Unlocking brand growth with social communities

1. The value and challenges of Social

2. Key elements of successful brand communities

3. A way to systematically get results

4. The right Energy determines short and long term outcomes in social

5. Six things you can do now to improve your marketing results using social

6. Findings of WFA and STATSIT F&B brand research

Here to talk about

“The people out in the marketplace who embrace the values

of the brand, as customers and/or purchase

influencers, are the brand's true “owners”

BladeCreative Branding

[a Brand Community in social or elswhere]

✓ Increase marketing effect of great customer experiences

✓ Increase efficiency of

crisis management

✓ Increase earned media value

✓ Increase overall marketing efficiency

✓ Increase brand relevance

✓ Increase market research efficiency

Average earned media value of every 1$ invested into paid

media of an influencer program is 6.85$

eMarketer

up 37times bigger

up 6days longerWhen influencers are involved, the

crisis situation issignificantly longer and bigger in volume of conversations

CIC,Social@Ogilvy

Drive brand value with social intelligenceChallenges with Social

Globally, the number of people using ad blocking sofware grew by

41% year over year (21.8 bln of ad revenue blocked)

PageFair,Adobe2016

N=70, STATSIT2016

Negative15.7%

Neutral34.3%

Positive50.0%

Negative, 32.9%

Neutral, 54.3%

Positive, 12.9%

Consumers44.3%Researcher and

Developers, 38.6%

Politics11.4% Businesses

4.3%

Publishers1.4%

Attitude towards Adblocking sofware

Attitude towards Publishers/Advertisers

People talking about Adblocking

“On a scale from strong attraction to strong rejection, 90% of brands sit around a point that might be labelled

weakly positive”

MillwardBrown, 2015

Nearly half of those who described themselves as highly

loyal to a brand, were no longer loyal a year later

NPDGroup

1 in 4 customers would switch to a different provider on

the basis of a single negative experience

Thunderhead

Target Group Chatter

N=5,000 Youth (18-35yo) 380k conversations per month

Brand 1.2%0.02%0.006%

STATSIT

If this is the the relative relevance of food and

beverage, then how about other categories…

F&BComp

At the same time, this is what the usual brand message looks like…

Promotional Discount driven No story 1 - way

Our brand is not really that important in our customer’s life. People tend to change their minds all the time. In order to become more relevant, our brand needs to consistently

aspire to connect with relevant people’s values and

lifestyle. Embrace that our brand can inspire, but has no

real control. The best marketing sells with stories

[Our Brand’s Social Media Mantra]

Key Forces of Social Communities

462

336292

188

112

26 24 21 20 4

22 21 22 19 27 19 22 18 8 16

Market Capitalization (bln USD in Dec 2013)

Average Influence Score of Followers (2013)

• Intel had the highest Influence Score for its followers, but the company size is dwarfed by Apple and Google. STATSIT’s further research revealed that it is not just Influence, but People and Energy that play a significant role in the community of a successful brand

Source: Yahoo and STATSIT, SocialWorks method: N=3,000

Upon investigating commercially and socially successful brand communities, we identified their common characteristics

People Energy Influence

Introducing SocialEcho – a systematic way to evaluate the

brand’s social efforts towards building a 2-way marketing ecosystem

SocialEcho

SocialEcho looks not only at engagement, channel performance

and what content works, but most importantly the kind of rapportthe brand content creates if it’s impactful

Drive brand value with social intelligencePeople

People Involved

People Engaged

People

X

Reach is important, but can be bought

A significant decrease in organic reach is not a punishment of the gods of social media, but a message that people want

better content

Drive brand value with social intelligenceEnergy

Energy

Approving

Post likesFavourites

Interacting

CommentsReplies

Advocating

SharesRetweets

Y

Q W C

While most discussions are about products, positive

emotional connection appears to be the key component

in the ecosystem evolving from

1-way (brand leading) to 2-way (consumer leading)

But before being able to engineer the right Energy, we have

to understand what drives the audience within their environment

STATSIT, N=10,000 parents in Indonesia, any topic, text mining. One month’s data.

19%

5%4% 4% 3% 3% 3% 3%

2% 2%

Gasoline Car Books Motorbike House Qurban Child Tickets Food Insurance

Mostly emotional

Mostly functional

2

2

3

7

9

10

17

25

26

29

32

34

36

70

94

Look: Litter

Look: Package

Feel

Liquid absorbation

Flushability

Dust creation

Stacking

Clumpability

Change interval

Price

Disposal / Recycling

Acceptance and suitability

Transport, Storage, Weight

Material

Odor

… if key decision factors can be extracted from a cat litter

category’s conversations, it is likely possible for you

STATSIT’s SocialWorks, manual coding N=674

After the audience and category has been examined, it’s time to engage.

In order to expect engagement and affinity from your customer, one has to contribute first – as in the example of eBay.

“eBay found that by empowering group buying on social

media for gifts, their customers are four times more likely to finish the purchase than otherwise.”

