Showing posts with label Word of Mouth Marketing. Show all posts
Showing posts with label Word of Mouth Marketing. Show all posts

Tuesday, January 25, 2011

The Digital Muscle Behind Infomercials

Jack LaLanne of The Power Juicer

The late Jack LaLanne of The Power Juicer (May He Rest in Peace)

First, we got Lean ’n Mean with The George Forman Grill. Then, we were dazzled by the Bedazzler. Oh, the 21st century infomercial has provided us with so many titillating, and downright hilarious, consumer goods.

So what, you ask, are the top-selling among them?

Weight loss remedies, exercise equipment, kitchen appliances, and skincare products.

Thanks to off-peak advertising space and late night shopaholics trolling the broadcast networks at 3am, we have… the infomercial. And yet, these days, the infomercial isn’t just saved for the 3am crowd. The infomercial has finally made it to the mainstream. In fact, by 2009, most US infomercial spending was during early morning, daytime, and evening hours and, if that’s not shocking enough, over $150 billion worth of consumer products in the U.S. are now being sold through infomercials.

Otherwise known as long-format or program length television commercials (that can often be a source of annoyance when you’d rather spy Tom Selleck’s long legs in Magnum P.I. re-runs), infomercials can last anywhere from 5-28 minutes. As Collette Liantonio says in StartUp Nation, “Short form works best for lower priced items that are easily grasped.  Products that add intellectual properties that depend on testimonials for credibility are better served by long form.” So, although the term ‘Infomercial’ has become synonymous with short-form DRTV (Direct Response Television) advertisements of 60-120 seconds in length, the idea is much the same; a celebrity, or some eager beaver in Minnesota, is just dying to tell you how much better, easier, faster and prettier your life would be if you purchased your very own Facial Flex or Tiddy Bear.

However strange some inventions, or outrageous these late-night claims may be, today we’re witnessing a shift in perception thanks to the power of social media. Sure, some of us share links to YouTube videos on Facebook and Twitter about Forever Lazy, the wearable blanket with a poopie pouch, because it makes us laugh, but far more of us are charging our credit cards to purchase these items because we just can’t resist the comfort, and the humor, of owning a Snuggie or a pair of, you guessed it, Pajama Jeans.

Pajama Jeans

Pajama Jeans

The evolution of the infomercial in the digital space is this: the ability to rapidly discuss and disseminate these advertisements via YouTube, Facebook, and Twitter.

Why – and how – has the infomercial spread so rapidly throughout the digital domain?

It’s not exactly rocket science. Almost every successful consumer social media campaign is paired with paid media to complement the strategy. The key is to craft the strategy carefully. Is it the holiday season when families are holed up watching television after gorging on turkey and stuffing? Insert a well placed advertisement for Pajama Jeans on the Food Network.

Certainly the product must appeal to the masses, but the strategic placement of the content is crucial. In addition, the ability for the infomercial to be easily shared on social media networks and channels clearly bodes well for the product and the platform. In addition, offices thrive on ridiculous ‘water cooler’ chatter, so, even if Snuggies or Pajama Jeans seem downright silly, they’re also a surefire way to get people talking.

Once they talk, they think. Once they think, they just might do.

Today, marketing executives and entrepreneurs may consider the viral potential of their infomercial in the online realm unlike ever before and, because infomercials now reach audiences beyond the 3am crowd and the television set, that means new opportunities for products and marketing.

Whether the product is campy or quotable, the ability to encourage a meme is evident. Once upon a time, infomercials lived in a vacuum of insomniacs and those that generated WOM attention were few and far between, but put Jack LaLanne, the He-man of Health, on TV to talk about The Power Juicer and you might build some buzz. After all, the charismatic man was seventy-one, full of energy, and jacked like a weightlifter on the Venice Boardwalk. Or, invent a handy product like the Magic Bullet and produce a corny sitcom infomercial that’s so awful you’ll be compelled to keep watching just to see much worse it can get. In the past, that might be where the spot began and ended. Now, Jack (and his brawny biceps) is immortalized on YouTube.

