Case study: social media brings out advocates and ROI

I’ve had clients tell me they’re from Missouri – you know, the “show me” state.  I must  work with people who’ve spent some time there because I hear the phrase, ”show me,” a lot.

Here’s a recent experience of ours we’re glad to have done for a worthwhile cause.  It shows us social media:

• Works
• Works even better when it’s integrated into the marketing mix
• Is highly accountable
• Builds brands

But that’s our opinion.  What does this case study show you?

SOCIAL MEDIA BRINGS OUT ADVOCATES AND ROI FOR COLGATE/STARLIGHT FOUNDATION

SITUATION: Every February, Colgate Palmolive helps the Starlight Foundation, an organization dedicated to improving life for terminally ill children.  They donate a Wii Fun Center every day to a deserving children’s hospital.  Consumers vote at the Colgate website for their favorite children’s hospital to be recipients.

Awareness occurs through radio, major magazines, online advertising, PR and events, with the challenge to increase outreach, voting and participation every year.

SOLUTION: In 2010, social media is integrated in the marketing mix.  A social media “app” is developed for the voting at http://colgate.com/showthelove.  Through the “app,” consumers are able to: 1) Locate their favorite children’s hospital,  2) see who the daily winners are and 3) encourage their friends on social networks and relevant blogs to get involved.  Recommendations are delivered with a branded “Show the Love” digital mnemonic (visual in the center above).

RESULTS: Social media outperforms outreach expectations, shows significant return on investment and plays an integral part in the program.

• 20% of consumers who vote also share on their social networks and blogs.  For perspective, typical response rates for promotions on consumer packaged goods brands are less than 5%
• They are on the social media “app” 3X longer than the web site
• 25% of total traffic comes from social media; mostly from Facebook
• Total social media impressions compare favorably to mass media because the average Facebook user has 130 friends
• Text analysis shows learning and offers direction for next year’s efforts
• Lead acquisition occurs and a database is built; it’s now an activation source for future brand building programs

The investment in social media, relative to total program costs, is a small, single-digit percentage.   It delivers double-digit results.

Words of wisdom

Two of my favorite business books are Blue Ocean Strategy and Groundswell. The first is my recommendation for best book on opening up new markets and the second is the definitive primer on how social media and online communities work to build business.

Taken together, they are a roadmap for brand vitality where the highway is a well crafted business strategy.

In Blue Ocean Strategy, W. Chan Kim and Renee Mauborgne advise companies to stop competing in the bloody, market share stealing ”red ocean” and find uncontested market space in the “blue ocean.”  Like Cirque du Soleil.  They eliminated  costly to maintain circus animals, marque names and expensive arena rentals and created their own portable show; one that was fun, family entertainment in the consideration set with dinner and a movie or a night out; instead of a once a year major event.

Recently, I gave a friend a copy to help him rise above his red ocean.  He owned a bike store in town.  For over 20 years, his shop was known for superior service and customer involvement.  This year bike sales slowed, competitors cut prices and his landlord raised his rent forcing him to close up shop.

He saw uncontested space going direct to customers with two well-branded vans.  This took advantage of the reputation he built for personal service.  He generated more awareness from referrals and vans travelling around towns than a stationery store and his operating cost dropped.  Now, he’s back in the black with a reinvented business.

Groundswell by Forrester analysts Charlene Li and Josh Bernoff explains the effectiveness of everything social from wikis, blogs, social networks to brand communities.  They present compelling case studies; all beginning with a company’s unmet business need, social media tactics that meet the business objective and return on investment is well detailed.

Take Blendtec blenders.  They’ve sold exclusively to the commercial market since 1978.  Starbucks uses them.  In 2007, they decided to sell to consumers directly with videos from owner, Tom Dickson.  With an investment of less than $1,000 for videos that ran on YouTube, company sales increased +500%…plus the cost of an iPhone.