American Academy of AWARD RECIPIENT

Best practices for management

By Keith Quesenberry and Michael Coolsen

With strategic partner

HOW TO INTEGRATE SOCIAL MEDIA INTO YOUR STRATEGY

FIVE STEPS FOR CONTENTS INTRODUCTION 3

ICM METHOD GREATER SOCIAL MEDIA RECOMMENDATIONS 7 - ICM METHOD 1: Social-Media Integration INTEGRATION: BEST Through Research 7 - ICM METHOD 2: Social-Media Integration PRACTICES FOR INTEGRATED Through Crowdsourcing 11 - ICM METHOD 3: Social-Media Integration COMMUNICATIONS Through Branded Content 13 - ICM METHOD 4: Social-Media Integration MANAGEMENT Through Customer Evangelism 17 - ICM METHOD 5: Social-Media Integration Through Customer Service 19

CONCLUSION 23 Practical methods for successfully By Keith A. Quesenberry and REFERENCES 24 listening to and engaging with the Michael K. Coolsen empowered consumer

The increasing importance of social media and the rising power of the consumer voice have both affected the discipline and “CONVERSATIONS practice of marketing. Today, consumer-generated content can AMONG THE attract millions of impressions in mere days and coverage by major PowerPoint slides of charts news outlets. Until recently, only corporations or large citizens MEMBERS OF and infographics featured in groups could buy this kind of exposure. With the increasing adop- this report are available for buyers tion of web-enabled phones and tablets, social conversation will YOUR MARKET- to download. Go to AdAge.com/slides only spread faster. This is a problem for marketers and advertisers who still practice marketing from a traditional control model. PLACE HAPPEN Business author Seth Godin (2005) summed up this dilemma: This document and information contained therein are WHETHER YOU the copyrighted property of Crain Communications “Conversations among the members of your marketplace happen Inc. and Advertising Age (Copyright 2013) and are for your personal, noncommercial use only. You whether you like it or not.” The growth of social media has dramat- LIKE IT OR NOT” may not reproduce, display on a website, distribute, sell or republish this document, or the information ically shifted influence from mass media to personal communica- contained therein, without the prior written consent of Advertising Age. Copyright 2013 by Crain tion. Consequently, managers need to adjust their perspec- — Seth Godin Communications Inc. All rights reserved. tives from a strict, top-down strategy to a more participative and

ADVERTISING AGE MAY 20, 2013 · 3 HOW TO INTEGRATE SOCIAL MEDIA INTO YOUR

interactive one (de Chernatony and Christodoulides, 2004). not caught up to social-media integration (“The CMO What follows is a summary of recent and relevant research and Challenge,” 2011). Despite feeling unprepared for digital integra- case studies involving integration of social media into business tion, marketers are increasing digital efforts. In the pie chart operations and a new framework from which a marketer can below (left), you can see the results of an Advertiser Perceptions approach integrated marketing campaigns. These are practical survey that found 59% of digital decision makers said they methods for successfully listening to and engaging with the would move forward with plans to increase social-media ad empowered consumer. From small businesses to large corpora- spending in 2012, compared with just 4% who said they would tions, these best practices can provide a firm foundation that decrease spending (Del Rey, 2012). Marketers know social organizations can use to survive and thrive in the intensely dynam- media is important and plan to increase spending, but they also ic environment. admit to knowing very little when it comes to successfully inte- grating social efforts into traditional marketing plans. KNOWING IS HALF THE BATTLE To succeed at social-media integration, managers must first Marketers know social-media integration is important to realize that they need to let go of an old model of marketing future success, but many are still experimenting with how to message control. Empowered consumers generating and shar- implement it into their current efforts. A recent online survey of ing their own brand content do not fit neatly into current mod- 265 U.S. marketing directors by Kelton Research found that 68% els of integrated marketing communications (Ewing, 2009). consider their companies behind the curve in digital and inter- How do we adjust? It begins with a shift in marketing practice. active media integration, and another 71% indicated they have We have seen such a dramatic shift before. A previous advance in marketing thinking was the rise of integrated marketing com- munications (IMC). IMC recognized the need to integrate mes- sages for consistency across traditional media channels—a MOST DIGITAL DECISION MAKERS PLANNED TO change in the way managers thought about marketing. This practice arose in part as a way to combat the proliferation of INCREASE SOCIAL-MEDIA AD SPENDING IN 2012 media clutter and to build awareness in the face of decreasing mass-media channels (Graca, 2010). Individual communica- Marketers know social media is important and planned to tions touch points were now managed together in this new prac- spend more but admit to not knowing how to integrate efforts tice for consistency and greater impact. But social media is not just another organization-controlled consumer touch point. PLAN TO The consumers are now creating the communications. Today, DECREASE integration of social media changes the practice of IMC, because SPENDING traditional IMC practices cannot account adequately for the 4% new rise in consumer-generated media. The original idea behind IMC was to make messages consistent across areas that an organization could control. In the current social-media landscape, marketers must now do more than create consistent marketing messages pushed out to consumers. The new reality requires integration of both com- 37% 59% pany-generated messages and consumer-generated communi- cations through shared listening and engagement to create one cohesive marketing strategy. Social media creates conversations with consumers rather than one-sided brand messages (Hennig- Thurau et al., 2010). This requires interaction and integration of all information between company and consumer. It also goes beyond communications to impact many other areas of busi- PLAN TO PLAN TO ness operations such as product development, customer serv- MAINTAIN INCREASE ice and human resources. SPENDING SPENDING HOW DID WE GET HERE? Source: “Digital Landscape Report.” Advertiser Perceptions, 2012. Retrieved Dec. 21, Over the past two decades, the advertising and marketing 2012, from http://www.advertiserperceptions.com/site-map/digital-landscape-report/ industry has seen dramatic changes within two major paradigm shifts. First was the shift to integration that spawned the prac-

4 · MAY 20, 2013 ADVERTISING AGE HOW TO INTEGRATE SOCIAL MEDIA INTO YOUR MARKETING STRATEGY

CONSUMERS TRUST OPINIONS POSTED ONLINE OVER ADVERTISING

Consumers’ reliance on word-of-mouth in the decision-making process has increased significantly in the last few years

Recommendations from people known 90%

Consumer opinions posted online 70%

Brand websites 70%

Editorial content 69%

Brand sponsorships 64%

TV 62%

Newspaper 61%

Magazines 59%

Billboards/outdoor advertising 55%

Radio 55%

Emails signed up for 54%

Ads before movies 52%

Search-engine result ads 41%

Online video ads 37% Source: “Global Advertising: Consumers Trust Real Friends and Virtual Online banner ads 33% Strangers the Most.” Nielsenwire, July 2009. Retrieved March 3, 2012, from http://blog.nielsen.com/nielsenwire/consumer/global-advertising-consumers- trust-real-friends-and-virtual-strangers-the-most/ Mobile-phone text ads 24% 0 100

tice of integrated marketing communications. One sign of the Numerous signs indicate that we are moving beyond inte- adoption of IMC came in a 2009 Advertising Age article that gration toward engagement. The IMC trend was seen in the announced the age of the ad was over. “Cannes Swept by PR, job market as early as 2005 when The Wall Street Journal Integrated, Internet Winners” explained how the famous adver- reported that integrated marketing was the focus of most job tising went to an ad made not for TV but for the internet. searches for advertising agency executives (“Ad Agencies' Signaling the importance of earned-media integration, a Most Wanted,” 2008). However six years later, the demand tourism campaign won a PR Grand Prix and top prizes in the shifted. In 2011, ClickZ reported that the two boom job areas direct and cyber categories. David Lubars, president of Cannes’ were social media and web analytics. Both saw massive film and press juries, gave a glimpse into the second paradigm growth and salary increases. However, now it is the compa- shift by saying, "The way the world is heading is voluntary nies themselves, and not their advertising agencies, that are engagement” (Wentz, 2009). driving demand (Langwith, 2012).

