Case Study: Social Media Strategy Walmart – Informing Customers and enhancing Brand reputation

Walmart’s social media strategy is two pronged where in the primary objective is to make customers and potential customers recognize Walmart offers the lowest prices compared to its competitors in the industry with a mission to  is to save money so they can live better lives and  second objective is to protect, defend and enhance Walmart’s reputation. For Walmart, interactions with customers on social media have proven to be a pivotal of their marketing efforts. Walmart benefits from a staggering flow of daily engagement that spikes during November, the peak holiday season when customers drastically increase their spending. The objective behind the corporate affairs social effort is to have meaningful social conversations to influence perceptions about Walmart.

Walmart partnered Google, and that has a local bent, incorporating inventory at nearby stores into Google search results. If you search for any product Stephen F. Quinn, chief marketing officer at Walmart explained, Google will tell you if you’re local Walmart have that product in stock, and it will tell you that store’s location. Walmart started experimenting with this process since 2012 and has increased its efforts for the holidays. Walmart uses Facebook to announce its local store manager’s special on the various offers and discounts in its stores as these offers differ from store to store. Walmart marketing runs the sales side of digital at Walmart where four thousand of the 10,000 Walmart stores have their own Facebook pages.

Walmart predominantly depends on half-million monthly pieces of user-generated content on Facebook and Twitter. Walmart has enjoyed 60,000 daily interactions on social media across 7 dedicated social handles and claims a stunning 10x ROI. With 31 million Facebook fans, more than any other brand on the network, it is no surprise that on Black Friday last year, Walmart received comments at a rate of 42 per minute. "We have ROI that's really strong. And, it's transforming our organization. This level of engagement we now have with customers is changing a whole bunch of other aspects of our marketing," said Walmart marketing Chief Stephen Quinn.

Walmart social media strategy is to use its online platforms to connect with consumers and generate sales. Walmart identifies influencers on various social networks and communicate directly with them about programs such as natural disaster relief efforts or the number of honorably discharged veterans the company has hired to date (30,000) on the way to its goal of 100,000 hired by 2018. Walmart also stopped paid promotions that led to gaining of followers on social media sites. In 2013, Walmart's average reach through Facebook was 474,000 with an engagement rate of just under 3 percent. In the first two months and 18 posts into 2014, that reach had climbed to 2.4 million and engagement had nearly doubled to 4.7 percent.  Walmart ultimately uses social media to present a positive face of the company, benefit the customers and also increase sales for the company.

Case Study: Social Media Strategy @ Mercedes Benz – Targeting young Customers through Social Media

Mercedes Benz has been actively engaging with customers and prospective customers particularly younger generation customers as part of its marketing and sales strategy "Mercedes-Benz 2020 - Best Customer Experience". Worldwide, Mercedes Benz has around 23.5 million fans on the national and international Mercedes-Benz Facebook pages and the company has successfully set up a benchmark in the automotive sector in terms of engaging with fans and customers. Mercedes Benz has two million likes, shares and comments monthly at the international Facebook page highlights the aggressive fan engagement who discusses the brand and its products. To attract younger generation customers like 21- to 29-year-old potential consumers who felt Mercedes Benz cars as “stuffy” and more suited to their parents’ generation, the company launched the new CLA-Class cars that feature a compact design and a relatively low price — models start at less than $30,000.

Mercedes put its main marketing focus on social networking and first established a partnership with famous filmmaker Case Neistat who in exchange for a CLA car, made four videos showing his personal experience with Mercedes’ vehicles. Mercedes also invited Instagram’s five most popular photographers to drive CLA vehicles and post photos to the site. The photographer whose post garnered the most attention won a car. Mercedes-Benz’s Nathan Tan, a supervisor of advertising said that the social media marketing effort paid off as the average age for CLA buyers fell by 11 years which is younger compared to Mercedes buyers in general. “Mercedes ended up with an 82 percent conquest rate, or percentage of new buyers who had previously chosen another brand. Seventy percent of new buyers had never previously bought a luxury car. “It was the greatest advertising in Mercedes’ history,” said Nathan Tan.

Mercedes uses Instagram along with Facebook and Twitter successfully in a powerful way and has the most active fans among all car brands. Mercedes plans on increasing these social networking platforms in 2014 to further tap into a younger generation of buyers. Instagram Shootout is where car photographers can post images on the Mercedes-Benz channel which can be rated by users to determine the winner. Since 2009 the company has been using social networking when it launched a professional journalistic network to maintain close contact with a large number of international online opinion leaders from a range of different areas, from cars and technology to fashion, design and lifestyle. Mercedes-Benz marketing strategy for the all-new 2014 CLA-Class is working well and the company believes social media as a critical platform to attract a new generation of younger buyers who have never purchased a Mercedes vehicle before. Luxury car manufacturers are aggressively engaging with fans, customers and potential customers on various social networking sites as they have to constantly engage with above set of people, build brand reputation and increase the aspiration to own the brand’s products.  

Case Study: Starbucks Social Media Strategy – Cross Promotion & Sharing Customer experiences

Starbucks, the premium coffee chain that competes with a unique selling proposition rather comfort and luxury rather than convenient quick service concept has built a significant social media presence across various social networking sites like Facebook, Twitter, Google+, Instagram, etc. The company has millions of fans and followers on the social networks and Starbucks uses social media not only to advertise its offerings but also occasionally drives customers to various stores located across the globe through promotional offerings. The Starbucks Facebook Page was created in 2008, with a total fan count of around 17,544,417 and 36,359,483 likes and Starbucks Twitter page has more than 18,300 tweets and 58 million followers. Apart from Facebook and Twitter Facebook social media strategy is built around their company web site and additional social platforms like Instagram, Pinterest, Google+, Youtube, and My Starbucks Ideas. On Instagram the company has 400 posts and more than 2.1 million followers. Starbucks has more than a million followers and posts content every few days with nearly all of it taken from its Facebook page and Twitter feed.

One of the most important for Starbucks social media success can be attributed to the fact that the fans and followers of the company can easily post the pictures, videos, tweets and status updates on the various social networking sites. Company actively encourages to share the in store experiences of the customers and also talk about their coffee and also promotes the customer stories on its social network pages which has encouraged the customer to build a long term relationship with the company and the company also benefited from the active consumer following on the social networking sites. Starbucks also is very active on the image based social networking sites like Pinterest and Instagram, where customers share their Starbucks moments—whether it be the return of a favorite holiday drink or just an artsy coffee cup shot. Customers along with their happy moments also share the promotional offers and new product launches too. Starbucks promotional programs include My Starbucks Rewards, personalized "signature" drinks, and localized store experiences. Social cross-promotion has been gaining prominence in the digital world and the company uses this strategy well as when Starbucks takes a photo, it shares it on Instagram, posts it to Facebook, tweets it on Twitter, pins it on Pinterest.

Starbucks has over the years built a strong loyal customer base of coffee drinkers who are not bothered about price but like the company’s unique selling proposition of good coffee, quality service, and a nice environment to hang around. Along with focusing on high quality coffee and customer service the company also works on many charitable initiatives. A team of five people manage the company’s social media presence and the company is sticking to principle of more customer created content rather than the company creating and posting the content on the social networking sites. Starbucks also understands the fact that each social networking site has its own unique set of users and the company needs to reach the users with appropriate content which can be done by encouraging their customers to share their experience actively through pictures, videos, posts, status updates and comments. This strategy has helped the company dominate the social media space and rank among the top companies in terms of social media presence. 

