A Practical Guide To Marketing & Making Money Through Social Media: Dell Case Study

A Practical Guide To Marketing
& Making Money Through
Social Media: Dell Case Study
21st September 2011
Damien Cummings
Online & Social Media Director

About Dell

CSMB Online & Social Media

We
revolutionized
the industry
once, and
we’ll do
it again

First to sell complex
configurable items

First company to
hit $1M a day in
online revenue

One of the first
to launch online
discussion forums

One of the first
companies to launch
online support


Dell Online Today
725K B2B

transactions per year

Online:

Dell.com + Premier + Global Portal + B2B +
Channel Portal + eSupport + Community

Googled 1M
times per day

1B

visits per year to
Dell.com

via eSupport per day

Channel partners
online

166 countries
$10B

190k

Premier pages

supported

170M visits
to community properties

150M
online resolutions
58K

34 languages

online revenue

13B

page views in FY’09
An online order
is placed

every 2 seconds


Dell’s Social
Media and
Community
Journey

5


Power of a Social Brand
More than ever – a company’s
brand is influenced by what
consumers are saying about the
brand
25% of search results
for the world’s top
20 largest brands are
links to usergenerated content
(Socialnomics, ’09)

6

Confidential

Visitors to Facebook and Twitter
spend more money on the Web
than other Internet users (eMarketer,
June 2010)

People more likely to
buy from brands
they follow (51%
more likely to buy
following brands on
Facebook. 67%
Twitter) (iModerate research)

A negative customer
review on YouTube,
Twitter or Facebook
can cost a company
about 30 customers
(Convergys Corp.)


Dell’s Vision of Social Media
1. The future of Dell.
2. Solid strategy is in place,
grounded in business and
customer value drivers.
3. Benefits are real, tangible and
will strengthen insights in
coming years.
7

Confidential


Dell’s Social Media Heritage
Industry
Evolution1

Consumer
SMB
LE

Social Relationships

Social Functionality
Users interact in
new ways online

Early Adopter

Social Colonization

Users find each
other online

Public

Social not limited
to “social sites”

Blogosphere
Outreach

Decreased ability to respond
due to resourcing

Social
Network Platforms

1.3M Followers on Twitter
today; $6.5M revenue

Global
Offsite Properties

Strong brands, but nearly
90% YoY traffic decline

Premier, Health
Storms launched

2K ideas in first 2
weeks

IdeaStorm

Recent implemented ideas
include backlit keyboards,
Linux OS

Shown to improve
conversion by as much as
176%

Ratings & Reviews

Moved to segmentspecific blogs

Blogs

7 core blogs, 100+
contributors, 4-5 posts/week

10K+ ‘accepted solutions’

Forums

2006

1995

8

1

Forrester, “Future of Social Web”

2007

2008

2009

2010

* Data as of October 2009

Global Reach (As of Jan 2010)

Global reach is good, globalization strategy needs to be
focused and more thoughtfully executed Online & Social Media
CSMB

Dell’s Social
Media
Marketing &
Commercial
Strategy

10


1

Content &
Listening:
SNS
Blogs &
Twitter

Best Practice:

5
11

2

Build Fans &
Followers
Through
Social
Networks

Best Practice:

3

4
Dell.com
Dell Swarm

Online Video
& Viral
Marketing:
New Product
Launch
& Key Brand
Campaigns

Social
Commerce:
Including
Dell.com
Improvements
& Dell Swarm
Group Buying

Best Practice:

Best Practice:

Social Media Training for all Employees

5 Steps To Social Media LeadershipOnline & Social Media
CSMB

Listening To
Customers


Social Media Listening Command Centre
•
•

Using Radian6 (but
considering other
technology platforms).

•

13

First Centre in Austin,
Texas

Monitoring 25,000 daily
conversations.


Example: “Gorilla Glass” on Dell Streak 5
Dell Streak “gorilla glass”

The “gorilla glass” on Dell Streak
tablet phone is breaking


How the SMLCC Responds:
Product Group

SMLCC

Work with vendor for
appropriate solution. Consider
for future design

Business Analysts

Customer Care

Monitor volume, reach
& sentiment

Handle any customer
escalations to repair / replace

Online
Listeners
Hears customer
complaints: “gorilla glass
on Streak breaks!”

Community
Manager
Develop & publish
appropriate response /
content on social sites

Adjust online content /
merchandising
Manage Dell Community
forum discussions

SMLCC Director
Coordinates action plan
within SMLCC & other
Dell teams

Marketing
Revise any relevant copy in
marcom

Social Commerce
Manager
Minimize impact on
social commerce

Sales
Aware with at-ready talking
points

Corp Comm / Public
Relations
Manage any media exposure


Building Fans,
Followers,
Likes,
Connections,
etc.


