Social Media Leaders Build on Momentum

I continue to be startled by the widening gap between companies breaking new ground in social media and others who continue to dither or resist any involvement. Recent campaigns by innovative companies like Best Buy and Coke brings this separation into even more  stark contrast.

Best Buy has long been an innovator in the area of communications, so their new holiday campaign should not be a surprise. The most interesting element is perhaps the launch of their Twelpforce Twitter account – which is staffed by 2,500 sales and support folks who are available to respond to consumer questions or comments. The Twitter team/link is being promoted on a new television campaign – replacing the website address of past years. Best But is also leveraging its Facebook page to make it easier for users to ask friends for product advice, or even send email tips to relatives of your interest in certain products. In a cool twist, the company is introducing 25 tiny URLs to encourage users to send select product tips via email and social networks. Check out this New York Times article on the Best Buy holiday campaign here.

Coke is another company trying something new. Never one to do things on a small scale, the company is launching a campaign called Expedition 206, which involves recruiting amateur “Happiness Ambassadors” to travel the world through 2010 and document their quest through videos, Tweets, blog posts and so on. The final selection is being left to consumers. Check out a summary of the campaign here. Coca-Cola is no stranger to social media and already has one of the most popular Facebook pages (which apparently was created by two users) with almost 3.9 million fans. (As a side note on Coke’s bumpy path to social media enlightenment, check out this AdWeek post. )

Gap is another company with a promising holiday campaign. They are partnering with Yahoo to encourage consumers to record and send video greetings via a mobile recording studio in NYC. The clips – complete with options for customized holiday music – can then be posted and forwarded using the full range of digital channels and social networks. Consumers will also be encouraged to rank video greetings, and the most popular will win prizes. I also noticed Sears is launching a holiday-themed networking site and using widgets and text messages to flag holiday promotions. Even a traditional retailer like Kohl’s is jumping into the fray. So this isn’t the usual high-tech cast of characters.

My point here isn’t really to argue whether these campaigns are compelling or even very creative, and we’ll have to see if they deliver on their marketing objectives. But at least these companies are trying to respond to the shift in consumer habits and fitting social media into their marketing mix. True, some of these efforts may be clumsy and even ill-advised, but better to try and fail – and learn along the way – than to stubbornly stick with outdated and dubious tactics. Nobody said progress was pretty.

 

Is Social Media Really About the Deals?

A new study of U.S. consumers by Razorfish suggests that old-fashioned discounts and promotions are the key to engaging online consumers. Even more shocking, the data implies that consumers favor deals over conversation – the mantra of social media – and aren’t as passionate about brands as previously believed. Like others – including the folks at Razorfish – I was somewhat surprised by this finding, since the ethos of social media seems to shun the hard sell and emphasize authentic relationships over transactions or brand profiles. Razorfish’s analysis on the data suggests otherwise: While conventional wisdom holds that consumers don’t want brands encroaching on their social or personal lives, this is far from the truth. The myth of marketing-free social spaces is just that. The “dialogue” between brands and consumers is not only frequent, but also welcome. Check out this post here for a good discussion of the findings, and another interesting take from Neville Hobson here.

If you look beyond this headline, there are other interesting findings that all confirm the Web is dramatically transforming how consumers interact with brands:

• Consumers’ online experience has a big impact on their brand perceptions and purchase decisions – the digital experience (via branded activities) is now the message, and driving awareness or impressions is no longer sufficient
• Consumers want to interact, regardless of whether brands are willing participants: 73% have posted a product or brand review on a web site like Amazon, Yelp, Facebook, or Twitter
• The Web is not only a place to build a brand, it can also make or break it (65% of consumers report having had a digital experience that either positively or negatively changed their opinion about a brand – of those nearly all said their digital experience influenced whether or not they made a purchase)

Whether or not this survey is representative, I think the lesson here is that the rapid evolution of social media impacts not just technology or economics, but also consumer habits and norms. Communication and marketing professionals need to avoid retrenching behind dogma or cherished views and be open to new trends and ideas – even ones that may clash with tradition or prevailing wisdom. I suspect some social media pundits will attack or ignore this survey and defend the need for “pure” online conversation devoid of blatant commercial interests. That’s their right, but it would be missing the point. After all, isn’t the core power of social media that it gives consumers the power to drive online conversations and commerce? Maybe we need to listen to them a little more carefully.

