What Should You Consider When Integrating Social Media

by Eric Tsai

As we progress into 2010, the rapid growth of social media has allowed more access to information, consumers, communities, and experiences. This new medium has enabled a new way to communicate and share, from B2C to B2B marketers are all trying to figure out an edge. Many brands start to focus on the hybrid approach which I believe will be the next phase of digital and web marketing. The question is what role will it play in the marketing arsenal?

Here are 3 steps to consider when integrating social media to your marketing practices:

Brand Strategy Reassessment

Understand the changing habits of your customers should be the focus of your brand. Use the 80/20 rule to segment your customers and identify the difference between your old customers and new customers. The recession has permanently altered the way people think of value and the concept of trust.

According to Decitica’s new study, “Marketing to the Post-Recession Consumers,”

The effects of the Great Recession on consumer behavior are so profound that many of the assumptions underpinning consumer segmentation are no longer valid; and
Marketing strategies that do not fully recognize the diversity of consumers’ recession experiences won’t have the desired potency in the post-recession world.

Business owners should reassess existing brand strategy to gauge the shift in their industry ecosystem. Although the above report focuses on B2C, for B2B marketers, you can expect similar shift in behavior from a high level perspective.

The key is identifying the new trends in how your customers think, feel and act. Your customers may be part of the fastest growing mobile user groups or have adopted new ways to find and share information before they buy. Every person and their sphere of influence were affected by this recession, reevaluate your existing customer segmentation should be a priority. It’s time to make adjustments as to how you view your customers.

Smart companies will always shift their brand strategy to focus on customer retention by maintaining a high level of value perception. Your customers expect you to keep your brand promise and that’s just the beginning, only those that are over delivering will earn the trust over time.

Integrated Marketing and ROI

Social media’s growth is undeniable, it seems like every company has a Facebook fan page and a Twitter account not to mention all the early adopter consumers. For example, according to a report from BabyCenter, “The number of moms who use social media regularly (e.g. Facebook, MySpace, BabyCenter Community) has significantly increased from 11% to 63% since 2006; a change of 46%. 44% use social media for word-of-mouth recommendations on brands and products and 73% feel they find trustworthy information about products and services through online communities focused on their specific interests such as parenting.”

So does this mean if you sell to moms, you must get into all the social networks? Should social media marketing be your priority? Not so fast.

According to a study from MomConnection, The Parenting Group’s nationally representative research panel of 5,000 moms, “the role of social networks in moms’ lives is still largely for entertainment and personal communication; it’s not a channel where most moms are receptive to gathering product information. Only 24% of respondents have used Facebook for product information and buying advice, while 5% have used Myspace for product info, and 3% have used Twitter.”

Social networks is still growing and evolving because it’s mass media, it’s crowdsourcing and it’s here to stay. However, instead of being hype it’s moving towards ubiquity and part of the everyday mix that works alongside email and search marketing. People will continue to search for answers online and offline regardless of B2B or B2C. Every chance you get to optimize your brand’s search ranking is an opportunity to leave a bread crumb for your prospects.

Moving forward, the challenges will be to monitor, measure and manage a fully integrated campaign due to the amount of resources and time it takes to pull together the overall picture. This is precisely the reason why you don’t need to be on all the social networks or even be on it all the time. Some companies use social media as a platform for effective one on one engagement while others utilize it as a PR tool.

Whatever the role social media plays in your organization, you have to really understand how social media is driving your business. If you’re doing social media, do you know how many sales you got out of your social media app? Are you measuring the actual incremental sales from your e-commerce store? Or is social media primarily a driver for your brand value?

Both print and digital advertising costs have come down dramatically, this presents a new opportunity for a dynamic approach to hybrid marketing. You can simultaneously capture your audience via print and web advertising but the key is to identify which channel they come from to rapidly and accurately aggregate customer and prospect data. Perhaps most of your new customers reside on the internet while your existing customers still favors the traditional channel. Regardless of how you integrate your marketing campaign, remember to benchmark them so you can gauge the ROI to improve your sale funnel and lead generation capabilities.

If you goal is to build a customer engagement program, consider incorporating it with existing and new CRM (Customer Relationship Management) tools that can be customized for each individual consumer. This helps to improve the ROI with more measurable data against the deliverable.

Here is “2010 Digital Marketing Outlook,” an excellent report from the Society of Digital Agencies (SoDA).

