Archive for the ‘Measurement’ Category

8 Mandates for Social Media Marketing Success—#7: Ensure Value

By Kent Huffman, Author of 8 Mandates for Social Media Marketing Success

“What’s the ROI from all that social media stuff you’ve been doing?” your boss asks. One of his favorite questions, right? Or if you’re a small business owner, you’ve probably heard that same question from your partner or CPA.

Generating reliable performance metrics for your social media activities—gathered and reported in an efficient, easily interpreted manner—has become a major priority for practitioners of social media marketing to help them demonstrate the value from participating in social media and validate their investments in it.

Your boss, partner, or CPA wants to compare the investment of personnel, time, money, and other resources to the return. But without supplying verifiable ROI data and analysis, any long-term relationships that marketers hope to develop and maintain with their social media communities are most likely in jeopardy.

So how do you go about ensuring that you’re deriving value from your social media marketing efforts—and that you can accurately measure that value? Obviously, tracking online “chatter” can help expose the bad as well as the good. For example, your fans and followers may publicly laud your products or suggest improvements to them, giving you the opportunity to respond quickly and address their comments or concerns. Also, there are now a myriad of technology tools available that can help measure the financial impact of social media on your organization, including lead generation, e-commerce revenue, etc.

The social media monitoring and measuring process is still in its infancy. However, in today’s hyper-competitive environment and relatively weak economy, generating measurable, repeatable value from social media is no longer an option for most marketers.

(This is an excerpt from Kent’s new book, 8 Mandates for Social Media Marketing Success.)

Next: 8 Mandates for Social Media Marketing Success—#8: Continue Listening

Posted in Analytics, Community, Competitors, Kent Huffman, Lead Generation, Measurement, Metrics, Monitoring, Relationships, ROI, Value | Comments Off on 8 Mandates for Social Media Marketing Success—#7: Ensure Value

8 Mandates for Social Media Marketing Success—#2: Plan Carefully

By Kent Huffman, Author of 8 Mandates for Social Media Marketing Success

Too many marketers jump right in and start using various social media tools and technologies—such as Twitter, Google+, and blogs—before they’ve even developed a strategic plan or thought about how those activities might impact the rest of their marketing initiatives. Don’t make that mistake! Take a little time to determine how to best integrate social media into your existing marketing strategy and mix. It’ll pay off for you.

Step one in the planning process is to nail down specific social media objectives, based on the listening activities detailed in Mandate #1. Now that you know what your constituents care about and are discussing on social media, how does that impact the messages you need to communicate to them? Step two is to integrate your social media strategy into your overall marketing strategy to ensure your resources can be leveraged most efficiently and effectively and that common goals can be more easily reached.

If you work for a large enterprise, you have two significant advantages over a small business when it comes to planning and budgeting for a social media marketing program. First, your company’s DNA most likely has a built-in “think strategically” strand, and second, it also probably has a fairly large wallet. If, however, you work for or own a small business, you have an advantage as well. You most likely can make strategic decisions and launch new marketing programs fairly quickly. That can be a huge benefit in the fast-paced social media world.

Finally, be sure you’re prepared to monitor and measure your impact and progress. Establishing benchmarks and other metrics that can be tracked over time will help you better understand what’s working and what’s not, and thus be able to make whatever adjustments are necessary to ensure the success of your social media marketing activities.

(This is an excerpt from Kent’s new book, 8 Mandates for Social Media Marketing Success.)

Next: 8 Mandates for Social Media Marketing Success—#3: Develop Relationships

Posted in Blogs, Google Plus, Kent Huffman, Marketing, Measurement, Monitoring, Small Businesses, Strategy, Twitter | Comments Off on 8 Mandates for Social Media Marketing Success—#2: Plan Carefully

Going Gaga!

