Socialmediareport2010

A Social Media Report

August - November, 2010

"Sustaining conversations in shaping perceptions by building online communities"

An Analysis of Social Media in Building better Customer Relationships Methods, Risks and Rewards

A Social Media Report by ŠSondra L. Duckert Copenhagen School of Design and Technology - (KEA: Københavns Erhversakademi) 4th Semester Internship Project - International Line August - November 2010

An Analysis of Social Media in Building better Customer Relationships

Abstract

Abstract Keywords: Business Tools, Social media, Usage, Communication, Power, Media, Impact.

This report was created to explore the power and impact of social media (social networking, blogs, video, etc.) and the tools companies can use to increase its social presence on the web. Empowered by online (social) technological innovations, customers are now connecting with and drawing power from one another in increasing numbers. The essential argument is that when valued content is shared with a target audience using social media methods, tools or strategies, the content is no longer limited to that audience; therefore, companies no longer have control over the evolution of the content and its message. However, in not having this control, companies also recognize what makes social media so effective: users are becoming increasingly often the source of new evolving types of information.

The social media (SM) audience are defining and sharing their own perspective with other members thereby creating conversations and building communities that encourages participation amongst all members of the 'used'' SM platform. For companies this form of word of mouth (WOM) marketing via SM platforms can create a comparative business advantage by building social capital and social authority through 'influencers'. It also represents a dramatic shift in how consumers have entered into a new relationship with companies. The research presents that social media has a significantly positive influence on consumers, with Facebook, Blogs and Twitter feeds having the most influence among all social media platforms. It will also examine earlier comparative case studies that revealed how local and international brands have successfully implemented social platforms, their methods and the risks taken, in developing consumer-centric marketing plans.

This paper is furthermore illustrated by an explorative study of the image of discount retail chains in Denmark, more specifically retail discount chain Rema 1000 and its customer base. It will explore Rema 1000s viability to engage in one-on-one conversations with its customers using social media tools and strategies. Aforementioned is uncovered

Disclaimer: This Social Media Report does not include all social networks or social media channels / platforms, nor does it cover the history of social media in complete detail. Instead it focuses on the most useful networks that are essential for businesses seeking effective social media engagement. It is therefore merely an introduction into how businesses can effectively communicate with its customer base. It was written as an educational source and makes no claim that use of any of the Report will assure a successful outcome. It is for those seeking a concise introduction in how to use interactive public communication channels to actively grow its Internet presence and moreover its business. Therefore, this Report is for anyone seeking a rudimentary understanding on what social media may offer a business.

through review of published reports, newspaper articles and quantitative research. This study challenges the argument that the benefits acquired from participating in various social media / platforms are difficult to measure in terms of economic benefit. Indeed, overstating conventional business cost and considerations will only prevent a smoother company implementation of already established social media technologies.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

2

An Analysis of Social Media in Building better Customer Relationships

T a b l e

o f

Contents

C o n t e n t s

PART ONE ABSTRACT 1. INTRODUCTION 1.1 Problem Area ...................................................... 8 2. LITERATURE REVIEW 2.1 The State of Social Media ................................. 10 2.2 Social Media Theory ...................................... 12 Social Capital ............................................ 13 2.3 What is Social Media? ....................................... 14 Social Media Channels ................................... 16 2.4 Social Media Guidelines .................................... 25 2.5 From Social Media to Social Strategy ............... 29 2.6 Social Media for Business ................................ 31 Social Media Integration ................................ 32 2.7 Social Media Marketing / Engagement .............. 35 Social CRM ..................................................... 39 Social Media and Mobile Marketing ............... 41 2.8 Social Media Measurements ............................. 44 Social Media Analytical Tools .......................... 46 Search Engine Optimization (SEO) .................. 48 Return on Investment (ROI) ............................. 49 3. THE VALUE OF SOCIAL MEDIA ........................ 52 Social Media Rewards and Risks .................... 55

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

3

An Analysis of Social Media in Building better Customer Relationships

T a b l e

o f

Contents

C o n t e n t s

PART TWO 4. METHODOLOGY 4.1 Research Design ........................................ 58 4.2 Data Collection Procedures ............................ 58 4.3 Method and Analysis ..................................... 59 4.4 Assumptions and Limitations ........................... 60 5. FINDINGS 5.1 Profiling Of Social Media Usage ...................... 62 5.2 Meanings and Findings ................................... 75 6. THE CASE STUDY: REMA 1000 6.1 Social Media in Denmark ............................. 79 Internet usage ............................................ 80 Mobile ..................................................... 80 Danish Companies uncertainty with Social media ....................................... 81 6.2 The image of discount stores in Denmark ........ 82 6.3 About Rema 1000 ....................................... 85 6.4 The Case for Rema 1000 .............................. 87 Rema 1000 on YouTube .............................. 91 Rema 1000 on Facebook

CONCLUSION ................................................... 95 Summary ....................................................... 95 Reflections ...................................................... 96 WORKS CITED

.............................................. 97

APPENDIX A. Social Media Company Policy ..................... 99 B. Troubleshooting Social Media ...................... 101 C. Social Media - Gaffes by SMI ..................... 102 D. Social Media: A Global Perspective .............. 103 E. Survey of Social Media Users .............................................. 104 Prospective F. Raw Data: Prospective Social Media Users Survey ............................................... 109 G. Glossary ................................................. 113

.................................... 115 I. Useful Websites ........................................... 116 H. Social Media Icons

......................... 92

Rema 1000 on Twitter ............................... 93

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

4

An Analysis of Social Media in Building better Customer Relationships

1. Introduction PART ONE: Chapter One

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

PART ONE - Chapter One

An Analysis of Social Media in Building better Customer Relationships

Introduction

1. Introduction Traditional methods of communicating with audiences on the web have undergone a remarkable evolution over the last ten years. The greatest shift on the web has been away from 'static' or 'brochure-ware' websites or "Web 1.0", whereby the one-way communication method left readers with little opportunity to contribute to or start any discussion with the creator of the site. When the focus of web development shifted to the ideas of usability, participation, accessibility and design coupled with the advancement of single platform technology, this revolutionized the web into an interactive, conversational place or "Web 2.0". This revolution redefined the way we use today's technology by vastly improving the value of the Internet for its consumers and facilitating the birth of new markets and profitable territories for astute corporations and business entrepreneurs.

This revolution has also been responsible for the creation of dozens of mash-ups (websites), social networking sites and media platforms. Partly because they are inexpensive, but more often since they are free, easy to use, as well

A brief description of the evolution of websites (1) Web 1.0 refers to sites that

were built between 1991-2003 that were static, non-interactive and contain proprietary applications: Personal or company websites where the information never changed and gave visitors no reason for returning.

Dial-up, 50K GIFs images

as providing an instantaneous and popular method of online engagement and communication. Online audiences are interested in and look forward to building networks and relationships via social platforms that gives them a greater opportunity for interacting with others. In 2009, social platforms surpassed email in global usage and social networks grew in popularity twice as fast as search engines and web portals. Having a grasp of the role, power and

(2) Web 2.0 refers to sites that

enable people to take an interactive part where people make connections with others through the web, as they do on these websites:

impact of new technologies can be beneficial for companies to also be where customers are actively listening and influencing each other via platforms like social media instead of the traditional methods of communication. It is estimated that social media will comprise 50% of online usage (3) in the near future, as the number of people who use the Internet as their primary source of gathering information and purchasing products increases. While different organizations have different needs and uses for social media many still do not understand how to effectively leverage social platforms to provide measurable outcomes and are therefore in various stages of social media adoption. Understanding the type of data that's occurring on social platforms and having the tools to measure its

Social networking sites, like MySpace or Facebook Blogs and micro-blogs, like LiveJournal or Twitter Sites that allow users to contribute content, like wikis Sites that let users share content, like YouTube

performance can provide insightful metrics to determine the financial impact of social media for companiesĘź bottom line. But as the social media game changes so will companies business model, approach and strategy.

1. Web 1.0, Wikipedia, http://en.wikipedia.org/wiki/Web_1.0 (September 26, 2010) 2. Is there a Web 1.0? http://computer.howstuffworks.com/web-10.htm 3. Social media strategy, Spur Interactive, Nielsen online and Forrester. (2009)

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

6

PART ONE - Chapter One

An Analysis of Social Media in Building better Customer Relationships

Fun Comparisons between Web 1.0 vs Web 2.0

Introduction

(4)

Web 1.0 was about reading

Web 2.0 is about writing

Web 1.0 was about companies

Web 2.0 is about communities

Web 1.0 was about client-server

Web 2.0 is about peer to peer

Web 1.0 was about HTML

Web 2.0 is about XML

Web 1.0 was about home pages

Web 2.0 is about blogs

Web 1.0 was about portals

Web 2.0 is about RSS

Web 1.0 was about taxonomy

Web 2.0 is about tags

Web 1.0 was about wires

Web 2.0 is about wireless

Web 1.0 was about owning

Web 2.0 is about sharing

Web 1.0 was about IPOs

Web 2.0 is about trade sales

Web 1.0 was about Netscape

Web 2.0 is about Google

Web 1.0 was about web forms

Web 2.0 is about web applications

Web 1.0 was about screen scraping

Web 2.0 is about APIs

Web 1.0 was about dialup

Web 2.0 is about broadband

Web 1.0 was about hardware costs

Web 2.0 is about bandwidth costs

Table 1. Web 1.0 vs. Web 2.0

Figure 1. Web 1.0 mentality. Image credit Thinking Pharma 4. Web1.0 vs Web 2.0,

http://joedrumgoole.com/blog/2006/05/29/web-20-vs-web-10/

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

7

An Analysis of Social Media in Building better Customer Relationships

Problem Statement

1.1 Problem Statement This study attempts to answer the question, "Does a company use of social media platforms improve its relationship with consumers?" It will analyze the role of social media for business and also determine which platforms have been declared the most effective in building successful relationships between companies and their customers.

To evaluate the impact of social media on customer relationship building, two areas of interest were selected to be investigated through the means of current literature, articles, and primary research: 1. Which forms of social media are the most effective in increasing company online presence with customers? Who are the influencers?

2. Are social media platforms viable business tools to drive sales and steer growth? Is the ROI important in determining if a social media strategy is successful?

The popularity and buzz of social media has been gaining steam for at least 4 years but there continues to be an apparent lack of understanding from most companies of what makes social media conversations successful at reaching business goals. It is therefore not uncommon for businesses and organizations to be behind mainstream when it comes to the usage and implementation of new internet technology. Companies will only need to figure out which social platforms, media and content, best resonates with their customers. Another hurdle facing some organizations is that they are not inherently 'social'. Social media is not about marketing and self promotion. Instead it is more likely to represent a companyĘźs value content by connecting with customers while engaging in two-way conversations. The inexperience that companies face with social media can be seen by some as a (unintentional) disconnect with their customers. This is a too cynical view. As companies strive to better understand and master these mediums they can with just a few simple modifications to already existing areas of public communication join in on the conversations, via social media, that their customers are already having.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

8

An Analysis of Social Media in Building better Customer Relationships

2. Literature Review PART ONE: Chapter Two

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

2.1 The State of Social Media More than 250 million people are active Facebook users and the amount of time spent in a visit is roughly 23 minutes, with 40 seconds spent on each pageview. More than 346 million people read blogs, and 184 million people are bloggers themselves. Twitter has more than 140 million registered users, and YouTube claims more than 100 million viewers per month. (Alexa.com) More consumers are connected now than ever before to information, videos, pictures and each other. In March of 2009, the Nielsen Global Corporation released a study finding that the average time spent on social networks exceeded that of e-mail (Nielsen, 2009). Furthermore, from 2007 to 2008, social networking sites (SNS) grew in membership at a rate twice that of e-mail and almost triple of both search sites and general interest portals and communities: Time spent on social network and blogging sites growing at over (three times) the rate of overall Internet growth. This increase in popularity is only half (of) the story when it comes to the social networking phenomenon – the time people spend on these networks is also increasing dramatically.

The total amount spent online globally increased by 18% between December 2007 and December 2008. In the same period, however, the amount of time spent on (social networking sites) rose by 63% to 45 billion minutes.

Social networks/ blogs now 4th most popular online category – ahead of personal e-mail.

These sites account for one in every 11 minutes online.

Orkut in Brazil has the largest domestic online reach (70%) of any social network anywhere in the world.

Facebook has the highest average time per visitor amongst the 75 most popular brands online worldwide.

Source: Global Faces and Networked Places A Nielsen report on Social Networkingʼs New Global Footprint (March 2009)

Social networks started out as online channels for the younger audience, but now that social media has become a part of everyday life it is not surprising that the audience has become older and broader. Facebook for example has added the most users between the ages of 35-49 years of age (+24.1 million Dec. 2007-Dec. 2008).

Social media usage will continues to grow as 73% percent of online adults participate weekly or more often. The amount of time used on these sites will without a doubt change the way consumers are targeted by both digital and traditional media.

Mobile phones are the next trend for social networking as consumers are use to connecting with friends via mobile calls, SMS and instant messaging. Once again Facebook mobile app. leads with 150 million active mobile users as more are logging into social networking sites via mobile phones. (Facebook Scribd, 2010)

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

10

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

The State of Social Media How Are Businesses Embracing Social Media?

Businesses are aware of enthusiasm about social media, but many are still unclear of how it really works. According to a survey by the Forum of Private Businesses, 69% of US companies compared to 52% of UK small businesses

" The amount of experience with the internet is on the

employ social media strategies, however, many (27%) in the UK expressed serious doubts about its value. Forum of

rise and so is the influential

Private Business spokesman Phil McCabe said, “Itʼs clear that, while a lot of our members are certainly trying out

online activity of Internet users. "

social media for their businesses, many are not convinced of its benefits. We believe that social media does hold a great deal of potential for many SMEs. Its conversational, real-time nature makes it ideal for entrepreneurs and small, dynamic firms, which often have much more relaxed attitudes towards public relations than big corporations.”

Mr. McCabe acknowledges the UK's apprehension towards SM technology, but they remain optimistic for the future.

In another study conducted by the Small Business Success Index, 20% of businesses actively use social media with the top three sites being Facebook (82%), LinkedIn (38%) and Twitter (30%). Of those who used media, either broke even or made slight gains by using SM tools and have expectations for the near future; 57% expect to profit from their social media activities within the next 12 months.

Social networks are visited by 2/3 of the worldʼs population (of Internet users) where 93% of social media users polled believe that a company should have a social media presence, and a further 83% believe that companies should interact with its customers. More people who use social media prefer to give advice about a product or service rather than receive it; and more men than women prefer to communicate with others via a cell phone conversation after searching for a product or service online. (Source: BIG research, 2010) There is a huge window of opportunity for businesses to engage in social media, even in its simplest form, but it takes time to see results and many small businesses hesitate to add new tools to traditional marketing methods. “This may be because the online world does not fit their business model or other factors such as inexperience with technology or lack of time to effectively enter these marketing channels. Itʼs encouraging, however, to see that many intend to utilize more of these tools in the next 12 months.” says, Raj Seshadri the head of Small Business Baning at Citibank.

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

11

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

2.2 Social Media Theory Getting the 'social' in social media.

Social theory seeks to explain changes in society—how it develops, what factors facilitate and inhibit it, and what results from it. Sam Ladner of Copernicus consulting states that: "Social theory is even more relevant today because it

Why is it important to know why people adopt social media & new technology?

coheres and synthesizes design and marketing research." Moreover, she also stresses the importance of social theory in understanding social media use. Social theory is interdisciplinary and comprises many ideas from anthropology and media studies. Basically social theory contextualizes knowledge, and the manner in which we collect and experience knowledge, as well as defining the institutions where knowledge is coalesced and disbursed among peoples to be socially integrated. In essence we can only experience the nature of the universe by obtaining social tools within a social context.

In helping define the 'social' in social media Sam Ladner suggested two social theories to explain how we engage one another online and off-line. Although there are many theories and social theorists to select from, for this introductory study the number of theorists selected is only two. The first is dramaturgical theory by Erving Goffman and the second is social capital by Pierre Bourdieu (1986).

Goffman theorizes that individuals tend to see their lives as a theatrical performance, act or play. His social theory concept involved the formulation of symbolic interaction as dramaturgical perspective. His perspectives was not that

"It is remarkable that people receive crucial information from individuals whose very existence they have forgotten" Grandovetter, M, The Strength of Weak Ties. 1(973),

interaction was either a drama or a game or a frame, but rather that each of these concepts offered a potentially useful standpoint or angle from which one might view- and come to understand something about - social life. (Goffman, 2008) This theory implies that we enter into 'role play' where embarrassment is bound to happen when the script comes apart and that this is what online social networks do to us daily: "They force us to play multiple roles at the same time. Good social media allows ' audience segregation' which lets us select which role to play when. "

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

12

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Capital Bourdieu's concept of social capital places emphasis on conflicts and the power function, such as social relations that increase the ability of the 'performers' to advance their own interests. Social capital becomes a resource in the social struggle and is expressed in different social fields. Social capital is defined as a resource that is connected with group membership and social networks. "It is the quality produced by the totality of the relationships between actors, rather

"The volume of the social capital possessed by a given agent thus depends on the size of the network of connections" Bourdieu,P. "The forms of capital." (1986.)

than merely a common 'quality' of the group", (Bourdieu, 1980, 2). It is therefore the membership in groups, and the amount of participation within social networks that leads its development as well as the increase in social relations from the membership, which can be effective in the attempt to improve the social position of the actors.

The second characteristic of social capital is based on mutual cognition and recognition in acquiring a 'symbolic character' that is reshaped into symbolic capital. He further goes on to state that in order to become valuable, the social capital "objective" differences between groups and classes have to be transformed into symbolic differences

Social capital: "Social networks have value"

and classifications that make possible symbolic recognition and distinction. The concept of symbolic capital defines what forms and uses of capital are legitimate bases of social positions in a given society. The effectiveness of symbolic capital depends on real practice of communication. (Bourdieu,1985)

Wikipedia defines Social capital as: (5) A sociological concept, which refers to connections within and between social networks. Though there are a variety of related definitions, which have been described as "something of a cure-all"[1] for the problems of modern society, they tend to share the core idea "that social networks have value. Just as a screwdriver (physical capital) or a college education (human capital) can increase productivity (both individual and collective), so do social contacts affect the productivity of individuals and groups".[2]

"Organizations create social capital by creating opportunities for people to interact."

Social capital lends itself to multiple definitions, interpretations, and uses.

Bourdieu work tends to show how it can be used practically to produce or reproduce inequality, demonstrating for instance how people gain access to powerful positions through the direct and indirect employment of social connections.

5. Social capital,Retrieved October 10, 2010 from http://en.wikipedia.org/wiki/Social_capital,

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

13

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

2.3 What is Social Media?

Social media (SM) is an entirely new way to communicate. SM are tools and platforms people use to publish, share, and produce online content to interact with one another. This includes email, blogs, podcasts, video sharing,

Social Media or Social Networking (6)

microblogs, photosharing, social networks, social gamers and virtual worlds to name a few. The inherent functionality

What's the difference?

of SM is characterized in the ease in which the sharing of information between users occurs within a defined network.

The two largest SM tools are social networks (Facebook, MySpace) and blogs (Blogger, Wordpress).

