Chapter 5 Customer Engagement and Metrics

Learning Objectives 1.Describe the five levels of user engagement (5 Cs). 2.Describe the major engagement techniques in social commerce and implementation issues. 3.Express the role of trust in social commerce. 4.Provide examples of collaborative content creation by consumers. 5.Describe how a company can build, maintain, monitor, and repair its reputation in social media. 6.Identify several ways companies can improve their brand positions on search engine results pages. 7.Define performance metrics used to monitor, measure, and refine social commerce goals and tactics.

Opening Case: Häagen-Dazs Viral Video Creates a Buzz The Problem – In 2006, Häagen-Dazs (H-D) discovered that the world's honey bee populations were quickly disappearing – Colony Collapse Disorder (CCD): when honey bees mysteriously desert their hives and die – Häagen-Dazs estimated that 30 of the 73 flavors contain ingredients pollinated by honeybees

Opening Case: Häagen-Dazs Viral Video Creates a Buzz The Solution – Haagen-Dazs initiated its first "cause marketing" campaign for the brand – They partnered with leading research facilities to donate over $1 million to honey bee research – H-D then used traditional and social media to raise awareness and motivate support for the disappearing honey bee cause – There were television ads, documentaries, and a video produced for the Internet, entitled "Bee-Boy Dance Crew“ (osocio.org/message/haeagen_dazs_viral_vid_helps_hon ey_bees)osocio.org/message/haeagen_dazs_viral_vid_helps_hon ey_bees

Opening Case: Häagen-Dazs Viral Video Creates a Buzz Other Social Media Activities – Engagement and word-of-mouth (WOM) – The company is active in amplifying social presence via mobile campaigns on Facebook – For a social media campaign case study on how the company increases customer engagement

Opening Case: Häagen-Dazs Viral Video Creates a Buzz The Results – The ‘Bee-Boy Dance Crew’ video received over 2 million views – Many high visibility blogs covered the cause – There was a high level of user engagement with this campaign – Since 2008, Häagen-Dazs donated $620,000 to two universities and $1 million to University of California at Davis for honey bee research

Lessons Learned from this Case Dreyer's and its Häagen-Dazs brand connected with a cause that threatened the brand H-D placed the information and video on social media sites which the target would see, and that drove brand engagement and viral activity

Earned Media Well-executed owned and paid social media can drive prospects and customers through the steps from awareness to product purchase, repurchase, and into long-term customer loyalty Earned media is often initiated by the company through branded (owned) content distribution, such as entertaining YouTube videos about the product, social media press releases (public relations), or other activities intended to engage users, such as placing social hooks on company brand sites and microsites

Figure 5.1: Owned and Paid Media Drive Earned Media

Social Media Engagement Levels Social media engagement occurs among customers and between the company and Internet users who are actively discussing the brand

Figure 5.2 Five Stages of Social Media Engagement

Social Media Engagement Levels There are many levels of online user engagement 1.The least engaged Internet users consume online content only 2.At the next level, users connect with others by creating a profile on a social network 3.Consumers who collect information go through a process of filtering content and tagging what they find valuable in social media sites 4.Creators actually write or upload original multimedia content to websites 5.The most engaged customers collaborate with the company when they work with others in discussion to find ways to improve products

Engaging Consumers to Produce Earned Media Customer engagement (CE)* – Trust is a key component of word-of-mouth communication resulting from customer engagement – Video: “12 customer engagement recommendations” at youtube.com/watch?v=xG-tFMekm-Y

Figure 5.3 Proportion of Consumers Expressing Trust in Media Sources: 1Nielsen Trust in Advertising Survey 2011 (blog.nielsen.com)blog.nielsen.com 2Edelman Global Trust Barometer (trust.edelman.com)trust.edelman.com 3Vision Critical Study (U.S. only) (womma.org)womma.org (Strauss & Frost 2014)

Engaging Consumers to Produce Earned Media Who Should A Company Engage? – Companies identify social media influencers in two ways They can observe and participate in conversations in social media platforms where people discuss their industries Find influentials is to use a service such as Klout, Inc. – Klout measures over 400 variables from eight different networks for each of over 620 million social network participants and ranks them

Figure 5.4 Viral Marketing Turns the Sales Funnel Upside Down Source: Strauss and Frost 2014)

Engagement Techniques Viral marketing (viral advertising)* – Examples of Viral Campaigns – Viral blogging* – Viral Videos and Video Ads Viral video* – Mobile Viral Marketing

Engagement Techniques Ratings, Reviews, Recommendations, and Referrals – Social Recommendations and Referrals – Quick Reference (QR) Codes*

Figure 5.5 QR Code

Engagement Techniques Collaborative Content Creation by Consumers How Do Companies Entice Engagement? – Provide High Quality, Timely, Unique, and Relevant Information – Create Entertaining Content – Offer Competitions – Appeal to Altruism – Make an Exclusive Offer – Incentivize Group Behavior

Reputation Management in Social Media Reputation is "the beliefs or opinions that are generally held about someone or something Quality, transparency, and trust principally influence company and brand reputations Which Reputations Matter? Build, Maintain, Monitor, Repair, and Learn Reputation management systems*

Search Engine Optimization Search engine optimization (SEO)* 1.Spread fresh content all over the Web 2.Relevance and popularity 3.Optimize content 4.SEO tactics constantly change

Figure 5.6 SERP for "Will It Blend“ Source: © Blendtec, used with permission.

Monitor, Measure, and Refine: SM Metrics Performance metric* Awareness/Exposure Metrics Brand Health Metrics Engagement Metrics Action Metrics Innovation Metrics Measurement Tools

Figure 5.7 Social Media Measurement Areas

Figure 5.8 Radian6 Social Media Dashboard Source: © Salesforce.com, reproduced with permission.