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Posts tagged: advertising

Dec 06 2009

This is the future of social media

metropolis

With the dawn of the social web, I can’t think of a more exciting time to be in the field of marketing.  But I don’t think we have really seen anything yet!  Here are 12 developments I believe we will witness in the future … and probably sooner than you think.

1) Hyper social measurement– At some point soon, Google is going to start doing something bold with the volumes of personal data they’re collecting.  Google is in the best position by far to define social media monitoring, especially now that they are taking steps to fold in data from Twitter, Facebook and other platforms. Once Google flexes its social media monitoring muscles, companies like Radian6 will become niche players at best. Complex algorithms will determine real-time sentiment shifts down to the individual.  And it won’t be free.

2) Tapping into text messaging– The one communication mode largely untouched by real-time search is text messages.  This is a goldmine of information too big to ignore, especially if you’re a “cool-hunting” consumer product company.  Entrepreneurs will find a way to tap into the “text stream” by rewarding users for being included in their data-gathering systems. Does this seem improbable?  Would people accept a free cell phone and free data service in exchange for their text information being stored in a database for consumer product research and targeted promotions?  It would work.  

3) The human coupon– The massive quantity of personal information available about you will eventually follow you around.  Enabled by GPS and RFID technology, coupons and special offers based on your buying patterns will appear instantly on your mobile device as you near a store.   RFID chips embedded in packaging will send messages during your purchase decision to encourage up-selling and cross-selling.  For example, if you pick up a blouse off of a rack, a message will direct you to the precise area of the store where you can find a matching skirt … on sale just for you. 

4) Radical privacy movement — This intense data gathering and the use of it in a Big-Brother-like manner will spark a backlash, including legislation, assuring the right to be excluded from Internet data-gathering tools.  Because of its power and control over voluminous personal details, Google will become the most profitable, and despised, company in history.

5) Man-machine interface.  Medical advances and social media platforms will converge.  Scientists are already embedding electronics in humans to power limbs, regulate body functions, and enable the brain to access information from micro chips. It’s now possible to think a tweet or control artificial limbs with a thought.  Humans will routinely carry a computer inside of them, powered by body heat and motion. You will literally always be on the social web, generating messages just by thoughts.  Humans will have markings like tattoos to display the premium, designer brand of devices embedded in their bodies. This will give new meaning to the tagline “Intel Inside.”

6) We become the Internet.   Today, people talk about Twitter, Facebook etc., never really connecting that these are all “Internet.”  As the social web literally becomes part of our bodies, we will no longer distinguish between listening, talking and electronic communications. In our minds, there will be no more web. It will just be.

7) Massive national ID validation. The social web will become the exclusive source of consumer information, political research/policy development, and education systems. Because of the increasingly critical  importance of this feedback and the opportunity for corruption, complex systems to prevent fraud will be needed, including a broadly-implemented government validation program that extends across all platforms.

8) Micro politics — Politicians will use real-time sentiment analysis to craft and re-craft voter appeals right up until the moment they enter a polling station.  Political messaging will be nearly-instantaneous and tailored to individuals based on data purchased from Google.

9) Extreme content — Journalism, film-making and advertising agencies will thrive, much to the surprise of nearly everyone.  The need for content on the social web will drive radical evolution of  these three traditional professions and “Content development and management” will become a popular college major.  While most content today is generated through “free” submissions to YouTube, blogs, etc., salaries for the very best and most creative content providers will skyrocket as corporations raise the creative bar to cut through the clutter. 

10) The loner workforce. The cultural impact of the social web will have radical implications for managing the workforce of the future. How do you deal with a generation of employees who have been conditioned to communicate through their thumbs?  Employee training of the future will look increasingly like video games.

11) Digital divide grows  — For many parts of the world, access to free, global communications will be a great equalizer between rich and poor nations, especially as web-based translation services improve and encompass local dialects. However, in countries where people cannot access the web either for economic or political reasons, the digital divide will not only grow, it will become permanent for one simple reason: they will fall so far behind the technology curve they will never be able to catch up. Digital commerce, innovation and technology will be permanently dominated by those nations in the game NOW. 

