© 2011 CIC1

The Social Business Landscape in China: How China Based Organizations are Integrating Social Business Intelligence Across the Organization

April 6, 2011

© 2011 CIC

The Leading Social Business Intelligence Provider in China

© 2011 CIC2

The Chinese Social Media Landscape

© 2011 CIC3

CHINA NETIZENS ARE MORE ENGAGED THAN AMERICANS

US: Forrester Research's North American Technographics® Interactive Marketing Online Survey, Q2 2009 (US), 4,766 respondentsAsia Pacific: Forrester Research's Asia Pacific Technographics® Survey, Q2 2009, 7,652http://www.forrester.com/empowered/tool_consumer.html

© 2011 CIC4

THE CHINESE INTERNET COMMUNITY IS MORE DEVELOPED THAN THE WEST

© 2011 CIC5 5

7,192,757 Followers

6,265,047 Followers

© 2011 CIC6 6

THE CHINESE INTERNET COMMUNITY IS MORE DEVELOPED THAN THE WEST

© 2011 CIC7

Government 2.0 and Human Flesh Search Engine

© 2011 CIC8

“About Me”

“About Topics”

“Shared moments with friends”

THE COMPLEX, DIVERSE CHINESE SOCIAL MEDIA LANDSCAPE

Blogs231

BBS132

SNS210

Data Source: The 26th Statistical Survey Report on the Internet Development in China by CNNIC, July 2011 ( including active and non-active users)

Microblog100+

“About Being First to Show or Know”Inspired by Brian Solis

© 2011 CIC9

Chinese social media is a unique, massive source of business intelligence

• Social media is millions of consumers broadcasting comments about and recommending brands, products and services

• Compared to other markets, Chinese social media is: – Bigger– More active– More diverse/complex (1000’s of key sources, not just 2)– Different (unique China sources; no Facebook, no Twitter)– Filled with more talk about brands, products and services – More trusted by consumers for purchase decision

9

© 2011 CIC10

Chinese social media is a unique, massive source of business intelligence

• THE CHALLENGE TO SOLVE: Unlocking business intelligence within Chinese social media ‘chatter’ which is:

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–fundamentally changing communications… –fundamentally changing business…

In ways which are absolutely unique in China

© 2011 CIC1111

PHASE 1 of SOCIAL MEDIA:

Mapping social media to marketing to inform smarter communications

AKA Social Media and Marketing

© 2011 CIC12

PR

CREATIVE

MR

BI

DIGITAL

MEDIA

SOCIAL MEDIA PHASE 1: Mapping social media to the comms organization

© 2011 CIC13

IndustryAverage Monthly Collected

CommentsCIC Archived Comments

Approx Unique Consumers

Auto 13,000,000 317,488,586 3,200,000

Mobile phone 8,000,000 184,308,424 14,000,000

Sports 3,200,000 81,740,371 1,800,000

Baby care 2,000,000 73,129,805 3,200,000

Beauty 2,000,000 45,425,648 2,700,000

Hardware 3,000,000 39,758,732 2,200,000

Pharma 1,500,000 32,931,308 840,000

Education 500,000 3,934,147 260,000

Luxury 500,000 3,447,589 443,000

• EVERY MONTH: An average of 60 million consumer comments about brands, products and services collected

• SINCE 2004: 2 billion online consumer comments with over 6.6 billion identified brand, product and attribute mentions by tens of millions of consumers dating back to 2004

BUSINESS INTELLLIGENCE: There are massive numbers of brand, product and service related comments

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WEB SOURCED CONSUMER COMMENTS ARCHIVED BY CIC

Confidential

© 2011 CIC14

RESEARCH: What categories are most discussed? What is your ‘share of voice’?

Skin Care70.4%

Makeup20.5%

Fragrance5.8%

Body Care1.9%

Nail Care1.2%

Industry Buzz Rank by Category,Oct. 2009 ~ Mar. 2011

Skin Care70.0%

Makeup29.4%

Others0.6%

Client Buzz Rank by Category,Oct. 2009 ~ Mar. 2011

Data Source: CIC Cosmetic Social Data Panel

© 2011 CIC15

Hottest Categories for Hair Care Product

Most Mentioned Attributes by Netizens

R&D: Virtual call backs and virtual U&A studies can contribute to product development intelligence

© 2011 CIC16

CREATIVE/IDEATION: Netizens creativity can inspire communications and product

© 2011 CIC17

The higher the rate is, the more active the buzz of the site is

* Conversation Participation Rate (CPR) - average post no. in every conversation

* CPR =Total Post No.

