Posts Tagged ‘marketing communications’

Social Marketing Economics: Cost of Attention versus Cost of Rejection

February 22nd, 2011

What would a world look like where an organization didn’t need marketing? All new sales came via referrals, the sales organization were just focused on order taking, and most of the customer costs were in retention and producing the best experience.

Yes, there are many businesses that look like that, but for most of us; we can never have enough new customers and we have to work for them

The challenge with the traditional marketing approach is that we focus too much on generating attention and interest, but we get lost in the costs. Point in case, email marketing is focused on the conversion rates from a campaign. So, we get a 10% open rate and a 2% conversion from the email campaign. But, if you think about it, 90% didn’t open and 8% rejected the offer. Continue reading “Social Marketing Economics: Cost of Attention versus Cost of Rejection” »

SEC Social Business Framework

October 21st, 2010

Beyond social media and marketing, Social Business is really about internal and external customer experience –a cross-functional responsibility of the entire organization.  To help executives wrap their arms around the key pieces that can be augmented through social efforts, the Social Executive Council (SEC) created the Social Business Framework. This framework is designed to help organizations understand how to align, manage, and bring cohesion to business objectives, company activities, and social solutions. In essence, this framework “operationalizes” social business in a manner that modularizes its components into company-relevant pieces that can then be utilized to build a social roadmap of strategic and tactical steps that facilitate implementation.

This framework also helps executives visually understand the complexities associated with a successful social program, as well as gain clarity on the:

  • Multidimensional benefits of an enterprise-wide social enablement program.
  • The structured business gains when implementing a social communication layer that allows free flow of ideas and reporting.
  • Limiting results gained when assigning social activities to one silo-ed department and/or junior marketing/public relations associate.
  • Opportunity costs of not participating in this program from a financial, efficiency and productivity perspective.

The SEC is an active forum for senior executives to collaborate and adapt the Social Business Framework to their own organization. The impact is too large and too overwhelming to do it alone —the SEC and this framework are here to facilitate the process and help our members gain social market leadership.

Not So Simple Definition of Social Market Leadership

March 1st, 2010

As we have gone around the country speaking on Enterprise Social Strategy, we have struck upon a simple concept that seems to resonate with senior executives; social market leadership.

On the surface, it seems simple:

  • Thought Leadership – Stepping into the vacancy in the market
  • Market Offense – demonstrating market leadership via social media
  • Brand Defense - protecting brand reputation on social media
  • Associations – creating the forum for market best practices
  • Social Influence – building relationships with key market influencers
  • Social Marketing – influencing the market’s requirements for competitive products

However, ask we dig deeper, we realize that how you measure or even how you define what you measure is critical. We have been asking industry leaders “Who is the Social Market Leader in Your Industry?”. We get a lot of “We are…” then after we ask them “how do you know?”, we get “What do you mean?”. Then when we explain what social market leadership means to us, we get “We’re not sure…”

Our definition of Social Market Leadership… defining the thought leader in the social market with influence over public social networks like Linkedin, Twitter, Facebook, etc, as well as, industry communities, groups, forums, blogs hosted by vendors, associations, publications, enthusiasts, etc. In some industries, we do an audit and find over 100 unique platforms excluding the blogs.

How do you define thought leadership? Are you sharing your information with others? It isn’t what you say, it is what other say about you. How frequently do they interact with your information? Do they react positively? Do they tell everyone about what you say?

How do you define influence? Do you have credibility and reach? it isn’t about reaching everyone n the market. It would be nice, but for most businesses, that isn’t realistic. The brand icons already have a well established brand reach and they are considered a market “brand name” that define a standard. For the rest of the companies, there is a trade off between reaching everyone and reaching the right market cost effectively. Influencers are really about prioritization. Do the influencers have the “mojo”? Do they have the reach AND credibility? Can we hit the top 10% of the market and get them to evangelize on our behalf.

Market Leadership is not just Branding – There are algorithmic formulas out there that try to measure brand strength over social media. But, I think true long term social market leadership is really about creating a better customer experience through better engagement and interaction. With the transparancy that social media provides, companies are more and more realizing that architecting a better, holistic experience is critical to leveraging and maintaining brand equity and market share. If your social market share doesn’t represent your market share, might that be an indication of a problem in the market. If they don’t feel the same way about your company as you advertise, does that negate your market investment? Does your cost of customer acquisition go up because you don’t have brand evangelists and satisfied customers?

How do you measure Social Market Leadership? I think that this is the reason most organizations are struggling. There are simple measures from: simple Facebook fans, twitter followers, retweets, etc. To a little more sophisticated; social mention frequency benchmarking, sentiment scoring, number of influencer relationships, online community membership. To more complicated; taxonomy ownership, multi-criteria customer satisfaction, reputation management dashboarding, social lead scoring, share of customer voice, sentiment analysis benchmarking.

