Cool & Useful Sites for the Holidays

Posted on December 18, 2011 by Paul

The folks at the Webby Awards sent along a super-helpful list of Web resources to use over the holidays. They range from social shopping to gift recommendations to real-time TV and music sharing. While I was familiar with several of these sites, I hadn’t heard of gems like Yap.tv, Wantful and Trippy. Definitely bookmarkable. The descriptions below were provided by the Webby Awards.

1. Skype

Video chatting is now a standard activity for most Internet users – in fact, earlier this year, Skype reported that their users log 300 million minutes of video calls daily. Skype has recently added a new multi-party platform that allows up to 10 people to video chat with each other, which is a great way to get the family together, even if you’re all far away from each other.

2. Google+ Hangouts

Yet another way to connect groups of people over video chat – but Hangouts also enable the chat participants to share and enjoy digital content like YouTube videos in real time.

3. Crackle

Sony has brought together two of its popular platforms by creating virtual movie theaters on Playstation 3 that stream content from Crackle - and it’s planning to add more digital hangouts later this year.

4. Turntable.fm

Turntable.fm brings together the social experience of the Web and music. Users can create or join listening rooms for friends – or strangers – and DJ their favorite songs for each other.

5. YapTV

A great app that brings people together around their favorite TV shows – it shows every program on television at any moment and lets you socialize with other viewers. It pulls in tweets about the show and has a built-in chat functionality so you can talk while you watch. This is especially useful for every “Elf” re-run on TBS or if you’re sucked into another “A Christmas Story” 24-hour-marathon.

6. ShopWithYourFriends.com

Through sites like this, shopping online is no longer an isolated event. Shopping online is now social. These sites allow you converse with friends (through Skype and chat), compile lookbooks for your friends and family’s seal of approval, and most importantly, buy online.

7. SocialVest

SocialVest is an online retail platform that allows customers to buy and give at the same time. With SocialVest, you can make purchases at your favorite stores - like Target, Walmart, Bloomingdales, and more – and a percentage of all your purchases will go to a charity of your choice.

8. GiftaStranger.net

Make someone’s day brighter with this site that allows you to send a lucky person a gift of your choosing. All you need to submit is your first name, general location, and a picture of the gift you’re sending, and the site will generate a random address.

9. Wantful.com

The site suggests an array of thoughtful gifts based on information you provide about the recipient – everything from age and relationship status to how often the cook and their level of neatness.

10. HipMunk.com

With a well-designed, streamlined interface and smart use of filters, Hipmunk makes it easy to find the right flight or the best hotel. The site also has an app available for your phone or tablet device.

11. Trippy.com

It makes it easy for you to get recommendations and tips for what to do (whether you are heading home for the holidays or on a dream vacation) from your friends who already know you and your interests and needs, helping you travel better.

12. Amazon.com

Whether it’s a 6-hour flight home or over-the-river-and-through-the-woods, every trip is a little shorter with good book. Now, Amazon allows you to share your favorite books with your friends. Each loan lasts 14 days and are automatically returned to your library at the end.

As Business Goes Social, CIOs Sit on Sidelines

Posted on November 28, 2011 by Paul

The disconnect between CIOs and the emerging world of social business became clear to me at a conference I attended about two years ago. I entered the room late, but figured I could quickly catch up on the proceedings by checking the Twitter stream of attendees. With an estimated 300 senior IT executives in the room, I expected there would be plenty of chatter going on.

To my surprise, not a single tweet had been logged during the past hour. A technology that was revolutionizing the way business people communicate was being completely unused by the executives who manage technology in America’s largest corporations. As I began prodding my network of CIO contacts, I learned that this was not unusual.

Most CIOs are taking an attitude of, at best, benign neglect toward social networks. A large percentage of them are still actively blocking employee access to sites like Facebook and YouTube. The most recent research by Robert Half Technology found that 31% of U.S. companies block social networks completely and 51% limit access to business purposes only. While those numbers have improved from two years ago, they still indicate an entrenched suspicion that social networks are at best time-wasting extravagances and at worst latent security threats.

