Crown B2C SOCIAL MEDIA MARKETING ASIA MASTERCLASS
November 2012, KL
Social Media: How to Engage Consumers and Build Brands
• How to innovate in emerging markets by localizing content to meet the needs of their consumers and how this can benefit you.
• The power of Facebook to create Brand SOV and how to engage in interactive content to enhance the number of times the company and its products are mentioned positively on the social web, compared to competitors - commonly known as 'Share of Voice'
• How you can build your fans and what's next
• Using social media marketing to drive consumers onto their social sites. Including how these new fans are then engaged into the brand through interactive campaigns
Social Media: How to Engage Consumers and Build Brands
1. SOCIAL MEDIA: HOW TO
ENGAGE CONSUMERS AND
BUILD BRANDS
Case Study, Concepts, and Debatable
Ideas
Kenny Ong
Takaful IKHLAS Sdn Bhd
1
2. Business Today…
13th April 2009
•Two Domino’s employees
•YouTube
•Apology from Domino’s after
48 hours
•1 million hits
•Twitter: questions on silence
•LinkedIn: suggestions by users
in forum
2
BusinessWeek, May 4, 2009
5. TAKAFUL IKHLAS CORPORATE PROFILE
• Shareholder : MNRB Holdings Berhad (100%)
• Established Date : 18 September 2002
• Operational since : 2 July 2003
• Takaful Model : Al-Wakalah
• Business Portfolio : General and Family Takaful
• Number Products : More than 90
• Number of Participants : More than 1,800,000
• Number of Agents : More than 6,000
• Number of Staff : 490
• Regional Offices : 11
• Paid Up Capital : RM295 million
5
6. IKHLAS Customized Healthcare Solutions
Smart
Partnerships
Medical
Wellness
Advisory
Program
Board
Cost
Flexible
Management
6
7. Menu
1. Business Model and Strategy
2. Social and Consumer Psychology
3. Facebook
4. What’s Next?
Technical Details – I’ll leave it to the
Specialists in the next 2 days
7
9. “…in the past 18 months, we have heard
that profit is more important than revenue,
quality is more important that profit,
people are more important than profit,
customers are more important than our
people, big customers are more important
than small customers, and that growth is
the key to our success. No wonder our
performance is inconsistent"
CEO, Anonymous
9
10. What is the purpose of
Marketing & Branding?
Ultimate Objective of Marketing:
“Get more people, to buy more
things, more frequently, at higher
prices.”
“Retention and Loyalty are useless if
No Conversion is happening.”
Sergio Zyman
10
11. What is the purpose of
Marketing & Branding?
“Retention and Loyalty are useless if
No Conversion is happening.”
“Communication is useless if No
Conversion is happening.”
11
12. What is the Objective?
1.Comm = Relationship (something
like Dating)
2.Comm ≠ Media glitz
3.Comm ≠ ATL/BTL/BwTL/ArTL/FTL
4.Comm ≠ CSR
5.Comm = Get more people, to buy
more, more frequently, at higher
prices
12
17. The McPlaybook*
Make it easy to eat Make it easy to prepare
• 50% drive-thru • High Turnover
• Meals held in one • Tasks simple to learn
hand & repeat
Make it quick Make what customers want
• “Fast Food” • Prowls market for new
• Tests new products products
for Cooking Times • Monitored field tests
*Adapted from: Businessweek , Februrary 5th 2007
17
18. What is the Business Model?
•Google
•Tata Nano USP
Market
Profit Model
Discipline
18
19. Business Model: USP
“The Product is Not the Product”
• What is the customer really buying?
• What is the “Core Buying Purpose”?
19
20. Business Model: USP
Unique Selling Proposition (USP)
=
Targeted Customer
=
Core Buying Purpose/ Customer Value
Proposition/ Job To Be Done (JBTD)
20
22. What is the Business Model?
USP
Market
Profit Model
Discipline
22
23. Market Discipline
• Features,
"They are the most innovative"
Product
Leadership Benefits
"Constantly renewing and creative"
• Limited
"Always on the leading edge"
Range
Customer
Operational Intimacy
Excellence "Exactly what I need"
"A great deal!"
Customized products
Excellent/attractive price
Minimal acquisition cost and
• Solutions
Personalized communications
"They're very responsive"
hassle • Preferential service and
Customization
• Cost
Lowest overall cost of • Breadth &
flexibility
• Convenience
ownership Depth
Recommends what I need
• firm"
"A no-hassles TCO "I'm very loyal to them"
Convenience and speed Helps us to be a success
Reliable product and
service
23
24. Market Discipline
Product "They are the most innovative" •LV
Leadership "Constantly renewing and creative"
"Always on the leading edge"
•Air Asia Operational
•Ramly Customer
Intimacy
Excellence "Exactly what I need"
"A great deal!"