Today, almost every quirky infomercial gets play. Given this online environment, the age old adage, “Nothing kills a bad product like good advertising” doesn’t exactly apply anymore. So, whereas, The George Forman Grill was a quality product that earned WOM, Pajama Jeans and Snuggies don’t necessarily need to be good products, but they’ve succeeded in part because they’re quirky and notable. Let’s face it, we’re knee deep into an age when corsets have given way to Juicy Couture (with their own pink track suit featured at the Victoria and Albert Museum in London). The design, development, and dissemination of sportswear’s ultra-comfort have reached new heights or, as some might claim, lows.

What’s most fascinating about these crazes, however, is not the extreme level of comfort being sold to, and sought by, the consumer, but the speed by which an infomercial spreads to the online realm creating a veritable Laugh Factory of jokes (Is that an adult onesie?). As Inc. Magazine explains: “An infomercial should get people talking about your product—for better or worse. Shake Weight founder, Johann Verheem, found a surprise hit with his infomercial, which has been viewed millions of times on YouTube and lampooned for its sexual innuendo on Saturday Night Live.

“It’s not just that sex sells, but one of the other things very important in direct selling, in infomercials, is that a product looks different enough for someone to stop and watch it.” In addition, according to a recent New York Times article, 95% of Snuggie sales are derived from brick-and-mortar stores. “Many entrepreneurs consider an infomercial like an audition for shelf space in big-box retail chains, which is extremely competitive to get,” the NYT explains, “That’s why it’s important to position your infomercial to give it the greatest chance to be picked up by a national retailer.

Steven Marcus says that one crafty tactic employed by entrepreneurs is to launch the infomercial campaign in the hometown headquarters of a retail chain. “Let’s say they want to get it in Walgreens or Wal-Mart. They buy airtime in the home town of the corporate headquarters where the buyers can see it,” he says. “The [executives] see it on the air for a while, and they track down the guy with the product.”

So, while infomercials appear to be the catalysts for social media chatter, strategic placement is critical.

Everyone knows that Americans want comfort, convenience, and conversation. When I got my own pair of Pajama Jeans, I was beside myself with joy. Now, I can stroll into the office and model them for my curious co-workers. It was an easy gag. Or was it? Yes, they’re comfortable and, yes, I actually like them. I’m even wearing them now. Would I prefer a more well-placed pocket? Sure. And this is why I blog. I know that once I write this, I will post it around the internet and send it to Pajama Jeans because, just as their infomercial influenced me, my blog posting will influence them.

It’s a digital win/win.

Now hand me my Snuggie. I’m feeling Forever Lazy today.

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Wednesday, November 10, 2010

3 Reasons You Should Care About Multicultural Social Media & 3 Tips for Multicultural Social Media Success

Multicultural is the anti-thesis of the become like us phenomena. It turns assimilation on its head, upside down.

Multicultural: According to Webster of, relating to, reflecting, or adapted to diverse cultures.

Diverse: According to Webster, the condition of having or being composed of differing elements : variety; especially * : the inclusion of different types of people (as people of different races or cultures) in a group or organization.

By its very definition Multicultural Social Media looks at difference and acknowledges, we are not all the same. There are cultural, linguistic and identity politics that drive us. They inform our purchasing behaviors and preference. They have an impact on how we relate to each other and the world.

In a few hours, I’m going to be joining some amazing folks at Social Media Atlanta in what promises to be a fascinating conversation about Multicultural Social Media.

There are so many layers to this conversation, I almost don’t know where to begin. So, I’ve decided to begin at the beginning (like Julio Iglesias says) with three reasons why folks should care about multicultural social media.

#1- Population:

US Census Bureau US Population Graph

US Census Bureau US Population Graph

In May of 2009, money.CNN.com published a piece called Minority Populations on the Rise.

“The nation is becoming even more diverse: More than one third of its population belongs to a minority group, and Hispanics are the fastest-growing segment.

The U.S. Census Bureau reported Thursday that the minority population reached an estimated 104.6 million - or 34% of the nation’s total population - on July 1, 2008, compared to 31% when the Census was taken in 2000. Nearly one in six residents, or 46.9 million people, are Hispanic, the agency reported.”

According to that report, the break down of the U.S. population was as follows: Hispanics 15.4%, Blacks 13.5%, Asians 5%.

