We all know the adage “Turnover is vanity, profit is sanity and cash-flow is king”. In the world of Social Media the same may well be true of “Followers”, “Fans” and “Friends”.
What do you think?
Recently Tammy Corbett from Red Carpet Web Promotion posted a number of observations on Social Media. These are reproduced here for your consideration.
There has been a significant jump in the popularity of social media websites over the past few years. With it has come a shift in the way that people search for information and how they share and consult opinions on the Internet when making purchasing decisions.
Social media sites such as StumbleUpon and Digg, give users a voice on the Internet by providing tools to connect, exchange views, share content, information, and recommend products and services using the “thumbs up or down” approach. This has caused a huge shift in the way people search for information online. More and more, Internet users rely on the opinions of others before they buy into the validity of a product or service. “Word of mouth” is no longer only from mouth to ear, but is more frequently spread on social media sites and it has never been so powerful. Any product or service deemed worthy is promoted, shared or discussed in these online social communities.
A question that business needs to address is how to engage with these exchanges in a way that adds value and is profitable for everyone concerned; or to put it another way, “How should Business approach Social Media Marketing?”
Social Media Marketing
Social Media Marketing (SMM) targets users by promoting content through bookmarking, blogging, online video sharing, and social networking to potentially expand audience and drive traffic. Businesses are beginning to understand the power of these influences when it comes to establishing a reputation and growing their online business. Social media marketing strategies such as a business’ engagement in various social media websites can help to reinforce the brand and build a stronger personal connection with users.
Publish Social Media Business Profiles. One of the most important social media marketing methods includes posting business profiles on social media websites such as Facebook and LinkedIn. Instead of waiting around for consumers to come to you, you reach out to your target audience. Solidifying your presence in the social media community creates a direct interaction between business and consumer that may not dramatically improve conversion rates but is definitely capable of establishing brand power and credibility. The valuable feedback consumers provide promotes insight in determining what business strategies are working and what should be re-evaluated to, e.g. make a website more user-friendly.
Engage with Search Engines. The influence of social media sites has changed the way search engines define placement. Images, videos and news content featured on social media sites such as Youtube, Digg, and Flickr are equally capable of sitting comfortably at the top of the search results leaving others, who have not yet jumped on the social media bandwagon, a little confused.
Use Social Media on your own Website. Take a hint from the popular social media websites by adding some type of interactive quality to your website. Engage the viewer and create an atmosphere of inclusion and direct contact that encourages a user to come back and visit again. Forums and social applications can help you compete for traffic in an evolving market.
Become an expert in your niche. Yahoo Answers is a great place to start. You can create a business or company profile and begin answering direct questions and supplying information to those in your target audience.
Join Social Networks. Social networking provides a means to promote association and the exchange of knowledge while also establishing business contacts and connections. Post your business profile in the popular social and business networks such as Facebook and LinkedIn, but also make sure to concentrate your attention on your niche audience by joining social media networks that represent and support your business or company’s ideas.
For example if you are selling organic produce and you set up a profile in a social media network such as Care2.com, an environmental portal, you are then communicating directly with those individuals who will support your product or service because of a shared interest. These types of social media communities will extend their approval by sharing in discussions about your products or services with other users and even in some cases “become a fan” of your featured webpage.
Some examples of popular niche social networks include:
Publish articles to popular social media news sites such as Mixx.com, Digg.com, and Propeller.com. These sites allow you to post articles and vote on news stories.
Share videos and images by setting up accounts with Youtube.com and Flickr.com, leaders in online video and imaging to reach a broad or targeted audience.
Use Social bookmarking on sites such as Del.ici.ous and Ma.gnolia.com provide an opportunity to store and share links.
Blog. Blogging enables you to provide information and updates about your business to customers. Unlike ‘News’, which is typically regarded as non-human corporate marketing; blogging provides the business with a personal and very human voice and one which is more likely to be respected and trusted by your customers.
In Conclusion
Businesses that incorporate social media marketing into their conventional marketing plan have the advantage of reaching audiences using a whole new approach. The benefits of strengthening the brand and increasing traffic to your website are just the tip of the iceberg. Establishing your business as a leading authority in your industry promotes good quality links and better search engine placement, which in turn improve your reputation and increase sales - something we can all benefit from in today’s tougher economic climate.
A recent study by Forrester Research found that over half of global marketers will increase their spend on social media in 2010. Of those who knew their marketing budget, 75% said they were planning to spend upwards of $100,000 on social media marketing. Where spend was already planned this would be on social networks, blogs and user-generated content.