For those really pushing the limits of unstructured data analytics – the tools are rapidly moving towards ability to build a comparable, multi-dimensional dashboard to measure market perception differences between public social networks, online community members, and customer satisfaction surveying. Social media give such a dimensionality into buyer behavior, we think that we are only seeing the tip of the iceberg in terms of behavior analysis leveraging structured data analysis to build deeper analysis of unstructured social interactions.

No so simple an answer, but potentially worth a market.

Social (Marketing) Must Evolve to Survive

July 15th, 2009

A friend of mine recommended yesterday that I rewrite my BIO to reflect my expertise in social marketing. I appreciated the feedback, but it also highlighted an identity crisis that I have been struggling with since before I started this blog.

I am looking for a strategic marketing role that leverages my experience over the last few years in product managing, evangelizing, and consulting around social media platforms for marketing. I have also been consulting in social marketing and I am getting considerable recognitition for my thought leadership in the space, but I never saw my future as an independent social marketing consultant. I haven’t figured out the consultant’s dilemna; balancing sales with delivery.

Here is my real dilemna… although I am consulting on social marketing, I really see that social marketing as an independent discipline will eventually go away. If it is succssful, I believe that ALL marketing disciplines will be socially enabled thus social marketing as a term will become redundant. I suspect that it will take a while. So for my social marketing colleagues, you can rest easy that you will have jobs for a while.

I see that Social Marketing will be elevated in the marketing portfolios to become a strategic discipline reporting to the CMO akin to Product Marketing, Product Management, Marketing Communications, Marketing Operations, and even Web Marketing. But, I also see that each of these discpilines will need to become proficient in social marketing and understand how the changing dynamics on the web will impact their individual disciplines. I think that social marketing represents a fundamental shift in buyer behavior which will require a rethinking of the marketing function at large. Social media is a catalyst, but it isn’t the actual change. Buyer expectations around information, relationships, and the very nature of transactions are evolving. I see this as another phase (in a long line) of the changes driven by deeper internet integration and evolution.

Product Marketing & Brand Management - Today, the product value proposition is designed for multi-channel, but how do you design for user generated content where you cannot control the location, context, or delivery? Social media and marketing represent a shift in the direct communications of marketing messaging to the indirect. Product Marketing will have to package product messaging to become more compact (sound bites), reusable, and repurposable to ensure sufficient distribution through social media channels; ie. blogs, social networks, digg, delicious, Youtube, etc.

Product Management – We are already seeing the trend in Web 2.0 product management to build “lite”, component applications that are driven more by adoption that overwhelming features. These applications are built to be a point solutions, but can be scaled easily and as modules. The reasoning is that for many potential users, more is less… attractive. We are so overwhelmed with information that taking time out to learn a complicated application is not attractive. Building just-in-time functionality to meet specific pain with the ability to add more functionality later is attractive. In reality, you are seeing agile manufacturing of web applications. We are also seeing that happen in manufacturing, services, and distribution across society. This puts more pressure on Product Management to understand the customers, identify the segments, build targeted functionality prioritized to their needs, and delivery the right experience. A much more complicated and fluid environment made more difficult when the potential markets can self identify and congregate virtually. You can miss the mark and it will be much more readily visible.

Marketing Communications – Advertising is in full retreat from the recession, but also from the fact that more messages do not translate to more sales. Actually, the inverse. SPAM has overwhelmed our email infrastructures. The key to marketing communications now is multi-channel, targeted, and coordinated messaging that catches attention, engages, and provides a specific call to action. Social media empowers the audience to tune in or tune out the message as they see fit. Marketing communications needs to adjust to the power shift in this relationship. Marketing Communicatiosn firms are even more vunerable as many of them are transaction oriented (campaigns) where the newer channels are relationship oriented (long-term, one-to-one mass customization of relationships). Marketing communications needs to evolve to more of a pull strategy versus a push strategy.

Marketing Operations – CRM, Multi-Channel Marketing, Enterprise Content Management, Measurement and Reporting, etc. all get impacted. When does a lead start? How do you measure a fluid environment? How do you manage corporate information assets that aren’t in your posession which are designed for reusablility and redistribution (blog posts are an example)? How do you measure all of the activity to develop an ROI? (This one I can answer: you should build the ROI based upon your traditional metrics. Force social marketing to justify why these activities will lead to more effective marketing, not create justification as to why you should do social marketing)

Web Marketing – Where does Corporate Online Communities come into the equation? SEO and SEM? How do you balance the shift from search to social media? How do you manage the transition from social networks to your own onlne community? Engagement, Interaction, Adoption, Momentun?

