Savvy Social Media Users Influence Peer Purchases

For consumers, the golden rule is “buyer beware.” For marketers, it should perhaps be: “beware of socially adept consumers.” New research indicates that consumers who are savvy social media users wield far greater influence among their peers.

Specifically, they tell significantly more people about their service experiences, and say they’ would spend 21% more with companies that deliver great service — compared to 13% on average, according to the 2012 American Express “Global Customer Service Barometer.”

This relatively small group of consumers is extremely engaged and vocal, according to Jim Bush, EVP of World Service at American Express.

“They … tell three times as many people about positive service experiences compared to the general population,” he said of social media users. “Ultimately, getting service right with these social media-savvy consumers can help a business grow.”

Unfortunately for many marketers, the survey — conducted in the U.S. and 10 other countries — also reveals a sorry state of service in general.

May 1, 2012

For Brands, Social Media Shows Returns but Measurement Hurdles Remain

Executives see improvements in marketing and sales efforts, and market share gains as a result of well-planned campaigns

C-suite executives are increasingly convinced of the benefits of engaging with their customers on social media platforms. A February 2012 survey of 329 senior executives in North America by management and digital consulting firm PulsePoint Group and the Economist Intelligence Unit found that the vast majority of companies who had invested in social media saw a positive shift in their bottom line as a result.

Executives who said their companies had established an extensive social media presence reported a return on investment that was more than four times that of companies with little or no social network engagement activity

Companies should use social media to create spaces for consumers to have meaningful conversations with employees and other stakeholders. Almost seven in 10 respondents said they had seen a spike in their sales by letting customers talk about their brands on social media platforms, even if some of that dialogue was negative. This kind of approach builds trust and credibility with consumers, potentially transforming them into brand advocates whose value is immense, if difficult to measure.

April 23, 2012April 23, 2012

3 PR lessons from Heineken’s crisis

Photos of a dogfight with prominent Heineken branding went viral. The beer maker has denied knowledge of the event, but that hasn’t stopped the criticism.

There’s crisis control, and then there’s the ordeal that Heineken is facing.

The beer maker has been slammed in traditional and social media since photos of a dogfight with prominent Heineken branding went viral.

Heineken has denied knowledge of the event, which apparently occurred at a Mongolian nightclub in 2011. Any sane person would realize right away that Heineken is probably not sponsoring dog fighting. But it wouldn’t be the Internet if everyone were of sound mind.

Naturally, the masses took to Heineken’s Facebook page to berate the company. What could it do? Blindsided by the photo, Heineken launched into action.

On Tuesday, Heineken posted twice to its Facebook page—first at 2:00 a.m. Central Time and again at 5:44 a.m. The company moved quickly to investigate and craft a response, which can be found on its website and its Facebook page.

Here are few lessons we can take from Heineken’s misfortune:

April 11, 2012

Consumer Trust In Traditional Media Ads Fall, Confidence In Mobile, Social And Online Rise

Word-of-mouth recommendations and reviews, either from someone they know or a stranger’s opinions online, are the most trusted sources of information for buying decisions, according to the latest Nielsen’s latest Global Trust in Advertising report, The findings speak highly for information gathered through social media or other forms of user-generated content.

Meanwhile, though traditional paid media still are trusted by a great number of consumers, their influence is on the decline. Nearly half of consumers around the world say the trust ads on TV (47%), in magazines (47%) and in newspapers (46%), but those numbers dropped by 24%, 20% and 25% respectively, in a relatively short period of time — between 2009 and 2011.

March 30, 2012March 30, 2012

Top B2B Firms Gaining 230% More Leads via Social Media Than Peers

Best-in-Class B2B companies generate on average 17% of their leads from social media channels, roughly 230% more marketing-generated leads than other companies (5%), according to a new report by Aberdeen Group, which examines the social marketing strategies of top-performing B2B companies.

In the new report, titled “B2B Social Meeting Marketing: Are We There Yet,” Aberdeen uses four key performance criteria to distinguish the Best-in-Class (top 20% of aggregate performers) from the Industry Average (middle 50%) and Laggard (bottom 30%) organizations.

The top 20% of companies (i.e., Best-in-Class) have achieved the following performance metrics:

Average annual company revenue growth of 20%, compared with 8% for Industry Average and -3% for Laggard firms.
10% average year-over-year improvement of marketing leads resulting in closed business, compared with 3% for the Industry Average and -1% for Laggard firms.
44% of sales-forecasted pipeline generated by marketing, compared with 10% for Industry Average and 5% for Laggard firms.
73% annual customer retention rate, compared with 27% for Industry Average and 7% for Laggard firms.

Overall, 84% of all surveyed B2B companies are using social marketing in some form.

However, Best-in-Class companies are more likely to use social media primarily for lead-generation purposes, and more likely to integrate social marketing with other core channels and processes, the study found.

March 21, 2012March 21, 2012

7 Lessons From The Nikon Social Media Faux Pas

In the world of social media you have to be careful as to who posts on your walls, what they say, how it can be interpreted and what the consequences can be.

Nikon, the famed photographic equipment manufacturer learned the lesson the hard way.

Back in September of 2011, a the following post appeared on Nikon’s Facebook page:

“A photographer is only as good as the equipment he uses, and a good lens is essential to taking good pictures! Do any of our Facebook fans use any of the NIKKOR lenses? Which is your favorite and what types of situations do you use it for?”

Now, anybody involved to some degree in photography knows that a statement like this will infuriate most of the photographers who read it.

