Posts Tagged ‘word of mouth

29
Apr
10

What marketers can learn from a hip hop producer

The New Music Seminar is rolling across the country this year.  It might not have come up on your radar screen, but it came up on mine.  The seminar’s creator and producer, Tom Silverman, founder of Tommy Boy Records, is a friend from college.

Tom (on the left) made a seminal contribution to hip hop when he discovered Grandmaster Flash and recorded the hip hop classic, Planet Rock; then came Queen Latifah and Naughty by Nature and others.

The purpose of the New Music Seminar, which began in 1981, is to give aspiring artist in all music genres the knowledge and tools they need to succeed in the music business which, according to Tom, is in a period of profound change.  No longer do new artists need to focus their time, attention and energy on getting signed by a record label and the slim chance they will be funded and made into a star.

Today, record labels rarely take chances on new artists.  Instead, digital technology, the internet and social media now make it possible, sometimes even free, for artists to do it themselves.  Wikipedia covers the history of the New Music Seminar in detail at http://en.wikipedia.org/wiki/New_Music_Seminar

More people want to become professional musicians than ever.  In fact, the number of records from new artists has risen from 79,000 in 2007, to over 110,000 in 2008, to an estimated 145,000 in 2009 – almost double in 2 years.  Although competition has increased significantly, online tools are so readily available, if someone has 1000 loyal fans and tours throughout the year, they can now make a living doing what they love.  But the key to doing what you love, according to Tom, is you’ve got to know your fans.

Anyone who owns or manages a business or brand, or is thinking of starting one, can benefit from this lesson in the music business; especially if you thought you needed to focus time and attention blasting the word out to as many people as you can.

How well do you know your 1000 most loyal fans?

The New Music Seminar is rolling into New York City from July 19-21.  For more information, go to: http://www.newmusicseminar.com/blog

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21
Apr
10

“Advanced” social media workshop

If you happen to be in the vicinity of Stamford CT Tuesday night (4/27) from 6pm to 9 pm, we’d welcome you to an “advanced” social media workshop at UCONN.  Here are the directions  http://www.stamford.uconn.edu/visitors.htm

When we were asked by US Small Business Administration to do an “advanced” social media workshop, we thought:  What is “advanced” social media anyway?  Someone who has built up thousands of fans and followers on Facebook and Twitter? A brand with a You Tube video viewed by millions? A business using proprietary social networking technology, widgets and apps?

This didn’t do it.  We defined it as:  A business or brand that has used social media to the benefit of their bottom line; saw clear business growth, proved an ROI, communicated consistently with their customers and, as a result, has the know how, insights and understanding to do it again and again.

When we thought about in these terms, a lot of case studies came to mind.  Some from business owners who happened to be our friends, colleagues and clients.  We thought it would be more interesting for them to tell you what social media did for their brands.  Here’s the list of brands that will be discussed:

  1. AJ Bombers – A  burger joint in Milwaukee WI
  2. Vitamin Water – I guess you know this one
  3. Forever Verdant – A services company for environmentally friendly living
  4. Bloomberg Marketing/Diva Marketing – A top social media and marketing consultancy and top 20 blog according to Forbes
  5. Real Women on Health – A health and wellness community for Baby Boomer women
  6. HubSpot – An inbound marketing solutions company to grow traffic, leads and sales

For AJ Bombers and Diva Marketing, owners Joe Sorge and Toby Bloomberg will be live (courtesy of Skype) from Milwaukee WI and Atlanta GA.  After all, it’s called social media for a reason.

If it’s nearby for you, we’d love to have you.  There is a $25 fee; $35 for two.  It doesn’t go to us (or the presenters) but back to the US Small Business Administration.  We and they believe social media is a competitive advantage for small businesses who play a vital role in our economic recovery.  And we’d rather see our administration spend money on small businesses, not big banks.

It’s our 2nd of 2 workshops at UCONN this spring.  The 1st was a “beginners” workshop.  What is social media for “beginners?”  That’s a much easier question and that presentation is below.

12
Apr
10

The net promoters era

What are net promoters? Consumers who rate products on the internet?  Mommy Bloggers? People who Tweets about brands on Twitter? Fans on Facebook? Hold that thought.

For students of relationship marketing and CRM, net promoters are the driving force of Fred Reichheld’s book, The Ultimate Question. Fred studied and surveyed the customers of 100’s of companies and came to a singular conclusion: The most admired and profitable companies are the ones with the greatest percentage of net promoters – people who enthusiastically answer in the affirmative the question, “How likely is it that you would recommend this company to a friend or colleague?”

