IDC Sees Massive Disruption From Industry’s Platform Shift

Posted on March 13, 2012 by Paul

The global IT industry is in the middle of an epic platform shift and the rules for survival in a market built on mobility, big data analytics, social business and cloud computing will be very different than those that applied to the previous client/server generation.

Download Frank Gens’ slides here

That was the message from IDC Senior Vice President & Chief Analyst Frank Gens as he kicked off the research firm’s Directions 2012 conference in Boston this morning. Gens, who has tracked the computer industry since the days when mainframes ruled the earth, outlined a dramatically new economic structure that will emerge as economies of scale take hold.

: Frank Gens (photo by Jeff Ballard via Twitter @jballard)

“Volume is going way, way up and price is going way, way down,” he said of the new software market. “If [technology companies are] going to drive large-enough volumes to support the revenue levels they’re used to, they’re going to have to drive the number of customers way up. You’ll need millions of customers in order to compete.”

Gens outlined some striking changes in the platforms and architectures that underlie what he called the “third platform” of computing after mainframe and client/server. Among them:

Spending on mobile data services will surpass spending on fixed data services this year for the first time. “That’s a crossover that will never cross back,” he said.
The 700 million mobile devices shipped in 2012 will roughly double the number of fixed devices shipped during the same period. Spending on mobility will exceed spending on PCs and servers for the first time.
The volume of unstructured data in corporate data centers will exceed the volume of structured data for the first time.
China will surpass Japan to become the world’s second largest IT market at about $170 billion.

But the most startling changes Gens outlined concerned the software applications market, where downloadable free and low-cost apps are redefining the economics of the business. IDC forecasts a five-fold increase in annual apps downloads to 137 billion by 2016. Only about 18% of those apps will be paid for, and average prices will fall from $1.59 today to 82 cents. “That’s spooky stuff when you consider that PC apps average about $25” and that that market isn’t growing, Gens said.

Technology companies will need to overhaul their business models to accommodate these shifts. In order to attract the thousands of new customers they’dd need to recruit each day, vendors will have to become experts at cultivating communities and working with partners and even competitors. In other words, word of mouth marketing is the only viable promotional model.

Will Microsoft be a player in mobile platforms? It may be, but Redmond has a lot of work today, Gens said. A recent IDC survey asked developers which platforms they were “very interested” in targeting. Apple IOS for the iPhone came in first at 90%, followed closely by Google’s Android for smart phones. HTML 5 was a strong third. Microsoft’s Windows Phone 7 was a weak fourth at under 40%. Can Microsoft compete? “We should know in the next 12 to 18 months,” Gens said.

Tech firms will also need to serve a wider variety of vertical markets because price deflation won’t permit the luxury of focusing. Fortunately, IDC has identified more than 40 new specialty industries made possible by platform shift, including medical assistant online, social mobile commerce and smart buildings.

And if these pressures weren’t intense enough, don’t forget overseas competition. Gens said the business models that support high-volume, small-transaction markets are being honed right now by Indian, Chinese and Russian companies that have worked in that environment for years. US firms, with their high costs and margins, are going to struggle to adapt to a leaner and more competitive way of doing business.

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.

Transforming P&G

Posted on March 9, 2012 by Paul

When Stan Joosten first contacted me about joining Procter & Gamble’s Digital Advisory Board, I initially hesitated. The volunteer position would demand a few days of my time every year just as I was beginning to transition my focus to B2B and away from P&G’s consumer markets. But this was P&G, after all, and Stan, who is Innovation Manager for Holistic Consumer Communications, is a persuasive guy who had already signed up several people I respect. I said what the heck.

It was the best decision I’ve made in the last five years.

This week I sat in an auditorium at P&G headquarters in Cincinnati and heard CEO Bob McDonald talk about the centrality of one-to-one relationships to the company’s future and declare “We want to be the most digitized company in the world.”

Mark Pritchard, who heads global marketing, echoed the one-to-one theme, noting “Digital marketing is past. Brand building in the digital world is the future.” That’s an impressive statement coming from one of the world’s largest TV and print advertisers.

The fact that this week’s event was even going on was notable in itself. Organized in just seven weeks and spearheaded by John Battelle’s Federated Media Group, Signal P&G brought top executives from Google, Facebook, Yahoo, AOL, Microsoft, Coca-Cola and many other digital and consumer brands to talk about the future of marketing. About 300 P&Gers crowded the John G. Smale Tower Auditorium in Cincinnati and another 1,300 watched online. Most people in the room stayed till the very end.