Social Media Marketing Strategy @ Coca-Cola – Coke Facebook Strategy

Coca-Cola has built an active presence on various social media platforms without much effort by the company as the brand is hugely popular and integral part of the daily lives of the people across the world. Moreover Coca-Cola’s customers themselves have been active on various social media platforms like Facebook, Twitter, YouTube, Flickr, Google+, etc.  A key step forward was made I the year 2012 when the company announced Content marketing Strategy 2020 where in the company moved from moving from “Creative Excellence” to “Content Excellence” Creative excellence has always been at the heart of Coca Cola’s advertising particularly the 30 second Television Ads and they have decided that content is now the key to marketing in the 21st century on a social web. Consumer engagement and collaboration model was adopted where in Consumers ideas, creativity and conversations on various social networks are tracked and use them to increase brand visibility and market the products. The purpose of content excellence is to create “Ideas” that are viral and uncontrolled which is called “liquid content”. Coca-Cola adopted 70/20/10 Investment principle to creating “Liquid content“, 70% of content should be low risk that pays the rent and is bread and butter marketing (also easy to do and consumes 50% of time), 20% of content creation should innovate off what works and 10% of content marketing is high risk ideas that may be tomorrows 70% or 20% or will fail.

The Coca-Cola Facebook Page is a collection of customer stories showing how people from around the world have helped make Coke into what it is today. Most of the content on the page is consumer created and the company’s focus is on maintaining the brand image and raising awareness of its ad campaigns. Coca-Cola, which joined Facebook in 2008, has garnered close to 75 million likes by engaging customers and fans actively and less focus on product promotion and more on its fans. Coca-Cola's success has been achieved through statuses, updates, videos and photos that increase customer engagement and interaction, supporting various social causes and integrating other forms of social media. Apart from promoting the widely popular Polar Bears campaigns, Olympics and Euro 2012 ad campaigns, Coke’s social team post questions and run polls often, but pictures and photos that are shared generate significant response from fans in terms of comments and ‘likes’. Coca-Cola also has a number of Facebook apps, including one called ‘When will happiness strike’ that is basically a video real of its ads and another called ‘Ahh Giver’ that allows users to send a personalised message and a free Coke to a Facebook friend. Coca-Cola also has Facebook pages for its other products such as Diet Coke and Coke Zero, however these have far fewer fans. But interesting fact is that Coca Cola did not start the Facebook page first, it was started by the company fans, and it is created by its loyal consumers. It all changed when Facebook introduced new rules which mandated that brand pages must be administered by the brands themselves and Coke decided to keep the existing page but manage it themselves rather that they starting a new page. Coca-Cola realized the fact that only traditional advertising is no longer relevant it has to be supported by active social media presence where customers actively engage by sharing opinions, videos, stories and photos and this highlights the fact that the company cares. 

Social Media Marketing Strategy @ Kentucky Fried Chicken- Customer Service & Engagement

Kentucky Fried Chicken has been actively and aggressively using the various social media platforms to promote their menu offerings, promotions, contests, new product launches and most importantly focusing on the freshness and juiciness of their chicken compared to its competitors “It’s really about connecting with fans and making sure the brand remains relevant,” said Rick Maynard, manager of public relations at KFC. KFC is active on Twitter, Facebook, YouTube, etc. and all of these channels play a crucial role in connecting with consumers all over the world. KFC has a highly loyal customer base who loves their food as they go to their restaurants across the world and also engage actively on various social media platforms. This prompted the company to actively build and maintain social media presence and engage with customers on day to day basis. Most of the fans, followers and likes that KFC garnered on various social media platforms are due to their loyal customer base and they did not spend much on building this except for occasional promotional offers and discounts to enhance customer engagement.

The KFC Facebook page has millions of likes, thousands of people talking about the company and thousands of them are checking in and updating their Facebook status. KFC has restaurants in more than 100 countries and KFC’s Facebook pages of specific countries highlight their international audience and customers actively post KFC-themed photos of their KFC restaurant visits from around the world. KFC only posts about 15-20% of promotional content and most of the posts are customer generated content uploaded and shared by customers mostly their experience in the KFC restaurants. The KFC Twitter feed has a good following and the focus is not on pushing sales but most of the tweets are related to genuine fun which most of the company fans appreciate and the two-way communication is working well for the company. Twitter campaign presented a high school senior with a $20,000 Colonel’s scholarship based on a 140-character Twitter application which also highlighted the Colonel Sanders’ dedication to kids and education. The company received nearly 3,000 tweet applications, national news coverage for the program that awards 75 $20,000 college scholarships each year.

KFC manages its corporate social media tools internally, with a cross-functional team and the strategy: to connect and engage with KFC followers, cultivate relationships and respond to any inquiries. Customers are actively contacting through social media platforms both positively and negatively which forced KFC to use social media for customer service purposes. The company does not remove negative posts and if any customer posts a negative comment/post via social media instead of a phone, company ask for details, handle it and thank them for bringing it to our attention. Since customers are looking for quick response on social media platforms the company has exclusive people online for customers’ service during all normal business hours. KFC sees the social media scene as more of an opportunity to interact and engage their customers, not much focus is placed on the return on investment the activity generates. We don’t get a lot of pressure to justify [the return on investment]. It’s a very important customer-service element, and that’s enough for us. It’s about cultivating relationships, and that has a real business output,” Maynard said.

Social Media Strategy @ McDonald’s – Real time monitoring & quick response

McDonald’s engages actively with their customers and fans actively on various social media platforms like Facebook, Twitter, Pinterest, YouTube, etc. and is a complex task for the company to do so as it operates in 118 countries across the world. Company has to make sure it is sending a consistent and uniform message to its customers across the globe.  According to McDonald's Global Director of Digital and Social Media Sosti Ropaitis, McDonald’s is global decentralized brand and the local marketing teams within each market take their own decisions exclusively for those markets. It is even more required because of the social, cultural changes that each market has and also the different menus that company customizes according to each market requirements. But the company headquarters will take care of the global campaigns related to global sporting events like Olympics and World Cups. Some of the regional or country specific campaigns like the McDonald’s Canada Campaign “Our Food. Your Questions” giving people a chance to ask the company anything about its food are highly successful.

Real time monitoring is essential part of McDonald’s Social Media strategy. Every month, McDonald's tracks between 2.5 million and 3 million conversations on social media sites in an effort to identify consumer trends. The company uses tools like Radian6 and Sprout Social that helped in increase the speed and visibility of certain issues as they emerge.The company relies on true engagement, which is a function of content, context and timeliness. Lot of time is spent on creating real-time content; create unique transparent campaigns that connect with audiences. Internally with the help of Legal teams, company developed guidelines that help in taking advantage of real-time marketing opportunities like celebrities walking into McDonald’s Restaurants and taking pictures with the company products or tweeting about their experience with McDonald’s, the company retweet the original tweet without adding anything to the tweet.

