MCDONALD'S SOCIAL LISTENING JOURNEY - ANA DATA & ANALYTICS VIRTUAL EVENT - HOSTED BY WHARTON CUSTOMER ANALYTICS MARCH 30, 2021
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McDonald’s Social Listening Journey ANA Data & Analytics Virtual Event – Hosted by Wharton Customer Analytics March 30, 2021 © 2021 McDonald’s Corporation . All Rights Reserved.
Looks effortless, but it takes years to get there. A BALLERINA'S TALE ft. Misty Copeland Official Trailer (2015) HD © 2021 McDonald’s Corporation . All Rights Reserved.
Social media is a massive platform where we can collect data from our current and future customers. It’s where consumers In our ambition to are (and where they convert indifferent to expect brands to advocates, social is engage where cultural conversations unfold + 50% People in the World on Social Media Source: Hootsuite, July 2020 © 2021 McDonald’s Corporation . All Rights Reserved.
Our social ecosystem is large; therefore we have massive amount of data. Over ½ our channels reaching more than 500k followers. We are responsive to emerging social media platforms. We have equipped our teams with tools to allow them to manage our activity across these channels. © 2021 McDonald’s Corporation . All Rights Reserved.
There are different ways we engage with customers in social...amplifying datasets that we collect. Net Agree 94% marketer believe their social media content has a positive impact on the way consumers see them Net Agree Customer requests Celebrity campaigns Cultural moments 79 % Have had a social post that’s gone viral in the past year © 2021 McDonald’s Corporation . All Rights Reserved. Source: OMD Quantitative Survey
Many social conversations are competing for our attention. Marketing campaigns Products Restaurants Brand Reputation Crew Operations https://www.abtrainingfacility.com/ Memes Violence Customer experience PR © 2021 McDonald’s Corporation . All Rights Reserved.
Social listening analysis helps us analyze this unstructured data. WHAT IS SOCIAL LISTENING? Social listening involves scraping the web and open social media sources to collect data on consumer conversations based on specific pre-defined topics. The gathered data is then analyzed to understand popular trends and obtain consumer insights. These insights can inform product innovation, asses marketing campaign performance, identify brand advocates, or provide competitive actions that can inform strategy. HOW DOES SOCIAL LISTENING WORK? Social listening tools only collect publicly available social media sources, based upon designated keywords. Insights are delivered on a dashboard for analysts to decipher or via displays or they are served via email alerts that show that a topic of interest is trending (e.g. going viral) in social. © 2021 McDonald’s Corporation . All Rights Reserved.
We’ve relied on vendor partners to help us get to insights and democratize to teams. Outside Corp Partnerships: OMD/W+K Comms McKinsey Kantar Global Strategic Listening Vendor: Insights • Built Topics/theme architecture Global Market Marketing • Built AI capabilities: Social Operations • Smart Alerts Teams Supply • AI Smart Themes finder Chain • AI Insight finder • Democratization: Global IT • Self-serve Dashboards Data & • Real-time Displays Analytics Customer Data Care Analytics Hub © 2021 McDonald’s Corporation . All Rights Reserved.
Especially during pandemic, our team leaned into social listening … Only data source we had for consumer insights, before we could set up a Sentiment Tracker across our markets Could understand customer anxiety – safety was # 1 concern … and continue to use to performance against McDonald’s new growth strategy. Literature suggests best ways to measure advocacy include surveys and social listening © 2021 McDonald’s Corporation . All Rights Reserved.
But the data is noisy and not always actionable. So we’ve built a text analytics tool. “I ordered a burger, it was good, the fries were cold.” • Keyword based (rules) incomplete • All text analyzed • Hard to classify new data quickly • Classification automated • Sentiment of post unreliable • Reliable sentiment of phrase (80%+) • Spam (irrelevant data) • Relevant Social listening & CSAT data • Extract one insight at a time • Extract multiple insights © 2021 McDonald’s Corporation . All Rights Reserved.
The TA tool surfaces insights quickly, and it will get better over time. “I ordered a burger, it was good, the fries were cold.” © 2021 McDonald’s Corporation . All Rights Reserved.
“A common challenge is recognizing that we are still in the early stages of AI. It’s not a silver bullet. It requires a high volume of quality data, solid analytics capabilities, and strong business applications. When you adopt AI, you often have to create the data, train models, and do labeling. Sometimes the solutions are still fairly linear and can be brittle and difficult to flex when the models evolve.” -Craig Brabec, VP Data Analytics Hub, McDonald’s WSJ, An Appetite for AI at McDonald’s © 2021 McDonald’s Corporation . All Rights Reserved.
