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Web 2.0 and the Rise of Social Marketing
Karen Orton VP, Enterprise Solutions
Agenda
Web 2.0 and Social Driven Marketing What is social? Who are these people and what’s their motivation? How it is changing the rules? The New Center of the Universe – your customer Business results?
Tools and techniques
Examples
How to get started
Lithium Technologies
4
Some of Lithium’s customers
Birth of Web 2.0
• Cultural shift from passive Web surfers to active content creators who want to share• Surf (mid‐90s) • Search (2000 ‐ 2005) • Subscribe/Publish (2006 on)
• Shift from push marketing to mix of push/pull • Increased number and two‐way customer dialogues• Easy, inexpensive technology to create/distribute content
• Google, Microsoft, Yahoo promoted use of Web 2.0
Trust Weighted Towards Peers Online & Offline.
6
Rise of Social Computing
Source: Forrester Research
• 113 million Americans research products online
• Word‐of‐mouth valued as best source of information
• 93% vs. 67% in 1977
• Twice the value of advertising and editorial content
• Why it’s powerful• Too much information, too many
products• Global impact• Link sharing and search results extend
the power even more
• Source: RoperASW
Online Word-of-Mouth – Most Powerful
What are they doing? Use of Web 2.0 Tools
Source: Forrester North American Social Technographics Online Survey, July 2007
Do they behave the same? Types of Users
Source: Forrester Research
What can it mean to you?
•Lower cost to market and sell• Use customers to market and sell• Encourage self‐service or peer‐to‐peer inquiries• Get more sales from each visit and more visits• Ensure that every page cross‐sells or up‐sells• Solicit consumer‐generated content
•Increase brand loyalty• Provide a personalized experience• Lower churn; increase lifetime value of customer• Increase sales from loyal customers• Increase customer satisfaction• Communicate regularly and get feedback• Respect customers’ TIME – they can shop 24x7
Questions to Consider – “think before starting”
1) Who are we selling to?
2) What are the best ways to reach our target audience?
3) How do consumers want to interact with our brands?
4) Does our target audience demand consumer‐led marketing?
5) How can we break through the clutter?
6) How do we get consumers to talk about our products?
7) Does our target audience demand consumer‐controlled media?
8) Is our target audience social networking driven?
9) Does our target audience demand consumer‐generated content?
10) What are the global implications?
Engaging + Distributed by the Audience = Viral
Blogging – Direct Communication
Linkedin – Networking/Connecting
Chuck Hester. A veteran of technology public relations going back to the days of print, Hester has become a disciple of the business networking service LinkedIn.
He uses LinkedIn to organize meetings and group dinners during his frequent travels and to maintain a list of hundreds of business contacts.
When he wants to meet someone, he often starts with LinkedIn Answers or a query to his network. The strategy has drawn media attention and made Hester a master connector in tech media.
And that’s paying off for his employer, e-mail service firm iContact.
Micro-blogging – Twitter
Social networking tool to provide customers with company and customer‐generated information
Benefits:Increases customer interaction touch pointsBuilds brand loyalty and trustIncreases customer value/lowers churn rateIncreases frequency and length of visitsDemand generation (WOM)Market research and product feedbackIncreases conversion ratesReduces pre‐sales costs and sales cycle
Built with multiple technologies (forums, blogs, chat)
Customers of communities generate two‐thirds of sales but account for only one‐third of visitors
(Source: 2001 McKinsey‐Jupiter Media Metrix Study)
Customer Communities – Build your own?
19
Source: Measuring Success of Online Communities Customer Centric Approach to ROI (February 22, 2007) Matthew Lees, Patricia Seybold Group
Engage & Measure: Different Views
Engage & Measure: Different Views
20
Source: Measuring Success of Online Communities Customer Centric Approach to ROI (February 22, 2007) Matthew Lees, Patricia Seybold Group
A word about Reputation and Super Users
Product teams
Customer Heroes
Tribal Knowledge Base
Support and Service Marketing
myFICO
Symantec
Sage Software
Community launched in January 2008 ‐ the results:
15 point increase in Customer Loyalty (as measured by SatMetrix Net Promoter score)
Over 6.2 million page views, 90,000 forum logins in 7 months
Customers listened to each other, and provided answers to questions that are simply best answered by one another
Many organizational and procedural changes have been made Changed Contact Us page making it easier to find people & escalate issues.Re‐routed general query calls from sales to customer service
300% more feedback than ever before during Beta phase of product release
Future Shop
Future Shop uses the REST API and created “Aaron” the video avatar that allows customers to ask questions of the community from the home page.
