Going social: towards customer media 2.0

prof. dr. Peter KerkhofUniversity of Amsterdam /VU University Amsterdam, the NetherlandsPomp FORUMMarch 2011, Ljubljana, Slovenia

About meProfessor Customer MediaDept. Communication ScienceUniversity of AmsterdamAssociate Professor & chair Dept. Communication ScienceVU University Amsterdam

twitter.com/PeterKerkhofwww.peterkerkhof.infonl.linkedin.com/in/pkerkhofwww.slideshare.net/spletsj

Two worlds

“Did your relationship with UPC change because of social media? (% positive)”

47%

Average reading time sponsored magazines (minutes)

25

Ratio positive-negative brand-related tweets

5 : 3

“I like to watch ads on TV”

6%

Intriguing times

Rise of social media Growth & professionalization of customer media Ad skepticism Paid media vs. owned & earned media: from 80-20 to

20-80?

Growth of social media

2003: no Facebook, no Twitter, no Linkedin

2010: Hyves (NL) 10 million members (out of 16 m. people) Facebook: 500 million members (200 million mobile

users) Linkedin: 90 million members , 1 new member each

second Twitter: 175 million members, 1000 tweets per second

(100 million per day)

Not just for kids….

Why participate in social media?

19% of all tweets mentions a brand, product or service

20% of all brand related tweets evaluates the brand

55% positive, 33% negative

And these tweets affect other consumers brand/product evaluations & buying decisions

The value of a customer

Foto: Andrew Magill, Flickr

Customer engagement behaviors

.... customer’s behavioral manifestations that have a brand or firm focus,

beyond purchase, resulting from motivational drivers

Verhoef et al. 2010

Customer engagement value Customer engagement value =

Customer Lifetime Value+

Customer Referral Value money+

Customer Influencer Value reputation+

Customer Knowledge Value informationKumar et al. (JSR, 2010)

Customer engagement behaviors

Customer engagement behaviors

Customer engagement behaviors

Customer engagement behaviors

Customer engagement behaviors

Social media characteristics

Fast Interactive Public Consumers set the rules Lack of control

Brands Customers

Consumers………

Brands Customers

Consumers

Brands Customers

Consumers

Brands playing pinball

Brands

Brands playing pinball

Brands playing pinball

Brands playing pinball

Customer service Marketing PR & crisis communication Crowd sourcing

Product development Customer communities

Brands playing pinball Content: customer media

Texts & images

Interaction: social media Customer - company Customer – customer

Content: customer media

> 11.000 titles in the Netherlands High reach Long reading time Positive customer evaluations

Content: customer media

In control

Content: customer media

Source: APA /Millward Brown (2005)

Content: customer media

Educational effects: customer education predicts loyalty /trust

Relational effects: customer media commitment predicts brand commitment

Branding effects

Interaction: online customer care

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Interaction: online customer care

Perc

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Complaint only Complaint + answer Conversation

Interaction: crisiscommunication 2.0

Interaction: crisiscommunication 2.0

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Denial Apologies

Tone of voice matters. A lot.

What’s the difference?

Speed Interaction Quality of content Level of control Source of credibility

Journalists vs. social advertisers

What’s the same?

Produce your own content Absence of shameless self promotion Longterm orientation: aiming at commitment &

engagement Relevance: customer as the starting point

The connection

customer media in social media Consumers talking about customer media customer media talking along in social media

customer media become social media Coproduction of customer media content Aggregation of social media content

customer media and social media as part of a mix

Reaching everone, everywhere, always

Unilever’s Yunomi

The role of print Reaching the unmotivated Quality time Creating memorable impressions Trampoline for digital media Catalyst: media multiplier effecten

Thank you for your attention!