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Social Analytics - Putting the Science into Social Business
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Transcript of Social Analytics - Putting the Science into Social Business
© 2011 IBM Corporation
IBM Social Analytics - Putting the Science into Social Business
Mark Heid, Program DirectorSocial Analytics Solutions, [email protected]
Dec 15, 2011
Webinar available here: http://w.on24.com/r.htm?e=272891&s=1&k=8EB9C4CBEB1C376A942A644887F45994
© 2011 IBM Corporation© 2011 IBM Corporation
Agenda
2
Why be an interactive, social business?1
IBM Leads in Social Analytics & Enterprise Marketing Management3
The New Marketing Imperative2
How to Get Started4
© 2011 IBM Corporation© 2011 IBM Corporation
Marketing’s Challenges…and Opportunities
3
§ Channels proliferate…
Network of pages Network of people
§ The Internet evolves…
§ The consumer is in control…
§ The rate of change accelerates…
Marketing’s role must evolve…
Years to reach 50M users:
TV13 Yrs
Internet4 Yrs
Facebook3 Yrs
Tablet2 Yrs
© 2011 IBM Corporation© 2011 IBM Corporation
Expanding marketing’s role, and contribution to the business
Agenda:
ü Understand the market and the customer
ü Build awareness and demand
ü Steward the company’s brand
ü Drive brand strategy and execution
Agenda: + Understand the customer in real time,
across the business+ Anticipate customer needs+ Drive consistent, compelling interactions
across all channels+ Steward the customer experience across
all touch points+ Monitor and harness customer evangelism+ Accountable for business outcomes and
return on investment
Traditional CMO
Transformative CMO+
4
© 2011 IBM Corporation© 2011 IBM Corporation
IBM’s approach to integrated marketing
5
Integrated Marketing
Consistent, Compelling Brand and Customer Experiences
Optimized, Relevant Cross-Channel Marketing
Deep Customer Insight
© 2011 IBM Corporation© 2011 IBM Corporation
The vast majority of CMOs are underprepared to manage the impact of key changes in the marketing arena
50%71%
68%
65%
63%
59%
57%
56%
56%
56%
55%
54%
50%
UnderpreparednessPercent of CMOs reporting underpreparedness
Data explosion
Social media
Growth of channel and device choices
Shifting consumer demographics
Financial constraints
Decreasing brand loyalty
Growth market opportunities
ROI accountability
Customer collaboration and influence
Privacy considerations
Regulatory considerations
Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n=149 to 1141 (n = number of respondents who selected the factor as important)
Global outsourcing
Corporate transparency 47%
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© 2011 IBM Corporation© 2011 IBM Corporation
Customers are the New Intellectual Property
ProductLeadership
(Make the promise)
OperationalExcellence
(Deliver the promise)
CustomerIntimacy
(Keep the promise)
DecisionManagement
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© 2011 IBM Corporation© 2011 IBM Corporation
We are seeing unprecedented upheaval in the consumer buying process
* David C. Edelman, McKinsey, Dec 2010
In the past….there was a funnel
• Many Brands - Consumers start buying process with a large number of brands in mind
• Fewer Brands: These choices are narrowed down to a few
• Final Choice: A decision is made between the few
• Buy: A purchase is made…
• Post Purchase: Consumers’ relationship with the brand is focused on the use of the product or service
Today’s consumer buying process is far more dynamic and interactive…..
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© 2011 IBM Corporation© 2011 IBM Corporation
Increasingly, customer acquisition is more nuanced. Generating loyalty is the new marketing imperative
Strengthen brand preference
through advocacy
Accelerate re-purchase through propensity models
Gain insights and increase positive sentiment in social conversations
* David C. Edelman, McKinsey, Dec 2010
Social Analytics is the key to success in this new environment
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© 2011 IBM Corporation© 2011 IBM Corporation
Agenda
Why be an interactive, social business?1
IBM Leads in Social Analytics & Enterprise Marketing Management3
The New Marketing Imperative2
How to Get Started4
10
© 2011 IBM Corporation© 2011 IBM Corporation
Knowing the customer… involves creating a complete picture
Jane Cogswell Demographic Profile• Financial Planner• Single• 28 years old• Located in Boston, MA
TargetAudience
Preferences• Channel• Contact Time• Value Buyer
• Gender / Age• Geography• Income
Demographics
• Visit Frequency• Purchases• Lifecycle stage
Behaviors
• Hobbies• Family • Lifestyle
Interests
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© 2011 IBM Corporation© 2011 IBM Corporation
Social attributes will improve understanding and results
Typical audience targeting: demographics
Social media informs interest, brand disposition, likes/dislikes
Accountant
Mom Wife
Golfer
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© 2011 IBM Corporation© 2011 IBM Corporation
Pulling together the whole scenario
Comes to the web site and gets a cookie,browses, but does not buy
Later receives an email with a personal URL, and clicks through to the web site.