More Than Ever…The People are the Brand

Communication guru Shel Israel touches on a compelling idea in a recent post on the relationship between personal brand(s) and corporate brand(s). I was particularly drawn by his comment on how people are becoming a central element of the corporate brand: “Personal brand is changing corporate and product brand in an increasing number of cases. This changes who shapes brand and why and how it is done. It changes how markets perceive brands and this is an area where little thought and conversation has emerged so far.”

Israel argues that traditional marketing messages focusing on “big brand” themes positioned through a corporate and/or homogenous voice are giving way to increasing personalization…and the humanization of corporate brands. This is being fueled by the advent of social media platforms that are based on individual participation and contributions. It’s interesting  to note Israel uses Dell as an example – which I experienced first hand as a member of the Dell social media team. Dell started to turns thing around when it started listening – really listening – to the online conversation but also because individual employees jumped into the conversation. All the platforms – both internal and external – were populated with real people who answered questions, shared ideas and tried to resolve complaints. Some of them – like Direct2Dell moderator Lionel – became key representatives of the Dell brand online.

This trend toward personalization is likely to gain momentum. After all, companies are engaging individual leaders (and sometimes employees) as blog authors, Facebook friends and Twitter voices.  Videos and podcasts feature company experts and guests in informal settings. Discussion boards are hosted by groups of company experts, some with large followings. Even websites are less impersonal, often featuring profiles and individual guides or hosts. As Israel notes, marketers are eager to leverage this movement towards the humanization of brands – since it’s inherently more credible and resonant with customers – but the very notion of diverse, individual voices makes this difficult. And that’s not a bad thing. For better or for worse, company reputations and identities will become more closely identified with the collective actions and voices of their employees, rather than paid advertising or impersonal PR campaigns.

Two More Reasons Companies Need to Pay Attention to Social Media

If companies needed any more reasons to get off the sidelines and start thinking about social media…

Reason #1: Staying Ahead of New FTC Regulations

The recently announced FTC guidelines on testimonials in advertising provide the first specific guidance from government on endorsements and disclosure in social media. Bob Pearson from the WeissComm Group suggests companies will be held more accountable for the behavior of their employees, so they should familiarize themselves with the regulations and ensure they take steps to limit their liability. In effect, companies will no longer be able to skirt (or flaunt) informal Web etiquette and will be held responsible for their online communication activities. Bob suggests all companies – big or small – follow this short checklist:

1. Require truthfulness and disclosure in all social media outreach

2. Monitor the conversation and correct misstatements

3. Create social media policies (with clear transparency and disclosure rules) and training programs

[Full disclosure: Bob is a friend and my former boss at Dell.]

Reason #2: Getting Ready for Real-Time Search

In recent weeks, there’s been plenty of online discussion about the emergence (and importance) of real-time search, which captures live updates on networks like Twitter and Facebook. A recent New York Times article posits that announcements by Google and Microsoft that their search platforms will include Twitter is just the latest evidence of this trend. (FYI: Facebook public updates will soon be available on Microsoft’s Bing.) Though the NYT article focuses on the potential revenue implications of real-time search, companies would do well to also study the PR impact of this trend on their own search results.  BusinessWeek recently posted a good summary on this topic.

