designing social media strategy in today's market
DESCRIPTION
This is an intro slideshare for AppAddictive training series - Social Media has become an integral part of Marketing and offers an opportunity to influence consumers throughout their purchase decisions. We will discuss the best framework an organization can adapt to leverage the functions of Social Media and develop an effective Social Media Strategy. You will gain an understanding of Word of Mouth and in our training learn how to set up WOM benchmarks and KPI's to measure effectiveness of any marketing initiative.TRANSCRIPT
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Social Media Strategy
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Agenda:• Challenges for Social Media Marketers
• Social Media Framework
• Consumer Decision Journey
• Functions of Social Media – Case Studies
• Measuring Word of Mouth
• Building Social Media Strategy
Social Media Presents Challenges for Marketers:
1. Dynamic Ecosystems• Difficulty to see where and how to influence
conversations about brand• Ever-growing variety of platforms • Diverse and dispersed communities
2. Measurement• No single measure of social media’s
financial impact
3. Scalability• Difficult to evaluate investments in social
media to plan supported growth
Need a Framework for Using
Social Media Effectively…
…Leverages the Functions of Social Media Across Consumer Touch Points
Consumer Decision
Journey…
How Do Consumers become
Loyal Customers?
Old Advertising Model Killed by the Internet & Personal Tech
Fails to describe today’s consumer purchase decisions:1. Assumes: Mass Media educates consumers. Consumersare overwhelmed and tune out.
2. Assumes: Linear path to purchase. Experience with is repetitive.
3. Assumes: Starts with many funnel down to few. Today’s consumers are empowered to research more options.
McKinsey & Company, April 2009
New Model: Customer Decision Journey
1. Consider
2. Evaluate
3. Buy
4. Experience5. Advocate
6. Bond
Active Evaluation Path: Consumer ads or subtracts brands based on perception as they evaluate what they want.
Post Purchase Path: Consumer builds expectations based on experience to inform next decision. Shares their experience with peers.
Loyalty Loop: Consumer decidesto choose same brand for futurepurchases. 2 Types of Loyalty*
Initial Consideration Set: based on brand perceptions and exposure to recent touch points
Moment of Purchase: Ultimately, the consumer selects one brand
*2 Types of Loyal Consumers: Active Loyalists - Stick with the brand and recommendPassive Loyalists – stay with the brand because of convenience but are open to messages from competitorsMcKinsey & Company, April 2009
Trigger
“Social Media is the only form of Marketing that can Touch Consumers at Every Stage of CDJ”
McKinsey & Company, April 2009
McKinsey Social Media Framework
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1. MonitorSocial channel for trends, insights
2. RespondTo consumers’ comments
3. Amplify current positive activity/tone
4. LeadChange in sentiment or behavior
Consider Brand monitoring
Crisis Management
Referrals and recommendations
Brand content awareness
Evaluate Product launches
Buy Targeted deals, offers
Experience Customer service
Fostering communities
Customer input
Advocate Brand Advocacy
Bond
Ste
ps
in t
he
Co
ns
um
er
De
cis
ion
Jo
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ey
McKinsey & Company, April 2012
Social Listening Study Identified: consumers are skeptical about ‘Effectiveness’, Too Waxy, ‘Fake Hair’ commercials
P&G Identified Influencer with right Tone of Voice
Nadine Jolie Beauty Blogger & Author: Beauty Confidential: The No Preaching, No Lies, Advice-You'll-Actually-Use Guide to Looking Your Best
Not your typical “Celebrity Model”
Twelpforce has responded to near 63K customer inquiries via Twitter, enlisted 2600 employees to share their knowledge, and paid for itself via extensive PR coverage, enhanced brand perceptions, and potential savings to the call center http://www.fastcompany.com/1648739/twelpforce-marketing-isn%E2
%80%99t-marketing
Groupon and Gilt Groupe provide consumers with credit for each first-time purchaser they refer. McKinsey’s research shows that direct recommendations from peers generate engagement rates 30x higher than traditional online advertising.
AmEx Sync Program
Twitter:brands to promote special offers on Twitter that would be made available exclusively to users tweeting specific hashtags.#AmExWholeFoods - they would get an automatic 20 percent discount on their next purchase at Whole Foods when they used their AmEx card
Bonobos held a “Twixlusive,” a 24-hour sale…Incentivized Twitter followers by unlocking a discount code after its messages were resent a certain number of times.
As a result of 100 consumers bought products from the site for the first time - 1,200% ROITwitter is 13x more cost effective than any other channel for Bonobos
https://business.twitter.com/en/optimize/case-studies/bonobos/
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How does the McKinsey Framework apply to your Organization?
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“Word of Mouth is the Primary factor behind 20% to 50% of all purchasing decisions”
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Word of Mouth play a crucial role in Influencing Consumers, especially in Emerging Markets
McKinsey & Company, April 2010
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8% to 10% of consumers are influential - whose common factor is trust and competence
Influentials typically generate 3X WOM messages than non-influentials do
Each message has 4X more impact on a recipient’s purchasing decision
About 1% of these people are Digital Influencers most notably, bloggers with disproportionate power
McKinsey & Company, April 2010
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KPI: WOM Equity - Average sales impact of a brand message multiplied by the number of WOM messages
“High Impact recommendation from close relationship is 50x more likely to Trigger purchase than Low Impact by a stranger”
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Learn How to Create Measurable WORD OF MOUTH KPI’s
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Building A Social Media Strategy
5 Steps to Developing a Social Media Strategy:
1. Set Objective: focus on critical Touch Points and barriers to overcome
2. Understand who your “Active Loyalists” and “High Potential” costumers are
3. Identify & select best forums to engage
4. Engage & Lead your Target Audience
5. Foster Advocacy & Bonding – connect Loyalists & High Potentials
Start with an assessment of current efforts…
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LEARN TO CREATE AND IMPLEMENT EFFECTIVE SOCIAL MEDIA STRATEGIES
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