What To To Look For And Act On In 2010

what to look for and act on in 2010

Marketing is now a conversation: Brands must know how to adapt their engagement models and tone. 1

2007 – 2012

Macro Trends

2 Consumers’ attention is more distributed across ever changing digital channels and sources: Brands must learn new ways to stand out.

3 Content shelf-life is shrinking: Brands most know how to continuously stay fresh.

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2009 – 2010

Micro Trends

1 Social Media Grows up

2 Brand Humanization: Corporate and Personal Brand Confluence

3 Blurring Line Between Marketing & Servicing

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social media

grows up #"

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Spend

SOCIAL MEDIA GROWS UP

Some Facts

AUDIENCE Between 2008 and 2009 LinkedIn grew 63% YOY (1 new member every second). For the same period, Twitter grew 1,679%.

SPEND In 2006 the total marketing spend on social media was $350 million. The forecast spend for 2011 is more than $2.5 billion.

SALES Dell Outlet booked more than $3mm in revenue attributable to it’s twitter posts.

TRUST 78% of people trust what their social media network says about a product or service vs. 55% for Television.

But where is this growth coming from….?

0 10 20 30 40 50 60

15 - 24 25 - 34 35 - 54 55 - 64 65 - 74 75+ Age (years)

Proportion of adults who access social networking sites on the internet at home.

Q1 2008 Q3 2008 Q1 2009

21% growth across the year

18% growth across the year


Growth Growth is coming from Demographic Diversification

7 * source ofcom


Growth (Example) Demographic Diversification comes in forms obvious to many of us every day:

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GRANDMA (76 Years)

Angela (34 Years)

Madison (7 Years)

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Broad Distribution

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Growth is accelerating because content is being distributed (ie shared) more effectively then ever before

Eric Tsai, “The Evolution of Media Content Distribution: Circulation 1.0 to 2.0” DesignDamage.com, posted July 2nd, 2009,


Broad Distribution (Examples)

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Many have successfully cracked the code on distributed content models…

BRAND / PROPERTY

NEW YORK TIMES BARACK OBAMA IBM

SMARTER PLANET ZAPPOS WESABE

SOCIAL MEDIA PLATFORM

Kindle Blog Subscriptions Facebook Connect

Blog Platform Twitter Dashboard

iPhone Application


Brands

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51%

34%

8% 7% Should have social media presence,

interact with consumers as needed / by request

Should have social media presence, interact with consumers regularly

Can have a presence in social media, should not interact with consumers

Shoud not have a social media presence

85% of consumers look for Brands to interact with them in social media Consumer Expectations of Brands in Social Media Spaces

* data from emarketer.com

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Implications for Marketing in 2010

5 BRAND PERCEPTION: A larger portion of a Brand’s perception scores will be influenced by its Social Media presence, or lack thereof.

4 RELATIONSHIPS WITH INFLUENCERS: Relationships with influentials will become more critical to success.

3 CHANGES IN PLATFORM AUDIENCE: Tactics and Tone will change to match a more mature audience.

2 MARKETING SPEND: The distribution of digital marketing investments will continue to shift.

1 SOCIAL MEDIA INFLUENCE: A greater percentage of High Value Customers, and their spend, will be influenced through Social Media Marketing.

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Brand Humanization: Corporate

and Personal Brand Confluence

BRAND HUMANIZATION: CORPORATE AND PERSONAL BRAND CONFLUENCE

Corporate / Personal Social Media Gap

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Current brand voices may not be fully in synch with Web 2.0 environments such as Social Media. This presents a challenge for corporations.


Why is this happening – The Connected Web

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“People would rather have a conversation with a person than a brand”

– Scott Monty, Ford Motor Company

*photo from Scott Monty’s flickr feed

Sites like Facebook & Twitter have changed the dynamic around customer access to in-person interaction, putting people in front of brands.


The Connected Web – Proof Points

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“People will determine whether Joe (an employee) is trustworthy by what he says, what he does, […] how he talks with others, who he links to, what he links to and who he's friends with and follows.”

– John Robinson, Editor and Chief of the Greensboro Record.

Customers will no longer accept brands at face value.


Personal Brand Costs/ Benefits (Risks and Fears)

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Larger brands are now creating personal sub-brands under a corporate umbrella.

