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Social
Commerce
Trends Report
2011
Embracing Customer Centricity
through Digital Democracy




                                May 27, 2011
Title of the White Paper Goes Here.




Table of Contents
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Table of Contents
Embracing Customer Centricity through Digital Democracy ................. 3
The immediacy of social gives brands consumer insights
that drive business impact .................................................................... 4
  Brands build trust, test markets with immediate social feedback .......... 5
  Social initiatives based on core business goals
  help convince wary executives ............................................................ 5
It’s a conversation, not a campaign ...................................................... 8
  Successful Facebook results combine social networks
  with consumer/brand interactions ........................................................ 9
  It’s key to be relevant, be everywhere consumers are,
  and be brand-consistent ................................................................... 10
Social media must scale across the organization ............................... 11
  Social media starts with people and grows with collaboration ............ 12
  The authentic consumer voice can have a huge impact on brands ..... 15
Social gives consumers direct input to brands, creating
wins for brands and consumers .......................................................... 15
Social – and its impact – continues to evolve...................................... 17
Your next steps ................................................................................... 17
About the experts ............................................................................... 18
About Bazaarvoice .............................................................................. 19
Embracing Customer Centricity
through Digital Democracy
                                               now conversations happen between
                                               the brand and the consumer, as well
                                               as consumer to consumer. These
                                               conversations must be tailored to the
                                               specific needs of consumers, wherever
                                               they happen, while remaining consistent
                                               with the brand.

                                               Social media must scale across
                                               the organization. Social requires
Speakers at the Social Commerce Summit
                                               organizational collaboration; it’s
shared their views of the future of social.
                                               important to set up the entire
Each year, thought leaders from major          organization to scale with social
brands with expertise in social gather at      initiatives. Avoiding silos, establishing
the Social Commerce Summit, hosted by          leadership, and helping team members
Bazaarvoice, to present the trends that        participate all provide the most direct
shape best practices in social media.          path to success.

These four guiding principles represent the    Social gives consumers direct input
key drivers of successful social strategies:   to brands, creating wins for brands
                                               and consumers alike. Authentic
The immediacy of social gives                  conversations between brands and
brands consumer insights that drive            consumers allow for perfect markets,
business impact. With 24/7 feedback            where the needs of consumers
that social media provides, brands             converge with brand offerings at
know how to improve products                   exactly the right time. And corporate
faster than ever before. These                 cultures change within companies
consumer insights, when acted                  when the customer voice is brought to
upon, lead to bottom-line results              the forefront.
across the organization.
                                               This paper explores these themes with
It’s a conversation, not a campaign.           input from brand leaders and social
Messages no longer happen simply               experts who spoke at Social Commerce
between the brand and the consumer;            Summit 2011.




                                                                                           3
Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




The immediacy of social gives
brands consumer insights that
drive business impact.
When the needs of the brand and the                product, and more than half of all
consumer converge at the same time,                one-star reviews suggest an alternative
perfect markets can emerge. Until now,             product. This proves the power of
brands developed products based on                 social conversations that brands can
focus groups or a perceived need in the            now access. For brands that listen
marketplace; however, with real-time               and act on what they learn, real
feedback available via social media,               business impact follows.
brands can now understand exactly
what consumers want, even before they
                                                   Keys to uncovering results
create new products, rather than waiting
for products to be returned or focus               Bazaarvoice Social Analytics Director Chris
groups to give opinions. This eliminates           Kerns gives three key recommendations for
much of the risk for brands that take              achieving measurable results.
advantage of this immediate feedback.
                                                   1. Align social goals with business goals. Digital
With social, a brand can launch a                     initiatives exist for a handful of reasons,
product one day and, within hours,                    which have already been determined for your
gather direct customer feedback that                  business. Social initiatives should support
can reduce the product improvement                    these same goals.
cycle to weeks instead of months.                  2. Brands should create a technical
Then brands can take that information                 infrastructure to measure these goals, building
and immediately make marketing and                    mechanisms such as A/B testing, Google
product adjustments to improve sales                  analytics, or putting other tools in place to
and bottom line results.                              quantify results.
                                                   3. Consider and define measurement goals
Bazaarvoice research into millions
                                                      well before the launch, not at the last minute.
of customer reviews shows that more
                                                      When brands begin with the goal and metrics
than half of four-star product reviews
                                                      in mind, better programs generally result.
tell brands how to make it a five-star




                                                                                                        4
Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




Brands build trust, test markets                    Social initiatives based on core
with immediate social feedback.                     business goals help convince
                                                    wary executives.
Hair care brand Nexxus used social
to test the market, then successfully               Many brands see major hesitation
launch their new ProMend product line,              from executives when the marketing
developed to reduce split ends in just              department initially proposes adding
a few uses. To test their claim on actual           customer reviews to a public website.
consumers – and because Nexxus                      This was the case at Argos, one of the
felt consumers may be skeptical                     UK’s largest multichannel retailers.
about the bold claim – they began by
                                                    David Tarbuck, Multi-Channel Program
reaching out to existing Nexxus brand
                                                    and Operations Manager for Argos Ltd.,
advocates. They asked them to accept
                                                    confirms, “We thought about launching
a free sample and write an honest
                                                    reviews for 18 months before we did it.
review about their experiences, and
                                                    The major points we had to overcome
the product passed the test.
                                                    included, ‘What will customers say?,’
By the time ProMend launched, each                  ‘Will we be in control?,’ ‘What will we
product had more than 30 reviews with               do with the information?,’ and ‘How
average ratings of 4.4 to 4.7 stars, and            will we manage the content?’”
Nexxus shared these reviews across
                                                    Tarbuck and his team convinced
all advertising channels and with major
                                                    management that adding reviews
retailers’ websites. Not only did the
                                                    would provide additional information
feedback help market the product, the
                                                    for customers, increase conversion,
real-time feedback ensured that Nexxus
                                                    and allow customers to tell Argos
wouldn’t stumble on its bold claim
                                                    what they think; it was time to start
upon launch, saving them money in
                                                    the conversation.
potential product returns and ensuring
their ongoing consumer trust.




“We now have 900,00 reviews, and each week over a million customers
read reviews,” says Argos’ David Tarbuck.