I understand what the Nikon employee may have been trying to say, but the way he or she said it came out totally wrong. It is true that a good camera and good lenses will make a big difference on the quality of the photograph, but at the end of the day, the talent of the photographer remains the key.

Withing hours, the post received a couple of thousands of comments, something most brands would rejoice at, unless, like in this case, the comments were overwhelmingly negative and the brand had just invested a lot of money on the launch of a new camera.

What can we learn from Nikon?

1-Monitor the conversations about your brand

2-Who you allow to post on your wall is important, make certain they understand and relate to your community

3-Before posting, think about your post a few times. Is that the message you want to send out? In doubt, ask a few colleagues, insure it’s congruent with your communication and marketing message

4-Remember that it does not take long for a post with a lot of comments on a business page to attract the attention of search engines, influential websites and blogs and be indexed. Do a search for the Nikon Facebook page and you will see several pages of websites and blogs with negative reactions to the post, not something you want your community to see. Bad news travels faster than good and stick longer.

5-When you put your foot in your mouth, don’t wait to see 2000 negative comments to react (it took Nikon over 12hrs to apologize), apologize, do it quickly, sincerely and repeatedly. If you take into account that a Facebook user has an average of 150 friends, at least 300,000 Facebook users saw the post, that’s not counting the re postings and shares.The kind of exposure no brand wants.

6-Reach out to the blogs and websites that covered the story

7-Building a reputation takes time, damaging it only a few seconds and repairing it a long time.

What are your thoughts?

March 16, 2012

Social media is about social science not technology.

A Pivot study conducted in 2011, asked brand managers and marketers if they had a clear picture of who their Social Consumer is. An astounding 77 percent said yes.

When asked specifically if respondent organizations asked Social Consumers what they expect from engagement, most responded, “No.” This is intriguing because we have 77 percent of organizations who say they know what their Social Consumers want, but 53 percent haven’t really asked. They do not—cannot—really know how to deliver value in social and mobile networks. On the other hand, 35 percent did note that they asked Social Consumers about their expectations.

March 14, 2012March 14, 2012

Facebook Timeline for business off to a strong start

Eight million brands, from carmakers to rock bands, switched to Facebook’s new Web page format 10 days after the revamped pages were introduced at a splashy launch event in New York last month, according to Facebook.

Some businesses say new advertising offerings that take advantage of Facebook’s latest Web page capabilities are helping them reach a broader audience on the 845-million-member social network.

March 8, 2012September 3, 2021

Flawsome: why brands that behave more humanly, including showing their flaws will be awesome

FLAWSOME definition:

Consumers don’t expect brands to be flawless. In fact, consumers will embrace brands that are FLAWSOME*: brands that are still brilliant despite having flaws; even being flawed (and being open about it) can be awesome. Brands that show some empathy, generosity, humility, flexibility, maturity, humor, and (dare we say it) some character and humanity.

Two key drivers are fueling the FLAWSOME trend:

HUMAN BRANDS: Everything from disgust at business to the influence of online culture (with its honesty and immediacy), is driving consumers away from bland, boring brands in favor of brands with some personality.
TRANSPARENCY TRIUMPH: Consumers are benefiting from almost total and utter transparency (and thus are finding out about flaws anyway), as a result of the torrent of readily available reviews, leaks and ratings.

HUMAN BRANDS

FLAWSOME sits as part of a bigger trend towards HUMAN BRANDS, something that we’ve touched upon in many previous Trend Briefings: RANDOM ACTS OF KINDNESS, BRAND BUTLERS, GENERATION G, and so on.

So, while HUMAN BRANDS might not be a ‘new’ theme, four currents are now converging to make consumers more focused on brand attitude and behavior than ever before:

“human nature dictates that people have a hard time genuinely connecting with, being close to, or really trusting other humans who (pretend to) have no weaknesses, flaws, or mistakes”

Consumers’ disillusionment at corporate behavior has (finally) spilled over into outright disgust. As a result, any brand that can show business in a new light will be (deservedly) welcomed with open arms.
- Nearly 85% of consumers worldwide expect companies to become actively involved in promoting individual and collective wellbeing; an increase of 15% from 2010 (Source: Havas Media, November 2011).
- Yet only 28% of people think that companies are working hard to solve the big social and environmental challenges (Source: Havas Media, November 2011).
Consumers are more and more aware that personality and profit can be compatible (think Zappos, Patagonia, Tom’s, Ben & Jerry’s, Michel et Augustin, Zalando and more). With every business that succeeds while remaining reasonable, helpful, fun or even somewhat ‘human’, consumers will become increasingly disenchanted when dealing with traditional, boring, impersonal brands.
- Most people would not care if 70% of brands ceased to exist (Source: Havas Media, November 2011).
Online culture is the culture, and inflexible, bland ‘corporate’ façades jar with consumers who live online where communication is immediate, open and raw (also see MATURIALISM). What’s more, people openly broadcast and share their lives online – flaws and all – and thus brands are increasingly expected to do the same.
Last but not least: human nature dictates that people have a hard time genuinely connecting with, being close to, or really trusting other humans who (pretend to) have no weaknesses, flaws, or mistakes – don’t assume brands are any different.

February 14, 2012

Luxury Hotels & Social Media: Four Seasons Hotels and Resorts

“We believe the winners in this new digital age will be the brands that let their fans define it and syndicate it. We’ve always been a consumer-centric culture, so the shift to adopting the way guests and clients lead communications for Four Seasons has been rapid. Digital media is now 50% of our brand’s marketing efforts, with a strong social media presence that facilitates engagement and encourages loyalty.”
Felicia Yukich, Social Media Marketing Manager, Four Seasons Hotels and Resorts