Thursday, September 25, 2014

Week 9: Misuse of Social Media -- Amy’s Baking Company


When we talk about ethics or misusing social media, the first epic case is the Amy’s Baking Company in Scottsdale, Ariz, which was in one of the episodes of “Kitchen Nightmares”in May 2013

Here is the story. Amy and Samy Bouzaglo are the owner of the Amy’s Baking Company, who face some problems on their commercial trading and joined the famous show Kitchen Nightmares for revenue up. However, the host of the show – Gordon Ramday walked off the program after the couple's antics and finger pointing proved insurmountable challenges. When the episode published on air, it raised a wide public reaction. People start to follow their Yelper, Reddit and Facebook pages and some of them left so-called negative feedback. Since then, Amy and Samy started to strike back. 


But unfortunately, after few messages, their words somehow went beyond the bottom line.



The interesting point is, they claimed they were hacked.  But this didn't stop the improper official messages make the fire worse. 


In this part I would like to refer to Rogerson’s 8 ethical principles
Consideration of social cost - is the appropriate accountability and responsibility accepted with respect to this action?
Effective and efficient action - is the action suitable, given the objectives set, and is it to be completed using the least expenditure of resources?

The improper reaction of Amy’s Baking Company shows a poor marketing strategy.  First, they used social platforms for expressing in the view of themselves rather than the business. Arguing and debating with people who might be potential customers obviously are not the most effective and efficient action they could apply. The aggressive personality also should not be involved into the official response of negative opinion. Moreover, the owner themselves did not fully considering the social cost. Or maybe they did, somehow, as now they are the most epic “insane star” in the food business all over the world, who yelling to their customer even on a TV show. But, at least they did not understand the power of the social media. For example, the yelpers could bring you more customers but also may destroy your business. 

Obviously, the improper reaction of Amy’s Baking Company damaged their reputation. And due to improper use of social platforms, it goes worse and worse. But it did raise their publicity, thousands of people hear about them and following their news and social media pages. 
For recommendation, they do need a public relation professional to help them dealing with the misuse of social platforms and rebuild customer relationships in the long term. Otherwise, this dilemma will go on all the way.

Wednesday, September 17, 2014

Week 8: ROI Case Study--CISCO

After a few weeks’ broad investigation of implementing Enterprise 2.0 in organizations, it is a good opportunity to look inside – Return on Investment (ROI) of the organization embracing Enterprise 2.0.

Before going to details, first, we need to understand what ROI is. According to INVESTOPEDIA, ROI is a performance measure to evaluate the efficiency of an investment or a number of investments. The return on investment formula is:
It is simple to use this formula to justify if the company achieve expected benefits or not by comparing the results. For example, if the ROI which is calculated after implementing Enterprise 2.0 is higher than previous ROI which is calculated before it, then we can conclude that the company achieves benefits (tangible and intangible) through implementing Enterprise 2.0. 

Case study of CISCO Enterprise 2.0 Project

Second, let’s look at CISCO, one of the biggest IT companies in the world, providing IT solutions and equipment to enterprise, small business and home. 

Like other technology companies, cisco was well aware of the importance of managing its social media presence. However, there was no consistent and flexible solution for them to manage plenty of information on social media such as Facebook, Twitter or LinkedIn. In 2012, CISCO decided to standardize its social listening on Salesforce Radian6, a social-listening application which allows users to quickly and efficiently track, monitor and manage social interactions.


From NUCLEUS’s Financial Analysis Report, we can see there are two kinds of benefits which are direct and indirect. Those benefits can be summarized as followed:

Direct benefits
Focused use of outside creative agencies. By implementing Salesforce Radian6 that manages social mention in one, it enables CISCO to well monitor the marketing influences made through outside creative agencies.
Increased staff productivity. Salesforce Radian6 also provides staff mobile application that ensures them to respond social mentions in a timely manner and no matter where he/she is. 

Indirect benefits
Increased customer insights. From the application, staff can analyze social mentions from different social media in a more meaningful way, which will help marketing group find the most efficient way to achieve expected outcomes.
Improved partner management. CISCO is building more reliable partner relationships with partners by providing a more cost-effective way to increase their engagement.  
The following figure displays three years financial analysis of CISCO. 


The annual ROI can be calculated as:
ROI=[(1697625+1697625+1980750-587125)-(587125+478125+478125+195000)]/(587125+478125+478125+195000)≈281%

From the ROI calculated above, it is easy to get tangible cost such as software, hardware, consulting etc., but when it comes to intangible benefits, this method barely figures out specific intangible benefits could achieve though implementing Radian6 application. For instance, from increased customer insights, staff might save time on market research. But how this benefit can be figured out and measured in a quantitive way compared with traditional market research. At least, from this report, I cannot find any specific criteria to calculate intangible benefits.   

Tuesday, September 9, 2014

Week 7: Online Fashion Tycoon -- ASOS

In this weekly activity, I would talk about ASOS, one of biggest online fashion retailers in the world, by utilizing social networks to achieve success.
                                 

Background of ASOS

ASOS is the largest British online fashion and beauty retailer. It sells over 65,000 branded and own-label products to all over the world and ships all the items to 234 countries for free. 

ASOS is more than a fashion online retailer. It also provides platform (Marketplace)for people who have independent label or boutiques to sell on its website. They can list their items on the website for free, which in turn ASOS only charge a few amount of commission.
  
                   
Apart from that, ASOS is also a fashion finder which allows buyers or sellers to upload their daily fashion outfit on the street. Those outfits are tagged individually on their personal blog. People would find their favorite and probably the most fashionable outfit for their own preferences.

Secretes behind its success

There is evidence (Gemma Lovelock, 2013) reveals it achieves success while other big companies fail, potentially due to applying multiple social technologies in online retail.

Twitter is one of the social technologies they use as a communication channel with customers. ASOS posts latest products, questions, announcements or news on Twitter. Besides, customers could ask any questions, or even complain on their official Twitter and get fast response from customer service staff. 
                       

Refer to McKinsey’s report (McKinsey, 2013, P 39-40), in customer service perspective, social technologies do give companies a way to listen to their customers, identify potential risks with services or products and seek improvements through customers’ advice or complaints. It cannot be denied that Twitter is one of most accessible social technologies people live with their smartphones, laptop or iPad in daily life. Compared with traditional tool -- email, customer can easily send their requirements and get fast response from staff. Last but not least, ASOS also largely increase customers’ engagement by posting interesting questions related with fashion through Twitter. 

Twitter is just  small piece of tricks ASOS uses to engage and provide quality service for customers . They also have multiple social tools embedded in their website including Facebook, Google +, YouTube, Instagram, Linkin etc. It just implies the secrets behind its success – ‘social’ and all about customers.      

Reference
McKinsey. (2013). The social economy: Unlocking value and productivity through social technologies. Retrieved from https://about.yammer.com/assets/MGI_The_social_economy_Full_Report2.pdf