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Brands for a social age

Archive for the tag “giffgaff”

Social Brands 100 – the road show

On Wednesday this week Headstream took the story of the Social Brands 100 to a group of thirty marketers at an ISBA event in Edinburgh.

The beautiful and cultural City of Edinburgh was a suitable place to end our SB100 road show 2012, which has seen us discuss in-depth insights and findings with over thirty-five brands that featured in Social Brands 100 this year.

We’ve had the chance to have some brilliant conversations about social brand performance and benchmarking with lovely people at: Bing, British Gas, Burt’s Chips, Cancer Research, Chiltern Railways, The Great Collective Dairy, Deloitte, Diabetes UK, Douwe Egberts, Estee Lauder, First Direct, giffgaff, Global Radio, Go Ahead Group, Help for Heroes, Holywell Spring, London Midland, Manchester City FC, The Met Office, Mongoose Cricket, Museum of London, National Rail Enquiries, The National Trust, Neal’s Yard Remedies, Nike, PayPal, Penguin Books, RSPB, Sainsbury’s, Thames Water, Virgin Atlantic, Virgin Money, Virgin Trains, White Stuff and Wonga.  Phew!

We even dropped in to Number 10 for a chat about how to measure ROI from social activity, (wins prize for meeting venue of the year!)

And we’ve taken the stage at Haymarket’s ‘Driving and Proving Social Media Value’ conference in June, and the IAB’s ‘Great British Social Media Festival’ in July, as well as gigging at some internal conferences with brand teams at global companies (if you’d like us to come to your next team get together give us a shout @headstream).

Reflecting on all of these conversations the following six subjects are the ones that kept coming up as the priority issues around social media for brand and marketing teams: 

  1. There is increasing buy-in from boards around social media, and as a result budgets for social are increasing 
  2. Uncertainty about how to prove the efficiency and return on social media investment is holding back further commitment to social spend at some brands     
  3. Some brands’ social performances remain restricted by legacy structures and ways of working. For example, how does a brand and marketing team built to deliver periodic campaigns now adapt to news-jacking and creating content at the speed of social? 
  4. A training and development challenge exists. Brands need to increase the social media capability in their teams to match the greater number of customers using social media to engage with them 
  5. High performing social brands are investing in real-time content creation teams, with a particular focus on images, video and data visualisation  
  6. Brand teams are exploring the potential for social media to boost organic search results

How does this fit with your latest thoughts on social media? As ever we’d love to know what you think.

In conversation with Jeremiah Owyang

I had the pleasure of meeting Jeremiah Owyang (@jowyang) last week, partner at social business and technology advisory firm Altimeter. I’ve always been a big fan of Jeremiah’s work, so it was a real privilege to hear some of his thoughts on the future of social business and technology. It’s fair to say that when we launched Headstream in 2006 it was the forward thinking from people like Jeremiah that helped support our idea that social was going to be big! Here are five key-points I took away:

Open will beat closed

The business models that will thrive are those which “work with the internet rather than against it”. Jeremiah believes that “open will win” and cited as an example Altimeter itself, which makes all its research openly available, compared to other research firms that charge for access. He sees Altimeter’s  business model, which gains its revenue from follow-on advisory fees, as more sustainable than the paid-for content model.

“Make the market your marketing department”

By adopting an ‘open’ business model, distributing content widely, and providing individuals with the tools to link back to your content, the entire market can become your marketing department. A business like GiffGaff is a good example of a company where the customers are working for it in this way. (GiffGaff ranked highly in Headstream’s Social Brands 100 listing, published in March)

URLs will go away

As we enter the era of the social web i.e. an internet built around people rather than machines, the traditional architecture of the internet will change radically. Jeremiah sees a future where “corporate web pages go away, URLs go away, search as we know it goes away. We will know so much about customers that we won’t need those things. Data will be used so well that we can predict and anticipate what the market wants.”

Europe vs. the U.S

Jeremiah had two observations. First, Europe is 24 months behind the U.S. when it comes to adopting social business practices, and second, Europeans are much more decorous when it comes to conversations on Twitter, in the U.S. the Twitter ’noise’ is much greater!

Teaching people to shout

If you respond to unhappy customers on Twitter without a co-ordinated and in-depth social CRM strategy in place, you are simply “teaching them to shout at you some more”. Only those companies that are prepared to introduce a service culture throughout the organization e.g. Zappos, will be able to handle customers successfully. Jeremiah is wary of any company that says it wants to undertake social CRM if the executives aren’t prepared to get personally involved.

These are a few highlights from a wide-ranging and excellent conversation over a lunch organized by Neville Hobson @jangles, and supported by Dell’s Kerry Bridge @kerryatdell. Many thanks to them for making it happen, and to the other guests @sheldrake, @benjaminellis, @jas, @abigailh and @sophiebr, who made it such a great conversation. Lovely photo here.

Was your brand born social?

To misquote the Bard: “Some Brands are born social, some achieve socialness, and some have social thrust upon ‘em”.

Following the launch of our Social Brands 100 report last week, we’ve been thinking that this famous quote has some resonance with our ranked brands.