 12) Pay for play– Social media is free but the cost of attracting consumer attention will become increasingly expensive, especially with the ability to skip ads.  At some point, the cost per impression will be so high it will be less expensive to simply pay people to watch an ad.   Combined with the “human coupon” trend mentioned above, this would provide nearly perfect information on cause and effect of advertising campaigns. 

Well, that’s enough far-out thought for one blog post and I’m sure you have A LOT to say about it!  Your turn. The comment section is now OPEN!

Tags: advertising, best practices, business writing, capitalism, careers, competitive advantage, corporate communications, futurist, innovation, Internet marketing, marketing strategy, research, social media, sociology

Filed in futurist | Mark | Comments (58)

Nov 03 2009

B2B’s biggest social media screw-ups

While the case for social media as a marketing channel is compelling for consumer products companies, I’ve been particularly interested in how it is being used … or not … by mainstream industrials.  Earlier this year I assessed the social media presence of most of the major Fortune 500 B2B giants looking for case studies.

I found some great examples, but for fun, I’ve decided to start out with the WORST companies I found out there. With few exceptions, major industrial companies are not utilizing – and in many cases ignoring — social media as a stakeholder connection point. A few fun facts:

  • Number of Top 25 B2B companies with more Twitter followers than me (None)
  • Worst B2B corporate Twitter-er (by far) — DuPont. An example: “Back off weeds! 4 new herbicides are coming to get you …”
  • Most popular corporate social media platform: Facebook
  • Percent of companies with either Facebook or MySpace pages: 75%
  • Percentage with both: 25%
  • Most popular use of social media: A place to post press releases

With no further delay, let’s take a look at the Top Five biggest B2B social media screw-ups.

5. 3M Corporation – I love 3M. I’ve always cherished their heritage of innovation and product development. If any company in America could take advantage of the awesome power of global community it should be 3M. Where are you guys? We need you out here.

4. General Dynamics — There is a not-very-good techno rock band called General Dynamics who dominates the social media bandwidth. That’s a problem for a Fortune 100 company with the same name. This is the time for the company to flex some legal muscle and tell them they were there first! In the corporate world, this ID theft is tantamount to a porn starlet naming herself “Pepsi.” You have to take action on this, General Dynamics! Go kick some techno butt!

3. Oracle Corporation – You would expect an ego-laden company like Oracle to be sucking up the social media space, but not so. The Twitter account is exclusively a press release machine and their other sites are ill-attended placeholders. Larry, look at what SAP is doing with social media. Work it baby.

2. Johnson Controls — This Fortune 50 titan has had their name usurped on Facebook by a bunch of disgruntled employees. An example of social media gone very wrong when you’re asleep at the wheel.

1. Dow Chemical Company. The pinnacle of social media mayhem. The first search result for Dow on Twitter is called “spillspill” and the largest company-related Facebook page is called Fuck Chemical Valley and Fuck Dow (42 members). The MySpace presence has also been hijacked, complete with fake logos, fake employees and a mission statement that includes: “minimizing damage by angry citizens who have been affected by our pollution through legal suits and PR campaigns, making sure scientists who find our products to be dangerously toxic are not allowed to publish.” Dow has a proud history of PR fubars. The legacy continues.

Disclosure: My ex-wife had family ties to the chemical industry. While clinical tests have shown she is toxic to humans, she is not associated with the Fuck Dow campaign.

Tags: advertising, branding, business strategy, corporate communications, facebook, Internet marketing, marketing strategy, research, social media, twitter

Filed in B2B and social media, Case studies, Social Media best practices, business relationships, business strategy, social media, twitter | markschaefer | Comments (7)

Oct 20 2009

Studying U.S. keeps East European marketer a step ahead

me-large

I decided it would be fun to feature some of the great people of the {grow} community from time to time. You’ll probably recognize the name Kimmo Linkama as a regular contributor who has distinguished himself with his insights and perspective.

Ever since I connected with Kimmo there have been two things on my mind:  How did he get such a cool name and what’s it like to work in social media in Estonia. So I decided to ask him … and share it with you!

