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Beeckestijn Business School
Managing Brands in Digital and Social Channels



                                          1
Hans Molenaar
2
2




                    Marketing
                    Science Award
Beeckestijn Business School
3
Agenda
4


       Observations
       Channels
       Cases
       Models
       Conclusions
5




    Hijacking for
    Beginners…
6
7
8
The „shift‟
9
9




                    •Assembly                           •Realtime
         Products   •Push                      Social   •Wisdom of crowds
                    •Mass production                    •Web 3.0


                    •PMC‟s                              •Alliances

         Markets                           Networks
                    •Segmentation                       •Integrations
                    •Branding                           •Dialogue
                    •Mass media                         •Web 2.0

                                                        •CRM
                    •Servicing
        Customers                         Interaction
                                                        •EDM
                    •Database mkg
                                                        •1:1
                    •Push communication
                                                        •WEB 1.0
Media don‟t disappear, but…
10
                                             Personal communication




                  Mobile Internet          Email




                                          PC web
     Low reach
                                                                                      High reach
                                                                      Print

                                    Digital TV
                                                                        Analogue TV

                                                          Radio
                 Cinema




                                                 Mass communication
11
12




     BRANDS




     TRIGGERS




     DIALOGUE
BREAK UP
WHY HAVE SOCIAL MEDIA AND WORTH OF MOUTH SUCH AN IMPACT ?
Trust
15
16
17
Titel
18
From mass media to digital & social media
19
20
20
Dutch Telco provider
21                                                                                                                               = traffic
                                                                                                                                  share

     Commercial traffic target                             18.000                                                              = Cost per
                                                                                                                                 Order
     CHANNEL




                                 40%                 2%               12%               8%              31%              11%


                    Direct              Affiliate          Email             Display          Search           Social
                                 CPO                CPO               CPO              CPO              CPO             CPO
                                  7,-               19,-               6,-             25,-             21,-             9,-



     Traffic         76.000               48.000            16.000            10.000           44.000           5.000




                                                                      40%
     CONVERSION




                                                                      2%


                                                                      12%


                                                                      8%


                                                                     31%


                                                                       11%
WHAT ARE RIKS OF NOT BEING SOCIAL ?
23
24
25
26
What Kryptonite should have done:
27


        Use influential opinion leaders (celebrities,
         subculture leaders, etc)

        Responded to the blogs immediately

        Use social and digital media to interact

        Have a community and fanbase
28
THAT IS NOT POSSIBLE IN B2B !
30
Jeff Jarvis
31
32
Stockprice Dell
33
Dell vs Nasdaq
34
35
36
37
38
TRANSPARANCY
40
41
42


     "They reached out to
         bloggers; they
      blogged; they found
        ways to listen to
         and follow the
         advice of their
        customers. They
           joined the
      conversation. That‟s
         all we asked.“
          Jeff Jarvis
IT IS HAPPENING EVERY DAY
Managing brands in digital and social channels
NOT ONLY TO AVOID CRISES
46
47
47
48




     John Deere and the Chip Foose
     custom 4020 tractor contest
49
Why ?
50
50
             Service = ???
BUT WE SELL BORING STUFF !
52
53
IT ALL STARTS WITH A VISION
55
55
BUT THAT DOESN‟T WORK IN B2B !
57
57
“Selling the sizzle not the digger”
58
58
SO WHAT THEORY OR CONCEPTS CAN HELP US ?
60
The Economics of Collaboration
61




                                                                  Mass
            Self-
     Organization                                             Collaboration




       Value                                                   Business
      Creation                                                 Webs


                                        Extended
                                        Enterprise



      Traditional      Industrial Age
       Hierarchy        Corporation

                    Physical                                   Knowledge
                                         Critical Resources
                    Financial
Two key succesfactors
62




     1.   Being Open

     2.   Interacting and Sharing
63
Likeonomics
64
64
65
HOW TO MEASURE ?
67
Netpromotor scores by Industry
68
68




                      Financials                   Consumer electronics                   Telco

                     Churn 10%                                      Churn 25%          Churn10%
                       NPS -47%                                      NPS -35%          NPS -29%




