Word of Mouth Marketing: Everything Old is New Again

dale_carnegieThumbing through the Site library, we came across some nice pointers given by Andy Sernovitz in his Word of Mouth Marketing of 2006:

  • Reply and respond.
  • Thank people who say nice things about you.
  • Fix problems and make people happy.

Puts to mind advice from a marketing trailblazer of another era, Dale Carnegie. First published in 1936, How to Win Friends and Influence People seems as relevant today as ever. Leafing through our – ahem – 1980 print edition, Mr. Carnegie’s advice is spot on for anyone engaged in word of mouth, buzz marketing or social media marketing today:

  • Become genuinely interested in other people.
  • Give honest, sincere appreciation.
  • Be a good listener. Encourage people to talk about themselves.
  • Talk in terms of the other people’s interest.
  • Make others feel important, and do it sincerely.

‘Twas the Night Before Twitter Got Montetized

moneySo what do we think, Tweeters – would we like to get a fraction of a penny for each Tweet? According to Ad Age, it can be done in three easy steps.

Site is skeptical. Volume is the name of the game in online advertising – advertisers have to kiss a lot of toads (put forth many, many images) to find a prince (get a click), even when the audience is well targeted.

Although some Tweeters have impressive follower volume, we’ve yet to see numbers that would mean anything to an advertiser, most of whom need to present an ad to several hundred thousand unique visitors a month before they see any real ROI from an advertising investment. Keyword: uniques.

Sure, our Twitter followers are highly targeted, presuming they self organize into networks of shared interests, but their networks are also relatively static. We’ve yet to see any single member of a social network – not My Space, not Facebook – see hundreds of thousands of brand new unique visitors to their page every month.

The result thus far has been that all that fantastic technology that can scan content and determine what product and service categories will interest the followers of one specific Tweeter or the visitors to a single Facebook page, usually identify one or two. This explains why when we log into Facebook and visit our friend’s pages, we see the same stale ads again and again.

Site thinks the content + ad model for monetizing web properties works quite well for many, but not for all and especially not for social networks. Facebook has yet to monetize profitably, let alone find a path to sustainable revenue growth. Famous for giving away the store to Facebook app developers who do see hundreds of thousands of unique visits per month, Site predicts Facebook will soon discover this is the only real revenue stream on the property. Watch for Facebook to start taking a bigger slice of the pie from application ad revenue.

Especially in today’s economy the path to revenue for online ventures needs to be much, much shorter. Investors don’t have five or six years to wait around for Amazon to get profitable anymore. Site is keeping it’s eyes and ears open for social networks that skip the ad model and aim for immediate revenue sources – direct commercial relationships with their users in the form of subscription fees.

The Truth About Viral Marketing

cellCheck out what Marketing Profs had to say about viral marketing. For once, the math looks right. 10 people tell 5, or a million tell 500K. So many expect the opposite – 5 people to tell ten each.

I also liked Dunay’s reference to Duncan Watts’ theory, also noted in Site’s Random Acts of Social Marketing post of a few months ago. Watts says it’s the network itself, not any individual contributor that makes the most difference in the successful spread of a virus. Today on MarketingProfs, Dunay rightly cites not the message content, not the viral mechanism, but the network properties of the “bored at work” segment as the determining agent in the spread of a meme.

Although, message content that includes information about a public figure with a personality disorder (Perez Hilton, W., etc.) does help!

Twittering Mad Men

betty_draperI was thrilled to find a replacement for my dearly departed loved ones, Six Feet Under and The Sopranos in Mad Men, my new crush. I was a slow convert, but to steal a line from Peggy Olson, “It stays with you.”

Also entertaining has been the back and forth between AMC and Twitter over the Mad Men cast that showed up as personae on the Twitter messaging network. It appears AMC made a stink at first, but then starting drinking the social media Koolaide, in the end, applauding this kind of fan engagement.

It’s also been speculated that AMC is really behind the Twitter cast of Mad Men in the first place. Their Twitter profile pages do look suspiciously on-brand and well-packaged. It would surprise me if AMC were as social media un-savvy as the affair would lead us to believe. Getting upset by the fact that community engagement has a life of its own is so over.

Social Media Strategy and Executive Blogging

imgres-3More and more, execs are being prompted by their boards, their PR staff and their agency partners to blog. They know the importance of social media. They’ve seen the number of social media-focused panels triple and quadruple at their favorite marketing conferences from ad:tech to TED. They are beginning to listen seriously to what their customers are saying about their products and brands with social media monitoring tools and are even facilitating more consumer-driven dialog by building community platforms for customer feedback and ongoing dialog.

But when it comes to writing their own blog, marketing execs often are slow to start because they don’t know what they want to say.

I thought this recent post by the CMO of Prosper, an auction-based peer-to-peer lending site (and, yes, a Site client), was a terrific example of exactly what a marketing executive blog post ought to look like:

1) It’s timely. The subject of the post is an initiative Prosper was to launch that week.

