marketing mix extended:building a competitive scenario from web 2.0

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Marketing Mix Extended:building a competitive scenario

from Web 2.0Rome - December 4, 2008

Valeria Severini

October 2008Freedata Labs Ltd

500, Chiswick High RoadLondon W4 5RG

UK

Freedata SrlVia Stradivari, 4

20131 Milano (MI)Italy

Members of:

Pioneers in Social Data

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• …traditional DM marketing campaigns do not bring the results they used to

• … budget constraints on marketing force marketing managers to find new and innovative ways to drive business

• … more and more pressure is on ROMI (Return On Marketing Investments) and funnel

• …the Web is still highly underused in marketing mix, relying only on banners, newsletters or similar

• … in the 21st century people still rely on advices from others (on the Web or in the real world) to buy products

It Is True That …

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Company vs. User Generated Content

DM Marketing- Advertising- Newsletters

- Events- e-mailing- Banner

- Sponsorships- Company Forums

- ….

Company Company Generated ContentGenerated Content

WOM(Word of Mouth)

A single user generating acts that distribute towards others

marketing relevant information through all the channels

available in the 21st century.

User User Generated ContentGenerated Content

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Marketing Mix Engine

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How Marketing Reaches Customers

CRMCustomer Knowledge Base:

CKB(reaching existing and potential

customers)-Newsletters- e-mailing- Web site

-Company Forums- Call Centre

- Communities- Education

- Events

Brand(reaching customers through brand image)

- Advertising- Banner

- Sponsorships- PR- ….

Social Networking(understanding what

people say and advice others)

- Communities- Forums- Blogs

- ….

Cal

l to

actio

n

Metrics

Cal

l to

actio

n

Metrics

- Who’s talking ?- What people are saying ?- Who are the influencers ?- How to measure ?

Buzz Overall MetricsBuzz Overall Metrics

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Marketing Mix ExtendedMarketing Mix extended now includes both

DM initiatives (from CKB and brand) and WOM initiatives (from Social Networking).

All marketing initiatives generate buzz (buzz overall) and sentiment (advocacy).

Buzz & Advocacy can be measured on the Web.

WOM initiatives can be tracked and measured, as traditional DM initiatives,

both off-line (people talking to each other and exchanging advices) and on-line (people talking to each other and exchanging advices

but leaving traces of their conversations and sentiment on the WEB).

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What We Provide: Fast Facts

• On-line identification of topics & features that affect Company offering and positioning amongst competition

• Buzz (overall and related to social networking), advocacy measurement and tracking overtime (change of tone, change of buzz, …)

• Competitive Quadrant with Company & competitors position against buzz and sentiment

• Marketing Insights to drive actions aimed to new potential customers and improve visibility

• Word Of Mouth Marketing campaign along with measures outcomes for investments and ROI

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Launch of a WOMCampaign

Overall Path Timeline Proposal

Initial Web Snapshot & Positioning

month 0 month 4

4 Months Web Monitoring and Analysis 1 Year Web

Monitoring and Analysis

month 12month 6

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Key Building Blocks

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Overall & Social Buzz

Buzz Overall tells how much offerings/brands (Company or competition) are talked about on the Web overtime and helps predict future trends when analysed in conjunction with marketing activities and/or sales data. Buzz Social concentrates only on the amount of conversation that arises from social networking sites and it does not include institutional or corporate communication. An example:

Is it possible to explain these changes ?

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Net Promoter® Score

Net Promoter ® Score is used as a proxy of the advocacy observed towards a product on the Web (posts in forums, newsgroups, blogs, …).

Posts are downloaded crawling different social networking sites (defined as “sentinels” sites, rotating them overtime to improve

effectivness), and analysed using semantic tools to score them towards negative, neutral or positive sentiment.

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Advocacy: The Brand Race Quadrant®

Buzz vs. Advocacy (Net Promoter® Score) is depicted in a quadrant (The Brand Race Quadrant®) where competitors offerings can be easily compared. Marketing actions can leverage on this positioning map and define the proper path towards success.An example:

140270056713

Buzz

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Topics of discussion and features tracking around the products/offerings as they emerge overtime from the Web helps marketing adjust initiatives and communication as well as position the product against competitors. An example (language: Italian):

Topics & Features

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Semantic map shows the “attraction” of multiple adjectives towards brands observed. An example (language: Italian):

Semantic Map

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Buzz on Conference Topics

•Buzz on conference topics has been collected from main search engines for Italy during the week before the conference. •It is not to be intended as a detailed analysis of the topics around the conferences, but as an example on how we can work on them to build a comprehensive competitive scenario

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The Brand Race Quadrant® For Some Companies Attending The Conference

It is not to be intended as a detailed competitive quadrant for the companies mentioned, but as an example on how we can work on them to build a comprehensive competitive scenario. Companies depicted above belong to an heterogeneous market offering. Powered by

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Traditional DM vs. WOM Campaign

TargetProspect

Unique Selling Proposition

Purchase

Reach & Frequency

Target Influencer

(Ranking Model)

Content that will be talked

about

Conversation

Accelerators

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Word Of Mouth Marketing Campaign

Who are and what distinguishesinfluencers?

motivation- attend events- join forums- social behaviour- networking-- ….