Wikipedia defines Social media as: (7) Social media are media for social interaction, using highly accessible and scalable publishing techniques. Social media uses web-based technologies to turn communication into interactive dialogues. Andreas Kaplan and Michael Haenlein define social media as "a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content (UGC). Businesses also refer to social media as consumer-generated media (CGM). A common thread running through all definitions of social media is a blending of technology and social interaction for the co-creation of value.

Social media is about content, context, communication, and community. It's an incredible way to create strong relationships with hard-to-find prospects, especially with a limited budget. Social media allows you to elicit favorable (and sometimes unfavorable) responses. However, itĘźs not easy and it is a major commitment, as companies have to be totally committed to the conversation. A contemporary "must have" for anyone engaging in social media is an 'Active Audience', seeing as the audience/consumer now have the ability to actively engage with the content they consume.

The active consumer is a powerful consumer and social media has helped to level the playing field; giving individuals

Social media can be consider the tool of Social networking Social media is a technology, where the media is designed to be easily shared amongst users based on things such as common interests, local communities, relationships, and other demographics.

Social networking is based on understanding what types of social media people use to create a hub of connections, and leverages to create even stronger relationships.

The short explanation: Social Interaction tools = Social media Creating connections with those tools = Social networking

In a Nutshell Reading a blog post is social media.

Commenting on that blog post is social networking.

a voice and allowing them to punch above their weight acknowledging the consumer voice as powerful when online as the results are there for all to see forever. (8)

6. 123 Social media, May 09, 2008. http://123socialmedia.com/2008/05/09/123-learning-social-media-vs-social-networking/ 7. Social media, wikipedia, October 03, 2010, http://en.wikipedia.org/wiki/Social_media 8. A beginners guide to social media, Simply zesty, May 5, 2010, e-book.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

14

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media Basic forms of Social media " "

Social networks Websites allow people to build personal pages and connect with friends and family members. Members can also share content, photos and post videos. The biggest social networks are Facebook and MySpace.

" "

Blogs The best-known form of social media. They are online journals where you can share your thoughts with the world.

" " "

Wikis Basically an encyclopedia websites that allow people to add content to or edit the information on them. The best-known wiki is Wikipedia. It has over 2 million English language articles. However, any information taken from any wiki website page should be subject to further research.

"

Podcasts Audio and video files available by subscription, through services like Apple iTunes.

" "

Forums Websites for online discussion. A message board or discussion site where people can hold conversations in the form of posted messages.

" "

Content communities Communities which organize and share particular kinds of content. The most popular content communities tend to form around photos (Flickr), bookmarked links (del.icio.us) and videos (YouTube).

Social Media Myths: 1. Social Media is for Kids?

- 55.6 million adults visit SM networks monthly.

- 80% of Twitters users are over 25 years of age.

- The fastest growing Facebook demographic is those 35 years old and older.

2. SM is popular in the US but not the rest of the world.

- Almost 70% of the 250M Facebook users are outside of the United States.

3. SM isn't for Businesses.

- Thousands of companies large and small are using SM. Companies and their competition as well as their customers are already using SM.

" "

Microblogging Social networking combined with bite-sized blogging, usually limited to 140-characters of content.

Twitter is the clear leader in this field.

Note: There are basically seven kinds of social media, though new innovations are happening all the time.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

15

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

An Overview of Social Media Tool / Platforms The Conversation Prism Developed By Brian Solis and Jesse Thomas

Why should companies create social media presence?

- Awareness Choose your channels wisely!

- Branding/ Positioning - Community Building - Communications - Consumer Influence - Customer Service - Crisis Communication - Product Improvements - Relevancy - Research and Development - Sales and Promotion - Testing

Figure 2.1 A categorized color wheel displaying social media channels.

Image credit:Brian Solis and Jesse THomas. www.theconversationprism.com

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

16

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media Tools / Channels: Top 5 most used tools (+ 3) There is an abundance of information about social media that exists both online and offline. Listed in this section are the top five most used SM tools as well as a few explanations and fun facts that may help to better in understanding the social media landscape. (*The data presented on pages 17-24 was retrieved between August - November, 2010)

1. Facebook A social utility that connects people, to keep up with friends, upload photos, share links and videos.

Facebook is the most popular site in the world according to the three-month Alexa traffic rankings. Search engines refer approximately 7% of visits to it. This site has been online since 1997, and the time spent in a typical visit to Facebook is roughly 40 minutes, with 90 seconds spent on each pageview. Relative to the overall population of internet users, this site's audience tends to be users who browse from school and home; they are also disproportionately women. (Alexa.com 2010) 1. The average Facebook user has 130 friends.

2. More than 25 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) is shared each month.

3. The fastest growing demographic are those who are 35 years of age.

6. There are more than 100 million active users currently accessing Facebook through their mobile devices.

9. People spend over 500 billion minutes per month on Facebook.

10. 50% of active users log on to Facebook every day.

Statistics from Facebook press office.

A Social Media Report by ŠSondra L. Duckert

Bad

Customer Communication Great for engaging people who like your brand, want to share their opinions, and participate in giveaways and contests.

Brand Exposure Facebook brand pages are great for brand exposure.

Jump-start your brand exposure through the ad platform, or hire a Facebook consultant to help you grow your brand presence.

Traffic is decent and on the rise thanks to share buttons and counters, but don't expect massive numbers of unique visitors to go to your site

5. About 70% of Facebook users are outside of the United States.

8. The average Facebook user is connected to 60 pages, groups and events.

OK

Traffic to your site

4. More than 150 million people engage with Facebook on external websites every month.

7. People that access Facebook via mobile are twice as active than nonmobile users (think about that when designing your Facebook page).

Good

Figure 2.2 Facebook facebook.com logo.

SEO Little to no value, aside from blogs picking up and featuring your posted links.

Not worth the time expenditure.

CMO's guide to the social media landscape, cmo.com (2010)

An Analysis of Social Media in Building better Customer Relationships

17

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

2. Google About Google (google.com): Enables users to search the Web, Usenet, and images. Features include PageRank, caching and translation of results, and an option to find similar pages. The companies focus is developing search technology. Google is ranked #2 in the world according to the three-month Alexa traffic rankings. The site has been online for at least thirteen years. About 35% of visitors to this site come from the US, and roughly 26% of visits to Google consist of only one pageview (i.e., are bounces). The time spent in a typical visit to the site is about thirteen minutes, with 34 seconds spent on each pageview. (Alexa.com 2010)

1. Google's name is a play on the word googol, which refers to the number 1 followed by one hundred zeroes.

2. 57% of the top 10,000 websites use Google Analytics to track users.

3. 7.2 billion daily page views.

4. 620 million daily visitors to Google.com 5. 97% of Google's revenue comes from advertising.

Figure 2.3 Google's logo

6. A new Google employee is called Noogler, and later transitions to be called a Googler.

7. 20 hours of videos are uploaded to YouTube every minute.

8. There are about 146 million Gmail users.

9. In 2004 Google's stock price was $85 US dollars, as of January, 2010 it's stock is worth $535 US dollars.

10. 45% of Google's products are in beta: Android apps, YouTube, Blogger, Google Earth, Doc & Spreadsheets, Chrome OS, Buzz, DoubleClick, Feedburner, Translate, Webmaster Tools, Picasa, Reader, Postini, Apps, Calendar, Finance, Maps, Toolbar, Knol, Sites, Wave, App Engine, OpenSocial, Alerts. (info provided by Royal Pingdom)

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

18

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

3. YouTube - Broadcast Yourself

Literature Review Good

YouTube - Broadcast yourself (youtube.com): YouTube is a way to get your videos to the people who matter to you. Upload, tag and share your videos worldwide!

Youtube.com is ranked #3 in the world according to the three-month Alexa traffic rankings. Roughly 22% of visitors to the site come from the US. It has a bounce rate of about 24% (i.e., 24% of visits consist of only one pageview), and Youtube.com has been online since 2005. The site belongs to the “Video Sharing” category.

(Alexa.com, 2010)

1. The very first video uploaded was called "Me at the Zoo", on 23rd April 2005.

OK

Bad

Customer Communication Whether you seek to entertain, inform, or both, video is a powerful channel for quickly engaging your customers, responding to complaints, and demonstrating your social media savvy.

Brand Exposure One of the most powerful branding tools on the Web when you build your channel, promote via high-traffic sites, and brand your videos.

2. By June 2006, more than 65,000 videos were being uploaded every day.

3. YouTube receives more than 2 billion viewers per day.

4. Every minute, 24 hours of video is uploaded to YouTube.

5. The U.S. accounts for 70% of YouTube users.

Traffic to your site

6. Over half of YouTube's users are under 20 years old.

Traffic goes to the videos. If the goal is to get traffic back to your site, then add a hyperlink in the video description, but don't expect traffic to correlate closely with video views.

7. You would need to live for around 1,000 years to watch all the videos currently on YouTube.

8. YouTube is available in 19 countries and 12 languages.

Figure 2.4 Youtube.com logo

9. Music videos account for 20% of uploads.

10.YouTube uses the same amount of bandwidth as the entire Internet used in 2000.

Statistics fromYouTube press center.

SEO Very good for building links back to your site because videos rank high. Also a tried-and-true way for your brand to gain exposure.

CMO's guide to the social media landscape, cmo.com(2010)

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

19

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

4. Yahoo!

Yahoo! Social news site.

About Yahoo! (yahoo.com): Personalized content and search options. Chatrooms, free e-mail, clubs, and pager.

Yahoo.com is ranked #4 in the world according to the three-month Alexa traffic rankings, and roughly 29% of visits to the site consist of only one pageview (i.e., are bounces). While we estimate that 33% of visitors to the site come from the US, where it is ranked #3, it is also popular in Taiwan, where it is ranked #1. Compared with Internet averages, the site's audience tends to be users who browse from school and home; they are also disproportionately women aged under 25 and over 45. The fraction of visits to Yahoo.com referred by search engines is approximately 7%. (Alexa.com, 2010)

Good

OK

Bad

Customer Communication Editor-driven and moderated, so this shouldn't be your primary focus.

Brand Exposure Noncommercial sites are heavily favored by moderators, so business sites should not waste time in this uphill battle.

Figure 2.5 Yahoo.com logo

Traffic to your site

1. If Yahoo! News were a printed publication, it would serve 16x more readers than USA Today!

2. There are more Yahoo! Mail users than homes the US Post Offices delivers mail to.

3. There are more people using My Yahoo! in one month than all the visitors to Las Vegas in 2007.

4. The average Yahoo! Messenger chit chat is 17 times longer than one on a cell phone.

5. It would take 7,000 years for all the photos on Flickr to be developed at a one-hour photo shop.

6. Yahoo! Groups has more members than the number of International Red Cross volunteers.

7. It would take 50,000 planes to fly all of the Yahoo! Travel users on a group vacation.

8. There are 9x more Yahoo! Gamers than fans of the New York Times Sunday crossword.

9. Yahoo! takes second place among search systems.

10. Yahoo! India News attracts more readers than The Times of India. Y! India News reaches 6.1 million unique users's in India.

Yahoo! Fun Facts based on U.S. and worldwide, April 2007 (http://careers.yahoo.com/funfacts.php)

A Social Media Report by ŠSondra L. Duckert

Get in the moderators' good graces, and you have a chance to hit absolutely massive numbers -- but it's a long shot.

SEO If you make the front page of Yahoo, then you will get a ton of backlinks, but chances are unlikely unless you are a large, established brand.

CMO's guide to the social media landscape, cmo.com(2010)

An Analysis of Social Media in Building better Customer Relationships

20

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

5. Windows Live About Windows Live (live.com): Search engine from Microsoft.

There are four sites with a better three-month global Alexa traffic rank than Live.com. The site has been online since 1994. Search engines refer about 4% of visits to the site which is located in the US. Visitors to Live.com view an average of 6.1 unique pages per day. (Alexa.com, 2010)

1. More than 300 million people in 76 countries and 48 languages use Messenger every month.

2. People use Messenger for 163 billion minutes every month.

3. 40% of users sign in each day 4. Messenger has more than 130 million daily users.

5. Messenger users share over 1.5 billion conversations and send more than 9 billion messages.

6. At peak times, more than 40 million 'simultaneous online connections through Messenger.

7. Messenger users represent 65% of all Internet users in Brazil.

8. Live Messenger is the most popular IM client, behind Skype and Yahoo!

Messenger.

9. Messenger users come back to log-into WLM on average of 3 times a day.

10. The nudge was introduced with MSN Messenger on April 7th, 2005.

Making it easier to get attention from your chatting partners.

A Social Media Report by ŠSondra L. Duckert

Figure 2.6 Microsoft mslive.com logo

An Analysis of Social Media in Building better Customer Relationships

21

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

8. Blogger

Literature Review *

About Blogger.com (blogspot.com): Free, automated weblog publishing tool that sends updates to a site via FTP. Blogspot.com is the eighth most popular site in the world based on its three-month Alexa traffic rank. The site has been online since 2000. Compared with Internet averages, the site appeals more to users who browse from school and home; its visitors also tend to consist of childless, low-income, highly educated men under the age of 35. The site belongs to the “Blogger” category of Internet sites. Search engines refer approximately 21% of visits to Blogger.com.

(Alexa.com, 2010)

Blogger, Twitter and LinkedIn are not in the Top 5 buy they have proven to be important SM tools, especially for businesses.

Blogs and Social Networking sites are the two most popular SM tools. They are used to place more detailed information, showcasing, products reviews and more.

1. 77% of Internet users read blogs.

2. There are currently 133 million blogs listed on leading blog directory Technorati.

3. 60% of bloggers are between the ages 18-44.

4. One in five bloggers updates their blogs daily.

5. Two thirds of bloggers are male.

6. Corporate blogging accounts for 14% of blogs.

7. 15% of bloggers spend 10 hours a week blogging.

8. More than half of all bloggers are married and/or parents.

9. More than 50% of bloggers have more than one blog.

10. Bloggers use an average of five different social sites to drive traffic to their blog.

Blog post can be linked from Twitter and Facebook giving their content a greater audience and visibility. When you think about the number of visitors each site receives every day the impact of a blog post become a big hit.

Figure 2.7 Blogger.com logo

Statistics from Technoratiʼs State of the Blogosphere 2009

A blog is short for weblog. It's a type of website used by individuals, businesses and groups to publish information, commentary on various topics and opinions.

Types of Blogs: Personal Blogs Political Blogs Business Blogs 'Almost Media' Blogs Mainstream Media Blogs

Blog Software: Wordpress, Moveable Type, Typepad

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

22

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

9. Twitter

Good

About Twitter (twitter.com): Social networking and micro-blogging service utilizing instant messaging, SMS or a web interface.

Twitter is the ninth most popular site in the world according to the three-month Alexa traffic rankings. The site has been online for more than ten years. It has a bounce rate of roughly 37% (i.e., 37% of visits consist of only one pageview). Twitter's visitors view an average of 6.4 unique pages per day. Visitors to the site spend roughly eight minutes per visit to the site and 43 seconds per pageview. (Alexa.com, 2009) 1. 72.5% of the 44 million Twitter users joined during the first five months of 2009.

2. Twitter gets more than 300,000 new users every day.

3. There are currently 110 million users of Twitterʼs services.

4. Twitter receives 180 million unique visits each month.

5. There are more than 600 million searches on Twitter every day.

6. Twitter started as a simple SMS-text service.

7. Over 60% of Twitter use is outside the U.S. 8. There are more than 50,000 third-party apps for Twitter.

9. Twitter has donated access to all of its tweets to the Library of Congress for research and preservation.

10. More than a third of users access Twitter via their mobile phone Statistics from Twitter and the Chirp Conference.

Twitter Tools TinyURL – shortens URLs so they fit into Twitterʼs 140 character limit. http://tinyurl.com/ Cligs – Tiny URL with analytics. http://cli.gs/ TwitPic – Upload photos for easy sharing on Twitter. http://www.twitpic.com/ Blip.fm or twt.fm – Share music streams on Twitter

Literature Review OK

Bad

Customer Communication Use keyword search monitoring through a program such as Hootsuite, TwitJump or Radian 6 to track what people are saying about you and your competitors.

Brand Exposure Offers unique opportunities for Web site integration and to engage with customers in a viral way, helping your company stand out from the masses.

Traffic to your site

- Twitter age demographic: (% of total)

Potential can be large, but promotion is an art form -promote your brand too heavily and turn o followers, yet don't promote enough and receive little attention.

Ages: 25-34 - 20%, 35-49 - 42%, 55+ - 17%

SEO

Figure 2.8 Twitter.com logo

- Twitters are 53% Women and 47% Men.

Value to your site's SEO is limited, but tweets will rank high in search results -- good for ranking your profile name and breaking news, though shortened URLs are of little benefit.

12Seconds.tv – Share videos on Twitter TwitterFeed – Stream RSS feeds into your Twitter account

A Social Media Report by ©Sondra L. Duckert

CMO's guide to the social media landscape, cmo.com(2010)

An Analysis of Social Media in Building better Customer Relationships

23

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

23. LinkedIn

Literature Review

Good

About LinkedIn (linkedin.com): A networking tool to find connections to recommended job candidates, industry experts and business partners. Allows registered users to maintain a list of contact details of people they know and trust in business.

Linkedin.com has a three-month global Alexa traffic rank of 23, and search engines refer about 15% of visits to the site. The time spent in a typical visit to the site is approximately seven minutes, with 38 seconds spent on each pageview. The site can be found in the “Social Networking” category. Linkedin.com has been online for more than seven years. (Alexa.com, 2010)

OK

Bad

Customer Communication Not the primary focus, but customer engagement opportunities are possible by answering industry-related questions, establishing yourself as an expert in the field.

Brand Exposure

1. 36.5 million people visit LinkedIn.com every month 2. There are more than 70 million users worldwide.

3. Members of LinkedIn come from more than 200 countries from every continent.

4. LinkedIn is available in six native languages – English, French, German, Italian, Portuguese and Spanish.

5. Oracleʼs Chief Financial Officer, Jeff Epstein, was headhunted for the position via his LinkedIn profile.

6. 80% of companies use LinkedIn as a recruitment tool.

7. A new member joins LinkedIn every second.

8. LinkedIn receives almost 12 million unique visitors per day.

9. Executives from all Fortune 500 companies are on LinkedIn. 10. Recruiters account for 1-in-20 LinkedIn profiles.

Statistics from LinkedIn press centre and SysComm International.

Elective for personal branding and demonstrating your organization's professional prowess. Encouraging employees to maintain complete profiles to strengthen your team's reputation is advisable.

Traffic to your site

Figure 2.9 linkedin.com logo

Unlikely to drive any significant traffic to your site, though you never know who those few visits might be from -- perhaps a potential client or customer.

SEO Very high page rank -- almost guaranteed on the first page of search results -- especially for your company name or individual employees' names, but that's about it.

CMO's guide to the social media landscape, cmo.com(2010)

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

24

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

2.4 Social Media Guidelines Social media guidelines and policies provide businesses a blueprint to carry out its social media strategy and tactics and can have a significant impact on the success or failure of its social media efforts. The advantage of having SM guidelines is that they not only provide a way to improve your social media performance but they also give everyone involved the information they need in order to work well together. SM guidelines will also make it easier to build social communities as well as respond to any and all emergencies in a timely manner.

Benefits of SM guidelines: Helps everyone stay focused on their social media strategy Benchmarking progress Assessing time management invested in social media betterment Employees interacting on behalf of your company should be updated on various legal terms, especially those involving intellectual property, wrongful disclosure, global online communication / implications and comments made inappropriately about competitors and others.