Customized products
Excellent/attractive price
Personalized communications
Minimal acquisition cost and "They're very responsive"
hassle
Preferential service and
Lowest overall cost of flexibility
ownership Recommends what I need
"A no-hassles firm" "I'm very loyal to them"
Convenience and speed Helps us to be a success
Reliable product and
service
24
25. Alignment & Consistency:
Market Disciplines
Product Leadership
(best product)
Operational Excellence Customer Intimacy
(low cost producer) (best total solution)
25
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
26. Alignment & Consistency:
Market Disciplines
Product Leadership
(best product)
Operational Excellence Customer Intimacy
(low cost producer) (best total solution)
26
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
27. Alignment & Consistency:
Market Disciplines
Product Leadership
(best product)
Operational Excellence Customer Intimacy
(low cost producer) (best total solution)
27
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
28. Alignment & Consistency:
Disciplines, Priorities, and KPIs
Operational Product Leadership Customer Intimacy
Excellence
• New, state of the • Management by
• Competitive price art products or Fact
services
• Error free, reliable • Easy to do
• Risk takers business with
• Fast (on demand)
• Meet volatile • Have it your way
• Simple
customer needs (customization)
• Responsive
• Fast concept-to- • Market segments
• Consistent counter of one
information for all
• Never satisfied - • Proactive, flexible
• Transactional obsolete own and
• Relationship and
competitors'
• 'Once and Done' consultative
products
selling
• Learning
• Cross selling
organization 28
30. Alignment & Consistency
Apple powerful Product Leadership
products, premium (best product)
pricing, limited range
Still Doing
well in HP well-balanced
Acer super lean
2009/2011 portfolio, mass
cost structure,
aggressive pricing customization
Operational Excellence Customer Intimacy
(low cost producer) (best total solution)
30
33. What is the purpose of
Marketing & Branding?
Ultimate Objective of Marketing:
“Get more people, to buy more
things, more frequently, at higher
prices.”
“Retention and Loyalty are useless if
No Conversion is happening.”
Sergio Zyman
33
35. Philosophy
Loyalty is misleading…
• Heavy Consumption ≠ Loyalty
• Loyalty ≠ Heavy Consumption
*Today’s focus is on Loyalty, not Consumption.
*To increase consumption, refer Marketing
35
36. What is the Objective?
1.Comm = Relationship (something
like Dating)
2.Comm ≠ Media glitz
3.Comm ≠ ATL/BTL/BwTL/ArTL/FTL
4.Comm ≠ CSR
5.Comm = Get more people, to buy
more, more frequently, at higher
prices
36
www.myCNI.com.my www.OOBEY.com
39. Color Psychology
Cultural Variations; white remind us of something
= marriage (western) = familiar
death (China). Purple = e.g. blue = calm
death (Brazil) Yellow = Children = Bright
sacred (Chinese) = Primary Colors e.g.
sadness (Greece) = toys, clothes and
jealousy (France) children's books
Red , Orange = Young = bold colors;
to eat quickly and older = subtle palettes.
leave
carpeting to influence
patterns of travel
39
40.
41.
42. Market Penetration Overview
• “Crossing the Chasm” Resistant to taking up new
product (prefer ‘safe’ route)
1. Need to attract the 2. The Mass market will 3. If company does not
Early Adopter (willing follow once they see innovate or has weak
to try) group first via early adopters joining retention plans,
neutral and niche customers will leave
products 42
43. Target: Decision Chain
Again: different type,
Influencer different strategy
Buyer
User
43
45. What does the Customer
want?
Product/Service Attributes Relationship Image
45
* Treacy & Wiersema, The Discipline of Market Leaders, 1995
46. What does the Customer
want?
Operational Excellence: Quality and selection in
key categories with unbeatable prices
Product/Service Attributes Relationship Image
Price Time √ Smart
Selection √ Shopper
Quality
46
* Treacy & Wiersema, The Discipline of Market Leaders, 1995
47. What does the Customer
want?
Product Leadership: Unique products and services
that push the standards
Product/Service Attributes Relationship Image
√ Time √ Best
Function √ Product
Brand
47
* Treacy & Wiersema, The Discipline of Market Leaders, 1995
48. What does the Customer
want?