ADVERTISING AGE MAY 20, 2013 · 5 HOW TO INTEGRATE SOCIAL MEDIA INTO YOUR MARKETING STRATEGY

WHY SUCH A FOCUS ON SOCIAL MEDIA? why business operations are an essential part of social-media The consumer has never had such a powerful voice. In integration. Negative customer experiences translate into nega- 2009, Nielsen revealed that 90% of online consumers trust rec- tive social influence, and positive customer experiences ommendations from people they know and 70% trust become positive social influence. unknown users, whereas trust in traditional advertising ranges from only 62% for TV to only 33% for banner ads. The chart on WHEN PUSH COMES TO PULL page 5 displays the degree of trust for all forms of advertising. Social media cannot be ignored, nor can it be directly con- Jonathan Carson of the Nielsen Company summed up the trolled. The practice of IMC significantly improved marketing report: “The explosion in consumer-generated media over the efforts, but marketers have lost their tight rein on brand mes- last couple of years means consumers’ reliance on word-of- sages pushed out through one-direction channels. Mass com- mouth in the decision-making process has increased signifi- munication is no longer a one-way street traveled by the highest cantly” (Global Advertising, 2009). bidder. As Heinonen (2011) points out in a Journal of Consumer One example of the power of consumer voice is “United Behavior study, “Companies are now challenged by the input of Breaks Guitars.” In 2006, a disgruntled customer used YouTube individuals traditionally seen as consumers … the role of user- and to spread a music video about United Airlines’ mis- generated content in directing consumer behavior reduces the handling of his $3,500 guitar and its refusal to compensate him. influence of traditional marketing communications.” Like it or Within one week, the video received 3 million views (12.5 mil- not, consumers are now co-creators of , so listening and lion by 2012) and coverage in media such as CNN, The Wall engagement are the new tools for a company’s success. Street Journal, BBC and “CBS This Morning” (Deighton and Burmann (2010) called this “user-generated branding,” but Kornfeld, 2010). Fast Company reported that the musician, we argue that this is even bigger than a simple marketing term. Dave Carroll, contacted United for nine months with calls and This fundamental change in thinking can be thought as more of emails, but only after the video’s success and a drop in United’s a shift from IMC (integrated marketing communications) to stock price of 10% did the company try to make amends what we now label ICM (integrated communications manage- (Sawhney, 2009). For many companies and consumers, social- ment). The difference may seem subtle, but the consequences media integration is no longer a choice but a means to an are often huge. Acknowledging the shift in power to the con- important end. sumer’s voice and implementing plans to listen and engage that consumer is what companies that experienced situations akin HOW POWERFUL IS THE CONSUMER VOICE? to the one at United Airlines have failed to do. Forrester Research reports that consumers create 500 bil- Smith (2012) in the Journal of Communication Management lion social-media product and service influence impressions on got closer to the reality of this environment when he suggested a one another annually (Bernoff, 2010). In other words, they talk more organic integration of communications through self- a lot about brands, products and services and are influencing initiative, from the bottom of the organization up. But even the purchase decisions. And this social brand talk is powerful. concept of a more organic integration of communications focus- A recent study in the Journal of found es only on internal relationships and collaboration between that purchase decisions can be influenced by others’ opinions employees and management. ICM is an inherently different and that increased volume of positive online word-of-mouth mind-set. Here, the marketer manages and integrates all related produces increased sales impact (Chen, Wang and Xie, 2011). communications, whether brand-created or consumer-generat- This influence is happening through social-media channels such ed, through two-way conversations rather than through one- as , MySpace, Twitter, LinkedIn, ratings and reviews, sided company control. ICM thinking also goes further to include discussion forums and (Dybwad, 2010). areas like research, product development and customer service. In Social Media Marketing: An Hour a Day, Dave Evans (2012) In this model, companies become a hub for the constant calls this consumer influence process the social feedback cycle. flow of brand discussion as they facilitate, monitor and leverage Social-media conversation is so powerful because it has the consumer buzz and integrate consumer thinking into other unique ability to influence the consideration phase of the tradi- organizational activities. Marketing can take the lead, but goes tional marketing purchase funnel in the form of social feedback. beyond to include other business units. The latest research into A TV ad may generate awareness, but when consumers are real- electronic word-of-mouth communication (eWOM) suggests ly contemplating a purchase, they go to the internet to see what that it is seen as a reliable source of information, significantly others think. affects the perceived value of a firm’s offering and has a direct This is where they see post-purchase consumers talking relationship with loyalty intentions (Gruen, Osmonbekov and about the product, and this talk carries a lot of clout compared Czaplewski, 2012). Inclusion of the consumer voice builds loyal- with marketing’s traditional point-of-purchase efforts. This is ty, and in social media, loyalty is highly contagious.

6 · MAY 20, 2013 ADVERTISING AGE HOW TO INTEGRATE SOCIAL MEDIA INTO YOUR MARKETING STRATEGY ICM METHOD RECOMMENDATIONS

Start thinking like an integrated communications manager who knows how to participate in social media

More than a decade ago, best-selling book The Cluetrain more than $10 billion each year on consumer research, yet the Manifesto reminded us that markets are conversations—human- techniques typically used are more than three decades old. to-human conversations, that is. These conversations used to Marketers continue to rely heavily on focus groups and cus- happen in a physical marketplace but now occur on the internet tomer surveys despite declining customer participation and (Levine et al., 2000). It is time that we return to that market- long turnaround times (“Listening to the Online Voice of the place perspective that was built on social relationships. What Consumer,” 2012). follows are five methods for integrating social-media conversa- tions into your organization from an ICM perspective. These are Real-time can be a real advantage practical ways to start thinking like an integrated communica- The new practice of real-time digital research leverages the tions manager who knows how to participate in social media constant flow of data generated from website analytics, individ- and to leverage it to meet business objectives. ual-level customer data and social-media conversations. This type of research data is generated through techniques such as ICM METHOD 1: SOCIAL-MEDIA polls on corporate websites, asking questions on Facebook or INTEGRATION THROUGH RESEARCH testing marketing ideas on blogs. These methods use any digital Begin by listening and capturing real-time research for con- tool available to leverage the knowledge and opinion of con- tinuous consumer insight and brand optimization. Any success- sumers. ful plan to integrate social media must begin with an under- A real power of this research is that it occurs in real time. standing of consumer conversations and characteristics. A Whether monitoring social channels for product issues and Moran and Gossieaux (2010) study for Deloitte of more than brand perception, or creating custom closed communities to 500 companies found that marketers developing a social-media conduct research, this type of data collection is close to the con- strategy must first listen to what online communities are saying sumer experience and can be rich in insight. Gautam Dutt, about their products and where. However, such listening to director at Media Contacts Southeast Asia, has found Facebook social media has not been a significant part of most companies’ audience polls to be a great option for testing campaign mes- research efforts. sages, for deciding whether a product concept will be popular A 2009 study by the Boston Consulting Group analyzed 40 or for gaining insight into key drivers of consumption. global companies’ capabilities for and found Impressively, he boasts the ability to collect a large and repre- that almost 90% still follow more traditional approaches such as sentative sample of respondents in as short as an hour (“Insight: focus groups and telephone surveys (Eagan et al., 2009). In Media Debate,” 2012). 2012, a Wharton Customer Analytics Initiative report empha- But do consumers really care enough to respond to this type sized this research imbalance. American companies spend of research? In May 2011, Oreo engaged its Facebook fans by ask-

ADVERTISING AGE MAY 20, 2013 · 7 HOW TO INTEGRATE SOCIAL MEDIA INTO YOUR MARKETING STRATEGY

ing, “How would you describe Oreo cookies to someone who never tasted them?” The brand received more than 3,600 SOCIAL MEDIA MONITORING replies in just six days (Paynter, 2011). Real insight was obtained from core consumers, providing valuable perspective into the essence of its brand in a matter of days. TOOLS AND SERVICES How is this achieved? Yean Cheong, head of digital at Mediabrands, suggests leveraging real-time social research by using the following process: (1) know your research target audi- ence, (2) post open-ended information-fielding questions, (3) Monitoring enables marketers to access real interact and facilitate “in-field” conversations, (4) collate and customers’ opinions, complaints and queries analyze conversation threads, (5) discern response patterns and (6) correlate environmental factors and trends to derive insights (“Insight: Media Debate,” 2012). No matter what process you use to collect social-media research about your company, FREE TOOLS remember that valuable information should also be gathered about competitors and the industry in general. ■ ■ Google Analytics SearchTwitter Augment, don’t replace ■ Google Trends ■ Howsociable The idea behind social-media research is not to completely replace traditional research but to augment it with data ■ Technorati ■ Socialmention received from customer feedback. How can these data be used? One example involves the hotel industry. Hotel marketers use ■ Facebook Insights ■ Addictomatic consumer social data to enhance their value propositions and to help develop prices that consumers are willing to pay (Noone, ■ Boardtracker McGuire and Rohlfs, 2011). Specifically, HKHotels closely moni- tors customer reviews on TripAdvisor to enhance its value for the dollar. Based on social consumer data, it may add items to a breakfast buffet or upgrade a wine-and-cheese service (“Owner Henry Kallan Leverages Social Media,” 2010). Hotels can now also calculate the value of a customer not only on their room PAID SERVICES rate and additional purchases but also on their ability to influ- ence others. Online influence measurement services such as Klout help with this analysis and enhance management’s knowl- ■ Radian6 ■ Sysomos edge about which guests are likely to bring in more revenue. Managers also review activity, sentiment and booking informa- ■ HootSuite ■ Nielson Online tion to devise strategy for digital channel focus and room inventory allocation (Noone, McGuire and Rohlfs, 2011). ■ ■ HubSpot uberVU Another example involves Accor hotels. Recently, the ■ Lithium ■ Viralheat Synthesiso agency set up global, regional and hotel-specific dashboards to monitor its properties and key competitors on ■ Synthesiso ■ Brandwatch everything from open-ended comments in social media to rat- ing scores on evaluation sites. The system allows Accor to quick- ■ ScoutLabs ly identify underperforming locations and act on negative com- ments. As a result of these social-monitoring efforts, manage- ment has reported a rise in brand equity, satisfaction and book- ings (Paynter, 2011). Source: Cawley, R. 2010. “The 1 Percent Solution: Managing Online Controversy.” Tactics 17(11):17. Brooks, Chad. “Picking the This may work for B2C, but are there enough conversations Best Social Media Monitoring Tools.” Business News Daily, July 28, 2011. about a business-to-business organization to monitor? There Retrieved March 9, 2012, from http://www.businessnewsdaily.com/1265-best- may actually be more B2B social-media buzz than you realize. A social-media-monitoring-tools.html. recent study of two B2B manufacturing companies in Europe using social-media monitoring software found that they gener-

