Archive for December, 2010

Engage Your Most Dissatisfied Customers for Radical Thinking

December 29th, 2010

By Dr. Philippe Duverger, Assistant Professor at Towson University

I agree with Tom Quinn’s recent post on the SMM Magazine blog—By Invitation Only: Letting Your Customers in Behind the Velvet Rope—where he advocates for a by-invitation-only brand community that leverages customer engagement in a private and exclusive environment. Facebook Pages and other initiatives that inform and lead your consumer base (customers and potential customers alike) to follow your brand and try your services and products is a different strategy than listening to your most valuable customers. Both strategies are valuable and have their place in the social media environment.

A social media strategy using Twitter, Facebook, blogs, and other open-to-the-public environments will raise awareness, trial, and traffic. But it will also allow competitors to listen in on the conversation. If you are in need of radical service ideas and want to mine your customer base or test new ideas, you should create a secluded environment where only trusted and creative clients can participate.

This is where the dilemma exists. Should you invite only your loyal customers to participate in idea generation through online brainstorming sessions? Or should you invite your most dissatisfied customers? I advocate for the latter strategy.

Your most dissatisfied customers are probably thinking about switching providers. They are more likely to feel underappreciated or have experienced sub-standard service from you. They might have logged a complaint, only to receive an unhelpful administrative response, which further enraged them, thereby increasing their dissatisfaction. So it is more likely that they can tell you what is wrong with your business.

You might not want to hear it, or you might dismiss the complaint as a rare occurrence or subjective to the customer’s unrealistic expectations. And you might be wrong. That customer could be a visionary who will feel compelled to find a service provider that will satisfy her needs. If none of your competitors provide it, the customer might decide to provide it herself (assuming she has what it takes), become your competitor, and drive you out of business. Too far, you think? Take entrepreneurs like Richard Branson (Virgin Group), Kemmons Wilson (Holiday Inn), or Howard Schultz (Starbucks). They all have a common characteristic: they did not like what was available in the market and went on to create it for themselves.

Interestingly, Starbucks recently engaged in a Web-based brainstorming exercise where anyone—including its competitors—could participate and watch. Starbucks collected thousands of ideas. Great… except that only one radical idea would suffice to make a winter-coffee company an all-season coffee and smoothies company. The Frappuccino, according to Schultz’s memoirs, was a customer’s idea and now accounts for almost half of Starbucks’ revenue.

Certainly, among the tens of thousands of participants, there are bound to be creative consumers, satisfied or not. But the most dissatisfied and creative ones either won’t participate or will be outnumbered by the conservative, happy, and loyal customers.

Cyberbullying is explained by the balance theory where a customer posting a radical idea might preface it with a complaint, leading others to defend the brand by bullying the culprit out of participating. The solution? Segregate your behind-the-velvet-rope communities between radical thinkers and those who only have improvement ideas. Or, more practically, have a radical-thinking community composed of your most dissatisfied customers. And then listen.

The Perfect Bundle: A Netbook and an Aspirin

December 22nd, 2010

By Jeff Hasen, Chief Marketing Officer at Hipcricket

I’ve always thought that a drugstore was a place to treat a headache, not to receive one. But we’re in dangerous territory these days. No, not the kind of danger where your wife or girlfriend asks you to pick up a feminine product that will be in your hand just when your buddy—armed with a mobile device and Twitter and Facebook feeds—is in line for his daily dose of beef jerky.

Consumer electronics have found a home at CVS between the deodorant and Pepto Bismol. How convenient, you say? How crazy, I say.

Why? It’s illogical to ask the consumer, or heaven forbid, the stockboy to be informed about consumer electronics products being introduced virtually every hour in the era of technology on steroids.

CVS began selling a $99 Sylvania netbook computer over the Labor Day weekend and quickly sold out in many locations, according to news accounts. It features a seven-inch display, 128 MB of internal memory, and 2 GB of NAND Flash. The computer runs Internet Explorer on Windows CE 6.0. How wonderful.

If you walked down the street or into your local CVS store (otherwise known as your consumer electronics destination of choice), do you think more than three in 100 could tell you the benefits and downside of 128 MB of memory and 2 GB of NAND Flash? What the heck is NAND Flash anyway? None of your Facebook or Twitter followers can help here.

Consumers were driven to CVS by Sunday circulars that proclaimed the “New Netbook… Wow! $99.99.” InformationWeek reported that “several users said they hoped to find a way to eventually download some Android apps to the netbook.” If you are going to hold your breath for this one, please consult the pharmacist. Other users said they bought the netbook for their children, while still others said they would give the machines as holiday presents. Shouldn’t this treatment of children be reviewed by the authorities?

The netbook can’t run Microsoft Office 2007 but gives lucky buyers WordPad, DocViewer, XLSViewer, and PDFViewer. Not to mention the headache that can be treated by CVS’ aspirin. Which brings us to the consumer electronics stores.