Mark:  How has your career path led you to your interest in social media?

Kimmo: I’ve had the good fortune to see marketing communications from all sides. I’ve worked on the agency side and the client side, in advertising and in PR, and have had assignments with both national and international audiences. Finnish marketing communications works on pretty much the same principles as in the US, so now that social media is clearly becoming the next “big thing” in marketing, especially in my B2B niche, I need to know what’s happening and what are the best strategies.

Mark: And how’s business in Estonia?

Kimmo: Let me first give you a little background. I’m originally from Finland and moved to Estonia about four and a half years ago.  Business is difficult in Estonia, especially with the recession, and I still work almost 100% for Finnish clients.

Europe, in comparison with the US, is extremely fragmented. There are 50 countries and 230 languages (although the official European Union languages only number 23). Estonia, where I live, has a population of 1.3m, about the same as Philadelphia. Finland’s population is 5.3m, a little more than Los Angeles and is the most sparsely populated country in the European Union.

From where I live, Otepää in south Estonia, it is only some 160 miles “as the crow flies” to Helsinki, Finland, where most of my clients are located – although there’s a two-hour boat trip across the Gulf of Finland in-between.

Mark:  Sometimes I feel like the social media trend swamped marketers here in the U.S. and we’re still recovering. You are in a unique position of being able to watch for what is happening in the rest of the world BEFORE it hits your region and your customers. How does that help you or hurt you?

Kimmo: It definitely helps.  Although most ideas that are taking off in the U.S. reach even my remote corner of Europe very quickly, there’s still a slight delay.  That’s why I am – as you said – in a unique position to get on board a little before a new trend becomes mainstream here. The benefit, of course, is that I’m able to get some hands-on experience in social media, so when it begins to really catch on as a marketing ideology, I will know better what I’m talking about and be able to help my clients in a relevant way.

Mark: What social media platforms are being used in Eastern Europe?  Are entrepreneurs developing regional-specific platforms or are you seeing global apps like Twitter take off?

Kimmo: We have the whole spectrum: blogs, forums, chats, microblogging.  There are regional-specific platforms, but on the whole I think the global applications have so much critical mass that they will eventually come to dominate. For example, the development of the Finnish Jaiku microblogging app, roughly similar to FriendFeed, began almost concurrently with Twitter. When Google bought Jaiku a couple of years ago, it has gradually stagnated, and now a new development, called Qaiku, is trying to take its place. I have my doubts about the chances of survival of these regional developments against the big globals, though. It is more probable that a bigger player will buy them in the end.

Mark: What is social media adoption like in your region? Is it being used for business? What are the hurdles?

Kimmo: Finns have always been pretty tech-savvy. Blogs are proliferating, and Facebook is very popular. A fair number of companies have adopted blogging as one of the ways to get their message out, but for example Facebook seems to be mostly for personal-type contacts. I haven’t yet seen many serious attempts at business use, although some companies do have a Facebook presence. The company pages, however, seem to be mostly of the press release type, publishing company news rather than encouraging dialogue.

Microblogging is done more by individuals; so even if they are clearly associated with their employers, the messages mostly have a personal point of view. I think the biggest hurdle for wider business adoption – if we rule out lack of knowledge – is exactly the same as everywhere else: businesses are so used to traditional push marketing that the idea of losing control of the message is frightening. It takes time to alleviate this fear, but as the trend grows stronger, everyone will have to go with it one way or another.

I also don’t know how many agencies really know how to go about this “new way of marketing” when it comes to recommending the best ways to their clients. I’m hoping my social media experiments, if you will, enable me to fill that void for my part.

Mark: Kimmo, you have such a cool name. Is it a family name or just a common name in your homeland of Finland? 

Kimmo:  Thanks for the compliment! Kimmo is not a very common first name.  I looked it up and there are about 18,000 men with that name. Its roots are sometimes traced back to the Greek St. Evdokimos, but I don’t know how scientific this is.