… engaging appropriately with your audience pays back even if you’re not in eCommerce

STATSIT found there was a 39 times greater likelihood that a brand advocate will continue advocating,

if a global technology manufacturer reacted to

a branded tweet

VS

This is what 80% of the social conversations for a

brand sponsorship campaign looked like. It did not achieve a significant

sales effect

… And this kind of conversation drives

relevance and brand equity

If you’re NOT focusing on generating the right kind of Energy, the campaign can have difficulties achieving the

desired sales effect

Formats change, but the fundamentals of marketing are the same.

Great storytelling sells. Video is currently the strongest format for organic reach. It’s evolving quickly into short videos/animations (think GIF and iPhone live photos), augmented

reality and virtual reality

“To the companies and boards who are winding down the marketing function whilst ramping up the digital and data units….I say be careful. You are confusing marketing with tools, channels and feedback loops.”

David WheldonChief Marketing Officer

Start listening

Platform and

content strategy

Establish brand

presence

Engage with

existing customers

Curate existing

UGC

Integrate media with

curated UGC

1st integrated campaign

Measure ongoing social efforts

Always-on strategy

Advocacy program

Curate other

content

Influencer program

Become a brand-

publisher

Right:

Audience

Message

Channel

Time

Brand’s Social Journey

…

from KPIs to ROI

Playing snakes and ladders won’t work.

There are several cost-effective strategies that deliver great value

a. Engaging with customers is cheaper than producing contentb. Curating content is cheaper than producing contentc. An advocacy program is cheaper than an influencer program

Drive brand value with social intelligenceInfluence

Z

N M

Influence

Network

Friends of engagersFollowers of engagers

Affinity with brands

Fans

Attracting influencers organically takes place as it does with other consumer experiences – they are drawn to dedicated

communities, great products and services.

However, brand advocates should be systematically rewarded for spreading the word

Content Sharing and Engagement = $$$ of social

STATSIT found that inviting 33 influencers to a sponsored event

delivered 16x more engagement for H&M than the brand’s own branded social channels

While non-communal users are important, the

Communal users (Autocrats, Fans) are the real drivers

of the 2-way eco-system and help to increase brand

Influence

Fan – a behavior advocating a brand with conviction

Product update by Chobani saying they are not delivering upon the original brand promise of 0% fat, but its a range from 0.25% - 0.5%

Seems caring and honest

This could attract a mixed reaction...

Here is what can happen when you have a healthy brand community with ample Fans

Instead…Consumer1 posts a

R&D idea

Brand acknowledges feedback

Consumer1 explains more

A Ranter steps in to stir the mood

Consumer1 provides more evidence on idea

Consumer1 explains idea further…

Ranter doesn't stop…

Consumer1 seems irritated, explains more politely. By now has given a lot of detail

Consumer2 offers an alternative

Consumer3 acknowledges Consumer1’s idea

The Ranter keeps on Ranting

Consumer4 acknowledges Chobani as a brand and products

1. Evaluate your current strategy by People, Energy and Influence. It’s likely that Energy will need the biggest focus

2. Engage with your audience in real conversations. Don’t be afraid of your own customers

3. Consistently attract and incentivise Fan behavior

4. Find smart ways to curate user-generated content; almost everyone’s activity levels can be significantly higher

5. Be ready to respond within the first 8 hours of a crisis in branded social channels in order to derive cost savings from crisis management and digital

6. Find out your audience’s emotional, rational and key decision making drivers for producing great content

6 things you can do now to get better results in social

Unlocking brand growth for F&B brands

Step 1: 12 leading F&B brands in Indonesia were chosen

Step 2: Although all relevant social platforms were observed, Twitter and Facebook

proved to be the most universally active for brands, and thus were of primary focus. By default the most recently published data was used, gathered prior to August 2015

Step 3: N=2,400 consumer conversations were manually classified using STATSIT’s

SocialWorks method (N=200 per brand). Messages from the brand were not included

People Energy Influence SocialEcho

AQUA beats other F&B brands with a slight margin in the

SocialEcho score, but reaches only half of its potential

15.5

15.4

15.2

11.8

9.8

9.6

8.6

8.4

6.5

5.8

5.2

4.9

AQUA

Indomie

Coca-Cola

Snickers

Bango

Mizone

Wall's

Buavita

Nissin

Enfamil

Frisian Flag

Koko Krunch

max 30

F&B industry average

Every brand has their weaknesses and strengths

6.6

6.1

5.4

5.4

3.4

3.2

2

1.7

0.5

0.5

0.2

0.1

Coca-Cola

Indomie

Aqua

Mizone

Nissin

Wall's

Bango

Buavita

Enfamil

Snickers

Koko Krunch

Frisian Flag

6.1

4.7

4.4

3.6

3.2

3.1

3.1

2.9

2.6

2.6

2.1

0.7

Snickers

Coca-Cola

Bango

Indomie

Koko Krunch

Wall's

Aqua

Buavita

Frisian Flag

Enfamil

Mizone

Nissin

6.9

5.7

5.2

3.9

3.8

3.4

2.7

2.4

2.4

2.2

2.2

1.6

Aqua

Indomie

Snickers

Coca-Cola

Buavita

Bango

Enfamil

Nissin

Frisian Flag

Wall's

Mizone

Koko Krunch

People InfluenceEnergy

max 10 max 10 max 10

F&B industry average

F&B industry average

F&B industry average

Facebook is more communal than Twitter

• The conversations were strongly brand- (not audience) driven• Only Coca-Cola and Koko showed a significant amount of independent, communal activity

