Título Towards Digital Leadership in Chile
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TOWARDS DIGITAL TÍTULO LEADERSHIP IN CHILE Subtítulo July 2017 Diciembre 2015 Barcelona • Bogota • Buenos Aires • Havana • Lima • Lisbon • Madrid • Mexico City • Miami • New York City • Panama City • Quito • Rio de Janeiro • Sao Paulo Santiago • Santo Domingo • Washington, DC Index Introduction 3 Top 20 Digital Brands 5 Top 20 Brands by Relevance 6 Top 20 Brands by Influence 7 Top 20 Brands for Beliefs 8 Best Practices by Sector 9 Team os Specialists 15 Introduction The arrival of the digital age has completely transformed For this study, we selected 20 brands of the stock communication between people, as well as cultural market index of the Santiago Stock Exchange, which aspects which have had an impact on the way of doing are significant for their production of digital content business and the relationship between businesses and and participation in social media, with a presence in the clients. It is a paradigm shift that has made use of mobile banking, services, retail and wine sectors, among others. technology, which is indispensable for communication, obtaining information and buying and expanding contact It should be noted that the brands selected are not directly networks. In the case of Chile, the Seventh National named in the index, understanding that there are groups Survey on Internet Use and Access (2016), developed by of companies which did not have any digital identity, so Subtel, concluded that there are 12.7 million Internet users those with the greatest digital activity were selected in Chile, with the largest regional development in this depending on the company. area. That is, of every 100 Chilean inhabitants, 76 use the internet and 79.2 percent do so through mobile devices. The study is based on a temporary sample extracted between February 20 and March 20, 2017, so when As for the main activities carried out on the internet, analyzing the study, it is necessary to consider the social media take the lead with 65 percent of the contingency and eventualities that the brands could face preferences, followed by 60 percent for the sending and during this period. receiving of emails. The previous figures reflect how Chile has transformed itself into a highly digitalized country. OUTPUT: RELEVANCE Chileans between the ages of 18 and 45 are the most informed age group, and they communicate and are the The first challenge of digital transformation is the clouding country’s biggest users of e-commerce (banking, online of public communication channels, which are flooded shopping, online bill payments). This data has forced with communication from the producers of new digital companies to adapt to the new needs of their customers/ media. In this context, competition for stakeholders’ focus users, adapt to new services and open up new business time is the initial goal for creating long-term value. opportunities online, in order to maintain their place among their target audiences. In this way, all companies This is where brand relevance represents the output of strive to put themselves at the forefront of digitization. communication, defined by AMEC as: “What is distributed But the question is: where do they begin? and received by audiences.” The relevance therefore, can be measured in terms of visibility (reach) of the contents For several years, the focus was shifting from a purely distributed by the company, through the analytical tools technological perspective, with an emphasis on tools, of its platform in a specific conversation territory. channels and platforms. It was soon discovered that technology alone failed to change the behavior of For this study, we selected the main web assets of each stakeholders. As the digital phenomenon has grown, company, analyzed the impact of their content on the evidence of the importance of communication as an agent main social media over the past six months, and counted of transformation has also grown. the number of pages indexed by Google. As authors, we asked ourselves which were the three main OUT-TAKE: INFLUENCE goals of digital transformation from communication and how brands manage to lead the digital transformation of The second challenge of digital transformation is the communication when it surpasses in relevance (OutPut), empowerment of people in public communication, influence (Out-Take) and beliefs (OutCome) to the through their identity in media and social media. This referents or competitors of their market or industry. is a reality that drives the economy of interpersonal recommendation as a lever for creating shared value for companies. 