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Presentation slides for the forthcoming workshop on 'Sports Marketing 2.0', Treviso, Italy
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Sports Marketing 2.0‘The times they are a changing’
Dr. Jim Hamill
@drjimhamill December, 2012
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A conversationnot a broadcast presentation
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Agenda
• Morning– ‘Lecture’ and class discussion
• Afternoon– Group work and group presentations
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Group Work
Groups of 4/5 students
Taking a sports marketing organisation of your own choice, evaluate the progress made in adopting Web 2.0/social media and make strategicrecommendations for improvement.
Your evaluation should cover use of Web 2.0/social mediaon their own web site and the extent of their involvementin external Web 2.0/social media sites
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Agenda
• Opportunities and threats for sports marketing organisations from the rapid growth of Web 2.0/social media
• Content– Social media – an overview– Social media in action – examples (non-sports)– Key things to remember about social media– Social media and sports marketing– Social media in action - examples (sports marketing)– Sports Marketing 2.0: strategy development, implementation
and performance measurement
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Let’s start with a few questions?
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Social Media: The State of Play
Where are sports marketing organisations (SMO) with social media?
What progress has been made?
Where are they going?
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What road are they on?
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Our View on Progress Made
Interest and enthusiasm has grown rapidly
Channels are being set up
But lack of strategic planning leads to problems down the line - resourcing, content, customers, performance measurement, business impact and ROI
A broadcast mentality prevails…….
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Is there something fundamentally wrong with our approach to
Social Media?
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Something Wrong…..
Are we using social media as just another PR/marketing channel for broadcasting messages AT customers telling them how good we are?
Is anyone listening anymore?
Have the rules of businesschanged?
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Be Social
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Be ‘Customer Led’
Talking WITH rather than AT your customers is the core foundation of a successful social media strategy
The basis of a good conversation is to listen first
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Social MediaA Quick Overview
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Web 2.0/Social Media
An Overview
»Applications»Features and Characteristics»Implications
Business/Marketing 2.0Web 2.0 Applications
Open sourceOnline Applications/ Web ServicesSocial/ Prof Network SitesSocial Content – Social BookmarkingBlogs or WeblogsWikisPodcasts/ VodcastsVirtual RealitiesMash UpsRSS FeedsMobile Web; Internet TelephonyTwitter
Characteristics
Communities and NetworksOpennessSharingPeeringHosted Services – online applications; the Internet as the platformInteractivitySocial ElementMass CollaborationEmpowermentGlobal
Impact – Wikibusiness
MindsetBusiness IntelligenceCustomer Insight and UnderstandingCustomer InteractionEnhanced Customer Experience –
Rich Internet ApplicationsReputation ManagementSales and Marketing Product Development and R&D e.g.
engage and co-createIT/Software/ApplicationsOperations, Internal Processes and
HRM
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Social Media in Plain English
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How important has it become?
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The Social Media Revolution
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Potential Business Benefits of Social Media
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Business Benefits
• Market Knowledge
• Customer Insight and Understanding
• Customer Interaction
• Enhanced Customer Experience
• Business Intelligence
• Reputation Management
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Business Benefits
• Improved Sales and Marketing
• Identify and network with high value, high growth prospects
• Product Development and R&D e.g. engage and co-create
• Internal cost savings
• Improved Operations and Internal Processes
• Increased ROI
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Potential Business Benefits
5 main areas:
• Market/Customer Knowledge & Insight• Engagement & Reputation Management• Enhanced Customer Experience and Loyalty• Sales/Marketing Effectiveness, Efficiency and ROI• Operations/ Internal Processes (open source and hosted
apps)
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The rules of the game have changed
The 5 key things to rememberabout Social Media
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1. It’s a Revolution
A fundamental and revolutionary changein online behaviour, expectations and the online customer experience. The end of the ‘read only’ internet
Content generated by the network for the network
We are no longer passive consumers of content/brand messages
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2. It’s Social
A conversation not a broadcast platform
Conversations are taking place relevant to your brand – are you listening?
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The Connected Consumer
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3. Power Shift
Social media empowers customers, empowers the network
We no longer control the brand The brand becomes the customer
experience of the brand – experiences that are widely
shared online
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4. Declining Effectiveness
Declining effectiveness of traditional approaches to sales and marketing Does anyone listen any more?
