social india
TRANSCRIPT
FUTURELAB
Don’t Try This At Home
Or actually.....please do!
FUTURELAB
Why are we here?
A new age of media
The death of advertising
The Digital trap
Finale
(Organisation)
(Segmentation)
Conclusions
A new model
Relevance
Engagement
Reputation
Welcome
What is this talk about
Who am I
Who are We
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A P
ers
on
al In
troduction
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Athens
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FUTURELAB
We are business strategist with a passion for customers, innovation and profit
We deliver new profit opportunities through customer-centricity, commercial sense and hands-on innovation
12/11/2011 4
“Like an architect,
we add to the
vision of our
clients and
manage their
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the desired
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For more information about this
proposal, please contact
Stefan Kolle, Partner
M: +32 (473) 888 996
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We do more than consult, we want to right what is wrong
Opinionated – a desire to make a difference – unafraid to take the high road
Regular speaking & media
appearances
Recognition Thought leadership
• + 10,000 articles
• 75-100k regular readers
+ 10,000 followers
+ 3.15.000 views
FUTURELAB
Why are we here?
So, you‟re going to tell us we need a social media strategy, right?
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(cc) Lynette Webb, 2006
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The traditional marketing
model is being challenged, and
(CMOs) can foresee a day
when it will no longer work.
McKinsey Quarterly, 2005, Number 2
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Flashback 2006:
I Am The Media
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Media responded by fragmenting Media Responded by....fragmenting
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“The workers
should
appropriate
the means of
production”
And there are all these new tools of engagement
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84% of Germans under 30
would rather give up their car or
partner than live without internet
or mobile telephone. Source: Bitkom study via Onlinekosten.de – March 2, 2009
72% of British male gamers
would avoid having sex for a
chance to try their hands on a
brand new PS3-game. Source: PS3 Price Compare study, via Itproportal, March 3, 2009
And engagement goes deep ... very deep
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Facebook expects its largest user base to
come from India in the near future
Facebook's user count in India jumped 85% to
34 million as of June this year over the 18
million last year, as per Comscore.
The Economic times India
08/11/2011
Sure – but all of this is not relevant for India, right?
75%
44%*
3,4
86%
34%
1,8
98%
88%
3,9
96%
67%
1,5
97%
86%
3,1
95%
76%
2,1
Aware of at least one network 98%
Member of at least one network 73%
Average number of networks one is
member of 1,9
Awareness, penetration, average
number of networks
Emerging markets Brazil and
India show the highest
awareness and penetration of
social networks. * The 44% share of social networkers in China is low compared to other
countries. This might be due to the fact that some large Chinese networks
(eg RenRen) were not included in this survey.
63%
76%
60%
67%
82%
61%
58%
N Europe = 5613 / F = If member of social network(s)
Daily log on to social media
Europe has the lowest share
of brand fans, 51%. Compare
India: 70% follows a brand.
55%
19,6
57%
20,2
60%
9,3
62%
7,9
55%
8,3
70%
15,6
Brand followers 51%
Average no. of brands followed 12,2
N Europe = 5613 / F = If member of social network(s)
Following brands | Europe in perspective
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Great – so now start advertising to them, right?
Ah, well, if you must call it spam....
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76% of consumers don‟t believe that companies
tell the truth in advertisements Yankelowich,2006
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Advertising Myths
1. Frequency is mostly not
a driver for action
2. There is no golden rule
about OTS
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Advertising is a tax you
pay for unremarkable
thinking
Robert Stephens,
CEO, the Geek Squad
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The Core Issue
People who live near
train lines adjust to
the noise.
They do the same
with advertising.
Image:
(c)
Adam
bo
oth
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Talking about what YOU
want to say
Interrupting me
Treating me like any other
35-45 year old male
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BRANDS HAVE TO STOP BEING NOISE Communication-wise
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Digital as the ANSWER TO EVERYTHING?
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2011- onwards?
Can I be your friend?