Feel free to ask Kimmo additional questions in the comment section …

In addition to his contributions to the {grow} community, Kimmo’s blog, “Marketing Communicator” can be found at: http://linkama.wordpress.com/

Tags: advertising, business relationships, careers, social media, twitter

Filed in B2B and social media, business relationships, economics of social media, personal branding | Mark | Comments (2)

Sep 11 2009

Can Twitter read your mind?


I saw an inventive little advertisement from Volkswagen - you type in your Twitter handle and it recommends a car for you based on your tweets. One friend tried it and said it recommended the very car she was going to buy.

Other, playful sites (contributed by {grow} community member Nancy Scott) provide psychographic profiles on demand: Tweetpsyche and Personas.

Now these clever apps may seem like cute carnival tricks, but the point is, marketers can learn a lot from your tweets. A new crop of apps is being developed with their own secret sauce to glean personality information from slicing and dicing what you say and who say it to.
And it’s all out there … for free.
The other day a Nielsen representative tried to call me for a survey. I was in a particulalry busy period trying to keep the world safe for blogging and couldn’t be bothered. They tried contacting me three more times before giving up. I guess I was just feeling curmudgeonly.
Mr. Nielsen, why not just look at my tweets? You can probably find almost anything you’re looking for right there. The music, TV and movies I like. Books, politics, romance. Attitude and gratitude.
The social media consumer research applications being developed right now represent the most exciting, dynamic aspect of marketing I have seen in my career. Your tweets are certainly going to turn into marketing gold.

Tags: advertising, innovation, Internet marketing, research, social media, twitter

Filed in ROI and measurement, Twitter apps, research, social media, twitter | markschaefer | Comments (4)

Sep 08 2009

Fanatic-focused marketing

 
Research shows that the good old 80-20 rule is going out the door (meaning 80% of your business is driven by 20% of your customers). New database and monitoring technology demonstrates that as little as 4 percent of your customers may drive as much as 65 percent of your business.
One recent study showed that just 1 percent of a petfood producer’s customers drove 80 percent of its profits! Your core 4 percent are not consumers, they’re fanatics! What are the implications of this mega-trend?

a) If you don’t know if this trend is applicable to you (hint: it probably is), it’s important to find out! Tap into your existing data to discover core users and trends. If you’re not a data person, I know two people who can do this type of analysis quickly and affordably. Drop me a note or call me and let me know if you need a reference.

b) Word of mouth is 4X more effective than personal selling and 7X more effective than most types of traditional advertising. If your fanatics are driving sales better than any marketing effort you could dream of, what are you doing to make it easy for them? Wouldn’t fanatic-focused marketing be the most effective ad dollars you can spend?

c) Surround your 4 percent with the tools to help them recruit others to your brand. Ideas – special deals, gifts, logo-clothes, programs available for them to pass on to friends.

d) These people want to give back to your brand. How do you engage them, encourage them, and listen to them in a special and personalized way? Ideas: Invite them to special one-on-one sessions with company employees and executives; develop personal portal websites where they can submit ideas, stories, photos; feature them in your ads and promotions.

e) If you are building your brand with a limited budget, don’t focus your marketing dollars on the masses. Start small with your core fanatics.

f) Now that you have identified and nurtured your core 4 percent, how do you replicate them? Do a simple profiling exercise. Click here for a previous article that will give you ideas on how to do this quickly.

g) Here’s the most important point of all – LISTEN to them. These people are your leading indicators of customer satisfaction and a potentially powerful source of innovation who WANT to help you! Dig deep. Spend time with these people! Show them the love!

Illustration: Cheryy8_15

Tags: advertising, best practices, branding, customer acquisition, customer satisfaction, media spend, research, sales strategy

Filed in B2B and social media, Marketing best practices, Traditional media and advertising, branding, marketing strategy, research | markschaefer | Comments (2)

Aug 18 2009

The invisible rules of social media

This is the second part of my interview with Robin Frank, who leads social media efforts for Gap Outlet, Banana Republic Factory Store and other well-known brands. The first part is here.
After being in the social media trenches for some time, what organizational or cultural changes need to be made at a company to succeed with the new channel?

In the world of improv comedy, there is a concept called invisible rules – the rules you play by, but have never really questioned and aren’t explicitly stated. Traditional brands have a few invisible rules that social media pushes them to articulate, explore, and eventually move past, and each company has their own set.

