Posts Tagged ‘Marketing Strategy’

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” »

Social is the “New” Customer Experience

April 1st, 2010

A friend of mine and I have been emailing about the value of “social media”. Like most skeptics, the conversation is that social media is just a marketing channel. From the skeptic’s perspective, social media is about twitter, linkedin, facebook, youtube, etc. If viewed from that perspective, he is right. Social media doesn’t rise to the top of the priority list. Although consumer products’ budgets are migrating to social media, most of those budgets are creative advertising, games, promotions, etc. Directors of Marketing Communications worry about those budgets, CMOs worry about market share, valuation, new product innovation, sales and channels, etc.

Well and good, but there is a “but”…

In my opinion, CMOs need to “get the impact of social on the enterprise” as it is one of the most critical disruptions that we have seen in the last 15 years. We lived through the web disruption, this will be equally as disruptive. My friend is right that CMO’s don’t get fired or hired for “social media”, but they will get fired or hired for performance; which is going to be impacted on their ability to leverage “social” in their customer lifecycles.

Our consulting business is about socially enabling the enterprise, in particular, the end-to-end customer lifecycle. Lead generation over public social networks is only a small part of it. Customer retention rates, churn rates, customer satisfaction, referrals, etc. are all a part of the customer experience. We are seeing a fundamental change in the way customers (B-to-B, B-to-C, Channels) expect to interact. Social CRM is the first step, but it needs to be more strategic, cross-functional and impactful to reach its full potential.

We are seeing the set plays that Marketing used to call FAIL faster because they aren’t fluid enough to react to the dynamic flow of information. By the way, it isn’t only CMOs… CIOs are hungry for how to manage, VPs of HR, VPs of Sales, Channels, etc. Yes, I see CMOs getting churned much faster if they don’t perform, but because they can’t figure out how to leverage social strategy to compete. Social Market Leaders will become Market Share leaders.

As an example, we gone into several large companies recently and recommended  in the initial meeting that they change their sales and marketing strategy based upon the social market research that we then present to them. All outside, public information.

We are not playing “gotcha” with them, we are showing how Social is the “New” Customer Experience. Buyers are approaching the buying research, selection, and validation process is now very different because of social media. Not about the technology or “chatting with friends”, but about business impact.

Not only did they listen to us, but it validated their perceptions in the market as to the challenges they were seeing. By the way, these aren’t leading edge, consumer internet software companies, but  ”Old School” brick and mortar B-to-B companies…

Interestingly enough, we started with a good number of skeptics at the start of the meetings. We were brought in by executive sponsors; who wanted to get the rest of their executive teams around the need for a  “social media” plan, but their teams didn’t realize how strategic this could become.

You know that you are in a disruption when the pace of change feels overwhelming. Information is just pouring over the wall and you are trying to keep up. We were there with the last major disruption with the world wide web in the mid-90′s. Small companies were figuring out how to leverage the web to drive massive growth, much of it at the expense of larger companies that were caught looking at the web with distain or disbelief.

Don’t be THAT person!!!! if you don’t understand, there are many free and/or paid resources to get educated. Doesn’t mean that you throw out your existing business model and “kamikaze” your marketing resources into social media, but at least have a social marketing plan with a roadmap, milestones, budget, and performance measurement.

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.

5 Social “Truths”

February 18th, 2010

We, Social Gastronomy, hold these “truths” to be self-evident. These beliefs are a synthesis of our learnings from our social consulting. These are the foundational beliefs that are core to our practice; from analysis, planning, consulting, to execution.

  • Shift in buyer behavior is due to social media technology disruption on par with other major technology shifts
  • Social market leadership is becoming a critical business performance indicator
  • Social media technologies are better enabling the customer experience to become more customer-centric; both from a process and online community perspective
  • Unstructured social interactions can be integrated into quantifiable business performance metrics to enhance business intelligence
  • Key to social market leadership is social enablement of each stage of the customer lifecycle

Why this Blog isn't Like Others

July 30th, 2009

Since the focus on my blog is marketing strategy, most of my followers will be surprised to find me writing on tactical blogging. However, I have gotten a good number of requestsregarding how am I getting such traction with my blog, even more so than most websites. So, this is a deconstruction of my approach for those who aren’t familiar with how to build a blogging strategy.

First, let me outline why this blog is different than most of your traditional blogs:

  1. More like a corp blog than a traditional individual blog- I am running this as I would if I were the CMO of a company and I needed dynamic content for my website and for direct messaging to the market.
  2. I am playing a specific role as a content manufacturer versus a content distributor – I have written about how I see the the development of tiered content distribution on the web (Search Engines versus Social Media for Marketing Awareness)
  3. Focused on establishing my thought leadership in the social marketing space – hence the original, higher quality content.
  4. My audience is the “C” level executive decision-makers that doesn’t have time to read blogs -Kind of tough to reach people via a blog who don’t read blogs, but my strategy is to leverage indirect channels of establishing relationships prior to engaging. I am getting read, but I am reaching them through other channels and then bringing them to my blog one at a time.
  5. My blog is obviously integrated with my offline and other online marketing activities -The decision makers don’t care whether the information is offline or online, they just want quality from validated sources. My marketing strategy does both prior to engagement.
  6. My blog isn’t as targeted – I would like to be more targeted, but I am having to balance my desire my long term goal to find a permanent role with my short term social marketing consulting. Hence, it is a bit schizophrenic in switching between broader CMO topics (Web 2.0 product management, product marketing, and lead generation) and more targeted social marketing.
  7. You will notice that I don’t have links – It is not that I do not want to be helpful to assist you in finding additional strategic marketing resources, but they are time consuming to build and, in truth, they distract from the narrative that I am building between posts.
  8. Very little third party content for the same reason – I am showcasing my expertise, building a narrative around social marketing, and focused on building a library of original content. I will occasionally comment on really cool information, but I try to be a destination for original content.
  9. I have turned off the commenting (too much SPAM) – I receive feedback through my social networks, twitter, email, and back links. Please reach me through these vehicles (contact info in the sidebar) as I appreciate people the feedback.
  10. I have a micro targeting strategy versus a macro blogging recognition one – In part, I am more focused on creating a thought leadership center for people to leverage for understanding social marketing, validating my expertise, and providing a call to action around my resume. Hence why I am on a hosted wordpress with poor Seach Engine Optimization. I am not looking to establish myself as a blogger, but rather I am validating my knowledge as a Marketing Executive with some very cool, cutting edge expertise.

My Recommendations for Starting a Corporate Blog

1. Start with the Strategy first. Are you blogging for brand recognition, validation, sales support?

2. Understand the mechanics of blogging – what rules will you follow, which ones will you not. I break some rules because it supports my strategy to do so.

3. Build an editorial calendar – map out the narrative that you want to deliver and manage to that

4. Pace yourself – fewer posts of higher quality is better. On the other hand, make sure that you are at least once or twice a week, preferrably more.

5. Don’t “Build it and They Will Come” – doesn’t work. You need to promote it, get it added to online catalogs, cross promote with other marketing communications channels, and get the word out. It takes a while to build visability and even longer to build a regular following.

Hope this helps.