Social media turning marketing on its head

December 26, 2008

secrets of social media marketing

Book Review
Secrets of social media marketing:
How to Use Online Conversations and Customer Communities to Turbo-Charge Your Business.
By Paul Gillin.
Quill Driver Books, 2009. 290 pp.

Not that long ago, public relations professional typically scanned three or four newspapers every morning. Today, that routine has been replaced by a network of search engines, RSS feeds, and paid monitoring services.

Welcome to the new world of influencer marketing, says Paul Gillin.
Gillin’s 2007 book The New Influencers documented the effects of ‘citizen publishers’ on markets and on companies. Social networks were only beginning to gain traction then, but today their members number in the hundreds of millions. Thus this book.

Gillin writes as traditional broadcast (and print) channels produce poorer returns for marketers as mainstream media fades in importance. He points to Barack Obama’s campaign as an example of decreased reliance on 30-second TV ads. Instead, the campaign narrowcast his messages through every conceivable electronic medium, every waking hour.

When marketers talk about social media applications, Gillin says, they typically start with the tool and then work backwards. As an example, a manager issues an order to start blogging! But this method is all wrong, Gillin says. The choice of social media tools is no more relevant to a campaign’s success than is the choice of paint to a house’s structural integrity.

Why should a company care? Because customers are publishing their opinions of companies and products. Customers take their problems directly to the Web, whether through consumer advocacy sites like Consumerist.com, RipOffReport.com, My3Cents.com, ConsumerAffirs.com, and PlanetFeedback.com. Or they publish on their own blogs and social networks.

Gillin says failure to listen will only be taken as evidence that the company doesn’t care. On the other hand, repeating the message back to the source and delivering a well-reasoned response can go miles toward demonstrating concern. For example, the Southwest Airlines blog Nuts About Southwest has won awards and frequently been cited as a shining example of how businesses can use new media to create meaningful dialogue with their customers.

Chapter 7 describes the opportunities and limitations of advertising in social networks, including MySpace, Facebook, LinkedIn, and YouTube. Companies should monitor the conversations taking place there. Conversation monitoring has caught fire in the last couple of years, Gillin says. He cites an early 2008 survey showing that top-performing companies were nearly seven times as likely as poor performers to use social media monitoring tools to predict customer behavior. Nearly two-thirds of the top performers had formal monitoring programs in place and 42 percent were actively listening to detect early warning of threats to their brands.

But be circumspect. Before you start to use social media channels at all, you need to decide if that’s a good idea in the first place, Gillin cautions. For some businesses, it isn’t. Not everyone is online-savvy. Large swaths of the population barely even know how to conduct a Google search, much less join a Facebook group. Your social media efforts will probably miss this audience entirely, which means that if those are the people you’re seeking, you’ll be wasting your time.

Social media marketing demands a different approach to customer interactions. Engagement is in, interruption is out. The first thing you need to do is stop pitching, Gillin says. The new style of marketing is about engagement. That means throwing out the elevator pitch and the 30-second spot. It means forming a relationship with a prospect through the exchange of useful, meaningful information. It’s about forming relationships that lead to long-term repeat business as opposed to making a sale. Long-term relationships invariably par off better than one-off transactions.

In the past, Gillin says, business success was based on anticipating customers’ requirements and responding at just the right time. In the future, success will result from continuous innovation and outstanding customer service wrapped around a continuous feedback loop.


Developing a Web 2.0 business plan

December 16, 2008

web 2.0 strategy guide

Book Review
Web 2.0: A Strategy Guide.
By Amy Shuen.
O’Reilly, 2008. 243 pp.

This book explains how successful Web 2.0 companies do what they do.

Author Amy Shuen says the biggest challenge to a company’s success in this area is to convert from an engrained culture of competition to a culture of collaboration.

As a strategy researcher and an authority on Silicon Valley business models, Shuen speaks at industry conferences, venture capital events, and business school seminars. She offers this book to provide theory and practice behind the concepts of collective user value, capitalizing on social networks, and collaborative innovation.

Amazon.com provides an excellent model to follow, Shuen says. Amazon “integrates Web 2.0 approaches into every page of its bookselling site. It tests new possibilities constantly.”

Shuen says Amazon founder Jeff Bezos has creatively repositioned the company to play many different syndication roles. Amazon Associates syndicates its online store to the web sites of its affiliates. Affiliates provide specialized content and organize product listings for a specific audience or community. So thousands of non-employees act as a virtual sales force that gets paid only on a success-fee basis when a sale is realized.

