Frost sullivan windows case study final 12.20.10

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The contents of these pages are copyright © 2010 Frost & Sullivan. All rights reserved.

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Firm: Microsoft CorporationIndustry: Technology Products and SolutionsHeadquarters: Redmond, Washington, United StatesGeographic Footprint: GlobalOwnership: PublicRevenue (2009): $58.4 billion USD

Capitalizing on Social Media to Drive an Effective Product Launch

Problem: Microsoft seeks to build long-term relationships with brand enthusiasts and engage them in the new product launch process.

Solution: Microsoft leverages social media to engage brand enthusiasts who will support the launch of Windows 7. Microsoft’s strategy includes:

Identifying and organizing brand enthusiastsRewarding brand enthusiasts’ active participationMonitoring online conversations for opportunities to engage and amplify peer-to-peer recommendationsProviding brand enthusiasts with tools to drive word-of-mouth

Business Results:Social media-driven impressions surpassed goal by 140%7-point increase in purchase consideration after the launchReached 4% market share in one month (previous OS version took seven months)

Resources Required: Dedicated social media team to drive strategic focusMonitoring agencies to track and analyze online conversations

Applicability of Best Practice to Executive Functions: Function Applicability

Marketing

Market Research

Best Practice Guidebook

Note: Windows and the Windows flag logo are trademarks of the Microsoft group of companies.

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Source: Microsoft Corporation; Growth Team Membership™ research.

The Windows marketing team evaluates key trade-offs to guide its social media engagement processWindows 7 Social Media Engagement Process

Establish Social Media Team

Identify Brand Enthusiasts

Engage Brand Enthusiasts

Build Tailored Presence Online

Monitor Sentiment

Equip Brand Enthusiasts

Trade-offShould we create a dedicated team or can we manage with current resources?

Trade-offShould we focus on mainstream customers or passionate Windows users?

Trade-offShould we incentivize enthusiasts’ participation or rely on voluntary engagement?

Trade-offShould we jump in to every channel or gradually build our presence where enthusiasts are prevalent?

Trade-offShould we disregard negative conversations or look at them as opportunities?

DecisionA dedicated social media team ensures the necessary resources are in place to capitalize on the long-term opportunities presented by social media.

DecisionA narrow focus on a select group of brand enthusiasts allows Marketing to engage individuals with greater potential to influence others’ decisions.

DecisionTargeted engagement tactics strengthen existing relationships, create new bonds, and ensure enthusiasts feel valued by the Windows team.

DecisionBuilding a social media presence where brand enthusiast conversations are taking place ensures the team’s engagement activities can have the most impact.

DecisionMonitoring the sentiment of conversations for positive and negative themes weekly enables the marketing team to adjust its tactics leading up to the launch.

DecisionProviding enthusiasts with simple tools to promote and share information with their peers encourages trial and customer consideration of the product leading up to the launch.

Trade-offShould we arm enthusiasts with tools to spread the word or leave them to their own devices?

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key takeaway: Establish a full-time social media team to manage strategy and engage brand enthusiastsThe Windows marketing unit establishes a dedicated team to ensure a long-term commitment to engagement through social media

Windows Social Media Team

Social Media Strategy LeadFocus: Windows Social Media StrategyResponsibilities:

Lead development of the social media strategy Maintain accountability for program successManage the social media team and resources required for specific campaignsMonitor emerging opportunities in social media

Community ManagerFocus: Windows-Supported Online CommunitiesResponsibilities:

Attract individuals to Windows-supported communitiesScreen potential candidates for invite-only online communitiesInteract with community members to ensure high engagement with Microsoft and its products

Social Media Program ManagerFocus: External Online CommunitiesResponsibilities:

Engage users of Windows-related social media sites and communitiesGrow the number of individuals in each social media channel/communityMeasure the return on investment of engaging in external social media channels

Social Media Campaign LeadFocus: Specific Windows Social Media CampaignsResponsibilities:

Manage each social media campaignEnsure integrated messages across all social media channelsMeasure the return on investment for the campaign

why invest in a dedicated social media team?

