Engaging the customer

12.6.2012 Dr. Ute Hillmer

New Marketing Understand, Embraceand Engage withYour Customer

Dr. Ute Hillmer, Better Reality MarketingReutlingen, 12.6.2012

Content of the SM Marketing Lecture1. Why engaging with the customer?2. The Social Media Marketing Basics3. Content Marketing for B2B4. The SM Toolbox

Corporate WebsiteCorporate BlogSocial NetworksContent Sharing Platforms

5. Cases6. Social Media Marketing in Practice

Crowd SourcingOnline ShopsMicrobloggingSocial CRM

Engaging with the Customer

“Do I have to do this?”

Why is Marketing Changing?

Do I have to be in the Web 2.0, in Social Media as a Company?

Do I really have to be there as a B2B Company?

Why is Marketing Changing?Because buyer behaviour is changing significantly!

How did you buy yesterday?How do you buy today?How will you buy tomorrow?

The Power of Recommendations:„I‘ll Have What She is Having“

Change Engines on the Meta LevelTechnological Development • Digitalization• Network technologies• Converging media • Storage technologies

Social DevelopmentThe mature human – the mature customer • Selfconfidence• Participation • Self-determination• Individualisation

• Visualisation tech.• Social Media• Digital distribution• Intellig. automation• …

Changing Kommunication from

Sender

Receiver

Changing Kommunication to

Sender

Receiver

From Product- to CustomerfocusProduct

Promotion

Customer Needs

Customer Cost

Convenience / Access

CommunicationMcCarthy: Basic Marketing: A managerial approach, 1960Schullz, Stanley I. Tannenbaum, Robert F. Lauterborn, Integrated Marketing Communications, 1993

Social Media –“Do I really have to be there as a Company? “

Warum sind Sie in Sozialen Netzen(Europea Data)

...to get to know things about (new) products / brands ...to come in contact with brands / companies

...to stimulate my career

...to find other users of a certain brand / product ...to find promotions of a certain brand / product

...to become a famous person

...to become an opinion leader Source: Social Media Around the World 2011, InSites Consulting

It‘s not only the web 2.0 generation that isonline

Customers + Web 2.0 Technologies

Social Media: Does it Pay Off? 1

http://w

ww.experian.com/sim

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They talk about you!

• They do it with or without you … you should steer the direction best you can!

• Dell Hell was a showcase starting point in 2005

Dell Hell

Dell Hell 2

“Obviously a lot of people are in the blogosphere talking about their issues with Dell products, why aren’t we doing anything about it?” Michael Dell, 2006

2006:“Obviously a lot of people are in the blogosphere talking about their issues with Dell products, why aren’t we doing anything about it?”

Michael Dell, 2006

2011: Dell named “most social brand of 100 top brands”

Targeted Customer Dialog

Social Media –“Do I really have to be there as a B2B Company? “

19.12.2011Dr. Ute Hillmer, Better Reality Marketing

Social Media

Not just for nurds

How Social Media matters to B2B

• Chief stakeholders may not be using social media.– but their lieutenants will

• Social media is impacting how B2B decisions are being made.– Background research– Expertise– Search results impact

Social Media and the Buying ProcessPost-salesuser-exp. reportssupport+helpcomplainslearningupgrading

Saleslooking for the best deal

Pre-saleslooking for information

Social Media and the buying process

Customer Centric Business Model

Marketing

Customer

Product/Service

19.12.2011Dr. Ute Hillmer, Better Reality MarketingT. Hannagan, Management: Concepts & Practices, 2005.

1950‘er 1960‘er 1970‘er 1980‘er 1990‘er 2000‘er Zeit

Distributions‐orientierung

Verbraucher‐orientierung

Handels‐orientierung

Wettbewerbs‐orientierung

Umwelt‐orientierung

Netzwerk‐orientierung

Anspruchs‐spektrum des Marketings

Unter‐nehmung

Ver‐braucher

Handel

Wett‐bewerber

Umwelt

Netzwerke

Development Steps in Marketing(Meffert, 2008 S. 8)

Inhaltlicher Fokusdes Marketings

Traditionelle Übertragungsmedien Universalmedium

Form der Kommunikation

Medium

Produktions‐unternehmen

Distribution: Konvergente Datennetze

Konsum: konvergente Konsumgüter

Traditionelle Trägermedien

Text/ Bild Ton AV

Film/Buch Presse Audio Video

Verlag Verlag Verlag Verlag

Ton AV Sprache Daten Multi‐

Hörfunk Fern‐sehen

Telefon ‐dienste

Daten ‐dienste

Online ‐dienste

Sender Sender Dienst ‐leister

Dienst ‐leister

Text/Bild/Ton/ Sprache/AV/ Daten/Multimedia

Universalmedium

Universalmedium‐unternehmen

Radio, TV, Pay‐per‐channel/view, Video‐on‐demand, Audio‐/Video‐Streaming, Internetdienst, Teleshopping,E‐Mail

Breitbandkabel Internet Satellit Telefonnetz Mobilfunk

Terrestrische Sender

Fernsehgerät PC Handy Print

Konvergenz des Mediensystems (Gläser 2010, S. 274)

„Push“ Communication

Agency Media Fulfillment

Marketer Customer / Prospect

Unique Products / Offers

Messages and Incentives

D. Schultz et al., Building Customer-Brand Relationships , 2009, p. 5

„Pull“ Communication

Employees/Recommenders/Distributers/Influencers

Marketer Customer/ Prospect

Agency Media Fulfillment

Unique Products / Offers

Messages and Incentives

Competitors

D. Schultz et al., Building Customer-Brand Relationships , 2009, p. 6

Word‐of‐Mouth New Forms of Media

Web Search

360° integrated Marketing Communication (Don Schulz 2009)

Botschaft

Kunde/ Community

360°Marketing‐

Kommunikation

Changes in Marketing:The Marketing Funnel

• Is the funnel still there?