What is the value of a Fan?
- Spend an additional
$71.84
- Fans are 28% more likely
to continue to use Dell
- Fans are 41% more likely
to recommend Dell

Source: Syncapse Value of Facebook Fan research

Global CSMB Social Media

4 Ways to Build Fans, Likes & Connections
• Paid Advertising contributes up to
75% of your Fan/Like acquisition
(Facebook).

Paid Advertising

(up to 75%)

• Around US$1.10 per Fan acquisition.
• Relevant content, incentives and CSR
keeps Fans, Followers, Connections
engaged.
• Acquisition changes depending on
the number of existing Fans, Followers
Connections (early stage vs. category
leader: 1 million+).
18

Relevant
Content

Incentives

Corporate Social
Responsibility

Global CSMB Social Media

Online Video


Video: User Generated vs Agency Produced

295,217 views
20

7,429 views

Social
Commerce


Social
Commerce:
Group Buying
via the Dell
Swarm brand


Dell Swarm Platform Positioning
Dell Swarm

Dell.com

Group Buy
Focus: S&P and End-of-life

Premium, New and Full
Range of Products

•
•
•

•

Large discount expectation
Social, WOM and Buzz generation
Upsell/traffic drive to Dell.com

Purchase, Delivery and Help
all leverage Dell.com platform

Customisation & everything you’d expect
of Dell.com


Dell Swarm in Australia
Success due to a number of factors:
- Business Partners able to offer
steep discounts
- Affiliate Marketing partners
- Growing WOM (now 50% of
traffic), +19% more likely to Buy
than average
- Simplified Discount approach
(modeled on Groupon)

1hr 11min
Sold Out

10hr 5min
Sold Out

2hr 23min
Sold Out

33min
Sold Out

22min

Sold Out

19hrs 12min
Sold Out


Next Steps for Dell Swarm

Geo Expansion

Partnerships

Mobile & Social
Integration

Now:
- Singapore & Malaysia,
Australia & UK.
Coming Soon:
- The World!
25


Twitter:
@DellOutlet
1,570,397
followers
$5m+ revenue


Training:
Unleashing
Your Team
As Social
Media
Advocates


1.

Social Transformation

Training all of
Dell’s 100,000
employees in
social media.

Social Media policy in place.

2.

Robust training program in place:
•
Getting Started in Social Media
•
Brand Mgmt in Social Media
•
Twitter
•
Facebook
•
LinkedIn
•
RenRen & Sina (China)
•
Blogging & Community
•
Internal Social Media

3.

9,000 employees already trained.

4.

Will fundamentally transform Dell.

Dell’s Five Social Media Principles
1. Protect
Information

2. Be
Transparent
and Disclose

4. Be
Responsible

3. Follow the
Law, Follow
the Code of
Conduct

5. Be Nice,
Have Fun and
Connect

SMaC U Training & Certification

Training and Certification
Personal

SMaC Enthusiast

SMaC Professional

SMaC Spokesperson

• SMaC U Certification is required for any team member using Social
Media on behalf of Dell beyond their personal social media platforms

Team Member Roles

fan

"Fan"

Social Media use

Team member uses personal SM
platforms (facebook, flickr) only
for personal use

"Cheerleader"

cheerleader

player

"Player"

Team member that uses personal Team member responds directly to
SM platforms and will occasionally
customer needs, engaged in
support Dell initiatives on personal conversations and/ or owns a social
pages
media group on behalf of Dell

broadcaster
"Sports Broadcaster"

Team member certified to speak
on behalf of Dell with the media

Code of Conduct and Other Dell Corporate Policies
SMaC U Basic
Required Training

N/A

MKTG2002 SMaC Principles

MKTG2002 SMaC Principles, MKTG2003 Get Started SMaCing and
MKTG2005 Building Brand on SMaC
Select one or more based on the tools you plan to use
MKTG2006 Building Relationships on Facebook, MKTG2007 Building
Relationships on Twitter, MKTG2008 Buildinig Relationships on
Community, (TBD) Building Relationships on LinkedIn (New Classes
added as needed)

Platform Specific
Classes

Media Training

YES

Team member
certification
Hours required
Audience handles

30

Confidential

6- 7 Minimum
sassysarah

sassysarah

7- 8 Minimum

SarahatDell

SarahatDell


Questions?

Want a job?

Damien Cummings
Online & Social Media Director

Dell Singapore
Talent Acquisition

damien_cummings@dell.com

ta_sg@dell.com

@damiencummings

www.dell.com/careers/singapore

http://sg.linkedin.com/in/damiencummings

www.linkedin.com/company/dell

http://damiencummings.blogspot.com

www.dell2direct.com


A Practical Guide To Marketing & Making Money Through Social Media: Dell Case Study

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