Social Media Strategies for Retailers and Brands Nielsen Uk Webinar 21.07.09

Listening & Engaging:

21st July, 2009

A Social Media Framework for Retailers

Maya Swedowsky – Research Manager - [email protected]

Alex Burmaster – Communications Director – [email protected]

mailto:[email protected]


© 2009 The Nielsen Company

www.nielsen-online.com / www.nielsen.com

While online sales have grown steadily, the share of online sales remains relatively small

Source: UK Office of National Statistics

0%

1%

2%

3%

4%

0

50

100

150

200

250

No

v-0

7

Dec-0

7

Ja

n-0

8

Feb

-08

Ma

r-0

8

Ap

r-0

8

Ma

y-0

8

Ju

n-0

8

Ju

l-0

8

Au

g-0

8

Se

p-0

8

Oct-

08

No

v-0

8

Dec-0

8

Ja

n-0

9

Feb

-09

Ma

r-0

9

Ap

r-0

9

Ma

y-0

9

Pe

rce

nt

of

UK

Re

tail

Sa

les

Po

un

ds

(M

illio

ns

)

Retail E-Commerce Sales % of Total Retail Sales

2



However, what is becoming abundantly clear is the influence of the Internet on offline purchasing

• Site to stores: What impact does my Web site have on sales that are

transacted in my shops?

• Online advertising on offline sales: What impact does my online

advertising have on offline sales?

• Social media: What are people saying in social media about my brick

and mortar business? What can I do about it?

Key takeaway: What happens online

does not stay online

3



What does this mean?

• Visibility into Internet behaviours is critical across all levels

of the retail organisation

• Social media strategy cannot be relegated to the Internet

team in the basement

4



Key Findings

• Consumer-Generated Media

Overview

Establishing relevancy for retailers

• Listening

Overview

Private label case study

• Engaging

Overview

Best Practices

• Final Advice

• Q&A

5

Consumer-Generated Media



Our CGM Dataset

Early-Stage Internet Today

Audio

blogsUsenet

newsgroups

Discussion

forums

Consumer

blogs

Video blogs

Micro-

community

sites

Ratings &

review sites

Groups

Media

blogs

Marketer

blogs

Feedback

portals

Mobile

blogs

Social

networksCo-creation

Typ

es

of

Co

ns

um

er-

Ge

ne

rate

d M

ed

ia

Twitter

From early newsgroups to Twitter, consumer-generated media (CGM) has come a long way and continues to grow rapidly

Video

7



Twitter no longer just for techies -

1,742% YOY

82% YOY

25% YOY

UK Unique Audience (Millions) for Twitter, Facebook,

YouTube and MySpace, June 2008 – June 2009

0

5

10

15

20

Ju

n-0

8

Ju

l-0

8

Au

g-0

8

Se

p-0

8

Oc

t-0

8

No

v-0

8

De

c-0

8

Ja

n-0

9

Fe

b-0

9

Ma

r-09

Ap

r-0

9

Ma

y-0

9

Ju

n-0

9

Un

iqu

e A

ud

ien

ce (

Mill

ion

s)

Twitter Facebook

YouTube MySpace

19% YOY

Who’s engaging in UK CGM?

Source: NetView, Home & Work, June 2008 – June 2009

Demo Index

Gender Male

Female

98

102

Age 12 – 17

18-34

35 – 49

50+

102

112

105

91

HH

income

£20K –£30K

£30K–£50K

£50K+

101

99

101

8

Metric June ‘08 vs.

June ‘09

# unique visitors

Time per person

+24%

+86%

Change in UK CGM Stats, YOY

Visitation up over 1,700% YOY as celebs and gen pop jump

on the bandwagon



So, why is Social Media so big?

• Satisfies emotional need to be heard

• Gives ability to connect with one another

• Need to create and make change

• Allows us to promote the things and people we love

• Easy, low barriers to entry, technology

9



Purchase consideration process has always been a social endeavour; CGM brings it to a whole new level

• CGM expands a shopper’s personal network of just a handful of

people to hundreds, if not thousands, of people

• Advocacy has always existed, but social media has made this

stage even more critical, amplifying the size of the audience

reached

AwarenessResearch &

ConsiderationTrial /

PurchaseLoyalty Advocacy

Multiplier

Effect

10



CGM provides Retailers with two key opportunities: Listen and Engage

1. Listen – Observe naturally-occurring online discussion to understand

consumer attitudes and needs, and answer key business questions

○ The promise of listening is compelling

○ Acts as barometer for passion

○ Provides early detection of risks, opportunities, happens in real-

time – fast!

○ Enhances current research methods: “focus the focus group,” ask

the right questions

2. Engage – Proactively and transparently encourage and take part in

online conversations about you and the products you sell.

11

Listening



Here’s how all companies should be thinking about listening…

Customer

Service &

Checkout

In-Sore

Experience

Corporate

Comm.

