Five Facebook Tips for Small Businesses

Posted on January 25, 2012 by Paul

Most small businesses are terrible at marketing in general and online marketing in particular. That’s understandable: The founders are usually more passionate about what they do than about promoting themselves.

But with Facebook becoming the place you just have to be for businesses of all sizes, a little marketing know-how comes in handy. I recently spoke to Mark Schmulen, general manager of social media at the small-business-focused e-mail service provider Constant Contact about how to go beyond the Facebook wall and make the social network a practical and measurable small business marketing platform.

“When we look at what platforms our small business customers are using for social media marketing, 94% of them are on Facebook,” Schmulen said. However, “Most small businesses are doing Facebook without knowing why they’re doing it.”

That’s the herd mentality at work. While it’s pretty easy to create a Facebook page, the task of convincing visitors to create persistent relationships through the “Like” button and to engage in conversation requires different skills. Forrester Research has estimated fewer than 15% of people who click a Like button ever visit the page again. Getting that repeat traffic is the special sauce of Facebook success.

Here are five tips that Schmulen recommends:

Tip #1: Know what your goals are. Sounds simple but it ain’t necessarily so. Depending on the business, goals might range from generating orders to attracting subscribers to building thought leadership. Whatever your goal, you need an offer to match.

Archway Cookies and Fortune Cookies are both focused on trials, the first through coupons and the second via a contest. Vindale Research isn’t in the food business, though; it wants to recruit people who are interested in getting paid to take surveys.

Each company matches its offer to its goal, whether it’s a free trial, information or downloadable assets like ringtones. Offers should always include a clear call to action, and you can use rotating FBML (Facebook Markup Language) pages to test different offers. If you lead with your wall, you’re missing an opportunity.

Tip #2: Make your offer shareable. There’s a Facebook phenomenon called the “power of 130.” The average Facebook member has 130 friends and the fastest way to spread a message is through social sharing. Facebook automatically offers members the opportunity to share a Like, but the real creativity comes when you can convince people to share some kind of unique content or offer you provide.

For example, Intrepid Travel invites visitors to play a trivia game and share results with friends. Players can also sign up to visit the exotic places highlighted in the game. Each answer to the quiz is shareable, as is the final score.

Tip #3: Keep it simple. Intel’s Facebook welcome page features product promotions, a gateway to its international pages, jobs, discounts and even a Twitter feed. Intel can get away with all that because it’s Intel, but for most small businesses, less is more, Schmulen recommends. He favors an approach like that of Fitness magazine, which rewards new fans with “our all-time favorite abs workout!” Fitness has a variety of other offers on its Facebook presence, but it leads with the simplest one.

That doesn’t mean you can’t have multiple offers, but give each one its own page and rotate them through different promotions. It’s easier to test results that way, too.

Tip #4: Promote everywhere. “’Field of Dreams’ was a horrible move for people who are learning about marketing,” Schmulen says. “Just because you build it doesn’t mean people will come. When you create a campaign, share it across all your social networks and e-mails. Use every channel you have.” I couldn’t have said it better.

Tip #5: Measure. Surveys, A/B tests, website analytics and marketing automation are essential tools for professional marketers, but you don’t have to be a statistician to understand whether or not your campaigns are working. Facebook’s built-in analytics give you a pretty good idea of what’s sparking conversation on your page. Take the 10-minute tour and learn what they mean. PageLever is one of the first independent Facebook measurement tools, and I expect there will be more. You can also use free and simple utilities like Bit.ly and Google URL Builder to track the popularity of links you post on Facebook. Most commercial e-mail services also offer pretty good metrics to show which messages are resonating.

Schmulen ticks off some factors to consider: “How many people visit the landing page? How many participate in the offer? How many share the offer? If people visit the page but don’t take the offer, it isn’t compelling enough. If they accept the offer but don’t share it, it isn’t distinctive enough. A great campaign gets people to connect, accept your offer and share it with their friends.”

Getting people to Like you is just the beginning, of course. A really effective Facebook presence is an ongoing conversation with lots of questions, challenges and responses. For inspiration, you could do worse than look at Constant Contact’s Facebook wall, where the company constantly seeks input on everything from new product ideas to the choice of band at a celebration party.

This is one in a series of posts sponsored by IBM Midsize Business that explore people and technologies that enable midsize companies to innovate. In some cases, the topics are requested by IBM; however, the words and opinions are entirely my own.

Facebook Tips for Midsize Businesses

Posted on October 19, 2011 by Paul

With Facebook presenting a tempting target of 800 million potential customers, small businesses are flocking to social network as a fast and easy way to generate business. But many SMB’s don’t take full advantage of the Facebook platform because they’re intimidated by the learning curve and the technical knowledge that Facebook applications demand.

Against the GrainThis is one in a series of posts that explore people and technologies that are enabling small companies to innovate. The series is underwritten by IBM Midsize Business, but the content is entirely my own.

That doesn’t have to be the case, says David Brody, Managing Partner at North Social, a software as a service company that specializes in serving small and medium businesses (SMBs) with a suite of Facebook apps that they can quickly integrate into their Facebook presence. I talked to Brody about tips for SMBs that want to optimize their Facebook presence.

