social media and multi channel retail

Social Media and Multi Channel Retail

Rick Mans - Social Media Evangelist

It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to

change.

2009 Rick Mans Capgemini

Cases

Dell said Thursday night (June 12 2008) that the company had earned $3 million in revenue directly through Twitter since 2007, when it started posting coupons and word of new products on the microblogging site. In the last six months, Dell Outlet earned $1 million in sales from customers who came to the site from Twitter, after taking 18 months to earn its first $1 million. Dell has also earned another $1 million from people who click from Twitter to Dell Outlet to Dell.com and make a purchase there.

Dell

Procter & Gamble's Being Girl community is an online community targeted at young girls. P&G was able to use this community to market feminine hygiene products in a subtle way to an audience that doesn't want to talk about them. What's very interesting to note is that P&G found community building to be four times more effective than traditional advertising.

Procter and Gamble

http://bits.blogs.nytimes.com/2009/06/12/dell-has-earned-3-million-from-twitter/http://www.themoderatorcommunity.com/blog/case-study-community-building-4-times-more-effective-advertising-finds-procter-gamble

You can earn money online

http://bits.blogs.nytimes.com/2009/06/12/dell-has-earned-3-million-from-twitter/

http://www.themoderatorcommunity.com/blog/case-study-community-building-4-times-more-effective-advertising-finds-procter-gamble

http://www.themoderatorcommunity.com/blog/case-study-community-building-4-times-more-effective-advertising-finds-procter-gamble


Ecosystem

Twitter, a micro-communication service that gives users an opportunity to express their thoughts in 140-character "tweets," is a hit in the social media world. Companies are also benefiting from Twitter, where 20 percent of the tweets contain requests for product information or responses to the requests, according to Jim Jansen, associate professor of information science and technology in the College of Information Sciences and Technology (IST) at Penn State.

Twitter

Spending on internet advertising topped £1.75 billion in the first half of 2009, a rise of just 4.6 per cent compared to the same period last year. But the increase was enough for online advertising to pass declining TV spend, which sits at £1.64bn, for the first time in a major market.The figures from PricewaterhouseCoopers and the IAB tell a success story for the online industry, which has toppled TV's 50 year reign as the UK's leading medium. Online advertising now accounts for 23.5 per cent of all ad spend compare to TV's 21.9 per cent.

Advertising

Teens don't hate advertising, but they rely more on friends. More than twice as many teens as adults — 38% versus 17% — say advertising helps them decide what to buy. That may sound encouraging, but marketers must also take into account that, at the same time, nearly twice as many teens as adults (47% versus 25%) rely on recommendations from friends and family. They are also far more likely to spread the word about products they like (67% versus 39) Blending advertising with social marketing is absolutely critical for marketers targeting this segment.

Teens rely more on friends

http://live.psu.edu/story/41446 http://www.revolutionmagazine.com/news/rss/942047/Its-official-online-bigger-TV-ad-spend-figures-show/ http://www.forrester.com/Research/Document/0,7211,54086,00.html?src=Alert

http://live.psu.edu/story/41446

http://www.revolutionmagazine.com/news/rss/942047/Its-official-online-bigger-TV-ad-spend-figures-show/

http://www.revolutionmagazine.com/news/rss/942047/Its-official-online-bigger-TV-ad-spend-figures-show/

http://www.forrester.com/Research/Document/0,7211,54086,00.html?src=Alert


Social media as killer feature for Motrin

It all began with an online ad posted Saturday (15 november 2008) on the company’s website. It was about “baby wearing” — i.e. carrying a child in a sling or a wrap, rather than pushing them in a stroller or carrying them in your arms. For some parents it is something they do simply because it works. For others it goes far deeper than that — part of a philosophy of being close to the baby whenever possible.

What happened

Wearing your baby seems to be in fashion. I mean, in theory it’s a great idea. There’s the front baby carrier, sling, schwing, wrap, pouch. And who knows what else they’ve come up with. Wear your baby on your side, your front, go hands free. Supposedly, it’s a real bonding experience. They say that babies carried close to the body tend to cry less than others. But what about me? Do moms that wear their babies cry more than those who don’t. I sure do! These things put a ton of strain on your back, your neck, your shoulders. Did I mention your back? I mean, I’ll put up with the pain because it’s a good kind of pain; it’s for my kid. Plus, it totally makes me look like an official mom. And so if I look tired and crazy, people will understand why.