Crowd-

Sourcing.Com

Experience Products

• Keep finger on pulse of consumer sentiment toward brand

Brand Health Tracking

• Delve into specific issues facing brand

• Identify opportunities, ideasConsumer Insight

• Assess impact of campaign; is marketing message resonating?

Campaign Planning & Tracking

• Uncover and prioritize threats to brand image in real-time

Reputation Monitoring

• Identify customers in need of support and the issues they are discussing

Online Customer Relations

• Augment existing research, layer CGM into customer satisfaction tracking

13



• Customer service

• Return/voucher policy

• Layout

• Merchandising

• Locations

And here’s how you should be thinking about listening as a Retailer

Crowd-

SourcingProducts

.Com ExperienceIn-Store Experience

Products Marketing

• Informational resource

• Transactions

• Delivery charges

• Weekly ads

• Selection

• Availability

• Pricing

• Quality

• Private label

• Trial sizes

• Brand health – charity,

sustainability policies

• Community relations

• Vouchers & circulars

14

Listening: Private Label Case Study



Nielsen Online captures and analyzes CGM to gain insight into consumer perception and needs

Nielsen Online Content Reservoir

• Over 110M blogs

• Tens of thousands of forums and

groups

• Social networks (e.g. Facebook)

and micro-blogging (i.e. Twitter)

platforms

Analyst Team

Social

NetworksBlogs

Forums Twitter

• Over 10 years of social

media expertise

• Industry-focused

analysts

16


www.nielsen-online.com / www.nielsen.comNote: Timeframe: last 90 days as of 8th May 2009

“Own brand” discussion driven by Baby categoryStore brands

deemed “cheaper” and “less

expensive,” but essentially the “same” as big

names (i.e. just as “good”)

Shoppers most closely associate own brands with

the Baby category

Organic grocery emerges as

potential opportunity

Kirkland is the only own brand

mentioned explicitly

17

Brand Association Map™



Passion for Costco’s products, service drive its disproportionately large share of voice

Market Share Based on 2008 Revenue Buzz Share

Buzz share is depicted as a percentage of 546,275 mentions of Costco, Sam’s

Club and BJ’s in 2008

Source: United States Securities and Exchange Commission

• When fans and employees noticed that Costco did not have an official Facebook Page, they

created multiple Pages, with some attracting more than 50,000 fans. To put this in perspective, the

largest BJ’s Facebook Page has just over 200 fans.

“Going to costco = religious experience”

“I love Costco. :) It is one of my favorite places ever. Literally”

18



Buzz Volume for the Own Brands of Costco, BJ’s and Sam’s Club

Buzz volume is depicted as a percentage of 343,043,278 messages

occurring between November 16, 2008 and May 9, 2009.

• Own brand discussion tends

to account for less than 5%

of club store buzz. More

commonly discussed topics

include:

• Prices

• Membership fees

• Name brand products

Costco’s private label line, Kirkland, maintains steady lead over club own brand competitors

19



Price, comparisons to big name brands drive club own brand discussion

BJ’s own brands yield greatest

share of discussion about

price as parents discuss

saving money by purchasing

Baby products in bulk; for BJ’s

private label products, price

trumps quality

Costco’s private label line

yields the smallest share of

comparisons to big name

brands, pointing to the

possibility that Kirkland could

be on its way to being

considered a brand with an

independent identity

Topics Driving Discussion for the Own Brands of Costco, BJ’s and Sam’s Club

Note: n =100 messages for each retailer, timeframe = Q1 2009; topics accounting

for less than 3% of discussion have been removed for ease of viewing

20

A

A

A

B

B



Baby category dominates club own brand buzz, presenting a large opportunity, especially for BJ’s

Almost two-thirds of

discussion about

BJ’s own brands

focuses on nappies,

formula and baby

wipes

Product Categories Referenced in Discussion About the Own Brands of Costco, BJ’s and Sam’s Club

Note: n =100 messages for each retailer, timeframe = Q1 200921

A

A



Despite FDA rules, some mums are reticent to use generic formula

“OK so now that Jenna is FF quite a bit, I realize just

how expensive this stuff is! I have been using the

Enfamil Lipil and she loves it. I know there are

generic formulas and the Berkely & Jensen

brand is SO much cheaper (BJ's Wholesale

brand). But, I am gun-shy to use it. Anyone else

nervous to use generic formulas or is it just me??”

22

Safety concerns, lack of

awareness of FDA regulation

BARRIERS TO ENTRY

“Has anyone used the Sam's club brand

diapers? Do you like them? I was thinking

about trying them, but it's such a huge box.

Does anyone know who makes them? If they

are sold at another store as their brand I

could buy a smaller package.”

Large package sizes

BARRIERS TO ENTRY

- iVillage.com messageboards, 03/05/09

- Ovusoft.com, 02/24/09

Engaging

“With social media is it about a true authentic connection with an

audience…It's a way to engage people and it's an augment for your

product... Don't think of it as a substitute for traditional marketing…It's a

great amplification to what you are already doing.”

