The case for social business small

1. The Business Case For Social Strategies

2. Campaign focused Social Initiatives Campaign Red Nose Kilimanjaro Climb KOGI BBQ Direct Sales Channel Sales Twitter.com/Delloutlet Asos – online Retail Channel Online Listening Teams Listening Gatorade Customer Customer Service Service JetBlue Southwest Changing Changing Business Model Business Starbucks Model New New Business Model Business Giffgaff Model ©Copyright purple spinnaker Ltd. 2011

3. Campaign focused Social Initiatives Campaign Red Nose Kilimanjaro Climb - 2009 One-off Campaign KOGI BBQ Kilimanjaro Climb Website Twitter Kilimanjaro Climb Facebook Page Follow the climbers Hourly/Daily Post Updates Radio 1 Website Youtube BBC Website Flickr ©Copyright purple spinnaker Ltd. 2011

4. Campaign focused Social Initiatives Campaign Red Nose Kilimanjaro Climb - 2009 One-off Campaign KOGI BBQ Purpose Raise Money for Red Nose Charity Strategy Instantly communicate progress of climb Tools Primary Tools Twitter, Youtube Secondary Tools Websites, Facebook & Flickr Result £3million raised through the climb ©Copyright purple spinnaker Ltd. 2011

5. Campaign focused Social Initiatives Campaign Red Nose Kilimanjaro Climb - 2009 On-going Campaign KOGI BBQ Tweet – location of BBQ vans in LA Web site Facebook Flickr ©Copyright purple spinnaker Ltd. 2011

6. Campaign focused Social Initiatives Campaign Red Nose Kilimanjaro Climb - 2009 On-going Campaign KOGI BBQ Purpose Sell Korean BBQ Tacos in Los Angeles Strategy Instantly communicate location of vans Tools Primary Tool Twitter Secondary Tools Website, Facebook & Flickr Result Nov 2008 – 1 van July 2011 – 5 vans + 1 restaurant 89,000 loyal followers and taco purchasers 300-800 customers at each location buy BBQ ©Copyright purple spinnaker Ltd. 2011

7. Direct Sales Channel Delloutlet – daily deals online Sales Twitter.com/Delloutlet Asos – online Retail Channel US Delloutlet UK local market Delloutlet 1.59million followers 9k followers ©Copyright purple spinnaker Ltd. 2011

8. Direct Sales Channel Delloutlet – daily deals online Sales Twitter.com/Delloutlet Asos – online Retail Channel Purpose Direct Sales Channel to sell Dell discounted products in local markets Strategy Communicate current deals through Twitter Tools Primary Tools Twitter US plus local market accounts Secondary Tools Dell Websites Result 0 – 24months US$2m 24 - 36 months US$4.5m (march 2010) The acceleration of revenue in months 24-36 is due to growing reach. Direct Sales Channel – Strategy & Approach, Delloutlet ©Copyright purple spinnaker Ltd. 2011

9. Direct Sales Channel ASOS Multi-Digital Channel Sales Sales Twitter.com/Delloutlet ASOS – online Retail Channel ASOS Online Shops UK France Germany USA ©Copyright purple spinnaker Ltd. 2011

10. Direct Sales Channel Sales Twitter.com/Delloutlet ASOS – online Retail Channel 918,000 Fans Listen to Asos Customers ©Copyright purple spinnaker Ltd. 2011

11. Direct Sales Channel ASOS Multi-Digital Channel Sales Sales Twitter.com/Delloutlet ASOS – online Retail Channel Jan 2011 – Asos launched full functioning Facebook store ©Copyright purple spinnaker Ltd. 2011

12. Direct Sales Channel Sales Twitter.com/Delloutlet ASOS – online Retail Channel Purpose To develop and test an online ASOS social commerce shop extending the buying experience to social channels Strategy To setup a social commerce shop, which has the SAME look and feel as online stores and to capitalise on the online social elements of Facebook, sharing what you like, thinking about buying are buying….. Tools Primary Tools Bespoke Facebook Application Secondary Tools Website & social channels to communicate new channel Result No case study or published results as yet Looking to FY2011 Annual Results for announcements ©Copyright purple spinnaker Ltd. 2011

13. Online Listening Teams Listening Gatorade http://www.youtube.com/watch?v=InrOvEE2v38 ©Copyright purple spinnaker Ltd. 2011

