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Spring 2010

         The CMO’s Dilemma
         Or How Do We Go Beyond a Token ‘Social’ Gesture




Notes  added
A Play in 3 Parts >
>   The CMO’s Dilemma
> The             CMO’s Dilemma


After  a  year  of  experimentation  in  social  media,  the  CMO  of  a  global  FMCG  
(Fast  Moving  Consumer  Goods)  company  had  high  hopes  for  the  latest  social  
media  program  from  his  brand  team.  This  time,  he  thought,  they  had  
cracked  the  social  media  code.

They  went  to  their  traditional  agency  partners,  they  called  in  the  social  
media  gurus.  The  media  companies  offered  paid  placements  in  social  
networks.  The  advertising  creatives designed  a  clever  Facebook application,  
and  the  PR  team  reached  out  to  some  high-­‐traffic  bloggers.  

The  brand  team  felt  they  had  the  tactics  to  transform  their  traditional  
marketing  campaign  into  a  social  media  campaign.   But,  with  no  real  way  to  
measure  the  impact  , it  just  seemed  like  a  lot  of  work  to  generate  modest  
engagement  online.  The  six  month  campaign  was  coming  to  a  close,  the  
CMO  was  disappointed  – depressed  even.

He  wanted  something  bigger,  something  that  reminded  him  of  mass  media.
>   The 5 Barriers to Overcome
No consensus on an evaluation model




                   3M+fans                                                 100 posts
                                                                               in 7 Days
Is  3M  fans  ‘good’?  Why  not  10m?  How  could  100  posts  possibly  help  a  brand?  Both  of  these  
numbers  lack  any  context.  Both  programs  – iTunes  Facebook everyday  engagement  and  Ponds  
Influencer  Engagement  program  in  China  -­‐ could  be  highly  successful.  But  with  no  
organizational  consensus  around  KPIs,  these  numbers will  mean  different  things  to  different  
people.  
‘Social’ currently planned
                                                      as a channel or tactic




This  Facebook app  is  just  dropped  into  the  brand  page  and  has  no  real  
reason  to  exist.  The  finger-­‐candy  game  may  keep  users  “in”  the  brand  page  
but  that  is  not  what  social  media  engagement  can  really  be…
90% of Facebook interaction
                                     happens in the Wall




And  why  all  the  ‘hoopla’  on  apps  when  most  user  interaction  happens  in  the  
Wall/News  Feed?  That’s  a  different  type  of  engagement  much  more  like  
participating  in  a  community.  Victoria’s  Secret  Pink  has  4m  engaged  fans  
based  on  what  the  post  in  the  Wall.
Buzz vs. Sustained WOM

                                      300000
                                                       A campaign-based culture
         Social Media "Impressions"


                                      250000
                                      200000
                                      150000
                                      100000
                                       50000
                                           0
                                      -50000   1   2   3        4         5         6            7   8


                                                                Months
Most  marketers  – B2C  and  even  B2B  – plan  in  terms  of  a  campaign  usually  
defined  by  the  length  of  the  media  buy.  The  turn  it  on  and  then  turn  it  off  
                                                                BUZZ             Sustained WOM
losing  all  continuity  and  relationship  with  their  customers  and  influencers.  
Time  for  an  ongoing  approach  not  limited  by  campaign  thinking.
No forum for “best practices”

Best  practices  would  tell  the  brand  team  that  they  need  to  resolve  the  3-­‐4  
Nutella fan  pages  to  one  and  to  start  to  actually  use  that  2-­‐way  channel.  This  
one  has  over  1m  fans  and  no  info  in  “info”  or  activity  on  the  Wall.  You  really  
only  need  to  learn  this  lesson  once.
Apologies to the Eat Out restaurant Awards 2009




                                                         Media
         Leadership goes to the biggest budget
Marketing  and  communications  programs  
continue  to  be  lead  strategically  by  
whoever  has  the  biggest  budget,  generally  
media  buying  or  advertising  creative.  Either  
that  or  the  ad  team  does  it  as  they  
historically  articulate  the  brand  in  
expensive  media.  They  may  not  be  the  best  
equipped  to  design  a  social  media-­‐based  
program  meant  to  activate  and  amplify  
word  of  mouth  and  true  engagement.   Time  
to  invite  other  digital  and  social  strategists  
to  the  table  (and  even  the  head  of  the  
table)




        Advertising

                        Leadership goes to the biggest budget
>   The 5 Barriers to Overcome




        No         ‘Social’       A
    consensus     currently              No forum     Leadership
      on an      planned as   campaign                goes to the
                               -based    for “best
    evaluation   a channel               practices”     biggest
      model       or tactic    culture                  budget
>
    The 5 Steps to Social Media
    with Business Impact
Brands  – especially  big,  complex  brands  – can  develop  consensus  on  measurement  KPIs  that  
       matter  to  their  organization.  We  have.  Our  Conversation  Impact  model  is  open  to  everyone  
       and  was  designed  specifically  to  help  brand  marketers  like  ourselves  understand  the  impact  
       of  their  social  media  programs.  