2) It’s personal. The post speaks to Catherine’s personal and direct experience with the initiative.

3) It’s a gateway to more content. The post includes a number of links to other parts of the site giving readers a number of avenues for more content.

With all the pressure on CMOs today for accountable, metrics-driven, move-the-needle marketing, it can be difficult to justify pausing your bottom-line focus to write a blog post.

But to my mind, executive participation in social media is a crucial part of a comprehensive social media strategy. Even if we have the listening technology, analytical staff and community marketers to build a relationship marketing nirvana, publishing our thoughts about the business, the brand or the industry and inviting public comment should always be a part of our social media marketing plan.

Random Acts of Social Media Marketing

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An interesting debate about the nature of social trends has been launched by Duncan Watts, a network theory scientist who challenges much of Malcolm Gladwell’s assertions about social trends in his breakout best-seller, The Tipping Point.

Central to the debate is the relative importance of influencers – those critical dialed-in, friend-laden, early-adopters behind whom the rest of us tag along mimicking their behavior and consumption habits. Gladwell’s Tipping Point expands upon a several decades-old theory that puts extra weight on these anointed influential few who marketers and politicians love to court. Indeed, if we agree that “one in 10 Americans tell the other 9 how to vote, where to eat, and what do buy”, all we have to do is find and persuade that 10% and we’re home free.

Hogwash, says Watts. The emergence of a social trend is governed more by the social environment at the time than anything else, he says. Like a wildfire, if conditions are right, the meme spreads no matter who started it or who carries it.

Having cut my marketing teeth before the Internet was a twinkle in anyone’s eye, this view has appeal. I still recall with wispy reverence the hollowed maxim that “the job of the marketer is to find a gap in the marketplace between what exists and what is needed and fill it.” The implication being that the marketplace is more to be surfed than manipulated.

Marketers of emerging technologies, of course, can’t look around for appetites to satisfy, they have to create them. They champion technologies that no one ever has heard of let alone needs. The benefits of many Internet technologies – especially social media technologies – are a challenge to articulate in the early going because their utility depends upon wide-spread adoption. It’s like always being the first telephone salesman in town (“Tele-what? Who would I call?”). If I were that guy, I too would target the visible, the connected, the influential town elite and hope that telecommunication catches on in Peoria.

But I’ll tell you what else I’d do. I’d target a few people at random as well, because when it comes to pushing memes through a network, what I like most about what Watts has to say is that it’s the random connections that seem to make the most difference. Highly connected network nodes, or network influentials can connect you quickly to all the contacts in their particular cluster – the president of the Rotary or Junior League in our small town example. But it’s the random traveling salesman or church choir member who may not fit into a well-defined social cluster who spreads the growth of a trend to places you may never have imagined.

Social Media Makes It To Salt Lake

salt_lakeI’ve always liked Salt Lake City-based Omniture as a company who does it right. When they morphed their tag line from something like “Web Analytics” to “Online Business Optimization,” I applauded their move to a broader definition of value. Like they thought they might actually be around for a while and would like to continue to grow their market and grow their capability set.

While many Internet marketing apps narrowly define themselves in an attempt to capture the coveted “owning of the category”, so they can capture the even more coveted “big dollars on acquisition”, Omniture always appealed to me as one of the lone long-haulers. In this day of ever collapsing cycles of birth, life and extinction in Life in a Web-based Application Service Provider, a business plan that thinks more than eighteen months into the future is a nice refreshment.

Short-term vision is increasingly standard practice to my observation and occurring in the most unexpected places. They say Hillary’s greatest miss-step was not having bothered to think past February 5th. Lately, I’ve been more and more delighted to come across an example of an engine that seems to be motoring along well and looks to have the stuff to keep at it for a while.

The first fiscal year after raising $50mm in an IPO, Omniture posted $8mm on nearly $80mm in revenue. Today, OMTR trades at roughly 4x the IPO price. They’ve added to their product suite intelligently, demonstrating a clear understanding of their customer and what their marketplace values.

Yet even with a more traditional business model that seems to value long-term sustained growth, they still impressively have a finger on the pulse of the Ever-Hungry-for-What’s-Next Internet Marketeer. Of course a broadly defined value proposition conveniently allows them to adopt all kinds of cutting edge angles for demonstrating the value of Omniture. The latest, of course is the social media angle, and true to form, Omniture has picked up on it deftly, claiming to help their customers to “better understand the synergies across their interactions with (customers), measure how (customers) engage with online content and social media such as blogs, videos, RSS feeds and more.”

And although we all know that the metrics and ROI around an investment in social media marketing are still a bit fuzzy, you can always count on Omniture to at least take a stab at it: “With the insight provided by Omniture, (our customers) are able to better ensure the right content is featured, increasing (customer) loyalty and optimizing their ad spend.”

