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Retail: Restrospective 2007 |

Marketing Insights:
January 2008

onsumer Engagement Marketing


ril 2010
p rac ti ce s for
Best r s i nv ol v ed
ttin g c o n s u me
ge
o u r ca m p ai gn
in y
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PARTY WITHOUT BATES141’S EXPRESSED WRITTEN AUTHORIZATION.
Introduction
What Marketing Insights: Consumer Engagement Marketing
When 31 March 2010
Where Asian Civilisations Museum, Singapore
Who Julianatasha Salleh, Regional Account Coordinator,
Bates141, Singapore

I attended the morning event with an eye to understanding the changing


dynamics of engagement marketing – which has made the pivotal shift
from mass media to social media. With the mind of a Web 2.0 consumer,
the presentation I have put together captures the key ChangePoints I took
away at the conference.

If you have any questions, you can contact me at


julianatasha.salleh@bates141.com

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Event Agenda
Evolution of consumer behaviour to engage today's consumers
Sam Gomez, managing director, Flamingo Asia Pacific

How New Media can drive customer engagement opportunities


Aman Narain, global head of remote banking (online & mobile), Standard Chartered’s Consumer Bank

What They Didn’t Teach You In School about Social Media


Agnes Tan, regional eBusiness & CRM manager, ClubMed

I Never Listen To My Mum, Why Shall I Listen To My Consumers?


Alexandre Olmedo, chief executive officer & co-founder, Eyeka

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What’s in this Report?
• Asia Going Online By The Millions
- Youth Leading The Way
- Asian Online Communities, Word of Mouth & What That Means for Brands
• 6 ChangePoint Opportunities
– From Mass Media To Social Media
– From Building Communities To Joining Existing Communities
– From Assuming To Listening
– From Censorship To Engaging & Responding Appropriately
– From Campaign To Ongoing Activity
– From Powerful Influencers To Brand Advocates

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Asia Going Online By the Millions

The majority of the world’s internet users live in Asia,


which is now home to 41% of the world’s online
population, as at the beginning of 2009.
(Source: Comscore 2009)

650, 361, 843 internet users in Asia, of which over 298


million are in China
(Source: ADMA, 2009)

Singapore: one of the highest internet usage rates in the


region with 84.1% population connected
(Source: ADMA, 2009)

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Youth Leading the Way
Internet penetration is growing in Asia
with youth in emerging markets
leading the way.

64% of Chinese youth aged 15 to 24


indicate that they cannot live without
the Internet.
(Source: Synovate 2010)

Young Singaporeans spend 12.6 hours


a day on average using a wide variety
of media (web surfing, video gaming,
texting, etc.).
(Source: Synovate 2009)

Social networking is big in Asia. More


than 450 million consumers across the
region participate in social media.
(Source: OgilvyOne 2009)

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Asian Online Communities,
Word of Mouth & What That Means
For Brands
Xiaxue is one of Singapore’s popular bloggers
Such is the pull of social media in Asia that 7 out
of the world’s 10 top markets that “rely most on
recommendations from consumers” are in this
region.
(Source: OgilvyOne 2009)

According to one survey, 51% of Singaporeans


trust a blog as much as they do traditional
media. Google’s Blogger platform now ranks 5th
in the top 100 most visited sites for Singapore.
(Source: OgilvyOne 2009)

More Chinese actually have become bonafide


bloggers themselves however – as much as 162
million now consider themselves bloggers.
(Source: ChinaInternetWatch.com/CNNIC 2009)

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From Mass Media
To Social Media
“Engagement Marketing is
premised upon transparency,
interactivity, immediacy,
facilitation, engagement, co-
creation, collaboration,
experience and trust – these
words define the migration from
mass media to social media”

-Alan Moore, founder,


Engagement Communication
Consultancy, SMLXL
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Pepsi Drops Superbowl To
Focus on Facebook

The beverage
behemoth decided to
forgo advertising,
during the Super Bowl
(a first since 23 years)
to focus its energy and
money on new media
instead.

The Pepsi Refresh


Project will feature
social-networking
campaigns that
leverage the
participate/contribute-
and-vote-online model.
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From Building Communities
To Joining Existing Communities

“Communities already exist.


Instead, think about how you can
help that community do what it
wants to do”.

- Mark Zuckerberg, founder,


Facebook

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Standard Chartered Uses Facebook

to engage community in online


activities

Facebook
page
facilitates
competitio
n

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Standard Chartered Uses Twitter
to participate in community’s
conversations

Standard Chartered uses Twitter to make conferences more engaging.


With over 200 participants, 789 tweets were generated. The banking
community was able to participate actively with questions through
voting and supporting their peers’ opinions.

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Coca-Cola & Eyeka encourages
user-generated content for TV ad

“[User]-generated media… are


siphoning attention from
traditional media and creating
networks of influence among
consumers”.

- Brian Haven, former senior


analyst, Forrester

Winning TVC
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From Assuming
To Listening

Brands must listen to get


deep insights of their
wants, unmet needs and
challenges.

Listening can help brands


to redefine their
relationships with the
consumer and bring the
latter’s voice into the
brand.

Paying attention to what


they want can help you
understand shifts in
consumers’ lifestyle and
perspective.

