In a new report, social media guru Charlene Li, in partnership with wetpaint, reviews and charts Interbrand’s top 100 brands based on their social media presence and the level of engagement they have with their customers. It’s an innovative and important report for a number of reasons. First and foremost, the report attempts to actually measure the depth of engagement and provides additional insights on trends by industry and the number of social media channels used by each brand. Next, the report goes on to correlate financial performance of these brands with level of engagement.

Not surprisingly, “Mavens,” (those brands engaged in seven or more social media channels with an above-average engagement score), enjoyed double-digit revenue and margin growth (as a category) in spite of the current economy compared to “Walflowers” (those engaged in six or fewer channels and had a below-average engagement score) who had negative financial performance on those same metrics.

Additional insights from the report include:

• Being there is important: having a presence on social networks and micro-blogging outlets is important. The report goes on to say “social media reach alone may have a positive impact” as the more touchpoints used can cause a “ripple effect”, by increasing or “boosting” brand recognition and driving sales volume.”
• Depth is critical: In some respects focusing on depth over breadth may be an effective strategy as depth gives brands the opportunity to understand customer needs and to react quickly – “which in turn generates pricing power” and drives success.
• Scalability is key: Make the customer and a commitment to social media a part of the culture. “A few minutes each day spent by every employee adds up to a wealth of customer touchpoints.”
• Doing nothing is not an option – but doing it all may not be appropriate: Building a social media strategy depends on many factors including who your target is (remember Forrester’s POST methodology), your industry, etc. However, being where your customers are and a part of their online experience is critical.
• Find your sweet spot: Understand what resonates with your customers and engage with them in the channels they use and prefer. If resources are an issue – start small, lobby for more assets and engage fully.

The report goes on to highlight some very compelling case studies including profiles on Starbucks (ranked #1), Dell (#2), SAP (#9), Toyota (#21) and also includes a complementary website that allows brands to engage further and even complete their own brand’s profile. Another great report from Charlene! However, with the focus being so heavily placed on measurement these days it would be great to better understand the “engagement attributes” used to rank these brands (but I guess that is the secret sauce). Furthermore, I would have liked to see how much of a lift these brands experienced on a series of other metrics. Specifically, in a world where people are turning to other people for a things they need rather than the brands themselves, it would have been great to see if these brands experienced any lift in metrics like satisfaction, likelihood to recommend, likelihood to purchase.

To download the report click here.

‘Til Next Time

As many of you know, part of The PMN’s value proposition is access to our unique Gen Y panel. Leading brands interested in engaging with and learning from Generation Y have the unique opportunity to conduct research and connect with Gen Y face-to-face at various events. As the influence and power of Gen Y continues to grow so will the importance of reaching, understanding and engaging these influencers. One company that has already embraced Gen Y’s is Ford. In fact, Ford is reaching out to young influencers in order to help spread the word about the new Fiesta with a participatory marketing campaign entitled “The Fiesta Movement.”

Developed in partnership with digital think tank Undercurrent and AMG, their U.S. based partner, the campaign invited 100 young people selected from more than 4,000 applications to drive a Ford Fiesta for six months and report their experiences on various social media sites. The lucky 100 selected were chosen based on their “influence” determined by such factors as blogging experience, number of social network friends and their video application detailing their desire for adventure and why they would be a good representative for the Fiesta Movement. The campaign officially kicked off last month and with more than 650,000 views of the applicant videos on YouTube word is spreading fast. Fiesta Movement participants will receive monthly missions from Ford around key travel themes to blog and share their experience with friends.

The program is one of several I’ve seen recently that demonstrates how struggling automotive makers are embracing social media. Given the Ford effort, it is easy to see why Ford recently ranked number one in the Vitrue 20 Top Social Auto Brands – a new social brand index that was designed to capture a brand’s share of voice and chatter across the growing social internet.

But where this really gets interesting for me is on two fronts.

1. When we get to the point were brands can actually identify power influencers with the help of additional data. What is a power influencer? A power influencer goes beyond understanding the social graph and metrics like the number of connections; it ties actual purchase/ownership data/information to influencers and measures that user’s engagement with the brand i.e. current/previous Ford owner and member of various Ford clubs and social communities.

2. Seeing how big brands will leverage and/or re-allocate their traditional advertising and communication efforts such as promotional emails to drive further momentum for these programs. One recent example of this was Toyota’s “New Prius Comes Out to Play” email. The email included links to a YouTube video of consumers and Prius owners getting a preview of the new 3rd generation Prius prior to its official introduction. It reminds me a little of a pop singer hitting the clubs to preview their new album with MTV in tow to video every move and fan reactions. By using traditional media such as TV and email, reach and engagement activity can be expanded exponentially.

It is an exciting time and it is particularly interesting to watch the struggling automotive industry adapt and evolve to the social web as the economic pressures continue to mount and in many ways force them to participate or perish. Not such a bad thing!