April 21st, 2009 by Arie
Original Article by David Nelles
There it goes; Twitter has become a substantially relevant PR tool. Hence, within only few months a number of brands have experienced, how fast a crisis can spread – thanks to this channel of the 140 characters. The American painkillers Motrin had encountered the anger and resentment of few well networked moms. The E-Commerce Gigant Amazon had to experience a hacker attack over Easter, which erased literature offers regarding gay and lesbian themes. And last but not least, the Domino’s pizza delivery service has its share of experience in regard to the short distasteful video of two employees on YouTube. The three cases show that even in the U.S Twitter has definitely become more and more relevant for company’s communication. Yet, how could these three companies avoid the big disaster to their reputation before it even started? Maybe these three tips below can help a little:
Only listening does not suffice
Important is also knowing, who talks about the brand in Twitter, and how badly he/she speaks about the brand and the corresponding company. Therefore, the following few priorities should stand out in foreground:
Priority No. 1 has to be the people who make up the majority of your brand’s customers. And that will be the question for Domino’s as it plots the best plan of response: The pizza chain needs to know not only how many people saw the video but who those people are and how likely they are to be current customers.
A monitoring is not only a quantitative analysis of the relevant brands mentions, but it’s also about the qualitative analysis like the segmentation and the creation of user’s typologies. Only a qualitative analysis ensures an effective potential crisis analysis. Thereby, it’s not only decisive, how often a tweet or retweet comes out but it’s also important, whether the tweet fits into my target group or not.
Don’t hide uncertainty – Transparency is a must
Companies should engage themselves in the discussions with quick and fast manner towards the emerging crisis in Twitter&Co. even if the companies do not actually know, what is happening, just like in the case with Amazon deleting the whole product groups. A short PR statement would only ignite more fire to the unfavorable situation. A transparent answer in Amazon’s case would be to inform users that the mistakes are not known yet and people in charged are doing everything in their power to resolve the problems. Through this kind of behavior, one shows that critical voices in Twitter are being taken seriously and that one does react to the voiced sentiments. This kind of strategy can smooth the situation and best example for it: the action taken by Scott Monty after a notice of one of the Ford fan’s communities:
Monty logged onto Twitter and asked people to hold off: there was “more to the story.” That slowed down commentary. A little later he added, there was counterfeiting of Ford trademark properties involved. That froze the conversation and bought him some time.
“Some time,” in a PR crisis a few years ago used to translate into about four days. Times change. Monty figured he had bought Ford a few hours.
The above example show that through the announcement of the brand alone of something is being done in respect to the circumstances can definitely slow the spread of crisis significantly down.
Exercise precautions and build your own Twitter community
This basic doesn’t only apply for Twitter but it applies as well for the whole area of social media. In case of a crisis, a strong brand community can be a life insurance for the brand.
Strong, emotional brands that have built up years of consumer goodwill seem to be more insulated from long-term hurt. Few consumers judged much-loved Whole Foods when its CEO was caught posting comments on financial sites under a fake name. Another consumer darling, JetBlue, has recovered valiantly from its Valentine’s Day massacre, which left passengers stranded on board on a runway for eight hours.
It appears quite advantageous for brands alone, out of the perspectives of crisis prevention to build a strong community around its brand. An authentic and long lasting dialog with users, and tying customers emotionally to the brand will make sustainable damage of brand reputation very unlikely. Furthermore, a big brand community i.e. a big Twitter followers guarantees a real sense of hearing in the target group of user generated channels. At least, Domino’s Pizza now understood how essential own Twitter community can be.
April 15th, 2009 by Arie
Original Article by David Nelles
Okay, we’ve seen the missing willingness of few marketers to get into dialog with their target group in social networks. Now, it’s a fair turn to give these execs some rules on how Facebook can also work for them. Through my research, I’ve come across a really meaningful “manual book” for Facebook on mashable. Based on this manual: The five pillars for a successful Facebook Fan Page.
Networking
Connect your online appearances. Utilize you existing network presence to additionally fill out your Facebook Fan Page with life. With this strategy, you can be absolutely certain that your target group – which already actively involves in other web appearances, has an easy access to the Fan Page.