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The new paradigm
Insert friend movie
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Many digital
marketing herd
activities just don‟t
cut it either ... FUTURELAB
The Sad Reality
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78% of consumers consider in-stream advertising as
“intrusive”. Half of viewers stop watching an online
video once they encounter an in-stream ad.
Source: Burstmedia, January 2008
29% of consumers leave a website that appears to be
cluttered with advertising.
Source: Burstmedia, December 2008
Only 13% of UK consumers pay attention
to ads on social networking sites.
Source: Ebay Advertising, March 2009
BANNER/AD BLINDNESS
NEW !!
TWITTER SPAM
Different Channel, Same Problem
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Reality Check
What does this
mean for the
business???
“If I tell my Facebook friends about your brand, it’s not
because I like your brand, but because I like my
friends.”
Mike Arauz
Different Channel, Same Problem
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Pick your disease
New technology, same old mistakes
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What do they want?
Facilitate their
actual needs
and desires
Provide value;
not noise
People dont want to “socialise” with a brand
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The Social Media Data Stacks
EaxctTarget reports that more than six in
10 (63%) Facebook users who “like” a
brand or product on Facebook expect
something in return. Results from “The
Meaning of Like” indicate that a leading
58% of Facebook likers expect both
access to exclusive content, events or
sales, and discounts or promotions
through Facebook. Only 37% do not
expect anything to happen.
58%
58%
47%
39%
38%
37%
37%
36%
28%
27%
24%
Expect access to exclusive content, events or sales
Expect discounts or promotions through Facebook
Expect to receive updates about the co. to the newsfeed
Expect the company to post updates, photos or videos to …
Expect to share with friends, family and/or coworkers
Expect the name of co. to show up on my profile
Do not expect anything to happen
Expect the co. to send more relevant …
Expect to interact with page owner (e.g., brand, person)
Expect the co. to access data in my public profile
Expect the co. to contact me through other channels
Consumers expect something for a “like”
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The Social Media Data Stacks
The ExactTarget survey found that the
highest percentage of respondents, a rather
low 15%, “always” expected a marketing
initiative after liking a company at its
Facebook page source, but that dropped to
10% for a click on a “Like” button elsewhere
on the web.
Only 9% always expect marketing after
logging a reaction to Facebook content.
What Constitutes Permission to Market on Facebook? % of respondents, July 2011 Source: ExactTarget
15%
9%
10%
46%
41%
42%
39%
50%
48%
You go to a company Facebook page and like
the company
You like a comment/photo/article posted by a company on
You click a Facebook Like button placed by the
company elsewhere on the web
Always Sometimes Never
But they don‟t expect to be spammed!
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So, here’s what NOT to try at home
Some worst practice examples old and new
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Soon after the release of the so-called
unbreakable new lock, someone
described on a bikeforum how he
managed to open it with an ordinary
ballpoint pen.
Though it waited for what some might
say was too long, the company decided
to recall all the new and unbreakable
locks and replace them .
We are accelerating the delivery of the
new disc cylinder locks and we will
communicate directly with our
distributors, dealers and consumers
within the coming days. The world just
got tougher and so did our locks. -
Kryptonite
The Pen Is Mightier Than the
Lock
Results:
Estimated cost for free products exchange: $ 10 million.
Image damage for trying to ignore – a multiple of that
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Listen!
Lesson Learned?
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“hell hath no fury like a mommyblogger
scorned”
Motrin experienced first hand the power
of social media when it released a TV
campaign that blamed carrying babies in
a pouch for backpains, as a strategy to
sell pain killers.
After a while, the entire campaign was
hijacked by social media active mothers
who found it offensive.
Motrin responded by taking down the ad,
without engaging in conversation which
only added to the buzz.
Communispace found that the more
emotional responses were about the
firestorm and how Johnson & Johnson
had responded, not about the actual ad.
Motrin
Results: Motrin pulled the ad, apologized. (perhaps prematurely,– consider the following numbers: Percent of internet users who visit twitter at the time = 0.1%
Days that the ad went widely ignored for = 45
Mommies' youtube videos exposure = less than a 30s cable ad
Peak number of tweets/hour = 300
Estimated % of negative tweets = 35%
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Gap Inc, puts forth a logo redesign,
but is met with severe backlash
from passionate fans, critics, and
media on social media channels.
