Why People Love Social Networks

Posted on April 28, 2009 by Paul

From my weekly newsletter. To subscribe, just fill out the short form to the right.

Social networks are so popular these days that many marketers and small business owners may feel compelled to use them regardless of whether they make sense or not for the business. I’ve recently been helping some clients to make these decisions, which can be expensive if poorly considered, and I find that many people still have some very basic questions. So I’ll devote a few posts to practical advice that may help clear up the confusion.

Why all the hype?

Online communities have been around since the earliest days of the Internet and in commercial services like CompuServe and The Well. So what’s different today? In 1998, a site called Classmates.com, which is still thriving, introduced the concept of “profiles” and “friends.” While this nation seems second nature today, it was revolutionary at the time.

The profile is a person’s (or business’) home base. It not only contains personal information about a wide range of topics, but it also keeps track of a member’s activity within the community. This is important, because as members accumulate friends, joins groups and help other members, all of those activities and relationships are captured in their profiles. The more they contribute, the more valuable they are to the community and the more their personal status grows.

Friending is essentially the process of sharing personal information with others. When two people become friends, they exchange glimpses into each other’s lives, much as we create and nurture real-life friendships. Friends relationships are very strong, whether real or electronic. The chance to build and solidify relationships with our friends is one of the greatest appeals of social networks.

There’s also utility in these online relationships. Social networks are great contact managers. Instead of maintaining our own address books, it’s easy to let the network keep track of where people are, what companies they work for, who they’re dating, etc. They also make it easy for us to capture fleeting relationships. Once we friend someone we’ve met at a conference or football game, we never need to lose touch with that person again.

Groups are a natural outgrowth of profiles and friends. Social networks keep track of information that can be used to find other people with whom we share common interests. While most networks don’t allow members to mass-mail other people based upon their interests, they do enable sponsors to buy targeted advertising and people to form relationships within the groups they join. The advantage of starting a group on Facebook, for example, is that Facebook already has information about a vast community of people. Group organizers can take advantage of this information to quickly grow their membership without starting from the ground up.

Profiles, groups and friends — these are the essential elements of social networks. Next we’ll look at how they’re applied on three of the most popular networks: Facebook, LinkedIn and Twitter.

Still Don't Get Twitter? Maybe This Will Help

Posted on April 7, 2009 by Paul

It’s okay to admit it. You’re among friends. You’ve been on Twitter for a couple of months now and you still can’t figure out what the heck all the fuss is about. It took me a while to “get” Twitter, too, but now I find it an indispensable part of my toolkit for gathering information and promoting my work. Here are some things to think about.

The 140-character limit is liberating. Writing blog entries is a time-consuming task. I’m not the type who fires off one-sentence posts, so I like to put some thought into what I say on a blog. In contrast, Twitter’s 140-character limit lends itself well to quick thoughts that I believe are worth sharing with others but that don’t justify a full-blown blog entry. Very little of what I tweet makes it into my blog and vice versa.

The 140-character limit can also be frustrating. If you have ever engaged in an e-mail exchange using Twitter direct messaging, you know it can be disjointed. At some point, you need to jump to e-mail. That said, 140 characters does force you to focus your thoughts and to write succinctly,

Public conversations. Twitter gives everyone the option of making discussions public. You can’t do this with e-mail, and it’s difficult to accomplish on a blog. If you believe that your exchange with others would benefit from public input, or if you just want to expose the discussion to others, you have that option. You can always take things private via direct messaging if you wish.

Immediacy. When you just can’t wait for information, Twitter can’t be beat for getting your question to a large group. It’s impractical to do this with e-mail. People’s inboxes are already cluttered with spam and you have no way of getting your message to people you don’t know. Also, through “retweeting,” a message can reach a large number of people who aren’t on your follower list. This brings new perspectives to the conversation and gives you the opportunity to discover people you wouldn’t have otherwise met.

Retweeting. While we’re on the subject, don’t underestimate the power of the retweet. When someone picks up your message and forwards it to their followers, it magnifies your reach and often recruits new followers in the process. Sending provocative messages that others retweet is a great way to build your following and your contact list for information-gathering and promotion.

