Real-Time Marketing: The Agility to Leverage ‘Now’

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Real-Time Marketing: The Agility to Leverage ‘Now’ Spring 2014 Rebecca Lieb, Industry Analyst @lieblink

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AGENDA Defining RTM Benefits & Risks The Six Primary Use Cases 12 Steps to Prepare for RTM

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DEFINITION The strategy and practice of responding with immediacy to external events and triggers. It’s arguably the most relevant form of marketing, achieved by listening to and/or anticipating consumer interests and needs.

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Customers now expect brands to respond in near-real time Over half surveyed want a response in <1 hour. 38% feel more negative about the company if no response received. Source: Lithium Technologies 2013

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Source: GolinHarris, The Promises and Pitfalls of Real-Time Marketing. http://golinharris.com/#!/insights/real-time-marketing-research/ Real-time marketing makes a difference Impacts marketing outcomes Turbocharges other marketing

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BENEFITS OF RTM “Surprise & delight” Right message at the right time Brand relevance Always-on

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Oreo: The RTM Poster Child

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This year, Arby’s rocked RTM at the Grammy’s

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Meanwhile, other brands jumped on Arby’s bandwagon… in real-time!

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At this year’s Superbowl, JC Penny planned fake drunken tweets… All in the name of promoting their new “Team USA” mittens ahead of the Olympics

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CHALLENGES OF RTM Plotting strategy & analysis Requires intensive preparation, training Potential for risk & reactivity Shift in mindset Risk of “culture-jacking”

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Kenneth Cole’s RTM #fail

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The Six Primary Use Cases of Real-Time Marketing

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Use Case #1: BRAND EVENTS Planned & Proactive Conferences, product launches, media events, customer events, etc. Advance prep of content strategy and execution Staff available to engage, react to anticipated posts Few surprises

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Salesforce Live, the app and dedicated microsite also integrate social feeds to drive (and monitor) event conversation. Salesforce uses Facebook app to stream live brand events

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Use Case #2: ANTICIPATED EVENTS Planned & Proactive Major media events, tradeshows (e.g. SuperBowl, Emmy’s, etc.) Like brand events, “locked and loaded” approach to content strategy & execution Staff available to engage, react to anticipated posts Showcases brand voice, relevance

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HBO prepares content for real-time relevance during Emmys “We know we need freedom to develop content on the fly, but we also need to know the guardrails if anything should be escalated. There are built-in parameters for each campaign.” -Sabrina Caluori VP Social Media & Performance Marketing at HBO

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Starbucks promotes a warm nudge towards coffee during Blizzard Nemo Starbucks targeted Facebook and Twitter conversations around the blizzard, specifically rending ads for viewers clicking on the hashtags #Nemo and #blizzard and testing different copy.

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Use Case #3: LOCATION/OBJECT-BASED 20 Planned & Reactive GPS, NFC, or other sensor-based reaction to location, action, or request Taps into location-based triggers which prompt an offer or action in real-time Internet of Things brings endless possibilities with uncanny relevance in real-time Right person, right content, right time, right place

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Taco Bell leverages several brand integrations into the Waze app: promoting branded pins of locations, destination-specific targeting, custom campaign messaging (if tapped), etc. Taco Bell partners with Waze to entice nearby drivers

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MGM Resorts serves up recommendations based on guests’ location, interests MGM Resorts sends notifications for nearby restaurants, shopping, show deals, coupons, etc., via guests’ smartphones, based on geo-location, loyalty member status, and preferences.

