ISM UNIVERSITY OF MANAGEMENT AND ECONOMICS MANAGEMENT AND BUSINESS ADMINISTRATION PROGRAMME BACHELOR STUDIES ASG Working Group Giedrius Puzas Paulius Kudakas Edita Lelyte Mantas Riauba What’s Your Social Media Strategy? Case study VILNIUS, 2011 TABLE OF CONTENT Ivadas3 Predictive practitioner approach4 The “social media champion. ” 6 The “social media transformer”9 Creative Practitioner Approach11 Concept of Social Media 13 The Source15 Social media is a phrase being tossed around a lot these days, but it can sometimes be difficult to answer the question of what is social media. If MySpace is a social media site, and Mag. olia is a social media site, and Wikipedia is a social media site, then just what is social media? The best way to define social media is to break it down. Media is an instrument on communication, like a newspaper or a radio, so social media would be a social instrument of communication. In Web 2. 0 terms, this would be a website that doesn’t just give you information, but interacts with you while giving you that information. This interaction can be as simple as asking for your comments or letting you vote on an article, or it can be as complex as Flixster recommending movies to you based on the ratings of other people ith similar interests. Think of regular media as a one-way street where you can read a newspaper or listen to a report on television, but you have very limited ability to give your thoughts on the matter. Social media, on the other hand, is a two-way street that gives you the ability to communicate too. It is easy to confuse social media with social news because we often refer to members of the news as “the media. ” Adding to the confusion is the fact that a social news site is also a social media site because it falls into that broader category.
But social news is not the same thing as social media anymore than a banana is the same thing as fruit. A banana is a type of fruit, but fruit can also be grapes, strawberries, or lemons. And while social news is social media, social networking and wikis are also social media. How these things work: * Social Book marking. (Del. icio. us, Blinklist, Simpy) Interact by tagging websites and searching through websites bookmarked by other people. * Social News. (Digg, Propeller, Reddit) Interact by voting for articles and commenting on them. * Social Networking. (Facebook, Hi5, Last.
FM) Interact by adding friends, commenting on profiles, joining groups and having discussions. * Social Photo and Video Sharing. (YouTube, Flickr) Interact by sharing photos or videos and commenting on user submissions. * Wikis. (Wikipedia, Wikia) Interact by adding articles and editing existing articles. Predictive practitioner approach Years ago it was common practice that customer service was held through the company’s website by writing the email to the adequate manager of support department. Looking from nowadays perspective it is not that convenient. The reason of inconvenience the respond time.
Usually it takes more than a week or no answer at all. And here comes social network which strongly effected companies support politics. Reason? Control was no longer in the hands on these companies since people who were unhappy about the product of service started posting complaints about the companies in public, this includes famous social network websites like: Facebook, Tweeter, LinkedIn, etc. Stories and complaints were the most powerful tool to reinforce changes. It is known that word of mouth is a strong phenomenon which strongly effect company’s reputation.
This social network turn made companies change their customer service strategy and also enter social network websites and track not only “likes”, fans, followers, etc. Social media (form of electronic communication through which users create online communities to share information, ideas, personal messages, and other content) has changed customer service form being just support function to fulfilling a variety of different functions including enhacing of marketing strategy of the company. Customer now is spoiled and want to be listened and responded quickly.
Now companies consider that they need to build strong relationship with customers. Social media is the cheepest way to improve your sales. Now company can track how customer service efforts effected sales and whereupon upgrade it by changing tactics. Although many businesses say they lack the time and resources to effectively use social media, and it takes a lot of time and effort to keep up with direct messages, comments, reviews, and mentions. But it is worth accounting the cost, rather hire person for social media interactions, or use other kind of customer service and marketing strategy.
To sum up, the “predictive practitioner” uses social media for one specific area, like customer service or collaboration between consumers and companies. For these businesses, social media is a tool to deliver measurable business results. “Predictive practitioner” practice Not all companies are able to embrace social media, reasons could be various: from lack of resources to lack of creativity or desire. One of the companies who successfully manage social media is Boingo – a global market leader in Wi-Fi. Why worth talking about this company? Because it was nominated as The Best Social Media Customer Service.
