Posts Tagged ‘Social Media’

May 6th, 2011

Is Social Media CRM’s new platform?

For many years CRM has been a “direct” channel delivering one way communications to customers. Now, with the advent and maturity of social media networks brands have the opportunity to engage in more balanced and cohesive discussion with customers and consumers. Social media with its wide accessibility and easy to use functionality offers brands a platform on which to engage with consumers on their terms. This in turn offers brands a sea change opportunity in the way they manage customer relationships.

CRM has never been perfect. Traditionally, the term CRM has meant email, direct mail, SMS and phone. These are ‘push’ communication channels. Brands push their message out to their customer base. Push communications have always had a problem; they are by nature interruptive, as such they risk being seen as intrusive or irrelevant at time of receipt. This is just one of the reasons why many forms of DM based CRM are still referred to as ‘junk mail’ by consumers. Other reasons for ‘junk’ status are that these communications are often not requested, they’re irrelevant, they’re not green, and they leave your customer with the feeling that you are trying to persuade them to do something they may not want to do. In short, people like being in control. By pushing your message into your customers’ lives you threaten that control and risk being ‘junked’.

The advent of social media offers us the opportunity to overcome these issues and move towards a more perfect world in CRM. With its ability to aggregate, assemble and cluster groups of like minded individuals social media allows us to address and overcome the junk issues listed above. Social media gives brands an opportunity for a radical re-think of what CRM is, how it works and how we deliver it. Let’s look more closely at the sources of “junk mail” categorisation and examine how social media may make CRM a more involving experience:

1) Lack of control: Junk mail is called junk mail because it’s not requested. In the social media world consumers control the dialogue; they do the requesting and they are in control. As a brand you are not imposing yourself on the customer. You are simply there for them when they want to engage with you. This is a different dynamic to traditional CRM. It puts the customer in control of the conversation and that’s where they want to be.

2) Irrelevance: Junk mail is called junk because it risks being irrelevant at the time of receipt. Here’s where social media really scores. If you allow the consumer to control the conversation then they are likely to contact you only when they have something important to say. Consumers will either like product, dislike a product or need more help with it. If you are dealing with these issues for customers at a time of their choosing then you are more likely to maximise the relevance of your communication.

3) Environmental issues: Junk mail is called junk because prospects and customers think it’s not green. The statistics around DM paper wastage are staggering and the DM industry should move forward from denial to recognition. It has been estimated that the UK is subject to more than 500,000 tonnes of waste paper through DM every year. Even if it’s recycled we should be thinking about the energy costs of this mammoth recycling task. Whilst all social media has some costs, they are minuscule compared to the environmental costs of paper manufacture, printing and recycling of millions of tonnes of DM. In 2011 brands must be seen to be environmentally aware and social media allows this to happen by reducing your dependence on less environmentally friendly paper-based forms of communication.

Social media gives us the opportunity to reverse the drive train in CRM. It’s time we used the internet to move from putting things into peoples’ homes to inviting people into our brands. It’s time we stopped trying to control the customer. It’s time we put the customer in control of us. It’s time we moved from push to pull. There nothing new here, marketing theory dictates that companies should be responsive to customer and consumer needs. The problem has been that until the advent of easy to use social media networks being open and responsive was easier to say than do.

By moving into social media CRM we open up our relationship with consumers. This sends positive signs. Companies that are prepared to openly discuss issues between themselves and their customer base will be perceived as accessible, caring and confident in the way they provide products and services. These are all valuable brand attributes.

Of course running CRM in social media where all comment can be seen by others requires marketers to have a high level of confidence in the brands and services they are delivering. But rather than being seen as a hurdle to be overcome, this should be seen as a useful litmus test of a company’s relationship with its markets. If as a brand you don’t feel confident enough to open up your CRM in the social media environment then that tells you something about the prevailing relationship you have with your customers. If thinking about social media raises negative issues then you should use this as an opportunity to clarify and address those issues.

And if you are confident that you can press the social media button now, then your openness can only serve to increase the confidence customers and consumers place in your brand.

October 19th, 2010

On a clear day: Measuring ROI in Social Media

Measuring ROI in social media is a big concern for marketers as they consider moving budget away from traditional media channels and into social media activity.  But before they can invest in social media, marketers need to get an idea of what it can contribute to their brand.  This has driven a debate about measurement in social media but unfortunately much of the discussion is focused on measuring social media for social media’s sake. What we should be asking is how do we measure the delivery of marketing objectives when we run activity across the social media platform. When we look at it this way we focus on measuring marketing outcomes versus marketing objectives and the answers become much clearer.

