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How	
  to	
  gain	
  customer	
  insight	
  in	
  
                  social	
  media?	
  

                              Joonas	
  ROKKA	
  



November	
  28,	
  2012	
  
jrk@rouenbs.fr	
  
@jccnas	
  
How	
  to	
  gain	
  customer	
  insight	
  in	
  SM?	
  




      Nestle’s	
  “Digital	
  AcceleraDon	
  Team”	
  monitoring	
  customer	
  dialogue	
  online	
  
Listening	
  customers	
  in	
  social	
  media	
  	
  
 Is	
  important	
  because:	
  
          –  People	
  spend	
  a	
  lot	
  of	
  Dme	
  in	
  social	
  media,	
  discussing	
  
             their	
  daily	
  lives,	
  interests	
  and	
  opinions	
  
                        Facebook	
  is	
  the	
  biggest	
  Dme-­‐suck	
  in	
  the	
  internet	
  (17%),	
  
                         YouTube	
  (10%)	
  
          –  78%	
  of	
  consumers	
  trust	
  Word-­‐of-­‐Mouth	
  in	
  social	
  media	
  
                        Only	
  14%	
  trust	
  ads	
  
          –  34%	
  of	
  blog	
  arDcles	
  talk	
  about	
  products	
  and	
  brands	
  
                        That	
  is	
  more	
  than	
  70	
  million	
  blogs	
  




(ComScore,	
  2009,	
  Jupiter	
  Research,	
  2009,	
  Fortune	
  2010,	
  McKinsey	
  2012)	
  	
  
Need	
  for	
  a	
  systema:c	
  approach	
  
 Many	
  companies	
  are	
  extremely	
  confused	
  by	
  the	
  
  amount	
  of	
  informaDon	
  in	
  social	
  media	
  
    –  They	
  are	
  unable	
  to	
  make	
  use	
  of	
  it	
  
    –  They	
  do	
  not	
  know	
  how,	
  what	
  and	
  where	
  customers	
  
       talk	
  about	
  their	
  brands	
  and	
  products	
  	
  


 In	
  other	
  words,	
  they	
  risk	
  being	
  not	
  customer	
  
  centric!	
  
Netnographic	
  approach	
  	
  
   Netnography	
  is	
  a	
  research	
  process	
  where	
  social	
  
    media	
  is	
  studied	
  by	
  analyzing	
  member	
  discussions,	
  
    acDviDes,	
  and	
  ulDmately	
  culture,	
  via	
  acDve	
  
    parDcipaDon	
  and	
  observaDon	
  
   It	
  requires	
  constant	
  aaenDon	
  and	
  training	
  
   It	
  can	
  be	
  applied	
  to	
  study	
  different	
  social	
  media:	
  
        –    Facebook	
  
        –    Twiaer	
  
        –    Pinterest	
  
        –    Forums	
  
        –    Blogs	
  etc.	
  



See:	
  Robert	
  Kozinets	
  (2010)	
  Netnography	
  
Example:	
  Foodie	
  communi:es	
  




                            Rouxbe.com




Tastespotting.com
Benefits	
  of	
  Netnography	
  

 Window	
  into	
  consumers’	
  everyday	
  life	
  and	
  naturally	
  
  occurring	
  reality	
  
 Faster,	
  simple	
  and	
  less	
  expensive	
  than	
  many	
  other	
  methods	
  
 Up-­‐to-­‐minute	
  informaDon	
  
 You	
  can	
  study	
  your	
  customers	
  on	
  your	
  sofa	
  
 Basically	
  everyone	
  can	
  use	
  it!	
  
 A	
  managerial	
  tool	
  for	
  studying	
  
     –  Customer	
  values,	
  aetudes,	
  tastes,	
  preferences,	
  segments	
  
     –  Brand	
  percepDons,	
  meanings,	
  aaributes	
  
Case:	
  Valio	
  

How	
  netnographic	
  insights	
  were	
  used	
  in	
  
 pracDce	
  for	
  creaDng	
  a	
  new	
  product?	
  