The ad

By Saturday evening they were the most tweeted subject on Twitter. By Sunday there was a nine minute video on YouTube, to the tune of Danny Boy, showing screen shots of the outraged twitter posts interspersed with photos of Moms carrying babies in slings. Bloggers began calling for boycotts. Bloggers asked their readers to alert the mainstream press. By Sunday afternoon a few bloggers and tweeters had gotten the ad agency that created the ad on the phone, to find they didn’t know a lot about Twitter and didn’t seem to have a clue that there was so much anger piling up online

Developments

http://parenting.blogs.nytimes.com/2008/11/17/moms-and-motrin/



How did Motrin respond

By Sunday evening the ad was taken offline by McNeil Consumer Healthcare, the maker of Motrin.

Developments

I am the Vice President of Marketing for McNeil Consumer Healthcare. I have responsibility for the Motrin Brand, and am responding to concerns about recent advertising on our website. I am, myself, a mom of 3 daughters.We certainly did not mean to offend moms through our advertising. Instead, we had intended to demonstrate genuine sympathy and appreciation for all that parents do for their babies. We believe deeply that moms know best and we sincerely apologize for disappointing you. Please know that we take your feedback seriously and will take swift action with regard to this ad. We are in process of removing it from our website. It will take longer, unfortunately, for it to be removed from magazine print as it is currently on newstands and in distribution. -KathyKathy WidmerVP of Marketing - Pain, Pediatrics, GI, SpecialtyMcNeil Consumer Healthcare

The response


# times Motrin was mentioned

Motrin peaked on Twitter



What are the trends?

CustomersSuppliers

Employees

External

Internal

Operations & Systems

Responses: Social CRM

Potential fo

r conce

pts lik

e Socia

l

SRM, Agile

PLM

Response: Enterprise 2.0

Response: Cloud computing

SOA & Cloud Computing

e-Business

TrendsWeb 2.0Social media &Social networking

Partners

TrendsEmbedding services into other brands and products

Responses: Standards

like OpenSocial

TrendsAgile ways of working including prototyping

TrendsMulti-channel Retail,IndustrialisationFlexibility/agility

TrendsWeb-oriented personnelKnowledge sharing & collaboration

Business Network Transformation


The previous slide is incorrect

Slides and images are static, customers, partners, suppliers and employees are changing roles continuously.

Why

Customers are suppliers and partners (Potential) Customers do employee work


The world is flat (especially from 2005 onwards)

Publishing is complex and limited to few traditional media and online

merchants

Value is created by aggregating content

(portals)Easy and free publication for all

Value is generated by tools allowing to publish easily

Mai

nly

narr

ow b

and

Mai

nly

Broa

dban

d

2004 2005

Traditional media

Alternative media

Google search

Flickr

Wikipedia

netvibes

Web 1.0 Web 2.0

Generation Virtual is used to describe a growing online culture in which people participate, often anonymously, through personas in a flat, virtual environment. Generation Virtual is not defined by age, gender, social demographics or geographic location. It is based on demonstratedaccomplishments (merit) and an increasing preference for the use of digital media channels to discover information, build knowledge and share insights

Generation V

The Business Impact of Social Computing on Marketing and 'Generation Virtual‘ – Gartner ID Number: G00158087

Generation V is here


Members of generation V are not all the same

Marketers must plan for varying levels of engagement to accommodate them, as well as harness their influence for marketing purposes and, ultimately, for transactions

Differentiate

6 segments of online users

MORE ABOUT SOCIAL MEDIA


It is mentioned in our Technovision

Real-time Integrated Business Intelligence

Mastered Data Management

Google-fication

Mash-up Applications

iPodification

Role Based User Portals

Rich Internet Applications

Software as a Service

Packaged Sector /Segment Solutions

Real-TimeBusinessProcessControl

Composite Applications

Jericho Style Security

Sensing Networks

Utility Business Infra-structure

Smart Business Networks Social

Collaboration Tools /Wikinomics

Free Agents Nation

Mashup applications

iPodification

Role-based user portals

Rich Internet applications

Smart business networks Social

collaboration tools /Wikinomics

Free agents nation

Real-timebusinessprocesscontrol

Composite applications

Real-time integrated business intelligence

Mastered data management

Google-fication

Packaged sector /segment solutions

Software-as-a-service

Sensing networks

Jericho style security

Utility business infra-structure

Key technology building blocks


From transaction to interaction

• Organizations and individuals in a continuous cycle of learning, creating and collaborating

• Creating additional value through business innovation with markets, players and consumers constantly shifting position

• Global ‘open’ markets where information on available products and vendors vastly increases the competition compared to the levels of existing localized ‘closed’ markets

From Transaction to Interaction

Social collaboration tools / Wiki-nomics

Free agents nation

Smart business networks


Social Media GoalsSMILE Activities

Supporting

Meshing

Interacting

Listening

• Help customers and let customers help themselves and others• Ensure there is a platform for them where they can find you, the brand,

and other customers

• Integrate customer feedback and input in your product cycles• Create a place where customers can provide input on your product and

where they can see the result.

