Dennis Prince Y. Germano, DBA and BSBA-111, Principles of Marketing Class

1. Tapping Facebook as Customer Engagement Channel: Insights for Supply Chain Intelligence for Mobile Telecommunication Companies in the Philippines Dennis Prince Y. Germano, DBA and BSBA-111, Principles of Marketing Class Global City Innovative College

2. Introduction • Need for customer engagement • Diminishing power to dictate communications agenda (McKinsey and Co, 2006) • Decreasing brand loyalty • Low entry barriers

3. Massive use of online media • Customer literacy • Supply Chain Management (SCM) as a source of competitive advantage

4. Customer Engagement (CE) - turning on a prospect to a brand idea enhanced by the surrounding context (ARF Convention, 2006) • Online Customer Engagement – marketing practices that aims to create, stimulate or influence CE behavior (Eisenberg and Eisenberg, 2006)

5. Customer Engagement Behavior (CEB) – customer’s behavioral manifestation toward a brand or firm, beyond purchase, resulting from motivational drivers (van Doorn, et al, 2009) • CEB includes word of mouth (“word of mouse”) activity, recommendations, helping other customers, blogging, writing reviews, and even legal action.

6. Facebook Statistics • Global • 800 million ++ active users • 350 million ++ users access Facebook through mobile devices • Philippines • Total Population: 94 million ++ • Total Users: 27,033, 680 • Global Rank: 8 • Penetration of Population: 27.06% • Penetration of Online Population: 91.02%

7. Facebook Fan Pages • Facebook introduced Pages in 2007 • User profiles for brands (companies, organization, and celebrities) • Ability to quickly send messages to thousands of fans

8. Literature • Companies recognize the power of the Internet as a platform for co-creating value with customers (Sawhney, et al, 2005) • There is a need for understanding the nature of customer-brand relationship and creating a model for customer engagement (Bowden, 2009)

9. Supply Chain Intelligence (SCI) – provides the capacity to show opportunities to cut costs, stimulate revenue and increase customer satisfaction by utilizing collaborative decision making (Batori, 2010) • SCI provides strategic information to decision makers

10. There is a need for human analysis due to the limitations of Social Media Analytics (Crosman, 2011) • There’s a lot of sarcasm in Facebook (e.g. “Wow, grabe naman laging di walang signal!” could be interpreted by software as positive) • Tools that measure sentiment don’t usually do a good job at measuring sarcasm (Eliason, 2011)

11. Executives of public and private companies see social media as a growing set of marketing tools (Grant Thornton Study, 2011) • 53% see the corporate use of social media increasing significantly in the next 12 months • 48% feel that social media will be an important component of future corporate marketing efforts • Companies have not yet developed the necessary compliance and risk policies and procedures

12. Problem Statement • What information do mobile telecommunication companies share in their official fan page? • What updates do telecommunication companies post? • How do fans react to wall updates? • To what extent are fans engaged?

13. What are the issues and concerns raised by fans? • To what extent are the issues and concerns addressed?

14. Results and Discussion • Fan Page Profile • Users (Likes): Company X = 1,118,822; Company Y = 565,831; Company Z = 50,059 • Talking About the Page: X = 3,861; Y = 3,426; Z = 712 • Company Overview • Products and Services • Website • Contact Details • Likes and Interest • Other Information

15. Wall Updates and Reactions • Overall Net = -83 • X = -172; Y = -6; Z = +95

16. Extent of Engagement

17. Extent of Engagement: Cross-selling/Switching Loyalty

18. Issues and Concerns

19. Response to Issues and Concerns

20. Conclusion • Mobile Telecommunication Companies provide essential information in their official Facebook fan page • Wall updates are heavy on promotions • Page users are generally dissatisfied (net satisfaction of -83) • Page users are highly engaged in expressing dissatisfaction and cross-selling to other users

21. There is a threat in switching loyalty between mobile networks • Connectivity and service quality are major concerns • Response to users’ (customers’) concern is relatively slow

22. Recommendations • Facebook fan pages information should be periodically updated • Mobile Telecommunication Companies need to employ soft sell strategies • Establish customer relationship management • Improve Customer Service Hotline (specially Smart) • Implement loyalty program online

23. Develop risk management policies on maintaining fan page and engaging customers online • Software + people to monitor comments and posts (especially sarcasm) • Qualitative + quantitative tracking of fan page activity • Establish offline relationship with active page users

24. Decision makers and leaders of Mobile Telecommunication Companies must be informed of updates and dynamics of online customer engagement • Reasonable regulation of posts by National Telecommunications Commission (NTC) and other appropriate agencies • Further research (Qualitative) on customer engagement via Facebook

25. Thank you!