Tag / Social Media

by adam

5 Reasons for Consolidation in the Social Media Monitoring Industry

The social media monitoring (SMM) industry is booming. Pure play SMM software providers, startups, traditional web analytics firms and now the large software companies are making advances in the field.  Ken Burbary has a wiki listing many of them, worth checking out.  If you work for one of the smaller companies, get to know your competitors big and small – in the next couple of years you could be working together or could watch them eclipse the competition.   Here are five reasons to expect more upheaval in the industry – what did I miss?

1. Scale and Demand for Sophistication

We’re all watching big brands like Ford, Pepsi and Starbucks jam away in successful social media endeavors.  The bigger the brand, the bigger the need for processing power to really crunch the data to make it meaningful – and the more internal skills and resources will be required to get access to the data.  A web analytics analogy would be using Google Analytics for a large $100M+ eCommerce site.  Those in the business know it isn’t enough to get the sophisticated level of measurement required, and many of these tools lack the robust UI and toolset to meet all requirements.

2. Business Process Changes

Many SMM tools leverage workflow to route mentions to the right person or department for triage.  Having spent years back in the heyday of SAP ERP configuring workflow, this is a deep rooted business challenge that takes thorough design effort to make effective.  Decision trees are not easy to build, and as more and more companies leverage these features, complex organizations will demand best of breed products.

3. The Data Isn’t Interesting

The numbers are the numbers.  “Number of mentions” is a just pile of comments – they have to be sorted through and made relevant.  It takes people with analytical skills to tell what they mean, intepret the story, and ultimately mine the information to translate them into actionable insights.  The tools that make this job less labor intensive will be more successful at market penetration and meeting the demands of agencies, consultants and internal departments spending energy to leverage them.

4.  Sentiment Analysis is Useless (By Itself)

Maria Ogneva wrote a terrific Mashable article about how to get the most out of  Sentiment Analysis for businesses.  The fact remains that even as these automated tools improve, they require manual labor.  If a tool is 80% accurate in automatic sentiment measurement, someone has to go through to find the 20% that aren’t.  The tool that has the best, most accurate options for making that data useful and less labor intensive will be sought after – but that technology could come from a big company with heavy R&D or a startup.  Who knows, but the best tool will make lives easier for practitioners.

5. Industry Growth

IBM just recently announced an entry into the SMM market.  Big Blue.  That should put smaller competitors on notice – either they need to improve to compete with Big Blue, or work on their exit strategy. Traditional web analytics companies like Webtrends and Omniture are adapting their offerings.  Forrester and other industry data shows continual growth and adoption of social media channels by consumers – increasing the urgency for companies to listen.

What did I miss and where do you think this industry is headed?  For posterity, wondering what the folks from Radian6 and Alterian think – two great companies we tend to see and work with most often.

Photo credit: xrrr via Flickr

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by adam

Co-opetition in the World of Social Media Marketing

Changing markets cause change for those who serve them. As businesses adapt and figure out how social media will impact how they conduct day to day functions, service providers are adapting too.  These days companies have a high probability of encountering any of the following providing social media services:

  • Sole prioprietor (independent contractor)
  • Social media agency (small, medium and increasingly larger)
  • PR agency (traditional, new media, all sizes)
  • Digital or interactive agency (all sizes)
  • Advertising agency (all sizes, but particularly the big dogs)
  • CRM consulting firm
  • Database marketing agency

In an effort to help bring some clarity to the situation, friends (and business partners, and competitors) Todd Defren of SHIFT and Aaron Strout of Powered have collaborated with me to give you a snippet of what makes us different.  We have some overlap and we also have some ways we can complement each other.  We are doing business together and competing.  Either way, hopefully this lets potential clients know more about what makes us different.  How’d we do?  I’d encourage your to read Todd’s post and Aaron’s post to get their commmentary as well.

Todd Defren

This is my company…

One of the top-25 PR agencies in the U.S., with offices in NYC, San Francisco and Boston, SHIFT is an agency that helps organizations of all sizes better communicate with the people that matter to their business.  Sometimes that’s “the media,” sometimes that’s “some loudmouth on Twitter.”  Companies ranging from Quiznos to Club Med, from tiny start-ups to established tech companies, look to SHIFT for counsel and execution on both branded and earned media.