• Start solving real world problems• Create an environment that promotes and enables co creation• Use a platform in which you can interact with your customers

• Doing web care is a good way to get to know what is said about your products

• Give customers a platform on which they can share their thoughts.

Evangelizing• Provide customers a home base with tools so they can promote you / your

products• Create easy promotion kits that can be reused over and over again.


Who decides about social media use and what is the basis of the decision?


Match your goals with those of your (potential) customers

Enagement / Brand building

Information search

Need / Want Recognition

Evaluation

Purchase

Postpurchase

Provide context

Promote products

Trust / transactions

Satisfaction / loyalty

Use

the

goa

ls in

the

SMIL

E-m

odel

to tr

ansl

ate

your

goa

ls

Model inspired on: The Business Impact of Social Computing on Marketing and 'Generation Virtual‘ – Gartner ID Number: G00158087


The online channel develops fast and what yesterday was a “Differentiator” may today be a “Must have”

Joined up customer service, products and range

Returns in any channel

Instant online availability

Single view of customer throughout the sales journey

Consumer Reviews

Click and Collect

Personalised offers

Online Communities

Online apps/hosted services

RSS

Personalised landing page

Personalised products/ranges

Viral Marketing

Use of social networking sites

Customer product/range design

Virtual Worlds

Must have

Becoming the norm

Differentiators

WEB CAREOne of the things you can do with social media


Webcare

Image from servicecloud presentation from Salesforce.com


Webcare has different stages

Pro active

Reactive

Passive

Interactive

Don’t wait till the customers come to you

Webcare

Wait till the customer comes to you

Classic


Your organisation should change as well

Customer Care

Marketing

Public Relations

Problem solving

Customer experience

Discover and prevent issues

Share successes

Get feedback for product development

Educate customers

Web care

The webcare team should have direct links with:

• Customer Care for solving problems• Marketing to share customer feedback• Public relations to consult what can

and can’t be communicated

Linked


Think on how you could response

http://xkcd.com/386/ http://www.web-strategist.com/blog/2008/12/31/diagram-how-the-air-force-response-to-blogs/

Do you have plan… .. or are you completely clueless

http://xkcd.com/386/

http://www.web-strategist.com/blog/2008/12/31/diagram-how-the-air-force-response-to-blogs/

HOW CAN CAPGEMINI HELP


How Capgemini can help

• Social media (Web 2.0 – the social web)• E-commerce• “do more with less” (out-of-the-box solutions that cost less or will reduce costs)• Emerging technologies like Cloud Computing• Social media roadmap• IT landscape roadmap• Social CRM• Business Network transformation

Strategic advise on

• Social Networking and collaboration solutions• E-commerce (e.g. Microsoft Commerce Server with SAP integration, ATG)• Integration with existing social networks• Integration with existing enterprise software• Social CRM

Technological advise on

• Development• Project management• Business Analysis• Architecture• Community management• Benchmarking• Process (re) design

Implementation

Market / sector expertise: Retail sector (Capgemini Retail Solutions, former Maxeda IT)

Generic cases


Lego factory

• Lego had traditionally been surrounded by a highly active constellation of Lego User Groups - fan communities comprising of both adult and young members

• These groups maintained large online presence; operated independently of the company; exchanged and showed creative toy designs and models amongst themselves

• Lego needed to move out of closed proprietary mode and adapt a participative strategy for customer interaction, which would utilize existing user creativity in product design

BACKGROUND

• Lego launched the Lego Factory (http://factory.lego.com) – an online model of engagement for potential and existing Lego users, which allows users to design, share and buy their own customized LEGO models

SOLUTION

• Through the Lego Factory, the company has taken a step further in the evolution of user involvement, building strong brand relationship

• The initiative has created high levels of awareness and interest with the consumers

• The initiative has put Lego a step ahead of competition by moving out of closed proprietary content mode and involving fresh ideas from consumers and community for New Product Development

BENEFITS

THE LEGO FACTORY WEBSITE

- Users interested in custom-designing their own Lego models have to download and install the ‘Lego Digital Designer’ –