It creates value through social media. Boingo understands the importance of social media and community building through customer service. The Boingo Wi-Fi service connects with customers in the most popular social networks, like Facebook, Twitter, Flickr and LinkedIn. Boingo prefers saying “customer care” rather than “customer service”, which creates closer relationship with customer despite that company is technical. Their attitude is that focusing only on serving customer is „old school“, so the goal is to cherish meaningful and friendly collaboration with customers.
Also, one of the company philosophies is that customer service is all about being available for help anytime and anywhere. They are fast to find people reporting technical issues and often offer to connect for private offline conversation about the problem by email. Nice words about the product, company or service are always “retweeted” with thanks in non – corporate language. Another company who perfectly exploit social network – top 1 consumer brand in social media – Starbucks. There are some elements of companies’ social media strategy and I took a deeper look at them: Starbucks is a company which owns 17. 00 coffeehouses (retail stores) in 50 countries around the world. Starbucks on Twitter. Starbucks engages with customers on twitter, answering questions, retweets, expects opinion about the brand and creates an open communication channel to speak public. Through this social network they handle direct and indirect customer’s issues and complaints. Starbucks on Facebook. Starbucks uploads content to their Facebook page such as: Videos, blog posts, photos. The company also invites people to events. It is almost the same as the Twitter.
Purpose of both – to reach al users who prefer one or another site. Starbucks on YouTube. They upload videos of commercials and advetisements as well as informational videos explaning the origins and significance of the different coffee blends and some of their charity work videos. They also upload videos showing their history thus enabling people to relate more to the brand. They also anables visitors to share and put they videos where they want wihout no fear of placement they do not want to be associated with, and expect positive outcomes. My Starbucks Idea.
It is Starbucks’ own social network where customers are free to share the ideas how to improve company. Customers share they opinions, suggestions, they also can vote for ideas they like, comment. This social media strategy helps Starbucks upgrade products and services, know the expectations of the costumers. From customer perspective – makes people feel comfortable about the company, knowledge that they care, and feeling the part of fast growing, successful company. Starbucks Blog “Ideas in Action”. This blog is a complement of My Starbucks Idea site.
How it works? Ideas are already presented, so the feedback is required not only from other customers but the company also. As a result, Starbucks’ employees in the blog talks about selected ideas and keep in touch with customers about the implementation. Goal of the blog – increase customers’ sense of loyalty to the brand. In conclusion, the examples show how important is social media strategy and what outcomes bring. In nowadays it is extremely important to communicate with customer, provide adequate help and build trust. The “social media champion. ”
The last word „champion“ basically tells it all, it‘s a large scale campaign forwarded toward tangible results. Its more like a marathon, than a sprint, these kind of campaigns involves relatively large budget(comparing to usual marketing campaigns low), amounts of time and collaboration inside and mostly outside the company. These kind of campaigns usually are used towards new product, to promote it‘s awareness among customers and possible customers and show benefits and care. That’s a great strategy for company to increase the results rapidly within rational or lower budget than usual.
These campaigns work so effectively and is liked by socially active people because its mostly done by people outside the company, so the have no actual influence on them. I also would like to mention that the term „social media champion“ is often used to describe people inside or outside the company that is active in social networks and is well known in different network and have a large influence and attention, lets not confuse the „social media champion“ – as one person, or group of person with the social media strategy called „social media champion“.
The following examples with give more information what it‘s all about: 2009 Fiesta Movement The Ford Fiesta Movement involved selecting 100 socially vibrant individuals who were provided with the European version of the Ford Fiesta 18 months prior to it being manufactured and released in the USA. These socially media aware fanatics were encouraged to share their experience with the Ford Fiesta over the 6 months on their Blogs, Twitter, Facebook, Flickr and YouTube channels.
