Posts Tagged ‘ROI’

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.

Why Fortune 1000 (All) CEOs Needs to Understand Social Media and Marketing

July 7th, 2009

The reality is that very few Fortune 1000 CEOs (or even Divisional CEOs) will read this post. Actually, very few will read any posts. BUT here is why they should…

  • Marketing – Traditional marketing activities are getting diminishing returns; social marketing leveraging social media represents a shift to lower cost, higher return activities. Ecomomics is the driver. Mantra should be “Find more cost effective ways to drive revenue”.
  • Competition – The competitor that can figure out how to leverage online social relationship networks to drive customer acquisition at a faster rate grows faster.
  • Employee Productivity - Your employees can be much more productive leveraging these web 2.0 tools. Problem is that most organizations approach these tools at a tactical level and therefore only get marginal results. Some of the real innovators are using it to rethink and realign their value delivery systems.
  • Cost of Sales – Used to be that vendors that could short circuit an RFP could command higher margins. If your prospects are doing research on the web, you need to short circuit that process OR at least get in early enough to influence the process. You will lower your aggregate cost of sales.
  • Customer Relationships – Customers are demanding better information and better interaction throughout their lifecycle. Every major company has customer retention and referral programs. How is your organization trying to provide a better customer experience?

Could you cut lead generation, customer acquisition, or customer support costs leveraging social media? Can you demonstrate a ROI?

The short answer is “yes”, but having a Corporate Facebook page is probably not the right answer when someone on your board asks your CMO about how you will leverage social media …. or how you will drive sales growth over the next 2 quarters when you are also cutting marketing budgets. You could probably flog the troups to work harder to get the short term results, but the reality is that a lot of smart companies are crafting strategic approaches to social media to help change the market dynamics. If you are not getting the sales growth that you would like even in the face of a myriad of corporate initiatives, you may want to rethink “Social Media is a Fad” or isn’t really for <insert your market here>.

Why? Social Media represents a fundamental shift in the way people interact on the web. As a result, this impacts the way customers and employees interact in business. We all have B school case studies where innovative companies leveraged innovative technology challenge the established market order. There are just as many examples of where the established market leader crushed an upstart competitor by leveraging the same innovative technologies to maintain their market lead.

Your organization spends a great deal of money and time around preparing strategic plans, why aren’t you taking the same approach to social media? Could be a game changer for your business… or your competitor…

If you don’t have people in-house who can build and articulate real strategy with a Roadmap, Business Case, and ROI around social media & marketing, then I suggest that you acquire that talent post-haste. Even if you decide that you need a slow-roll approach to leveraging social media; having a strategic gameplan that is well thought out and justified is priceless. Especially if social media represents a fundamental paradigm shift in the way businesses interact with customers.