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Social Media Strategy Execution

  2. LIFESTYLE AS BASE FOR CONSUMPTION 5 Social Media can be crucial for digital business success if used strategically in a consumer-oriented way. A strategy that pays off for your business With increasing digitization in our lives, Digital Marketing becomes a key success factor for companies. Social Media occupies a very important place in this area as billions of customers use it to connect with each other and with companies. To exploit the vast potential of Social Media for your business, it is not enough to simply engage. You have to proceed strategically as well. A.T. Kearney’s Social Media Strategy Execution is part of the 10 Steps ­Digital Series. As a comprehensive how-to guide, this publication will lead your company to higher return rates in 10 strategic steps that cover all aspects of digital business success with Social Media. I hope you enjoy reading Social Media Strategy Execution and find useful our 10 recommendations for recognizing and employing Social Media as a strategy for the digital future of your company. Michael Römer, Head of Digital Business and Co-Founder of the A.T. Kearney Lab Siegmar Tittjung, Founder and CEO of KRAFTJUNGS GmbH
  3. 6 Contents Welcome to the Digital Age 6 Potential in Digital Marketing 8 Media Types in Digital Marketing 10 Challenges in Digital Marketing 12 10 Steps 16 Step 1: Audit 18 Step 2: Share and Compare 22 Step 3: Monitor 28 Step 4: Leverage 32 Step 5: Plan 36 Step 6: Organize 44 Step 7: Outsource 48 Step 8: Protect 52 Step 9: Communicate 56 Step 10: Influence 60 Social Media Examples 64 A.T. Kearney Lab 68 Appendix: Sources 70 7 Boost your performance and profitability with digital
  4. DE of households in Germany have Internet access at home (2013) 6) 88% 8 Increasing digitization ends the era of mass processing, of mass advertising, and selling at a physical Point of Sale. At the same time, the empowerment of the digital customer is driven to unexpected heights. Consumers want to co-develop and co-test products as well as choose freely and pay safely – around the clock, wherever they may be. Without getting in touch with the Digital Age, there is no entrepreneurial future and no growth potential to exploit. Those companies connecting to their customers successfully – enthusing them by offering digital services and ensuring their loyalty at the same time – will open up effective opportunities and be sustainably successful. Welcome to the Digital Age Digitization has deep-rooted effects on your personal life and on your industry. Companies that want to succeed in the Digital Age must be better positioned tomorrow than they are today. Internet users in Europe (2013) 2) EU 70% 75% 55.6 m Internet users in Germany (2014) 3) DE 566.3 m of the world’s population is using the Internet (2014) – almost 1) 40% 3 bn EU of households in Europe have Internet access at home (2013) 5) 79% of households have Internet access at home 4) 44% 9 mobile-cellular subscriptions by the end of 2014, corresponding to a penetration rate of 96 % 13) mobile broadband subscriptions 2.3 bn 7 bn DE of Internet users in Germany are active on Social Media 11) 42% EU of Internet users in Europe are active on Social Media 12) 43% of Internet users are now active on Social Media 9) of users access Social Media from a mobile device 10) 72% 71% Sales in Europe with mobile payment (in bn US$) 8) EUworldwide sales with mobile payment in the years 2010 to 2012 and forecast for 2013 to 2017 (in bn US$) 7) +1,474% 2010 2011 2012 2013 2017 721 235.4 163.1 105.9 48.9 2010 2017 4.9 99.4
  5. Potential of Digital Marketing Digitization creates disruptive business models, ideas, and products. Digital Marketing is the decisive factor to reach out to target groups and enthuse them – in ever-changing, innovative ways. Digital Marketing has been established as a success factor in vying for consu- mer business for quite some time now. Concurrently, the continuous develop- ment of new and more effective mobile devices changes user behavior and at the same time continuously opens up innovative opportunities for Online Marketing. More and more companies keep investing in these opportunities to profit from digitization along the value chain with an ever-growing tendency – as can be clearly seen in recent studies. 10 29 38 25 26 23 15 ONLINE 2012 2017 TV NEWSPAPERS MAGAZINES OUTDOOR ADVERTISING RADIO VIDEO GAMES Advertising market share in % Share per type of media in the advertising market in Germany in 2012 and forecast for 2017 15) 14 13 5 6 5 4 1 1 Digital Ad Spending Worldwide, 2012–2018 14) 104.58 2012 2014 2016 2018 119.84 2013 2015 2017 137.53 154.29 171.08 187.65 204.01 20.8 20.4 14.6 23.2 25.3 27.0 28.4 29.8 31.1 14.8 12.2 10.9 9.7 8.7 Digital ad spending in bn dollar | % of total media spending | % change “Global spend on digital advertising is growing continuously and will have doubled by 2018.” 11 In this context, online shops are the most important revenue drivers. „„ 71 % of German retailers plan on extending their Digital Marketing budgets in the next two years. „„ The global spend on digital advertising on desktop and laptop computers, smartphones, and tablets amounts to $137,530,000,000 in 2014. „„ Until 2017, the spend on digital advertising will add up to a quarter of overall advertising media spend. „„ 60.2% of retail companies in Germany generate more than a quarter of sales online. „„ Nearly one-third of Germany-based retailers achieve 50% of their total sales via online channels. „„ 29.6% of B2C companies in Germany generate more than half their sales online, while B2B companies make 18.5%. Online channels as an important sales factor 16) Number of users of social networks globally in 2012 and forecast until 2017 (in bn) 17) 0.97 1.22 1.40 1.59 1.79 1.96 2.13 2.29 2016 2017201520142013201220112010