Ford didn’t only gave the agents the cars to do with them whatever they wanted Ford also gave them some themes and “missions” though. The usual marketing campaign for a new vehicle would cost tens of millions of dollars, but let‘s look what ford did with 5 million dollar campaign: * 11 million Social Networking impressions. * 5 million engagements on social networks (people sharing and receiving). * More than 5 million YouTube views (11,000 videos posted). * More than 3 million Twitter impressions (15,000 tweets.. not including retweets). * More than 500,000 Flick views (13,000 photos). 50,000 hand raisers who have seen the product in person or on a video who said that they want to know more about it when it comes out and 97% of those don’t currently drive a Ford vehicle. * Brand awareness rate 38%. Scott Monty is the Head of Social Media at Ford and he managed to get astonishing results with this campaign. Ability to find the right target audience for its Fiesta and market to them in an intriguing manner was the main success factor. Also later on few other vehicle companies launched more or less similar campaigns: Volkswagen Public Polo and Mini gateway challenge. Will It Blend?
Blendtec company produces different blenders, mixers and mills. You would say its another boring industrial company, but the actual interesting thing is their social media company on YouTube: creating videos that attempts to blend various unusual items in order to show off the power of his blender. You can suggest things for Dickson to blend. He listens. They engage with followers on Twitter, Facebook and their blog. Their campaign has been going for five years and has generated almost 200 million views on YouTube and have almost half a million subscribers and it doesn’t look like it‘s going to slow down any time soon.
Its a completely different approach from the Ford‘s campaign, since there is only a one person, the Blendtec founder Tom Dickson, although his experiments generate large audience attention. Results: * Almost 200 million views on YouTube. * Almost half a million subscribers. * 2007 Viral Video campaign of the year. * Bronze level Clio Award for Viral Video in 2008. * 2007 YouTube award for Best Series. * Sales are up more than 700% since the campaign began.
With this example we can see that a little bit of imagination and well prepared idea broadcasted through video social network can give a significant amount of attention towards company and its products. Intel Visual Life Intel is the leading technologies brand in microprocessors and chips industry. The first idea you would think is what kind of social media campaign can this company launch? It‘s basically business to business company that’s sells their chips to computers, tablets, phones producers. Back in January of 2011 Intel launched a video series that featured bloggers talking about technology and how it has affected their life and work.
Bloggers often turned around and shared their stories across the social graph, giving this campaign a boost. This is significant though, because Intel is one of the few technology brands that understand the importance of branded content, lifestyle, and breathing the brand across digital channels. “The people you know, the places you visit, the things that inspire you… together, these represent your unique Visual Life, and we want to celebrate it! People from around the world have uploaded photos and videos giving us a peek inside their visual lives. From Intel’s Website It‘s hard to define actual results of the campaign because of the type of company, but we can see the actual benefits of it: * Almost 1 million views on the first video of series. * Intel‘s YouTube channel views increased by 200%. * Increased brand awareness. * Positive attitude towards company. Old Spice YouTube Campaign The so called Old Spice Guy, the actor Isaiah Mustafa, firstly showed on few TV ads about Old Spice products, but what was meant to be TV advertisement campaign, changed towards social media campaign or more accurately YouTube campaign.
Old Spice Guy Isaiah Mustafa, has been tweeting answers and videos towards the followers of his tweeter channel, actually communicating with his fans. It’s estimated that the campaign cost a very modest $250,000 to run, that just sound ridiculously low. There are just so many reasons why the Old Spice YouTube campaign was the best of all time: * Old Spice body wash sales are up 27%; in the last three months up 55%; and in the last month up 107%. * 180+ videos made. * 5. 9 million views (More people watched its videos in 24 hours than those who watched Obama’s presidential victory speech. * Total web views for all Old Spice brand videos have reached 110 million. * 22,500 comments. The Old Spice Guy is undoubtedly one of the most beloved commercial characters in recent memory, well prepared campaign, rightly chosen people leaded the way towards one of the most successful social media campaigns ever. The “social media champion” strategy strengths and threats: * Cheap compared to usual marketing strategies. * Fans and Targeted audience participate in. * People tend to believe more to other usual or socially well-known people than companies. * Global, worldwide campaigns made easier. Actual dialog and connection with customers. * Bad reputation because of bad product. * Complete honesty required. * Misleading information is hard to remove. * No control over posts, comments, videos. * Higher threat of cheating, intrusion and etc. The “social media transformer” The social media transformer approach is a large-scale interactions that involve both internal and external stakeholders, including management, agencies and customers. Company using this approach is prepared to embrace all social media channels and ensure that it permeates across multiple departments and areas throughout the organisation.