John Andrews, senior manager of emerging media for Wal-Mart



Almost two-thirds of Retailers have already invested in CGM; another 22% plan to get involved within the next 12 months*

• 31% of Retailers say that social network presences

will perform better as a marketing vehicle than paid

search or search engine optimization in 2009 (Source:

Internet Retailer survey)

• Not sure how to get involved? That’s why we’re here

today!

*Source: Forrester Research

24



Use CGM to power your business by enhancing your website and leveraging 3rd party tools

Customer

Service &

Checkout

In-Sore

Experience

Corporate

Comm.

Crowd-

Sourcing.Com

Experience Products

• Drive awareness, attract new customersMarketing Campaigns

• Increase customer satisfaction through proactive outreach and timely response

Customer Service

• Give company a voice and personal touch

• Manage crises, promote transparency

Corporate Communication

• Take risk out of buying new products

• Promote transparencyProduct Reviews

• Leverage your customers’ ideas for product development

Crowd-Sourcing

• Increase employee satisfaction, service

• Product developmentInternal

Communication

25



Give shoppers a reason to visit your website and keep them engaged, but focus majority of effort on expanding your footprint and reaching shoppers where they are already congregating

Retailer

WebsiteThird Party

Tools

Corporate

Blog Product

Reviews

Forum /

Community

Social

BookmarkingChat

Functionality Twitter

Social

Networks

Video

Proactively and transparently encourage online conversations, participate and

react quickly. All forms of engagement should support common goal/voice.

Blogs, Forums,

Social Shopping &

Product Review

26



Best Practices: Being Social

Community site containing employee blogs,

P2P help/answer section, seeks consumer

ideas, gossip

What is it?

Why we like it

ASOS’s Social Communities – ASOS Life

Integration – same log-in as e-commerce site

– just have to choose a username

Personal – gives ASOS a human element –

blogs/pictures

27

Twitter



Best Practices: Customer Service

Twitter as key platform for providing customer

service, in addition to more traditional outlets

(24/7 phone line, email)

What is it?

Why we like it

Zappos’s 360 Degree Customer Service

Immediate – reaches shoppers where they’re

already congregating

Personal – gives Zappos a human element

28



Best Practices: Product Reviews

Product review platform, includes free-form text as

well as assigning # of starsWhat is it?

Why we like it

Wal-Mart’s Product Reviews

Active – Wal-Mart reviews have accumulated

critical mass

Transparent – feedback is not censored; W-M

posts one star and five star reviews alike

Personal – allows customers to share photos of

themselves using the product

Easy to Share – ability to share review via Twitter,

Facebook, Digg and del.ici.ous

Connects Customers - customer Q&A Exchange

gives customers the opportunity to ask each other

very specific product-related questions before

making a purchase

What’s next? Video – third party review sites (e.g. Expo TV) and

a few retailers (e.g. Amazon) allow customers to

post video reviews

Expert Reviews – have industry experts share

professional reviews by video

29



Best Practices: Crowd-sourcing

Micro-site encourages customers to submit

ideas related to Starbucks products,

experience and community involvement

What is it?

Why we like it

Starbuck’s My Starbucks Idea

Different - one of the few companies proactively

leveraging customers for product development

Transparent - gives readers an ongoing sense of

involvement by categorizing submitted ideas as

“under review,” “reviewed,” “coming soon” and

“launched”

Socially Responsible - Starbucks isn’t just

taking by asking customers for product ideas, it is

also giving by making changes to its

environmental practices and community

involvement, based on customer input

Encourages Community - ability for customers

to talk to each other and Starbuck employees

30



Best Practices: Internal Communication

Private social media platform for Best

Buy’s 150,000 employees encourages

communication and collaboration.

What is it?

Why we like it

Best Buy’s Blue Shirt Nation Mix

Different - one of the few retailers using

social media internally

Highlights Importance of Customer

Service – Best Buy believes that its

employees are one of its best assets, as

evidenced by its TV commercials,

including its latest “True Stories”

campaign

Enhances Employee Satisfaction -

allows engaged employees to share their

thoughts and make proactive contributions

to the company

31



Final Advice

• What happens online does not stay online

• Assume consumer control/power will grow – listen to your customers

• Get the listening piece right – no short cuts

• Engage, participate, sense & respond

• Nurture and protect brand credibility by being honest, open and transparent – introduce yourself!

• Do not neglect your website, it is one of your best marketing vehicles…

• But focus majority of effort on reaching customers where they’re already congregating

• Rethink the strategic role of customer service

• Think beyond loyalty to “advocacy”

• Learn from everyone in your organization

32



Thank you.

For more information/questions contact:

Alex Burmaster

[email protected]

+44 (0) 20 7014 0597

Or

Maya Swedowsky

[email protected]

+1 646 654 7839



Social Media Strategies for Retailers and Brands Nielsen Uk Webinar 21.07.09

Documents

Transcript of Social Media Strategies for Retailers and Brands Nielsen Uk Webinar 21.07.09