Figure 2.10 Social media guidelines by onefte.com/

How are companies using social media guidelines and policies?

16 Social Media guidelines used by real companies IBM,BBC, INTEL, Kodak, SAP, and ZAPPOS whose social media guideline is just seven words: "Be real and use your best judgement." (http://econsultancy.com/uk/blog/5049-16-social-media-guidelines-used-by-real-companies)

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

25

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media Guidelines What you need to know, before getting started.

Ready to jump into the social-media world?

Before diving in, you need to know that there is a difference in being a user of social media, and understanding its strategic applications tailor for your marketing, and communications objectives. Each requires different skill sets.

Listed here are some tips from a lead social media strategist and blogger, Jenny Cisney:

LISTENing Tools Neilson Buzz Metrics

1. Know what you are talking about. If you are going to work with social media, be involved in social media. Start your own Twitter account, Facebook page, read blogs and get engaged. That is the best way to understand the culture, tone, best practices, and protocol.

Visible Technologies Meteor Solutions

2. Always be transparent. When you are communicating in social media say who you are and who you work for.

Donʼt try to be sneaky and plant comments, donʼt hire people to go out and say nice things about you and stay away from ghost writing. Be genuine and be real.

Alterian SM2

3. Be yourself. Readers can see through marketing talk. Be passionate about what you do and let that show through your personality. Let people see you as a person, not a mouthpiece.

Radian6

BrandWatch

4. Post frequently. Itʼs a lot of work but donʼt post to your blog then leave it for two weeks. Readers wonʼt have a reason to follow you on Twitter or check your blog if they canʼt expect new content regularly.

5. Add value. Share tips, tricks, and insights. Peopleʼs time is precious and they need to get something out of the time they spend with you. Make listening to you worth their time.

6. Respond. Answer questions, thank people even if itʼs just a few words. Make it a two way conversation.

7. Listen to what others have to say. Appreciate suggestions and feedback, it will make what you do even better.

8. Learn from your mistakes. Donʼt be afraid to say you were wrong and be quick to make changes when you are.

9. Be external. You donʼt have to be 100% internally focused. Link to other blogs, videos, and news articles.

Re-tweet what others have to say.

10. Have fun. If you donʼt like what you are doing, others will notice it and wonʼt enjoy interacting with you.

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

26

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media Guidelines How to get started? - Some basic questions to consider:

Profile of social media users

Make a list of what's important for your company. Map out a SWAT analysis and have lengthy discussions about whether or not social media has a role in your company.

What tools or online Why do I want to participate in social media?

services do my target audience use?

Who do I want to

A profile of users of social media from Royal Pingdom tells us: Those 35 to 44 dominate users of social media;

communicate with and why?

The average social network user is 37 years old; LinkedIn, with its business focus, has a high average user age; 44; The average Twitter user is 39 years old;

How can social media improve my business?

Once a general outline of your target audience is made you can easily select the social media platform to use.

What kind of audience does this social community have?

The average Facebook user is 38 years old; The average MySpace user is 31 years old.

Data from Pingdom, Study: Ages of social network users. Feb. 16, 2010 (Retreived August, 2010)

How will social media be incorporated into my overall customer experience?

What are people Who is likely to be most

currently saying about my website or business?

interested in my content?

Figure 2.11. Social media How to questions to ask.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

27

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media Guidelines Five social-media land mines companies MUST avoid (9) 1. Diving in without a strategic plan Don't start podcasting, blogging, tweeting, friending on Facebook, and posting YouTube videos until you know what your messages are, who will manage them, who your audience is, and how they and you are going to benefit from the content and relationships.

2. Not having a social media policy Your social media policy needs to outline how employees behave in the online universe during and outside of work. It should include education on style preferences and confidentiality. All messaging coming from employees should be aligned with your companyʼs values and brand.

3. Failing to tailor the plan to your target audience Hone in on sites, tools, and applications your target audience is using. Select two social networks where your target audience is active. Research your target market to find out what it is and how to reach it.

4. Producing weak, unfocused, or unhelpful content The same messaging rules that apply to classic public relations and branding apply to social media. Create strong, smart, well thought-out content that adds value to the lives of your customers. Don't waste their time with self-serving promo. Give them something they can use: tips, incentives, product information, new ideas, fun, and inspiration.

5. Allowing your social media efforts to stagnate Gone are the days when companies could put up a website that sat on the screen like an electronic business card.

Social media is about maintaining a dynamic conversation between you and your customers. Equip your content for the RSS-share-save-post-to revolution so it gets out there in multiple places. Answer blog, Flickr, and podcast posts; respond to tweets; engage “friends.” Remember: Social media, done right, is not a one-off campaign by a handful of staff. It's a long-term corporate commitment.

Set up profiles on Twitter, Facebook, YouTube or create a blog if you want to start off slowly.

Use a logo or special graphic that identifies who you are. Avoid default graphics.

Download applications like TweetDeck or Seemic to start 'listening'. Here you can watch conversations on topics you are interested in. If you see 'tweets' that interests you, you can click on the profiles and see what other tweets they are making.

'Follow' them if you find the tweets engaging and start building your network.

Get a feel for the conversations. Think of the conversations you have daily with your family and friends. It is social media after all.

Jump In. Be effective in your participation.

Add value. Give back to the conversation. Share your interests, likes and dislikes, and trends that interests you. If people are following you, they would also like to know you.

Remember it's Social Media.

(9) Sherrie A. Madia, Five social media land mines to avoid, http://www.ctv.ca/generic/generated/static/business/ article1674300.html

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

28

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

2.5 From Social media to Social Strategy Social media marketing is all about engaging your audience by creating conversations and identifying influencers of your company. SM marketing (SMM) is a long-term commitment, not a gimmick. If your business is jumping onto the bandwagon because everyone else is doing it then SMM may not be for your company. Companies need to know when starting out that SM is all about testing and experimenting-being patient and being proactive. If your boss or management team doesn't believe in the possibilities of social media then it will be difficult to develop a strategy. The first order of business is to get them onboard before a strategy can be created. Businesses that embrace openness

- A documented strategy (and associated policies and standards) should be developed with the involvement of all relevant stakeholders. (SM whitepaper,ISACA, 2010, isca.org)

and transparency have an easier time integrating SM strategies and tactics into a business plan. SM requires that companies develop a 'online thick skin'. "The reason why all businesses need to have a social media strategy is because it prevents any misunderstandings and emphasizes why social media is relevant to your businessĘź overall goals." (Nick Shin, Social Media Explorer, 2010)

Top 30 objections to social media and how to respond from marketwire / blog (http://bit.ly/6w7OcF)

Commonly used Objectives for your SM strategy -

Improve brand presence across social channels.

Increase positive conversations about your brand.

Build relationships and partnerships opportunities.

Increase web traffic to your site.

Inside Coca-ColaĘźs Social Media Strategy and Happiness Ambassador Program http://mashable.com/2009/11/17/ coke-expedition-206/

Businesses need to create their own list that coalesced with its policies, values and goals.

Christian Warren, mashable.com

Figure 2.12 Social media tips from intersectionConsulting.com

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

29

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media Strategy 7 Steps for a Successful Social media Strategy recommended by Nick Shin

Do's and Don'ts

1) Determine your Goals and Objectives WhatĘźs important is to understand your social media goals and objectives and how they tie into your overall company goals. Keep it Specific, Measurable, Attainable, Realistic/Relevant, and Timely (aka be SMART!).

2) Research, Research and Research some more.

Develop a list of social media sites where you can potentially engage with people. Listen to what's out there, identify and understand your target audience.

3) Create a Digital Rolodex of Contacts and Content Make a list of influencers who are relevant to your business. Don't forget to thank people who promote your brand.

DO's Have a PLAN before you start.

Create Measurable GOALS. Be a GOOD Listener.

Be Consistent. KEEP to your message, stick to your brand.

Create great CONTENT for sharing.

4) Join the Conversation to Develop Relationships Posts comments on blogs and forums. Begin developing relationships by following and friending influencers and those in your industry.

BUILD a strong Network.

5) Strengthen Relationships Attend offline events related to your industry not only to strengthen your knowledge base but also to network and strengthen relationships with those you might have conversed with via social media but never met in person.

Be a Good SOCIAL citizen.

Be ENGAGING. Communicate with your network.

DON'Ts Build your network to QUICKLY.

6) Measure Results Take into account your SM goals and objectives when developing a SM strategy.

Rely on ONE application.

Be PUSHY

7) Analyze, Adapt, and Improve Test and experiment your social media efforts.

SPAM social sites.

Try to SELL people.

Forget to THANK people.

The important goal is to discover what will work best for your company business model by developing strategies that will keep your business ahead of the competition.

A Social Media Report by ŠSondra L. Duckert

Use GENERIC marketing techniques.

An Analysis of Social Media in Building better Customer Relationships

30

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

2.6 Social Media for Business Its common knowledge that businesses that offers good customer service, and pay attention to their target audiences

' Social interaction is fundamental to businesses. '

needs, find the most success. Businesses traditionally do this by using the basic rule, namely getting to know their customers. From small corner shops that greet visitors by name to large corporations doing market research. This happens because they are being social in getting to know people. Businesses that are social will have a greater

Social Media's Global View :

Global Social Media Checkup 2010

opportunity to learn about their customers, get product feedback and recommendations, as well as build long-term relationships. Using SM tools in precisely the same way is, in theory, no different. However, there continues to be a common view in the business community that social media tools are the new venue to publish marketing content.

Social sites are two-way communication channels and exist for the creation and sharing of content, not for the sole purpose of publishing the distribution of marketing products, which implies one-way communication.

Sharing is interacting and interaction is fundamental to businesses. For any business to use social media effectively they FIRST have to create content that people find VALUE in before they (people) would want to share it with others.

For example, if a company blogs about 'The top ten ways to plant an Organic Garden!' that would be content that people may find value in, but marketing your garden products in a blog post is advertising and so we are back to one-

Create a content strategy Why are people interested in your organization ?

What content creates conversation?

What content could create community?

What can the community create for your content? (Collaborate, engage and empower)

way communication. (Having an ad banner thatĘźs marketing a product or service is ok, just as long as it is not apart of the main blog post.) When value is created it is more often then not to be shared, reposted and promoted, at no extra

What added value can your content offer?

cost for others and that in return creates trust and value for your business.

What effect does the medium have?

Any business that wants to use social media in order to grow its business should remember that the goal in using these platforms is to create value content that leads to interaction with others. Consider sharing and not publishing communication, instead of marketing, in building longer lasting customer relationships.

Creating value content that leads to interaction among consumers is only part of what business should consider. It is also important for businesses to find out who their biggest influencers are. Indeed, as it has been said: "Nothing

Design a list of what your audience would be interested in. Not everything works on the first try but don't give up. It takes work and time to get results.

Also remember to include content that' age specific.

speaks louder than someone who's influential and is a raving fan of your business. And you've got customers that have the potential to be your raving fans." (10) 10. Jack Humphrey, Building true social authority, (March, 2010)

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

31

PART ONE - Chapter Two

Literature Review

An Analysis of Social Media in Building better Customer Relationships

Social Media for Business SM Integration As social media matures and begins to play a greater role in marketing campaigns businesses are searching for increasingly effective ways to integrate social media tools into different channels. The process of integration is both incremental as well as instructive, considering that it is all about people, community, relationships and engagement.

integration often happens in stages. Listening platforms such as Twitter Blogging Video Sharing

search and Google alerts can help in keeping track of conversations about

Blogging RSS

on your business.

Once businesses are ready to participate in social media, the next step is to Chat Rooms

businesses can create valuable content and monitor audience engagement.

followers will provide management with a view of the effects of its presence and participation.

Key Social Platforms

Podcasts

Micro Blogging

Widgets Social Networking

- Humanizing the Brand and Defining the Experience.

- Community

Message Boards

Socializing media, where businesses pay greater attention to the audience, results in communication that becomes in a way to 'humanize' the process.

- Finding a Voice and a Sense of Purpose - Turning words into Actions

This stage is more about creating a presence and less about strategic engagement. Analyzing the amount of traffic and size of connections of

- Socializing Media

Photo Sharing

YOU! Gathering reports on those conversations will provide you with

create accounts across a selected few social networking sites where

- Observer and Report - Setting the Stage + Dress Rehearsal

Observing and reporting is an excellent entry point in this environment as

information that can be important when analyzing the social media impact

The 10 Stages of Social Media Business Integration

- Social Darwinism - The Socialization of Business Process - Business Performance Metrics.

(Brian Solis, Jan. 2010) Figure 2.13 Key Social Media platforms

When businesses 'humanize' communications they risk finding their voice, as well as purpose, in becoming relevant actors on the web. Aptly put, "It reflects the exploration of goals, objectives, and value implementation."(11)

11. Brian Solis, The ten stages of Social media Business Integration, mashable.com, Jan, 2010

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

32

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media for Business Integrating SM tools

When companies make the choice to integrate social media into their marketing plan they usually forget about their

Are social media tools free?

main portal namely, the website. Integrating social media tools into traditional marketing, whether it's online or offline,

Most of the social media tools are in fact free to use, but there is cost involved with social media marketing.

doesnʼt necessarily mean changing your entire website. "If there are solid business reasons for maintaining your site as it is, you should be strategic in how you introduce social media tools into your site rather than turning away from it." says Aliza Sherman from Conversify.com. And the best way is to slowly integrate social media tools it into your existing methods.

Integration: The simplest way to show that your company is engaged in social media is to display them onto your website with 'button-like' icons that represents each social media channel link.

Facebook

Twitter

Contact

RSS subscription Feed

While some companies are hesitant to pay for a social media agency, often times this will save the company internal resources and provide them with strategy, direction, and results.

Just because it's free doesnʼt always mean effective.

Figure 2.14 Photo How to place SM buttons photoshoptuts.com

Importing: Custom applications, like widgets, allow you to import dynamic content from your social media tools into specific areas of your website. For example, sites such as the Twitter badge or Facebook Fan widget or third party players such as Widgetbox.

Select your Primary Website: Corporate website, Blog, Facebook Page, etc.

Use Your Channels to Engage and Drive Traffic

A Social Media Report by ©Sondra L. Duckert

Just like in PR, you pay for the time and expertise of staff to brand, promote, and develop quality content.

Lisa Braziel, Busting the most common social media myths

"Social media can help grow your brand, strengthen the connection between you and your customers and keep you grounded and aware of what people really think about your company. Itʼs well worth the time invested."

An Analysis of Social Media in Building better Customer Relationships

33

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media for Business Publish a blog post and let your networks know about it and invite them to subscribe via Facebook, Twitter, on your skype status, or via a newsletter etc. Another important and often missing aspect is your availability and effort to actually listen to what your target groups communicate. Active (social media) listening is a key to relationship building and requires openness and readiness to hear negative feedback. Remember that many of the same rules in traditional media still apply online. Know your customers and have a solid SM marketing strategy.

Exporting: Empower your visitors to share your value content with utilities such as Tweetmeme, AddThis and ShareThis. Using feeds will automatically publish your blog posts and website content to your social media channels and cross-publish amongst all of your channels making the content exchange multidirectional. Facebook 'Like' button and Twitter's 'Share button' are the two most popular interaction tools.

Build your SM Profile with these 6 Tips : 1. ACTIVE PARTICIPATION Social media encourages contributions and feedback from everyone who is interested in participating. The line between media and audience becomes less distinct.

2. OPENNESS Social media is about active feedback and participation of its users. Encourage commenting, and sharing of information.

3. CONVERSATION Social media is about creating two-way conversations. Don't be afraid to join in.

Figure 2.15 Where to place Twitter and Facebook badges from Mashable.com

Figure 2.16 Facebook like button. from daggle.com

Enhancing: Video players, audio players, even slideshow and document players can all be embedded into your website, however, keep in mind that your web development platform will need to support javascript and possibly Flash to allow the players to show on your site.

4. COMMUNITY Communities are created where users with similar interests share information which leads to more open communication. " 5. CONNECTEDNESS Make use of links to other sites, resources and people. SM is all about staying connected to others 6. EFFECTIVE COMMUNICATION Communication is an integral part of building relationships and its a good way to make new friends. They may benefit you in the future.

According to Aliza Sherham of Conversify.com: social media tools can enhance website features, replace them entirely, or do a little of both. But ultimately the integration should be done strategically with an eye toward making both your website and your social media channels more effective.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

34

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

2.7 Social Media Marketing / Engagement "I'm a leader, and I want to share"

Making Social Media work for your company.

Solution: Create a Blog, Twitter, Podcast.

"I need to know where we can share online content to build traffic. "

Solution: Digg, Reddit, Newsvine, StumbleUpon, YouTube, Flicker, Vimeo

Solution: Technorati, Twitter, Amazon.

Comments on Digg, Reddit, YouTube, StumbleUpon, Newsvine "I want to know what's being said online about us and would like to respond. "

Solution: LinkedIn, Facebook, Twitter, YouTube.

Figure 2.17 Social media marketing scheme

A Social Media Report by ŠSondra L. Duckert

UPPER MANAGEMENT

MARKETING

PR

SALES / HR "I want tools to network, so I can create new business opportunities and find new employees."

An Analysis of Social Media in Building better Customer Relationships

35

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media Marketing / Engagement Social media strategies are not cookie cutter so one size fits all doesn't apply. Make it personal. Mapping out a appropriate strategy before starting a blog for example will be time well spent and will also help in getting to know your customers. Are they even engaged by social media? How do they feel about your brand now? What are the opportunities?

The time and planning that it takes to get started requires discipline to see past the promise of the latest, greatest technology that will save the day. However a well-defined strategy will take you even further. Social media holds a great deal of promise for many but it requires an unrelenting passion and understanding of your community.

Areas where companies are using SM tools.

Social Media Insights 75% of companies consider using data about their online visitors and their behavior when making decisions about marketing efforts.

74% of companies use data from Email offers about online visitors and their behavior when planning marketing strategies.

84% of 155 respondents Plan to use Mobile, Rich media, or Social Media Marketing in the next 12 months.

47% of 155 respondents is currently using Social Media Marketing. 23% plan to use in the next 12 months.

58% of North America and 34% of Europe companies are currently using or planning to use social media marketing tactics.

Source: Unica Global Marketing Survey, 2010

Figure 2.18 Organizational departments where soocial media tools are used. From simplyzesty.com

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

36

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media Marketing: Old media vs. New media Traditional Marketing Advertisers

Vs.

Consumers

- While social media marketing is driven by unique characteristics, the marketing evaluation process follows that of traditional media planning. -

What others are saying to each other.

Viral Marketing Advertisers

Consumers

"SM is marketing Word-ofMouth, SM users are more often than not to be the source of new information."

Figure 2.19 Social media, Old marketing vs. New

Today's online activity is a lot more unpredictable and evolving than say ten years ago. Traditional media, until fairly recently, provided the sole opportunity to broadcast messages to target audiences. With today's media platforms the audiences now have the opportunity to say something back. The top-down, 'one to many' of traditional marketing techniques have changed into the 'one to one' which provides the opportunity to listen to what your customers have to say. Lest we forget; they are the ones that will drive your business forward. To clarify: viral marketing is different from traditional marketing in that it is an effective form of word-of-mouth marketing where the process involves crafting a message that is designed to be propagated by its recipients. The key to viral marketing is to gain access

Viral Marketing - How? Use Social networking (Facebook, MySpace) , Social Sharing (YouTube), Social Bookmarking (Digg, StumbleUpon) and Microblogs (Twitter) to reach out to a wider audience.