Two Thousand and Ten Digital Marketing Outlook

Business Alignment

Businesses will emerge from the recession looking to further strengthen engagement and interaction with their customers. But what does “engagement” really mean? How much does it cost? And what will it take to engage a customer? If you have already done the first two steps by reassessing your brand strategy and integrate social media into your marketing campaigns, your next focus should be to develop a social media policy to protect your company and make incremental changes to improve every aspect of your business.

I’m hardly surprise when I read the new consumer poll by CMO Council and InfoPrint, that “consumers today are deluged and overloaded with a plethora of unwanted direct marketing and promotional messages that are blasted out via email, or mass-produced and mailed in vast quantities, ending up choking mail boxes and filling recycling bins. In most cases, recipients ignore, or have become immune, to standardized commercial overtures. And with the advent of the Internet, consumers are seeking product information and affirmation from trusted sources and referral networks online.”

That’s the path social media is on right now.

Instead of email and mass-produced mailers, it’s spam tweets and uninvited LinkedIn notifications. Marketers are forgetting that consumers and prospects are real people like you and me. At the end of the day when we go to the grocery store or eat out at a restaurant we want to be treated like a person not a prey. It’s shocking to me that “staying relevant, valued and connected to customers has become the number one challenge for marketers today” according to the report.

The biggest adjustment brands must realize is that in social media you’re no longer in control of the conversation instead you will turn over the brand experience to the community and let them define it. If you want people’s opinion they’ll give it to you the way they want how they want it. Social media will NOT fix a bad product or negative customer experience. What it will do is to force you to reveal your brand’s true persona, allow additional means for your customer to reach you, and capture relevant analytical data for product and service improvements.

If you read my previous post “The 12 Principles of Brand Strategy,” you’ll know that principle number 2 states that your brand is your business model. Well, if your customer’s behavior is changing, shouldn’t you adjust your business too?

Checkout these challenges to social marketing effectiveness, and you’ll understand why it’s not so simple to integrate social media into your existing marketing practice. Is it worth to invest in obtaining a large number of Facebook fans or Twitter followers? How do you convert them into sales?

There needs to be a transition and I believe hybrid marketing on a single integrated platform will be the next trend to emerge in an attempt to leveling the playing field across all social networks.

I hope you find the information helpful, share your thoughts what do you think? Have you integrated social media into your marketing strategy?

3 Keys to Improve Your Brand in Social Marketing

by Eric Tsai

Many businesses continue to operate under the assumption that a website, a basic product offering or great brochure will bring profits and revenue to their bottom line. Those days are over. Brands are now crossing over into the hybrid marketing era that incorporates some form of social media.

You already know the importance of product, price, placement and promotion, but none of that matters without people. People is what build relationship and creates opportunities. And that’s exactly what social media has added: the fifth “P” of marketing.

Whether your brand provides information products, consumer goods or services, one thing still remains the same: the most effective marketing is still word-of-mouth (WOM).

WOM generates buzz and it gets passed along over and over and over again in a highly influential way. It’s how friends tell friends about the things that excite them or what business owners tell other business owners on what works for their business.

According to the latest Nielsen Global Consumer Survey: 90% of consumers said they trust recommendations from people they know, while 70% trusted consumer opinions posted online.
trust_in_advertising

It’s indicative that all forms of advertising retains certain level of pervasiveness to them. In the case of WOM, it contributes to instant social proof and is particularly effective in social media.

Consider social media the new viral marketing tactic and will typically involve the following steps in launching a campaign:

An effective message: How you position your brand and the message you’re trying to get across. Knowing your audience (the influencers, decision makers) is the key to build a winning message. It’s all about getting the right message to the right people while being authentically efficient. Communication is the heart of your customer acquisition and engagement strategies, the key is fostering a high quality relationship that aims to build long-term value: the foundation of a trusted connection.

A targeted channel: Although many brands are still utilizing traditional media outlets, ideally you want to target the most cost-effective channel that’s appropriate for your brand. Social network advertising channel is rapidly becoming the favor platform for brands because online advertising is cheaper compared to other mediums such as TV and print and is far more targeted. With that said, face-to-face interaction is still the top channel for people engagement. Nothing will ever replace the old fashioned hand shake, a lunch or even that discovery phone call.

A viral network: Social media has created a new instantaneous viral network, Facebook has more than 250 million users and Twitter has 20 million growing more than 1000% year over year. There are other social networks you can tap in such as LinkedIn or even the blogsphere. The point is your customers are already on those networks connected and connecting with other like-minded individuals, sharing and commenting in groups with detail profiles and pictures. Consider social network that’s a directory with the domino effect.

Now that you’ve got your killer message and a channel to distribute it, how do you get the viral network to be, well, viral?

