How Social Media and Word of Mouth Drive Consumer Conversations

#totalsocial@kellerfay @engagementlabs

Ed Keller, CEO Maggie Fosdick, VP

September 13, 2016

“People influence people. Nothing influences people more than a recommendation from a trusted friend. A trusted referral is the Holy Grail of Advertising”

– Mark Zuckerberg, Facebook CEO

Daily WOM impressions2.1

billion

Results of 2014 market mix modeling project by Analytic Partners for the Word of Mouth Marketing Association. Sponsors included: AT&T, Discovery, Intuit, Pepsico, Weight Watchers.

Conversations Drive ROI!

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The range is 5% - 25%!

Offline Conversation Drives 2X Sales Impact

Results of 2014 market mix modeling project by Analytic Partners for the Word of Mouth Marketing Association. Sponsors included: AT&T, Discovery, Intuit, Pepsico, Weight Watchers.

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• Many marketers monitor the visible conversation that’s available in public social media

• But the offline conversation lurking under the surface is bigger -- and often very different!

• To maximize ROI you need to look at both in tandem– Looking at one only can lead you to

incorrect decisions.

The Visible Conversation Is Not Enough

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Today’s Agenda

URL Meets IRL: Changing Dynamics of Consumer Conversation

Introducing totalsocial

Drilling Deeper Into Brand Dynamics With totalsocial

totalsocial Improves ROI

URL Meets IRL: Changing Dynamics of Consumer Conversation

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2014 W/E Jan 26

2014 W/E Mar 02

2014 W/E Apr 06

2014 W/E May 11

2014 W/E Jun 15

2014 W/E Jul 20

2014 W/E Aug 24

2014 W/E Sep 28

2014 W/E Nov 02

2014 W/E Dec 07

2015 W/E Jan 11

2015 W/E Feb 15

2015 W/E Mar 22

2015 W/E Apr 26

2015 W/E May 31

2015 W/E Jul 05

2015 W/E Aug 09

2015 W/E Sep 13

2015 W/E Oct 18

2015 W/E Nov 22

2015 W/E Dec 27

2016 W/E Jan 31

2016 W/E Mar 06

2016 W/E Apr 10 -

10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000

Weekly WOM Impressions for Average Top 50 BrandOffline Online

For Most Brands, Offline WOM Far Outweighs Social Volume

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Face to Face77%

On the Phone16%

By Email3%

IM/Text Message3%

Social Media1% Other

2%

© 2016 Keller Fay Group, Source: TalkTrack®, Base: People 13-69

2008 2015

Face to Face72%

On the Phone13%

By Email3%

IM/Text Message

6%

Social Media3% Other

2%

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…Even as Online Conversation Has Grown


% of Conversations Referencing Digital Content (Net)Monthly

Jan-08

Mar-08

May-08

Jul-08Oct-

08Dec-

08Feb

-09

May-09

Jul-09Sep

-09Dec-

09Feb

-10

Apr-10Jun-10

Sep-10

Nov-10Jan

-11

Apr-11Jun-11

Aug-11

Nov-11Jan

-12

Mar-12

May-12

Aug-12Oct-

12Dec-

12

Mar-13

May-13

Jul-13Oct-

13Dec-

13Feb

-14

Apr-14Jul-1

4Sep

-14

Nov-14Feb

-15

Apr-15Jun-15

0%

5%

10%

15%

20%

25%

30%

11%

25%

Even Bigger Trend: Talking Offline About What People See Online

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% of Conversations Referencing Digital Channels (Detail)

Mobile Ad Or App

Social Media

Consumer Reviews

Other Website

Internet Ad

Brand Website

n/a

1.3%

1.6%

2.1%

3.5%

4.4%

2008 2015

Mobile Ad Or App

Consumer Reviews

Other Website

Internet Ad

Social Media

Brand Website

2.4%

4.0%

4.6%

5.2%

5.4%

6.3%

All Digital Channels Rising, Especially Social

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It’s Time to Rethink Social Influence