Discovery. Twitter is the most efficient mechanism I’ve ever seen for discovering interesting information. I could literally do nothing all day but monitor the “All Friends” feed in TweetDeck and read interesting articles that others recommend. If it weren’t for Twitter, for example, I wouldn’t have known that Travelocity has hotels in Las Vegas for $22 a night. This discovery process is not unlike scanning the pages of a newspaper, but it’s much faster and more encompassing. Also, you know that comments and recommendations from certain people will be of particular interest to you, so you have the option of drilling down on individual profiles to see what they’ve been saying recently. Chaotic? Sure, but that’s part of the discovery process.

Searchable. If you want to find out what people are saying about you right now, services like Twitscoop and Monitter enable you to instantly track mentions of your company, product, industry or whatever and to save them as RSS feeds for later browsing. You can do the same with Twitter Search. Google Alerts currently doesn’t index Twitter feeds, but Filtrbox does.

Twitter is a deceptively simple idea with remarkably powerful applications. People are only beginning to tap into its potential, and I hope visitors to this blog will contribute their own thoughts on what they find most compelling.

Mars Deserves Praise for Innovative Skittles Initiative

Posted on March 5, 2009 by Paul

Early this week, candy maker Skittles rocked the media by giving over its entire home page to a list of Twitter postings labeled with the #skittles hash tag. The experiment initially provoked excitement, then doubt and finally alarm as pranksters used the opportunity to post all manner of negative and even obscene comments that had very little to do with the fruit candy.

As the volume of trash talk swelled, Mars Snackfood US pulled down the Twitter search page and replaced it with a Facebook profile. Today the site features a Wikipedia entry. Skittles’ branding consists of an overlay window that links to various references to the product in social media outposts. Basically, Mars reconfigured the brand’s website as a package of consumer-generated content.

A lot of people are trashing Mars for this bold experiment. “Disastrous” says Apryl Duncan on About.com. “Gimmicky” says VentureBeat. “Humiliating disaster” says SmartCompany. While some people are praising Mars for originality, the early consensus is that this campaign is not a good idea for the Skittles brand.

Bold Move

I beg to differ. While Mars certainly could have better anticipated the frat-boy efforts to undermine the program, the Skittles experiment is a bold statement about where the company is taking its marketing tactics. Full disclosure: I’ve had the opportunity to work with some of the Mars marketers on a paid basis over the past year. Unlike many other corporations I’ve encountered, these people get it. Sure, they’re still feeling their way through the process of working with uncensored customer conversations, but they’re on the right track and they’re taking the right risks.

In January, Mars held a day-long offsite meeting with more than 100 of its global marketers to talk about word-of-mouth marketing. I was there, along with many of the company’s agency and branding partners. I was impressed with the commitment the company is making to understanding and working with social media. While many of their peers still regard online forums with a mixture of suspicion and disgust, the Mars marketers see it as an opportunity. They’re also fully aware of the risks. One breakout session at the meeting was devoted almost entirely to an analysis of Johnson & Johnson’s Motrin Moms fiasco.

There’s no question Mars could have thought through this experiment somewhat better. Twitter was a bad place to start and under the circumstances, some filtering would have been appropriate. However, the whole concept of giving over the Skittles Web presence to customer conversations is daring and innovative. It’s unfortunate that some of the same people who trash brands for not being more hip to social media are now trashing Mars for almost being too hip.

Proof in the Pudding

Also, look at the coverage this story has generated: The Wall Street Journal, LA Times, Fast Company, CNET and the list goes on and on. If you believe Oscar Wilde’s theory that “The only thing worse than being talked about is not being talked about,” then this campaign is a hit. If Skittles sales don’t jump 15% in the next month, I’ll eat a bag of the candy, including the bag.

Experimentation is central to new media marketing and negative reactions to bold ideas are nothing to be feared. Nearly three years ago, General Motors invited visitors to stitch together their own video ads for the Chevrolet Tahoe SUV. About 15% of the videos people created were negative, prompting critics to call the campaign a disaster. But inside General Motors the project was considered an unqualified success. The Tahoe hit 30% market share shortly after the Web promotion began, outpacing its closest competitor two to one.

The Skittles campaign is outside-the-box thinking. Despite its shortcomings, it deserves praise.

