Archive for the ‘Relationship Marketing’ Category

Using Twitter for Marketing and PR: Do the Pros Practice What They Preach?

By Kent Huffman, Chief Marketing Officer at BearCom Wireless and Co-Publisher of Social Media Marketing Magazine

It seems that everyone claims to be a Twitter expert these days. Of course, most are not. But several of the real Twitter pros I know—including those who have written books about using Twitter as an effective marketing and public relations instrument—have figured out how to best leverage the 140-character microblogging tool to promote themselves, their books, their firms, and their clients. And some of them actually follow their own advice!

How Smart Marketing Book Authors Use Twitter

The Tao of TwitterFor example, Mark Schaefer of Schaefer Marketing Solutions is the author of the book The Tao of Twitter: Changing Your Life and Business 140 Characters at a Time. He and his firm provide affordable outsourced marketing support to address both short-term sales opportunities and long-term strategic renewal.

Mark uses Twitter to help deliver on that promise for a number of his blue-chip clients, including Nestle, AARP, Anheuser-Busch, Coldwell Banker, Scripps Networks, Keystone Foods, and the U.K. government. He also very effectively promotes himself and his book on Twitter as part of his own marketing, branding, and relationship-development strategy.

“I’ve literally built my business from networking on Twitter and connections from my blog,” Mark said. “That’s what most people miss. Twitter can be a powerful business networking platform. It’s so much more than ‘what you had for breakfast!’ ”

Hollis Thomases is the CEO of Web Ad.vantage. She is also the author of Twitter Marketing: An Hour a Day, a book that offers marketers, advertisers, brand managers, PR professionals, and business owners an in-depth guide to designing, implementing, and measuring the impact of using a complete Twitter strategy.

Hollis uses Twitter to generate qualified website traffic that gets converted into actions, leads, and sales for her clients, most of which are challenger brands or large non-profit organizations.

Much like Mark, Hollis’ strategy includes using Twitter as an effective promotional tool for her book and firm. She also leverages Twitter to expand her speaking engagement schedule, which features topics such as “Social Media 101,” “Twitter Automation,” and “Social Media Etiquette.”

And finally, Laura Fitton, co-author of Twitter for Dummies and founder/CEO of oneforty, has been an active Twitter user for some time. She has amassed approximately 80,000 followers and engages with them daily.

Laura’s firm helps people get started with Twitter, organize the chaos of their daily social media routines, and connect their social media efforts to their core business to drive ROI.

“The single most important thing is to make yourself useful, which you can do by curating great content, answering questions, shining a spotlight on others, and trying to turn everything inside-out to make it more about your readers,” noted Laura. “I tell people to ‘Listen. Learn. Care. Serve.’ (in that order), and then keep cycling through that process.”

Twitter’s Impact on How Journalists Search for SMEs

In an environment where fewer and fewer journalists are covering more and more stories than ever before, media members are increasingly taking a “don’t call us, we’ll call you” approach to finding sources and stories to cover. Rather than waiting around to be pitched by traditional PR reps, many media members are looking for their own sources—not only Google and HARO, but Twitter as well—to search for and connect with subject matter experts (SMEs). Book authors and other experts who have built digital platforms that showcase their credentials and provide valuable information on their topics have widened their nets to catch such queries on Twitter.

Beth Gwazdosky is the Vice President of Digital Marketing at Shelton Interactive, an Austin-based firm that works with its author clients to create social media and interactive marketing/PR strategies and platforms that generate attention—online and off. “We help our authors understand how best to use Twitter and other social media channels to stand out in this new environment,” said Beth. “Creating strategies to organically pull media hits, speaking opportunities, and client relationships has proven to be much more efficient than trying to pitch our way onto the air.”

So if you’re interested in promoting yourself, your book, your organization, or your clients, why not use Twitter to your advantage? But don’t jump in without a well-thought-out strategy. Pay attention to the real Twitter pros who are actually practicing what they preach, and then emulate their approach.