What’s new about Web 2.0, she says, is that both businesses and individuals can make money by providing services to customers for free. How? Web 2.0 allows online users to interact, combine, remix, upload, change, and customize content for themselves. This online DIY self-expression benefits businesses and other users. For example, Flickr bases its photo sharing and storage site on a “freemium” business model. Flickr leverages collective user value, positive network effects, and community sharing. WordPress and Technorati are similar in that they have created tools that millions of users can play with for free. Oh, and by the way, they offer really cool premium features you can use for a small fee.

How did relative latecomer Google beat out its many search engine competitors? By figuring out how to monetize the long tail of the search market. In October 2000 Google introduced AdWords, which opened up online advertising for small and mid-size companies that had never done so. Shuen says Google’s direct positive network effects result from aggregating the “wisdom of the crowd” as measured by popularity and frequency of user-created links, site visits, and advertising click-throughs.

In the collaborative innovation model, Shuen says, the entire perspective of innovation changes. In the old days, companies competed in an industry to capture new and old markets using different kinds of innovative technologies. Now, big and small companies orchestrate collaboration, often across industry boundaries, in innovative ways. Consider Apple’s iPod. Apple conceives, designs, and oversees the innovation and creativity of many external suppliers, creators, affiliates, and partners to support an innovative product and service.

Shuen’s “big three big takeaways” for developing a Web 2.0 business plan:
Online network effects are a powerful multiplying force.
A few active uploaders can create online critical mass and community.
Viral distribution and cooperative advantage can build eco-systems rapidly.


The Inbox

November 19, 2008

Being the mighty warrior that I am, I boast of my future victories in public, so that I may be forced to carry through with them. I hereby challenge myself to read and post reviews of these titles within one month:

Now Is Too Late2: Survival in an Era of Instant News. Gerald Baron. Edens Veil Media, 2006

Web 2.0: A Strategy Guide. Amy Shuen. O’Reilly, 2008

Citizen Marketers: When People are the Message. Ben McConnell & Jackie Huba. Kaplan Publishing, 2007


Book Review: Groundswell

June 17, 2008

groundswell

Groundswell:
Winning in a world transformed by social technologies
Charlene Li and John Bernoff
Harvard Business Press, 2008. 286 pp.

You and I and half of American adults are using more online tools to connect, to find information, get support, compare products, rate movies, buy from each other, or post blog entries. But most companies and institutions still don’t understand this trend, and their customers are slowly dribbling away.

Charlene Li and John Bernoff call this evolving online activity the groundswell. In this very readable book Li and Bernoff draw from extensive research to describe what the groundswell is and to offer case studies showing how organizations have readjusted their thinking to take advantage of it.

Although the groundswell trend includes social networks and related technologies, the authors say, equally important is the change in consumer behavior. People are getting more things they need from each other, and less from traditional institutions and corporations.

Listening (and becoming involved in) the groundswell should help your organization find out what your brand stands for; understand how buzz is shifting; save research money; increase research responsiveness; find the sources of influence in your market; manage PR crises; and generate new product and marketing ideas.

Li and Bernoff caution that there is no single ‘right way’ to engage with the groundswell. Depending on the objectives of your company, you’ll choose among the following options: listening, talking, energizing, supporting, or embracing your audience.

Case studies examine how Salesforce.com uses an innovation community to involve customers in the design of new products; how a French credit union made customers’ suggestions a part of how it does business; and how a Canadian grocery store uses customer ratings and review to improve its products.

An instrument that Li and Bernoff use in their work at Forrester Research is called the Social Technographics Profile. “Social” refers to the people-to-people activities in the groundswell. “Technographics” refers to Forrester Research’s way of surveying consumers—it’s similar to demographics and psychographics, but focuses on technology behaviors.

The authors define six kinds of online consumer behaviors. Learning which types best define your audience (or clients, or communities, or target groups) is the first step in any strategy you take to reach them. The Creators are those who publish a blog or article online, maintain a web page, or upload videos at least monthly. Critics post comments on blogs or forums, post ratings or reviews, or edit wikis. Collectors save URLs and tags on a social-bookmarking service, vote for sites on a service like Digg, or use RSS feed aggregators. Joiners maintain profiles on a social networking site like MySpace. Spectators consume what the rest produce. Inactives—nonparticipants—still remain.