As a start point, everyone needs to recognise that social media is a media channel. It is not a marketing discipline. It is not a marketing objective. It is not a marketing strategy. So we might use the social media channel to raise brand awareness (objective) by targeting affluent new car buyers in social media (strategy), we might use social media to increase consideration (objective) by informing new car buyers about the unique benefits of the car we are selling (strategy) or we may use it to increase sales (objective) by communicating a last minute ‘walk-in’ trade-in deal (strategy). The metrics we use to measure social media should therefore relate directly to the objectives and strategies that we managing through the social media channel.

So, before we can measure social media we need to understand what we want social media to deliver from a marketing perspective. Only then can we select the right types of measurement and metrics to get the job done properly. Here are three examples of how we might measure social media activity against the delivery of three different marketing objectives:

  1. Objective: Raise Awareness: There are a number of good tools for measuring online brand awareness, ad awareness, product awareness and salience. Ad Index from Dynamic Logic allows you to play ‘spot the attitude difference’ between web users who have been exposed to your messaging and those who have not. You can ask exposed and non-exposed groups bespoke questions about your brand and campaign activity which allows you to contrast and compare the differences between the two groups. Brand sentiment can be measured using sentiment trackers like Sentiment Metrics; through without bespoke surveys these may include a range of external references to your brand, not just your own social media activity.
  2. Objective: New Customer Acquisition: If we want to use social media as a new customer acquisition tool then we should be using customer acquisition metrics. Microsoft’s Atlas can be used to track the online behaviour of your social media users across all touch points in the sales funnel. Bespoke tracking URLs in your social media pages can be used to identify visitors to your site originating in your social media pages. This type of tracking means you can ultimately relate customer value back to your social media activity.
  3. Objective: Increase Retention / Loyalty: Here we can combine online tracking, data collection and customer data analysis to understand the contribution of social media. We can collect prospect and customer data in social media pages or in pages that link directly to social media. Fusing data collection with online tracking means we can find the data source of known named customers and measure their progress and value in the sales funnel and through cross sell and up-sell. The results from this type of activity may not be instant; customer value from market source can take a year or more to establish, but once it’s in place you will be able to see how social media is building sales revenue for your business.

The message is that we can’t measure social media for social media’s sake. We should always be measuring how social media performs against a given marketing objective. If we are clear about this, the techniques and metrics for measuring and evaluating social media ROI become much easier to identify, select and implement.

April 13th, 2010

What is Social Media?

We’re often asked to define social media either directly (what is social media?) or indirectly (we need a social media strategy), so I thought I’d provide a list of the key platforms that make up what we call “social media”:

  1. Article directories that publish original user generated content (UGC).
  2. Blogs that feature original content and allow comment from users.
  3. Blog aggregators like Technorati that allow members to bookmark, tag, syndicate and recommend blog content to other people.
  4. File sharing sites with community and comment functions like YouTube and Flickr.
  5. Forums that allow users to post within a special interest community such as Crackberry.com for Blackberry users.
  6. Microblogging sites like Twitter and all associated sites like Tweetdeck that carry and syndicate content to their users.
  7. Review sites for products and services (like Travelocity) that carry user generated content (UGC) and reviews.
  8. Social bookmarking sites like Delicious and Digg that allow tagging and tag sharing so that other people can explore the same tags.
  9. Social networking sites like Facebook and LinkedIn that allow communities to manifest themselves online.
  10. Wikis - online encyclopedias that can be edited by anyone - like Wikipedia

It’s worth noting that there are two critical components in social media, the 2 C’s: Content and Community. These are the two sides of the social media coin.

On the one side, content lies at the very heart of social media. Content populates all the components above, all of which would cease to exist without content. In the case of social media, content is often user generated (User Generated Content or UGC) as opposed to being generated by a professional publishing house.  If you are thinking social media in any way, you must be thinking content; without content there is no social media.

Community is the other aspect of social media.  Communities gather around people of similar types (alumni, workplace, school, product users etc) or common interests (stamp collecting, trainspotting, FX trading) in the same way that “birds of a feather flock together” in many other aspects of social sciences. Communities are also important because they create a demand for content as members seek opinions or seek to make their own views known. Without communities there would be less of the subtle “friction” that causes many types of content to be generated and consumed.