Cooperation
Use existing Fan Pages for own purposes. Why make something new, when existing pages are functioning quite well. Cooperate with existing brand evangelists. The best example is the actual cooperation between Coca Cola and its brand fans.
Information
Don’t be an advisor or exclusive information giver only to your supporters. Give also other users advises, which they can get out of your Fan Page. With this strategy, you can increase the brand image outside your own fan group. Hence, Dell plants itself as advisor for Facebook users in the application of social media for small business.
Added Value
Increase the attractiveness of your Fan Page through special offers or winning contest. Winning contest can encourage user’s engagement, which can boost engagement in the corresponding Fan Page. Good examples are Adobe , Ben & Jerry´s and Old Navy.
Relevance
Look for your target group. A proper targeting is a must for a successful fan page. Not all brands would get strong fan community like Apple&Co. Hence, a relevance check should always be in foreground of a Facebook initiative.
The following strategies should come out of the five pillars: At the beginning, an extensive targeting must make sure that the corresponding brands i.e. the products do fit into the Facebook target group. Once this process comes out with positive result, it’s helpful to check if there are big fan pages, which are worth to cooperate with. After a possible cooperation or own initiative, it’s quite important to link the fan page with the rest of the brand’s web appearances as to forward the traffic of the existing internet appearances into the fan page. In the end, the success of each branded community – be it on myspace or Facebook- depends on the quality of the contents. The content of such community must show a real added value. This could be winning contest or special offers and even promotions, which increase the user’s engagement in brand communication.
March 31st, 2009 by Arie
Original Article by David Nelles
The benefit of social media is undisputable in regard to the dialog between customers and companies. Particularly, the dialog within 140 characters stood out the most in the core of public discussion concerning the usage of collaborative media in business area. Yet, the Customer Relation Management proves to be the perfect environment for Twitter&Co.
…I think that Twitter has a unique opportunity to tap into the lucrative CRM space.
As stated by Jeremiah and he had his point there. More and more companies are using this very direct and authentic way of communications with their customers. U.S provider for web analytics – Omniture uses also Twitter amongst others social media tools, to connect and nourish the relationships with customers.
Regarding Twitter and customer relationship management, I know it’s been hugely important for us—ClientCare, and really for Omniture as a whole. I love the idea that we can listen to our customers so easily. When there are support issues, we can deal with them quicker than ever before.
Ben Gaines mentions in his statements two important USPs, which obviously speak for the application of Microblogging in the area of CRM. On one hand, it was never before so easy to listen to customers and on the other hand, it was never before possible to assist customers having problems with products or services in a fast & quick manner: two reasons, which strongly support the use of this relative new communication channel. Meanwhile, these advantages of Microblogging are already being often utilized by many companies for their customers – starting from Airlines and Automobiles, to Online Shoes and Tea. The increasingly rapid conversations via Twitter are challenging companies to actually collect and organize the flowing customers’ conversations.
It’s important to first realize that managing a large brand on Twitter isn’t scalable, with hundreds –maybe thousands of tweets about a marketplace a day, individuals will have a very difficult time managing…determining who these people are, and if they are a potential customer is important, who are these people, are they important, where do they live?
With this insights, there are recently promising technical solutions for the application of Twitter in the area of CRM, which guarantee a professional utilization and implementation of costumers contacts. One of the interesting solutions is CoTweet:
CoTweet, currently in private beta and specifically designed to help businesses maximize their Twitter ROI, tweaks the Twitter experience to match that of a more sophisticated CRM solution allowing companies to manage multiple accounts from a single dashboard, support multiple editors for each account, track conversations, assign roles, and create follow-up tasks.
Another promising service for Twitter application in CRM is also being offered by Salesforce. Users of salesforce Saas application can integrate Twitter in their CRM:
The new integration allows businesses to search twitter for mentions about their products/services, find and track conversations, track growth and easily create a database of each in their Service Cloud. Once these conversations are part of the SalesForce Service Cloud, businesses can combine these with other mentions across other networks and communities, establish connections, share knowledge across teams and most importantly, completely integrate customer service departments into the cloud.