May the Best Community Manager Win

hillary_obama

In The Vanishing Establishment, Nicholas Confessore cites decentralized organization and fundraising as one of the major assets of the Obama campaign. Hillary, he observes, has been left vulnerable by her old-style, establishment-cozy program of reliance upon an elite few for the core of her support. While she has tapped the relatively small number of heavy-weights in her corner for all they can legally provide, he can continue to collect a little bit from everyone in a widely distributed base of everyday folk.

Razor-sharp focus on high points of leverage was once standard practice for business, government, the media – you name it. Sharply hierarchical organization has long been the vehicle of choice in wealth and power creation from the Roman army to feudalism to the corporation of today.

But these times, they are a-changing. Something to note about what the influential of today seem to have in common: They all pay heed to the self-organized and highly distributed. From Wikipedia to terrorist activity we’re discovering at warp speed that self-organization can work much more effectively than strict hierarchy, and especially so in the production of information goods. And what is politics but the information goods business? Obama, with his highly distributed, self-organized power base, seems the more successful purveyor of information goods to my eye. We shall soon see.

As marketers, we are also in the information goods business. We are also finding out that distributed networks of input drive better and faster product and marketing innovation. Witness Dell’s Idea Storm, a forum for Dell users to share ideas for product improvement. Dell launched Idea Storm after it discovered that a self-organized community of Dell customers and prospects already existed and they were already connected. They were sharing their (sadly, upleasant) Dell experiences on YouTube, blogging about the brand and influencing purchase behavior by a disturbingly large degree. Dell responded to the crisis by harnessing the power of the already connected community and facilitating its growth with Idea Storm.

As she chips away at Obama, it’s becoming ever more clear that Hillary can’t seem to find purchase. Where Obama deftly harnesses the power of the already connected community, Hillary re-tools her message. Where Obama delivers a resonant brand experience to voters, Hillary lodges a “features war”, attacking his product attributes. Where Obama gains momentum, Hillary plays catch up.

As marketers, as business people, we are wise to take a lesson in community management from this increasingly interesting voting season and that is this:

This way of communicating with your community doesn’t work any more: “Listen to me – I’m (better, smarter, faster, more experienced).”

This one does: “Listen to me. I am one of you.”

I’d Like to Buy the Virtual World a Coke

coke

One of the most interesting speakers for me at THE Conference on Marketing held earlier this month in Naples, FL was Michael Donnelly, Global Digital Marketing Director for Coca-cola. He presented the case study of a contest held by Coke to design a virtual vending machine in Second Life. The machine was not to dispense soda cans, but experiences for Second Life avatars.

Examples abound of marketers trying to force fit old media formats into new media. The first web sites were basically print brochures. Most of the branding activity in Second Life still revolves around “impressions” as measured by the number of avatars who wear, drink or otherwise carry around your branded content.

Sure, the Coke design contest winners end up carrying around branded content as well, but the nature of the design contest, to my mind, really leveraged the unique character of the medium. One of the winning designs dispensed snowballs and allowed avatars to engage each other in snowball fights. Certainly a more resonant experience than spending In World currency to buy a virtual can of soda.

Michael’s approach struck me as an example customer-centric marketing at it’s best. Really getting inside the heads of the target audience “Second Lifers” and engaging them in ways they really want to be engaged.

There were a number of other general points Michael made also worthy of repeating:

  • “Criticism leads to conversation marketing. I’d rather somebody tell me something bad than to not tell me anything at all.”
  • “There is a fine line between taking advantage of the community and being a part of the community.”
  • “Always get the advice, council and permission of a community before entering it.”

Fuel for the Social Media Bandwagon

fuel

Last week, I heard Forrester’s Charlene Li speak at a business marketer’s luncheon where she gave a comprehensive overview of how social technologies are transforming business. Charlene laid out a framework for how businesses should be approaching the emerging (and at times daunting) consumer-controlled marketplace that nicely dovetailed with Jennifer’s recent post about the Scout Labs Hierarchy of Needs. The basic premise: There are low-level, but critical business needs (like crisis management) that social technologies can and do address readily, and that higher level business needs (like becoming a customer-centric organization) are also very well served by getting across CGM.

When asked about the biggest hurdle companies face when seeking to become more tuned in to CGM, Charlene responded that executive buy in was still a big hurdle for some marketers and by far the single largest factor that contributes to success when adopting a social media strategy.

I caught this piece in the New York Times yesterday that gave a nice list of healthy examples of top executives that have actively embraced the new world of social media. I thought it excellent ammunition for marketers who are looking for convincing arguments to the powers that be that it’s not only time to start listening, but to invest in tools and best-practices for keeping up with consumer-controlled conversations.

If that doesn’t do the trick, keep your eye out for Charlene’s soon to be released book, Groundswell: Winning in a World of Social Technologies, in which I’m sure the case for a well-supported social media strategy at will be aptly made.