                                                                                              5
Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




The ability for Argos to know about                They’ve also seen a 103% increase
product issues quickly has changed                 in site visitors looking for an agent,
several areas of their business. For               indicating that reviews drive sales
example, when the Argos team receives              through Nationwide’s agent channel.
negative feedback, they amend product
                                                   For Morton, gaining executive buy-in
text and images, or give feedback
                                                   began with finding one person on the
directly to manufacturers to improve
                                                   executive team to act as a champion.
products. Today more than 70 people
                                                   He explained how customer input
in the organization regularly read and
                                                   helped other industries improve online
act on reviews.
                                                   sales, and how he believed it could
“We aim to remove lower-rated items,”              work to sell more auto insurance. Once
Tarbuck says. For example, the very                he got the executive team’s attention,
first review of a three-piece furniture set        he and his team focused on issues
was negative, so they immediately took             he knew were critical to the success
action to improve the product, and now             of the program.
consumers rate it highly.
                                                   “Our plan focused on five core
“Now we have 900,000 reviews, our                  areas that were most important to
average rating is 4.3, and each week               our executives,” Morton says, which
over a million customers read reviews,”            include the following:
Tarbuck says. “We use reviews across
channels to communicate, including                 1. Governance. They worked out details
print, emails, an iPhone application,                 around regulations in social media for
and through social sharing.”                          their highly-regulated industry.
                                                   2. Monitoring. They explained how
Shawn Morton, Director of Mobile,
                                                      they would discover all social
Social Media and Emerging Media                       conversations about Nationwide.
for Nationwide Insurance, aligns
                                                   3. Engagement. Morton’s team set clear
Nationwide’s social media initiatives
                                                      parameters for how they planned to
with the business’ core goal: sell
                                                      respond, who they respond to, and
more auto insurance. After launching                  who responds.
reviews in 2009, they saw an average
                                                   4. Commerce. It was important to see
rating of 4.7 stars out of five, with 96%
                                                      exactly how customer reviews on
of customers recommending them.
                                                      product pages would drive sales.
By focusing on the core goal, they
have seen a 40% increase in quote                  5. Measurement. No executive would
                                                      buy in without understanding the
starts and a 19% increase in quote
                                                      results expected and how they
completes, showing that customer
                                                      would be measured.
reviews drive policy growth.




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Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




In short, Morton and his team aligned              Core metrics vary from company
their social initiatives with a core               to company. For Adobe, conversion
business objective: sell more car                  matters, but sentiment and the quality
insurance. This plan made executives               of participants are also important.
comfortable by addressing their core
                                                   “Marketers are always worried about
needs and tying the program back to
                                                   how to prove out the ROI of marketing
the main business goal.
                                                   campaigns and the predictability of
                                                   these campaigns,” says John Travis,

“   Everybody’s speed of choice
is one click away…”
                                                   Vice President Brand Marketing for
                                                   Adobe. “If I invest X, how much can
                                                   I expect to get back? From a social
– Alex Tosolini, Vice President,
Global e-Business for P&G                          perspective, we are putting a lot of
                                                   effort into how to measure things like
                                                   volume of conversations, sentiments,
Alex Tosolini, Vice President, Global
                                                   quality of followers and how they
e-Business for P&G, refers to business
                                                   participate, reviews, and testing
life as a “Volatile Uncertain Complex
                                                   customer comments in a headline
Ambiguous (VUCA) World.” He focuses
                                                   versus an agency-created headline.”
on putting business ownership first to
deal with these inherent issues. Before
taking on the latest social endeavor, he
recommends companies think about
the business objectives and strategies
first, and then how social can support
them. He recommends asking, “How
well do I know the broad business
challenges for this Brand?” Tosolini
works to keep common sense at the
forefront of all activities.

“Everybody’s speed of choice is one
click away,” Tosolini says. “Consumers
can make product decisions in a
click. Retailers can change their
product offerings online in an instant,
manufacturers can provide new content              P&G’s Alex Tosolini focuses on putting business
                                                   ownership first when dealing with ambiguity.
in a click – all this takes weeks or
months in a store environment.”




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Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




It’s a conversation, not a campaign.
“It used to be that businesses talked              brands. Savvy brands are learning to
to consumers, which they called                    listen, communicate, and share in new
advertising or marketing,” Clay Shirky,            ways to ensure their message and their
author of Cognitive Surplus and social             brand are represented well in the new
media consultant, says. “People are                digital democracy.
getting used to the idea that consumers
                                                   This “human element” is critical for
have a voice, but the big change is
                                                   brands to keep in mind. For example,
that now people in the audience can
                                                   Keller Fay research has found that
talk directly to each other, and there is
                                                   consumers want to help other
much more of that conversation than
                                                   consumers – altruism is the main reason
between brands and consumers.”
                                                   for writing reviews, and people read
“I worry about campaigns because                   reviews and seek other social proof to
they cost a lot and are discrete,                  reduce risk in making purchases. And
finite occurrences,” Manish Mehta,                 with the advent of digital and social
Vice President for Social Media and                media, consumers want information from
Community for Dell, says. “They need               brands everywhere – it’s up to brands to
to be aligned with a bigger relationship           create a consistent experience across
you want to build with a customer. It’s            all channels. Taking all these factors
not a sustainable way to build loyalty             into account is critical for brands to
and lifetime value of your customers.”             effectively reach consumers as humans.

The evolution of social has led to                 “It used to be easy,” Tracy Benson,
brands and consumers getting in                    Senior Director, U.S. Marketing and
sync. Today, conversations happen                  Portable Electronics, Best Buy, says.
between the brand and consumer, as                 “We could control the conversation
well as between consumers and other                from the brand down. We could also see
consumers, and the scale increases                 how that impact would play out at the
exponentially as more social tools                 local store. Today, media is becoming a
become mainstream, including Facebook              consumption and conversation tool. The
and Twitter. Sometimes the consumer                internet has become primarily a place
actually leads the conversations with              people play and discover.”




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Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




Successful Facebook results                        Restaurant reservations site OpenTable
combine social networks with                       added the “like” button for its restaurants
consumer/brand interactions.                       and sees a 25% increase in reservations
                                                   and a 200% increase in member
                                                   registrations at OpenTable.com,

“  For every share that happens
on Facebook via Ticketmaster,
                                                   once the Facebook user sees the
                                                   restaurants on Facebook.
Ticketmaster generates more                        To gather more product reviews,
than five dollars in ticket revenue.”              Benefit Cosmetics allows customers
– Dan Rose, Vice President of                      to add reviews on the Benefits
Partnerships and Platform                          Facebook page, then those reviews
Marketing for Facebook                             flow automatically into Benefit’s
                                                   product pages. Within two weeks,
                                                   through Facebook, they got fans to
Dan Rose, Vice President of
                                                   review 80% of their products.
Partnerships and Platform Marketing
for Facebook, encourages brands
to “take the marketing funnel with
awareness at top and action at bottom,
and turn it into a circle where you have
you and your friends at the middle.
Make it faster and easier to find and
share with friends.”

For example, Ticketmaster benefits
from the friend-focus of Facebook
because people tend to go to concerts
with someone else. They added the
capability for Ticketmaster customers
to share the news about their recent
ticket purchase with friends. For every
share that happens on Facebook via                 Facebook’s Dan Rose recommends turning
Ticketmaster, Ticketmaster generates               marketing funnel into a circle, with the user
more than five dollars in ticket revenue,          and his friends at the center.
and they track these results daily.




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Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




It’s key to be relevant, be                        “You want to be able to recognize the
everywhere consumers are,                          brand’s voice – it’s the hardest thing
and be brand-consistent.                           to get right, in my opinion, to make the
                                                   voice consistent but make it relevant
                                                   to social,” Thalberg says.