Total Conversation No.

Note:

MEDIA PLANNING: Select social media partners based on engagement quality

© 2011 CIC18

Buzz VolumeHigher

219,250 Lower

141,094

Participation (CPR)Lower

6.1Higher12.5

Community character

Prefer to show off Prefer to discuss and share

Preference on emotional topics

Not very popular Popular

Topic orientationCutting-edge

GeneralOrdinary

Personal & detail

Comparison of Yoka and Onlylady, Q2 2009

MEDIA PLANNING: Select social media partners based on site culture

© 2011 CIC19

HotLifestyle

Topic

Dealing with family members调查：你们愿意和婆婆一起住么 // Survery ： are you willing to live with your mother-in-law? link

Work life balance打算辞掉银行工作去读书或者卖煎饼，可行吗？ // I want to quit my job in the bank and return to university or get an easy job, is it a good plan? link

Economic issue in life嫁了一个经济条件不好的老公，婚后你们过的还好吗？ // Married with a poor husband, are you happy in the marriage? link

Renting & Cohabitation异性同居一定会日久生情吗？ // Will every heterosexual cohabiting roommates become a couple? link

Relationship & Sex怎么办 .. 暗恋上了男朋友的朋友 // What should I do? I fell for a friend of my boyfriend link

Office story和两个男上司上床后，我当了行政主管的职位 // After having sex with two guys from high level, I got the position of Admin Supervisor link

Note: The bubble size represents the discussing heat of the topic, which is roughly estimated by related buzz volume

PLANNING + INSPIRATION: Plan content based on understanding of site culture/content

© 2011 CIC20

PLANNING + INSPIRATION: Write copy based on language of netizens

© 2011 CIC21

BUZZ MY HEART: The first ‘webisode’ to be put on ‘regular’ TV

© 2011 CIC22

MAPPING OUT INFLUENCE: Clusters of interests led by nodes of influence

Team / Athlete heavy talkers

Sponsor heavy talkers

© 2011 CIC23

EXECUTION: Pinpointing different elements of influence across individuals and communities

© 2011 CIC24

March April May0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2,534 2,3903,776

OthersDoorLampWheel

Magotan exterior main attributes buzz shareMarch – May 2009

Source: Total buzz of Magotan exterior: March=4,471 posts April=4,059posts May=5,352posts

BRAND REPUTATION: What is driving the buzz?

Magotan wheel dominated its exterior buzz and drove the exterior buzz increasing

© 2011 CIC25

NETIZEN POWER: Owner’s communities diligently network to find problems

Owners hoped this problems could be fixed

望 17DZ 重视广大车主权益，莫让大家伤心！ / I hope FAW-VW could pay attention to the owner’ right(Link)希望可以解决问题 / Hope this problem could be fixed(Link)

一汽大众已正式下发文件给全国的4S 店，告知各 4S 店迈腾啃胎是正常现象 / FAW-VW released document to its all 4S stores: Magotan wheel wearing was a normal phenomenon. (Link)

FAW-VW answered this problem was normal

所以我认为我们大家一起闹起来，直到这个迈腾论坛的吵闹，影响新车的销售才会停息！ / I think all of us should complained together, until our complaint impact the sales of Magotan(Link)

Netizens extended their complaints impact

© 2011 CIC26

Negative Topics

Topic: Consumers‘ Day（ 3.15）

Quote:HP accused of selling dodgy laptops

Comments:Many negative articles regarding HP graphics card issue

3 days before Consumer Day

NETIZEN POWER: Timely tracking to uncover potentially negative issues

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© 2011 CIC27

NETIZENS ORGANIZING THEMSELVES: Chinese have a long history of banding together to strengthen their voice

Negative Topics Early Warning Index

Quote:HP accused of flogging dodgy laptops

Comments:Many negative articles was concerned HP. What happened of HP?

3 days before Day for Protecting

Consumers’ Right

Search from all negative articles to figure out what happened of HP

Keyword cloud

HP laptop

Key finding:Huge quantity consumers complain HP laptop has quality problems, and consumers have organized to ask for be taken good care by HP service department.

Result:3 days later, HP laptop problem was exposed by CCTV, and the biggest brand crisis of China HP was exploded.