8 · MAY 20, 2013 ADVERTISING AGE HOW TO INTEGRATE SOCIAL MEDIA INTO YOUR MARKETING STRATEGY

SAMPLE SOCIAL-MEDIA METRICS FRAMEWORK

The metrics you choose and use depend on the goals and objectives of the brand

GOALS OBJECTIVES METRICS

Deepen relationship with ■ Achieve a critical mass of audience ■ Number of advocates (fans, through social media followers, authors) customers ■ Encourage ongoing interaction with ■ Number of comments posted the brand ■ Comments/advocate ■ Advocate influence profile

Learn from the community ■ Uncover common themes ■ Rank of topics discussed among interactions ■ Decipher positive vs. negative sentiment

Drive purchase intent ■ Persuade engagement with web- ■ Leads to e-commerce partners site content and utility ■ locater results activity ■ Product brochure downloads

Source: Murdough, Chris. 2009. "Social Media Measurement: It's Not Impossible." Journal of Interactive Advertising 10 (1):94-99.

ated an average of more than 60 mentions a day, constituting and provide information about potential new customers and what would seem to be a large and significant amount of total their decision processes. Plus, monitoring industry or competi- buzz volume for their industry sector (Tollinen et al., 2012). tor trends can help improve messaging in brand content. For data capture, metrics and analysis there are many free tools and Where to start monitoring paid services that help marketers monitor social-media activity Social-media monitoring enables marketers to access real from simple collection to more complex and comprehensive customers’ opinions, complaints and questions in real time. social-media research insights (Cawley, 2010; Brooks, 2011). (See Today, there are numerous social-media monitoring methods Social-Media Monitoring Tools and Services, page 8.) and services. New tools such as automated text, sentiment and As with any marketing effort, measurement is critical. Chris trend analysis have made this practice more efficient. Maria Murdough (2009), VP-associate director of digital analytics at Ogneva, director of social media at Biz360, described how this Mullen Communications suggested in the Journal of Interactive can be accomplished for a computer company: “You should aim Advertising a framework for measurement. First, you should to uncover important phrases like ‘bad quality,’ ‘crashes too start with a definition of what the social-media effort is trying to often’ and ‘won’t start.’” This could affect product design, cus- achieve. Begin social-media measurement by (1) establishing tomer service, marketing messaging and social-media outreach. measurement objectives that match business goals, (2) identify- Marketers can also track perception and sentiment over time ing specific key performance indicators (KPIs) that align with and look for positive and negative spikes to discover what those objectives and (3) establishing performance benchmarks should be repeated or avoided (Ogneva, 2010). to gauge success. The chart above displays Murdough’s sample Social-media monitoring can also help improve sales-lead social-media metrics. Beyond that, consider organizing social- generation, predict the success of new products and new ideas media activities around three areas to guide decisions: (1)

ADVERTISING AGE MAY 20, 2013 · 9 HOW TO INTEGRATE SOCIAL MEDIA INTO YOUR MARKETING STRATEGY

ONLINE IDEA COMPETITIONVS.FOCUS GROUP WORKSHOPS

Digital idea competitions can be more efficient and effective than traditional ones

ONLINE IDEA COMPETITION FOCUS GROUP WORKSHOPS

TOTAL IDEAS 218 52

Several per idea (full discussion of COMMENTS ON IDEAS 303 (average 25 words per comment) interesting concepts)

ACTIVE PARTICIPANTS/ 191/4,183 (4.6% active) 23 (100% active) REGISTERED MEMBERS

IDEAS PER PARTICIPANT 1.14 (active participants), 0.05 2.26 (registered members)

IDEAS FOR EXISTING FUNCTIONS 52 (24.4%) 20 (38.4%)

UNCONVENTIONAL IDEAS 17 (32.7%) (% OF TOTAL IDEAS) 83 (38.9%)

IDEAS REALIZABLE WITHIN THE NEXT 24 MONTHS 78 (36.6%) 15 (28.8%)

PARTICIPANT BACKGROUND Provided by 53% of active participants Provided by all participants

TOTAL COST $26,000* $7,300* ■ $15,300* for conceptual and setting ■ All for conceptualizing, carrying up competition out and analyzing workshops ■ $10,700* for communication, expert ■ Rooms and equipment gratis jury, and prizes

COST PER IDEA $128* $140*

Note: *Converted from Euros to U.S. Dollars. Source: Schweitzer, F., Buchinger, W., Gassmann, O., and Obrist, M. 2012. Crowdsourcing. Research Technology Management, 55(3):32-38. doi:10.5437/08956308X5503055

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reach—monitor the quantity of mentions and quality of authors; 15,000 registered users, who visit more than 6,000 times a month (2) discussion—aim to understand chatter topics and sentiment to exchange ideas, support each other, help design solutions and composition; and (3) outcome—diagnose behavioral engage- evaluate choices (Hosea, 2012). ment indicators of intent, such as leads or purchases. To sum up the social-media measurement process, Murdough said, Online idea competitions “Decide how a brand wants to change its relationship with cus- One way to leverage the power of crowdsourcing is to speed tomers, put a thoughtful plan together, accept the tracking and drive innovation through online idea competitions. In 2007, imprecision of consumer control and calibrate expectations, Cisco held its first online idea competition that collected more and then get out there and see what happens.” than 2,500 ideas from 104 countries for innovative IT network solutions. The winning energy-efficiency idea became a new busi- ICM METHOD 2: SOCIAL-MEDIA INTEGRATION ness unit launched with a $10 million investment (Schweitzer et al., THROUGH CROWDSOURCING 2012). According to industry website Crowdsourcing.org, Digital idea competitions can be more efficient and effective “Crowdsourcing is the act of taking a job traditionally performed than traditional ones. A study published in Research Technology by a design agent (usually an employee) and outsourcing it to an Management on idea generation for mobile-phone products com- undefined, generally large group of people in the form of an open pared ideas generated in an online competition with ideas gener- call” (“Crowdsourcing Definition/Examples,” 2012). Crowd ated in traditional focus groups. A website was created for the sourcing that is empowered through social media can be har- online competition and advertised via newspaper, web pages and nessed for more efficient and effective product development or social media, whereas the traditional method of idea generation improvement. Carl Esposti, founder of Crowdsourcing.org, says involved four focus groups of consumers. The online competition crowdsourcing enables companies to circumvent the restrictions resulted in 218 total ideas for a cost of about $120 per idea, where- of limited resources and to bring fresh thinking into their organiza- as the focus groups generated a total of 52 ideas for a cost of about tion. It enables the company to get feedback for very little cost, $140 per idea (Schweitzer et al., 2012). (See “Online Idea drive innovation and satisfy the consumer’s demand to be heard Competition vs. Focus Group Workshops,” page 10.) (Brandel, 2008). After years of negative social , Dell launched the product- Instead of simply fighting against the negative comments raised design community IdeaStorm based on Salesforce.com software. by the social-media voice of the crowd, you can leverage them to Within a year, its product launch of nine laptops and desktops all help you make a better product. Better products, in turn, create featured innovations generated from consumers in the communi- more positive social-media buzz (“There’s a Lot More,” 2012). Li ty (Malakian, 2008). In total, Dell captured more than 10,000 and Bernoff (2011) in their book Groundswell compare this phe- ideas, with more than 400 of them being implemented (Ang, 2011). nomenon to the martial art of jujitsu, which enables you to harness The process of including individual consumers also helped Dell the power of an opponent for your advantage. A Marketing Week improve its overall brand image. Why continue to guess what fea- article calls it a move from firefighting to an adoption of cocreation tures and products consumers want when marketers can simply that leverages the crowd for everything from consumer goods ask? Start working with your customers to develop better goods ideas to advertising concepts and executions (“There’s a Lot and services to fit their needs. More,” 2012). Fiat leveraged the resources of the crowd when it looked out- Accomplishing small and big tasks side its team of designers and engineers to let the world decide Crowdsourcing does not always have to be a formal competi- how one of its concept cars would look, feel and drive. By crowd- tion with a winner. The electric-car company Tesla Motors needed sourcing the car design through its website and using a viral mar- data to help design its home car-charging stations. It asked readers keting campaign, approximately 10,000 suggestions from people of its to download a spreadsheet and fill out the information in more than 160 countries helped create the Fiat Mio. The car was about their homes’ circuitry and electrical loads—designing a eventually met with rave reviews at the São Paulo International charger that works with its customers’ available amperage was Automobile Show (Markowitz, 2011). well worth efforts to solicit customer feedback in this manner Crowdsourcing is not just for the individual-consumer crowd. (Brandel, 2008). The fashion industry gets a better idea of what The research firm MarketingSherpa features a case study in which clothing will be more popular than others through a technique one B2B corporation reported that crowdsourcing its new product called fantasy shopper. Here retailers create a virtual environment development boosted overall sales 17% and new product sales 37% where participants can “buy” items of clothing before they hit the (Kirkpatrick, 2012). And mobile-technology brand Psion combines sales racks. The results give retailers a better sense of what will and customers, partners, employees and resellers into one forum. This will not sell (“There’s a Lot More,” 2012). community, called IngenuityWorking, has grown to include Alternatively, marketers faced with giant tasks can involve the

