Brad little nm incite

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The Value of Social Media Getting Down to Business September 15, 2010 Twitter: @BradleyJLittle

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Transcript of Brad little nm incite

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The Value of Social Media

Getting Down to Business

September 15, 2010

Twitter: @BradleyJLittle

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“Advancing Social Media Intelligence”

Trusted DataMetrics & KPIsInsights

Strategic ConsultingProcess and OrganizationDigital Marketing

▪ Jointly owned by Nielsen and McKinsey; co-developing unique software, metrics, and analytic services

▪ Market leader in enterprise social media monitoring/analytics (Source: Forrester)

▪ Dataset: Billions of social media conversations per year across 145 million blogs, message boards and social networks

▪ Global: 13 markets now ; 20 by EOY 2010; over 150 clients globally

▪ Quality is highest in the industry (source: Microsoft)

▪ Proprietary technology for analyzing social media

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BlogsBoards Groups

Proprietary Data

Social Networks

CleaningHarvesting

RelevanceAnalytics

World’s largest content reservoir Slice wisely for relevant, actionable insights

Control the harvest to ensure quality inputs

Filter the noise to focus on what matters

Local, full-time researchers

Built to deliver trusted insights

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What do we deliver?

Client Dashboard Tools & API Analyst Research Reports & Strategic Services

Use It For: At a glance brand metrics Self-service brand monitoring Analyst-Grade research tool Integration with other

applications

Use It For: • Longitudinal brand tracking• Adjusting key launches, events• Deeper, brand Insights• Informing strategy

All of the above supported by our local Social Media Analystsand/or Digital Strategic Services Consultants

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The “new” purchase funnel

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Expression

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Abundance of buzz sourcesSocial media (“buzz”) refers to public, online conversations

SOURCE: Nielsen

Globally consumers spend 6 hours a month on Facebook

More than 60% ofconsumers have visited a consumer-drivenwebsite

More than 2/3 ofglobal consumersuse online productreviews to makepurchase decisions

41% of Facebook users in MENA are over 30 years old

>35% of consumersrely on peer recommendations and WOM to makepurchase decisions

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Increasingly relevant for brands

“This product made my hair frizzy, dry and worst of all, led to...HAIR LOSS! Totally not worth it. I will go back to my old shampoo and conditioner.”

“I love this shampoo. I went through a phase in my life where I dyed my hair every color under the sun. This caused my hair to become dry and damaged. No matter what product I used nothing helped. Then this beauty came into my life and my hair is wonderful! I suggest this to anyone with dryness, split ends, or frizz.”

of online discussion

mentions brands26%

SOURCE: NM Incite

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Amplified impact on businessCase example: TV buzz (US)

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Social media drives intent…

SOURCE: NM Incite

Large increase in intent

No increasein intent

Less positive buzz More positive buzz

Difference in intent

between exposed

and control

Net sentiment

Net sentiment and change in purchase intent from buzz exposure (case example)

A

B

D

C

E

Brand A had a 15% lift in purchase intent

vs. 3% for Brand E

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…and influences sales

SOURCE: McKinsey

Online word-of-mouth influence on purchases (European example)Percent of sales influenced

Word-of-mouth is the primary factor behind

of all purchasing decisions

Electronics and computer equipment

Beauty care and clothes

Finance products/services

Telecom services

Travel & Entertainment

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Impact spans beyond marketing and sales

SOURCE: McKinsey Global Institute

Measurable impact of using social media and other web 2.0 technologiesPercent of companies

Increasing marketing effectiveness (e.g., awareness, consideration, conversion, loyalty)

Increasing customer satisfaction

Reducing marketing costs

Reducing customer support costs

Reducing travel costs

Increasing revenue

Reducing time to market for products/services

Increasing number of successful product/service innovations

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Challenges to social media strategy

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Relevance: buzz can be messyWhat people tweet

of tweets have

“useless” information~50%

...but cutting through this messiness is where

the value and your advantage lies.

In a word: Unprompted!