Nearly one in five of online consumers in the US—18 percent—are Creators. This means that a significant chunk of six of your target audience, customers, community, etc., are blogging, uploading video, and maintaining Web sites, and quite possibly discussing your company. One in four are Critics, and nearly half are Spectators.

This groundswell is taking place not just on desktops and laptops. The groundswell is about to get embedded within every activity, including mobile devices.


Book Review: Now is Gone

June 13, 2008

now is gone

Now is gone:A Primer on new media for executives and entrepreneurs.
Geoff Livingston with Brian Solis.
Bartleby Press, 2007. 194 pp.

Marketing and PR professionals live in a world of constantly changing social media platforms.

Users want access to content anywhere and any time.

Marketing and PR professionals who successfully make the transition to this world have learned that “participation is marketing,” and that’s the theme of this book.

Geoff Livingston and Brian Solis have teamed up to offer a punchy little book that’s packed with insights into the principles that can guide communicators into, and through, the increasingly diverse and changing marketing environment.

Successful marketers will focus on social media principles rather than tactics, for example.

There is no more ‘audience.’ There are, instead, communities. By participating in online communities communicators can learn what the community wants and likes, and can create content that’s most valuable to it. The take away from this book: build value for your community, and work for them.

Public relations and marketing professionals who resist social media fail their companies and their clients.

Forget about pitching stories. Instead, engage in conversations. Social networks offer companies and organizations a way to engage potential community members outside of the confines of a corporate URL.

While PR 1.0 was all about controlling the message and broadcasting it, PR 2.0 encourages communicators to spark conversations to help people solve problems and discover new solutions.

This book is not intended as a primer, or a detailed how-to. It offers organizations and executives a foundation to help create social media strategies for their companies.

If even 15 to 25 percent of your buying community is using social media, or if a significant portion of your revenues are attributed to the right demographic, then it’s time to start and invest the necessary effort into new media strategies. … This important minority segment of your business will expand over time as adoption increases, and generations X and Y begin to dominate the workforce.

Create value for the community so they find your material worthwhile. This requires a) knowing what the community wants, b) understanding the intrinsic value the company has to offer, and c) being creative enough to deliver this value in a way that’s interesting and compelling.


Twitter is dead.

June 6, 2008

twitter

Dave Winer:

FriendFeed is not Plan B, however it has turned into the place where people congregate to discuss the need for a Plan B.

Rafe Needleman:

I figure its users, and my followers, are learning to not trust it, to not bother visiting the site since it’s likely to be down when they visit.

Update 11 November: Guess I spoke too soon.


Tagging for discovery and community

June 5, 2008

tagging

Tagging: People-powered metadata for the social web.
Gene Smith.
New Riders Voices That Matter. 2008.
208 pp.

If you use the Web a lot, the stream of information you navigate sometimes seems like a tsunami. Besides emails and RSS feeds, your digital stream can include social networking sites, photos from your friends, links from Del.icio.us, and Twitter tweets.

Tagging these online resources can help you make sense of your stream. If you use tags now, this book will show you ways to juice your game, and will likely point you to new resources. If you don’t use tags, this book explains how tagging can help, and how to get started.

And if you’re a web architect, Gene Smith walks you through the things you should consider when designing tagging system.

A tag is a kind of indexing tool. When someone posts a photo on Flickr or posts a blog entry, she adds a keyword, or tag, which describes the subject matter, its location, or its intended use.

When we store information on our computer hard drive, we use a “folders” metaphor: A files goes in a folder. Smith points out that tags are the first significant change from that metaphor: With tags, your files or photos can be in two, three, or more “places” at once.

Tags connect objects together and can help people with common interest find each other. Users can have a social experience on a site without actually knowing each other because they share a common interest in a video or photo that has been tagged. Media-sharing sites like Flickr and YouTube allow users to share photos, music, videos, and other kinds of digital media with each other.

The tags you share become part of a community pool of tags. Smith says tagging creates a bridge between personal and community knowledge: Your tags act like little hooks that can be used to pull together information from sites like Technorati, Flickr, or Del.icio.us.