  6. Media types in Digital Marketing Digitization opens up new channels for corporate and marketing communication. For advertising messages to succeed in the digital world, the right communication channels have to be chosen. Owned Media, Paid Media, Earned Media – these three key terms pave the way toward Digital Marketing success. It leads to where the relevant target groups are. The tripod Digital Marketing rests on has been analyzed by renowned market research companies for relevance, benefits, and risks. It is obvious: whoever takes the first steps in the Digital World with Owned, Paid, and Earned Media enters new territory under controlled conditions and with good prospects of healthy growth. 12 Media Type 18) Definition Examples Role Benefits Challenges Owned Media Channel that a brand controls •• Website •• Mobile Site/Apps •• Blog •• Social Media Account (e. g. on TW) •• Build a long-term online asset and relationship with existing and potential customers •• Control •• Cost efficiency •• Longevity •• Versatility •• Company communication not trusted •• Takes time to scale Paid Media Brand pays to leverage a channel •• Display ads (e. g. on FB) •• Paid search (e. g. on Google) •• Direct mail •• In-store media •• Shift from foundation to a catalyst that feeds Owned Media and creates Earned Media •• Immediacy •• Scale •• Control •• Clutter •• Declining response rates •• Credibility Earned Media Customers become the channel •• WOM (Word-of-mouth) •• BUZZ (e. g. posts/ likes on FB •• Viral •• Blogs/forums •• Listen and respond – often the result of well-executed Owned and Paid Media •• Most credible •• Key role in most sales •• Transparent and lives on •• No control •• Can be negative •• Global scale •• Hard to measure 13 Owned Media Generate reach by self-produced advertising. Paid Media Increase reach with paid tools. Earned Media Increase reach by user-generated advertising respectively comments. Ideally, Earned Media are the prod- uct of well-applied Owned und Paid ­Media. Social Web Users and influ- encers consider the advertised brand or product so important that they discuss them in forums, blog about them, or post them on Facebook. Content generated by the commu- nity or opinion leaders enjoys high credi­bility and achieves maximum reach. Owned Media – for example the cor- porate website or a blog – are often the starting point of Digital Marketing activities: The company generates reach with self-produced content. Besides production costs for online media, there must be a time invest- ment to maintain them. Paid Media uses paid tools from Search Engine Marketing (SEM), ­ such as GoogleSearch, to increase advertising reach. While doing so, the company decides when, where, and which Paid Media Tools are applied. Paid Media are recognized as advertising in Web 2.0, which can raise questions about the credibility of the company. RESOURCES OWNED MEDIA WEBSITE OR SHOP OWN SOCIAL MEDIA PLATFORMS 19) PAID REACH GOOGLE ADWORDS, DISPLAY, FACEBOOK ADS EARNED REACH BLOGS, FACEBOOK, XING, TWITTER, G+, PINTEREST, … TIME BUDGET REACH SCALABILITY CREDIBILITY COSTS PREDICTABILITY The goal of an agency today is to integrate all media for maximum results, with Social Media being highly important as it touches all three media types.
  7. Challenges in Digital Marketing Social Media are one of the driving forces of digitization and an important economic factor. But the enormous growth potential opened up by Digital Marketing in the field of Social Media is presenting companies with entirely new challenges. For companies going for decisive competitive advantage by offering customer-­ oriented products and services, Social Media are and will be essential to participate in. But simply taking part is not enough. Only by integrating Social Media activities into Marketing Communication can companies introduce digi- tal change into Marketing 3.0. Priority must be given to digital networking and clearly defined values to effectively meet increased expectations and individual customer requirements. Challenges of Marketing 3.0 – such as new technologies, interaction, real-time communication, Big Data, or loss of control – can be mastered with compre- hensive preparation. The appropriate mix of strategy and execution encom- passes opportunities that can tap the full potential. 14 How can a Social Media strategy support a company in achieving decisive company goals? How much do we have to invest in Social Media, and how do we split our activities in a meaningful way between platforms, possibilities for analysis, and specialized service providers? Promotion Brand ambassa- dors User- added value SEO Campaign Marketing 15 What does Social Media Risk Management mean, and how do we do it the right way? Do we have the required internal and external resources at our disposal to effectively fulfill the requirements of each consumer who takes the time to communicate with us on Social Media? With which criteria can we determine the effectiveness of our Social Media commitment? Do we have a clear strategy to earn money with Social Media channels? EditorsDialectics Pre-testing Agency Open graph Magma Dream team Experts Last year, Facebook collected more than $4 billion in advertising revenue. However, marketers are somewhat dissatisfied with the results – a clear strategy is required! 20) DIGITAL MARKETING KEY TOPIC: SOCIAL MEDIA FACEBOOK YOUTUBE TWITTERMYSPACE GOOGLE+