Attention

Interest

Preference

Action

360° Medienmanagement Integriertes Markenkommunikationsmodell (Don Schulz 2009)

Botschaft

Kunde Media

Product positioning process• Generally, the product positioning process involves:• Defining the market in which the product or brand will compete (who the

relevant buyers are)• Identifying the attributes (also called dimensions) that define the product

'space'• Collecting information from a sample of customers about their perceptions of

each product on the relevant attributes• Determine each product's share of mind• Determine each product's current location in the product space• Determine the target market's preferred combination of attributes (referred to

as an ideal vector)• Examine the fit between:

– The position of your product– The position of the ideal vector

Positioning concepts• More generally, there are three types of positioning concepts:• Functional positions

– Solve problems– Provide benefits to customers– Get favorable perception by investors (stock profile) and lenders

• Symbolic positions– Self-image enhancement– Ego identification– Belongingness and social meaningfulness– Affective fulfillment

• Experiential positions– Provide sensory stimulation– Provide cognitive stimulation

Social Media BasicsWhat do I have to know and understand to get started?

How to get started1. Stay focused on your objective

• Which channel, which medium, which platform will help me reach my target?

• Define marketing goal • Define target markets

Be where your customers are!!

How to get started2. What do you intent to achieve?• Win additional customers• Gain a new customer base• Increase sales• Increase awareness• Enter new markets

• Increase communication with customers

• Increase website traffic• Increase image• Change image• Increase online reputation

As with traditional marketing: set yourself realistic goals!

How to get started3. Where are your customers having their conversations?

“Let's spend a day in your customers media mix and learn to understand what they experience, how they feel, and most of all, how they communicate and interact. “ Kevin Colleran, Facebooks #1 Sales Rep

“Spend a Day in your Customers Media Mix”“Let's spend a day in your customers media mix and learn to understand what they experience, how they feel, and most of all, how they communicate and interact. “ Kevin Colleran, Facebooks #2

Relevance

BenefitEntertainment

How to get started4. The Content

How to get started5. Set Strategy + Processes

• Where are my customers => What product(s) are suitable for social networks?

• How do I position these products?• Does my CI and brand fit the online

community?• How do I communicate online (tone

and stile)?

• Which social networks will be suitable?

• What reactions should I be prepared to get?

• How will I react to negative feedback from blogs, etc.?

• Do I communicate centralized or distributed?

Ask yourself

You have no glue? Then have a look how your competitors do it!

Social Media Marketing has an ever growing Toolbox

– Search Engines– Forums– Blogs– Interest Groups– Portals– Social Networks

(Facebook, Twitter, Xing, LinkedIn, Spotify, Pinterest…)

– Podcasts– YouTube– Price Search Engines– Rating Sites– Picture Galleries– …

The Old Way:eMarketing and eCommerce Tools– eMail– Portals– Corporate Websites– …

Social Media Marketing

Trad. Media vs. Social Media Shouting vs. Sharing

19.12.2011Dr. Ute Hillmer, Better Reality Marketing→ additional Marketing Chanel(s)

Consequences of Social Media Marketingfor the Product Range “The Long Tail”•

Chris Anderson: The Long Tail, 2006.

Consequences of Social Media Marketingfor the Customer“The Cluetrain Manifesto (2001)”95 Theses Excerpt1. Markets are conversations. 12. There are no secrets. The networked market knows more than companies do about

their own products. And whether the news is good or bad, they tell everyone. 17. Companies that assume online markets are the same markets that used to watch their

ads on television are kidding themselves. 18. Companies that don't realize their markets are now networked person-to-person, getting

smarter as a result and deeply joined in conversation are missing their best opportunity. 19. Companies can now communicate with their markets directly. If they blow it, it could be

their last chance. 21. Companies need to lighten up and take themselves less seriously. They need to get a

sense of humor.

Consequences of Social Media Marketingfor the Customer“The Cluetrain Manifesto (2001)”• “These networked conversations are enabling powerful new forms

of social organization and knowledge exchange to emerge.

• As a result, markets are getting smarter, more informed, more organized. Participation in a networked market changes people fundamentally.

• People in networked markets have figured out that they get far better information and support from one another than from vendors. So much for corporate rhetoric about adding value to commoditized products.”

Levine , Locke, Searls ,Weinberger:The Cluetrain Manifesto: The End of Business as Usual, 2001.

Σ Social Media Basics

#1 Built and maintain networks:THE SM TOOLBOX

#2 Built credibility and trust, especially in B2B: CONTENT MARKETING

#3 Be found by your target market:SEO + SMM

Recap Social Media Basics• What was most important for you so far?

Tell your neighbor to the right and left.

• What open question emerged?

• What is unclear?

What is

Content Marketing?Dr. Ute Hillmer

Content Marketing

Content marketing equips buyers with the knowledge to make better-informed decisions.