McDonald’s adopted the constant test-and-learn mode, wherein the company tests and evaluates the different marketing messages whenever they are rolling a new product. Company constantly talks about the various attributes of the product rather than the product itself and this engagement drives significant volumes for the new product. Quick response is also essential for the company to survive as the customers have to be answered and also the company needs to control the social conversations across the various social media platforms. McDonald’s also had certain bad experiences earlier with their social media campaigns and the company seems to have learnt lesson and realized the fact that it is better to keep a constant monitoring on the social conversations and respond as and when there is a negative conversation and try contain the damage or else the company’s brand reputation will take a beating. The biggest learning from McDonald’s Strategy is that for quick response on social media platforms first social conversations have to be monitored on a day to day basis and create an internal framework, guidelines and teams that can respond without wasting time. 

Social Media Marketing Strategy Case Study – Intel Inc. presence on Facebook, YouTube

Intel was one of the first companies that adopted social media, actively present on major social media platforms like Blogs, Facebook, Twitter, YouTube, etc. and also uses social network styled platforms both internally to engage with employees and externally to engage with community. The company currently has 75 Intel-related accounts with nearly 180,000 followers. The company has 19 different topical or regional blogs. The company has 11 communities in several different languages plus software community for developers. Intel’s Facebook presence comprises 50 Facebook Fan Pages in different countries, led by Facebook.com/Intel, which has 1.5 million fans, plus a YouTube Intel Channel. The company is everywhere - blogs, Facebook (close to 23 million likes, close to 400,000 people are talking about the company on Facebook), Twitter (close to 2.2 million followers, more than 400 tweets and more than 1,150 followers!), YouTube (2 channels, close to 5,000 videos, more than 45 million video views and close to 63,000 subscribers!), Instagram (more than 200 posts and close to 6,000 followers), Google+, LinkedIn, etc. Intel Free Press is a tech news site from Intel Corporation, covering technology and innovation stories focused on people, technology, events and topics relevant to Intel and the computing industry.

Under Intel’s global social media strategist, Ekaterina Walter leadership, Intel has seen a good 10% to 12% monthly fan base growth. Her principles for Facebook engagement include original content, not just automated, and original videos, not just YouTube links. In August 2012, Intel’s campaign “How computers were made” post on Facebook attracted 102,5K+ likes in a week since it was published on August 9. More than 34,069 people have chosen to share the link, while 3,258 commented on it. 80%, of the conversations around Intel and products happen on blogs and twitter. Facebook usage within the business has also increased with 250 individually created and managed pages which was becoming difficult to co-ordinate and manage multi market campaigns. After reviewing 250 Facebook pages  and 250 Twitter handles/account  presence,  Intel took the decision to alter their social media strategy from being decentralized to a centralized global strategy supported by internal guidelines, training programs, content editorial, publishing schedules, supplemented by a suite of publishing Vitrue, listening, Radian6, & internal reporting tools. This centralized strategy allows them to listen and respond globally, locally or to individuals, based on the context of the conversation.

Intel’s marketing is not just about hardware, chips and engineering--“experience” is the new focus.  "People don’t buy processors…they buy experiences," said David Veneski U.S. Media Director, at Intel Corporation. “You need to turn a moment into a momentum, and a momentum into a movement,” Veneski said. Projects like Intel’s Museum of Me use social media to encourage users to create a “visual archive of their social life.” Another campaign, “Intel Ultrabook Temptations” is a collaborative social experiment to assess how desperate people will be to get their hands on the product. In this experiment users are encouraged to jump around on a custom-built measurement device to generate their “excitement” rating and the event is captured on video and shared socially as the feature on Intel’s YouTube page.

“The focus has shifted from being iconic to posting a status update," said Veneski which makes Intel more humanized and relatable to the consumer. Intel is embracing social media and using it as a key element to understand the driving factors behind day-to-day experiences. Intel’s products are at the core of technologies that people use, and users like to capture those experiences, talk about them, and share them with friends, families and others. Through blogs, video, and social networks like Twitter, Intel is actively onboarding new customers’ faster and strengthening relationships with existing customers. Like most companies, the online community was initially built by marketing. "It is integrated into our marketing plan," explains Laurie Buczek, who heads enterprise marketing for Intel's Storage Group and works closely with the leaders of Intel's 3,000 to 4,000 salespeople. Intel also uses YouTube, which enables product managers to vividly demonstrate new technologies and Twitter (@Intel). Intel’s Social Media Center of Excellence sets the strategy and guidelines for all social media content across the company’s far-reaching locations and business units. 

Social Media Recruitment Strategy Case Study: Accenture Plc.

Social media has become an essential and powerful recruiting tool available for HR managers and also changed the recruitment process by bringing relationships to the forefront. There is great value in leveraging this tool just because of its natural potential to multiply connections, build viral networks and reach talent faster. The use of social media as a recruitment tool has taken off in recent years with a number of high-profile companies like Accenture, Infosys, Burger King, Reckitt Benckiser, SABMiller, etc. using it to recruit talent for their companies. According to Suzy Style, Accenture's UK recruitment director, the professional services company turned to social media including Facebook, LinkedIn and Twitter to adopt a more aggressive recruitment strategy to find talent. "There is a global war for talent and we believe that to [gain an advantage companies need to] develop long-term relationships with candidates. Social networking sites are one of the key enablers in achieving this," Style says. The popularity of social networks among graduates is one of the reasons the company started to test social media in the recruitment process.

"We're advertising all our roles through social networking and particularly in experienced-hire recruiting on sites such as LinkedIn and what we're finding is [LinkedIn] particularly plays to the strengths of some groups," Accenture's Style says. "We're actively involved with some groups - SAP professionals for example - and we're seeing an increasing number of people using it as part of their strategy to find jobs." This highlights the fact that Social Media also plays a crucial role in recruiting experienced hires too. But it's not just the big names using social sites to access a new talent pool. According to LinkedIn, smaller companies are using the professional networking site's tools to recruit new talent, along with more than 25 per cent of the FTSE 100 in the UK and 50 per cent of the Fortune 100 in the US. "In terms of company size, we have everything from companies with £100bn valuations to agencies and clients that have two or three people," says Ariel Eckstein, LinkedIn's MD of hiring solutions Europe.

According to John Campagnino, senior director of recruiting at Accenture, they are saving over $100,000 for a senior hire by using social media. He estimates that Accenture will make 40% of its hires in the next few years using social media. When recruiting through Social Media platforms HR managers have to know what tools to use for recruiting what type of talent. Social Media sites like Facebook, Twitter, LinkedIn and blogs are all separate tools that may warrant different approaches. Accenture's Style says: "You might find that a graduate is more likely to be using Facebook for example and an experienced hire might be more likely to be using LinkedIn, so it's ensuring that you look at the channels for the best way to reach the people that you need."

Accenture has an employee referral program that is the management consulting company's primary source for talent. "[The] program allows employees to search for open jobs around the world and share them with their network through LinkedIn, Facebook and Twitter," says Accenture's global head of sourcing, Sjoerd Gehring."Employees can track the status of their referral through their personalized employee referral site. Through integrated communication campaigns we've been able to significantly drive up the volume and quality of employee referrals." Accenture people play an important role in our recruitment efforts because our employees know Accenture well and can . . . help find the right person for the right role. Employee referrals are also a cost-effective way to fuel growth."  