Same Old Song and Dance

These fears are legitimate, but we’ve heard them before. The argument that employees will waste time on new technology goes back to the introduction of the personal computer. CIOs also closed ranks against Internet-based e-mail and the Web itself in the early days of those technologies, citing fears that employees would use their new toy computers for games or would subvert the central control of the IT organization.

In fact, that’s exactly what they did. And given access to social networks at work, people will use them to play and waste time. CIOs should not only accept this fact but embrace it.

Anyone who has children knows that playing is one of the most effective learning techniques humans have. Experimentation unearths ideas that have practical applications. On the early Web, people “surfed.” In the process, they learned the skills that have redefined office productivity. Today, the people who can quickly find, organize and interpret information are among the most valuable in the workforce. Playing pays off.

In its formative years, social media has been largely relegated to marketing departments under the assumption that it’s just another form of communications. BtoB magazine asked 375 marketers last year who was primarily responsible for social media within their companies. Only one person identified the IT department. My anecdotal observations pretty much echo that. CIOs just don’t see social as part of their charter.

What a shame, because social technologies has about as much to do with marketing as enterprise resource planning (ERP) does with accounting. This is about the finding new ways of doing business with a customer base that’s empowered with information. It’s the very center of where business is going.

Demand-Driven Economics

In their book, How Companies Win: Profiting from Demand-Driven Business Models, Rick Kash and David Calhoun argue that developed economies are in the process of transitioning from supply-constrained to demand-driven. We are awash in goods and services today, they point out, and prices are flat to declining in many markets. That means that there’s little incremental benefit to be had from making supply chains more efficient. In the future, value will come from generating demand that never existed, as the iPhone has done.

A decade ago, CIOs played a key role in implementing ERP and optimizing supply chains in many companies around the globe. While some of that was a byproduct of the Y2K problem, their willingness to lead such mission-critical projects was a feather in their cap.

Now the rules have changed and the new challenge is to drive demand. The information-empowered customer will impact every business at every level. We are in the first stages of the shift in market conditions from supplier push to customer pull. Understanding the dynamics of these new interactions and organizing businesses around them will be the major business challenge of the next five years.

Why would CIOs not want to be at the center of all that?

John Dodge agrees with me. Writing on the Enterprise CIO Forum, he suggests that one reason CIOs aren’t more active in social business is that they see themselves as analytical types, making their skills ill-suited to social interactions. That may be true, but I’d argue that analytical skills are sorely needed to help companies make sense of the cacophony of conversations going on around them and their markets. Social business isn’t just about engagement, but also about listening and understanding. CIOs have a lot to contribute by applying algorithmic discipline to that process.

Surveys Show ‘Social Business’ Concept Gaining Traction

Posted on November 16, 2011 by Paul

A quartet of new research reports suggested that small and midsize businesses (SMB) are rapidly waking up to the potential of social media and cloud-based infrastructure to create new operational efficiencies and better engage customers – and that they may also be leading the US out of recession.

A recent survey of more than 2,000 small businesses by e-mail marketing provider Constant Contact found that 81% say they now use social media for marketing, up from 73% in the spring. Furthermore, a significantly larger percentage agreed with the statement that social media marketing is “easy to use,” “doesn’t take up too much time,” and “works with my customers” than did so in the spring. Facebook was identified as the most effective tool by a comfortable margin, but Twitter, LinkedIn and video sharing are all creeping up.

It should be noted that the majority of respondents to the Constant Contact survey were customers, which means they are already marketing online. Other research studies over more general populations have indicated that small businesses still lag far behind large enterprises in their adoption of social media tools.

It’s also worth noting that 81 percent of respondents use face-to-face interactions to connect with customers or prospects, underlining the fact that Facebook has its limits.

