Starbucks Social Media Sucess

IMG_1350It is with sadness in my heart that I write my last post (for a while) on enterprise 2.0.  From next post, I will be writing about other topics such as travel, fashion, politics just to change things up a bit. We have been talking about social media technology and how it adds value to organisational business functions.

With that information out of the way, today we will be looking at social media Return On Investment(ROI) calculation i.e.looking at how these organisations actually measure the benefits of social media. roiROI is the measure of the ratio of money gained or lost on an investment to the amount of money invested and is usually expressed in percentage. My initial reaction the first time I heard about social media ROI was, the old and traditional way of calculating ROI will definitely not be applicable to social media. But, Steve Schmidt said that, ” measuring social media ROI is possible so long as the efforts are focused on building network of engaged customers, meaning that non-monetary goals achieved by the organisation can be translated into money and calculated. Some of these goal are;

  • Increase brand awareness
  • Increase leads and sales
  • Improve online reputation
  • Retain clients

But the non-monetary goals above is useless and wouldn’t make any difference to the organisation if they don’t know how to turn them into paying customers in order to be able to calculate the Return on Investment (ROI). To do this, they have to tie the results from their social media use to actual monetary business value. In the example given by Priit Kallas, the organisation may have 1,000 Facebook fans and get 100 visitors per month from their Facebook fan page. 25 of those visitors make a purchase that gives 500 dollars of profit. So if the quality of fans is constant, each additional fan will generate 50 cents of profit per month. They could use up to 49 cents per month acquiring more fans through advertising or other activities and still have a positive ROI.

static-starbucks-final-withstarI will be looking at Starbucks’s social media ROI calculation. Starbucks is a good example of an organisation that have invested a lot of money in so many social media technologies. A few posts ago, I talked about how Starbucks launched “my Starbucks” in 2008,  a forum for consumers to make suggestions, ask questions and, in some cases, vent their frustrations. The founder of Starbucks, Howard Schultz did this to turn the dying business around. The website now has over 190,000 registered users with over 150,000 ideas submitted and over 900 of these ideas implemented.

As of December 2012, Starbucks serves 60 million people per week in over 55 million countries generates a total revenue of 13.3 billion dollars, over 22 million Facebook fans, 1.5 million twitter followers. With the launch of their loyalty card and mobile payment app, Adam Brotman Starbucks’s digital officer said that they now have 51 million monthly visits across it’s mobile platform, 25% of store transactions are prepaid with 2.1 million mobile payment transactions done per week and also the amount of dollars loaded on customers Starbucks cards increased by 20%. Brotman said that as for their Return on investment, the combination of their web, mobile, and social efforts gives them “a lower cost of marketing per customer“.

Though they (Starbucks) did not exactly say what their return on investment was or how much was invested developing and managing these technologies, it is evident (from 2012 annual reports) that their net revenue increased from 10.4 billion dollars (in 2008) to 13.3 billion dollars (in 2012).


Social Media Monitoring

qld artAll this time we have been talking about how different organisations from different industries and sectors use social media technologies. This week it is all about how to monitor the use of social media in organisation. My first tool of choice, social mention is a new technology, one of many social media monitoring tool used for social listening or to monitor the social presence and reputation of someone or an organisation. It  is a search and analysis platform that aggregates user generated content.

I chose to use social mention  because it covers over 100 social media such as Twitter, Facebook, YouTube, etc. which are used by the organisation that I am going to monitor and analyse. The second tool I chose to use is Howsociable which measures organisation’s impact on  the social web.

Queensland Art Gallery/Gallery  of Modern Art (QAGOMA)

QAGOMA connects people and art through a dynamic program of Australian and international exhibitions that showcase works from a diverse range of historical and contemporary artists. It shows engaging and interactive exhibitions for visitors of all ages. For an organisation like Queensland Art Gallery, one would expect that they would have a strong social media presence. Well, we shall see. QAGOmA make use of social media technology such as;






The two images show the results from monitoring Queensland Art Gallery social media presence, using socialmention and howsociable, respectively.

Socialmention has different features and components which are used to determine the impact of an organisation in the social web.

  • Strength shows the likelihood that the brand is being discussed on social media. Queensland Art Gallery had a 5% likelihood.
  • Sentiments shows the ratio of positive to negative mentions. Queensland Art Gallery had a ratio of 5:1
  • Passion shows the likelihood that individuals are going to be talking about the brand and will continue to do so. Queensland Art Gallery had a 48% chance of that happening.
  • Reach shows the measure for the range of influence that the organisation has on users of social media, i.e. how many of people reference the organisation. Queensland Art Gallery had a 19% mark on this.

From the image above, it shows that  on socialmention, Queensland Art Gallery is mostly mentioned in YouTube, wiki , and Flickr.  And on howsociable, they barely had any mention on any of the social medial tools.


