techguerilla talk

Matt Ridings

05
Jul 2010

A Measured Approach To Social Media - Sell The Burger Not The Beef

 

                I’m obviously a believer in social media and its possibilities for businesses.  However, I’m also extremely conflicted about consultants who solely focus on social media.  Many of them, who I personally know and like, are extremely talented individuals and any business should feel confident to use them.  There is also a large group of ‘others’ out there but there have been plenty of articles bashing the “snake oil salesmen” of the industry that I don’t need to rehash that discussion.  And I should clarify here, the problem I'm defining isn't that all they sell is social media solutions/consulting, it's that they don't do so in a holistic way that takes into account other aspects of the business.  

 

             

 

                Businesses need to see social media plans that have taken into account their other needs, ones which have accounted for and justified against the other ways those dollars could have been used, and shown how you can cleanly integrate and compliment their other efforts. Otherwise you’re selling ground beef.  It might be awesome ground beef, but without a grill, a bun and condiments you’ll never be able to compete with my hamburger.

 

Matt Ridings - @techguerilla

 

10
May 2010

The Interactive Audience - Are You Ready?

 

The notion of differentiating a customer from a prospect is dead.

 
Well, not really.  The "notion" still exists.  But what used to be considered two entirely different pool segments in marketing, is now merging into the larger single pool of the "interactive audience".  The world of social media blurs these distinctions in dramatic ways.  There is lots of information out there, including from me, about the strategy and tactics of going into that relationship model.  But I thought I'd focus briefly on some of the business operations aspects.  Moving from monologue to dialog or from direct sales/marketing to relationship sales/marketing inherently breaks a lot of the models that we've built our companies around.
 
Let's look at marketing for a moment.  Virtually all measurements of success today are derived from a campaign mentality.  There is a expected conversion cycle that is measured against the conversion rates at the various audience stages (prospect to customer conversion process).  And prior to the campaign there was a great deal of filtering taking place to narrow the audience pool down to those you wanted to be exposed to your marketing message.  Lastly there is a finite end point at which campaign operations cease as well as the end points for whatever call-to-action was used.  What would that look like in a true relationship marketing mentality if executed in social media?  First and foremost, in the traditional direct marketing campaign orientation you started with a pre-selected audience.  That could have been very general (top line demographics for example) or very specific (high-end list purchase, or existing customer database).  And while you can roughly target a few demographics within social media, there is an additional upfront stage of trust building exercises necessary if you want to optimize your ability to build and communicate with an interactive audience.  The notion of building and nurturing this interactive audience pool is really what changes everything.  Where would your campaign begin? Where would it end?  I'm not saying that campaigns are dead, I *am* saying that campaigns in isolation are either dead or need to die.  There will have to be relationship oriented umbrella programs that span the corporate silos, and within those there will be additional programs at the silo level, and within *those* perhaps you'll still be able to run activities that look similar to campaigns of yesterday.  The funnel stages however will look very different.
 
Within sales, same issue.  Think about how you measure your sales reps success today.  Would your commission based compensation program foster the proper mentality within your sales team if implemented in a social marketing scenario?  Would it incentivize them to go through the hand holding and trust building exercises necessary?  Do your divisions of "inside sales" and "outside sales" make any sense in that environment?  If you create a new team and processes just for social media do you then disrupt and put into jeopardy your existing team members? If you're in B2B are you going to take on the potential channel conflict of competing with your distributor or retail channel in the same space?  Are your people prepared to interact with the marketing group at a very intimate level of one to one handoffs? What about the customer service group?  These are age-old issues in sales.  Most companies have either faced or are facing one or more of the challenges regardless of social media, but the real-time nature of the interactive audience will not let you fake your way through these problems like most companies have done for the past 15 years.  You either address them and have a plan/process or you'll fall flat on your face right in front of your audience.  You cannot save the item in your Inbox and put it off until you can walk down to the head of marketing and bitch about how the prospect hadn't been properly qualified before being handed to you.  You cannot have customer service point them to a form to fill out so that you can at some point call them in the future when it's more convenient for you.  Engagement happens *now*.  Dialog happens *now*.  And to be successful in social media you have to be prepared to have it when the customer is ready to have it.
 
I could also write paragraphs on PR, Customer Service, etc. but you get the picture.
 
I was conflicted about writing this article because I don't want companies to look at some of the structural and operational difficulties they might face when they go into social media on a large scale and decide that it's just too much trouble or too costly.  But what I would say is this, the above is an end-game scenario.  Treat it like one.  When you started out in business you knew you would eventually need a huge warehouse and inventory management system...but you didn't run out and spend the money on one, you had an employee walking around with a clipboard and an Excel spreadsheet.  The above scenarios are your inventory management system, as long as you know what you're building towards you can do so in an intelligent and informed way.  I'm perfectly fine with easing your way into social media with an Excel spreadsheet, just don't paint yourself into a very difficult corner to ever get out of simply because you didn't think through the eventual implications of what would happen if it succeeds.  So when you hear those social media pundits who scream "just do it!" (the smart ones anyway) I think what you're really hearing them say is "you don't have to turn your entire company on its head to get started". I don't believe they meant "don't worry about what it all means or have a plan, just dive in and hope you don't screw up".
 