N=1284

0% 2% 2% 3%4%

5% 6% 7% 7%9%

14%16%

Wall's Nissin Indomie Snickers Buavita Bango Frisian Flag Enfamil Aqua Mizone Coca-Cola Koko

% of communal behavior

Few brands actually trying to drive community rapport

• The dominance of brands (not audience) was even more overwhelming onTwitter than it was on Facebook• The only small exceptions to this were Aqua, Coca-Cola and Bango – all within the best placed in the

complete ranking

0% 0% 0% 0% 0% 0% 0% 0% 0%1%

2%

5%

Enfamil Mizone Nissin Buavita Indomie Wall's Snickers Frisian Flag Koko Coca-Cola Aqua Bango

N=1116

% of communal behavior

Mizone the most brand- and lifestyle-driven

N=1284

71%

12%

64%

98%

59%65% 68%

64%71%

95%

58%

32%

29%

88%

36%

2%

41%35% 32%

36%29%

15%

42%

68%

Enfamil Mizone Aqua Coca-Cola Nissin Buavita Indomie Wall's Snickers Frisian Flag Bango Koko

Brand Product

Different platforms need a slightly different approach

N=111630%

4%

39%

8%

69% 71%

20%

93%

46%

82%87%

100%

56%

93%

61%

92%

31% 29%

80%

7%

54%

18%13%

Enfamil Mizone Aqua Coca-Cola Nissin Buavita Indomie Wall's Snickers Frisian Flag Bango Koko

Product Brand

Type

FA

Fans advocate

brand with conviction and show a level of affinity

Type

RA

Rantersshare

experiences driven by

impulse and emotion

Type

RE

Reactorsreact upon messages

without much

conviction or emotion

Type

DE

Deal Hunters seek for the best offers,

discounts and

competitions

Type

AU

Autocratsuse brand words as their lingo

The social fabric of archetypes

Communal and loyal

Communal and positive

Communal and negative

Not communal, silent majority

Not communal, ego driven

• Indomie benefits from widespread popularity in the country for years, but their social content can be greatly improved to capitalise on that phenomena

• The share of fans and a good SocialEcho score seemed to be connected, but outliers, like Coke with 4% on Twitter, occurred as well

52%

34%

34%

32%

20%

15%

11%

8%

6%

5%

4%

2%

Indomie

Aqua

Bango

Buavita

Coca-Cola

Wall's

Mizone

Frisian Flag

Koko

Snickers

Nissin

Enfamil

Share of Fan Behaviour

N=1186

38%

26%

18%

18%

11%

7%

4%

4%

3%

2%

0%

0%

Snickers

Indomie

Aqua

Buavita

Frisian Flag

Bango

Coca-Cola

Nissin

Mizone

Wall's

Enfamil

Koko

N=1284

3.1

6.9

5.4

max 10

15.5Max 30

RE69%

FA18% DE

1%

Best score for friends/followers in People

2x bigger share of Fans than Twitter

- People: reach FB 2mil+, Twitter reach of 250,665- Energy: great variety of content, frequent videos (17%), but brand not conversing- Influence: best influence from observed brands, avg Twitter follower’s followers 124,000

Opportunities:- Real brand engagement with Fans is almost missing- Utilise brand’s social projects in content, to gain longer term effect of branding- Utilise existing customer UGC to personalise the brand image- Consider increasing post frequency to increase engagement (currently 0.5 per day)

4.7

3.9

6.6

max 10

15.2Max 30

- People: significant reach, FB at 2mil+, Twitter at 202,980- Energy: Coke ID campaign generates authentic consumer-generated conversations- Energy: Coke engages itself casually, creating a positive associations

Opportunities:- Increase frequency -> start curating and amplifying consumer generated content- Develop ways for Fans to become part of something more meaningful

RE89%

FA4%

20% more effective in likes / favourites. 75% less effective in generating Energy

Driver of People score

What did we learn while doing this?

ü Having talked to dozens of brand managers, it is clear that the industry needs one simple, yet comprehensive metric to measure a brand’s social efforts vs competitors, across all channels

ü Most brand marketers still struggle with showing value. We believe too much emphasis is put on reach and general engagement, rather than creating the right Energy (like the most

commercially successful brands do)

ü Social is continuously changing, thus SocialEcho is far more developed in 2016 and will continue to evolve

People InfluenceEnergy

SocialEcho with actionable recommendations

Over 30 metrics about location, timing, emotion, network reach, share of fans and more

Recommendations

Analysis

Mismatch of audienceOptimal message timing

Channel priorityAudience interests

Engaging content examplesBalance of topics

Engagement opportunities

Emotional toneBalance of product vs other topics

Posting frequencyBest case content examples

Influencers to work withPartners to work with

Drive brand value with social intelligenceThank you

siimulation