Social Media Strategies for Retailers and Brands Nielsen Uk Webinar 21.07.09

Listening & Engaging:
A Social Media Framework for Retailers

21st July, 2009

Maya Swedowsky – Research Manager - maya.swedowsky@nielsen.com
Alex Burmaster – Communications Director – alex.burmaster@nielsen.com

While online sales have grown steadily, the
share of online sales remains relatively small

250 4%

Percent of UK Retail Sales
Pounds (Millions)

200
3%

150
2%
100

1%
50

0 Sep-08 0%
Feb-08

Feb-09
Jan-08

Jun-08

Oct-08

Jan-09
Apr-08

Aug-08

Apr-09
Nov-07

Dec-07

Jul-08

Nov-08

Dec-08
Mar-08

Mar-09
May-08

May-09
Retail E-Commerce Sales % of Total Retail Sales

2
Source: UK Office of National Statistics © 2009 The Nielsen Company
www.nielsen-online.com / www.nielsen.com

However, what is becoming abundantly clear is
the influence of the Internet on offline
purchasing
• Site to stores: What impact does my Web site have on sales that are
transacted in my shops?

• Online advertising on offline sales: What impact does my online
advertising have on offline sales?

• Social media: What are people saying in social media about my brick
and mortar business? What can I do about it?

Key takeaway: What happens online
does not stay online

3
© 2009 The Nielsen Company

What does this mean?

• Visibility into Internet behaviours is critical across all levels
of the retail organisation

• Social media strategy cannot be relegated to the Internet
team in the basement

4

Key Findings
• Consumer-Generated Media
Overview
Establishing relevancy for retailers
• Listening
Overview
Private label case study
• Engaging
Overview
Best Practices
• Final Advice
• Q&A

5

From early newsgroups to Twitter, consumer-
Our CGM Dataset
generated media (CGM) has come a long way
and continues to grow rapidly

Social
Ratings & Co-creation networks
Types of Consumer-Generated Media

review sites Micro-
community
sites

Twitter
Video
Feedback Consumer
portals blogs
Discussion
forums
Mobile
Media Audio blogs
blogs blogs
Usenet
newsgroups Groups
Marketer Video blogs
blogs

Early-Stage Internet Today

7

Twitter no longer just for techies -
Visitation up over 1,700% YOY as celebs and gen pop jump
on the bandwagon
Change in UK CGM Stats, YOY UK Unique Audience (Millions) for Twitter, Facebook,
YouTube and MySpace, June 2008 – June 2009
Metric June ‘08 vs.
June ‘09
20 82% YOY
# unique visitors +24%
Time per person +86%

Unique Audience (Millions)
15 25% YOY
Who’s engaging in UK CGM?
10
Demo Index
Gender Male 98 19% YOY
Female 102 5
Age 12 – 17 102 1,742% YOY
18-34 112
0
35 – 49 105

Dec-08

Mar-09
Oct-08

Jan-09
Jul-08

Sep-08

May-09
Jun-08

Feb-09

Jun-09
Nov-08
Aug-08

Apr-09
50+ 91
HH £20K –£30K 101
income £30K–£50K 99
£50K+ 101 Twitter Facebook
YouTube MySpace

8
Source: NetView, Home & Work, June 2008 – June 2009 © 2009 The Nielsen Company

So, why is Social Media so big?

• Satisfies emotional need to be heard

• Gives ability to connect with one another

• Need to create and make change

• Allows us to promote the things and people we love

• Easy, low barriers to entry, technology

9

Purchase consideration process has always been
a social endeavour; CGM brings it to a whole new
level
• CGM expands a shopper’s personal network of just a handful of
people to hundreds, if not thousands, of people

• Advocacy has always existed, but social media has made this
stage even more critical, amplifying the size of the audience
reached

Research & Trial / Multiplier
Awareness Loyalty Advocacy
Consideration Purchase Effect

10

CGM provides Retailers with two key
opportunities: Listen and Engage
1. Listen – Observe naturally-occurring online discussion to understand
consumer attitudes and needs, and answer key business questions
○ The promise of listening is compelling
○ Acts as barometer for passion
○ Provides early detection of risks, opportunities, happens in real-
time – fast!
○ Enhances current research methods: “focus the focus group,” ask
the right questions

2. Engage – Proactively and transparently encourage and take part in
online conversations about you and the products you sell.

11

Here’s how all companies should be thinking
about listening…
• Augment existing research, layer CGM into customer satisfaction tracking

Customer • Keep finger on pulse of consumer Crowd-
Brand Health Tracking
Service &
In-Sore Corporate
.Com
sentiment toward brand
Experience Comm.
Experience Products Sourcing
Checkout
• Delve into specific issues facing brand
Consumer Insight
• Identify opportunities, ideas

Campaign Planning & • Assess impact of campaign; is marketing
Tracking message resonating?