  8. 10 STEPS TO A SUCCESSFUL SOCIAL MEDIA STRATEGY EXECUTION 16 Social Media are a unique network of opportunities for success and development possibilities. In the Social Web, customer relations are newly defined, intensified, and consistently optimized. Shared information leads to not only double but also to several-times-multiplied success: With the right strategy, Social Media for about 40 million users in Germany and about two billion users globally become effective drivers of brand profile, demand, and sales. In applying the following 10 Steps to a Successful Social Media Strategy Execution, you can pluck high-quality marketing fruit from the tree of Social Media. 17
  9. 18 10 STEPS TO A SUCCESSFUL SOCIAL MEDIA STRATEGY EXECUTION STEP 1 PAGE 18 STEP 2 PAGE 22 STEP 3 PAGE 28 STEP 4 PAGE 32 STEP 5 PAGE 36 Audit! Social Media Landscape Share and Compare! Social Media Engagement Monitor! Social Media Monitoring Leverage! Social Media Business Case Levers Plan! Social Media Planning 19 STEP 7 PAGE 48 STEP 6 PAGE 44 STEP 8 PAGE 52 STEP 10 PAGE 60 Organize! Social Media Organizational Continuum Outsource! Social Media Outsourcing Protect! Social Media Risk Exposure Communicate! Social Media Communication Influence! Social Media Influencer STEP 9 PAGE 56
  10. AUDIT 20 21
  11. Step 1: Social Media Landscape Many companies already active in Social Media behave in an unstructured way. An assessment of its own current activities in Social Media gives a company an overview and will be the starting point of a strategic Marketing route. Only a few years ago, Social Media were only part of online communication and interaction. Today, they have penetrated almost every area of the Internet and thus created an ideal breeding ground for Digital Marketing. The routes to success in this fruitful landscape are manifold. Generate your own Social Media map so that you do not lose orientation along the way: it will show you where you began, where you are heading, and which further Social Media activities are required to reach your goals without ­detours. 22 Frédéric Cavazza, Social Media Landscape 2014, modified under CC BY-NC-SA 2.0 license. 21) 22) Key Comments 23 Only an extensive overview over already existing Social Media activities allows the development of a targeted Social Media strategy. Therefore, you should build an inventory of the company’s Social Media activities and assets. The number and variety of Social Media platforms grow continuously. That leads not only to more possibilities, but also to increased complexity. Only 350 of Fortune 500 companies have a Facebook or Twitter account. The big players of the scene invest heavily and build their position in Social Media. Many companies do not use their Social Media in a targeted way and are not strategic enough.
  13. 26 Step 2: Social Media Engagement The level of Social Media commitment varies not only from industry to industry but also from brand to brand within a company. A Best Practice comparison boosts brand performance in Social Media. The Social Media maxim is “who shares, wins”. This applies to insights, data, ideas, customers, and success. This principle also applies to internal and cross-industry Best Practices: A comparative view on further brands of your company or those of your competitors tells you how effectively and success­ fully your own label performs in the Social Web. TRIDENT „„ 41.4 k followers „„ 5,932 Tweets „„ 14,113 m likes „„ 193 k talking about „„ 491 k followers „„ 22.6 k Tweets „„ 38,480 m likes „„ 211 k talking about „„ 405 k likes „„ 9,531 talking about OREO JACOBS TWITTER TWITTER FACEBOOK FACEBOOK FACEBOOK 27 Social Media commitment of single brands of Mondelez International Inc., the world’s third-largest food, beverage, and confectionery company. The numbers in this overview of the Social Media performance of the single brands of Mondelez International Inc. are accurate as of December 2014 and may have varied in the meantime. Start best-practice sharing across brands/categories. MILKA „„ 8,755 m likes „„ 108 k talking about „„ 815 k likes „„ 5,884 talking about CADBURY „„ 224 k followers „„ 37 k Tweets „„ 1,016 m likes „„ 587 talking about „„ 230 k likes „„ 6,120 talking about „„ 7,321 followers „„ 2,801 Tweets TASSIMO Multi-brand company Mondelez MIKADO TWITTER TWITTER FACEBOOK FACEBOOK FACEBOOK FACEBOOK
  14. 28 Step 2: Example Social Media Commitment of Car Brands 23) Automobiles are among the most emotional products and most-talked-about things in our lives: Design, aesthetics, and functions appeal directly to the consumer’s heart and soul. But how do car brands apply their fascination to Social Media platforms, and how do users respond to the brands’ Social Media activities? PERFORMANCE OVERVIEW Car brands on Facebook in Germany as of December 2014 Increase or decrease in total number of fans since November 17, 2014 is shown in green and red, respectively 1,473 m +23,914 1,122 m +13,789 772,586 +6,835 587,390 +10,208 436,369 –25,754 340,802 +9,203 253,227 +3,922 AUDI BMW VOLKS- WAGEN OPEL SKODA FORD Share of Interactions from November 17, 2014 to December 17, 2014 100% 75% 50% 25% 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Audi Germany BMW Germany VW Germany Mercedes Benz Germany Opel Skoda Germany Ford Germany MERCEDES- BENZ 29 „„ Total number of fans: 1,473,124 „„ Max. growth on total fans: 1.065 in December 2014 „„ Total fan Interactions: 790,1 k – 741,5 k as likes – 14,9 k as comments „„ Average daily Share Rate: 33,6 k „„ Average Response Rate for Questions: 70 % – 51 answered – 22 unanswered „„ Average Response Time for Questions: 30–90 minutes, at