The goal of this approach is to improve the way to do business. With all else being equal, the social media transformer strategy can have the largest impact on an enterprise, affecting everything from R;D and operations to channel partners and customers (Harvard Buisiness Review [HBR], 2011). In most cases, social media transformers are established social businesses, which able to create large scale social media strategies that encompass a variety of internal and external groups. Usually companies don’t start from being social media transformers – they start as predictive practitioners and evolve over time to a social media transformers.
Social media consultancy organization Intermediatefuture (www. immediatefuture. co. uk) describes what company have to achieve, in order to become a social media transformer: * Social media activity cuts across multiple functions; * There is a central group that use social media to inform business strategy; * Social media technologies are ‘tightly integrated’; * Social media involves internal and external stakeholders. Before using social media, it is important to have clear goals and objectives, and ensure that it aligns with the overall business and corporate strategy.
It is critical to implement strategy effectively, that allows not only ensure that objectives are met, but also lets to avoid potentially disruptive problems. While having the largest impact on an enterprise, social media transformer strategy requires major, companywide changes to things such as incentive systems, business processes, resource management, and leadership styles. The social media transformers often have broader social business objectives and view social technologies as a key enabler of – but not the final answer to – those objectives (HBR, 2011).
Cisco IT: Integrated Workforce Experience Cisco IT is an example of how social media technologies can be uses to transform IT culture and enable centralized knowledge and information sharing. In 2010, Cisco launched Integrated Workforce Experience (IWE), a social business platform designed to facilitate internal and external collaboration and decentralize decision making (HBR, 2011). Cisco IT is a service-oriented organization that has a vision of unifying business and technology by using networked IT.
For this vision to come true, Cisco managed to create platform where Cisco users can easily connect with people, information, and business processes that are needed to work more efficiently. According to Cisco, users need an environment that enables them to collaborate easily and allows the freedom to share knowledge and resources, lets them find, organize, and share information efficiently, and provides the ability for users to locate and interact with subject matter experts across the company quickly. Furthermore, this environment must be supported by the appropriate technology, processes, and culture.
So Cisco developed and nurture and open, borderless, transparent community that works cross functionally and geographically to drive productivity. For Cisco, it was a challenge to adopt IWE. Cisco had to overcome several technical, procedural and cultural challenges. To solve this problem Cisco created a training system, by using the Kotters change management methodology, striving to maintain interest without overload. In its trainings Cisco extensively using video. It conducts most of its training and meeting virtually, through video streamed to desktops and available via video-on-demand.
Now IWE functions like a facebook: there is a real time news feed that provides updates on employee’s status, activities, information about relevant communities, business projects, and customer and partner interactions. According to Cisco, the value generated by driving knowledge sharing in the Cisco IT organization is realized as: * Impact to the business. Positive impact on Cisco or customer revenue, cost, risk posture, or market share through IT intelligence sharing. * Influence. Increased relevance with Cisco partners and customers through openness and transparency (what net new relationships were formed as a result of new knowledge? . * Innovation. Increased innovation created for Cisco partners, customers, and Cisco itself through the sharing of knowledge and experience. CREATIVE PRACTITIONER APPROACH According to the article, it seems that marketers should see their goal in becoming “social media transformer”. The second step in this possible goal is “creative experimenter”, although it is not surely true. All organizations and industries are different and not all of them react to social media the same way, so there are some who might start as “creative experimenter” and move on to “predictive practitioner” and so forth.
The example of EMC, described in the article is showing that perfectly. They took their journey to each approach described but they continue with the notion of experimenting. But what the “creative experimenter” exactly is? The “creative experimenter” describes the companies who take small steps into social media channels like Twitter and Facebook to listen to customers or for internal communications between employees. These businesses are less concerned with predictable outcomes and instead interested in listening and learning from social media.