Customer Intimacy: Personal service tailored to
produce results for customer and build long-term
relationships
Product/Service Attributes Relationship Image
√ √ Service Trusted
√ Brand
√ Relations
48
* Treacy & Wiersema, The Discipline of Market Leaders, 1995
49. Each Discipline Requires
Different Priorities & Resources
Organization, jobs,
skills
Culture, values,
norms Operational Product Customer
Excellence Leadership Intimacy
Information and
systems
Management
systems
49
50. Each Discipline Requires
Different Priorities & Resources
Operational Excellence
Organization, •Central authority, low level of empowerment
jobs, skills •High skills at the core of the organization
Culture, values, •Disciplined Teamwork
norms •Process, product- driven
•Conformance, 'one size fits all' mindset
Information and •Integrated, low cost transaction systems
systems •The system is the process
Management •Command and control
systems •Quality management
50
51. Each Discipline Requires
Different Priorities & Resources
Product Leadership
Organization, jobs, •Ad hoc, organic and cellular
skills •High skills abound in loose-knit structures
Culture, values, •Concept, future-driven
norms •Experimentation and 'out of the box' mindset
Information and •Person-to-person communications systems
systems •Technologies enabling cooperation
Management •Rewarding individuals' innovative capacity
systems •Risk and exposure management
•Product Life Cycle profitability
51
52. Each Discipline Requires
Different Priorities & Resources
Customer Intimacy
Organization, jobs, •Empowerment close to point of customer contact
skills •High skills in the field and front-line
Culture, values, •Customer-driven
norms •Variation and 'have it your way' mindset
Information and •Strong customer databases, linking internal and
systems external information
•Strong analytical tools
Management •Customer equity measures like life time value
systems •Satisfaction and share management
•Focus on ‘Share of Wallet’
52
54. Loyalty 2: Swing
Loyalty = Best alternative at the current
moment until I find another alternative
Solution Strategy: Base Retention
54
55. Loyalty 2: Swing
Swing Customers are “loyal” because:
• Individual Relationships
• Convenience (at that point in time)
• Tied-up
• Product Uniqueness
• Promotions
• No better alternative
• Downlines
• No known alternative
• Psychologically lazy
55
56. Sample Strategies for ‘Swing’
• Increase switching • Newsletters
costs • Personalized alerts
• Mega packages • Survey
• Community • Suggestion Box
• Reward programs • Switching Techniques
(Points) (e.g. Balance
• Membership Transfer of credit
Subscription cards)
• Email communication
56
58. Law of Human Nature # 1
The most powerful
emotion – “FEAR”
•The prospect of a loss has a greater impact on
decision making than does the prospect of an
equivalent gain – “Prospect Theory”
58
59. Law of Human Nature # 2
The greatest desire of
humans – the
“Desire to be Important"
•The interesting topic in the world – themselves
•criticism = “lose face” = defense
59
60. Law of Human Nature # 3
There is no such thing
as No Motivation
•Everyone is motivated.
•It is a matter of Positive or Negative Motivation
60
61. Law of Human Nature # 4
ALL our decisions are
emotional first, logical
second
61
62. Law of Human Nature # 4 (a)
We use ‘logic’ to defend
our emotional decisions
62
63. Law of Human Nature # 5
Attitudes drive
Behavior
•Attitudes model attitudes
•It is easier to change the attitude than behavior
•Change the attitude, change the behavior
63
64. Law of Human Nature # 6
Humans have only two
types of Thinking
•Careful or Lazy – “Dual Process Theory”
•Most people,most of the time, are in Lazy mode
•Lazy Mode Influence: Cues
•Careful Mode changes are more persistent
•Careful Mode Influence: Relevance & Comprehension
64
65. Influence Weapons
1. Comparison. When Others Are Doing It, You
Should, Too.
1. We view a behavior as correct in a given situation to the
degree we see others performing it
2. The greater number of people who find any idea correct,
the more a given individual will perceive the idea to be
correct.
3. We will use the action of others to decide proper
behavior for ourselves, especially when we view those
others to be similar to ourselves.
4. Examples: restaurants, looking in air, tv comedy,
donation plate
65
66. Influence Weapons
2. Liking. When You Like the Source, Do What Is
Requested.
1. We prefer to say yes to the requests of people we know
and like.
2. We automatically assign to good-looking individuals
favorable traits as talent, kindness, honesty, and
intelligence.
3. We like people who are similar to us. We tend to believe
praise and to like those who provide it, often when it is
probably untrue.
4. An association with either bad things or good things will
influence how people feel about us.
66
67. Influence Weapons
3. Authority. When the Source Is An Authority, You
Can Believe It.
1. Humans by nature have a sense of duty to authority.
1. We are often vulnerable even to the symbols of authority
as opposed to real authority e.g. titles, clothes, jewelry,
cars.