What we do…

SHIFT focuses on “on-going engagement” vs. “campaigns.”  And because relationships change over time, our targets and tactics evolve as-needed.  Thus the portfolio of services a client will tap into can include: Traditional Media Relations (coverage in NYTimes, TODAY Show, eWeek, etc.) + Social Media Relations (dialogue with relevant Facebook Group admins, Twitterati, etc.) + Content and App Development + Community Management (running a YouTube channel or Facebook Fanpage).

This is why you should call me (type of challenge or project)…

We are generally called on by large brands that need to act more like a start-up or by small companies that want to take things to the next level.  If your company needs more overall visibility (“get ink!”); needs to better engage with consumers (“that Social Media stuff!”); or needs to brand or re-brand in the marketplace, it’s worth a conversation.

This is when you should call someone else…

While we bring plenty of creativity to the table, when it comes to execution portion of app development, videography, website development, advertising campaigns, media buying and SEO, SHIFT will turn to quality partners like Powered and Rosetta, among others.

Aaron Strout

This is my company…

Powered is a dedicated social media agency that helps brands fully capitalize on their social initiatives. With 75 employees in four offices (Austin, New York City, Portland and San Francisco) we brings “best-in-class” expertise across the social spectrum to our clients by offering a combination of strategy, planning, activation and management for social presence and programs.

What we do

Okay, I guess I answered this in the “this is my company” section but to add on, we help big brands with strategy and activation (getting their key stakeholders like customers, prospects, partners or employees) to do things that create value for their brand. Those activities might include evangelizing, contributing, participating or learning.

This is why you should call me (type of challenge or project)

We’re really at our best when we’re helping big brands (mainly B2C) connect their social efforts to their marketing efforts. We start by fleshing out a cohesive strategy and then move toward the activation. In many cases, this includes focusing on things like influencer outreach, ambassador programs, Facebook Fanpages, applications and customer tabs and the building and managing of branded online communities.

This is when you should call someone else.

We’re still not particularly good at media buying, custom web development (outside of Facebook and community building), SEM and general site SEO. You will get more about the White label seo here. We also don’t do any traditional PR. For those activities, I’d strongly recommend talking to our friends at Rosetta and SHIFT, both of whom we partner/work with.

Adam Cohen

This is my company…

Rosetta is the largest independent digital agency in the US. Using a patented approach to segmentation, called Personality® Segmentation (yep, it’s patented and a differentiator), which provides deep insights into the drivers of consumer behavior, Rosetta’s teams translate these insights into relevant marketing solutions to attract, retain and strengthen a brand’s most valuable customer relationships. With 720+ team members, Rosetta is headquartered in Princeton, NJ, with offices in NYC, Cleveland, Boston, Chicago, Denver and most recently Toronto.

What we do

We help companies develop strategies and implement marketing tactics, combining the best of insight + technology – from eCommerce to Paid Search to Creative to Analytics to Relationship Marketing. With all the tools in a marketer’s toolbox, we strive to be a CMO’s most trusted partner.  Our industry expertise includes Retail & Consumer Products; Healthcare; Financial Services; Communications, Media & Technology, and B2B.

This is why you should call me (type of challenge or project)

We’re best when we bring to together marketing disciplines and industry acumen to provide measurable integrated solutions.  We shine we get the opportunity to demonstrate business results across tactics – like integrating eCommerce with paid search/SEO, driving the best creative with analytics and measurement, or infusing CRM with Personality Segmentation.

This is when you should call someone else.

Traditional media outlets are outside of our sweet spot (TV, print, radio), along with traditional PR.  Our social media practice is focused on infusing social into all of our marketing disciplines, but we are partnering with world-class agencies like SHIFT on outreach programs and Powered on designing the best approaches to engage and activate communities.

***

Thanks again to Todd and Aaron for providing thought provoking insights for the topic – these are two guys for whom I have the utmost respect in working with (and occasionally against).  Todd says it best: “Where we compete, we do so with respect and good humor.  Where we can cooperate, we do so with gumption and gusto.”

Did this help provide clarity? Where do you think the market will be in five, ten years? We’re all a ways away from the winning formula and I’d love to hear your thoughts.