From my conversations with employees and the discussions I overheard in the hallway, I came away convinced that this is a company that is successfully transforming both its culture and its approach to market. When you consider that P&G has nearly 130,000 employees spread across the world and marketing practices that have made it an icon of excellence for a century, that’s no small achievement.

New Measures of Success

P&G has been called the world greatest marketing company. Success can be a curse, though, and the maker of Crest, Tide and about 25 other billion-dollar brands has struggled to wean itself from a traditional focus on coupons and samples in favor of a culture of engagement.

It’s not that P&G doesn’t understand its markets. The company’s almost obsessive approach to research has marketers and engineers routinely visiting customers’ homes to spend hours watch people doing laundry, diapering their babies and brushing their teeth. P&Gers understand that the reason moms buy Tide goes far beyond clean clothes and gets to issues like self-esteem and peer acceptance. Its brand marketers are some of the savviest marketing pros I’ve ever met.

This deep understanding of customers was evident even in the Advisory Board’s earliest meetings with brand managers. What was missing was a sense of how to engage. P&G marketers create brilliant campaigns, but their success milestones have been defined by traditional metrics like impressions, coupons and trials.

Assumptions are breaking down, however, thanks to a willingness to change and the success of campaigns like last year’s Old Spice “The Man Your Man Could Smell Like,” which combined traditional TV advertising with a brilliant series of companion videos on YouTube. This week Federated Media showed off StyleUnited, a new P&G community for “want it all women” that logged one million page views in its first three months and is already driving new sales.

Support From the Top

More important, though, is the support shown by top executives like McDonald and Pritchard. They’re obviously keenly aware of the Innovator’s Dilemma, Clayton Christensen’s theory of how successful businesses destroy themselves by being unable to discard the tactics that made them successful. P&G’s revenues continue to be strong, but its traditional retail channels are under intense pressure, warehouse clubs are squeezing margins and Amazon wants to trump its brands. Consumer packaged goods companies today face the risk of being marginalized as commodities. Digital channels are the lifeline that can establish long-term connections with their customers. It appears to me that the key people at P&G understand that, and once a company of this caliber gets on board, entire industries change.

I’m not sure there’s much I can tell P&G marketers that they don’t already know at this point. While P&G has never paid me a fee, they have enabled me to connect with people I would never otherwise meet and to get the briefest of glances into how a great company stays on top of its game. It is been an amazing experience and I’m grateful to Stan, Tonia Elrod, Daniel Epstein and the others who have permitted me to be a part of it. If I can ever be of service, don’t hesitate to call.

CIO Challenges Educators to Stay Relevant

Posted on March 7, 2012 by Paul

Wichita State University CIO Dr. Ravi Pendse last month issued a provocative challenge to educators to rethink their tools and tactics if they are to remain relevant a decade from now.

Addressing a regional edition of the popular TED conference in Wichita, KS, Dr. Pendse, who is both the CIO of Wichita State University and an award-winning professor, said he chose the term “relevant” deliberately. In his view, educators who continue to rely upon lectures and chalkboards as the tools of their profession are becoming dangerously out of step with the ways in which young people learn. Educators must not only adopt the tools the students use but also adapt their curricula to the topics that interest those students.

“If the goal is to get people excited about history, shouldn’t we study the history of Google?” he asked. “Our young people are looking for complete convergence. If you can’t provide it to them, you have a problem of relevance.”

To illustrate how out-of-step some educational institutions have become with even everyday technology, Dr. Pendse asked audience members to exchange cell phones with each other. He noted the nervous rumbling the exercise created among the crowd. “It’s uncomfortable not to have those devices with you,” he said. “So why do we tell people in the schools to turn them off? We should be using them as educational tools instead.”

Facebook is ubiquitous among college students, but many higher education administrators don’t use any social networks at all. With the social network expected to surpass 1 billion members sometime this summer, “Wouldn’t a class be popular that studied the sociology of Facebook?” he asked.

Dr. Pendse acknowledged that his views aren’t universally shared, but he expressed little sympathy for educators who refuse to change. “I call them CAVE people,” he quipped. “That stands for Colleagues Against Virtually Everything.”