- In the designer, the user can drag and drop to create a virtual toy design

- Once the user has created a design, he can upload the same to the online gallery

- Lego approves all designs before they are added to the online gallery, to filter out models for appropriateness for all age groups

- Designer users can then order the bricks needed to make their model, and also customize their own box for the model

- Other users on the site can buy uploaded designs in the gallery, and will receive both the bricks for the model as well as the building instructions

Source: MRD Lab Analysis. Capgemini, “ECR Europe Conference: Future Consumer Presentation”, May 2008. coBrandit.com, “Lego Co-creation Presentation by Mark Hansen: Video”, September 2006. Crowdsourcingdirectory.com, “Co-Creation in Lego Factory”, September 2007. European Centre for the Experience Economy, “Lego’s participative army marches on”, April 2008.

http://factory.lego.com/


P&G connect + Develop

• As P&G grew to a $70 billion enterprise, the global innovation model it devised in the 1980s was yielding shrinking success rates

• Their R&D productivity had leveled off, and innovation success rate had stagnated at about 35%, whereas innovation costs were climbing faster than top-line

• While P&G owned a 7500+ strong R&D team, it realized that viable product innovation was increasingly being done externally at small and midsize entrepreneurial companies

BACKGROUND

• More than 35% of P&G’s new products have elements that originated from outside P&G, up from about 15% in 2000

• R&D productivity increased by nearly 60%• R&D investment as a percentage of sales is down from 4.8%

in 2000 to 3.4% in 2006• P&G’s average two-month cycle of generating physical

prototypes and testing them with consumers has reduced to around 24 to 48 hours

BENEFITS

• P&G launched the ‘Connect + Develop’ initiative, tapping into a global innovation network comprising of a host of sources, right from independent innovators to virtual innovator networks such as InnoCentive

• Having a clear sense of consumers' needs, the company identifies promising ideas throughout this network and applies its own R&D, manufacturing, marketing, and purchasing capabilities to them to enhance the rate of innovation

SOLUTION

P&G’s Global Innovation Network

P&G CONNECT + DEVELOP

P&G identifies top 10 customer needs

P&G converts them into ‘science problems and sends into the

network

P&G’s 7500+ R&D team work on solutions suggested and with

internal communities

INNOVATIONS In Areas Of Packaging, Design, Marketing Models, Research Methods, Engineering, Technology, Etc

Source: MRD Lab Analysis. Harvard Business School, Working Knowledge, “P&G's New Innovation Model”. Leveraging Ideas for Organizational innovation Blog, Dr. Kevin Desouza, “ Connect & Develop Innovations the P&G Way”. P&G, “P&G Connect & Develop – Brochure”.


Nike+, in collaboration with Apple

Nike wanted to create an immediately resonant experience for a broad target market, from marathoners to fitness joggers

Nike+ was born as a multi-channel, multi-sensory marriage of Nike and Apple technologies

Nike+ provides a robust platform of virtual racing, progress tracking, motivational goals and stories, global community comparison tools

BACKGROUND

SOLUTION

1

2

3

HEAR YOU RUN…

SEE YOU RUN…

CONNECT AND CHALLENGE

Sensor in the shoe helps the runner hear through the iPod, the details about pace, time, distance and calories burned

On docking and synchronizing the iPod, Nike+ software loads the workout statistics to their website where the user will be able to track his/her workout progress

Run data can be used to track progress, set goals, motivate runners. win rewards and challenge pals or all Nike+ users

Widgets for setting challenges, goals…

Blog facility for Nike+ users

Link to purchase Nike+ kit and other Nike gear

CUSTOMER CENTRICITY THROUGH BETTER INTERACTION USING WEB 2.0

Nike+ is a unique way to engage with and promote higher levels of brand identity amongst Nike users

Delivers increased value to Nike users through a unique way of collaborating

Engages current and prospective Nike users with uninterrupted and targeted advertising

20% reduction in ad budgets as Nike is moving towards developing its own media network through such technological endeavors

Total Sales worth $59 million and 1.8 million users August 2008; 800,000 people globally

simultaneously run a 10km race in 26 cities Share of the Sports Shoe market: 2006 – 48% 2008

– 61% (12 month average)

BENEFITS

I

I

II

II

IIIIII

Nike.com

III

Source: MRD Lab Analysis. Nike+ website. ‘Nike does business 3.0’ Phill Butler, 2007.

Contact details

Rick [email protected]://twitter.com/rickmanshttp://www.linkedin.com/in/rickmans

mailto:[email protected]



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http://twitter.com/rickmans

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