Starbucks and ROI on ‘Tweet-a-Coffee’ Campaign

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Return on investment (ROI) is the benefit to the investor resulting from an investment of some resource. A high ROI means the investment gains compare favourably to investment cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. In purely economic terms, it is one way of considering profits in relation to capital invested

In the past, most marketing involved one-to-one communication. Traveling salespeople knew their audience well, and went door-to-door to deliver custom personal messages about their products to willing buyers.

Nowadays, Brand marketers are using many approaches in an effort to be part of the conversation, and are leveraging multiple social channels to do so. These programs are far more complex than the one-to-one and one-to-many paradigms. It’s very easy to just start measuring your ROI by counting how many Twitter followers and Facebook friends you have. Or you could be a bit more advanced and measure retweets and likes.

Overview

On the 28th October 2013 Starbucks partnered with twitter to launch their ‘Tweet-a-Coffee’ campaign across the US. The initial idea was all about buying anyone, anywhere (within the US) a coffee as a small gesture of kindness, and according to Adam Brotman, the chief digital officer at Starbucks, Twitter had the strength to help them achieve this.

In order for the campaign to work users had to link their Starbucks and credit card account to their twitter profile, then by tweeting @tweetacoffee with a twitter friends tag, an eGift worth $5 was sent to their desired recipient.

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Almost half of Starbucks’ total business comes from its primary target market of men and women aged 25 to 40, it’s this group alone that account for almost half (49 percent) of the brands total business. I believe for this campaign especially this target market was Starbucks most desired as people of this age are more likely to be cardholders and active on social media.

Twitter and Starbucks have worked together to help bridge the gap between our online and offline worlds, this is something beneficial for both brands. It’s a great opportunity for Twitter to become a direct response marketing channel while Starbucks now has information for all their gifters and recipients in their system, which could have massive longer-term impact on the ROI of this campaign. For this campaign, they aim:

  • An engaging campaign that customers wanted to interact with.
  • Enticing new and existing customers to be more active or to set up an online account with their brand.
  • Bridging the gap between our online and offline lifestyles meanwhile connecting multiple people across the US.

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Research firm Keyhole tracked all the instances in which someone used “@tweetacoffee” in conjunction with a friend’s Twitter handle and found that

  • More than 27,348 twitter users with 36,711 posts and US$183,555
  • Some 34% of users bought multiple gift cards
  • 32% of the purchases occurred on the first day.

The tangible benefit

It’s a validation of the idea that social media can have a very direct ROI. While most campaigns that organizations run are brand-building campaigns, there is certainly a great opportunity for Twitter to become a direct response marketing channel as well.

The intangible benefit

Starbucks now has information for all these gifters and recipients in their system, and this can have massive longer-term impact on the ROI of this campaign.

As these users continue to be customers, Starbucks now has a tie-in between the Twitter accounts,  credit cards,  mobile devices and their customer list (and they have it for 54,000 people gifters and recipients) which is something to be excited about! Even tech companies have struggled so far with creating a link between these different IDs for their customers, let alone consumer brands.

The strength and weaknesses of the ROI approach.

In 2013 Starbucks spent $11 million on digital advertising and a whopping $93 million on advertising as a whole. It’s clear to see that the ROI for this campaign alone wasn’t a huge success for Starbucks, with their total of $11million spent on digital media and a return of only $180, 000 from the Tweet-a-Coffee campaign, it seems that a few pockets have been left empty.

However it hasn’t all been for nothing, this Starbucks campaign was about a lot more than just $180k in eGift sales. Starbucks gave their audience a simple but strong motive to tweet, the idea of gifting a friend and receiving a little something for themselves in the process, the incentive that if you buy one, you get one free. The brand now has strong links with twitter, access to its online customer list plus access to their customer’s card details and mobile devices, a huge achievement that will provide them with knowledge they never had before. The campaign has also given Starbucks exposure online and enabled them to create a community and engagement centre for not only themselves but new and existing customers.

It was about customer understanding, identification and targeting that will help them for a very long time!