However, there are both opportunities and risks associated with “Employees as Brands”

What if the employee goes rogue? Are personal brands governable? 2

Personal brands are a cost to the company: Why let employees build their own brand on the reputation and at the cost of the company? 1

Popular employees are likely to get wooed by a competitor. After they leave a gap is left that the brand perhaps can’t fill. 3


Personal Brand Costs/ Benefits (Opportunities)

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All Things to All People: It can be difficult (and costly) for one brand to achieve multi-segment relevance. Personal brands can be a good way to appeal to a new audience without alienating the core.

2

Authenticity Cost: The investment hurdle to win customer trust is naturally lower for individuals than for corporations. 1

Attracting the Best of Gen Y Talent: The brightest MBAs, etc. will want to work somewhere they can spread their wings and grow. 3

Less More


Corporate Social Media Brand Approaches

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Marketing Sophistication

@jetblue @wholefoods @don_draper @BestBuyCMO

CORPORATE AND PERSONAL BRAND CONFLUENCE

Success Stories from the Right Side of the Scale

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Ford SCOTT MONTY

Comcast FRANK ELIASON

Bank of America

DAVID KNAPP

Frank Eliason puts a personal face to servicing customers through the Comcast Cares twitter feed.

Scott Monty and his team put a personal spin on providing advice for car care.

David Knapp at Bank of America tweets to assist customers. A large contrast from the traditional telephone based servicing of the past.

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CORPORATE AND PERSONAL BRAND CONFLUENCE


3 ENGAGEMENT GUIDELINES: Regardless of model, in order to create marketing and brand humanization consistency, tone of voice and guidelines for 1:1 digital interactions will need to be addressed.

2 INTENTIONAL CHOICE OF SOCIAL MEDIA BRAND MODEL: Corporations will need to make a conscious choice on which model will work best for them from a brand and risk perspective.

1 PROLIFERATION OF PERSONAL BRANDS: With consumer expectations of “personal” interactions increasing, all corporations will need to infuse “authenticity” into their marketing strategies.

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blurring line between

marketing and servicing

BLURRING LINE BETWEEN MARKETING AND SERVICING

Learnings from Servicing as Marketing in the “Real” World: Word of Mouth Advocacy

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CUSTOMER ATTENTION: As brands struggle to "engage" consumers, service is a convenient and potentially rewarding starting point. 1

3 EMPLOYEE PASSION: When employees use, and are excited about, the product they sell, credibility goes up – and credibility drives persuasion (Think waiters).

2 PROBLEMS AS OPPORTUNITIES: Capitalize on the fact that servicing is an emotional experience by openly and enthusiastically solving problems and showing empathy.


Implications for Servicing/Marketing on the Web

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Spend

BROAD DISTRIBUTION IMPLICATIONS

The social web amplifies the impact of service on word of mouth.

BRAND PERSONALIZATION

ENGAGEMENT IMPLICATIONS

The dynamics of Social Media create a heightened sensitivity, among an already skeptical audience, to “traditional” marketing tactics.

PLATFORM IMPLICATIONS

Increasing need for channel specific tactics such as developing Facebook and Twitter servicing infrastructure and programs.

In today’s Social Media rich environment Servicing = Loyalty

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3 GROWING NEED FOR MEASURING SUCCESS: As scale of Servicing as Marketing increases corporations will insist on measuring channel success metrics more effectively.

2 MARKETING EFFORTS POSITIONED AS SERVICING: Brands will have to expand the scope of engagement efforts beyond current customer servicing platforms to create new “servicing positioned” marketing platforms that leverage the Social Web.

1 THE CONTINUED SHIFT OF SERVICING RESOURCES: As “push” marketing techniques become less and less efficient, brands will invest growing resources in “pull” techniques, such as Social Media servicing, to achieve engagement goals.

Metrics

Acquisition: (eg. Fans on Facebook, Followers on Twitter). 1

2 Engagement: (eg. Video Views, Monthly Uniques).

3 Monetization: (eg. Dollars earned through particular social media channels).

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Marc Schiller, CEO & Founder [email protected]

THANK YOU

42 Bond Street, 3rd Fl. New York, NY 10012 212.354.2650

What To To Look For And Act On In 2010

Business

Transcript of What To To Look For And Act On In 2010