Post on 13-May-2015
description
Modern Methods of Communicating Directly to Your Customers:
How effective is New Media in terms of recruitment and sales?
Presented by: Paul Mabray, CEO of VinTank
Marc Engel, Partner and Director of Wines Practice, B/R/S Group
Flow
1) Who We Are2) What is ‘New Media’?3) What Does It Mean for Wine?4) Is New Media Effective for Recruitment and
Sales?5) Lessons6) Workshop It
WHO WE ARE
Two guys. Two Opinions.
• 17 year online wine veteran.• Work for the only digital think tank in the
wine industry.• Wrote a tiny little report about wine and
social media called “We are here” and then gave it away for FREE.
Marc EngelPaul Mabray
Two guys. Two Opinions.
• No, I don’t work for Paul• Marketing researcher• Listen to the voice of the consumer (and trade)• Presented “Engaging the U.S. Wine Consumer: A
New Paradigm” at Wine Evolution, January 2007
Paul Mabray Marc Engel
WHAT IS NEW MEDIA?
So what is new media?
WIKIPEDIA DEFINES - New media is a term meant to encompass the emergence of digital, computerized, or networked information and communication technologies in the later part of the 20th century. Most technologies described as "new media" are digital, often having characteristics of being manipulatable, networkable, dense, compressible, interactive and impartial.
So what is new media?
New media is a term meant to encompass the emergence of digital, computerized, or networked information and communication technologies in the later part of the 20th century. Most technologies described as "new media" are digital, often having characteristics of being manipulatable, networkable, dense, compressible, interactive and impartial.
Really?
Old vs New
This…
This…
This…
This…
This… Is new media.
No really
We are witnessing a fundamental shift in communication.
But don’t take our word for it…
If Facebook were a country, it would be the 4th largest country in the world.
Source: TechCrunch 2009 http://www.techcrunch.com/2009/07/15/facebooks-offical-user-count-now-250-million/
Did we say fundamental?
Never in history has humanity been as interconnected as they are today.
Welcome to the Revolution
Source: http://www.flickr.com/photos/mlemos/3522358252/sizes/o/in/set-72157617990467890/
Translation
This ain’t your mamma’s internet.
Evolution
Evolution
Today
66% of Global Internet Population Visit Social Networks. Nielsen
Today
66% of Global Internet Population Visit Social Networks. Nielsen
Social networks are the 4th most popular online activity – ahead of personal email and PORN. Nielsen
Today
66% of Global Internet Population Visit Social Networks. Nielsen
Social networks are the 4th most popular online activity – ahead of personal email. Nielsen
75% of consumers rate Word of Mouth as the #1 influencer of purchase intent. Nielsen
66% of Global Internet Population Visit Social Networks. Nielsen
Social networks are the 4th most popular online activity – ahead of personal email. Nielsen
75% of consumers rate Word of Mouth as the #1 influencer of purchase intent. Nielsen
71% say they share a recommendation (product, service, restaurant) online with others at least every few months. Razorfish 2009
Today
66% of Global Internet Population Visit Social Networks.*
Social networks are the 4th most popular online activity – ahead of personal email.*
75% of consumers rate Word of Mouth as the #1 influencer of purchase intent. Nielsen
71% say they share a recommendation (product, service, restaurant) online with others at least every few months. Razorfish 2009
75,000 new blogs created every day, updated to the tune of over 1.2 million posts per day, or over 18 updates a second. Technorati
Today
66% of Global Internet Population Visit Social Networks.*
Social networks are the 4th most popular online activity – ahead of personal email. Nielsen
75% of consumers rate Word of Mouth as the #1 influencer of purchase intent. Nielsen
71% say they share a recommendation (product, service, restaurant) online with others at least every few months. Razorfish 2009
75,000 new blogs created every day, updated to the tune of over 1.2 million posts per day, or over 18 updates a second. Technorati
25% of top search engine results for world’s 20 largest brands are Consumer Generated Media (‘advertising’ consumers trust). Qualman
Today
66% of Global Internet Population Visit Social Networks.*
Social networks are the 4th most popular online activity – ahead of personal email. Nielsen
75% of consumers rate Word of Mouth as the #1 influencer of purchase intent. Nielsen
71% say they share a recommendation (product, service, restaurant) online with others at least every few months. Razorfish 2009
75,000 new blogs created every day, updated to the tune of over 1.2 million posts per day, or over 18 updates a second. Technorati
25% of top search engine results for world’s 20 largest brands are Consumer Generated Media (‘advertising’ consumers trust). Qualman
Today
Don’t make us estimate
tomorrow.