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State Library of QLD with network effects

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In economics and business, a network effect (also called network externality or demand-side economies of scale) is the effect that one user of a good or service has on the value of that product to other people. When a network effect is present, the value of a product or service is dependent on the number of others using it. Telephone is an example. The more people who own telephones, the more valuable the telephone is to each owner. This creates a positive externality because a user may purchase a telephone without intending to create value for other users, but does so in any case. Online social networks work in the same way, with sites like Twitter and Facebook becoming more attractive as more users join.

Direct network effects: An increase in usage leads to a direct increase in value for other users. For example, telephone systems, fax machines, and social networks all imply direct contact among users. An example is online gamers who benefit from participation of other gamers as distinct from how they benefit from game developers.

Indirect network effects: Increases in usage of one product or network spawn increases in the value of a complementary product or network, which can in turn increase the value of the original. Examples of complementary goods include software (such as an Office suite for operating systems) and DVDs (for DVD players). This is why Windows and Linux might compete not just for users, but for software developers.

Cross network effects: An increase in usage by one set of users increases the value to and participation of a complementary and distinct set of users, and vice versa. An example is developers choosing to code for an operating system with many users, with users choosing to adopt an operating system with many developers.

State Library of Queensland presently bring some basic online services by using their e-services. They includes access One Search (online library resources), and book a computer. They also have Twitter and Facebook account with thousand of followers. This could bring more value for them because they have many followers and users. However, their online content need to be upgrade which user can interact with and access easily on many platforms not online on the desktop web browsers and online contents for different group of people like play-study area for kids. For the direct network effect, the more the new users use and get involved on the services on their website, the more value they gain. For the indirect network effect, users often visit their website and use their online services, new users could be brought by currents user and their interesting online services. So they could find other social networks like Facebook and Twitter to keep in touch with new updates and events for SLD. On the other hand, cross network effect could happen when their users spend much times on their online contents, they interact with Library and other users by feedbacks and comments. Library can gain more value from the feedbacks and comments of users and their frequent of visiting the pages.

Netsmart – Professional Service Company

Professional services are occupations in the tertiary sector of the economy requiring special training in the arts or sciences. Some professional services require holding professional licenses such as architects, auditors, engineers, doctors and lawyers. Other professional services involve providing specialist business support to businesses of all sizes and in all sectors; this can include tax advice, supporting a company with accounting, or providing management advice.

Netsmart Technologies is an American company that develops and sells health information technology, including electronic health records, especially for organizations and entities in the behavioral health field. It was founded in 1992 although its technology origins go back to 1968 with the founding of Creative Socio-Medics, which it acquired in 1994. Netsmart has since grown via many other acquisitions. It is headquartered in Overland Park, Kansas.

At Netsmart they are trying to change the world. Literally, the work they are doing helps their clients provide better care to some of the nation’s most vulnerable populations. They take their leadership position in health and human services seriously.  Netsmart is the knowledge and technology partner for more 23,000 health and human services provider organizations nationwide, including 450,000 care providers and 40+ state systems.

LinkedIn, Twitter, Facebook, and their own Blog are their official social channels to communicate with their customers. It’s really convenient to contact them by many ways. They use the social network to introduce, advertise and interact themselves to customer. Most of following from their LinkedIn, Twitter and Facebook account more than Google+, and YouTube.

Besides that, Currently Netsmart offers many solutions and services for their clients including social media consultancy services that can help organisations:

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Especially, Netsmart, a market leader in behavioral health care information technology, has earned the “Best-of-the-Best” distinction from Service Performance Insight (SPI). The recognition is based on an annual SPI in-depth analysis of professional services organizations to determine which are performing above industry benchmarks in such areas as client satisfaction and managing large project volumes.

Morover, rapidly growing Netsmart began utilizing FinancialForce PSA (Professional Services Automation) in 2014. The cloud-based enterprise resource planning platform allows Netsmrt to effectively deliver solutions to health and human services provider organizations nationwide as they improve the quality of life for millions each day.

As the relevant value levers associated with implementing Enterprise 2.0 as published by McKinsey Global Institute (2012), I think they focus on marketing and sales with  derive customer insights, the use social technologies for marketing communication/interaction, and generate and foster sales leads.