A final note on "campaigns".  Can they still work in social media in isolation from relationship building?  The short answer, is to some degree "yes".  The longer answer, is "yes, but only if you don't want to maximize your sales over the long haul".  As my father used to say "don't cut off your nose to spite your face".
 
Cheers,
 
Matt Ridings - @techguerilla

07
May 2010

The Journey, Not the Destination - Social Media Flexibility

Several years ago while living in San Francisco I packed up my wife, my 3 yr old son, and my dog into a large motor home and we traveled around the country for 14 months.  We only knew one thing when we left, that at some point our destination was the east coast where we planned on living.  We didn't know exactly how long before we'd arrive, we didn't know exactly which city or even which state for that matter.  Nine times out of ten we would literally wake up in the morning and only then decide where we were going next.

 
Along the way, the very best experiences we had on the trip were complete accidents.  A family who invited us into their home for dinner and took us on a tour of their buffalo ranch when the wind got so strong in Wyoming that I had to pull off the highway.  The miniature horse farm in far northern California.  Dune buggying in the massive Oregon sand dunes that we didn't even know existed.  The campground in Washington state that was empty save for us camping within feet of the most beautiful flyfishing stream you've ever seen.  And at every single stop were people interested in talking, in listening, in simply inviting you into their personal space.  They weren't in any hurry to get anywhere in particular, like us they were out to experience something along the way, whatever that may be.
 
In a way social media is very much like this.  Don't get me wrong, in business you always have a destination, but trying to draw a linear line that jumps straight from point A to point B like an airplane flight simply doesn't work. You have to accept the fact that in between those two points is a entire world of experiences that you have to go through first.  Listening, talking, discovering.  And each of those experiences may alter where you thought your destination was.  Like me you may find that you plan on going to Connecticut but you select St. Louis instead due to experiences along the way.
 
You don't have it all figured out in social media, and I'll let you in on a little secret, no one does.  Accept that now and you'll be much more able to make those divergent decisions when faced with them.  Doggedly sticking to your original objective when all signs say you should change is either very stubborn or very stupid.  The problem with taking the airplane is that you skip straight over all of those wonderful bits in the middle.  When you land you may find that what you thought was waiting for you isn't there.  Take the motorhome on the other hand, and long before you've arrived at your original destination you can discover where you may need to change your plans and adjust accordingly.
 
I want to make sure I'm very clear on one point, planning and strategy is critical to any business endeavor.  The question isn't whether you make a plan, it's whether that plan allows for flexibility and adjustment.  It's making sure that your eyes and ears are wide open.  It's making sure that when you sell a social media program to your boss that you set expectations properly.  It's making sure that the importance of relationship building is first and foremost priority.  We're all business people here.  We all know the end game is making money.  No one here, and especially not me, is saying "just dive in, some really cool serendipitous things will happen along the way and make you money somehow".  I'm assuming you're smarter than that.  I'm assuming you know I'm smarter than that.
 
Social media is driven by relationship formation.  If you want to make one relationship, then getting on that plane to fly to where that one person is will successfully allow that to happen.  If you want to make thousands of relationships, if you want to build trust, if you want to discover along the way that there may be an even better destination out there... then the journey becomes just as important, if not more so.  Those conversations with all those people in those campgrounds that you thought were meaningless at the time can richly reward you later on.  You never know when that family is going to invite you into their home for dinner, be ready for it (and bring dessert while you're at it, it's the proper thing to do).  There is a huge difference between Direct Marketing and Relationship Marketing, and it's the difference between taking the plane or the motorhome.
 
p.s. - On a side note. You would not believe what exists in this amazing country right out most of your backyards.  I'd always assumed things like "purple mountain majesties", "great plains", etc. were exaggerated words to add impact.  Not so.  They are out there.  Go find them.
 
Matt Ridings - @techguerilla

Filed under  //   business   consulting   social media   techguerilla original  
04
May 2010

SAMS - Social Media 3.0 - The Importance Of Advocacy


Those leading the social customer service charge look to the future to try and find meaningful ways of scaling what is currently unscalable.  Those in the branding, marketing, and PR sectors think through the most effective means of developing relationship oriented approaches.  Those in sales struggle with the notion of "sideways selling".

My belief is that at the end of all of these thought processes is a single word.  Advocacy.

To maintain any semblance of the current quality levels and ratios existing in social media customer service will require an army of advocates that become your first tier support.  Your de-facto forum leaders as it were.  On the marketing side they'll need to launch tiered recognition programs for their most valued advocates who become a portion of their marketing arm.  Sales will need long sales cycles based on establishing trust relationships, yet require a means of expanding that circle of trust as quickly as possible, customer advocates will be a primary way that occurs.