“    You want to be able to
recognize the brand’s voice –
                                                   Social also enables an “unprecedented
                                                   intimate brand relationship,” Thalberg
it’s the hardest thing to get                      says. “Ultimately, communications
right, in my opinion.                              are merging and uniting around our
– Marisa Thalberg, Vice President of               consumer. She expects us to come to
Global Digital Marketing for The Estée             her, so we need to foster a continuous,
Lauder Companies                                   intimate, varied experience for her,
                                                   depending on where she is and what
At The Estée Lauder Companies, many                she wants, when she wants it.
consider founder Estée Lauder the
                                                   “Brands can validate the consumer,
original social networker; her motto
                                                   but now she also validates our brands,”
was, “Telephone, telegraph, tell a
                                                   Thalberg says. “Social media enables
woman.” This core company belief
                                                   association with brands to literally
made the transition into social media a
                                                   act as badges. [Social users share]
brand-building proposition, rather than
                                                   the brands they associate themselves
just a sales campaign. The firm focuses
                                                   with, such as the bag you carry. This is
on keeping communications consistent
                                                   where brand equity is so powerful.”
within each brand and personalized by
the type of woman each brand attracts.             “Social is fundamental to Adobe,”
                                                   Travis says. “We have always engaged
To Marisa Thalberg, Vice President of
                                                   with our customers – Adobe labs and
Global Digital Marketing for The Estée
                                                   forums are part of our DNA. Digital for
Lauder Companies, social media is
                                                   us is the backbone of our marketing;
the ultimate conduit to high-touch
                                                   we spend greater than 70% of our total
relationships, building on Lauder’s
                                                   marketing spend on digital. We’re trying
one-to-one selling in stores. Social
                                                   not to think of social as a media type
media lets consumers feel a sense of
                                                   – it’s a fundamental shift in our culture,
connection with the brand and with
                                                   customers want to engage with us. We
each other. On Facebook, Estée Lauder
                                                   continue to see how we can integrate
tries not to push a marketing message;
                                                   it across everything we do.”
rather, they want to be authentic in the
brand voice and make it appropriate
for social media.




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Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




Social media must scale across
the organization.
New social media requires new types                How social organizations evolve
of organizations – and they usually
                                                   Owyang lists the organizational types that
cross departmental borders. Social
                                                   evolve with a brand’s social media efforts.
media expert Jeremiah Owyang points
out that, while social media initiatives
                                                   1. Decentralized. Anyone can do anything in
can start out being owned by one
                                                      the company in social, with no organization.
department, this one-to-one model
                                                   2. Centralized. Typically run by corporate
cannot scale.
                                                      communications; most companies start here.
Owyang recommends that organizations               3. Hub and spoke. The majority of the
who wish to pursue social move as quickly             companies Owyang has interviewed fall into
as possible to the hub and spoke model,               this group. There is a hub in the organization
where a core team gives guidance and                  that sets guidelines and gives direction, but
sets parameters that allow multiple areas             actual participation takes place across the
of the organization to participate in social.         organization. This is the most common type
                                                      of successful social organization today.
                                                   4. Multiple hub and spoke or dandelion. Large,
                                                      usually tech, socially-advanced brands
                                                      reach this organizational level. Owyang
                                                      recommends this model for most brands.
                                                   5. Holistic or honeycomb. Only 1.5% of
                                                      companies are here, where the entire
                                                      organization uses social media in an
                                                      organized way. This is the model with the
                                                      highest level of maturity, and it’s difficult to
                                                      achieve. A few brands that exemplify
                                                      this include Best Buy, Dell, and Zappos.

                                                   Jeremiah presented “Program Plan: The Social
                                                   Media Center of Excellence” and “Invest in Scalable
                                                   Social Business Programs” at Social Commerce
Jeremiah Owyang has worked with top
                                                   Summit 2011; you can read his recommendations
brands to develop the shares best ways
                                                   on his blog at web-strategist.com.
to scale social organizations.




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Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




He also recommends:                                consistency across these media. I’m
                                                   helping to drive that. What I’ve learned
1. Get ready internally. Focus first               is that you have to start with your
   on governance and process, then                 people first and a commitment to the
   on education to emerge as a                     integrity of the brand, then give them
   center of excellence.                           some kind of guidelines so they can get
2. 1:1 will never scale. Leverage the              started. I’ve been fascinated looking at
   crowd for the first response, then              how the community evolved. When you
   interact in escalation.                         let people go [ahead with social media],
3. Integrate social to increase relevancy          they’re excited, they’re smart – have
   and reduce costs on creating                    high aspirations where you can take
   content. Use other people’s content,            social – it’s really exciting to see this
   such as customer reviews, to                    creative energy.
   build credibility.
                                                   “It’s unsettling for some people in our
4. Standardize with social media
                                                   organization to feel empowered,” she
   management systems, which help
   you manage potentially thousands                continues, “because in the past we’ve
   of accounts you have for all your               said ‘No, you only speak to the media
   brands. Invest in this now before               if you’re in PR,’ for example. Now we’re
   your individual business units roll             saying, ‘Anyone can speak.’ We have
   out their own sites.                            our guidelines for developing Facebook
5. Remember the future is more than                pages, Twitter handles, and lines are
   social marketing; it cascades to                blurring between personal and business
   support, product innovation, and then           online personas. We hope to empower
   to the supply chain (with your partners).       our sales force more to use social.”

                                                   With Best Buy’s Twelpforce – where
Social media starts with people                    more than 3,000 Best Buy in-store
and grows with collaboration.                      employees answer consumer questions
                                                   via Twitter – and other digital and social
“Several years ago, integrated                     initiatives, Best Buy has made the most
marketing was a big buzz,” Christa                 of its early-adopter clients to build
Carone, Corporate Vice President                   multi-way conversations that support
and Chief Marketing Officer for Xerox,             their core business goals.
says. “Now we’re talking about brand




                                                                                                12
Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




“[The evolution of our social strategies]            and advertising. Whatever touches your
is happening fast, from an organizational            consumer needs to have a consistent
perspective,” Adobe’s Travis says.                   tone and with a human voice; we’re
“Part of being a leader in social is                 focused on that.”
being genuine. We’ve reorganized our
                                                     “We try to get our marketing people
organization to be a hub and spoke,
                                                     into the call centers at least once a
not to regulate but to provide shared
                                                     year so we stay connected,” Steve
learning, a lot of dialog between the
                                                     Fuller, Senior Vice President and CMO
hub and spokes.”
                                                     for L.L.Bean, says. “It humanizes our
“We have corporate communications,                   customers; when customers become
but we also have call centers and so                 numbers, bad things happen. It also
many other touch points,” Kimberly                   simplifies marketing and promotion
Kadlec, Worldwide Vice President,                    messages. Talking to your customers
Global Marketing Group for Johnson &                 will often give you a very different
Johnson. “We need to start to empower                perspective around a marketing
some of the areas beyond marketing                   effort’s effectiveness.”




Johnson & Johnson’s Kimberly Kadlec, Xerox’s Christa Carone, and Adobe’s John Travis discuss how
they put customers at the center of their brands.




