It’s uncommon to see much written about individual personalities on the social web — in fact it’s taboo.  However, it’s important to occasionally look at Chris Brogan as a living social media business case study for two reasons:

1) It’s hard to comment on the state of the nation without mentioning the president.

2) Chris Brogan is a pioneer. The issues and opportunities he faces are instructive to all churning in his wake. As Lisa Foote once wrote, Chris is the canary in the social media coal mine.

Chris has created a tremendous amount of value and popularity through his tireless engagement but has also stirred up more controversy than any social media personality, whether through his aggressive use of “sponsored” posts or his apparent sponsorship “flip” at last year’s Consumer Electronics Show.  As I said, he is plowing new ground.  Sometimes you hit a rock.

But last week might have been his biggest buzz-killer when he revealed he charges $22,000 for a day of his services and then subsequently posted (and dropped) an appeal for un-paid interns for his company.

Just to be clear, I’m not in the whiney camp that thinks everything Chris does should be free.  I’m probably the most capitalist, business-driven blogger out here. I like it when people make money. I like it when Chris makes money. I think he should take advantage of his white-hot celebrity, celebrate it, leverage it, and roll in the dough. I hope he can double his consulting fees.

So making money is good.  But from an academic view, it would be useful to look at the “how” — the dramatic shift (or perhaps evolution) in strategy that is enabling Chris to become a money-making machine.

For years, Chris has built his core brand promise on:

• Passionate audience-building through authentic helpfulness
• Relentless nurturing of that audience through tireless engagement
• Putting the audience above personal business needs
• Never, ever “selling”

In one video from last summer, he literally screamed at an audience “This is NOT about YOU and your STUPID COMPANY!”  That effectively sums up his mantra, and the “brand” Chris built around himself.

Around the time of his book release last year, Chris flipped this philosophy upside down and took steps to aggressively monetize his audience.  He explained this change by saying that he had been giving stuff away for a long time and that it was time to make money.  Selling of his products, services, companies, book, affiliate links, and paid sponsors became a common theme. He transformed into the social web’s most visible and highly-paid pitch-man, the Billy Mays of blogging.

Chris also increasingly put himself at the forefront of his topics, including video documentation of a day in the life of himself, photos of himself with near-celebrities, announcements of his new business ventures, and detailed explanations of how hard he works to achieve his success.  As you would expect, some readers expressed disappointment with these changes, and they were sometimes categorized as “haters” instead of “creators” and implored to “get over it.”

In other words, Chris has disassociated himself from that core brand promise to his audience.

In the business world, this would be tantamount to Disney opening a Tia Tequila-themed ride, or Nike doing a fitness cross-promotion with McDonald’s.  When a brand becomes incongruent by building a reputation communicating one thing and then executing another, it can be a recipe for disaster.

In the near-term, Chris and his ubiquity seem to have a limitless ability to capitalize on the goodwill of his audience (heck, loyal customers even bought Toyota cars after the first recall).  From a traditional business perspective, one might predict that if Chris doesn’t practice what he preaches and take steps to return to his core competencies, his brand and his ability to monetize will be increasingly vulnerable.

The furor over the posts last week were not the first signs that people have noticed the new Capitalist Chris.  If it persists, negative outbursts from loyal fans might eventually call attention to the problem with his sponsors and erode his brand and his value.

Or will it?  Another possibility is that Chris is going to be just fine losing some — or even most — of his core followers because he is developing a new audience of corporate folks who don’t care what his brand promise WAS as long as he can deliver results to their bottom line NOW.

In any event, the Trust Agent as we knew him is probably coming to an end as he transitions from social media folk hero to mainstream business consultant.  It will be fascinating to watch the results.

What do you think about this strategy shift?

What are the risks of jeopardizing his core audience for launching a new stage in his career?

With the new demands of the business and publishing worlds, is it possible for Chris to be successful at holding on to both constituencies? If so, how?

Illustration: www.chrisbrogan.com

A brand new study from the University of Massachusetts Center for Marketing Research  compares adoption of social media over three years (2007-2009) by the Inc. 500, a list of the fastest-growing private U.S. companies.  

In 2007, the Center’s first study of this group was released and revealed that the Inc. 500 was outpacing the Fortune 500 companies in their use of social media. For example, 8 percent of the Fortune 500 companies were blogging compared to 19 percent of the Inc. 500. This difference accelerated in 2008 with 16 percent of the Fortune 500 blogging vs. 39 percent of the Inc. 500. And in 2009, it was 45 percent versus 22 percent fo the Big Boys.  