The analogy of the caveman may not be lost on an older generation that is falling further behind. By the age of 21, many young people today have played 10,000 hours of online games, Dr. Pendse noted. Educators may not approve of that fact, but they need to accept it and discover some of the virtues of video games, since they improve motor skills and concentration, that’s why so many people get the best hardware for their games, like processors from this amd fx 6300 review so they can play games as Overwatch using different OW Guides.

For example, “They require creativity. They even have built-in assessment tools; you can’t go to level 15 without completing level 14. And young people are collaborating across the world to figure out how to get to that next level.”

If educators are to get to the next level themselves, they need to put down the chalk and pick up the mouse. “Technology will never replace teachers,”’ he said, “but we can use technology to help a much greater number of students learn from each other.”

You can see Dr. Pendse’s 23-minute presentation below.

ComScore Data Illustrates But Also Obfuscates

Posted on March 1, 2012 by Paul

This graphic, which appeared in The Wall Street Journal on Tuesday, says a whole lot about Facebook’s success and Google+‘s struggles, but it’s an incomplete picture of the true value of social networks. Here are some thoughts on what the numbers indicate and what they hide.

The Journal piece was mainly intended to dramatize how badly Google+ is performing in the market despite Google’s huge search footprint. It does that very well.

“New data from research firm ComScore Inc. shows that Google+ users are signing up—but then not doing much there,” the Journal writes. Yup. That about sums up my experience. I organized some friends into circles, created a couple of pages and then sat there wondering how this was any different than Facebook.

I don’t know how Google can spin these numbers as positive. A spokesman quoted in the story protests that Google+ is simply a social networking layer on top of other services. That’s pretty lame, considering that YouTube has had its own social networking layer for years and that the previous social layer on top of Gmail – Google Buzz – went nowhere. A public flogging in the Journal can be the first step off a cliff for a company or technology struggling to make it, and this is going to hit Google+ pretty hard.

There are a couple of areas in which the ComScore numbers mislead, however. The low numbers for LinkedIn and Twitter look surprising, particularly when compared to Facebook, Pinterest and Tumblr, but keep in mind that Twitter and LinkedIn are professional networks that are optimized for efficiency. Many LinkedIn members choose to receive messages as e-mails and only visit the site when necessary. I personally don’t spend much time on LinkedIn.com, but I get far more business value from it than I do any other social network.

The low number for Twitter is so misleading that it should be asterisked. For one thing, ComScore doesn’t measure mobile traffic, a fact that disproportionately penalizes Twitter. Also, only about 20% of Twitter activity actually occurs on Twitter.com. Most people interact with the service through third-party clients and services that use the Twitter APIs. Twitter doesn’t host any long-form content itself (like Facebook does) or frame others’ content (like LinkedIn) Finally, the whole idea of Twitter is not to have to spend a lot of time with it.

Give credit to Facebook. It has fended off competitors by adopting new features where appropriate without trying to be all things to all people. Google+ introduced circles, so Facebook added lists. It did not, however, try to copy the more expensive concept of Google Hangouts. Better to wait and see on that. The Facebook timeline is an effective counter to Twitter, as is the recently introduced subscribe feature. Facebook Answers rained on Quora‘s parade (remember Quora?). It’ll be interesting to see what Facebook has up its sleeve to counter Pinterest.

Facebook has responded to competitors by co-opting their best features without trying to stamp them – Microsoft-like – into oblivion. It is a gracious competitor in a business not known for much grace. Given a chance to tap dance on Google+’s miserable numbers in this report, a Facebook spokesman declined. That’s classy.

The Value of Tweeting Events

Posted on February 16, 2012 by Paul

A list of tips for building a quality business Twitter following that I recently contributed to The CMO Site mentioned the value of being the eyes and ears of your followers. “When you attend a conference, play reporter and tell your followers what you’re witnessing,” I advised. An experience from this morning demonstrates the value of what amounts to sharing notes you would probably take anyway..

I attended a nearby Social Media Breakfast on the subject of content marketing, featuring several respected speakers. I had HootSuite fired up on my laptop and Notepad++ pre-populated with speaker handles and the event hash tag. I posted about 30 comments during the 90-minute session, mostly speaker quotes and summaries of what was being said. Using the #SMB26 hash tag ensured that my tweets would appear in the busy stream of comments from the session.