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Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




Key social lessons from Dell                            to their concerns,” he says. “This will help
                                                        both parties be ready. The earlier you bring in
As an early social media adopter, Dell’s                IT as a partner, the better.”
Mehta shares key lessons Dell learned in
                                                     4. Never stop innovating – ever. “When you think
creating an advanced social infrastructure.
                                                        you’re done, get paranoid,” he says. “Listening
                                                        is fundamental to Dell and we’re building
1. Integrate where customer and business
                                                        a system that lets every employee listen,
   value are realized. For example, product
                                                        for example.”
   development sees customer reviews and
   social chatter as an early warning system and     5. There is business value in social. It’s
   marketing uses social media to drive demand.         measurable in many forms; there is not just
                                                        one number. “You should instrument your
   “When Dell originally started with social            involvement and engagement with external
   media, we just saw it as a corporate                 communities for business value,” he says.
   communications tool,” Mehta says. “Today we          “The faster you start to measure, the better.”
   have 18 major functions in Dell using social,
                                                     6. Campaigns are capital intensive. You cannot
   though they vary in level of involvement. We’ll
                                                        buy fans and followers for life. Mehta believes
   continue to innovate how to bring social to
                                                        campaigns must align with the bigger
   every person in the company.”
                                                        relationship a brand wants to build
2. Chasing shiny objects is a formula for               with a customer.
   ridicule. He recommends not chasing every
                                                     7. Look across the entire customer lifecycle.
   trend. It’s important to understand the
                                                        Social can be used everywhere – really.
   expected outcomes and be willing to turn
   things off quickly.                                  “Human Resources was only using LinkedIn
                                                        before – now they are seeing how other parts
   “At the end of the day it’s about pragmatic
                                                        of the social web can also benefit their part of
   approaches that build the business day to
                                                        the business,” he says. “We haven’t perfected
   day,” he says. “Smart business fundamentals
                                                        social in all groups, but we have proven that it
   never change. Use social to apply these same
                                                        can drive value and be measured.”
   business fundamentals.”
3. Make your IT organization a partner. Walk a
   mile in the IT team’s shoes.
   “Be clear with your objectives, why you want
   to move so quickly, why you want to be
   aggressive without being radical, and listen




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Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




Social gives consumers direct input
to brands, creating wins for brands
and consumers.
“Customer conversations are only                   The authentic consumer voice can
a means to an end,” L.L.Bean’s                     have a huge impact on brands.
Fuller says. “There’s value in these
conversations, but if you’re not acting
upon them, you’re missing it. The real
power is in the action that you take and           “  Our response changed the
                                                   way customers interacted with
the change that they can facilitate.”              us – they saw we were listening
“People have always had a lot of time,”            and we cared.”
Shirky says. “They now prefer to use               – Bert DuMars, Vice President E-Business and
their time creating and sharing – not              Interactive Marketing for Newell Rubbermaid
just consuming media, like television.”
                                                   When brands join the conversations,
As consumers, “we are moving from
                                                   major transformation occurs.
the informational web to the social
web,” Facebook’s Rose says. “Your                  Bert DuMars, Vice President
life online is starting to mirror your life        E-Business and Interactive Marketing
offline. Today what we do online feels             for Newell Rubbermaid, worked with
a lot like how we live.                            the Rubbermaid E-Marketing team to
                                                   create a cultural shift in this 100-year-
“Over the last five years, the internet has
                                                   old brand by adding customer reviews
started to be rebuilt around people,” he
                                                   to its product pages. While brand
says “We are moving from the ‘what’
                                                   team members initially balked, getting
to the ‘who,’ moving from wisdom of
                                                   this customer input turned out to be
crowds to wisdom of friends – becoming
                                                   the most important thing that has
more social. We get our news from
                                                   happened to the brand, because now
friends and family. We find jobs from
                                                   Rubbermaid knows the “why” behind
people around us. We trust our friends
                                                   product returns and dissatisfaction,
more than we trust the critics. When I go
                                                   and can make changes immediately.
to my Facebook newsfeed, I see what my
                                                   Also, when reviewing positive reviews,
friends are doing and buying – exactly
                                                   brands can see how consumers
what I see in my real life.”




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Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




                                                   their sinks look better. We were able
                                                   to fix the problem before thousands
                                                   of them were returned to stores.”

                                                   “These aren’t high-priced items, but our
                                                   response changed the way customers
                                                   interacted with us – they saw we
                                                   were listening and we cared” he says.
                                                   “Once we reached out to them, we
                                                   got amazing responses, such as, ‘I
                                                   am so happy to hear that my “single
                                                   voice” may have made a difference.’ It
                                                   was a big emotional hit and a big win
                                                   to create brand advocates from this
                                                   initially negative experience.”
Newell-Rubbermaid’s Bert DuMars proves
that even low-priced products benefit from         At L.L.Bean, the customer has always
customer input.                                    been at the heart of the brand. Since
articulate their product features and              1912, the company has had a 100%
benefits, and reuse that insight in                satisfaction guarantee; they have
marketing campaigns.                               always welcomed criticism of their
                                                   merchandise or services. Online
Rubbermaid looks for and reacts to                 customer reviews were a natural
one- and two-star product reviews,                 progression when they were added
including a recent example involving               in 2008.
a sink mat.
                                                   “In 2010, we sent out over eight million
“Our Consumer Insights team                        outbound requests for feedback,” says
determined, based on customer                      L.L.Bean’s Fuller. “It’s important to
feedback and two flu outbreaks, that               know what our customers are thinking.”
antibacterial products could be popular
in the market. The team then created               With more than 300,000 reviews in
an antibacterial sink mat,” DuMars                 place on their site, the company fuels
says. “However, they were less stain               its marketing programs with customer-
resistant, and consumers gave us                   generated content.
negative feedback. We reached out to               “Our number one non-sale email had a
these consumers who told us that they              customer-written headline: ‘I am in love
did not want antibacterial sink mats               with this doormat,’” Fuller says.
– they wanted the sink mats to make




                                                                                              16
Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




Social – and its impact – continues
to evolve.
The fourth annual Social Commerce Summit highlighted just how seriously major
brands take social programs – brands that range from highly-regulated insurance
companies to consumer packaged goods to business-to-business brands, not just
retail. While brands continue to explore new ways to implement social initiatives,
they’re focusing on finding their authentic voices and creating infrastructures that
involve their entire organizations.



Your next steps.
These insights should answer some questions, but raise even more. With direct
input on more than 1200 of the world’s top brands’ social programs, Bazaarvoice
has the knowledge to help build social equity for you.

Visit bazaarvoice.com to schedule a demo, where we’ll help you understand how to
connect to consumers, drive measurable return on investment, and gain invaluable
insights into what’s important to your customers – right now.




                                                                                              17
Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy




About the Experts
Speakers quoted in this paper participated in Bazaarvoice’s Social Commerce
Summit 2011, held in April 2011.

