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uk/digitaltransformation
Engage customers
through social media
Digital transformation
Digital Transformation 1
500,000,000
The number of global users Facebook
reports they have registered.
2 Digital Transformation
Table of contents
Contact us 18
Digital Transformation 3
Questions to consider as you read this document
How will you create content that people will find valuable
5 and engaging?
4 Digital Transformation
What’s going on?
As you might expect, the picture social
brand indexing paints is one of rapid,
dynamic change. Top brands swap
places, often many times a day. What
is also interesting to see is the gap
between the leading global brands that
have developed a strategy and those
that remain uncertain about what the
social media phenomenon means for
them.
Digital Transformation 5
How big is social media?
500,000,000
The number of global users Facebook
reports they have registered.
It’s bigger than
you think.
The speed, breadth, depth
Social media
and scope of social media
advertising
penetration is astonishing. It
The average UK
took 13 years for television
spend will
to reach a worldwide
user spent nearly
audience of 50 million. It
took Facebook three years; increase 400%
and just another four years an entire 24 hour
to reach over half a billion by the year 2014.
users worldwide. day on the internet
– Forrester
in April 2010.
– ‘The Connected
One out of every five Kingdom’
minutes online is spent on Google UK, BCG
social media related sites.
– Nielsen
To understand the social media
movement it’s necessary to understand
the most popular platforms for user
engagement and how they differ.
Popular platforms
Digital Transformation 7
What are the
leaders doing?
8 Digital Transformation
Anthony van der Hoek, Director of Strategy and Business Solutions at a Coca-Cola
Company global team, puts it this way:
Starbucks USAA
Starbucks are actively engaging in One of the pioneers of direct
social media and are talking with marketing, United Services Automobile
their customers through a number of Association (USAA), conducts most
different channels. With their 700,000 of its business over the Internet or
followers on Twitter they are answering telephone. It currently maintains a fan
questions, retweeting what people are page on Facebook with over 122,000
saying about the brand and engaging in fans. This page offers USAA products
real conversations. To their 18 million and services, an eligibility application,
Facebook fans they upload content and useful tips. You can also access and
to their fan page but also engage manage a USAA account directly on
with their customers by allowing Facebook through a built-in application
management of the customer’s with enhanced security.
Starbucks card (e.g. checking balance,
reloading) and even allowing users to American Express
upload credit to other customers’ cards. American Express’ OPEN Forum is a site
which gives member small businesses
Coca-Cola the tools to communicate and
As a traditional top 5 brand Coca-Cola collaborate. The Connectodex™ links
would be expected to have a strong member businesses seeking services to
presence in social media, and with those supplying services; filterable by
nearly 20 million fans it is one of the industry, geography and size. The Idea
most popular in the world. The page Hub offers insights and perspectives
was originally created by fans and from small business experts, in an
then adopted by Coca-Cola and used environment that encourages feedback
to create the official site. Although on and interaction, while articles, videos,
first look it seems a normal fan page, discussion boards and event listings
Coca-Cola have engaged customers by highlight case studies and areas of
allowing user generated content on the interest to the member community.
site including photos and posts. Coca-
Cola has also embedded social media ITV Live
We believe that financial services within the organisation and last year The new interactive ITV portal
firms can create fervent customers launched their social media strategy. combines the strengths of online TV
by using social media to have This includes ensuring that ‘Certified streaming with the popularity of social
meaningful conversations with Online Spokespeople’ complete a networks. Users can engage in live
their clientele. They can then use certification programme prior to chat and discuss their favourite shows
that dialogue to inform and drive representing the company online and in real time, using their Facebook
their offerings and propositions. encourages every employee to engage credentials. According to ITV, the
in social media and report both positive application is the perfect dual-screen
and negative comments. companion to ITV Shows. Launched
That said, any such
during the 2010 FIFA World Cup, ITV
strategy will require Live achieved two million users within
careful planning, as four weeks by providing additional
well as knowledgeable incentives such as direct chat with
celebrities, factoids, etc.
guidance from regulators
and compliance officers.
1
”PwC” refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United
Kingdom), which is a member firm of PricewaterhouseCoopers International Limited, each
member firm of which is a separate legal entity
Digital Transformation 9
What makes social media
different from other ways of
engaging with customers?
10 Digital Transformation
How a major airline is using social media to
offset rising fuel prices and operational costs
Faced with rising fuel prices, one of the This social solution includes not only As of January, the airline reported three
world’s largest airlines sought to identify elements of the company’s website, but million visitors to its online blog, about
online opportunities to increase revenues also partner sites (for cross-sell) and, of a million Twitter followers, and another
and help counter higher operational course, social media mainstays such as million Facebook fans. Furthermore,
costs. They were also interested in Twitter, Facebook and YouTube. Nielsen/Netratings rated it as the largest
setting up a consolidated vision for their airline site in terms of unique visitors.
marketing initiatives, which had been Further, the airline has used this
languishing in harsh economic times. opportunity to increase collaboration These social media assets will continue to
internally as well, and makes sure it’s pay long-term economic dividends to the
Working with us to establish an media team employees are well prepared company.
appropriate social media strategy and to address questions and issues through
vision, the airline set up meaningful ways these channels.
for customers to connect and contribute
content around the brand. The airline is now able to directly connect
all of its customers to its employees
messages and also the thoughts of
influencers such as avid travel bloggers
and fans of the brand.