ADVERTISING AGE MAY 20, 2013 · 11 HOW TO INTEGRATE SOCIAL MEDIA INTO YOUR MARKETING STRATEGY

crowd to help satisfy consumers’ needs. Facebook faced the enor- tagline for the brand (“There’s a Lot More,” 2012). Such examples mous challenge of translating its website into 70 languages, so it suggest that ad agencies and marketing firms should see properly created a website to mobilize the crowd into helping. And help run crowdsourcing efforts as opportunities rather than threats. they did. They translated Facebook’s French site in just one day with 300,000 volunteers (Ang, 2011). A framework for crowdsourcing Beta trials provide another great example of harnessing crowd- To ensure effective crowdsourcing design, James Euchner, the sourcing for marketing efforts. Getting brand advocates to try a editor of Research Technology Management, suggests that the fol- product before it goes on sale can help increase efficiency and lowing five conditions must be present: (1) a well-defined problem, reduce the risk of large-scale deployment. For example, the mobile- (2) a large population of potential problem solvers with relevant phone manufacturer Nokia uses its Beta Labs community. The expertise, (3) feedback given to the overall crowd in order for ideas Nokia community also increases consumer engagement and builds to evolve, (4) a plan for managing intellectual property and (5) brand buzz as its brand advocates try out the latest innovation and identification of a person or group to filter and develop ideas share that knowledge with their social networks (Hosea, 2012). (Euchner, 2010). In particular, Euchner’s last condition must be taken seriously. In social media, some aspects are free (such as Cocreating with the crowd media costs), but the real cost to an organization is time. Before Creating a popular advertising campaign can come with a lot of launching a crowdsourcing effort, a company must make sure it is pressure as the stakes can be high. Consider the cost of a single willing to dedicate the resources necessary for analysis and imple- commercial, with an average of $3.5 million for 30 sec- mentation of hundreds (or even thousands) of ideas. onds (Thompson, 2012). And on top of media expenses, compa- One way to manage these vast efforts is to continue to use the nies pay an average of $350,000 to produce a 30-second national crowd. For example, IBM’s IdeaJam solicited ideas around the TV commercial (“How Much Do,” 2012). These enormous costs question “What should IBM be doing?” It then solicits the crowd to encourage the recent practice of using crowdsourcing to generate vote on the winners in order to narrow the vast field to only wor- ideas. Frito-Lay’s “Crash the Super Bowl” contest collects user-sub- thy ideas that it actually funds (Malakian, 2008). IBM also uses ana- mitted commercial entries for and turns the winners’ ideas lytics tools to pour through and organize content by topic and key into that actually air. In 2012, the top spot people (Hosea, 2012). This is the same strategy that Doritos uses in on USA Today’s Super Bowl ad meter was the Doritos consumer- its Super Bowl contest—the voting mechanism consequently gener- content entry “Sling Baby” (Super Bowl XLVI Ad Meter, 2012). For ates more sustained buzz around the brand and contest (“Crash the 2013 contest, entries were collected with a Facebook app, driv- the Super Bowl,” 2012). ing further social-media attention and traffic to the brand for Mary Brandel (2008), a contributing writer to Computerword, months before it spent the $3.5 million to air the commercial suggested that marketers focus the discussion around one clearly (“Crash the Super Bowl,” 2012). defined area and create a private community through a systems But the examples do not stop there. The brand Lego thrives on vendor such as Think Passenger or Leverage Software. Another delivering new and interesting brick designs. This can be a daunt- way is to hire a partner. Baltimore-based Constellation Energy ing task for an in-house design team. So Lego elicits help by tap- hired TopCoder to run its coding competition. TopCoder organ- ping adult enthusiasts in its communities to generate new designs. ized the effort, sent it out to more than 130,000 global members, Participants consequently get rewarded with free Lego bricks, implemented a rating and reward system and worked with deeming such cocreation crowdsourcing efforts as successful Constellation to coordinate submissions. Even with the extra step (“There’s a Lot More,” 2012). Similarly, Bang & Olufsen invited con- of hiring a partner, this crowdsourcing effort was about 50% faster sumers to help design speaker covers for its BeoSound 8 speaker than its traditional model of handling all development with in- dock. It received more than 5,000 designs on its Facebook gallery, house coders (Brandel, 2008). which then generated more than 25,000 votes across these No matter the costs, engaging the crowd has a lot of advan- designs. Engagement levels dramatically increased as 143,000 tages. David Bratvold, the founder of Dailycrowdsource.com, unique visitors flocked to the website and its number of Facebook summed it up: “Your actual customers are telling you how to sell friends doubled (Hosea, 2012). to them and what they like.” Even more so, customers are engag- Marketers can now ask consumers for help with a product idea, ing their friends and family through social networks (Hosea, 2012). packaging, logo or identity. And they are not just getting assis- This is exactly what an ICM manager should do—integrate all com- tance—they are meeting consumers’ critical expectations. Sheryl munications, company and user-generated, for greater results. Sandberg, Facebook’s chief operating officer said, “People don’t What kind of results? Research by Christodoulides, Jevons and expect to be talked at anymore, they want to be a full part of the Bonhomme (2012) in the Journal of Advertising Research found conversation” (Hosea, 2012). Recently, the hard-cider brand that brand-related consumer-generated content (CGC) positively Strongbow included its fans by asking them to come up with a impacts consumer-based brand equity. Its study titled “Memo to

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Marketers: Quantitative Evidence for Change” found empirical evi- dence for how involvement with brand-related CGC can signifi- cantly change perceptions of the brand. Participation in brand- ONLINE BRANDED CONTENT related CGC is motivated and enhanced by perceptions of cocre- ation, presence of a brand community and empowerment through IS AN EXCELLENT TOOL FOR correspondence with the consumer’s self-concept. This provides further evidence that marketing managers must start integrating CUSTOMER EDUCATION all communications, whether they are from employees or con- sumers. AND RETENTION TO FUEL ICM METHOD 3: SOCIAL-MEDIA INTEGRATION THROUGH BRANDED CONTENT LONG-TERM RETURNS Quality brand-sponsored content will draw consumers to a company. BMW learned this over 10 years ago when it created a way to reach its busy target audience, which was no longer as inter- ested in traditional media. In 2001, it shifted a $25 million spend on Super Bowl commercials to online short films with Hollywood found that 84% of travelers use the Internet as a planning resource directors, actors and actresses. After one year, the number of view- and visit an average of 22 websites before booking. The more infor- ers who had visited BMW's website to download the first film sur- mation a brand provides across social-media channels, the more passed 21 million. That year delivered the most successful sales in likely people planning trips will come across its content. An active its history. Three more films were added in 2002 and drove down- presence on Facebook, Twitter, YouTube, Flickr and so on using the loads to 100 million, with 1 million customers buying a DVD with right SEO (search-engine optimization) tags can help a brand achieve all eight films (Edmondson, 2006). multiple hits per search instead of a single hit for the brand’s website Today, branded content has been called content marketing, (Noone et al., 2011). A survey reported in BtoB Magazine suggests , custom content, sponsored content or even col- B2B marketers see content marketing as having the most significant laborative content. In a recent Advertising Age article, Jason Del impact on lead generation, brand awareness, thought leadership Rey (2012) wrote, “While there are varying definitions of each, the and sales. Social media was also seen as the most important form of underlying thesis beneath them all is that web readers, viewers delivery for branded content (Hosford, 2012). and social-network users are more likely to respond positively to EContent describes brand or content marketing as “the marketing tactics that don't look like advertising and instead take process of creating and sharing relevant brand information in the form of the rest of the content on the website or platform.” A hopes of engaging current consumers and attracting new ones.” Forbes article, “5 Big Brands Confirm That Content Marketing Is In an effort to better market itself, even Facebook is turning the Key to Your Consumer,” details how Virgin Mobile, American toward producing content, with the development of “Facebook Express, Marriot, L’Oréal and Vanguard are on their way to being Stories.” These videos show how Facebook is a tool for change publishers (Gutman, 2012). in lives and communities and give people another reason to stay Content marketing is growing, even in the B2B context. A 2011 on the site vs. leaving for other content-rich sites with videos or survey of nearly 400 B2B marketing professionals discovered that stories (Cramer, 2012). twice as many B2B marketers now use content marketing efforts In the mobile platform, creating content is even more essential over print, TV and radio advertising (Belicove, 2011). The study because of the limitations small mobile screens present for tradi- “Content Marketing: Ready for Prime Time,” found that more than tional display advertising. In 2010, the start-up Pulse launched to 34% of the 440 B2B respondents are “very” or “fully” engaged a publish mobile content for marketers. Pulse distributes messages with content marketing in 2012, a number that will jump to 66% in replicating the form of content. This branded content, or “adver- 2013. B2B marketers indicated the strengths of content marketing tising that doesn’t feel like advertising,” has been very successful. to include (1) improved engagement with important audiences, (2) The company reports that users of its mobile reading app are 25% enhanced trust, (3) faster, more relevant touch points and (4) more likely to share the branded stories than they are to share improved search engine optimization or search-engine marketing actual news articles. And big brands such as Microsoft, T. Rowe (Hosford, 2012). Price, Disney, Lexus and Forbes are reaping these benefits. But Online branded content is an excellent tool for customer edu- Pulse CEO Aksay Kolthari says many marketers and advertising cation and retention to fuel long-term returns. Branded social- agencies still tell him they are not interested in creating content media content can help improve your search strategy and drive (Bercovici, 2012). traffic to your website. Google research on the travel industry On the other hand, marketers such as Nick Panayi from the IT

