You need to be on [social media] to be competitive in any kind of business, whether you’re mowing lawns or selling dresses.” – Lorrae Madge, owner and social media manager of Amaryllis Boutique. *(1)
Outline for blog/functional ares of discussion:
- chosen organisation = Tesco.
- social technology(ies) implemented by Tesco. (twitter, facebook, google+, pinterest)
- successes of social integration by Tesco.
Chose organisation – Tesco:
The UK’s biggest food retailer, offering a variety of services for food and nonfood products. This includes insurance, entertainment, electrical goods and many more. They employ over 440,000 people around the world with over 280,000 in the UK. It has over 2,000 stores in the UK and a growing number of stores abroad in countries such as Thailand, China, Hungary and the United States. *(2)
Social technologies used by Tesco:
Pinterest, A quick overview:
Pinterest is an online site where you can save (pin) and organize images and videos into different groupings called boards. You can upload images and videos yourself, or you can add images and videos that you’ve found on other web sites. You can also “re-pin” pictures and videos that other people have added to their Pinterest boards. – businessproductivity. *(3)
Tesco promotes recipes, healthy living and gardening ideas amongst others on its Pinterest account. The use of Pinterest is something new for most retailers. Tesco have a decent following on Pinterest. 4,133 followers, 4,726 likes with 35 boards and 3,025 pins. The volume of Interaction if not as high compared to Tesco socail presence on facebook or Google+ for example. However, take notice that Pinterest hasn’t been around as long as facebook and the average time spent on Pinterest is 15.8 minutes…
The Demographics *(4) of Pinterest are interesting to say the least. 68.2% of users are women. 1.36 million visitors everyday. 3.6% referral traffic compared to Google+’s 0.22%. Average time spent on Pinterest 15.8 minutes compared to facebook’s 12.1 minutes. Divurge on this information as you like, but this is very compelling evidence of how promising Pinterest is.
Tesco’s use of Pinterest correlates to the marketing and sales functions in relation to McKinsey (2012). It appears to be leveraging from numbers 5 (use social technologies for marketing communication/interaction), 6 (generate and foster sales leads) and 7 (social commerce).
In 2013 Tesco following on Google+ exceeded 2,294 followers. Today (2014) they have 65,124 followers (2738.88% increase) in a year. Quite impressive! The content published on this page are duplicates from their Facebook page. I see nothing wrong with this. However, google+ demographics suggest that if you are targeting Google+ audience, it is essential to create high volumes of multimedia content to drive the most positive outcome. *(5) Why? Demographics present that Google+’s female audiences are most likely to be 25 to 35 year olds. Largest majority of people on Google+ are potentially IT Engineers with a stronger male audience. I see evidence that suggest Tesco are tailoring the content to support the user-base of this platform. The image below supports this.
Tesco’s use of Google+ correlates to the marketing and sales, and customer service functions in relation to McKinsey report (2012). It appears to be leveraging from numbers 4 (derive customer insights), 5 (use social technologies for marketing communication/interaction), 6 (generate and foster sales leads), 7 (social commerce) and 8 (provide customer care via social technologies).
Tesco has a large array of twitter accounts. @TescoMedia, @Tescomobile, @Tesco to name a few, which provide regular updates about books, dieting, kitchens and its stores in across the world. *(6). Too many for my liking, but at least it’s made abundantly clear to customers what business unit they are communicating with. However, having this number of Twitter accounts certainly dilutes the potential for any one account to build up a large following. Good-thing or Bad-thing?
Twitter these days is the perfect companion for any customer. It’s quick, interactive and to the point. Got an promble with your local store? tweet to @Tesco. Found a insect in your apple? Tweet to Tesco. They will do their upmost to find a solution to your query/problem. Funny thing about Tesco social strategy on twitter, is their tone = light-hearted & cheeky.
Students, a word of advice, before you head back to uni: mixing bowls are for mixing. Not for Coco Pops.
— Tesco (@Tesco) September 7, 2014
An huge retailer being, well human! is unusual. They’re not usually funny, they’re not their to make you smile. They’re just there to make a hefty profit out of your expense. So when Tesco surprise customers with this light-harted cheeky tone, it adds an more personal 1 to 1 experience for customers. They get the feeling of speaking to a real person, and not a machine.