an average of 17 questions per week „„ Total number of fans: 253,227 „„ Max. growth on total fans: 254 in November 2014 „„ Total fan Interaction: 20,7 k – 18,7 k as likes – 1,0 k as comments „„ Average daily Share Rate: 33,6 k „„ Average Response Rate for Questions: 86 % – 25 answered – 4 unanswered „„ Average Response Time for Questions: 12–24 hours at an average of 7,4 questions per week MULTI-BRAND AUTOMOBILE MANUFACTURER VOLKSWAGEN AG Snapshot of Social Media Commitment of the car brands Audi Germany and Skoda Germany, both of which belong to Volkswagen AG, the biggest German automaker. The numbers in this overview, compiled in December 2014, may have changed. Audi Skoda Number of User Questions 50% 10 20 30 40 50 60 70 ResponseRate% Response Rate vs. Number of Questions from November 17, 2014 to December 17, 2014 BMW AUDI VOLKS- WAGEN SKODA FORDOPEL MERCEDES- BENZ
  15. 30 MONITOR 31
  16. 32 Social Media increase the quality of products and services via customer-oriented dialogue. Consistent monitoring helps recognize customer requirements, opinions, trends, and weaknesses. With the growing importance of Social Media for Digital Marketing and ­Customer Relationship Management, requirements from monitoring own ­Social Media activities increase. With comprehensive effective control tools, you optimize the online reputation of your company, your brand, and your product as well as your Return On Investment. Online monitoring tools deliver substantial data on which to build your Digital Marketing. Automated monitoring solutions filter relevant information on your company, your brands, and your products or on market development from the large and fast data streams in Social Media channels by important indicators: Measuring of “visibility of a brand, product or service” by Social Media users Measuring of “attitude” toward brand or product based on user comments and their influence in the Social Web Measuring of number and value of online sales as well as services and the resulting customer satisfaction Evaluation of marketing success in terms of ROI or by executing multivariate tests in networks before product launch Step 3: Social Media Monitoring 24) AWARENESS ENGAGEMENT AND INFLUENCE TRANSACTION AND SATISFACTION CONTINUOUS CONTROLLING AND OPTIMIZATION 33 Continuous monitoring and subsequent evaluation of your Social Media activities and data deliver solid, meaningful values on which to base important business decisions. AWARENESS ENGAGEMENT AND INFLUENCE TRANSACTION AND SATISFACTION CONTINUOUS IMPROVEMENT •• Visits, page views, referrer •• Number of reviews, retweets, comments, tags, likes … •• Search volume •• Key words/topics around brand/company •• Share of voice •• Number of fans, followers, favorites … •• Type of comment •• Search engine position •• Number of likes •• Sentiment analysis •• Type of key words association •• Number of inquiries, POS traffic or orders •• Average order value •• Frequency of appearing customer service issues •• Customer/Social Media user satisfaction index •• Increase of Marketing ROI •• Change of time to market •• Buzz before product launch to predict future revenues •• Extension of selling long tail products
  17. 34 LEVERAGE 35
  18. 36 Social Media commitment pays off in many ways: With various levers, certain segments of the value chain are activated with effects on the entire value chain. It takes time as well as financial and human resources to introduce Social Media to the company and build a coherent and credible presence and to interact with target groups on various platforms. From an entrepreneurial perspective, inevitably the question arises as to whether and in what way Social Media offer a measurable Return on Investment. Our Business Case clarifies that Social Media have effects on the company’s entire value chain. With strategic use of Social Media, you set in motion exactly the levers decisive for achieving your corporate goals. With only one action, you profit from the “penetrating character” – the trickle-down effect – of Social Media: A Facebook post on a new product pays off in a more innovative image of the company, and the degree of brand awareness for the product is increased by sharing within the community, which means new fans and customers are added and sales figures go up. Step 4: Social Media Business Case Levers 37 LEVERS EXAMPLES SOCIAL MEDIA BUSINESS CASE GROWING SALES GENERATING INSIGHTS AT REDUCED COSTS PROACTIVELY PREVENTING RISKS „„ New sales channels (e.g. pop-up shops or new product introduc- tions) „„ Access to new customer groups – greater reach at comparably low costs „„ Better customer retention and increased customer loyalty via continuous engagement „„ Positive impact on brand image „„ Understanding consumer at early stages (and using that information for new product development) „„ Trend monitoring – fastest way for market research and product testing „„ Reduced costs for marketing and market research – Social Media much cheaper than ­traditional marketing tools „„ Minimization of reputational risks caused by firestorms through proactive management „„ Consumer companies with direct link to end consumer, thus possibility to actively participate and steer one-on-one commu- nication „„ Dell: Twitter outlet generated ­ $3m in revenue „„ Best Buy: Twelpforce generated ­ $5m benefits due to call ­deflection and sales influence „„ Burberry: 10% increase in same-store sales due to “Art of the Trench” (socially enabled website) „„ Starbucks: reduced product test phase costs to minimum by using crowdsourcing „„ Ritter Sport: heavily engages fans when formulating new ­marketing campaigns „„ Bosch: only 11 % user overlap between two social communities employed – tailor-made commu- nication and advertisement „„ Dell: reduced negative blog posts by 55% due to proactive engagement „„ FedEx: C-suite level response on the appropriate platform, swiftly and in a positive tone helped prevent an unpleasant situation „„ Burger King: time from erup- tion to resolution: just 24 hours (based on crisis response plan)
