Raj Agnihotri
August 2014
Strategic Business Leadership
Executive Education Seminar
Dr. Raj Agnihotri
Freeman Professor of Sales Leadership
Chair of Marketing Department
• Industrial Experience in Sales &
Marketing with Start-ups to Major
Corporations
• Author of Sales-Force Automation
and CRM Implementation
• James Comer Award for the Best
Contribution to Sales Management
Theory
• Excellence in Teaching Award from
Marketing Management Association
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Outlining a social media startegy
Exploring social media as a business tool
Understanding the current market environment
“A global bank executive recently described to us a
challenge for our times. It turns out that a customer
who normally would qualify for the lowest level of
service has an impressive 100,000 followers on Twitter.
The bank isn’t doing much yet with social media and
has no formula for adapting it to particular customers,
but the executive still wondered whether the
customer’s “influence” might merit special treatment.”
From: What’s Your Social Media Strategy?
Wilson and colleagues (2011), Harvard Business Review
Communication-Social Capital Link
Social Capital… What?
Customer
Value
Communication to
maintain Social
Structure
Social Media
Use
Organization’s
Social Capital
(Kothandaraman, Agnihotri, and Kashyap 2011)
Communication to Build
& Maintain Trust
Communication to
Share the Vision
Now the Question Becomes…
How to facilitate this link?
Organization
Collaborator
Productt+1
Value Co-Creation
Consumer
Collaborator
Market Evolution
Organization
Collaborator
Productt
Value Co-Creation
EXAMPLES:
http://cloroxconnects.com/pages/home
http://mystarbucksidea.force.com/
(Agnihotri and Hu 2009)
Consumer
Collaborator
SOCIAL CONTENT ENABLER
[Blogs, Micro-blogging (Twitter), Etc.]
Fit between Social Media Use
& Service Actions to “Pull’
Customers towards Firm
Generated Content
ORGANIZATION ACTIONS
Information
Sharing
Customer
Service
Customer
Perceived
Value
https://www304.ibm.com/connections/blogs/
VALUE
CREATION
Trust
Building
Fit between Social Media Use
& Actions to “Push”
Information through Expanding
Networks of Connections
http://www.youtube.com/watch?feature=
player_embedded&v=F5CF1FEm_oA#t=12
SOCIAL NETWORK ENABLER
[Networking Websites (Facebook, LinkedIn),
Online communities/ Discussion forums]
(From: Agnihotri et al. 2012)
Organization
Perceived
Value
Let’s Put Theory into Action
Work within your group/table and
come up with the ‘social media
marketing strategy’ for Ford Fiesta,
that has potential to offer
organizational and customer value.
This is How They Did It
Target Market
Generation Y/ Millennial
Empty Nesters/Baby Boomers
Content Creators
Content Consumers
Find
a fit
Different language
Different mix of media
Different ratio of visuals and text
http://inside.flipboard.com/2013/09/27/on-the-red-couch-with-fords-social-media-chief-scott-monty/
Blog
• Ford Fiesta Movement, a campaign to promote
the Fiesta model
• Giving cars to 100 social “agents” and let them
promote vehicle through Social Media
• All without spending a dollar on traditional media
Results of six month campaign
- 4.3 million YouTube views
- 500,000+ Flickr views
- 3 million+ Twitter impression
- 50,000 interested potential customers, 97% of
which don’t own a Ford currently.
http://fiestamovement.com/
How are you going to
measure the ROI when
implementing your Social
Media Strategy?
ROI: commonly used metrics*
86%
Audience growth rate
-e.g., # of facebook fans,
twitter followers, etc., per
week
81%
Customer engagement rate
-e.g., # of click-thrus,
registrations, etc., per week
77%
Volume of relevant
posts/comments
73%
Customer73%
Acquisition rate
Organizations can set milestones in terms of –
i) Marketing efforts (e.g., number of tweets posted per week,
ii)
number of blogs written and followed, etc.)
Outcomes (e.g., number of leads generated through blogs)
Performance evaluation should include i) Objective (e.g., changes in service support costs)
ii) Subjective criteria (e.g., number of referrals and/or positive
recommendations by existing customers through social networks)
Customer Acquisition rate
*Gleansight: social media marketing, November 2010
Tips to Remember
• Do your research before investing in SM
• Remember the ‘Market’ in marketing strategy
• Create value
….and finally
• Connect with people because nothing can replace
the - personal touch
Thank You and Good Luck!