By Nina Buik, Chief Marketing Officer at HP Connect

I admit that I’m a fan of Lady Gaga’s music, but even more a fan of her marketing strategy:

  • Creates a globally recognizable brand image
  • Creates edgy, compelling headlines
  • Is “virtually” ubiquitous
  • Fearless of putting herself “out there”
  • Has built an incredibly loyal following

You don’t have to be “born this way” to be successful at social media, but you do have to have a successful strategy, or you may simply end up in a “bad romance.”

The social media explosion has proven that like-minded consumers/people like belonging to a group (e.g., ski club, track club, Lady Gaga fan club, etc.). They want to know more about the “thing” that makes them like-minded, and they want to communicate with one another. Thus the advent of social CRM.

So what is your strategy? Is it measurable? Is your entire organization part of and supportive of your strategy? What is your organization’s “love game” with your customers? Here are a few tips:

  • Other than your product or service, identify what your customers have in common.
  • Identify where your customers hang out—online and offline.
  • Take a good look at your brand image/messaging. Make sure it is current/relevant and “fits in” these virtual groups and/or physical locations.
  • Define measurable outcomes.
  • Assign passionate “owners.”
  • Provide tools to your foot soldiers (tweetsheets, blog templates, etc.).
  • Encourage your team to find the “edge” of their message (staying just within the guidelines).
  • Use a hub/spoke model (your website is the hub, and all external spoke messages refer the reader back to your site).

Lady Gaga has it right. Whether you enjoy her music or not, stop “dancing in the dark” and take note of her successful marketing strategy.

Posted in Analytics, Blogs, Branding, CRM, Lady Gaga, Marketing, Measurement, Messaging, Nina Buik, Strategy, Twitter | Comments Off on Going Gaga!

SXSW: 8 Essential Takeaways for CMOs

By Margaret Molloy, Chief Marketing Officer at Velocidi

Since attending the SXSW Interactive Festival in March, a number of CMOs have asked me for my key takeaways from the event. Articulating these succinctly has not been easy. After all, SXSW provided such valuable insights into new technologies, inspirational speeches, and fantastic networking opportunities. Upon reflection, I can summarize my key learning in a few words: get back to basics.

The pace of the technological evolution is dizzying—racing to keep up with it can cause us CMOs to lose site of the big picture. Digital platforms are not an end in themselves, they are tools that help us more efficiently do what we’ve been striving to do for years: engage customers, know them, guide strategy, and achieve growth and influence in our markets.

Based on this premise, here are eight imperatives to guide us through our rapidly evolving digital landscape, garner internal support, and achieve growth:

  1. Align all digital marketing activities with your company’s business goals. Focusing on the bottom line will help you choose the right platforms to engage your customers and build the digital initiatives to help you achieve the right results. (Remember that innovation and learning can also be excellent desired outcomes.)
  2. Manage your brand’s digital presence (web, social) with the same vigilance as your CFO manages cash flow. A well-executed digital presence—and the appropriate investment in it—will yield the customer data and engagement required to drive business strategy and impact your company’s valuation.
  3. Know your customers in a better, deeper, more textured way than your competitors do. Leveraging social media platforms to understand your customers’ personal interests, preferences, and motivations can provide you with data required to drive powerful new marketing campaigns.
  4. Embrace customer segmentation and pricing with discipline, or risk margin erosion. Given the degree of price transparency and ease of information sharing online, your margins need constant vigilance—not all customer segments require discounts to establish loyalty, referrals, advocacy, and repeat purchases.
  5. Channel your inner educator, specifically your economics 101 professor, when addressing digital marketing tactics with management. Train your executives on the strategic metrics for your business, or risk them defaulting to the popular definition of ROI (number of followers, website impressions, etc.). If management doesn’t know how to assess and measure the effectiveness of digital marketing initiatives, it’s not realistic for them to fund the programs.
  6. Strive to balance long-term customer relationship building with lead generation, activation, and sales objectives. Avoid the temptation to jump in and close a prospect on the first signs of potential interest, or risk losing them.
  7. Consider your brand a publisher and be clear on your content goals—education, entertainment, community building, etc. Draw on the entire spectrum of content (brand-generated, partner-created, user-generated, curated, etc.) to select the right mix to cost-effectively engage your customers.
  8. Be authentic in your customer engagements through all communications channels. Customers are smart, well connected, and can easily identify insincere behavior and expose questionable tactics—honesty remains the best policy.