The research highlighted that money being allocated to social media typically comes at the expense of other budgets, with the biggest proportion of respondents (35%) identifying the source as their corporate marketing coffers; while 24% said that it would come from the advertising budget.
The report includes recommendations for marketers. Here are some repeated for my blog readers:
Forrester surveyed 145 global interactive marketers at business-to-business and business-to-consumer companies employing 250-plus staff. While we’re still not sure if the SME sector have as yet identified the benefits; for large companies and global brands the message is simple, and has been summarised by Forrester’s Jeremiah Owyang as simply that “Social Media Playtime Is Over”.
I was recently asked by the e-Commerce Manager of a major retailer how they would benefit from Social Media.
On the face this question seemed surprising, especially given the person who was asking was in theory the one person you’d expect to know the answer. But then I thought, maybe it’s not that strange to find major UK retailers struggling to see the value in Social Media; after-all only 59 of the top 100 US retailers currently have a page on Facebook. Given that this is free to set-up and has the potential to tap a US audience of around 50 million, mainly middle to high income college students and recent graduates, it seems strange the other 41 have not even taken this most basic of steps.
So, can Social Media help UK Retailers?
Personally I believe the answer to this is YES, but let’s be more specific by focusing on several of the main social media applications.
Blogging is a very effective and more attractive way to make announcements than any ‘News’ system. As a retailer you will constantly update your stock, add new items, offer discounts and reward loyal customers. Blogging allows you to post time based announcements that include pictures, or video, and links to the actual items in your eCommerce application. What better way it keep your website users up-to-date and generate direct sales from featured items?
Social Bookmarks / Tweet This allow users to share items they find interesting with their friends. They also help build back-links and generate sales momentum; you’re a fool not to include these features.
Facebook Pages / Groups. These are easy to set-up and provide the retailer with free access to a potentially loyal customer base. If used to garner feedback on your store, or on specific items, events, etc. these pages provide an ideal way to measure if your efforts are working, or where they may be failing. Who needs expensive market research and focus groups when you have Facebook!
Facebook Connect. Another free service and relatively easy to install. Facebook Connect can be linked to your own login / comments system, allowing users to import their Facebook profile (name / image / etc.) and friends list, and post items directly to their Facebook news feed. What better way to encourage viral marketing!
Reviews, Ratings, Recommendations & Comments Walls. These are the stock and trade of all Social Media applications and provide honest and highly valued feedback on your offering. If you value your customers opinions, USE THESE. If, however, you’re scared by the inevitable ‘could do better’ responses, then maybe these are not for you.
YouTube. If you produce TV commercials this is a no-brainer as YouTube provides a FREE social broadcasting channel. If you’d love to produce TV commercials but can’t afford the £££s, then YouTube is also for you. All it takes is a digital video camera, editing software and some creative thinking and your DIY approach could pay handsomely.
Is social media the saviour of UK retail?
Unless you’re an online shop, the answer is probably no - your foot-fall, product mix and pricing are always going to be more important; although here too I suggest time will be the judge. But as we all need loyal customers and as Social Media provides the best platform available to engage ‘friends’ and build a following, it certainly won’t do you any harm. And if you wait for your competition to show you the way you’re probably not going to be around to find out.
Social Media Marketing is not a new trend. In-fact one could argue that all marketing is social, in that you attempt to engage a number of people who share similar interests, passions or outlooks. If you’re successful, the first group you reach help spread the word on your behalf and in so doing recruit your next audience level, and so on. The main difference between traditional word of mouth promotion and Social Media Marketing is where it’s conducted.
Social Media Marketing is generally carried out in Social Networks, or Online Communities; i.e. digital meeting places where an audience already exists and content is provided by the users. Entry to these communities is typically free and allows users to do many or all of the following:
The ‘media’ in social media refers to the platform as well as the content and includes:
While the current choice of Social Networks is rather limited, and for this reason has perhaps put off a number of companies from advertising; this situation is starting to change. In recent months a growing number of niche communities have started to develop, as more users leave the established players and as the software that runs these sites becomes more widely available.
The nature and form of these new niche communities is comparable to the readership of a popular newspaper or magazine, the audience for major TV channel or Radio station, or the membership of a large association and professional body. As these communities have a much clearer focus they also represent a more attractive advertising space to the average company.
A rise in these diverse and focused communities, with their niche interests, may be the catalyst business has been waiting for, and could lead to the long waited development of Corporate Social Media Marketing. Let’s hope so.
Although in the meantime there’s always Facebook Pages and Groups, esp. if you need to appeal to the wider population.
If there is anyone out there who still doubts the power of the Internet and the role social media has to play in changing our world then you weren’t watching the US elections last week.