For more information on this and future events, visit socialcommercesummit.com.
Tracy Benson                                     Jeremiah Owyang
Sr. Director, US Marketing & Portable            Social Technology and Interactive
Electronics, Best Buy                            Marketing Expert
@mobitweet                                       @jowyang

Christa Carone                                   Dan Rose
Corporate Vice President and                     Vice President of Partnerships and
Chief Marketing Officer, Xerox                   Platform Marketing, Facebook
@ChristaBC                                       @drose007
                                                 facebook.com/drose
Bert DuMars
Vice President E-Business                        Manish Mehta
and Interactive Marketing,                       Vice President for Social Media
Newell Rubbermaid                                and Community, Dell
@bwdumars                                        @ManishatDell

Steve Fuller                                     Clay Shirky
Senior Vice President & CMO,                     Writer and Consultant on New
L.L.Bean                                         Technology and Social Media
@flyingpoint                                     @cshirky

Kimberly Kadlec                                  David Tarbuck
Worldwide Vice President,                        Multi-Channel Program and
Global Marketing Group,                          Operations Manager, Argos Ltd.
Johnson & Johnson
                                                 Marisa Thalberg
@kkadlec17
                                                 Vice President of Global Digital Marketing
Chris Kerns                                      The Estée Lauder Companies, Inc.
Director, Social Analytics,                      @executivemoms
Bazaarvoice
                                                 Alex Tosolini
chris.kerns@bazaarvoice.com
                                                 Vice President, Global e-Business
Shawn Morton                                     P&G
Director of Mobile, Social
                                                 John Travis
Media and Emerging Media,
                                                 Vice President Brand Marketing
Nationwide Insurance
                                                 Adobe
@smorty71
smorty71.com




                                                                                              18
About Bazaarvoice
Bazaarvoice’s Software as a Service (SaaS) social commerce solutions have
powered more than 200 billion customer conversations on more than 1200 brand
web sites like Best Buy, Blue Shield of California, Costco, Dell, Macy’s, P&G,
Panasonic, QVC, and USAA in 68 countries. The company connects organizations
to their influencers through a unique network that reaches hundreds of millions of
consumers around the globe, enabling authentic customer-powered marketing.
Through syndication, analytics, partnerships, and consulting, Bazaarvoice brings
the voice of the customer to the center of their clients’ business strategy, proving
“social” can drive measured revenue growth and cost savings for manufacturing,
retail, travel, and financial services companies. Headquartered in Austin, the
company has offices in Amsterdam, Dusseldorf, London, Paris, and Sydney.
For more information and access to client success stories, visit bazaarvoice.com,
read the blog at bazaarvoice.com/blog, and follow on Twitter
at twitter.com/bazaarvoice.

