SOCIAL NETWORKING Stephanie Bowling, Jeff Hartman, Taylor Mitchell, Amanda Wilkerson 1

Overview ■Why is social networking important? ■Types of social networking ■Consumer willingness to adopt ■How are companies using social networking? –American Airlines, Vanguard, ING Consumer Loans ■Limitations ■Concluding thoughts 2

Why is social networking important? “Companies are taking external social tools & embedding them into core business process and capabilities. They are using social approaches not only to communicate better with their suppliers, business partners and, perhaps, most important, their employees.” ~CIO.com ■46% of companies surveyed increased investments in social business in 2012 ■62% indicated they are going to increase expenditures in next three years ■75% report they were underprepared for the required cultural changes “Executives are concerned because social business represents a different way of thinking...as well as potential risks of increased organizational openness & transparency.” 3

Types of Social Networking The user driven nature of social media/networking means that it is more than simply an advertising platform for organizations - it is an opportunity to engage with and better understand both prospects and customers. Social Advertising expected to grow 24% CAGR between

Consumer Willingness to Adopt ■Despite the age gap, consumers are willing to engage with companies on social sites. ■Companies can gain considerable traction by making product information readily available through social media. 5

Example: American Airlines ■Allowed ability to address & respond to barriers of customer disconnection –Customer service has developed over the years through utilization –Facilitates a meaningful relationship between organization & audience –Increases brand visibility & customer loyalty ■Services used: Twitter, Facebook, Instagram, Google + 6

Example: Vanguard ■Uses social networking to build enterprise collaboration –Provides opportunity to increase internal productivity & crew engagement –Brainstorm ideas to improve processes, reduce costs, & provide products –Leverages crews’ knowledge via connections –Has allowed maintenance of unique culture during global expansion 7

Example: ING Consumer Loans - Turkey ■Employed #UpToMyTweet campaign through Survivor Turkey sponsorship –Leading TV show with social media exposure –Viewers live tweet for chance to determine interest rate for specific loan offer –Goal: Increasing consideration & periodical sales of consumer loans ■Delivered social engagement & reached existing customer via traditional channels ■Social effects: –28,000 trend mentions of #UpToMyTweet (with 38.1M trend impressions) –54,200 promoted tweet impressions –7,500 trend mentions of loan-offer campaign –11.6% engagement rate on Twitter –52.3% increase in consumer loan sales versus standard TV-advertorial campaigns 8

Limitations ■Potential limitations: –Difficult to preserve company reputation if improper resource commitment maintaining social networking campaign –Operational processes may be placed on hold ■Process to overcome limitations: –Create a brand imaging / public relations team that focuses their efforts on –Increase the budget for the campaign 9

Conclusion ■Social networking is an increasingly growing investment hot topic ■Multiple interfaces both internally & externally ■Large acceptance rate across consumers ■Important to have dedicated team for consistent interaction ■Be creative! 10

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