Your report of the first Social Marketing Breakfast

April 12, 2010

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Introduction : What is social marketing ?

What is social media marketing ? In essence, all activities brands

conduct on the Web with a social dimension: sharing, conversations,

through existing social networks or own channel.

What's so attractive? Well, you heard about 'joining the

conversation'...Social marketing will help you grow your business

through more engaged consumers, more active ambassadors .

So we thought it would make sense to explore the 4 myths, 3 plagues

and picked 2 great examples of the arena, since everyone has some

sort of 'a priori'.

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Agenda

myths

plagues

great examples

conversation

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3

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Myth 1 – We have too many customers

11% PPC

Tropicana Pure Premium

Tropicana Pure Premium No Pulp Tropicana Healthy Heart

0.9% PPC7.9% PPC

▪ 2.5% = ‘Pivotal Point Consumers’, 80% of sales

▪ In Belgium, this accounts for 100 000 shoppers for an average

brand

▪ 5 to 10% are lead users: 5 to 10 000 people (influent, early

adopters)

SOURCE: PPC - Catalina marketing study (actual behavior of 54 Millions of US citizens)

As some of you may have heard, we sometimes refer to a study made by Catalina Marketing in the US,

tracking the real shopping behavior of 54 millions americans. The results ? On average, 80% of the volume

of a typical brand is made by 2.5% of shoppers. In Belgium, this would mean 100 000 shoppers. The concept

of a 'mass product' is dead for FMCG

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Myth 2 – consumers do not care about online conversations

SOURCE: ANT Research, n=941, October 2009, Belgium

• -Myth 2: Consumers do not

care about online

conversations.

• Our study with ANT

Research in October 2009

showed that, while a minority

indeed will conduct

conversations, other are very

interested to see it.

• If they see the brand listens

and respond, they declare

that it would strongly

enhance their perception of

the brand

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Myth 3 – If they do, we would be overwhelmed

In Belgium, a typical

brand could expect a

~500 (average)-2000

(maximum) to interact

While a silent majority is looking for brands to react, only a minority, typically between

5 to 20% (for most engaged brands) will actually want to interact. Net, we found that

in Belgium, over a couple of months, a brand could expect between 500 and 2000

interactions. No need to hire an army.

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Myth 4 – There is no ROI

The US has furiously embraced social media over the last years. There is ample evidence that a

customer self-support forum is providing large impact in terms of cost savings (large Q&A base,

support by other consumers), and conversational marketing has been largely used to boost sales

and take advantage of the viral and amplifying effect of Twitter and Facebook. Last, we found a

high correlation between early adopters and influencers through our studies. Chances are high

that people who do care interacting with your brands are as well very active on social networks

and in 'live' events about your brand. Chances are high that they will be the first to adopt your

new products, the early adopters that are so critical to turn a new product into a success. Don't

miss them.

 

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SOURCE: Will Pate.org

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Convinced ? Hold on a bit more.

With those that made the jump, we found as well unfortunate habits already, what we

call the "3 plagues" of social media:

  - Plague 1: Too simple: Use social media as another 'push' channel.

  - Plague 2: Too aggressive: Campaign-based thinking.

   -Plague 3. Too passive: ROI vs  ROI

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Plague 1 – Use social media as just another “push” channel

SOURCE: Will Pate.org

Do you:

- Respond or acknowledge consumer statement and questions on Facebook fan page

?

- Do you reply to ‘@’ statement on Twitter ? Or even to monitored messages about

you but not addressed to you ?

- Do you move from Web monitoring to Web engagement ?

Many brands just copy/paste their newsfeed to Facebook, Netlog, Twitter...Wrong. Each channel has its

specificities, and most should be used to engage consumers in a dialogue.

For instance, Jetblue, the US airlines, is using Twitter mostly to respond to enquiries from customers, and

tailor its messages.

Razwar, an ecommerce challenger in Belgium proposing shaving solutions at a fair price, is filtering

messages about 'shaving' on Twitter and sending funny replies to followers, sending them to its web

sites.

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Plague 2 – Campaign-based thinking

SOURCE: The 10 plagues of social media, Media Post’s social

media insider

“There's no easy cure for

shaking off campaign-based

thinking. Campaign-to-

campaign and quarter-to-

quarter thinking prevents

marketers from reaping the

long-term benefits of social

marketing.”

Social marketing does not fit really well

into 'campaign-based thinking', which

is the usual rythm of companies and

agencies.

You are not at war, but wanting to

engage with consumers, one by one.

Because it takes time to plan, prepare

for it, and gain results.

Those can be substantial, but will take

some time. You need to build the right

audience for you step by step, and

invest a little, every day.

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Plague 3 – Flawed and slow decision-making process

ROI ROIvs There is a lot of talk about 'Return on Investment'. What is often forgotten is the

importance of 'Risk of Inertia'. Your competitors will put their acts together.

Consumers will get upset not to find you or your inertia - their sophistication and

expectations have skyrocketed over the last years.

As Steve Ballmer, CEO of Microsoft put it in a speech made in Belgium: 'for the first

time in history, marketers are trailing the consumers'. Don't let them trail you further

and put a sense of urgency into it.

 

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Example 1 – Starbucks: global leader in social media

• One person dedicated to Twitter

• Moved from 200k to 3.5 Millions Fans on

Facebook through viral effect

• Active on own ‘Starbucks idea’ web site

• Central coordination team of 6 people

• Greatly championed by CEO

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Example 2 – Danone@Brandialog

• Response rate: 60% (could still be better)

• Quality of responses: high

• Acknoweldge the issue

• Answers appropriately

• Take the opportunity to do personalized marketing

• Responds even to simple ‘fan’ message: great

• One issue: never replied to the suggestion of ‘Danette Speculoos’:

shame ;-)

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Our 4 steps method for conversational engagement

Map existing situation

re. engagement

Define your priority

targets to engage &

what for

Establish

engagement

channels and uses

Get started with

concrete initiatives,

quickly

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7 Concrete tips for your conversations

If you want the list or more, give us a call:

Patrick Willemarck +32 475 23 34 34

Alexandre Vandermeersch +32 491 08 80 09

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Our services: enabling engagement through the Web

• Qualitative research : a private, confidential

micro-community in a neutral space – no

investment required

• Happens within or outside Brandialog.com, a

neutral place to interact with brands

• Do not re-invent the wheel! With our dialog

engine, make quickly your web site social

for:

- Dialogue marketing

- Customer service

- Product reviews

- Feedback,…

• We provide animation and moderation as a

service

• Team combines unique expertise in

marketing, consumer insights and

communication

• We help you establish your engagement

strategy & roadmap in and out social

medias

• We find creative, concrete solutions to

boost your sales and marketing

CONSULTING PRIVATE DIALOG CUSTOM DIALOG

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Agenda

myths

plagues

great examples

conversation

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3

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1

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Did you miss the conversation ?Don’t miss the next one on April 27th, 8am.With Stephan Salberter from Deutsche Bank

Entry is free but make sure you book your place by sending a mail to info@brandialog.eu

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