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Social Commerce Trends 2011

  • 1. Social Commerce Trends Report 2011 Embracing Customer Centricity through Digital Democracy May 27, 2011
  • 2. Title of the White Paper Goes Here. Table of Contents Use the Table of Contents Generator (under Layout), Using the edited Default TOC style. Table of Contents Embracing Customer Centricity through Digital Democracy ................. 3 The immediacy of social gives brands consumer insights that drive business impact .................................................................... 4 Brands build trust, test markets with immediate social feedback .......... 5 Social initiatives based on core business goals help convince wary executives ............................................................ 5 It’s a conversation, not a campaign ...................................................... 8 Successful Facebook results combine social networks with consumer/brand interactions ........................................................ 9 It’s key to be relevant, be everywhere consumers are, and be brand-consistent ................................................................... 10 Social media must scale across the organization ............................... 11 Social media starts with people and grows with collaboration ............ 12 The authentic consumer voice can have a huge impact on brands ..... 15 Social gives consumers direct input to brands, creating wins for brands and consumers .......................................................... 15 Social – and its impact – continues to evolve...................................... 17 Your next steps ................................................................................... 17 About the experts ............................................................................... 18 About Bazaarvoice .............................................................................. 19
  • 3. Embracing Customer Centricity through Digital Democracy now conversations happen between the brand and the consumer, as well as consumer to consumer. These conversations must be tailored to the specific needs of consumers, wherever they happen, while remaining consistent with the brand. Social media must scale across the organization. Social requires Speakers at the Social Commerce Summit organizational collaboration; it’s shared their views of the future of social. important to set up the entire Each year, thought leaders from major organization to scale with social brands with expertise in social gather at initiatives. Avoiding silos, establishing the Social Commerce Summit, hosted by leadership, and helping team members Bazaarvoice, to present the trends that participate all provide the most direct shape best practices in social media. path to success. These four guiding principles represent the Social gives consumers direct input key drivers of successful social strategies: to brands, creating wins for brands and consumers alike. Authentic The immediacy of social gives conversations between brands and brands consumer insights that drive consumers allow for perfect markets, business impact. With 24/7 feedback where the needs of consumers that social media provides, brands converge with brand offerings at know how to improve products exactly the right time. And corporate faster than ever before. These cultures change within companies consumer insights, when acted when the customer voice is brought to upon, lead to bottom-line results the forefront. across the organization. This paper explores these themes with It’s a conversation, not a campaign. input from brand leaders and social Messages no longer happen simply experts who spoke at Social Commerce between the brand and the consumer; Summit 2011. 3
  • 4. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy The immediacy of social gives brands consumer insights that drive business impact. When the needs of the brand and the product, and more than half of all consumer converge at the same time, one-star reviews suggest an alternative perfect markets can emerge. Until now, product. This proves the power of brands developed products based on social conversations that brands can focus groups or a perceived need in the now access. For brands that listen marketplace; however, with real-time and act on what they learn, real feedback available via social media, business impact follows. brands can now understand exactly what consumers want, even before they Keys to uncovering results create new products, rather than waiting for products to be returned or focus Bazaarvoice Social Analytics Director Chris groups to give opinions. This eliminates Kerns gives three key recommendations for much of the risk for brands that take achieving measurable results. advantage of this immediate feedback. 1. Align social goals with business goals. Digital With social, a brand can launch a initiatives exist for a handful of reasons, product one day and, within hours, which have already been determined for your gather direct customer feedback that business. Social initiatives should support can reduce the product improvement these same goals. cycle to weeks instead of months. 2. Brands should create a technical Then brands can take that information infrastructure to measure these goals, building and immediately make marketing and mechanisms such as A/B testing, Google product adjustments to improve sales analytics, or putting other tools in place to and bottom line results. quantify results. 3. Consider and define measurement goals Bazaarvoice research into millions well before the launch, not at the last minute. of customer reviews shows that more When brands begin with the goal and metrics than half of four-star product reviews in mind, better programs generally result. tell brands how to make it a five-star 4
  • 5. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy Brands build trust, test markets Social initiatives based on core with immediate social feedback. business goals help convince wary executives. Hair care brand Nexxus used social to test the market, then successfully Many brands see major hesitation launch their new ProMend product line, from executives when the marketing developed to reduce split ends in just department initially proposes adding a few uses. To test their claim on actual customer reviews to a public website. consumers – and because Nexxus This was the case at Argos, one of the felt consumers may be skeptical UK’s largest multichannel retailers. about the bold claim – they began by David Tarbuck, Multi-Channel Program reaching out to existing Nexxus brand and Operations Manager for Argos Ltd., advocates. They asked them to accept confirms, “We thought about launching a free sample and write an honest reviews for 18 months before we did it. review about their experiences, and The major points we had to overcome the product passed the test. included, ‘What will customers say?,’ By the time ProMend launched, each ‘Will we be in control?,’ ‘What will we product had more than 30 reviews with do with the information?,’ and ‘How average ratings of 4.4 to 4.7 stars, and will we manage the content?’” Nexxus shared these reviews across Tarbuck and his team convinced all advertising channels and with major management that adding reviews retailers’ websites. Not only did the would provide additional information feedback help market the product, the for customers, increase conversion, real-time feedback ensured that Nexxus and allow customers to tell Argos wouldn’t stumble on its bold claim what they think; it was time to start upon launch, saving them money in the conversation. potential product returns and ensuring their ongoing consumer trust. “We now have 900,00 reviews, and each week over a million customers read reviews,” says Argos’ David Tarbuck. 5
  • 6. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy The ability for Argos to know about They’ve also seen a 103% increase product issues quickly has changed in site visitors looking for an agent, several areas of their business. For indicating that reviews drive sales example, when the Argos team receives through Nationwide’s agent channel. negative feedback, they amend product For Morton, gaining executive buy-in text and images, or give feedback began with finding one person on the directly to manufacturers to improve executive team to act as a champion. products. Today more than 70 people He explained how customer input in the organization regularly read and helped other industries improve online act on reviews. sales, and how he believed it could “We aim to remove lower-rated items,” work to sell more auto insurance. Once Tarbuck says. For example, the very he got the executive team’s attention, first review of a three-piece furniture set he and his team focused on issues was negative, so they immediately took he knew were critical to the success action to improve the product, and now of the program. consumers rate it highly. “Our plan focused on five core “Now we have 900,000 reviews, our areas that were most important to average rating is 4.3, and each week our executives,” Morton says, which over a million customers read reviews,” include the following: Tarbuck says. “We use reviews across channels to communicate, including 1. Governance. They worked out details print, emails, an iPhone application, around regulations in social media for and through social sharing.” their highly-regulated industry. 2. Monitoring. They explained how Shawn Morton, Director of Mobile, they would discover all social Social Media and Emerging Media conversations about Nationwide. for Nationwide Insurance, aligns 3. Engagement. Morton’s team set clear Nationwide’s social media initiatives parameters for how they planned to with the business’ core goal: sell respond, who they respond to, and more auto insurance. After launching who responds. reviews in 2009, they saw an average 4. Commerce. It was important to see rating of 4.7 stars out of five, with 96% exactly how customer reviews on of customers recommending them. product pages would drive sales. By focusing on the core goal, they have seen a 40% increase in quote 5. Measurement. No executive would buy in without understanding the starts and a 19% increase in quote results expected and how they completes, showing that customer would be measured. reviews drive policy growth. 6
  • 7. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy In short, Morton and his team aligned Core metrics vary from company their social initiatives with a core to company. For Adobe, conversion business objective: sell more car matters, but sentiment and the quality insurance. This plan made executives of participants are also important. comfortable by addressing their core “Marketers are always worried about needs and tying the program back to how to prove out the ROI of marketing the main business goal. campaigns and the predictability of these campaigns,” says John Travis, “ Everybody’s speed of choice is one click away…” Vice President Brand Marketing for Adobe. “If I invest X, how much can I expect to get back? From a social – Alex Tosolini, Vice President, Global e-Business for P&G perspective, we are putting a lot of effort into how to measure things like volume of conversations, sentiments, Alex Tosolini, Vice President, Global quality of followers and how they e-Business for P&G, refers to business participate, reviews, and testing life as a “Volatile Uncertain Complex customer comments in a headline Ambiguous (VUCA) World.” He focuses versus an agency-created headline.” on putting business ownership first to deal with these inherent issues. Before taking on the latest social endeavor, he recommends companies think about the business objectives and strategies first, and then how social can support them. He recommends asking, “How well do I know the broad business challenges for this Brand?” Tosolini works to keep common sense at the forefront of all activities. “Everybody’s speed of choice is one click away,” Tosolini says. “Consumers can make product decisions in a click. Retailers can change their product offerings online in an instant, manufacturers can provide new content P&G’s Alex Tosolini focuses on putting business ownership first when dealing with ambiguity. in a click – all this takes weeks or months in a store environment.” 7