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social-media content in the form of how-to videos on its YouTube channel. Store associates also respond to people who need home- BEFORE LAUNCHING ANY improvement advice on Facebook and Twitter. The staff comes from a group of experienced associates who still spend time work- EMPLOYEE SOCIAL-MEDIA ing with customers in stores (Li and Bernoff, 2011). Before launching any employee social-media effort, a company EFFORT,A COMPANY SHOULD should have guidelines in place. Despite the growth of social media use, a 2010 survey by Manpower employment services found that HAVE GUIDELINES IN PLACE.A only 20% of the 34,000-plus employers surveyed said they had a formal social-media policy in place (Kho, 2010). This is where mar- keting must work closely with human resources. The Word-of- 2010 SURVEY FOUND ONLY Mouth Marketing Association recognizes the growth and impor- tance of employees being active in social media. To help jumpstart 20% OF THE 34,000-PLUS the efforts to create guidelines, it has published a guide to employ- ee social-media policies as a useful tool to implement a plan. The EMPLOYERS SURVEYED HAD A critical point here is not to think of these policies as limiting employ- ee communications but instead as leveraging them for brand value FORMAL SOCIAL-MEDIA (“The WOMMA Quick Guide,” 2012). POLICY IN PLACE Let customers create content for you The number of people creating content online in the U.S. is expected to grow to nearly 114.5 million by 2013 (eMarketer, 2009). As more people create branded content online, this highlights a shift from a conventional publisher-centric model to a user-centric services company Computer Sciences Corp. (CSC) have gone “all- one (Daugherty et al., 2008). This model shift can really pay off for in” on content creation with an in-house department of former companies that embrace it. In the Journal of Marketing Research, journalists who create branded content for its website and social- Villanueva et al. (2008) found that wired word-of-mouth customers media channels. CSC publishes “Infographic Central” to showcase add nearly twice as much long-term brand value in terms of cus- the latest industry research, “Success Story Briefing Center” to tomer acquisition compared with what traditional marketing adds highlight case studies and “Ingenious Minds” for employees to help for a brand. solve important IT problems (Hosford, 2012). Part of a strategy for getting consumers involved in branded con- tent is to understand their motivation for participating in brand Let your employees speak activities. A study in the International Journal of Advertising sug- The social voices of a company’s employees can become media gests that there are three sources of motivation for consumers to vehicles for rich brand communications. Zappos.com has known engage in online brand-related activities: (1) personal identity (“I’m this for a long time. With more than $1 billion in sales, Zappos.com a Mac”), (2) integration (“My Starbucks Idea”) and (3) social interac- is one of the fastest-growing shopping sites, building most of its tion (Apple Support Forums). Alternatively, the creation of actual image and loyalty online. It has not only leveraged employees for branded content was found to be motivated by two additional outstanding customer service but also for branding. Today, it has sources: (4) entertainment (“Doritos Crash the Superbowl”) and (5) nearly 500 employees regularly tweeting, with just over 2 million empowerment (“ Refresh Project”). One way marketers can “followers” reading its Twitter updates (Zappos Twitter website, employ the personal-identity source of motivation would be to cre- 2012). ate a campaign that lets consumers adapt and share brand mes- Unfortunately, many social-media successes come about as a sages that fit their personal preferences—such adapted messages result of high-profile failures. That was the case for Home Depot. In allow consumers to show others who they are, what they like and 2007, a finance columnist on MSN Money wrote a column lambast- what they can do (Muntinga et al., 2011). Ford did this by creating a ing the company for its deficient customer service. More than 7,000 mobile app that lets people customize a Mustang and share their people responded with mostly negative comments. In a bold move, creations with others (Ingram, 2012). Companies that allow their Frank Blake, Home Depot’s CEO, apologized and promised to customers to personalize branded content should subsequently change in a comment to the MSN Money column. In this circum- draw more participation from those customers. stance, social media became a key component to that change. Marc Monseau, director of corporate communications for social Today, Home Depot leverages store associates to generate valuable media at Johnson & Johnson, understands customer-content moti-

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CONTENT MARKETING BY TACTIC Branded content should be an investment in an ongoing strategic position and not a one-shot marketing campaign

Social media other than blogs 84%

Articles on your website 84% E-newsletters 78% Videos 70%

Blogs 69%

In-person events 63%

Articles on other websites 61% Mobile content 43% Mobile apps 42% Print magazines 42% Microsites 41% Branded content tools 40%

Case studies 38%

Print newsletters 37%

Infographics 33%

Research reports 33%

Licensed/syndicated content 33% Books 32%

Webinars/webcasts 32%

Digital magazines 29%

E-books 28% Annual reports 28% White papers 28%

Podcasts 26%

Virtual conferences 21% Source: Pulizzi, Joe. 2012. “2013 B2C Content Marketing Research: Benchmarks, Budgets, and Trends.” Content Marketing Institute. Retrieved Dec. 21, 2012, from Games/gamification 17% http://contentmarketinginstitute.com/2012/11/2013-b2c-consumer-content-marketing/ 0 100

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tions and unique opportunities. The most popular social-media channels for B2B content are Facebook, Twitter, LinkedIn, MARKETERS NEED TO TAKE YouTube, Google+ and SlideShare, but it would also be a mistake to rule out apps and games (Hosford, 2012). For individual consumers, OFF THEIR SALES HAT AND marketers should study social-media patterns and engage con- sumers in conversations where they are actively talking to each PUT ON PUBLISHER HATS... other about your brand. No matter the chosen medium, a content-creation process must also consider the reader. Your reader should be considered more as EVEN THOUGH ALMOST ALL a friend than part of a target market, and you should talk to your reader as you would to someone on the phone or in person (rather BRANDS CREATE CONTENT than using the language and grammar for a report or sales brochure). That is, social media is inherently social, and this realiza- FOR MARKETING PURPOSES, tion should change the nature, tone and subject matter of your con- tent (Leibtag, 2012). Joe Pulizzi, founder of brand content market- ALMOST NONE HAVE ing firm Junta24, said, “Marketers need to take off their sales hats and put on publisher hats. The most important issue is that even CONTENT MARKETING though almost all brands create content for marketing purposes, almost none of those organizations have content marketing strate- STRATEGIES gies. It's one big reason why, in our recent study, that just one-third of marketers are satisfied with their content marketing initiatives.” Similarly, you must approach branded content with an understand- ing that it should be an investment in an ongoing strategic position and not simply a one-shot marketing campaign (Kho, 2010). — Joe Pulizzi, Pulizzi says he is seeing more marketing organizations look and founder, Junta24 feel like publishing units with a content strategy leader who acts like a managing editor to content designers, listening officers and con- tent creators. Because these groups almost never talk about the company's products or services, Pulizzi says they are difficult to get vation. One of his company’s subsidiaries, McNeil Pediatrics, pro- started. Content Marketing by Tactic (page 15) shows the results of duces Concerta, an ADHD drug for children. Its social-media con- a survey of B2C content marketing from the Content Marketing tent efforts leveraged integration, social interaction and empower- Institute and MarketingProfs that shows the most popular content ment motivations by creating two Facebook groups for parents to tactics (Pulizzi, 2012). join and connect with each other. “ADHD Moms” and “ADHD Another way to think about the branded-content process starts Allies” clearly identify McNeil as the sponsor but provide forums for with the discovery of a brand’s value to customers. Subsequently, a parents of children with ADHD to connect, manage and cope. brand story is created around its value. Once the brand story is con- These two sites have garnered more than 32,000 fans combined. To structed around various methods to communicate it in a consistent stimulate conversations, experts post discussion starters such as, manner, the right social-media channels are selected. Marketing “Share the first time you suspected that your child had ADHD and Julie Roads also suggests going where your audience is. how you helped him or her get diagnosed.” A good discussion That is what she did when guiding the social-media campaign for prompt can facilitate a significant amount of consumer conversa- the novel The Girl With the Dragon Tattoo. Her blogger-outreach tion. For example, Tourism New Zealand posted, “The coolest efforts resulted in eleven influential bloggers creating relevant thing I have done in New Zealand is …” on its Facebook page and brand posts reaching 2.5 million unique readers (Kho, 2010). subsequently received 750 responses (Kho, 2010). When creating a piece of content, consider multiple uses and simultaneous opportunities for it. For example, Randal Rozin, Dow A process for content creation Corning’s global director of and marketing So the question now becomes, how do brands create online con- communications, says that a video it creates may include (1) a call to tent? Like any other marketing activity, there is a process to follow. action with links to other social-media channels, (2) a transcript of In Econtent, Ahava Leibtag (2012) suggests that marketers first con- the video that might be turned into a white paper or blog post and sider the type of content they are writing. Is it for the traditional (3) data from the video that might be turned into an infographic web, mobile, video, blog or other? Each format has obvious restric- (Hosford, 2012).