New media is like the swine flu.
… but why?
Interactive ConnectedFreeFastMeasurable
Because new media is
… but why?
Interactive ConnectedFreeFastMeasurable
Because new media is
… but why?
Interactive ConnectedFreeFastMeasurable
Because new media is
… but why?
Interactive ConnectedFreeFastMeasurable
Because new media is
… but why?
Interactive ConnectedFreeFastMeasurable
Because new media is
And it’s not contained
It has jumped out of computers and into our pockets.
People can connect, update, complain or praise – anytime,
anywhere.
Just wait till tomorrow
Just wait till tomorrowTomorrowisTODAY
Sounds scary
“Technology is shifting the power away from the editors, the publishers, the establishment, the media elite. Now it’s people who are in control.”
Rupert Murdoch, Global Media Entrepreneur
We understand.
Most Business People
Your Competition.
Most Business People
76%havenotfoundsocial
networkingsitessuchasFacebook,Twi@erandLinkedIntobehelpfulin
generaDngbusinessleadsorforexpandingtheirbusinessduringthe
lastyear.
86%saytheyhavenotusedsocial
networkingsitestogetbusinessadviceor
informaDon.
61%saytheyusegeneral
searchengineslikeGoogle.
Source: Citibank/GfK Roper survey of 500 small business executives across the U.S., as cited in Research Brief from the Center for New Media Research, 2 Nov. 2009
Imagine
The advantage you could have with yourhead out of the sand.
WHAT DOES NEW MEDIA MEAN FOR WINE?
So what’s in this for wine
Wine & New Media: A Perfect Pair
I’malongtailproduct.
WineNewMedia
Wine & New Media: A Perfect Pair
I’malongtailproduct.
Ilovelongtails!
WineNewMedia
Wine & New Media: A Perfect Pair
WordofMouthisthebiggestreasonwhy
peoplebuyme.
WineNewMedia
Wine & New Media: A Perfect Pair
WordofMouthisthebiggestreasonwhy
peoplebuyme.
OMG!PeopletalkaboutwhattheylikealltheDmeonme.Wine
NewMedia
Wine & New Media: A Perfect Pair
IconfuseandinDmidate
mostpeople.Wine
NewMedia
Wine & New Media: A Perfect Pair
I’mnotscared.Peopletrustme.Evenyourmomwilltrust
me.
IconfuseandinDmidate
mostpeople.Wine
NewMedia
Wine & New Media: A Perfect Pair
I’mquitetheexperience.
WineNewMedia
Wine & New Media: A Perfect Pair
…andIseekmasteryandcontrol.
I’mquitetheexperience.
WineNewMedia
Wine & New Media: A Perfect Pair
…!!!
…andIseekmasteryandcontrol.
NewMedia
I’mquitetheexperience.
Wine
The Dominance of Twitter
Where they’re talking…
OnBlogsOnForumsOnMicroblogs
Source: www.cruvee.com
Wine Blogs
• 250,000 products produced annually
• About 30,000 reviewed by ‘professional’ reviewers
• There are over 1000 dedicated wine blogs
Wine Blogs
Collectively wine bloggers represent an audience much larger than the winespectator.com.
Wine Industry Noise
40+50+200+
Wine Industry Noise
40+ – Wine Social Networks
50+ – Wine iPhone Apps
200+ – Wine Portals
Wine, where should you play?
Wine, where should you play?
Wine, where should you play?
Wine, where should you play?
Wine, where should you play?
Wine, where should you play?
Wine Social Networks
Fishing where the fish are.
Wine Social Networks
Fishing where the fish are.