  • 8. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy It’s a conversation, not a campaign. “It used to be that businesses talked brands. Savvy brands are learning to to consumers, which they called listen, communicate, and share in new advertising or marketing,” Clay Shirky, ways to ensure their message and their author of Cognitive Surplus and social brand are represented well in the new media consultant, says. “People are digital democracy. getting used to the idea that consumers This “human element” is critical for have a voice, but the big change is brands to keep in mind. For example, that now people in the audience can Keller Fay research has found that talk directly to each other, and there is consumers want to help other much more of that conversation than consumers – altruism is the main reason between brands and consumers.” for writing reviews, and people read “I worry about campaigns because reviews and seek other social proof to they cost a lot and are discrete, reduce risk in making purchases. And finite occurrences,” Manish Mehta, with the advent of digital and social Vice President for Social Media and media, consumers want information from Community for Dell, says. “They need brands everywhere – it’s up to brands to to be aligned with a bigger relationship create a consistent experience across you want to build with a customer. It’s all channels. Taking all these factors not a sustainable way to build loyalty into account is critical for brands to and lifetime value of your customers.” effectively reach consumers as humans. The evolution of social has led to “It used to be easy,” Tracy Benson, brands and consumers getting in Senior Director, U.S. Marketing and sync. Today, conversations happen Portable Electronics, Best Buy, says. between the brand and consumer, as “We could control the conversation well as between consumers and other from the brand down. We could also see consumers, and the scale increases how that impact would play out at the exponentially as more social tools local store. Today, media is becoming a become mainstream, including Facebook consumption and conversation tool. The and Twitter. Sometimes the consumer internet has become primarily a place actually leads the conversations with people play and discover.” 8
  • 9. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy Successful Facebook results Restaurant reservations site OpenTable combine social networks with added the “like” button for its restaurants consumer/brand interactions. and sees a 25% increase in reservations and a 200% increase in member registrations at OpenTable.com, “ For every share that happens on Facebook via Ticketmaster, once the Facebook user sees the restaurants on Facebook. Ticketmaster generates more To gather more product reviews, than five dollars in ticket revenue.” Benefit Cosmetics allows customers – Dan Rose, Vice President of to add reviews on the Benefits Partnerships and Platform Facebook page, then those reviews Marketing for Facebook flow automatically into Benefit’s product pages. Within two weeks, through Facebook, they got fans to Dan Rose, Vice President of review 80% of their products. Partnerships and Platform Marketing for Facebook, encourages brands to “take the marketing funnel with awareness at top and action at bottom, and turn it into a circle where you have you and your friends at the middle. Make it faster and easier to find and share with friends.” For example, Ticketmaster benefits from the friend-focus of Facebook because people tend to go to concerts with someone else. They added the capability for Ticketmaster customers to share the news about their recent ticket purchase with friends. For every share that happens on Facebook via Facebook’s Dan Rose recommends turning Ticketmaster, Ticketmaster generates marketing funnel into a circle, with the user more than five dollars in ticket revenue, and his friends at the center. and they track these results daily. 9
  • 10. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy It’s key to be relevant, be “You want to be able to recognize the everywhere consumers are, brand’s voice – it’s the hardest thing and be brand-consistent. to get right, in my opinion, to make the voice consistent but make it relevant to social,” Thalberg says. “ You want to be able to recognize the brand’s voice – Social also enables an “unprecedented intimate brand relationship,” Thalberg it’s the hardest thing to get says. “Ultimately, communications right, in my opinion. are merging and uniting around our – Marisa Thalberg, Vice President of consumer. She expects us to come to Global Digital Marketing for The Estée her, so we need to foster a continuous, Lauder Companies intimate, varied experience for her, depending on where she is and what At The Estée Lauder Companies, many she wants, when she wants it. consider founder Estée Lauder the “Brands can validate the consumer, original social networker; her motto but now she also validates our brands,” was, “Telephone, telegraph, tell a Thalberg says. “Social media enables woman.” This core company belief association with brands to literally made the transition into social media a act as badges. [Social users share] brand-building proposition, rather than the brands they associate themselves just a sales campaign. The firm focuses with, such as the bag you carry. This is on keeping communications consistent where brand equity is so powerful.” within each brand and personalized by the type of woman each brand attracts. “Social is fundamental to Adobe,” Travis says. “We have always engaged To Marisa Thalberg, Vice President of with our customers – Adobe labs and Global Digital Marketing for The Estée forums are part of our DNA. Digital for Lauder Companies, social media is us is the backbone of our marketing; the ultimate conduit to high-touch we spend greater than 70% of our total relationships, building on Lauder’s marketing spend on digital. We’re trying one-to-one selling in stores. Social not to think of social as a media type media lets consumers feel a sense of – it’s a fundamental shift in our culture, connection with the brand and with customers want to engage with us. We each other. On Facebook, Estée Lauder continue to see how we can integrate tries not to push a marketing message; it across everything we do.” rather, they want to be authentic in the brand voice and make it appropriate for social media. 10
  • 11. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy Social media must scale across the organization. New social media requires new types How social organizations evolve of organizations – and they usually Owyang lists the organizational types that cross departmental borders. Social evolve with a brand’s social media efforts. media expert Jeremiah Owyang points out that, while social media initiatives 1. Decentralized. Anyone can do anything in can start out being owned by one the company in social, with no organization. department, this one-to-one model 2. Centralized. Typically run by corporate cannot scale. communications; most companies start here. Owyang recommends that organizations 3. Hub and spoke. The majority of the who wish to pursue social move as quickly companies Owyang has interviewed fall into as possible to the hub and spoke model, this group. There is a hub in the organization where a core team gives guidance and that sets guidelines and gives direction, but sets parameters that allow multiple areas actual participation takes place across the of the organization to participate in social. organization. This is the most common type of successful social organization today. 4. Multiple hub and spoke or dandelion. Large, usually tech, socially-advanced brands reach this organizational level. Owyang recommends this model for most brands. 5. Holistic or honeycomb. Only 1.5% of companies are here, where the entire organization uses social media in an organized way. This is the model with the highest level of maturity, and it’s difficult to achieve. A few brands that exemplify this include Best Buy, Dell, and Zappos. Jeremiah presented “Program Plan: The Social Media Center of Excellence” and “Invest in Scalable Social Business Programs” at Social Commerce Jeremiah Owyang has worked with top Summit 2011; you can read his recommendations brands to develop the shares best ways on his blog at web-strategist.com. to scale social organizations. 11
  • 12. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy He also recommends: consistency across these media. I’m helping to drive that. What I’ve learned 1. Get ready internally. Focus first is that you have to start with your on governance and process, then people first and a commitment to the on education to emerge as a integrity of the brand, then give them center of excellence. some kind of guidelines so they can get 2. 1:1 will never scale. Leverage the started. I’ve been fascinated looking at crowd for the first response, then how the community evolved. When you interact in escalation. let people go [ahead with social media], 3. Integrate social to increase relevancy they’re excited, they’re smart – have and reduce costs on creating high aspirations where you can take content. Use other people’s content, social – it’s really exciting to see this such as customer reviews, to creative energy. build credibility. “It’s unsettling for some people in our 4. Standardize with social media organization to feel empowered,” she management systems, which help you manage potentially thousands continues, “because in the past we’ve of accounts you have for all your said ‘No, you only speak to the media brands. Invest in this now before if you’re in PR,’ for example. Now we’re your individual business units roll saying, ‘Anyone can speak.’ We have out their own sites. our guidelines for developing Facebook 5. Remember the future is more than pages, Twitter handles, and lines are social marketing; it cascades to blurring between personal and business support, product innovation, and then online personas. We hope to empower to the supply chain (with your partners). our sales force more to use social.” With Best Buy’s Twelpforce – where Social media starts with people more than 3,000 Best Buy in-store and grows with collaboration. employees answer consumer questions via Twitter – and other digital and social “Several years ago, integrated initiatives, Best Buy has made the most marketing was a big buzz,” Christa of its early-adopter clients to build Carone, Corporate Vice President multi-way conversations that support and Chief Marketing Officer for Xerox, their core business goals. says. “Now we’re talking about brand 12