The thinking behind it:Central to content marketing is the belief that if businesses deliver consistent, helpful information to buyers at the right time, then prospects will ultimately reward the company with their purchase and loyalty.

What is Content Marketing?

Content is the reason people go to your site

Give your customers the content they want…

…not what YOU think they need!

Picture Dan Zarella

Why is Content Marketing important?

Average person is exposed to 5.000 ads / offers per day

Buyers have tuned out marketing

Think of an Art Gallery

Where is the Art?

People come to see art, not empty frames or empty walls

Content is the reasonpeople go to your site

Content Marketing Fundamentals 1

Shift thinking from marketer to publisher1. Define a critical group of buyers2. Determine what info prospects really need3. Determine how prospects want to receive info4. Deliver info for maximum impact on goals5. Measure and recalibrate

World views!

1. Consider the worldview of your target customer group

2. Tell a compelling story

Age is no longer a key indicator -

areas of interests are!

Content Marketing im B2B• Companies don‘t have conversations, PEOPLE have!

• B2B is usually about niche problem solving – problems are best solved in teams with many different experts contributing “niche” CONVERSATIONS

• Problem solving requires trust RELATIONSHIPS

• 1:1 Marketing was a buzzword of B2B n:n

Content Marketing im B2B

• PEOPLE

• niche CONVERSATIONS

• RELATIONSHIPS

• n:n

→ Social Media Chanels

New Technologies in B2B Markets

thus we have to change how we do things...

Behavioural Economics• Behavioral economics and the related field, behavioral

finance, study the effects of social, cognitive and emotional factors on the economic decisions of individuals and institutions and the consequences for market prices, returns and the resource allocation. The fields are primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology with neo-classical economic theory. In so doing they cover a range of concepts, methods, and fields.[1]

• Behavioral analysts are not only concerned with the effects of market decisions but also with public choice, which describes another source of economic decisions with related biases towards promoting self-interest. 1

Marketsize

An Idealized Technology Product Lifecycle

Laggards16%

Late Majority

EarlyAdopters

Early Majority

Innovators2,5%

Moore; Crossing the Chasm

Marketsize

An Idealized Technology Product Lifecycle

Laggards16%

Late Majority

EarlyAdopters

Early Majority

Innovators2,5%

Laggards

Skeptics:No way!

Late Majority

Conservatives:Hold on!

EarlyAdopters

Visionaries:Get ahead!

Early Majority

Pragmatists:Stick with the herd!

Innovators

Techies:Try it!

Adopter Categorization on the Basis of Innovativeness

TimeLaggardsLate Majority

EarlyAdopters

Early Majority

Innovators

Mainstream Behaviour

Increasingly conforming behaviour

Hillmer, Technology Acceptance in Mechatronics, 2009.

cumulative

r of ado

ptions

TimeLaggardsLate Majority

EarlyAdopters

Early Majority

Innovators

Individualistic Behaviour

Increasingly individualistic behaviour

Chart based on Rogers 1995, p. 262 and Moore 1999, p. 12

cumulative

r of ado

ptions

Σ Content Marketing

Σ Content Marketing„Once upon a time…“

Best and Worse Practice

Trust building with Pragmatic Innovation Customers„Concentrate a overwhelming power on a small,

focused target market segment“

Customer

Trustbuilding with Pragmatic Technology Customers• Be familiar with the worldview, processes and the

issues that worry your customer segment

References

Peer communities

Vender neutral technology information

Relativeadvantage

compatibility

trialability

observability

less complexity

Customer Insight

Herausforderung B2B im Social Marketing

Krones AG

einer der führenden Hersteller von Maschinen und Anlagen für die Prozess‐, Abfüll‐und Verpackungstechnik.

Krones Ziele im Web

Entscheider ansprechen (insbesondere zukünftige) Zielsegmente ansprechen: z.B.

Maschinenbediener, Weinblogger Recruting neuer Mitarbeiter Identifikation der Mitarbeiter mit dem Unternehmen

stärken

Facebook Twitter Xing Youtube

C. Schmidt, Social Media Officer, Krones AG, 2010

Interessenten-und Kunden Community:Nutzertypologien

19.12.2011Dr. Ute Hillmer, Better Reality MarketingLi, Bernoff, Groundswell; Forrester Research, 2009, S.43

Membership Development Stages

19.12.2011Dr. Ute Hillmer, Better Reality MarketingHagel, Armstrong: Net Gain; McKinsey 97

Im Dialog mit Anwendern

• Facebook „Krones Academy“

Facebook im Doppelpack: Krones und Krones Akademie ca. 2000 Fans Recruiting , Mitarbeiter und Kundenbindung

Im Dialog mit heutigen und zukünftigen Entscheidern - zielgruppenspeziefisch

Im Dialog mit heutigen und zukünftigen Entscheidern

Im Dialog mit dem zukünftigen Mitarbeiter

Best Practice Innov. Marketing

Best Practice ‚Listening‘Influencer Monitoring: Adobe with eCairn• maps virtual

social communities (groups of passionate people experts on a topic) and ranks key influencers within a specific community

Best Practice ‚Talking‘UPS with popurls.com + whiteboard videos

Best Practice ‚Energizing‘Spiceworks• The Spiceworks Network is a community of over

1 million IT pros from small to medium Bs using the Spiceworks IT management application in 190 countries.

• Most active "SpiceHeads", attracted 1,500 new IT professionals every day.