After all, every good


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conversation starts with
good listening.
Club Med is Listening

Club Med’s primary


focus is to create
the perfect
ambience for
couples whereas
their customers
choose Club Med
because of the wide
range of activities
that are made
available at their
resorts.

Had Club Med


assumed what their
consumers want,
their brand would
16 not be aligned to
their consumers’
From Censorship
To Engaging Appropriately &
Effectively
Brands are keen to leverage on social
media but at the same time, it can be a
negating influence that is very powerful: it
can alter the course of mega corporations
in a matter of days.

And censorship in the age of information is


a big no-no for vocal netizens.

So how should brands react in the face of


harsh criticism online? Censor? Ignore?
Respond?

As for Nestlé, it remains to be seen how


quickly it can recover its Facebook profile.
Although it’s worth pointing out that, quite
aptly, it changed the corporate statement
on its page to read: ‘Social media: as you
17can see we’re learning as we go.’
Nestle’s Censorship Gone Wrong
Some Facebook users replaced their
profile pictures with the "Killer" logo
and posted negative comments
about Nestlé on its Facebook fan
page.

The postings continue, with many of


them encouraging a boycott of
Nestlé products. Nestlé told
Facebook users it would delete their
comments from its Facebook page if
they included the altered logo.

Social-media experts say that only


incited the protesters. Nestlé's fan
base on Facebook, now mostly
protesters, swelled to more than
95,000.
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Guardian’s Censorship To Rectify
Guardian published Max Gogarty’s blog, a 19 year old gap year
student who went backpacking to India, who incidentally was
the son of Paul Gogarty, a travel editor.

Over 94,000 comments were screaming nepotism & lack of


talent that appeared not only on his blog, but on scores of
message boards and social networking forums like Facebook:

saxonwhittle said:
“Oh God, please spare us from poor little middle-
class children trying to tout themselves on
Daddy’s/Mummy’s newspaper, so they can follow in
their parent’s footsteps.”

Guardian took the decision to close the comments, citing:


“As we are increasingly having to take down vicious
personal abuse directed against the writer, in open
contravention of the community standards, this
discussion will shortly close. But thanks for the
suggestions that we did receive, and for your criticisms,
which have been noted.”

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Club Med’s Observation Approach

TripAdvisor is a travel guide that


allows consumers to get real
information, advice and opinions
from millions of travellers to plan
their own trips. This online
community is rich with honest and
unscripted insights and experiences.

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Club Med’s Observation Approach

Even though
there were
negative reviews
on
TripAdvisor.com,
Club Med chose
the observation
approach
because they
have happy
customers to
speak up for
them in the
21 online forum.
Toyota’s Engage & Respond
Approach

An e-mail from Digg.com displayed a


very public, transparent approach by
Toyota to address consumer concern
over the Toyota recall. Digg even hosted
a live video interview with Jim Lentz,
CEO of Toyota on a feature called Digg
Dialogg. Users can submit questions for
Jim Lentz and the most popular, or Dugg,
will be used.

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How To Engage & Respond Decide
whether to
suspend

Appropriately Social
media
based on
circumstanc
e
posting
identified no
ye
n s
o Is it Justifiabl
positive? y
Do you unhappy
want to custome
No respond?
response. no r?
no
Monitor site
ye Factuall
for further Bashing yes
s y
comment. & Flaw, wrong?
degradin no rage, no
g joke?
Respond yes Rectify the
others?
with further situation,
useful yes respond &
information act with
Respond
with factual responsible
No solution
response. information
Monitor site
for further
comment.

Conversation response guidelines: Transparent Timely and well-crafted Friendly & respectful
tone Have a point
of view
23 Source: Upstream
Asia
From Campaign
To Ongoing Activity

“The reason social media is so


difficult for most organisation is
it’s a process, not an event”

- Seth Godin, author &


influential blogger

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Toyota Uses Twitter as a platform
for
ongoing conversation with their
consumers

Toyota is also making great use of Twitter


by updating actively on its progress.

It’s apparent from the account itself that


Toyota already had a social media
presence and strategy in place (looks like
a whole dedicated team, in fact), so when
crisis hit, they didn’t have to scramble to
create a social media presence to
respond.

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From Powerful Influencers
To Brand Advocates

Powerful influencers coupled


with social media can become
strong brand advocates.

These special group of


consumers are not only
passionate about the brand, but
they are also the most loyal
customers as well. With their
large circles of influence, they
persuade other “onlookers” by
creating awareness and buzz.

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ClubMed has Jaymee Ong as
powerful brand advocate

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ClubMed has Melody Chen as
powerful brand advocate

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In summary,
Social media engagement has to
be part of the overall
communication strategy, because
consumers have access to
multiple channels with multiple
needs at different stages of their
lives.

Brands must also join existing


communities, engage and respond
appropriately, use social media as
an ongoing activity, listen to what
consumers want and leverage on
powerful
29 brand advocates.
Eager to continue the conversation?
Contact Julianatasha Salleh
Regional Account Coordinator
Thank You! Bates141 Singapore
E-mail: julianatasha.salleh@bates141.com
Telephone: +65-6393 5112
Mobile: +65-8222 4574

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