Change has come to America, not just in the colour and form a new leader, but in the way he was elected. While actual figures may be disputed, Obama’s camp attribute victory to a nation of supporters who contributed in billions of small ways. From the 3.1 million who made donations, to the tens of thousands who used their own mobiles to forward text messages, post twitter updates and make campaign calls; this president, more than any other, can put his win down to the power of people to effect change.
Unlike his competitor and every candidate before him, Obama succeeded in engaging a disaffected minority and he did this largely through his use of the Internet and social media. Facebook and MySpace, email and text messaging all played a central role. Purchasing Obama merchandise via a website guaranteed you a place as a donor; so did attendance at one his rallies. Then, having secured your support, these same donors were turned into recruiters and encouraged to reach out virally to even more. In doing so Obama built not only a massive supporter base, but also a campaign fund that exceeded the combined spend of Bush and Clinton in 2004. We all know in America money = power, but when this money has itself come from millions of individual supporters, as opposed to the usual few dozen corporate donors, the power is even greater.
Some things in politics are certain. Seeing the way Obama achieved victory will inevitably lead to imitations. So while the date for Britain’s next general election is as yet unknown, it is clear the outcome is now more likely than ever to be decided online, and long before the first votes have been cast.
While the manner in which a US president achieves his success may not grab your attention; if there’s one thing that this election has taught us, it’s that by becoming engaged and adding our voice we can and do have a role in changing the world. By applying this same science and our collective imagination we can and should now address several real problems we all share.
If you doubt we can end wars, stop future global financial crisies, and clean up the planet; just repeat this mantra … yes we can.
It was only a matter of time, so it’s not surprising that we are now starting to hear stories of social media disasters. The latest is by the National Australia Bank who set-up myfuturebank.org (now removed) to encourage customers to design their ideal bank.
Now that’s an interesting challenge; but where do you start? Since it’s back to the drawing board for most banks these days, maybe asking your customers to design the bank they want is the right approach - it’s definitely one I’d advocate. But if you are going to do this you have to listen to what they have to say, even if it’s negative.
It seems customer input was only valued by NAB if it was positive. They soon realised this was not guaranteed and quickly took the site down, motivated no doubt by the suggestion that comments were being ‘managed’.
NAB claimed they only intended to run the site for “long enough to gather feedback” and “now had sufficient data”; which may well be true but that’s not how it appears. If you’re going to run short term ‘feedback campaigns’ it’s best to tell the users as much at the outset, this way no-one can complain when you pull out early.
I suppose this lesson had to be learned by someone the hard way; but let’s face it, if you engage in an open discussion you can’t dictate the terms and should be mature enough to handle criticism. If you don’t like what you might hear DON’T ASK for comments.
If you’re thinking of using social media to engage customers, and let’s face aren’t we all; then the following commandments for how to act in a Social Community might be useful:
Before you join
1. Know Your Specific Target Audience
2. Know Where that Audience Socializes On the Web
3. Understand the Actual Rules of the Community
4. Factor In a Media Budget
5. Know Your Goals
When you’re there
6. Get to Know That Online Community
7. Give to the Community- Don’t Spam
8. Be Transparent
9. Don’t Leave the Community
10. Start with One Community and Then Add Communities
For more information on these rules of acceptable social media behaviour, check out Kailee Brown’s blog or talk to several PR & marketing professionals - half of them will know what to do.
So what have we learnt?
If we threat customers as our most valuable asset and show them due respect, social media is a very powerful management aid and one that if correctly used will help every organisation improve what they do.
Is your organisation ready for the social media challenge?
The way we market ourselves is changing. Major brands, travel destinations, and even government agencies are spending £m’s on viral campaigns that use ‘managed’ social media postings to market themselves.
However, in commissioning these YouTube videos and mobile games, paying bloggers through inducements and PPC advertising, and sponsoring peer review websites and podcasts, are these organisations crossing the line? Should corporate PR and marketing be allowed to invade ‘our’ personnal space with social media that is designed simply to manipulate the way we think about them, their products and services?
The fact we have terms and even a code of conduct for these sponsored social media marketing activities, indicates just how widespread it has become. So you know what to look for, here are a few terms lifted from the Chartered Institute of Public Relations (CIPR’s) November 2006 consultation document “Social Media Guidelines“:
Astroturfing is the practice of creating the impression of independent, popular support by means of an orchestrated public relations exercise. The underlying idea of faking grassroots support gives rise to the term, which was coined from the word AstroTurf (artificial grass).
In the context of social media, astroturfing could include the creation of a dedicated blog, posting comments on others’ blogs or on message boards, or submitting ‘amateur’ videos to YouTube; all designed to give the impression of spontaneous support for an product, company or service.
