Hewlett-Packard - 5 Actions to Improve Social Media Effectiveness

The Challenge: Social media has become one of the most important points of contact for consumers. Marketers however, seldom access the gold mine of information waiting on their fan pages. Tech giant, HP does. They’re raising the bar for social interaction by developing an innovative strategy that’s setting the standard for customer engagement through social media.

So, while it is evident that companies are “in” social media they need to start becoming actively involved. A J.D. Power and Associates report notes that “businesses need to understand how their consumers use social media and then develop a strategy that addresses their usage patterns.“

One company who fully embraces this concept is Hewlett Packard. They entered the space by taking two full years to listen to their customs and determine where they were having conversations.

• They grew their social media community from its original 350+ members to over 2.4 million likes/fans on Facebook. Referrals from social networking sites have doubled.

• Referrals from social networking sites have doubled.

• HP’s online "Expert Days" have attracted hundreds of thousands of customers since their inception in 2009.

This activity has empowered employees to directly reach and converse with customers. There has been a ten time increase in blogging and social media activity by employees who go through the company’s social media training program prior to any customer communication involvement.

A key element in HP’s social interactions is that they integrate their social media with all customer touch points, not just for offers and contests. They also optimize and scale social media to ensure consistent customer experiences for different customer segments, geographies and languages.

5 KEY TAKEAWAYS FROM HEWLETT PACKARD:

• Give Customers a Platform for Product Feedback. Through social media channels the company gets valuable feedback about products. They then feed this information to product and content teams for valuable insight into the development of future technology.

• Encourage Community Engagement.  A dedicated staff manages community engagement to provide value for customers. They also recognize customers who assist their fellow social page fans. This program is set to expand for top community contributors.

• Designate Community Ambassadors. HP has over 100 people called "Experts" who answer questions on the Forums. They include both HP customers and HP employees, and provide expert, free, 24-hour real-time access and advice on various topics of customer interest.

• Create Channel Integration. The company is working on a system by which customers can post a question in Facebook that can automatically tap into the HP Support Forum.

• Set Policies and Train Social Staff. HP sets specific social media policy standards. They train all staff involved in social media so that there is both consistency in social experience as well as consistency in brand messaging.

Is Social Media Damaging Your Brand?

The Challenge: Companies who do not monitor what customers are saying about them online—can wind up using social media for damage control rather than for profit.

In a report by Stanford University it was reported that

• 90% of executives claim to understand the impact that social media can have on their organization, however, only 24% of senior managers and 8% of directors surveyed actually receive ongoing reports.

• Approximately half of the companies do not collect this social media information at all.  

If you are not allocating time for brand reputation management, you will never fully know what your customers are saying to you—and more damaging, saying about you to others.

• In a study by JD Power, over 60% of surveyed consumers said they want companies to listen to what they say about them online and to respond.

• And an Aberdeen study on Brand Reputation Management, it was noted that companies that take the time to stay on top of their reputation management are more likely to have a higher customer retention rate.

While many companies have been put in the position of rapid damage control after negative social media chatter, Reebok recently demonstrated their ability to respond quickly, make adjustments, and move forward when consumer voices were raised in protest over a product spokesperson, Rick Ross, after he rapped about drugging a woman and having sex with her without her knowledge.

A well orchestrated campaign by the feminist group, UltraViolet included an online petition signed 50,000 times in 24 hours, a video viewed over 17,000 times, ads on Facebook, and messages to Reebok’s Twitter page. The group called out Reebok regarding its contradictory position of a controversial spokesperson versus its marketing of products to young men and boys and marketing to women and investing in women’s athletics.

As a result the company rapidly severed ties with Rick Ross.

The lesson for all businesses is to truly understand your customers and put in place the ability to listen in every element of the media mix, and react with speed when the voices of your customers are raised--in any medium.

Takeaways:

• It is far easier to cultivate high brand reputation ratings than to do damage control. Create dedicated staff positions to monitor social media on a daily basis to find out what is being said about your business.

• Your monitoring should include searches on all media; search engines, all social media comments on your page(s) or through hash tags, rating sites such as Yelp, and customer complaint sites.

• If a problem arises, don’t delay in acknowledging the situation. Respond honestly and authentically. Do not engage in “corporate speak”.

Duane Reade: Generating Millions of Impressions Through User Generated Content

The Challenge: Since consumers now trust peers more than most brands, Duane Reade, the drugstore chain, utilized their VIP Blogger Team to create user generated content about an important new promotion and launched a comprehensive social strategy. Results include: The Duane Reade Legwear campaign increased Duane Reade brand hosiery sales year over year by close to 20%.

Most consumers are wary of most forms of advertising.  A recent study by Nielsen showed that fewer than half of consumers trust most major advertising channels. On the other hand, 92% trust recommendations from people they know, and 70% trust online consumer opinions.

Duane Reade has been effective in leveraging the power of peer groups. Early in 2012, the New York City drugstore chain launched its VIP Blogger program.  Working with its social media agency, Collective Bias, Duane Reade recruited 20 bloggers with thousands of engaged followers and a clear interest in Duane Reade and its suppliers.  In exchange for perks, special deals, and privileged access to suppliers and events, they agreed to write about Duane Reade. The relationship between the bloggers and the brand is completely transparent. They’re free to write whatever they’d like. Calvin Peters, PR/Social Media Manager for Duane Reade, supervises the program: “Controlling consumer-generated media isn’t something I want to do.  Unlike traditional media, social media conversations are a two-way discourse.” The campaign’s effectiveness depends completely on its authenticity.

According to Peters, “User-generated content or consumer-generated media is not only more trust-worthy, it also runs throughout the shopping experience and afterward.  A great example is our Show Us Some Leg campaign.”  The campaign asks customers to upload their original photos wearing Duane Reade brand hosiery via a Facebook page application. VIP Bloggers built awareness for the campaign with their own pictures and stories. The bloggers provide much of the content and traffic for the brand’s presence on Facebook, Twitter, Pinterest, YouTube and Google+ – even in stores through QR codes.

The results?

1. The Duane Reade Legwear campaign has increased Duane Reade brand hosiery sales year over year by close to 20%.

2. The Show Us Some Leg campaign has generated 10.9 Million Impressions for DR Legwear so far, which is more than all competitor conversation at Duane Reade combined.

3. The Twitter party around Show Us Some Leg helped deliver almost 2 million impressions while trending #DRLegwear throughout. A promoted trend on Twitter is now a $200K media buy and it indicates a “paid promotion” not an organic trend.

4. In 2012, Duane Reade Twitter followers grew from 2,200 to over 200,000; Facebook fans went from 21,000 to over 58,000 by strategically disseminating relevant and dynamic user-generated content.

               

Key Takeaways for Marketers

1. Enlist brand enthusiasts to tell their stories.
Consumers trust their peers.  Find real customers with influence, and encourage them to write about, photograph, or video blog their experiences.

2. Pay attention to customers after they buy the product, not just beforehand.
Duane Reade encouraged customers to share their excitement with a picture contest creating more dynamic consumer-generated media.

3. Understand that user-generated content is not something you can control.
Marketers need to monitor online conversations and can initiate some, but trying to dictate what bloggers or customers say, detracts from their authenticity.
                     
4. Amplify user-generated content via your full social media menu.
Marketers can increase the impact of content by linking to it from other social media platforms, including Facebook, Twitter, YouTube and Pinterest.