There were thousands of
comments, logo redesign websites,
Twitter spoof accounts (over 4000
followers) and even Facebook
accounts setup to lead this branding
revolt and over 626 results in
Google News on “Gap Logo” from
mainstream press.
Gap logo redesign
Results: Gap reverted to the original logo
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But dont go crazy
Lesson Learned?
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After Bob Parsons (GoDaddy‟s
CEO) posted a video of himself
shooting an elephant in Zimbabwe
and then tweeted to brag about it,
GoDaddy competitor Namecheap
offered to donate $1 for every
customer who transferred their
accounts over, raising over $20.000.
for Save the Elephants, a
conservation group.
PETA and other organizations also
denounced the move and
encouraged customers to stop
doing business with GoDaddy
GoDaddy CEO kills Elephant,
loses customers
Results: Besides the media backlash, GoDaddy found themselves bleeding customers as
competitors jumped at the opportunity, offering discounted transfer fees and also vouching to donate
money to animal welfare organization for every new account.
FUTURELAB
The Milk Board and their agency, San
Francisco-based Goodby, Silverstein &
Partners, launched a new social media
campaign, a tongue-in-cheek look at how
drinking “milk can help reduce the
symptoms” of premenstrual syndrome.
The campaign, however was targeted at
men, and a micro-site, with the URL
“everythingidoiswrong.org,” was set up
and labeled for men as “your home for
PMS management.” The site was
launched around two weeks ago and
originally scheduled to be live through the
end of August. The site‟s content
included lists of “apologies” that men
could use with women with PMS
symptoms.
Milk Fail
Results: After just a few days, the Milk Board found themselves in the middle of a firestorm of criticism on Twitter,
Facebook, and the blogosphere as women rose up . Even FunnyorDie came up with a vicious parody ripping the
campaign. In the end Goodby and the Milk Board took the site down after 12 days and redirected the original URL to
a site titled “Got Discussion” where they tried to undo the damage done.
FUTURELAB
In a self-promotional tweet that
hijacked the world sensitive #cairo
tag during the revolution, Kenneth
Cole promotes their own spring
lineup.
Immediately, someone setup a fake
KC account (@KennethColePR),
which posted ironic tweets such as
“People from New Orleans are
flooding into Kenneth Cole stores”
As a sidenote, the tweet in question
was signed –KC, meaning it was
sent off by the designer himself.
Kenneth Cole #cairo hijack
Results: KC later apologized via Twitter and Facebook but not before severe SM Backlash
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Understand the
sensitivities of your
audience
Lesson Learned?
FUTURELAB
A cause marketing style campaign
was launched in the Philippines,
asking women to get join a
Facebook page called “I Commit to
Change“. Once the members joined
the independent ‟cause‟ Pantene
unleashed its branding campaign,
promoting their latest products as
the agent of change. Feeling duped,
the women responded via social
media, posting blogs in which they
expressed their discontent at the
ruse.
Pantene‟s Cause Marketing
backfires
In all of their actions in the Facebook page including the notes
they said that it was a movement committing for change.
There was not a single mention that it is connected to any
commercial product or brand.
– Blogger on the ICTC campaign
Results: thousands of angry key influencers in the core audience
FUTURELAB
The stylish furniture maker Habitat
jumped on the Twitter bandwagon in
a big way but was exposed for
spamming. Its self-promoting tweets
that included popular trending topics
to attract attention.
And if including a hashtag# for a
popular HBO drama like "True
Blood" wasn't enough, the company
actually took advantage of the
misfortunes of others by including
"Mousavi" and the "Iran Election" on
tweet updates as well.
Habitat
Results: Retaliating against this form of 'parasite marketing,' the Twitterverse struck back by
exposing the practice to Twitter's SPAM department.
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Dont lie and cheat
Lesson Learned?
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So, is it all over now? Are we dancing on the deck?