Key reasons for a dedicated social media team include:The rapid and ongoing increase in social media usage among consumers, customers, and prospectsThe ever-increasing number of social media engagement tools available for executives to leverageThe vast amount of monitoring services available that need to be understood and managed

how can we locate brand enthusiasts?

Brand enthusiasts can be located through a variety of means, including:Browsing category-related discussion forums and communities Using free and paid listening tools to scan social media channels for key words and brand-related conversationsEstablishing a brand enthusiast program and inviting current customers

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4,000 MVPs

Quality of PostsIdentifies the most

knowledgeable participants

Quantity of PostsEnsures recognition of the most productive individuals

Level of ImpactScreens for participants

with proven results

key takeaway: Identify and organize select brand enthusiastsThe Social Media Program Manager screens

brand enthusiasts for the Windows Clubhouse

Windows Clubhouse Application

Windows ClubhouseThe Clubhouse is a Microsoft-owned online community that connects passionate Windows users from around the world. Members have access to the latest Windows-related news and can share their stories, tips, and experiences with each other.

Most Valuable Professional (MVP) AwardThe annual MVP award recognizes members of Microsoft’s technical communities, such as blogs and forums, that have actively contributed to discussions and provided support to customers. Microsoft does not pay these individuals.

A panel of internal and external stakeholders nominates and screens candidates for the Most Valuable Professional award

MVP Identification Process

The screening process is conducted by a panel that includes members of the MVP team and Microsoft product groups. Each nominee’s contributions are evaluated for the past 12 months (including those of active MVPs); all receive the same level of scrutiny.

Join the Clubhouse Community!

Please indicate your age: Under 18 18–35 36+

How many Microsoft products do you use? 1–3 4–6 7 or more

How well does the following statement describe your experience with Microsoft products?

I have had a positive experience with Microsoft and its products

Strongly Agree Agree Neutral Disagree Strongly Disagree

What are your favorite online activities?I participate in online communities

Frequently Occasionally RarelyI participate in forum discussions

Frequently Occasionally Rarely

Why do you want to be a part of the Clubhouse community?

I want to demonstrate my own expertiseStrongly Agree Agree Neutral Disagree Strongly Disagree

Active and Influential

Individuals must be active in online category-related discussions and have a track record of adding value to conversations.

Knowledgeable and Passionate

Individuals must be knowledgeable and passionate about the category and Microsoft products.

Screening Criteria

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key takeaway: Reward and continuously engage brand enthusiasts The Social Media Team engages brand enthusiasts through a variety of member-only tactics

Select Brand Enthusiast Engagement Tactics

Community-Powered Content

Windows Clubhouse members vote for the syndication of preferred posts on Windows.com, which bestows recognition and increases readership for the best contributors.

Code of Conduct

Clear guidelines for Windows Clubhouse and MVP members ensure rules of engagement are followed when sharing content or otherwise interacting with other brand enthusiasts online.

Beta Testing

MVPs receive access to beta-stage innovations and product enhancements to provide early-stage feedback and ideas for potential product enhancements prior to a wide-scale launch.

…strengthen the bonds between enthusiasts and the Windows team…

Tips and Tricks

Membership in the Windows Clubhouse and MVP program gives enthusiasts access to Windows-related tips and tricks, enabling individuals to share insights with fellow enthusiasts.

Breaking News

Because of their propensity to share information with others, the Social Media Team ensures Clubhouse and MVP members receive information about the latest Microsoft and Windows features, products, and services ahead of the general public.

Direct Networking

As members are pre-screened to be networkers, the Windows Clubhouse enables members to connect directly with influential, highly connected consumers in the category.

…create networking opportunities for brand enthusiasts…

Global Summit Invitations

MVPs are invited to an annual summit, where they access to exclusive technical content, participate in direct feedback sessions, and meet with Microsoft executives, product teams, and other MVPs from around the world.