We are no longer passive sheep waiting to be ‘driven’ to your web site
If you treat us like sheep, we will tell youto ‘flock off’.
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Do You Listen?
Source: The Future of Advertising, APA, 17/02/09 as published on Slideshare (www.slideshare.com)
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Do You Listen?
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5. The End of Business as Usual
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The End of Business as Usual
‘Winners’ will be those organisations who fully utilise the interactive power of Web 2.0 technology for
engaging with and energising customer and network relationships
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New Performance Measures
• Business success depends on the quality of your customer base; the strength of the relationship you have with quality customers; and your ability to leverage that relationship
• In a social media era, business success depends on the – Quality of your network– Relationship strength– Ability to leverage
The 6Is Approach
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Performance Measurement
Involvement – network/community numbers/quality, time spent, frequency, geography
Interaction – actions they take – read, post, comment, reviews, recommendations
Intimacy – affection or aversion to the brand ; community sentiments, opinions expressed etc
Influence – advocacy, viral forwards, referrals and recommendations, social bookmarking
Insight – customer insight Impact – business impact
Social Media Monitoring Tools –Audit, Assess, Impact
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The ‘6Is’ Approach
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Bob Dylan
Come gather 'round peopleWherever you roam
And don’t criticiseWhat you can't understand
Your sons and your daughtersAre beyond your command
Your old road isRapidly agin‘
Then you better start swimmin’Or you'll sink like a stone
For the times they are a-changin’
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A note on Inbound Marketing
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Inbound Marketing
Spread your content as widely as possible to get found
Pull people to your web site, blog etc
Flood your ‘funnel’ with suspects
Analyse and Convert
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Inbound Marketing
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Inbound Marketing
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What’s wrong with this approach?
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Drowning in an Sea of Noise
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Our Response
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The Customer Manifesto
We are not sales suspects, prospects or leads. We do not want to be converted
We are no longer an ‘audience’We are people. In fact, ‘We Are The People’
We are your customers and we are King! Social media empowers us. We control the Information Age.
Welcome to our world, not yours!
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The Customer Manifesto
Don’t treat us like passive sheep waiting to be driven to your web site or blog
Use social media to deliver exceptional Customer Experiences
That way, we will become brand advocates and ‘spread the word’ for you
Our network will listen more to us than you
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We are the Children of the Revolution
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Social Media in ActionQuick Examples(Non Sports Marketing)
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In a Web 2.0 Era, the Brand Becomes the Customer Experience of the Brand
A quick ‘personal experience’
Dubai Hotel
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From the web site
• This 5-star hotel and residence offers European hospitality with an unmistakable French touch. The hotel consists of 318 beautifully appointed guest rooms/suites, while the residence offers 112 fully furnished and equipped deluxe Studios and 1-3 bedroom apartments.
• The ultimate in comfort, we offer 318 luxuriously elegant rooms and suites.
• Take a trip. Escape. Go and visit somewhere new and see if we are there… Give in to that irresistible wanderlust. Discovering and staying in the most exceptional hotels in the world has become the modern-day Graal, a game, a quest…
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The Customer Experience of the Brand
Tripadvisor
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From Tripadvisor
• It's getting old, the rooms are unappealing and it will never be more than a business hotel
• Being a Sofitel hotel we expected something quite 'flashy' unfortunately we were let down. The rooms, although comfortable and clean, were not of the standard we expected and were definately not what we expected after looking at the photos on the hotel's website.
• Booking my stay via the Sofitel website after a pleasant experience at several other Sofitel locations over the past 2 years with my new job I was looking forward to a 5 star luxury stay after a stressful business trip. My expectations were reasonable, however certainly not met by this hotel
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11 Million Views
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United Breaks Guitars
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10.2 Million Views
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Crowdsourced NPD
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266,555 on Facebook
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1.6 Million Twitter Followers
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www.skittles.com
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Social Media and Sports Marketing
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Sports Marketing 2.0
• Business benefits for sports marketing organisations (SMO)
• What progress has been made? How well are sports marketing organisations utilising the power of Web 2.0 for building community and network relationships with their tribe?
• Emerging ‘best practice’ examples
• Social media strategy development
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‘Football is nothing without the fans’
Jock SteinManager of Celtic FC1965 to 1978
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Social media and sports marketing A marriage made in heaven?