Insights	
  from	
  discussion	
  forums	
  

 #1	
  Forum	
  dedicated	
  to	
  gym,	
  training	
  and	
  bodybuilding…	
  




   Surprising	
  insight:	
  Gym-­‐goers	
  are	
  heavy	
  users	
  of	
  Valio’s	
  	
  
   compeDng	
  product	
  -­‐>	
  Ehrmann	
  quark!	
  Important	
  source	
  
   for	
  protein,	
  yet	
  product	
  not	
  opDmal	
  for	
  eaDng	
  directly…	
  
Valio	
  Quark	
  (Crème	
  Fraîche)	
  

 Stable	
  and	
  profitable	
  (cooking)	
  product	
  
 Facing	
  fierce	
  compeDDon	
  from	
  Ehrmann	
  quark	
  
 Typical	
  generic	
  product	
  
Netnographic	
  insights	
  turned	
  into	
  success	
  


 Valio	
  had	
  never	
  thought	
  that	
  quarks	
  are	
  highly	
  valued	
  
  among	
  gym-­‐goers	
  
   –  Important	
  source	
  for	
  protein	
  
   –  Yet	
  taste	
  was	
  poor	
  –	
  product	
  was	
  designed	
  for	
  cooking	
  
 New	
  products	
  series	
  exceed	
  all	
  expectaDons	
  
   –  One	
  of	
  the	
  most	
  successful	
  product	
  launches	
  ever	
  
 CollaboraDon	
  with	
  the	
  community	
  is	
  ongoing	
  

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How to gain customer insights in social media

  • 1. How  to  gain  customer  insight  in   social  media?   Joonas  ROKKA   November  28,  2012   jrk@rouenbs.fr   @jccnas  
  • 2. How  to  gain  customer  insight  in  SM?   Nestle’s  “Digital  AcceleraDon  Team”  monitoring  customer  dialogue  online  
  • 3. Listening  customers  in  social  media      Is  important  because:   –  People  spend  a  lot  of  Dme  in  social  media,  discussing   their  daily  lives,  interests  and  opinions     Facebook  is  the  biggest  Dme-­‐suck  in  the  internet  (17%),   YouTube  (10%)   –  78%  of  consumers  trust  Word-­‐of-­‐Mouth  in  social  media     Only  14%  trust  ads   –  34%  of  blog  arDcles  talk  about  products  and  brands     That  is  more  than  70  million  blogs   (ComScore,  2009,  Jupiter  Research,  2009,  Fortune  2010,  McKinsey  2012)    
  • 4. Need  for  a  systema:c  approach    Many  companies  are  extremely  confused  by  the   amount  of  informaDon  in  social  media   –  They  are  unable  to  make  use  of  it   –  They  do  not  know  how,  what  and  where  customers   talk  about  their  brands  and  products      In  other  words,  they  risk  being  not  customer   centric!  
  • 5. Netnographic  approach      Netnography  is  a  research  process  where  social   media  is  studied  by  analyzing  member  discussions,   acDviDes,  and  ulDmately  culture,  via  acDve   parDcipaDon  and  observaDon    It  requires  constant  aaenDon  and  training    It  can  be  applied  to  study  different  social  media:   –  Facebook   –  Twiaer   –  Pinterest   –  Forums   –  Blogs  etc.   See:  Robert  Kozinets  (2010)  Netnography  
  • 6. Example:  Foodie  communi:es   Rouxbe.com Tastespotting.com
  • 7. Benefits  of  Netnography    Window  into  consumers’  everyday  life  and  naturally   occurring  reality    Faster,  simple  and  less  expensive  than  many  other  methods    Up-­‐to-­‐minute  informaDon    You  can  study  your  customers  on  your  sofa    Basically  everyone  can  use  it!    A  managerial  tool  for  studying   –  Customer  values,  aetudes,  tastes,  preferences,  segments   –  Brand  percepDons,  meanings,  aaributes  
  • 8. Case:  Valio   How  netnographic  insights  were  used  in   pracDce  for  creaDng  a  new  product?  
  • 9. Insights  from  discussion  forums    #1  Forum  dedicated  to  gym,  training  and  bodybuilding…   Surprising  insight:  Gym-­‐goers  are  heavy  users  of  Valio’s     compeDng  product  -­‐>  Ehrmann  quark!  Important  source   for  protein,  yet  product  not  opDmal  for  eaDng  directly…  
  • 10. Valio  Quark  (Crème  Fraîche)    Stable  and  profitable  (cooking)  product    Facing  fierce  compeDDon  from  Ehrmann  quark    Typical  generic  product  
  • 11. Netnographic  insights  turned  into  success    Valio  had  never  thought  that  quarks  are  highly  valued   among  gym-­‐goers   –  Important  source  for  protein   –  Yet  taste  was  poor  –  product  was  designed  for  cooking    New  products  series  exceed  all  expectaDons   –  One  of  the  most  successful  product  launches  ever    CollaboraDon  with  the  community  is  ongoing