A new global study of chief marketing officers (CMOs) at midsize businesses released today by IBM shows that marketers are concerned about improving customer engagement but are unclear about how to proceed. More than seven in 10 respondents said they aren’t sure how to improve customer loyalty at a time when peer reviews and open sharing are making customers more informed, more critical and less loyal. Only 40% are taking the time to understand and evaluate the impact of consumer-generated reviews, blogs and peer rankings on their brands.

The CMO research further reveals that 62% say they are unprepared to take advantage of the opportunities presented by mobile commerce and 72% say they don’t know how to cope with declining levels of brand loyalty that could result from easier comparison shopping. So while midsize firms may be using social marketing, they aren’t necessarily confident in the results.

There is no question that the concept of “social business,” which is being promoted by IBM and others, is gaining traction. Social business involves using tools both inside and outside the organization to unearth knowledge, improve business responsiveness and create new paths for engagement with customers. The concept has gained momentum in the form of “intranet 2.0″ platforms, which augment traditional intranets with Facebook-like features.

An IBM study of more than 4,000 Information Technology (IT) professionals from 93 countries and 25 industries found that adoption of the social business concept is erratic and geographically influenced. Indian companies were three times as likely to have embraced social business concepts as Russian companies. The US and China showed strong adoption rates, but both lag India by a significant margin. The research, which was conducted by IBM’s DeveloperWorks organization, also showed rapidly growing acceptance of cloud computing as a platform for application development and a swing toward developer preference for the Android mobile operating system.

If, as many people believe, small and midsize businesses are leading indicators of economic growth, then there’s also good news in survey of 1,295 small and medium business IT professionals conducted by Spiceworks. The study found that IT budgets grew 9% in the second half of 2011 compared to the first half. That’s the largest increase in two years. Nearly one third of SMBs said they are planning to hire new staff, which is also an improvement over the stagnant staffing rates of the past two years.

Disclosure: IBM’s Midsize Business organization is a client of Paul Gillin Communications.

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.

The Trouble with Klout

Posted on September 6, 2011 by Paul

Estimating influence is a delicate balance of art and science. People are drawn to quantitative methods because scores are easy to understand. The downside of reducing influence to a number, though, is oversimplification.

Lately, I’ve been looking at Klout, the popular new tool that bills itself as “The Standard” for influence measurement. The more I look at it, the less I like it. Klout’s weaknesses have not stopped it from amassing an impressive list of more than 3,000 business customers and from being incorporated into popular applications like HootSuite as a standard metric. It is “the emerging standard” for measuring influence online, said Klout Marketing Manager Megan Berry in a podcast interview with Eric Schwartzman last month. I just hope those clients aren’t taking this metric too seriously.

Beyond Followers

Klout attempts to determine influence metrics by looking at a person’s online activities and the actions of others that result from them. The thinking is that influence isn’t a matter of how much you say as much as the impact your words have on others.

Many people have a Klout index and don’t know it. The service crawls Twitter and ranks members automatically. If you want to grow your score, you can log in to the site and give it a bunch of information about your online activities. I spent 15 minutes on Klout registering my social networks and grew my score 10 points on the spot. This is a major flaw in Klout, but more on that later.

Klout uses a proprietary algorithm to estimate influence based upon comments, retweets, @replies and mentions, among other things. The company isn’t very transparent about how it calculates the score, and with good reason. The algorithm is a competitive asset and disclosure would inevitably invite people to manipulate the system.

The downside of opacity is confusion. By revealing so little about how its ratings are calculated, Klout essentially asks customers to put their faith in the service to do the right thing. This is dangerous, given Klout’s flaws. Nevertheless, the score is a public record that anyone can see, and its influence is growing to the point that Klout scores are now reportedly showing up on resumes.

The Shirky Effect

The problem is that some of the ratings are nonsense. For example, my Klout score (66) is modestly higher than Clay Shirky‘s (60) and significantly higher than Marc Andreessen‘s (42). This is ludicrous. Shirky (right) is the author of two influential books about online sociology and has been a thought leader on the Internet since the mid-90s. Andreessen (below left) invented the browser, cofounded Netscape and is one of the fathers of the modern Internet. Both are sought-after speakers and the subject of extensive Wikipedia articles. Yet Klout says I have more influence.