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A Marriage Made in Heaven
Social Media Sports Fans
Information ‘pull’ rather than ‘push’
User generated content Openness Sharing Collaboration Interaction Communities Networking
The ‘Tribe’ Passion Loyalty Commitment Desire Involvement Community Belonging Family
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Business Benefits to SMO
• Enhanced marketing effectiveness
• Marketing efficiency
• Improved ROI
• Relationships and networking effects – engage and energise – increased fan loyalty and commitment
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'Internal' Use of Social Media*
• Increased visits to the official site• Increase ‘stickiness’ (length) of site visits• Divert traffic from unofficial fanzine sites • Increased advertising revenue• Increased e-commerce sales for the official site• Actionable customer insight, knowledge and understanding • A channel for responding to customer comments and feedback • Enhanced online customer experience• Build community and leverage network effects - engage, energise* Use of social media on the SMO’s own web site
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Use of ‘External’ Social Media
• Social Networking Sites: Sports Marketing Organisation becomes a ‘community aggregator’ - ‘Talk with rather than at fans’ - actionable customer insights
• Blog – for ‘telling the story’• Multimedia Sharing Sites - a very powerful marcoms channel leveraging
networking and ‘word of mouth’ effects • Podcast Sites: Provides the SMO with a rich media channel for maintain
on-going dialogue with customers/fans • Virtual Reality: ‘virtual stadium’ allowing fans to interact with each other
in a virtual space• Mapping Tools: - satellite images of the Stadium etc. Can enhance the
online customer experience leading to increased site visits, advertising revenue and e-commerce sales
• Mobile apps
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What progress has been made?
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Progress Made
• 2008 Study – evaluation of the Web 2.0 progress made by the top 20 football teams in Europe
• 2011/2012 update
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Internal Use (own web site)
• UGC (User Generated Content)– text, images, video, wiki
• User FOD (Feedback, Opinion, Discussion)– blog, forum, ratings, favourites, online chat
• RIA (Rich Internet Applications)– widgets, mash-ups, podcasts/vodcasts
• Folksonomies– social tagging, social bookmarking, tag cloud
• Feeds– content feeds in and out
• Community– site community
• External Links– to other 2.0 sites
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External 2.0
• Social Network Sites– facebook
• Multimedia Sharing Sites– Youtube, flickr
• Podcast Sites– Itunes
• Twitter• Linkedin
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2008 Results – very limited progress
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2008 Results – very limited progress
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2012 Update
Top European Football Clubs – Facebook/Twitter League Tables,
2011/2012
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Some Useful Links
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Some Useful Links
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October 2011
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October 2011
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EPL Clubs – High Numbers
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Few ‘Replies’
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67% are ‘Replies’
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Progress?
Good progress in channels being used and number of ‘followers’/‘fans’
But are they using it in the right way?
Fan engagement or broadcasting?
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Broadcasting or Engagement?
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Twitter Profiles
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Column 6 – only 6% are ‘replies’
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Stats from twtrland.com
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A Broadcast Mentality
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Is fan engagement enough?
What about fan ownership?
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Fan Ownership?
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Crowd Power
• The ‘crowdsourcing’ movement - could this help to break down barriers to fan ownership of clubs?
• ‘Crowdfunding’ is the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support a ‘common cause’. Why can’t football clubs be funded this way through an online community membership scheme?
• ‘Crowdsourcing’ could also provide a solution for decentralised, democratic fan control
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Crowd Power
• Rather than a decision-making structure where total power lies with a small wealthy elite, in a crowdsourcing model power would lie with the community (or crowd)
• Mass collaboration, rather than leading to anarchy, will often result in better decision-making building on the collective intelligence of the crowd.
• Why does control have to be in the hands of a small number of oligarchs when the collective intelligence of the masses will always be greater than that of the few?
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Emerging ‘Best Practice’ Examples in Sports Marketing
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Ebbsfleet Utd 2007 Fan Takeover
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MyFootballClub.co.uk
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Examples
Chelseawww.chelseafc.com
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Standard Home Page
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The Shed
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Chat
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Fan Blog
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Images
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Player Ratings
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Pick the Team
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Rumours
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Facebook – 7.6 million
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Youtube
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Flickr
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Many other interesting developments
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Others
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A good site
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Run by a Celtic Supporter
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Mission Control – Fan Management
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Euroleague Case Evaluation
How effective are Euroleague using social media – internally and externally?