86,000+ Users
1,000,000 Tasting Notes
50,000+ Users
32,000+ Tasting Notes
Customers Recommend Brands
Change
“No longer is it enough to make and sell wine and then expect the world to beat a path to your door. (Well, unless you’re Lafite in China, that is.) Today, sellers have to reach out to their customers, and they have to do so in ways that may be unfamiliar and even uncomfortable for them.”
–Steve Heimoff, blogger and writer, Wine Enthusiast
It’s a crazy Wine World
It’s a crazy Wine World
Insane Regulations
It’s a crazy Wine World
Insane Regulations
An incredibly complex product
It’s a crazy Wine World
Insane Regulations
An incredibly complex product
Distribution has all but ended as a viable sales
channel for small wineries.Rob McMillan
IS NEW MEDIA EFFECTIVE?
Is new media effective?
3,279,102 friends 620,359 friends
1,043,850 friends 218,172 friends
1,824 videos uploaded
Channel Views: 20,024,491
330 videos uploaded
Channel Views: 2,221,268
151,206 followers 4, 848 Followers
Is new media effective?
$360 million
$639 million
Why yes, it is.
$360 million
$639 million
Overall funds raised during the 2008 campaign.
Obama’s Online Fundraising
• $150million(sha@eredpreviousrecordof$65m)
• 632,000donors(totalwas3.1million)
• AveragedonaDon<$100(Plouffe)
Hyper Speed
After Palin disparaged Obama’s past work as a community organizer, he raised $10M within 24 hours, most of it online.
The Obama Network
MyBO.comfacebook
Social networks
Widgets
Barack TV
Outreach
Mobile
MyBO.com
• 2 million profiles created• 35,000 volunteer
groups• 400,000 blog posts• 200,000 offline events
Mobile Obama
New Media is extremely effective for branding, marketing and public relations…
Why?
1) Informative2) Inclusive3) Entertaining4) Engaging5) Democratizing
Hulu
“Consumer behavior is one of the hardest things to change. The gap between the existing and the new has to be so materially better that it shocks you into behavior change.”--Jason Killer, CEO of Hulu
Hulu
• 380MM videos (up 150% in 6 months).
• 2.6% market share of all video.
• Resurrecting old media properties, bring to whole new generation.
It’s powerful, ask Domino’s
Listening - Customer Service
Chris Brogan – President of New Marketing Labs
Listening - Customer Service
Chris Brogan – President of New Marketing Labs
October,2009…Mywebsitewentdown.ThemomentInoDcedit,ItweetedtoRackspace,myhost.(Yes,IpingedTwi@erbeforelookinganywhereelse).Isaid,“Dear@rackspace–mysiteis
down.Pleasehelp.”
Listening - Customer Service
Chris Brogan – President of New Marketing Labs
Guesshowlongittookforthemtorespond.
Listening - Customer Service
Chris Brogan – President of New Marketing Labs
FourMinutes.
Listening - Customer Service
Chris Brogan – President of New Marketing Labs
I’mfullysoldonwhoI’dchooseifIneeded
mission‐cri5calsupportforaheavytrafficsite.I’duse
Rackspacecloud.
Zappos
Will it Blend?
• A small company, no marketing budget - CEO Tom Dickson blends objects in their blender and video tapes it.
• Marbles, golf balls, hockey pucks
• 3.8 million views
• 5x increase in sales (home and commercial)
#flymeto
• Give away iPhones, flights for tweeting their company’s name
• 90x increase in Twitter followers in one week
• Web traffic up 600%
• 100% increase in signups, still sustaining growth
• Bolstered by coverage in the media (BBC, about.com, Mashable)
Cost: $13,500
IS NEW MEDIA EFFECTIVE IN THE WINE INDUSTRY?
Gary Vay-ner-chuck
• 850,000 followers on Twitter
• Nearly 90,000 viewers per day of his vlog, Wine Library TV
• Million dollar book deal• NYTimes, Amazon.com bestseller
• $80 million retail, half on Internet
Murphy-Goode
Pinotblogger
Josh Hermsmeyer wanted to start a winery.