Applications like Twitter integration in Salesforce or CoTweet will play pivotal roles in the future for the long lasting use of Twitter in the area of CRM. Especially in Germany, where Twitter starts to gain more public recognition and thus, the relevant amount of data collected via Twitter will rapidly rise quite soon. With this kind of growth, it will be impossible to do the research manually. Hence, those kind of technical solutions are inevitable for companies engaging in social media.
With all the excitement and buzz surrounding Twitter i.e. Microblogging, one should always keep in mind that Twitter is only one part of the CRM strategy in social media. It is very essential for companies to use all the relevant areas of consumer generated channels. Hence, the dialog with customers in forums, weblogs, video platforms and social networks as well as Twitter belongs undeniably to a well polished social media set of companies.
March 24th, 2009 by Arie
Original Article by David Nelles
Social media marketing only works when a user gets a real added value through his/her engagement. This means: The interaction with brands in user generated channels must result in a measureable ROI for users, as to achieve successful marketing in this area. Thereby, in his latest post – Tom Smith opts for a change in perspectives regarding this matter. It’s not about the added value of social media for companies but instead it’s more about the added value of big brands’ social media activities for users. Smith derives eight advantages for consumers through social media marketing:
1. Social media can transcend the “black box brand” of the past into a transparent dialog partner. Social media enables user a peek behind the scenes of a brand.
2. Social media differentiates bad products from good ones. Thanks to social media, it’s easier for users to get information about specific products before buying decisions are made.
3. Social media is the perfect channel for customer service. Comcast, Dell and Southwest are few of the best examples. The basic for brands should be to actively present themselves where the target group is, as to always be there for the costumers.
4. Social media allows users to take part in product innovation. The keyword is crowdsourcing for the creation of better products. Tchibo, Dell and Procter & Gamble show how companies can involve consumers in product development.
5. User decides if he/she wants to interact with brands. In classical online marketing, users didn’t have the power of choice to decline massive brand messaging.
6. Social media efforts of big brands are the prerequisites for a free of charge usage of Facebook&Co. However, for a continuous availability and development of social media platforms developers need the money, which would come from a booked and well-planned marketing campaign of big brands.
7. Big companies have interesting stories to be told. Brands like Daimler and Coke do have stories of their own and they certainly offer consumers real added value.
8. Brands in social media are alive through users. One way or another, users’ conversations about brands would take place, regardless of whether brands are choosing to be actively engaged or not.
In the end, it’s quite evident: Social media marketing i.e. active brands in social media offer users a real numerable added value. It starts with transparency through direct customer service and the power of choice, where users can decide for themselves whether they want to be exposed to brand messaging: users benefit obviously from this 2.0 brand communication. This user’s ROI is the key indicator for the success of a brand in user generated media. Brands communication in social media ignites two-way added value, both for users and brands. This applies only, if marketers abide to above mentioned added values. Hence, keywords like transparency and authenticity should be the core focus.
March 16th, 2009 by Arie
Original Article by David Nelles
In an interview with AdAge magazine Jimmy Wales gives his estimation about marketers’ strategy of mass collaboration in digital platforms like wikia.com. But Walles also thinks that the real success of this media is often overshadowed by marketers’ fear of losing control. Thereby, brands are still not able to enter into a real direct dialog with users in user generated media.
The fear of losing control doesn’t only apply exclusively to Wiki platform, but rather to the entire area of user generated media. This kind of fear resulted from marketers’ way of thinking that they could control their brands message, just like they did back then before social media surfaces. Well could they do it? The answer is a plain simple No. After all, social media is only a consequent shift of social interaction into a digital environment. Marketers are mistaken if they actually believed that they could control their brands communication back then. Even before social media, brands were already subjected to various discussions by consumers and print media. The difference in social media is that the critical voice of consumers for the affected company is instantly visible. Feedbacks about offered services or products should not ignite fear and loathing for marketers in charge in the company. Social media offers the chance of digital consumer conversations for brand’s benefits. Hence, it was never before so easy for companies to achieve consumer insights.