In the past 3-4 years, Social Media recruiting has gained prominence and HR Managers are using social media sites for both checking the prospective employee backgrounds and also using the data provided on sites like LinkedIn in their recruitment process. The second aspect of social media recruitment is the distribution of information relating to job openings and requirements through 2nd degree network referral effect like Facebook’s “Like” and “Share” buttons, Twitter’s “ReTweets” and LinkedIn’s that allow rapid spreading of content (i.e. jobs and candidate referrals) to second and third degree networks, that also pushes message out to a much larger and more qualified audience. Another big advantage is the low cost factor as most of the social media sites are free to sign up and also charge lesser amounts of sign up fees which will definitely help the companies to save money on recruitment processes. But the fact remains that social media recruitment is a good option but companies still have to rely on traditional sources of recruitment for majority of their recruitment and for best results they should maintain a best mix of both the types of recruitment. 

Social Media @ Honda Motors - Honda Loves you back & #Hondainnovator series

Honda Motor Company had been using social networking sites since past five years and had been present on all the major social networking sites like Facebook, Twitter, YouTube, Flickr, Pinterest, etc.  Honda social media strategy is based around supporting business and corporate goals such as new product launches, corporate communications, public relations messages, tackling rumors, engaging with customers and communities like  fans/ racing community and more. Honda is effectively using the social networking sites to humanize the brand, keeping track of the conversations about the company, deliver key messages about their corporate social responsibility efforts on topics related to the environment and innovating new technologies, and also build relationships with journalists and bloggers. Another advantage of social media is to share customer stories around Honda products And Services, events or happenings that Honda fans might like to know about and also engage the customers, fans and others in such events.

Honda was recently given the first-ever "Driver Engagement" award at the Chicago Auto Show for the Japanese automaker's campaign, “Honda Loves You Back”. The Honda campaign showcased a music video from the band “Monsters Calling Home”, as the video was filmed inside one of the band member's Honda. The car company got the band booked on" Jimmy Kimmel Live!" in a symbolic gesture of giving back to fans of the brand. Social media campaigns like this help drivers connect more personally with a brand, as they can interact with a company by uploading their stories and photos.Since social media has become an integral part of marketing for most major car companies, the Chicago Automobile Trade Association decided to introduce a new award at the 2013 Chicago Auto Show to showcase the effectiveness of marketing through sites like Facebook, Twitter and Instagram.

Recently Honda launched a social media program, the #HondaInnovator Series, in support of a TV ad for its 2013 Civic that emphasizes on inventors and innovation in various fields. The series also includes social networking sites like Facebook, Instagram, Pinterest, Twitter and YouTube to initaite conversations about innovation and the car itself, as well as the idea that progress never stops. In a series of six one-hour tweet chats, users will be able to submit questions to inventors featured in the Civic TV spot, like baby product company 4moms co-founder Henry Thorne, Waterfall Swing inventors Ian Charnas and Drew Ratcliff and 2013 Civic Senior Product Planner Jay Guzowski. Additional content will include: Facebook posts to introduce fans to the Innovator Series; behind-the-scenes photos from the commercial and an assortment of Civic images on Instagram; and a "Things Can Be Better" board on Pinterest. In addition, on YouTube, Honda has created a so-called Innovation Playlist featuring additional content tied to the inventors featured in the Civic TV spot. Honda says its Civic TV campaign ties Honda's philosophy of innovative thinking and continuous improvement to other inventors working to develop better solutions. Promotion will include sponsored posts on the social news site Buzzfeed, promoted tweets, promoted posts on Facebook, YouTube ads and search.

Early 2012 Honda Motors launched a unique promotional campaign on Pinterest, a pinboard-style photo-sharing website that allows users to create and manage theme-based image collections such as events, interests, and hobbies. Users can browse other pinboards for images, ‘re-pin' images to their own pinboards, or 'like' photos.  Honda’s "Pintermission" campaign identifies top "pinners" and offers each one $500 to take a 24-hour break from Pinterest to explore some of the places or buy some of the products they've pinned about. Initially two women had been handed checks by Honda and are putting the money toward travel. The goal of the Pintermission campaign was to uniquely establish Honda’s new CR-V and promoted the vehicle’s “get out and live life” personality. Marketing the vehicle on Pinterest was a suitable choice, as target customers for this vehicle are young people on the edge of adulthood’s big milestones like marriage, children, etc. and young people plan those milestones on Pinterest. More than 4.6 million people were exposed to the #Pintermission boards, which produced more than 5,000 repins and almost 2,000 likes. Additionally, more than 16 million media impressions were garnered from the campaign.

Honda Motors social media presence include Facebook with close to 2.7 million likes, Twitter with close to 91,000 followers and more than 3,400 tweets, YouTube with close to 106,000 subscribers and more than 32 million video views and Pinterest with close to 6,600 followers. The company has also framed a Social Media policy and guidelines for its associates and employees that provide the rules and regulations they need to follow on social networking sites. Automobile industry is aggressively using the various social networking sites for marketing, customer service and customer engagement and they are allocating significant financial resources, appointing the relevant agencies that specialize in the social media and even recruiting exclusive managers as Social Media Managers within the company. Honda Motor Company has been using the social media effectively in its marketing, brand promotion, engaging customers and new product launches.

Social Media @ Wal-Mart – Social Gifting Facebook Application Shopycat Case Study

Wal-Mart has a very active Facebook page where it has close to 23 million likes, close to million visitors to the page and according to a statement from Facebook founder Mark Zuckerberg, he and his top management team travelled to Bentonville, Arkansas to "deepen" its relationship with Wal-Mart. The relationship between Facebook/Wal-Mart is very lucrative for both parties considering the fact that Facebook has one billion monthly users. @WalmartLabs is developing tools and technologies that will help Wal-Mart analyze the relevant information hidden in the hundreds of millions of social media conversations occurring online every day and through mapping social DNA of social networks users and sort through posts, updates, likes, comments looking to target products based on the genome. WalmartLabs defines the "Social Genome" as "a giant knowledge base that captures entities and relationships of the social world.

In November, 2011, WalmartLabs launched an application for Facebook called Shopycat, which currently has close to 20,000 likes or roughly one-hundredth of one percent of Wal-Mart's Facebook likes. WalmartLabs says the Shopycat app "makes gift giving less stressful and more fun "by analyzing their Facebook activity through likes, shares and posts using our Social Genome technology." Shopycat tries to figure out from a person’s Facebook profile what they’re most interested in, but also then has to find that product and match it to a link online. Shopycat is the first social shopping application from Wal-Mart’s recently-formed @WalmartLabs unit which is focused on developing platforms, products and businesses around social and mobile commerce. Along with products from Walmart.com and Wal-Mart, Shopycat matches users' interests to a catalog that includes other sites like bookseller Barnes & Noble and gifts store RedEnvelope.

