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    Socializethe Enterprise

    John Bell

    The Red Papers:

    Ogilvy &Mather

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    Socializethe Enterprise

    John Bell

    The Red Papers:

    Ogilvy &Mather

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    The Red Papers:

    Contents

    Introduction

    High octaneglobal growth oword o mouth

    Change withinthe enterprise

    Social mediastrategy now

    Key takeaways

    Reerences

    5

    10

    18

    42

    44

    46

    February 2010, No. 2

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    Socialize the Enterprise

    Time or a comprehensivesocial media strategy

    Ater a year o experimentation in social media, the CMO o a global FastMoving Consumer Goods (FMCG) company realized that, once again,his teams latest eort was not working. He was rustrated. This time, hethought, they had cracked it. From the outset, the team looked to existingagency partners and new social media gurus to help them tack the socialmedia programs to their product campaigns. The media companiesoered paid placements in social networks. The advertising creativesdesigned a clever Facebook application, and the public relations teamsuggested reaching out to some bloggers to spread word o mouth. The

    brand team elt they had the tactics to transorm their traditional marketingcampaign into a social media campaign. But, with no real way to measurethe impact o blog posts, Tweets or the limited use o the Facebookapplication, it just seemed like a lot o work to generate modest wordo mouth online. Where was the ROI in that? When the three-monthcampaign came to a close, the CMO was disappointed. He wantedsomething bigger, something that reminded him o mass media.

    The FMCGs social media experiments had let behind a trash heap oexpired initiatives, ignored sites and unattended accounts. All the work andall the money they had poured into social media had not produced muchto brag about. In retrospect, their eorts seemed tentative, unconnectedand perunctory. That, the CMO decided, just wouldnt do. Heading homeon the Friday evening ater his latest social buzz-kill, the CMO didntknow what to do next. Part o him wanted to junk the whole social mediaworld entirely. The results didnt justiy the eort and expense.

    Ater dinner that night, the CMO logged into Facebook, caught up with his

    riends and then started to head over to the Twitter eeds he was ollowing,just like he did every night. He paused, his nger hovering over themouse button, and realized that i social media was this much a part ohis lie, then he couldnt ignore the impact it had on his customers. More-over, he had read the data; he knew that consumers trust and habitswere shiting toward the social landscape. His younger colleagues onthe brand teams were unrelenting boosters o social media, and, to behonest, he was an awully big consumer o it too. Every time he opened

    Introduction

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    Socialize the Enterprise

    the trades, he read about how his competitors were knocking the covero the ball with social media. He needed some o those positive headlines.Then the CMO actored in his own boss. The CEO was no ool. He hadlasered in on social media as a big opportunity one they were not yetmaking the most o and the whole C-suite was buzzing about it. Nope.This was not something that could be abandoned.

    But they couldnt keep going the way they were. Sure, most o their socialmedia stabs seemed exciting when they launched, but as ar as he couldtell, they had not made the slightest business impact. Some o them, hethought rueully, were outright ailures. When they bombed, his brand

    teams just retreated into buying more media. As he reviewed the pastyear and a hal o rustration, the CMO realized that in many cases, heand his team had simply ported traditional marketing over to a socialplatorm. His marketing group was lled with smart people; he couldnthave been the only one to see these problems. Yet teams rom all over thevast enterprise were repeating the same mistakes. Obviously, there was nomechanism in place to accrue knowledge and then share best practicesthroughout the organization.

    I they were going to continue and they were they had to do betterthan just checking o the social media box on the corporate to-do list.Budget time wasnt ar o, and he knew hed see plenty o line items orsocial media spending. How, he wondered, could he wrap that up intoa budget he could stand behind? He did not have enough data to knowwhat social eorts were going to work, what they would cost and whatkind o revenue impact they could return. He needed a new approach away to adjust his organization to capitalize on social media while helpinghis brand managers bank some appreciable, measurable success, all without

    stomping on their entrepreneurial drive.

