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 idea.com” 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).

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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;

Result

again

SocialMention

howsocio

HowSociable

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.

Limitations

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.

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

BMF

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

Recruitment

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 .

Your Customer Reflects Your Business

Shoes-of-Prey-270x180Hello again and welcome to my enterprise 2.0 blog, where I bring you the latest on social technology and the and how it influences organisations (large, medium or small) today. Last week, I showed you a glimpse of enterprise 2.0 in action using Starbucks and Ford as an example.Today’s post will be focused on how businesses can make use of social technology to add value to their business.  Whether we want to admit it or not, social technology has improved our connections and is responsible for some of the ideas that have come to be via brainstorming.

According to MGI  (pages 35-40), there is a large untapped potential for businesses to use social technology to add value in a way of improving communication, knowledge sharing, and collaboration. From their research in 2012, they identified 10 value applications of social technologies that organisations use to create value in their organisational functions. But I will be using Shoes of Prey as an example today, to focus briefly on four them as it applies to two segments of the organisation value chain.The two value chains I will be focusing on today are;

  • Product development
  • Operations and distribution

Shoes of Prey?  Shoes of Prey is an online retail store based in Sydney (where they recently opened their first shop) that lets you go on their website, register and design your very own shoes which will be hand-made and then delivered (free of charge) to you. They make different types of shoes for different types of feet (narrow, wide, odd,big feet etc). This medium business was founded by three friends in 2009;

  • one is from a law and advertising background and
  • the other two were former Google executives.

In Edelman Australia post, Shoes of prey co-founder, Jodie talks about how social media boosted their business from her lounge room to the international business it is today. She said that reaching out to YouTube wiz kid, Blair Fowler (who has over 1 million subscribes) gave her and her partners’ a stepping stone, as she had over 200 million viewers on her YouTube vlog. With over 30, 000 Facebook fans and over 7,000 followers on twitter, Jodie said that their strategy for success with social media was replying quickly and relevantly to posts on their pages and also mention Twitter as “a great proactive tool” that engages customers, taking you to them instead of waiting for them to come to you.

Product Development (co-creation and deriving customer insights)

barriers to product developmentAsking customers to design their own shoes using the shoe and sophisticated material templates found in the 3D design tool on their website, is what makes Shoes of Prey so unique to other shoe manufacturers and retailers, as you get to choose the shape, color and size of your shoes and get it produced (hand made, I might add) and shipped to you in any part of the world. The idea to customize your own shoe was born when Jodie, realized that she never seemed to find one shoe that had everything she wanted.

It always gives a good feeling looking at a gorgeous shoes and realizing two things;

  • It’s yours and
  • It’s your design!

Earlier this year, Shoes of Prey teamed up with Foxtel’s Fox8 channel to promote one of their international series Carrie’s Diary in honor of the lead actress’s obsession for shoes . As part of the promotion, Shoes of Prey set up a competition to Fox8 viewers via Facebook. The competition was for every contestant (including your truly) to log in via Facebook, sign up, design, submit and share a pair of shoes daily for 30 days for a chance to win one of your shoes at the end of the competition, they also encouraged contestants by announcing daily winners each day. Through this strategy, Shoes of Prey was able to get a statistics of the kind of shoes people liked and after the competition, used this data to email contestants (potential customers) with suggestions of shoes they might want to order from them especially during the holidays(brilliant,right?I still get suggestion emails).

Operation and Distribution (forecast and monitor, distribute business processes)

effective-salesTaking a feather from MGI, organisations that keep track and monitor their social media can use information derived, to improve their inventory and how the business functions. Shoes of Prey uses its Twitter and Facebook page to advertise their products and also collate customer feedback on their products by improving on the best ones and turning the bad ones into something positive. They also use twitter as a medium of employment.

In my opinion, to improve customer engagement, I believe that their website need a little more work and they might also consider inculcating some gamification  features,in form of reward such as discount vouchers, gift cards etc.,  in their website (most designs, best designs etc.) to draw more people to design and order for shoes.

Until next time, Goodbye, Adeu, Addios, Au revior.

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 Forbes.com. 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..