And given the benefits, we are investing further. Benefits Current limitations 1 Time Savings 1 No competitor data (yet) 2 Sentiment accuracy – 80%+ 2 UI handling 3 Scalable 3 Added costs 4 Data ecosystem 4 Continuous model training © 2021 McDonald’s Corporation . All Rights Reserved.
We’ve worked with data scientists to get to better keywords. Project to detect potential food safety issues more quickly. Our current vendor keywords cannot reliably identify new tweets that mention food safety non-compliance issues. Hypothesis: Can we reliably identify food safety non- compliance issues on Twitter through keyword searches? © 2021 McDonald’s Corporation . All Rights Reserved.
And we now have an ecosystem from which to build other capabilities. Connecting to other databases L’Allegro, il Penseroso ed il Moderato, Marc Morris Dance Center © 2021 McDonald’s Corporation . All Rights Reserved.
A future of connected databases, teams and methodologies would allow us to avoid situations below. McDonald’s is running out of burgers thanks to a partnership with the rapper and singer Travis Scott. 1 Travis Scott The fast-food chain confirmed the shortages in a statement to Business Insider after some people said on Twitter that their local McDonald’s had run out of the Travis Scott Meal. 2 Spicy McNuggets The Chips Ahoy! McFlurry that was advertised with the Spicy McNuggets (because dairy has cooling properties) is also selling Chips Ahoy McFlurry out, as is the Mighty Hot Sauce. Business Insider notes that this is the not first time this month. McDonald’s has revealed it is “working quickly” to restock Pokemon 25th Anniversary trading cards following reports that 3 Pokemon Happy Meal cards scalpers are profiting from the limited-edition packs – and is “strongly encouraging” restaurants to set a limit on how many packs they sell to individual customers. © 2021 McDonald’s Corporation . All Rights Reserved.
We are starting to integrate more AI into our projects and we are still learning. Current Lessons learned 1. Spend the time to ask the right questions (starting with customer experience) 2. Importance of MVPs: Learn quick, limit investment, clear timeline 3. Select the right team to implement: business owner, IT architects, data science team 4. Remember YOU are the business owner – you own specifications 5. New challenges arise: ▪ Data Privacy ▪ IT Processes / tools change over time ▪ API changes: constant evolution ▪ Teams change © 2021 McDonald’s Corporation . All Rights Reserved.
We also know from ROMS models the importance of our customer comments (earned social) on sales. Not a ‘one model fits all markets’ approach. ROMS study Market 1 ROMS study Market 2 ROMS study Market 3 2017-Q1 2018 2017-Q1 2018 Q1-Q3 2020 Coupons Paid Social Media 0.4 0.6 Nat’l Paid Media 2.2 3.6 1.0 0.6 2.7 0.2 1.6 3.3 0.9 15.0 Earned Social 1.1 Earned Social Mentions Earned Media 6.9 Media Local Paid Media Base Sales 94.0 Non-Marketing 93.0 96.0 94.0 Non-Media 78.0 Other Paid Media Customer Care 0.4 5.0 Portfolio Sales Portfolio Portfolio Portfolio Portfolio Sales Sales Sales Sales Observation: Observation: Observation: Social media conversations about Social media marketing contributes Earned Media (PR+Earned Social) had a McDonald’s helped generate 1.07% of 1.39% of sales among which .63% are strong showing in 2020, with marketing incremental sales for the business. from paid social and 0.41% from earned campaigns the key drivers. These earned conversations work social mentions. 0.35% are driven by together with media and non-media. customer care. Earned social mentions And less so with coupons. interact mostly with TV media and Paid Social media. © 2021 McDonald’s Corporation . All Rights Reserved.
Each market has different strategic intent and priorities. © 2021 McDonald’s Corporation . All Rights Reserved.
To get to a beautiful production, need to group talent across the organization to bring initiatives to life. Future plans for social data Build out prediction: feedback from customers to inform operations and training Integrating Loyalty data – to inform more relevant offers Identifying Micro trends to elevate creative ideation for content teams A BALLERINA'S TALE ft. Misty Copeland Official Trailer (2015) HD Democratizing interactive visualization to prevent crises © 2021 McDonald’s Corporation . All Rights Reserved.
“It’s a little bit of a Rubik’s cube of what’s the customer looking for, what works operationally and then the business fundamentals.” -CEO McDonald’s Chris Kempczinski © 2021 McDonald’s Corporation . All Rights Reserved.
Recap 1. Social media is a massive platform where we can collect feedback about customers 2. Social listening tools can help teams uncover insights with real-time agility and inform future action 3. Text analytics can help you get to insights more quickly, but still in early stages of AI 4. Partnership and communication across teams is critical 5. Starts with alignment on strategic intent © 2021 McDonald’s Corporation . All Rights Reserved.
Thank You Very Much jolanta.oliver@us.mcd.com © 2021 McDonald’s Corporation . All Rights Reserved.
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