Achievement Badges

MVPs receive virtual badges, which they can place on their own web sites and blogs to highlight their expertise and showcase Microsoft’s recognition of their contributions.

…and ensure brand enthusiasts are recognized for their efforts and made to feel valued by Microsoft.

The engagement tactics directly involve enthusiasts in content generation and product enhancements…

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key takeaway: Identify where and how to engage brand enthusiasts onlineThe Social Media Team selectively builds its presence in external channels where brand enthusiasts are most active

Pre-Entry Considerations

Post-Entry Considerations

Case-in-Point: Microsoft Builds Presence on Facebook

Look Before you LeapRather than immediately creating a company presence on each new social media channel, the Social Media Team scans the online landscape for Windows profiles already established by brand enthusiasts.

Engage with Prominent Brand EnthusiastsWhen applicable, the team partners with brand advocates who have already developed a Windows following on specific social media channels (e.g., partnering in the daily management of the Windows Facebook account).

Listen before Engaging in ConversationsPrior to engaging in the channel, the team listens to the type of conversations taking place (e.g. positive or negative) to brainstorm the most appropriate content and style of interaction for each channel.

Don’t Broadcast; Add ValueRecognizing that social media is not just another broadcast tool, the team initially focuses on adding value to current discussions and responding to member questions and feedback.

Contribute Fresh Content and Participate FrequentlyProviding community members with fresh, frequent, and relevant content ensures ongoing engagement and increases the likelihood that members will recommend the brand’s presence on the channel to their peers.

Don’t Filter ContentOther than spam or offensive material, all content and comments remain on the specific channel, whether they are favorable to the brand or not, and responses are made when necessary.

…eventually leading to the original administrators asking the Windows social media team to take over the group’s daily management.

Building Trust with Brand Enthusiasts

…and then approaches highly engaged enthusiasts who manage a specific Windows-related group with high levels of activity, offering to partner in the group’s management…

Engaging with Brand Enthusiasts

The Social Media Team identifies and monitors groups on Facebook where Windows-related conversations are taking place and determines how they can add value…

Scanning the Social Media Landscape

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Blogs/ForumsTwitter Facebook Video Sites Clubhouse

Weekly SentimentMonitor the shift in sentiment over time for opportunities to amplify enthusiast conversations.

Weekly InsightsSummarize positive and negative trends identified from weekly engagement activities.

Next Steps and RecommendationsPrescribe the tactical changes to be made to engagement activities.

Windows Social Media Hub

key takeaway: Harness the power of positive sentiment leading up to product launchFrequent monitoring of online conversations allows the

team to quickly adjust messaging and engagement tactics…

Twitter Weekly Listening Report

Illustrative

…and aggregate online conversations (positive and negative) once positive sentiment reaches a critical mass

The Social Media Hub feeds conversations and comments directly to sites such as Windows.com and the Windows Clubhouse, further increasing the reach of brand enthusiast discussions. Positive themes are also incorporated into banner ads occasionally.

Regular listening reports allow the social media team to:Build on positive themes such as adjusting television creative rotation to emphasize spots with greater resonanceAddress negative trends in conversations by responding via posts to the Windows Team Blog

Windows Social Media HubThe Windows Social Media Hub is a web site based on Microsoft technology that aggregates Windows 7-related conversations from across the internet. To ensure content is appropriate and relevant to Windows 7, the Social Media Team moderates the Hub.

Twitter—Weekly Report: Week 1 August 2009

Key StatisticsOutreach: Monitor whether outreach increased, decreased or remained constant.

Fan Engagement: Monitor indicators to track enthusiast engagement (e.g., click-throughs).

Weekly GoalTrack progress in increasing the number of followers for the Windows Twitter account.