Hashtag or Bad-tag on Social Media

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In recent years, there has been a charge for businesses to engage significantly on social media with their potential markets. No longer is it enough to advertise in traditional forms of media – a presence on Facebook, Twitter, Instagram, or Pinterest is seen as essential to demonstrate engagement with existing and future customers.

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Massive numbers of users from both a business and private context bring with them their own attendant legal risks. Social media users have found themselves delayed in legal action as a result of threatening, abusive or harassing behaviour, breach of copyright, trademark infringement and even breaching the Data Protection Act, while others have been dismissed from employment or seen their businesses suffer as a result of statements made online.

There are some associated risks could be classified for social media sites include confidential information, wrongful dismissal, statutory risks, occupation and organisation specific risks and reputation risks.

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Hashtag is a popular tool on Twitter for communication, it also become a remarkable feature which is used on Google+, Pinterest, Tumblr and Facebook recently. It helps create the conversations, aids in the spread of news and promotes events or products.

Back to 2012, when McDonald had a campaign for their customers using #McDStories hashtag to share on Twitter about positive way how they lovin’ it.

However, instead of sharing their positive stories about McDonald, negative tweets about the fast food giant began to proliferate. Most of the stories were tweeted about being high while eating McDonald’s and throwing up the food. This promotion hashtag campaign was partly ruined McDonald’s reputations. This is not the first time that fast food company has lost control of its hashtag.

McDonald had to pull that hashtag after 2 hours after losing the control on social media. As the result, within an hour pulling #McDStories fell off from 1600 conversations to a few. McDonald finally stopped using that hashtag, and according to Rick Wion (director of social media for McDonald’s USA) stated that “You don’t control things. You can only hope to steer things in certain directions.”

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Customer services on social media of Nike and Starbuck

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According to Gartner any technology that facilitates social interactions and is enabled by a communications capability, such as the Internet or a mobile device. Examples are social software (e.g., wikis, blogs, social networks) and communication capabilities (e.g., Web conferencing) that are targeted at and enable social interactions.

Moreover, McKinsey stated that social technologies have given social interactions the speed and scale of the Internet i n a few short years. Whether discussing consumer products or organizing political movements, people around the world constantly use social-media platforms to seek and share information. Companies use them to reach consumers in new ways too; by tapping into these conversations, organizations can generate richer insights and create precisely targeted messages and offers. She also states that the benefits and value associated with implementing Enterprise 2.0 using the 10 Social Technology value levers classify into 5 categories:

  • Product development
  • Operations and Distribution
  • Marketing and sales
  • Customer Services
  • Business Support

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Besides that, Nike and Starbucks are the two different globally company which are doing in producing sport shoes area, and producing and marketing roast coffee and operating a large chain of coffee shops respectively. Both of them are using social media efficiently for their customer services. In fact, Nike has more than 5 million Followers on Twitter, and use another Twitter account as #NikeSupport to response to customer inquiries and issues. Nike Support is dedicated to all things customer service, making it easier for customers to reach out when they have a problem or a question they want answered. And Nike Support is very active, and like other companies with great social media customer service, very quick to respond. If you look at the account’s Twitter feed, you’ll see replies every few minutes. This shows customers that they can trust Nike to provide them with the help they need, when they need it.

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Similarly, Starbuck recognizes just how important customer service is, especially on social media. They use both Facebook and Twitter for their customer services channel. The coffee giant is active and quick to respond to customer questions and complaints on its Facebook page, and is engaging and fun with its customers on Twitter, too. Starbucks knows when to bring the personality to its replies, and when to hold back and be professional, showing customers that the brand is both personable and dynamic. And, like Nike, Starbucks also had a separate Twitter account called #MyStarbucksIdea as an additional way to engage with customers. This account, while less active than Starbucks’ main Twitter account, is a place where customers can submit and discuss ideas to make Starbucks better.

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Newbie for social enterprise

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According to Wikipedia, a social enterprise is an organization that applies commercial strategies to maximize improvements in human and environmental well-being – this may include maximizing social impact rather than profits for external shareholders. Moreover Social enterprise features increasingly in public debates on the future of public services and among solutions put forward for heightened community engagement and economic regeneration. Besides that, social enterprise consultant is the person who has an in-depth understanding of the issues around social enterprise, as well as practical experience in running and growing social enterprises.