Jane makes a purchase and enters her email for the confirmation and address for shipping
Jane, loves her product so much she becomes a fan on The Facebook.
Connections made between:§ Cookie and Email § House Hold and Cookie§ Email and House Hold
Cookie=24601Regular web site browserRecently looked at green widgets
Email [email protected] =24601Open rate: 73%Click-through rate: 5%
Facebook ID=01810210 Facebook friendsBorn in Houston, TXGadget’s Galore Fan
Facebook ID
And cookie tied together?
Jane, tweets about #GreenWidget
@BrainyJanieFollowing 53Followed by 152
Twitter handle appended through third party
Channel IDCookie 24601
Email [email protected]
Direct Jane Cogswell
Facebook 01810
Twitter BrainyJanie
Jane gets an email invitation to attend a sneak preview of Green Widget 2.0 and she can invite her friends via Twitter.
@BrainyJanieTweets sneak preview link, opened by 25 friends
Rinse and Repeat
Email and cookie are tied together
Channel IDCookie 24601
Email [email protected]
Direct Jane Cogswell
Facebook 01810
Twitter BrainyJanie
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© 2011 IBM Corporation© 2011 IBM Corporation
An Example: SmartPhone User Personas
SPSS Modeler identifies clusters and maps the authors in social media to personas established from the CCI concepts and hotwords.
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© 2011 IBM Corporation© 2011 IBM Corporation
Monetizing Social Media
Optimize Cross Channel, Integrated
Campaigns
Marketing CampaignsPR Activities
Merchandising MixCategory Management
Sales
Retailer POSData
E-Commerce
Web Browsing
Contact Center
Social Media
Surveys, Focus groups
Map Aggregate Models to 1:1 User Profiles
Execute at the individual level by mapping
aggregate insights to 1:1 social media profiles
Capture, Analyse & Model
Extract trends
Expose patterns
Discover relationships
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© 2011 IBM Corporation© 2011 IBM Corporation
Analytics Foundation: Feature Vectors & Action Clusters
• Start with 30-40 modeled variables – “Feature Vectors”
• Each feature vector is like a gene, which describes a facet, or set of customer behavior traits
• 8-15 Feature Vectors are used to define Action Clusters, all 40 can be used to create sub-groups
5-dimensional typical segmentation ≈ 16,000 views12-dimensional Action Clusters ≈ 3,138,000,000,000 views30 Feature Vectors ≈ 17,400,000,000,000,000,000,000,000,000,000 views
Age +Income +
GeographyPreferred Product
CategoriesPreferred Channel
Participation in Loyalty
ProgramUse of In-House
Credit CardUse of Service
Programs
Return / Exchange BehaviorBreadth of
Categories Shopped
Length of Time as Customer
Recency + Frequency +
Value
Response to Media
Time until Repurchase in Key
Categories
Annual Spend Level
Annual Transactions
Econometric: Real-estate &
Unemployment
Most segmentation approaches only focus
here
Action Clusters are:
• Highly homogeneous – it is difficult to get into a cluster based on 13 dimensions, ensuring that the customers are very similar to one another
• Highly differentiated – the AC process ensures as much “distance” between clusters as possible
• Highly actionable – because the clusters are based on the customer’s response to various dimensions of the value proposition, they facilitate highly-specific targeting
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© 2011 IBM Corporation© 2011 IBM Corporation
Social Media Improves Traditional Predictive Analytics
Behavioral data- Orders- Transactions- Payment history- Usage history
Descriptive data- Attributes- Characteristics- Self-declared info- (Geo)demographics
Attitudinal data-Market Research-Social Media
Interaction data- E-Mail / chat transcripts- Call center notes - Web Click-streams- In person dialogues
Customer View
360 degree
“Traditional approach”
High-value, dynamic approach- source of competitive differentiation
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© 2011 IBM Corporation© 2011 IBM Corporation
…..and more accurately answers “Why?”
Behavioral data- Orders- Transactions- Payment history- Usage history
Descriptive data- Attributes- Characteristics- Self-declared info- (Geo)demographics
Attitudinal data- Opinions- Preferences- Needs & Desires
Interaction data- E-Mail / chat transcripts- Call center notes - Web Click-streams- In person dialogues
“Traditional”
High-value, dynamic- source of competitive differentiation
Who?Who? What?What?
Why?Why?How?How?
Customer View
360 degree
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© 2011 IBM Corporation© 2011 IBM Corporation
Drill-Down: Web Analytics and Predictive Analytics
With web analytics data alone, we get some insight into web metrics that are important in predicting item sales.
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© 2011 IBM Corporation© 2011 IBM Corporation
Drill-Down: Web Analytics, Social Media and Predictive AnalyticsWith web analytics and Cognos Consumer Insight data, we get more insights into other factors that may be important in predicting item sales, such as conversations around “modern” designs, mattress and lounge chairs, with a higher confidence level.