The main idea of being a “creative experimenter” is to listen to the customers and learn from them. There are companies who listen to their customers carefully and learn, adopt changes, there are some who are solving customer complaints in a creative way and others, who just continue their TV ad campaign on the web. Domino’s Pizza First of all, Domino’s Pizza might be a great example of a company who listens to its customers and not only learn from them, but also apply the changes needed to satisfy them. Domino’s Pizza – is one of the world’s largest pizza delivery chains.
According to the survey, conducted in the year of 2009 by research firm Brand Keys, about customer taste preferences among national chains Domino’s was the last, although their rankings were first in convenience and price. Being the last – that did justify the radical changes Domino’s was facing in 2009. What have they done exactly, was reaching out to food bloggers and others who criticized the brand in the past and ask them to comment live on the Domino’s website about the new formula. In the past Domino’s have experienced the downside of the social media and now they were going to use social media to embellish the brand.
Final result of it was that they have totally changed its core pizza – crust, cheese and sauce. Domino’s consultant Howard Gordon said:”Once you’ve built a brand, that’s your brand. To change it means that everything you’ve stood for isn’t right. ” But Domino’s accomplished it with excellent results. Wheat Thins The kind of companies, whom we called creative customer complaints solver is Wheat Thins – backed snack cracker. They had very original idea, which they implemented into reality. They have hired a team of researchers to comb Twitter every day for most interesting Wheat Thins tweets all over the country.
This was an idea of combining video and Twitter in a fun way, so potential customers could also participate in the process of creation or post, comment and be part of an ad campaign. The first ad was launched in 2010, it is about a girl Tabitha, who just twitted:” I am out of Wheat Thins. My life is officially over. ” – like a joke. Researchers tracked her, came into her house and left her hundreds of boxes of Wheat Thins to make sure she’s got plenty of them. They have launched more ads in this campaign, all in a very positive and funny way. The ad of Tabitha: http://www. outube. com/watch? v=okk04JqRRn8;feature=player_embedded Old Spice Well, the company who might have cleared all the above mentioned is Old Spice – is an American brand of male grooming products. This is what they did: Old Spice, marketing agency Wieden + Kennedy and actor Isaiah Mustafa were collaborating on the project. The group selected various social networks and invited them to ask questions directly to Mustafa, afterwards the most interesting questions were answered directly by name in funny and short YouTube videos. They have created about 205 direct answers.
Even if the ad wasn’t directed to you, it still seems very personalized. All people who did or did not got the answers were actively posting those videos on Twitter and Facebook, commenting and chatting all over again about Old Spice. Why this campaign worked so well? First of all, as were mentioned before it was personalized, moreover, the costs of it were very low. What is more, consumers watched those videos just for fun and laugh, but finally were interacting directly with the company, in this way creating some kind of closeness and trust with the brand.
Concluding the case, all the strategies that were mentioned are more like guidelines than standardized model. Many companies use combined strategy from two or more strategies that were mentioned. So, each entrepreneur must find its way to reach the target. Social media is pretty young and there is plenty space to improve. If you ask a heap of different people, “What is Social Media? ” They will all give you a different answer. Here are 49 definitions: 1. About. com – Media is an instrument on communication, like a newspaper or a radio, so social media would be a social instrument of communication 2.
Affilorama – Social media is content created and shared by individuals on the web using freely available websites that allow users to create and post their own images, video and text information and then share that with either the entire internet or just a select group of friends 3. AG Communications Group – Social media essentially is a category of online media where people are talking, participating, sharing, networking, and bookmarking online 4. Answers. com – The online forms of communicating to the masses, which include blogs, microblogs, social networking sites and podcasts 5.
BlackBox Social Media – Social media is any online media platform that provides content for users and also allows users to participate in the creation or development of the content in some way 6. Briancee – Social Media is the sharing of user (human) created information and interacting on-line using Internet technology 7. Brian Solis – Social Media is the democratization of information, transforming people from content readers into publishers. It is the shift from a broadcast mechanism, one-to-many, to a many-to-many model, rooted in conversations between authors, people, and peers 8.