Monitoring this organisation, it is necessary to point out some of the limitations that could have affected the outcome of the results’

  • First, socialmention is a relatively new monitoring tool and as such in my opinion, is not necessarily accurate as I couldn’t find any mentions of Queensland Art Gallery which was a little weird as I know for a fact that they have a twitter account and also because I saw twitter mentions for other brands which showed that socialmention collected feeds from Twitter. But then again, Queensland Art Gallery tweets are protected and only confirmed followers are able to see their tweets.
  • Also, with the howsociable monitoring tool, I used the free version which had limited social media monitoring of which most of it are not used by Queensland Art Gallery ( as far as I know).

From these results and further search online, I think that Queensland Art Gallery need to do more to establish a presence on the social web.

Social media: Not Just a Marketing Channel

incub3-orgSocial media sites allow for people to communicate and share mutual knowledge and information in a virtual community without having to worry about the geographical and political boundaries. Unlike regular websites which are used by organisations to communicate information to customers, social networking sites are more of engaging and interacting with the customers/stakeholders rather than giving information.

According to Nielsen, internet users continue to spend more time with social media sites than any other type of sites. In today’s post I am going to be looking at how social media sites participation is used for more than just marketing.

Organisations and individuals have embraced social networking tools with the goal of making for better and more value. Organisations use social media tools such as Facebook, Twitter etc. to connect with their customers and respond to their product/services reviews. Responding to their customer feedback via social networks increases the organisations reputation as it shows that they care about their customers’ input. They can also use social network sites as a form of customer service medium, where there is a dedicated role within the organisation responsible for attending to customer inquires and complaints via the sites. It is true that organisations have developed a marketing strategies using social technology. Starbucks is an example of an organisation that uses social media as a medium for promoting sales and adding more value to their customers.

Personal use

This is probably the most common use of social media sites and perhaps the main reason why they were started in the 90s. The majority of people using social networking sites such as Facebook, use it purely for fun, personal use and staying in touch with friends far and near.Ian Collins in his blog mentioned that “a wall post can work when a phone call would be too much, such as simply commenting to somebody that they should listen to a song or making an amusing remark”. Social networking sites eliminate the awkward silent moments that occur during normal phone calls and allows people communicate with people they normally wouldn’t talk to.


EducationWith the explosion of social technology in web 2.0, it has become more important for institutions to engage students in a social media form of learning. Universities now use social media contents such as blogs and YouTube videos to enrich their websites and attract potential students. Personal Learning Network(PLN) is a form of learning through social networking sites, which many students and education professionals have adopted. With social media, Universities make education available online which enables people from different countries and continents to acquire education from overseas (though there is still a strong challenge when it comes to language barrier). Robert Hernandez, in this YouTube video said that education never stops and that people learn everyday, and for this reason alone, the stipulated time (once a week) for in-class learning is never enough for students and teachers to share their knowledge. therefore social media tools such as Twitter, Facebook and YouTube are really filling in. He also mentioned that students, when introduced to social media as a form of learning, don’t immediately take to it as to some of them, social media is identified as a social tool which are only used for “fun” stuff, but they then understand after they start using it, how powerful a tool it is when it comes to their learning outcomes. The YouTube video says quite a lot about the future of education using social media tools.

Job Recruitment

overal-recruiting-statisticsSocial media platforms are becoming popular among job recruiters and job seekers. Platforms like LinkedIn and Twitter are the most popular channels that employers use to match skills of a job seeker to their job requirements. Today, it is very important to clean up your digital identity and make meaningful contribution to the online community as this can make or break your personal brand.

In a survey conducted by Robert Half in Brazil, 44% of 2,500 recruiters said that bad social media image alone were enough to disqualify candidates during their employee selection process. 46% said that they  make use of LinkedIn to verify the accuracy of references on candidates’ resume, and 43% use LinkedIn on only the candidates that they have interviewed.


Thank you for taking time out to read post and I hope that these few pointer were enough to argue that Social Networking Sites are more than just a marketing channel. Until my next post, Goodbye, Adeu, Addio, Au revoir, Adios




BMF & Blogging

blogging-platformWeek 8 just crept up without me realizing it. Just wish I could share the kind of weekend I am having with you guys (hint: st….ful). So, these terms, “social media”, “social technology” has been buzzing for the past weeks on this blog. First it was their benefits, then it was their value levers, and then the risks, last week I talked about how social media is leveraged in non-profit organisations (Amnesty International). Again today (at the risk of sounding nostalgic), I will be reflecting on how social media technology (blog) is used in an advertising agency. The refreshing twist this week is that I will not necessarily be talking about blogs as a social media tool but, will be concentrating more on its affordances  in the organisation such as;

  •  Participation
  • Collective effort
  • Transparency
  • Independence
  • Persistence
  • Emergence
  • Empowerment


Advertising agencies like all professional services firm, are very social in nature and again, referencing the social media analyst report, MGI, most of these agencies encourage effective collaboration and the building distinct organisational culture. For the purpose of this post, I will be looking at one of Australia’s top advertising agencies, BMF. BMF is an advertising agency, direct marketer, promotional agency, media company, and digital shop all rolled in one.  Founded in 1996 and based in Pyrmont, Australia, they do advertising campaign work for a range of organisations such as Amnesty International, ALDI, Weight watchers etc. BMF make use of different social media tools (Blog, YouTube, Twitter etc.) to enhance their business functions and add value to their clients but I will be focusing on how they use blogs within their organisation as well as externally and the benefits and risks associated to this .

