Last week we held Social@Ogilvy’s 2nd annual Social Media Matters conference in Hong Kong. Five hundred or so brands, platforms and marketers came together to offer insights from experience in social media. Brands like American Express, Estee Lauder. Nike, Ford, IHG, Philips and more all participated. Thomas Crampton, APAC Director of Social@Ogilvy throws his heart and soul into making a spectacular event.
Scott Monty from Ford kicked off the day and gave everyone an inside view of what his team (which includes our team) has been doing to grow a social brand. I often use a picture of Ford CEO Alan Mulally surrounded by bloggers to make a point about ‘social brands.’ There were plenty of other highlights during the day including our new Global Advocacy Study .
Still, the emotional highlight came at the end when Bethany Mota, aka Macbarbie07, showed up fans in tow. Her simple videos on makeup have snowballed into a rather nerve-wracking YouTube stardom. A simple “let’s have a tweetup” tweet from her when she landed in Hong Kong led to 1500 Hong Kong girls around 13 years-old to storm the event. Shrieks and tears from adoring fans made the marketers nervous and reminded us all of the emotional connections we can all make via social media…and the peculiarities of stardom in the social age.
Here are 5 takeaways from my experience in Hong Kong at Social Media Matters.
- Brands on LINE grow followers faster than anywhere and drive them to buy Shintaro Tabata, Executive Officer at LINE, is understandably bullish on LINE’s business strength. The mobile, sms, voice, video and character-driven emoticons platform has grown fast not just in Japan, its home country, but across the region and in…Spain? That’s right. LINE has over 200 million users worldwide and over 10 million of them are in Spain. Their annual growth rate is over 460%. People send over 7 billion messages a day via the service.
Along with WeChat and WhatsApp, LINE is on a pretty meteoric rise. And brands are taking notice and jumping on board the platform. Mr. Tabata-san eschewed the complex metrics of social media and pointed out that LINE drives people in-store to buy. Lawson’s, the retailer, has over 10M fans on LINE and has driven over 500K (5%) of them into store to buy. That’s pretty powerful.
- Social CRM is as complicated as we think but hugely promising
Lucy McCabe from OgilvyOne shared a real view of social CRM in action. What began as bold theory – how to connect customer and social data to drive sales and advocacy – is now playing out in programs for Nestlé and other brands. Nestlé’s Choa Ma Tuan program in China is a great example. Hannelore Grams from Nestel shared about the community for pregnant moms in China that helps them not only get much-needed information on motherhood but also connects them with ‘sisters’ – other women looking to support peers when true siblings in a one child-state are hard to come by.
More and more marketers are putting hard value on advocacy. That means they can assess the value not just of paying customers but of advocates and the sweet spot of customers who are advocates. Still, combining data sources like this and ending up with a cost effective way to drive advocacy and re-purchase is complex. More to come.
- Brands who put a value against real advocacy have an edge
Barbara Iliopoulos from IHG knows how to value advocacy. She knows that positive mentions and reviews online lead to a boost in revenue – an increase of positive sentiment by 1% in hotel reviews equals 1.42% increase in rooms revenue. She knows that guests pay 20% more for hotels with 4-5 star reviews. Hard numbers that prove the value of advocacy. I love them. They support our own Global Advocacy Study which we revealed at the event
- Brands who have clear business-related metrics always seem more serene
Both American Express and Estee Lauder have a refreshingly simple approach to strategy. They simply stay focused on what drives hard business metrics. For Carl Barkey, Global Head of Social Media and Customer Experience, that means driving brand re-appraisal, acquisition of new card members, and increasing spend.Pierre Abadie Lacourtoisie, Regional Director, Digital and Online, Estée Lauder had a similar message about how social builds their brand – balancing the needs of luxury and exclusivity with the realities of a more open, accessible platform.
Despite this tension and the obvious tension of those of us proving the value of social every day, project-by-project, these two guys seemed more relaxed knowing their efforts were aligned with accepted business goals.
- China is multi-SNS and multi-time
If you look at daily usage between PC and mobile and across at least the top 3 social services – Sina Weibo, RenRen and WeChat – you quickly see the need from a multi-platform approach. People may start the day on Weibo via smartphone but they shift to RenRen via PC as the day continues.WeChat usage perks up midday.