Born social.

One of the surprise Top Five entries for some commentators is the crowd-sourced mobile operator, giffgaff. This innovative business has been making waves in the mobile space since its launch in November 2009. Conceived from the outset as a social business, where its customers can gain rewards by providing customer service and marketing support, this is one business that was ‘born’ with social principles at its core. Indeed the business model was refined through crowd sourcing the question ‘what would you want from a mobile network run by you?’.

Another interesting example is Innocent Drinks. Interestingly, the fast growing FMCG brand, launched in 1999, pre-dates the explosion of mass social behaviour on platforms like Twitter and Facebook.

But, according to Ted Hunt, in charge of digital engagement at Innocent from 2006 to 2010, the company already had social principles at its heart. His job was simply to tell this story through social channels, not to transform the business for social. Evidence that true social engagement is more about behaviour and content, not technology and platforms?

Achieving socialness.

This transformative state is the most common that our ranked brands find themselves in. A good example is the retail bank, First Direct.

Launched as the first ‘telephone bank’ 25 years ago, it’s always been an innovator.  In the last few years the Leeds based company has proved its agility once again as it develops social behaviours, and strategies. It features as the only financial services company in the Social Brands 100 thanks to its social media newsroom, i-Phone app, Little Black Book and Talking Point initiatives.

Other notable ‘achievers’ are the BBC, Ford, Burberry, Sky and BT Care. All these brands are introducing effective social principles into the way their organizations work, and rightly being recognized for it.

Social thrust upon them.

This is the most interesting group. A collection of well-known brands that have been pushed into adopting social behaviours, and business models, after being hit by a social reputation crisis.

Dell (ranked #1), Domino’s Pizza (ranked #26), Eurostar (ranked #36), Virgin Atlantic (ranked #37) have all suffered from high profile crises that were either caused, or exacerbated, by social media.

To their credit they have all responded positively. Dell has famously put active listening of conversations around its brand at the very heart of its business model. Domino’s Pizza took the opportunity of its staff induced crisis, to proactively engage with its customers to reinvent the chain’s whole food offering. Eurostar has gone on the record to say that the stranded trains crisis of late 2009 prompted the transformation of its customer service and Twitter profile. Virgin Atlantic has taken positive steps in social engagement after getting stung by staff comments on social platforms in 2008.

These high profile corporate car crashes act as a lesson to all brands that have yet to consider how they will evolve their brands, and transform their businesses, for social.

So, if you’re one of those ‘pre-social’ brands thinking about how they will adapt for the new rules of a connected world, please don’t wait for a crisis to ‘thrust’ you in to it!

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giffgaff – showing us the future

When you invent a company on social brand principles from scratch, you end up with something like giffgaff.

For those who’ve not heard about giffgaff yet, it’s a mobile network run by its community. The idea is that members get rewarded for running parts of the business like answering customer care questions, getting new members, spreading the word about giffgaff and even developing new products.

Speaking at the packed Digital Surrey event last night, Heather Taylor, Social Media and PR Manager at giffgaff, gave some fascinating insights into the inner workings of a ‘social business’.

Heather’s insights:

  • Founder of giffgaff, Head of Brand Strategy at O2 Gav Thompson, came up with the idea to create ‘the Wikipedia of mobile’ after attending a conference on open source business models.
  • Before launching anything the team went out to the community, and asked them what they would want from a ‘mobile network run by you’. The business was then designed around the feedback.
  • Levels of engagement in the customer forums are much higher than for a traditional mobile model. Some ‘super-users’ in the forum are engaged six hours a day helping others.
  • giffgaff doesn’t focus solely on its owned forums. It views the giffgaff ‘community’ as anywhere online that interactions and comment about giffgaff take place. The company provides tools to allow community members to track these interactions in open networks e.g. its own URL shortening service, giff.ly
  • Every week the suggestions made by the community are reviewed by the CEO, CFO and exec team. The best ideas are implemented.
  • giffgaff has made its APIs available to the community, and all app development has been led, and completed, by the community.
  • After the community management team at giffgaff handled a network failure crisis in a timely and proactive way, customers turned down offers of compensation, and asked that the money be donated to charity instead.
  • giffgaff believe the model is scaleable. If giffgaff accounted for 25pct of O2’s total customer base, it would save £12.5 mln from annual  customer service costs.

That last point is the real eye-opener. Socially designed businesses can create fundamentally different models, and shift accepted thinking on financial ratios.

The proof of the pudding for giffgaff will be how loyal its customers are in the long term. In these early days the figures aren’t available. But if this business model can also create greater loyalty, leading to the mobile operator’s holy grail of lower churn, then it will be a game-changer.

Heather’s final insight was to wonder what is stopping other businesses adopting these models. She had one word, ‘legacy’.

By that she meant the legacy of existing business systems, and the behavioural legacy of how customers are used to being interacted with. As customers demand that these legacy systems and behaviours shift, we’ll see more giffgaffs, and more disruption to business models.

How would your business look if you re-invented it for social?

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