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Web Site - little evidence of SM
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Its under fun
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130,469 Twitter Followers
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twtrland score – high engagement
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Live Score Updates
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114,000 Facebook ‘Likes’
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Use of QR Codes
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45m YouTube Views
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Limited Use of Google +
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Mobile
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Euroleague
What ‘Buzz’ is being created?
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Social Mention
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Social Mention
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Topsy
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Shows Trend in ‘Mentions’
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Fewer ‘mentions’ than SPL?
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Influence
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‘Getting There’
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Practical Adviceand Next Steps to Avoid the Road to Nowhere
‘Social Media Planning Pays’
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‘Getting There’
• Get more involved• Learn more• Develop a strategy• Implement• Monitor performance and business impact
‘Be Customer Led’
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Get more involved and learn more
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Develop a Strategy
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Social Media Strategy and Action Plans
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Social Media Strategy and Action Plans
• Use a simplified Balanced Scorecard approach to social media strategy development and implementation
• Will ensure that your future social media actions and initiatives are fully aligned with and supportive of agreed business goals; that KPIs are agreed for evaluating on-going social media performance, business impact and ROI; and that all key success factors are considered, including organization, people and resource aspects
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Develop a Strategy
• What is the overall social media vision for your organization?
• What are the key objectives and targets to be achieved?
• Who are your customers?
• What are the key actions and initiatives you need to take?
• Organisation, resource and people issues
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Social Media Strategy Map
Brief statement of your overall 2.0/Social Media Vision and Mission Strategic Objectives Customer Perspective Internal Management Perspective Organisation Perspective
Strategic Objectives KPIs / Targets
KPIs / Targets KPIs / Targets
KPIs / Targets
Customer Group 1
Customer Group 2
Customer Group 3
Customer Group 4
2.0/Social Media Initiative 1 - Objectives - KPIs - Targets - Actions
2.0/Social Media Initiative 2 - Objectives - KPIs - Targets - Actions
2.0/Social Media Initiative 3 - Objectives - KPIs - Targets - Actions
2.0/Social Media Initiative 4 - Objectives - KPIs - Targets - Actions
Organisation People Resource
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Key Questions to Address
• What is the overall social media vision for your organisation?• What are the key objectives and targets to be achieved from
social media? Are these fully aligned with and supportive of your overall business goals and objectives?
• Who are your customers? Where do you find them ‘hanging out’ on social media? How can you best engage with them?
• What are the main Social Media Actions and Initiatives you need to take – short, medium and longer term?
• What generic social media strategy should you follow (number of channels used/ depth of engagement in each channel)?
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Key Questions to Address
• For each priority Social Media Channel, what are your core objectives for that channel; what KPIs will be used for measuring on-going channel performance; what are your targets for each KPI; what key tasks are needed to achieve these targets?
• Do we have the right organisational ‘culture’ and ‘mindset’ for Social Media? ‘Be social before doing social! Is the right organisational and decision-making structure in place?
• Has agreement been reached on resource allocation?• Who will be responsible for your social media activities? What
balance has been agreed between internal and external roles and responsibilities?
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Key Questions to Address
• Who is the Social Media Champion?• Do you have agreed Social Media Policies and Guidelines in
place covering ‘Proper Use’, ‘Content Management’, ‘Customer Response Times/Quality’ and ‘Legal’ aspects?
• Performance evaluation and business impact
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Potential Business Benefits of Social Media
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Business Benefits
• Market Knowledge
• Customer Insight and Understanding
• Customer Interaction
• Enhanced Customer Experience
• Business Intelligence
• Reputation Management
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Business Benefits
• Improved Sales and Marketing
• Identify and network with high value, high growth prospects
• Product Development and R&D e.g. engage and co-create
• Internal cost savings
• Improved Operations and Internal Processes
• Increased ROI
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Potential Business Benefits
5 main areas:
• Market/Customer Knowledge & Insight• Engagement & Reputation Management• Enhanced Customer Experience and Loyalty• Sales/Marketing Effectiveness, Efficiency and ROI• Operations/ Internal Processes (open source and hosted apps)
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‘Be Customer Led’
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Be Customer Led
• Who are our customers, community, tribe?