  19. PLAN 38 39
  20. 40 Professional planning ensures a successful introduction of Social Media to the company – and it paves the way for campaigns that enthrall by their simplicity, originality, and inventiveness. Social Media open up revolutionary marketing opportunities. Yet their intro­ duction is governed by familiar process steps that are an integral part of daily tasks in a company: analyze, plan, decide, adjust, realize, control, and optimize. Step 5: Social Media Planning 25) SOCIAL MEDIA CHOICE Content/decision criteria: „„ Platform „„ Multimedia „„ Timing „„ Structure Deliverables: „„ Platform and multimedia mix with target group fit selected „„ Social Media integrated in marketing and platform mix CAMPAIGN MONITORING Content/decision criteria: „„ Monitoring „„ Effort-benefit ratio Deliverables: „„ Actively participated „„ Competitors’ reaction watched „„ Social Media users’ and brand employees’ influence evaluated „„ Influence evaluated SOCIAL MEDIA TARGET SETTING Content/decision criteria: „„ Targets „„ Target group „„ Message „„ KPIs Deliverables: „„ Social Media suitability for target, target group, and message ensured „„ KPIs defined and target values set CAMPAIGN IMPROVEMENT Content/decision criteria: „„ Optimization of i.e. content, platform choice, structure Deliverables: „„ Effects measured „„ Marketing operation efficiency and effectiveness calculated „„ Social Media brand presence improved 6 7 41 The consistent implementation and execution of your Social Media activities and campaigns by means of these measures generates a valuable life cycle: This is oriented at the strategic long-time goals of your company and includes all-important factors of outright successful Social Media communications. Social Media Planners, e. g. INPROMO, help find the perfect matching platform for a business and its underlying goals. CAMPAIGN SHAPING Content/decision criteria: „„ Value-add „„ Stimuli „„ Interaction „„ Brand fit Deliverables: „„ Content added-value strengthened „„ Brand awareness on platform known „„ Brand fit ensured CAMPAIGN REFINING Content/decision criteria: „„ Test campaign with peer group „„ Processes Deliverables: „„ Target group reaction proved „„ Reality check conducted „„ Social Media operations completed CAMPAIGN SEEDING Content/decision criteria: „„ Speeding „„ Seeding „„ Activating „„ Integrating Deliverables: „„ Spreading strategy set „„ Social multipliers identified and treated in a special way „„ Critical mass achieved 3 4 5
  21. 42 Step 5: Example Innovative Social Media Campaign: WestJet 26) 27) The Canadian airline WestJet captured the spirit of Christmas in a highly credible video that, in terms of viral spread, became one of the top five Social Media videos in 2013. TORONTO BEFORE FLIGHT CHECK-IN Check-in Toronto’s Pearson & Hamilton airports for flights to Calgary MAKING WISHES Virtual Santa Claus asks for Christmas wishes Making Christmas wishes after check-in 43 Normal flight procedure while WestJet staff shop for presents on ground NORMAL FLIGHT UP IN THE AIR Two airplanes with 250 passengers total on a five-hour flight SOMEWHERE DURING FLIGHT CALGARY AFTER FLIGHT WESTJET SHOPS ON GROUND 150 WestJet staff hurry to buy, wrap, and deliver presents to Calgary Airport SOCIAL MEDIA SUCCESS STORY More than 36m views on YouTube; seen in more than 200 countries; in the top five viral videos in 2013 RECEIVING PRESENTS Unsuspecting passengers see wrapped presents bearing their names at carousel “Wishes come true” – receiving presents at baggage claim
  22. 44 Step 5: Example Innovative Cross-Media Campaign: General Mills 28) 29) General Mills, the sixth biggest food supplier globally, is among the highest earning U.S. corporations. The Cross-Media campaign “Hello, Cereal Lovers” effectively combines a strong presence in Social Media with offline communication channels. „„163 posts „„935 followers „„617,272 likes „„2,723 visits INSTAGRAM FACEBOOK 45 „„1,509 tweets „„~21,000 followers „„243 posts „„~40,000 notes „„Retro boxes „„Fashion „„Interactive exhibits “Cereal Pop Art” exhibit at the New York City Wine and Food Festival with „„85 pins „„289 followers OFFLINE CHANNEL PINTEREST TUMBLR TWITTER
  23. 46 ORGANIZE 47
  24. 48 Organization is half the battle, and it is a big step toward well-functioning Social Media communication. Within existing company structures, the course is set in the direction of communication of the future. Communication that is not in line with the voice of the company, with ­delayed or incomplete reactions to customer requests, doubles effort: If individual employees or departments activate Social Media channels with- out involving key sources of information or consider the corporate strategy, consequences are not foreseeable. Step 6: Social Media Organizational Continuum 30–39) CENTRALIZED ORGANIZATION DECENTRALIZED ORGANIZATION COORDINATED ORGANIZATION (HUB AND SPOKE) „„ All decision-relevant competencies are ­centralized. „„ All Social Media activities are steered by ­­one department. „„ All online support is coordinated centrally. „„ Ideally, a Chief Customer Officer is in charge as a “steering head quarter”. „„ No concrete management or coordination unit in the company „„ Departments are taking