According to Ifeelgoods.com Wal-Mart case study where they studied customer acquisition by Wal-Mart through its Facebook social gifting application called Shopycat. Ifeelgoods worked with @WalmartLabs to build the user base for Shopycat. In the initial month-long campaign, Ifeelgoods hosted a seamless user experience that gave 10 Facebook credits to users that allowed the Shopycat application and for preventing fraud credits were direct deposited into eligible users’ Facebook accounts. As an added service, Ifeelgoods assisted with driving targeted traffic to the promotion by displaying ads via the Ifeelgoods publisher network, ultimately managing campaign performance for @WalmartLabs. There was a good 42% conversion rate for users allowing Shopycat and a 27% redemption rate on the credits offer, which highlight campaign success. 50% of users shared the Shopycat promotion with their friends, and that viral earned media traffic flow generated an incremental lift in conversions of 25%. The cost per new user was far less than campaign targets, and the users directed to Shopycat from the Ifeelgoods campaign stayed with the app, making up approximately 90% of the Shopycat user base. Shopycat application success has encouraged Wal-Mart to focus more on becoming social media retail mega player.

Social Media Adoption @ Fortune 500 Companies- @Wal-Mart Labs, Social Genome

Wal-Mart Stores Inc., the world’s largest retailer and the second largest company in terms of revenue according to the Fortune 500 2012. “Through the innovative fusion of retail, social and mobile, @WalmartLabs is redefining Commerce for the largest retailer worldwide”,according to the introduction on @WalmartLabs. Wal-Mart is developing tools and technologies that will help it analyze the relevant information hidden in the hundreds of millions of social media conversations occurring online every day and use it to understand consumer trends so that they can plan their product assortments, including new products to introduce and supply to secure. Wal-Mart acquired Kosmix, the company behind real-time Twitter filter site TweetBeat, medical search engine RightHealth, and topic-specific engine Kosmix for US$ 300 million and transformed the company into @WalmartLabs with an objective to create technologies and businesses around social and mobile commerce.

According to Anand Rajaraman, co-founder of Kosmix, the company focused on developing a social genome platform that captures the connections between people, places, topics, products and events as expressed through social media — be it a feed, a tweet or a post. WalmartLabs defines the "Social Genome" as "a giant knowledge base that captures entities and relationships of the social world." Wal-Mart has been building their own in-house Social Genome since past few years with both public and private data from social media, tweets, Facebook messages, blog posts, You Tubes, it’s all streaming into Wal-Mart. Streaming in so fast, that WalmartLabs created something they call Muppet, a solution for processing Fast Data, using large clusters of machines. The Labs describes the Social Genome as their "crown jewel." Wal-Mart is essentially looking to combine data on purchase history with data from social networks with actual transaction history.

Wal-Mart is looking to transform itself into a social media retail mega player and it is investing millions of dollars into @WalmartLabs to develop new tools, applications and technologies and also acquire companies who are actively developing mobile and social media applications. Post Kosmix and its transformation into @WalmartLabs, the company acquired mobile point-of-sale app maker Grapple, location-aware mobile ad company OneRiot and a mobile app company called Small Society known for writing apps for clients like the Democratic National Committee and Starbucks. According to recent Wal-Mart press release the @WalmartLabs team continues to evolve Polaris a semantic search engine for browsing products and ease of shopping. In the past year, the group has created Shopycat, a social gift finder; Classrooms by Wal-Mart, a program to make back-to-school shopping easer; Get on the Shelf, a crowdsourcing contest to unearth new products for Wal-Mart; and Social Media Analytics, tools that use social chatter to select items to be carried by Wal-Mart. @WalmartLabs goal is to have Wal-Mart create the next great shopping experience by melding physical stores with online search and social media input.

Social Media adoption @ Fortune 500 companies – Exxon Mobil Perspective Blog, etc.

Exxon Mobil is the largest refiner and marketer of petroleum products in the world and was formed by the merger of Exxon and Mobil in 1999. The company is also the world's largest company by revenue and largest publicly traded international Oil and Gas Company according to Fortune 500 2012. Exxon Mobil adopted various social media channels to be in touch with its customers and various other stakeholders. Since April 2006, Exxon Mobil has been active on YouTube and the channel has more than 1200 subscribers and close to 700,000 views. The official channel of the company has videos highlighting the real time updates of the company, employee videos, advertisement campaigns, and videos from the top management and leadership discussing various issues regarding the company and its products, environment issues, challenges and the company efforts.

Another major effort of Exxon Mobil is its Perspectives blog which is run by Ken Cohen, ExxonMobil's vice president of public and government affairs. The blog talks about company's views on the issues, policies, technologies and trends that are shaping the energy industry and Ken Cohen talks about ideas and actions from industry, governments, researchers and many others that affect the world of energy. The blog was started in November 2011 and it is widely followed and read by many people online. Exxon Mobil also has an official twitter account with close to 26,000 followers and more than 1000 tweets and the company only provides news about the company and various activities of the company in different locations. For further discussions, people are directed to Perspectives blog.

Exxon Mobil does not have an official Facebook page but there are many pages on Facebook that is filled with lot of negative criticism. The company does not seem to be interested in a Facebook page but is very active with a blog, Twitter account and YouTube channel. Exxon Mobil uses Facebook to aggressively market its flagship brand Mobil 1 — the world's leading synthetic motor oil. Mobil 1 Facebook page was launched in March 2008 and has close to 60,000 likes. With a focus on making new friends and market its brand along with a Facebook page, a dedicated channel on YouTube and an online game was launched enabling players to take part in a virtual race against Lewis Hamilton, awareness of the brand is going from strength to strength – the game alone has been played over five million times worldwide.

Exxon Mobil has also launched Apple iPad, iPhone and Android applications for their customers. The ExxonMobil application for iPad provides immediate access to ExxonMobil’s Perspectives Blog, a vital source of energy news and analysis, continually refreshed and relevant, and includes access to ExxonMobil’s library of publications, stock information, news, videos and more. Exxon and Esso Mobile Fuel Finder apps provide real-time maps, driving directions and station information for nearly 10,000 Exxon and Mobil retail locations across the continental United States and Europe. Overall Exxon Mobil is active on those social media platforms which it feels relevant for its engagement strategy with customers and other stakeholders. 

Case Study: Social Media presence of Goldman Sachs: Looking to improve presence

Despite being one of the biggest investor in Social Media companies like Facebook, Goldman Sachs presence on Social networking sites like Facebook, Twitter, LinkedIn and YouTube is quite lackluster. Goldman Sachs joined Facebook in June 2009 and till now it has only 20,000 fans, mere 16,000 likes which is far below when compared to its peers in the Financial Services industry and also has many negative comments about the bank on the Facebook page. It started its twitter account in May 2012 and since then it has 22,000 followers and the twitter account highlights the events, work, research and employees.  Goldman Sachs official twitter account is nothing compared to a parody feed called @GSElevator Gossip, which has over 320,000 followers which reports the various conversations overheard in the bank’s elevators. Goldman Sachs LinkedIn presence has 90,000 followers and is limited to job openings, recruiting interns and informing about employee update and new hires. In February 2012, Goldman Sachs launched YouTube channel and it features videos of employees discussing careers; experts interviewed on topics such as the global economy; clients talking about relationship & work and its corporate citizenship programs. Goldman Sachs is looking to hire a fulltime social community manager who will manage its social media presence and will also monitor the activity.