       Agreeing  on  a  model  gives  a  diverse  organization  a  real  way  to  evaluate  all  of  the  
       experiments  that  are  going  on  out  there.  We  report  against  the  sales  and  advocacy  funnel…




Build consensus on a “pretty
good” measurement model
Conversation Impact ™
New Measurement Model

   Awareness



    Evaluation
                        }   Reach




   Engagement

                        }   Preference




                        }
   Conversion



    Loyalty                 Action
Conversation Impact ™
Measure Engagement > Action*

       Reach                       Preference                          Action

                                 Sentiment index of online
  Unique Monthly Visits –
                               conversation (% positive - %                 Sales
 owned and earned media
                                 negative), # / pts change


                                 Share of positive voice in
Time on site, # / % change                                             Registration
                                         category



     Volume of online          Relative net promoter score
                                                                   WOM network action
       conversation                 (NPS) in category



  Message pull-through                                           Blog/Twitter-based action




            *Ogilvy’s Conversation Impact™ Social Media Measurement Model
Embrace a Social Media
Engagement Framework

       There  is  a  more  effective  way  to  design  and  deploy  social  media  programs.  The  following  
       framework  allows  you  to  design  a  program  that:
       • Is  driven  by  what  your  customers  are  saying  and  searching  for
       • Integrates  paid,  earned  and  owned  media  for  the  compound  effect  they  can  deliver
       • Wherever  possible  and  appropriate  invites    not  just  influencers  but  customers  into  a  brand  
         community  (think  Facebook)  for  a  persistent,  long-­‐term  relationship
       • Measures,  optimizes  and  measures  again  
Social Media Engagement Framework

 Active Listening
 Listening to CGM, Sharing Internally and Responding


           EARNED                    OWNED                       PAID

  Social IRM              Social
  (Influencer                                      Engagement
                          Content
  Relationship                                     Advertising
  Management)             Strategy



 Brand Community & CRM
 Cultivating and Interacting with a network of customers or advocates


 Measurement
 Integrated performance and ROI social media measurement
Establish a Learning
                                                        Organization



Do  yourself  a  favor  and  surrender  to  the  idea  of  ongoing  training.  Things  are  changing  so  fast,  
no  seminar  will  ever  cover  off  on  what  you  need  to  know  today  never  mind  tomorrow.  We  
have  developed  a  belt  system    with  over  30  courses  ina our  curriculum  to  stay  share  and  
breed  experts.  
Social Media Training




    Social Media   Social Media       Social Media
     White Belt      Red Belt          Black Belt


     Understand         Participate      Lead
Social Media Training




   Social Media White Belt     Social Media Red Belt       Social Media Black Belt

   Objective: Create team      Objective: Build a group    Objective: Elevate the
   that understands social     of mid-level strategists    best digital strategists to
   media, can speak 360 DI,    trained in our core         be members of our
   recognize opportunities     strategy offering and can   extended team –leading
                               contribute to DI projects   DI projects.

   Training Vehicles: On       Training Vehicles: 2-       Training Vehicle: 2-
   Demand Curriculum, Live     day DI Strategy &           week Strategist in
   Webinars, Office meetings   Execution Bootcamp, Live    Residence immersion &
                               Webinars                    full course


       Understand                  Participate                      Lead
Define Your “Social Brand”

       A  small  but  important  step  includes  taking  the  time  to  define  your  social  brand.  Based  upon  
       your  core  brand  position  and  informed  by  the  sometimes  informal  and  dialogue-­‐centered  
       nature  of  social  media,  how  can  your  brand  team  speak  and  behave  online  to  be  of  service  to  
       people  and  authentic  to  the  brand?  Ask  yourself  some  questions.    
The Social Side of Your Brand

If you met your brand at a party, how would you
describe it?

What voice could your brand speak in?

From within your company, who would be a good
archetype for that voice?

Is your brand more likely to engage in conversation or
help others do the same?