The problem is that neither of these brilliant innovators plays by Klout’s rules. They aren’t active on Twitter and they don’t have Klout accounts. The fact that a single post on Shirky’s blog can draw more than 1,200 comments or that Andreessen’s occasional writings appear in The Wall Street Journal is of no consequence. Klout doesn’t monitor either of those outlets.

Klout’s bigger flaw is that its scoring system is tied to membership. The more you tell Klout about you, the higher your score is likely to be. This linkage fundamentally undermines the quality of the service. In effect, Klout pays you to endorse its service by rewarding you with a higher rank. If Google did that, Congress would be holding hearings.

A Million and One Improvements

Klout admits that its methodology isn’t perfect. In the interview with Schwartzman, who is the co-author of my B2B social media marketing book, Megan Berry said the company has “a million and one” improvements it wants to make. Schwartzman pressed Berry hard on shortcomings in the Klout methodology, and her responses were a weak defense. In essence, Klout treats every social network the same and all interactions equally, she said. A retweet, which is a one-button operation, is just as good as a thoughtful commentary on a blog. Except that Klout doesn’t currently monitor blogs, other than those on Google’s Blogger service. That must be one of the million-and-one improvements in the pipeline.

A comparison of Berry’s and Schartzman’s Klout profiles showcases the service’s flaws.Berry’s Klout score as of this writing is 70, while Schwartzman’s is 60. Barry does have a couple of thousand more Twitter followers than Schwartzman, but she said Klout ignores follower metrics as meaningless. Berry is very active online, but not nearly as active as Schwartzman. Her blog has been updated eight times this year while Schwartzman has posted 36 episodes of his popular On the Record…Online podcast and more than 30 entries on his Spinfluencer blog. Berry contributes occasionally to Huffington Post and Mashable, but Schwartzman is also active outside his own channels, contributing to Social Media Today and For Immediate Release. Schwartzman has 44 recommendations on LinkedIn, while Berry has three.

As far as I can tell, there are two principal reasons why Berry outscores Schwartzman on Klout. One is that she knows the system. She has at least a vestigial account on every social network that Klout cares about, whereas Schwartzman limits his activities to fewer outlets. Berry also tweets regularly on behalf of her employer, giving her Twitter account a Klout halo effect that attracts retweets and @replies.

My intention isn’t to pick on Megan Berry. She’s obviously a bright young woman who’s very savvy about social media. However, there’s nothing I can find that qualifies her as significantly more influential than the veteran Schwartzman, not to mention Marc Andreessen.

In her interview with Schwartzman, Berry described Klout as “[Google] PageRank for people.” In my opinion, it’s got a long way to go. Klout has some utility as a way to compare the online presence of active social media users, but measuring influence is much more complicated than counting retweets and Foursquare tips. Klout is betting that it can use its metrics to entice (coerce?) people to join its social network, which it can then monetize through advertising. The link between membership and Klout score is a disturbing weakness. Proceed with caution.

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.”

What a Hotel Manager Taught Me About the Future of Business

Posted on August 19, 2011 by Paul

Scott Wright is the general manager of the Wyndham Wingate Hotel in Erlanger, KY, and in a 15-minute ride to the airport yesterday morning he taught me something about the future of business.

The fact that the manager of the hotel was driving me to the airport was unusual in the first place, but Wright makes it part of his routine. “I try to get out of the office at least a couple of times a week and connect with the customers,” he said. “I don’t ever want to be stuck in a back room shuffling papers.”

Wright’s attitude is one of the reasons the Wyndham Wingate has a 91% positive rating on TripAdvisor. He ticks of the two factors that most influence customer loyalty: “Cleanliness is number one by far. Customer service is number two. But you’d be surprised how forgiving people can be about customer service if the room is clean,” he says.