Best Practice ‚Spreading‘Threatpost by Kaspersky

• Threatpost is a security news site. • The editorial team for Threatpost created a site that includes both

original reporting and aggregation of the most important security news stories.

• Threat post reached 208,000 page views, 90,000 unique visitors, and 200 monthly comments between November 2009 and June 2010. There are 10,000 op-in subscribers to its newsletters in English, Spanish, and Portuguese.

• Combined, Threatpost activities have captured over 1200 leads for Kaspersky.

Best Practice ‚Supporting‘IBM developerWorks• IBM developerWorks is a free community and social network for 8 million

developers and IT professionals worldwide. It includes content and discussions on open standards, open source, and IBM technical resources in English, Chinese, Japanese, Russian, Korean, Vietnamese, Brazilian Portuguese, and Spanish. It includes 30,000 articles, forums that attract 1 million visitors a month, 400,000 active profiles, 800 bloggers, and 450 wikis. IBM saves $100 million annually from people who use this resource instead of contacting IBM support.

Mehr bei Forrester

• http://forrester.typepad.com/groundswell/2010/10/winners-of-the-2010-forrester-groundswell-awards-b2b.html

Some Not So Lucky Strickes

See Razorfishs presentation at: http://www.slideshare.net/rlovinger/content-gone-wild

What is a Content Strategy?

Content Strategy plans for the creation, publicationand governance of useful, usable content.

Content strategy helps you understand not only whatcontent needs to be created and when it needs to bepublished, but why. (Kristina Halvorson)

Content Strategy at eBay

Let‘s learn from mistakes others made

Slides from Razorfish

Technology Marketing –What role does engegement anddialog play? “

1. technology product lifecycle or: why focus??

2. diffusion of innovation3. customer profile categories4. 5 things to remember5. summary

development phases of a new business or service

Market Demand: Product Lifecycle

outbound Marketing

R&D andinbound Marketing

Cash flow over time

t size

Rogers Diffusion of Innovation 1995

an idealized technology product lifecycle

Continuous Innovation

Disruptive Innovation

Laggards16%

Late Majority

EarlyAdopters

Early Majority

Innovators2,5%

12.6.2012 Dr. Ute Hillmer Time

Rogers Diffusion of Innovation 1995 Moore; Crossing the Chasm 1999.

diffusion of innovation varies…

Why do certain innovations have a much longermain street momentum?

Why do certain innovations diffuse much

faster than others?

new disruptive technology …

changes how we do things

thus we have to change how we do things...

t size

technology life cycle and its buyer categories

Laggards16%

Late Majority

EarlyAdopters

Early Majority

Innovators2,5%

Chart based on Rogers 1995, p. 262 and Moore 1999, p. 12

t size

technology life cycle and “the gap” or:why you should focus

Laggards16%

Late Majority

EarlyAdopters

Early Majority

Innovators2,5%

Chart based on Moor 1999

LaggardsLate Majority

EarlyAdopters

Early Majority

Innovators

mainstream behaviour

Increasingly conforming behaviour

größ

EarlyAdopters

Early Majority

Innovators

individualistic behaviour

Increasingly individualistic behaviour

größ

things to remember

stereotype behaviour is universal

start by focusingon 1-3 niches

an advantage for one individual, a thread for

another !

- segment your customer communication to accommodate the differences!

when your technology dramatically changes human behavior -be prepared, …

the majority of the market might hesitate to buy for a long time

but when the new way of doing things gets accepted, everybody wants it right away.

what you are familiar with, will be easier accepted by the mainstream

– even if the link is more than vague!

Intel, mobile devices and 野比のび太

野比のび太

Nobita Nori of the Doraemon Manga with his dōgu “doko demo door“, the “go-anywhere door“ that opens up to any place the user wishes and imagines.

What you are familiar with, will be easier accepted by the mainstream – even if the link is more than vague!

Source: Mail Online , 17 November 2010

search for local familiarities and wrap it in a story

Use the different personality profiles in your customer dialog: visionaries as visionaries, pragmatists as pragmatists

EarlyAdopters

Early Majority

Innovators

early adopters = visionaries

EarlyAdopters

Early Majority

Innovators

early majority = pragmatists

don’t forget to look outside the boundaries of rationality,

these usually vary by culture

despite the economic context

Subjective Construction of Reality

Each individual sees the world through subjective lenses. Consider typical customer segments universally and look for social and emotional differences by region...

Seth Godin, All Marketeers tell stories, 2009Mischel and Morf, Handbook of self and identity, 2003.Kelly, The psychology of personal constructs, 1991

and then TELL YOUR STORY!

And now

Exanples Dialogmarketing heute

• mymuesli• Dell• Krones• Litago Milch• Jugend gegen Aids• Domino Pizza

Krones Kundenfokus

Krones plant, entwickelt und fertigt Maschinen und komplette Anlage … wie viele andere auch … aber: Vertrauensaufbau durch klare Ausrichtung auf

Marktsegmente - aus der

Kundenperspektive!

Krones Support und Training

Wismet Filter für höchste Ansprüche

Elsäßer Filtertechnik

Vertrauensaufbau mit dem “Pragmatischen Technologiekunden”Seine Arbeitsprozesse, seine Probleme und Sorgen sowie seinen Blick auf die Welt kennen und verstehen.