Egg on Its Facebook

Posted on February 18, 2009 by Paul

Give Facebook credit for quickly reversing itself on the insane changes it recently made to its terms of service policy. Hopefully the company has finally learned its lesson about not arbitrarily making policy changes in a vacuum.

I’ll admit I wasn’t following the story closely until I got a call from journalist David Needle yesterday asking for comment. I wasn’t online at the time, and when David described the new terms of service I said they were crazy. No online community would impose a policy that effectively gave it the right to steal intellectual property from its members.

So I was stunned when I returned to my office and actually looked at the terms. I’m not a lawyer, but it was pretty easy to figure out what Facebook was doing. In essence, anything a member posted on Facebook became the property of Facebook, which could use that content in any way it wanted, including changing it, combining with other content and even selling it.

This had personal relevance to me, because many authors and artists now develop their work in public forums, post it online and ask for input from their audience. Under the revised Facebook policy, someone doing this would give up ownership of that intellectual property the minute it appeared on the site.

I don’t think for a moment that Facebook intended to abuse the terms of service or to steal anything from anyone. This was a boneheaded decision by someone who thought that since the terms were being changed anyway, Facebook might as well ask for the sun, moon and stars.

Mark Zuckerberg’s attempt to explain the policy made no sense. While his blog entry did a good job of clarifying Facebook’s intent, it didn’t explain why such heavy-handed language was needed, nor did it express any second thoughts about the changes.

This is the second time Facebook has had to withdraw a feature change amid heavy criticism. Last year it was the ill-considered Beacon social shopping service. The company has created a bill of rights and responsibilities group and asked people to contribute their thoughts.. Let’s hope it listens this time.

B-to-B Social Media in Action

Posted on February 2, 2009 by Paul

From my weekly newsletter. To subscribe, just fill out the short form to the right.

Let’s look at three examples of companies that are using social media for business-to-business(b-to-b) applications. All us different tools and all are effective in different ways.

Wikibon

Wikibon.org is the kind of Web 2.0 project that could disrupt a big industry. It was started two years ago by David Vellante, a veteran IT analyst who used to run the largest division of International Data Corp. Wikibon challenges an IT research model that has traditionally had customers paying tens or hundreds of thousands of dollars a year for access to elite analysts. Traditional IT research is top-down. Wikibon is bottoms-up.

Think of it as open source advice. The more than 3,000 people who have joined Wikibon’s enterprise storage community share their expertise with each other and learn from a core group of about 40 independent consultants and experts who use the wiki to showcase their services. It’s a classic Web 2.0 give-to-get formula. The experts share their knowledge in hopes of getting business from the corporate IT specialists who visit the site. Before Wikibon, these experts had severely limited promotional channels. With Wikibon, they have an established community of prequalified business prospects.

Members have contributed 20,000 articles and edits to the archive, Vellante told me. What’s more, the time people spend browsing this rich information resource is “Facebook-like. We’re getting 20 to 30 page views per visitor.” Wikibon may not put Gartner out of business, but it is a challenging the assumption that good information has to be expensive and it’s giving some small b-to-b firms a way to reach an ideal prospect base.

GoGreenSolar

If you’ve ever done business on eBay, you know that its peer rating system is one of its great innovations. RatePoint is one of an emerging class of companies that is bringing this concept to the open Web, and GoGreenSolar is using customer reviews to its advantage. If you are interested in Solar Energy, then I would recommend going to SandbarSolar.com to see what they can do for you.

GoGreenSolar is a small Los Angeles-based firm that sells green energy products. About 60% of its business is b-to-b. A few months ago, the company contracted with RatePoint to install a customer ratings page on its website at a cost of $18/month. RatePoint acts as a kind of validation service, verifying that customer reviews haven’t been tampered with and providing a means to arbitrate disputes. GoGreenSolar has about 20 reviews on this site, all but one of them five stars. The ratings pages quickly became one of the site’s most popular features, says founder Deep Patel. In an increasingly competitive industry where customer service is a differentiator, the ratings are helping GoGreenSolar stand out.