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March 13th, 2009 by Arie
Original Article by David Nelles
Even for companies in B2C area, it’s quite evident that social media serves as a very efficient communication channel in the area of marketing and company’s communication. However, what about the use of social media in the area of B2B? Does a digital and interactive dialog with decision-makers i.e. buyers in user generated media make any sense at all? In regard to this question, Forrester published a survey with quite astounding results. Josh Bernoff described one particular result as followed:
91% of these technology decision-makers were Spectators — the highest number I’ve ever seen in a Social Technographics Profile. This means you can count on the fact that your buyers are reading blogs, watching user generated videos, and participating in other social media. Note that 69% of them said they were using this technology for business purposes.
Why should the communication behavior of private consumers change? Even buyers in companies use user generated channels just like private persons. Sure, the results of Forrester’s survey are referring only to buyers’ behavior from technological sector, but these findings are actually also a good indicator for the global development. A successful and modern B2B marketing should be able to adjust to the shift of media use. But, how should marketers act in B2B area? Just like in every starting process of social media strategy, a detailed market analysis is also needed in B2B:
• Conducting research to understand more about a prospect’s or client’s “buying desires.”
• Finding decision makers for certain products and services.
• Extracting names from a given community for lead generation.
• Getting answers to questions, reaching out to other experts.
• Finding joint-venture marketing partners and creating various “cooperative opportunities.”
Such analysis of target group, multipliers and brands relevant themes can only be the first step to take for the B2B marketers in social media. Besides consumer insights, a well founded Netnographic can also show the way into the relevant communities. Why shouldn’t companies use it? It is certainly advisable for companies to get into direct dialog in user generated platforms with their respective target company i.e. with the person in charge.
For example, it would offer the possibility for a wood processing manufacturer to be active in a carpenter forum. At the same time, it’s not about switching on banners, but foremost it’s about getting into direct dialog with carpenters about daily requirements of wood processing etc. With such dialog, the company can also manage their existing customers in the sense of digital CRM in respective platforms. In the end, a B2B company must implement their brands in user generated platforms to get into dialog with target group. Just like in B2C, such action would convey the brand image and awareness of buyers in respective company. Thus, the improvement of the two mentioned parameters could lead to a sustainable customer loyalty as well as new customers.
Besides the improvement of brand image and awareness, could a good B2B strategy in the area of user generated media actually boost innovation leadership of the company in the respective segment? Well, e.g. A blog – in which employees can classify branch news, comment and even describe the market development and trends – could actually provide strategic benefit for the company. Let us assume, that the results of Forrester survey in regards to the use of social media for company’s buying decisions in the technological area also meet the requirements of other branches, then a corporate weblog, podcast or video channel can be the perfect channel to underline the innovation leadership. Eventually, an image as innovation leader can leave traceable impacts on buying decisions of other companies.
It’s quite obvious that marketing in social media doesn’t exclusively apply only to B2C marketing. Even buyers in companies are increasingly using user generated media to inform themselves before making buying decisions. U.S companies such as Intel, Chevron and Millerwelds show, how it could work, and as shown by the case of Westaflex, German companies are also active in this matter. This development evidently shows that in the area of B2B marketing social media is already being used. Hence, the area of user generated media belongs as well to a fixed part of marketing mix for B2B marketing area. Justin Hitt is right, as he says:
Social media is something I added to my existing mix, in some ways it does it better (saving time, money, resources).
March 4th, 2009 by Arie
Original Article by David Nelles
What makes social media attractive? Evan Williams’s prediction is definitely right. Social media appeal to human’s baser need, which is the desire to socially connect with each other. Social networks as technical solution offer the possibility of globally social interaction. Respectively, the state of interaction between individuals in social media is actually a continuation of the offline social interaction into a digital world. From technical tools, Twitter has somehow fulfilled this baser need of human’s social interaction- shown by its huge number of users. However, I have to disagree with one of William’s comment. Well I think, Twitter won’t need the five extra years to get its tool used by broader public.