• Uncover and prioritize threats to brand
Reputation Monitoring image in real-time

Online Customer • Identify customers in need of support and
Relations the issues they are discussing

13

And here’s how you should be thinking about
listening as a Retailer
In-Store Experience .Com Experience

• Customer service • Informational resource
Products
Crowd-
Sourcing
• Return/voucher policy • Transactions
• Layout • Delivery charges
• Merchandising • Weekly ads
• Locations

Products Marketing

• Selection
• Availability • Brand health – charity,
• Pricing sustainability policies
• Quality • Community relations
• Private label • Vouchers & circulars
• Trial sizes

14

Listening: Private Label Case Study

Nielsen Online captures and analyzes CGM to
gain insight into consumer perception and needs

Social
Blogs
Networks

Forums Twitter

Nielsen Online Content Reservoir Analyst Team
• Over 110M blogs • Over 10 years of social
• Tens of thousands of forums and media expertise
groups • Industry-focused
• Social networks (e.g. Facebook) analysts
and micro-blogging (i.e. Twitter)
platforms

16

“Own brand” discussion driven by Baby category
Store brands
deemed “cheaper”
and “less
expensive,” but
essentially the
“same” as big
names (i.e. just as
“good”)
Shoppers most
closely associate
own brands with
the Baby category

Organic grocery
emerges as
potential
opportunity

Kirkland is the
only own brand
mentioned
explicitly
Brand Association Map™

17
Note: Timeframe: last 90 days as of 8th May 2009 © 2009 The Nielsen Company

Passion for Costco’s products, service drive its
disproportionately large share of voice
• When fans and employees noticed that Costco did not have an official Facebook Page, they
created multiple Pages, with some attracting more than 50,000 fans. To put this in perspective, the
largest BJ’s Facebook Page has just over 200 fans .
“Going to costco = religious experience”

“I love Costco. :) It is one of my favorite places ever. Literally”

Market Share Based on 2008 Revenue Buzz Share

Source: United States Securities and Exchange Commission 18
Buzz share is depicted as a percentage of 546,275 mentions of Costco, Sam’s © 2009 The Nielsen Company
Club and BJ’s in 2008

Costco’s private label line, Kirkland,
maintains steady lead over club own brand
competitors
Buzz Volume for the Own Brands of Costco, BJ’s and Sam’s Club

• Own brand discussion tends
to account for less than 5%
of club store buzz. More
commonly discussed topics
include:
• Prices
• Membership fees
• Name brand products

19
Buzz volume is depicted as a percentage of 343,043,278 messages © 2009 The Nielsen Company
occurring between November 16, 2008 and May 9, 2009. www.nielsen-online.com / www.nielsen.com

Price, comparisons to big name brands
drive club own brand discussion
Topics Driving Discussion for the Own Brands of Costco, BJ’s and Sam’s Club

A
A BJ’s own brands yield greatest
share of discussion about
B price as parents discuss
saving money by purchasing
A Baby products in bulk; for BJ’s
private label products, price
trumps quality

B Costco’s private label line
yields the smallest share of
comparisons to big name
brands, pointing to the
possibility that Kirkland could
be on its way to being
considered a brand with an
independent identity

20
Note: n =100 messages for each retailer, timeframe = Q1 2009; topics accounting
for less than 3% of discussion have been removed for ease of viewing www.nielsen-online.com / www.nielsen.com

Baby category dominates club own brand buzz,
presenting a large opportunity, especially for BJ’s
Product Categories Referenced in Discussion About the Own Brands of Costco, BJ’s and Sam’s Club

A

A Almost two-thirds of
discussion about
BJ’s own brands
focuses on nappies,
formula and baby
wipes

21
Note: n =100 messages for each retailer, timeframe = Q1 2009 © 2009 The Nielsen Company

Despite FDA rules, some mums are reticent
to use generic formula
BARRIERS TO ENTRY “OK so now that Jenna is FF quite a bit, I realize just
how expensive this stuff is! I have been using the
Enfamil Lipil and she loves it. I know there are
Safety concerns, lack of generic formulas and the Berkely & Jensen
awareness of FDA regulation brand is SO much cheaper (BJ's Wholesale
brand). But, I am gun-shy to use it. Anyone else
nervous to use generic formulas or is it just me??”
- iVillage.com messageboards, 03/05/09

BARRIERS TO ENTRY
“Has anyone used the Sam's club brand
diapers? Do you like them? I was thinking
about trying them, but it's such a huge box.
Large package sizes
Does anyone know who makes them? If they
are sold at another store as their brand I
could buy a smaller package.”
- Ovusoft.com, 02/24/09

22

Engaging

“With social media is it about a true authentic connection with an
audience…It's a way to engage people and it's an augment for your
product... Don't think of it as a substitute for traditional marketing…It's a
great amplification to what you are already doing.”
John Andrews, senior manager of emerging media for Wal-Mart

Almost two-thirds of Retailers have already
invested in CGM; another 22% plan to get
involved within the next 12 months*

• 31% of Retailers say that social network presences
will perform better as a marketing vehicle than paid
search or search engine optimization in 2009 (Source:
Internet Retailer survey)

• Not sure how to get involved? That’s why we’re here
today!