What I thought was the most insightful take on this issue came from Charlene Li at Altimeter, who in her post on the topic writes: This trend towards micro media requires companies to pay attention to the real-time and social web for marketing, support, and competitive strategies. Here’s why. First, Google and Bing will filter search results based partly on timing and authority (as well as location.) Li argues this means consumers will more easily be able to influence search results through Twitter content, links and re-tweets. Conversely, companies will no longer be able to rely on their traditional page ranking, fueled by their SEO strategies. So even for companies not active on Twitter, their customers (or critics) can more easily influence search results related to the company in question. Li suggests a recipe to address this shift in search strategy:

• Develop a nimble, comprehensive listening strategy that includes social networks and incorporates internal processes, roles as well as robust analytical tools
• Change the marketing mindset that says generating more positive (self-serving) content will tilt the search balance, since the search filters will leave out irrelevant messages with no authority or following
• Marketers must focus on building relationships with people who have influence and authority on networks like Twitter – which means fostering relevant discussions with consumers and followers/friends

Even for companies with a defensive mindset who hesitate to jump into social media, these and other developments suggest their time as spectators is coming to an end.

Customer Reviews Becoming The Killer App

It’s become accepted dogma that in the booming internet economy customer rankings and comments heavily influence brand reputation and purchase decisions. (Check out one recent study here and another by Forrester here, as well as an article on the phenomena in the New York Times .) A story last week in BusinessWeek suggests that for Amazon.com – the pioneer in customer reviews – the consumer ratings have become a key reason for the site’s popularity, and the company’s enviable reputation. Over the years, the online retailer has expanded its community feedback features to include personal “wish lists” (that can be shared) and various discussion hubs to facilitate consumer conversations on broad or specific topics. (Check out the variety of review options using the example of the new Microsoft 7 OS here.)

The BusinessWeek article argues that this trove of consumer generated content (in this case reviews) has become a main attraction for viewers – and an important competitive advantage for Amazon.com. With one of the world’s largest collections of consumer reviews, the site is a magnet for users intent on getting information or browsing for products. The article describes the new breed of “information-based shoppers” as a major shift in the retail environment, reflecting a stronger focus on due diligence (largely through the internet) and increased cynicism about traditional advertising or marketing. The focus on finding impartial information and value fits it perfectly with the emergence of a new consumer frugality.

There are numerous lessons here for retailers – and communication professionals – but perhaps the most important is to remember the outcry when Amazon.com originally decided to post the consumer reviews – both good and bad. This was seen as heresy to some marketers intent on presenting their products under the best light and stifling any negative feedback. While there is still debate whether a product can survive negative reviews, there is little discussion about the importance of allowing consumer comments and rankings.

IKEA Backlash Shows Two Sides of Fan Passion

The recent criticism aimed at IKEA in recent weeks – much of it on Twitter – is just the latest reminder that companies change their iconic brands or products at their own peril…particularly when they do so without consulting their most ardent fans. IKEA’s apparent misstep? Switching the font in its catalogs to the more pedestrian (some say ugly) Verdana font, from the original customized Futura. Check out  this account of the debate in Maclean’s magazine, and others in Time and a popular blog.  Keep in mind, folks, that we’re talking about changing the font – not a price or product – and only on the printed catalog, not the web platforms.

This story brought to life a few axioms we like to throw out over discussions on marketing:

• It’s great to have passionate fans, but it’s often the most committed customers that react negatively with “their” favorite brand changes
• Design and visual identity is as much a part of corporate identity as products or advertising – with fonts and logos being the focal point
• Surprising your most ardent fans with important news is rarely a good idea
• Social networks are as effective in spreading bad news as good news
• Everything matters when it comes to brand image – look, font, music, color, tone…etc.

The most important lesson here may be that companies need to consider their fan base – as much as possible – in any decision involving products or the brand. IKEA likely thought they were making a fairly innocuous change – seems very logical when you read their explanation – but they would likely have detected instant and strong opposition had they tested the idea with customers or influential third-parties. If we needed another reminder, customers  really are co-owners of the brand.

Lessons from Companies in the Social Media Trenches

Two recent surveys of leading companies point to the progress and potential – but also the challenges – of engaging in social media. Great context for those wondering  what everybody else is doing.