It’s not about the likes. Research has shown that few people who “like” a Facebook page ever return to it. That means that getting a like is a means to an end, but not a goal.

“This is a test-measure-modify world,” Brody says. In other words, experiment with different offers and incentives to build fans and then measure those that deliver engagement and return visits. Remember, this isn’t direct mail, and your cost of trying something new is basically zero. On the flipside, simply getting someone to click a button is not enough. “‘Excite, Educate, Motivate’ has replaced ‘Awareness, Trial, Purchase,’” Brody says.

Match the offer to the business. Those ubiquitous iPad giveaways may not be doing much more than delivering business to Apple. Brody tells of one business owner in Atlanta whose offer of a flat-screen TV as contest prize yielded only 60 new likes. Maybe the problem was that the company is in the heating/ventilation/air conditioning business. An offer of offer of free or discounted air conditioning equipment might have played pretty well in Atlanta during the summer.

Capture and communicate. Facebook pages and apps offer easy ways to collect e-mail addresses. This creates a permission-based vehicle to continue a conversation. E-mail and news feeds can be used to deliver an ongoing stream of information that reminds people of who you are. Clif Bar asks first-time visitors to like its page in order to sign up for a newsletter, while Moosejaw Mountaineering touts giveaways, rewards points and tips..

This doesn’t mean e-mail is obsolete, but with inboxes mail clogged and people spending an hour a day on Facebook, the newsfeed has become an attractive alternative channel.

Use Facebook for sampling. Conventional wisdom holds that product samples need to be distributed on the street or unsolicited to the mail. It turns out Facebook can be an even better channel. One North Social customer that makes pretzels distributed 10,000 samples in less than 24 hours by sending them to people who liked its page. People who have opted in for a sample are more likely to be buyers than passersby in a supermarket. Audience quality more than compensates for the higher cost of distribution.

Be creative with promotions. You don’t have to incur manufacturing or mailing costs to distribute incentives with value. Think of a digital asset you can create that has zero marginal expense. Dentoola consulting gives away reports on how to apply social media in the dentistry profession. The Animal Print Shop gives away desktop wallpaper. You can exchange a like for a customized press release at Hunter PR.

Buy ads against pages of competitors or similar products. The great appeal of Facebook ads is their narrow targeting. Davids can ride on the backs of Goliaths by targeting ads to fans of much bigger brands. “If your product is candy, buy ads on the Skittles page,” Brody says. It’s the fastest way to find candy lovers online.

Keep the message simple and change it often. Don’t flatter yourself by thinking people will spend a minute on your page trying to figure out your message or offer. “Facebook is the equivalent of an out-of-home billboard,” Brody says. “You only have a few seconds to make an impression. Keep your message to a few words and make it compelling.” Remember the earlier point: You can always change the offer and test something new.

Get people involved. Brody is no fan of the automated tools that enable page owners to auto-post content across multiple social platforms. “No one wants to be friends with a robot,” he says. “Motivate your alpha evangelists.” Games, quizzes and giveaways work well, particularly if they challenge the audience to be creative.

One midsize business that Brody thinks does a lot of things well on Facebook is footwear maker Sanuk. From its provocative “like” message to its offbeat video to an online store that juxtaposes user comments with product shots, it provokes conversation at every turn. North Social’s examples page has plenty more.

Social Marketing Wisdom from the Insurance Industry – Really

Posted on August 26, 2011 by Paul

I was privileged to be on a panel with some outstanding social media practitioners from the insurance industry at the 2011 Social Media Conference for Financial Services put on by LOMA LIMRA this morning. Financial services firms – and insurance companies in general – are often seen as boring, but what these companies are doing within the confines of a heavily regulated business is anything but that. Farmers Insurance for example, hasn’t accumulated 2.3 million Facebook likes by boring people.

I actually think insurance is a fascinating business. It involves taking calculated risks about the unexpected. Insurance companies need to know a lot about the world around us, because their business deals with so many variables, from accidents to earthquakes to the chance of being hit by a meteor. This morning’s audience of about 100 social media practitioners truly believe in the value of new platforms to reach their customers, although they have understandable concerns about the many regulations that govern what they can say.

Here are some notes I took away from the three speakers on my panel.

Gregg Weiss (@greggweiss) of New York Life says the company’s social media content strategy is driven by constantly asking, “What can we do that isn’t about life insurance?” This was a theme that was borne out in every presentation: It’s not about the company but about what motivates customers.

A sampling of what New York Life has done:

Partnered with the NFL on a “protection index” of pro football teams;
Created the New York Life Game of Life in partnership with Hasbro. The goal was to get people talking about financial stability and have a chance to win the popular board game;
Hosted a Twitter chat about Halloween safety.

New York Life has carefully cultivated more than 100,000 likes on Facebook. “We believe 60% of our Facebook fans are prospects,” Weiss said.

His best story actually had nothing to do with insurance but everything to do with using social marketing to build loyalty and word-of-mouth awareness.

He told of buying a coffee at Dunkin’ Donuts: milk, no sugar. But when he got to the office, he found the beverage was loaded with sugar. “I couldn’t drink it.” He tweeted his dissatisfaction. Within two minutes he had a reply tweet from the head of corporate communications at Dunkin’. She asked for a phone call, during which she apologized and offered a gift card, which arrived in the mail two days later. “I tweeted about Dunkin’ Donuts’ great response,” he said. “It was a huge win for them. “

His advice to social media marketers: “Think big. Everyone in this room has the power to change things at your company. That’s incredibly empowering.”

