Social media start-ups often seem to overlook an important demographic reality: age. These companies bet their business on behavior that works for young adults (say, 18 to 25), but may fall apart completely for people older than that.
Many of the case studies you've seen me write about are B2C. But in the report on ROI of Social Media, I gathered data on B2B companies too. Here's a list of B2B communities.
Many people know Intel by their catch tune, "Inside Intel." And what's inside are the most amazing microprocessors that allow us to do great things back 25 years ago people could only imagine. Key to having been an innovator is always innovating. Intel- when they first came out with a new chip-- think back to the 286 processor and then transition to the 386. They met with some resistance in getting computer manufactuers to be interested in the chip. Why would you need more computing power?
So instead of staying stuck or ditching the product, Intel brought together a multidisciplinary team of individuals to tackle the problem. The net-net is that the team realized that its the end-user who is really their customer! when they went into computer shops and talked to the customers, they asked, "Would you like to be able to have many files open at once? Would you like to be able to run graphics programs, plays games, etc...." The customers responded positively with, "Of course we would!" That drove the computer store operators to tell the computer manufacturers to get those intel chips in their computers. Ah... I love that "voice of the customer" story.
But what I love more is that Intel innovated, why? Because they listened. That's a skill most companies don't have. And with social media, Intel has put their listening on dual processor tubro charged power. They know that their ability to innovate and lead the market is based on harnessing the power, knowledge and collaboration among customers, resellers, etc.. and Intel.
Once upon a time, a company named Yahoo! found its core value proposition: providing a browseable and searchable directory of the Internet. Later, it tried to cement its position as launch pad for the Internet by adding e-mail, contacts, and other handy tools.
Other search sites made it feel vulnerable, and people started talking about portals. "The [portals] future of the [portals] Internet is portals," the experts said. "Portals portals portals. And, to sum up, portals."
A shift is occurring in the relative importance to marketers of Social Media and Super Bowl advertising. Of course, the 2010 Super Bowl isn't the first we've seen of the marriage of Social Media and Super Bowl ads. Last year, Doritos struck gold with a UGC (User-Generated Content) ad produced by two unemployed brothers, and the brand is back this year with more UGC ads competing for even greater prize money.
There is a lot of buzz about Social Media ROI, and since the topic is complex, there will continue to be buzz about it for years to come. Brands want to know that Social Media works, what works, and how to invest their money.
Much of the results generated by Social Media can be measured quantitatively and qualitatively: transactions, decreased customer service costs, increased awareness, improved sentiment, etc. But some of the advantages from Social Media cannot be measured, because much like investments in insurance and tires, the benefits come from risk avoidance.