First up…a new survey of 400 global companies by Deloitte, which focused on the perceived benefits and potential of online communities – or “tribalization of business”. The headline of this study is: good progress and plenty of promise…but it’s tough to find the right formula for maximum success.  As the survey puts it: “While enterprises are effectively using online tools to engage with customers, partners, and employees for brand discussion and idea generation, organizations are continuing to struggle with harnessing social media’s full potential.”

Key takeaways include:

• There are signs that company use of social media is maturing,  with the notable example of a shift to consider online “lurkers” (or observers) rather than just active users in online communities
• Companies still struggle with the main obstacles of building online communities – getting users to join, stay engaged and return – and use participation as the main metric for success (the study suggests there are more useful analytics, such as search engine rank and links/citations on other sites)
• The  top business objectives for online communities are (in order): increasing word-of-mouth, customer loyalty and brand awareness

The Deloitte authors provide an interesting prescription to companies engaged in social media that reflects the need for a new perspective and approach:

• Think tribe – not market segment
• Think network – not channel
• Think customer-centricity – not company-centricity

The folks at McKinsey have also spent a considerable amount of their grey matter studying the implementation and impact of social media. One of their most interesting products is an interactive report on Web 2.0 featuring results from their annual survey of 1,700 business executives. (FYI – You may need to register to access the full report.) The survey provides a great snapshot of where companies are investing, what they’re trying to achieve and what technology they are deploying.

Too many findings to show here, but here are some highlights (I’m sticking to Top 3 for each):

• Most important technologies and tools: Blogs, social networking, wikis
• Technology/tools being used internally for developing products & services: wikis, blogs, social networks
• Technology/tools being used internally for managing knowledge: wikis, blogs, RSS
• Technology/tools being used internally for enhancing company culture: blogs, social networking, podcasts
• Technology/tools being used internally for fostering  collaboration: blogs, social networking, wikis
• Technology/tools being used internally for training: videos, wikis, podcasts
• Technology/tools being used internally for finding and recruiting  talent: social networks, blogs, videos

Not surprisingly, the mix of tools used to interact with partners and customers differs from the internal recipe…as do the objectives. In fact, it’s interesting to look at what McKinsey has categorized as main objectives for each audience:

• Partners: achieving better integration, lowering purchase costs, developing  products, solving problems
• Customers: acquiring new customers, improving customer service, developing products, helping customers interact, marketing
• (Employee objectives are noted above.)

There were a couple of surprises for me in the findings. One is the relatively low ranking for micro-blogging…which belies the hype for Twitter and similar internal applications (e.g. Yammer). The other is the low profile of “prediction markets” – which I take to include crowd-sourcing platforms popularized by Dell and Starbucks. Perhaps the most disappointing  (though not surprising) finding is that senior executives are the lowest users of Web 2.0 technology. Therein lies one of the biggest challenges for communication and marketing professionals – it’s hard to sell Web 2.0 strategies to executives who don’t use or understand the technology.

Crisis Fosters Innovation at Ford

Sometimes a crisis fosters greater innovation and risk-taking in organizations…and that’s a good thing. As exhibit A check out the latest developments at Ford, which is making some impressive strides in social media.

Ford’s comprehensive efforts include posting content and commentaries on sites ranging  from YouTube and Facebook to Twitter and Flickr. Nothing revolutionary there, but they’re apparently also allowing unusual freedom on how their content is used – notably allowing folks to share and adapt photos and videos. And they’ve recruited a number of consumer bloggers to drive their cars and provide updates – with no apparent restrictions on content. Perhaps the  smartest thing they’ve done is to develop a social media hub – The Ford Story – which acts as an online clearing house for the various platforms and features links to relevant third-party sites and content. Ford is also working to enlist employees in the online outreach, hoping most of them will act as advocates for the company and its products.