Quotable: “The VP of Social Media at New York Life is the hundreds of thousands of people who have online relationships with us.”

And finally, “Seek a higher purpose. I hope someday to hear a story of a kid who got to go to college because a parent bought a life insurance policy from us.”

Kelly Thul (@kellythul), State Farm.

State Farm got started in social media when it set up a blog to find New Orleans-area employees and agents who couldn’t be located after Hurricane Katrina. “Within 24 hours, that blog was key to our locating ever agent and employee,” Thul said. Today, State Farm is all over Facebook, with pages for the corporation, careers, Latino customers, the Bayou Classic football event and an innovative youth-oriented forum called State Farm Nation (right), where people can “discuss life’s challenges and opportunities, connect with others facing life-shaping decisions [and] find helpful tips and information.” With 1.3 million likes, it’s doing pretty well.

The insurance company’s YouTube channel has had more than five million views, many for its TV commercials. The ads have spawned parodies, but Thul says the company is pretty sanguine about them. “If people care enough to have a bit of fun with you, that’s OK, as long as it isn’t brutal,” he said.

State Farm evaluates social media opportunities using four criteria:

Relevance to business strategy;
Role clarity: who is responsible for talking and responding;
Measurement criteria;
Activating platforms.

These four criteria provide a framework for making a rapid and relevant decision about new platforms and opportunities like Google Plus.

Words of wisdom: “People want to be heard. If they believe you’re listening to them, they’ll like you a little more.”

Theresa Kaskey (@TheresaKaskey), Director of Brand Management and Strategy at the John Hancock Financial Network, joined the company without any plans to get involved in social media. John Hancock had no social media strategy at time. Today, it’s 80% of what she does. There’s been a long education and adoption process, but company management is buying in, she said. John Hancock recently launched its first blog, Build4Success, and it’s posted nearly 40 videos on YouTube. Unlike the other two speakers on the panel, who speak primarily to consumers, John Hancock Financial Network’s audience is financial advisers.

YouTube has been one of its early successes. “We created more than 80% of our launch content in one day,” Kaskey said. “We had a meeting of our advisers and brought them into a room one by one to talk about how they delight their customers.” It’s been a low-cost, high-return recruiting success.

Words of widom: A key element of successful social media programs is “It’s not about us.”

Facebook Can Work for B2B Marketers, But You Gotta Know the Rules

Posted on August 4, 2011 by Paul

In my work with B2B organizations, the question of how to use Facebook is invariably front and center. This Is despite the fact that numerous surveys have shown that Facebook is one of the least effective social networks for B2B marketing.

In a survey of marketers conducted by BtoB magazine last year, Facebook was ranked last in usefulness among the top five social networks, trailing blogs, LinkedIn, YouTube and Twitter, in that order.

Nevertheless, some B2B companies have mined gold out of Facebook’s audience, particularly for recruiting young college graduates. Let’s look at some examples of what they do well.

Storage maker EMC makes particularly good use of Facebook’s “Welcome” page. This is an under-utilized tool that enables companies to present an HTML page as their default front door. It’s done with an application called Static FBML (Facebook Markup Language) but there is little difference between FBML and HTML.

The advantage of a Welcome page is that you can use all the tricks of an HTML page, including hotspots, embeds and even forms. Buddy Media uses it to capture leads, as does e-mail marketing provider Infusionsoft. SAP plays inline videos. Use welcome pages to present an attractive and exciting introduction to your company.

EMC has several FBML pages, including a list of its other social media accounts and a game you can play only after liking the page. EMC doesn’t use Facebook’s wall to much effect, but its purpose seems more promotional than interactive. On that front, it hits the mark.

Other B2B companies that use their welcome pages well include VMWare, Lenovo, UPS and Intel. Fedex uses a cool Flash animation to link to its sub-pages. SocialMediaB2B.com has a nice roundup of Eight B2B Facebook Landing Pages

Conversation Equation

LinkedIn is all about efficiency, but Facebook is about generating discussion, even if it’s around trivial things.

For interactivity, it’s hard to beat Intel’s page, which has racked up nearly 2.7 million likes*. Intel uses its wall to great effect. Its language is perfect for the young Facebook audience, and its questions and challenges are often offbeat and fun.

“It’s 2026…what are your devices able to do?” Intel asked last week. Nearly 1,100 people have responded. Wow. Earlier in the week it used an in-line poll app to ask “What content are you most excited to see on our Facebook page?” Interestingly, videos and product announcements topped the list.

Cisco is also terrific at generating discussion. A post on Monday offered fans the chance to win a Casio camera by telling how the Cisco Unified Computing System can benefit their business. That’s a great way to generate word-of-mouth, because posts are shared with people’s friends. Contests and giveaways work well on Facebook.

Cisco also has a clever concept called the SuperFan, which is a recognition awarded to their most active visitors. There’s no money involved: SuperFans get their name and face on the Cisco page, and that’s good enough for many of them. Here’s how it works.