Scott Wright has no choice but to know what makes customers happy. Ratings on TripAdvisor and dozens of other evaluation sites have transformed the hospitality industry. The impact of open, online customer feedback on his business “is huge,” Wright says over his shoulder. The hotel’s policy is to contact online critics directly within 72 hours to address their complaints.

Many times those problems are more a matter of misunderstanding than mistake. One traveler recently posted a scathing review of the Wyndham because charges had appeared on her credit card despite the fact that she paid cash for her stay. Wright patiently explained that the practice was standard operating procedure for cash customers in the hospitality industry and that the charges were routinely reversed within a few hours. Another complained that the hotel wouldn’t let him cancel a reservation. Wright had to explain that the discount deal the customer had booked was clearly marked as nonrefundable.

These outreach sessions don’t fix the damage done by a negative rating. Few consumer feedback sites permit bad reviews to be reversed by anyone, so hotel managers are limited to posting responses, which Wright dutifully does. More importantly, though, the constant feedback cycle is driving he and others like him to become laser-focused on the customer experience. The terms of competition in that already brutally competitive industry have come down to one factor: quality.

Look at the ratings of these two Cincinnati hotels on TripAdvisor. Scan the excerpted customer comments. If you’re the owner of the Howard Johnson Inn, how do you solve this problem? Certainly not with advertising. No, there are three options the owner of the Howard Johnson Inn has:

Cut prices and compete for low-margin budget travelers;
Invest what it takes to fix the problem;
Hang out a sign that says, “Under new management.”

None is very appealing, but a customer-driven market doesn’t permit the luxury of spending your way out of trouble.

Conversely, the owner of the Best Western Premier Marlemont can cut the advertising and direct mail budget because customers are doing a better job of promoting the hotel than any marketing could do. The owner can also raise prices because business travelers are less sensitive to cost than they are to a pleasant place to stay.

Fifteen years ago, America’s most-admired brands were those with the biggest marketing budgets: GE, Coca-Cola, General Motors, Microsoft. Today, the brands everyone wants to emulate are Apple, BMW, Southwest Airlines and Harley-Davidson. There are two things these brands all have in common: Neither has dominant market share and all are fanatically devoted to delivering delightful customer experiences. In the future, every successful brand will have to operate the same way.

For Scott Wright and others like him, the rules have changed, but his industry isn’t alone. It’s just a leading indicator of forces that will sweep through nearly every market as customers learn to organize and apply the new powers of influence. These forces will affect B2B and B2C businesses, nonprofits and government agencies. Businesses will have to serve customers better because there will be no choice. All our managers will drive the shuttle to the airport.

I’ve been telling audiences about how customer ratings are reshaping the hospitality industry for more than a year, but no one made that impact more real to me than Scott Wright. As I stepped out of the shuttle, I reached into my wallet and handed him a few dollars.

“Oh, not necessary,” he said, waving his hand.

“Take it,” I said. “It’s a consulting fee.”

Awareness E-Book Raises the Bar on Social Measurement

Posted on July 29, 2011 by Paul

The question of how to measure social media performance, particularly in a marketing context, continues to be one of the industry’s hottest topics. Although many people are aware that traditional metrics like page views, visitors, followers and likes are poor indicators of success, the vast majority of marketers I speak to still focus on these overly simplistic criteria. These numbers may be of little value, but at least they’re understandable.

The more sophisticated practitioners are turning toward metrics that indicate engagement. Examples include comments, retweets, shares and subscriptions. Now Awareness Networks has contributed some important new thinking to this topic with a free e-book entitled “The Social Marketing Funnel: Driving Business Value with Social Marketing.” (Full disclosure: I am quoted in the book but did not contribute meaningfully to the methodology and received no compensation.)

Awareness outlines five priorities that companies should define in becoming a best-in-class social marketer:

Measure and Grow Social Reach
Monitor Social Conversations
Manage Social Content
Practice SEO
Measure and Analyze Social Activity

Not surprisingly, the company has tools that help in many of these areas, but that’s one reason its research is so useful: The recommendations are based upon the experiences of more than 100 customers.