Though some critics say Ford’s recent efforts are not perfect (can they be?) you can’t argue with the strong effort and intent. In fact, Ford’s digital communication manager himself answers some of these criticisms on various blogs. Nice touch. Implicit in this campaign is an understanding that consumers ultimately own the reputation of a company…no matter how much a company would wish otherwise. Ford may become a great case study of rehabilitating a brand through dialog and crowd-sourcing rather than  just traditional marketing and advertising.

Research Confirms Social Media (Still) Booming

It’s hard to keep up with – let alone assess or interpret – the myriad statistics and reports related to social media. But a few recent studies all suggest one basic fact: Web traffic and use of social media platforms continues to boom. The discussion is no longer whether social media is a fad, but how dominant and important it has become – impacting everything from communication and purchase behavior to advertising and journalism.

One regular study of Web users by Universal McCann suggests – among other findings – that social networks are becoming the dominant platform for the creation and sharing of content for active Internet users. (By the way, McCann estimates there are now about 625 million “active” Internet users – about 1 in 3 surfers.) Other key findings: nearly 2/3 of users are managing a profile on a social network; users are moving towards the increasing rationalization of their content (across platforms); and the creation/sharing of video content is booming.

Statistics gathered by Socialnomics echo this trend. (Check out the great video embedded in this post.) There’s too many amazing stats to list here, but a few that struck me:

• 1 out of 8 couples married in the U.S. last year met via social media
• Facebook has added 100 million users in less than 9 months
• 80% of companies use LinkedIn as a primary tool to find employees
• The second biggest search engine in the world is YouTube
• 80% of Twitter usage is on mobile devices
• 34% of bloggers post opinions about products and brands

And the list goes on.

Want a real-life example? I just read an article in Maclean’s (yes, I try to keep up with news in my native Canada) with a great summary of how some organizations are using crowd-sourcing to find great ideas and even to save money…getting the “crowd” to do work for free, as it were. The most interesting example is Netflix’s contest to have online geeks come up with the best algorithm for improving the site’s movie recommendations. According to Maclean’s, so far there have been nearly 50,000 entries. (In this case, Netflix is offering a million dollar prize.)

The lesson here for any organization is that ignoring this seismic shift – which is cultural and economic as well as technological – has become strategic, and probably financial suicide. Organizations need to study and understand these trends – particularly how they impact their customers and employees – and develop credible strategies to engage in the on-line conversations and market their wares. Consumer habits have shifted dramatically, and the Web is playing a huge part in how they access and share information, do their work, buy products and services and even find their mates. So why do some companies continue to party like it’s 1999?

GM Marketing Wakes Up to Reality

Those of you who read my blog know I’m not a fan of most auto advertising. Even in recent months most of the material coming out of Detroit – in particular – has been trite, disingenuous and ultimately irrelevant (judging by the plummeting sales numbers.) It’s as if they believe they can fool us into ignoring all the bad news, as well as their uneven product, with hype and flash. So I’ve got to hand it GM for taking a stab at a fresh start – both in terms of its business future and its marketing. 

As outlined in this BusinessWeek article, the marketing campaign is refreshingly candid about GM’s troubles and essentially positions GM as a new company…asking for a second chance. Instead of trying to rehabilitate or avoid its recent debacles, the campaign seeks to accept blame and move beyond them. The storyline reads something like…we screwed up very badly, but we learned our lessons and are paying the price. We intend to move forward as a smarter, leaner company that builds products that you want. Really. Complementary campaigns for the surviving GM brands are set to begin in the coming weeks. This report in the NY Times is a good read on the marketing plan.

GM still has some old marketing habits it needs to break – witness the irrelevant patriotic filler in the ads – but this is good progress that will increase the relevance and credibility of the campaign. To its credit, GM is also investing a nice chunk of its marketing budget in social media, and will encourage new GM buyers to share their experiences on Twitter and Facebook. I’ll be watching to see what comments get through…that will be the ultimate test of GMs openness to customer feedback.