Posted in Blogs, Branding, Channels, Content, Customers, Demand Generation, Engagement, Google, HARO, Integrated Marketing, Interaction, Journalism, Kent Huffman, Lead Generation, Listening, Marketing, Promotions, Public Relations, Relationship Marketing, Relationships, ROI, Sales, Strategy, Twitter | Comments Off on Using Twitter for Marketing and PR: Do the Pros Practice What They Preach?

Connecting Customer Lifetime Value with Social Media

By Bruce Weinberg and Paul Berger, Professors at Bentley University

Let us express upfront our sincerest apologies for using a somewhat academic voice in this blog post!

“Customer lifetime value” (CLV) is a very important relationship marketing concept. It is the present value of the net cash flows (from all purchases) that an organization expects to receive from a customer over his/her “lifetime.” While the definition is straightforward, the mathematics used in computing it can sometimes get messy and involved (don’t worry, we have PhDs from MIT). Marketers use it to think about customer acquisition and retention (i.e., long lasting relationships), rather than focusing solely on the initial transaction. Indeed, when used effectively, CLV can lead to improved marketing decision making and increased profitability.

We believe that CLV is a mathematical kindred spirit with social media, in that they both can be important mechanisms in relationship marketing. Further, we believe that CLV can work hand-in-hand with social media to satisfy senior management’s thirst for quantitative accountability from social media. With all due respect to Cuba Gooding, Jr., “show me the ROI” has always been the mantra for proof of performance. CLV can absolutely play an important role in not only identifying the value of social media but also in effectively leveraging the value of social media (i.e., helping organizations use it more effectively).

In order to do this, we extend the notion of CLV to incorporate/consider social media and propose the concept of “connected customer lifetime value” (CCLV). CCLV includes not only the present value of the net cash flows from a customer’s purchases over time, but also the present value of the net cash flows from others’ purchases who were influenced (to purchase) by that customer through social media. Just to be clear, we are saying that there are two important components: CCLV = purchases by a customer + purchases by others who were influenced (to purchase) by that customer through social media.

Using CCLV can change dramatically whom marketers value as customers! When using CLV, marketers would target customers based on their expected purchases. Customers who are expected to purchase relatively little over time have relatively little value. However, when using CCLV, these very same customers could have relatively high value to a marketer if—this is the cool part—their influence on others’ purchasing decisions was great (and positive), resulting in substantial volume of purchases (by others). It is conceivable that a customer who makes relatively few purchases could be the most valuable customer to an organization, courtesy of social media and the influence it enables!

We are not saying that this is necessarily typical; although, we know that consumers typically search online for consumer opinions/conversations before making a purchase. The important messages here are that a customer’s economic worth can be based on his/her purchases and on influence through social media, that CCLV can quantitatively show the value of social media, and that CCLV can be used by marketers to leverage social media in making decisions.

Posted in Bruce Weinberg, Customer Lifetime Value, Customers, Marketing, Profitability, Relationship Commerce, Relationship Marketing, ROI | Comments Off on Connecting Customer Lifetime Value with Social Media

Questions and Answers about Relationship Marketing and Relationship Commerce

By Ted Rubin, Chief Social Marketing Officer at OpenSky

1: Relationships: how do you build them online?

I believe everything we do in our personal and business lives revolves around relationships—now more than ever. With effort, an online relationship may begin from the request of a Facebook friend or following someone on Twitter. But make no mistake—that initial request or follow will never create the relationship. Trust is built upon interaction, when you’re true to your word, authentic, and genuine. To build relationships online, you (as a brand or individual) have to offer value in return.

Be it via valuable information or personal introductions, engagement and interaction will remain key. By asking questions and proposing ideas, you can engage your followers in such a way to give them the ability and reason to respond. Then when they do respond, interact with them to solidify your relationship, lest it fade away. Directly acknowledge their response, ask follow-up questions, and share their insights with others. Follow me on Twitter (@TedRubin), and you’ll see what I mean. The more responsive you are to your audience, the more responsive they’ll be to you. And that’s where relationships are born.

