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TOWARDS DIGITAL TÍTULO LEADERSHIP IN 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 • 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 , 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 () 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: 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 .

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 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. 2 Indicator based on the number of results of the brand domain as indexed by Google, as of April 16th of 2017.

6 Top 20 Brands by Influence

THE LEADERS OF THE DIGITAL RANKING AGREE ON They concentrate their results on managing interactions ENHANCING THEIR INFLUENCE ON SOCIAL MEDIA with followers of their own channels on Facebook and Twitter. The same five brands that lead this digital ranking do so in the variable relative to influence or engagement This coincidence may indicate a preference for digital with their followers. However, this is not the case in the strategists to prioritize interaction with their followers in relevance or visibility variable, or in the reputation or brand channels (community management), over content belief, where the top five change, except for Entel and propagation, through content marketing tactics, to Paris (Cenco sud) which are always present among the improve their digital positioning, and managing positive best on the list in all variables. The average influence ratings through marketing intelligence, to improve their aspect is 32 points. brand reputation.

3 4 5 Position Brand II1II15 II2II26 II3II37 IITIIT 1 Entel 20 1818 1717 55 2 LATAM 1818 1919 1414 51 3 París (Cencosud) 1717 1010 1919 46 4 Ripley 1111 1616 1818 45 5 Banco Santander 1919 1313 1313 45 6 BCI 1313 1414 1515 42 7 Aguas Andinas 2 20 1616 38 8 Falabella 7 4 20 31 9 CCU 1212 9 1010 31 10 Grupo Security 1515 1111 5 31 11 Banco de Chile 4 1515 1111 30 12 Parque Arauco 9 1212 9 30 13 Viña Concha y Toro 1414 8 7 29 14 Copec 8 7 1212 27 15 ENEL Chile 11 1717 6 24 16 CAP 1616 3 3 22 17 COLBUN 1010 5 2 17 18 Gasco 5 11 8 14 19 Isapre Banmedica 3 6 4 13 20 Viña San Pedro 6 2 11 9

3 Indicator based on the number of external links that redirect to the main domain of each brand as of March 14th of 2017, according to Buzzsumo. 4 Indicator based on the number of interactions registered on the main Twitter account of each brand in the last month (March 2017), according to AnaliTICPRO. 5 Indicator based in the number of interactions registered in the company’s main Facebook page in the last month (March 2017), according to Octosync.

7 Top 20 Brands for Beliefs

REPUTATION PROVIDES OPPORTUNITIES TO LESS This circumstance indicates the growth potential that RELEVANT AND INFLUENTIAL BRANDS is offered to the best rated brands online, to the extent that they are able to capitalize on this value in the Favorable beliefs include Parque Arauco, Viña San form of propagation of relevant digital content and Pedro and COLBUN at the top of the list. interaction with influential users in the networks.

While the negative mentions to their brands take And conversely, for those with loss of reputational LATAM and Banco Santander out of the top five in value, it is a managerial challenge to optimize that terms of reputation, other companies located in the balance, based on an intelligent active listening of the middle or low positions of the table by influence and digital platforms in which they participate. relevance, such as Parque Arauco, Viña San Pedro and COLBUN, manage to rise to the top of the belief ranking thanks to the positive balance of their mentions on Google and Twitter.

Position Brand IC186 IC2IC297 IC3IC3108 ICT 1 Entel 17 10 16 43 2 París (Cencosud) 20 3 18 41 2 Parque Arauco 17 10 14 41 2 Viña San Pedro 20 20 1 41 3 COLBUN 17 20 2 39 4 Ripley 11 10 17 38 5 CAP 17 17 3 37 6 LATAM 6 10 20 36 7 Banco Santander 14 10 11 35 8 Gasco 14 10 9 33 9 Falabella 9 3 19 31 9 Viña Concha y Toro 3 13 15 31 9 Copec 11 7 13 31 10 Grupo Security 14 10 4 28 10 Banco de Chile 6 10 12 28 11 Isapre Banmedica 17 3 7 27 12 BCI 9 7 10 26 13 Aguas Andinas 17 3 5 25 13 ENEL Chile 9 10 6 25 14 CCU 9 3 8 20

6 Indicator proportional to the balance of positive mentions regarding the brand in the first Google results. 7 Indicator proportional to the balance of positive most influential mentions regarding the brand on Twitter in the last month (March 2017), according to AnaliTICPRO. 8 Indicator based on the total number of followers registered in the main pages of each brand on Facebook as of April 21th 2017, according to Octosync.

8 Best Practices by Sector

BANKING SECTOR Figure 1. Relevance. 21 The banking sector stands out above the average of the ranking for its results in the variable influence, with 20 stand-out exponents such as Banco Santander and Grupo Security. A good use of social media as a means Banco Santander 23 of relationship with the customer, for the provision of services, is noticed. BCI 28

In terms of content positioning in networks and search engines, it is almost above the average of the study. At Banco de Chile 20 the same time, it presents clear areas of improvement in regards of beliefs, for which all the analyzed brands, Grupo Security 8 except Banco Santander, score below the average reputation ranking. 0 5 10 15 20 25 30

Figure 2. Influence. 32 35

Banco Santander 55

BCI 29 A good use of social media as a Banco de Chile 14 means of relationship with the customer, for the provision of Grupo Security 45 services, is noticed 0 10 20 30 40 50 60