These were the numbers in 2008. A few months ago we just completed the 2010 census. Although the results of the census are not yet tabulated, many anticipate that the results will show an even greater increase in the minority population.

#2- Money: The second reason that you should care about multicultural social media is money. The demographics alone are striking. However, add to that the estimated spending power for these groups and you have a very compelling case that any brand would be foolish to ignore. According to a post in Mashable by Jessica Faye Carter earlier this year, that 34% has an estimated spending power of over $2 trillion. That’s nothing to scoff at. It represents a tremendous economy opportunity for brands.

#3- Future: If the present state analysis is not enough for you, then consider the third reason you should care about multicultural social media - this is the future. As I previously mentioned, the demographics of the minority populations in the United States continues to grow. This trend is not going to stop. Projections for 2050 show the white population in the U.S. at just slightly more than 50%.

US Department of Labor Projections for US Population

US Department of Labor Projections for US Population

Two years ago the Washington Post ran an article highlighting that according to the census, nearly 25 percent of children younger than 5 are Latino. That was two years ago. That cohort is moving up through the age distribution making each group that it passes through more Hispanic. Moreover, this is not just a blip on the screen. According to Jeffrey S. Passel, senior demographer at the Pew Hispanic Center “Hispanics have both a larger proportion of people in their child-bearing years and tend to have slightly more children.” Passel is co-author of a Pew study that predicts that the Hispanic population will represent 30 percent of the total US population by 2050.

Our society is continuing to grow more and more multicultural.

3 Tips for Multicultural Social Media Success:

I promised you three tips for multicultural social media success, so here they are.

#1- Engage in the communities that are being created.

For a long time there was a myth that pervaded the social media space. Many people believed that multicultural communities were just not online, that the digital divide kept these communities from engaging in this space. The research and case studies that we have seen over the last two years have truly dispelled that myth. It has become clear that multicultural communities exist in social media and in fact in many instances engage at higher rates in this space than their white counterparts. Brands that are not engaging these communities in social media are missing out on a tremendous opportunity. Go find the influencers. Go have conversations where these communities exist.

#2- Honor and respect the communities, be careful of stereotypes and be mindful of the value exchange.

One of the most important things that brands in the private, government and non-profit sector can do when trying to engage folks in this space is to honor and respect the communities and their respective traditions and values. A person does not have to come from that community to engage with the community in social media. However, there are several pit falls that someone who is not from the community should be wary of, first and foremost among them replication of negative power dynamics that exist in the real world.

a- Do not expect that the messages that you have crafted for other audiences will resonate in this space. Remember multicultural social media looks at difference and acknowledges, we are not all the same. Therefore, the way to engage these communities will not be the same cookie cutter approach that is used with other audiences.
b- Ensure that there is a value exchange. It is important that brands who come into these communities do not come to just ask for things from the community but that these brands are ready to invest and ensure that there is a value exchange.

#3- Keep it real and be sincere.

Multicultural social media is an exciting, tough and complex conversation to engage in. There are several brands that are leading the charge and investing in multicultural social media and there are several success stories to point to.

However, there is still a very real back lash to contend with. There are some folks who still see multicultural as a dirty word, despite the tremendous opportunity it represents and this is not lost to those of us who work in one capacity or another in multicultural social media. When engaging multicultural communities in social media, brands should be ready to have honest conversations about this.

This is not about pigeonholing. This is not about creating ghettos in cyberspace.

This is about:

1- acknowledging the fact that there are cultural, linguistic and identity politics that drive us as human beings
2- understanding that the growing “minority” populations are creating communities that celebrate those preferences online with or without you
3- brands realizing that there is a tremendous opportunity in reaching out to those multicultural communities and influencers online

We are more than just the sum of our parts and we are more than just a part, but this is definitely a part of the conversation that presents a tremendous opportunity for engagement.

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Tuesday, November 9, 2010

Two Important Discussions at WOMMA Summit

womma_summit

Attendance is up this year at the upcoming WOMMA Summit. I attribute that to a great agenda and teh coming of age of social media in major brands. I serve on the board as past president and you would expect me to be bullish about the organization and its events. I am. No apologies there. But I could not endorse something that had a good chance of disappointing people. That would be bad.

