This is an intro slideshare for AppAddictive training series - Social Media has become an integral part of Marketing and offers an opportunity to influence consumers throughout their purchase decisions. We will discuss the best framework an organization can adapt to leverage the functions of Social Media and develop an effective Social Media Strategy. You will gain an understanding of Word of Mouth and in our training learn how to set up WOM benchmarks and KPI's to measure effectiveness of any marketing initiative.

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8. Old Advertising Model Killed by the
Internet & Personal Tech
Fails to describe today’s consumer purchase decisions:
1. Assumes: Mass Media educates consumers. Consumers
are overwhelmed and tune out.
2. Assumes: Linear path to purchase. Experience with
is repetitive.
3. Assumes: Starts with many funnel down to few. Today‟s
consumers are empowered to research more options.
McKinsey & Company, April 2009

9. New Model: Customer Decision Journey
Active Evaluation Path: Consumer ads or subtracts brands based on
perception as they evaluate what they want.
2. Evaluate
6. Bond
Initial Loyalty Loop: Consumer decides
Consideration to choose same brand for future Moment of
1. Consider
Set: based on purchases. 2 Types of Loyalty* 3. Buy Purchase:
brand perceptions Ultimately, the
Trigger consumer selects
and exposure to
recent touch points one brand
Post Purchase Path: Consumer builds expectations based on experience to inform
next decision. Shares their experience with peers.
*2 Types of Loyal Consumers:
Active Loyalists - Stick with the brand and recommend
Passive Loyalists – stay with the brand because of convenience but are open to
McKinsey & Company, April 2009 messages from competitors

10. McKinsey & Company, April 2009

12. 1. Monitor 2. Respond 3. Amplify 4. Lead
To consumers‟
Steps in the Consumer Decision Journey
Social channel current positive Change in
for comments activity/tone sentiment or
trends, insights behavior
Consider Brand Crisis Referrals and Brand content
monitoring Management recommendations awareness
Evaluate Product
launches
Buy Targeted
deals, offers
Experience Customer Fostering Customer
service communities input
Advocate Brand Advocacy
Bond
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McKinsey & Company, April 2012

13. Social Listening Study
Identified: consumers are
skeptical about
„Effectiveness‟, Too
Waxy, „Fake Hair‟
commercials
P&G Identified Influencer with
right Tone of Voice
Nadine Jolie Beauty Blogger
& Author: Beauty
Confidential: The No
Preaching, No Lies, Advice-
You'll-Actually-Use Guide to
Looking Your Best
Not your typical “Celebrity
Model”

14. Twelpforce has responded to near 63K customer inquiries via
Twitter, enlisted 2600 employees to share their knowledge, and paid for
itself via extensive PR coverage, enhanced brand perceptions, and
http://www.fastcompany.com/1648739/twelpforce-marketing-
potential savings to the call center isn%E2%80%99t-marketing

15. Groupon and Gilt Groupe provide consumers with credit for
each first-time purchaser they refer. McKinsey‟s research
shows that direct recommendations from peers generate
engagement rates 30x higher than traditional online
advertising.

16. AmEx Sync Program
Twitter:
brands to promote special offers on Twitter that
would be made available exclusively to users
tweeting specific hashtags.
#AmExWholeFoods - they would get an automatic 20
percent discount on their next purchase at Whole
Foods when they used their AmEx card

17. Bonobos held a “Twixlusive,” a 24-hour sale…
Incentivized Twitter followers by unlocking a
discount code after its messages were resent a
certain number of times.
As a result of 100 consumers bought products from
the site for the first time - 1,200% ROI
Twitter is 13x more cost effective than any other
channel for Bonobos
https://business.twitter.com/en/optimize/case-studies/bonobos/

18. How does the McKinsey Framework apply to
your Organization?
LEARN MORE…
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EMAIL: nyc@appaddictive.com
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20. Word of Mouth play a crucial role
in Influencing Consumers, especially in
Emerging Markets
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McKinsey & Company, April 2010

21. 8% to 10% of consumers are influential -
whose common factor is trust and competence
Influentials typically generate 3X WOM
messages than non-influentials do
Each message has 4X more impact on a
recipient’s purchasing decision
About 1% of these people are Digital
Influencers most notably, bloggers with
disproportionate power
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McKinsey & Company, April 2010

22. KPI: WOM Equity - Average sales impact of a
brand message multiplied by the number of WOM
messages
“High Impact recommendation from close
relationship is 50x more likely to Trigger
purchase than Low Impact by a stranger”
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23. Learn How to Create Measurable
WORD OF MOUTH KPI’s
SIGN UP FOR APPADDICTIVE TRAINING:
EMAIL: nyc@appaddictive.com
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25. 5 Steps to Developing a Social Media Strategy:
1. Set Objective: focus on critical Touch Points and
barriers to overcome
2. Understand who your “Active Loyalists” and
“High Potential” costumers are
3. Identify & select best forums to engage
4. Engage & Lead your Target Audience
5. Foster Advocacy & Bonding – connect Loyalists &
High Potentials
Start with an assessment of current efforts…

26. LEARN TO CREATE AND
IMPLEMENT EFFECTIVE SOCIAL
MEDIA STRATEGIES
SIGN UP FOR APPADDICTIVE TRAINING
EMAIL: nyc@appaddictive.com
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27. Thanks!