The answer is simple: you need to be trusted.

Relationships And Conversations

In order to be trusted, you need to build influence on your audiences’ terms and be truly authentic in sharing and informing. I’ve discussed being authentic before so I won’t get into the detail again, but recently I’ve found that there are some low level engagement that are both ineffective and deceiving.

In a recent article “Who cares about your news”, Valeria Maltoni clearly illustrated the problem with inadequate engagement and I encourage you to read her post. In fact, I too received similar email from Gary Vaynerchuk’s publicist on July 9:

Hey, this is xxx from xxx. I’m working with Gary Vaynerchuk to help promote his new book: Crush It: Why Now Is the Time To Cash In on Your Passion. Because the book deals heavily with social media strategy and branding, which is obviously something this blog talks about as well, we thought it might be something you’d be interested in checking out…

Ironically on the same day I received another email from a personal branding expert which I will not disclose here asking me to boost his rating on Amazon:

…my book, xxx, is being sabotaged on Amazon.com. Basically, 5 people are giving it bad ratings, just to be negative and then at the end of each review where it says “Was this review helpful to you?”, they (and their friends) are selecting “yes,” which pushes up those negative ratings to the top and hurts the brand of the book.

As a favor to me, could you please go to Amazon link here and press “no” under the bad reviews and “yes” under the good reviews…

Honestly, I wasn’t offended but rather disappointed with the meaningless connection attempts by both media “celebrities.” Not only do they have a large following, they’re also role models to many. It’s obvious that both emails wanted me to do something but why would I care about someone that doesn’t care about me? Have they read my blog or know what their readers are about? Is it all about selling books?

You simply have to apply those questions to your audience to start thinking about the meaning in your engagement. Often time it will lead to questioning the value of your product and the impact of your offering.

People can be impressed easily but that doesn’t mean they’ll act on it to buy your product or do what you’ve asked. You’re audience can be your best word-of-mouth marketing campaign but that comes from within the quality of the engagement.

As a marketer myself I understand the “selling” tactics but it only works best if you bring value to the connection and develop a consistent long-term relationship with your audience.

Why waste the time to reach out if you aren’t ready to have a meaningful conversation?

Owning The Social Distribution Network

Social media is about having a presence then connecting and sharing meaningful information with your audience for the long haul. I’ve covered the pillar strategies in “7 Keys to Creating Social Media Strategy for Your Brand” as a high-level overview, so now let’s look the desired outcome of branding in social media.

social_marketing_network

Conceptually, you are the center of the network universe and social media is the tool that enables you to build a community around a product or service in forging your brand’s marketing distribution channel. Once you’ve earn the trust, it spreads like WOM marketing expanding to all directions reaching your potential prospects.

Whether you have a brilliant product or the perfect message, developing your channel takes time and precision while owning it takes relentless focus on your audience’s ongoing needs.

The downside to the network is that it can work against you destroying your reputation just as fast. This means knowing your brand strategy in social marketing will be extremely important to maintain the sphere of trust.

Here are 3 keys to improve your brand while marketing in social media:

1) Move the “free” line
If you want to be part of the decision making process, you need to be considered as a key opinion leader or resource. Supply your audience with free resources such as reports, statistics and guides that can help elevate your perceived expertise. With the amount of information on the internet today, your audience can find almost anything but if you can quantify the information that leads to a path of knowledge enrichment, you will certainly earn a few brownie points to be considered as the prime candidate. Google does this very well with their how-to videos extending their brand with social learning.

Your customer will compare before they a purchase anyway so why not give them a reason to start liking you because you’ve willing to share the wealth. If the free information you provide is valuable, you’re already a step ahead of your competition not to mention that you’re turning them into your “A” customers by providing all the necessary training and education.

2) Crowdsource for improvements
While the success of your brand’s often comes down to the effectiveness of your message, it pays to ask questions. Companies like Starbucks, Best Buy and Pizza Hut are all using customer feedback to improve product innovation and service experience. Starbucks even let’s their customers suggest on new product ideas. Social marketing shouldn’t just be about the outbound messages; it’s an ongoing dialogue to better serve your audience.

The customers that give you feedback are often your most loyal customers so why not reward them by fulfilling a few of their suggestions. Keep in mind that providing what they want should not be the main source of innovation, rather it’s a good starting point.

3) Embrace brand transparency
People appreciate honesty and integrity so all you have to do is stay consistent and admit when you’re wrong. If you try to twist the truth, you’ll not last long and people won’t forget manipulations and deceptions.