Whole new categories and operating systems are—or soon will be—for sale. Tablets are being offered that promise an iPad-like experience for a fraction of the cost. Smartphones are so plentiful that you have to wonder if every device can be that smart.

The better retail experiences will feature informed, patient salespeople educating the eager and uninformed. They will deliver on the “moments of trust” for the store and manufacturer. But that will likely be the exception, given staffing levels and the near impossible task of having anyone keep up with all the products and services that the tech world is introducing.

You’ll be hearing all about the pain on Twitter, Facebook, and a blog near you. It’s fortunate that aspirin is as mobile as the netbook and smartphone.

Three Questions the Savvy Executive Asks about Online Marketing Strategy

December 15th, 2010

By Stephanie Diamond, Author of Web Marketing for Small Businesses: Seven Steps to Explosive Business Growth

If you’re a leader whose business has an online component, you’d probably like to find some guidelines that make it easier to develop and sustain an online marketing strategy. There are lots of conflicting ideas swirling out there about what to do online. If you followed many of them, you’d be spinning your wheels with no revenue in sight.

As someone whose has worked online since 1994, I’ve watched the marketing “shiny object” change from Web site to newsletter to blog to social media network. And on it goes. I know that getting locked into a tactic with no clear strategy in sight is a common mistake.

If you’re uneasy around the topic of social media strategies, you’re not alone. Because you’re not down in the trenches tweeting and posting, you probably don’t have the “hands-on” feel you have for other areas of marketing.

If you attempt to delegate, employees suggest all manner of tactics to engage customers. You’ve heard that you need to engage with Twitter and Facebook, study ongoing analytics, present sparkling content, and co-develop with customers. Great advice. But without the strategy behind it, your campaigns are destined to fail. Like every other area of business, you need to create the strategy first and make sure it flows down to everyone in your organization.

In formulating an online strategy, here are three questions to consider:

  1. Value. Do your employees know the real value consumers place on your products and services? If you don’t develop and constantly hone that message, your employees can’t communicate it in their social media efforts. In turn, all the ratings and comments that show up about your company will not engender the “word of mouth” referral power they could. If your customers aren’t selling for you, you’re missing out on one of the most powerful weapons you have today.
  2. Intellectual property (IP). Are you encouraging your employees to mine the intellectual property hidden inside your business to create information products and services? I’m not referring to the patents or formulas your company owns. The IP in companies today can be found in their vast stores of information. The key is to evaluate that information based on enhancement of the customer’s life. Think broadly. Consumers today are hungry for quality information that solves problems. Can your staff take that information and create videos, e-books, and other downloadable properties with that in mind?
  3. Competitive advantage. Do your employees understand who your real competitors are? I’m often surprised when I work on competitive strategies with my clients that they overlook several real online competitors. It’s a mistake to focus on only those who sell your exact product/service in exactly the way you do. The Web provides the opportunity for your customers to pick and choose from a variety of options. For example, if you sell sales training courses, your competitors are online video portals, coaches (both in-person and online), downloadable audio courses, etc. Make sure your staff has looked at all the possibilities.

One more note—there are many visual thinking tools (like mind mapping) that your team can use right now to gather ideas from all internal disciplines. Consider using these techniques to get ideas from programmers and marketers alike. In today’s marketplace, you can’t afford to overlook a great idea.

A CIO Takes On CMOs and Social Media Marketing

December 8th, 2010

By Colin Osburn, Chief Information Officer at Parts.com

As a technologist, most everything I do has a technical bent first, with true ROI close behind. I realize that technology and finance to a marketer are like sunlight to a vampire, but steadily more and more of the marketing types appear to be following the technical and ROI trend. Metrics, reporting, automation, and justifying that mind-numbing campaign are all things that marketers are doing presently, while showing true technical aptitude.

I’ve had a real taste of why marketing and I are such distanced bedfellows. Running a national automotive parts Web site is complicated. A lot of technical effort goes into the operation and improvement of our search function, images, text, etc. Our customer base is earned through large partnerships, SEO (technical in its automation), and complimentary business lines. We even launched a short-run TV commercial this year for the first time in the company’s history.

It’s readily apparent that everyone—from small businesses to mega corporations and all the MLM shills in between—is jumping on the “new wave of technology” known as social media. To any decent technologist, this “new wave” is the same stuff we’ve been working with for years, but it’s in a new box with a bow.

All manner of Internet black magic that I can find, I heap upon our willing CTO to do a test run. I’m always looking at the newest technology for application to our business model. Automated sharing toolbars and widgets? Yep. Banner ads? Of course. Social media? Absolutely.

But I should have mentioned we do not have a CMO on staff. (Either that, or I disabled his account and forgot about him.) That means the technologists and sales executives are running the show. That also means we got exactly the results from all of these new implementations that you would expect:

  • The banner ads are completely pointless. I intend to remove them.
  • The toolbar never gets used, and no one shares anything.
  • The forums are dead.
  • We get very little response from our e-mail blasts.
  • We keep Facebook and Twitter because they keep the brand public. We also keep them because it’s a new type of customer service.