Within an hour after the event had ended I had 26 new followers. This required almost no work on my part. I would have taken notes anyway, but by adding a hash tag and Twitter usernames I was able to piggyback on other activity going on around the meeting and catch the attention of people monitoring the tweet stream.

Twenty-six new followers is a pretty good week. It’s an awesome day.

A few of notes about tweeting from an event:

Don’t overdo it. People don’t like it when their newsfeed is crammed with messages from one person. A couple of years ago I made the mistake of tweeting rapid-fire updates from a conference at the rate of about one every 15 seconds. Several followers admonished me for this and about a dozen stopped following me entirely.

Think before you send. Quotes that make sense to you as an attendee may baffle someone who lacks context. Set up the quote with background if necessary. For example, Digital Influence Group’s Brian Babineau described how a telecommunications client had made its plans to build new cell towers more real by publishing details on a map. I summarized: “@BrianBab21 Show, don’t tell. Building new cell towers? Photograph, geotag and embed on a Google Map for ppl to see. #SMB26”

Add perspective. Can you append a comment that adds value to a tweeted quote? I try to do that whenever possible: “@cc_chapman Loves #Harley Ridebook. Great example of customer-driven storytelling. #SMB26” or “@cc_chapman ‘You are never your audience’s priority.’ Publishers have to remind themselves of this all the time. #SMB26.”

Include Twitter handles and links whenever possible. Adding a speaker’s handle makes it more likely that the speaker will see your tweet. References to a news story or website should include a link if you have the means to find it. For example, “@jchernov Guy who proposed to GF via infographics may have mortally wounded the medium 🙂 #SMB26 ow.ly/96Jcj.”

My entire tweet stream, in chronological order, is below. That was easy.

What’s worked for you when tweeting from events?

Follow #SMB26 for “New Rules of Content Marketing” right now w @cc_chapman @jchernov @BrianBab21 @RachelJOConnell @RobertCollins
@RachelJOConnell “Our motives as marketers are becoming increasingly irrelevant to the buying decision.” #SMB26
@RachelJOConnell Praises Audaciously Eloquent blog: Headlines and photos only; almost no text #SMB26 ow.ly/96HPO
@RachelJOConnell “We can’t control what ppl say about us, but we can control the experience they have and share.” #SMB26
@RachelJOConnell is a quote machine: “Look for opportunities for other ppl to express your brand.” #SMB26
@BrianBab21 “Days of building a destination and driving people there are over. Spend w/partners on relevant environments.” #SMB26
@BrianBab21 “Content mktg is soft sell. Not ‘do this’ but ‘read this and tell us what you think.'” #SMB26
@BrianBab21 Show, don’t tell. Building new cell towers? Photograph, geotag and embed on a Google Map for ppl to see. #SMB26
Really! Buzzword of the month–>RT @dough: “Infographic” mentioned 2x so far. I don’t have a drink dangit #SMB26
@jchernov Guy who proposed to GF via infographics may have mortally wounded the medium 🙂 #SMB26 ow.ly/96Jcj
@jchernov Infographics are about info, not pictures. Bad ones suffer from lack of data #SMB26
@jchernov Covers 4 kinds of infographics. “State of…” infographics shows snapshots of history to visualize change. #SMB26
@jchernov on 4 kinds of infographics. “Resource” infographics are how-tos. Stuff you stick on the wall. #SMB26
@jchernov on 4 kinds of infographics. “Comparative” contrast two similar themes: FB vs Goog, under-25 vs over-65. #SMB26
@jchernov on 4 kinds of infographics. “Evolutionary” are timelines that illustrate change or motion. #SMB26
@jchernov nails prob w infographics: “Pretty pictures follow if you’re faithful to the data. Reciproal doesn’t work.” #SMB26
Love good ones, hate most I see these days –>RT @dough: @pgillin Oh dear– we jinxed it. “infographics in 15 minutes” #SMB26
@cc_chapman Loves #Harley Ridebook. Great example of customer-driven storytelling. #SMB26
@cc_chapman “You are never your audience’s priority.” Publishers have to remind themselves of this all the time. #SMB26
RT @george_grattan: @cc_chapman Lincoln quote : give me 6 hrs to chop down a tree and I will spend the first 4 sharpening the axe. #smb26
@jchernov quotes Alan Cooper: “No matter how beautiful, how cool your interface, it would be better if there were less of it.” #SMB26
RT @hipharpist: “Speak in Human.” @cc_chapman @thecontentrules #smb26
@jchernov “Ppl who get our content first (subscribers) promote us more actively to their friends.” #SMB26
Audience question: Can you give away too much info and have competitors take advantage of you? Panel unanimous: “No.” #SMB26
@cc_chapman calls Cisco’s @timwasher a “genius.” Tend to agree 🙂 #SMB26
@jchernov has quote of the morning: “A lot of ppl have written a white paper but no one has ever read one.” #SMB26
Thanks to @diginfgrp and @ConstantContact for a great session at #SMB26 this morning. Excellent panelists.
@RobertCollins Key to #SocialMedia success for #nonprofits: “Create a platform for the people you help to tell their stories.” #SMB26