You can see the full agenda here (IBM, Harrah’s, Motorola, HP, Ben & Jerry’s, Unilever and more).

There are two conversatiuons that will happen at the Summit that I am looking forward to sparking and participating in…

Which Marcom Disciplines Do What In Social Media?

Where is a brand manager to turn? If they want an authetically “social” solution to drive sales, lead generation, improve brand performance, should they turn to their advertising or media experts, their communication professionals, their word of mouth specialists? All the happy talk about “who owns social media? No one. The CEO. The customer,” is really just a sound bite. When it comes to applying social media to move enterprise or brand business, it is ridiculous to think that media agencies, ad agencies, PR firms, social media consultants, internal marketing and communications teams are all offering the same solutions. They aren’t. It’s time to unpack what “social media” truly is at least in the marcom space and start to recognize the differences, benefits and drawbacks of each disciplines’ approach.

There will be all types of groups representing different discipliens presenting at the WOMMA Summit. I am particularly intrigued by this session:

Redefining the Role of the Media Agency

Media agencies are struggling to find their footing in the social world of earned media. Erin Matts, Chief Digital Officer at OMD US, believes adaptability is the key to survival. In this session, Matts will explain how media agencies need to adapt to the new consumer engagement paradigm, and stretch beyond the concept of buying ad time towards a new mandate of developing and placing entertainment content

What Are True Best Practices Today?

Once you master the fundamentals of strong ethics, some reality-based measurement model, you are left with a rather subjective discussion around ‘best practices.’ Set aside the platitude manifestos that wax poetic about “transparent dialogue,” two-way conversation, listening, engagement vs. messaging - that stuff is a given and not all that helpful once you “get it.”

We’re talking about “best practices” to achieve a business result. Case stories are the best way to talk about best practices. This is where true experience gets documented, not theory. The WOMMA team has lined up a steady stream of case studies as the primary sessions.They have applied discipline to how these stories are told to ensure that they start with business objective and end with evaluation. These cases will reveal each group’s true best practices.

On top of that, there is a qualitative slice of the “best.” in the form of the WOMMY Awards. The board re-invented this award with ‘tooth’ and discipline last year. You really must reflect impact and a “best” execution to win. I give loads of credit to board member David Rabjohns, CEO of Motivequest, for this reinvention. It is largely due to his seriousness and marketing discipline that I place so much value on the WOMMY’s as a choice forum for best practices.

As many of us grow and scale our businesses around social media, we need a forum of like-minded inventors who are writing the rules of these new disciplines: word of mouth marketing and social media marketing and communications.

I am going to be part of that forum and hope to learn and share a lot.

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Tuesday, October 26, 2010

Governments and Wikipedia

What I am about to say is going to be confronting to some of you. To others this may be obvious, common sense. The days of total control over message are over. If these days ever existed, they are no more. Social media has created a world where a brand no longer gets to push out its message on a passive audience. Instead, through social media folks are engaging in conversations about brands with and without the brand.

The question then becomes: Is a brand present in the conversations that are happening about it and therefore able to share its point of view? When a brand is not present, there is a much slimmer chance that their point of view will be heard. This is true of social media in general and I hope to explore the impact of this in different spaces in the weeks and months to come. However, today I wanted to explore the question of how this relates to governments and Wikipedia.

Earlier this year, the European government found itself in a conundrum. A newspaper published a story which quoted the European Commission Vice-President Antonio Tajani as saying that tourism is a human right. Shortly thereafter, Wikipedia picked up this third party information and stated it as a truth. When his team tried to correct the information on Wikipedia by adding the text of his speech, the page moderators blocked them. Given Wikipedia’s construct, the third party information was considered more reliable than the original source. Thus the conundrum. The information was incorrect. However, Wikipedia strongly discourages organizations from editing organization-related articles, citing conflict of interest.

If there are factual errors, organizations are asked to:
a. Leave a note on the article’s talk page
b. Post a comment on the help desk
c. Contact Wikipedia via email

If an organization insists on editing an article directly, the organization must declare their interests on their user page(s) and on the talk page of the article they edit. The conflict of interest guidelines must also be adhered to, as must the neutral point of view and verifiability. As it relates to verifiability, the changes must be backed by reliable sources, which in the Wikipedia world means third-party sources. That is why in this case the original speech was not considered a reliable source whereas the newspaper article was.