Targeting Model

Customer & Prospects Data, Web log files, social

networking data

Influencers Ranking Model & Selection,

choose of accelerators to “activate” influencers

WOM CampaignWOM Campaign

Measurement(# of new prospects, #of new leads, …)

Influencers exist in every market and can be estimated as 10% of the overall population. So to drive Word Of Mouth Marketing it is necessary to:•Identify influencers for my products (they spread positive advocacyand buzz)•Reach them and run a WOM Marketing Campaign•Measure buzz , advocacy and sentiment Powered by

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• Customer Knowledge Base sources to be analyzed and scored:– CRM– Company Forums, Newsletters, …– Access to Company Web sites logs– Call Centre logs– Education logs

• Influencers ranking based on:– Send a lot of e-mails, – Very social, – Big address book, – Interest in the area – Confidence

• Feedback forms from marketing events– Add questions such as: How many e-mails do you send a day (less than 10, between 10 and

25, over 25)? Do you tend to speak on conference calls? Do you check blogs for information once a month, once a week, once a day? Do you find that you ask others for information about this products/solutions more often than others ask you? Would you be willing to spend 10 minutes helping us understand what Company could do to improve its' offering?,…

• Ad-hoc telephone calls on a selected sample of Company customers/prospects

Ranking & Targeting Influencers

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Setting Up A WOM Campaign

Setting up a WOM campaign requires:• Planning & Project Management : monitoring buzz, analysing

results, strategic planning of campaign, developing the campaign briefs, identify influencers, project management of campaign, etc.

• Creative developing the creative concept, copywriting, design, etc.)

• Building develop email, develop interactive site, manage print of off-line elements, select/manage data, telemarketing scripts, etc.

Fredata Labs suggests to run a WOM campaign after 1 or 2 months from the initial snapshot on one single product/offering

targeting 10,000 influencers at least (setting up a WOM campaign costs pretty much the same for 1,000 or 10,000 influencers).

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Conversation: How Will They Talk About It?

• Mostly with each other…away from big brands

• We supply the ‘nuggets’ for conversations and leave them to it

• Accelerators will boost spread of word of mouth, they can be gadgets, free trial, downloadable products, ….

• We need to focus on information distribution and on accelerator

– Encourage them to share experiences and make recommendations forimprovements

– Online & offline prompts during 4 week period– ….

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Targeting 10,000 InfluencersRecruit potential

influencers

Company

• Intro to Company

• How to trial product

• Story behind the brand

• How to try it, rate it, and talk about it

• …

• Report back

• Trade experiences

• Connect with others

• Sample new features

97% participate

5% conversion expected

Q: 500

eeQ: 10,000

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Amplification Rate

x 10 x 4 x 1?

1 unit of advocacy

generates c. 62

conversations

6 weeks

G0

4 weeks?

G1G2

G2X

Relay rate:Powered by

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Contact Flow: Ongoing

ee

Updates & Feature Prompts

• New product ideas

• Research panel

• Super Ambassadors’

Q: 50

DMCompanyCompany

Mentor Mentor GroupGroup

10%

TeleconferenceAs move deeper into functionality, create subgroups that reflectareas of interest and expertise.

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Projections Estimates

Dynamic Quantity ResultInfluencer call/opt in 10,000 500 (5% conversion)G0 activation 500 485G1 conversation 485 4,850 (5,335)G2 conversation 4,850 19,400 (24,735)G3+ conversations 24,735 24,735 (49,470)

Conversion of conversations to trial (max expected): 49,470 x 50% = 24,735

Conversion of trialists to customer (max expected): 48,450 x 20% = 4,947

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Measurements of the WOM Campaign

• Conversations (#)• Conversions

(download trials, attend events,…)• Buzz

(from the Web sites identified as “sentinels”)• Advocacy

(using Net Promoter ® Score, before and after the campaign)

• Position moving in The Brand Race Quadrant®

• Funnel tracking

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Marketing Questions To Be Answered

• Has sentiment moved in response to my campaign(s)?

• Has sentiment moved in response to my actions (e.g. in customer service)?

• Can I trace other responses?

• Have I become more influential?

• What new topics are driving conversation, how can I respond?

• What is the outcome of the campaign relative to a traditional DM ?

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Contact

Valeria SeveriniValeria.severini@freedatalabs.com