• People move fluidly between offline and online

• To maximize marketing ROI, brands should too

Brand A

Brand B

Brand C

Brand D

Brand E

Online totalsocial

Brand A

Brand B

Brand C

Brand D

Brand E

Offline totalsocial

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• Implication: Find better ways to engage or incentivize online influencers – potential to glean competitive insights from Brand D and E who lead the competitive set on Online Influence

Financial Brand “A” Has an Exceptionally High Offline Influence Score, But a Very Low Online Influence Score

16SOURCE: TOTALSOCIAL™ MAY 2015-APRIL 2016PRELIMINARY DATA

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• Online scores are stronger than offline for Brand B, but trending closer together over time

• Largest discrepancy between online and offline Influence scores

- Opportunity: Incentivize offline Influencers to talk more to close the gap with online and boost overall TotalSocial score

- Offline influence/advocacy tends to be driven more by emotional sharing than social currency

Conversely, QSR Brand “B” Successfully Activates Online Influencers, But Struggles Offline


totalsocial

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• Brand has been successful in driving people to reference their media and marketing during offline conversations, but it still struggles to create shareable content online

• Suggests the need to develop a new social content strategy

This Retailer Has Strong Volume & Influence Scores Online, But Brand Sharing Falls Well Below Offline


Offline WoM

totalsocialTM. The only way to measure offline + online conversation in a single scoring system

Online Social

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Fueled by the world’s only 10-year database of offline WOM for over 500 leading brands

SOURCE: TOTALSOCIAL™ MAY 2015-APRIL 2016

Online & Offline Performance Generally DifferScores for 500 leading US brands

OFFLINE SCORE

ON

LIN

E SC

ORE

Online is rarely an accurate representation of OFFline

Online and OFFline performance differ dramatically for most brands

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Automotive

Media & Entertainment

Financial Services Drinks (Alcoholic & Non-Alcoholic)

The Home

Beauty & Personal Care

Children’s Products

Travel Services

Health & Healthcare

Technology

Shopping, Retail & Fashion

Household Products

21

Categories Covered (US)

Sports

Food & Dining

Telecom

21

SOURCE: TOTALSOCIAL™ MAY 2015-APRIL 2016

totalsocial Performance By Sector

Offline Score

Onl

ine

scor

e

Conversation CommandersSocial Sirens

Whisper Brands WOM Mavens

Beauty

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Drilling Deeper into Brand Dynamics with totalsocial

Case Study:

2015 Jun2015 Jul

2015 Aug2015 Sep

2015 Oct2015 Nov

2015 Dec2016 Jan

2016 Feb2016 Mar

2016 Apr

5047 45

49

41

3437 38 39

35 35

TotalSocial

Scores Track Business Impact

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VW is told to recall 482,000 cars in the US (Sept. 2015)

SOURCE: TOTALSOCIAL™ JUNE 2015-APRIL 2016PRELIMINARY DATA

2015 Jun2015 Jul

2015 Aug2015 Sep

2015 Oct2015 Nov

2015 Dec2016 Jan

2016 Feb2016 Mar

2016 Apr

20

30

40

50

60

70

Offline Online

2015 Jun2015 Jul

2015 Aug2015 Sep

2015 Oct2015 Nov

2015 Dec2016 Jan

2016 Feb2016 Mar

2016 Apr

20

30

40

50

60

70

Online

totalsocial Helps Explain Trends…

SOURCE: TOTALSOCIAL™ JUNE 2015-APRIL 2016PRELIMINARY DATA

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VW is told to recall 482,000 cars in the US (Sept. 2015)

2015 Jun2015 Jul

2015 Aug2015 Sep

2015 Oct2015 Nov

2015 Dec2016 Jan

2016 Feb2016 Mar

2016 Apr

0102030405060708090

100

. . .Isolating Causes of Decline

TotalSocial Offline Metrics

27SOURCE: TOTALSOCIAL™ JUNE 2015-APRIL 2016PRELIMINARY DATA

Case Study:

totalsocial Reveals the Levers to Improve Performance

Offline Score

Onl

ine

Scor

e

1. Brand A

2. Brand B

3. .