Referenzen

Gemeinschaft Gleichgesinnter

Herstellerneutrale Informationen

Relative Vorteile Kompatibilität Testbarkeit Beobachtbarkeit Reduzierte

Komplexität

Kunden Insight

Dell‘s zielgruppenspez. Kundendialog

Es wird auch über Ihre Produkte geredet –sind Sie im Bilde?• Man redet über ihre Produkte – mit Ihnen oder ohne

Sie … Versuchen Sie den Verlauf mitzubestimmen!

• “Dell Hell” war 2005 ein Weckruf

Jeff Jarvis Blogpost

Dell Communities Blog‘s ,Forums, IdeaStorm

Zielsetzung Kundeninsight Plattformen für Problemlösungen und Ideen Kundenbonding, pos. Marken-wahrnehmung

Zielkunde Segmentierte Kundengruppen + zukünftige Kunden

SM Strategie Beteiligung + Lernen von und mit Kunden „Be were your customer is“

Resultate Ca. 1.7 M registrierte Mitglieder 2.300-2.500 Posts/Woche

TechCenter Blog, Chat, Community

Dell IdeaStorm Ideenbörse und Innovationszentrum

Zielsetzung Kundenideen + –problemen generieren Kundeninsight zu Dringlichkeiten

Zielkunde Kunden Potentielle Kunden

SM Strategie Beteiligung + Lernen

Resultate 15.000 Ideen >900.000 Stimmen abgegeben 500 Ideen Implementiert

Marketing F&E

Dell Design Studio Mass Individualisation

Zielsetzung Mass Customization Brand-

WahrnehmungZielmarkt Individualist. Kunden Potentielle KundenSM Strategie Online Angebot

Dell Shop eCommerce mit sozialen Inhalten

DellOutlet Twitter als Outletstore

Zielsetzung Verkauf Brand-Wahrnehmung ändernZielmarkt Kunden Potentielle KundenSM Strategie Twitter als GeschäftsplattformResultate Juni 2009: $6,5 M Umsatz Twitter USA: 1,5 Mio Follower (D: 131 seit Feb. 2011)

DellOutlet Deutschland Twitter als Outletstore

DellOutlet China Twitter als Outletstore

DellCares Twitter als Supportkanal

ObjectiveKundenprobleme lösenBrand-Wahrnehmung ändernTargetKundenPotentielle KundenSM StrategieTwitter als SupportkanalResultate10.000 Follower10.000 Tweets

Dell Monitoring „Social Media Listening Command Center“

Zielsetzung Informieren: Kundenfeedback in

Echtzeit bereitstellen Zuhören & Agieren: frühe Warnsignale

erkennen und schnell handeln Sicherstellen, daß effektive

Kundeninteraktionen stattfinden Unterstützend – Infos und Support für

die Communities mit Einfluß im Netz Zielkunde Alle relevanten Abteilungen im

Unternehmen Kunden/potentielle Kunden Communities / influencerSM Strategie Schaltzentrale

TheSocial Media Toolbox

What Media Channels should I use?

Where should my company be present?

Dr. Ute Hillmer, Better Reality Marketing

The Social Media Toolbox

Dr. Ute Hillmer, Better Reality Marketing

Choose yourchannel wisely

Slide by Presentation Advisors

Select YOUR Toolsnot All Tools!

Which Media to choose?

19.12.2011

PR Content

Website

Microsites

Social Media as a Workflow Process

Newsletter

Communication Channel Corporate Hosting

Facebook

Twitter

Foursquare

Yammer

Youtube

Flickr

Slideshare

Slide by Björn Eichstädt, Storymaker

Types of Social Media Interactionby Source

Existing Social Media(Facebook, Xing, Twitter,

Linkedin, etc.)

Corporate Social ContentCorporate Blogs, Forums, branded / unbranded Social

Networks, etc.)

Customer‐facingemployee

Monitoring / Data Mining

Market‐triggered social

interactions

Business‐triggered social

interactions

Social Marketing

SocialSales

Social Service

Questions &complaints

MarketInformation

CustomerPreferences

(outside‐to‐outside)

(inside‐to‐outsideinside‐to‐inside)

Market

Marketing Sales Service

Socially‐enabledMarketing

Socially‐enabledSales

Socially‐enabledService

Socially‐enabledF&E

Corp. Website

based on Cipriani 2009

FB Page

Google+

TwitterAccoun

Types of Social Media Interactionby Purpose

Marketing Sales Service/Support

Social MarketingInsight

Social SalesInsight

Social Support Insight

Innovation

Social InnovationInsight

Rapid SocialMarketing Response

Rapid Social Sales Response

Rapid Social

Support ResponseCrowedsourced

Social EventManagement

Social Campaign Tracking

Sales Referal

Proactive LeadGenerierung

CRM = Customer Relationship Management

How to get started3. Which Media to choose?

generate interest for a conferenceMarketinggoal

Get visitors to the website

360° Medienmanagement Kundenprofile beachten

• Was machen Silver Surfer (>50 J.) Online?

360° Medienmanagement Kundenprofil: Digital NativesWas machen Digital Natives (zwischen 14 und 29 J.) online?

The Corporate Website:Center Stage +Aggregation Point

The Corporate Website

• You control the content and the design• You can backlink all media channels to the site• One stop overview, monitor and archive• Low cost professional site with Open Source tools

like Wordpress und Joomla, templates, plug-ins und RSS feeds.

The Corporate Website

• You must manage and maintain the site including its layout and design, content, tech. support and its URL(s)

• Corporate Websites are usually seen as push marketing.