Patel says one of the hidden values of the ratings program is the opportunity for follow-up engagement with customers. By encouraging buyers to post their comments, “We have an opportunity to have a dialog after the transaction. That’s a sales opportunity,” he says. “People who leave reviews often come back and buy more.”

Though GoGreenSolar hasn’t had many negative reviews to worry about, Patel even sees opportunity in the occasional dissatisfied customer. The rating system is an opportunity to fix the problem and turn the customer into a source of repeat business, he said.

Emerson Process Management

You probably aren’t going to stop by the Emerson Process Experts blog for a casual read. Here’s a clip from a recent entry: “The valve supplier typically supplies the safety valve torque requirements and required leakage rates. The actuator supplier provides the torque-to-supply pressure tables. The good news for those of us a little rusty in our advanced math skills is that the equations are algebraic and the simplifying assumptions err to the side of conservative volume sizing..”

Did your eyes glaze over? This tech talks would baffle the typical visitor, but it’s music to the ears of the plant engineers and process control experts who regularly visit the blog started three years ago by Jim Cahill (left), marketing communications manager for Emerson’s Process Systems and Solutions business. It’s one of my favorite examples of good b-to-b blogging.

Emerson Process Experts is superbly focused; it doesn’t pretend to be anything other than a technical resource to a small but very important audience. Cahill is fluent in the language of the industry, but he’s also a good writer who organizes and expresses his thoughts clearly.

What’s the benefit to Emerson? The company has become a trusted source of advice to customers and prospects. Its plentiful links to other sources of information ingratiates the company with publishers. And 190 inbound links haven’t hurt its search performance: Emerson is the number one commercial link on Google for the terms “process management” and “process control.”

New Conversation Monitoring Service is Free During Test Phase

If you’ve been itching to try out one of those conversation monitoring services – the ones that tap into millions of blogs and discussion groups and pick out mentions of your company – you now have a chance to try one for free. BuzzGain is an online service for identifying chatter on blogs, photo-sharing services, video services, Twitter and traditional media. It’s co-founded by Brian Solis, a PR guy who’s very savvy about new media. According to the pitch I received, this test isn’t open to the general public: “They’re launching BuzzGain in the true spirit of public beta…They want to listen to and learn…While it’s in Beta, it will be free for everyone.”

B-to-B Social Media: Yes, You Can!

Posted on January 23, 2009 by Paul

From my weekly newsletter. To subscribe, just fill out the short form to the right.

I’m frequently asked if social media has value in a business-to-business context. The answer is emphatically yes, although these applications rarely get the publicity of their flashier consumer counterparts. Over the next couple of issues, I’ll look at where social media tools can deliver the most B@B value and how some companies are putting them to work right now.

The term “social media” is almost a misnomer in this context. Businesspeople usually aren’t looking to socialize when making buying or career decisions (LinkedIn is a notable exception) but rather want actionable advice as quickly as possible. That’s why the tools that work best are those that let people easily discover what they’re looking for and extract value quickly. Blogs, podcasts, video and discussion forums can all be effective.

In fact, some of the most ambitious corporate blogging campaigns have been primarily aimed at B2B. uses. Microsoft and Sun, which between them have about 10,000 corporate bloggers, use this tool to reach developers, business customers and prospective employees. The blogs are easily searchable and they allow readers to pose questions to the best sources of information.

Among other b-to-b companies that are using blogs effectively are Emerson Process Management, the New York Stock Exchange, Marriott, PriceWaterhouseCoopers, Boeing and Accenture, to name just a few. You won’t find a lot of playful repartee and trivia contests here. These blogs are intended to communicate useful information and reinforce their authors and their companies as authorities in their fields.

Podcasts are one of the least appreciated tools for business-to-business communications. EMarketer says regular podcast listeners are twice as likely to have advanced degrees and to earn over $100,000 annually as non-listeners. Nearly every information technology company now regularly uses podcasts as educational tools. Their busy corporate customers appreciate the fact that podcasts let them consume information while driving, exercising or waiting for the train. It’s a great way to use otherwise unproductive downtime.

Discussion forums are the oldest form of social media around. They’re a great way to cut support costs by giving customers a way to solve their own problems. The new breed of social networking tools has given new life to this meat-and-potatoes application. Members can now link their activity to personal profiles and earn points for their contributions; the more questions they answer, the higher their status in the community.