Sample Member PostsProvide examples (positive and negative) of brand enthusiast activity.

http://www.microsoft.com/windows/social/

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key takeaway: Empower brand enthusiasts to evangelize the product via their peer networksThe Social Media Team develops a toolkit to facilitate enthusiast conversations and drive word-of-mouth about Windows 7

Windows 7 Toolkit

The electronic toolkits are easy to share and provide brand enthusiasts with a variety of tools to encourage trial and consideration of Windows 7.

Invitation ScriptsSample invitation scripts make it easy for enthusiasts to create online or offline events and attract attendees.

YOU’RE

INVITED

Countdown ClocksOnline countdown clocks, which highlight the launch date and a “tip of the day,” help build excitement for the launch.

Video ClipsWindows 7 videos make it easy for enthusiasts to share relevant information within their networks.

Product DemosDemo versions of Windows 7 enables enthusiasts to showcase key features of the new product to their peers.

Blog BadgesBadges that enthusiasts can place on their web sites help spread awareness of the upcoming launch.

Windows 7

the offline element: live events

The Windows team expands its outreach to category enthusiasts by sponsoring a variety of live events leading up to the launch. Specifically, the team leverages Meetup.com (http://www.meetup.com), an online platform that helps individuals organize face-to-face gatherings around similar interests, and provides the toolkits to people that have set up such meetings to discuss Windows 7.

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Awareness Purchase Intent Purchase Decision

Business ResultsMicrosoft’s use of social media to engage brand enthusiasts for the Windows 7 launch process drives a variety of positive results

Social Media Driven Impressions

Facebook Fans

Purchase Consideration

“Very or extremely interested in learning more about Windows 7”

Live Event Feedback

Market Share

Time to Reach 4%

Likelihood to Purchase within 6 Months

Goal Actual Launch Week 2

Launch Week 2

The Windows 7 launch generated more than 200 million brand impressions in the first two weeks with an estimated cost per thousand (CPM) of $0.02.

Over 100 million Windows 7 licenses were sold in the first six months, making it the fastest selling operating system in history.

140%7-point increase

100K

Typical End Action (e.g., clicking a link on Windows.

com)

Visitor to the Social Media Hub

5–10%

200K

Windows 7 trended as high as 3rd on Twitter and was the number-one sponsored channel on YouTube for several days.

68% of attendees said they were “More Likely” to consider Windows 7 as a result of the event.

Windows surveyed visitors to the Social Media Hub and other Windows-related web sites to track customers’ likelihood to purchase Windows 7 post-visit.

Market Share

Windows 7

4%

1 7 Months

Vista

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Key Lessons Learned

Profiled Company Perspective

Before you dive in to social media, it is important to determine what type of relationship you want to have with your customers and prospects online: responding to customer queries, engaging with brand enthusiasts, etc. This decision requires you to ascertain what type of corporate culture you have and how prepared you are for the new-in-kind challenges around transparency and in-the-moment responses that come with social media.

The key to employing social media effectively, irrespective of the objective, is having a clear strategy and viewing it as a long-term investment. Social media necessitates contributing to ongoing conversations with customers, rather than generating buzz for a specific campaign. These contributions require creating internal capabilities and capacity.

The social media landscape is expanding and changing at a rapid pace. If you don’t have the dedicated resources, especially a team, in place to track and capitalize on those changes, it is very likely you will miss out on valuable opportunities to drive engagement and sales.

As you begin your social media journey, it is important not to jump into any channel, even those that seem obvious choices such as Facebook or Twitter. Companies have to be selective: identify where your customers are interacting and where brand- and category- related conversations are taking place. Then monitor these conversations so you can determine how you can add value to them.

When building up to a product launch, listening to online conversations is crucial, but it is imperative that the sentiment of these conversations is tracked and analyzed. Gaining visibility into the level of positive (or negative) conversations enables Marketing to adjust its tactics accordingly—share the positive comments through other channels (including your corporate web site) and tackling negative conversations and comments that are based on misconceptions to prevent them gaining momentum. For the latter, the PR department is a great resource for Marketing.