One such rule is that large brands historically use any opportunity for customer interaction to push their product and promotions. Engaging their brand advocates in conversations, rewarding their customers with special deals and promotions, and encouraging word-of mouth on a daily basis is new territory. The real fun begins when they branch out and offer relevant and useful content for their social media audiences. Sometimes this is an easy leap and just a matter of giving them a few creative ideas that are aligned with their brand.

For Gap Outlet and Banana Republic Factory Store, we created a series of tweets (and soon Facebook posts) that run several times a week called “Fab without a Fortune” – these are tips that speak to their social media audiences and show them the brand “gets” what they want and is there to help them shop smarter, stretch their dollars, and still be fashionable. We’ve had a great response with these.

The other invisible rule I sometimes come up against is the “email is king” mentality – brands want to use social media to drive people to their email lists because then they’ve GOT them. I see many companies with big budgets for email marketing, and they need some help understanding that social media channels such as Twitter and Facebook can be less intrusive, more direct, and offer better results.

Customers are more likely to follow you or fan you than give you an email address. And, it is mega opt-in – customers want to hear from you more than say, once a week – they want to hear from you several times a day. I have seen double digit click through rates on Twitter and Facebook that put email marketing to shame. These companies need some guidance to transfer resources and rethink their approach so they can ask their loyal customers to join them on Twitter and Facebook.

As every brand competes for the consumer’s attentions, the emerging social media channel is becoming noisy and crowded. Is consumer overloading a real risk for you?Sure, there are a lot of brands and noise out there, but there will always be loyal followers who want to HEAR from your brand and want to be HEARD. Going forward, consumers will actually demand higher engagement from brands – more useful content, more useful promotions, more entertaining links, more conversations.
Smart brands will give consumers the ability to CHOOSE how they want to interact – email, Twitter, Facebook, YouTube, or any other channel. Just remember that social media followers are finicky – the will unfollow you in a click, or simply not participate if you do something they don’t like. My advice is to stay focused, stay engaged, and make it as easy as possible for consumers to do business with you.

Tomorrow: Robin’s six social media strategies for YOU!

Robin consults with a wide range of companies – retail, banking, clean/greentech, and B2B – helping them establish cost-effective Social Media programs that increase marketing ROI and foster broader and deeper customer engagement and education. You can reach her at @robeen, robeenf@gmail.com, or linkedin.com/in/robinfrank.

Tags: advertising, best practices, branding, research, sociology

Filed in Social Media Policy, Social Media Strategy, Social Media best practices, Traditional media and advertising, branding, sociology | markschaefer | Comments (0)

Aug 17 2009

Major brands may be reluctant to integrate social media, traditional marketing

This week I’m excited to introduce a three-part interview with Robin Frank, a marketing professional who leads the social media strategies for Gap Outlet, Banana Republic Factory Store and other national brands. Away we go …
Robin, on these powerful brands you work with, how are you integrating social media marketing with traditional marketing strategy … or are you?
The reality is that big brands WANT to do social media the integrated way, but they often seem unwilling to invest a lot upfront in content, strategy and integration. The media also doesn’t help, as it leads them to expect big things for just showing up to the party. They figure once they have “proven” social media works, they will then get in there – lock, stock and barrel.

I see some brands that are reluctant to integrate traditional marketing (website, blog, email, or offline/online advertising, promotions etc.) until their social media programs are deemed “successful enough.” For these clients, it helps to have good analytics, a focused pilot, and to plot out the integration with their marketing strategy in phases.

Other brands have jumped head-first onto the social media bandwagon because they HAD to be there, but with minimal strategy, focus, and expertise and haphazard alignment to marketing/business objectives. They’re now wondering why they aren’t seeing the returns hyped by the media. These clients are open to integrating social media into their marketing mix – they just need help evaluating the best way to go about this – choosing the right channels, campaigns, and communication strategy.

What accountability does the social media aspect of brand management have? What metrics are in place and what tools do you use to measure progress?