67
68. Influence Weapons
4. Reciprocity. When Someone Gives You
Something, You Should Give Something Back.
1. We should try to repay, in kind, what another person
has provided for us.
2. For those who owe a favor, it makes no difference
whether they like the person or not.
3. This rule becomes less powerful as time becomes
longer.
4. A person can trigger this effect even if it was an
uninvited favor.
68
69. Influence Weapons
4. Reciprocity. When Someone Gives You
Something, You Should Give Something Back.
1. There is a strong cultural pressure to return a gift,
even an unwanted one, but there is no such pressure
to purchase an unwanted commercial product.
2. A small initial favor can produce a sense of obligation
to agree to a substantially larger return favor –
Unequal Exchange
69
70. Influence Weapons
5. Commitment/Consistency. When You Take A
Stand, You Should Be Consistent.
– Salesperson: "Excuse me, but do you think that a
good education is important for your kids?"
– You: "Yes, of course."
– S: "And do you think that kids who do their homework
will get better grades."
– You: "Yes, I'm sure of that."
– S: "And reference books would help kids do better on
their homework, don't you think?"
– You: "I'd have to say yes to that."
– S: "Well, I sell reference books. May I come in and
help improve your child's educations?"
– You: "Ahhh, wait a minute . . ."
70
71. Influence Weapons
5. Commitment/Consistency. When You Take A
Stand, You Should Be Consistent.
1. Once we make a choice or take a stand
(commitment), we will encounter personal and
interpersonal pressures to behave consistently with
that commitment (consistency).
2. The more effort that goes into a commitment, the
greater is its ability to influence the attitudes of the
person who made it.
3. The commitments most effective in changing a
person’s self-image and future behavior are those
that are active, public, and effortful.
71
72. Influence Weapons
5. Commitment/Consistency. When You Take A
Stand, You Should Be Consistent.
1. A person will create his/her own new reasons to
support and justify their choice even when the
original reasons are taken away.
2. Involvement and Buy-in
3. E.g. Advertisement (Promotion) – Out of Stock
72
73. Influence Weapons
6. Scarcity. When It Is Rare, It Is Good
1. Opportunities seem more valuable to us when they
are less available.
2. People seem to be more motivated by the thought of
losing something than by the thought of gaining
something of equal value.
3. The more we are denied the freedom to have
something, we more we want it – Psychological
Reactance Theory by Dr. Jack Brehm.
4. We will find a piece of information more persuasive if
we think we can’t get it elsewhere – Power of Secrets
73
74. Influence Weapons
6. Scarcity. When It Is Rare, It Is Good
1. Things that can be scare: time, money, opportunity,
physical
7. Self perception. We learn about ourselves by
observing our own behavior.
1. If we observe ourselves doing some thing then we
reason that we must like the thing.
74
77. The Unfortunate World of Social Media
#1: By the time you master the
technology, it’s already irrelevant
77
78. The Unfortunate World of Social Media
#2: By the time your Social Media
strategy is approved, it’s already
irrelevant
78
79.
80. The Right Tools for the Job
Personal
(exp)
Quality/Intensity of
Communication
Personal
(info)
Mass Traditional, In-
home, Out-Of-Home
Impersonal Mass Unconventional
(info)
Mass Online
Individual Mass
Reach of Communication
80
81. The Right Tools for the Job
Personal
(exp)
Quality/Intensity of
Communication
Mass Targeted
Conventional
Personal
Mass Targeted Online
(info)
E.g. Annual Reports,
Analyst Briefings, IR
Roadshows, IR Website
Impersonal
(info)
Individual Mass
Reach of Communication
81
82. The Right Tools for the Job
Personal Contests
(exp) One-on-One
Quality/Intensity of
Communication
Personal Individual Targeted
Conventional
(info)
Individual Targeted
Online
Impersonal
(info)
Individual Mass
Reach of Communication
82
83. The Right Tools for the Job
Personal
(exp)
Quality/Intensity of
Communication
Personal
(info)
Impersonal
(info)
Individual Mass
Reach of Communication
83
84. Things to note about Social Media
• Social Media is not a Sales Weapon
• Social Media is not a Media Weapon
• Social Media is not an evolution of Direct
Marketing
• There is no Silver Bullet
84
99. Facebook: Simple Starts
• Keep Your Updates Short
– Blame it on Twitter
– Sweet Spot: 100 characters
• Let a photo do the talking
– Photo Album - 180%
– Photo - 120% More
engagement
– Video - 100%
99
101. • Don’t Use URL Shorteners (e.g. bit.ly)
– URLs are not counted in the 100-140 character rule
– A shortened URL does not indicate what type of
website you’re taking them to
– use a brand-specific URL shortener e.g. Victoria
Secret: http://i.victoria.com/wSl
101
102. Simple Starts
• Time your Posts
– optimal time to post is between 1:00 pm and 3:00 pm
– Links posted between 1 and 4 pm get the highest
click-through rates
– Links posted before 8:00 am and after 8:00 pm are
less likely to get shared.