What then is the solution? In my opinion, the solution is as follows:

1- Establish long-term relationships with a grassroots community who will contribute the missing positive information to the article.

2- If an organization is very keen on immediately changing information that is not factually correct said organization could leave a note on the article’s talk page. They could also post a comment on the help desk and they could contact Wikipedia via email.

Wikipedia is supposed to be a grassroots tool that collects information from reliable, impartial sources. In theory, if a brand has invested time engaging folks and having conversations about its win with the grassroots, this community in turn will be posting said information onto platforms like Wikipedia.

Is this a silver bullet?

No.

However, in this modern age of online WOM I truly believe that this is the best way to ensure that social media tools like Wikipedia reflect the brand’s point of view. A brand, government or otherwise, is in effect present in the conversation about it by engaging the community, making a long term investment in it and ultimately handing over control.

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Friday, October 22, 2010

The Cult of McRib: How Fake Ribs Drive Real Product Buzz

It was during the summer of 2006 when I sat down with my first McRib. Over the next two weeks, I ate at McDonald’s seven times, downing eight rib-resembling sandwiches (I clearly wasn’t having the best day on one of those visits). Despite the obsession, the McRib hasn’t crossed my mind often in the four years that have passed. Until ten days ago as I was browsing my Twitter feed …

McDonald's confirms the McRib's triumphant return on Twitter

McDonald's confirms the McRib's triumphant return on its official Twitter account.

The McRib will be gracing menus in less than two weeks and fans have wasted no time leveraging digital media to celebrate its resurrection. There’s the handy McRib Locator to map sightings, @McRibWatch on Twitter for real-time updates while on the hunt, and more than 200 Facebook groups dedicated in some way to the elusive sandwich – all unofficial. All this for a sandwich available for a limited time “because people get tired of it,” according to the McDonald’s U.S. president.

Parables of cross-country travel and sandwich-smuggling have framed the sandwich as a cult product, appealing to a cadre of obsessive fans with most consumers left to smirk (or gag). However, in an era of heightened word of mouth and social media broadcast, a growing group of McRib fans is finding its voice. While McDonald’s’ most infamous sandwich has a history of online success spurred by farewell tours and a “Save the McRib” campaign, this is the first opportunity social media users nationwide have had to be vocal.

Aside from a tweet here and a Facebook post there, the buzz hasn’t been driven by McDonald’s – it originated from the cult. Is it possible then, after 30 years of cult success and purported esoteric status, this is the year the McRib emerges from the underground? I think so.

Why? Word of mouth qualities inherent in the product – driven by social media. Between the pickles, onions, and hoagie roll is a sandwich that has buzz (among other dubious ingredients) in its DNA. While some of its success has been accidental and some has been random, three fundamental qualities of the McRib that have helped McDonald’s spur genuine word of mouth in 2010 – and might help you generate buzz too.

Intangibles make the McRib buzz-worthy (Photo credit: Electric Mayhem)

The product's marketing intangibles make the McRib buzz-worthy.

1. The McRib is like no other. Clearly a fact that can’t be argued. Though, I don’t mean because the sandwich is a cultural oddity – the sandwich is remarkable in both composition and proposition. Even from a quality standpoint, the McRib is no lobster tail, but lobster tail is already lobster tail – what’s the point? In an online landscape, uniqueness can spark WOM, but it’s only the beginning.

2. The McRib doesn’t pretend to be something it’s not. It’s not a hamburger, it’s not for everyone, and, heck, some people don’t even think it’s pork. No matter, because McDonald’s embraces an inadvertently crowdsourced mythos of the sandwich that grows every time it returns to the menu. While many products aren’t received with such foolhardy affection, the key is authenticity and it is fundamental to the survival of any product or service online.

3. The McRib is no stranger. Not only has McDonald’s embraced the sandwich’s following, the company feeds its fans through interaction and responsiveness. While engagement is a no-brainer at this point, one-on-one interaction is still rare for organizations of any size. Obviously, social media channels allow for an opportunity to strengthen a bond and delight an acknowledged customer. Any organization on social media must engage - it’s not on a wish list, it’s on a must list.