Photo credit: eworm via flickr

by adam

Cognitive Bias in Social Media Strategy

A common challenge in the field of marketing is the “everyone’s got an opinion” phenomenon.  In other fields like finance or engineering, deeply skilled practitioners do their jobs every day with few “outsiders” questioning their tactics.  In marketing, every person has an opinion on whether a tactic, campaign or initiative will resonate, no matter how deeply skilled the marketers are who developed them.  Enter the challenge of cognitive bias.

Wikipedia defines cognitive bias as:

A cognitive bias is the human tendency to draw incorrect conclusions in certain circumstances based on cognitive factors rather than evidence. Such biases are thought to be a form of “cognitive shortcut”, often based upon rules of thumb, and include errors in statistical judgment, social attribution, and memory.

Marketers don’t have to guess.  There are increasingly more data sources and proven tactics to test hypotheses, which is the entire premise behind marketing segmentation (but that’s another story).  When a new approach is involved – especially one that can question traditional tactics and measurements – it’s easy for people to apply the same filters on interpreting or judging how successful strategies will be.  Social media, and all the technologies that enable two-way and multi-way dialogue with customers, creates that same conundrum for traditional marketers.

Companies need to look at the tools they have at their disposal and leverage them to understand the customer. Web analytics, social media monitoring, feedback, surveys, market research, segmentation, business intelligence, case studies, conventional statistics and studies…There are many inputs that companies can use to determine what makes sense to fuel social strategies that will resonate with their customers in context.  The resource that should be least often used (or minimally, avoided as the sole measurement of an idea): what does someone think personally.  As a marketer, are you really your own targest customer?  Understanding the needs, attitudes and behaviors of customers with respect to social media is necessary to build an educated and insightful hypothesis to try out.  You can even collaborate with customers to figure out what may work (imagine that).  No one needs to read the tea leaves.

Photo credit: mikesell via flickr

by adam

5 Ways Social Media Impacts Consideration

Ask any marketer to draw you a picture of the sales funnel and you’ll get virtually the same picture.  There are a number of proposed ways to look at the funnel applied to social media, including a post I wrote last year about the New Marketing Funnel and the new book, Flip the Funnel, from Powered/crayon’s Joseph Jaffe.  What’s clear though, is that social media provides definitive means to impacting the “consideration” phase – when a customer makes the leap from awareness of a brand or product to evaluating, before committing to make a purchase.  Here are five ways that social media can impact a customer who is considering a purchase.

1. Research

When deciding to make an important purchase, like a car, a cell phone or a home, few people do so without evaluating options and doing some research.  You may have a friend who knows a lot about cars.  You might start searching online for consumer groups.  You might ask your family, neighbors, work colleagues.  Social media provides means do do all of the above online, including looking at reviews from perfect strangers.  It’s more relevant to look at reviews of products than to trust marketers alone.  Allowing user ratings and reviews on your product site, which can be moderated for abuse, can be a very effective way to engage in user generated content without the open-ended risk associated with a platform like Facebook.

2. Validation

Is there any truth to what my neighbor said about that product or service?  Or the recall rumor I just heard yesterday? Look at blogs, discuss on Facebook, search on Twitter.  Consumers can use social platforms to validate or refute information easily with their social graphs or through searching.  With Bing and Google indexing much of those discussions in real time, answers can be found immediately.  Separately if you have a perception of a brand (positive or negative), social channels can help validate those thoughts and views.

3. Creating an Emotional Connection

An emotional connection to a product, service or brand can influence purchase behavior.  Cause marketing can be an indirect way to build brand loyalty.  One of my favorite recent examples is the Chase Community Giving program on Facebook.  Personalized stories of real customers can also be a way to build an emotional connection.

4. Creating Touchpoints

How many brand touchpoints and impressions does it take to impact consideration?  I’m not sure, but chances are that it’s more than one.  An impression or interaction in social media can be measured in a lot of ways, but it takes multiple exposures to a brand to have it be front of mind when a consumer moves from awareness to consideration in the funnel.  Sure, no one actually talks about themselves moving from one stage in the funnel to another.  But as usage of social media grows, having a presence where consumers are will be a way to foster those impressions in a different way than traditional advertising.  Marketing behemoth Proctor & Gamble is exploring Facebook more aggressively for just that reason.

