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The Marketing Effects of Consumer Influence on Social Media

March 6, 2013

Janet JaiswalSr. Director of Global Product Marketing atTealeaf, an IBM Companyjjaiswal@us.ibm.com

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Background

• Twenty years of experience building and marketing products in the mobile, payments, and e-commerce space for both businesses and consumers.

• Has introduced about ten technology products and services to the enterprise and consumer market.

• Previous positions: eBay, Scient, TRUSTe and PayPal• Leading our social media marketing efforts at Tealeaf, an IBM company

that has resulted in a 250% increase in unique visitors and a 45% increase in followers.

• MBA from the Tepper School of Management at Carnegie Mellon University

• BS at the University of California at Berkeley• Certified in Social Media Marketing by Marketing Sherpa

• Follow Janet at @JanetJaiswal (Mobile and Customer Experience Management)

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Important note

The information presented in today’s session reflects my viewpoints,

experience and learnings only and do NOT represent IBM in any way

whatsoever.

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Agenda

› Three key trends in consumer media› Implications for marketers & their companies› Potential strategies› Questions & answers

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The main goal of Marketers is to reach people at those moments

or touch points, that can influence their purchasing

behavior.

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#1 – Social site’s population grows, especially Pinterest

Launched in 2011, Pinterest is primarily B2C but also B2B

Source: Socialmediaexaminer.com

“Pinterest users reported a surprisingly high correlation between pinning and subsequent purchasing; more than 1 in 5 Pinterest users has pinned an item that they later purchased”

- Harvard Business Review, May 2012

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#2 – Mobile is the media of choice to access social content

Source: Nielsen 2012

How do users access social media?(in addition to the PC)

43% of users use smartphones16% use tablets

Jul’11 Jul’12

61%34%

5%

Jul’11 Jul’12

Mobile Apps Mobile Web

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In 2013 mobile will exceed desktop internet usage

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Mobile Driving Success / Failure

“eBay sees mobile as a game changer”

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Bad Mobile Experiences = Real Consequences

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“A bad review in the app store scars your app for life”

– Mobile Orchard (leading iOS Blog)

@xxxx *sigh* So depressing. Why do this?

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Expectations vs. Realities

85% of adults who have completed a mobile transaction in the past year expect the experience to be better than using a laptop or desktop computer

Yet 41% of comments about the top mobile companies expressed frustration

Source: Harris Interactive Survey of Mobile User Experience March 2011

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The perfect storm builds…

Source: Harris Interactive Survey of Mobile User Experience March 2011, Image source: Tim Greenhalgh, connectedeverywhere.com

63% of all online adults would be less likely to buy from a company via other purchase channels if they experienced a problem conducting a mobile transaction.

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#3 – Voice of the Customer is the new way consumers gain attention

• Voice of the Customer (VOC) includes social networking sites, surveys, feedback, updates, tweets, reviews, forums etc.

• Remember…online content is indexed for a long time….

Listen and learn about other consumers’ experiences: 70%

Find more information about brands, products and services: 65%

Compliment brands: 53%

Source: Socialmediaexaminer.com, Image source: researchaccess.com

Social media is used to…

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IMPLICATIONS FOR MARKETERS AND THEIR COMPANIES

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Some disconnect between sites used by consumers vs. marketers

Source: Pitney Bowes Software, Nov 2012

Social Media Sites Used by Marketing Decision-Makers and Consumers Worldwide% of respondents

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Consumers’ reaction to marketing messages on social media

Consumers are more tolerant of marketing messages on social media if they are from brands they follow.

Source: www.emarketer.com

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Consumer distrust advertising even if its disguised

“72% of those who felt they had been duped by a Sponsored Story either felt the same way or worse about the brand afterwards; 62% of those feeling mislead by a Promoted Tweet said the same.”

Source: MediaBrix

Source: www.emarketer.com

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POTENTIAL STRATEGIES

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Strategy #1 for Mobile

• Mobile should be a priority for your content– Content should be personalized– Content should be engaging– Content needs to be optimized for

various mobile devices and platforms

• Understand your mobile users including user demographics such as…

– Geography, gender, age, income, device, platform etc.

•Measure the impact – Campaign effectiveness, # of

customers acquired, retention rate, conversion rates etc.

Native Apps Mobile Web

HTML5Hybrid Apps

Tablets

Image source: Tealeaf, an IBM company

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Strategy #2 for Pinterest

• Place high quality photography

– Think themes not product promotion

– Creativeness and visual appeal is key

• Add the “Pin It” Button on your site

• Be prepared to spend time to engage with “Pinners”

Pinterest supports hashtags

• Engage with users– Repin content (users get notified and hopefully they will go to your board)– Make comments (comments stay with the picture so others can see it)– Follow others (user gets notified and hopefully they will follow you)

Image source: Charles Nicholls on mashable

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Strategy #3 for VOC

“Online, no one can hear you scream.”

- Unknown

Image Source: YA Novelties

Pay attention to the Voice of the Customer– Not just for marketers and researchers– Be wary of the perfect storm– Use VOC to attract visitors, educate them, maintain

relationships and provide customer service– Gather and evaluate VOC data regularly– Evaluate resources requirements before you start

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Questions?