aitp strategic power of social media for the supply chain
DESCRIPTION
This presentation was done for the AITP Supply Chain SIG on November 18, 2009. If was very well received.TRANSCRIPT
SOCIAL MEDIA:Connecting with Partners and Consumers the
new-fashioned way!
www.sprcompanies.com
IT Professional Services Firm Over 35 years in the Midwest
2
About SPR Companies
Leadership Impact
SPR Companies
Agenda
• True Issues facing the Supply Chain.• What role does Social Media play in the Strategy
of the Business? • Overview of key Social Media Tools.• Overview of key Social Media Listening Tools.• How can Social Media play a role in the solution of
the issues facing the Supply Chain?• Interactive example.
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Supply Chain Challenges
• Monitoring both planned and actual consumer behavior (I’m gonna buy vs. I just bought) is critical. What value does a social media solution bring in comparison to POS information?
• Brand reputation is always critical, but even more so now with top-tier CPG brands losing market share to less costly private label products. It is critical to have immediate responses to customer feedback, issues, concerns, and complaints. Is there a role for social media here?
• Are there any privacy issues around the commercial utilization of social media information gathering and how can they be minimized?
• Supply chain professionals are concerned with the customer “population” as opposed to a “sample.” What are the current and projected representative demographics of those participating in the area of social media
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Because of the relative economic instability, the typical trend analysis and projection models are not meeting business requirements. Simply said, predictive analytics, by definition, do
not function well in times that are unpredictable. When you can’t predict the future with some level of reliability, it is even more important that the business knows exactly what is
going on in real time or near real time. With this in mind, we can think of two areas of importance where social media might provide value to improving supply chain performance
and risk avoidance:
Supply Chain Challenges
• Increasing supply chain responsiveness leading to a more customer-driven process: The ability to treat inventory in transit as available for the safety stock calculations and have the ability to make mid-course changes to shipments.
• Third-party logistics outsourcing. Re-negotiating partner agreements. Innovate with the tools you have or take those same activities and hand them off to a 3PL, and let them do the innovating. The risk of becoming too reliant on outsourcing is allowing ourselves to be less alert and aware of changes. When contracting with a 3PL, we expect them to provide expertise in areas of importing and exporting for example -- specifically in regulatory matters, such as the Transportation Safety Administration's new cargo screening regulations and 10+2 regulations on shipment documentation. There is a need to keep up to date on the latest regulations affecting international trade. http://logipi.com/public/item/244464
• C-Level involvement in supply chain: There is much more attention on the C-suite—with the chief operating officer, your chief executive officer—there’s more recognition on their part of the impact of logistics and supply chain, whether it’s managing the inventory, managing the sourcing, managing the transportation. It’s now more and more that the C-suite executives are starting to really get the impact of supply chain.
• OTHERS??
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SOCIAL MEDIAGet Past the Hype…. Get Down to
Business
SOCIAL MEDIA
Mission & Vision
Strategic Plan
Metrics for Accountability
Marketplace Message
Differentiation
So
cial
So
luti
on
Su
ites
Exe
cuti
on
Fra
mew
ork
• Ahead of Competition• Out of Price Wars
• Direction• Focus• Flexibility
• Delivery to Goals• Accountability• Ownership• ROI
• Feedback• Achievement Targets• Guidance
• Communication• Memorable & Impact• Value• Influence
Innovation
Net Promoter
Influence Market
Leadership Impact of Social Media
Engagement
Many Moving Parts make up a Successful
SOCIAL SOLUTION SUITE.
SOCIAL SOLUTION SUITE Definition….A set of social media channels and the means of measuring actionable outcomes so that you can adjust your market messages to best effect and maximize your Strategic Objectives.
Market Place Message
Campaign
Social Web
PromoterBuzz
MonitorMetrics
Social Solution Suite
MARKET PLACEMESSAGE•
Demographics
• Psychographics
• Industry
CAMPAIGN• Social Channels• Set Metric
Targets• Timing
SOCIAL WEBPROMOTER
BUZZ
MONITOR METRICS
Strategic Objective
• Key Metric Target
Net Score• Key Metric Result
Influence
SOCIAL SOLUTION
SUITEFeedback
What tools will drive your success?• Social networks• Video sharing• Photo sharing• Micro blogging• Blogging• Link sharing• Social calendaring
Social Media Listening Tools
Listening Tools
• Free • Pay
Key Metrics
• Unique visitors• Pages visited• Time on site• Bounce rate• Posts• Comments• Post:Comment ratio• Search engine
ranking
• Sentiment (NPS)• Reviews• Recommendations• Referrals• Tweets• Retweets (RT)• Mentions• Connections• Followers
September 2008 to September 2009 visits to
social networks were up 62%
Social Network Demographics
Statistic Facebook LinkedIn MySpace Twitter YouTube
Monthly Unique Visitors
129M 15M 49M 23M 84M
Gender % 43M/57F 50M/50F 36M/54F 43M/57F 50M/50F
Largest Age Group (% of whole)
45-54 (24%)
35-44 (31%)
0-17 (34%) 35-44 (29%)
18-34 (35%)
2nd Largest Age Group
36 -44 (20%)
45-54 (28%)
45-54 (19%)
45-54 (20%)
35-49 (24%)
Average Household Income
50-75K (36%)
75-100K (23%)
25-50K (39%)50-75K(35%)
25-50K (30%)50-75K (27%)
30-60K60-100K100K+ (27%)
Facebook owns 58.59% of social network market(MySpace visits down 55% in 2009)
Twitter (1,170% gain in market)
Size of Network• 20M
Gender• Male: 43%; Female: 57%
Age• Largest age group of users…
35 to 44 (29%) Next largest 45 to 54 (20%)
Average Household Income• 25-50K (30%); next largest 50-75K (27%)
Connecting with Partners and Consumers the new-fashioned way!