24
*Source: Forrester Research © 2009 The Nielsen Company

Use CGM to power your business by enhancing
your website and leveraging 3rd party tools

Marketing Campaigns • Drive awareness, attract new customers
Customer Crowd-
In-Sore Corporate
.Com
Experience• Increase customerProducts
Service & satisfaction through
Sourcing
Customer Service Comm.
Experience
Checkout proactive outreach and timely response

Corporate • Give company a voice and personal touch
Communication • Manage crises, promote transparency

• Take risk out of buying new products
Product Reviews
• Promote transparency

• Leverage your customers’ ideas for product
Crowd-Sourcing development

Internal • Increase employee satisfaction, service
Communication • Product development

25

Give shoppers a reason to visit your website and
keep them engaged, but focus majority of effort on
expanding your footprint and reaching shoppers
where they are already congregating
Retailer Third Party
Website Tools

Forum /
Corporate
Community
Blog Social Blogs, Forums,
Product
Networks Social Shopping &
Reviews
Product Review
Social Chat
Bookmarking Functionality Twitter Video

Proactively and transparently encourage online conversations, participate and
react quickly. All forms of engagement should support common goal/voice.

26

Best Practices: Being Social
ASOS’s Social Communities – ASOS Life Twitter
Community site containing employee blogs,
What is it? P2P help/answer section, seeks consumer
ideas, gossip

Integration – same log-in as e-commerce site
Why we like it
– just have to choose a username
Personal – gives ASOS a human element –
blogs/pictures

27

Best Practices: Customer Service
Zappos’s 360 Degree Customer Service
Twitter as key platform for providing customer
What is it? service, in addition to more traditional outlets
(24/7 phone line, email)

Immediate – reaches shoppers where they’re
Why we like it
already congregating
Personal – gives Zappos a human element

28

Best Practices: Product Reviews
Wal-Mart’s Product Reviews

What is it? Product review platform, includes free-form text as
well as assigning # of stars

Why we like it Active – Wal-Mart reviews have accumulated
critical mass
Transparent – feedback is not censored; W-M
posts one star and five star reviews alike
Personal – allows customers to share photos of
themselves using the product
Easy to Share – ability to share review via Twitter,
Facebook, Digg and del.ici.ous
Connects Customers - customer Q&A Exchange
gives customers the opportunity to ask each other
very specific product-related questions before
making a purchase

What’s next? Video – third party review sites (e.g. Expo TV) and
a few retailers (e.g. Amazon) allow customers to
post video reviews
Expert Reviews – have industry experts share
professional reviews by video

29

Best Practices: Crowd-sourcing
Starbuck’s My Starbucks Idea

What is it? Micro-site encourages customers to submit
ideas related to Starbucks products,
experience and community involvement

Why we like it Different - one of the few companies proactively
leveraging customers for product development
Transparent - gives readers an ongoing sense of
involvement by categorizing submitted ideas as
“under review,” “reviewed,” “coming soon” and
“launched”
Socially Responsible - Starbucks isn’t just
taking by asking customers for product ideas, it is
also giving by making changes to its
environmental practices and community
involvement, based on customer input
Encourages Community - ability for customers
to talk to each other and Starbuck employees

30

Best Practices: Internal Communication
Best Buy’s Blue Shirt Nation Mix

What is it? Private social media platform for Best
Buy’s 150,000 employees encourages
communication and collaboration.

Why we like it Different - one of the few retailers using
social media internally
Highlights Importance of Customer
Service – Best Buy believes that its
employees are one of its best assets, as
evidenced by its TV commercials,
including its latest “True Stories”
campaign
Enhances Employee Satisfaction -
allows engaged employees to share their
thoughts and make proactive contributions
to the company

31

Final Advice
• What happens online does not stay online
• Assume consumer control/power will grow – listen to your customers
• Get the listening piece right – no short cuts
• Engage, participate, sense & respond
• Nurture and protect brand credibility by being honest, open and
transparent – introduce yourself!
• Do not neglect your website, it is one of your best marketing vehicles…
• But focus majority of effort on reaching customers where they’re already
congregating
• Rethink the strategic role of customer service
• Think beyond loyalty to “advocacy”
• Learn from everyone in your organization

32

Thank you.
For more information/questions contact:

Alex Burmaster
alex.burmaster@nielsen.com
+44 (0) 20 7014 0597

Or

Maya Swedowsky
maya.swedowsky@nielsen.com
+1 646 654 7839


Social Media Strategies for Retailers and Brands Nielsen Uk Webinar 21.07.09

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (17)

Similar a Social Media Strategies for Retailers and Brands Nielsen Uk Webinar 21.07.09

Similar a Social Media Strategies for Retailers and Brands Nielsen Uk Webinar 21.07.09 (20)

Más de Victoria Alexis

Más de Victoria Alexis (6)

Social Media Strategies for Retailers and Brands Nielsen Uk Webinar 21.07.09