This research shows that social media has penetrated this part of the business world with tremendous speed: 

Not just for customers and employees – As the graph above depicts, many companies are using the social platforms to connect to other stakeholders such as vendors and business partners. This was a new question for 2009 and the first time I have seen this kind of data. Interesting! 

Social media marketing has been “successful” – When asked if the use of social media has been successful for their business, the overwhelming response is that it has. Twitter users report an 82% success rate while every other tool studied enjoys at least an 87% success level. Measuring success was investigated and most respondents report using hits, comments, leads or sales as primary indicators. 

Policy use still low –  61 percent of the respondents did NOT have a corporate social media policy 

Importance and adoption — When queried on the importance of social media, 44% of respondents felt that social media is “very important” to their business and marketing strategy, up from 26 percent.  And a walloping 91 percent of the Inc. 500 is using at least one social media tool in 2009 (up from 77 percent in 2008). 

Monitoring gains –  68 percent of the companies formally monitor company and brand information on the social web.  That number is up from 60% in 2008 and 50% just two years ago. 

Further immersion –  The companies clearly intend to continue immersing themselves in these tools.  44 percent of those without corporate blogs intend to have one. 27 percent of respondents who do not currently have a business presence on Twitter plan to move into that space. 

Social networking leads –  The technology that continues to be the most familiar to the Inc. 500 is social networking with 75 percent of respondents in 2009 claiming to be “very familiar with it” (compared to 57 percent in 2008). Another noteworthy statistic around familiarity is Twitter’s amazing “share of mind” with 62 percent of executives reported being familiar with the new microblogging and social networking platform. 

Adoption curves for social media technologies vary –  Interestingly, while social networking and blogging have enjoyed growth in actual adoption, the use of message boards, online video, wikis and podcasting has leveled off or even declined. The addition of Twitter for the first time in the latest study shows that an amazing 52 percent of the Inc. 500 companies are already using this tool for business. 

What stands out for you in this research? Any big surprises? Or is it ALL a surprise? : ) 

Many thanks to the authors of this study, Dr. Nora Ganim Barnes,  and Eric Mattson.

Jay Baer is one of the few bloggers I’ve found who consistently provides business-based, practical marketing advice.  I usually agree with him.  But he made a reference to social media marketing on a post this week that struck me as odd:

“… unlike every other marketing tool for the past 200 years, it’s a meritocracy, and that benefits us all.”

I’m only picking on Jay because this is the most recent iteration of a theme I’ve observed countless times — the opinion that somehow the social web is in a special new category where you actually have to EARN the trust of your customers.  Another variation is that the social web has “changed everything” about business and marketing.

No, it hasn’t.

The free market economy has ALWAYS been a meritocracy and always will be. If you don’t provide a quality product or service and you don’t represent it in an honest and compelling way, you won’t earn your way into the hearts and wallets of the world’s consumers.

Pre-social media, pre-Internet, even pre-mass communications, the fundamental tenet of marketing was this: Establish a brand promise based on consumer trust and never, ever break that trust. The concept is simple, the execution is extremely difficult.

Marketing is a continuous war to promote and protect your brand, whether it is a company, hospital, university, sports team or individual.  Social media offers an exciting new way to connect, but the marketing fundamentals are truly still the same.

The social web is just a new battlefield, not a new war.

How is the social web affecting your battle plan?

Zappos* is a successful company with a well-publicized, aggressive employee use of social media.  In fact, it may be the most famous social media model in all of blogdom. They have 13 blogs, 50,000 videos and their employees tweet like rabbits in heat.  It’s worked for them and it’s a wonderful case study. I get it.  But it’s probably the wrong model for most companies.   

And here’s the point where the waves of Zappo-sniffing social media purists come crashing down on me.  So be it.  This is dangerous stuff. 

It is relatively safe to blog and tweet about shoes.  But in many companies, the risk of an all-employee social media free love policy will far outweigh the benefits.  For many important companies all it will take is one Twitter-induced SEC violation, a leak of vital competitive information, or a national defense breach, and the hammer will come down on the use of social media forever. Policies are usually made to deal with the lowest common denominator.

Is this a leadership issue? Not necessarily. There are irresponsible people everywhere.  There are disgruntled employees even in the best-managed companies.   Where corruption can occur it will occur. Welcome to the human race.

So what’s the answer?

Under the following conditions, the Zappos model might be ideal:

• Company culture supports employee engagement
• Company leadership understands the model
• Customer base is active on the social web in a meaningful way
• Benefits outweigh risk of security breach

If just one of these conditions are not met, the free love policy cannot work. 