The Parts.com site is designed for commerce. We make money when someone buys an auto part. Pretty direct. We haven’t added articles and sticky reading-style content because our user base comes to our site for a very direct task and wants to do it quickly. The same people most likely do participate in auto enthusiast forums and spend a lot of time browsing “car porn” (photos of hot rods, tricked-out cars, and classic vehicles), but not while they’re buying a part. We also have a disproportionately large number of auto dealers who use our site, and the service manager isn’t interested in reading something while trying to get the customer’s part overnighted.

We have Facebook. We have Twitter. But I refuse to attach our brand to MySpace. We have hundreds of friends, and there are a lot of people talking about a lot of things, 99% of which involves the buying and selling of cars. It’s pretty damn hard to get people hot and bothered about a camshaft replacement or that hot new discounted windshield replacement. Have you figured it out yet? We’re not just commerce, but commerce as a subsection of a larger vertical. And that vertical has plenty of content and places that provide it. So we implement what we can as fast as we can and tweak, wait, watch, and adjust.

In reality, some key points came to light for me over the past year:

  • CIOs and CMOs need one another. That’s so painful to admit.
  • Marketing helps those awesome new technologies become ubiquitous.
  • If you don’t have a marketer on staff, this is a good time to start talking to your network.
  • Technology for technology’s sake works some of the time, but not enough to generate an ROI that keeps the monthly revenue high.
  • Content sites will almost always make more on the items I listed, from social media to banner ads. Commerce sites will overall make more on a direct revenue basis. Build a widget, sell a widget.
  • Commerce sites can make progress with these social media tools, but they should not bet projections on them.
  • Being a subcategory makes you look for the “why” a lot sooner. Dell and Ford kill it on social media and “new wave” commerce sales because they are the market. We sell parts. There’s a huge difference.
  • Take what you can get. Better customer service and communication has been a real win for us with these tools, even if we don’t make millions on banner ads.
  • The Get Satisfaction site is a real winner for us because it enabled us to learn from our customers what we need to know. (Facebook has helped us with that as well.)

To be continued…

A Window through Which We can Look at Social Media Marketing

December 1st, 2010

By Ryan Sauers, Chief Marketing Officer at The Sauers Group

In all aspects of business, it is vital to utilize various tools to evaluate performance. One such device is the Johari Window. This tool is especially important for those of you in the marketing profession.

The Johari Window is broken into four distinct quadrants.

Let’s start with the upper left (blue) quadrant. This quadrant deals with things that are “public” in nature, meaning they are known both to you and others. It may seem that everything in the world of online information falls into this quadrant, but this is not true. For example, if you publicly display information that is accessible to anyone—on Facebook, Twitter, LinkedIn, etc.—then you fall into this category.

The lower left (yellow) quadrant applies to things that are “private” to you (known to self) and are not known by others. This makes for quite a challenge in the social media environment, as it is hard to keep things private in a world that wants to make everything public. In social media, posted/written information often has a life of its own. So many times, private information might be accidentally posted in a place where a person thinks it is safe and private but where others actually have access to it. For example, many people go on job interviews where the interviewer already knows a lot about them beyond their resume, just by conducting a search for that person’s name on Facebook or Google with just a few keystrokes. So we must purposefully control what we do and do not want people to know.

The lower right (green) quadrant is referrerd to as “unknown.” These are things we all speculate about and quite frankly are unsure of the answers. For example, will Twitter be around in three years? Will Google keep growing? Will the economy turn around in 2011? Will the buying patterns of Generation Y remain the same in five years? You get the idea. So this area of the window represents those things that neither you nor the people you are targeting are completely sure of. This quadrant is an important one to consider as you develop your overall marketing plans and what role social media will play now and in the years ahead.

The upper right (red) quadrant is called the “blind spot.” This refers to something that is known to/seen by others but not known to/seen by yourself. This provides a huge growth opportunity for all marketers. If we are not aware of our blind spot, then we are truly operating “blind.” This means we are not aware of what we are missing—and yet, others around us are quite aware of it. This is a huge no-no for social media marketing. For instance, let’s say your company (in the opinion of all stakeholders beyond you) feels you are overdoing or over promoting your every success through the many social media tools available. So colleagues, employees, clients, vendors, and others see your campaigns/efforts as overdone and borderline obnoxious. But what if you think (your blind spot) you are not doing enough promotion and need to increase your social media marketing efforts? The key is to learn what your blind spot is, so you can address it. A great way to accomplish that is to get candid feedback from a variety of different people who will tell you the truth and not just what you want to hear.

The overall goal here is for you to use the Johari Window as another way to examine what you are doing, why you are doing it, what you know, what you don’t know, and why you do what you do. Doing so will enable you to be purposeful in all your marketing efforts. Rememember… the tools of social media are here to stay, and they will become even greater in the years ahead.