February 25th, 2009 by Arie
Original Article by David Nelles
Mirror, mirror on the wall, which one is the priciest blog of all? We’ve known now about the market value of the Top Blogs in Germany, but again the big U.S blogs set the benchmarks with their corresponding financial values. The 247wallst.com analysts have been determining the value of big U.S blogs at regular intervals. Douglas A. McIntyre provides insight on key figures used in the values calculation as followed:
To determine value, 24/7 Wall St. looked at unique visitor and pageviews information from several public sources including Alexa, Quantcast, Compete, and comScore. These services are often criticized for estimating website traffic too low and we have taken that into account to the extent possible. We also looked at audience measurements provided by the blogs themselves when it seemed credible. Our estimated CPMs for ads are based on the current display and text ad environment, the quality of ads at each blog, and the number of ads that it runs on the average pages. The CPM value assigned to each blog is based on all of the ads it runs on its typical pages. To determine margins, 24/7 looked at headcount when available, and estimated costs of operating and maintaining websites. More complex content platforms where assigned higher monthly costs. Current audience growth rates were taken into account. A site which has traffic doubling year-over-year was given a higher multiple than one which is losing traffic. Because not all blogs make money, multiples of revenue and operating income were used to assess value.
The results of the analysis are very impressive:
1. Gawker Properties — $170 million.
2. Huffington Post — $90 million.
3. The Drudge Report — $48 million.
4. Perez Hilton — $32 million.
5. Sugar, Inc — $27 million.
6. TechCrunch — $25 million.
7. MacRumors — $21 million.
8. SeekingAlpha — $11 million.
9. GigaOm — $9.5 million.
10. Politico — $8.7 million.
11. SmashingMagazine — $7.7 million.
12. SearchEngineLand — $4.5 million.
13. Boing Boing — $3.6 million.
14. ReadWriteWeb — $3.4 million.
15. SB Nation — $2.7 million.
16. Destructoid — $2.5 million.
17. Mashable — $2.5 million.
18. Alley Insider sites — $2.25 million.
19. /film — $2.1 million.
20. The Superficial Network — $2 million
21. Neatorama — $1.5 million.
22. Daily Kos — $2 million.
23. Talking Points Memo — $1.2 million.
24. VentureBeat — $1 million.
25. Wowowow.com — $1 million.
February 25th, 2009 by Arie
Original Article by David Nelles
What kind of myths in the context of social media marketing are actually NOT out there? Starting with the notion that social media marketing is for free, up to lack of measurability in this area. Often, one hears from marketers about the use of social media for the company’s benefits, which fit into the myths. I’ve summarized the Top 4 Myths in the area of social media marketing:
Myth #1: Social Media Marketing is cheap, if not free.
True is, social media tools are in most cases free for users. One can set up a free Wordpress Weblog, sign up for Twiter Account, and use Digg for social bookmarking or create a group in Facebook. However, it is essential for companies in social media to interact and get into dialogs with their customers in these free platforms. Meaning, companies must create a proper concept to begin with, and then integrate this concept into the existing company’s communications strategy. Thus, these efforts are tied to time and money. For example, a big advertising campaign in social media can cost up to six figures.
Myth #2: Social Media Marketing guarantees instant success.
Yes, it’s true; sometimes one can achieve huge marketing success in social media within the shortest period. One needs only one thing: Luck. Basically, time factor counts the most in the area of social media, since a sustainable and authentic dialog with consumers does not happen overnight. Marketers should not expect an immediate success of social media activities: corporate Twitter with more than 1000 followers or corporate weblog shows 15,000 unique users daily.
Myth #3: We do it best in-house.
If names like Robert Scoble or Jeremiah Oywang belong to circle of employees, then this argument could be justified. Otherwise such intern social media experts are really hard to come by in German big companies – of course with few exceptions. Thus, German companies do rely on support from external specialists for the concept and implementation of social media activities. Until companies enclose the first Heads of Social Media, like Scott Monty, as connector between marketing and company’s communication, more time would certainly be required.
Myth #4: Success in Social Media Marketing is not measurable.
If one takes the classical parameters of online marketing as scale, then this myth is reality. The success measurement of performance based marketing strategy doesn’t fit in the area of social media. But this doesn’t automatically mean that the success of social media is therefore immeasurable. A successful marketing in the realm of user generated media lies not in leads and sales, but in brand awareness and brand reputation. Meaning, the performance success of social media can be seen in conversation’s participation in weblogs, forums, communities and Twitter about brands as well as the tonality of statements.