Alvin Cheng CMO from RenRen believes in cross-screen integration and in programming for these times of day. He knows from his own research that not only do Chinese internet users use different devices and sns platforms at different times, they will also use their smartphones sitting in front of their PC like the Google Chrome implementation around World Wide Maze.
Day 3 of CES kicks off but you might be wondering — what about the key takeaways from day 2? We got you covered.
Yesterday we created a presentation recapping some of the highlights from day 1. The day before John Bell, Global Managing Director, Social@Ogilvy, shared a coverage guide (along with another post: “Filtering CES 2013: This Marketer’s Guide to What Matters”).
That being said, below is our day 2 recap presentation. For more updates, check out our team on the ground at OgilvyatCES2013.com (or @OgilvyatCES on Twitter).
In my most recent post here on Social@Ogilvy, I discussed how social care must evolve. In doing so, I jumped over where we are and the current state of social care. Luckily, I had the pleasure of chairing several panels at a recent social care conference. Diverse brands were represented, from technology, banking and CPG but a few key trends emerged and I thought it would interesting to share them as they provide a great snapshot into where we are as brands and how we have — or more often have not — truly evolved care to keep up with increased customer expectations.
- Even if originally set up by Marketing, Social Care is increasingly delivered by customer care operations teams
- Social Care teams are typically reactive on two levels
- Customers were already in emerging channels, social care met them there after the fact
- Social Care current practices adhere to a speak-when-spoken-to playbook
- Social Care teams struggle to prove ROI
- Marketing and Care teams are separate and distinct
Let’s take a deeper dive into each of these:
- Social Customer Care is increasingly run by purely customer service teams— In the past it was often the case that care teams were set up by an Agency, Corporate Communications or PR team at a brand. However, we are a few years in, and migrations have occurred to the operations teams who are now servicing social as another channel. The resources dedicated to these teams include some of the best people in the customer service organization but they are now in need of social response and reporting tools that can scale. Perhaps most importantly, they need an elevated seat at the customer experience table so they can represent the voice of the customer internally.
- Speak when spoke to — Most brand customer service teams are reactive, addressing questions aimed squarely at their brand. Proactive contacts are typically regarded as being within the purview of the Marketing team or its Agency. Social Care solves problems while Marketing deals with promotions and engagments. It is quite possible then that a gap exists between the two communication streams, i.e. who handles a customer who mentions a promotion but has no explicit question. Does anyone open the door to a conversation with that customer? Current best practices seem to dictate “No.”
- ROI remains elusive — A customer service person can’t prove that fielding an issue via social media prevents a call to the contact center. Perhaps more importantly, in keeping with #2 above, issues reach social care only after they have bubbled over the top of the traditional servicing channels. This is very much in keeping with the genesis of social care — as a damage control valve that was quickly grafted onto the organization.
- Marketing? Service? Or something new? — For several years now, a few phrases have flown around concerning where customer service needs to move in light of social media. I am sure most of you are familiar with “Customer Service is the new marketing” phrase which was popularized by the folks at Get Satisfaction a few years go. Increasingly, I am hearing now that customer service must build a bridge to marketing. All this may be missing the point, since both ideas imply that customer service and marketing can remain static and simply work better together. Instead, we need a new organization, a hybrid between marketing and care.
In short, what if it the bridge is the thing? The thing that connects the two teams is the new model under which we will be doing business. As marketers and agencies who typically push the brands to adapt and meet new expectations, it’s up to us to determine what this new reality might look like for our clients.
Perhaps it’s easiest to think of it this way. As brands, we’ve poured technology, resources and money into the customer service pot — and yet it’s still boiling over. Maybe it’s time to stop trying to fix the old model, or worse, only deal with the angry customers who boil over. Instead, it’s time to do things differently and embrace a model that uses social principles as the underpinning of a flexible care team closely aligned with the brand. That’s real progress.
We have been hearing a lot about the idea of Social CRM or sCRM as the next big wave in the customer relationship lifecycle. As more and more of us move our interactions not only with each other, but with brands to the online arena, many brands are scrambling to put in place the people and processes required to engage with today’s social customer.
I recently read that the social customer is the one who owns the relationship, and that it is the job of the brand to earn the customer’s trust. While this may not seem like a far departure from traditional customer relationship management (CRM), the process of managing, massaging and nurturing these relationships has shifted dramatically.
So what is Social CRM and how does it differ from Traditional CRM?
Continue reading Not Your Father’s CRM -This One’s Social!