The reason for such a lackluster presence for Goldman Sachs and slowly improving social media presence for most of the Banks and Financial Institutions is due to the stringent financial regulations by the regulators. Broker, dealers, Relationship managers must comply with very stringent regulations regarding communications with their clients which had become a negating factor. The SEC and FINRA quickly classified social media interactions as records just like emails or physical communications which means they must be archived and managed according to the same rules and which also means tight policing and steep sanctions these institutions face in terms of violations from the SEC/other regulators will also be applied to social media records. Most of the financial institutions were not confident that they could comply with such stringent regulations while using social media so they avoided using it. But there are significant benefits in using social media like advisors/traders/relationship managers can build trust with clients, network more effectively and use social media as a marketing tool for more business and with new tools available that help in archiving and managing social media interactions effectively, Goldman Sachs and other Financial institutions & banks have been actively improving their social media presence. Social Media policy is in place and employees are being trained in terms of how to utilize and manage the social media presence, regulatory aspects and precautions to be taken during client interactions is also provided to all the client facing teams.

Banks & Financial Institutions need to understand that the new era financial customers, clients and public are social media savvy users which also has become an active part of their day to day lives and Social media is disrupting the financial industry with the emergence of social media real time money, investment and trading communities and crowd financing which is funding new players. All the above factors have forced the financial institutions to enter the open and transparent world of Social media. Goldman Sachs too is following and improving presence.

Social Media @ Lenovo - Customer Service to improved presence on Social Media sites

Lenovo social media engagement started post their acquisition of IBM PC business in 2005 when Lenovo found that there is lot of discussion happening on various online discussion forums & blogs and customers were actively engaging and discussing the various product offerings and Lenovo decided that they should take control and own the responsibility for responding to customer queries and feedback which is critical for future business growth and improve the reputation of the company. Lenovo was a small Chinese player and with IBM PC business acquisition they became a global player with significant market share. Not only they felt the need to respond to customers but also thought that the social media customer engagement strategy will help them in making Lenovo brand a global brand. Within Lenovo all the departments from legal to marketing were assigned responsibility of interacting and managing social media presence. Legal department framed policy and guidelines for social media engagement, marketing and sales have launched specific campaigns targeting customers on various social media platforms, Customer service was provided not only by company’s employees but Lenovo also engaged peer-to-peer customer service communities for interacting with the customers and solving their problems and technical issues.

Customer Service Success - Lenovo created interdepartmental collaboration and powerful partnerships within the organization between the marketing, sales, product development and engineering teams for tackling the customer services issues. Lenovo realized in 2005 that social media could help them understand the customer's point-of-view, the major issues with service, product features, functions, delays in shipments and their impact on the global customers. According to Forrester Case Study “How Lenovo Implemented Customer Service Social Media Best Practices” social media alignment of marketing, sales, service and other departments to accelerate changes and improvements to the customer experience has led to a 20% decrease in laptop service call volumes, an increase in customer service agent productivity, a shortened product problem-resolution cycle and an increase their Net Promoter Scores. The net-net is a reduction in customer service support costs and an increase in sales. Social media engagement with customer was even more necessitated due to the fact that customer service costs for personal computing products was rising constantly, putting pressure on margins and since products were becoming complex, the level of expertise for the customer service representatives also had to be improved by constant training which was adding to the costs and effecting margins.

Social Presence on various sites - Lenovo social media program moved from customer service to a larger program where along with customer service the company used the various social media platforms for marketing its products, new launches, and enhance brand reputation. Lenovo’s has an internal social media team which works round the clock to not only develop but also constantly refresh content (text, images and videos) for all of Lenovo social media pages which include Lenovo Vision YouTube Channel ( Around 9000 subscribers & 14 million video views), official Lenovo Facebook page ( Around 10,000 people talking about Lenovo on Facebook & 350,000 Likes), Flickr stream, Lenovo Blog, Lenovo Twitter feed (not to mention various regional feeds & around 5000 tweets & 22,000 followers) and it’s customized social media website, Lenovo Social which  aggregates all the content from different social media sites in one central location to provide an easy and complete view of all things social wise. Lenovo launched its Community forums in 2007 and it has more than 15,000 volunteers and the forum site is visited by millions of users every month. Till early 2012 Lenovo had pursued multiple blogs strategy by publishing many blogs on various topics but the blogging strategy was changed and redesigned to centralize Lenovo's existing blogs and social media in an engaging, navigable, and branded way, using one easily maintainable CMS.

Social Media use at CES 2012 - During International Consumer Electronics Show or CES 2012 held at Las Vegas, Lenovo used various social media tools and its presence on various social media platforms to reach its targeted audience effectively. Gavin O’Hara, Lenovo’s social media editorial lead, gave Text100.com an in-depth overview of Lenovo’s social numbers as well as measurement tools from CES and a snapshot of the outcome of Lenovo’s social activities during CES, both online and offline were as follows:

• Twitter: Lenovo CES tweets reached a potential audience of 17 million people
• Facebook: Lenovo posts reached an audience of 250,000 people while generating more than 1.3 million impressions. For the week, the Lenovo Facebook page received 3,000 likes, 800 comments & 300 “shares” 
• Flickr: Photos of products, parties and people got more than 25,000 views on the Lenovo photo library
• Lenovo Blogs: The behind-the-scenes blog posts got more than 25,000 page views
• YouTube: Lenovo CES-focused videos were watched by more than 50,000 people in a week. An astonishing 25,000 alone watched the Yoga “Hands On” interview. 

Lenovo Social site which aggregates content from the various social media sites like Twitter, Facebook, blogs, YouTube, Flickr etc. into one place and also helps customers, volunteers and Lenovo teams effectively navigate and manage the back-end of the site to manage blog content, and each contributing author gets his own account with necessary controls to access the content areas relevant to him. Another unique feature of the site is a new tagging schema that de-compartmentalizes blog topics so that users can find content easily, filter by topics, products, recent, or popularity and users can click through all blog posts in one place. Lenovo had set up a digital & social hub in Singapore in 2011 that centralized digital thinking and strategy planning to support marketing plans in various regions and also execute marketing campaigns, monitor buzz, and form support teams dedicated to answer technical questions on social channels. Lenovo social media strategy is all about engaging with customers, informing them about various products & services, solving customer issues and technical problems, and company is effectively using various social media platforms and has achieved its target of being the Global brand. The recently launched “The Do Network”, a new social media-fueled brand engagement highlights the importance of social media presence and engagement in overall Lenovo future growth strategy.  

Social Media in India 2012 – User Base & engagement expected to increase

Similar to the global phenomenon Social media in India is driven by young and educated in the cities and towns across India and 2011 saw a tremendous rise in the number of users and their activity in terms of time spent, engagement levels and quality on various social networking sites. According to Telecom Regulatory Authority of India there has been rapid rise in the number of internet users in India and has reached 121 million users in 2011. Broadband too has seen significant growth in 2011with 13.30 million users (22% YoY) compared to 10.92 million users in 2010 and is expected to reach 15.9 million users by end of 2012. 80% of the internet users are urban users and 20% are rural users in India and educated young people and professionals across industry verticals like IT, BFSI, Retail, Automobile, Pharma, etc are driving the social networking sites usage in India. Indians migrate to United States (US) for education and jobs and most of them will be in constant touch with friends in India which led to the rise in usage of social networks and it was even more increased as US companies set up offices in India employing thousands of people here, Indians using more technology products like mobiles, laptops, other computing devices like PCs, tablets and finally the voyeuristic appeal with open networks drove the usage further.