Setting the landscape for buzz includes product or service uniqueness, authenticity, and responsiveness. While these aren’t the only qualities necessary for generating word of mouth, it’s essential they’re baked – or molded – into a product or service.

What other product attributes do you think are necessary? Do these principles apply to your organization? Answer those questions while I gas-up my car – a McRib was just reported in Falls Church, Virginia about 10 miles away.

Image credit: Electric Mayhem.

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Thursday, October 14, 2010

Not Your Father’s CRM…This One’s Social!

socialcrm

We have been hearing a lot about the idea of Social CRM or sCRM as the next big wave in the customer relationship lifecycle. As more and more of us move our interactions not only with each other, but with brands to the online arena, many brands are scrambling to put in place the people and processes required to engage with today’s social customer.

I recently read that the social customer is the one who owns the relationship, and that it is the job of the brand to earn the customer’s trust. While this may not seem like a far departure from traditional customer relationship management (CRM), the process of managing, massaging and nurturing these relationships has shifted dramatically.

So what is Social CRM and how does it differ from Traditional CRM?

SearchCRM.com defines CRM as follows: “CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way.”

Where I think traditional CRM fails is that it is too focused on the technology. Email is usually at its core and the focus is mainly on a one-way push of information, with the overarching goal being to grow the customer’s profile information. Engagement is limited or virtually non-existent, and today’s savvy customer has all but grown numb to canned-SPAM and advertising, which traditional CRM can at times mirror.

On the other side, Brent Leary, co-founder of CRM Essentials, defines Social CRM as “…all about people and community.  It’s about how your company intends to participate in the ongoing conversations taking place in the industry.  How you embrace non-traditional influential people like popular industry bloggers, and social sites on the Web frequented by your audience.”

While the overall goals of traditional and social CRM are similar-find, attract, and win new clients while retaining current relationships-where I feel the two differ the most is with this idea of “participation.” Social CRM should look to empower the customer, amplify the conversation, create everyday engagement between the brand and the customer, and provide remarkable experiences that will move the customer beyond the purchase, to becoming an advocate for the brand.

We believe that social CRM is a strategic discipline that requires engaging not only the customer, but influencers in a collaborative way to drive both advocacy and lifetime customer revenue.  It is more than a type of technology, or a set of communication channels - it is a fundamental recognition that (in a connected world), growth and profitability are dependent on nurturing a long-term relationship with one’s best (and best-connected) customers.

So what are the key components of Social CRM?

  • Listening: Understanding what customers, prospects and influencers are talking about in relation to your product, service or brand is ABSOLUTELY VITAL. Using listening tools and dashboards to uncover “talkable,” important topics will not only help find, attract, win and retain customers, but will also help detect and issue or crisis before it becomes one.
  • Customer Influence Mapping: Influencer mapping ensures that you are engaging the right people to meet your business objectives and helps to develop a roster of partners and potential brand ambassadors.
  • Engagement Planning: in order to create real and sustained word of mouth, brands must create “remarkable” experiences and content coupled with everyday engagement. This will not only help to create a steady and valuable drumbeat of customer stimulation, but drives them into some level of purchase or purchase consideration and to openly share word of mouth (advocacy) that drives their social graph into both your traditional and social CRM systems.
  • Measurement: One of the keys to succeeding in social CRM is experimentation and iteration. Brands will succeed by trying lots of things. But they need a reliable measurement model to know if they are winning or losing on any given day.

At the end of the day, social CRM is all about creating engagement. It is about obtaining insights from your customers and influencers that will make their experience with your brand better. It is about creating a more direct way of talking and engaging with your customers with the goal of developing long-term relationships and building ambassadors for your brand.

So what have you done to create everyday engagement and remarkable experiences for your social customer? As a social customer, what are some good experiences that you have had with brands?

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Tuesday, September 14, 2010

Groupthink: How Social Media Made Coupon Clipping Cool

The Sunday circular was once a premier destination for grandparents armed with scissors at the prospect of saving $0.15 on frozen peas. I used to roll my eyes and wonder how this habit could be a smart investment of time. Then I found FatWallet.com, a site that gives users 1%-30% cash back with a few clicks of the mouse. Suddenly, FatWallet = the Sunday ads and my mouse = scissors.