14. Online Listening Teams Listening Gatorade Purpose To monitor online conversations through a central point: identifying key conversations around brand identifying key online influencers to monitor sentiment around the brand to understand key topics of customer conversations engage with customers and brand advocates to communicate “real time” with brand Strategy To setup a central digital brand listening station using a range of social media monitoring and analytics tools Tools Primary Tools Bespoke Dashboards Social Media Monitoring Tools Secondary Tools Data analytics engines Result Lots of PR around mission control No case study or published results as yet ©Copyright purple spinnaker Ltd. 2011

15. Customer Customer Service Service Southwest Southwest was also an early adopter of Twitter as a customer communication channel. Southwest want customers to see their “FUN” side through the online channels . Southwest Airlines use Twitter to share news and information about Southwest, inform customers about flight delays or weather issues, and route potential customer service inquiries to appropriate internal team members so they can assist. Southwest Airlines have a blog which brings together communication across multiple social channels and use listening tools to identify key topics which are then passed onto the relevant teams, customer service, PR, Marketing, Product and Services. ©Copyright purple spinnaker Ltd. 2011

16. Customer Customer Service Service Southwest Purpose Southwest been paying careful attention to how their customers interact with and respond to them online, and they’ve decided that being fun and personable (in addition to helpful and informative) is what their customers want from them. Strategy To use social tools, initially Twitter, adding a blog then extending to Facebook to continue listening, responding and informing in a fun and personable way with customers. Tools Initial Tools Twitter Radian6 (SMM and Listening) Current Channels Twitter, Facebook, Youtube & Blog Result Southwest has a reputation for being Fun and Personable ©Copyright purple spinnaker Ltd. 2011

17. Customer Customer Service Service JetBlue JetBlue was also an early adopter of Twitter as a customer communication channel. They now have a multi- discipline team who provide the face of the different JetBlue internal teams. ©Copyright purple spinnaker Ltd. 2011

18. Customer Customer Service Service JetBlue Purpose To broadcast updates on flight services, weather To listen & respond to customer queries, questions & issues. identifying customer questions to answer customer questions asap to direct customer queries to correct internal team to understand key topics of customer conversations engage with customers and brand advocates to enable “real time” engagement with the airline Strategy To provide an online customer service channel for communication Tools Initial Tools (2007) Twitter Current Tools Moved towards multi channel and multi discipline strategy Result Good PR around initial Twitter initiatives Internal “learning” since 2007 Good level of knowledge to assist with new multi channel revenue & communication streams (Facebook booking and loyalty) ©Copyright purple spinnaker Ltd. 2011

19. Changing Changing Business Model Business Starbucks Model ©Copyright purple spinnaker Ltd. 2011

20. Changing Changing Business Model Business Starbucks Model Real World Footprint Starbucks Coffee Quick Facts: Founded by: Howard Schultz Founded in: 1971 First Store: Seattle Number of Stores: 15,000 Number of Countries: 54 Starbucks 5 ways of being: • Be welcoming • Be genuine • Be considerate • Be knowledgeable • Be involved “the Starbucks experience”, Joseph A. Michelli ©Copyright purple spinnaker Ltd. 2011

21. Changing Changing Business Model Business Starbucks Model Starbucks Online Community Global Online Footprint Quick Facts: Starbucks Hosted Communities: MyStarbucksIdea: 107k ideas Public Social Network Followers Facebook: 23.57million Twitter: 1.54 million Flickr: 6,195 Youtube: 9,005 Integrated Social Platform Frappuccino.com: 76k Frappuccinos Frappuccino Public Social Networks Frappuccino FB 7.1m FB followers Frappuccino Twitter 9,153 followers Numbers updated May 2011 ©Copyright purple spinnaker Ltd. 2011

22. Changing Changing Business Model Starbucks Engaged Community Business Starbucks The new loyalty model Model Hosted Communities Branded Public Social Network Supported Communities MyStarbucksIdea: 107k ideas Ideas ARE Implemented: VIE Instant Coffee New Cup sizes • Pico small size • Trenta - supersize ©Copyright purple spinnaker Ltd. 2011

23. Changing Changing Business Model Engaging with & learning Business Starbucks from the Community…. Model Starbucks Hosted Community www.mystarbucksidea.com Starbucks provide an idea platform for their community to share and vote on ideas for Starbucks to investigate and potentially launch. A couple of the implemented and community supported ideas are: adding new coffee cup sizes (pico and trenta in US and Canada) launching Vie instant coffee There are 107,000 ideas currently on the www.mystarbucksidea.com website with other community members voting for each of them. ©Copyright purple spinnaker Ltd. 2011