Digital Transformation 11
Why should you care?
(Here are five good reasons.)
1
It’s where your
2
Conversations about your
customers are business are happening –
gathering with or without you
If you knew that members of your It’s not a question of whether they’re
target customer segments spent time talking about you, it’s a question of
in a particular place, wouldn’t it make whether you’re paying attention and
sense to set up a store front there - or participating. What you might think
at least post an advert there? Half of of as a potential threat to your brand,
the 29 million Facebook subscribers in may actually be an opportunity to
the UK check their page at least once a build loyalty and advocacy among your
day. Are you there? If you aren’t, do you customers and employees.
have a good reason not to be?
US online shoes and clothing retailer
Zappos’ CEO Tony Hsieh believes that
these new channels give everyone a
voice and what they say can reach
millions. Zappos’ staff are encouraged
to use Twitter to engage with customers
and to treat every customer interaction
as an opportunity to create loyalty – not
necessarily to make a sale. The value of
this ‘earned’ PR is difficult to estimate,
but Zappos’ success is not; sales have
grown from $1.6 million in 2000 to $1
billion in 2008.
12 Digital Transformation
3
Your brand
4
It’s the world’s
5
It can be the most
is being largest focus effective way to reach
circumvented group your customers
According to Forrester, more than 33% Social media offers the potential For a surprising breadth of demographic
of European online consumers evaluate of highly personalised, one-to-one segments, engagement via social
and compare the things they want interactions with your customers, and media can be the most effective way of
to buy based on what their peers are leads to much better interaction rates moving customers up the value chain
saying on social platforms – not based than traditional marketing efforts from initial awareness to passionate
on the messages they receive from deliver. evangelism. According to a report by
your business. Offering mechanisms Chadwick, Martin & Bailey, 67% of
If what you’re selling is not meeting
for your customers to connect with social media users are more likely to buy
customer needs or expectations, there
each other to facilitate evaluation, and a brand they follow on Twitter, while
is no better way to become immediately
then participating actively in those 79% are more likely to recommend a
aware of the shortcomings. It also
conversations, can put you back in the brand they follow on Twitter.
expedites customer input into the
loop. This will give you some influence
product development cycle. Build the Techlightenment reports that, compared
on purchasing decisions and create
platform, give your customers a reason to a generic display ad, a micro-targeted
customer loyalty.
to participate, and then listen to what social media message (to a more
they say. This sounds easier than it is, specifically chosen audience) will attract
because social media is very different to 2-4 times the responses. The idea is to
other engagement channels. create many smaller placements and
have each visible only to the people most
likely to interact with it.
Digital Transformation 13
US bank Citi is looking The people in charge of talking are in the marketing
to hire an attorney to department. The people in charge of listening are
provide legal oversight in the research or service or sales department. They
for its social media hardly ever talk to each other, let alone have full-
activities. duplex conversations with customers.
– finextra – Josh Bernoff, ‘Why Marketers Have Trouble With Full-duplex
Social Technology,’ June 30, 2009
The impact of social media You’ll need a deliberate Marketing, sales and
will challenge your brand engagement strategy service will change...
Although social media changes the for the better
and be felt throughout way in which an organisation interacts Marketing, sales and services functions
your organisation. In with customers, the essentials of are most affected by the onset of social
business are still true: create a product
order to respond and or service, make people aware of it,
media and also have the most to gain. In
an era when more and more customers
adapt, changes will need encourage them to buy it, maintain are basing their purchasing decisions on
to take place, from process ainclined
good relationship so that they are
to recommend you and buy
peer interaction, the role of advertising,
branding, marketing, PR and other
and policy, to broad more from you. In doing this, you traditional means of communications
organisational change. remain efficient and cost effective need to be re-evaluated.
throughout to maximise profit.
Spend on marketing online in the UK
You must assess the impact and now exceeds that of TV and although
opportunity presented by social media to date the majority of that spend is on
on your business model, understand search engine optimisation (e.g. Google
how your customers and potential advertising) and banner advertising,
customers are using this medium and companies are turning to social media
visualise how you could use social sites such as Facebook because of the
media to build relationships. level of ‘micro targeting’ that is possible.
Many people travel in packs and many
If your brand attributes are not
come together for important life events.
understood well enough to allow
Customers are using social media as a
an authentic conversation with
way of connecting to communities with
your customers and you don’t have
common interests and needs.
something of value to say to them, in all
likelihood you will be ignored. Positioning products and services
to these target communities allows
companies to effectively position key
messages to the right type of customer
at their ‘moment of need’. As the old
saying goes, it’s only junk mail if the
customer doesn’t want it.