There are more than 20 QQ-groups of angry HP consumer

countrywide

Consumers organizing themselves

Angry HP consumers on

street

Consumers organize class action law-suit

148365.com(法易网 ) organized lawyers holding the news release conference

Consumers go to the lawyers for help

Outside HP Service OfficeConsumers to show their anger“consumers hurt by HP’s flickering screen”

Outside HPService OfficeConsumers hold banner to push HP solve the lowquality  screen“We strongly demand HP to fix bad screens”

Outside China HP Tower“HP is socially irresponsible”

2006

27

© 2011 CIC28

PR

CREATIVE

MR

BI

DIGITAL

MEDIA

SOCIAL MEDIA PHASE 1: Mapping social media to the comms organization

© 2011 CIC2929

PHASE 2 of SOCIAL MEDIA:

Mapping social media to business drivers for action that leads to increased sales or

decreased costs

AKA Social for Business Impact

© 2011 CIC30

Hot Leads

Overall 2347

Posts of one messages 1710

Posts Repeated messages 637

I want to buy a MPV for my family but not sure which is better: Buick GL8 or Mazda 5?

HOT LEADS IDENTIFICATION: 4,000 expressions of purchase intent everyday (increase sales)

Overall Average Auto Hot Leads Per Day (Tracked by CIC)

© 2011 CIC31confidential

GROUP PURCHASE: 660 auto group purchase mentions every day (increase sales)

• 1st car was sold after 24 seconds, • 55 cars in six minutes• 116 cars by the 1st hour• 143 cars by 2nd hour• 205 cars sold by three and a half

hours. • The event ended 21 days in advance.

Mercedes Benz sells 200 Smart cars in three hours on Taobao

© 2011 CIC32

Link

Between 10 Feb 2011 and 3 Aug 2011, Dell has posted 1,000 posts on Weibo and now has 20,850 fans. We solved many technical and non-technical problems as well as sold some Dell products. We are always here to listen to you and hope to interact with you.

LinkCustomer: 2 of my classmates who bought Dell computer for less than a year both had problems. One with screen, the other with keyboard.

Dell Andy: Can send me message on Weibo? Can’t use QQ during office hours.

Customer: You noticed my complaint?

Dell Andy: I’m Dell’s technical support. Send me your serial number and I can help you.

SOCIAL CRM: customer support on Weibo (Twitter of China) (reduce costs)

© 2011 CIC33

YTD GrowthTotal YTD GrowthTot

YTD GrowthCur

Avg

club.women.sohu.com 3,045,283 -21% 124,213 11% 24,271 -9% 26

bbs.lady.163.com 1,156,158 4% 197,981 133% 27,801 -60% 13

rosebeauty.com.cn 940,617 53% 42,482 43% 11,417 47% 26

bbs.55bbs.com 856,654 -7% 127,995 249% 14,869 -68% 22

tianya.cn 798,169 211% 162,440 627% 19,688 -55% 14

forum.taobao.com 737,033 -29% 123,915 -20% 6,502 -30% 6

bbs.yoka.com 649,321 19% 76,684 51% 13,309 -30% 7

bbs.trends.com.cn 527,472 24% 29,667 67% 5,259 -35% 21

bbs.onlylady.com 378,058 1% 50,043 147% 9,005 -42% 11

19lou.com 269,165 77% 66,386 569% 11,755 -78% 14

bbs.eladies.sina.com.cn 243,060 27% 38,297 64% 13,476 10% 5

post.baidu.com 217,571 -19% 29,912 -19% 8,739 -18% 7

bbs.rayli.com.cn 142,969 48% 30,266 44% 7,985 -24% 6

bbs.mpdaogou.com 96,598 33% 20,383 274% 3,188 -58% 9

bbs.vogue.com.cn 79,032 -2% 9,224 25% 1,062 -37% 19

Data SourcePosts Posters Conversations

Post/poster

SOCIAL CRM: engage consumers in communities (reduce costs)

© 2011 CIC34

The Unique Challenges of China

• Very engaged, ‘social savvy’ netizens (social is not new)

• Complex, diverse, often anonymous and definitely unique social media landscape (data collection, social crm and ‘social graphing’)

• Language differences (text mining)

• Cultural/net cultural differences (interpretation)

• Very active ‘consumer owned’ communities (branded/customer community strategy)

• End users (marketers and organizations) less sophisticated (don’t make solution too complicated/expensive; see Omniture)

• Complexity of ‘global’ vs ‘local’ organization

34

© 2011 CIC35

SOCIAL BUSINESS: Crossing the chasm in China

35

700 People attended Beijing and Shanghai CIC social business forums in March 2011

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