Example of Viral marketing: "Will it Blend" videos on YouTube.

to key influencers within your target audience. Influencers are individuals or groups of individuals who are opinion leaders and trendsetters and who have the ear of a significant audience. Once the influencers in your market have been identified, you can create a message that said influencers will find valuable enough to pass along to the people that they have influence over.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

37

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Social Media Marketing

Literature Review

"Look for what is already there,

Building Social Authority through Influencers

something that has already taken hold and go there. This is how you get the biggest audience."

Social Media value position: "Sustaining conversations in shaping perceptions by building online communities"

The true value for users of a network is measured by the frequency of engagement with other users.

The value for marketers, is in the endorsements by users, or consumers in the form of friending / following / fans and subscribing that validates their efforts and activates a viral distribution of their brand across other channels.

"As the opportunities to reach customers grow with new technology, so do touch points with your brand. When consistent messaging is developed, remember that search is an important component of that branding initiative. “ This infographic shows how search fits into the customer influence line-up. (Elliance,Inc.) Figure 2.20 Sphere of influence by

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

38

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media and CRM: SCRM Social CRM (Customer Relationship Management) is a fairly new process whereby CRM attempts to integrate data from the social Web with customer relationship efforts. The customer is in control and decides the flow of information.

Companies can participate if the customers let them. "Social brings a new element into CRM because now instead of just dealing with data and information we are dealing with conversations and relationships with the social customer." (12) Social CRM is about conversation between the company and the customer and more importantly between the customers themselves. Companies have the ability to build and extend their relationship with their customers by listening and sometimes engaging customers who are having conversations about them. The

Companies are recognizing the value of communities and see how different types of communities can help their enterprise, such as internal communities, support communities, and branded communities, according to Lauren McKay of CRM magazine. destinationCRM.com.

difference between CRM and Social CRM is that the conversation is the relationship.

Communicating with Communities You can read more about building SCRM communities from CRM online magazine, The Social Media issue. @ nxtbook.com/nxtbooks/crmmedia/ crm0610/index.php#/1/OnePage

Figure 2.21 A visual description of CRM to SCRM by Chess Media Group 12. Jacob Morgan, What is Social CRM? An Introduction, http://www.jmorganmarketing.com/what-is-social-crm-an-introduction/ (Dec. 2009)

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

39

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media and CRM: SCRM Social Media CRM Process

Customer relationships are central to just about everything that's happening on the Internet and new technologies are

- Monitor Social networks:

helping to facilitate these interactions. While there are numerous ways for businesses to engage and interact with

Trends and feedback

customers, problems still exists when defining how companies can benefit from social networks vs. online

- Offer a Community

communities. Social networks makes it possible for people to interact with one another mainly as nonwork- related

Run a business community on

relationships. Whereas online communities are based on the same concept with the exception that the community is

Facebook, for example in helping

there to help solve specific business goals and objectives. "For example, when Dell uses community software to

to understand your customers and

provide support for its customers, the goals are to sell more hardware, reduce costs, and raise awareness of new products. There is some social aspect, but that is not the purpose of that community." (Buch, Sep. 2010)

their behaviors.

- Own the Data Through the data can you derive value from your investment - Customer Intelligence.

You can gain a depth of knowledge about your customers where you can gain substantial intelligence about them. Here you can also find out your most influential customers.

"CRM should integrate with community platform vendors that provide intelligence and analytics to complement that data " (Social Media Marketing CRM, You don't want social CRM, You want integrated customer intelligence, Buch, Sep. 2010)

Figure 2.22 Visual Social CRM process image by thaicrmsoftware.com

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

40

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review What is Mobile marketing?

Social Media and Mobile Marketing Social networks are fast becoming the primary way mobile users exchange information. The top four mobile activities that U.S. users are engaged in are in order: playing games (55%), listening to music (52%), purchasing apps (39%) and watching videos (36%) (13). Edison Research expects the growth to continue in the coming years with the popularity of iPads and e-readers changing the way consumers think about mobility. "By 2012, an estimated 10 trillion text messages will be sent and delivered globally."(punchkickinteractive.com) , Companies wanting to engage with more customers through mobile marketing can use some of the same goals and objectives developed with their social media strategy by offering value content to engage consumers in helping to increase their brand awareness. Companies who are creating or sponsoring apps to attract customers are aware of the

It's the use of cell phone and other mobile devices to market a brand or message, and plays a powerful role in an integrated marketing strategy.

Includes: SMS Text Messages Campaigns Mobile Web Development iPhone App Development Custom Software Development Bluetooth Broadcasting Advergames Mobile Video Flash Lite Content. (punchkickinteractive.com)

endless number of possibilities to engage customers. "Games, music, social networking, weather and maps lead in app usage." If your customers find value in your offers they will be more than happy to continue the relationship.

Mobile Marketing Statistics - Cell phone subscriptions will top 5 billion globally before 2011

Mobile Value Proposition - Measurement: Collect the right data - Analytics: Data-driven Decisions - Optimization: Compelling Experiences

(Source: International Telecommunication Union)

- Four out of five teens carry a wireless device, and the majority (57%) view their cell phone as the key to their social life.

(Source: CTIA survey, Teenagers: A Generation Unplugged)

Figure 2.23 Graph from eMarketer.com estimating the movement of mobile usage.

- The global mobile advertising market will be valued at over $16 billion by 2011 Source: M:Metrics, Common Short Codes: Cracking the Mobile Marketing Code

13 Source: Edison Reseach and Abritron, 'The Social Habit - Frequent Social Networkers,' June, 17, 2010

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

41

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media and Mobile Marketing Social and mobile marketing together has become a resilient and effective tool in building customer relationships through customer experience while also creating brand loyalty, positioning and differentiation. With mobile marketing it is possible for brands to flourish within the confines of a mobile application and gives social media another viable channel through which to engage with customers. The introduction of the smart phone, and the rise of location-

GAP used mobile marketing and social media to attract entrants to its Casting Call for children.

based marketing, also gives businesses the chance to interact with the on-the-go consumers.

Over 1 million responded.

The popularity of mobile rich-media has not diminished the importance of SMS messaging. SMS continues to plays a

With it's mobile app, parents were able upload an entry photo and vote. A microsite was provided that linked GAP's Facebook and Twitter pages where connections encouraged other family member and friends to 'follower' and vote for their favorite photo.

role in the use of mobile phones as a primary Internet device. The texting audience continues to grow at an incredible rate. The global market appetite for ad support of mobile messaging will reach $12 billion US dollars, according to eMarketer projects. An astounding increase from $1.5 billion in 2006!

"Whatʼs perhaps one of the most interesting reasons to advertise via SMS is that “about 90% of all text messages are read within three minutes of their delivery, and over 99% of all text messages are read by the recipient,” according to a whitepaper on conversational advertising [PDF] by SinglePoint. The immediacy of SMS is currently unparalleled by any other marketing channel." (14) Conversational Advertising by Single Point outlines why the popularity of mobile Internet usage is directly associated with social networking. 80% of social networking activity on mobile is associated with responding to feeds and status

"A consumer-generated media contest like Gap's Casting Call enfolds the consumer in the marketing process, and its digital ad campaign demonstrates an appreciation for the types of media that matter to that current or potential customer. Together they form a progressive, multi-layered effort perfectly tailored to the needs of both parties."

reports. The rise of social networking on mobile is confirmation that the mobile device is the first screen when it comes to communication and further verification that communication can and does occur in less than 140 characters.

(ClickZ.com, Tessa Wegert, Oct. 7, 2010)

And while agencies argue that SMS does not offer a sufficient platform to deliver creative rich-media, it delivers a mechanism to be linguistically creative.(SinglePoint, 2010)(15)

14.-15. Conversational Adverstising, Single Point, whitepaper on conversational advertising by Mobile Squared (June, 2010)

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

42

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media and Mobile Marketing Engagement Marketing through Conversational Advertising

Conversational Advertising is an opted-in-database concept whereby brands can establish ongoing relationships with consumers and is mainly used with mobile marketing strategies in mind. Here campaigns represents an 'occasional' touch-point with consumers and therefore is limited in its ability to encourage continuous interaction and engagement.

It encourages brands to regularly communicate with consumers to ensure that it remain 'front of mind'.

Some brands will be more engaging than others. Brands based on lifestyle and preferences (Nike, MTV, Starbucks) tend to develop more ongoing conversations year-round than seasonal brands like insurance companies.

"Beyond the traditional areas of voice and messaging, the widespread global adoption of the mobile Internet can be directly associated with social networking – the webʼs version of communicating."

- Conversational Advertising is the agreed messaging-based communication between the consumer and a brand to deliver consumer benefits. -

(SinglePoint, Conversational Advertising and consumerʼs mobile behavior, June 2010)

- Conversational Advertising Emerges as a $2.04 Billion Market in Five Years -

"An engaged consumer represents a higher response rate,”

- Conversation Advertising :

observed Nick Lane, analyst mobileSQUARED and the reports

How messaging looks set to become the most powerful advertising channel.

author. “By generating an opt-in database, the likelihood of developing a response from a consumer into a conversation

(SinglePoint,June 2010)

increases dramatically, especially when consumers are able to dictate the terms of engagement with brands. Conversational Advertising addresses the existing messaging practices which are fleeting and largely ineffective beyond the realm of a campaign.” (AdOps online, June 2010)

Figure 2.24 Single point Mobile Squared conversational cloud image

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

43

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

2.8 Social Media Measurement Information on how companies can measure the success of their SM strategy as well as the perspective of what can or should be measured is limited in its explanation and functionality. "Defining strategic objectives and relevant success metrics for social media campaigns will give marketers the knowledge necessary to determine the financial impact of social media marketing efforts."(16) Hits or clicks were once upon a time thought of as valuable counters for measuring success of online campaigns. However, with over 100 ways to measure SM platforms, clicks are no longer the main standard of metric. Today's focus has been placed on tracking the behavior (actionable clicks) of users as they establish more connections with products and brands. Measuring how SM impacts Key Performance Indicators (KPI), such as sales, profits as well as customer retention and satisfaction rates would also be beneficial in monitoring the success of your SM strategy. To do this effectively companies will need to give its (SM strategy) time to develop.

Before starting, take note of: - The number of followers or fans, bookmarks and referrals from social media sites plus existing website traffic.

A few things to Measure ..

-

Reach Conversations Frequency and Traffic Influence Sustainability Sentiment

.... with Tools like: - Alexa - Blogpulse - Compete - Inside Facebook - Quantcast - Social Mention - Technorati - Twittemeter - YouTube Insight

- SEO rankings and referrals, customer satisfaction scores, etc.

- ROI. How much are you paying to acquire customers via other marketing channels? Your advertising budget?

Listen before Engaging BMW's Mini Cooper team used social media monitoring (listening) in order to develop critical insights from the online audience. These consumer insights were then used to determine the direction and message of their entire marketing mix, both traditional and digital.

Horatiu B., BMW, bmwblog.com/ (2009)

Figure 2.25 Social media marketing process.

16. Karen O'Brien and Chris Terschluse, Determining the Impact of Customer Relationships (Sept. 2009)

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

44

PART ONE - Chapter Two

Literature Review

An Analysis of Social Media in Building better Customer Relationships

Social Media Measurement

Measuring for Success

When measuring the effects of social media, monitoring SM website traffic is an obvious choice for companies as it

Which ever measurement tools is selected depends on the business goals of the company.

can be seen as a reflection of their achievement in creating a web presence. Nevertheless, measuring interaction is more valuable for reasons that it can be anything from leaving comments, to participating in chat forum or leaving customer reviews. This measurement reveals where high valuable customers are and says something about the kind of traffic the website is attracting.

Google's Feedburner can track subscribers and reach.

Reach is the total number of

The impact of customer relationships via social media can be measured in terms of the media, the targeted

people who have taken action

customers, and also total impact on business outcomes such as sales and market share. Website measuring tools can provide valuable quantitative insight (what, when, where), as well as rich qualitative insight (how & why).

(17)

Quantitative analytic tools such as Google analytics can track metrics such as traffic, click through rate, and bounce

— viewed or clicked — on the content in your feed.

Metrics Mantra, Laura Lee S. Dooley, WRI

rate, as well as providing information about the number of people visiting the site, length of page view, and click path.

The data effectively measures the frequency of the audienceʼs media use and reach, and can easily be monitored in gathering information about the user overall experience. These metrics are also essential in assessing SM marketing

"Realize that the social media

campaign efforts in identifying the number of sales directly related from the effects of social media.

success equation isn't big move on the chess board, it's little

Social media analytics provide qualitative results by measuring the activities and behavior of users by tracking

moves on the chess every day

trending topics of conversation, brand identity or association, ratings and comment reviews. A SM analytic tool

that eventually add up to a

displays 'conversational' data that can be used in determining the amount of influence and engagement of its audience.

major shift."

- Jay Baer

Fiureg 2.26 Photo credit: Jozsef Szasz-Fabian edited by Daniele Bazzano, 17. Karen O'Brien and Chris Terschluse, Determining the Impact of Customer Relationships (Sept. 2009)

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

45

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media Measurement - Tools Essential Tools Other free Analytic tools:

Who's coming to your site?

When measuring social media activities marketers should consider combining both web analytic tools with social media analytic tools.

crazyegg.com enquisite.com woopra.com

Web Analytic Tools 1. Google Analytics is a free web analytic service. It is the enterprise-class web analytics solution that gives you rich insights into your website traffic and marketing effectiveness. Powerful, flexible and easy-to-use features now let you see and analyze your traffic data in an entirely new way. With Google Analytics, you're more prepared to write better-targeted ads, strengthen your marketing initiatives and create higher converting websites. (google.com) - Benchmarking is an optional Google Analytics service that shows how your website's statistics compare against other industry verticals. In the beta version of this service, you are able to compare your site's Visits, Pageviews, Pages per Visit, Bounce Rate, Average Time on Site, and New Visits data against benchmark data from categories of other participating websites. You can use this data to gain broader context for your site so you can easier identify additional opportunities to improve your site's metrics.

2. Omniture is a subscription based enterprise class web analytics service that integrates analytics for social websites Twitter and Facebook and has advance video features and mobile analytics. Contact for pricing and product demo.

3. Webtrends has a powerful tool called Analytics 9. It provides some of the same features as traditional analytical tools except that it features a unique data mining and analysis tool. Contact webtrends for pricing information.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

46

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media Measurement - Tools Social Media Analytic Tools 1. Radian6 is a Desktop dashboard SM monitoring tool with an intuitive interface. It offers real-time social media listening analysis, social media metrics. CRM capabilities, team collaborations and workflow. Radian6 dashboard pricing starts at $600 per month.

2. Visible Technologies offers a wide range of tools such as truVoice and truPulse that monitor conversations and allow for direct engagement via their monitoring tools.

3. BuzzMetrics is a SM tool offered by Nielsen. My BuzzMetrics is a fully customizable dashboard that allows brand managers to easily monitor and analyze whatĘźs being said online about their brand or organization from a wide range of CGM sources. Accessible via a Web interface, My BuzzMetrics provides real-time analysis and segmentation capabilities, at-a-glance-metrics. (en-us.nielsen.com.com) Whichever measurement tool is selected depends on the business goals of the company. What works for one company may not necessarily work for another?

The last decade has been about customer acquisition and retention. Today's focus is about customer engagement strategies and measuring SM campaigns using web-based analytical tools in measuring the effectiveness of your social media marketing efforts. Measuring actionable items such as RSS feeds subscriptions, social sharing buttons on Facebook and Twitter, downloads and uploads provides a marketer with valuable information in determining the effectiveness of a content strategy. The evaluation of SM marketing efforts gives marketers a reference point that leads to SM Optimization (SMO). "The concept behind SMO is simple: implement changes to optimize a site so that it is more easily linked to, more highly visible in social media searches on custom search engines and more frequently included in relevant posts on blogs, podcasts and and vlogs." (Rohit Bhargava)

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

47

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships Mobile Marketing

Social Media Measurement

Literature Review Short list of Search Engines

Search Engine Optimization (SEO)

Ask.com

Search Engine Optimization is the process of improving visibility and ranking in search engine results. It refers to

Baidu (Chinese, Japanese)

the collection of techniques and practices that allows a site to get more traffic from search engines (Google, Yahoo,

Bing

(known as Ask Jeeves in the UK)

Microsoft). SEO can be divided into two main areas: off-page SEO (work that takes place separate from the website) and on-page SEO (website changes to make your website rank better). A website is not fully optimized

(formerly MSN Search and Live Search)

Duck Duck Go Google

for search engines unless it employs both on and off-page SEO. (tizag.com)

Kosmix

SEO is not purchasing the number #1 sponsored link through Google Adwords. SEO is not ranking #1 for your

Sogou (Chinese)

companyĘźs name. To start choose a few key words (3 or 4 per page) that you would like your site to rank well with.

Yodao (Chinese)

Using hundreds of words will not work as search engines algorithms are always evolving. Use unique or branding

Yahoo! Search

words that are specific to your company.

Yandex (Russian) Yebo!

To get start quickly here are a few tips that companies can do with ease.

Paid results are listing that - Customize all of your title tags inserting keywords

require a fee for the search engines to list their link.

PPC- Pay per click.

based on the pages.

- Customize your content.

- Get content on all your pages in.

Organic results are collected

- Link, link, and link some more. Add links

by search engines' web crawlers and ranked according to relevance to search terms.

People click on the organic results 75% of the time as compared to only 25% for paid results. (Hubspot, 2010)

throughout your content to other pages and products of your site. Link back and forth between pages, add links to related products, link to your blog and from your blog. This is also how you build PageRank Authority.

- Blog and create valuable content.

Figure 2.27 SEO page defined by socialmediaexplorer.com

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

48

PART ONE - Chapter Two

Literature Review

An Analysis of Social Media in Building better Customer Relationships Mobile Marketing

Social Media Measurement Social Media ROI - Measuring the unmeasurable

"You can't manage, what you can't measure."

"You don't make money with Social media. You make money by doing business with people that

Metrics Mantra, Laura Lee S. Dooley, WRI

know, like and trust you. (upsidedowniceberg.com, 2009)

Return on Investment is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. And it is difficult to measure when connected to SM! Social media is a secondary drive of traffic and therefore difficult to measure in terms of its potential economic value.

Moreover, the true value of SM is directly related to Internet searching as they go hand in hand. If your social media campaign is creating a lot of noise on search engines, this could impact how much traffic your performance campaigns generate, that then could possibly result into sales.

Advertisers seek innovative ways to drive consumer engagement with greater efficiency, and the integration of social media and search marketing offers a compelling opportunity for advertisers to actively participate in social media and make their brands a natural part of online conversation. Advertisers can then capture this audience efficiently with paid search, and drive a better return on investment (ROI) (C.Copeland, GroupM Search, 2009)

Figure 2.28 Measuring ROI by monitoring SM actions. Source by Twenty two Squared

Social Media ROI A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

49

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships Mobile Marketing

Literature Review

Social Media Measurement

A list of social interaction metrics / KPIs

Social Media ROI - Measuring the unmeasurable

1.

2.

3.

4.

5.

6.

7.

8.

9.

What is it exactly that companies want to measure? The social or the media?

- Media Objectives: reach, awareness, coverage, continuity Measures: # of visitors, # of page views, amount of time on site, conversions (leads/subscriptions/sponsorships)

10.

11.

- Social

12.