If you could invite your customers over what would you
do together?
The 5 Steps to Social Media
>
    with Business Impact




        Build
      Consensus                    Embrace a
                    Define Long                   Establish a   Define Your
         on a                     Social Media
    “Pretty Good”    and Short                     Learning       “Social
                                  Engagement
    Measurement     Term Goals                   Organization     Brand”
        Model                      Framework
“We may be ahead of
our competitors, but
we’re most definitely
behind consumers.”
   — Simon Clift (former) CMO of Unilever
CONTACT


John H. Bell
Managing Director | 360° Digital Influence
Ogilvy

email:   john.bell@ogilvypr.com
blog:    http://johnbell.typepad.com

Twitter: jbell99

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The CMOs Dilemma, by John Bell

  • 1. Spring 2010 The CMO’s Dilemma Or How Do We Go Beyond a Token ‘Social’ Gesture Notes  added
  • 2. A Play in 3 Parts >
  • 3. > The CMO’s Dilemma
  • 4. > The CMO’s Dilemma After  a  year  of  experimentation  in  social  media,  the  CMO  of  a  global  FMCG   (Fast  Moving  Consumer  Goods)  company  had  high  hopes  for  the  latest  social   media  program  from  his  brand  team.  This  time,  he  thought,  they  had   cracked  the  social  media  code. They  went  to  their  traditional  agency  partners,  they  called  in  the  social   media  gurus.  The  media  companies  offered  paid  placements  in  social   networks.  The  advertising  creatives designed  a  clever  Facebook application,   and  the  PR  team  reached  out  to  some  high-­‐traffic  bloggers.   The  brand  team  felt  they  had  the  tactics  to  transform  their  traditional   marketing  campaign  into  a  social  media  campaign.   But,  with  no  real  way  to   measure  the  impact  , it  just  seemed  like  a  lot  of  work  to  generate  modest   engagement  online.  The  six  month  campaign  was  coming  to  a  close,  the   CMO  was  disappointed  – depressed  even. He  wanted  something  bigger,  something  that  reminded  him  of  mass  media.
  • 5. > The 5 Barriers to Overcome
  • 6. No consensus on an evaluation model 3M+fans 100 posts in 7 Days Is  3M  fans  ‘good’?  Why  not  10m?  How  could  100  posts  possibly  help  a  brand?  Both  of  these   numbers  lack  any  context.  Both  programs  – iTunes  Facebook everyday  engagement  and  Ponds   Influencer  Engagement  program  in  China  -­‐ could  be  highly  successful.  But  with  no   organizational  consensus  around  KPIs,  these  numbers will  mean  different  things  to  different   people.  
  • 7. ‘Social’ currently planned as a channel or tactic This  Facebook app  is  just  dropped  into  the  brand  page  and  has  no  real   reason  to  exist.  The  finger-­‐candy  game  may  keep  users  “in”  the  brand  page   but  that  is  not  what  social  media  engagement  can  really  be…
  • 8. 90% of Facebook interaction happens in the Wall And  why  all  the  ‘hoopla’  on  apps  when  most  user  interaction  happens  in  the   Wall/News  Feed?  That’s  a  different  type  of  engagement  much  more  like   participating  in  a  community.  Victoria’s  Secret  Pink  has  4m  engaged  fans   based  on  what  the  post  in  the  Wall.
  • 9. Buzz vs. Sustained WOM 300000 A campaign-based culture Social Media "Impressions" 250000 200000 150000 100000 50000 0 -50000 1 2 3 4 5 6 7 8 Months Most  marketers  – B2C  and  even  B2B  – plan  in  terms  of  a  campaign  usually   defined  by  the  length  of  the  media  buy.  The  turn  it  on  and  then  turn  it  off   BUZZ Sustained WOM losing  all  continuity  and  relationship  with  their  customers  and  influencers.   Time  for  an  ongoing  approach  not  limited  by  campaign  thinking.
  • 10. No forum for “best practices” Best  practices  would  tell  the  brand  team  that  they  need  to  resolve  the  3-­‐4   Nutella fan  pages  to  one  and  to  start  to  actually  use  that  2-­‐way  channel.  This   one  has  over  1m  fans  and  no  info  in  “info”  or  activity  on  the  Wall.  You  really   only  need  to  learn  this  lesson  once.
  • 11. Apologies to the Eat Out restaurant Awards 2009 Media Leadership goes to the biggest budget Marketing  and  communications  programs   continue  to  be  lead  strategically  by   whoever  has  the  biggest  budget,  generally   media  buying  or  advertising  creative.  Either   that  or  the  ad  team  does  it  as  they   historically  articulate  the  brand  in   expensive  media.  They  may  not  be  the  best   equipped  to  design  a  social  media-­‐based   program  meant  to  activate  and  amplify   word  of  mouth  and  true  engagement.   Time   to  invite  other  digital  and  social  strategists   to  the  table  (and  even  the  head  of  the   table) Advertising Leadership goes to the biggest budget