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CREATORS OF PEER INFLUENCE

Connectors sincerely want to join consumers and brands together

MASS CONNECTORS

6.2% 80% MC of 176 million of 256 billion MC online influence adults impressions

MASS MAVENS

13.4% 80% MM of 176 million of 1.64 billion MM online influence adults posts

Source: Bernoff, Josh. “Spotting the Creators of Peer Influence.” Advertising Age, April 20, 2010. Retrieved Dec. 21, 2012, from http://adage.com/article/digitalnext/marketing-spotting-creators-peer-influence/143372/

ICM METHOD 4: SOCIAL-MEDIA INTEGRATION THROUGH and seed markets, but the power of customer evangelism (i.e., CUSTOMER EVANGELISM word-of-mouth delivered via social-media content) amplifies Brand marketers can recruit and equip their loyal fans in over time to create markets and is a key to long-term growth. As such a way as to convert them to word-of-mouth brand ambas- a result, smart brands are adding marketing practices that sadors. Indeed, many companies have started Facebook fan encourage, drive and sustain customer evangelism through pages, and for good reason—these pages turn fans into media social media. In Creating Customer Evangelists, McConnell and vehicles for their companies. Such efforts are profound in Huba (2003) suggest that evangelism marketing is the most effi- influence and reach. Research suggests that people trust other cient form of word-of-mouth because it focuses on the product, people more than a mere advertisement (Global Advertising, brand or company being promoted. Their work features case 2009). The average Facebook user has 229 friends. If he or she studies of Southwest Airlines and Build-a-Bear Workshop, com- shares a on his or her wall, 229 people see it. But if panies that have successfully used and cultivated customer just half of those friends then share it on their walls, you will evangelism in order to increase sales. reach more than 26,000 people (Goo, 2012). These types of Big corporations are not the only ones to gain success from brand conversations are now measureable with Facebook’s social-media evangelism. Engaging online brand ambassadors new insights tab that tracks metrics such as liking, posting, works for small businesses just as well. Kurt Walchle’s Survival sharing, commenting, RSVP’ing, photo-tagging and checking Straps firm is a great example. Walchle launched his company in (Boyd, 2011). through social media. In its sixth year of business, it reports that In Social Media Marketing: An Hour a Day, Dave Evans (2012) nearly 50% of sales stem from word-of-mouth social-media points out that traditional marketing programs drive awareness efforts—these very efforts helped it grow from a home-based

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business into a thriving company with more than 50 employees How do you know how influential potential ambassadors will (Russo, 2012). be? The latest trends in social scoring and marketing-influence Evangelism marketing cultivates a brand experience built on measures can help. Business consultant Mark Schaefer (2012) in a vision or mission that is inspiring to consumers—something the book Return on Influence documents how influence has they absolutely want to share with others (Meiners et al., 2010). become the new currency of the social-media age. New services Guy Kawasaki, former chief evangelist of Apple, is considered such as Klout, PeerIndex and Twitter Grader use complex algo- by most to be “the father of evangelism marketing.” In rithms that go beyond numbers of followers to measure online Kawasaki’s 1991 book, Selling the Dream, he describes this power and influence, taking into account various online and process as one that persuades your customers to believe in your offline factors. With these tools, marketers can start to confident- dream as much as you do. Does your company have such cus- ly identify and quantify social-media influencers who drive tomers? If not, can you create them? demand for products. Obviously, no one likes to make a poor choice. People have always sought advice, but today, more consumers than ever Steps for creating customer evangelists before are turning to the social web to talk with each other McConnell and Huba (2003) suggest a process that selects about their purchase decisions. Evangelists are active partici- brand disseminators, trains them and enables them to take an pants who, via word-of-mouth in consumer-generated media, active role in spreading positive word-of-mouth. The recom- have enormous potential to greatly impact the demand and per- mended six steps for creating customer evangelists are (1) contin- ception of your product (Evans, 2012). uously gather customer feedback, (2) share knowledge freely, (3) build intelligent word-of-mouth networks, (4) encourage com- Identify a customer evangelism network munities of customers to meet and share, (5) create specialized, A customer evangelism program must start by identifying a small offerings or content and (6) focus on making the world, or group of disseminators. Disseminators will actively distribute at least your industry, better. Kawasaki (1992) helped build the positive word-of-mouth about your brand via social networks, Apple empire on the simple idea that people want to make the helping to create a continuous reference program (Meiners et al., world a better place—companies need to get people to believe 2010). In identifying this group, a company should be highly their brands want to do that as well. selective to maximize its impact and efficiency in this process. In In the International Journal of Economic Sciences and Applied The Tipping Point, Malcolm Gladwell (2000) calls these potential Research, Meiners, Schwarting and Seeberger (2010) suggest disseminators “connectors.” These are the people who seem to three requirements for the successful recruitment of customer know everyone and have the ability to reach and influence a vari- evangelists. First, the product needs to be good. A company does ety of consumers. When influenced by a “market maven,” a per- not want to jumpstart social-media-powered word-of-mouth with- son Gladwell depicts as knowing a lot about products, following out first knowing that most discussions about it will be positive. trends in specific areas and readily sharing this information with As McConnell and Huba (2003) suggest, listen to feedback. If others, connectors sincerely want to join consumers and brands there is a problem, fix it before launching an evangelism program. together. In the graphic “Creators of Peer Influence” (page 17), Additionally, it is critical to discover what are a company’s most you can see how this small group of mass influencers is respon- positive features that fans get emotional about—they will be the sible for 80% of the more than 500 billion impressions about key drivers of consumer recommendations. Second, a brand products and services every year (Bernoff, 2012). image should be strengthened in order to enable an emotional Seth Godin (2001), in Unleashing the Ideavirus, labels these relationship with consumers and subsequent creation of brand superinfluencers as “promiscuous sneezers” or “powerful communities. The third requirement is to make sure open, trans- sneezers.” No matter what they are called, a company should parent and conversational communications exist to include the persuade such influencers to amplify its brand message. customer in the marketing process. This last requirement will Identifying brand advocates starts with tracking methods to help lead to trust and lasting positive recommendations. uncover the most influential consumers in a brand community or industry. Once found, these opinion leaders can be nurtured. Corporate evangelists and program examples Procter & Gamble (P&G) set up a website community called Guy Kawasaki may have been one of the first, but today many Vocalpoint for consumers who were influential mothers. companies are creating official positions called “corporate evan- Members share their experiences with new P&G products, and gelist” or “chief evangelist.” These new evangelism leaders focus they often reach out to social networks outside of Vocalpoint. on promoting core values and vision to a brand’s biggest fans Amazingly, P&G has found that markets with active Vocalpoint (Meiners et al., 2010). Companies with such leaders have includ- influencers have produced twice the revenue of markets without ed Google, Microsoft and Sun Microsystems (Pethokoukis, Vocalpoint (Ang, 2011). 2005).