Objectives: loyalty, advocacy, trust, influence, engagement

13.

14.

15.

Measures: sentiment, comments, feedbacks, mentions, readership (18) Organizations will need to define relevant success metrics that translate into a business context that influences its ROI. Quantitative - sales, new leads, new qualified subscribers, etc.

"

- Increase offline sales by using SM channels for a promotional campaign. Issue printable campaign vouchers and track where offline sales originate.

" "

- Increase online sales by using platforms like Twitter to notify customers about special promotions and track, which sales and the number of new customer attributed by Twitter.

16.

17.

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

29.

30.

Qualitative - satisfaction, loyalty, authority, interaction, feedback - Reward customers who mention your brand or company on Twitter. Measure the amount of positive comments sent to customers per week and also the number of conversations started from comments.

- Engaging with customers using SM and ask what they want from you as a company. The chance increases that you will receive a number of good suggestions that the company had not thought of before.

31.

32.

33.

34.

35.

Alerts (register and response rates / post click activity) Bookmarks (onsite, offsite) Comments Downloads Email subscriptions Fans (of something / someone) Favorites Feedback (via the site) Followers (follow something / someone) Forward to a friend Groups (create / join / total number of groups / group activity) Install widget (on a blog page, Facebook, etc) Invite / Refer (a friend) Key page activity (post-activity) Love / Like this (a simpler form of rating something) Messaging (onsite) Personalization (pages, display) Posts Profile (e.g. update avatar, bio, links, email, customization, etc) Print page Ratings Registered users (new / total / active / dormant / churn) Report spam / abuse Reviews Settings Social media sharing / participation (activity on key social media sites, e.g. Facebook, Twitter, Digg, etc) Tagging (user-generated metadata) Testimonials Time spent on key pages Time spent on site (by source / by entry page) Total contributors (and % active contributors) Uploads (add an item, e.g. articles, links, images, videos) Views (videos, ads, rich images) Widgets (number of new widgets users / embedded widgets) Wishlists (save an item to wishlist)

(From: econsultancy.com)

18 Source: Lumension Security, http://www.slideshare.net/LumensionSecurity/the-greatest-question-since-the-meaning-oflife-what-is-the-roi-of-social-media

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

50

PART ONE - Chapter Two

An Analysis of Social Media in Building better Customer Relationships Mobile Marketing

Literature Review

Objectives and Outcomes Social media ROI is difficult to quantify because the returns are not direct or immediate. Chatting with users on Twitter does not appear beneficial, however the building up of that relationship can give business leverage in the future.

Companies cannot measure every actionable click but they can place some focus on improving its ROI efficiency by improving the rate of benefits received. The time or money spent by consumers networking can result in someone

"My friends, your friends and those we collectively respect."

(Lumension Security, (2008)

recommending your website to another person without any suggestion on your part.

Social media marketing, like traditional marketing can help organizations build brand awareness, impact sales and extend its reach to new customers by encouraging them to invest at the place where they actually spend their time.

Marketers can analyze the influence of actionable actions from social media platforms by tapping into customer relationships using traditional web analytics and social media measurements. Their marketing strategy and objectives and moreover, well-defined metrics will help in assessing the financial impact that can come from cost reductions, increased sales and a net increase in the acquisitions of new customers.

“You can’t just say it, you have to get the people to say it to each other.” (Jim Farley, 2010)

'Socialnomics'

The message is distributed across Social Media channels.

Figure 2.29 Typical SM message distribution route.

Image source: SLDuckert

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

51

An Analysis of Social Media in Building better Customer Relationships

3. The Value of Social Media PART ONE: Chapter Three

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

PART ONE - Chapter Three

An Analysis of Social Media in Building better Customer Relationships

Literature Review

The Value of Social Media Econsultancy published a study in February 2010, analyzing the value of social media where over 400 companies participated in an online survey. The research looked at to what extent social media marketing (SMM) was carried out by organizations, and what tactics were used to achieve their business objectives. It also examined how companies measured the value of SM and the challenges they faced. "Companies are using social media to help meet a number of business objectives, including monetization of this channel through generation of sales and leads. As well as helping to meet harder financial goals, companies are also using social media marketing to achieve softer objectives such as improved brand awareness and reputation." However, a number of companies had difficulty measuring the success of their SMM strategy in meeting both hard and soft business objectives. The results revealed that 61% of the organizations surveyed said that their organizations are poor (34%) at measuring ROI from social media while 27%

How to make MONEY with Social media Social media actions PAY by getting more people Talking, in more Places, more Times, sparking more Purchases, for more Money.

The more companies get people to participate and create, the more they will get in return. (twenty two squared, 2010)

stated that they were very poor at measuring ROI from social media. Poor measuring results could be an indication of a company not knowing exactly what to measure and thus measures every action or that they have not given their SM By doing more of this

marketing strategy time to work resulting in premature figures.

Some well published facts regarding organizations and social media: Facebook is the most commonly used social media channel for businesses, with 85% of companies using this site as part of their marketing strategy. This is followed by Twitter (77%), LinkedIn (58%) and YouTube (49%).

Over two-thirds of company respondents (67%) say that the amount of money spent on social media has increased since last year, while 30% say it has stayed the same.

81% of companies expect social media budgets to increase over the next year, while 18% expect it to stay the same. (Econsultancy, 2010) Organizations continue to be bewildered in determining the value of SM in brand relationship, engagement and social listening and how it contributes to their bottom line. Their approach in trying to quantify the impact of social

(twenty two squared, 2010)

media will need to take on a new approach in how impact is measured, and without a standard method in place this only hampers potential for success.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

53

PART ONE - Chapter Three

Literature Review

An Analysis of Social Media in Building better Customer Relationships

The Value of Social Media Overall business objectives (company perspective) The figure below shows the majority of companies value hard, tangible financial objectives over softer brand metrics.

When asked to indicate the three most valued business objectives, more than two-thirds of company respondents (69%) said their organizations value increased sales, and 65% cite increased profitability.

Methodology note: respondents could check up to three options (Econsultancy, 2010)

Increased sales by 69% Increased profitability by 65% Better customer retention by 57% Higher customer satisfaction / advocacy by 53% More brand recognition by 49% Better brand reputation by 48% Increased traffic to Web site by 46% Reduced costs by 18% Increased recognition as an ethical business by 10% Recruitment of the best possible people by 9% Better staff retention by 5% Other 3% Fig 3.1 Source: Econsultancy

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

54

PART ONE - Chapter Three

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media Rewards and Risks Social Media Impact and Rewards Businesses today are coming to terms that implementing social media is no longer just an option but rather a must in order to keep up with their competition. The potential for utilizing social media tools within key business areas such as R&D, marketing, human resources, customer service and sales can stimulate innovation, create brand recognition, hire employees, generate revenue, and improve customer satisfaction. According to a 2009 study by ENGAGEMENT db found that the most valuable brands in the world are experiencing a direct correlation between top financial performance and deep social media engagement. (19) It furthers states that businesses that aggressively embrace

"Of the Fortune Global 100 companies, 65% have active Twitter accounts, 54% have Facebook fan pages, 50% have YouTube video channels and 33% have corporate blogs." (20)

social media as part of their strategy are more financially successful. Companies are not only seeing increases in their ROI but also in revenue. Furthermore, companies that have found success using social media have done so by capitalizing on its creativity, all the while recognizing that the prevalent link among all forms of social media is the individual users. Content created and managed by SM users, who are often the influencers of your brand or product, leverages the tools in delivering their message that is subsequently distributed across social media channels.

By using SM companies have the opportunity to enjoy tangible benefits (increases in brand recognition, sale, SEO, customer satisfaction, etc.) by placing SM in functional areas where they can monitor not only their own progression but also their competitions and customers. ʻThis allows engaged businesses to be on top of any changes that may be needed and to proactively make appropriate adjustments to striptease products or services.ʼ (ENGAGEMENT db, 2010) Social mediasʼ popularity, ease of use and measurement capabilities allows it to reach a larger audience in an instant.

It can be used as a powerful tool for businesses to attract and engage their customers, employees and even stakeholders. However it is not without its risks, vulnerabilities and challenges.

19.ENGAGEMENTdb, The Worldʼs Most Valuable Brands. Whoʼs Most Engaged? Ranking the Top 100 Global Brands, www.engagementdb.com/downloads/ ENGAGEMENTdb_Report_2009.pdf 20. Burson-Marsteller, The Global Social Media Check-up Insights: From the Burson-Marsteller Evidence-based Communications Group, www.burson-marsteller.com/Innovation_and_insights/blogs_and_podcasts/BM_Blog/Documents/Burson-Marsteller%202010%20Global%20Social%20Media %20Check-up%20white%20paper.pdf

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

55

PART ONE - Chapter Three

An Analysis of Social Media in Building better Customer Relationships

Literature Review

Social Media Rewards and Risks Social Media Risks Social media tools are more likely to be introduced by marketing or customer service departments. They are unique in that they donʼt need any new infrastructure or special programming from the IT department in order to use them. As with any new strategy an organization that uses SM should take precautionary measures considering the risks and

An extensive list of social media guidelines from various companies complied by the Social Media Governance website - an online database of over 100 social media policies.

vulnerabilities when SM is used as a business tool to communicate and engage with customers and clients alike.

Therefore it is important to have a social media strategy and a plan to address the risks that coexist with the used technology. For example, the risks of employees accessing social media sites while on the corporate network or employees who access social media sites from their corporate issued Blackberry, iPhone or other business only issued devices. It is widely known that some mobile devices are not typically subjected to the same monitoring

See Appendix A: Social Media Policy Appendix B: Trouble Shooting Social Media

controls as company issued computers. Vulnerabilities can include insecure applications present on a personal SM page allowing outsiders access to valuable company information and undesirable exposure on a corporate network.

Another area for concern is what policies should be in place for those employees that engage in the personal use of SM while at home when all of the same risks that exist for personal use of SM sites in the workplace also exist when employees access social media sites from home or other areas not controlled by the organization or its policies.

The use of social media has become a recognizable force that has far-reaching implications for organizations and customers alike. While this emerging communication technology offers great opportunities to interact with customers in new and exciting ways, there are exceptional risks to those who adopt this technology without a clear strategy that addresses both the benefits and the risks. There are also significant risks and potential opportunity costs for those who think that ignoring this revolution in communication is the appropriate way to avoid the risks it presents. The only viable approach is for each enterprise to engage all relevant stakeholders and to establish a strategy and associated policies that address the pertinent issues. (ENGAGEMENT db, 2010) (21)

A list of the Threats and vulnerabilities includes but not limited to the: 1. Introduction of viruses and malware.

2. Fraudulent exposure to customers data.

3. Unclear or undefined content rights to information posted on SM sites.

4. Excessive employee use of SM in the workplace.

5. Employees posting company pictures or information without company approval. .... and more

21.ENGAGEMENTdb, The Worldʼs Most Valuable Brands. Whoʼs Most Engaged? Ranking the Top 100 Global Brands, www.engagementdb.com/ downloads/ENGAGEMENTdb_Report_2009.pdf

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

56

An Analysis of Social Media in Building better Customer Relationships

4. Methodology PART TWO: Chapter Four

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

PART TWO - Chapter Four

An Analysis of Social Media in Building better Customer Relationships

Methodology

Methodology As companies continue to search for and develop new ways to engage their target audience, social media is slowly being adopted as a new marketing strategy. The ease and use of SM tools has led to the widespread adoption of the social web among consumers with practically no monetary resources needed to utilize these new mediums. However, many organizations still doubt its ability to build their online reputation, increase trust and generate business with customers, while on the other hand acknowledging its power and impact. As the utilization of social media platforms continues to be valued as an experimental tactic rather than a long-term growth strategy, organizations will resist in designating it as an active component of marketing strategies.

This section follows with two hypotheses: Research Area #1. Determine if companies that engage with customers via social media are more or less likely to establish a relationship that's beneficial to both parties. "

Hypothesis: Social media platforms can give businesses the 'greatest' opportunity to engage in

!

collaborative influence with their customers.

Research Area #2. Determine that social media does not give businesses the opportunity to engage in collaborative influence.

" !

Hypothesis: Companies that interact with customers using social media are more likely to establish a relationship that's beneficial to both parties.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

58

PART TWO - Chapter Four

An Analysis of Social Media in Building better Customer Relationships

Methodology

Research Design

The Social Media Survey is

This social media project was created to explore the power and impact of the social media web in building better customer relationships. It is based on an independent survey of potential Rema 1000's customers to investigate how people make use of

a non-scientific survey that was conducted for the sole purpose for comparison and relation to this study.

social media and social networking sites. The analyzed data was used to determine if there was evidence that in fact demonstrates positive results from an organizations' use of social media in attracting and engaging users to its site, meaning, does social media help in building long term customer relationships?

The conclusions drawn as to the success of social media integration in building long-term customer relationships, and whether or not this relationship will develop into profits for the organization, were a result of three important guidelines that successful companies follow: 1. Specified which social media platform is being used and for which purpose.

2. Provided content that customers valued.

3. Engaged with customers on the social media platforms that they use, rather than forcing customers to come to their platform.

Data Collection Procedures 1. Type of data collection. A short questionnaire of social media habits and usage was delivered via a hyperlink within e-mails and a posted link using a very popular social media platform. This survey method was used because of its ease of distribution and the ability to ensure that a high number of participants from the recommended target group were reached.

The requirements for participation were that respondents have some familiarity with social media technologies and that they lived in Denmark.

2. Research participants. Out of 100-targeted potential participants 65 anonymously completed all questions of the survey.

The study was a 16-question questionnaire comprised of multiple-choice, grid and check boxes.

The survey was conducted: September 22, through October 11, 2010.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

59

PART TWO - Chapter Four

An Analysis of Social Media in Building better Customer Relationships

Methodology

Method and Analysis The method of analysis was divided into two sections: 1. The profiling of social media usage.

2. A look at social media communications and interactions.

The data was collected using online software Survey gizmo, to prepare reports and generate results.

- The first two questions were personal questions collected for statistical analysis. This data was used to establish a user profile in reference to age and gender.

- Question three was designed to ascertain the amount of interaction between social media and online retail stores.

- Questions four through seven were designed to determine which social media technologies were in used, if any, how often and for how long per/day were they logged into the sites.

- Questions eight and nine were designed to establish the why and what influences users to engage in SM. - Questions ten and eleven investigated if users of social media would also prefer interacting with Rema 1000 via SM platforms.

- Question twelve investigated which form of social media was most desirable in interacting with Rema 1000.

- Question thirteen references Rema 1000's Facebook 'fan' page.

- Questions fourteen through sixteen are in reference to Rema 1000s image and store comparisons with other discount stores.

The purpose of collecting responses was to show how Internet use is a daily social activity for the surveyed population. These questions were selected to provide supporting evidence / information for the results of the two hypotheses tested.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

60

PART TWO - Chapter Four

An Analysis of Social Media in Building better Customer Relationships

Methodology

Assumptions and Limitations Assumptions. The following assumptions were made in order to confine this study into a realistic work and to sufficiently argue its merits:

1. Most respondents have similar social media habits and share similar preferences.

2. Most have similar levels of access to all social media platforms referenced herein.

3. The respondents have sufficient knowledge and understanding of usage of social media platforms.

Limitations. This research study was conducted in an environment absent of prior work in the specific field of this studyĘźs interest. Given the focus identified by the hypotheses the following limitations are acknowledged as pertaining to this study:

1. No consideration was given to an even demographic distribution of the survey (education, martial status, income or occupation etc.)

2. No consideration was given in distinguishing between Danish and non-danish respondents.

3. Very limited research study's in Scandinavian regarding social media usage and social media statistics from local retail companies.

4. The distribution of the survey was limited to a collected list of email addresses, contact lists and word-of-mouth.

5. The use of a CRM database or Microsoft Excel to further investigate and analyze the responses was not used.

The survey conducted for this report does not include the surveying of retail companies in Denmark and is therefore limited in its analysis from the viewpoint of potential Rema 1000's customers and social media users.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

61

An Analysis of Social Media in Building better Customer Relationships

5. General Findings PART TWO: Chapter Five

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

5.

Findings

General Findings Early in this report some basic descriptive data from Royal Pingdon characterized SM users as mostly educated (40%), 35 - 44 years old where 46 out of every 100 persons using SM are women. The average LinkedIn user is 44, Twitter user is 39, Facebook user 38 and MySpace user is 31 years old. These demographics figures as well as other comparable data will help in providing some insight into whether SM tools can be beneficial in maintaining or strengthening relationship between businesses and their customers.

5.1 Profiling of Social Media Usage

Women in Social Media

from the 35 - 44 years old group. In our sample, 50.8% (33) of social media users are between the ages of 24 - 34

Forty-two million women in the US (roughly 53% of adult female population) routinely participate in social media - on a weekly basis.

where as only 9% (6) are within the 35-44 group. Also within the 24-34 age group 57.6% (19) are females and 42.4%

Source. Flowtown.com (June. 2010)

Usage of social network sites by adults has increased markedly over the past four years. In a short period the social web has garnered an incredibly high percentage of users older than 18 years of age with the largest numbers coming

(14) are males. Women continue to rule social media, as they are more likely to look out for advice and recommendations through social networking sites.

Age Group: 24-34 Female 19 (57.6%) Male 14 (42.4%) Group total: Female 39 (60%) Male 26 (40%)

A Social Media Report by ŠSondra L. Duckert

Figure 5.1 Social media age profile chart

An Analysis of Social Media in Building better Customer Relationships

63

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

Findings

Profiling of Social Media Usage In another finding from this study, 73.8% (48) of the respondents have interacted with an online retail store using a social media tool. However, it cannot be verified if the respondents have actually interacted directly via a SM tool or if the results are actions taken because someone shared it on Facebook or Twitter for example.

Gender Breakdown: Female 30 (60%): Yes - 30 No - 9 Male 26 (40%) Yes - 18 No - 8

Figure 5.2 Percentage of social media interaction with a retail store. n=65

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

64

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

Findings

Profiling of Social Media Usage Question five asked respondents how often they used online communication tools. Instant messaging and chat at 84.6% (55) was the most used tool, but for 55 of the respondents it was the most daily used SM tool. Participating in SN's came in at 79.7% (51), send or receive email at 64.1% (41); Video (YouTube) at 25% (16) but 57.8% (37) used YouTube several times a week.

Figure 5.3 Percentage of online communication usage. n=65

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

65

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

Findings

Profiling of Social Media Usage Not surprisingly 78.5% (51) of the respondents selected Facebook as their most used social networking site with LinkedIn coming in a distant second at 15.4% (10). If the respondent have had the choice to select more than one the author is certain that Myspace would have had a showing on the grid. Another observation that's lacking is a follow up question as to Why is? Facebook their most used SN tool or what is their main purpose for using it?

Female: 35 Male: 16

Figure 5.4 The most used social networking channel. n=65

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

66

PART TWO - Chapter Five

Findings

An Analysis of Social Media in Building better Customer Relationships

Profiling of Social Media Usage A study published by the Nielsen Global Corporation in January 2009 observed that the online social activity of consumers around the world increased 82% in amount of time spent on social networking sites in December 2009. On average, users spent more than five and a half hours on popular networks such as Facebook and Twitter in December 2009. In December 2008, users clocked just over three hours on social networking sites. (Nielsen, 2010) 36.9% (24) of our respondents used their online time logging into a site at least once a day and staying logged-in their favorite SN site for most of the day. And over 29.2% (19) spent 1-3 times a week logged in for extended periods of time. No specific amount of hours or minutes was requested as to collect more detailed analysis of the amount of time used participating on their favorite SN site.