  • 12. > The 5 Barriers to Overcome No ‘Social’ A consensus currently No forum Leadership on an planned as campaign goes to the -based for “best evaluation a channel practices” biggest model or tactic culture budget
  • 13. > The 5 Steps to Social Media with Business Impact
  • 14. Brands  – especially  big,  complex  brands  – can  develop  consensus  on  measurement  KPIs  that   matter  to  their  organization.  We  have.  Our  Conversation  Impact  model  is  open  to  everyone   and  was  designed  specifically  to  help  brand  marketers  like  ourselves  understand  the  impact   of  their  social  media  programs.   Agreeing  on  a  model  gives  a  diverse  organization  a  real  way  to  evaluate  all  of  the   experiments  that  are  going  on  out  there.  We  report  against  the  sales  and  advocacy  funnel… Build consensus on a “pretty good” measurement model
  • 15. Conversation Impact ™ New Measurement Model Awareness Evaluation } Reach Engagement } Preference } Conversion Loyalty Action
  • 16. Conversation Impact ™ Measure Engagement > Action* Reach Preference Action Sentiment index of online Unique Monthly Visits – conversation (% positive - % Sales owned and earned media negative), # / pts change Share of positive voice in Time on site, # / % change Registration category Volume of online Relative net promoter score WOM network action conversation (NPS) in category Message pull-through Blog/Twitter-based action *Ogilvy’s Conversation Impact™ Social Media Measurement Model
  • 17. Embrace a Social Media Engagement Framework There  is  a  more  effective  way  to  design  and  deploy  social  media  programs.  The  following   framework  allows  you  to  design  a  program  that: • Is  driven  by  what  your  customers  are  saying  and  searching  for • Integrates  paid,  earned  and  owned  media  for  the  compound  effect  they  can  deliver • Wherever  possible  and  appropriate  invites    not  just  influencers  but  customers  into  a  brand   community  (think  Facebook)  for  a  persistent,  long-­‐term  relationship • Measures,  optimizes  and  measures  again  
  • 18. Social Media Engagement Framework Active Listening Listening to CGM, Sharing Internally and Responding EARNED OWNED PAID Social IRM Social (Influencer Engagement Content Relationship Advertising Management) Strategy Brand Community & CRM Cultivating and Interacting with a network of customers or advocates Measurement Integrated performance and ROI social media measurement
  • 19. Establish a Learning Organization Do  yourself  a  favor  and  surrender  to  the  idea  of  ongoing  training.  Things  are  changing  so  fast,   no  seminar  will  ever  cover  off  on  what  you  need  to  know  today  never  mind  tomorrow.  We   have  developed  a  belt  system    with  over  30  courses  ina our  curriculum  to  stay  share  and   breed  experts.  
  • 20. Social Media Training Social Media Social Media Social Media White Belt Red Belt Black Belt Understand Participate Lead
  • 21. Social Media Training Social Media White Belt Social Media Red Belt Social Media Black Belt Objective: Create team Objective: Build a group Objective: Elevate the that understands social of mid-level strategists best digital strategists to media, can speak 360 DI, trained in our core be members of our recognize opportunities strategy offering and can extended team –leading contribute to DI projects DI projects. Training Vehicles: On Training Vehicles: 2- Training Vehicle: 2- Demand Curriculum, Live day DI Strategy & week Strategist in Webinars, Office meetings Execution Bootcamp, Live Residence immersion & Webinars full course Understand Participate Lead
  • 22. Define Your “Social Brand” A  small  but  important  step  includes  taking  the  time  to  define  your  social  brand.  Based  upon   your  core  brand  position  and  informed  by  the  sometimes  informal  and  dialogue-­‐centered   nature  of  social  media,  how  can  your  brand  team  speak  and  behave  online  to  be  of  service  to   people  and  authentic  to  the  brand?  Ask  yourself  some  questions.    
  • 23. The Social Side of Your Brand If you met your brand at a party, how would you describe it? What voice could your brand speak in? From within your company, who would be a good archetype for that voice? Is your brand more likely to engage in conversation or help others do the same? If you could invite your customers over what would you do together?
  • 24. The 5 Steps to Social Media > with Business Impact Build Consensus Embrace a Define Long Establish a Define Your on a Social Media “Pretty Good” and Short Learning “Social Engagement Measurement Term Goals Organization Brand” Model Framework
  • 25. “We may be ahead of our competitors, but we’re most definitely behind consumers.” — Simon Clift (former) CMO of Unilever
  • 26. CONTACT John H. Bell Managing Director | 360° Digital Influence Ogilvy email: john.bell@ogilvypr.com blog: http://johnbell.typepad.com Twitter: jbell99