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It‟s only just begun! On the contrary
• You can be the answer, not the problem
• Re-intermediation
• Curation
• Audience Involvement
• Audience Management
FUTURELAB
Customer Advocacy : Your compass to action
About relevance, engagement and reputation
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Relationship
Reinforcement
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Relevance
Engagement Reputation
Reputation x Relevance x Engagement = $$$
OUR VISION
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Relevance
Engagement
Reputation
Relevance
Engagement Reputation
€
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Make the customer‟s voice more interesting Real life case
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19% of our detractors have
an issue with misaligned
touchpoints when it comes to
complaint resolution.
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YOU SUCK ! Real life case
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The best way to listen to customers
Meet them for real conversations
How often do you and your leaders actually meet with
real customers for real conversations?
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Relevance in action
And give it away (but dont ask for a number)!
• + 10,000 articles
• 75-100k regular readers
+ 10,000 followers
+ 3.15.000 views
Recognition Thought leadership
FUTURELAB
Innovative Thunder, a NY based
creative team, started the pay with a
tweet project which they describe as
such:
“In today's world the value of people
talking about your product is sometimes
higher than the money you would get for
it. „Pay with a Tweet‟ is the first social
payment system, where people pay with
the value of their social network.
It‟s simple, every time somebody pays
with a tweet, he or she tells all their
friends about the product. Boom.”
Pay with a tweet
Results: the system was launched along with their book, “Oh My God What Happened And What
Should I Do?”. The book got 13.000 downloads in the first 72 hours and 170.000 downloads and
tweets in just 6 months. In six months, 400.000+ people paid for something with a tweet or FB post.
FUTURELAB
Harley Davidson (HD Talking)
Harley owners created website and social community totally funded by users and user-generated content. Here, Harley owners trades photos, jokes, where to find hard to find parts, advice on Harley models and ownership plus there are at least 7 mechanics on-call at all times. HDtalking.com now has 40,000+ members and cost to Harley is negligible.
FUTURELAB
The popular brand joined Twitter in
October 2007. However, they had no
clear direction until 2008. In 2008, The
North Face went to create a free digital
tool that would enhance the user‟s
outdoor experience. By December of
2008, they launched a free iPhone
application. In 2009, they relaunched the
app with the consumers feedback in
mind. The new and improved application
included Twitter. They soon realized that
the best way to leverage Twitter and build
a communal following was to promote
The North Face branded content..
Serving up industry information to their
Twitter community, they quickly increased
the following, and saw a steady flow of
re-tweets, which spurred community
interaction.
The North Face
Results: several related apps for download now; combined downloads of several million apps
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Relevance
Engagement
Reputation
Relevance
Engagement Reputation
€
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Trust us - Engage with us - Become an Advocate - “Love Us”
Brands seek loyalty for life
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One Night Brand But in Reality they behave like a
• Seduce & Forget Campaigns
• Loyalty Scams
• The New Customer is Prettier
• Join This Week‟s Community
• You are just a segment
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Would you still “engage”? After the lies, the forgetting, the disregard, the customer promiscuity
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To build buzz for next year's ad
campaign, The Australian Financial
Review recently used a competition
to crowdsource ad copy from
readers. Dubbed Write Our Next Ad,
the brief was for a short, sharp,
clever ad that would resonate with
the audience and promote the
benefits of regular readership, while
reflecting the brand's focus on
leadership, strength and inspiration.
Over 13.000 entries were
submitted.
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Write our next ad…campaign...businessplan for us.
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WiserPregnancy aims to help users
make informed decisions by
showing them what others have
done in their own situation,
including the choices they made,
their rationale, the outcome of those
choices, and how they felt about it
afterward. The searchable includes
data from thousands of women
about more than 600 choices that
can be faced while pregnant.
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Wiser Pregnancy: jointly develop the content
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A community website where people
afflicted with certain illnesses can
read all about the experiences of
other people as well as share their
own experiences. The purpose,
then, is to allow users to interact
with one another, track how
treatments are working for other
members, and explore the side
effects patients are seeing with
certain treatments.