This can be seen by how Major League Baseball players are forgiven about steroid use if they admit their wrongdoing rather than lie about it. The players that got caught were all given a chance to show their remorse, the ones that lied never get to play the game again because they simply can not be trusted.

In addition, when you show progress or improvement as a brand, your customer will empathize with you for the openness and sincerity. Similar to the examples I gave above on the two media celebrities, if they actually took time to get to know me, I may very well assist them with their requests, but now it’s back to square one again.

How are you improving your brand in social media? What kind of success did you have with your social marketing efforts? I’d like to know your thoughts.

The Emerging Trend of Hybrid Marketing Model

by Eric Tsai

A day after my last post on how traditional media is deteriorating, Microsoft’s CEO, Steve Ballmer speaking at the Cannes Lions International Advertising Festival, argued that traditional media will not bounce back, all content consumed will be digital, we can debate if that may be in one, two, five or ten years.

In some respect the context of Ballmer’s statement is indicative of the fact that advertising revenues continue to shift to where the interaction is taking place – online.

There is definitely a shift in consumer behavior as the online experience, through social media, becomes more acceptable, accessible and affordable.

Keep in mind that social media in nature has low barrier to entry with the lack of gatekeeping process.

This is a double edge sword providing that content can be generated rapidly but the quality is dramatically reduced.

The message of social media is totally radical, pervasive, and decentralized while the content of social media focuses on the concept of crowdsourcing – defined via Wikipedia as “the trend of leveraging the mass collaboration enabled by Web 2.0 technologies to achieve business goals.”

That’s what’s carrying out the new social media revolution because it’s basically an extension of our sense of voice with instant speed for community-based design.

During Jeff Pulver’s 140 Characters Conference, Chris Weingarten of Rolling Stone made a great point: Crowdsourcing kills art because crowds have terrible taste! If you let people decide then nothing truly adventurous ever gets out.

I couldn’t put it better myself.

People stop asking why information gets delivered and the quality of them.

Typically authorities have a quality assurance process in sequence and in concatenation to produce high quality, relevant content.

What we must do on the receiving side is to continue to question the legitimacy and integrity of the source.

Social media allows us to connect horizontally across each other with relative ease, but just as Jeremiah Owyang recently pointed out that human don’t scale which questions the authenticity of top social media bloggers and news blogs.

This is very true in a sense that because we don’t scale, we’re only able to consume limited amount of information combine with short attention span, it’s a race to absorb as much as possible in a short period of time.

This propelled the publishers to publish rapidly; furthermore the increasing competition has put a sense of urgency pressure to compete for the same audience.

Ultimately the brand that can scale and remains relatively authentic perception-wise will be the ones to profit the most.

Hypercomptition To Hybrid Marketing

Hybrid Marketing

There is no sustained competitive advantage anymore according to Richard D’Aveni, professor of business strategy at the Amos Tuck School at Dartmouth College. He argues that advantage is continually created, eroded, destroyed and recreated through strategic maneuvering.

I found this particularly interesting because that’s what’s going on with the traditional media landscape.

Traditional media rules and orders can’t be applied perfectly under the new regime of communication (social media) and thus formations of authorities are under attack from these new forms of expression.

Simply put, it’s not a technological argument but the outcome from social and cultural conditions.

Think how content is produced, reproduced, distributed and consumed – more people are adjusting to the “new way of doing things” abandoning the old ones which leads to the permanent shift in behavior.

However, marketer should not disregard traditional media altogether, but combine traditional media with social media to form an integrated strategy or the “hybrid marketing” model.

In the hybrid marketing model, it’s about drawing a business model that works within the ecosystem of your brand.

The key is to have a fluid approach in creating a meaningful dialog with your market. Instead of focusing on what marketing tactics to use strategize on aligning your brand strategy with your business goals and view social media as one of the arsenal to choose from.

I believe this is a more practical approach and allows for integrated efforts for companies with branding 1.0 infrastructure to transition into branding 1.5 strategies because there is no point in applying branding 2.0 strategies if the infrastructure is not ready for it.

The idea is that the marketing strategy will streamline with the resources creating the desire outcomes that are measurable. Brands must consider the costs associate with deployment, control, and management to sustain such strategy.

There is a place for the shrinking traditional media. It will continue to evolve based on how we act and react to technology.

However, it won’t be technology that drives the outcome of the new media, but the cultural value of intellectual property and how it gets produced and consumed.

What’s your marketing strategy?

Perhaps you’re already utilizing hybrid marketing in your business model, share your thoughts here.