February 24th, 2009 by Arie
Original Article by David Nelles
There are lot of ways for companies to represent themselves in social media, or rather how this media could be used to the advantage of the companies. Here are some examples in Germany: the Customer Community 60 years of VW, the employee’s Daimlerblog or the Customer Weblog Two For Fashion from Otto. Ford Germany tweets, Tchibo applies Crowdsourcing and BMW uses amongst others its own YouTube Channel. Hence, in Germany companies do exercise a quite broad application of social media platforms.
A company in the U.S has discovered another use of platform to its advantage. BestBuy sets out for unsparingly transparency in its new social media strategy. It’s called BestBuy Connect, which is a public social media aggregator for social media activities of the employees. BestBuy Connect summarizes all social media activities of employee’s participation through livestream.
Dawn Bryant explains this particular strategy of BestBuy as followed:
If people outside of this company could really feel the culture and drive that makes this place what it is, we can strengthen our reputation, goodwill, and ultimately grow our talent and grow the company. The beauty of that is that we didn’t need to create anything new, people are doing it and we don’t want to control it, we simply want to make it easier for the rest of the world to find the energy and human-ness”.
From a German perspective, this kind of proposition or rather the notion behind the project is somehow astonishing. In case BestBuy could hold its head high with this particular project, it would definitely be by far the most daring project in the area of social media I’ve ever encountered. What Lee Oden said about this social media initiative:
The objective of Best Buy Connect is to showcase the people, behavior and unedited perspectives/ideas of those who power Best Buy. It humanizes the brand, increases accessibility and fuels transparency. This can affect current and future customer perceptions as well as future employees.
Basically I agree with Lee’s opinion. From a consumer’s point of view there is nothing better than an unedited transparency. Yet, I do have my doubt, whether this kind of directness could be maintained overtime. Although German companies have become increasingly open to social media, this kind of project is still unthinkable. It would probably provide sleepless nights for the majority of company’s executives. Thus, BestBuy tries to minimize the danger in the use of Connect by employees through clearly defined Guidelines:
What You Should Never Disclose:
The Numbers: Non-public financial or operational information. This includes strategies, forecasts and most anything with a dollar-figure attached to it. If it’s not already public information, it’s not your job to make it so.
Promotions: Internal communication regarding drive times, promotional activities or inventory allocations. Including: advance ads, drive time playbooks, holiday strategies and Retail Insider editions.
Personal Information: Never share personal information regarding other employees or customers. See the Customer Information Policies for more information.
Legal Information: Anything to do with a legal issue, legal case, or attorneys.
Anything that belongs to someone else: Let them post their own stuff; you stick to posting your own creations. This includes illegal music sharing, copyrighted publications, and all logos or other images that are trademarked by Best Buy.
Confidential Information: Do not publish, post, or release information that is considered confidential or top secret.
What would happen to the employees, if they do not abide the guidelines:
Get fired (and it’s embarrassing to lose your job for something that’s so easily avoided)
Get Best Buy in legal trouble with customers or investors
Cost us the ability to get and keep customers
It’s a daring project from BestBuy, which I can’t imagine happening for the German market, well at least not at the moment. In Germany, it is already problematic for many companies to run a corporate weblog. Furthermore, this initiative of BestBuy is somehow light years away from the actual German social media reality.
Connect is only an element in the social media strategy of BestBuy. For CEO Brad Anderson, social media is the central factor in the whole company’s communication. BestBuy sets out international benchmark, particularly by its use of social media for the optimization in internal communication of 150.00 employees in over 1150 office branches. Beside employee’s forum and internal wiki, BestBuy has also its own social network.
Brad Anderson and his employees have recognized the company’s added value through social media. Not only that, BestBuy understands the use of social media for external communication or rather for marketing and thus, BestBuy also realizes how social media changes the life of a company. As commented by Peter Hirshberg:
I think Best Buy is a leading indicator what businesses will start to look like in the near future…
Hirschberg’s interview with Anderson in Zeitgeist 08