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Use Case #4: PREDICTIVE ANALYTICS-BASED Planned & Reactive Branded actions occurring as a result of predictive analytics (e.g. recommendations based on browsing history) Sometimes combined with other marketing solutions’ data sets (e.g. Marketing Automation) Accessibility will grow as data solutions become easier to implement

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Walgreens responds to in-store Foursquare check-ins with scannable coupon

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Marketo tracks and scores engagement to automate relevant content for lead nurturing

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Use Case #5: CUSTOMER INTERACTION Unplanned & Reactive Customer service, handling complaints, community interactions, crisis management, CRM, etc. Requires both reactive and anticipatory work Triage workflow Crisis communications plan Determining what will be responded to and where Empowering staff Coordination across functions

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PretzelCrisps listens for those in need of a snack, rewards them with a sample

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JetBlue aims for response times of <1 hour, engages both positive and negative mentions

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USA Network interacts with fans in real-time with Character Chatter

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Use Case #6: BREAKING NEWS 30 Unplanned & Reactive Reacting to unanticipated events (e.g. news) with a legitimate, relevant message Difficult to prepare for, often emotionally charged events; acute sensitivity required Risk of ‘culture-jacking’ Established creative, collaborative, and approval processes key to agility

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Coca-Cola suspended ad spend, donated instead to Typhoon relief

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Eurocontrol responds to environmental crisis via Facebook, LinkedIn & Twitter Eurocontrol used #euva and #ashtag to monitor and respond to conversations about the Icelandic volcanic ash cloud. Followers adopted Eurocontrol’s hashtags, including them in stories and tips shared.

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Epicurious found itself backpeddling after Boston Marathon #RTMFAIL

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Which RTM use case does your organization find the most challenging?

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Twelve Steps to Prepare for Real-Time Marketing

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1. Listen & Learn Lay the foundation of customer understanding, goals and content strategy Real-time listening for customers, competitors, industry, buzz, events Analytics tools to track and benchmark

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2. Define RTM Business Goals Define the goals RTM will serve at the business and program level E.g. brand relevance, favorability, consideration, purchase intent, conversion, loyalty Results serving these goals help justify program expansion across functions to executives

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3. Integrate with Content Strategy Alignment is foundational to creating guidelines around what, how, when to respond, publish, listen Provides reference point for rapid decision-making Content strategy includes training for all stakeholders around goals, brand voice, POV, tone, messaging, values, and content Aids in the creation of “locked & loaded” and evergreen content

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“Develop a brand compass if you don’t already have one, and apply it to real-time marketing. Set the boundaries around what does and does not make sense for you to participate in, so that every time something is trending, the team isn’t asking: ‘Is this appropriate?’” -Sabrina Caluori VP Social Media & Performance Marketing at HBO

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Pepsi lives its “Live for Now” slogan with Pepsi Pulse, integrating real-time content into evergreen content hub

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4. Integrate with Channel Strategy Channel strategy dictates the where of RTM Consider where is target audience found; where conversations are occurring; changing media habits Consider appropriate content assets for channel Consider how top RTM channels relate to content strategy as well as temporal and cultural differences

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Most Critical Channels for Real-Time Marketing

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Mini Cooper tapped into existing conversations with content geared towards Facebook followers in the Northeast Results: +2,000 likes 1,200 shares Mini Cooper listens to social buzz to instruct content targeting

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5. Define “Time” Element & Expectations Define what RTM means for your unique programs and channels Let this guide expectations for responding and publishing based on organizational capabilities Consider temporal expectations for different RTM use cases and scenarios Not all companies can or will operate 24/7

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Halo BCA averages three-minute turnaround in >90% of customer inquiries

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Dell’s SLA: Respond to all inquiries within 2 hours in the channel in which it was received Dell aligns its customer support around their policy to respond to 100% of inbound customer interactions within a 2-hour time period, through the channel in which it was received.