Searches are performed against the community and two other knowledge bases
Communities for WOM and Demand Generation
Idea Generation
Key findings include:
• 76% felt more positively about the company since joining its community
• 52% were more inclined to purchase the company's products
• 82% were more likely to recommend the company's products
• 75% felt more respect for the company• 63% trusted the company more
(Source: 2006 Communispace)
Community Benefits
Integrating the Web 2.0 Marketing Mix
Web 1.0 Marketing MixPublic relations/InvestorrelationsAdvertising Direct marketingTrade shows/eventsSales promotionsCollateral/sales toolsInquiry handling/fulfillmentWeb site/Customer portalsSEO/web optimizationOnline advertisingEmail marketingWebinars/webcasts
Web 2.0 Marketing MixWord-of-mouth/viral marketingSocial networkingNew Media advertising (Internet
radio & TV, mobile) Subscriptions/RSS/Tags/AlertsPodcasting/VideocastingWikisSelf-service search/FAQsCommunities/ForumsBlogs WikisTwitter/Chat/IMWidgets
Web 2.0 Brand Identity
•Consumer‐generated
•More word‐of‐mouth channels
•Customer satisfaction is more critical than ever
OurBrand
BlogsTwitter
YouTube
Product Reviews
CommunitiesForums
Benefits of a Social Media Strategy
1. Gain insight into the customer
2. Increase user engagement
3. Lead generation tools
4. Build brand visibility and loyalty
5. Promote products and services
6. Influence communities
7. Increase Web site traffic
8. Reduce service costs
9. Better for target marketing.
10. Innovate quicker, cheaper, and better
Source: Forrester Research
“Right now, your customers are writing about your products on blogs and recutting your commercials on YouTube. They’re defining you on Wikipedia and ganging up on you in social
networking sites like Facebook. These are all elements of a social phenomenon — the groundswell — that has created a
permanent, long‐lasting shift in the way the world works. Most companies see it as a threat.”
TIME TO JOIN THE GROUNDSWELL
Resources
Groundswell – By Charlene Li and Josh Bernoff
WOMMA – word of mouth marketing associationJeremiah Owyang, Forrester, blog “Web Strategy”Suzette Cavanaugh: Marketing consultant in enterprise social mediaTeaches Web 2.0 Marketing at UCSC Extension Email: [email protected]: http://neomarketeer.blogspot.com/
Social Networking
Lack of Trust in Traditional Media/Communication
36
Increased Purchasing
37
Source: Big Online Spenders Embrace Social Technologies (February 15, 2008) Josh Bernoff, Forrester Research
Viral Marketing
Uses pre‐existing social networks to produce increases in brandawareness or to achieve other objectives through self‐replicating viral processes
Facilitates and encourages people to pass along a marketing message voluntarily
It is claimed that a customer tells an average of three people about a product or service he/she likes, and eleven people about a product or service which he/she did not like
Successful viral marketing programs identify individuals with high Social Networking Potential (SNP) and create Viral Messages that appeal to this segment of the population and have a high probability of being passed along.
Printed brochures Web brochures Online FAQ/chat
Print ads Banner ads SEO RSS Feeds
Direct mail Email Subscription
Focus groups Web research Blogs
Press release Web conference Online Word‐of‐Mouth
Impact on Marketing
40
Source: Social Computing (February 13, 2006) Charlene Li, Chris Charron, Forrester Research
Business benefits
Already love your brand
Persuade them to talk about your product/service to their network
They don’t need to be rewardedThey already do itIt makes them feel importantThey want to look goodThey don’t want to provide bad information to friends/family
Important to be upfront if you post on a message board
Encouraging Evangelists [a.k.a. Fansumers]
Promote thought leadership
Identify, engage, reward high value customers
Solicit user‐generated content
Build traffic and time on site for more sales
Customers feel like insiders; builds community
Company speaks with an individual(s) voice
Comment on news, push information out quickly, introduce topics
Key tactic to efficiently reach most devoted customers and enthusiast market
Blogs as a Marketing Tool
Twitter – How to Apply to Business
Micro blogging – means of staying in touch with friends and family
Place for breaking news
Set up discussion channel with peers and eco‐system
Increase non‐paid traffic to website
Implementation: KeywordsEmployees Following others
What is it?
• Tools for maintaining relationships
• Social, professional/business, special interest, brand networks
• Generally more consumer, but B2B starting to use
Types
• Social networks: Facebook.com, MySpace.com
• Special interest networks: Classmates Online, Xanga (blog‐based community)
• Brand specific networks: customer communities built around a product or service
• Professional/business networks: LinkedIn, Spoke Software, Jigsaw, Plaxo
• Non‐profit: American Cancer Society’s Futuring and Innovation Center
Social Networking
How to leverage for sales and marketing:
• Communications – primarily user communities to solve problems, share best practices• Tools available to track customer satisfaction
• Difficult to use networks effectively for viral or word‐of‐mouth promotions but can’t be commercial – there must be credibility
• Reputation, market awareness, brand loyalty
• Demand generation: Sales uses business sites (LinkedIn) to search for people/titles you want to market/sell to; search for connections inside targeted companies; research industries.
• NBC used MySpace to show clips of “The Office” to build buzz and get reaction before it went on air.
What to watch out for?
Problems with privacy and safety
Social Networking
What about Community Engagement?