Pitching. With the proliferation of respected bloggers and ‘impartial’ social media sites, a growing number of companies are now ‘actively engaging’ with the most fashionable and popular of these sites and incorporating them into their communications strategies. This active engagement, or Pitching to bloggers, has become commonplace for larger brands; although has also not eluded smaller companies, many of who are will not hesitate sending press releases, corporate videos, prototypes and promotional material to sites they know are popular in their industry sector.
Ghostwriters are another group to look out for. The term is borrowed from the publishing industry and is where a professional writer is paid to write books, articles, stories, or reports which are officially credited to another person, typically a celebrity, company executive or political leader. Within the context of social media ghost writers post professionally written reviews and favourable editorial intended to generate and / or support viral marketing.
Let’s face it, this is simply good marketing, despite what the junk food protestors might say; isn’t it?
Just be aware, everything you see or read out there is not genuine.
Many companies, both large and small, regard social media as a shiny new and potentially very effective marketing tool. However, before rushing off to build yet another corporate branded social network, let’s explore where Social Media Marketing can provide real value and genuine commercial returns.
There are generally accepted five areas where measurable returns are achievable from a successful social media marketing campaign. These are:
Brand / Company Awareness
One of the first and most obvious benefits of social media is the incredible reach this provides. Take any of the major social networks, with millions of active users; never before has it been possible to position your company or brand before so many people at so little cost. By offering users of these sites an application that is fun or adds value to their social interaction thousands of potential new customers can be reached overnight, including many who will have never heard of you before they were invited to ‘add your application’. TripAdvisor’s “Local Picks” and “Where I’ve Been” are two examples of social network applications that have delivered thousands of new users, greatly extended the organisation’s reach and increased brand awareness.
Improved Links & Viral Activity
The main power of social networks is the ability to spread the word, rapidly to millions of people, and include many who are often difficult to reach. This viral activity is driven by users sharing interesting items with friends, colleagues, or anyone on ‘their network’. While most of these exchanges go straight to the recycle bin, some find their way onto PC screens or the user’s ‘inbox’ and in so doing gain a few seconds of valuable attention. Social bookmarks, such as Digg, Del.icio.us, Newsvine and Reddit, use link share activity to let others know which items are popular and worthy of attention. Since social bookmarking is generally free and carried out ‘in context’ it not only beats every form of ‘paid for’ marketing, but also provides a major boast to a company’s or brand’s own Search Engine popularity and ranking - which as we know can only bring in more business.
Brand & Reputation Enhancement
If an experience is fun, upbeat, or interesting users quickly form a positive association with the provider. Encouraging users to share this experience with others helps builds reputation for both the user and the brand. In this way a shared positive (or negative) experience can have as significant an impact on the way a brand is perceived as a very expensive mass media marketing campaign. By carefully managing this social interaction companies can (still) maintain ownership of both brand building and the reinforcement of their positive brand values. However the opposite is also true, if left alone these social conversations can quickly spin out of control and lead of all sorts of unwanted outcomes. This is why many businesses dislike review sites as these require they take an active interest in what their customers are saying, and respond in a timely and appropriate manner. A negative review on TripAdvisor e.g. that goes unanswered will have a significant impact on how a hotel is perceived and therefore cannot be ignored. Staying on top of these reviews should now an essential part of every marketing department’s daily work routine.
Increased Sales
With a few exceptions, Last.fm is one that springs to mind, social networks will generally not provide ‘buy now’ links. Their value is in influencing the purchase decision rather than in making the sale. That said, if the blogshere likes you, rest assured sales will follow. Encouraging respected and will read sites, bloggers and ’social networkers’ to provide a review can only help drive sales. Just don’t try bribery or inducements, as these will quickly turn and bite the corporate conspirator. The best way to generate sales through social media is to show just how good your product really is and to do this in a creative way and compelling way. If the show is interesting, fun or even educational it becomes essential viewing for thousands of future consumers. And if you can’t afford the hosting or the marketing yourself; sites such as YouTube, MySpace, etc. provide ideal distribution platforms for your latest creative video promo.
Closer Consumers
Let’s face it, the more you know about your customer the better you should be in providing the perfect product or ideal service. Getting closer to the customer means listening to their comments, observations and suggestions and provides every business with real opportunities to improve. Before social media this form of dialogue was very costly and time consuming, and usually only carried out by professional research companies. Today every business can get this feedback, easily and at relatively low cost - if they want it!
Providing customers with reasons to feel part of your community can only help your business grow in the longer term. How and in what way you build these communities and engage your customers is ultimately what differentiates you from everyone else.
Good luck and enjoy the conversations.
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