Focusing on these imperatives will ultimately provide you with a compass to guide you through the evolving digital landscape and toward the digital programs that will help you achieve your business goals.

Posted in Branding, CMOs, Competitors, Content, Customer Intimacy, Customer Retention, Customer Segmentation, Customers, Engagement, Honesty, Innovation, Loyalty, Margaret Molloy, Marketing, Measurement, Metrics, Monitoring, Pricing, Relationships, ROI, Strategy, SXSW, Transparency | Comments Off on SXSW: 8 Essential Takeaways for CMOs

Influence Measurers: Will Klout Kill Community?

By Gary Schirr, Professor at Radford University

Like many of you, I sign up for the free influence-measuring sites. I am skeptical of all of them but check out my scores and those of online friends. I am well aware that I am no Justin Bieber (Klout score 100) or Barack Obama (Klout score 87) in online influence. But I take comfort if I am near the scores of tweeters I admire, such as @CKBurgess, @KentHuffman, @ChuckMartin1, @DavidAaker, and @WareMalcombCMO.

I find early efforts to measure influence interesting, but I am concerned that parties are taking these fledging measures seriously and making decisions based on them. Some tweeters choose who to follow by their influence score. A recent Wall Street Journal article discussed the importance that businesses are assigning to Klout scores: marketing freebies and even job offers may be tied to Klout scores.

Although I am not concerned that my tenure committee will pass me over for Justin Bieber or Britney Spears, I worry whether the influence of the influence measurers may impact SM communities. If tweeters believe that their online status, likelihood of being followed, and even employability may be affected by these measures, they will adjust how they act. A well-known management dictum notes that nothing can be managed until it is measured. The relevant corollary is that what is measured will affect behavior: bad metrics can lead to bad behavior!

Will the clout of Klout cause loutish behavior in social media? @Econsultancy summarized the flaws of Klout’s measures in a recent blog post. And in one study by @Adriaan_Pelzer, a bot achieved a 51 Klout score in 80 days simply by 1) tweeting gibberish once a minute and 2) not following back new followers. Senior officers at Klout responded to that study (and similar ones) by noting that they were working on algorithms to spot bots. Klout proposes to attack the symptom head on (who wants to be fooled by a bot?) but downplay issues of the metrics themselves.

What kind of “community” will Twitter be if everyone follows these “winning” behaviors? Do you judge tweeters by quantity of tweets? Is it optimal to have 10 times as many followers as people followed? Phillip Hotchkiss, Chief Product Officer at Klout and a serial start-up entrepreneur, commented on an earlier post I wrote on this issue. His most interesting observations are that Klout’s metrics are always being modified to measure influence, and that Klout is trying to differentiate between “bad bots” and “good bots.” It is good to know that Klout is constantly evolving in pursuit of good influence measurement. Phillip’s “good bots” are a little scary. Maybe there is a good science fiction story there!

Be wary of even well-intentioned measurers. For example, many researchers believe that U.S. News & World Report’s college rankings hinder educational innovation by focusing on reputation and resources that please faculty, rather than cost/benefit measures that apply to most services. Similarly, focusing on factors such as tweets that generate action (regardless of content) and on follower/followed ratios could impair Twitter’s evolution.

Be wary of these developing measures. Do not let the measures affect your behaviors or enjoyment of social media. Do not make hiring decisions based on Klout, unless you honestly believe that Justin Bieber is the perfect 100 and the most influential person online! And please, please don’t start tweeting every three minutes!

Posted in algorithms, Analytics, Bots, Community, Engagement, Gary Schirr, Influence, Klout, Marketing, Measurement, Monitoring, Research, Twitter | Comments Off on Influence Measurers: Will Klout Kill Community?