The social media segment is finding itself increasingly accountable. At first, there were a lot of people talking about how social media doesn’t have traditional ROI, it has all kinds of other types like ROE, and how it was impossible to quantify the monumental impacts on brand equity and community. But that doesn’t fly for long with brand management.

You need to justify and quantify your efforts and the resources spent. And you need to be smart about it. There are numerous applications and platforms out there and it can be difficult for companies to know what to use and how to put it all together in a report that is really useful. I have my own selection of favorites which I customize to report both financial and non-financial indicators and present it in a compelling, useful, and actionable format.

While measurement and analytics are carefully tailored to each client, those of you trying this at home will want to include these same elements in your reporting – financial ROI to measure sales, transactions and customers; non-financial metrics to measure mentions, sentiment, link click-throughs, exposure, virals (retweets, comments, shares, etc.), and conversations/engagement.

 

So much of the success of social media is dependent on authenticity and personality. How does personality come through on your initiatives? How is the social media brand persona determined — through standards and guidelines or is it at the discretion of the communicator?

I guide my clients in creating a social media brand persona, and we define its limits together. I usually help craft or tailor guidelines for interaction and participation for all employees/contributors.

There is a lot of hand-holding that goes on – brands are sometimes stuck in the traditional push marketing voice – you know, the one devoid of human connection. They have to be educated on how to speak with a personality that people can connect with, and one that reflects their brand values.

I usually do a lot of the content in the first months, and they have to sign-off to make sure it is “on brand.” Over time, brands learn how to have a little fun and to be all the things they should be on social media – interesting, engaging, entertaining, helpful, and participatory – in other words, they learn to be a valuable member of the community they create.

Tomorrow: Social media culture change and consumer info overload!

Robin Frank consults with a wide range of companies – retail, banking, clean/greentech, and B2B – helping them establish cost-effective social media programs that increase marketing ROI and foster broader and deeper customer engagement and education. You can reach her at @robeen, robeenf@gmail.com, or linkedin.com/in/robinfrank.

Tags: advertising, branding, corporate communications, financial impact, Internet marketing, marketing strategy, measurement, social media

Filed in Case studies, ROI and measurement, Social Media Policy, Social Media Strategy, Social Media best practices, branding, social media | markschaefer | Comments (7)

Aug 13 2009

Google, branding, and the beauty of zero

If you were in a discount shoe store and saw a beautiful new pair of Nike tennis shoes on sale for $11.99, how would you react?
If you’re like me, you would conclude something is wrong with the shoes! Nike has spent millions to groom and nurture their brand and cutting the price only diminishes their premium image.
So what would you think of the brand image of a product that has a price of ZERO?
This was the subject matter of a little “twit-à-tête” between myself, my friend Steve Dodd, and a few others on Twitter yesterday. I had suggested in my last blog post that small businesses need a free, cross-platform social media metrics dashboard.
That started a round-robin of tweets (yes, pun was intentional) regarding why it had to be free and the impact that price would have on brand equity. Steve’s comment was: “Why should comprehensive measurement tools be free? In my opinion, if they are monetized other ways, their credibility tanks.”
Steve is a keen intellect and when he speaks, I listen. Certainly using my Nike example as a model, he’s absolutely right.
But then I thought about the revolutionary, brand powerhouses like Google, Facebook and YouTube. For you and me, the price of their products is zero, yet they have convincingly nurtured an extremely strong brand in the mind of consumers.
Consumer products in the same price range as Google would be a paper towel in a public restroom, a salt packet at McDonald’s and a toothpick. Think about THAT as a weird business model!
Can you think of another example in history where a company carved out a premium product image (like Google) with a price of nothing? Have we entered a new era of marketing where, in some cases, a brand image can be completely disconnected from price?

Tags: advertising, branding, eCommerce, facebook, financial impact, Google profile, social media

Filed in Google techologies, Marketing best practices, Traditional media and advertising, branding, economics of social media, marketing strategy, social media | markschaefer | Comments (8)

Aug 01 2009

The world's greatest viral marketing success story?