The most successful of those are reporting direct correlations between social media marketing and sales, and they have certain practices in common. Most use at least three major social media channels, compared to less than two for the average company. They also have multiple presences within each channel, such as product-specific pages on Facebook. And they measure like crazy.

Nearly 80% of the companies Awareness surveyed use social media channels to identify and respond to customer service issues and two-thirds use them for prospecting. Remarkably, only 18% said they have “formal tracking process in place to manage processes and better understand success criteria.” In other words, a lot of social media is still being done with seat-of-the-pants justification.

That’s going to change as more sophisticated metrics emerge, however, and here’s where this report has particular value. It describes four measures of content effectiveness that take into account multi-channel activity: Content-to-Contact Ratio, Comments-to-Content Ratio, Comments-to-Profile Ratio and Content-to-Share Ratio. I won’t describe these metrics in detail – you can find that in the e-book – but each speaks directly to the value of engagement.

As businesses spread their wings across increasing numbers of social communities, they need to get a better handle on what’s working and what isn’t. The cost of maintaining an effective presence is only going to go up as the market gets crowded, and it won’t be acceptable for only one in five companies to have meaningful measurements in place.

As I have noted elsewhere, our current obsession with counting fans and followers is an artifact of old media thinking. Online marketing provides much richer options for understanding how people interact with our content. Awareness’ e-book is an important attempt to try to nudge marketers toward realizing the potential of the information they gather.

Recent Writings: Negativity, Social Gaffes and Farewell to Case Studies

Posted on July 15, 2011 by Paul

I haven’t had a chance to blog here lately because most of my writing is been on assignment for other publishers. Here’s a sampling of what I’ve been talking about.

Love Your Critics

The CMO Site likes to stir things up, so my posts there tend to be on the controversial side. In Why Brands Should Love Public Complaints, I make the case that your critics can be your strongest allies. Why? Because a little negativity reinforces the validity of the positive comments you publish.

The whole concept of enabling negativity to appear on your own website rubs a lot of marketers the wrong way, but I’d argue that it’s great for building integrity. The article notes that Epson reported that revenue per visitor nearly doubled after it started including customer reviews on its site. The fact that one out of 10 customers may displeased with product can be looked at another way: 90% are happy.

The right approach is not to deny that you have unhappy customers; everyone’s got a few. They’re going to vent their frustrations anyway, so encourage them to do it in a place where you can respond and juxtapose their opinions with the vast majority who are satisfied.

Good Riddance to the Corporate Case Study

In this post I rant just a bit about corporate case studies, those pervasive and largely useless vessels of happy talk that no one really believes. Corporate case studies used to have a purpose in the days when customers couldn’t find each other, but today all it takes is a few searches or LinkedIn queries to identify experienced buyers.

It’s not the concept of the case study I don’t like; it’s the format. Once the legal department gets involved in approvals, most meaningful content gets sucked out of the article. Case studies also don’t answer the questions prospective buyers really have. That’s why prospects have always viewed case studies with suspicion. Today, they mainly ignore them.

So rather than investing time and dollars in paying writers for stories that no one believes, why not focus on greasing the skids between your happy customers and your prospects? Make it easy for the two parties to connect and then get out of the way.

The Futility Of Whisper Campaigns

PR practitioners who undertake influencer relations programs often discover an odd disconnect between them and traditional media relations: Bloggers don’t operate by the same rules as reporters.

The recent example of this disparity ended up embarrassing a prominent PR firm, and I analyzed the story in BtoB magazine.

In case you missed it, early last month a pair of new employees at Burson Marsteller, both of them veteran journalists, contacted a security blogger and offered to help him write and place an op-ed piece that exposed “sweeping violations of user privacy” by Google.

It turns out the blogger was more interested in the motivations of the PR firm than in Google’s allegedly intrusive behavior. After he posted the e-mail exchange online, some USA Today reporters dug up the fact that Facebook was behind the whisper campaign.