Ironic that a social marketing evangelist is advocating the end of social marketing as a discipline. However, as a marketing executive first, I believe that social marketing is really about applying the fundamentals of marketing to a new environment.

Social Marketing Changes Everything Part 1 – Introduction

June 26th, 2009

If I asked the question “Who wants better leads, increased revenues?” I would see every hand up in the room.

” Through social media?” I would still see pretty much every hand in the room raised.

If I told them that they would have to changes their approach to marketing, lead generation, customer satisfaction, and their view of their market, how many hands would stay up? If I told them that they would have to take some risks, expose themselves (metaphorically), do something unconventionally, challenge their team, etc. would you find any takers? a few…

Now, if I told them that every one of their competitors is planning on doing this and that they could choose to do it early to get “competitive advantaged” or they could wait and be a “me-too”. I would find the room in two camps, split between the optomists in the face of a economy poised to recover and the business convervatives who are trying to maintain what the have in the face of a recessed economy.

I read a lot online from social media “experts”, but other than they advocate the use of social networks like Linkedin, Facebook, MySpace, Twitter, Youtube, etc. for business (Screaming ad-like tweets “You too can make money”…) I struggle to break through the noise to connect with the real innovators who have a strategic approach to integrating social media into their full marketing programs.

Here is my two cents worth – Social Media is fundamentally changing Marketing. In my mind, it is not about how you add the social networks to your marketing channels of communication (they should be thought of as channels), but rather how you rethink marketing and brand management. The initial wave of website in the mid-90′s started to a fundamental shift in marketing. I talk to a lot of companies about social media, Web 2.0, social CRM, social networking, etc. Some think it is a FAD, most think it is fun and interesting, some are trying to use it for business, but some are taking advantage of the rest to drive growth. This shift in marketing is happening again.

I am not talking about occasionally sending something out to the 132 people on Linkedin, 675 college buddies on Facebook, and the 3750 followers that you have built on twitter (these aren’t my numbers). I am not talking about building online forums into your website. Not talking about use meebo to chat occasionally with an ex-colleague. I can go on, but the point is that social-optimized, Web 2.0 interactions are creeping into the way that we all do business. You can use them or you can rethink your approach to leverage them to “change the rules”.

If you are a “changes the rules” type, you will need to subscribe to the RSS feed and have to come back to read the rest of the series on Social Marketing Changes Everything Part 2 – 5. I can’t fit all of the explanation into the a single post. This multi-part series will provide information on social marketing and answer the following questions:

  • What is Social Marketing? (I can already hear, not another buzz word…. but think about my Web Marketing reference above)
  • Why is a new definition required beyond Social Media, Social Networking, Social CRM, or Web 2.0 Marketing? (gotcha there)
  • So what? Why should I worry about this? Hint: Revenue Generation and Customer Referrals (I assumed this would be important to you)
  • What does a Social Marketing strategy look like?
  • What does a Social Marketing Roadmap look like for this?
  • How do I leverage what I am already doing?
  • How do I build a Social Marketing Business Case?
  • How do I measure Social Marketing?

Now that I got the major questions out of the way, let move next into the definitions;

Social Marketing – The re-orientation of traditional marketing to reflect the new post-digital, network relationship oriented, and influencer-driven social interactions. Social Marketing leverages a multi-channel, multi-directional approach towards building relationships with a transition away from the structured marketing roles like; product management, marketing communications, PR, Channel Mktg, & sales support. Instead, marketing is reoriented around enabling the key interactions that support the awareness, influence, interest, buying, and referral processes. ( it is a mouthful, but I am working on getting it down to one simple sentence. Give me your thoughts and I will incorporate in my next post)

Social Media – Basically, you have the social networks that you participate and the online communities that you own which are built into your corporate website. See my post on Social Media is Like Fishing for more details.

Online Communities – communities of interest built upon a foundation of Web 2.0 social networking tools; profile, blog, wiki, social bookmarking, calendaring, media sharing, etc that enable the user to interact with other users and content through the website. See my post on Online Community Blueprint for more details.

Post-Digital - If everything is becoming digital, why does digital matter? The buyer doesn’t really care if the interaction is on the web, they just want to get what they need. A lot of marketing still segments online and offline which creates an artificial barrier to developing a seamless customer experience. Social Media is changing buyer behavior, coming more fluid, and marketing must adjust the model to to support the reflected changes. See my post on the Changing Role of the CMO for further explanation.

The next part of the series will explore a new model for thinking about reorienting marketing towards interactions.

Part 2 – Theory

Part 3 – Business Case