  • 13. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy “[The evolution of our social strategies] and advertising. Whatever touches your is happening fast, from an organizational consumer needs to have a consistent perspective,” Adobe’s Travis says. tone and with a human voice; we’re “Part of being a leader in social is focused on that.” being genuine. We’ve reorganized our “We try to get our marketing people organization to be a hub and spoke, into the call centers at least once a not to regulate but to provide shared year so we stay connected,” Steve learning, a lot of dialog between the Fuller, Senior Vice President and CMO hub and spokes.” for L.L.Bean, says. “It humanizes our “We have corporate communications, customers; when customers become but we also have call centers and so numbers, bad things happen. It also many other touch points,” Kimberly simplifies marketing and promotion Kadlec, Worldwide Vice President, messages. Talking to your customers Global Marketing Group for Johnson & will often give you a very different Johnson. “We need to start to empower perspective around a marketing some of the areas beyond marketing effort’s effectiveness.” Johnson & Johnson’s Kimberly Kadlec, Xerox’s Christa Carone, and Adobe’s John Travis discuss how they put customers at the center of their brands. 13
  • 14. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy Key social lessons from Dell to their concerns,” he says. “This will help both parties be ready. The earlier you bring in As an early social media adopter, Dell’s IT as a partner, the better.” Mehta shares key lessons Dell learned in 4. Never stop innovating – ever. “When you think creating an advanced social infrastructure. you’re done, get paranoid,” he says. “Listening is fundamental to Dell and we’re building 1. Integrate where customer and business a system that lets every employee listen, value are realized. For example, product for example.” development sees customer reviews and social chatter as an early warning system and 5. There is business value in social. It’s marketing uses social media to drive demand. measurable in many forms; there is not just one number. “You should instrument your “When Dell originally started with social involvement and engagement with external media, we just saw it as a corporate communities for business value,” he says. communications tool,” Mehta says. “Today we “The faster you start to measure, the better.” have 18 major functions in Dell using social, 6. Campaigns are capital intensive. You cannot though they vary in level of involvement. We’ll buy fans and followers for life. Mehta believes continue to innovate how to bring social to campaigns must align with the bigger every person in the company.” relationship a brand wants to build 2. Chasing shiny objects is a formula for with a customer. ridicule. He recommends not chasing every 7. Look across the entire customer lifecycle. trend. It’s important to understand the Social can be used everywhere – really. expected outcomes and be willing to turn things off quickly. “Human Resources was only using LinkedIn before – now they are seeing how other parts “At the end of the day it’s about pragmatic of the social web can also benefit their part of approaches that build the business day to the business,” he says. “We haven’t perfected day,” he says. “Smart business fundamentals social in all groups, but we have proven that it never change. Use social to apply these same can drive value and be measured.” business fundamentals.” 3. Make your IT organization a partner. Walk a mile in the IT team’s shoes. “Be clear with your objectives, why you want to move so quickly, why you want to be aggressive without being radical, and listen 14
  • 15. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy Social gives consumers direct input to brands, creating wins for brands and consumers. “Customer conversations are only The authentic consumer voice can a means to an end,” L.L.Bean’s have a huge impact on brands. Fuller says. “There’s value in these conversations, but if you’re not acting upon them, you’re missing it. The real power is in the action that you take and “ Our response changed the way customers interacted with the change that they can facilitate.” us – they saw we were listening “People have always had a lot of time,” and we cared.” Shirky says. “They now prefer to use – Bert DuMars, Vice President E-Business and their time creating and sharing – not Interactive Marketing for Newell Rubbermaid just consuming media, like television.” When brands join the conversations, As consumers, “we are moving from major transformation occurs. the informational web to the social web,” Facebook’s Rose says. “Your Bert DuMars, Vice President life online is starting to mirror your life E-Business and Interactive Marketing offline. Today what we do online feels for Newell Rubbermaid, worked with a lot like how we live. the Rubbermaid E-Marketing team to create a cultural shift in this 100-year- “Over the last five years, the internet has old brand by adding customer reviews started to be rebuilt around people,” he to its product pages. While brand says “We are moving from the ‘what’ team members initially balked, getting to the ‘who,’ moving from wisdom of this customer input turned out to be crowds to wisdom of friends – becoming the most important thing that has more social. We get our news from happened to the brand, because now friends and family. We find jobs from Rubbermaid knows the “why” behind people around us. We trust our friends product returns and dissatisfaction, more than we trust the critics. When I go and can make changes immediately. to my Facebook newsfeed, I see what my Also, when reviewing positive reviews, friends are doing and buying – exactly brands can see how consumers what I see in my real life.” 15
  • 16. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy their sinks look better. We were able to fix the problem before thousands of them were returned to stores.” “These aren’t high-priced items, but our response changed the way customers interacted with us – they saw we were listening and we cared” he says. “Once we reached out to them, we got amazing responses, such as, ‘I am so happy to hear that my “single voice” may have made a difference.’ It was a big emotional hit and a big win to create brand advocates from this initially negative experience.” Newell-Rubbermaid’s Bert DuMars proves that even low-priced products benefit from At L.L.Bean, the customer has always customer input. been at the heart of the brand. Since articulate their product features and 1912, the company has had a 100% benefits, and reuse that insight in satisfaction guarantee; they have marketing campaigns. always welcomed criticism of their merchandise or services. Online Rubbermaid looks for and reacts to customer reviews were a natural one- and two-star product reviews, progression when they were added including a recent example involving in 2008. a sink mat. “In 2010, we sent out over eight million “Our Consumer Insights team outbound requests for feedback,” says determined, based on customer L.L.Bean’s Fuller. “It’s important to feedback and two flu outbreaks, that know what our customers are thinking.” antibacterial products could be popular in the market. The team then created With more than 300,000 reviews in an antibacterial sink mat,” DuMars place on their site, the company fuels says. “However, they were less stain its marketing programs with customer- resistant, and consumers gave us generated content. negative feedback. We reached out to “Our number one non-sale email had a these consumers who told us that they customer-written headline: ‘I am in love did not want antibacterial sink mats with this doormat,’” Fuller says. – they wanted the sink mats to make 16
  • 17. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy Social – and its impact – continues to evolve. The fourth annual Social Commerce Summit highlighted just how seriously major brands take social programs – brands that range from highly-regulated insurance companies to consumer packaged goods to business-to-business brands, not just retail. While brands continue to explore new ways to implement social initiatives, they’re focusing on finding their authentic voices and creating infrastructures that involve their entire organizations. Your next steps. These insights should answer some questions, but raise even more. With direct input on more than 1200 of the world’s top brands’ social programs, Bazaarvoice has the knowledge to help build social equity for you. Visit bazaarvoice.com to schedule a demo, where we’ll help you understand how to connect to consumers, drive measurable return on investment, and gain invaluable insights into what’s important to your customers – right now. 17
  • 18. Social Commerce Trends Report 2011: Embracing Customer Centricity through Digital Democracy About the Experts Speakers quoted in this paper participated in Bazaarvoice’s Social Commerce Summit 2011, held in April 2011. For more information on this and future events, visit socialcommercesummit.com. Tracy Benson Jeremiah Owyang Sr. Director, US Marketing & Portable Social Technology and Interactive Electronics, Best Buy Marketing Expert @mobitweet @jowyang Christa Carone Dan Rose Corporate Vice President and Vice President of Partnerships and Chief Marketing Officer, Xerox Platform Marketing, Facebook @ChristaBC @drose007 facebook.com/drose Bert DuMars Vice President E-Business Manish Mehta and Interactive Marketing, Vice President for Social Media Newell Rubbermaid and Community, Dell @bwdumars @ManishatDell Steve Fuller Clay Shirky Senior Vice President & CMO, Writer and Consultant on New L.L.Bean Technology and Social Media @flyingpoint @cshirky Kimberly Kadlec David Tarbuck Worldwide Vice President, Multi-Channel Program and Global Marketing Group, Operations Manager, Argos Ltd. Johnson & Johnson Marisa Thalberg @kkadlec17 Vice President of Global Digital Marketing Chris Kerns The Estée Lauder Companies, Inc. Director, Social Analytics, @executivemoms Bazaarvoice Alex Tosolini chris.kerns@bazaarvoice.com Vice President, Global e-Business Shawn Morton P&G Director of Mobile, Social John Travis Media and Emerging Media, Vice President Brand Marketing Nationwide Insurance Adobe @smorty71 smorty71.com 18
  • 19. About Bazaarvoice Bazaarvoice’s Software as a Service (SaaS) social commerce solutions have powered more than 200 billion customer conversations on more than 1200 brand web sites like Best Buy, Blue Shield of California, Costco, Dell, Macy’s, P&G, Panasonic, QVC, and USAA in 68 countries. The company connects organizations to their influencers through a unique network that reaches hundreds of millions of consumers around the globe, enabling authentic customer-powered marketing. Through syndication, analytics, partnerships, and consulting, Bazaarvoice brings the voice of the customer to the center of their clients’ business strategy, proving “social” can drive measured revenue growth and cost savings for manufacturing, retail, travel, and financial services companies. Headquartered in Austin, the company has offices in Amsterdam, Dusseldorf, London, Paris, and Sydney. For more information and access to client success stories, visit bazaarvoice.com, read the blog at bazaarvoice.com/blog, and follow on Twitter at twitter.com/bazaarvoice.