It was then I realized the apple didn’t fall far from the tree and my miserly roots were exposed. Even though I was effortlessly getting cold, hard cash back on my click investment, I was hesitant to reveal this find to friends. Saving money hasn’t ever had its time in the spotlight. Microsoft tried to build momentum around the concept with Bing Cashback, but the program never took off and sang its swan song July 30. Geek got chic, so why couldn’t frugality?

And then, just when parsimony was destined to be a virtue relegated to secrecy and smoke-filled rooms, along came Groupon.

Groupon Social Media Ad for Forth Worth, TX
Socially-Driven Deals Sweeten the Pot

It was a slow build at first; Facebook ads touting half-priced cupcakes and killer deals at pizzerias. Sign-up? Try and stop me! Eventually, loads of people were learning about new, interesting, and off-the-beaten-path restaurants every morning –with the prospect of eating out at deep discounts. Formula for success, right?

No, definitely not. These deals were still coming to inboxes where the cupcake-consuming cadres were drooling over emails in the privacy of their cubicles. Ho hum. Just another cooperative coupon program that will go the way of Entertainment Books – but at least with those you get a decent doorstop.

The reality was (and still is): coupons aren’t cool. Not only does the cost-benefit seem questionable, but they’re also currency of the lame, cheap, and self-conscious parts of our nature. For those reasons, they’re awkward. Throw down a BOGO on a date? Unthinkable. Chop the price of your haircut by 50%? Prepare to be judged, possibly marred. Whip out a coupon amongst a group of friends? Not unless you can withstand 12 sets of rolling eyes.

Why then are we comfortable haggling on eBay, searching exhaustively with Kayak, and tangling with the Priceline Negotiator for a cheap hotel room? The answer is simple: social context. This penny-pinching is done without looking anyone in the eye – neither customer service rep nor best friend. This phenomenon can be surmised with the following equations:

Private consumerism + promo code = WOOT!

Public consumerism + dog-eared coupon = BAIL!

Given this historic accumulation of ridicule, Groupon had to do something drastic. Sure, the online discount service was offering unthinkable deals for intriguing places, but it still had to beat the Shame Game and move deals from inbox to outgoing. Luckily it had an x-factor: digital media.

Groupon gave the age-old discount a fresh coat of warpaint in the battle against MSRP. Popular bistro? New bar? Concert tickets? All deals to share with friends and facilitate group outings over Facebook, Twitter, and other networks. To encourage conversation, Groupon played another brilliant card by incentivizing users to share deals via a link eligible for account credit if friends got their Group-on. More recently (and awesomely), the program released mobile apps that simplify the process of buying, sharing, and using deals. Not only does this add value for users and facilitate buying (it saved my freakin’ payment info!), it distances a Groupon even further from the rough-edged wad in your back pocket.

By embracing digital platforms and sparking word-of-mouth, Groupon has achieved great success; not only in making coupons acceptable to the social masses, but also expanding nationally and globally. In a textbook case of imitation as a form of flattery, that success has spawned numerous socially-driven deal sites from programs as niche as wahanda and as mainstream as foodie resource Yelp. With Groupon, future generations have another word for coupon – one that doesn’t come with a side dish of chagrin.

As Groupon continues to grow and its competition multiplies, one must wonder: Are we molding consumer behavior around the daily deal? Possibly, but that’s a separate blog post. In the meantime, enjoy savings free from shame - and without the paper cuts.

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Sunday, August 29, 2010

Taking the Plunge into B2B Social Media

plung

In my 7+ years working with professional services firms and B2B brands, I’ve experienced first-hand, the conservative nature of these companies and their marketing practices. So imagine my surprise in 2009, when these generally risk-averse companies began flooding my inbox with requests for counsel on the implementation of social media programs.

B2B marketers, long considered by some to be two-steps behind their B2C counterparts, are beginning to dip their toes in the unfamiliar waters of social media, as they quickly realize how they can pinpoint buyers, generate leads, and provide more accurate program measurement.