Most popular social networking site in India is Facebook as recently it has dethroned Indonesia from the number 2 slot with 46 million monthly active users in February 2012 on the site, an increase of 132% from the prior year. 75% of Facebook users in India are male and metro cities dominate the usage in India. Google+ has a total user base of 12.3 million in India with 86% of the users being male and dominated by students and young professionals. Twitter has a total user base of more than 14 million in India and is the sixth largest country in terms of accounts and the micro blogging in India has not risen in India when compared to other social networking sites as Indians are not comfortable with a 140 character limit. LinkedIn the professional networking site has more than 14million user base in India and is one of the rapidly growing social networks in India.  Orkut was the initial dominant social networking site in India until Facebook entry and it has around 18 million user base in India but the network which was acquired by Google is fading into oblivion as Google is more focused on Google+. Indian social networking sites too have significant user base in India and Ibibo has around 12 million users base and BharatStudent has around 7 million users base.

Urban cities like Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad, Pune, Ahmedabad and other tier 1and 2 cities and towns dominate the social networking usage in India. 75% is dominated by male and mostly the young students and professionals in the age group of 18-24 are dominating the social media usage followed by the 25-34 age group. They spend hours every month on the various social networking sites and actively engage with friends and others. Most of the users are using social media to stay in touch with friends, track and update their activities, social gaming, follow groups and communities, discuss social, political cultural and entertainment topics and also look for information about brands, products and also provide their feedback. People are actively voicing their opinions on the social networks as was evident during the Jan Lokpal movement by Anna Hazare and his team in 2011 and the movement was supported by people actively through the various social networks. Accessing and using the social networking sites through mobiles is also on the rise as most of the cell phone manufacturers selling in India are selling handsets that are easy to use for social networking and are having inbuilt social networking applications of the popular social networks at low prices.

There has been rapid rise in the number of ecommerce portals in India and also businesses selling their products and services online. Most of these businesses are actively engaging their consumers on the various social networks through games, contest, and other content. Telecommunications services providers like Tata Docomo, Airtel, Vodafone, Mobile handsets makers like Samsung, LG, Nokia, HTC, Automobile manufacturers like Ford, Maruti Suzuki, Mahindra & Mahindra, Volkswagen, ecommerce sites like Flipkart, sports goods manufacturers like Nike, Adidas, beverages like Bacardi, Pepsi, Coke and consumer products like Nestle Maggi, etc are all very active in India and many Indian users are actively engaging with these brands and companies. Content focused at Indian users both by businesses and individuals is being created and Indian users of the various social networking sites like the content and making the content viral like the recent song Kolaveri Di. Most of the celebrities belonging to the cinema world, sports personalities, politicians, artists, business leaders and activists are all actively engaging and participating in the various social networking sites. Indian Users are also actively engaging in the global issues and events on the social networking sites and voicing their opinions.

There also have been some issues with social networking sites in India and the government had issued notices to all the major players in the country in relation to the derogatory content and content that is hurting the feelings of certain sections of the people. The government has instructed the social networking companies to sensor such content and remove it immediately failing which strict penalties and legal actions will be taken against the companies responsible. The rapid rise in the social media usage in the recent years has forced the government for regulating the usage and the policy was framed last year in this regards. There were protests against too much regulation by the government as the users were concerned about their right to express themselves freely but due to certain incidents over the various social networks that hurt the sentiments and feelings of people government were forced to act and frame the policy.

With increasing penetration of the internet and improvement in the technology infrastructure in India, the social media usage in India is expected to increase and this will be even pushed further with significant rise in the sales of the mobiles, laptops, tablets and other computing devices in India. With availability of more information about brands, companies, issues, hobbies, interest etc and increase in presence of companies, governments, politicians, celebrities etc the social media usage across all the age groups is also expected to increase in near future. There is also significant push from the social networking companies and social gaming companies focusing on the Indian User base will also see growth in user base. These companies are localizing the content, providing language supports in local languages and also improving the underlying technologies so that the users can use these sites easily. Privacy issues in terms of individual privacy, personal data security, government and regulatory policy issues in terms of content and the issue of targeting the ads based on personal sensitive information are the significant negative factors that may hamper the growth in near future. 2012 will be interesting and exciting year for social media in India.

Social Media @ Indian IT Vendors – Adoption of Internal Social Networking tools/platforms on the rise – Key Statistics

Adoption of social media is on the rise in Indian IT companies as the internal social networking tools that are similar to Facebook, twitter and collaborative tools like blogs & wikis help in communication among employees and between employees and managements, knowledge management, and also helps in curbing the higher attrition levels in the companies. The rise of social networks like the Facebook, Twitter, LinkedIn, etc and millions of users that log on to these networks and actively engage with friends, communities and others have forced the Indian IT companies to build internal social networks for their employees as the employees particularly the young employees fresh from the colleges and universities (average age 22-26 years) who are already active on various external social networks are also looking for similar platforms for interacting within their organizations as these companies have more than 1,00,000 employees spread across the globe. Employees use these internal social networks not only to collaborate on projects, share knowledge and interact with colleagues and clients but also share their personal information & opinions, passions, hobbies and participate in various cultural events. Social networking tools and platforms provide employees an opportunity to engage with the management and actively participate in the organizational development activities and voice their opinions on the various strategies and policies. Employees will be motivated and will work with greater commitment for the organizational goals.

Indian IT vendors are investing in these internal social networking platforms both for engaging their employees and also sell these platforms to their clients who can use them in their employee engagement. Significant investments have been made by Indian IT vendors over the past few years as the social networks have seen tremendous growth and most of the companies be it large, medium and small are all making sure that they are present on all the major social networks and are also encouraging their employees to actively participate and interact on these networks. Most of the companies have formulated a social media policy and guidelines for their employees too. This provides an opportunity for the Indian IT vendors to extend their offerings into the social media platforms and help their clients in communicating with the employees, clients and other stakeholders, increase collaboration and knowledge management and monitor the social networks in terms of the employee engagement, brand reputation, consumer opinions, feedback and complaints so as to avoid any brand or reputation damage. Companies are looking for social network platforms that are secure, do not violate the intellectual property rights, and provide an easy to use platform for their employees, customers and other stakeholders.

Employees in Indian IT companies are actively engaging in the internal social networking platforms as evident by the details provided by major Indian IT vendors like TCS, Infosys, Wipro, HCL and Cognizant Technology. Employees are actively creating their work and personal profiles, expressing their interest, hobbies, affiliations and uploading content like photos, music, and videos. Lakhs of employees spread across the globe are actively interacting, understanding and appreciating the different cultures and working on their hobbies like forming music bands, dance groups, literary groups that are totally unrelated to their work or company. Managements are allowing these activities with an expectation that employees will stick with the company for longer periods, be loyal and actively involve in developing innovative products and services and improve the brand reputation of the company and ultimately increase the revenues and profitability. Some of the Indian IT vendors have announced that there has been significant reduction in the attrition levels and employee engagement and satisfaction levels have also increased.