Are We There Yet? Tuning Up Your Metrics

By Marian Burk Wood, Author of The Marketing Plan Handbook

Before you roll out a new social media marketing program, be ready to answer one key question about results: are we there yet? Here’s a roadmap for tuning up your metrics so you’ll know where you’re headed and how to track progress along the way.

Look Ahead, Look Behind

Just as your GPS needs a street address to plot a route, you need three types of specific objectives to serve as destinations for your social media activities:

  1. Marketing objectives for brand building and relationship building (such as targets for brand awareness or customer acquisition). Ford’s campaign for the new Fiesta—initially a social media event reinforced by traditional media—set (and achieved) objectives for brand impressions and awareness as well as pre-launch information requests. In the follow-up to P&G’s super-viral Old Spice Guy campaign, one marketing objective was to attract a million Facebook fans to the brand’s social media “sacred club,” part of the push to increase brand awareness and change consumer attitudes.
  2. Financial objectives for money-related results (such as sales and profitability—by channel, by customer, etc.). QVC can set sales objectives for sales driven from its Facebook page (which has 300,000-plus “likes”) and its Twitter presence (more than 30,000 followers), track repeat business, and calculate profit by product and channel.
  3. Societal objectives that give your social media marketing a larger purpose (such as raising money for a worthy cause). P&G’s Dawn relied on the brand’s Facebook and Twitter interactions to get customers involved in achieving its target of donating $500,000 to wildlife conservation organizations.

And to steer clear of potholes, don’t forget to check the rearview mirror—learn from how and why existing programs hit bumpy roads in the past.

Prepare to Shift into High Gear

With objectives in place, your next step is to set up standards and a timetable for checking these metrics:

  • Compass points. Are you going in the right direction? For marketing objectives related to brand awareness or preference, metrics such as the number of Facebook “likes” and the number of positive blog comments can give you a sense of whether you’re gaining ground, standing still, or going south. QVC, for instance, regularly monitors the number and sentiment of comments on each blog post, promotional tweet, and Facebook post. Bounce rates, referral rates, and engagement duration are other compass points; think of indicators that make sense for your objectives and business.
  • Mile markers. You should be able to estimate how far along you need to be at various points in the journey so you can make interim adjustments as needed. For example, are you attracting and converting enough visitors every day/week/month to reach your long-term targets? Check these metrics early and often to avoid nasty last-minute surprises. QVC drills down into its sales statistics—sometimes minute by minute—to determine whether each product or promotion is on the right track and make mid-course corrections as necessary.
  • Speed. How quickly are you moving toward your destination? Look at viral rates for your communications to analyze how quickly you’re gaining new friends, subscribers, or customers (depending on your objectives), and investigate unusual lags or patterns in response to social media initiatives. If something is working especially well, use it to accelerate your results.

Now you’re all set to hit the road and put the pedal to the metal!

Posted in Awareness, Blogs, Branding, Cause Marketing, Channels, Engagement, Facebook, Ford, Marian Burk Wood, Marketing, Measurement, Metrics, Profitability, Promotions, Relationships, Sales, Twitter | Comments Off on Are We There Yet? Tuning Up Your Metrics

The Online Newsroom: The Factory that Runs a Brand’s Content Engine

By Ed Lallo, Principal at Newsroom Ink

Google your company’s name and see what comes up. Do the stories at the top of the search results reflect the business you’re running? If not, why not? Maybe it’s because your company has a better story to tell than is currently being told.

Facebook, Twitter, YouTube, and Google have changed the playing field for integrated marketing communications. What has not changed is the need for companies, organizations, and even politicians to communicate their stories from a unique perspective that only they can offer.

Social-integrated marketing communications offers an ever-increasing amount of tools to connect with targeted markets, but what has been lacking is a centralized content engine that drives conversation and integrates the elements of the promotional mix of advertising, public relations, direct marketing, and sales.