care of customer ­requests (e.g. customer service, sales, ­marketing, PR) via Social Media independently from each other „„ All Social Media activities are oriented toward overall corporate strategy „„ Coordination of activities by Social Media experts who support all departments and units centrally „„ Social Media budgets are still the respon­ sibility of each single department „„ Customer service is organized as a stand- alone unit „„ Single Social Media Hubs are controlled by the management board Consistent presence to the outside, but not always authentic High coordination effort Overburdening of leadership High degree of autonomy and ­therefore high motivation Naturally grown structure Authentic communication Know-how from direct confrontation with customer requests Unburdening of people in the ­hierarchy High requirements for coordination Communication has not been unified Relatively high freedom of action of separate units Authentic communication: a lot of exchange and good distribution of knowledge High costs for coordination 49 With the right organizational structures, you determine how far management will control your communication, ­to allow you to react quickly and smartly to Social Media issues affecting any part of the company. This way, Social Media com- munication becomes “daily business” that can be planned, structured, and controlled. MULTI-COORDINATED ORGANIZATION (MULTIPLE HUB AND SPOKE) HOLISTIC ORGANISATION „„ A Social Media team coordinates Social ­Media activities of the company across units „„ Individual business departments operate under one brand, yet independently of one another „„ All Social Media activities are oriented toward overall corporate strategy „„ The preferred Social Media organizational model of big companies „„ Each employee is allowed to apply Social Media to answer customer requests „„ Employees know the corporate strategies and they are aware of how customer requests have to be answered High degree of freedom High coordination requirements Building know-how by intensively dealing with customers Targeted customer orientation Much time and effort for ­coordination INDEPENDENT OF THE ORGANIZATIONAL MODEL, THE FOLLOWING POINTS NEED TO BE CLARIFIED: „„ Assessment, communication, and updating of guidelines that are central to the company „„ Frequent trainings for employees „„ Involving insights and experiences of employees „„ Defined crisis management plans A Social Media organizational model that sufficiently mirrors the ­structures and cultures of the company determines how far management will control communication.
  25. 50 OUTSOURCE 51
  26. 52 The potential Outsourcing of­ sub-areas of corporate Social Media activities is an elementary strategic decision. If Social Media work is outsourced, effectiveness and efficiency of the commitment­ have to be ensured. A professional Social Media agency delivers the required knowledge and the means for a successful presence in the Social Web. Yet the agency team does not have the internal teams’ background knowledge on your company at its command. This way, arguments such as unburdening employees or saving time internally – such as outsourcing – in the field of Social Media have to be seen in a new context. Users who communicate with companies via Social Media expect quick and professional answers – from real representatives of the company. A Social Media agency acting as an intermediate reacts more slowly because it requires information from your team. Meaningful Social Media Outsourcing distributes tasks between internal handling and external service in a way that ensures the reaction capability and credibility of your company and the seamless integra- tion of diverse Social Media channels. Step 7: Social Media Outsourcing 40–43) PRIMARILY INTERNAL RESOURCES ROLE Focus: Brand manage- ment, overall strategy definition, governance, guidelines, and processes EXAMPLE Innocent’s in-house Community Team considered essential for marketing success 53 Key Facts PRIMARILY EXTERNAL RESOURCES ROLE Focus: specialized media services, ad campaigns, frontline management EXAMPLE Dell established Social Media & Community University inter alia with external specialists EXAMPLE Beiersdorf has a Social Media agency in place to cover consumer interaction The conditions for outsourcing Social Media work stem from clearly defined strategy guidelines and effective agency management. Compilation of content Designing and developing Social Media campaigns Analytics Monitoring Status updates Research Strategy Community management In the US, only 25% of companies are Outsourcing Social Media tasks. Among the tasks most often outsourced are: 15 % 11 % 10 % 7 % 6 % 6 % 5 % 4 % Contra Outsourcing: Lack of content, risk for the brand, loss of confidence Pro Outsourcing: Professional and niche expertise; saves time
  27. PROTECT 54 55