Industrial Age Thinking Thwarts Potential of Internal Social Nets

Posted on February 14, 2012 by Paul

About 15 years ago the CEO of the company where I worked decided that it was important that employees should learn to use the technology they were writing about. He asked my business unit to build a computer lab that employees could use at any time to play and experiment.

A large rectangular block of space was annexed in the middle of the open office and a spacious facility was constructed with spot lighting, tinted picture windows and all the latest PCs and Macs with large color monitors, color printers, a flatbed scanner and Bose speakers. There was even a NeXT machine.

The lab was christened with fanfare and highlighted in the company newsletter. It then sat unused for two years before it was quietly torn down and converted back to practical office space.

Why did the directive from the CEO of the company go unheeded? Because it was neither supported nor enforced by the managers below him. The managers – myself included – were given no incentives to make the CEO’s vision real. None of the executives used the lab themselves. Anyone who did could be observed by the entire office, as if to advertise that they had nothing else to do. The message was clear: Using the lab was equivalent to goofing off. Needless to say, people stayed away.

Unrealized Promise

That story popped into my mind last week as I was participating in a webcast with The Conference Board about internal social networks, their promise and the significant impediments that many organizations face to adopting them.

The social networking metaphor is increasingly expanding into the enterprise as a means to encourage knowledge-sharing among employees. Last month I attended Lotusphere and heard presentations by companies like 3M, Caterpillar, TD Bank North and Cemex about their successes in using Facebook-like technology behind-the-firewall.

Their stories, however, may be the exception. Recent research by InformationWeek found that less than 40% of users of internal social networks rated their usefulness as good or excellent. McKinsey reported last fall that only about half of the companies that met their definition of fully networked enterprises were able to maintain that state over time. “It appears that it is easier to lose the benefits of social technologies than to become a more networked enterprise,” McKinsey wrote.

This is despite the fact that internal social networks offer unprecedented opportunities to unlock the knowledge capital within organizations. For example, a sales rep trying to close a deal with a German company can discover an accounting employee who speaks fluent German and leverage that person’s skill to help get the business. The marketing department can discover the manufacturing employee who has outstanding Web design skills by simply posting an inquiry to the network. When employees can freely share knowledge and needs with each other, knowledge tends to bubble up in unexpected places.

Unfortunately, social networks challenge entrenched political boundaries and threaten the managers whose support is needed to make them work. They’re also incompatible with conventional organizational structures, which actually work against information sharing.

Factory Thought

Most businesses are still built upon management structures that were conceived during the Industrial Revolution to optimize operational efficiency. Job descriptions, reporting structures, departments and business units were all needed to ensure that organizations produced the necessary goods on schedule and that each participant in the process was accountable. These structures have become a burden today as challenges have shifted from process management to knowledge management.

In most companies managers are rewarded based upon the output of their group. Incentives to share resources are few; in fact, such behavior is more likely to be penalized than celebrated. The accounting manager has no reason to share the German-speaking employee with the sales rep because gains nothing from doing so and others in the department have to pick up the slack of the absent employee.

Knowledge sharing initiatives don’t work if the organization doesn’t change. Executive vision must be supported by line managers who have goals and incentives that encourage them to share their treasured resources.