Common Craft – Social media in plain English (video) 9. CubixDev – Social Media is the new term for socialising online. It allows people to freely interact with each other online where-ever they are and whenever they want 10. Daily Blog Tips – Social media are the various forms of user generated content and the collection of websites and applications that enables people to interact and share information online 11. Duct Tape Marketing – Social media is the use of technology combined with social interaction to create or co-create value 12. Fresh Networks – Social media is people having conversations online.
These conversations can take a variety of forms; for example, blogs and comments or photo sharing 13. Get a Social Boost – Digital word of mouth 14. Harish Dabasia – Social media is people having conversations online 15. Health is Social – Social Media is the meeting place between people and technology 16. Hudson Horizons – Social Media is often used as another term for user-generated content 17. iContact – An umbrella term that defines the various activities that integrate technology, social interaction, and the construction of words and pictures 18. Integrasco – Social media explained (video) 19.
Investopedia – Internet-based software and interfaces that allow individuals to interact with one another, exchanging details about their lives such as biographical data, professional information, personal photos and up-to-the-minute thought 20. Just Ask Kim – Social media is any media form that displays itself to an open public and encourages interaction between the host and all observers 21. Kyle David Group – Social media is the technological path of least resistance for two-way communication and distribution through a large audience who would otherwise be unconnected if it were not for the technological medium 22.
Luke Hayes – Social media is a group of Internet-based applications that allow the creation and exchange of user generated content. This content is then shared through social interaction 23. Mahalo – Social media is content created by people using highly accessible and scalable publishing technologies. At its most basic sense, social media is a shift in how people discover, read and share news, information and content 24. Marta Kagan -What is Social Media (presentation) 25. Michelle Digital – Social media is life online 26.
One Zero One – Social Media, by definition, is the collection of strategies, practices and tools for communicating, creating, sharing and discussing news, information and other media online 27. Online Schools – Social media is technically a means for social interaction through the web 28. Optimize Your Web Presence – Social media are online venues, such as social networking sites, blogs and wikis that enable people to store and share information called content, such as text, pictures, video and links 29. Orange Soda – Social media is about interacting with and sharing information with others online 30.
ProPR – Social media are online communications in which individuals shift fluidly and flexibly between the role of audience and author. To do this, they use social software that enables anyone without knowledge of coding, to post, comment on, share or mash up content and to form communities around shared interests 31. Radian6 – Social media is game changing, not a closed system, not just another media, transparent, more than blogs, decentralized and real-time and measurable 32. Rapid Learning Life – What is Social Media? In Simple English 33. Relationship Economy – Social media is communications 34.
Scobleizer – Internet media that has the ability to interact with it in some way 35. Search Engine Land – Social media itself is a catch-all term for sites that may provide radically different social actions 36. SEO Zodiac – Social Media is simply people having conversations online 37. Social Media Optimization Services – Social media is people meeting other people 38. Social Media Vision – Simply refers to communication/publication platforms which are generated and sustained by the interpersonal interaction of individuals through the specific medium or tool 39.
Squidoo – Social media also includes social networks that insist on people to come together online that shares a common interest 40. Tech ER – Media is an instrument of communication, like a newspaper or a radio, so social media would be a social instrument of communication 41. Telezent – Social media explained visually (presentation) 42. The Financial Brand – Social media isn’t about the media, it’s about being social 43. The Social Election – Social media is people talking to people online 44. Tjongolongo – Social Media is word of mouth on steroids 45.
Web1Marketing – Social Media consists of media that support and encourage social interaction among user 46. Webgeekly – Social Media is generally any website or service that uses Web 2. 0 techniques and concepts 47. Webopedia – A term used to describe a variety of Web-based platforms, applications and technologies that enable people to socially interact with one another online 48. Wikipedia – Social media are media for social interaction, using highly accessible and scalable publishing techniques 49. WiseGeek – Social media mainly consists of user-generated Internet content Refferences:
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