The online newsroom is the factory that runs a brand’s content engine. It’s the place to address brand issues, public relations, crisis management, marketing, and communications—all aligned with the CEO’s agenda. It’s the one place that consumers, vendors, and employees—as well as local, national, and international media—can obtain stories, photos, and videos told from your unique perspective, 24 hours per day.

But an online newsroom can be much more than just a newsroom. It can become the “landing site” for the social media efforts of companies, organizations, and political campaigns. The online newsroom translates your corporate agenda into a compelling story that the press, your customers, employees, vendors, and stakeholders want to read, learn more about, believe in, and contribute to on a regular basis. Using a proven model that delivers timely and influential news, the newsroom becomes an indispensable tool for a brand’s communications program.

A recent study of online newsrooms by the Corporate Executive Board—a member network of the world’s leading executives that spans more than 50 countries and represents more than 85% of Fortune 500 corporations—showed online newsrooms to be the top channel for disseminating information and effectively telling a company’s story.

Dynamic online newsrooms are not about pushing the company agenda from the top down, but instead letting the voices of others tell your story in a way that increases the credibility of your company’s brand. This “corporate journalism” style adds balance and influence and gives your brand a unique distinction.

With cutbacks in budgets, staff, and resources, print, broadcast, and digital media have turned to online newsrooms to obtain information and story ideas. According to the 2009 Journalist Survey on Media Relations Practices conducted by online public relations site Bulldog Reporter, “Public relations practitioners should shift their energies to online newsrooms, blogs, and social media,” and “journalists’ usage of these technologies continues to increase.”

Most importantly, online newsroom results are measurable. A recent study for the Louisiana Seafood Promotion and Marketing Board by Cision, a leading media tracking firm, found that for a three-month period, media exposure of Louisiana had reached an estimated audience of more than 3.4 billion in the United States. The Board used the online newsroom as the content engine, supported by traditional PR, Twitter, and Facebook.

Turning the online newsroom into a landing site for social media creates a centralized place to openly engage audiences, tell your brand’s many stories, and paint a picture of the uniqueness of your organization. It is like inviting someone into your house so they can see everything at a glance, and at the same time, putting the CEO’s agenda in the middle of the news.

Posted in Advertising, Blogs, Branding, Content, Crisis Management, Ed Lallo, Engagement, Exclusive Content, Facebook, Google, Integrated Marketing, Journalism, Marketing, Measurement, Newsroom, Photos, Public Relations, Sales, Tools, Twitter, Video, YouTube | Comments Off on The Online Newsroom: The Factory that Runs a Brand’s Content Engine

Keeping Score in Social Media

By Dr. Don Roy, Professor at Middle Tennessee State University

The use of social media to develop customer relationships can be compared to interactions with co-workers at an office party. Many of your co-workers may be relative strangers in that you may know their names and perhaps even the names of their significant others and children, but the relationships lack depth. Conversations outside the usual environment of the relationships allow for a greater quantity and quality of communication. Similarly, social media can humanize the faceless, impersonal image of a brand, becoming more of a friend or trusted advisor to a customer than a business that exists to sell things.

The potential impact of social media on customer relationships with a brand calls for measuring engagement, not exposure. Yet many managers look to measures of reach to quantify social media’s impact on brand building. Let’s consider the sports industry as an example. Sports properties are driven by reach measures such as ticket sales and TV ratings. Extending that mindset to the digital marketing space, the reach of a sports brand in terms of followers or friends on social networks is used as evidence of brand power.

A measure developed by Coyle Media, known as the Sports Fan Graph, ranks professional and collegiate sports brands according to the number of Twitter followers and Facebook friends. According to the Sports Fan Graph as of December 2010, the NBA was the top-ranked brand, based on the sum of its Twitter followers (just under 2.2 million) and Facebook likes (approximately 7 million). In contrast, the NHL ranked 19th, with a total reach of about 1.7 million (471,000 on Twitter and about 1.2 million on Facebook).