Figure 3. Beliefs. 33 29

Banco Santander 28

BCI 28

Banco de Chile 35

Ranking average Grupo Security 26 Sector average 0 5 10 15 20 25 30 35

9 WINE SECTOR Figure 4. Relevance. 21 The results of the wine sector are affected by the 20 disparate behavior of the two brands analyzed in this study. On the one hand, Viña Concha y Toro, with a sum Viña Concha 30 of 90 points, stands five above the average of the brands; y Toro while Viña San Pedro, without a presence on Facebook, has a total of 59 points, 26 fewer. The first stands out Viña San Pedro 9 because of the relevance of its content, due to external links to its corporate website whilst the latter does so 0 5 10 15 20 25 30 by the positive balance of the mentions it receives on networks and search engines. However, both brands show the same lack of influence on social media. It is striking that their current online communities Figure 5. Influence. are relatively small–made up of foreign and English- 32 speaking users. 19

Viña Concha y Toro 29

Viña San Pedro 9

0 5 10 15 20 25 30 35 It is striking that their current Figure 6. Beliefs. online communities are relatively 33 small–made up of foreign and 36 English-speaking users Viña Concha y Toro 31

Viña San Pedro 41

0 10 20 30 40 50

Ranking average

Sector average

10 SERVICES SECTOR Figure 7. Relevance. 21 The only variable in which the services sector presents 17 results above the average of the study is in the influence Entel 31 category, by the exceptional number of interactions it generates on social media. However, the sector average is three points below the ranking average in the other Gasco 7 two variables–relevance and beliefs. The brand with the greatest opportunities for improvement is ENEL Chile, with below average indicators in all aspects. While the ENEL Chile 12 best-performing brand in the industry is the leader in the ranking–telecom operator Entel. Aguas Andinas 9

Copec 28

0 5 10 15 20 25 30 35

Figure 8. Influence. 32 32 Entel

The brand with the greatest Gasco 14 opportunities for improvement is ENEL Chile, with below average ENEL Chile 24 indicators in all aspects Aguas Andinas 38

Copec 27

0 10 20 30 40 50 60

Figure 9. Beliefs. 33 30 Entel 43

Gasco 33

ENEL Chile 25

Aguas Andinas 25

Ranking average Copec 31 Sector average 0 10 20 30 40 50

11 RETAIL SECTOR Figure 10. Relevance. 21 The retail sector represents the counterpoint of the 36 corporate sector in this ranking in terms of digital efficiency. Their indicators are well above the average París (Cencosud) 38 of the study in the variables of relevance and influence, demonstrating the dynamism of their participation in social media and effectiveness of the positioning Ripley 34 of their web contents. Paris (Cencosud) stands out for these reasons. The sector’s beliefs index also surpasses Falabella 37 the average of the ranking, but a detailed reading warns us about the pressure that brands can suffer from 0 5 10 15 20 25 30 35 40 negative mentions related to complaints or service complaints. Figure 11. Influence. 32 41

París (Cencosud) 46

Their indicators are well above Ripley 45 the average of the study in the variables of relevance and Falabella 31 influence, demonstrating the 0 10 20 30 40 50 dynamism of their participation in social media and effectiveness Figure 12. Beliefs. of the positioning of their web 33 37 contents París (Cencosud) 41

Ripley 38

Falabella 31

0 10 20 30 40 50

Ranking average

Sector average

12 CORPORATE SECTOR Figure 13. Relevance. 21 17 The corporate sector is the most deficient in terms of results of the entire ranking. All variables are below average, although only by one point in the case of the Colbún 15 belief indicator due to the better positioning of Colbún and CAP in this regard. Undoubtedly, the main area of CCU 29 improvement of the sector is in the ability to interact with users in social media, as evidenced by the fact that all the brands analyzed are below the average of the CAP 3 study in the influence variable. 0 5 10 15 20 25 30

Figure 14. Influence. 32 23

Colbún 17

CCU 31 All variables are below average, although only by one point in CAP 22 the case of the belief indicator 0 5 10 15 20 25 30 35

Figure 15. Beliefs. 33 32

Colbún 39

CCU 22

CAP 37

0 5 10 15 20 25 30 35 40

Ranking average

Sector average

13 OTHERS Figure 16. Relevance. 21 It can be seen that the three brands analyzed in the ranking without other sector referents, Parque Arauco (real estate), Isapre Banmédica (health) and LATAM Parque Arauco 41 (airlines) have a very similar behavior in terms of the results. All three are above average in the ‘relevance’ Isapre Banmédica 27 variable, and below the average in ‘influence’ and above all, ‘beliefs’ variables. It is true that there is a notable distance, however, between the brand with the lowest LATAM 36 score of the study, Isapre Banmédica, and one of the best positioned in the ranking–the airline LATAM. 0 10 20 30 40 50

Figure 17. Influence. 32

Parque Arauco 30

Isapre Banmédica 13

It can be seen that the three LATAM 31 brands analyzed in the ranking 0 5 10 15 20 25 30 35 without other sector referents [...] have a very similar behavior Figure 18. Beliefs. in terms of the results 33

Parque Arauco 19

Isapre Banmédica 9

LATAM 28

0 5 10 15 20 25 30 35

Ranking average

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LLORENTE & CUENCA currently has offices in , Brazil (São Paulo and Rio de Janeiro), Colombia, Chile, Ecuador, Spain (Madrid and Barcelona), the United States (Miami, New York, and Washington DC), Mexico, Panama, Peru, Portugal, and the Dominican Republic. It also operates in Cuba and offers its services through affiliates in Bolivia, Paraguay, Uruguay, Venezuela, Costa Rica, Guatemala, Honduras, El Salvador and Nicaragua.

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Team of Specialists

Iván Pino Senior Director of the Digital Area at LLORENTE & CUENCA [email protected]

Néstor Leal Director of the Digital Area at LLORENTE & CUENCA Chile [email protected]

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