  28. 56 The reputation of a company or a brand generates confidence and is thus an important economic factor. Proactive Social Media Risk Management protects your reputation and has a positive influence. Companies have always run the risk of reputation damage. In the Digital Age, the dimension of this damage is new: Through the Social Media combination of speed, global reach, and two-way communications, a reputation built over decades can be tarnished in minutes. Proactive Risk Management provides scope for action to monitor and protect your company’s reputation and brand in a targeted way. Negative comments no longer escalate to a threatening and uncontrollable situation. Step 8: Social Media Risk Exposure IMPLICATIONS „„ Reduced time to react „„ No test group trials possible „„ 24/7 Social Media availability of the company RISK MANAGEMENT „„ Real-time and high-quality service 24/7 „„ High solution orientation „„ Active monitoring of brand chatter buzz SPEED REAL-TIME 57 The major risks to be managed are reputational harm and disclosure of sensitive corporate data. IMPLICATIONS „„ Shared control of messaging „„ Independent interpretations of actions and statements „„ Employee power in brand communication IMPLICATIONS „„ Increased impact of messages „„ Blurring consumer segments due to consumer-to-consumer communication RISK MANAGEMENT „„ Social Media guidelines and training44) „„ Frequent response analysis „„ Authentic communication RISK MANAGEMENT „„ Consistent information across all platforms globally „„ Avoidance and management of brand control loss on Social Media platforms COMMUNICATION TWO-WAY REACH GLOBAL
  29. COMMUNICATE 58 59
  30. 60 Successful Social Media use plain language, expressed in five characteristics that together foster vivid brand communications. Social Media communication means dialogue, not just one-sided information. The customer’s needs are in focus, and you can meet these needs with relevant content, emotionally engaging pictures, and videos, keeping the lines open for 24/7 interaction with your company. Good communication is well received in the Social Web. With the right approach you will be rewarded with high-value returns: Your Social Media engagement will be compensated with brand loyalty, external knowledge, and innovative ideas, and will increase competiveness by co-creation, crowdsourcing, or innovation. Step 9: Key success factors for Social Media Communication 45) 46) 61 CONSUMERS’ BRAND LOYALITY INTEGRATION RELEVANCE INTERACTIVITY MULTIMEDIA AUTHENTICITY INTEGRATION „„ Integrated communication across platforms and other marketing instruments to multiply impact „„ Strategic integration in planning, organizational structure, and goals COMPANIES’ SOCIAL MEDIA COMMUNICATION RELEVANCE „„ Complete, valuable ­content „„ Performance-based content including added value, e. g. connecting product/service with ­current societal topics MULTIMEDIA „„ Innovative and diversified brand presentation „„ Combined usage of text, picture, audio, video, and considering target groups’ preferences INTERACTIVITY „„ 360 degree availability: 24 hours a day, 7 days a week „„ Listen, talk, support, energize, and embrace „„ Brand controlling by consumers and brand ­management AUTHENTICITY „„ Genuine and natural ­communication „„ No brand anonymity; ­ instead ­employees as brand ­ambassadors „„ Brand empathy
  31. INFLUENCE 62 63
  32. 64 Influencers are opinion leaders and multipliers in Social Networks. For effective relationship-building, it is important to win influencers. The Social Web stands for knowledge that is freely available and shared with others. In theory, any user can publish content, start dialogue, and give feed- back. In practice, the “90-9-1” rule of Danish Web expert Jakob Nielsen points out the following: 90% of Social Media users read content but do not become active. Another 9% comment and act on contents that have been generated by the remaining 1%. This 1% represents the influencers, who have the ear of the Social Web. They include, for example, top bloggers, who are ideally placed to influence the buying decisions of different target groups. In the vast landscapes of the Social Web, the appropriate influencers become important reinforcers of brand or company reputation. Track them down using the available tools, communicate appropriately, and nurture the relationship. There are two groups of influencers: „„ Mass Connectors: Networkers that are connected with a vast number of people in Social Media channels and continuously make more connections. Their influence is based on their enormous reach. „„ Mass Mavens: Experts who deal intensively with certain topics, provide their knowledge in Social Media, and understand feedback as inspiration. Their influence is a result of their expertise and the way they approach issues. Step 10: Social Media Influencer 47–49) Reach out for respective brand communities (company-owned and user-generated) on Social Media platforms Use tools such as Klout Score or Jitterater to esti- mate reach and influence of community members Ensure that identi- fied influencers are brand fans Define social network characteristics of influencers IDENTIFICATION 65 Tools for Influencer-Research: „„ Followerwonk: Twitter analysis based on bios and topic. Calculates how long someone has been with Twitter, and how many retweets (index relevance) as well as men- tions (index connection) he or she gets „„ Tweetlevel: Analyzes influencers using criteria tools such as Viewer, Commentator, Curator, Idea Starter, and Amplifier „„ Google+ Ripples: Diagram shows the unified distribution in terms of time and volume of a contribution shared on Google+, including news and information on multipliers „„ Challenger: Application that analyzes Facebook in real time using an animated map. Shows which contri- butions are liked, commented on, and who is friends with whom. The size of a circle of friends indicates the extent of reach and popularity „„ Wolfram Alpha: Supplies data on Facebook profiles – indicates topic, day, and time of posting „„ LinkedIn: Visualization of the personal network „„ Klout Score, Peerindex, Kred: Provides number of friends, activities, and number of recommendations in diverse Social Networks. The more numerous the actions and reactions, the higher the individual’s ­influence Social Media rule: 1% of people create content, 9% edit or modify that content, and 90% view the content without contributing. Get to know influencers well: „„ First, listen carefully „„ Second, provide helpful comments and support that boosts the Social Media ­communication quality Be transparent and authen- tic in whatever is written on Social Media as influencers are very sensitive to “Social Media nonsense” Treat influencers well – they influence your brand image and success as much as the company does Develop a “treat special strat- egy” for influencer to engage them in a unique way (e.g. in- formation up-front, integration into innovations) Reinforce perception that the brand is a collective good that is fully shared with influencers, and appreciate their brand competence Give the brand a face Be interactive 24/7 ENGAGEMENT SPECIAL TREATMENT