If we are to accept a measure like the Sports Fan Graph, we can conclude that brands with high rankings like the NBA enjoy far greater impact in their social media programs than lower-ranked brands. But not so fast! Measures of social media reach support the hypothesis that strong brands in the offline world are among the most popular digital brands, too. Whether the brand is Starbucks, CNN, Oprah, or Manchester United, success breeds success when it comes to building virtual relationships. But how meaningful are those relationships?

A measure like the Sports Fan Graph is an indicator of popularity, but how well liked a brand is may not be an ideal indicator of what social media efforts can do to build a brand by strengthening customer relationships. Traditional scorekeeping measures may be straightforward to calculate and interpret, and they may also be favored by managers who equate popularity with effectiveness. However, brand building is not based on winning a popularity contest; it is fueled by customers’ willingness to be in a relationship with a brand. Methods for keeping score are needed that link social media to enhancing brand relationships, not counting admirers.

Posted in Branding, Conversations, Customer Experience, Customers, Don Roy, Engagement, Facebook, Marketing, Measurement, Relationships, Sports Marketing, Twitter | Comments Off on Keeping Score in Social Media

Embracing Social Media Measurement

By Deirdre Breakenridge, Co-Author of Cyberbranding: Brand Building in the Digital Economy

If there’s one area of marketing strategy that deserves significant attention, it’s measurement. Back in the days of traditional communications, marketers were always held accountable for the results of their campaigns. We had to know if the marketing efforts raised awareness, created consumer loyalty, and moved products off the shelves or if our initiatives helped the brand’s reputation. However, much of our measurement was based on eyeballs or impressions. How much did that advertisement cost and how many people actually saw it in their favorite magazines or heard it on the radio during their morning drive to work?

Then we morphed into digital communications and were able to target our campaigns to capture activity and sales from clicks to conversations. And we became no strangers to the terms PPC and CPM. Today, as a result of social media marketing, we are focused on conversations and participation in the social sphere. Consumers are becoming more active in their Web communities and trusting the advice and word of their peers over the brand’s messages. As a result, marketers know they need to create opportunities for brands to engage with their consumers through high levels of interaction. Of course, social media engagement can lead to any of the following: awareness, perception, reputation, education, conversations, authority, leads/sales, etc.

With so much listening, monitoring, and measuring that needs to be done, how do you select the right tools to capture the metrics that show value to the brand? How can you tell the difference between the high-level/high-value interactions versus the Facebook “like” or follower on Twitter that never leads to a product sale? I’ve found a couple of different measurement techniques that show good value for any brand that takes the time to invest in these types of measurement. They are “share of voice” and “social influence marketing (SIM) score.”

If you are unfamiliar with these two metrics, here’s a brief overview:

Share of Voice

A brand’s share of voice includes any type of brand mention, which could appear in social networks, blogs, microblogs, message boards and forums, video and photo sharing sites, wikis, etc. Share of voice lets you hear what people are saying and where they are saying it, how they perceive your brand, and what they think about it. You can compare your brand’s share of voice to that of your competitors. You can also capture those communities that have a greater share of voice, allowing you to capitalize on any brand champions speaking on your behalf by building better relationships with them as they continue to be your advocates. It’s also a good practice to evaluate any weak areas where you can create stronger ties with your stakeholders and engage in more meaningful interactions.

Social Influence Marketing (SIM) Score

The SIM developed by Razorfish supports a brand’s attempts to track, analyze, and improve net sentiment by setting benchmarks against itself and also by comparing the SIM scores to that of its competitors. The SIM score is calculated by looking at the brand’s positive, neutral, and negative mentions in relation to total conversations, both for the brand and the brand’s industry. For example, net sentiment for a brand (which is calculated by positive mentions plus neutral mentions minus negative mentions) is divided by total conversations (positive plus neutral plus negative) to get a brand sentiment score. The same calculation is used to obtain the net industry sentiment score, calculating the positive plus neutral minus negative mentions, and then dividing by total industry conversations. The SIM score is equal to the total net sentiment divided by total industry sentiment.