– Engagement rates are 18% higher on Thursday and
Friday
– Engagement rates fall 3.5% below average for posts
Monday through Wednesday
– Saturday and Sunday posts get the most likes
Stats from bit.ly and Hubspot
102
103. Simple Starts
• Use the Right Words for Higher Engagement
– “post,” “comment,” “take,” “submit,” “like” or “tell us”
are the most effective
– “winner,” “win,” “winning” and “events” will make fans
excited
– contest,” “promotion,” “sweepstakes” and “coupon”
will turn them off.
103
104. Simple Starts
• Ask Questions
– “Where,” “when” and “should” –> highest engagement
– “would” –> most likes
– “why” -> lowest engagement, lowest likes
– Yes/no: most responses; just seconds to answer.
– Feedback
– Emotional/provocative
– Fun and fast: "Quick: ‘Batman' or 'Avengers'?"
104
105. Simple Starts
• Video Teasers
– Short -> one to three minutes at most
– Ask a question.
– Offer a quick tip
– Upcoming event
– Share a funny story
105
114. Edge Rank
• "Edgerank" algorithm - decides what
content appears in News Feeds
• On average, only 16% of company brand
page posts are actually seen by its fans
114
115. Edge Rank Algorithm: How it Works
• The closeness of the user to the brand -- or
person,
• The more your audience interacts with you, the higher
their affinity score for you will be.
• The weight of the content.
• Ranks Comments and Sharing higher than "likes"
because they require more action on the user's part.
• The time decay factor.
• Measures the age of your content. If it's older than
other content, it doesn't get as high a score.
115
116. Edge Rank Algorithm: How To
1. The more engagement the better:
– Instruction or call-to-action
– ask fans to share or "like" the content.
– pose questions to spur comments
2. 'Heavy-lifting' interactions help a lot:
– Drive fans to upload pictures, videos and engage in
lengthy discussions
– Video and photo contests can spark more interaction,
as can simple calls for content.
116
117. Edge Rank Algorithm: How To
3. Consistency is imperative:
– Post content that drives the audience to react on a
daily basis -- maybe even several times each day.
–
4. Content is king:
– Write and publish great content.
– Content so good fans have to share it
117
133. Case Study: Placecast & Geo-Fencing
• Geo-fencing —
the act of
drawing an
invisible
boundary
around a given
location and
serving an opt-
in SMS
message when
users enter
boundary
133
134. Case Study: O2, Starbucks, L’Oreal
• Six-month trial
• Placecast’s geo-
fencing
technology
• 1,500 areas
offering deals.
• Opt-in
• Gender, age and
general interests.
• Receive Special
deals
134
135. Case Study: McDonald’s, Facebook
• Starting June
2010
• Check in while
featuring one of
the products,
such as a Big
Mac, in their
activity feed
• Geo-couponing
135
136. Case Study: Google, iPhone, Android
• Location-aware mobile
display ads
• Incorporate maps for
click-to-call
• Ad-unit: expands into a
full ad that includes a
map overlay with the
business pinned on a
Google Map
• Calls-to-action: “get
directions” and “click-to-
call.”
136
137. Gamification
SPARX
Developer: University of Auckland
http://www.springwise.com/health_wellbeing/virtual-roleplaying-game-helps-teenagers-deal-depression/
137
145. Which Company?
American Customer Satisfaction Index (ACSI)
• 64 out of100-point scale: lower than IRS (Tax)
• 2nd last among 30 companies surveyed
• Lowest 5% among 223 companies surveyed
• Bottom 5% of all measured private sector
companies
• 500 million customers
2010 American Customer Satisfaction Index
(ACSI) E-Business Report
145
146. Which Company?
American Customer Satisfaction Index (ACSI)
• 64 out of100-point scale: lower than IRS (Tax)
• 2nd last among 30 companies surveyed
• Lowest 5% among 223 companies surveyed
• Bottom 5% of all measured private sector
companies
• 500 million customers
2010 American Customer Satisfaction Index
(ACSI) E-Business Report
146
148. What is the purpose of
Marketing & Branding?
Ultimate Objective of Marketing:
“Get more people, to buy more
things, more frequently, at higher
prices.”
Sergio Zyman
148