  33. 66 ICE BUCKET CHALLENGE  50)  51) 2.3 M VIDEO UPLOADS 28 M TALK ABOUT IT ON FACEBOOK 94 M US$ IN DONATIONS WITHIN FOUR WEEKS From July 15 to August 27 in 2014, 94.3 m US$ in donations were received, and ALSA (ALS Association) recorded over 2.1 m new donors. (Wikipedia) 67
  35. 70 Boost your performance and profitability with digital Digitization, in all of its forms, is the transformative factor of our time, and no company can ignore the impact it will have on all aspects of commerce, including business proces- ses, services, and transactions. A.T. Kearney’s Digital Lab draws on its understanding of the digital economy and works collaboratively with clients to understand how to adapt to today’s disruptive digital innovations and build a long-term competitive advantage. A.T. Kearney is a global team of forward-thinking partners that delivers immediate impact and growing advantage for its clients. We are passionate problem solvers who excel in collaborating across borders to co-create and realize elegantly simple, practical, and sustainable results. Since 1926, we have been trusted advisors on the most mission-critical issues to the world’s leading organizations across all major industries and service sectors. A.T. Kearney has 58 offices located in major business centers across 40 countries. For more information, permission to reprint or translate this work, and all other correspondence, please email: Authors A.T. KEARNEY Michael Römer, Partner, Head of Digital Business & Co-Founder of the A.T. Kearney Lab Dr. Jochen Stratmann, Principal, Munich Dr. Daniela Schäfer, Consultant, Berlin KRAFTJUNGS Siegmar Tittjung, Founder The author reserves the right not to be responsible for the topicality, correct- ness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which is incomplete or incorrect, will therefore be rejected. All offers are not-binding and without obligation. Parts of the pages or the complete publication including all offers and information might be extended, changed or partly or completely deleted by the author without separate announcement. © 2015, A.T. Kearney, Inc. All rights reserved. AMERICAS Atlanta Bogotá Calgary Chicago Dallas Detroit Houston Mexico City New York Palo Alto San Francisco São Paulo Toronto Washington, D.C. MIDDLE EAST AND AFRICA Abu Dhabi Doha Dubai Johannesburg Manama Riyadh ASIA PACIFIC Bangkok Beijing Hong Kong Jakarta Kuala Lumpur Melbourne Mumbai New Delhi Seoul Shanghai Singapore Sydney Taipei Tokyo EUROPE Amsterdam Berlin Brussels Bucharest Budapest Copenhagen Düsseldorf Frankfurt Helsinki Istanbul Kiev Lisbon Ljubljana London Madrid Milan Moscow Munich Oslo Paris Prague Rome Stockholm Stuttgart Vienna Warsaw Zurich Offices About A.T. Kearney Digital Lab About A.T. Kearney 71 The signature of our namesake and founder Andrew Thomas Kearney represents our pledge to live the values he instilled in our firm and uphold his commitment to ensuring “essential rightness” in all that we do.
  36. 72 References Pages 6–7: Welcome to the Digital Age 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) Pages 8–9: Potential of Digital Marketing 14) 15) 16) Studie „Online Dialogmarketing im Retail 2016“, artegic AG, 2013, 17) Pages 10–11: Media types in Digital Marketing 18) 19) Pages 12–13: Challenges in Digital Marketing 20) Pages 20–21: Step 1 – Social Media Landscape 21) Frédéric Cavazza / Social Media Landscape 2014 ( 22 ) Modified under CC BY-NC-SA 2.0 license ( Pages 26–27: Step 2 – Example Social Media Commitment of Car Brands 23) · Report generated by Analytics PRO, Copyright © 2014 Socialbakers Pages 30–31: Step 3 – Social Media Monitoring 24) Pages 38–39: Step 5 – Social Media Planning 25) Pages 40–41: Step 5 – Example: Innovative Social Media Campaign: WestJet 26) 27) Pages 42–43: Step 5 – Example: Innovative Cross-Media Campaign: General Mills 28) 29) Pages 46–47: Step 6 – Social Media Organizational Continuum 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) Pages 50–51: Step 7 – Social Media Outsourcing 40) 41) 42) 43) Pages 54–55: Step 8 – Social Media Risk Exposure 44) 71 percent of the executives polled said their company was concerned about possible risks posed by Social Media, but only 36 percent reported having Social Media training (survey by Grant Thornton, 2013) Pages 58–59: Step 9 – Key success factors for Social Media Communication 45) Bruhn, Manfred, Schäfer, Daniela and Schoenmüller, Verena. (2012) Markenkommunikation auf Social-Media-Plattformen – ­Anforderungen aus Konsumentensicht und deren Einfluss auf Zielgrössen des Markenmanagements. Die Unternehmung, Vol. 66, Nr. 1. S. 64–84. 46) Forrester Research Pages 62–63: Step 10 – Social Media Influencer 47) 48) 49) Pages 64–65: Ice Bucket Challenge 50) 51) Pages 66–67: Average number of hours per day spent on Social Media 52) 53) 54) Status of information: February 2015.
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