Fred developed the Net Promoter Score (NPS).  The NPS is the percentage of people who are “promoters” of a company minus the   “passives” and “detractors” (NPS = P – D).  Reichheld’s work is known for its statistical significance and high correlation with business success.  In 2006, the companies with the highest NPS were:

  • USAA (82%)
  • HomeBanc (81%)
  • Harley-Davidson (81%)
  • Costco (79%)
  • Amazon.com (73%)
  • Chick-fil-A (72%)
  • eBay (71%)

By 2008, Charlene Li and Josh Bernoff, in Groundswell, delivered research showing 80% of people rate and review products favorably on the internet and their social networks. If companies with an NPS of 80% rank among the highest in Reichheld’s work, Li and Bernoff’s research is particularly good news for businesses and brands.

It means companies that use interactive ratings are reviews are likely to have a higher NPS, be more admired and have greater profitability. Li and Bernoff’s research also showed:

  • 76% of customers use online reviews to make purchases
  • 96% of sites that have them say they are an effective merchandising tactic
  • Only 25% of e-commerce sites have them now

So, from Reichheld’s, Li’s and Bernoff’s viewpoints, we’re in the “net promoters era.”  If your company isn’t taking advantage of it, shouldn’t it be?

09
Apr
10

“People don’t trust big companies, they trust their friends”

This quote comes from Jim Farley, Group VP of Marketing at Ford, who this year moved 25% of his marketing budget out of traditional media and into digital marketing and social media.  According to Jim, when new products like the Ford Fiesta are pivotal to company growth,  “the company must rely on others to tell the story.”  That’s Jim’s company up in the left and his constituents on the right.  Who would you trust?  For Ann Handley’s full interview with Jim, go to  http://ow.ly/1n3g9O

In a related move,  Pepsi, for the first time in 23 years, did not have commercials on the Super Bowl. Instead, the company is spending $20 million on a social media campaign called, The Pepsi Refresh Project, where users give ideas to Pepsi for ways to refresh their communities.

Maybe these moves reflect the facts that:

  • 90% of all purchase decisions begin online
  • 75% of people shop online before they buy offline
  • 85% are looking for an independent review
  • They have an average of 130 friends on Facebook; an average of 127 followers on Twitter
  • Positive perceptions of a company increase by 36% if there’s a blog on their website
  • 14% of people trust advertising
  • Only 18% of TV ad campaign ever generate a positive return on investment

I think Pepsi’s Super Bowl commercials are some of the most iconic advertising, ever, and believe their effectiveness was probably much greater than average.  I was sorry and sad to see them exit the Super Bowl, altogether.

But, for those 86% who don’t trust advertising, now they hear about Pepsi from who they do trust, their friends.

25
Mar
10

7 social media tips to build brands

The U.S. Small Business Administration is giving social media workshops at UCONN campuses this March and April.

52% of people in the U.S. work at businesses with 20 people or less.  Small businesses have led the country out of every recession.  Many believe, including comScore, social media will be a big asset this time around.

Since I’m one of them, I’m grateful to contribute along with Mike Rogers of Brainloaf,  http://www.brainloaf.com and other small business owners (featured below) that have used social media successfully.  Here are 7 social media tips to build brands.

  1. Strategy trumps technology: A business strategy and social media strategy are the same thing.  In using Twitter, Facebook, YouTube, apps etc., ask yourself how these amplify the business strategy and increase customer engagement and trust in your brand?
  2. Set measurements and expectations first: Don’t believe anyone who says you can’t measure social media.  You can know more about buying behaviors on the internet (e.g. where customers come from, how long they spend with you, what they do and where they go) than in your store.  Plus Google Analytics and bit.ly links are free.  If you’re not convinced, David Berkowitz has a great presentation on 100 measurements at: http://bit.ly/pmadb
  3. Social media takes time: Small business owners, understandably, have lots of priorities.  Manage what you can handle.  Customers come first.  Social media is going to be around for a while.
  4. Live with the ups and downs: What you want is a following and fans.  It doesn’t happen overnight.  It doesn’t happen the way you thought it would, but, stick with it, and it does happen.  Enjoy the journey.
  5. Not all social networks are equal: In every case I’ve seen, some social networks do better than others depending on the unique nature of every business.  For AJ Bombers, a burger joint, it was Twitter, acting as a virtual host, and a video from Chris Brogan.  For a utilitarian product like Blendtec blenders, it was unconventional product demos from Founder/CEO, Tom Dickson.  You can learn from their experiences below and expect it will happen for you.
  6. Have your online house in order: If you follow tips 1-5, you will experience increased traffic.  It will go to your web site, the most important asset in any social media program.  There’s an old saying:  Nothing kills a bad product faster than good advertising.  Today, nothing kills a good social media program faster than a bad web site.
  7. Believe in your product: Joe Sorge, owner of AJ Bombers, who now has a book, #Twitterworks (http://twitterworks.tv),   spoke in a video call from Milwaukee.  Joe says his Twitter page, AJBombers, has increased weekly sales +25%.  What was most important to his success?  “If I didn’t believe AJ Bombers made the best cheeseburger on the planet, social media wouldn’t have accomplished a thing.”