5.  Search

The folks at ComScore and GroupM have a great study that shows the impact of social media on branded search – just one way that shows how social media is impacting search.  Discussions related to a brand in social networks, discussion boards, forums, and on brand-owned assets will impact search results when a consume starts to look for information.  Brands can’t ignore the SEO implications of any content they own – Lee Odden has a great post about tools that can help optimize social content for search.

Think about the last time you moved from awareness to consideration.  What influenced you?  Did I miss any other way that social media could have impacted your decision process?

Photo credit: cpstorm via flickr

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by adam

Return on Serendipity

According to Wikipedia, Serendipity “is the effect by which one accidentally stumbles upon something fortunate, especially while looking for something entirely unrelated.”  I’ve found that since engaging on several different social media tools like Twitter, that has happened a lot more often.  How about you?  “Return on serendipity” really makes no sense – how can you plan to get a return on something that happens by accident?

Last week I attended the Social Business Summit, hosted by the Dachis Group in Austin, TX just before the SXSW Interactive conference.  One of the speakers was John Hagel. John is the co-chair of a Silicon Valley research center for Deloitte.  One quote stood out for me, and it applies to both individuals and businesses:

You can increase the opportunity to achieve serendipity.  What’s your serendipity strategy?

You can put yourself out there.  Businesses can establish outposts in social channels, build and foster relationships, and have a presence where customers expect them to be.  With the growth of social media tools, and their resulting impact on other digital channels, this will give you more opportunities for people to find you.

Last fall, GroupM and Comscore announced the results of a compelling study on the correlation between social media and paid search.  One highlight for me hits home for the digital marketer:

The study…showed a 50 percent click-through-rate (CTR) increase in paid search when sonsumers were exposed to influenced social media and paid search.  This revealed consumers exposed to social media are more likely to click on a brand’s paid search ad as compared to those exposed to the brand’s paid search alone.

To me, that’s hard evidence that building a footprint increases the likelihood of serendipity – consumers will find you, perhaps when they were not expecting to.  The term “return on serendipity” may be a non sequitor, but there are signs of real, tangible return on making opportunities more likely to happen.   Have other examples?  I’d love to hear them.

Update: After a little discussion on Twitter I was alerted to this great post by Rachel Happe: 5 Ways to Orchestrate Serendipity.  Worth the read.

Photo credit: shashachu via flickr

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by adam

Why Companies Should Leverage The Community Roundtable

Over the last couple of years I’ve been fortunate to get to know the founders of the Community Roundtable well. Jim Storer and Rachel Happe are two talented community practitioners with tons of experience. When Jim told me about his idea for TheCR (as it’s known in short), I was intrigued from day one. While there are many social media practitioners, blogs and community platform companies to leverage out there, TheCR provides at least two unique differentiators as part of its value proposition:

  • The Community Roundtable is a peer network of social media practioners and community managers. In essence, TheCR is using community to enhance and better people and businesses who are practicing community management every day. This isn’t social media or community 101, it’s 501. It’s a network for people who practice the discipline daily.
  • The Community Roundtable is pushing the envelope to advance the field. With their background in organizational design, TheCR team has built a framework of business processes to apply to various stages of community lifecycle. This isn’t (only) for selling community into an organization, it’s aimed at best practices at sustaining and growing them. TheCR is the answer to the question, “You have a community. Now what?”

As companies look at branded and non-branded, public and private, enterprise and customer-facing community platforms and decisions, TheCR provides a highly concentrated armament of resources and network of peers for support. Rosetta, my agency has been a partner from early on due to the complement to our own value proposition, and as Rachel describes it, I’m a self-professed “Cheesehead.”

So it’s not a surprise that Rosetta is pleased to be a sponsor, along with Fuzebox and Powered (another Rosetta partner), of The Community Roundtable’s first annual State of Community Management 2010 report. This 60+ page report, with an introduction from Altimeter Group‘s Jeremiah Owyang, is a tremendous resource that combines the voice of participating members representing “over 180+ years of community management experience” and what the group learned in 2009. It’s an asset to anyone exploring starting or improving their community initatives in 2010.