The size of the audience does not necessarily reflect the amount of time used on Social Media.

Ex: The US vs. Australia Despite of a substantial size difference in population, Australians spends nearly one hour more on SN sites than the Americans.

Figure 5.6 A global view of the amount of time people are using logged into their favorite social networking / media site.

Figure 5.5 Table log displaying the amount of time spent on social media sites. n=65

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

67

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

Findings

Profiling of Social Media Usage Question nine asked respondents on what influences them to start a search. Respondents were allow to select more than one however, Survey gizmo technology had limited technical options where some choices were recored as a combined response exploding some results to 180%.

E-mail offer / Email adverting at 67.7% (44) were selected as having the greatest influence however, 56.9% (37) chose face-to-face communication or direct communication as their reason of conducting an online search. A more in depth analysis of this question is needed in order to attain a result that reflects the respondents choices.

Figure 5.6 Chart displaying the percentages of amount of influence when conducting an online search . n=65

Combined = 180%

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

68

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

Findings

Profiling of Social Media Usage The first section within the Findings chapter was designed to study the research results as they pertain to the respondentʼs usage of social media. This section includes findings from questions 10-16 and reflects on the respondentʼs relationship with Rema 1000 and what social web interactions they are (1) either already engaged in or (2) would like to engage in, in the future.

This section begins with a general question in seeking an overview of who shops at Rema 1000. At first glance, one can easily notice a significant number of respondents that have never shopped at a Rema 1000 discount store at 76.9%, (50). However, what's more interesting is that in the questions that follow nearly all respondents provided answers even though instructions indicated the end of the survey if a No answer was selected.

Questions 10 through 16 were not required questions and thus those No respondents were given the option of expressing their opinion by continuing the survey or ending the survey.

Figure 5.7 Amount of respondents that have or have not shopped at Rema 1000. n=65

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

69

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

Findings

Profiling of Social Media Usage Question eleven looked more specifically at how often respondents visited Rema 1000 website. While 64.1% (41) of the respondents are not aware that Rema 1000 has a website, 36% (23) of the respondents are aware and at least 21.9% (14) have visited Rema 1000's homepage. The high number of answers of not knowing could be a reflection of the respondents not having ever shopped at Rema 1000 or seen any of its weekly print advertisements or commercials. The question results could be answers from international respondents.

Figure 5.8 The table shows the percentage of respondents that have or have not visited Rema 1000 website. n=64

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

70

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

Findings

Profiling of Social Media Usage By using social media tools companies can quickly communicate with their customers in a timely, consistent manner by engaging them in online conversations and moreover, creating a social presence with their customers. Question twelve seeks to inquire how important the respondents think it is for Rema 1000 to use these same tools. Over 50.8% (33) believe that it is 'moderately important', while 20% (13) believe that it 'important' and 12% (8) believe that it is 'very important '. On the other hand 12.3% (8) expressed that it is of 'little importance' that Rema 1000 uses social media tools. The various results could be a representation of how the respondents view their present relationships with other companies via social media.

"Whether you choose to engage with your customer base or not, conversations about your brand, product or service will happen anyway. " Chris Hogg, In the Media, Digital Journal (Oct. 2009)

Figure 5.9 Represents the percentage of respondents regarding the importance (or not) of using SM tools on Rema 1000's home website. n=65

A Case Study by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

71

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

Findings

Profiling of Social Media Usage Email marketing is used to enhance customer relationships between businesses and current or previous customers.

Over the past years it has been a very popular and effective way to encourage customer loyalty and repeat business.

When asked which SM tool our respondents would like to see Rema 1000 use when notifying about new discounted items, 70.8% (46) chose E-mail (newsletter). With regards to Facebook Fan page 61% (40) indicated that they would like to engage with Rema 1000 on Facebook. In another category 46.2% (30) would like to receive notifications via Twitter, which has become a very popular SM tools for the distribution of printable coupons and early bird sales notices.

With the increase in mobile social networking it is no surprise that 27% (18) would like to receive notices via SMS or IM. Mobile users are increasingly spending more time on social networking sites than PC users according to a survey conducted by mobilethinking.com in early 2010.

- Rema 1000 has a Facebook Profile page but no Fan page -

Figure 5.10 Percentage of respondents that would like to receive notices by Email, Facebook, Twitter, etc. n=65

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

72

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

Findings

Profiling of Social Media Usage Question fourteen asked how many of the respondents were 'fans' of Rema 1000's Facebook page. An overwhelming 77.8% (49) said No, while 6.3% (4) answered Yes and 15.9% (10) stated that they are not on Facebook. Rema 1000 presence on Facebook is limited to a company generated generic Profile page. However, this could be interpreted as an (unintentional) disconnect that is the result of an inexperienced social media user, as there is no engagement from Rema 1000 with 'friends' on its Facebook profile page. * Rema 1000's 'Like' page was created by a fan and has since been removed. Rema 1000 only has a company Profile page presence on Facebook.

Facebook is the leader in the usage of social media tool for businesses, with more than 1 million websites integrated with Facebook registration and social plugins (Facebook Platforms, 2010).

Figure 5.11 Number of Rema 1000's fans on Facebook.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

73

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

Findings

Profiling of Social Media Usage Question 15 was designed to collect a comparison on why people enjoy shopping at Rema 1000. The results revealed that 66.2% (43) were undecided on whether or not it is Rema 1000's website the reason why people enjoy shopping there, while 54%( 34) agreed that it is their daily discounted items as the reason for shopping there. When asked the opinion regarding Rema 1000's staff/ employees, 58.5% (38) of the respondents were in agreement that it was a legitimate reason for shopping there. And in the strongly agree category Rema's location and convenience received 49.2% (32) of the tally for the reason why people shop there.

Figure 5.12 Table shows the response when asked why people enjoy shopping at Rema 1000. n=65

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

74

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

Findings

Profiling of Social Media Usage The last question of the survey was designed to evoke a honest response when placed in comparison with other discount stores. When asked to describe Rema 1000 from a service perspective, 67.7% (44) view Rema's image as the same as its competitors, 23.1% (15) described it somewhat better than its competitors while 4.6% (3) rated Rema as either much better or much worse then its competitors.

Figure 5.13 Rema 1000's service in comparison to other discount stores. n=65

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

75

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

Findings

5.2 Meaning and Findings The findings in this study have been constructed around the possibilities of companies and customers being able to establish a solid relationship using social media tools. The conclusion of those findings have been divided into two parts for discussion: Social media's impact on companies and their customers and Social media usage.

1. Social media's impact on companies and their customers. This study determined that social media, as a whole, has a positive impact on those respondents who have interacted with businesses on the social web. For example, 50.8% (see figure 5.9) of the respondents from this study believe that it is 'moderately important' for companies to use SM platforms. In another finding in this study the percentage of respondents who would like to be notified by Rema 1000 via e-mail at 70.8% while 61.5% would like to be notified via Facebook fan page and 46.2% via Twitter (see figure 5.10). These findings, for the most part, represent the fact that customers are ready to engage with companies online and further establishes that SM platforms which absolutely give businesses the opportunity to become involved in collaborative influence with their customers. The basic functionality of SM for both businesses and consumers in essence lies in the strength of building online relationships.

No data collected was from the Rema 1000's organization. Nevertheless, previous studies have suggested that by engaging in SM companies can identify their main (brand) influencers and trendsetters. Moreover, social networks users are three times more likely to trust influencers opinions over advertising when making purchasing decisions as online chatter evolves into offline, realtime conversation.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

76

PART TWO - Chapter Five

An Analysis of Social Media in Building better Customer Relationships

Findings

Meaning and Findings 2. Social media usage. There is strong evidence that social media continues to have a positive impact on all of the respondents in this study. For example, 73.8% have interacted with an online retail store using a SM tool. Instant messaging (IM) and chat tools were used by 84.6% of our respondents (see Fig. 4.3) and Facebook, at 78.5% (see Fig. 4.4) was chosen as their most used social networking tool.

Social media tools are inexpensive and at most times free, easy to use, and can provide real-time online engagement. They provide places where companies can build an online brand presence, increase customer loyalty and manage the changing dynamics of customer relationships. Within this study as 73.8% (48) of our respondents have said to interact with a company via SM indicating that a relationship has been established. While there is no data into why and what methods were used by companies in establishing these relationship however, just by participating on the social web gave companies the opportunity for engagement and subsequently the acquisition of customers.

Social media usage among IM users can be attributed to the ease at which it can be used. When added with a level of serendipity, it is a prefer communication tool for many users. On Facebook, businesses can easily begin their engagement with consumers using SM/SN sites, which then can be expanded via e-mail and when resolved, a short response through text messaging makes the transactions easy and effective. This is just one way that IM can be used by businesses by adding a customer service element that can be offered to consumers. It's typically the fastest and often an efficient way for companies to communicate with their customers. This method also allows companies to convert their audience of fans and followers to loyal customers, by giving them what they want: exceptional customer service.

Facebook has become one of the most used tool by almost every age demographic on the planet. In our study 78.5% (51) selected FB as their preferred social networking tool. The versatility of FB allows respondents to search for friends and family members, participate in discussions, view and comment on photos, play games, and become more allegiant to their favorite brands and various groups. Additionally, with FB dominance across the Internet, companies can be more accessible to their customers than ever before, but only if they are also using the same social web technologies as their customers. Companies that use Facebook Insights, for example, can view data about each user of its fan page. The data is useful for understanding the characteristics of its customer base.

This study affirms the second hypotheses - Companies that interact with customers using social media are more likely to establish a relationship that's beneficial to both parties - by personally engaging their customer base, creating value content, and being in exactly the same place and using the same social web technologies as their customers.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

77

An Analysis of Social Media in Building better Customer Relationships

6. The Case for Rema 1000 PART TWO: Chapter Six

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

6.1 Social Media in Denmark According to Statistics Denmark, an estimated 1.7 million Danes are regular users of social networking sites. The report revealed an increased in blog readership from 22 to 33% in a period of 1 year and three out of four people

20 Popular Social Media and Danish Sites

download or read news articles on the internet while a web user listens to online radio or watches TV. However,

1. Google på dansk

Facebook still rules in Denmark as the number one social networking tool. More than 2.2 million Danes or 41% of the

2. Facebook

general population, with the average user at 31.9 years of age, have created a profile on Facebook according to a

3. Google.com

study conducted by Komfo IT and Consultancy. In 2009 Komfo, a company that specializes in creating Facebook applications conducted a study that revealed very detail analysis of Danish Facebook users with a concise breakdown into the largest number of users by city. Copenhagen comes in first place with 452 thousand users with 87% penetration, with the average age of users at 32 years. Hillerød comes in second with 37 thousand users with 78% penetration, with an average age of users at 33 years. Aalborg comes in third place with 147 thousand users with 75%

4. YouTube - Broadcast yourself 5. Windows Live 6. Ekstra Bladet 7. Yahoo!

8. Wikipedia 9. DR Online

penetration and the average age of users at 32 years.

10. TV 2 Danmark

A study conducted by Usersneeds in July 2010, also underscores how very much plugged in Danes are with 93% avid

11. Blogger.com

Internet users and 62% between the age of 18 - 65 years old who use social media sites at least once a week.

12. B.T. 13. Den Blå Avis A/S

"The trend is that social media has become a tool in Danish life. The Danes are discovering the many benefits of

14.Twitter

social media - not least the network part. We see also that several executives have been aware of the new tools as a

15. MSN

means to differentiate themselves and attract customers by launching 'niche communities "within specific themes

16. LinkedIn

such as cooking, fashion, kids, horses, etc.," says Michael Club, Country Manager for EPiServer Denmark.

17. Politiken

Both studies highlight the impact of SM and how it has become a part of every day life and in increasingly fashion.

Danes are using social media sites like Facebook, LinkedIn and Twitter as a tool to promote their careers, and as a their primary work tool in the daily activities both at home and at work. And even as social media usage continues to make advancements within the Danish society, Danish companies have yet to be convinced of its effectiveness. That

18. TDC 19. The Internet Movie Database 20. Danmarks Meterologiske Institut (Retrieved Aug. 2010)

is not to say that Danish companies are not using social media in any form. Danish companies have established a presence on the social networking site LinkedIn. A social networking site created for professionals.

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

79

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

Social Media in Denmark Internet usage, Mobile devices and Danish companies uncertainty with Social media Internet Usage Today's Internet usage has been woven into Danish daily life where three out of four Danes use the Internet daily or almost daily and as social networking sites like Facebook, MySpace, blogging and Twitter become more popular.

According to Statistics Denmark more Danes (52%) are downloading digital content such as software, music and games from the Internet. Two out of three Danes, or approx. 2.6 million of the population shop online and 74% of those who bought goods online made future purchases 1 to 5 times more. Moreover, it has also been revealed that men, not women, carry the most time spent on Internet purchases.

Mobile Usage With the convergence of the Internet and mobile technology, social media channels have taken significant shape as more people rely on ʻanywhereʼ access to information, relationships and networks. The popularity of accessing social networks like Facebook, Twitter, and location based SN sites like Foursquare, Facebook pages, and Gowalla through mobile devices has given the mobile phone more relevance, wherein “the medium is the message",(22) at least in this case. Mobile usage has become a primary work and social tool for many. Its ability to bind friends together, enabling individuals to construct flexible work schedules, create and send pdf documents, snap and geotag photos, download video, games, music and applications, plus much more, makes it the preferred and sometimes the only communication device for many.

In 2008 Danes used the mobile phone more than their landline and calls by mobile phones users accounted for 9.7 billion minutes, while calls by landlines accounted for 8.6 billion minutes, according to Statistics Denmark. The number of multimedia messaging service (MMS) also increased substantially with about 3 million MMS messages sent during

Facebook Mobile There are more than 200 million active users currently accessing Facebook through their mobile devices.

People that use Facebook on their mobile devices are twice as active on Facebook than non-mobile users.

There are more than 200 mobile operators in 60 countries working to deploy and promote Facebook mobile products (Source: Facebook press, facebook.com)

2003 compared with 68 million MMS messages were sent during 2008.

Mobile technology has created a culture where there is a natural need and desire for instant messaging whether itʼs for work, social networking or even shopping.

22. Marshall McLuhan, Understanding Media: The Extensions of Man (1964), http://www.marshallmcluhan.com/main.html

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

80

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

Social Media in Denmark Danish businesses uncertainty with Social media The same attraction and enthusiasm for social media exhibited by the Danish population have eluded Danish

"Businesses have very naturally

companies, as they remain skeptical of its potential to meet even basic business objectives. Some companies

increased their focus on social

expressed concerns regarding the time-consuming nature of building up networks, rather than just communicating

media, but many are still reluctant, because open dialogue

marketing messages. Others point to the damaged image of brands like Nestle and BP after falling foul to negative

in public space gives up control.

publicity against their campaigns by users on social media sites, as the deciding factor that social media is just not

The companies that have the

worth the risk. However, there continues to be a growing awareness by companies.

greatest success with social

Danish companies cannot ignore the increasing number of Internet users who are choosing to identify themselves

strategically and used social

with social networks. In fact, there are 1.7 million Danes who are regular users of social networking sites, 2.2 million

media to support other

media, has anchored the use

have personal profiles on Facebook and where regular Internet users are said to have visited social networks in the past 30 days alone.

communications channels. " says Henry Keller Jensen of Holm Communications.

A relatively small number of Danish companies have begun to create a social media presence but Danes themselves are divided on whether or not they should even be there. According to new figures from FDB analysis Danes are divided about whether companies should have a space on Facebook and other social media. 44 percent of Danes

Social networks are visited by 2/3 of the worlds population where 93% of

think that they should not be there, while 16 percent think it is ok. "It is a sign that we have some very different

social media users polled believe

expectations for it here on Facebook. It is media that is used for recreation. If you so desire to be confronted with a

that a company should have a social

company when you are there? We have also an expectation that companies open themselves to their customers or

media presence, and a further 83%

stakeholders and that we can influence it through dialogue, " said Morten Gade, digital director of FDB and external

believe that companies should

lecturer at IT University.

interact with its customers.

A company presence on SM immediately draws the suspicions of something to do with advertising rather than engagement. However, assuming the Danes do not wish to interact with companies when they are socializing on their favorite media reflect the wrong approach taken by companies (on social sites) in simply choosing to push out marketing messages rather then engage in a dialogue with their users.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

81

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

This study started out by defining social media, its impact, value and risks for businesses and consumers equally in order to showcase its importance in building better customer relationships. The focus has now shifted to the exploratory analysis of the image of discount shopping in Denmark and Rema 1000Ęźs viability to engage in one-one conversations with its customers using social media tools and strategies.

6.2 The image of Discount Shopping in Denmark The perception of shopping at a discount store in Denmark has changed. Gone are the days when the anxiety of meeting your neighbor on his way out of a discount store has all but vanished. Danes image of discount stores became better as the financial crisis began, and we therefore went more and more toward low-cost chains. This is precisely also the explanation for the better image: It's just that we are there more, says Michael Skou, a consultant for Retail Institute Scandinavia. (23) i Over 90 percent of consumers say that it is completely socially acceptable to shop in a discount store. Over a decade ago the wealthy seldom purchased discounted goods, but with today's disposable incomes becoming not so disposable, Danes are finding other ways to save for new electronics, travel plans and expensive clothes. A consumer that shops at discount places to save for that luxury vacation is what Allen Christensen from ACNielsen defines as the 'schizophrenic consumer'. I would say that they are 'thrifty' consumers rather than schizophrenic. However, saving money on daily purchased items is not the only reason why discount chains are so popular. Discount shopping offers consumers a convenient (shopping) experience and consumers have come to trust and believe in them which has helped in accelerating the image of discount shopping to its highest levels in years.

Figure 6.1 Graph describing the changing attitude towards discount shopping in Denmark.

The growing consumer price sensitivity that resulted in a sales boom for discounters also boosted Internet retail sales.

With increased availability and convenience Danish online retail sales grew in 2009, however grocery chains account for only a small proportion of Internet retailing. Leading chains are reluctant to embrace the Internet trend mainly because many do not know how.

23.Vibeke Daell Bjerrum, August,2010, Business.dk Customers are wild about Netto, http://www.business.dk/detail/kunderne-er-vilde-med-netto

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

82

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

The image of Discount Shopping in Denmark Nevertheless, the financial crisis has given new life to discount shopping in Denmark. Even Danish fitness giant Fitness World admits, “We are a nation of net-Danes (Netto-Danes). We act sensibly and want the price and quality to match. “says Per Lyngbak Nielse.

Its only been a few years ago that discount stores like Netto, Rema 1000, Lidl and Aldi had an increase in revenue by 6.6% while regular supermarkets experienced a decreased in revenue by 2% according to Statistic Denmark.

Moreover, just three years ago the discount stores had an increase in revenue by 25% and a 9.3% decrease for supermarkets, marking the beginning of the financial crisis that initially gave momentum to discount shopping phenomena.

Erik Rasmussen of Mandag Morgen expressed concerns about how the danish society is becoming too attached to discount shopping in his article,ʻSkal vi være et discountsamfundʼ?, and how a discount mentality puts the future growth of the country at risk. “Denmark's most important election is not about who should be the next prime minister, but what kind of society we want to be in the future. The options are to AGREE a status of a discount country or become a global growth gazelle. Both options are open. Right now we're headed for discount society at risk of ending up as a relatively uninteresting country for investors and talents. But we still have the opportunity to transform the growth crisis for a growing adventure.” says Erik Rasmussen.

