Presentation on theme: "The Power of Social Media By: Pete Marcus 5/13/13 Bus 550."— Presentation transcript:
The Power of Social Media By: Pete Marcus 5/13/13 Bus 550
3 Business Cases 3 cases from the Stanford graduate school of business: Amplifying Perceptions: How JetBlue uses Twitter to Drive Engagement Satisfaction How Dell Clears Inventory Through Twitter Bonobos: Customer Intimacy Through Community Development
Jet Blue- When and Why Jet blue joined twitter in to target its loyal frequent flyers Build Brand thru engagement They tweet honest and transparent info to connect with potential customers
Twitter vs. Facebook Started twitter because more mobile Users were more prone to talk about the product while using the product Twitter allows you to jump into conversations “Twitter gives this audience a chance to experience us before they’re even on one of our planes. For both the loyal customers and the potential customers, Twitter was a medium for engagement and making the brand familiar“.
Jet Blue Cheeps Launched "All you can Jet" Buffet -Sept 8-Oct 8, 2009 $599, fly as much as you want Cost to advertise this promotion- essentially free Sold out in 48 hours Q3 Profit million profit Q3 Profit million loss
Preemptive Customer service 10 employee twitter team could instantly address and resolve issues Can literally engage with them while they are sitting at the gate Example-bike handling fee Many people didn’t like the fee or how it was handled Within 24 hours- Problem fixed!
Twitter Changed the Company Twitter has changed corporate communication Normal corporate responses take days if not weeks More casual and immediate interaction Both profits and customer service increased
Dell Clears Inventory through Twitter June of 2007 Dell launched the Twitter Outlet Needed to sell returns (no longer can label new) Bubble inventory- don’t know what they will have
Look BIG, Act small Twitter allows a giant corporation like Dell to connect to customers like a mom and pop store would Realized potential to help customer service, opened over 80 Dell accounts to help with etc.
Power in Numbers April ,000 Followers Over 1.57 million by April 2010 Dell interacted with over 3.5 million people through not only Twitter but also Facebook, Direct2Dell and IdeaStorm
Twitter Impact$ Dell Since Dell has earned $3 million in the U.S. market Globally, Dell earned $6.5 million Average earnings- $3,000 per tweet
Pants- 1 leg at a time Bonobos Founders: Brian Spaly and Andy Dunn Classmates at Stanford Graduate School of Business Launched Bonobos following graduation in 2007 Goal: Fix men’s pants crisis
More Please Customers were so happy with the pants that they wanted Bonobos to expand their product line However, Dunn worried that it may hurt what they already have and dilute pants brand Decided to expand and they needed an outlet to spread the word that Bonobos was not just about pants, and would offer more quality products for men
Which Extreme are you? Ralph Lauren Sold what they thought customers wanted Threadless Consumers could vote on designs, and they would sell most popular BIG Hole in the middle of the two
Develop the Middle Bonobos developed a community driven platform that would focus on: social media, commentary and purchase behavior Merchandising team would choose which products they feel consumers want, and then the community would decide from those products Leverage community and tech to promote and sell 40% Word of mouth 30% promotions 30% though Facebook and other internet marketing
Time to Deliver More Through the Internet, Bonobos would run 3 campaigns 1- Boat Shoes- target people who like boating and sailing $1000 to run, drove 2,000 people to their site 2- Collar Stays- target men in twenties One type could open a bottle or be a screwdriver Drove 300 people a day, conversion rate was low 3- Bags- target investment bankers Only 50 people came to the site when they had 135,000 impressions
Ninja Program Ninjas would exceeded customers’ expectations in every interaction Good employees bored Bad Employees overwhelmed Compensated Ninjas at higher levels than retail sales Up to $60,000 starting salary plus equity ownership Would interact personally with thousands of Bonobos customers via: , “in-person” fittings, Twitter, and by managing the Facebook campaign
Corporate Communication Bonobos saw social media as the main communication for the company. Managing Engagement They used Facebook to interact with customer: Should we enter Children's market? Started Question of the day on Twitter- any question Also offered coupon for next purchase if they gave feedback on this purchase Conversational Commerce Goal is for the customer to drive the brand, and not try to expand vertically Want to "own" the customer
In the End All 3 companies joined Social Media All 3 companies realized the value of interacting with the customer All 3 companies improved customer service All 3 companies generated more profit because of Social Media
Jet Blue Question Why Did Jet Blue drink the Twitter Kool-Aid? A- More mobile than Facebook B- Users more likely to engage when using product C- Can jump into conversations D- All of the above ANSWER- D
Dell Question Why did Dell have a need to join Twitter? A- Because they loved the Hashtag symbol B- They wanted to become strictly an on-line business C- They suffered from Bubble Inventory D- All of the above ANSWER: C
Bonobos Question Bonobos focused on what type of platform? A- Computing Platform B- Community Driven Platform C- Diving Platform D- Vertical Platform ANSWER: B