2: What is the true value of a fan or follower to a marketer/brand?

I believe many are looking at this in too narrow a fashion. Everyone is trying to assign a dollar value to a Facebook fan or Twitter follower instead of addressing the fact that engagement and interaction that takes place in these mediums are incredibly important to a brand. Building a relationship with existing and future customers is the true value and strength of social media marketing. ROI is certainly incredibly important whenever investing, but companies have to start looking at ROR (“return on relationship”) when planning, strategizing, and most importantly, evaluating social marketing.

A new study shows that those who are fans or followers of a brand on Facebook or Twitter are significantly more likely to buy products and services or recommend the brand to a friend. Specifically, the study by Chadwick Martin Bailey and iModerate Research Technologies found that 60 percent of Facebook fans and 79 percent of Twitter followers are more likely to recommend those brands since becoming a fan or follower. And an impressive 51 percent of Facebook fans and 67 percent of Twitter followers are more likely to buy the brands they follow or are a fan of. Considering Facebook’s 400 million-plus users, the opportunity is great for social media marketers.

3: ROR: exactly what is that?

Facebook fans, retweets, site visits, video views, positive ratings, and vibrant communities are not measureable financial assets—they aren’t reflected on the balance sheet and can’t be counted on an income statement—but that doesn’t mean they are valueless. Instead, these are leading indicators that a brand is doing something to create value that can lead to financial results in the future. In addition, these relationships can be leveraged through initiatives, campaigns, and events to create real dollar value for a brand. In other words, ROR = return on relationship!

In a fast-paced digital world, defining and maintaining our relationships has become unexpectedly difficult. Social media has enabled us to connect with an infinite number of individuals; it has given us the tools to extend relationships that years ago would have been impossible. Yet make no mistake—social media is a facilitator of relationships, but it is not the relationship itself. You have to give to get. It’s so simple in concept yet not always easy to wrap your arms around when online since it is not as simple as a favor, a hug, or a handshake.

4: What is “relationship commerce?”

The way I see it, we’re overdue for a revolution in retail. So many of us have been sharing our passions and discoveries, it’s about time we acquired tools that empower us to share in the economic benefits. I believe that our economy is experiencing a monumental shift toward an era of increased self sufficiency. We all need to learn to earn, to provide for ourselves. We can’t continue to live dependent upon the (one time) security blanket of big corporations, parent companies, and traditional jobs. They may not always be there.

How many of you spend more than 10 hours a week on your online presence? 15 hours? 40+ hours? How many times have you recommended something to a friend, and how many times have you made a purchase based upon the recommendation of a friend? How many of us wish that our passions, our energy, and our influence could evolve away from pure hobbies and into a revenue stream? Relationship commerce—sharing what you love with others and facilitating their ability to buy it—easily can be a piece of that puzzle. That’s how it can make shopping better. Relationship commerce is simple yet novel: it’s commerce that emanates from people you know and trust. It’s this interpersonal exchange, the relationship, which differentiates relationship commerce. Life is not just about financial exchange, and neither is commerce. Relationships matter!

5: What can marketers do in the next five minutes to apply this information?

A great Twitter behavior that is often overlooked as being important is thanking people for retweeting you and for giving you a mention/shout out. So say thank you. Engage. Ask questions. Propose ideas. Give your followers/fans the ability and reason to answer.

Most misunderstand Twitter. It’s not a broadcasting tool for marketing, but an extremely valuable networking, experimenting, and seeding tool. And always remember we all have lurkers—those watching and following our conversations. Even though they do not make themselves known, they are there. So be aware.

Posted in Authenticity, Branding, Engagement, Facebook, Relationship Commerce, Relationship Marketing, Relationships, ROI, ROR, Ted Rubin, Twitter | Comments Off on Questions and Answers about Relationship Marketing and Relationship Commerce