Getting started isn’t that difficult. Spot bonuses, recognition in company awards programs and articles in the company newsletter can highlight desired behaviors at little cost. However, to really optimize knowledge sharing within an organization, executives need to think bigger. They need to institutionalize practices that encourage the smooth flow of information and skills across the workplace. They need to rethink the knee-jerk approach to departmentalizing everything and rewarding line managers solely on the basis of departmental performance. They need to let teams form fluidly without penalizing people who wish to contribute outside the confines of their job description. They need to let people experiment and play without fear of recrimination.

The reward is a smarter business with happier employees who are engaged in work they love. That’s a concept the architects of the Industrial Revolution never even imagined.

‘The Truth About Leads’ Is Just That

Posted on February 3, 2012 by Paul

I spent 15 months as a sales manager, which was just long enough to learn how little aptitude I had for the job.

The experience did give me an appreciation for the difficulty of selling, though. In 20 years as an editor I had developed an attitude that’s common for people who produce products: I believed that most salespeople were overpaid, under-worked and basically lazy. My 15 months of hell taught me otherwise, and that’s why I was curious when Dan McDade sent me a copy of The Truth about Leads.

McDade Is an entrepreneur whose company, PointClear, helps businesses improve their prospecting and lead nurturing. The Truth about Leads is a short book – only 101 pages – but it’s packed with sales wisdom. Some of McDade’s advice will be difficult for sales managers to hear, but it’s hard to argue with his logic.

McDade believes that most companies invest far too much in lead generation and far too little in lead qualification and nurturing. Salespeople are too quick to discard leads that don’t show immediate potential, preferring to focus on the small number of opportunities they can close quickly. In doing so, they squander opportunities to pursue long-term relationships that can yield far more revenue over time.

This behavior contributes to the chasm that exists between marketers and sales people in many organizations, particularly B2B companies. Marketers throw large numbers of leads over the wall to sales because that’s what they’re paid to do. Sales people don’t effectively follow up on longer-term opportunities. Each party complains about the other’s incompetence.

McDade (left) lays equal blame on both parties, concluding that the net effect is “about 95% of generated leads are not effectively pursued by sales.” Lead nurturing takes time and persistence that few sales people have and fewer sales managers tolerate. The reality is that it may take 10 to 12 calls and e-mails to get the attention of a single prospect. Most sales people give up after three. And even that is only the beginning. Ten percent of qualified leads close within three months, but 45% will close within a year if they are properly nurtured. The good news is that the leads that take the longest to close are the most likely to be good sources of repeat business. Once they’re convinced, they’re all in.

McDade is particularly critical of the cost-per-lead (CPL) metric that is commonly used to measure marketing effectiveness. CPL drives marketers to outsource demand generation to unskilled contract telemarketers or to purchase lists of dubious quality. These tactics can generate a lot of names, but not many qualified leads. “Fewer than 7% of leads passed to sales by marketing should be,” McDade states.

In his view, lead qualification is a far more productive investment than lead generation because it focuses sales resources on the opportunities that have the highest conversion potential and the greatest long-term value. Lead qualification also demands cooperation between marketing and sales, which is something most companies badly need. Marketers should be rewarded for making sales successful, not throwing names over a wall.

The Truth about Leads has numerous other tactical gems that salespeople will appreciate. The section on selling to pain rather than opportunity is right on the mark as is the persuasive case McDade makes against “appointment setting,” a practice that focuses sales resources on meeting with people who have a lot of time on their hands.

The Truth about Leads does what a good business book should: Defies conventional wisdom with logic born of experience. Reading it is two hours well spent.

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.

Palmisano Reflects on a Decade as IBM’s CEO

Posted on January 20, 2012 by Paul

As he retires from IBM after 10 years as CEO, Sam Palmisano reflects on what he’s learned about leadership, making tough decisions and thinking strategically (video, transcript and downloadable audio).

Palmisano is disarmingly modest and candid in an interview with Wharton management professor Michael Useem as he discusses his “temporary stewardship” of the IBM legacy. Like many successful CEOs, he is guided by a few simple and logical principles: Always put the organization first, think long-term and leave the company better than you found it.

Palmisano speaks honestly about the mistakes IBM made that nearly capsized the company 20 years ago and how those lessons changed him as a leader. Among the topics he covers:

The controversial decision to sell the PC division to a Chinese manufacturer and why the sale intuitively made sense;
Why IBM has continued to invest $6 billion annually in research and development, even during tough economic times;
The toughest decision he made a CEO: restructuring IBM’s pension plan.
What he learned from his college football career and why he’s glad he turned down the opportunity to try out with the Oakland Raiders in 1973.

