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Ernan’s Insights on Marketing Best Practices

Showing posts with label social media revenue. Show all posts
Showing posts with label social media revenue. Show all posts

Tuesday, July 8, 2014

5 Smart Social Community Strategies That Boost Sales

Business 2 Community
By Ernan Roman
Reprinted from: Business 2 Community


The Challenge: Social media has evolved into more than just another advertising channel, with communities transcending traditional social media channels. To make the most of these new opportunities, marketers need to learn what it takes to drive sales through relevant and targeted conversations.
Strategy One: Be authentic to your brand… and to customers
Online CommunityEvery brand that succeeds on social media does so by achieving a consistent voice that’s authentic to its core message. By connecting with a responsive social audience through communities, meaningful conversations become building blocks for achieving sales objectives. For example, CLIF Bar in keeping with its message of fitness has joined the People For Bikes initiative, which is consistent with its brand message, and provides a way to directly interact with their proven customers.
Per Eric Nystrom, Director, Social Media Services Group at Dell, “In today’s world people are not interested in talking to brand spokespeople or marketers. They are interested in connecting with empowered employees and subject matter experts. Social is about relationship building”.
Strategy Two: Connect through communities
Social communities resonate with customers and let brands connect on a deeper level via viral conversations which can far surpass the reach of a singular post on a social wall. As a matter of fact, social interactions now go beyond traditional social media into mobile experiences, television events, webinars, chats, and more. Two-way interactions enable customers to become part of the brand because they can gain answers to questions, address objections, and understand brand value. Coca Cola took advantage of the recent World Cup with the goal of creating the most inclusive FIFA World CupTM Coca-Cola campaign… ever. Emmanuel Seuge, Vice President Global Alliances & Ventures stated that, “…we set out to create the most inclusive and participatory FIFA World Cup™ ever. … we gave fans from all around the world the unprecedented opportunity to be a part of the greatest soccer stage of all… “
Strategy Three: Really understand how your customers connect
Turns out the way people interact on social media is similar to that of real life. In a joint study by the University of Georgia, Pew Research Center, and Social Media Foundation it was discovered that when people interact in social media they create patterns of social interaction. Identifying the specific groups of people talking about you, lets you understand who they are, what they are saying, and what connects them to your brand.
Strategy Four: Know where to find your customers and how they communicate
Additionally, the same study found that when marketers, target key meaningful communities they also zero in on key conversations, key words, and hashtags being used about the brand.
Gatorade reached out to its core customers with a “Beat the Heat” campaign that let them connect with their key groups of customers with a message of safety and health.
Strategy Five: Understand what information customers need
Sears has created Shop Your Way Rewards which gives customers a place to find product information, ask salespeople questions, and share recommendations.
According to Eric Jaffe, Senior VP “In the grand scheme of things, social media is …about building engagement and promoting conversations… around our brand…. We are focusing around the members, and building relationships with them that go beyond what they purchase from us…. Groups, especially social communities, are the most valuable to retailers….Highly engaged members end up spending more and — more importantly — shop more frequently.”
5 Takeaways that boost sales through social communities
1. Engage consistently in a manner that that reinforces your core brand message. Make sure that every channel delivers a reinforcing statement that helps customers move towards a purchase.
2. Understand which groups are the most valuable to your sales objectives. Not all consumers or social audiences have a purchase intent. Understand what social avenues best address buyers’ needs for actual purchase information.
3. Do what it takes to address consumer needs. Put in place strategies that let actual staff members interact with potential buyers so that they have access to the brand and have the resources necessary to move forward with a purchase.
4. Empower consumers to strengthen their voice. By giving your customers a platform you are empowering and respecting their voice.
5. Deliver the latest information, news and trends about your brand. If customers do not fully understand why they need to buy, they won’t go down the purchase journey with your brand. Social communities let existing customers and potential buyers understand what you are offering and your brand’s value proposition.

Monday, January 7, 2013

Starbucks: Social Media Revenue Based on Relationships

The Challenge: How can brands turn their social media fans into revenue? For Starbucks, success through social media begins with a commitment to relationship-building, not sales.
Social Network RevenueMany companies concentrate social media efforts on getting as many fans as possible, but focusing just on the number of fans misses their true value - they are loyal customers who have raised their hands to say they want a relationship.
The real win is achieved by engaging with customers. An Ad Age study found that only 1% of the Facebook fans of major brands engaged with the brand pages in a given month. One-time promotions to increase the number of fans rarely produce long-term benefits. IBM's Yunchun Lee writes, "That isn't to say that CMOs shouldn't strive to build a fan base. The issue is how to do this in a productive way. There are no short cuts. Winning a loyal customer begins with matching a great product or service with a flawless and repeatable customer experience." Social media marketing requires a long-term commitment to enriching the customer experience.
Starbucks is a great example of a company taking the right approach. In an interview with Adweek , Starbuck’s Alexandra Wheeler said that the firm’s social media strategy “isn’t a marketing initiative. It isn’t a PR initiative. It’s cultivating and creating great consumer value and great consumer relationships.” Starbucks treats its fans to a steady stream of special deals and a richer experience than they’d get solely by going to a store, including interesting background stories on coffees and great photography of merchandise. Starbucks also encourages fans to share all of this with their friends, which spreads the good will and increases the likelihood that posts will appear more widely in newsfeeds.
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The results?
2. According to a joint study by comScore and Facebook, Starbuck organically reaches more non-fans than fans with its posts on its Facebook brand page. This means that fans engaging with or forwarding content more than doubles the reach of the fanbase – a process Facebook calls amplification.
3. The same study also shows that exposure to a Starbucks post leads to 38% increase in in-store purchases.
Key Takeaways for Marketers
1. Don’t just add fans, build a genuine connection with them.
Although a large fan-base is valuable, it should be based on a genuine connection with the brand. Make it a long-term strategy to identify why consumers love your brand and use social media to build on this.
2. Make engagement worthwhile.
Deliver content that fans want and will forward to others. Great photography, stories about coffee, exclusive deals – even taking a stand on controversial issues -- are ways Starbucks does this.
3. Use the brand page as a listening tool.
Fans give invaluable information with their likes, comments and user-generated content. Respond to any complaints, or proactively offer solutions as customer needs arise.