December 10th, 2008 by Christoph Maeurer
Original article by David Nelles (translated by Nils Maier)
It’s a well known fact; Dell is pretty advanced in the adoption of Social Media in the areas of CRM and Marketing. The interview with Richard Binnheimer in Online Marketing Blog, actually punctuates my assessment about the U.S number one PC provider: Dell did get it!
I found the middle part of the interview quite interesting and educating. Binnheimer explained the reasons, which supported Dell’s decision to adopt Social Media.
“1. The Magnitude of Change: One billion people are now online — a figure that will double by 2011. In fact, every day 500,000 new users come online for the first time. Content is exploding. There was more content on YouTube in 2006 than on the Web in 2000. This represents a significant shift in what we think of as media, or put another way, what and how people get information. Taken together, we are experiencing changes to the dynamics of how we process information to form opinions.
News cycles can start from anywhere today. News and conversations are not just local/regional, they are global. Single blog posts can have as much power as major news stories. People are publishers, content providers and decision-makers. There are additional and new news cycles, and a proliferation of outlets for information. There is a rapid and continuing democratization of information.
This global information technology infrastructure enables individuals to connect and converse using all kinds of social media. They are forming new communities, their own communities, sharing information in ways they care about and make sense to them. These communities shape debates, impact perspectives and perceptions. The numbers and connectedness are of such a magnitude that public opinion and perceptions can be influenced and changed by “each other,” not controlled by others (and, I think this is a good thing, by the way).
2. The Value of Personal: I personally believe social media is contributing to a significant change that take us from what I call the “traditional, rational, objective, institutional” perspective to a more “subjective, emotive, personalized and human” perspective.
The move from “objective,” fact-based, third party reporting and commentary (traditional media/advertising/controlled messages/interruptions) to individual, “subjective,” and “crowd sourced” perceptions is very powerful. Perceptions are no longer just reality. They are real. The “new facts” are based on real interactions and experiences that people share with each other. Perceptions (“my real experience and my views) gain legitimacy and value and become a part of the larger community’s “facts.” For more on the importance (and inherent value) of perceptions in social media check these links.
If you are not persuaded by the trend data, directions and changes occurring, I would pose this question, rhetorically. I call it the customer question.
3. Connecting with Customers: Since when did any business not want to connect with its customers? Seriously, what is the issue here? Do we need to justify using today’s efficient, effective and readily available technology to spend 30 minutes or couple hours a day connecting with real customers?
No one has yet to explain to me why they should not use social media as a way to connect with their customers. We could leave this point hang and let it stand on its own. I think it speaks volumes.
However, lets flesh it out a bit. Connecting and communicating with customers is about more than merely meeting customers’ expectations today. Social media is an ideal tool to reach customers more quickly, efficiently, frequently and cost effectively.
Even more importantly than its efficiency and cost-effectiveness, social media is an ideal tool to listen, learn and engage in real conversations with customers. Does someone need to justify that?
Here is an example: If a conversation occurs in a Minneapolis Starbucks about the new Dell mini, I can’t hear it, nor be informed by it. On the other hand, if that same conversation starts in Minneapolis (or China) with a post on a blog, Twitter, Friendfeed, Facebook or wherever, not only can I listen and learn, I can act and join the conversation.
We can immediately take the information and do what we need to – fix something, thank the customer for positive feedback, correct misinformation, whatever might be relevant. It’s like having Dell customers from anywhere in the world walking the halls of our offices in Round Rock, TX. How cool is that? But the result is better than cool. The immediacy of online listening means we can continuously build a better business based on real time customer input.
One further thought, beyond listening and learning, I’d also highlight the benefits of engaging in online conversations using social media. If your customers are connecting with each other, why not join them? At a minimum you are forming a relationship, and more broadly, a community. There are all kinds of benefits to deeper and interactive relationships. One of my colleagues likes to say, “we used to host, prepare and serve the dinner party. Social media allows us to come to the party, join the conversation in a more relaxed manner and be part of it.”
The above three mentioned reasons, hit the bull right in the eye: the changes in media communications with consumers, immense value of authentic communications and eventually the direct contacts to consumers. Exactly these facts are the decisive pleadings for a solid place of Social Media in marketing mix.
Marketers in Germany should take these pleadings seriously into account. All three reasons do not only apply specifically for the U.S but rather this development applies as well here for Germany.
Change in media communications with consumers is less of a threat and more of “a not yet exhausted of possibilities”. It was never so easy to listen and to communicate with consumers in direct dialogs – cost efficient and less of divergence. Yet, one should not forget, that Dell had its Dell Hell experience before it got to this point of realization. If you want to read the whole interview, here is the link.
September 29th, 2008 by Fiana de Guzman
I know, of course, that retailers worldwide have been selling fashion products online for a long time, but how many times have you actually stumbled upon a brand you didn’t know before because of a sophisticated marketing strategy that just hit you? Exactly – me neither.
The awareness of how important online marketing really is today has not reached beyond a very limited number of people. Marketing is no longer subject to classic media and could be highly effective on the internet. However, there are no trained people to do the job. Universities don’t offer according programs. There are only a small number of online marketing courses in the US as well as in Germany (only started this year) although marketing should realize that it needs to expand to the internet to reach consumers, since (almost) everything happens online.
Fashion designers in Milan, Italy, finally realized how important online marketing has become. “It took time, but Italian fashion companies have come to recognize the potential of online sales and now one of the country’s most highly regarded universities is stepping in to train a new breed of managers for that growing industry. … In November the business school at Milan’s Politecnico University, called MIP, will inaugurate Italy’s first master’s degree program aimed at creating specialists in online fashion sales,” The Global Edition of The New York Times reported a few days ago. So far, many Italian fashion labels have lagged behind their peers. Some (e.g. Versace) still don’t have online sales presence. – Their reasons, i.e. problems: fear of damaging their brand, complexity of payment, shipping and returns.
Italian fashion companies support the academic effort. The Yoox Group, a multi-brand internet retailer that pioneered the sale of fashion products online, helped develop the program and provides 3 scholarships. Also, Giorgio Armani offers a scholarship and work experience at Emporio Armani’s online store.
Alessandro Perego, head of the research institute at MIP, professor of logistics and supply chain management and director of the new e-fashion degree says: “Fashion companies can’t train their people fast enough and they need employees who can come in already with the skills. Every time a new site opens, there is need for people with these skills and there is nobody to fill the jobs. We saw the market and have moved to try and fill the void with this master’s.”
Armani sums everything up nicely in an email: “The web will become increasingly important to fashion brands and designers. … Education is vital in the fashion industry. The point of getting involved in an academic degree in this way is to approach the sector in an ambitious, curious and open-minded way.” He further states that internet presence has become important not only for the business it generates, but because it allows the brand to expand beyond customers with a store near where they live or travel. – Well put!
The idea is genius, not only for the fashion industry but for companies in general. This should suffice as a good example to follow. Consumers are online, so should the brands.