3 It is at this point that we find the personal influence of to form their own judgment, which is always done in the organizations’ allies in social media such as the out- comparative terms with other referents. Belief metrics take, which the AMEC defines as: “What audiences do conform to measures of assessment (between positive and get from communication.” Influence, therefore, can and negative) collected through opinion surveys or be measured in terms of the interaction (engagement) of through the semantic analysis of opinions on monitoring influencers in a community with brand allies. platforms. For this study, we selected the main profiles of each brand For this study, we analyzed the feeling of the first results on Twitter and Facebook, recording the total number of on Google of each of the brands and the tweets with the interactions, respectively, during the last month (March most reach, in addition to the total number of followers 2017). In addition, we counted the total number of external on the pages of each brand on Facebook. links pointing to the web domain of each brand. OUTCOME: BELIEFS Video 1: Digital Index Chile. Digital brand’s Ranking. The third challenge of digital transformation is the hyper- transparency of brand behaviors, which are permanently monitored by their stakeholders, through social media and other online platforms. This makes the economy of reputation a key element for the generation who like long- term value. To improve these beliefs, brands need to investigate the context in which they are placed by interest groups 4 Top 20 Digital Brands ENTEL AND PARIS (CENCOSUD) LEAD THE RANKING Taking the metrics of this study into account, the OF DIGITAL BRANDS IN CHILE following five brands are the top brands in Chile: Entel and Paris (Cencosud); followed by Ripley and LATAM; The operator stands out for its greater influence in and slightly further down the list, Banco Santander. At networks and the distributor for the relevance of its the bottom of the table, we find five other brands with digital contents. the greatest opportunities for improvement in their digital communication: Isapre Banmédica, Gasco, Viña The goal of leading digital communication in a market San Pedro, Enel Chile and CAP. The main weakness is to achieve three objective goals: positioning more they share focus on the poor visibility of their content content than competitors in networks and search on search engines, which has repercussions on their engines (relevance); generating more interactions than relevance metrics. In addition, both Gasco and Isapre others with followers on social media (influence), and; Banmédica do not have an official Twitter account, so receiving more positive than negative mentions towards their participation on the network is passive. The average the brand, in the main digital environments (beliefs). of the Top 20 Digital Marks is 85 points, a score reached by Copec, surpassed by 4 points by Viña Concha y Toro. Position Brand RelevanceIRT InfluenceIIT BeliefsICT Total 1 Entel 31 55 43 129 2 París (Cencosud) 38 46 41 125 3 Ripley 34 45 38 117 4 LATAM 28 51 36 115 5 Banco Santander 23 45 35 103 6 Falabella 37 31 31 99 7 BCI 28 42 26 96 8 Parque Arauco 19 30 41 90 9 Viña Concha y Toro 30 29 31 90 10 Copec 28 27 31 86 11 CCU 29 31 20 80 12 Banco de Chile 20 30 28 78 13 Aguas Andinas 9 38 25 72 14 COLBUN 15 17 39 71 15 Grupo Security 8 31 28 67 16 CAP 3 22 37 62 17 ENEL Chile 12 24 25 61 18 Viña San Pedro 9 9 41 59 19 Gasco 7 14 33 54 20 Isapre Banmedica 9 13 27 49 5 Top 20 Brands by Relevance THE RETAIL SECTOR (PARIS, FALABELLA AND important: Entel, leader in propagation in social media; RIPLEY) HAVE CONQUERED THE PODIUM OF and Viña Concha Toro, with a good position in search DIGITAL RELEVANCE. engines. The average relevance aspect is 21 points. They are imposed by the dissemination and positioning Among the highest ranked companies, LATAM’s position of their own content on Twitter, Facebook and Google. stands out and, above all, so does Banco Santander’s, in the pack of followers of the most relevant brands The richness in content of the websites of three of for the visibility of their contents in networks and Chile’s leading retail brands (Paris, Falabella and Ripley) search engines. As we will see later, both are among the has been transformed into greater potential visibility highest for their interaction on their networks, but this on networks and search engines than that of its does not imply that their followers share their content competitors in this particular ranking. However, two beyond the platforms of both brands’ own relationship. companies outside the sector are among the five most Position Brand IR11 IR22 IRT 1 París (Cencosud) 19 19 38 2 Falabella 17 20 37 3 Ripley 16 18 34 4 Entel 20 11 31 5 Viña Concha y Toro 18 12 30 6 CCU 15 14 29 7 LATAM 11 17 28 8 BCI 13 15 28 9 Copec 12 16 28 10 Banco Santander 14 9 23 11 Banco de Chile 10 10 20 12 Parque Arauco 6 13 19 13 COLBUN 8 7 15 14 ENEL Chile 9 3 12 15 Aguas Andinas 4 5 9 16 Viña San Pedro 1 8 9 17 Isapre Banmedica 5 4 9 18 Grupo Security 7 1 8 19 Gasco 1 6 7 20 CAP 1 2 3 1 Indicator based o the number of impacts on social media generated by the content of each brand in the last 6 months (October 2016- march 2017), according to Buzzsumo.