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YouTube and tweet their experiences (S., H., 2009). The collab- orative effort between Coca-Cola’s communications, public relations and marketing teams recruited the ambassadors by CUSTOMER EVANGELISTS WHO reaching out to its agencies to identify 60 social-media users from within its fan base. From there, it narrowed the candidates GIVE REMARKABLE REVIEWS OF down to 18, who were then interviewed in person. The subse- quent nine remaining candidates were placed into teams of PRODUCTS BECOME AMAZING three, promoting themselves via Twitter and Facebook to be chosen as the winning team of ambassadors. The final team of SALESPEOPLE FOR A COMPANY. three was chosen with an online vote (Zmuda, 2009). In the end, the campaign resulted in “650 million media contacts and ...96% OF CUSTOMERS USE billions of individuals involved both online and offline” (Bachfischer, 2011). ONLINE REVIEWS TO HELP THEM Companies can also draw on consumer evangelists through reviews and ratings. In Groundswell, Li and Bernoff (2011) men- tioned that online retailer eBags realized early on that the MAKE PURCHASES chance to create a community around luggage enthusiasts was pretty slim. So eBags made ratings and reviews a prominent part of its website. It reached out to customers by sending them an email three weeks after purchase that encourages them to review the product. These emails get an incredible 22% response rate. The company discovered that it is easier for them — Charlene Li and Josh Bernoff, to recruit consumers to be critics in a review than it is to recruit authors, Groundswell them to write blog posts or record videos about its luggage. Customer evangelists who give remarkable details about the products become amazing salespeople for a company. Evangelists can make a big difference—Forrester research sur- TechSmith, a software development company, places con- veys have indicated that 96% of customers use online reviews to versations with its customers in the hands of its chief evangelist, help them make purchases (Li and Bernoff, 2011). Betsy Weber. She creates and fosters relationships with key cus- “Lego Ambassadors” is another example of a consumer tomers through an estimated 400 chats per month via email, evangelist program built around a community of product instant messaging, phone, private forums and in-person meet- enthusiasts. Lego builds relationships with the company’s most ings. Weber tries to keep her company’s brand evangelists enthusiastic adult fans by putting them in an exclusive club. happy by replying to every email, forwarding problems or com- These “insiders” get previews of upcoming products, and they plaints to product specialists, inviting them to join beta-testing return the favor by sharing the information with their own per- groups and sending occasional promotional swag and freebies sonal networks. But not just anyone can become an official (Pethokoukis, 2005). Lego Ambassador. Enthusiasts must vie with one another to be Another way to tap the power of evangelists is to create chosen. The competition for limited membership energizes fans opportunities for them to participate in the brand—experiences to become brand spokespeople (Li and Bernoff, 2011). that they, in turn, can share with others in their social networks. Parties, openings, product launches and cause-related events ICM METHOD 5: SOCIAL-MEDIA INTEGRATION are great opportunities to include brand enthusiasts and to gen- THROUGH CUSTOMER SERVICE erate various sharable content including videos, pictures, blog Real-time customer relationship management turns foes into posts, event promotion, etc. Sponsoring an event or cause that friends—one unhappy customer does more harm than ten a target market cares about can really motivate evangelists to happy ones. Whether small or huge, a business is built on repu- participate and spread the word (Evans, 2012). tation, and good reputations are built on relationships of care, Occasionally, a customer evangelism program can take the honesty and trust (George, 2011). In 2008, Frank Eliason form of a much bigger and longer event, such Coca-Cola’s year- became the most famous customer-service manager when he long “Expedition 206.” This 2010 social-media campaign sent came up with the idea of using Twitter to interact with Comcast three “Open Happiness” ambassadors to visit all 206 countries customers. Today, Comcast has moved beyond Twitter to also where Coca-Cola products are sold and to blog, post videos on provide customer service on Facebook with a full-time dedicat-

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ed social-media staff. Cable customers love more immediate survey studied more than 1,200 U.S. consumers who have used online results compared often fruitless hours on the phone Twitter to complain about a product or a company. Nearly half (Fluss, 2011). According to a survey of worldwide companies, of the respondents reported that they expected the company to the second most used social-media activity behind marketing is read their tweet, whereas only 29% of respondents received a customer service (Fluss, 2012). See the graphic below for a list- follow-up from the company. This gap represents a significant ing of all social-media business activities. This is another area missed opportunity, especially since the survey revealed that where the marketing professional takes the lead in integrating 83% of those who received a response from a complaint said communication management for an enterprise. that they loved or liked receiving it (Maritz Research, 2011). Nichole Kelly (2010) of SME Digital outlines several ways that Gartner predicted that 1 billion users would reside on social social media can impact customer service. It can help increase networks by the end of 2012 and that refusing to interact with customer retention by finding complaints early and making the them on social media will be as harmful to companies as ignor- service personal. Social-media customer-relationship manage- ing phone calls or emails today. Analyst Carol Rozwell said, ment can also reduce operational costs—providing online cus- “The dissatisfaction stemming from failure to respond via social tomer service is generally less expensive than providing service channels can lead to up to a 15% increase in churn rate for exist- over the phone. Li and Bernoff (2011) estimate that the average ing customers” (Gartner Predicts, 2012). Despite these statistics, call to a company’s call center costs $6 or $7, and technical sup- a 2010 study conducted by DMG Consulting found that only 37% port calls can cost as much as $10 to $20. of responding enterprises have their customer-service depart- Customer expectations are rising. In 2011, a Maritz Research ments involved in social-media activities—compare this with 85% of marketing departments engaging in social media, and you start to realize that customer service is currently lagging behind in social media. In most organizations, social-media SOCIAL-MEDIA BUSINESS ACTIVITIES activities naturally start out in marketing, but as the volume of questions that require immediate response increases, the cus- The second-most-used social-media activity is customer service tomer-service department must get involved and contribute toward developing a social presence and response process Marketing 76% (“Social Media: Guide,” 2010). Do companies really need social-media customer support? In eMarketing, Rob Stokes (2010) suggests doing a simple test by Customer service 63% performing a search on “brand name + complaints” to see the Corporate negative discussion out there. He points out that companies communications/ 53% that listen to their customers and engage with them in an hon- public relations est and transparent way can build loyal customers and eventu- Contact center 37% al passionate spokespeople. Alternatively, companies that ignore their customers’ voices will see diminished loyalty and growing resentment among vocal online consumers. Maria Sales 34% Ogneva, head of community at Yammer, an enterprise social- media network, described this new social customer: “[She] Executive communications 18% expects you to listen and engage with her, not only when it coin- cides with an email blast or new feature release, but rather Investor relations 17% when she needs you. And you better respond fast, in real-time, or she will either move on to a competitor, or tell her friends about her bad experiences” (George, 2011). Crisis management 12% These unhappy customers can easily translate into negative product reviews. A study in the journal Electronic Commerce Other 2% Research and Applications found that consumers tend to con- form to online customer reviews and that their attitudes 0 100 become unfavorable as the amount of negative reviews increas- es. The research also found that negative online reviews have a

Source: Fluss, D. 2012. “Using Social Media for Customer Service.” more powerful impact than positive reviews have on attitudes CRM Magazine, 16(4):10. toward products, so monitoring this activity becomes very important (Lee et al., 2008). A social-media-monitoring cus-

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tomer-service program can react to and correct misunderstand- tweets for search and review (Twelpforce, 2012). ings (Tollinen et al., 2012). Companies such as Comcast, Dell, Best Buy and now even United Airlines monitor Twitter to find references to their brands Employees supporting customers via social media and to resolve customer issues with social-care teams. Social- According to a 2010 DMG Consulting survey, five of the top six media consultant Dave Evans (2012) points out that solving a types of information gained from social-media interactions direct- problem in a real-time stream within public view can stop nega- ly impact customer service: (1) positive or negative sentiment, (2) tive conversation before it spreads to more permanent links like issues with products, (3) complaints or follow-ups for previous blogs, forums or even an article or book. United Airlines learned customer service interactions, (4) issues with procedures and (5) this lesson with “United Breaks Guitars” and now has an active crisis identification. However, an article in Customer Relationship social-media customer-service program. Instead of directing cus- Management points out that although customer service is a pri- tomers to your support website or phone number, go to where mary use of social media, customer-service departments are the customers are and resolve issues in public view where every- mostly not involved in setting social-media strategy (Fluss, 2012). one can benefit (especially your reputation). Customers are increasingly reaching out through social media, Providing customer service via social media is not always looking for help, asking questions, and providing feedback. So about responding to complaints—sometimes, it is as simple as much so that J.D. Power has begun to study the impact of social being online where your customers want you to be. In fact, the engagement on customer satisfaction. According to this leading mere existence of one hotel’s active customer-service social- market research firm, there are seven key performance indicators media-monitoring service gained the company a big new con- (KPIs) of customer satisfaction: (1) response time of less than tract. Its response to a wedding planner’s tweet about a potential seven hours, (2) response in the same channel, phone or mail, (3) choice of hotel won it the business because it responded on representatives offering to assist with another problem, (4) repre- Twitter and its competition did not (Lanz et al., 2010). sentatives thanking customers for their business, (5) representa- tives offering to sell other products, (6) resolution of the issue and Get service help where you can (7) contact with the business fewer than two times. How impor- Companies such as Apple have started customer-support tant are these guidelines? In the financial services industry, forums where customers answer their own questions. In among customers who received a social-media response, nearly Groundswell, Li and Bernoff (2011) talk about one dedicated Dell half (47%) say they “definitely will” return as a customer. customer who in eight years spent more than 473,000 minutes on However, this positive response drops to roughly a quarter (27%) the Dell computer support forum answering more than 2 million among customers who did not receive a response (Kincy, 2012). customer questions. Why? Because he enjoys helping people and Customers have high expectations for engagement. They expect a hearing them say thank you. company to be active in social media because so many consumers Social media customer support does not always require a 24/7 are already there. In 2012, the number of people using Facebook full-time staff. Intuit, maker of TurboTax, has also turned to social surpassed 1 billion, Google + exceeded 500 million, Twitter has media to support its customers in real time. But the volume of 300 million users and LinkedIn has 180 million users. Businesses customer questions becomes very intense in the months leading have adjusted in the past to offering telephone service, email and up to the April 15 tax deadline. So the company recruits extra live chat. Now demand for service is moving to social networks. employees from all departments to become customer-support An operation like “Comcast Cares” requires a dedicated social- tweeters. That strategy is paying off—it had an impressive average media customer-service department of full-time staff, and response time of four minutes during the 2010 tax season, result- depending on volume, it can be quite a daunting task. One way to ing in an impressive 71% of such customers recommending spread the costs is to leverage more employees. That is what Best TurboTax to others (Li and Bernoff, 2011). Intuit also hosts cus- Buy did when it launched Twelpforce to augment its customer- tomer-support communities where less experienced customers service efforts. Volunteer Best Buy employees sign up with their thank more experienced customers for their advice. The compa- Twitter ID—when it includes the hashtag “#tweplforce,” the tweet ny estimates an astounding 90% reduction in service costs from has the @twelpforce handle with the personalization of “via enlisting the help of its own consumers instead of manning call @employee handle.” This brings the experience of asking the centers (Burghin et al., 2010). expert in the store to a real-time online conversation. The Cannes Examples such as “Dell Hell” and “United Breaks Guitars” Lions case study video for this effort says that more than 2,000 illustrate how social-media brand attacks can spring instanta- expert “blue shirts” race to give the fastest and best answers from neously. And even the best-laid plans cannot account for every- their mobile phones (Fauscette, 2009). Today, Twelpforce has thing. So what if you discover that your brand comes under received and responded to more than 64,032 Tweets with more online attack? E-marketing specialist Rob Stokes (2010) suggests than 47,000 followers. And the Best Buy website aggregates all there are rules to recovering from an online threat to a compa-