     Source: TOTE-M Consumer Research on Loyalty, (Potential) Churn and Testimonials
The Impact on customer value
69
69


                                        Buyer Economics          Referral Economics


                              $ 5000                                                                   $ 5000
                                                                                                                 Promoter

                              $ 4000                                                                   $ 4000


                              $ 3000       Promoter                                                    $ 3000
                                                                                                                            Average
       Total Customer Worth




                                                                                Total Customer Worth
                              $ 2000                                                                   $ 2000
                                                       Average
                                                                 Detractor                                                               Detractor

                              $ 1000                                                                   $ 1000


                                  $0                                                                       $0


                              $ -1000                                                                  $ -1000


                              $ -2000                                                                  $ -2000
                                          B2C:High Tech: Computer Hardware                                             Apple Computers


     Source: Satmetrix. Exploring the relationship between Net Promoter and Word-of-Mouth in the computer hardware industry.
WILL EVERYTHING BECOME DIGITAL ?
The Google (14 years old) direction
71

(Advertising spend in US)          2008         2011


Internet                           $ 26,0 mln   $123,3 mln


Television                         $ 0,0 mln    $ 69,3 mln


Print, Radio & Outdoor             $ 4,0 mln    $ 20,7 mln




     Source: Wall Street Journal
Google Chrome TV commercial
72
Burberry (155 years old) direction
73


        In 4 years time from 2% to 40% of the whole
         marketing budget was spent in digital and
         social

        First luxury brand with more than 3 mln
         fans on facebook

        Over 9 mln page views in nine months after
         launching artofthetrench.com
74
75
What to do ?
76



     1.   Giving up control and orchestration

     2.   Create a vision and content strategy

     3.   Focus on customers not campaigns

     4.   Create corporate guidelines

     5.   Focus on reacting instead of preventing

     6.   Invest in your social capital outside

     7.   Invest in monitor and interaction capacity
A lot of work behind the scenes
77
78
Contact
79
79

     Hans Molenaar (hmolenaar@beeckestijn.org / 06-51030367)
     #hansmolenaar


     Beeckestijn Business School
     Postbus 333
     3830 AJ Leusden
     T +31 (0)88-472 22 30
     F +31 (0)84-220 79 87
     E info@beeckestijn.org
     W www.beeckestijn.org

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Managing brands in digital and social channels