14 Digital Transformation
A balanced approach to information security
There is no stopping the two-way What is required is a programme All employees must know that the
flow of information that social media designed to raise security awareness company’s accounts are separate and
enables. We believe that businesses and influence the behaviours of all very different from their personal
should adopt a strategy to safeguard those concerned, and balanced against accounts. The boundaries of proper use
their corporate networks and data continued investment in technology of social media can be ambiguous as
focusing on three aspects: processes, and processes. It is also essential the line blurs between work and private
people and technology. that you classify data so that your life. But your social networking policy
employees understand precisely what must not be.
This remains a complex issue. Technical is, and is not, sensitive information.
defence is vital to protect against Business should also consider security
negligent and malicious acts. However This policy should define who is products or services that actively scan
there is also a human element; authorised to access and share and monitor traffic for malware, data
negligence, ignorance or even curiosity corporate content, and it should lay out leakage and other suspicious activity.
can give rise to incidents. procedures that specify how employees Possible solutions include multi-
may use sensitive data. Policy, too, layered security at the gateway and end
must delineate the types of social points, content classification, content
media accounts that the company filtering and data loss prevention.
sponsors. Identifying the right mix of these tools
can be daunting because of how rapidly
technology is evolving.
You will need to involve However, adopting social networks You will need to organise,
inside the organisation presents great
your people and examine manage and secure new
opportunities for internal knowledge
your culture sharing, productivity growth and sources of content
improvements to team-working and Whether we’re talking about customers,
Given the need to be authentic morale. banks, insurers, credit unions,
and transparent when conducting communities or super users, everyone
conversations via social media, it is The structure of your is creating content now.
important that all messages fit with the
public brand ‘face’ of your business. In organisation will need to Companies are facing the same
fact, your online presence will already evolve to accommodate challenges that entertainment firms
have begun to implicitly define your conversations are grappling with: how to create,
business values to your customers, The question of who owns the customer produce, place and keep the content
social media takes this exposure of is even more relevant with the onset of for easy dispersal and retention. These
corporate culture and brand values to social media. Now added to that is the days you may have branded content
another level of transparency. question of who owns the conversation. anywhere, whether it’s a YouTube video
Social media will create conversations here, a videoblog there or apps all over
One of the biggest challenges of the place. Keeping it safe, secure and
using social media is the level of with customers that cut across product
lines, sales, service and marketing accessible is critical. The strategic use
empowerment it implicitly requires of of video blogs, blogs and communities
your staff. If they are communicating boundaries and therefore organisations
need to look beyond the silo structures. can help companies repeat their key
with your customers directly via messages through multiple channels.
Twitter, a level of trust and confidence A number of organisations are now
looking to recruit heads of social For example, a video on retirement
is required that many organisations planning can be leveraged on a website,
would currently struggle to envisage. media to define strategy, direction and
messaging but this then needs to be a retirement blog and retirement
embedded across the organisation. communities.
Some businesses are simply not ready
to go down the path of a people change In an era of abundant access and scarce
programme that fully embracing social attention, content is (still) king, but
media implies. Others are hindered managing that content has become a
by multiple, potentially conflicting, lot more complicated.
internal cultures that reduce the
effectiveness of using this as a public-
facing medium.
Digital Transformation 15
How can you
get started ...
16 Digital Transformation
These tools can give you an idea of what’s being said
about you out there, and by whom:
RSS Feed aggregators: Tracking and listening sites: Engagement and visualisation:
Google reader SocialMention.com MentionMap
NetNewsWire Tweetgrid.com Tweepskey
FeedDemon WorkStreamer.com Klout
Rockmelt (browser) Peerindex
Digital Transformation 17
Contact us
Matt Hobbs
Partner
+44 (0) 20 7213 1565
matthew.c.hobbs@uk.pwc.com
Sean Mahdi
Director
+44 (0) 20 7213 5564
sean.mahdi@uk.pwc.com
18 Digital Transformation
Acknowledgements
Tony Moreno
Sean Mahdi
Gorham Palmer
Steven Gough
Debbie Dimoff
William Beer
Anh Pham
Peter Molker
Matt Partovi
Digital Transformation 19
This publication has been prepared for general guidance on matters of interest only, and does
not constitute professional advice. You should not act upon the information contained in this publication
without obtaining specific professional advice. No representation or warranty (express or implied) is
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2011 PricewaterhouseCoopers LLP.any liability,
All rights responsibility
reserved.orIn
duty of care
this for any consequences
document, “PwC” refers of you
toor anyone else acting, or
refraining to act, in reliance on the information contained in this publication or for any decision based on it.
PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom), which is a member
firm of PricewaterhouseCoopers International Limited,
© 2011 PricewaterhouseCoopers eachreserved.
LLP. All rights member firm
In this of which
document, is a refers
“PwC” separate legal
to PricewaterhouseCoopers LLP (a
entity. limited liability partnership in the United Kingdom), which is a member firm of PricewaterhouseCoopers International Limited,
each member firm of which is a separate legal entity.
hb 08125
20 Digital Transformation