That’s not to say that social media won’t work in some form with almost any company if there is appropriate training, role clarity, effective policy and boundaries. But you have to fit the tactics to the strategy — and the culture — just like any initiative. 

A marketing leader has to make effective decisions based on what IS, not on what you WISH for. You can’t “will” a social media effort to work in your company just because it worked in the Zappos corporate culture.

For an excellent and thorough perspective on the need for effective and appropriate corporate social media policies, I recommend Kent Huffman’s recent post on the subject.

OK, your turn. Let ‘er rip!

*If you are unfamiliar with the Zappos social media model, Jeff Bullas has written wonderful case studies on this company:

• How Does Social Media Help Deliver On Zappos’s 10 Core Company Values

• Why Would Your Company Need 13 Blogs?

• Revelations On How An Online Retailer Went From Zero to $1.2 Billion

• 6 Ways Zappos Uses Twitter To Increase Sales

If I leave a conference with a few “kernels of truth” I can gnaw on and think about, I consider the time well-spent. Here are a few nuggets I picked up at the Social Fresh conference held in Nashville this week.

“Movements make their audience feel like rockstars.”
To me, the highlight of the conference was a talk by Geno Church. Geno, of Brains on Fire, is an engaging speaker and discussed the distinction between marketing plans and a cultural movement. The most amazing case study of the day was work he had done for Fiskars Scissors (I guess you could call it cutting-edge). By enlisting scrap-book enthusiasts (The Fiska-teers) to contribute as bloggers, they created an army of passionate Fiskar users. If you can make scissors exciting, this guy can market about anything!

“People fill information voids with rumors. Your strategy is simple. Don’t allow information voids.”
Another super-bright guy I met was Dan Zarrella. Dan spends his time poring over Twitter statistics to determine the secret sauce that makes something go viral. He applied evolutionary theory, mathematical principles and psychology to his study.  A few Twitter items that people pay attention to:

• Warnings
• “Social proof” as evidenced by large numbers of tweets
• Bigger, bolder, louder statements
• Tweets with “you”
• Tweets that are personalized
• Tweets that occur later in the week

“The biggest failure in social media marketing is not doing anything.”

Paula Berg, who just left her job with Southwest Airlines told some riveting stories about the social web and crisis communications.  Remember when the USAir flight went down in the Hudson and the first news and photos came through Twitter.  USAir did not have a Twitter account … but started one that day!  She also talked about the trust-selling strategy on Twitter, noting that the airline had been on Twitter since 2007 but did not attempt to make a sale through the channel until 2009.  When they did, they set a single-day sales record — only using the social web!

Paula also provided an entertaining case study about a rap-singing flight attendant that became a national phenomenon.

“If you don’t think it’s about BUSINESS your gonna be out of a job!”

This was a refreshing and encouraging statement from Jason Falls, an admitted recovering social media purist. He has distanced himself from the “it’s all about community crowd” and in fact playfully made fun of them.  Nice to see capitalism creep into the social conversation.

Illustration: Christian Science Monitor

I’d like to start with an excerpt from a a recent Gregg Morris post. This is an email from one of his associates, expressing frustration at an inability to convince small businesses to engage in social media marketing:

Social networking is making zero inroads into any of the businesses (SMBs) we have visited and interest in “mining” those networks is similarly zero.  It’s not that they are rejected as future possibilities, but rather that SMBs haven’t time for it, since they sense the costs far exceed the benefits … The facts are the facts – SMBs are still the same as they always were: overworked, scratching for dollars, but now fighting even harder for market share. They are competing not just with local competition but also with online, distant suppliers and, of course, big box retailers.

To the point: Joe average – architect, restaurant owner, retail store – are not stupid, nor are they unaware of the need to handle their customers better. All I see … is the same, stupid Social CRM Expert-type of messaging. A bunch of esoteric bullshit skimming the surface of the problem, with no real solution offered. Everywhere I look, they all say the same thing: “You have to communicate with your customer…”, “you need to serve your customer…”, “you need to do this, that or the other…”. Lots of “you needs”, but few “here’s exactly how”

This little rant hit a chord for me because I teach a social media marketing class for small businesses and I constantly hear these same concerns.

There is a business cultural gap that is keeping many SMB’s from working this channel: Typical SMB ”advertising” is a hand-off. All the work is done by an ad agency and/or the advertising sales people.  There is little personal time expenditure and the cost/benefit is usually easily measurable. Not so with social media marketing.  There is more hands-on doing and the results may not be immediate.

When I consult with small businesses, I recognize that for many, the time commitments and demands of maintaining a consistent, effective presence seems overwhelming so I help them cut through the hype and FOCUS.  I encourage them to consider five very practical questions:

1) Do I know enough about social media marketing to make the right decision for my business?  Not knowing the possibilities would be the same disadvantage as operating a business without knowing such a thing as television advertising existed.