• Cost and time intensive

The Corporate Blog as the “Sun of the Solar Content System”

The Corporate Blogblog.daimler.de

Dell Blogs Blogs ,Forums

Objective Kundeninsight Plattform for problem solving and ideas Customer bonding, pos. brand recognition

Target Segmented customer groups + prospects

SM Strategy Engagement and learning from and with customers

Results 1.7 M registered members (spring11) 2.300-2.500 Posts/Woche

Direct2Dell Blog

Dell Shares Investor Relations

The Corporate BlogEmployees as Experts

Types of Social CRM Interaction

Existing Social Media Networks

(Facebook, Xing, Twitter, Linkedin, etc.)

Networks, etc.)

interactions

Social Marketing

SocialSales

Social Service

MarketInformation

CustomerPreferences

Market

Socially‐enabledR&D

The Corporate BlogTypes of Social Media Interaction

Social SalesInsight

Innovation

Rapid Social

Sales ReferalSocially‐enabled

Service

The Corporate Blog• You can show that you know a lot about a topic• You are easily found by search engines (search engines follow

backlinks; a good article easily generates 10-50 backlinks in a few days)

• It is free for the customer and free media for you as a vendor

• You can segment your target market nicely• It can be the starting point for new content, hosts

conversations, can provide context for news• It can be a starting point for personal brands• Small companies can get to the top of search engine

rankings

The Corporate Blog

• Frequency is a must time consuming• You are not credible in a “controlled” bog• You don’t control what is said in an open employee

blog• Generating relevant and interesting content on a

frequent basis is not easy

The Corporate BlogMake some rules.

http://www.ibm.com/blogs/zz/en/guidelines.html

Empower all employees… they are the brand.

• Behave professionally and ethically.• Take personal responsibility.• Include a disclaimer: your opinions are yours, not IBM’s.

• Don’t pick fights.

“Use social media as a means to expose IBM’s experts—and expertise—to the world.”

Adam ChristensenManager, Social Media Communications

Empower all employees… they are the brand.

• Behave professionally and ethically.• Take personal responsibility.• Include a disclaimer: your opinions are yours, not IBM’s.

• Don’t pick fights.

“Use social media as a means to expose IBM’s experts—and expertise—to the world.”

Adam ChristensenManager, Social Media Communications

Social Networks

Social Networks 2

Social networks are network communities on the internet. Users can add friends or followers and send them messages or notify them about updates concerning themselves.

Built and Maintain Networks Individuals, professionals and companies look for suitable networks and clusters

Within a network, they look for suitable groups and joint them

How Social Networks workThink about a sports club!

How Social Networks work 2• Voluntary active or passive membership• Special areas of interests• One communicates where one has something to say

(or not), has an opinion, answers questions, asks questions, …

• If one is open, friendly and nice, friendships will develop that value ones expertise and opinion

• Once one has built a reputation, it will be accepted, even appreciated if one recommends and hints one ones products and services, online shop, other products…

How Social Networks work 3

Friends are easily found, one links up, meets, networks, …and own expertise distributes …

Dell on Facebook Community

Objective Customer insight

Customer bonding, pos. Brand recognition

Target Segmented customer groups and prospects

SM Strategy „Be were your customer is“

Offer community experience

Results 644.723 likes (July 2011)

909.910 likes (Dec 2011)

Dell on Facebook Ratings

Dell on Google +

Dell on Google + Hangouts

Networks, etc.)

interactions

Social Marketing

SocialSales

Social Service

MarketInformation

CustomerPreferences

Market

Areas of Action in Social CRM

Social SalesInsight

Innovation

Rapid Social

Sales Referal

Starting point for Social Customer Relationship Management

Social SalesInsight

Innovation

Social Innovation

Insight

Rapid Social

Service

Social Networks

• Direct customer communication• Largest social Network • Many forms of interaction• Entertainment• Full display of many media

formats (pictures, movies, games, ...)

• Cool ideas result in huge reach• Personal reputation

management• Facebook statistics

• Efficient marketing tool• Gives companies “a face”

or “faces”• Connectable with twitter,

Google+, linkedin…• Mobile app• Location updates• Many apps enlarge

functionality

Social Networks

• Uncontrolled environment for employees

• Time-consuming• Less exciting products

can have a hard time gaining recognition

• Requires high frequency of relevant content generation

• Privacy problems– Like button (documenting all

activity on the website)– Open FB tab in Browser– Apps can result in spam

• Hard to separate private and business

• FB can change the rules as they like (free service)

Practice

Business Oriented Social Networks• More serious environments,

no personal content• Suitable for personal business

profile pages• Customer + recruiter research• Personal reputation

management• Business oriented groups• Business contact initiation and

management

• Increasingly commercial + spam

• Time consuming• Not all audiences are in

these networks• Often regional

Content Sharing Platforms

• Online Communities for archiving and sharing content such as:– Photographs and images– Videos– Audios– Presentations

PR Content

Website

Microsites

Social Media as a Workflow Process

Newsletter

Communication Channel Corporate Hosting

Facebook

Twitter

Foursquare

Yammer

Youtube

Flickr

Slideshare

Content Sharing Platforms Easy way to display,

archive and share No need for own

infrastructure and storage

Possible real time reporting of events

Products / content is ranked by audience

• Copyright problems• Free data upload or

information spread is limited

• No quality control of content and material

Crowd Sourcing / Open Innovation

19.12.2011

Dell‘s Crowdsourcing Aktivitäten

IdeaStorm Open Innovation Platform

Objective Collect product ideas, and Product solution ideas from customers Custoner insight ranked by urgencyTarget customer prospectSM Strategy Engagement + learning

