50% of new phone sales in developed markets like USA.• Adoption of tablets is growing - As of January 2012 29% of US adults owned a tablet or eReader.• In 20011 more than 40% of active usesrs accessed Facebook through mobile devices monthly.
THE SOCIAL ECOSYSTEMIF SOCIAL MEDIA CAN HELP TAKE DOWN ACOUNTRY, IMAGINE WHAT IT CAN DO TO A BRAND:• According to an NM Incite survey, 58 percent of social media users saythey write product reveiws to protect other consumers from bad experiences to “punish companies”.• More than 60% of social media usesrs say that consumer ratings and consumer reviews are their preferred sources of information about products and services.
THE SOCIAL ECOSYSTEMFinally, the more that consumers communicate on social networks, the more threatened traditional communication models will be.
THE SOCIAL ECOSYSTEMBUSINESS PERSPECTIVE:• 70% of companies report using social networking technologies and 90% of those report some business benefit.• 1/3 share of consumer spending could be influenced by social shopping.• 75% say that social media is changing how they develop their overall marketing strategy and plans. 48% of marketers believe that social media has the potential to build their brand but are not sure how to capitalize on it! Sources: Forrester North American Marketing Leadership online survey and McKinsey Global Institute
SOCIAL IS NOT A SILO OR CHANNEL This value is predicated not on use of socialtechnologies alone, but on creative, thoughtful, and well-executed strategies that incorporate other channels. -- Mckinsey & Co.
KEY TAKEAWAYS• Use social media to help build your brand and engage customers, but don’t expect it to do it alone.• Ensure that your brand-building strategy directs your social strategy.• Then use social to help you: – Build a relationship with the consumer/customer. – Differentiate through an emotional connection – become more remarkable. – Engage them with your brand and provide reciprocal value. “Move your brand forward by having customers add value back to the brand.” – Nurture loyal fans and be a part of their ongoing conversation. – Atomize Content – ADAWAT
DID IT WORK?• Approx 100,000 small business owners downloaded POS and promotional materials.• Participating businesses experienced a 28% on average lift in revenue over the previous year.• 2011 Small Business Saturday drew 103 million shoppers and generated a 23% increase in Amex card member transactions.
DID IT WORK?• Sales up 7% during the campaign period (most successful summer ever);• 378,000 custom coke cans printed in Westfield Malls across the country;• Facebook site traffic increased 870%;• The number one most talked about Facebook page in Australia and 23rd globally;• 76000 virtual coke cans shared;• 18,000,000 plus media impressions.
OMO LIQUID DETERGENT SOCIAL MEDIA MAKEOVERLeveraging social media for low level engagement products…
DID IT WORK?• OMO sales increased by 194% in just four weeks.
TESCO – HOME PLUS SOUTH KOREATaking the Store to the Consumer
DID IT WORK?• 10287 shoppers in first few weeks;• 76% increase in registered members;• 130% increase in online sales;• No 1 in online shopping;• Turned waiting time into shopping time!
WONGA.COM Leveraging social media to enhance bothcustomer experience and company results
SOCIAL MEDIA SCIENCE• Nemo enim pishas vlolupatam• Enim pishas vlolupatam•
DID IT WORK?• Sales went from below category average to well above during the period.• Case volume significantly up.• Millward Brown reported that they had never seen increases like this in the category before.
ROM BAR• Mars and Snickers had entered the market and taken Rom Bar off the top shelf.• Consumers had become board with the brand and moved on to trying something new.• Most young Romanians were disillusioned with the economy/country – felt they needed to go to another country to succeed.
DID IT WORK?• Reached 67% of all Romanians;• 300,000 Euro’s in free Press Coverage;• Most popular chocolate bar in Romania;• 20% increase in sales during the period.
DID IT WORK?• Awareness up 22%;• 14% trial;• Purchase consideration up 6%;• Dos Equis volume up 22% year on year vs 1.1% for the import beer category;• Fastest growing import brand in the country;• First beer brand to reach 1 million fans on Facebook.