Growing influence

Updated: 2013-04-05 09:15

By Lin Jing and Chen Yingqun (China Daily)

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In March last year, McDonald's was the subject of an expose by CCTV for selling expired food in its Sanlitun branch in Beijing. Within an hour of the exposure, the company announced the suspension of business at the branch, and subsequently apologized on its micro blog, all of which triggered nearly 388,995 posts.

"McDonald's used its official micro blog to help calm netizens and lead the opinion direction, while taking offline measures to suspend the business of the branch in question. In this way, it was able to quickly and successfully resolve the crisis," Chu says.

Ogilvy research shows that brands having an official micro blog account before a crisis can reduce response time by nearly 12 hours, while the average crisis duration can fall to 15 days from 17 days, along with substantial reduction in negative buzz.

"Micro blogs are an important platform base on which brands can monitor public sentiment and respond to crises as soon as possible. As crises are exposed, brands that respond via their official micro blogs can help pacify disgruntled netizens. Coupled with remedial measures offline, it's possible to diffuse the crises in a short time," Chu says.

Wilson says that the most important issue of micro blog marketing is to be open and pay close attention to daily events.

According to Wilson, loyal fans often defend the brand if there is a mistake or misunderstanding.

"Sometimes when consumers charge us with doing something wrong, we don't have to say anything, because we find that our fans often come to our rescue by telling them that was wrong," Wilson says.

Besides Sina Weibo, foreign companies also conduct marketing activities on Renren, the Chinese version of Facebook, and WeChat, an instant messenger app for smartphones. But many like Wilson still consider micro blogs as the most influential platform.

"Companies can use it for collecting feedback, especially when launching new products, and manage their consumer experience and improve their products accordingly," says Jane Zhang, principal research analyst in consumer technology and markets with global research firm Gartner.

"Unlike the traditional ways of marketing, targeted communications and marketing influence on micro blogs can be quantified," she says.

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"When you select a celebrity account with 5 million followers for promotional purposes, you can be sure that the post will reach 5 million users."

Zhang from Gartner says that micro blogs in China also serve as a major public media platform, and as a hub for information exchange, rather than just a place to share the joy of one's private life.

Realizing this, many of the major micro blog operators are gearing up to offer better services for companies to optimize their micro blog marketing campaigns.

In October 2012, Sina Weibo launched the micro-task, a tool it hoped would lead to better commercialization of Sina Weibo.

Micro-task, or Weirenwu in pinyin, is the official platform for posting and accepting tasks.

Enterprise users can create tasks and choose some specific accounts to post or re-post advertising campaigns for a certain commission fee. The micro-task platform collects a 30 percent service fee from companies.

According to Sina, micro-task aims to provide more benefits to marketers than ordinary accounts, with added advantages in credibility and transaction protection.

In April, Sina Weibo intends to launch an online payment service called WeiboPay, to translate its online traffic to revenue.

Hong Lizhou, general manager responsible for Sina Weibo's marketing strategy, says the service aims to provide a seamless payment system, and connect merchants that sell goods via their corporate accounts on weibo.

After selecting their products, micro blog users will be redirected to a payment page where they can choose to pay with a credit card or a third-party payment solution provider such as WeiboPay. The service will act as a middleman between the merchant and the bank.

Tencent also started its own micro blog services Micro Space in July 2011. The platform offers companies an SNS channel for customer relationship management.

Xing Hongyu, general manager with Tencent Weibo Business Unit, says the company will integrate its popular services like QQ and Qzone, to help clients create one-stop micro blog marketing platform.

Yao from Royal Caribbean says that micro blog marketing has replaced BBS (bulletin boards) or blogs in netizens' lives. She believes that with better marketing services, micro blog marketing looks set for a promising future.

Contact the writers at chenyingqun@chinadaily.com.cn and linjingcd@chinadaily.com.cn.

(China Daily 04/05/2013 page1)

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