Salesforce.com leverages Facebook to drive attendance to its many events. The company knows that its core audience is sales professionals, and it uses discounts, referral bonuses and contests to reach these individuals. Salesforce also post lots of photos of people, which reinforces the image that this is a company with a personal touch.

Desperately Seeking People

One of the most popular uses of Facebook for B2B companies is as a recruiting tool. Facebook has an app to support career postings on your page, but some companies take it to the next level.

UPSjobs goes beyond simply posting job opportunities. It makes the extra effort to quickly respond to inquiries from its fans, often within a few hours. As a result, UPS has turned the tables on traditional recruitment: People come to its page seeking jobs because they know they’ll get a rapid response. As a result, most of the wall comments are from people who want to work for UPS.

Microsoft celebrates its interns on its recruiting page, which is a smart move given the young demographics of the Facebook audience. Sodexo is a master of using social media for recruitment. It uses apps for Twitter, YouTube, Flickr and Foursquare to pull its content from other social networks into Facebook. This company’s entire recruiting effort – it hires about 5,000 people in the US every year – is built on social media. Check out its impressive recruitment site, which lists the many social channels it uses. Other notable careers pages on Facebook include Shell, Hilton and Abbott Laboratories.

Takeaways

Now that we’ve looked at examples of Facebook best practices, what can we learn from them? Here are some of my takeaways:

Have fun. I think of Facebook as the after-hours social network. The style that works best is relaxed, informal and a little edgy. Be personable and distinctive. No company does this better than M&M Mars, whose Skittles page is closing in on 19 million likes. Its style is unique: funny, unpredictable and tuned to generate response.

Respond. Facebook is a place for conversation, not publication. If people ask questions, you need to respond and quickly. One common mistake companies make with their Facebook pages is to launch them and leave them. Successful fan pages feature a constant stream of new posts by the company and quick response to visitor comments.

Be Colorful. Welcome pages are one of the big differences between Facebook and LinkedIn. They enable you to add a colorful and multifaceted dimension to your presence. The best welcome pages have lots of entry points and a vigorous, hip feel.

Share. One aspect of Salesforce.com’s Facebook presence that I particularly like is its willingness to share content from other sources that its audience may find useful. This not only makes the Salesforce.com fan page a resource but builds goodwill with the sources it links to.

Ask. Firehouse.com has built an impressive Facebook presence for its audience of firefighters and emergency medical technicians. “Is your department participating in National Night Out?” It asked earlier this week. It’s “Sunday Morning Roll Calls” sometimes generate hundreds of responses. Something as simple as asking people what they plan to do for the weekend can create interaction.

* I’m personally not a big fan of tracking page likes as a measure of success, particularly since Forrester has estimated that less than 15% of people who click that button ever return. What impresses me more about Cisco’s Facebook presence is the number of likes and comments that individual wall posts receive.

The Other Social Network

Posted on March 10, 2011 by Paul

Have you checked out LinkedIn lately? If you thought the world’s largest professional network was little more than a place to post your resume, you owe yourself another visit. LinkedIn is set to eclipse the 100 million member mark sometime this spring, and it is quickly becoming the social network of choice for B2B professionals.

LinkedIn gets none of the buzz of Facebook, and no one’s going to make a movie about it. Its format is austere, it has few third-party applications and it doesn’t support chat, photo libraries or videos. What it does have is lots of members who talk about serious professional issues, and some of its groups are becoming massive in scale. For business pros in industries like communications, manufacturing, retailing, financial services and even construction, LinkedIn groups are becoming vertical social networks in their own right.

This is the ideal B2B environment. There’s very little waste because members are there to seek professional opportunities, ask and answer questions and network with their peers. Spamming isn’t a problem, particularly in the moderated groups, and there’s none of the frat boy histrionics that you find on Facebook. It’s not surprising that in research conducted by B2B magazine last spring, marketers picked LinkedIn as their social network of choice by a substantial margin over Facebook.

LinkedIn has evolved far beyond its roots as a professional networking service. It hosts active groups for finance managers, telecom professionals, people in the construction industry, real estate pros, HR managers, pharmaceutical workers and film professionals. And those are just the ones with more than 40,000 members. If you’re in the hospitality industry, there are nearly 1,000 members in The Hospitality Forum. A group for medical doctors has more than 2,600 members. Stephanie Sammons posted some great tips on Social Media Examiner early this year about how to make the most of LinkedIn groups.

And they’re busy. Someone asked the Sales Best Practices group a couple of months ago “What is YOUR Best Sales Advice — 20 words or less.” It has 532 responses. A recent discussion in the Cloud Computing, VMware, Virtualization and Enterprise 2.0 Group about whether IT organizations will start discarding their assets has more than 460 responses. Some LinkedIn members answer 300 or more questions every week.

It’s not about the numbers, though. In fact, many LinkedIn groups are kept intentionally small by administrators who want to maintain member quality. Just try to get into CIO Forum. Unless you’re an IT manager, you probably can’t. Facebook is about mass, but LinkedIn is about focus, which is one reason it rocks for B2B.