Thus, undertaking social enterprise can help organisations achieve financial independence, grow their activities, improve their ability to achieve their aims and make themselves a more attractive prospect for donations.

On the other hand, social enterprise also creates some challenges for business. It includes attracting current and future customers, leading right direction more than control the community.

The purpose of this blog is taking a deeper view of some social enterprise area whilst analysing the impact on both customers and business. Additionally, I also want to have some other opinion of the different views of other bloggers on some specific things. So I can learn more as the area of a consultant of social enterprise.

For me, a useful post shows a clear view of the blogger and analysis in-depth into a specific topic and with relevant sample. It also needs the deeper research on anything topic. I think to be an effective community I need to interact more on online community as reading carefully and reply my opinion or review on other blogger. Getting more feedback and learning more from both ways.

These are two of my favourite blogs

MigrationologyTravel for food – I love cooking and travelling, I spend most of the time to watch his blogs, he has both video and word blogs, he share experience on food and travel tips.

Engadget – this is one of the technology news reviews blogs. I want to get the lastest new for technology, and love to have a deeper look and review on some different products in the market.

A2 – Week 8 – Quantified Self and Burned Calories app

The Quantified Self is a movement to incorporate technology into data acquisition on aspects of a person’s daily life in terms of inputs (e.g. food consumed, quality of surrounding air), states (e.g. mood, arousal, blood oxygen levels), and performance (mental and physical). Such self-monitoring and self-sensing, which combines wearable sensors (EEG, ECG, video, etc.) and wearable computing, is also known as life logging. Other names for using self-tracking data to improve daily functioning are “self-tracking”, “auto-analytics”, “body hacking”, “self-quantifying”, self-surveillance, life logging, surveillance, and Humanistic Intelligence. In short, quantified self is self-knowledge through self-tracking with technology. Quantified self-advancement have allowed individuals to quantify biometrics that they never knew existed, as well as make data collection cheaper and more convenient. One can track insulin and cortisol levels, sequence DNA, and see what microbial cells inhabit his or her body.

The collected quantified self-data is then analysed to identify underlying patterns and correlations with an intention to gain insights so that better health or behavioural outcomes can be achieved. The data is typically visualized using simple techniques that don’t require a high level of technical expertise. Athletes and their coaches commonly make detailed notes on nutrition, training sessions, sleep and other variables. Similar tactics have long been used to combat health problems like allergies and migraines. But new technologies make it simpler than ever to gather and analyse personal data. Sensors have shrunk and become cheaper. Accelerometers, which measure changes in direction and speed, used to cost hundreds of pounds but are now cheap and small enough to be routinely included in smartphones. This makes it much easier to take the quantitative methods used in science and business and apply them to the personal sphere.

There are some important applications for quantified self

Important applications for quantified self include:

Health and Wellness Apps: Smartphone apps and devices are widely used to track and visualize data related to food, nutrition, weight loss, exercise, fitness levels, blood oxygen levels, sleep patterns, body posture and caloric intake, etc.—to continually measure progress and take necessary actions to achieve better health outcomes.

Corporate Wellness: Companies are increasingly investing in quantified self-data devices and processes to guide their employees toward healthy living and better lifestyle choices—both to reduce health insurance costs and boost employee morale and productivity.

Quantified Baby: This is an offshoot of the quantified self-movement and refers to continually tracking data on various activities of babies to provide useful insights to both parents and health professionals. The quantified baby movement is, however, receiving mixed reactions as experts question its utility.

Networked Wellness Systems: Data is tracked using multiple sensors and wearables and then wirelessly uploaded to centralized servers for further analysis. This scenario enables more comprehensive health monitoring and will gain popularity in the near future.

Recently I have used Health app on my iPhone (with integrated sensor) and transfer data to Fitbit to analyse.

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My iPhone has the sensor which can track steps I get a day, it also count the distance and floors I walk or run. Then I import all the data from Health to Fitbit app to get the statistics about the calories I have burn from the activities. I can also add the food I eat and set the target by adding my current weight and my desired weight. So Fitbit can calculate for me how much calories I need to