Palmisano has kept a low public profile during his tenure as CEO, so the opportunity to see him let down his guard a bit and talk about his personal style is a rare treat. I came away from it with greater respect for the man and even the impression that he’d be a good guy to have a couple of beers with.

Update: Harvard Business Review’s Joseph Bower posts a retrospective on Palmisano’s tenure. “They don’t give Nobel Prizes in management, but if they did, Sam Palmisano would deserve one,” he says.

Live Blog: 3M Unites Global Workforce With Technology

Posted on January 17, 2012 by Paul

When it comes to innovation, everyone wants to know what the leaders are doing, and you won’t find many firms with a better innovation track record than Minnesota Mining & Manufacturing (3M). At Lotusphere today, two representatives to 3M outlined some ways the company is using collaboration platforms to improve access to expertise and information across the far-flung company, which has people in more than 60 countries.

3M’s track record of innovation is legendary, but globalization has presented new challenges. “We’re a century-old company founded on the principles of collaboration, but now we’re worldwide, said Jeff Berg (left), IT eBusiness Architecture and Development Manager.

Internet-based tools have been embraced across the company to compensate for the loss of physical proximity. 3M engineers have adopted a microblogging platform called Socialcast behind the firewall to tie together 800 members across 30 channels. The tool is enabling point questions to be answered quickly.

A sampling:

“I need information on 3M Japan products (name withheld) and what are the Eurpean substitutes?”
“Does somebody know whether (unnamed competitor’s product) is approved at (unnamed customer)?”
“Anybody have a good print anchorage test for films or a test apparatus that performs a wiping motion repeatedly?”

These questions were all answered in minutes, said Michael Lynch (right), Manager of IT Advanced Personal & Workgroup Solutions. People have gravitated to Socialcast “because of the speed and light touch.”

Not all problems lend themselves to brief answers, though. 3M has also experimented with more ambitious projects involving live seminars, group brainstorms and even contests.

One division launched a contest seeking 50 unique prototypes that contained 3M technology. The deadline was six weeks. The group held live live webcasts and chats to explain the event and succeeded in getting 45 prototypes from across the U.S. 3M filed seven patents on the work that resulted.

The research & development organization has used IBM Connections to take a long-standing technical conference online. The Virtual Technical Information Exchange (VTIE) renders in cyberspace what used to be done with speeches, posters and conference calls.

Last year the event went virtual with IBM Connections, drawing 10,000 participants from around the world who contributed to 140 presentation threads with nearly 1,000 posts and comments. “This was supposed to be a two-week event when it started last summer,” Lynch said. “It’s still running.” The time-shifted conversation has drawn significantly more participation from overseas employees, he added. Presentations are recorded and posted as audio files, which participants can follow up in forums.

Time to Market

Online collaboration is also being used in non-technical functions. A private community of about 200 consumer-focused field sales reps and service engineers now post monthly blog-like summaries of field activity reports, customer wins and innovative marketing ideas. “Not only does this helps us understand what problems need solving in the field, but it helps the headquarters team feel more connected with customers,” Berg said.

For 3M’s largest customers, account managers can now connect with each other to seek innovative solutions. Berg cited one customer in the hospitality industry that needed a noise-mitigation solution that couldn’t be addressed by 3M’s Thinsulate or Bumpon products. A Connections search found just the thing in a completely unrelated industry.

From the Top

Collaboration tools aren’t just for peer connections. Executive managers recently found them useful when communicating with employees about disruptions that would stem from a major renovation of the company’s Minneapolis headquarters.

“Temperatures in Minneapolis can drop to 20 below in winter, so the need to force people outside during renovations was a concern,” Lynch said. “The decision to use https://www.hopkinsandporter.com/ for the renovation plans to employees was controversial at first because news has always been top-down.” A wiki devoted to the project proved to be just the ticket, however. “It’s become the most popular internal social site in the company” with 340,000 page views and more than 200 comments, Lynch said. “We’ve been able to listen to discussions, manage objections and actually get great ideas.”

And when it’s 20 below, the creative juices really get flowing.

paulgillin.com

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The Value of Tweeting Events

‘The Truth About Leads’ Is Just That

Palmisano Reflects on a Decade as IBM’s CEO