In many cases, this status is enough reward in itself. In their best-selling book Groundswell, Josh Bernoff and Charlene Li tell of one Dell customer who saved the company more than $1 million in support costs by answering customer questions. He received no compensation for his work. Some people on LinkedIn regularly answer more than 200 member questions a week. For them, the reward is the status that they gain from showcasing their expertise. This can lead to promotions and consulting contracts.

There are even b-to-b applications of some of the flashier new social media technologies. Next week we’ll look at some of those.

FAQ the Third

Posted on January 8, 2009 by Paul

I’ve recently conducted a couple of online seminars about social media topics. The Q&A sessions at these events are almost always too short to get to the issues that are on people’s minds. So over the next few issues of this newsletter, I’ll run down a few of the best questions I didn’t get to. For a good, free webcast on this topic, check out the recent event sponsored by Listrak.

To subscribe to my weekly newsletter, just fill out the short form to the right.

Q: How do you reach international audiences? Are the tools you showed just for US consumers?

A: The Internet doesn’t know geographic boundaries, so with few exceptions your message can reach across the globe. The one area that is geographically sensitive is social networks, which seem to gain more active followings in some countries than in others. Google’s Orkut, for example, has been a nonstarter in the U.S. but has a huge following in Brazil. Cyworld is popular in Korea, while Hi5 has a big Latin American membership. In Japan, Mixi is the largest social network. The Swedes love Lunarstorm, and the Poles take to Grono. I’m not sure why that’s the case, but if you’re trying to reach people on social networks, you need to go where they’re already congregating.

Q: Can you give some examples of return on investment?

A: That depends on how you define “return.” Often, businesses look at return in terms of visits to a designated landing page, such as a download or order form. In that case, look at referring URLs. You can also track actual orders back to the URLs or e-mail links that referred people to that page. That’s a relatively easy way to translate links into sales. Use unique URLs and/or tracking codes to document where your customers are coming from. This podcast interview with Avinash Kaushik on Paul Dunay’s Buzz Marketing for Technology podcast series has some sound advice.

In other cases, however, companies may look for an increase in favorable press coverage or blogger comments as an indicator of ROI. In that case, tracking an increase in press or blog citations compared to a base point can yield a pretty good idea of the effectiveness of a campaign. Note that these are not web analytics and that the collar value of these results can be difficult to quantify.

Q: What (if any) silver bullet can you use, to encourage your client to create a blog for their company, when they are deathly afraid of negative feedback?

A: A substantial body of evidence is emerging to support the effectiveness of social media marketing. For example, here’s a list of links to archives of successful social media campaigns. A study of the Inc. 500 by the University of Massachusetts found that three quarters of the respondents now consider social media to be essential to their marketing efforts. Sites like eMarketer and Marketing Sherpa also have extensive case history and statistical evidence about the value of blogs and other tools. Recent McKinsey research reveals that companies that have bought into Web 2.0 marketing are planning to expand their commitment this year.

In my view, negative feedback is an overrated problem. Every company has some unhappy customers, and most people understand that that’s part of the landscape. In most cases, critics can be converted to satisfied customers or even fans with a little hand-holding and special attention. There is overwhelming evidence that simply responding to disgruntled customers with a message that shows you’re listening can put to bed the vast majority of complaints. If a company does have a customer satisfaction problem, however, it is wise to step lightly into new media. Be prepared for negativity and be ready to respond to each and every comment. You’ll quickly find that criticism will diminish as you demonstrate responsiveness.

Q: Does social media marketing apply more to medium and larger businesses than to small businesses?

A: In my experience, small businesses are more active, creative and effective at leveraging social media marketing than big companies. There are many reasons for this, including the compelling cost advantages, the speed and responsiveness of small organizations, their willingness to engage directly with individual customers and the accessibility of senior managers. The University of Massachusetts research I mentioned above found that small businesses are adopting these tools much faster than large ones. In my own presentations and seminars, I consistently find that small companies are more enthusiastic and responsive to the potential of social media than the big guys. In fact, large companies tend to excel at finding reasons to AVOID talking to their customers!