BMF homepageCooperate Blogs are professional multi-functional medium which staffs within an organisation use to communicate with customers, publish and share their knowledge with each other as well as build their digital brand online.Blogs can be both synchronous & asynchronous, both named & anonymous, as well as persistent in nature and can play a very important role in driving traffic on any organisation such as BMF website. As most coperate blogs, BMF cooperate blog which they call “thinking stuff, launched in 2009 for the purpose of ensuring that employees are kept-to-date on the work thatis being done in the organisation, is seen to be named as every staff that uses it Must add their name, job title, and a picture to share information about;

  • new executives
  • awards (both theirs and any of their client’s)
  • staff achievement
  • New product launches
  • employee experiences


Looking for creativity, innovation, and something extraordinary, the agency also used their blog to collate entries made by applicants for the competition they (in collaboration with Australian Post) created in order to recruit creative graduates from the Advertising Federation of Australia (AFA), rather than relying on the traditional interview process.  They were able to achieve 106 percent response rate as some of the applicants posted more than once and their blog had a total of 17,749 hits.

How BMF benefits from blogging

  • As blogs are easier to update than a traditional website, it provides a voice for the organisation as a way of educating the visitors to their website.
  • It disseminates information within and external to the organisation faster than a weekly/monthly newsletter update.
  • Blogs allows for criticism and review of their products & services.
  • Potential employees are blogging too so, they also help them provide information about the organisation culture for future employees.

Potential Risks

  • Since BMF staff also use their blogging space to talk about new products launches and experiences, there is a risk that company’s trade secrets might be disclosed.
  • Discussion of clients and calling them by name might also be a great risk .

Amnesty International Reaches Out

amnesty_prisonerA few weeks ago I discussed some of the value levers organisations use to add value to their various business functions. This week I will continue with these levers but will be focusing on a particular sector and a particular business function. The social sector is made up of groups, foundations, cultural institution, etc. According to McKinsey, these various organisations are social by nature and depend on social technology to enlist volunteers, raise funds and source for continued support.

Amnesty International (AI) is a non-governmental organisation  that I happen to volunteer for. Founded in 1961, it is a worldwide movement of people campaigning to protect the human rights. Their main objective is to create a world where every person enjoys all the rights stated in the Universal Declaration of Human Rights and other human rights standards.  In 2011, Amnesty International had provided an opportunity for significant human rights change.

For a non-governmental organisation such as Amnesty who is constantly under pressure to maximize funds, the use of social media to rapidly disseminate information across the global network is beneficial as it is of very low cost. To effectively discuss the benefits of value levers to Amnesty International business functions I will be using one of the functional areas and its associated value levers as discussed in McKinsey GIobal Institute, MGI analysis report.

Executing Mission (Education & Engaging supporters)

education_1Amnesty International (New Zealand branch) released a Facebook app called Trial by Timeline to help educate and make the public aware of their work and the existing in balance in human rights around the world, by letting them ( in a more creative way, through the app) experience first hand what it might look like to live as human beings without the basic human rights. The app does this by analyzing the user’s Facebook profile and shows them what punishments some of their comments and/or behaviors could cost them in another country, assuming there was no freedom of  expression. Amnesty International uses this app to further spread their message regarding freedom disparities across the globe.

Amnesty International (UK) in 2009, used social media to engage their supporters by asking them to drop a coordinated social media bomb used any social technology tool such as Twitter, Facebook, etc. at exactly 1:10. This was to get their supporters to raise awareness about the violence against women in the UK and the message read “each year, 1 in 10 women in Britain experienced rape or other violence in the UK“. As of June 2013 and as part of an ongoing effort to engage the Chinese speaking human activists and supporter all over the world, AI launched  a Chinese speaking websitethat will provide resources and information in the form of blog entries and articles to the Chinese whose global influence are constantly growing.

Hopefully, it his post will go a mile to convince you to get involved with Amnesty international and contribute to their cause. Don’t forget to visit my must see places page on this blog to share your opinions, share and recommend places that you have been or would like to visit and why. Thank you, until next time, Goodbye, Addios, Adeu, Au revior.