Who are your buyers?
What are your buyers talking about?
When and Where are your consumers talking about
your product?
Why are your consumers talking about your product?
Supply Chain ChallengeWhere should you distribute
your product?
What should my safety stock be?
Supply Chain Challenge
MARKET PLACEMESSAGE•
Demographics
• Psychographics
• Industry
CAMPAIGN• Social Channels• Set Metric
Targets• Timing
SOCIAL WEBPROMOTER
BUZZ
MONITOR METRICS
Strategic Objective
• Key Metric Target
Net Score• Key Metric Result
Influence
Feedback
Brand reputation is always critical, but even
more so now with top-tier CPG brands losing
market share to less costly private label
products. It is critical to have immediate
responses to customer feedback, issues,
concerns, and complaints.
Step 1 – Strategic Objective
• Immediate responses to customer feedback, issues, concerns, and complaints.
• Key Metric Target Customer Satisfaction Sales Volume
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• Strategic Objective• Key Metric Target
Product : 20QIt is a mind reading game basedOn 20 questions. Everyone willlove it especially your tween. Perfect stocking stuffer.
Step 2 – Market Place Message
• Demographics Children between the
ages of 10 – 12.
• Psychographics Inquisitive children Children that like
puzzles
• Industry Electronics
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MARKET PLACEMESSAGE
• Demographics•
Psychographics• Industry
Step 3 – Campaign
• Social Channels Twitter FaceBook
• Set Metric Targets 90% Customer
Feedback Positive 24 Hour Response
Turnaround
• Timing Holiday Delivery
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CAMPAIGN• Social Channels
• Set Metric Targets• Timing
Step 4 – Social Web
• Establish Presence Message Set Up Update Frequency Monitoring of Content Governance
— Who owns it.— Who decides what posts— Who replies— Who responds to metrics— Who owns response times
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SOCIAL WEB
Step 5 – Promoter Buzz
• Influence Message to guide
response
• Feedback Love It, Great,
Awesome, Hate It, Bad, SUX,
• Magnitude Numbers of
Responses Location
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PROMOTERBUZZ
Step 6 – Metrics Monitoring
• Tools to Use Hootsuite Facebook Analytics
• Results Positive Feedback Negative Feedback Turnaround on Issues
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MONITOR METRICS
Step 7 – Net Score
• Immediate responses to customer feedback, issues, concerns, and complaints.
• Key Metric Target % Positive Responses Average Response
Time to customer
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• Net Score• Key Metric Result
MARKET PLACEMESSAGE•
Demographics
• Psychographics
• Industry
CAMPAIGN• Social Channels• Set Metric
Targets• Timing
SOCIAL WEBPROMOTER
BUZZ
MONITOR METRICS
Strategic Objective
• Key Metric Target
Net Score• Key Metric Result
Influence
Feedback
Increasing supply chain responsiveness leading
to a more customer-driven process: The
ability to treat inventory in transit as available for
the safety stock calculations and have
the ability to make mid-course changes to
shipments.
Mood Madness
Punch
Step 1 – Strategic Objective
• Where should I send the product and how much safety stock should I have?
• Key Metric Target Geographic Volume
Forecast Accuracy Sales Volume (Internal
System)
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• Strategic Objective• Key Metric Target
Product - Mood Madness Punch This punch turns colors based on the temperature it encounters. Kids love it. It is a great summer treat for both indoors and outdoors alike. You can buy it in a grocery store near you.
Step 2 – Market Place Message
• Demographics Children between the
ages of 5 - 8 Parents
• Psychographics All children that can
drink sugar flavored beverages.
• Industry Grocery
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MARKET PLACEMESSAGE
• Demographics•
Psychographics• Industry
Step 3 – Campaign
• Social Channels Facebook Twitter
• Set Metric Targets Geographic Feedback Sales Volume (Non
Social Media)
• Timing Spring Months
45
CAMPAIGN• Social Channels
• Set Metric Targets• Timing
Step 4 – Social Web
• Establish Presence Message Set Up Update Frequency Monitoring of Content Governance
— Who owns it.— Who decides what posts— Who replies— Who responds to metrics— Who owns response times
46
SOCIAL WEB
Step 5 – Promoter Buzz
• Influence• Feedback
Love It, Great, Awesome,
Hate It, Bad, SUX, Unexpected uses Mood Madness Punch Moody Mojitos
• Magnitude Geography of largest
volume of feedback Audience
Segmentation47
PROMOTERBUZZ
Step 6 – Metrics Monitoring
• Tools to Use Hootsuite Facebook Analytics Omniture Networked Insights
• Results Geography Quantity of Responses
48
MONITOR METRICS
Step 7 – Net Score
• Immediate responses to customer feedback, issues, concerns, and complaints.
• Key Metric Target % Positive Responses Average Response
Time to customer
49
• Net Score• Key Metric Result
MARKET PLACEMESSAGE•
Demographics
• Psychographics
• Industry
CAMPAIGN• Social Channels• Set Metric
Targets• Timing
SOCIAL WEBPROMOTER
BUZZ
MONITOR METRICS
Strategic Objective
• Key Metric Target
Net Score• Key Metric Result
Influence
Feedback
C-Level involvement in supply chain: More
recognition on their part of the impact of the
supply chain, whether it’s managing the inventory, managing the sourcing,
managing the transportation.
Questions:[email protected]
Questions:[email protected]@talentline411
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THANK YOU!