Corporate Social Responsibility and Philanthropy: Small & Large Acts of Kindness by Luxury Companies

Consumers are looking at what companies are doing with regard to social responsiblity. They are looking beyond donations and want to know how the companies are getting involved with the environment and society around them. This is especially prevalent with luxury consumers. A luxury brand's corporate social responsiblity makes a huge impact on the consumers choice to purchase its goods. What luxury brands are doing what in terms of CSR?

Luxury brand Louis Vuitton has a program with SOS Children's Villages called Parnership for Children's Futures. The partnership helps children who are orphaned, abandoned or whose families are unable to care for them. Worldwide, SOS Children's Villages cares for over 78,000 children and young people in 500 children's villages.

Bulgari works with Save The Children organization and has been raising millions to help children worldwide.  Gucci partners with the United Nations Childrens Fund and has environmentally friendly packaging.  Burberry has its own Burberry Foundation, which helps young people realize their creative dreams. Burberry also partners with 17 charity groups in Asia, America and in Europe.  Giorgio Armani has supported the following charities: American Foundation for AIDS, Global Fun, UNICEF, and RED to name a few.

Now more than ever consumers are scrutinizing what their favorite luxury brands are doing for others. There is and there will be an increasing social pressure to become more charitable, generous and attentive to society and the environment. The pressure is on and rightly so.

Discussing Corporate Responsibility: Burberry President Angela Ahrendts and Chief Creative Officer Christopher Bailey at Annual Vendor Conference, London.

CAN YOU CARRY OUT YOUR OWN SOCIAL MEDIA MARKETING ACTIVITIES?

Whether you have a small business or a large company, the question most asked nowadays is if you or your staff can carry out your own social media marketing activities or do you need to hire a consultant.

The answer is largely dependent on what you want to get out of social media marketing and what you can put into it, in terms of time and money.

As anything else, the more time and attention you devote to something, the greater the chances of it growing and developing. You know your product or service more than anyone else but can you devote a lot of time to digital marketing activities?  How much time? I would say you should be able to devote at least 1-2 quality hours daily. This means time devoted to research (staying informed of what is new in your sector, product but also in terms of viral marketing), writing valuable content, contributing to forums or groups and associations and answering questions. It is not easy nor is it fast. It requires hard work and consistency. It requires putting together a strategy with goals, implementing your strategy, measuring what you are doing  and then tweaking and retweaking until you are getting the results you want.
Without a doubt, if you do decide to hire a consultant or agency, you will still have a major role especially because you know your product more than anyone else. You will be working with your consultant and giving him/her the input he/she needs to carry through.  Make sure that the consultant is not just offering you a list of things to be done.  Every product and service is different and the consultant has to understand this. Most importantly, ensure  that the consultant is doing the research to know who your audience is and where your audience is. Good luck.

Understanding Your Online Audience

Your audience online is changing? Are you? Do you really know who your target market is and more importantly, do you know what it wants? Often times we spend and waste time "talking" to an audience that is not our potential consumer. Have you thought about how many of your Facebook fans or followers would actually be interested in your product or service? For example if your content or wall posts on Facebook is geared toward sales in sporting equipment and most of your Facebook followers or friends are elderly people who rarely get out to ski, you are definitely not going to get the results you are looking for. Another example is you own an expensive wellness spa but your followers are all college students that have little to no disposable income. Perhaps you are the CEO of a trendy swim trunk company and your followers are friends that purchase maybe one pair of swim trunks every year. You need to do some reaching out to find an audience that really "fits" your product. You need to find out who your evangelists are and you need to cater to them.

What forums do you actively participate in? Are you offering interesting and valuable information in these forums or are you just trying to make a fast sell? The same holds true for online associations, groups and clubs. You need to find the people that are truly interested in the same product or service you provide.

Understanding your audience takes a lot of research and does not happen overnight. The payoff however is great. The engagement between you and your audience will be a natural consequence and that engagement will lead to future sales.

TIPS ON USING FACEBOOK

DON'T use Facebook for a fastsell. People don't want to be marketed to and it is a quick turn off. If you have a repair shop or store don't post "Get our gift certificates now." This type of marketing via social media is not effective.

DO offer valuable information for your audience and then mention your product or service. It is much more effective. In other words if you have a shoe repair shop or dry cleaning business, tell your audience how to get rid of stains on your shoes or clothes. Then you can tell them about your gift certificates.

DON'T just copy what your competitor is doing. What works for them may not necessarily work for you. Just because Burberry's Christopher Bailey is "talking" to his fans about the brand on its Facebook page and has fantastic results in engagement does not mean Gucci's Frida Giannini will have the same type of success. There are a lot of different factors in play and duplicating exactly the same thing that the competitor is doing, especially for a luxury brand, is like copying another brand's designs. Not good.

DO research what the competition is doing via social media and then find creative ways to make your strategy even better.