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“Real-time lasts as long as volume of conversation is still there. If you can ride that wave, push it out as much as you can. It can be anywhere from two days to a couple weeks, so long as your customers are still talking about it.’” -Jason Miller Senior Manager of Content & Social at LinkedIn

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6. Establish Guardrails & Trust Pre-define guardrails and streamline processes Simplify legal approval to Yes/No response Have the necessary teams on deck Create a ‘mini-playbook’ to build confidence

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Symantec’s three questions all employees must ask before posting Ask yourself: Am I creating unneeded risk to the brand? Could this impact the company or myself negatively? Would I want my grandmother to read this? Symantec’s ‘mini playbook’ helps build confidence and empower employees to act autonomously on behalf of the brand. ”Ultimately, it’s all about common sense and what feels right.” - Charlie Treadwell, Director of Social Marketing at Symantec

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7. Anticipate Negative RTM Preparedness help mitigate risks, but brands must be actively and proactive ready for anything There is an imperative to respond in real-time to negative brand events as they unfold Coordinate with corp. comms to establish reactive and proactive guidelines:

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Listening helped one company avoid crisis in the face of the Boston Marathon Bombing Even before the news of the Boston bombing hit the airwaves, the company detected mentions of it on Twitter and quickly pulled infographic from the queue, sidestepping what would have come across as insensitive and promotional in the face of the tragedy.

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After racist ad blunder, Mountain Dew amplifies apology with promoted tweet

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8. Assemble Teams & Tools Successful RTM requires constituents be available, informed, educated, and empowered Ensure streamlined execution by taking a “war room” approach

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Apply the “War Room” technique based on the RTM use case

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Adobe assembles key stakeholders weekly to discuss real-time strategy & execution Discusses RTM’s role in: Newsworthy events Upcoming campaigns Brand events Alignment with strategy

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“At Adobe, we operate a creative newsroom that meets on a regular basis to identify upcoming items to plan for (e.g., news, events, etc.) and talk about what is relevant, what we could do more of, where we could take certain ideas. We have the right people in the room on an ongoing basis so that we don’t need a lot of levels of approval and everyone understands their role — this helps us go from ideation to action much more quickly.’” -Chad Warren Senior Social Media Strategist at Adobe

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Although Oreo’s famous tweet during the Super Bowl captured the limelight it was the fully staffed Super Bowl “war room” (uniting all brand and agency stakeholders) that enabled the rapid design, approval, and publication of that tweet.

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9. Establish Triage Connect certain cues or events to repeatable workflows Consider how users may respond, identify what warrants brand response Train all stakeholders, especially community managers, to: Identify threatening language cues & brand risks Know who/how many will respond and how to do so in a human way [When/How] to escalate to legal, PR, etc.

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Build workflows based on positive and negative interactions

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10. Train & Test All Parties This step is critical to enabling trust and empowerment needed to act in real-time Training must occur across all stakeholders and include both strategic & tactical elements Community managers (i.e. those posting and responding) Those creating, approving, distributing, monitoring Internal & external stakeholders (incl. vendors & agencies)

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Training must include strategic AND executional elements

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11. Identify Analytics & KPIs Measurement instructs effectiveness of current efforts and where to focus more deeply Establish RTM metrics and align with overall brand metrics E.g. Increased non-branded referral traffic Engagement Increased lead quality Performance measurement of real-time engagement, content, and activities should tie to [converging] POE media

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Leverage RTM to drive the convergence of Paid, Owned, & Earned Media Provides clues or fodder for developing catchy ads and promotions Support hub/contact point for driving customers to owned properties or helpful content Testbed for larger content initiatives & investments

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12. Evaluate Scale Periodically Scaling RTM carries a host of risks to address– especially for large enterprises Evaluate for scale frequently (i.e monthly, quarterly) Headcount, talent, roles Tools Regional variation, language Scale must be evaluated on a foundation of benchmarking against KPIs, and always aligned with business goals

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Q uestions?

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Thank You Rebecca Lieb rebecca@altimetergroup.com rebeccalieb.com @lieblink Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. The authors and contributors of the information and data shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark or otherwise does not constitute or imply its endorsement, recommendation or favoring by the authors or contributors and shall not be used for advertising or product endorsement purposes. The opinions expressed herein are subject to change without notice. Altimeter Group provides research and advisory for companies challenged by business disruptions, enabling them to pursue new opportunities and business models. With assistance from Jessica Groopman, Senior Researcher