Here are a few ways B2B companies can leverage LinkedIn for prospecting and promotion:

Ask and Answer. Many of the questions posed within groups and in LinkedIn’s busy Answers section concern requests for expertise. You can subscribe to questions in your domain using an RSS reader, which ensures that you will never miss one that matters to you. If the technical gurus in your organization are intimidated by the prospect of blogging, urge them to instead answer five questions per week. As they grow their profile in the community, people will start seeking them out for business. That’s the reason Vico Software expects its sales reps to become active in construction-related groups in each of their territories. They’ll find out first about new construction opportunities in the forums.

Choose Open Groups. LinkedIn recently gave group owners the option of making their content public so that all activity from that point on would be visible to search engines. This is a good way to make your groups more visible. Also, if you plan to post regularly to groups in your field or industry, consider choosing open groups so that you get the additional Google love.

Promote in Groups. Cross-post new entries from the company blog or new presentations on SlideShare to appropriate groups of which you’re a member. Summarize your content and ask a question. Use a unique URL so you can track activity. You’ll often be surprised at the volume of response.

Use Company Profiles for Prospecting. LinkedIn has a unique approach to company profiles. They’re organized by the people who work there. Salespeople who are having trouble finding the right contacts in an organization can use these profiles as a virtual back door. LinkedIn shows you who works at the company and whether you have direct or indirect ways of contacting them. You might be able to do the same thing on Facebook, but it’s a lot more difficult.

Find People. One of LinkedIn’s great strengths is the choices it gives you for selecting members. You can filter by title, geography, group membership, company size and even years of experience. Some members reveal remarkably detailed public profiles of themselves. You can use this information to prepare for a meeting, find skills or identify prospects within a region. When I need to recruit speakers for a panel in Atlanta, for example, the first place I go is my LinkedIn contact list because I can so quickly identify prospects in the area.

Use LinkedIn Signal. One of LinkedIn’s little-known gems is Signal, a real-time search engine that’s listed as “Updates” on the search menu. Use it to monitor what people are saying about any topic. You can also filter by connection, date, company and industry. A search for “Chicago Marketing Jobs” returns 20 opportunities posted in the last 72 hours. You can also get updates on people and groups that interest you.

LinkedIn has recently revealed some visually cool and potentially very useful stuff coming out of its labs. Swarm is a different take on tag clouds that builds on recent company and title searches, jobs posted, blog entries and shared articles. InMaps lets you visualize your connection network. It’s still early-stage but shows promise.

What’s your favorite LinkedIn feature? Do you have a success story to share? Post it here.

Eloqua’s Innovative Blog Tree

Posted on December 15, 2010 by Paul

Big graphics are a recent trend and a great way to attract attention. People love to share images that creatively display information in formats that make data easier to visualize. Wikibon.org did this to great effect this summer, presenting data storage growth in terms of iPads stacked on the playing field at Wembley Stadium. According to founder Dave Vellante, the graphic hit Digg.com and traffic exploded. For not a lot of money (you can outsource the design overseas), the community got attention it couldn’t buy with thousands of dollars worth of list rentals.

Eloqua has just released an infographic depicting the social media landscape as a tree with expertise clustered on topical branches. This one has a twist. According to Eloqua content director Joe Chernov:

Our vision is to make this graphic as interactive as possible. To that end, if you don’t agree with the placement of your “leaf” on the tree, just “Like” Eloqua on Facebook and tag yourself on the limb upon which you feel you belong. (We are also urging bloggers who are not present on the “tree” to tag themselves as well.) We’ll revisit the image and make appropriate changes.

I’m flattered to be included on one of the branches, but there’s no reason you can’t add yourself. Just follow Joe’s directions and join the foliage!

Five Lessons From the Web 2.0 Summit

Posted on December 1, 2010 by Paul

I had a chance to attend the recent Web 2.0 Summit in San Francisco and hear from some of the business leaders of the new Internet, including the CEOs of Google, Facebook, Yahoo! and Twitter. Here are five key insights I took away.

1. Make Marketing a Service to Customers - I didn’t write down who said this, but the comment stuck with me long after the conference was over. The traditional role of marketing has been to create an image or deliver a message. Service had little to do with it. But in the new world of tuned-out customers, the only way to get make an impression is to be helpful, entertaining or memorable. This is one reason we’re seeing a race by B2B marketers in particular to give away tactics and information that were once their source of competitive advantage. It’s the only way to get prospects to pay attention. Marketers need to ask themselves a new question: “How can I help?”

2. You Need a Mobile Strategy, and Faster Than You Probably Thought. Forrester Research now predicts that smart phones will be the dominant Internet access device in the US within three years. Mary Meeker of Morgan Stanley sees smart phone shipments surpassing PCs in 2012 (Here’s the video of her terrific presentation). In countries like China, the PC was never even much of a factor. The speed at which this shift is occurring is breathtaking. Smart phones have eclipsed all other electronic devices in their rate of adoption (see chart below).

Google’s Eric Schmidt made an interesting point: smart phones are actually more useful than PCs because they know more about the user, including location, and can deliver a more personal level of utility.

This doesn’t mean PCs are going away. Rather, the plunging price of flat-panel displays will make PCs more of a dashboard for a user’s business and entertainment needs. However, the browser will be only one of several ways people will access the Internet.

On the smart phone, that access will be by applications. Apple opened the iPhone to developers only three years ago, and already more than a half-million apps have been delivered. Other platforms are just ramping up their own app ecosystems.