If you’re in the area, the next workshop is April 27th at UCONN in Stamford from 6pm to 9 pm.  Details will be at:  http://bit.ly/bW22Ml

12
Mar
10

Shhh! 10 social media secrets for maketing with women

I had the privilege of being on a radio show panel with some great people.  The topic: “How Social Media Gains Trust and Advocacy in Marketing with Women.”  Since women make 85% of buying decisions and are faster adopters of social media than men, it was a timely and interesting topic.  The radio show was “Real Women on Health” and the panel was:

  • Toby Bloomberg, Founder, Bloomberg Marketing, a strategic marketing and blogging consultancy and Forbes’ Top 20 Women Bloggers
  • Kelley Connors, President of Real Women on Health!, a multi-channel community with a radio show, top-rated women’s health web site and significant affiliate partnerships
  • Tom H. C. Anderson, CEO of Anderson Analytics, a market research consultancy, and chairperson of LinkedIn’s most active networking group, Next Generation Market Research
  • Rob Petersen, President of BarnRaisers, an online marketing solutions company using social media and proven relationship marketing principles
  • Cassie Holm, National Strategic Alliance Director of Real Women on Health!, was the moderator

Everyone took the opportunity to learn from one another.  Here are 10 tips to gain trust and advocacy with women using social media.

  1. Invite in: Women are 3X less likely to care about the size of their network than men.  Size may not matter but being shown personal attention does.
  2. Understand who you’re talking to: 74% post pictures of family/friends and 71% talk about what they’re doing now as opposed to 60% and 58% for men.  Take advantage of the opportunity and get to know them.
  3. Listen and respond: Listening is a fundamental skill but, equally important, is proof you did.
  4. Set guidelines and expectations: You can’t read body language on a social network.   Security and privacy are big issues.  Create a comfortable environment.
  5. Be transparent: If you’re not part of the group and “trolling” for business purposes, you are very, very likely to be found out so be open about who you are.
  6. Talk rather than target: When women are online, 50% are connecting with family and friends, reading someone else’s blog or posting a comment.   They’re socializing so shouldn’t you?
  7. Respect values: Dove ran a campaign on Facebook, “12 going on 20.”  It asked young teens to describe what mattered when they were 5, 10 and 15 and how it influenced them today.  It’s a great example of how social marketing showed respect for values.
  8. Engage rather than sell: 60% or more are uploading picture or watching videos when online.  Work as a co-creator, not a marketer.
  9. Social media = social networking + social issues: It called “social” media for a reason.  Make the most of both of them.  Your audience will appreciate you did.
  10. Give back – it’s part of the culture:  You get back more when you give.  That’s what we’re trying to do.

You can also hear the podcast at http://bit.ly/avmz1d.  Or let us hear from you.

03
Mar
10

Case study: social media brings out advocates and ROI

I’ve had clients tell me they’re from Missouri – you know, the “show me” state.  I must  work with people who’ve spent some time there because I hear the phrase, “show me,” a lot.

Here’s a recent experience of ours we’re glad to have done for a worthwhile cause.  It shows us social media:

  • Works
  • Works even better when it’s integrated into the marketing mix
  • Is highly accountable
  • Builds brands

But that’s our opinion.  What does this case study show you?

SOCIAL MEDIA BRINGS OUT ADVOCATES AND ROI FOR COLGATE/STARLIGHT FOUNDATION

SITUATION: Every February, Colgate Palmolive helps the Starlight Foundation, an organization dedicated to improving life for terminally ill children.  They donate a Wii Fun Center every day to a deserving children’s hospital.  Consumers vote at the Colgate website for their favorite children’s hospital to be recipients.

Awareness occurs through radio, major magazines, online advertising, PR and events, with the challenge to increase outreach, voting and participation every year.

SOLUTION: In 2010, social media is integrated in the marketing mix.  A social media “app” is developed for the voting at http://colgate.com/showthelove.  Through the “app,” consumers are able to: 1) Locate their favorite children’s hospital,  2) see who the daily winners are and 3) encourage their friends on social networks and relevant blogs to get involved.  Recommendations are delivered with a branded “Show the Love” digital mnemonic (visual in the center above).

RESULTS: Social media outperforms outreach expectations, shows significant return on investment and plays an integral part in the program.

  • 20% of consumers who vote also share on their social networks and blogs.  For perspective, typical response rates for promotions on consumer packaged goods brands are less than 5%
  • They are on the social media “app” 3X longer than the web site
  • 25% of total traffic comes from social media; mostly from Facebook
  • Total social media impressions compare favorably to mass media because the average Facebook user has 130 friends
  • Text analysis shows learning and offers direction for next year’s efforts
  • Lead acquisition occurs and a database is built; it’s now an activation source for future brand building programs

The investment in social media, relative to total program costs, is a small, single-digit percentage.   It delivers double-digit results.




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