February 23rd, 2010

See how business can use Twitter

Whilst most of the social media world is theorising about “social media strategy”, it can pay to follow those who lead by example. Here are three links to three companies who are using Twitter to sell product to a defined community of customer/followers:

  1. Dell Outlet - see one of their twitter pages here - Dell have Stephanie@Dell offering customer support on their page
  2. Misco  - see their twitter page here - Misco have added a deal of the day to their background.
  3. Viking Direct - see their twitter page here

I think these are great uses of Twitter. Each company can add or remove offers by the second. On the basis that “birds of a feather flock together” it’s highly likely that these offers will be re-tweeted to friends of colleagues of each first generation follower.  Links can be tracked,  sales can be measured, sales ROI can be calculated. On that topic if you go to the Dell Outlet page you can see that it has 1.5m followers which makes it the 89th most popular page globally (twitterholic). That gives Dell more followers than Paris Hilton, Stephen Fry or Sarah Brown.

To cut a long story short the Dell Outlet page offers these things: Utility, Relevance, Value.  If you can’t score more than 7/10 on each of these three measures, and you’re not a celebrity, then you will struggle to make twitter work for your business.

December 11th, 2009

Visualise your Twitter Universe

twitter-friends-example3

Came across this - great fun. It delivers a visualisation of your twitter universe. Assuming you are tweeting of course.

Visualise your twitter universe here


May 3rd, 2009

60% of Twitter users duck out after one month: Why?

So Nielsen are reporting that around 60% of Twitter users effectively duck out after one month. To some this may come as a surprise, to others it is a logical function of the real usefulness, or utility, of Twitter. The higher a site’s utility, the higher its retention and vice versa. Let’s explore this in a bit more detail and in relation to Twitter.

One of the main drivers of social media growth is social exploration. People want know what all the buzz is about. Their motivation for this is simple; they don’t want to appear uninformed. The best way to get informed fast is to join in. What happens next depends very much on what kind of experience these new users have in the first month. Two factors operate here: First, if new users find tweeters with whom they have common interest and therefore potentially strong affiliations, they may follow that person and move into further usage. Secondly,  if they find individuals, particularly lost contacts, then they are likely to use Twitter to reconnect with them, but once the initial reconnection has been enabled there is no guarantee that it will remain the main platform of communication. This is likely to revert to the more traditional face to face meeting, phone calls or email.

But I think there are three further issues that dictate how Twitter is used. First is the actual utility of twittering. Second is managing the information overload that can suddenly come back to the enthusiastic follower. Third is the platform being used.  Let’s look at each one:

1. Utility: Utility is critical factor in the destinty of any web site because utility drives retention. So how strong is Twitter’s utility?  I see four areas of utility: First, utility is high if you are a member of a close knit community needing moment by moment short byte communication - like school kids or students. Second, if you’re naturally news-hungry and want a mental stimulus every couple of seconds, then Twitter can deliver it. Third, if you want to build and maintain a fan base, or get closer to it (from a technologically safe distance) by sharing what you are up to, then utility is high. And Fourth, you can announce yourself to potential new followers by announcing to them that you’re following them.  BIMA used this technique to attract my attention yesterday. All these areas provide  reasonable utility. But that may be about it.  If you’re not in one of these four groups, Twitter’s utility to you may be limited.

2. Information overload: You can fall into information overload fast with Twitter. If you chose to follow 100 Tweeters who are posting 5 tweets a day you are in line for 500 tweets a day. Even if you choose to follow just 10 tweeters posting 5 times a day, you’re still going to receive 50 tweets a day. All this becomes unmanageable very quickly and as it becomes unmanageable, its utility falls even further. The only way to counter this is to be very selective about who you follow.

3. Platform:  This is the big one that potentially changes everything. Mobile platforms make tweeting fast and easy. When you stand in a queue or on a bus, tube etc, have you noticed people looking at their phones seemingly waiting hoping and checking for social news.   These people need texts and tweets. And who are they? Almost invariably they are the under 24’s and at a push the under 35’s.  Young, information hungry communities wanting to share new information fast.  It all fits with meeting in bars, being late, missing the bus, running into a old friend. And all this activity doesn’t happen in front of a PC, it happens next to a mobile phone.

It’s been widely reported that the fastest growing social media user group is the over 35’s.  That growth may, in very broad terms, be explained by parents and managers simply wanting to find out what their kids and employees are up to. A kind delayed product diffusion. The Social Media ripple effect.

Of course there are those groups who will continue to find Twitter an interesting way to announce news. Within seconds of publishing this post it will have been short-linked by Twitterfeed and tweeted to all Teqtonic followers. That’s a utility that works for me.

PS. Nielsen’s article goes on to make interesting points around the relationship between retention rates and reach and how these factors are affecting Twitter compared to other social media networks. You can see the full Nielsen article here.