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Patients Like Me: joint development
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The South Korean cosmetics firm
Missha started as an online retailer
before opening storefronts, and
from the beginning it invited its
customers to provide substantive
feedback – about products,
packaging, pricing, image – in short,
everything.
What Missha found should not have
been a surprise, but it was new to
many: its customers had a lot to say
and they liked being asked.
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Missha‟s Story
Results: During a period of five years, Missha has built a customer base of more than 1.8
million customers who are actively engaged with determining the company’s future.
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In Brazil, Kaiser Beer embarked on
a CUSTOMER-MADE adventure
last year by asking their customers
to co-create its Kaiser Novo Sabor:
a new premium beer reflecting the
opinions and personal taste
preferences of more than 11,000
contributors in 130 cities across
Brazil.
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Amateur Outsiders
Results: The beer was an instant hit, with the initial 11,000 contributors eager to play
the role of brand ambassador. (Source: Springspotter Network, Paula Rizzo)
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300 year old Finnish company that makes fine cutting tool created online social community of crafting enthusiasts called “Fiskateers” to build relationships with the underutilized channel of small retailers for a 3X increase in company sales.
Fiskars – use your fans
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Social gaming
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You think “people like us” or “our women” don‟t play?
http://mashable.com/2010/02/17/social-gaming-survey/
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It is not only fat sociopathic 16-year-olds with acne
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Relevance
Engagement
Reputation
Relevance
Engagement Reputation
€
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Who do you trust?
Survey Methods
Results are based on a Gallup Panel study consisting of web surveys completed by 17,254
national adults, aged 18 and older. Respondents were deemed proficient internet users based
on their ability to complete the survey via the web. The study was conducted in September and
October 2010. Gallup Panel members are recruited through random selection methods. The
panel is weighted so that it is demographically representative of the U.S. adult population. For
results based on this sample, one can say with 95% confidence that the maximum margin of
sampling error is ±1.43 percentage points. Margins of sampling errors vary for individual
subsamples. In addition to sampling error, question wording and practical difficulties in
conducting surveys can introduce error or bias into the findings of public opinion polls.
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Know who the influencers are for your customers!
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The Power of Recommendation
Word-of-mouth is 7x more effective than newspaper advertising,
5x stronger than a personal sales pitch and 2x as effective as
radio advertising
Marketing Science Institute, 2006
1967 1983 2001 2007 1955
This is not exactly news....
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0 1 2 3 4 5 6 7 8 9 10
Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & Company
How likely are you to recommend ?
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Different economic behaviour + the value of word-of-mouth = substantial profit impact
Which provides for a simple, yet effective approach to customer
segmentation
Detractors (hate you) Promoters (ambassadors) Passives (don’t care)
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Happy customers = more profit
-They spend more
-They negotiate less
-They stay longer
-They are easier to service
-They upgrade quicker
-...
0 1 2 3 4 5 6 7 8 9 10
Those who speak well about you are more profitable
Average
customer
Lifetime customer value
Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & Company
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spend more
negotiate less
stay longer as customers
are more open to upselling
are easier to service
upgrade quicker
are ready to refer to others
etc.
Over the lifetime of a customer a 5% improvement in customer retention can cause
an increase in profitability between 25% and 85% (F.Reichheld)
Customers that are so happy that they‟d recommend your
business to a friend, colleage or family member …
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Go forth and discover
this wonderful brand!
Once the basics are sorted
You can start activating promoters
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Are you likely to
recommend?
YES !!
Do you actually
recommend?
NO
THE ACTIVATION CHALLENGE
What goes wrong ?
That‟s not the whole story
You can start activating promoters
FUTURELAB
Let‟s stay “in theme” with a case study
Say I seek promoters for my skills as a lover.
I just have to tell
you about Stefan…
Mmmhhh … I‟d like
some of that …
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2-for-1 Promo
Bring a friend & collect
double loyalty points to
get those wine glasses!
Recommend a friend & get
60 Minutes Extra
e-c
oupon
This voucher cannot be combined
with other promotions.
Sales Promotion?
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Which would be the most effective method
To turn you into a promoter for my skills as lover.