There is a huge free-for-all coming in mobile apps, and nearly every business needs to be thinking about how to participate. Consider item 1 above. How can you use a mobile app to provide service to the customer? Whether it’s a coupon, shopping tip, reference source, comparison engine or something else, you’ll need to address the needs of this rapidly growing mobile audience.

3. Social Is the Killer App. While you’re pondering question 2, consider this one. Mark Zuckerberg was poised and mature in a nearly one-hour interview with John Battelle and Tim O’Reilly. The Facebook founder acknowledged that great power carries great responsibility and pledged to be more responsive to the privacy concerns of members.

One memorable point he made is that “social” is a powerful feature of software. Several Facebook applications, like photo albums, were functionally weak in their early versions but were a huge hit with members because they were easily shareable, he noted. This is an important point to remember. Loading up on features quickly reaches the point of diminishing returns. Adding the ability to share, reuse, mash up and comment creates a whole different level of value.

BTW, Zuckerberg reminded me of a young Bill Gates in looks, mannerisms and the clarity with which he sees complex issues. Like Gates, he has an uncanny ability to find a logical path to a decision or point of view. It will be interesting to watch his star rise.

4. Simulations Are A Powerful Incentive To Engage. Did you know that 320 million people have played a Zynga game and that the company now employs 1,300 people? Have you ever even heard of Zynga? If you’re a B2B marketer, you probably haven’t, but I’ll bet your kids have. Farmville is a mega-hit on Facebook and Zynga has nine other social gaming applications based on classic games like poker and Battleship. Founder Mark Pincus said the company has peak usage of more than three million concurrent users. Yow.

Why should you care? Because simulation games are not only a great way to learn but also an excellent tool for modeling business processes. Consider Cisco’s myPlanNet, a game that challenges players to build a business as the CEO of an Internet service provider. It has racked up more than 75,000 Facebook fans and 50,000 downloads for what is essentially a B2B training and marketing tool. Check out the wall posts on Facebook. It’s not the usual gaming trash talk. Players are learning how the Internet works.

IBM recently released CityOne, a game that simulates sustainable urban planning. These are tools that put real problem-solving scenarios in a gaming context and they are having enormous success. Can a sim fit in with your digital marketing plan?

5. Everything on the Web. Steven Berlin Johnson gave a brief but provocative talk about the rate of change in publishing. “For the first time in 20 years, the link and the URL are losing market share,” he said, noting that there is no standardized way to link to the page of a digital book.

Johnson proposed an idea he called “Web redundancy:” Every digital content asset should have a corresponding linkable version. “Unless [publishers] embrace Web redundancy as a strategy, all those extraordinary words will continue to live in the remote continents of the unlinkable,” he said.

I was reminded of all the press releases I continue to receive by e-mail that have no online corollaries. This is old-media thinking. Why ask the reporter to rewrite your words when it’s simpler to link to them? Why forego the search engine optimization benefits of an inbound referral, especially when tweets and links are the means by which people increasingly publish information?

This year’s Web 2.0 Summit was streamed in its entirety. The conference, which is in its seventh year, is a great way to tap into the trends that will define the next 12 months. If you can’t fork over the $4,200 (and thanks to John Battelle and my friends at Procter & Gamble, I didn’t have to), it’s worth tuning in to the YouTube archive or watching the streamed coverage from next year’s event.

I had a chance to attend the recent <a href=”http://www.web2summit.com/web2010/”>Web 2.0 Summit</a> in San Francisco and hear from of the business leaders of the new Internet, including the CEOs of Google, Facebook, Yahoo! and Twitter. Here are five key insights I took away.

1. Make Marketing a Service to Customers - I didn’t write down who said this, but the comment stuck with me long after the conference was over. The traditional role of marketing has been to create an image or deliver a message. Service had little to do with it. But in the new world of tuned-out customers, the only way to get make an impression is to be helpful, entertaining or memorable. This is one reason we’re seeing a race by B2B marketers in particular to give away tactics and information that were once their source of competitive advantage. It’s the only way to get prospects to pay attention. Marketers need to ask themselves a new question: “How can I help?”

2. You Need a Mobile Strategy, and Faster Than You Probably Thought. Forrester Research now predicts that smart phones will be the dominant Internet access device in the US within three years. Mary Meeker of Morgan Stanley sees smart phone shipments surpassing PCs in 2012 (<a href=”http://www.youtube.com/watch?v=7yL9yrttESI”>Here’s the video of her terrific presentation</a>). In countries like China, the PC was never even much of a factor. The speed at which this shift is occurring is breathtaking. Smart phones have eclipsed all other electronic devices in their rate of adoption (see chart below).
<a href=”http://gillin.com/blog/wp-content/uploads/2010/11/Meeker_Smartphones.png”><img class=”aligncenter size-full wp-image-2432″ title=”Meeker_Smartphones” src=”http://gillin.com/blog/wp-content/uploads/2010/11/Meeker_Smartphones.png” alt=”Smart Phone Growth” width=”500″ /></a>
Google’s Eric Schmidt <a href=”http://www.youtube.com/watch?v=AKOWK2dR4Dg&p=2737D508F656CCF8″>made an interesting point</a>: smart phones are actually more useful than PCs because they know more about the user, including location, and can deliver a more personal level of utility.