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icy that specifies who can speak for your company. Will every employee be allowed to tweet, or will you limit it to a few offi- “THE DISSATISFACTION cial people? Once you decide who will talk for the company, you need to set guidelines for how they should identify themselves STEMMING FROM FAILURE TO and what they can and cannot say. Also, establish whether employees will be tweeting during and/or after work hours. RESPOND VIA SOCIAL CHANNELS Finally, decide whether employee social-media efforts will be required or voluntary (“Social Media: Guide,” 2010). Parature, a social-media customer-service software compa- CAN LEAD TO UP TO A 15% ny, has a somewhat different perspective and suggests the fol- lowing eight-step process for developing a customer-service INCREASE IN THE CHURN RATE strategy (“Eight Steps to Create,” 2012).

FOR EXISTING CUSTOMERS” 1. You need to assemble a team designated for daily mon- itoring, content distribution and engagement efforts. 2. You must consolidate all your current social-media accounts. The average large company has 178 social- media accounts. 3. Then you need a social-media workflow. Who will be — Carol Rozwell, analyst, Gartner the main responders, and who will monitor after hours, weekends and holidays? Also identify experts for goods, service, tech support, billing, etc. 4. Now you need a style guide and response plan. Incorporate existing brand messages, tone of voice ny’s reputation. First, be humble. This starts with realizing that and regulations from legal. It is useful to create scenar- your brand can come under attack no matter how big or small. ios and responses for common questions and/or nega- Second, listen before acting. Understand the scale and scope of tive feedback. the problem and how consumer complaints have evolved. Third, 5. Once you have guidelines, train your employees. Less act right away—responding quickly by acknowledging a wrong than 20% of 1,000 corporate respondents say that their and promising to correct it can help wipe out a brand attack staffs know how to represent the company on social before it gets started. If a customer seems mistaken, present evi- media. dence in a friendly way to help correct his thinking. Fourth, do 6. Always listen and monitor for customer-service issues your best to keep negative pages out of search engines. Even before they escalate and follow industry experts with a though you cannot wipe out negative pages, you can add your large audience. own positive pages and links to drive them off the first page of 7. Make sure you respond positively and quickly by set- search results. This gives customers an opportunity to view pos- ting company-wide expectations for a response time- itive mentions before the negative ones. Fifth, respond via blogs frame. and industry forums. Start a blog and participate in industry 8. Finally, evaluate your efforts regularly and adjust forums to give your company a place to present its side of the accordingly. Part of adjusting to the digital world is story. Sixth, care about your customers—this is really all people having a comfort level with being in constant beta want. Show them that you truly care about their concerns. They mode. give you their money and want good service and respect in return (Stokes, 2010). A last point to consider is that companies should resist the urge to always jump into the latest and greatest digital channel. Setting a plan for social-media customer service A company must first consider whether that digital channel fits DMG Consulting’s Social Media Guide suggests the following its brand, message and customer. Even if everyone is talking up steps for setting up a social-media service plan. The first step to a new social-media channel, if a company’s customers are not activate social-media customer service is to determine your cus- there (and will not likely be there in the future), then the com- tomers’ social-media activity. You do not want to establish pro- pany should not be there, either. Companies need to make sure grams on social-media networks in which your customers are when they jump quickly into a social-media channel that they not talking. Next, you want to establish a customer-service pol- will actually reach their audiences (Fulmer, 2012).

22 · MAY 20, 2013 ADVERTISING AGE HOW TO INTEGRATE SOCIAL MEDIA INTO YOUR MARKETING STRATEGY CONCLUSION

A marketer can no longer consider a communication mix there for a significant change in marketing—it seems time to complete without the inclusion of social media. Marketers today evolve integrated marketing communications (IMC) to a new must wake up to the reality that we are losing control of our mind-set of integrated communications management (ICM). brands to the magnified voice of the consumer. The only way to Good managers plan and direct (IMC), but now they must also regain leverage is to work with and engage consumers when listen, engage and adjust (ICM). To truly leverage the power of and where they are talking online. As a marketing manager, you social media, we must look beyond traditional marketing to have to have an open mind not only when integrating market- include other business departments and our customers. In real- ing communications but also when integrating the consumer’s ity, social media cannot be a subject left to marketing alone. voice into all business activities. Marketing may be assigned Marketers can be the leaders, but this phenomenon must be with leading the charge, but all departments in the organization addressed across departments and include the consumer’s must follow into the social-media landscape. The signs are all social voice.

ABOUT THE AUTHORS

KEITH A. QUESENBERRY MICHAEL K. COOLSEN

is a lecturer in the Center for Leadership Education at Johns Hopkins is an associate professor of marketing in the John L. Grove College University, where he teaches social media, digital advertising and mar- of Business at Shippensburg University. He has a Ph.D. in social psy- keting courses. Previously, he spent 17 years as a creative director and chology from the University of North Carolina at Chapel Hill. His copywriter at agencies such as BBDO and Arnold Worldwide working for research resides at the intersection of consumer behavior and close Fortune 500 corporations like Exxon Mobil, Delta Air Lines, Hershey relationship theory, with a particular focus on investigating the con- Foods and The Washington Post. He is a winner of One Show, Archive sumer-brand relationship. His work has been published in journals Magazine, National ADDYs, PRSA Anvil and OMMA awards. A graduate such as the Journal of Personality and Social Psychology, Social of The Portfolio Center in Atlanta, he has an M.S. in integrated market- Cognition, the International Journal of Integrated Marketing ing communications from West Virginia University and a B.S. in journal- Communications, the Cambridge Handbook of Personal ism/advertising from Temple University. Recently, he published “IMC Relationships, and in conference proceedings for organizations such and the Effies: Use of Integrated Marketing Communications as the Association of Consumer Research Touchpoints Among Effie Award Winners” (Advances in Consumer Research), the in the International Journal of Integrated American Academy of Advertising, the Marketing Communication. He specializes Association for Education in Journalism in creative, strategy and social-media and Mass Communications, and the marketing and blogs about it at Academy of Marketing Science. He was addingtonoise.wordpress.com. also a marketing researcher at Arbor, which has since merged into GfK Custom Research North America.

Keith A. Quesenberry Michael K. Coolsen 410-516-8000 717-477-1587 [email protected] [email protected]

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26 · MAY 20, 2013 ADVERTISING AGE HOW TO INTEGRATE SOCIAL MEDIA INTO YOUR MARKETING STRATEGY

STRATEGIC PARTNERS

Advertising Age partnered with Temerlin Advertising Institute at SMU to sponsor a research contest through the American Academy of Advertising. This is one of the winning papers from that peer-reviewed process. Ad Age is committed to bringing the best academic thinking on current business problems to Advertising Age’s professional audience, and to encouraging productive interaction between the two communities.

AMERICAN ACADEMY OF ADVERTISING

The American Academy of Advertising (AAA) is an organization of advertising scholars and professionals with an interest in advertising and advertising education. The Academy fosters research that is relevant to the field and provides a forum for the exchange of ideas among its academic and professional members. Through the Journal of Advertising, the Journal of Current Issues and Research in Advertising, the Journal of Interactive Advertising and the annual conference Proceedings, the Academy disseminates research findings and scholarly contributions to advertising education and the profession.

TEMERLIN ADVERTISING INSTITUTE AT SMU

The Temerlin Advertising Institute (TAI), named after Lenier Temerlin, an icon of the Dallas advertising industry, is one of few endowed advertising programs in the USA. The Institute enjoys a strong relationship with the ad industry, and a one-of-a kind graduate program focused on advertising responsibility. Situated in a top media and advertising market, the faculty members consist of both industry professionals and academic experts in advertising, marketing and communication. The institute hosts the annual Exxon Mobil lecture series on responsible advertising, advirtues — a blog highlighting positive advertising (http://advirtues.com), and sponsor the worldwide phenomenon of Portfolio Night in Dallas. Student work can be seen at http://smu-creative.com.

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