Tell them he‟s a
great lover!!
Advertising?
www.
greatlover .com
Direct Sales?
Hi, I‟m a great lover.
Would you mind
telling your friends?
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If it doesn’t spread … it’s dead.
Customer delight stories need to memorable, but also worth mentioning
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Tell me a story
that makes my conversations
(and me) more interesting.
If you want me to talk about you
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Tell your story so it can be told
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For example
Random Acts of Kindness
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Random acts of kindness
In September 2010, Interflora (www.interflora.co.uk) launched a social media campaign in the UK designed to
brighten up the lives of Twitter users by sending them flowers. As part of the campaign, Interflora monitored Twitter
looking for users that it believed might need cheering up. Once found, the users were contacted directly and sent a
bouquet of flowers as a surprise.
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Give me tools that demonstrate my value to my
friends, colleagues and family
If you want me to introduce you to my friends
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We have a
superpromoter
who already sold 7
shavers because
he wants to offer
his friends the joy
of a Philips shaver.
Our job is to help
him help his
friends.
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Mechanisms to spread the word
Case: Philips consumer products
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Just ask me You’d be surprised how easy it is
to get me to talk
If you want me to introduce you to my friends
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• After customers pay, have waiters ask if they
would recommend. If they say yes, give them
a voucher for the person they want to
recommend to – and make it shareable
online
• Let them invite their friends to a testdrive;
give away a testerpack of beers; give a gift
subscription – but just ask them who it should
be given to:
Just ask....
Both in social media and real life – ask them!
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The idea behind the project was to
give Vaseline Clinical Therapy lotion
to one Alaskan woman and to ask
her to lather it on everyone she
loved.
The people she gave the product to
loved it, and then they gave the
product to people they loved, who
gave it to people they loved, and so
on.
This is the essence of word of
mouth. Now, to make this Alaskan
network go even further, Vaseline
has created a website to show us
whose hands our main character,
Petal Ruch, was able to soften.
Prescribe the Nation
Results: 1,000 of her community‟s 6,000 residents switched to Vaseline Clinical Therapy
lotion. In 30 weeks of campaign, 3,000,000 people around the world have been
“prescribed” Vaseline Clinical Therapy
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But how will I control all this?
This freedom will lead to thousands of inaccurate and divergent conversations.
12/11/2011 94
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You don‟t
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The Answer
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Sources:
http://blogs.forbes.com/markpasetsky/2011/02/03/news_kenneth_cole_egypt_tweet_19871/
http://jalopnik.com/#!5780113/chrysler-loses-control-of-twitter-account-drops-f bomb
http://www.autoblog.com/2009/09/03/honda-purges-some-comments-from-crosstour-facebook-page/
So dont even try...
You cannot “control” every message
Their intentions may be pure
They may just be having a bad day
They may not see the (potential) harm in what they‟re doing
BUT EVERYTHING THEY SAY SHAPES YOUR BRAND
So be tolerant – and be ready...
Timecheck hidden slides
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Conclusions – in random order
Yes we can
Make sure you get the basics right
Integrate throughout the company
Give your people space and pride
Give room to the voice of the customer – by listening but also taking it into the boardroom and the rest of the company
Dont do „campaigns‟ – this is about behaviour and quality
Start with an insight, not an idea
Provide value, not noise
Build relationships
Happy customers bring more money and more customers
Go for the influencers – and turn them into promoters
Through Relevance; Engagement, reputation
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Or in a nutshell
What does this do for the customer? How will it delight him? How will it encourage him to advocate us?
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KLM wanted to reach out to KLM
passengers in the real world to
reward them for flying with KLM.
They monitored check-ins on
Foursquare at KLM locations and
did some social media monitoring to
find the people that mentioned KLM
in their check-in. When they had a
picture of who the person was, their
activities, interests and
personalities, they hunted them
down, bought them a small gift, and
gave it to them as they waited for
their flight.
KLM Surprise
But people still hate the company!
FUTURELAB
Right at every conceivable level – best practice overall!
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Pay enough – and change your password!
A final word of caution
FUTURELAB
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