Rema1000 can help change the perception of a discount society by using online communication tools like social

Figure 6.2 Image for ʻShould we be a discount societyʼ

media. Social mediaʼs global reach is not limited to only the loyal and potential customers but also to investors and stakeholders. Rema 1000 can show that they have much more to offer than just discounts for its shoppers. One only has to look into their Corporate Social Responsibility (CSR) initiative to see the number of causes like Fair Trade, investment in local supply companies, and other activities that they are committed to be a part of.

The financial crisis has changed the image of discount shopping in Denmark both socially and psychologically and the impact will last as long as Danes remain consumer conscious and kroner fixated.

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

83

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships REMA 1000 wins award duel

The Case for REMA 1000

NOTE: In PolitikenĘźs discount check for 2010, Rema 1000 won for the store with Denmark's lowest discount prices. Rema 1000's prices were on average 8% lower than last year. Rema 1000 may have won the distinction of being the least expensive place to shop, however Netto is winning the image war as the best place for discount shopping.

Many of the stores are supplied by the same company and have similar items, but the prices may vary.

The Coop group supplies the following stores: Dagli Brugsen, Super Brugsen, Kvickly, Kvickly Xtra, Irma and Fakta.

Dansk Supermarked supplies these stores: Bilka, Fotex and Netto.(24)

For some Netto has won the image war. Today it is seen by many as a discounted version of Irma because of the number of organic items sold. Netto has marketed itself as a cool and trendy place to shop and is more acceptable place to shop for daily items even though they may not be the cheapest of the discount stores.

(Table 2) Prissammenligningen, fra Politiken.dk June 26, 2010, http://politiken.dk/tjek/dagligliv/husholdning/article1003692.ece 24. Fyidenmark, http://www.fyidenmark.com/shops_in_denmark.html

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

84

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

6.3 About Rema 1000* An exploratory look at Rema 1000 in Denmark

REMA 1000 is a multinational no-frills supermarket chain owned entirely by the Reitan Group (Reitangruppen).

REMA is a short for REitan MAt (Reitan Food), referring to Odd Reitan (founder of the company). Thousand refers to the concept of offering a selection of only one thousand different products (refer to the history section).

With their headquarters located in Oslo, Norway, REMA 1000 includes businesses in Norway, Denmark, and Sweden. The chain is based on a franchised discount concept: buying large quantities of a limited range of

Figure 6.3 Rema 1000 company Info.

products and offering these to semi-independent owners under their brand. By 2004, REMA 1000 included 444 supermarkets spread around Scandinavia.

In Norway, the supermarket chain captured 17.5% (2004) of the total revenue by all Norwegian supermarkets, taking the lead over its closest rival RIMI. By market share it is therefore the single largest supermarket chain in the country.

The Supermarkets REMA 1000 supermarkets are known for not spending large sums on aesthetics. As a matter of fact one of the chainʼs slogans is “The simple is often the best” (Norwegian: “Det enkle er ofte det beste”) and this reflects on the layout concept in the supermarkets. Products are mostly positioned by crate or even by pallet to save the cost of positioning them in a more attractive way, a strategy not unique to REMA. Itʼs still REMA 1000ʼs official policy of not letting cost-saving damage the basic idea of simplicity (in accordance with the slogan). Wide corridors and informative signs are therefore present to simplify the shopping.

Some critics claim that REMA 1000 supermarkets are without personality and resemble warehouses more than

Figure 6.4 Rema 1000 at Vesterport in Copenhagen.

they resemble shops, and thereby making the shopping a tiresome process. (25)

25. REMA 1000, from Wikipedia, October 4, 2010 http://en.wikipedia.org/wiki/REMA_1000

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

85

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

History

Odd Reitan, the founder of the company, opened the first REMA supermarket in Trondheim, Norway, 15 February 1979. Originally some stores were named 'REMA 500', indicating its number of food variety (later to be expanded).

The owners had recently visited Germany where they had been impressed by the Albrecht brothers (Theo and Karl) supermarket chain ALDIʼs success. They wanted to adapt the ALDI concept to Norwegian conditions.

Originally REMA attempted success with a selection of only 500-600 different products, but soon realized that this selection was too narrow. The success of the third REMA supermarket (opened in Mo i Rana, 8 May 1980) with a selection of 1,000 different products, paved way for the REMA 1000 brand. Since then, REMA 1000 have expanded their selection to more than 2,500 different products, but the name hasnʼt been updated along the way.

Much more wisely REMA 1000 Denmark A / S is today much more than "just" a lot of items. In REMA 1000 we work with people - both behind and in front of box line - and it means a lot to us. A shopping experience is also a meeting between people.

In 2004, the chain celebrated its 25-year anniversary. (26)

The concept year that was 2009 Rema 1000 was fully prepared to build 50 stores in 2009 however, the company cited high property prices and

REMA 1000 sponsors also people in different contexts. We have recently been the main sponsor at Aqua Camps for 1300 children and co-sponsor the handball competitions across the country with more than 6000 participating children and adolescents.

difficulty in obtaining credit as the two main reasons in scaling back it's 2009 goal of having 50 stores and opted to open only 5 - 10 new stores. The company overall goal of opening a total of 300 stores in Denmark is still a possibility.

Source: rema1000.dk

As of August 2009, Rema 1000 has over 180 shops in Denmark.

In October 2010, Rema 1000 acquired a 50% stake in meat producer Spekelofet, which has been a supplier to its retail chain since 2004. Rema Industries CEO Jaan Ivar Semlitch said the deal would help guarantee supplies of locally produced high quality meat, avoiding the need for imports and fits into their strategy of securing control over more of the value chain.

26. REMA 1000, from Wikipedia, October 4, 2010 http://en.wikipedia.org/wiki/REMA_1000

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

86

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

6.4 The Case for Rema 1000 The Case for Rema 1000 is conducted in a short series of standard questions and answers created to give the reader an in depth look at what steps (some) organizations take when exploring the option of adding social media to their marketing strategy. Two of the main reasons companies get involved with social media is (1). It puts them closer to their customers, (2). People are already talking about their product or brand, so why not be where your customers already are? For organizations exploring SM, it can be as simple as monitoring the channels for chatter about their product or brand. If a collected decision is made, to not use SM because the online world does not fit their business model, let the data reflect that. Monitoring will give a company justification as to why SM is not for their niche. For others itʼs about using the tools to harvest competitive/market intelligence that can be used to make better-informed decisions about how, where, and how much they should get involve in social media. As social media evolves so will the endless opportunities for companies to become more involved.

Why would a multinational no-frills supermarket chain need to join Social Media?

For Rema 1000, which is owned entirely by the Reitan Group, the answer is to extend the brand experience of over 180 Danish locations online by engaging customers with valuable content, providing excellent service and building lasting relationships with its customer base. Rema 1000 has the opportunity to be present in social platforms to listen and learn from what stakeholdersʼ are saying about their brand, subsequently leading them to respond more appropriately through traditional marketing channels. Social media exposes consumers to brands, products, their feature benefits and corporate value propositions. It is a powerful and often underutilized exposure and awareness tool for businesses alike.

However, many are not convinced of the magical powers of social media because they are either not willing to adapt and commit resources to social media, or their outreach is not hitting a receptive audience. This should not be the case for Rema 1000 because invaluable content already exists on their homepage that could easily be shared by way of Blogs, which is an excellent starting point for exploring SM. Take for example Rema 1000 ʻVidste du...ʼ section. It is

Figure 6.5 Did you know ...

Image from Rema 1000ʼs website

valuable content that can be transformed into a blog entry. By sharing this content Rema can engage customers via an online dialogue that has the opportunity to develop into a shopping trip to Rema 1000 offline. The biggest effects shows in the amount of information that is subsequently shared online with others, and perhaps through other SN /SM sites, offering up what Social Media can do for a brand without the extra advertising costs.

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

87

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

The Case for Rema 1000 What makes a company decide to integrate social media into its marketing and customer service efforts?

Major supermarkets analyze social media to understand their customers better and use it as a way to reach out on a one-to-one basis. Rema 1000 on the other hand values direct engagement both in front of and behind the counter encouraging a shopping experience where, they say, the meeting of people is the shopping experience. This form of direct engagement together with weekly e-mail offers, from ʻUgens Tilbudsavisenʼ, can be integrated into social media marketing and customer service efforts as another way to build and extend this relationship and provide better service.

Social media can also help address the criticism surrounding REMA 1000 supermarkets namely their lack of personality and how they resemble warehouses thus making the shopping experience uneventful and boring.

What to do before jumping in: Planning and strategy.

When a company is ready to engage in social media it is best to plan a strategy and select which tools would better serve their cause. Most companies like to begin slowly until they are sure that they have a grasp of what social media can and canʼt do for their brand or product. Therefore, it is best to begin with a simple but very important strategy.

For Rema 1000 the planning of their social media strategy could firstly involve Twitter, in researching topics of interests and locate where they think they can make an impact, and secondly use blogs for ʻpersonalʼ engagement with customers. Rema can use one of the many topics from its Corporate Social Responsibility (CSR) page to start a

Figure 6.6 Rema 1000ʼs Corporate Social Responsibility - Discount with attitude

dialogue on Twitter or use in a blog. Conducting customer surveys from email is also a great way to get a handle on what type of content customers may want to see from Rema. Another task would be to look at a few case studies of what (and what not) to do with SM. Getting a feel for how other companies are using social media, both within the industry and outside of it is recommended. Once the research has given enough guidance Rema 1000 should try out the strategy by posting content of interests and then while being patient wait, listen and watch the conversations develop around them.

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

88

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

The Case for Rema 1000 Things to consider: 1) Start out slowly by designing and establishing a goal of providing customer service for example and to increase brand presence via social media channels. (Social media strategy how to, pg. 29) 2) Establish which social media channels to use, because there are hundreds if not thousands of SM channels created to perform different functions. (Social media tools, pg.15) "

The top four channels for businesses are Facebook, Twitter, Blogs and YouTube.

Facebook is a comprehensive solution for businesses. Itʼs great for brand exposure through the ad platform and Fan pages to help you grow your brand presence. More than 2.2 million Danes or 41% of the general population have created a profile on Facebook.

Twitter offers unique opportunities for web site integration and to engage with customers in a viral way, helping your company stand out from the masses.

Blogs are used to place more detailed information, showcasing, products reviews and more. Blog post can be linked from Twitter and Facebook giving their content a greater audience and visibility.

YouTube is one of the most powerful branding tools on the web where you can build your channel, promote via high-traffic sites, and brand your videos.

If Rema 1000 selects to integrate social media channels into it marketing strategy they would first need to take a step

Rema 1000 has a presence on Facebook, Twitter and YouTube, however that presence has very little corporate engagement with the fans and followers. (see pages 90-94)

back and think about whatʼs in it for their audience. Itʼs necessary to think about how they would, as social media users, want to be engaged by a company or brand. Social media requires them to move away from monologues to dialogue with customers and offer services they can find value in.

When it come to troubling shooting negative comments Rema 1000 should not shy away from them, but take the opportunity to address them and start repairing that relationship and appreciate the chance to make things right. They may not save that relationship but will more likely improve relationships with other customers because they demonstrated that they were serious about having feedback/dialogue in trying to improve the situation.

Investing and managing an online image is important because we no longer use the yellow-pages to gather information about things we want to know more about. We ʻGoogleʼ them or ask a member of our SM network for the answers.

Rema 1000ʼs social presence will not only help build their brand but may also help in winning the discount image war against the top discount chain rival Netto.

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

89

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

If you think that you're not On ANY Social media channels ..........

Think again.

There are messages about you on Social media.

Why ?

Because that's where your customers and 'fans' spend their time talking about YOU.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

on YouTube Rema 1000s fans have posted over 300 videos on YouTube.

'Er det pule du mener Mamma' is Rema 1000 most watched video with almost half a million views as of October 12, 2010

Figure 6.7 Rema 1000 on YouTube, retrieved Oct. 12, 2010

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

91

PART TWO - Chapter Six An Analysis of Social Media in Building better Customer Relationships

on Facebook

The Case for REMA 1000

Rema 1000 Facebook Profile page

Facebook links are more effective at driving "user engagement," which translates into people spending more time on Facebook.

If you want to increase your Facebook 'presence' in your friends newsfeed, just 'like' as many sites as you can and click and comment on photos.

While having a Profile page is a step in the right direction creating a Facebook fan page is the best way to leverage social media for any business.

Two reasons: Fan pages use embedded analytics, for example

The more you engage with others the more you can increase your Facebook social capital.

Facebook Insights allows you to view useful data about each user of your fan page. This data can be useful for understanding the characteristics of your customer base.

The second reason is an analytical tool called Open Graph plugin that you can embed into your

Facebook has become a crucial communication channel for major brand, making them more accountable then ever to customer feedback

own site to monitor your Facebook stats.

Converting a Profile to a Page is not easy because you have to ask every one on your Profile page to now become a Fan by converting your friends to fans.

Having both a Profile page and Fan page will confuse your fans and friends. It's best to choose one and hide the other.

A Social Media Report by ŠSondra L. Duckert

Figure 6.8 Rema 1000 on Facebook, retrieved Oct. 31, 2010

An Analysis of Social Media in Building better Customer Relationships

92

PART TWO - Chapter Six

An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

on Twitter A twitter thread from a very popular American talk show host.

'The EllenShow' has over 5.4 million twitter followers.

(Retrieved, Oct. 2010)

Twitter Advanced Search - the basic twitter search function is a great time saving filter and allows you to set-up searches on your name, company name, brands, competitors, all the basic stuff, so you can monitor your business and reputation and even know when people are replying to your tweets.

Advanced search, however, is where the real data mining comes to life.

Advanced search allows you to filter everything thatʼs being said for your keyword phases in your town, for example. Think that might be useful? Letʼs This photo is probably not from a Rema 1000 store however, this guy on this thread think so.

say you are a network server specialist in a nearby city - if you set up an advanced search for people in that city complaining about their server - and you got those complaints in real-time - could you develop some hot leads?

(John Jantsch, Duct Tape Marketing - 2009) Set up searches for your company, product names, and relevant topics. When you see somebody else talking about your company or products, get involved in the conversation. Some of the best results from companies on Twitter is when an individual makes an offhand complaint about a product on Twitter, and the company responds, eventually resolving the issue.

Figure 6.9 Rema 1000 on Facebook, retrieved Oct. 12, 2010

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

93

PART TWO - Chapter Six

An Analysis of Social Media in Building better Customer Relationships

The Case for REMA 1000

on Twitter Rema 1000 Unofficial Twitter account, created by fans.

Another reason to have an Official page on Twitter, so that others cannot control your brand.

Figure 6.10 Rema 1000 Twitter feed Retrieved Nov. 6, 2010 from http://www.silobreaker.com/rema-1000-11_86637464,

Figure 6.11 Rema 1000 on Facebook, retrieved Oct. 10, 2010

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

94

An Analysis of Social Media in Building better Customer Relationships

Conclusion

Conclusion This study set out to explore the power and impact of social media and the tools companies used to increase their social presence on the web as well as their quest in building better customer relationships. From this study it was found that companies who aggressively implemented their social media strategy, coupled with a concise and thought out marketing plan, found success in building their brand awareness, increased sales and extended their reach out to new customers. In order to maintain this new digital presence, companies realized that it wasn’t enough just to be present online — establish a website, maintain a Twitter account, put up a Facebook profile, etc. Continued success involved staying relevant to their (digital) audience and understanding the conversations by participating in the dialogue. But above all, generating sales and improving the ROI’s hinges on a well-planned SM marketing strategy made easy to monitor, and capitalize from, simply by keeping tabs on the softer brand metrics.

Summary The findings represented in this report affirm the initial assertion that a companyʼs use of social media platforms can improve relationships with consumers and that that success begins with the realization of providing valuable content linked together with social mediaʼs most powerful influencer: the individual user. Additionally, this study found Facebook to not only be the preferred SN tool for our survey respondents 78.5%, it is also the preferred social media channel within the business community as determine by the high percentage (85%) of companies using it as part of their marketing strategy. Its (free of charge) comprehensive business and marketing tool and analytics makes it a sensible choice for any company looking to increase its web presence.

Another finding within this study resulted from our survey respondents wanting to engage in dialogue with businesses as 73.8% having said to have interacted with a retail store using a social media tool. This also goes in conjunction with the amount of time spent using online communication tools being 36.9% of the respondents logged into a SN site at least once a day and remained logged in for most of the day.

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

95

An Analysis of Social Media in Building better Customer Relationships

Conclusion

Summary Furthermore, it was discovered that a large disparity exists between the high number of the Danish population present on SN sites compared to the extremely low number of Danish companies whose presence is largely absent; conveying a sense that either most companies have no use for social media in their business model or they are simply taking a wait and see approach. Moreover, many Danes themselves are divided on whether or not companies should have a presence on social media sites. This split position likely reflects the assumptions of SM users that a companyʼs profile on SN sites are only their for commercial marketing purposes and not consumer engagement.

Reflections Social media, in general, was found to have a positive impact on companies being able to increase its online presence by identifying influencers. Reluctant companies should accept these results as reason enough to research and devote the resources needed and take full advantage of its potential as well as size up the risks that coexist with social media usage.

People are better connected than ever before and the opportunities the Internet provides for organizations and individuals to organize, create and distribute its message and ideas are unprecedented. Having a presence on social media sites can do more than just improve brand awareness as the impact of social media has been proven to be powerful and long reaching. Social media also forges a new relationship between companies and consumer, that forces a shift in perspective where companies must consider how their messages and platforms add value to the consumers daily experience.

“Social media can be an enabler an accelerator of existing core capabilities, values, attributes and plans. It can even be a catalyst for change. But it canʼt magically create what doesnʼt exist.” Denise Zimmerman

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

96

An Analysis of Social Media in Building better Customer Relationships

Work Cited

Work Cited Kolind, Jesper, The Mixed Brand and Private Label Strategy - Retailer's Perspective Illustarated by Rema 1000 case --- A work in Progress. (2006).

Retrieved September, 2010, from http://private-label-consulting.com/pwprofile.aspx?lang=da&mi=2&itmimain=2&itmi=20 Ladner, Sam, PhD. Understanding Social Media: Social Theory 101, (April 27, 2010). Retrieved September, 2010 from http:// copernicusconsulting.net/understanding-social-media-social, Royal Pingdom. Study: Ages of social network users, (February, 16, 2010). Retrieved September, 2010 from http://royal.pingdom.com/2010/02/16/ study-ages-of-social-network-users/, Simply Zesty, A beginners guide to Social media, (May 5, 2010) E-book. Retrieved September, 2010 from www.simplyzesty.com iCrossing, What is social media, E-Book (August, 2008). Retrieved September, 2010 from www.iCrossing.com/ebooks, Goffman, Erving, Introduction by Best, Joel, Interaction ritual: Essays in face-to-face behavior: viii, Transaction Publishers. (First published in 1967.

