Here are all of the posts tagged ‘Starbucks’.

Social Media Does Increase Revenues

by Niki Gomez in News on 27 July 2009 at 17:58

So, here’s the big one, does spending on social media really pay back? A fresh MBA graduate from MIT, Niki Gomez, passing through London and We Are Social on her way to Mumbai, gives her views.

At last, a study quantifies what many of us felt must be true, that social media does translate into increased sales. As Violette mentioned last week, a study by Wetpaint and Charlene Li’s Altimeter Group shows an extremely strong correlation between engaging in different social media and earning higher revenues. The study looks at the engagement of top 100 brands from the 2008 BusinessWeek/Interbrand Best Global Brands report and ranks them from 1 to 127, based on how they use social media channels. It finds that the top brands with their rankings in brackets are:

  1. Starbucks (127)
  2. Dell (123)
  3. eBay (115)
  4. Google (105)
  5. Microsoft (103)
  6. Thomson Reuters (101)
  7. Nike (100)
  8. Amazon (88)
  9. SAP (86)
  10. Tie – Yahoo!/Intel (85)

The most engaged brands experienced revenue growth in 2008 of 18% whilst the least engaged brands experienced losses of negative 6% over the same period.

Also interesting is that only arguably half of these are internet companies. The study categorizes the brands, a la Malcolm Gladwell, into mavens, those heavily engaging in 7 or more channels, such as Starbucks and Dell; butterflies, such as American Express and Hyundai who engage with seven channels but with less engagement; selectives who engage in six or less but do some on a deep level such as H&M and Philips; wallflowers like BP and McDonalds who engage with six or less but with a light touch. My question was whether social media pays off because of lower marketing spend, as there is a shift from spending on more traditional channels. However it seems, revenues, actual sales are up on previous years, even boom times!

Their findings conclude that it is not how many social media channels you use, but how deep that engagement is: so being social pays, but it’s the quality rather than quantity of these conversations that seems to triumph yet again. So, please think before you tweet… a good piece of advice for brands and individuals alike.

tagged: , , , , , , , , , , , , , , , , , , , , , , , , , ,

Brands and Twitter

by Robin Grant in News on 24 February 2009 at 22:30

Campaign

So after being on the front page on Marketing the week before last, this week we’ve hit the pages of Campaign, with our inclusion in a feature article about, you guessed it, Twitter:

Three years into its existence, the recent media frenzy around celebrity Twitterers, including Stephen Fry and Jonathan Ross, and Barack Obama’s successful use of the medium in the run-up to the US election, has seen the popularity of the “microblogging” site increase 27-fold in 12 months.

Advertisers could learn a lot from celebrity Twitterers using the site to shape their personal branding, creating a close, one-on-one relationship with their fans without constantly filtering their thoughts through a PR sieve.

Robin Grant, the managing director of the social media agency We Are Social, which advises Fry on his use of Twitter, explains: “The advice we gave to Stephen centred on being himself and having genuine conversations with people. It’s the same for brands. It’s about being human, showing your real personality and allowing people to connect with you on an emotional level.”

The article then gets quite bizarre, with Flo Heiss, the creative partner at Dare giving this advice about who should sit behind a brand’s account:

It could be a real person, such as a receptionist, or character made up by yourself

How about an imaginary friend who’s a receptionist, Flo? On to David Bain, an ‘internet marketing consultant’:

it’s cleverer when you don’t anthropomorphise it. What if an inanimate object was to Tweet, for example?

Why is it cleverer David? And what would it say? Amelia Torode, managing partner at VCCP:

It has to be a friendly, chatty brand. A brand such as Coca-Cola would be too large in its entirety. You need to work less at a higher-brand level and go down to the actual campaigns or smaller brands under the umbrella in order to start up the conversation.

Not quite as unhinged as Flo and David admittedly, but I’d point to the examples of brands like Burger King, Southwest Airlines, Whole Foods, Starbucks, JetBlue and even VCCP’s client O2, who are having meaningful and useful conversations at the higher-brand level. As usual, our friend Faris Yakob talks sense:

Previously we had a model of buying attention from media companies. Now we’ve got direct relationships so we have to earn that attention – we have to earn it by being entertaining, useful and also nice.

To be honest, there is no ‘right approach’, but there are some general principles that apply (as expressed by myself and Faris above) and then there is the hard won experience at the coalface, learning what works and what doesn’t, that brands doing it themselves (and the agencies like ourselves helping them) have acquired. Most importantly your approach should be built around, yes, you guessed it again, the business objectives you’re trying to achieve.

This diagram from Fallon’s Aki Spicer of six different potential participation strategies brands could use is a useful thought starter (each of which of course might be used in combination or not at all), but even the approaches I deliberately ridiculed above could be valid in the right circumstances. Fictional characters can work really well as part of a campaign as VCCP’s own Compare the Meerkat work shows, and I’m sure at least one of Zappos’ receptionists is on Twitter. Even inanimate objects might have their place – in fact I’ve been trying to persuade Kew Gardens to get their plant life on Twitter for a while now.

But deciding on a strategy is only the first and easiest step. The hard work is the day after day of micro-interactions with real people, and striking the right balance between the opportunities and risks presented by having a real person as the voice of the brand, which I touched upon in the hotly debated post on learning to speak human. David Armano brilliantly investigates this dynamic in The Age of Brandividualism and his recent follow-up, Battle of the Brands (both of which are required reading here at We Are Social towers):

For each brand on Twitter, there’s an individual (or individuals) behind that effort. It’s both business and personal. The two have become one. The tactic comes from a fundamental truth when it comes to the social spaces on the Web. People want to talk to other people. They want transparency. They want to know who they are talking to.

The potential reward of course, is the ability to spread surprise and delight, turn negative word of mouth into positive and to really engage people with your brand at an emotional level. There is no greater prize…

tagged: , , , , , , , , , , , , , , , , , , , , , , , , , ,