To that end I believe a new sector of tools will need to emerge for managing this base of customer advocates, Social Advocate Management Systems (SAMS) for lack of a better term.  While the word "social" is plugged into the beginning, I want to be clear that I mean the word in the relationship sense, not in the sense of "social tools" like twitter, etc.  Yes, those tools will be initial focal points, but the concept is not dependent upon them.

These advocates will come to represent far more than just a recommender of a product, more than just a "influencer", and be far more critical to a companies success.  It will be necessary to insure that you are monitoring, communicating, developing, and rewarding these advocates at a much, much deeper level.  Yet the management of an effective advocate program goes beyond existing CRM, or proposed SCRM systems that I'm currently aware of.  I do however envision the possibility of incorporating SAMS functionality into these products.  The complexity of such a system on its face may appear similar to an advanced affiliate system, but it is far more involved than that.  There are the subtleties of indirect influencer type activities for example, as well as direct hands-on quantifiable activities (customer service, sale facilitation, etc.) by the advocate.  Properly determining, predicting, and rewarding the value an advocate brings is critical but not easy to do.  In addition, you must balance the level of reward with the "type" of advocate.  If there are rewards of actual monetary value for example, detecting a true advocate vs. someone simply seeking enough volume activity to qualify for the reward might be necessary.  The latter, while perhaps influential in the short term, actually represents less value to your organization and has less incentive to provide quality interactions.

We've executed advocacy programs in traditional marketing for years, why is this so different? Because historically those programs are campaign driven exercises, there were always finite start and stop periods of internal focus on the program.  You execute, you collect your data, you analyze your data, you publish your results, and you move on to the next creative endeavor.  In the social world, it is a never ending cycle of constant development and evolution or relationships.  There is no "end".  This means we need a better lens through which to view and manage our advocates, better metrics, behavioral analysis, automated reward systems, etc. so that we can offer the highest level of value to these advocates (with the least number of people).  So yes, it's complex, but at least it's far easier to build than a "sentiment analysis" system that actually works for example.

So this is my vision of what comes after SCRM, what's yours?

Cheers,

Matt Ridings - @techguerilla

Filed under  //   business   consulting   scrm   social media   strategy   techguerilla original  
30
Apr 2010

The Social Evolution, What Is Old Is New Again

 

First, I'd like to give you some quotes to set the stage for the discussion..

 

Programs and promotions to drive traffic to Web sites are an important part of the mix, but equally important is the ability to understand the behavior of the people....

"Understanding user experience and how people interact ... is a big part of establishing a . . . relationship with customers," he said, adding that the Web lends itself to that more readily and more quickly than other targeted media such as direct mail.

"Paper doesn't go away, but [the web] gives us a new level of intimacy with consumers. With intimacy you get loyalty and with loyalty you get profitability."

A proposed model illustrates a direct relationship between .. the online customer conversion process. Relationship marketing, integrated marketing communications, and segmenting, targeting, and positioning should guide both Web ... and customer conversion. Ultimately, a [web program] should help to establish, build, and maintain long-term customer relations. 

 
  All of the above are quotes from either me directly, research synopses we did, or companies that I worked for.  And they took place anywhere from 1996-1999 in the infancy of the internet.  They could just as easily have been about marketing advice in social media today.  Now, I'll grant you that my old boss actually brought the term "Relationship Marketing" to the marketplace, so perhaps I was exposed to the philosophy earlier than most.  We just extended that vision with the Internet added as another part of the marketing mix.  But the notion of understanding and leveraging the behavior of social structures, influencers, etc. to provide value and foster a long term relationship is anything but new.  Referential marketing, Influencer Marketing, Strata Marketing, etc. are all just variations on the same theme.  So it's humorous to see a lot of social media marketing pundits describe these methods as groundbreaking tactics.  
 
I posit that the tactics and strategies aren't new, it's the ability to execute them so much easier that is groundbreaking.  What the general web did for direct marketing in the 90's, social media is now doing again.  Even deeper levels of access and intimacy are yet again made available.  However, as many of us found out the hard way back then, the more intimate the contact the harder it is to gain trust.  At the core of relationship marketing is the notion of what I will call "selling sideways".  The premise being that first you have to go through a trust building exercise (insertion into their communal circle, referenced via an influencer, etc.) before the value of what you have to say can be realized.  A head on selling proposition in an intimate environment actually creates mistrust both in what you say as well as anything you might say in the future.
 
What started this train of thought for me today was an article Eric who works for Forbes and blogs at Opinion At Large wrote titled "Why you don't need social media experts". {please note that the linked blog is Eric's personal blog, is not an official Forbes blog, and does not necessarily reflect the views of Forbes}
 
When I'm asked the question about why I feel so strongly that someone consulting in the social media world have a heavy background in marketing, my point of view is that it is this exposure to the above marketing philosophies that so closely mimic that of the social media environment that truly makes a real-world marketing background invaluable.  While not 100% of past marketers may have been involved in the above approaches, 0% of someone new to the field have been.  I say increase your odds and go for the evolved monkey over the amoeba.
 
Matt Ridings - @techguerilla