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Business Case For Social Media 2008

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Information about Business Case For Social Media 2008
Business & Mgmt

Published on July 26, 2008

Author: stevelatham

Source: slideshare.net

Description

"The Business Case for Social Media" provides the business reasons for interacting with audiences and embracing social media.
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The Business Case for Social Media Steve Latham July 25, 2008

Steve Latham

July 25, 2008

Welcome to Social Media! What the #*%&!# ???

My goals for today… Provide some useful data points Explain WHY social media should matter to you Explain how to measure value from social media Present a social media case study If that doesn’t work… I’ll try to impress you with some cool screen shots (but they won’t be as cool as the Macs)

Provide some useful data points

Explain WHY social media should matter to you

Explain how to measure value from social media

Present a social media case study

If that doesn’t work… I’ll try to impress you with some cool screen shots (but they won’t be as cool as the Macs)

Consumer Behavior is Changing… Web accounts for >30% of media time (1) Online is becoming the medium of choice #1 medium among under 30 (2) 15 million seniors online (growing fast) 50% of online time = “communitainment” Community, Interaction, Entertainment Enabled by Social Media (1) Credit Suisse, 2006 (2) Forrester 2006 We’re #2!

Web accounts for >30% of media time (1)

Online is becoming the medium of choice

#1 medium among under 30 (2)

15 million seniors online (growing fast)

50% of online time = “communitainment”

Community, Interaction, Entertainment

Enabled by Social Media

(1) Credit Suisse, 2006

(2) Forrester 2006

Internet Usage Favors Social Media Watch Internet (streaming video) Buy or sell products from other consumers Read a blog Comment or forward online ad to someone Submit a rating or review of a product or service. Use social networking sites Publish a blog or personal journal Upload video you created to Internet 34% 10% 7% 20% 27% 26% 29% 31% Source: Forrester’s NACTAS Q3 2006 Media & Marketing Online Survey Social Media is platform for: 34% watching video 31% buying and selling online 26% submitting a rating 7% uploading a video % reflects all online users

Social Media is platform for:

34% watching video

31% buying and selling online

26% submitting a rating

7% uploading a video

Social Media is Here to Stay Social Media platforms are growing quickly

Social Media platforms are growing quickly

Threat or Opportunity? Social media  giving up control While some are threatened… … Others are excited! Crisis = Danger + Opportunity (1) Savvy marketers are embracing the new paradigm "We've learned that the more in control we are, the more out of touch we are with our customers." - A.G. Lafley, CEO of P&G on how the consumer is in control of media and advertising consumption (1) The two characters for Weiji or “Crisis” in Mandarin are often said to represent “danger” and “opportunity.” Chinese dispute the translation.

Social media  giving up control

While some are threatened…

… Others are excited!

Crisis = Danger + Opportunity (1)

Savvy marketers are embracing the new paradigm

1. Sales! Customers are swayed (but not by you) 90% of consumers seek advice before making a purchase 1 in 3 who read reviews rely on them for purchase decisions Ratings / reviews in e-commerce sites produced 15-100% lift 5 Reasons to Embrace Social Media 83% 60% 52% 63% 69% 75% Opinion of friend or acquaintance Review in newspaper, magazine or TV Information on the manufacturer’s Web site A review by a known expert Consumer reviews on a retailer’s site Consumer reviews by users of a content site Source: Forrester’s NACTAS Q3 2006 Media & Marketing Online Survey. * Trust in Peers Trumps All Others

1. Sales! Customers are swayed (but not by you)

90% of consumers seek advice before making a purchase

1 in 3 who read reviews rely on them for purchase decisions

Ratings / reviews in e-commerce sites produced 15-100% lift

2. UGC participants are better customers (1) Post readers: 30% more likely to purchase Contributors: 80% more likely to purchase Have higher loyalty and advocacy 3. You are already Involved in Social Media Discussions about your brand are already happening If you participate, you can shape outcomes CoAir example: http://flyertalk.com/forum/showthread.php?t =786742 5 Reasons to Embrace Social Media (1) Coremetrics study 2008

2. UGC participants are better customers (1)

Post readers: 30% more likely to purchase

Contributors: 80% more likely to purchase

Have higher loyalty and advocacy

3. You are already Involved in Social Media

Discussions about your brand are already happening

If you participate, you can shape outcomes

CoAir example: http://flyertalk.com/forum/showthread.php?t =786742

5 Reasons to Embrace Social Media 4. Strengthen your brand & culture Fosters culture of transparency and trust (and coolness!) Adds progressive element to your brand 5. Enhance communications Community relations Investor relations Crisis / corporate communications

4. Strengthen your brand & culture

Fosters culture of transparency and trust (and coolness!)

Adds progressive element to your brand

5. Enhance communications

Community relations

Investor relations

Crisis / corporate communications

How Do We Value Engagement? Determine how Actions  Intent Forecast how Intent  $$$ Forecast the % that will buy at each stage Do the math and apply across each set of actions Use common sense to normalize results Indicates preference Participation Indicates loyalty Tell A Friend Indicates action Contribute Content Indicates consideration Registrations Indicates awareness Visits Value Action

Determine how Actions  Intent

Forecast how Intent  $$$

Forecast the % that will buy at each stage

Do the math and apply across each set of actions

Use common sense to normalize results

Case Study Client: Stage Stores Audiences : female teens in underserved markets Objective: drive in-store purchases Strategy: back-to-school social networking site Blog Comments

Client: Stage Stores

Audiences : female teens in underserved markets

Objective: drive in-store purchases

Strategy: back-to-school social networking site

Campaign Results Significant traffic to the site 25,000 visits in 6 weeks NO AD BUDGET Deep level of engagement Registrations (20% of visitors) Blog reviews (25% of visitors) Comments / Postings (100+) Compelling Value 500% ROI (based on npv) 8,000 opt-in emails Feedback and validation

Significant traffic to the site

25,000 visits in 6 weeks

NO AD BUDGET

Deep level of engagement

Registrations (20% of visitors)

Blog reviews (25% of visitors)

Comments / Postings (100+)

Compelling Value

500% ROI (based on npv)

8,000 opt-in emails

Feedback and validation

In Closing… Social media is not the holy grail or a panacea for all ills… … but it is a powerful force that WILL impact your business Take a pragmatic approach that incorporates: Strategy Analytical rigor Creativity Common sense Let’s stay in touch! Attend www.OnlineMarketingSummit.com Check out our blog http://blog.spurinteractive.com Join me on Facebook and LinkedIn Email me [email_address]

Social media is not the holy grail or a panacea for all ills…

… but it is a powerful force that WILL impact your business

Take a pragmatic approach that incorporates:

Strategy

Analytical rigor

Creativity

Common sense

Let’s stay in touch!

Attend www.OnlineMarketingSummit.com

Check out our blog http://blog.spurinteractive.com

Join me on Facebook and LinkedIn

Email me [email_address]

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