Participated in online forums, including eRobertParker• But found them
hierarchical
Now, nearly 5,000 Twitter followers• Up 3x since May
Over 1200 mailing list names
New Media to Drive Offline Sales
Free membership in a lower-tier ‘club’No purchase commitmentsExclusive content online• Recipes• Pairing tools• Special e-commerce offers
Purchase offline‘Proven’ by surveys with these ‘club’ members
Marketing is not the same…
It’s about building brand awareness and connection, which should allow for the opportunity for sales.
As sales.
Facebook for personal connections
Fans on FB come to the winery to buy wine
Already have a direct relationship with people at the winery who blog
and are on FB
Facebook for personal connections
Fans on FB come to the winery to buy wine
Already have a direct relationship with people at the winery who blog
and are on FB
Josh & Ryan, pourers in the tasting room
Tony the winemaker
Kent, the chef
Old new media, more effective
Ad on FB offering 10% discount• Nearly 300,000 impressions (times displayed)• 90 clicks to the website
• 0 sales
• Targeted email more effective• FB-only 25% off promotion in honor of the winemaker and
her husband’s 25th anniversary
• 0 sales• Then emailed to mailing list…nearly $15,000 in sales
than new new media.
Old new media, more effective
Ad on FB offering 10% discount• Nearly 300,000 impressions (times displayed)• 90 clicks to the website
• 0 sales
Targeted email more effective• FB-only 25% off promotion in honor of the winemaker and
her husband’s 25th anniversary
• 0 sales• Then emailed to mailing list…nearly $15,000 in sales
than new new media.
Uncertainty about Facebook
• “But I don’t think it affects the bottom line”• “Not the driving force behind sales, but a great
information tool”• “Still trying to figure out how to measure its
impact”
Uncertainty About Twitter
• “Hard to track and measure”• “Not sure what to make of it yet. Is it a fad or is it
a useful tool?”• “Losing its edge”
LESSONS
New Media is NOT a silver bullet
“YOU NEED TO BE ON FB, MS, Twitter, FF, etc, etc, etc.”
New Media is NOT a silver bullet
“YOU NEED TO BE ON FB, MS, Twitter, FF, etc, etc, etc.”
“YOU NEED TO HAVE YOUR WINES RATED
BY WINE BLOGGERS.”
New Media is NOT a silver bullet
“YOU NEED TO BE ON FB, MS, Twitter, FF, etc, etc, etc.”
“YOU NEED to
BLOG.”“YOU NEED TO HAVE YOUR WINES RATED
BY WINE BLOGGERS.”
New Media is NOT a silver bullet
“YOU NEED TO BE ON FB, MS, Twitter, FF, etc, etc, etc.”
“YOU NEED to
BLOG.”“YOU NEED TO HAVE YOUR WINES RATED
BY WINE BLOGGERS.”
WHAT IS THE TRUTH?
Your brand will benefit from a good social media strategy that is PART of your overall digital strategy.
PICK the social network where YOUR type of customers are engaging. Do activities that yield the HIGHEST ROI for your efforts.
What new media will give to you
• Exposure
• Likelihood to be recommended
• Customer acquisition
• Extended customer life time value (LTV)
• Measurement
• Unparalleled access
Content is King
From customer relationship management to customer-managed relationships
MESSAGE MUST BE RELEVANT
Business is Personal
The Godfather was wrong
Integrate the Old & New
New media is just 1 (one, uno, eins, un, ichi, 일) communication channel.
Integrate the Old & New
New media is just 1 (one, uno, eins, un, ichi, 일) communication channel.
Publicity initially gained online may eventually get reinforced by traditional media.
E-marketing, website, employee relations, community release, PR.
Be Patient
Don’t expect immediate sales payoff, but you can expect uptake in discussions.
Again, brand building is not the same as sales.
Set clear goals
Finding trends and tracking them back to their point of origin is the key to measuring ROI.
• Number of referrers on your e-commerce site (assuming you can track this data) from your website or Twitter
• Number of coupons used that were given away in a Facebook campaign to start calculating which sales stemmed from your social media campaigns
• Hash tags on Twitter, redirects in links• Use bit.ly
Take aways
1) Listen2) Be Authentic3) Be Transparent4) Engage5) Care