Even as social media use in B2B marketing continues to grow—57% of B2B marketers are currently using some form of social media in their business, up from 15% in 2007¹–many in the C-suite continue to have their doubts. For the past two years I’ve heard from clients, “social media is only for young people,” “my customers aren’t reading blogs,” “my clients aren’t engaging in social media,” “it’s not worth the risk,” “I can’t measure it,” and my personal favorite, “social media doesn’t apply to B2B.”


Of course social media applies to B2B, and in fact, it can be even more critical to the success of a B2B brand that is already operating against a smaller customer pool than a B2C brand. Couple that with the fact that most B2B brands are selling products and services at an exponentially higher price to customers who base the majority of the buying decisions on the advice of peers and colleagues—Forrester Research reports 84% of respondents to a recent survey listed Peers and Colleagues (WOM) as the main source for purchasing decisions, compared to 69% from Vendor Web sites and 66% from traditional media.

The benefits of social media far outweigh the perceived risks. Current and prospective customers are already talking about your brand online…everyday. The greater risk to your brand is in becoming a sideline spectator, allowing misperceptions, falsehoods and potential brand ambassadors and champions engage in conversations around your brand, without your participation or recognition.

So where do you start? Unfortunately, I have witnessed a number of B2B marketers rush to launch social media programs by quickly throwing up a blog, Twitter handle and Facebook page, usually with the same result—zero visibility, zero engagement and zero conversion. It’s not that their efforts shouldn’t be applauded; I am all for taking a big plunge as opposed to the toe-dipping approach that most B2B brands take to social media implementation. But there needs to be a cohesive social strategy put in place BEFORE that first “Tweet” is sent out.

Here is some guidance on getting started:

Set REALISTIC Goals and Objectives – Incorporating social media into your marketing mix goes well beyond identifying the channels and tactics you want to use. The most successful programs begin by identifying your target audience and tying them to the businesses objectives (lead gen, brand awareness) and expected outcomes.

Listen – Monitoring your brand—and competitor brand—mentions across the social web, allows brands to quickly identify target audiences, potential influencers and brand ambassadors, and even more importantly, brand detractors and misperceptions. A good first step in any program is incorporating listening to help identify your audience, solidify objectives, and uncover potential channels that may not have been readily apparent. There are a number of social media monitoring platforms out there to get you started such as Radian6 and Sysomos.

Do Your Homework – In my experience, B2B marketers, and the C-level execs signing the checks, need a lot of evidence and backup—case studies, measureable results from previous campaigns—before signing off on any social media program. Start by taking a look at what other B2B brands and competitors have done in the space to get an idea of what has worked, and more importantly, what hasn’t. Of course, it’s never a good idea to simply duplicate what others are doing, but it’s important to know the social media footprint of your biggest competitors and aspirational brands.

Content Strategy - Content is the fuel that drives any successful social media engagement. The instant gratification mindset and digital proficiency of B2B content consumers means they’re demanding more and more content, faster. And not just any content, but ideas, information, best practices, advice and expertise they find relevant and helpful for answering questions they have about problems they’re trying to solve. While starting a blog, Facebook page or Twitter handle may require little time and effort, maintaining those sites with regular and relevant content can prove to be difficult. For time and resource strapped marketers, a good first step in the development of a content strategy is to conduct a content audit—identifying internal resources (white papers, bylines, case studies, videos, customer testimonials, etc…) that can be repurposed into social content. Another key step is to identify the thought leaders or subject matter experts from within the company that are willing to make the time and resource investment in the program.

Measure – No different from any other marketing activity, creating effective program measurement and calculating ROI can be a challenge. Effective measurement models generally assess the impact of social media engagements in three key ways, focusing on brand awareness, preference, and action. As important as it is to set benchmarks at the beginning of any engagement, it’s equally, if not more important, to continue to evaluate metrics throughout the program to not only assess how far the campaign has moved the needle, but to also allow you to course-correct and make adjustments if certain tactics may not be working as well as others.

Take the Plunge – As I mentioned at the top, current and prospective customers are already engaging in conversations about your brand. The importance of meeting and engaging with your audience where they are gathering has never been more important. But remember, building an effective social media program can take some time to really develop and grow.

What are some challenges you have faced in developing a B2B social media campaign?

¹ Source: Association of National Advertisers, July 2009

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