25. Changing Changing Business Model the results..2008 - 2010 Business Starbucks Model The Numbers…. Operational Improvements The Changing Business Model …. New Model opens other growth opportunities ©Copyright purple spinnaker Ltd. 2011

26. Changing Changing Business Model Business Starbucks Model Purpose Test, trial & review social media initiatives Assess their value to the business Strategy Setup a small team to test, trial and report on learnings Listen to and learn from customers, engage where appropriate Evaluate social initiatives against business results Develop and integrate social into business strategy Tools Initial Tools (2007/8) Blog, Youtube, Facebook, Twitter etc.. Current Tools Facebook, Twitter, Youtube, hosted community, monitoring & listening Result Proven Model for social engagement New product development and business Innovation Direct results to business US$180m from VIA product Integration across all business units Key focus of growth for Starbucks senior executive team ©Copyright purple spinnaker Ltd. 2011

27. New New Business Model Business Giffgaff Model giffgaff is a “sim-only” mobile virtual network which is owned by Telefonica/02. giffgaff is an old Scottish phrase meaning mutual giving or reciprocity which is the basis of social or community business models. giffgaff has been setup by Telefonica/02 as an internal start-up limited company with a new community driven business model with its own independent management team and P&L Initial funding is approximately £2million and the team is 16 people. The goal behind the business is to develop a community which provides its own customer support platform, reducing costs, new business ideas feedback on the business and services ©Copyright purple spinnaker Ltd. 2011

28. New New Business Model Business Giffgaff Model The community is active, however the most activity comes form the support area, where the members provide advice, knowledge and Products support to each other around the products and service. giffgaff products/offers are simple, clear and changed/refined through feedback from the community. Consumers Business Ideas Customer Member Support Acquisition The community support activity vastly reduces the customer support costs and can provide insight into areas of concern and also feeds back into new business ideas. ©Copyright purple spinnaker Ltd. 2011

29. New New Business Model Business Giffgaff Model Purpose Telefonica/02 wanted to trial a new social business model Strategy Create a customer driven business model Focusing on engagement through peer to peer customer support identifying customer questions to answer customer questions asap to direct customer queries to correct internal team to understand key topics of customer conversations engage with customers and brand advocates to enable “real time” engagement with the airline Tools Primary Tools Owned hosted community Listening Platforms Secondary Tools External hosted communities Public Social Networks, Facebook, Twitter Result 2011 – giffgaff recognised for innovation in business and marketing accelerating participation in online communities, especially support ©Copyright purple spinnaker Ltd. 2011

31. Social Strategy Framework Listen Learn from Conversations Who is talking Student needs Where are they talking Agent needs What are they talking about School Positioning Who is listening CEG Positioning Is it positive or negative Competitor Positioning To competitor conversations Are people engaging with CEG ??? Are people engaging about schools/courses programs Are social initiatives working? Social Media Strategy Management Grow Engage Audiences What does success look like? Channels Grow students Topics & Themes Grow Cambridge Education Group Customer Experience Grow schools Employee Engagement Grow ??? Plan, implement Identify business goals Moderate, Manage Identify social measures Review ???? Internal Employee/Colleague Awareness & Education Program ©Copyright purple spinnaker Ltd. 2011

32. Student Acquisition & Alumni Retention Funnel Integrated Student Acquisition Social, SEO, WOM, Affiliates, Adwords…. Students can access service via multiple channels and interest is sparked Students, Parents, Agents Student Clicks on ANY channel to find out more Student/parent joins community Student/parent applies to school Student/parent participates in community Student participates in school community Student builds school networks & joins alumni Student becomes advocate & promotes service ©Copyright purple spinnaker Ltd. 2011

33. Social Strategy Workstreams •Company Guidelines •Roles & Responsibilities Social Business Policy •Internal Skills • Current skill • New Skills for current team/internal training • New hires) •External Partnerships People •Business Operating Model (which teams are responsible for each activity) • Listening Strategy • Social Media Customer Engagement • Digital Brand Management Operational • Real time customer Support Processes • What is the customer value proposition • What is the new online Customer Experience • Create Customer Journeys/Use Cases • Develop Customer Engagement Model Customer • Identify Primary Communication Channels Experience • Listening • Community Management • Mobile Apps (buy, build or partner) • Content (buy, build or partner Tools • Website design & Partners Frequency (no of students signing up for schools) Reach (increase in customers/site visits) Conversion (lookers to bookers) Engagement (flow of communication) Other measures may be identified through project activities Measures ©Copyright purple spinnaker Ltd. 2011

34. julie@purplespinnaker.com +44 7887 644 799 Thank You

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