4. Brand C

5. Brand D

6. Brand E

7. Brand F

8. Brand G

9. Brand H

10. Brand I

SOURCE: TOTALSOCIAL™ MAY 2015-APRIL 2016PRELIMINARY DATA

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Offline Score

Onl

ine

Scor

e VOLUME

SENTIMENT

BRAND SHARING

INFLUENCE 0

40

80

Offline

Online

Two opportunities for American Eagle: Engage better with online influencers and make own social

media more “shareable”

Competitive IntelligenceExplore why Charlotte Russe scores high with

online influencers? Why does Nordstrom do

so well on brand sharing?

SOURCE: TOTALSOCIAL™ MAY 2015-APRIL 2016PRELIMINARY DATA

Moving a WOM Maven Brand to Conversation Commander

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Case Study: Cable Network Brands

Cable Network Case Study

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TotalSocial Score

59

Brand E Brand B

Source: TOTALSOCIAL™ June 2016

TotalSocial Score

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Brand E has a higher online score than offline, whereas competitor Brand B is opposite

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VOLUME SENTIMENT BRAND SHARING INFLUENCE

Offline Online Offline Online Offline Online Offline Online

Brand A 64 58 100 51 40 83 71 65 43

BRAND B 59 41 47 83 69 79 95 47 12

Brand C 54 44 63 51 61 81 49 64 21

Brand D 53 12 55 94 45 79 21 80 37

BRAND E 49 28 66 34 39 88 49 34 57

Brand F 38 12 50 60 39 53 31 35 28

Brand G 38 12 34 42 66 86 31 13 17

Source: TOTALSOCIAL™ June 2016

41

66

83 69

88

95 47

57

59

BRAND E is top of the category with online influencers, but lags offline

BRAND E Has Better Online Volume and Influence Scores, But Underperforms Brand B on Most Offline Metrics

49

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But, people are less apt to say good things.

To Talk To

To Engage

Guiding BRAND E on Creating a More “Talkable” StoryBRAND E is a category leader in online Volume and Influence, but falls well behind competitors for these same metrics offline; in order to improve overall offline performance, BRAND E needs to learn to recreate online success in the real world• Increasing offline Volume

– BRAND E lags BRAND B in offline talk among men, despite an audience advantage on this demo– Consider male-targeted promos, with a focus on placements where men are likely to be co-viewing

with another adult, which drives more than 3x the amount of offline conversation of solo ad exposure

• Driving conversation among offline Influencers– Digital media is an increasingly important part of OFFlineconversations – in fact, 1 in 4 offline

conversations today contains a reference to digital media• Drill down to understand the most engaging types of content and most impactful digital channels for driving offline talk

• Target offline influencers with digital marketing via Keller Fay’s programmatic WOM segments

– Event marketing is an impactful tactic in improving offline influence scores, BRAND E should consider

totalsocial Improves ROI

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The rock is your marketing plan.

The splash is the amount of “direct” impact.

The waves reverberate your message.

TotalSocial measures the height, frequency, quality, and duration of the waves to quantify the ”indirect” impact.

Direct + Indirect

= Marketing ROI

Social Influence Drives ROI

ScorecardGet TotalSocial scoring + data access online

DiagnosticScorecard PLUS more data depth PLUS custom analysis of opportunities and threats

PredictDiagnosticsPLUS access to “what if” simulators to estimate the impact of changes in marketing

Available now.

Available now.

Available Q1’17

totalsocial Product Offerings

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Closing Thoughts• Social and WOM are increasingly critical paths to

improved marketing ROI

• TotalSocial is the only way to see the whole picture and avoid mistakes or wasting time on the wrong strategy

• Concise, comparable metrics help guide performance improvement

• Knowing precisely how to change your actions helps efficiently target your resources to the real underlying issues and opportunities

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Thank You

[email protected]@kellerfay.com#totalsocial@kellerfay @engagementlabs

How Social Media and Word of Mouth Drive Consumer Conversations

Business

Transcript of How Social Media and Word of Mouth Drive Consumer Conversations