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5/16/105/2/104/18/10

Weekly buzz volume and reach

Reach

Volume

Campaign

Reach and impact: marketing effectiveness

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Advocacy: measuring influentialsThatKevinSmith twitter account1.6 million followers

Southwest Airlines twitter account1.0 million followers

Kevin Smith twitpic caption: Hey @SouthwestAir! Look how fat

I am on your plane! Quick! Throw

me off!

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Challenges of social media measurement

Relevance Reach and impact Advocacy

▪ Identifying relevant information

▪ Determining the right scope for your brand/product category

▪ Measuring the full reach of social media and its influence

▪ Quantifying the business impact (marketing ROI)

▪ Identifying “influencers” and measuring influence

▪ Determining the impact of online advocacy and criticism

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Organizing for social media transformation

Product development

Marketing

Customer care

Defensive branding

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How do we get there?

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It’s as global as the World Cup

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Paul the octopus generated more buzz than all players combined

And Paul the octopus

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• The Buzz is around Qatar’s official submission of it’s bid for the 2022 World Cup

• The Buzz is driven by Australia withdrawal of 2018 World Cup Bid

• The Buzz revolves around China desire to bid for 2026 World Cup

• The Buzz spike is generated by the arrival of FIFA inspection team in QatarB

CA

B C

A

D

D

How about the 2022 bid in Qatar?

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• Comment underlining Qatar capability to host the 2022 World Cup

• Comment praising Qatar infrastructure and rapid development

• Comment on the quality of the stadium and interest in the soccer by the Qatari population.

”http://vb.alarabi.qa, July 28, 2010

http://www.z5z5z.com, September 10, 2010

”http://www.kanzalarb.com, September 15, 2010

B

C

A

What is the Arab world saying about the bid?

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There is value in Sales/Marketing, but there is so much more!

▪Feedback

▪Engage

▪Advocacy

▪Brand Strengths

▪Bottlenecks

▪Marketing Mix

▪ Influence

▪Customer Insight

▪New Product Dev

▪Demand Forecasting

▪Packaging

▪New Launch Tracking

▪Threats

▪ Investors

▪Reputation

How can we use social to transform the organization?

How can we use social to extract maximum value for the company?

R&D/Insight Sale/Marketing PR/Comms Service

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“I wish I could find…”

“I LOVE fun food”

“I hate it when my

refrigerator is without…”

“Mornings areIMPOSSIBLE without my…”

“…when I’m eating in

my car.”

Brand Centric “We will be focusing on developing several

concepts out of this work for further testing.”

- NPD Group, KraftIllustrative Verbatim

New Product Development

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Social media analysisSurvey

Attributes tested in survey questionsPercent agreeing strongly

13

18

25

40

68

Fit well

More comfortable

Healthier

Cost effective

Environmentallyfriendly

2

4

8

10

16

24

28

42

Environmentallyfriendly

Cost

Cheaper

Flushable

Home birthing

Home schooling

Diaper rash

Organic

Associated Online AttributesRelative score

Survey indicates 68% of consumers believe "envi-ronmentally friendly" is most important, however unprompted consumer feedback ranks it last

In authentic, online conversations, "organic" and avoiding "diaper rash" are most associated concepts and attributes

Asking vs. Listening

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0.5

1.0

1.5

2.0

2.5

3.0

3.5

BT or British Telecom

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

2009 2010

15 26 10 24 07 21 5 19 02 16 30 13 27 11 25 08 22 06 20 03 17 31 14 28 14 28 11

Trended Sentiment Score

Increasing customer lifetime value by improving service experience

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BT.com Community Forums

UK Consumer and Technical ForumsMobile

Live Chat

Twitter – @BTCareBT.com/help

BT.com Community ForumsYou Tube BTCare Channel

The Consumer Experience

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We can help!

Let us help you harness the power of social media intelligence and drive smarter and more efficient decisions across your organization.

Brad LittleHead of NM Incite, EMEA189 Shaftsbury AvenueLondon, WC2H 8TJUnited Kingdom+44 (0)20 7014 [email protected]: @bradleyjlittle