<a href=”http://farm5.static.flickr.com/4087/5186226125_66e1323508.jpg”><img class=”alignright” style=”margin-left: 9px; margin-right: 9px;” title=”Mark Zuckerberg at Web 2.0 Summit” src=”http://farm5.static.flickr.com/4087/5186226125_66e1323508.jpg” alt=”Mark Zuckerberg at Web 2.0 Summit” width=”299″ height=”199″ /></a>3. Social Is the Killer App. While you’re pondering question 2, consider this one. Mark Zuckerberg was poised and mature in a <a href=”http://www.youtube.com/watch?v=CRUOl03nZIc&p=2737D508F656CCF8″>nearly one-hour interview with John Battelle and Tim O’Reilly</a>. The Facebook founder acknowledged that great power carries great responsibility and pledged to be more responsive to the privacy concerns of members.

4. Simulations Are A Powerful Incentive To Engage. Did you know that 320 million people have played a <a href=”http://www.zynga.com/”>Zynga</a> game and that the company now employs 1,300 people? Have you ever even heard of Zynga? If you’re a B2B marketer, you probably haven’t, but I’ll bet your kids have. <a href=”http://www.farmville.com/”>Farmville</a> is a mega-hit on Facebook and Zynga has nine other social gaming applications based on classic games like poker and Battleship. <a href=”http://www.youtube.com/watch?v=81F1qSOq3cs&p=2737D508F656CCF8″>Founder Mark Pincus said the company has peak usage of more than three million concurrent users</a>. Yow.

Why should you care? Because simulation games are not only a great way to learn but also an excellent tool for modeling business processes. Consider <a href=”http://www.cisco.com/web/solutions/sp/myplannet/index.html”>Cisco’s myPlanNet</a>, a game that challenges players to build a business as the CEO of an Internet service provider. It has racked up <a href=”http://www.facebook.com/pages/Cisco-myPlanNet/153538644090″>more than 75,000 Facebook</a> fans and 50,000 downloads for what is essentially a B2B training and marketing tool. Check out the wall posts on Facebook. It’s not the usual gaming trash talk. Players are learning how the Internet works.

IBM recently released <a href=”http://www-01.ibm.com/software/solutions/soa/innov8/cityone/index.html”>CityOne</a>, a game that simulates sustainable urban planning. These are tools that put real problem-solving scenarios in a gaming context and they are having enormous success. Can a sim fit in with your digital marketing plan?

<a href=”http://farm5.static.flickr.com/4131/5181217508_9e1c9f2be7.jpg”><img class=”alignleft” style=”margin-left: 9px; margin-right: 9px;” title=”Steven Berlin Johnson at Web 2.0 Summit” src=”http://farm5.static.flickr.com/4131/5181217508_9e1c9f2be7.jpg” alt=”Steven Berlin Johnson at Web 2.0 Summit” width=”250″ /></a>5. Everything on the Web. <a href=”http://stevenberlinjohnson.typepad.com/about.html”>Steven Berlin Johnson</a> gave a <a href=”http://www.web2summit.com/web2010/public/schedule/detail/15397″>brief but stimulating talk</a> about the rate of change in publishing. “The the first time in 20 years, the link and the URL are losing market share,” he said, noting that there is no standardized way to link to the page of a digital book.

This year’s Web 2.0 Summit was streamed in its entirety. The conference, which is in its seventh year, is a great way to tap into the trends that will define the next 12 months. If you can’t fork over the $4,200 (and thanks to John Battelle and my friends at Procter & Gamble, I didn’t have to), it’s worth tuning in to <a href=”http://www.youtube.com/user/OreillyMedia”>the YouTube archive</a> or watching the streamed coverage from next year’s event.

Millennials: Coming Soon to a Cubicle Near You

Posted on August 26, 2010 by Paul

This weekend I’ll pack my daughter off to college, so as a little celebration, I took her and a friend to a Six Flags amusement park this week. As we drove west on the Massachusetts Turnpike, I took the opportunity to eavesdrop on the conversation in the back seat, affording me one of my too-rare glimpses into the world of Millennials.

During the 75-minute drive, I listened to the girls talk excitedly about the people they would soon meet in person for the first time. They already knew many of them, of course. Thanks to Facebook, they had been building connections with future classmates since the late spring. When today’s students arrive on campus, they already know dozens of others.

My daughter, Alice, had already “spoken” to her future roommate several times. I use the term figuratively because Alice hates to talk on the telephone, as do most of her friends. By “speak”, she means text messages, instant messaging sessions, wall posts and maybe a few webcam interactions. For today’s teens, interaction with friends is multi-channel and multimedia.

Media Everywhere

I actually shouldn’t say Alice hates talking on the phone. She just can’t fathom doing nothing but talking. Her favorite context for conversation these days is a massively multi-player game, where friends can slay dragons and battle wizards while chatting about the same things their parents talked about: music, school and romance.

Much has changed there as well. Thanks to MySpace pages and BitTorrent, Millennials have constant and immediate access to the latest music and video. They like the top artists, of course, but along with Lady Gaga (left) they favor an assortment of bands I’ve never heard of that cater to eclectic tastes. When I was their age, I learned of new artists from cassette tapes passed back and forth between friends. Today, a link in an instant message does the same thing, and Apple’s Genius and Pandora make the process programmatic.