2) What is mybusiness strategy and how could a social toolkit align with my key initiatives?

3) Are my customers using the social web?

4) Are my competitors using this channel, and what are the competitive implications if I decide to participate or not?  Could I create advantage by being an early adopter?

5) Do I have the resources, or can I acquire the resources, to conduct limited, focused experiments to see if working through the social web can provide a cost-benefit exceeding traditional advertising?

After my students walk through these questions, they usually conclude a) yes, this is something with a lot of potential and b) there are practical and manageable methods to approach this if I stay committed and focused.

Does this make sense to you?  What is your experience with SMB’s and the social web right now?

{grow} community alert: Pete Mosely, a frequent contributor to {grow} has a new eBook out on promotion fundamentals which is a nice companion piece to this blog article.

The social web may be the most revolutionary marketing tool since the advent of radio.  I don’t have to tell you why at this point.  But for all the opportunities, there can also be danger, if the technology is mis-applied or misunderstood. Here are some ways social media can destroy customer relationships:

1)      Hit and run communication.  Many people, especially under-20s who have been conditioned to handle conflict over text messages, mis-use the technology. If 80 percent of communication is non-verbal, how much is lost when customers provide customer service issues over a tweet?  We are more likely to be unprofessional, harsh and inappropriate in writing than in a live conversation and unfortunately, more and more important customer interactions are taking place over short-form messages.

2)      False sense of expectations.  I’ve observed that some companies are urgently getting into the social media scene and then being unprepared for the response.  It’s so easy to connect with customers today, but you better be prepared to connect with them in a meaningful and appropriate way or you will disappoint them and then lose them.

3)      Over-dependence on social media. Pick up a phone. Make a personal visit. Write a thank-you note. Don’t get too hooked on communicating through only social media, especially if it’s not your customer’s preferred way to communicate.   Going old school can actually help you stand out.

4)      Wrong person in charge.  Some companies pick a person to run their social media efforts just because they have a nice Facebook page. Wrong.  Like your website or your sales and customer service efforts, this is your front line of defense. I would much rather have an experienced customer service person learn social media than a social media person learn customer service.

5)      Customers are learning to game us.  I had a company president tell me that he no longer responds to customer complaints over Twitter. Customers caught on that complaints meant free merchandise and the company became overwhelmed. So they just stopped until they can figure out a solution.  Now even people with real complaints are being ignored because it is too difficult to separate the real problems from the gamers.

So, there are a few dangers withn the opportunities. What do you think?  What customer-related dangers could be prompted by using social media in your business?

I’ve had the great privilege of teaching a college-sponsored class on social media marketing and as usual, I’m learning more from the class than what they’ve learned from me … but that will be our little secret, OK?

As I was providing examples of how you can leverage content across various channels to increase awareness, I had to admit that I didn’t practice this very well myself.  Why?  I just don’t have the time.  

My marketing consulting practice has been very strong, and as I strive for an ideal work-life balance, something has to give.  Time spent on incremental efforts like Facebook and Twitter has to take a back seat to family and customer needs.  

This may seem like heresy from somebody who lives and breathes marketing, but I think this will be reality for more and more people.  As the economy heats up, unemployed, or under-employed, individuals spending vast amounts of time on the social web and networking will have to make new choices as they return to work.  

Here’s my hypothesis:  The growth of social media will slow as the economy improves.  And in areas where the economy is doing extremely well, social media usage may actually decline slightly.

Other possible implications:

• As people return to work, the prime activity level on social media will be more heavily-weighted to the evening hours, since many companies restrict social media usage in the workplace.
• The number of channels in which people participate will narrow. This may hasten the decline of some platforms like MySpace.
• There may even be a slight shift in advertising budgets BACK to traditional media (drive-time radio?) since access to Internet-based impressions will be limited in a workplace.  How do you see a Facebook ad when you’re working a construction job?

I believe that use of the social web will still grow overall as people and companies find clever new ways to make the underlying technologies more useful and fun. But I think it is unavoidable that an improving economy will temper this growth.  The best environment for social media growth is when people have a lot of time on their hands and a shift is in our future.  Do you agree?

Note:  In addition to some wonderful comments below, you can find a nice counterpoint perspective on Gregg Morris’s related blog post: http://bit.ly/3tQtiW

The GE Social Media Team: Gary Sheffer, Jen Walsh, Sean Gannon, Lisa Lanspery, Mike Eisenreich, Megan Parker and Vivek Kemp