Results (7/11) 15.000 ideas >900.000 votes 500 ideas implemented

19.12.2011

Marketing R&D

Dell Design Studio Mass Individualisation

Objective masscustomization

brandrecognition

Target individualisticcustomers + prospects

SM Strategie online offer

Open Innovation through Social Media

Directly involved Innovation Resources: R&D and Marketing (inbound+outbound)

Market Demand: Product Lifecycle

outbound Marketing

inbound Marketing

Cash flow over time

Networks, etc.)

interactions

Social Marketing

SocialSales

Social Service

MarketInformation

CustomerPreferences

Market

Social SalesInsight

Innovation

Rapid Social

based on Altimeter Group 2010

Sales Referal

Starting point forSocial Customer Relationship Management

Social SalesInsight

Innovation

Rapid Social

Service

Online Shops

Dell Shop eCommercewith Social Content

Objective sales Change brand perception

Target customers prospects

SM Strategie eShop with rankings +

reviews

Recommendation Platforms

• bad products are exposed

• Here users share experiences, perceptions and recommendations about products, services and organizations . Sometimes detailed discussions can evolve..

• Products are ranked by audience

• credibility• good products are usually

ranked positively

19.12.2011

Networks, etc.)

interactions

Social Marketing

SocialSales

Social Service

MarketInformation

CustomerPreferences

Market

Social SalesInsight

Innovation

Rapid Social

Sales Referal

Social SalesInsight

Innovation

Rapid Social

Service

Microblogging

Twitter

Microblogging is a form of blogging that allows users to send brief text updates (or micromediasuch as photos or audio clips) and publish them. These messages can be submitted by a variety of means like text messaging, instant messaging, E-mail, digital audio or the web. (Wikipedia)

Dell on Twitter

Dell‘s TwitterActivities

DellOutlet Twitter as an Outletstore

Objective selling change brand recognitionTarget customers prospectsSM Strategy Twitter as a sales plattformResults June 2009: $6,5 M revenue Delloutlet: 1,54 Mio 7/11 1,55 Mio 12/11 follower (D: 131 seit Feb. 2011)

19.12.2011

DellOutlet Deutschland Twitter as an Outletstore

DellOutlet China Twitter as an Outletstore

Twitter fast cheap real-time communication real-time market research advertising allowed direct customer great monitoring tool (alternative

clients, e.g. tritterdeck) interest based, not friendship

based global mobile

• only short messages (Twitter 140 characters)

• short lifetime of tweets• a lot of meaningless information

in twitter sphere• difficult to measure• Spam / unpleasant followers

possible• Fast media for fast + easy

mistakes

Networks, etc.)

interactions

Social Marketing

SocialSales

Social Service

MarketInformation

CustomerPreferences

Market

Social SalesInsight

Innovation

Rapid Social

Sales Referal

Social SalesInsight

Innovation

Rapid Social

Sales Referal

DellCares Twitter as a Support Channel

Objective Solve customer problems Change brand recognition

Target customers prospects

SM Strategy Twitter as a support channel

Results 10.000 follower (7/11) 15.600 follower (12/11) 13.460 Tweets

Networks, etc.)

interactions

Social Marketing

SocialSales

Social Service

MarketInformation

CustomerPreferences

Market

Social SalesInsight

Innovation

Rapid Social

Sales Referal

Social SalesInsight

Innovation

Rapid Social

Sales Referal

Monitoring Twitter as a trend scout

Objective Identify future trends Identify brand + product issues

Target Marketing R&D

SM Strategy Twitter als Supportkanal

Why Social Media Monitoring? Issue Management

What expectations do different stakeholders hold?

Identify areas with potential for conflict early and address them proactively (before the broader public gets aware)

Identify, monitor and construct actions to manage/reduce/neutralize stakeholder discrepancy of expectations.Develop an “early warning system”

19.12.2011

Dr. Ute Hillmer, BetterReality Marketing

Remember: They talk about you! • They do it with or without you … you should steer the

direction best you can!• Dell Hell was a showcase starting point in 2005

Why Social Media Monitoring? Customer Service and Support, CRM

Identify and address core customer needsSales adviceSetup / integration supportRuntime support

Customers help customersIdentify and bond with advocatesIdentify and utilize star experts Reduce support cost

19.12.2011

Why Social Media Monitoring? Product Marketing and R&D

Identify + address product shortcomings / improvement opportunities

Customer / user complainsCustomer / user suggestions and ideasCustomer / user use cases

Identify and address core customer needsIndustry discussionsCrowd sourcing

Identify trendsIndustry discussionsCrowd sourcing

19.12.2011

SMM Value Creation and KPIsTraditional Online Marketing

Page ImpressionsUnique VisitorsConversions

Social Media MarketingFoster DialogPromote AdvocacyFacilitate SupportSpur Innovation

19.12.2011

SMM Value Creation and KPIs

19.12.2011

Source: rolandfiege.com

Why Social Media Monitoring? Brand Management

What brand image do stakeholders have in mind?What brand image do I want them to have?