Burson, which claims to be social media-savvy, did exactly the opposite of what it would counsel its crisis communications clients to do: It clammed up. The incident was a huge black eye for the agency and a lesson in how not to pitch a blogger.

Do You Need A Social Media Specialist? Yup.

My latest column in B2B was actually sparked by a conversation I overheard on a plane. A guy in the seat behind me was railing to his companion about the idiocy of hiring social media specialists. In his opinion, everyone in a company should learn to use the tools. Expertise shouldn’t be concentrated in one person or department.

I agree with his second point but I couldn’t endorse his overall premise. Nearly every company I’ve encountered that is succeeding in social media has a center of excellence. They are delegating social interactions to one person, but they’re shortcutting the learning process by hiring people who can train others. In this column, I explain why a social media expert can save you time, money and embarrassment (see Burson above).

What’s your approach? Read more and comment on BtoBOnline.

Two B2B Social Marketing Initiatives Worth Checking

Posted on June 29, 2011 by Paul

A couple of notable B2B efforts have caught my eye recently that I wanted to share. One is Element14, a social community for engineers sponsored by an electronics distributor of the same name. I wrote in B-to-B magazine early this year about a Make magazine-like video series they started last fall that appeals to engineers’ passion for tinkering as well as for fun. Other new stuff that they’re doing (and this comes directly from the press release):

The industry’s first online design hub – the element14 knode – designed to help engineers accelerate design and development and bring products to market faster than ever before.

RoadTests – Allowing members to actually try out the latest new products for free and share their reviews with other engineers

Focused sub-groups – scores of technical forums ranging from LEDs, robotics, FPGAs, engineering student design teams, etc.

Over the last quarter alone, more than 500,000 people visited the online community, spending over 65,000 hours researching, collaborating and communicating with fellow engineers.

Element14 is trying to position itself as “Facebook for engineers,” and they’re doing a heckuva job. This is a commerce play, incidentally. The whole community is linked to an underlying catalog site. One of the innovative things about the Ben Heck Show is that each of his video hacks is accompanied by a parts list that you can order right on site.

When I first learned about Element14 a couple of years ago, it was a rather unremarkable document exchange engine. Over the last year, it’s evolved into a multimedia experience that bristles with value and fun. No doubt this wasn’t cheap, but it’s impressive to see a B2B community demonstrate this kind of ingenuity.

Update 12/6/11: Premier Farnell just announced that “The Ben Heck Show” has attracted more than three million views since its launch.

Also, check out Social Media Quickstarter, a tutorial site aimed at small businesses and launched just this week by Constant Contact. The site is organized in “chapters” by platform – Facebook, LinkedIn, Ratings and Reviews, QR codes and the like – and presents really useful tutorials in a step-by-step format, many including video. There are more than 70 chapters, all of which can be downloaded and printed.

There are several aspects of this ever that I like:

Minimal branding – Constant Contact intentionally keeps the focus on the content rather than its brand. In fact, the company name is in almost comically small type at the top of the home page. One smart move was to prominently note that the resource is “Powered by KnowHow,” which is a training service the company offers. It’s a low-key approach to branding that uses the quality of the content to validate the service.

Value – Constant Contact says it surveyed small businesses to discover that many didn’t know how to get started in social media, but you didn’t need research to figure that out. There is a crying need for this kind of basic education. The value of Social Media Quickstarter isn’t as much in the content itself as in the fact that it’s all in one place. You can Google around and find much of this advice elsewhere but the company has conveniently aggregated it in one spot.

Simplicity without Condescension – Quickstarter manages to walk that fine line between teaching basic skills and talking down to its audience. Quickstarter doesn’t pretend to be a resource for the digerati. It answers the basic questions that millions of small business owners are asking, and it does so in plain language with lots of pictures and video. It respects its audience.

Two impressive B2B social media efforts by two companies addressing very different audiences.

Linked In Overview, from Social Media Quickstarter from Social Media Quickstarter on Vimeo.

paulgillin.com

Social Media and the Open Enterprise

Category Archives: Social Media