DO engage the audience offering interesting information. No one wants to read that you are attending a staff meeting to discuss delivery schedules. Boring.

DON'T  be wordy.  People don't have time to read lengthy posts.

DO provide accurate information and use proper grammar.

DO find an audience that can actually utilize your information.

Managing Luxury Brand Online Content

Managing your  online brand  content can be as common sense as proofreading the grammar and punctuation on all your material to setting and managing the overall tone of the brand throughout all digital platforms.It is surprising how much material gets published without anyone reviewing and editing the content. It is even more surprising how many errors get published even though content was reviewed and edited!

Luxury brands in particular have to be extremely careful and prudent in not only what is written about their products but how it is written. Building and managing the overall tone of a luxury brand is extremely difficult. Typically content is reviewed many times before being published. The tone of the company has to match its message. The personality of the content writer should not come out in his / her writing but rather the personality of the company and brand should be a natural consequence. Luxury brands usually have a subdued tone. Typically, one would not find sarcasism, humor or aggression in luxury brand content. Also as for any content, grammar and punctuation should be precise and there should not be any errors in information given.

Now more than ever branded content is created with mobile devices in mind. What does this mean? It signifies that content should be to the point, not wordy, interesting and valuable. The average person has literally seconds to read and digest the material and decide if it is valuable enough to pass on to others or to utilize. Consumers don't want to be advertised to or pushed to purchase. Rather consumers and fans of brands do enjoy feeling a part of the "brand" family. Burberry for example invited fans on Facebook to ask questions directly to its Chief Creative Director, Christopher Bailey. Mr. Bailey then answered questions live via Facebook, addressing fans by their names. It was a huge success. Gucci, just recently did the exact same thing with its Creative Director, Ms.Frida Giannini.

Everyone and anyone who represents the company and who publishes content has to be onboard and strictly supporting the corporate tone and message. The social media strategy is no longer "owned" by the marketing department and therefore anyone in the company can adversely affect the luxury brand's social media strategy. Not only should there be training sessions to aid employees on how to use new social media tools, but those who represent the company online should publish content that is consistent with the overall corporate tone and message.

Engagement & Perceived Value Through Social Media Marketing

When you think about how to engage an audience, you have to first focus on the message you want to get across. Toms shoes focuses on their message of helping children. Zappos focuses on their superior services and the value of people, both their own staff and their customers. 

Apple focuses on selling superior products to their fans. Apple fans are not just repeat consumers but feel they are a part of something bigger. They feel a sense of belonging to the Apple family. The focus of Burberry is to provide high quality  luxury products. Burberry fans feel a connection to the historic brand that other luxury brands cannot seem to replicate.

There is no formula in building an affinity through social media with your customers. It takes hard work, committment and real engagement. The message has to be clear and real. How is your brand, product, service perceived? What can you do to change the perception? Consumers are looking for increased value.  You neeed to raise your brand's perceived value. For example, you may have a wonderful product but consumers are asking, what have you done for the environment, charities, non profit organizations,etc.

What do your customers value? Is it price, quality, availability, after sale service, etc? What is the most important parameters for your clients? For a dry cleaner it may be extending your hours to accommodate your clients. For a Doctor it may be returning phone calls personally. For a new brand of footwear it may be comfort and style.

Once you know what your customers value you can take steps to reach your audience through social media marketing. You may announce through Facebook your new extended hours or the fact that you personally return all calls. Once you have the perceived value down you need to express it.

Social Media Marketing - Finding Your Audience

The first step in social media marketing is identifying your product or service. If you have done your homework and a business plan, you should already have a clear definition of what you are selling, whether it be legal services, shoe repairs, leather handbags or cooking classes. If you cannot put in simple words what your business is, then you need to go back and work on your business plan. This is key to continuing.

The next step and all so equally important is defining who your audience, consumer, potential customer is. It sounds like a clichè but you really have to think outside the box and research this point fully. For instance, you may have an eyeglass store in a small town and think your potential customer is the average person who needs eye glasses. Well this may not be the case. In fact if you do your research, you will find out that when people get their prescriptions filled by eye doctors, they usually ask the eye doctor to recommend where to buy the glasses. So in this case your leads are coming from eye doctors and not the average person who walks into your store.

Another example could be a cooking school who wants to promote its gourmet cooking classes for children. This cooking school's audience is not the children but their parents and not just any parents but parents from a specific income level that can afford these type of classes. One would waste resources of time and money trying to engage all children or all parents in this instance. A better step would be to find through blogs and forums for instance parents who enroll their children in other classes (sports, music, dance, etc) in your area.

Why is it so important to know exactly who your audience is? If you don't know exactly who it is, you will not be able to locate the audience in social media communities. The average Joe does not "hang out" in the same social media communities as Dr.X, the eye doctor.Once you know who these people are and where they are, you can create content that is specific to that target audience.