This twitter conversation bring this to life. *(7)
Tesco’s use of twitter correlates to the marketing and sales, and customer service functions in relation to McKinsey (2012). It appears to be leveraging from 5 (use social technologies for marketing communication/interaction) and 8 (provide customer care via social technologies).
Tesco tends to post two updates each day, and it is at most times related to the brand or its products its sells. Exceptions I’ve seen are charity fundraisers such as the #ALSIceBucketChallenge.
Tesco encourages conversation by posting food recipes and short video clips to their page. Additionally offering incentives to customers, by hosting chances to win gifts/prizes by asking them participate within the community on facebook.
This has proved to be a clever tactic for driving up customer satisfaction for the Tesco retailer. They’ve even won awards for how well they have used social media. As of Q3 2014. Tesco had 1,439,741 followers via facebook (at the time of writing this). Yet, they had still managed to answer a whooping 2,185 questions at an average response time of 417 minutes during with a response rate 91.97%. *(8)
Tesco is for sure, a #sociallydevoted organisation.
Tesco’s use of facebook correlates to the marketing and sales, and customer service functions in relation to McKinsey (2012). It appears to be leveraging from numbers 4 (derive customer insights), 5 (use social technologies for marketing communication/interaction) and 6 (generate and foster sales leads).
Successes of social integration by Tesco [News Articles]:
- Tesco’s innovative social media strategy puts customer service at the heart of every interaction, a shrewd move that has resulted in the retailing giant being named best in the world for social customer care.
Social technology can and does influence consumers and their buying behaviour and the actions retailers such as Tesco put in place to create an advantage over their competitors can be crucial. Despit Tesco’s efforts in social technology, they have suffered their worst sales for decades (30 years) and experienced one million fewer customer visits a week at Tesco (as from 25th May 2014).
Question: How do you think social can help Tesco in their time of trouble?
1) ATKINSON, K. (2014, August 18). Retrieved from http://socialjournalism.com.au/the-social-shopping-network/
2) Case studies in Business Case Studies. (n.d.). Retrieved from http://businesscasestudies.co.uk/tesco/#axzz3Cd0dYEvT
3) A quick overview of Pinterest. (2013, January 28). Retrieved from http://www.businessproductivity.com/a-quick-overview-of-pinterest/
4) 3 ‘Pinteresting’ Facts About Pinterest Users [INFOGRAPHIC]. (2012, January 1). Retrieved from http://www.pinterest.com/pin/234257618087475827/
5) THE REAL GOOGLE PLUS DEMOGRAPHIC. (n.d.). Retrieved from http://adjustyourset.com/news/real-google-plus-demographic
6) Patel, M., & Blakey, A. (n.d.). HOW DOES TESCO USE SOCIAL MEDIA? Retrieved from http://giraffesocialmedia.co.uk/how-does-tesco-use-social-media/
7) CLENCH, S. (2013, November 15). Tesco Mobile triggers the best Twitter conversation ever. Retrieved from http://www.news.com.au/technology/tesco-mobile-triggers-the-best-twitter-conversation-ever/story-e6frfrnr-1226761102897
8) The World’s Best Brands in Social Media Customer Care on Twitter. (2013, January 1). Retrieved from http://www.socialbakers.com/blog/1743-the-world-s-best-brands-in-social-media-customer-care-on-twitter
9) Tran, R. (2013, November 27). Tesco Awarded CCA’s Most Effective Use of Social Media Award 2013. Retrieved from http://www.conversocial.com/blog/tesco-awarded-ccas-most-effective-use-of-social-media-award-2013#.VCDGAyuSxWJ
Pinterest – Quick Overview. (2013, February 27). Retrieved from http://www.slideshare.net/WearetheMissingLink/pinterest-quick-overview
Chu, M., Manyika, J., Bughin, J., Dobbs, R., Roxburgh, C., Sarrazin, H., … Westergren, M. (2012, July 1). The social economy: Unlocking value and productivity through social technologies. Retrieved from http://www.mckinsey.com/insights/high_tech_telecoms_internet/the_social_economy