Key Social Media Insight: Referencing “Modern” really
matters. This wasn’t picked-up with traditional
predictive analytics
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© 2011 IBM Corporation© 2011 IBM Corporation
Agenda
Why be an interactive, social business?1
IBM Leads in Social Analytics & Enterprise Marketing Management3
The New Marketing Imperative2
How to Get Started4
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© 2011 IBM Corporation© 2011 IBM Corporation
Three types of media: Paid, Owned, Earned
Customer
Owned media
Earned media
Paid media
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© 2011 IBM Corporation© 2011 IBM Corporation
Earned Media
Traditional Digital§ Public relations
generated news
§ Analyst coverage
• Twitter• Blogs• Product reviews
Delivered through a third party without exchange of payment.
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PR
word of mouth
social media
© 2011 IBM Corporation© 2011 IBM Corporation
Owned Media
Traditional
ATM
CALL CENTERDIRECT MAIL
BRANCH
POS
KIOSK
Digital
MICROSITES FAN PAGES
WEB SITE EMAIL
Includes off domain digital
outposts
Media, content, and channels that the company directly delivers, has control over, or owns.
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© 2011 IBM Corporation© 2011 IBM Corporation
Paid Media
Traditional Digital
Delivered through a third party or intermediary in exchange for payment.
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radioTV
Adsprintoutdoor
Ads
display
Google PPC
© 2011 IBM Corporation© 2011 IBM Corporation
Looking ahead – The future must be intelligent marketing that understands the interrelations of all channels and media
Customer
Owned media
e
PR
Earned mediaAds
Paid media
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© 2011 IBM Corporation© 2011 IBM Corporation
3 simple steps to a great social strategy
1. Capture2. Monitor and Analyze3. Act and Engage
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© 2011 IBM Corporation© 2011 IBM Corporation
1. Capture
“Earned” media feeds
SOCIAL NETWORKS
(Publicly available)
WIKIS PHOTO SHARING
BLOGS
100+ million
MICROBLOGSFORUMS/NEWSGROUPS
120+ million
VIDEO SHARING SOCIAL MEDIA NEWS
AGGREGATORS
Consumer InsightSocial
“owned” media outpostsSocial referrals and
downstream conversations
Social Email Analytics
Links from emails and websites that are shared, liked, and
commented on
SocialSources
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© 2011 IBM Corporation© 2011 IBM Corporation
2a. Monitor and Analyze “Earned” MediaSocial Media Analytics with CCI
Social Media Analytics
Analyze “earned” social media,identify brand sentiment,
emerging topics
Consumer Insight
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© 2011 IBM Corporation© 2011 IBM Corporation
2b. Monitor and Analyze“Owned” Social Analytics and ROI with Coremetrics Social
Analysis of “owned” media outposts
ROI of social clickthroughs
Social
Social Media Analytics
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© 2011 IBM Corporation© 2011 IBM Corporation
2c. Monitor and AnalyzeSocial Email Analytics with Unica
Social Media Analytics
Social Email Analytics
Analytics for email and web links that are shared, liked, and
commented on
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© 2011 IBM Corporation© 2011 IBM Corporation
2d. Monitor and AnalyzePredictive Social Analytics with SPSS
Predictive Social Analytics
Social segmentationPredict behavior based on social
attributes
Social Media Analytics
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© 2011 IBM Corporation© 2011 IBM Corporation
3a. Act and Engage
Social Media Marketing Execution
Social segmentation,social sharing, and
real-time offers inside of social media widgets /
applications.
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© 2011 IBM Corporation© 2011 IBM Corporation
3b. Act and Engage
Social MediaBusiness Execution Customer Experience Suite
Social MediaBusiness Execution
Social MediaBusiness Execution
Social commerce, branded communities,
social widgets,product ratings, and
more…
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© 2011 IBM Corporation© 2011 IBM Corporation
What is Enterprise Marketing Management (EMM)?
A marketing technology category that supports the end-to-end marketing function
across all marketing disciplines
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© 2011 IBM Corporation© 2011 IBM Corporation
IBM Vision for the EMM Suite
EarnedMedia
Owned Media &Interaction Channels
Paid Media
Owned media
Earned media
Paid media
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© 2011 IBM Corporation© 2011 IBM Corporation
IBM Vision for the EMM Suite
Owned Media &Interaction Channels
BrandOptimization
EarnedMedia
Paid Media
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© 2011 IBM Corporation© 2011 IBM Corporation
IBM Vision for the EMM Suite
Owned Media &Interaction Channels
MediaOptimization
BrandOptimization
Marketing Performance Optimization
Open Integration
EarnedMedia
Paid Media Marketing
Analytics
Data &Content
InteractionOptimization
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