Develop brand buzz to help steer brand image (truthful and authentic)

Monitor brand image of core stakeholder groups and construe action to reduce discrepancy if necessaryIdentify brand associationsMonitor the competition

19.12.2011

Success metrics must be developed with specific business objectives in mind to be used and useful.

mythological, pragmatic, common sense

SMM Value Creation and KPIs

Source: Social Marketing Analytics, Altimeter 2010, p. 9

Social CRM

CRM 1.0 CRM 2.0

Establishing need

Experience

Sharing

impressio

Decision

Marketing Sales CustomerService

Support processes

Operation processesValue

Expansion

Targeting

Retention

Acquisition

Expansion

Targeting

Retention

Acquisition

Formen von CRM Analytisches CRM• Detaillierte Analyse aller kundenbezogenen Transaktionen und

Prozesse und Verwertung der Information für zielgruppengerichte Strategien und personalisierte 1-to-1-Konzepte.

Operatives CRM• Kunden-und -kanalspezifische Implementierung kundenbezogener

Geschäftsprozesse. Integration von Customer Touchpoints (Call Center, Web etc.) und Backoffice.

Kollaboratives CRM• Management der verschiedenen Vertriebskanäle (Multi Channel

Management) inkl. der Identifikation von Kanalkonflikten, -kosten und -potenzialen.

Customer Centric Business Model

Marketing

Customer

Produkt/Service

Definition Social CRM

Social CRM is the business strategy of engaging customers through Social Media with the goal of building trust and brand loyalty. Loyalty is defined as attitude towards a brand that inclines a customer to repurchase it and/or recommend it to others.

19.12.2011Dr. Ute Hillmer, Better Reality MarketingHarish Kotadia, Definition of Social CRM, 2011.

Evolution in CRMTransaction- and process orientedTechnology enabled customer processes in order to support and organize sales-, marketing and support activities (Shaw)

Eigenes Unternehmen

Konkurrenz Supplier / Partner

Kunde Kunde

KundeKunde

Kunde Kunde

CRM 1.0

Eigenes Unternehmen

Konkurrenz Supplier / Partner

Kunde Kunde

KundeKunde

Kunde Kunde

CRM 2.0

Conversation‐ and process oriented

Involving customers for better customer insight, trust building, building brand loyalty, problem recognition and customer segmentation.

More customer insight through his network connections and communities.

Dell „Social Media Listening Command Center“

Dr. Ute Hillmer, Better Reality Marketing 19.12.2011

Objective Inform: customer feedback in real time

Listen and act: recognize alarm signals early and act upon them

Ensure effective + appropriate customer interaction

Support: Information + support for the influencers and communities with influence online

Target all relevant departments customers and prospects communities / influencer

SM Strategy control center

Social CRM Tools and Foundation

19.12.2011Dr. Ute Hillmer, Better Reality MarketingGreenbaum, Social CRM comes of Age, 2009, p.13

Networks, etc.)

interactions

Social Marketing

SocialSales

Social Service

MarketInformation

CustomerPreferences

Market

Social CRM functional architecture

19.12.2011Dr. Ute Hillmer, Better Reality MarketingMarketing Sales Service

Face to facePhone /SMS

E‐mailLetter

Website

BusinessPartner

Traditionalle Processes

Traditional Channel Interfaces

Social CRM Layer

Social Channel Interface

Internal Social Tools(Internal blogs, wikis, sharing platforms, social

networks, innovation portal, etc.)POS

Market‐oriented Social Tools

Market

Interne Collaboration Tools

Corporate Social Content(Corporate Blogs, Forums, Branded / unbranded Social Networks, etc.)

Ext. Social Media Networks(Facebook, MySpace, Twitter,

Linkedin, etc.)

Based on Cipriani 2009

Social SalesInsight

Innovation

Rapid Social

Sales Referal

Recap Social Media Toolbox

• What was most important for you in this session?Discuss it in the workgroup from the role play.

• Make one joint statement

• What is unclear?

Hands on ExploitationInvestigate the online + social media activities of one of the following companies: Mymuesli.com (Online Composition and Retail) Krones.de (B2B) Litago.no (Customer Experience)

Present in 5 Minutes, what they do Online and what you think is useful and what not.

Suggested Reading• Groundswell by Charlene Li, Josh Bernoff• Positioning by Trout and Ries• In Pursuit of Wow! + The Tom Peters Seminar by Tom Peters• What would Google do by Jeff Jarvis• All Marketeers tell Stories by Seth Godin• 1 to 1 Marketing Future by Don Peppers• CRM at the Speed of light by Paul Greenberg• The Long Tail by Chris Anderson• The Wisdom of Crowds by James Surowiecki• Crossing the Chasm by Geoffery Moore• Selling the Dream by Guy Kawasaki

Auf‐merksam‐

Interesse

Präferenz

Aktion

Social Media -Was macht der Marketingtrichter?

Klassisches Marketing

Klassisches Online

Marketing

SocialMarketing

360° Marketing Was macht der Marketingtrichter?

Klassisches Online

Marketing

SocialMarketing

Aktivierung

Anreiz‐schaffung

Dialog

AnerkennungBestätigung

Auf‐merksam‐

Interesse

Präferenz

Aktion

Aufmerksam‐keit

Interesse

Wunsch

Aktion

Klassisches Online

Marketing

SocialMarketing

Aktivierung

Anreiz‐schaffung

Dialog

Anerkennung Bestätigung

Quelle: Forrester Research 201019.12.2011Dr. Ute Hillmer, Better Reality Marketing

This presentation is available in 3 parts in the download area of

www.better-reality.com

Dankeschön!

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