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 .

Enterprise 2.0 in Action

Another Day and Counting..Having a fun weekend?, I know it has to be better than the one I’m having at least. Before I get into the topic of the day, I would love to share a few things with you guys.First, I have set up My ” Must see places before I die” page just like I promised in my last post (Yeah!!), so feel free to have a read, provide feedback and share yours as well (only if you feel like it…no pressure) and maybe we have some places in common. Next, I will be sharing some of my interesting experiences at some of those places that I have gone to. Secondly, someone asked me a weird question earlier last week and I told her I would share it with you guys and then get back to her.The question was “How old is TOO OLD to live on earth?”, crazy question! was my first reaction, , but then (at the risk of questioning or challenging the power that be) I thought that there might actually be a certain age that one would get to and it might just be too uncomfortable to actually do anything.

think   What do you think?

Glad we got that out of my head. To the serious stuff, Enterprise 2.0 in action (how organisations make use of social technologies to improve their business value). Mckinsey Global Institute, MGI defines social technology as ” the products and services that enable social interactions in a digital realm, and this allows people to connect and interact virtually; which also provide distributed rights to communicate, and add, modify or consume content”. In this blog post, I will be briefly discussing how one of the biggest coffee making chains, Starbucks and a car manufacture that has become a household name, Ford, uses social technology to improve their business value.

My Starbucks Idea

Coffee-Shop-starbucks-25055149-1280-1024  I am not one for coffee but, I recently found myself entering a Starbucks coffee shop in Manhattan NY one snowy evening. While waiting in line to place my order, I overheard two men talking about how one of them had pitched an idea to Starbucks through a medium they called “Mystarbucks idea“, I didn’t get to hear most of their conversation (not eavesdropping, I promise) before they left. I heard about it again in a lecture and that was when I decided to look it up to know how it worked.

In 2008, with the emergence of rival coffee stores, Starbucks was struggling with its expansion (over 18,000 stores) in about 60 countries, when its net income fell short by 28% to $108.7 million. So as part of their turnaround plan, the chairman and chief executive, Howard Schultz announced a strategy (My Starbucks Idea) in their annual stakeholders’ meeting, during which Chris Bruzzo of Starbucks first demonstrated the idea  which the content was to be generated by stakeholders’ ideas. My Starbucks Idea is a site that not only allows customers to share their creative ideas but, it also allows for the them to follow up and see whether their ideas have been adopted by the company and thus co-creating a product or service with Starbucks (intriguing, isn’t it?). The site features a daily question poll which allows the Starbucks to get some sort of census on the their products and services and also makes use of gamification in the form of a leader board to show the top ideas, votes and comments submitted by customers   .A month after the launch of My Starbucks idea, Starbucks launched another site called “Starbucks volunteer to volunteer” which is a community for collaboration and discussion. Such a success should be something most organisations should (if they aren’t doing so already) strive for. They also have a Facebook and Twitter account with over 25 million and 1.5 million followers respectively, which is dedicated mainly to engage customers and staff and to answer their questions.

Ford Fiesta Movement

ford_badge  Ford Motor company’s global digital and multimedia communications manager, Scott Monty in BU Today , Boston University’s media, said that the best thing that companies can do is play an active role in online communities ad shouldn’t be seen as an advertising platform. Monty led a team that developed the social media that was used in the context which was created by Ford called Ford Fiesta Movement and believes that the campaign has put the company on the social media map with 1.8 million Facebook and 206,000 Twitter followers. He also talked about the trust which was evident by consumers trusting one another to give honest testimonials. The contest was created to introduce the redesigned ford fiesta to young drivers by choosing 100 drivers to drive the ford fiesta for a year while documenting and uploading the video streams( from the camera that was attached to the car to record review from the drivers ) to twitter. BU media blog also said that Monty was ranked among the “Top 10 influencers in Social media and the best corporate Social Media lead on the planet” by Monty also spoke to BU students at a free and open event as he believed and said in an interview with BU Today that,”students should keep a broader awareness of sociological trends, think like a regular consumer , and to take that mentality and attach it to business strategies”.

That is all I have for you today, thanks for visiting my blog, will appreciate some feedback and don’t forget my Must see places before I die and share if you have visited some (if not all 🙂 ) of the places on there. Also, please I’d like to hear your thoughts on the How old is too old question I presented earlier in the post. Until the next blog! Good bye, Au revoir, Adios, Auf wiedersehen, Addio..

Me, Myself and Blogging

Hello everyone, welcome to my nightmare (Blogging or as I call it, thinking out loud). I say nightmare because before this blog I have always been very careful of the kind of things I put on the internet as most times whatever goes on there can come back to hunt you. Just recently, my husband came home and I noticed immediately that he wasn’t his chappy self so I asked him what was up, I almost choked on the fruit I was snacking on when he asked me why I was registered on an online dating site. It took a lot of hours, a back massage and his favorite meal to reassure him that I did not register on any dating site.

Now to the business of the day, even though this space is for a successful grade for enterprise 2.0, I believe that it is about time I created an online presence for myself and share my thoughts and experiences with other great minds out there. I believe that to make my blog or any blog a success , the blogger has to:

  • Create great posts that reflects good writing skills and excellent material by doing an extended research
  • Know their audience…while most people tend to blog about their passion, it might also be beneficial to keep up with the current trends i.e. what people are interested to hear about at a particular point in time
  • Try and relate to readers by adding some personal touches to their posts( humor)
  • Pictures, Pictures,Pictures(People(me for example) tend to be drawn to books and articles with visual aids…LOL)

To get people to read and comment on my blog I would have tried as much as possible to make sure my posts have the above mentioned characteristics . In addition I will try as much as possible to read, comment and follow other peoples blogs (if not for anything else, to keep learning form my colleagues and mentors) and also make proper use of the social media as a way of disseminating information about my blog posts.

Sometime ago while researching online about being a parent, I came across Miscellaneous Mum which I recently found that it was one of the finalists for the Australian Blogs competition 2013. I was excited to read the comments on one of the pages on the blog titled 1001 book challenge which contained a list of books the author, Karen Andrews’s would like to read before she dies. I guess the reason was that I had a similar list in my diary titled Must See Places before I die. Her blog has inspired me in more ways than one, especially sharing my list on this blog which I hope will encourage others to comment and share places they love to see and why or any other kind of bucket list they might have.

I look forward to setting up a page with my Must see Places. feel free to comment on this post and sending me a link to yours if your blog if you have one so I can return the favor.

This contents of this post are just my thoughts s feel free to comment on it. ( I am new at this, so please be nice to me)                                                                                                                                      Emotion-Icon-fanpop-447702_200_200