• Where do they hang out in social media?
• How can we best use Social Media to deliver an exceptional customer experience at all stages of the customer life cycle?
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www.mashable.com
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Who Are Your Customers?
• Your Social Media Strategy should be aimed at building a ‘quality’ customer base i.e. a strong online network of high value, high growth potential customers providing your company with a strong foundation for achieving sustained growth and profitability
• First step:– Undertake a detailed Customer Mapping and
Segmentation Analysis to identify your ‘Most Valuable’ and ‘Most Growable’ customers (actual and potential)
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Strategically position your customers on a Customer Value Matrix based on
Customer AttractivenessProbability of Success
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Customer Value Matrix
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Strategic Implications
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Quality Customer Growth Programme
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Business Benefits of this Approach
• Concentration of effort and resource on `quality’ customers – your ‘Most Valuable’ and ‘Most Growable’ customers
• Improved value delivery to existing high value customers. Build learning relationships with them allowing you to better service their emerging needs and wants through highly customised and personalised products and services
• Maximise customer retention, loyalty and advocacy; ‘Up’ and ‘Cross’ selling opportunities
• Maximise customer profitability and lifetime value
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Business Benefits of this Approach
• Acquiring new `quality’ customers becomes easier because you have got it right for existing customers
• Cost savings and improved marketing/sales efficiency through targeting limited resources on `quality’ customers (actual and potential)
• Building sustained customer and competitive advantage through customer differentiation and brand advocacy
• Erection of loyalty barriers preventing your competitors from stealing your `best’ customers
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Social Media Monitoring
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Monitoring the Conversations
• Use Social Media Monitoring Tools to identify where your customers ‘hang-out’ online and to monitor the conversations relevant to your brand – also for measuring the ‘buzz’ about your brand
• No or low cost tools such as Google Alerts, Yahoo Pipes, Social Mention, Topsy, IceRocket, Blogscope, Blogpulse and ViralHeat
• More expensive and sophisticated tools such as Radian6, Alterian SM2, Sysomos Heartbeat and Infegy SocialRadar
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Social Media Monitoring
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The Customer Experience
Use Social Media to enhance the customer experience at all stages of the
Customer Life Cycle
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Customer Lifecycle
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Action Plans
Key issues in implementing your social media strategy
– Channel Action Plans– Performance Measurement
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Channel Action Plans
• Once your Social Media Strategy has been agreed, brief Action Plans should be developed for each priority SM channel
• Cascade the Balanced Scorecard approach to each priority channel e.g. Twitter, Facebook, Linkedin etc
• But not ‘Paralysis by Analysis’
• The Action Plan for each channel should include a clear statement of…..
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Channel Action Plans
• Vision• Channel Objectives• KPIs and Targets• Customers• Key Channel Actions and Initiatives for ‘getting there• Organisation, resource and people issues• Tools and applications• Performance measurement• Do’s and Don’t’s
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Performance Measurement
To ensure that your Social Media activities deliver high ROI, it is important to monitor, measure and evaluate your social media performance on an on-going basis. Key questions to address:
•What social media performance measures and KPIs should be used – both in terms of the overall ‘buzz’ created and measures for individual channels?
•What tools/software will be used to assist performance measurement?
•What reports will be produced, for who and how frequently?
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Performance Measurement
Should be undertaken at three main levels:
•Individual social media channels
•Overall ‘buzz’
•Business Impact
Using the 6Is approach
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Organization, Resource and People Issues
• Organization, resource and people issues sit at the bottom of your SM Balanced Scorecard NOT because they are the least important issues to address. In fact, the exact opposite is true. The success of your social media strategy is very much dependent upon appropriate decisions being made in the areas listed below:
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Organization, Resource and People Issues
• Do we have the right organisational ‘culture’ and ‘mindset’ for Social Media? ‘Be social before doing social!’ Is the right organisational and decision-making structure in place?
• Has agreement been reached on resource allocation?• Who will be responsible for your social media activities?• Do you have agreed Social Media Policies and Guidelines in
place covering ‘Proper Use’, ‘Content Management’, ‘Customer Response Times/Quality’ and ‘Legal’ aspects?
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In Summary……..‘Social Media Planning Pays’
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Thank YouQuestions
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