Participating in a community, sharing our interests, and contributing to the collective good are all fundamentally human motivations, Smith says, and social tagging systems tap into these. Sure, it’s fun, and useful for individuals. But Smith goes beyond that to discuss potential benefits for organizations that adopt tagging. These benefits include facilitating collaboration, obtaining descriptive metadata, enhancing findability, increasing participation, identifying patterns, augmenting existing classification efforts, and sparking innovation.


The New Rules of Marketing and PR

May 28, 2008

New Rules of Marketing & PR

Book Review
The New Rules of Marketing and PR:
How to Use News Releases, Blogs, Podcasting, Viral Marketing, & Online Media to Reach Buyers Directly.
David Meerman Scott. Wiley, 2007. 275 pp.

“Standard marketing education still talks about the 4 Ps of marketing—product, place, price, and promotion—as being the most important things. That’s nonsense,” says David Meerman Scott. To succeed on the Web under the new rules of marketing and PR, he says, companies need to focus on their audiences first. When you understand your audiences, then begin to create compelling Web content to reach them.

This book could have been subtitled: “Content is King.” The theme runs consistently throughout its chapters.

David Meerman Scott maintains the site www.WebInkNow.com. For most of his career he worked in the online news business. He was vice president of marketing at NewsEdge Corporation and held executive positions in an electronic information division of Knight-Ridder. As such, he’s uniquely qualified to critique old-school PR practices in light of the realities of the Web.

So what is the best way for PR people and marketers to communicate directly with their audiences? Learn and use new Web tools and techniques. Scott says he is continually surprised that “only about 20 to 30 percent of marketing and PR people read blogs.” And when he asks how many people publish their own blogs, “the number is always less than 10 percent.”

Try to apply the old rules of advertising and media relations to the Web and you’ll fail fail miserably, he says. That’s because we’re now in an environment governed by new rules. So marketers must shift their thinking from mainstream marketing to the masses, to a strategy of reaching vast numbers of underserved audiences via the Web.

Part I of the book explains how the Web has changed the rules of marketing and PR. Part II introduces and details each of the various media including blogs, podcasts, and viral campaigns. Part III offers “how-to” information and an action plan for using the new rules in your company.

This entire book is about search engine marketing, Scott says. Web marketing is about delivering useful content at just at the precise moment that a buyer needs it. “Organizations gain credibility and loyalty with buyers through content. Smart marketers now think and act like publishers in order to create and deliver content targeted directly at their audience.”

And how to reach those audiences? Create many different microsites—with carefully thought-out “landing pages” aimed at each target constituency. He emphasizes throughout the book to forget for a while your products and services. Focus your complete attention on the buyers of your products or those who will donate, subscribe, join, or apply.

And forget about the old school practice of “spending tens of thousands of dollars per month on a media relations program that tries to convince a handful or reporters at selected magazines, newspapers, and TV stations to cover your company.” Instead, reach the New Influencers: the bloggers, online news sites, micro-publications, public speakers, analysts, and consultants that reach the specific audiences that are looking for what you have to offer.

Case studies of people using the New Rules to their advantage include Gerard Vroomen, who co-founded Cervelo Cycles. His web site tells cycling enthusiasts compelling stories, engages them in conversation, and entertains them. “Because he uses web content in interesting ways and sells a bunch of bikes in the process, Vroomen is a terrific marketer,” Scott says.


Presenting and Tagging

May 28, 2008

I’m reading Garr Reynold’s book “presentation zen: simple ideas on presentation design and delivery.”  Reynolds discusses “really bad powerpoint” and “the scourge of the deck,” but spends most of his time on how to do things right, from preparation, through design, to delivery. The books approaches the art of presntation in terms of the aesthetics, mindfulness, connectedness one practices while meditating. “A new era requires new thinking,” he says. This book should be required reading for anyone who has to present at the conferences I attend.

Gene Smith’s new book, “Tagging: people-powered metadata for the social web,” is a geek’s dream. If you tag web content, you’ll love this book. You can sink your teeth into discussions of metadata, taxonomies, geotagging, tagging interfaces, and data models.  If you’re not a tagger (yet) you can appreciate what Smith has to say about the cultural underpinnings of social bookmarking, how and why people share media, and potential business benefits.


Digital Trends for the Future

May 27, 2008

A fascinating post by Steve Rubel at Edelman Digital: Nine Digital Trends for the Future offers a slide show and narrative explaining these concepts:
The cut and paste web
The attention crash
Digital curators
Super crunching
Collaboration
Living room 2.0
Geek marketers
Digital nomads
data leaking


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