These are only a couple of the metrics that can be used to measure the results of social media marketing. With so many conversations to capture from our consumers and other stakeholders in Web communities, we must embrace social media measurement. Whether you are using free tools (such as Social Mention and Alterian) or automated services (including Radian6 and Sysomos), it’s critical to turn up the volume on our listening/monitoring and measurement practices and show our executives that no matter where we market, there are results, and we are accountable.

Posted in Blogs, Brand Champions, Branding, Conversations, Deirdre Breakenridge, Engagement, Listening, Loyalty, Measurement, Microblogs, Monitoring, Share of Voice, Social Influence Marketing Score, Video, Wikis | Comments Off on Embracing Social Media Measurement

A CIO Takes On CMOs and Social Media Marketing

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…

Posted in Advertising, Banner Ads, Branding, CMOs, Colin Osburn, Content, Dell, E-Mail, Facebook, Finance, Ford, Forums, Marketing, Marketing Automation, Measurement, Metrics, MySpace, ROI, SEO, Tools, TV, Twitter | Comments Off on A CIO Takes On CMOs and Social Media Marketing

Social 3.0: Social Media Drives Demand Generation

By Brian Kardon, Chief Marketing Officer at Eloqua

Best-in-class companies have evolved beyond mere participation in social media. They have put a robust marketing technology platform in place that allows them to see how social media activities drive revenue. Social media is earning a seat at the revenue table. It’s called “revenue performance management.”

Social 1.0: Observe

Social 1.0 was all about curiosity. How interesting? What does it mean? What are the risks? Could social media (or “social computing” as my friends at Forrester called it in 2006) really take off?

Social 2.0: Act

Social 2.0 was about companies jumping in: tweeting, blogging, monitoring, and participating across social media platforms. “We should be doing this,” said an anxious CMO. “We will look cool.” “Look how ‘United Breaks Guitars’ or the ‘Comcast Sleeping Tech’ is killing them.” “We need an Old Spice viral idea.” “Hire a bunch of young people, stat!”

Social 3.0: Convert

Well, Social 3.0 is here, and it is about how social media is driving demand generation, adding engaged people to the database, nurturing their interest, and winning business. Yep, social media is driving revenue growth. It has evolved, matured. And it has earned a seat at the revenue table.

As CMO of Eloqua, I get to work with some of the most sophisticated marketing organizations in the world—companies like Adobe, American Express, and Sony. You may think “slow moving” or “bureaucratic.” Well, I can’t speak for everything these companies do, but in the world of social media, they have come to a remarkable place—faster than most would have expected. They have evolved to Social Media 3.0 in record time and are proving how social media drives revenue by:

  • Identifying “complaining” customers and resolving those complaints quickly, leading to higher retention rates
  • Identifying prospects who are shopping for a solution by their status updates or tweets (e.g., “Looking to switch brokerage account out of [competitor]. Any ideas?”) and responding through direct, helpful communications

Of course, most companies by now have set up processes to monitor the social environment. Best-in-class organizations have taken it to a whole new level by measuring and continuously tracking these people. For example, if someone is shopping in the category, they put them into a highly relevant nurturing program, score their progress, and pass the lead to the sales team at the right time. Then they track whether the prospects close or not, attributing the lead source to social media. In the case of complaining customers, they often put them into “remediation” nurturing programs to win them back. And, of course, they rigorously measure renewal rates of those in the remediation program.

From our experience, the companies that are proving social media’s contribution to revenue have five foundations in place:

  • Actively participate in all forms of social media
  • Have deployed a robust marketing and sales technology backbone, consisting of a CRM system, marketing automation, and social media monitoring
  • Have developed specific processes to deal with “complainers” and “active prospects”
  • Continuously measure and optimize the programs
  • Routinely report on social media’s contribution to closed business

Welcome to Social Media 3.0! If you are still in 2.0, it’s time to step up!

Posted in Brian Kardon, CRM, Customer Retention, Demand Generation, Marketing, Marketing Automation, Measurement, Metrics, Nurturing, Revenue | Comments Off on Social 3.0: Social Media Drives Demand Generation