    While this tale is apocryphal, the arc o the story will sound amiliar to anybrand executive. Tactical experimentation in social media blows up orbrands, leading to a spiral o disappointing campaigns and unrequited love.

    Brand marketers eel like jilted dates at the high school dance, convincedthat social media doesnt work, that their brand is immune or, worse, thattheir customers just dont want to talk about them. Hundreds o brandsall across the globe have tested the waters o social media over the pastew years, lurching orward with disjointed social media eints thatoten end in ailure. Peter Kims Master List, an online wiki lled witha ew thousand examples o brands launching blogs, Twitter handles,communities and more, is a monument to the utility o most o thosedisjointed, tactical eorts.

    Social media is not just a new channel or a ew extra degrees in the 360

    approach to marketing and communications. Social media represents aundamental consumer behavioral shit requiring marketers to changehow they market, how they are organized and how they measure success.To succeed via social media and to achieve real business impact, brands andorganizations must adopt a comprehensive strategic approach to integratingthis new discipline.

    Were our well-intentioned CMO to have approached social media with astrategic eye, he would never have tried pinning it to the back o a traditionalcampaign. Instead, he and his brand team would have put social at theheart o the entire marketing and communications eort. Pundits havebeen evangelizing the power o social media or close to a decade.Consumers get it. The rate o marketplace adoption o social media andword o mouth around the globe is aster than anyone could have predicted.

    Companies, by contrast, have lagged behind their customers, but they arelearning that embracing this platorm is not optional. Whether you are aglobal FMCG, an automobile manuacturer, nancial services company

    or a BB technology leader, no one can aord to hesitate. At the sametime, tactical, unconnected experiments will not vault the brand orward.Integrating social media into the marketing and communications unctionsimplies a deep transormation not just o marketing but customer service,product development, and even the way the enterprise benchmarks success.

    Intro

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    This strategic approach begins with learning to generate authentic,positive word o mouth via social media. Follow up with a ocus on long-termgains rather than just short-term campaigns. Dening how to add scaleleads to integration across the other marketing disciplines while commonmeasurement models give the team the data to understand what is workingand what is not, turning every tactical experiment into a strategic moveorward.

    The main qualities o an enterprise-level social media strategy moredirect and open relationships with customers, aster marketplace responseand increased eciency around marketing, customer service and product

    development have proven themselves invaluable to early adopter brandslike Dell, Zappos, Ford, Starbucks and more. But the pace has quickened,and creating a social media brand strategy is a little like designing, buildingand driving a car simultaneously.

    Ultimately, what social media enablesis a new orm o word o mouth

    Intro

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    Both social media and the new, empowered consumer are here to stayregardless o whatever platorm is popular today. Social media behaviorsand platorms have enjoyed remarkable growth around the world, mostnotably in Brazil which has seen the astest rate o Twitter adoption.While Facebooks U.S. user base grows older rom twenty-six in 2008 tothirty-three in 2009 Twitters grows younger. Eighteen- to twenty-our-year-olds account or thirty-seven percent o its users, up rom nineteenpercent just a year ago. As it spreads rom the early adopters to a muchbroader base, social media behaviors and platorms are emerging in marketsaround the globe. This is a worldwide trend.

    Ultimately, what social media enables is a new orm o word o mouth.Whether I blog about my love or the new Ford Taurus, become a ano the Lance Armstrong Foundation on Facebook, Tweet a link to Amextickets or the Rolling Stones concert or pass a video o Nick Cave readingrom Bunny Munro to a riend, its all word o mouth.

    Word o mouth trumps most other orms o communication in its inuenceon purchase decisions and opinions. Three years ago, we began to seethe erosion o trust in traditional marketing in avor o a digitally enabledtype o word o mouth. This expanded orm went beyond amily andriends to a new group: strangers with expertise or strangers with experience.These are people who, like ourselves, express themselves onl