These internal social network platforms are not totally internal but also allow consumers and other external stakeholders to communicate with the company and its employees. Consumers and other external stakeholders are provided with necessary access and secured logins. Communication among these groups is significant as it will help in innovations and development of products and services. Innovation is critical for the Indian IT vendors and the employees as well as the management have to constantly learn about new technologies and developments that are happening in the industry so as to incorporate them into their products and service offerings. Operational efficiency will increase and the costs of communication will come down significantly as employees will be using the internal social network platforms for communication and these communications will be more productive. Indian IT vendors have to use the various social media and networking tools internally for their employees before they go to their clients offering various social media related service offerings. Their implementation and usage internally will be the best testimonial for the social media service offerings. The competition among the Indian Vendors and Global Vendors is so tight and any lapses in identifying the emerging and disruptive trends and consumer preferences and necessities will have drastic effects on the business and its survival.

Social Media in Customer Service Case Study – Dell Social Media Strategy since Dell Hell

In June of 2005, Jeff Jarvis bought a Dell Lemon and paid a premium for four year in home service plan. He started to face problems with the machine immediately and he contacted Dell for fixing the problems, but there was no proper response from Dell. Dell did not provide good service to Jarvis and with no other option he posted his angry bust on poor Dell Service on his blog Buzz Machine titled "Dell lies. dell sucks”. His blog post generated severe criticism of Dell and other unhappy customers joined and the whole blogosphere started a critical discussion of poor quality of products and how bad is Dell Technical Support service. Dell which was already struggling with poor revenues and blogosphere criticism added fuel to the poor financial performance and hurt Dell reputation badly. The problem of poor customer service and quality of products was not new as Dell was not listening to the customer complaints for long and the blogs had just publicized and gave an opportunity for the aggrieved customers to vent their anger. Dell had the first hand experience how social media can impact the business and how critical it is to listen to customer complaints and fix them fast.

It took one year for Dell to realize the extent of damage caused by the blogs and forced the company to announce a new business plan, called Dell 2.0 in 2006 that included an additional $150m investment in their customer service. The investment included sales channels, both in sales contacts & its online presence, in its website front and back end and expand the scope of Dell Connect, which enables a Dell technician to take control of a customer's system should they be encountering problems. In March 2006 a community outreach team was formed that included group of technical support experts with good interpersonal skills that listens, monitors and reaches out to bloggers around the world who have questions or may require assistance. Direct2Dell was launched in July, 2006 and in August Dell expanded blog outreach to include any conversations about Dell. Initially Direct2Dell blog was received with negative skepticism, but chief blogger Lionel Menchaca convinced bloggers that Dell was seriously listening to the bloggers and he diligently responded and linked to critics. Dell’s team staunched flow of bad buzz and by Dell’s measure negative blog posts about it have dropped from 49% to 22%. Dell even engaged external agency to monitors online conversations about Dell.

In February 2007 Dell launched IdeaStorm that allowed Dell users to provide feedback & valuable insights about the company and its products and vote for those they find most relevant. The Linux community used this platform and suggested Dell brought back XP as an option for customers who wanted it, reduced trialware and listen to customers discuss ideas in real time. StudioDell (January 07) is a place where Dell users could share videos about Dell-related topics and videos and podcasts were used to educate users on various emerging technologies and also offers tips, tricks and support to get the best out of a Dell product. Dell operated blogs and forums for dedicated customer engagement topics, joined Twitter (June 07) with a number of ids. Dell set up a centralized team, appointed a separate leadership and resources were taken from multiple teams (IT, online) to test and launch social engagement tools and websites quickly. This team had developed formal social media strategy and set of social media policies and governance were set in place.

In 2008 Dell social media presence started to yield results in terms of ROI and social media has become part of the business strategy and the various business units were provided specific targets for the social media. Employees were trained and encouraged to actively participate in various social media channels, provide customer support through blogs, twitter, etc and community managers who were responsible for listening and resolution, content planning, technology testing, planning, and measurement were named for various business units. Dell even went further with its social media initiatives a blog for the channel community was launched, online communities were launched for Dell's environmental efforts called Regeneration and technophiles called Digital Nomads and social content appeared on Dell.com (homepage navigation, product pages with ratings & reviews). The Dell outlet, small business and home offers available on Twitter had $500,000 in revenues. Dell started a page focusing on SMBs and fan pages on Facebook.

In 2009, due to the recession pressure social media team had to reduce headcount which led to the departure of key people in the social media facing teams within the Dell. The departures had an impact on the Dell social media presence had seen consolidation in number of blogs & twitter accounts, slow down in response and lack of experience had further worsened the situation. But Dell managed to keep up and worldwide community has grown to more than 3.5 million people across the social web, including places like Twitter, Facebook, Direct2Dell and IdeaStorm. @DellOutlet had close to 1.5 million followers on Twitter with $3 million in revenue and in total Twitter has resulted in more than $6.5 million in revenue. Dell launched the Dell Tech Center in 2009 to revitalize the brand and increase awareness of Dell's solutions capabilities as customers valued a trusted advisor relationship.

Dell consolidated its social media strategy in 2010 with appointment of new leadership to the social media division and together with the old members of dell social media team Dell tried to regain its focus. Another effort from Dell to maintain its focus on social media was to open up a Social Media Listening Command Center in Austin Texas under the leadership of Chief Listening Officer where real-time data is collected and visualized by Radian6 and displayed across rows of monitors that show a unique dashboard, offering instant insights into things like customer sentiment, share of voice and geography. Dell also started on Customer Advisory Panel events with a goal to bring key customers and key advocates to Dell HQ in June 2010 to understand their delights and frustrations. Other DellCAP events were held in China in November 2010, in Germany in January 2011 and again in Round Rock in March 2011, focused on Sustainability topics.

Dell continued to improve its social media presence in 2011 and Social Media Listening Command center is playing a critical role in these efforts. Dell is tracking 25,000 online mentions both posts and tweets about Dell every day and understand this information based on topics, sentiment, share of voice, geography, and trends and use it answer customer questions, address their concerns, build better products, and improve the overall customer experience. Dell has around 5000 employees trained as Social Media professionals and turned them into frontline social marketers who engage in Twitter, Facebook, LinkedIn, blogs, and more on the company's behalf. Dell views employees’ social media participation as an asset rather than a liability and accordingly doesn’t restrict team members from utilizing mobile devices, apps or social media. Dell is using social media as a platform to support various campaigns and used it in the promotion of its first Customer Event Dell World and launched website, EnterpriseEfficiency.com which is a micro site featured daily, topical blogs written by InformationWeek editors and writers as well as Dell executives to gain insights.

Social media has provided an opportunity for Dell not only to interact with customers, understand their opinions and needs but also provided a marketing platform where in they can advertise their products, improve the brand image and loyalty and improve their revenues with rise in sales. Dell initially entered into social media not to sell its products but to respond to its customer complaints and feedback but customers wanted to access to special deals from its social feeds that link to products, reviews or discounts. Dell is committed to improving overall level of customer service continuously which is 24×7 “always-on” customer service philosophy through social media and has made it a critical part of business strategy with clearly defined policy and is considered as on of the top companies in the world that is significantly profiting through the use of Social media.

Discussion points:

1. How to manage the social media presence and what strategy the company should adopt for its social media presence? ( Control, Policy & Feedback)
2. How to engage employees and other stakeholders in the social media platforms and how to use the information in organizational decision making?
3. How to generate good ROI from the social media marketing initiatives and profit from social media presence?
4. What technologies and platforms are to be used for social media and how to measure ROI?