Can you name a national, brand-name product with zero advertising or marketing budget, yet serves over 6 million satisfied customers a year?
I took a day off this week for digital de-tox and spent it hiking in the Great Smoky Mountains National Park. This American treasure may be the greatest example of viral marketing in history.
It is the nation’s most-visited park with 6 million visitors a year. Yet it has no social media plan, no advertising, no celebrity spokesperson, and no search engine optimization plan. It is just a great product. People visit it, tell their friends about it, and come back year after year to experience it all over again. The Internet is filled with hundreds of thousands of product photos, stories and testimonials.
Can you name a better viral marketing success story? 6 million customers. No advertising.

Tags: advertising, branding, search engines

Filed in Social Media best practices, Traditional media and advertising | markschaefer | Comments (9)

Jul 23 2009

The most important question in social media marketing

This series of articles has been examining social media measurement strategies. So far we’ve focused on the one, true financial measure, ROI, and have started to examine more qualitative measures like impact on brand equity.
Whether you work for a company or a non-profit (these days, is there a difference?), you must strive to align every marketing initiative with the organization’s mission. But I also know true financial measurement may not be feasible. And in that case, it’s time to throw ROI out the door.
Why? Because grandma alway told me to deal with what is, not what we wish for. We have to be realists. Your best efforts to achieve accurate financial measurement may be constrained by technology, budget and resources. So, if you can’t get there in the near-term, what DO you measure? That’s why we’ll now turn the discussion to non-financial indicators (NFI’s) and the critical importance of selecting the correct measurement strategy for your social media marketing efforts.
There are hundreds of potential NFI’s but there is only one question you need to know to pick the right one: What behavior am I trying to drive?
Here is a great example of this concept in action. Walgreen’s has been a stellar financial performer and much of that has been attributed to its focus on one metric: Net profit per customer visit. Behavior they are driving? Spend more money with Walgreens!
Think about the impact of that one metric — it would influence the store location and lay-out, product placement, product choices, advertising strategy, branding strategy, pricing decisions … literally every design, distribution and marketing decision could be made to drive that single metric ever upwards.
So you can see how powerful and critically important choosing the correct metric can be. And if you do, a magical thing will happen — Your marketing activities will begin to conform to that goal. The manner and level of engagement will rise to meet the need of pushing that metric higher and higher. If you choose wisely, the appropriate NFI will make your strategy EVOLVE!
What behavior are YOU trying to drive and how are your metrics supporting it? Sharing your ideas would help our community.
The next article in this series will examine specific options as you try to answer this most important question in marketing measurement.
This is Part Five of a series examining social media marketing measurement.
Part 1: The biggest lie in social media marketing

Part 2: Social media ROI shock treatment

Part 3: Irresponsible social media measurement research            

Part 4: Social media impact on brand equity                                                        

Part 5: The most important question to ask in social media marketing     

Part 6: A double standard for social media marketing?                   

Part 7: Yes, it IS about the money!                                                          

Part 8: Creating a measurement plan                                                     

Part 9: Measurement is like a bartender                               

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Tags: advertising, best practices, branding, business strategy, financial impact, marketing budget, marketing strategy, measurement, research, social media

Filed in Marketing best practices, ROI and measurement, business relationships, business strategy, marketing strategy, social media | markschaefer | Comments (10)

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  • Comment Of The Week

    From Rebel Brown
    "A List" bloggers are, well, bloggers. What A-list blogger would think they need a website? Probably as many as product companies think they need a blog : )

    Different audiences want different information. If I’m coming to a site to buy a product – I don’t want to read a blog about the state of the market. If I'm coming to Mark’s blog ... the last thing I want is to have him sell me some product.[more]

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    Dan Levine @schoolmarketer: I see this slightly different: Credit to the n...
    Gregory Stringer: @Mark, you've taught me 98% of what I know about t...
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  • Welcome to {grow}

    MARK W. SCHAEFER

    My PhotoYou’re in marketing for one reason: Grow.

    Grow your company, reputation, customers, impact, profits. Grow yourself. This is a community that will help. It will stretch your mind, connect you to fascinating people, and provide some fun along the way. I am so glad you’re here.

    -Mark

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