Our London-based Interactive Marketing Research Associate James McDavid chimes in with this great tale of how listening to and embracing your fans in social media can create powerful word-of-mouth marketing:
As every dance music aficionado knows, Miami is the place to be every March as it hosts the Winter Music Conference (WMC), an event that brings together leading lights from the industry to party, share records, and make fun of Paris Hilton. So when Dutch airline KLM announced they'd be launching a new route between Amsterdam and Miami at the end of March 2011, a couple of Dutch DJs tweeted KLM to see if the airline could move the flight forward a week to coincide with the WMC. The DJs claimed that they could fill a flight from Amsterdam to Miami solely with revelers and ravers. KLM, seeing a great opportunity to show off their social savvy, offered the DJs a challenge — if they could get 150 people to register in seven days, then KLM would move the inaugural flight forward — and, as a bonus, let the DJs spin some records in the cabin.
This is Peter O’Neill and I had a very busy Forrester Marketing Forum last week in San Francisco: two presentations (well, two halves, I suppose, because I was the co-presenter) plus dozens of one-on-ones with Forrester clients. While I would have preferred to talk about differentiation in the customer lifecycle, the theme of my first Forum presentation and my most recent report, the incorporation of social media into the marketing mix continues to be the hottest topic for most tech marketers. It was exciting to be able to share our brand new Tech Buyer Social Technographics data which has just come in. BTW, the level of social media activity in European buyers is still ahead of American buyers – I will be presenting the European data in my planned Forrester teleconferences on May 9th: once in German for local clients, prospects and press; and once in English for other Forrester clients.
The Groundswell is now global. Social media has entered the mainstream in every single market Forrester regularly surveys — and in most of those markets, social media use is at 75% or higher. Australian, Japanese and Italian online users all show stronger adoption of social media than Americans do – and Chinese, Dutch and Swedish users have nearly pulled level with the Americans. And in 2010 Facebook reported that more than 70% of its active users were outside the US, while Twitter said more than 60% of its accounts come from outside the US.
The simple fact is that if your company has a social media program, that program is global — whether you want it to be or not. And this isn’t just a nuisance or a language issue. Failing to recognize the global nature of your social programs means you might be telling foreign users about products that aren’t available in their countries (for instance, Toyota UK reached more than 100 million people with a fantastic blogger outreach program for its iQ model; but it turns out that more than 95% of those people live in countries where the iQ isn’t for sale). Or you may be advertising discounts and promotions to which many users don’t have access (for instance, while Amazon’s Facebook page promoted a special price of $89 for the Kindle last November, a Kindle cost almost twice as much in the UK — and wasn’t available at all in most other markets). If you work in a regulated industry like financial services or pharmaceuticals, you risk running afoul of government regulators.
But saying that raises the question: If the number of fans or followers you have doesn’t tell us whether you’ve succeeded as a company, then what does it tell you? And if your CEO shouldn’t be worried about the number of wall posts you’ve generated, then who should be paying attention to this number?
Since last summer, I’ve been using a structured model to help my clients focus on delivering the right social media marketing data to various stakeholders inside their organization. Social media programs throw off so much data that the key to measuring and managing your programs well is focusing each stakeholder on just the pieces of data that are relevant to helping them do their jobs. If part of your job is measuring the success of your social media marketing programs, then you need to start segmenting the stakeholder groups you’re providing that data to and tailoring the type of metrics, the volume of metrics, and the frequency of reporting you provide them.
If you read this blog regularly, you know that I can be a Facebook supporter (some may say apologist), but today I have a bone to pick with it.
Where others frequently attribute shady intent to everything Facebook does, I see a company legitimately trying to balance the needs of users with the demands of advertisers who fund the free service. Consumers love Facebook, so much so that Facebook now accounts for one of every four page views in the United States, yet you and I pay nothing for it. Or it is more accurate to say that while we provide no cash to Facebook, we do, in fact, pay with our time, attention, data, permission, and clicks (which Facebook converts into cash).
But even Facebook supporters can and should question when the social network takes a step that pushes the envelope of best practices in permission marketing, and I believe it has done just that with Facebook's new Sponsored Stories product. What I find frustrating is how tantalizingly close to perfect the model is, yet the omission of a single feature makes all the difference.
Here's how Facebook Sponsored Stories work:
You post a status update about a brand, such as a check-in, like, or a piece of praise.
Because that signal of affinity is so ephemeral within the news feeds of your friends (or perhaps may never even be displayed there), the brand can now choose to pay Facebook to turn your status update into an ad.
Your friends (and only your friends) will then see your status update in the right gutter of Facebook.com, along with your name and profile picture.
Social media does not make marketing any easier. Although it is a powerful tool for marketers to reinforce their brands, energize advocates and strengthen relationships, it is also yet another marketing channel that requires attention, investment and innovation. And much like the Web 15 years earlier, this is a channel that challenges the status quo and defies easy metrics.
In 2011, social media marketing doesn’t get any easier. Although the medium is maturing, that maturity brings with it a host of new challenges for marketers. Primary among those challenges is that social media is becoming an awfully cluttered and noisy space. As more people adopt social behaviors and more marketers increase their social media budgets, it is tougher than ever to cut through the noise, reach an audience and make an impression. In addition, Forrester is seeing a marked increase in the number of people worried about privacy in social channels, and this concern is growing most significantly in boomers and seniors.
It's sometimes amazing (and disappointing) what you find when you scratch beneath the surface of headlines. Take this one from Mashable: "Social Media Not a Big Factor in Holiday Purchases." It’s a big, eye-catching, alarm-raising headline, but as I dug into the story beneath the headline, I found my impression changed considerably.
The article reports on a ForeSee study that, according to Mashable, demonstrates that "social media may be an underwhelming driver" of retail sales. Based on the Mashable article, I downloaded the report from the ForeSee site, expecting a thorough exploration of social media's role in holiday shopping purchases. I was surprised to find that the portion pertaining to social media was a mere two sentences in the 22-page report. (In fact, ForeSee notes that its report could not contain all of the findings of the study, so additional information relating to topics like social and mobile will be made available in future weeks by request.)
One common complaint I hear from marketers is that social media is not (yet) a mass medium. For example, the circulation for Cosmopolitan is 3 million, while the magazine counts just 700,000 fans in Facebook. And while it seems (almost) everyone is creating, using or consuming social media today, it is a highly fractured channel. Thirty years ago, almost every person watching television was tuned into one of three networks; today, 550 million people use Facebook, and each and every one of them is their own network.
However, the fact that social media is fractured and personalized does not mean that it isn't a mass medium; it just means it is a challenging mass medium. Here is the evidence for social as a mass medium:
Some blog posts generate little reaction; some generate a lot; and sometimes it is a single idea contained within a blog post that spurs the greatest response. I recently authored a diatribe entitled "Eight Things I'm Sick Of In Social Media." The comments associated with the post are fascinating and informative, but one point created the strongest and most supportive reaction: When I said I was sick of Auto DMs on Twitter. (For those who don't know, Auto DMs are generic, pre-programmed responses that are automatically sent to each new follower on Twitter.)