Relationships? Well, after listening to two teenagers talk for an hour, it dawned on me that there were people they felt very strongly about whom they had actually never met. One of Alice’s best friends lives in Texas. Their relationship was already well established last year long before they met each other for the first time.

It’s not unusual to hear terms like “boyfriend” and “girlfriend” applied to virtual relationships. Nor is it surprising to hear of relationships ending in novel ways. Two years ago, I listened in as a group of Alice’s classmates spoke of a friend who had just ended a romance. Everyone in the group knew the news except the guy who had been dumped. He hadn’t read the message yet.

Sound strange? A survey of teens this year by textPlus found that 30% percent said they’ve broken up with someone or been dumped via text message. Call it passive aggressive or wimpy or whatever you want; it’s the way things are.

Coming To Your Town

And so they head off to college, and in four years they will enter a workplace that understands little about their values and systems. They will encounter managers who believe that Facebook is a productivity drain and who would rather employees spend an hour in traffic jams each day than get work done from home.

They will have their first brush with cover-your-ass thinking and will sit in meetings that waste hours of time so that everyone in the room can be “in the loop.”

They will encounter rigid, top-down hierarchies in which risk is avoided and decisions are unchallenged. They will find mid-level managers who hoard information out of fear that sharing will threaten their job security.

They will wonder how anything gets done in environments like these and they will gravitate toward those companies that discard tradition. They’re young, confident and coming to your town. Are you ready?

The Changing Rules of B2B Marketing

Posted on June 17, 2010 by Paul

Here is a draft of the first chapter of Social Marketing to the Business Customer by Paul Gillin and Eric Schwartzman. This chapter focuses on drawing the major distinctions between business-to-business (B2B) and business-to-consumer (B2C) markets and where social marketing has particular value to B2B companies. Your feedback is welcome. Please ignore the typos and grammar flaws that inevitably appear at this stage.

Friends know Scott Hanson as an affable native Texan with a penchant for computers, cars and poker. But to thousands of technology professionals around the world, Hanson is a celebrity. By day, he and three other technologists at Dell Computer manage the Dell TechCenter, an online community that helps enterprise IT professionals unravel the thorniest problems that occur when trying to integrate technology from multiple vendors.

Dell conceived of the community in 2007 as a way to enhance loyalty among its largest customers. Members share advice and ask questions of Hanson and the other engineers, who dispense it for free. The community is open and fully searchable, although only registered members can submit articles and comments. In 2008, about 100 people visited the site every day. By early 2010, that number was over 5,000.

Hansen and colleagues Jeff Sullivan, Kong Yang and Dennis Smith are celebrities of sorts in the community of enterprise customers, who frequently seek them out for meetings at trade shows and during visits to the company’s executive briefing center. Their celebrity is paid off handsomely for Dell: Hanson won’t provide specifics, but Dell has estimated that the Tech Center is indirectly responsible for many millions of dollars in sales each year.

That’s despite the fact that Dell Tech Center isn’t charged with selling anything. The site is free of advertising and the member list may never be used for promotions. “The last thing IT people want when they come to a technical resource is an ad asking them to buy a laptop,” Hanson says.

Those sales are generated by the affinity that the staff has developed with these key corporate customers. It’s a camaraderie that is nurtured by personal contact. In the early days of Twitter, the Dell TechCenter staff had set up a common Twitter account as a secondary channel of communication. But it turned out that customers wanted to speak to people, not brands. The Twitter initiative really gained traction when Hanson became @DellServerGeek and Sullivan became @SANPenguin. Suddenly the discussion became more personal and the people behind Dell TechCenter more real to their constituents.

Welcome to the new world of B2B communications. Dell TechCenter and other initiatives like it are microcosms of the changes that are sweeping across corporate America as a consequence of the rapid growth of social media tools like blogs, communities and user-generated multimedia.

Companies like Dell, which does 80% of its sales volume with corporate customers, are ideally positioned to take advantage of these new channels. In fact, B2B companies were among the earliest adopters of social media. Technology leaders like Microsoft, IBM and Cisco had hundreds or thousands of employees blogging as early as 2005 and those same companies are now expanding their footprint into social networks like Facebook, YouTube and, overwhelmingly, Twitter.

Microsoft used a video program called Channel 9 to show its human side to a market that saw it as a closed and secretive company. B2B technology companies have also been among the most creative users of social channels to reach the highly skilled people they need to hire in competitive labor markets. Recruiters have found that social channels are far more effective in identifying prospective employees than recruitment advertising sources and that prospects came into the hiring cycle with a better understanding and more enthusiasm about the company they were hoping to work for.

Yet B2B applications of social media get remarkably little attention. Perhaps that’s because their focused communities of buyers pale in size to the millions who flock to Facebook Official Pages for Coca-Cola and Nike is. Perhaps it’s because glitzy video contests and games don’t resonate with the time-challenged professional audience. It doesn’t really matter. Few B2B companies seek the consumer spotlight and their audiences, which may spend millions of dollars with them, are more interested in substance than in style. Fortunately, B2B social media is all about substance. Continue reading →

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