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Source: Growth Team Membership™ research.

Supporting Tools & Resources Sample List of Available Resources to Locate Brand Enthusiasts and Brand-related Conversations

Twitter SearchSearch the micro-blogging web site for brand-related conversations.http://search.twitter.com

TechnoratiSearch the web for relevant blogs and posts about your brand.http://www.technorati.com

Google Blog SearchSearch the web for relevant blogs and posts about your brand.http://blogsearch.google.com

Friend FeedSearch the social media landscape for brand-related conversations.http://www.friendfeed.com

FacebookSearch the social networking platform for relevant groups and fan pages.http://www.facebook.com

MySpaceSearch the social networking platform for relevant groups and fan pages.http://www.myspace.com

DiggSearch for relevant comments and postings by community members.http://www.digg.com

Radian6Gain insight from social media monitoring and analysis.http://www.radian6.com

SysomosGain insight from social media monitoring and analysis.http://sysomos.com

Visible TechnologiesGain insight from social media monitoring and analysis.http://www.visibletechnologies.com

CrimsonHexagonGain insight from social media monitoring and analysis.http://www.crimsonhexagon.com

MyBlogLogSearch for relevant blogs and postings by community members.http://www.mybloglog.com

RedditSearch for relevant comments and postings by community members.http://www.reddit.com

LinkedInSearch for company-related discussions and groups.http://www.linkedin.com

NingScan customized social networks built by individuals around their interests.http://www.ning.com

StumbleUponBrowse the web based on the passions and interests of individuals.http://www.stumbleupon.com

Free Search Tools

News Aggregators

Paid Search Tools

The Growth Team Membership identified the following free and paid tools as potential starting points to locate brand enthusiasts and brand-related conversations.

Online Communities

http://search.twitter.com

http://www.technorati.com

http://blogsearch.google.com

http://www.friendfeed.com

http://www.facebook.com

http://www.myspace.com

http://www.digg.com

http://www.radian6.com

http://sysomos.com

http://www.visibletechnologies.com

http://www.crimsonhexagon.com

http://www.mybloglog.com

http://www.reddit.com

http://www.linkedin.com

http://www.ning.com

http://www.stumbleupon.com

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Supporting Tools & Resources Windows Club House Application

http://clubhouse.microsoft.com/Join

Join the Clubhouse Community!

The Clubhouse is a community where people just like you are looking to share ideas and build upon their knowledge of Microsoft products. To join and become a member of this specialized community, complete the first step of the application, it only takes a few minutes.

All questions are required. Please indicate your age.

Under 18

18-35

36+ How many Microsoft products do you use?

1-3

4-6

7 or more Please indicate your skill level with these products.

IT Professional

Advanced User

Intermediate

Novice

How well do the following statements describe your experience with Microsoft products?

Strongly Agree Agree Neutral Disagree

Strongly Disagree

I have had a positive experience with Microsoft and its products.

I can't wait to try the newest technologies

What are your favorite online activities?

Frequently (﴾Several times a week)﴿

Occasionally (﴾3-5 times a

month)﴿

Rarely (﴾Less

than 3 times a month)﴿

I participate in online communities

I participate in forum discussions

I blog

I use Social Networks (﴾Facebook, Twitter, LinkedIn)﴿

I tag content and use an RSS reader

Why do you want to be a part of the Clubhouse community? Please indicate how well the following statements apply to you.

Strongly Agree Agree Neutral Disagree

Strongly Disagree

I want to demonstrate my own expertise

I like to share stories and my perspective with my peers

I enjoy being in the know, getting the inside scoop on my favorite brands and products

I like to test and play with the newest products and gadgets before the masses

Helps my reputation, as my peers look to me for best-in-class product recommendations

I would like to shape the future of the products that are important to me

I like receiving kudos from my peers

Allows me to increase my network of people with similar interests

Opens the door for opportunities to network offline

Cancel Submit

http://clubhouse.microsoft.com/Join

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