  • 1. Beeckestijn Business School Managing Brands in Digital and Social Channels 1
  • 2. Hans Molenaar 2 2 Marketing Science Award
  • 4. Agenda 4  Observations  Channels  Cases  Models  Conclusions
  • 5. 5 Hijacking for Beginners…
  • 6. 6
  • 7. 7
  • 8. 8
  • 9. The „shift‟ 9 9 •Assembly •Realtime Products •Push Social •Wisdom of crowds •Mass production •Web 3.0 •PMC‟s •Alliances Markets Networks •Segmentation •Integrations •Branding •Dialogue •Mass media •Web 2.0 •CRM •Servicing Customers Interaction •EDM •Database mkg •1:1 •Push communication •WEB 1.0
  • 10. Media don‟t disappear, but… 10 Personal communication Mobile Internet Email PC web Low reach High reach Print Digital TV Analogue TV Radio Cinema Mass communication
  • 11. 11
  • 12. 12 BRANDS TRIGGERS DIALOGUE
  • 14. WHY HAVE SOCIAL MEDIA AND WORTH OF MOUTH SUCH AN IMPACT ?
  • 16. 16
  • 17. 17
  • 19. From mass media to digital & social media 19
  • 20. 20 20
  • 21. Dutch Telco provider 21 = traffic share Commercial traffic target 18.000 = Cost per Order CHANNEL 40% 2% 12% 8% 31% 11% Direct Affiliate Email Display Search Social CPO CPO CPO CPO CPO CPO 7,- 19,- 6,- 25,- 21,- 9,- Traffic 76.000 48.000 16.000 10.000 44.000 5.000 40% CONVERSION 2% 12% 8% 31% 11%
  • 22. WHAT ARE RIKS OF NOT BEING SOCIAL ?
  • 23. 23
  • 24. 24
  • 25. 25
  • 26. 26
  • 27. What Kryptonite should have done: 27  Use influential opinion leaders (celebrities, subculture leaders, etc)  Responded to the blogs immediately  Use social and digital media to interact  Have a community and fanbase
  • 28. 28
  • 29. THAT IS NOT POSSIBLE IN B2B !
  • 30. 30
  • 32. 32
  • 35. 35
  • 36. 36
  • 37. 37
  • 38. 38
  • 40. 40
  • 41. 41
  • 42. 42 "They reached out to bloggers; they blogged; they found ways to listen to and follow the advice of their customers. They joined the conversation. That‟s all we asked.“ Jeff Jarvis
  • 43. IT IS HAPPENING EVERY DAY
  • 45. NOT ONLY TO AVOID CRISES
  • 46. 46
  • 47. 47 47
  • 48. 48 John Deere and the Chip Foose custom 4020 tractor contest
  • 49. 49
  • 50. Why ? 50 50 Service = ???
  • 51. BUT WE SELL BORING STUFF !
  • 52. 52
  • 53. 53
  • 54. IT ALL STARTS WITH A VISION
  • 55. 55 55
  • 56. BUT THAT DOESN‟T WORK IN B2B !
  • 57. 57 57
  • 58. “Selling the sizzle not the digger” 58 58
  • 59. SO WHAT THEORY OR CONCEPTS CAN HELP US ?
  • 60. 60
  • 61. The Economics of Collaboration 61 Mass Self- Organization Collaboration Value Business Creation Webs Extended Enterprise Traditional Industrial Age Hierarchy Corporation Physical Knowledge Critical Resources Financial
  • 62. Two key succesfactors 62 1. Being Open 2. Interacting and Sharing
  • 63. 63
  • 65. 65
  • 67. 67
  • 68. Netpromotor scores by Industry 68 68 Financials Consumer electronics Telco Churn 10% Churn 25% Churn10% NPS -47% NPS -35% NPS -29% Source: TOTE-M Consumer Research on Loyalty, (Potential) Churn and Testimonials
  • 69. The Impact on customer value 69 69 Buyer Economics Referral Economics $ 5000 $ 5000 Promoter $ 4000 $ 4000 $ 3000 Promoter $ 3000 Average Total Customer Worth Total Customer Worth $ 2000 $ 2000 Average Detractor Detractor $ 1000 $ 1000 $0 $0 $ -1000 $ -1000 $ -2000 $ -2000 B2C:High Tech: Computer Hardware Apple Computers Source: Satmetrix. Exploring the relationship between Net Promoter and Word-of-Mouth in the computer hardware industry.
  • 71. The Google (14 years old) direction 71 (Advertising spend in US) 2008 2011 Internet $ 26,0 mln $123,3 mln Television $ 0,0 mln $ 69,3 mln Print, Radio & Outdoor $ 4,0 mln $ 20,7 mln Source: Wall Street Journal
  • 72. Google Chrome TV commercial 72
  • 73. Burberry (155 years old) direction 73  In 4 years time from 2% to 40% of the whole marketing budget was spent in digital and social  First luxury brand with more than 3 mln fans on facebook  Over 9 mln page views in nine months after launching artofthetrench.com
  • 74. 74
  • 75. 75
  • 76. What to do ? 76 1. Giving up control and orchestration 2. Create a vision and content strategy 3. Focus on customers not campaigns 4. Create corporate guidelines 5. Focus on reacting instead of preventing 6. Invest in your social capital outside 7. Invest in monitor and interaction capacity
  • 77. A lot of work behind the scenes 77
  • 78. 78
  • 79. Contact 79 79 Hans Molenaar (hmolenaar@beeckestijn.org / 06-51030367) #hansmolenaar Beeckestijn Business School Postbus 333 3830 AJ Leusden T +31 (0)88-472 22 30 F +31 (0)84-220 79 87 E info@beeckestijn.org W www.beeckestijn.org

Editor's Notes

  1. Business case is based on weekly data