New material edition published in 2005). Retrieved September, 2010 from http://books.google.com/books Bourdieu, P.1986. "The forms of capital." P. 241-258. Handbook of Theory and Research for the Sociology of Education. Richardson J.G. (ed). New York: Greenwood. p., 248. Retrieved September, 2010 from http://books.google.com/books Grandovetter, M, The Strength of Weak Ties. American Journal of Sociology, 78(6).p.1371(1973), Retrieved April, 2010 from KEA reading list. , Coleman, James S., Foundations of Social Theory, President and Fellows of Harvard College(1990). Retrieved September, 2010 Siisiäinen, Martii Two Concepts of Social Capital: Bourdieu vs. Putnam, Department of Social Science and Philosophy, (July, 2000). Retrieved September, 2010 from www.suz.uzh.ch/fux/lehre/Sozialkapital/siisiainen.pdf Blackshaw, P. The New and Improved 2010 Social-Media and Mobile Glossary, Retrieved October, 2010 from http://adage.com/cmostrategy/ article?article_id=146161 (September 28, 2010) Cisney, Jenny, Social Media Tips, Sharing lessons learned to help your business grow, Kodak Company, (2009.) Retrieved October, 2010 from kodak.com/US/images/en/corp/Social_Media_9_9.pdf Madia, Sherrie A., Five social media land mines to avoid, Retrieved October, 2010 from http://www.ctv.ca/generic/ Sherman, Aliza, The Confluence of Web Development and Social Media. (July 26, 2010). Retrieved October, 2010 from conversify.com Black, Tiffany, How to Write a Social Media Policy. Retrieved October, 2010 from http://www.inc.com/guides/2010/05/writing-a-social-mediapolicy.html, (May 27, 2010) Buch, Trushit, Social Media Marketing CRM, You don't want social CRM, You want integrated customer intelligence. Retrieved October, 2010 from www.thaicrmsoftware.com/ (September 8, 2010) Lumension, The Greatest Question Since the Meaning of Life: What is the ROI of Social media? (2008) Retrieved November, 2010 from http:// www.slideshare.net/LumensionSecurity/the-greatest-question-since-the-meaning-of-life-what-is-the-roi-of-social-media

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

97

An Analysis of Social Media in Building better Customer Relationships

Work Cited

Work Cited Single Point, Conversational Advertising, from Mobile Squared, Retrieved August, 2010 from www.singlepont.com (June, 2010) Facebook statistics, Retrieved August, 2010 from www.facebook.com, (2009) YouTube press center, Statistics, (2010) Retrieved August, 2010 from youtube.com Yahoo! Fun Facts based on U.S. and worldwide, Retrieved August, 2010 from (http://careers.yahoo.com/funfacts.php) (April 2007) Windows Live statistics, from Alexa, The information Company, Retrieved August, 2010 from http://www.alexa.com/ Blogger statistics, State of the Blogshpere, Retrieved August, 2010 from http://technorati.com/blogging/feature/state-of-the-blogosphere-2009/ (2009) Twitter statistics from The Chirpconference, Retrieved August, 2010 from http://twitter.com/chirpconference, (2009) LinkedIn statistics from SysComm International, Retrieved August, 2010 from http://www.syscomminternational.com/ SMI-Social Media Influence, A Short History of Social Media Screw Ups, Intelligence in social media. (Oct, 2010) Retrieved October, 2010 from http:// www.slideshare.net/socialmediainfluence/social-media-screw-ups Warner, Bernhard, The 'overenthusiastic' Tweeting intern and other common social media gaffes, SMI-Social Media Influence,( Oct.8, 2010).

Retrieved October, 2010 from http://www.bernhardwarner.com/ Solis, Brian, The 10 Stages of Social Media Business Integration, (January, 2010). Retrieved October, 2010 from http://www.briansolis.com/ .

O'Brien, Karen and Chris Terschluse, Determining the Impact of Customer Relationships (Sept. 2009) Retrieved October, 2010 from http:// www.slideshare.net/cterschl/determining-the-impact-of-customer-relationships-social-media-measurement-analysis Source: Edison Reseach and Abritron, 'The Social Habit - Frequent Social Networkers,' (June, 17, 2010), Retrieved October, 2010 from http:// www.edisonresearch.com/ Panasiti, Giovanni, Social Media Marketing Metrics: The Official IAB Definitions and Guidelines, Retrieved October, 2010 from http:// www.masternewmedia.org/ (May 29, 2009, update April 24,2010) Swan, Lizanne,Statistics Denmark: The use of social media has increased by 23% in one year, Retrieved Nov.1, 2010 from http://www.nodes.dk/ blog/danmarks-statistik-facebook-forbrug/ Zarrella, Dan, The Social Media Marketing book, Published b O'Reilly Media, Retrieved October, 2010.

Club, Michael, Social media holds Danish jobs Retrieved Nov.1, 2010 from episervr.com/dk/Nyheder/Nyheder/Sociale-medier-indtager-danskarbejdspladser/ ENGAGEMENTdb, The Worldʼs Most Valuable Brands. Whoʼs Most Engaged? Ranking the Top 100 Global Brands, Retrieved Nov. 4, 2010 from www.engagementdb.com/downloads/ENGAGEMENTdb_Report_2009.pdf

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

98

Appendix: A

An Analysis of Social Media in Building better Customer Relationships

Appendix

Social Media - Company Policy There is a lot to consider when your brand is represented on a social media site. Companies will need to develop a social media policy for employees that speak with one-voice in order to protect the company and their own privacy and resources. Each employee is a 'brand advocate' and should abide by the companies social media policies.

A social media policy is a companyʼs first line of defense to channel the risks for all parties involved. In some cases an employee confidentiality agreement is not enough because it usually does not cover employees interaction on social media sites. Companies are now advised to create and have available a separate 'specific' policy that is accessible to employees so that they are aware that the policies exists.

Danish stats: Nearly one-third of Danes regularly logs onto Facebook at work at a cost to companies to an equivalent of 1.5 billion euros according to a poll conducted between February 2 8,2010 by the Dwarf and Userneeds Institute.

55,000 Facebook users spend more than 30 mins. each work day logged on.

Writing a Social Media Policy: What You Should Include Social media is about sharing, collaborations and interactions. "Bring in your most active social media employees to collaborate and help craft your social media guidelines.", suggest Mario Sundar, community specialist at LinkedIn. Including employees in the process creates internal advocates for the policy. He states that the policy should be more about what employees can do and best practices for social media use versus all the things employees can't or shouldn't do on social media.

The survey also revealed that Danes with high levels of education were most likely to log onto Facebook at work.

Some 1.9 million Danes between the ages of 16 and 65 have profiles on Facebook. (11)

Here are 10 recommendations when creating a policy: Automative time tracking and

1. Remind employees to familiarize themselves with the employment agreement and policies included in the employee handbook.

2. State that the policy applies to multi-media, social networking websites, blogs and wikis for both professional and personal use.

management tools like Rescue Time and MeeTimer monitors the amount of time employees use on internet sites, especially social networking sites.

3. Internet postings should not disclose any information that is confidential or proprietary to the company or to any third party that has disclosed information to the company.

4. If an employee comments on any aspect of the companies business they must clearly identify themselves as an employee and include a disclaimer.

11. Agence France-Presse, (March 17, 2010), Nearly one-third of Danes use Facebook at work: poll, http://www.abs-cbnnews.com/technology

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

99

Appendix: A

An Analysis of Social Media in Building better Customer Relationships

Appendix

Social Media - Company Policy 5. The disclaimer should be something like "the views expressed are mine alone and do not necessarily reflect the views of (your companies name)."

6. Internet postings should not include company logos or trademarks unless permission is asked for and granted.

7.

Internet postings must respect copyright, privacy, fair use, financial disclosure, and other applicable laws.

8. Employees should neither claim nor imply that they are speaking on the companyʼs behalf.

9. Corporate blogs, Facebook pages, Twitter accounts, etc., could require approval when the employee is posting about the company and the industry.

10. That the company reserves the right to request the certain subjects are avoided, withdraw certain posts, and remove inappropriate comments.

A positive thing about social media policies is that you don't have to reinvent the wheel.

There are a number of good examples of social media guidelines from various companies complied by the Social Media Governance website, with an online database of over 100 social media policies.

"Social media may be a huge opportunity for your employees to help build your companies brand, but let's not forget that there also exists a tremendous risk for individual employees to inadvertently damage the companies brand and by defining a set of guidelines you help mitigate that risk." (Sundar, 2010)

Figure A.1 SM policy conversationblog.com

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

100

Mobile B Marketing An Analysis of Social Media in Building better Customer Relationships Appendix:

Appendix

Troubleshooting Social Media Q: When a negative comment is left on your blog( Twitter, Facebook or YouTube) page what should you do?

A: First, don't panic or delete the comment. Try to understand and investigate if the comment is justifiable. Use the opportunity to thank them for their feedback.

Don't get defensive it will only make things worse. Engagement is how you find new information and ways to think about your business different. Plus you will find that there are some who will come to your defense. Treat criticism as an innovated opportunity.

Q: No one is interested in our content. No one is following our blog!

A: It takes time to collect followers. Even Rome wasn't built in a day. Tell everyone you know about your blog, engage with other online and offline and have patience.

Of course there are many more questions than answers for social media experts but it is a good idea to remember not to go into panic. The possibility is great, that the answers to every social media question has been found, it just takes more engagement to locate the source.

Q: I don't have the time to blog or participate in Social networking. Who does?

A: Make a plan and involve others, especially those who are already engaged in social media. Find passionate people in your company who enjoy engaging online.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

101

Appendix: C

An Analysis of Social Media in Building better Customer Relationships

Appendix

Provided by SMI: Social Media Influence Intelligence in Social Media.

Social Media Gaffes Lessons Learned

The most often-repeated missteps and misconceptions that lead to trouble.

- Underestimating influence / impact of social media critics.

- Giving the online community flashy marketing messages when they just want simple straightforward details.

Social Relevance: Viral effect costs $15 million in product recalls.

Social Relevance: Twitter may be a new medium but you shouldnʼt relinquish control of your corporate communication to ʻan over enthusiastic intern.

- Culture of unresponsive/ uncaring customer service fuels recurring grips, becomes a PR headache.

- Failing to understand the Coke credo: "our consumer is our brand".

- Petition the public for crowdsourced ideas.

- Giving junior employees full reign of the channels and providing them with little direction.

(Bernhard Warner, SMI,Oct. 2010)

Social Relevance: While BP spent £93 million on ads, social media kept the pressure on. 350 ʻBoycott BPʼ Facebook groups formed and 188,000 followed fake @ BPGLOBAL PR. Social Relevance: United had 9 months to placate Carroll before he penned his protest song. Instead they were confronted with a backlash millions empathized with.

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

102

Appendix: D

Social Media Facts: A Global View

Appendix

13 Global Facts About Social Media conduct by InSites Consulting (Retrieved Oct. 2010)

Participating Countries: Belgium, The Netherlands United Kingdom, Spain Italy, Portugal France, Germany Romania, USA Brazil, Australia Russia, China

Findings: 1. 90% of the 2.884 participants report to know at least 1 social network website. Users know 4, non-users 2.

2. 72% of all participants are member of at least 1 social network website. Brazil 95%, USA 84%, Portugal 82% 3. On average users have two memberships. Out of all reported social network websites.

Facebook has the highest awareness worldwide: 83%.( Myspace 73%, Twitter 64%) 4. Users of social network websites seem to be saturated. 28% of the internet population are not active on a social network because they don't want others to see their personal information.

5. On average the social network users log in twice a day.

6. Sending personal messages is the most popular online activity. 83% of users sometimes become a member/fan of something.

7. On average connected people have about 195 friends. In Brazil people have on average 400 friends.

8. Everyone removes friends sometimes, however less common on professional websites compared with personal websites.

9. People lack trust in their social network website, especially in personal websites.

10. 13% of all users claim to have a far-from real image on at least 1 social network website.

Users are eager to post something happy.

11. Asian and West European users are completely opposites when looking at their online behavior. Asians are more open.

12. More than 1 out of 2 social network users cannot access their profiles at their work because it is blocked by their employer.

13. 20% online population are already user of a social network website and will even expand their membership.

Overall 44% think that a brand posting about itself is credible.

To read more about InSites Social Media Global study please visit www.insites.eu

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

103

Appendix: E

Survey of Social Media Usage

Appendix

The Survey This appendix contains the results of the social media survey that was conducted between September 22, 2010 through October 11, 2010 to investigate how people make use of social media and social networking site. The data reported herein reflects the survey responses of 65 out 100 potential surveyors. The results are summarized in this appendix.

Participants Date: Sept. 22 - Oct. 11, 2010 Participants: 65 - Female: 39 (60%) - Male: 26 (40%) Average age: 24- 34 "

- 33 (50.8%)

Fig A.2 Image credit Juliann Cartoon

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

104

Appendix: E Default Section

Survey of Social Media Usage - Questions

Appendix

INFORMATION: Thank you for taking the time to complete this survey. This study is researching the usage of social media tools among Rema 1000 and discount shoppers. This survey should take approximately 4 - 6 minutes to complete. Your answers will be completely confidential.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

105

Appendix: E

Survey of Social Media Usage An Analysis of Social Media in Building better Customer Relationships

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

106

Appendix: E

Survey of Social Media Usage An Analysis of Social Media in Building better Customer Relationships

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

107

Appendix: E

Survey of Social Media Usage An Analysis of Social Media in Building better Customer Relationships

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

108

Appendix: F

Raw Data

Survey of Social Media Usage

Appendix

Figure A1. and A2. Gender and age profile charts. n=65

Figure A4. A list of SN tools. n=65

Figure A3. Percentage of social media interaction with a retail store. n=65

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

109

Appendix: F

Raw Data

Survey of Social Media Usage

Appendix

Figure A6. The most used social networking channel. n=65

Figure A5. Percentage of online communication usage. n=65

Figure A7. Table log displaying the amount of time spent on social media sites. n=65 Figure A8. Table log listing the top 10 reasons why people use SM. n=65

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

110

Appendix: F

Raw Data

Figure A9. Chart displaying the percentages of amount of influence when conducting an online search . n=65

Figure A11. The table shows the percentage of respondents that have or have not visited Rema 1000 website. n=64

A Social Media Report by ŠSondra L. Duckert

Survey of Social Media Usage

Appendix

Figure A10. Amount of respondents that have or have not shopped at Rema 1000. n=65

Figure A12. Represents the percentage of respondents regarding the importance (or not) of using SM tools on Rema 1000's home website

An Analysis of Social Media in Building better Customer Relationships

111

Appendix: F

Raw Data

Survey of Social Media Usage

Appendix

Figure A14. Number of Rema 1000's fans on Facebook.

Figure A13. Percentage of respondents that would like to receive notices by Email, Facebook, Twitter, etc.

Figure A15. Table shows the response when asked why people enjoy shopping at Rema 1000.

A Social Media Report by ŠSondra L. Duckert

Figure A16. Rema 1000's service in comparison to other discount stores. n=65

An Analysis of Social Media in Building better Customer Relationships

112

Appendix: G

Appendix

GLOSSARY

Glossary Terms Blog" "

" "

" "

" "

Originally ʻweb logʼ a website where the most recent entries appear first, typically allowing users to subscribe to updates and to leave comments.

Bookmarks, bookmarking " " " " " " " " "

Saving an item, page or website for future reference, increasingly via an online account such as del.icio.us. Works in a similar way to the ʻfavoritesʼ feature of a web browser.

Communities " "

Online networks that exist around shared interests or shared content.

"

Content communities "" " " " " " " " "

Communities which organize around and share particular kinds of content. Popular content communities exist around photos (Flickr), bookmarked links (del.icio.us), news (Digg) and videos (YouTube).

Instant Messaging (IM) ! " " " "

A form of real-time communication via the internet between two or more people based on typed text, for example Google Talk.

Mash-up " " "

" "

A hybrid web application combining content from two or more different data sources, for example data added to Google Maps.

Micro-blogging "

"

Instant publishing of bite-size amounts of content via a service such as Twitter.

RSS " "

"

" "

" "

"

A method of subscribing to a siteʼs content and being alerted to new updates without visiting the site, either through the userʼs web browser or an RSS aggregator (for example Bloglines).

SECOND LIFE "" " " "

" "

The best-known ʻvirtual worldʼ, in which users can move around and interact with one another and the environment as 3D characters (avatars).

SOCIAL MEDIA " " " "

" "

Media that users can easily participate in, share and create content for, including blogs, social networks, wikis, forums and virtual worlds.

" " " " Really Simple Syndication "

"

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

113

Appendix

GLOSSARY

Appendix: G Glossary Terms Tags, Tagging! " " " "

" "

Keywords that label pieces of content (for instance blog posts, bookmarks) and make them easy to organize and search.

Technorati! " "

! "

! "

Is a search engine for tracking over 113 million blogs. It has a system for registering and categorizing blogs.

Twitter! " " " " "

" " "

" " "

A micro-blogging service that distributes bite sized chunks of text across multiple platforms, including mobile, instant messaging and email. Messages are often status updates about what a user is doing.

Virtual worlds! " " " "

" "

An online environment in which people can interact with each other and the environment as 3D characters (avatars).

Vodcasat" " "

" "

Video files that are published on the internet and can be subscribed to, a derivative of podcasts (audio files).

" "

Compiled by: iCrossing.com

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

114

Appendix: H

2010 Social Media Icons

Appendix

... and more.

A Social Media Report by ŠSondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

115

Appendix

Appendix: I

Useful Websites

Apple iTunes http://www.apple.com/itunes/

"

"

Audacious http://audacious-media-player.org/

Bebo http://www.bebo.com/

"

"

Blogger https://www.blogger.com/start

Bloglines http://www.bloglines.com/""

"

"

Boardtracker http://www.boardtracker.com/

del.icio.us http://del.icio.us/""

"

"

"

Digg http://digg.com/

Facebook http://www.facebook.com ""

"

"

Flickr http://www.flickr.com/

4Radio https://www.channel4radio.com/ "

"

"

Google Blog Search http://blogsearch.google.com/

Google Earth http://earth.google.com/ "

"

"

Google Talk http://www.google.com/talk/

iCrossing http://www.icrossing.com " "

"

"

Jaiku http://www.jaiku.com/

JotSpot http://www.jot.com/"

"

"

"

Last.fm http://www.last.fm/

LinkedIn http://www.linkedin.com/ " "

"

"

MySpace http://www.myspace.com/

Newsgator http://www.newsgator.com/home.aspx"

"

Open http://open.typepad.com/open/

Podcast Alley http://www.podcastalley.com/" "

"

Pownce http://www.pownce.com/

Rojo http://www.rojo.com/today/"

"

"

"

SearchSense http://www.iCrossing.com/search-sense/

Second Life http://secondlife.com/ " "

"

"

Socialtext http://www.socialtext.com/

iCrossing http://www.iCrossing.com/""

"

"

Technorati http://technorati.com/

Twitter http://twitter.com/ " "

"

"

"

Twitterific http://iconfactory.com/software/twitterrific

TypePad http://www.typepad.com/ " "

"

"

Wikia http://www.wikia.com/wiki/Wikia

wikiHow http://www.wikihow.com "

"

"

Wikinews http://en.wikinews.org/wiki/Main_Page

Wikipedia http://en.wikipedia.org/wiki/Main_Page"

"

Windows Live http://home.live.com/?mkt=en-gb

Wordpress http://wordpress.org/"

"

Yahoo! Podcasts http://podcasts.yahoo.com/

"

"

"

YouTube http://www.youtube.com/ Compiled by: iCrossing.com

A Social Media Report by ©Sondra L. Duckert

An Analysis of Social Media in Building better Customer Relationships

116