31 May 2011

Cheap social media makes marketers lazy

Just as I entered a meeting with a colleague and one of the founders of The Social Media Leadership Forum I happened up this article on the daily enews bulletin from Marketing Week.

Let me paraphrase the premise, junior marketers are over using social media because it is perceived as low cost and that finance managers care more about return on investment than cost and are by default encouraging this.
We kicked it around and although we had some sympathy for the sentiment, I don’t buy any of it.

So as the charge came from with our profession here is my response. The basis of successful marketing stands, and indeed underpins all successful campaigns. I.e. target messages of a well researched proposition at a target audience you understand and will perceive the value they can extract from your proposition - that it is greater than any alternative.

The channel we choose to use to deliver the messages is informed more by our knowledge of the customer not just the cost of delivering the message. Social, and digital media more generally, are just some of the possible channels. A practicing marketer that ignores all possible ways of effectively engaging their client is lazy full stop. Not just lazy because they are using social media at the expense of the alternatives/compliments.Just an aside to this, one of the largest growth areas for use of social media is a s a second screen to TV activity.

No longer do we have to wait until the next day to have a conversation beside the water cooler about what was on the box – we can share it with our network through Facebook and Twitter as it happens. Link this new trend of dual screens (the TV and your social media device) and we could see a major resurgence in big ticket above the line TV advertising. The pursuit of which is anything but lazy.

17 May 2011

Just because it's difficult, doesn't mean you shouldn't do it


A friend told me about an online industry community she had invested her firm's money and time in over the past year. She has worked hard to cajole her colleagues into producing blogs on their areas of expertise, take part in discussion threads and even post videos from conferences and C level executives.

In spite of this effort, she just couldn’t seem to get her business behind the channel. In particular, her firm consistently failed to input to the topics the community were most engaged about as effectively as her competitors.

Despite the success of her company’s competitors had shown in increased engagement and sales, despite the investment already made and the apparent opportunity the growing community presented; A committee of recently appointed managers cancelled the initiative's budget, because changing the way her organisation operated was seen to be 'just too hard.'

I learned early in my career as a marketing manager at one of the largest organisations in the world that just because something was hard to do, doesn’t mean you shouldn’t do it. This wasn’t the mantra of the business, but my line manager. A man in his late thirties that had risen rapidly to run a pan European US$200 million turnover division and was perceived by his peers to have the alchemist's touch. How had he done this, he changed the businesses he ran to be responsive to whatever clients valued. Even if that meant finding new ways of working.

So often in marketing we look to external solutions to achieve our commercial objectives. A different place to advertise, a new event, a bigger or better web site to push our products and services. When in fact, we should simply address the hardest challenge of them all first; Create an effective business that engages in and responds to what our communities are really interested in.

5 things to tell your colleagues that still don’t get social media

1/ It’s active, even if you’re not
Even if you or your business is not actively listening or engaging with your customers in social media, your business, product, industry, advocates, detractors are being talked about. My own firm is talked about with mainly positive and neutral sentiment hundreds of times a month on Twitter alone. Our products and industry is mentioned hundreds of times an hour.

2/ Social media is principally an online representation of what happens in the real world
In the real world we share news, photos of our children, birthday wishes and invitations, just as at work we invite clients to events, talk about products and share results. I appreciate that not everyone we work with has friends or anything interesting to say. For those that do, social media has proven itself as the easiest and most immediate way to share.

3/ What we do online stays online
I am not convinced privacy is dead, but the super injunction nonsense of the past few weeks illustrates that it is probably on its last legs. So be careful, by all means. Contrary to point 2, don’t do everything online that you would do offline, it sticks.


A large part of the success of Linked In is due to its online representation of our CVs (Resumes). Now it is a universal truth, not widely discussed, that everyone’s CVs contain a little fiction. Don’t fall into this trap, social media allows everything to be checked and verified.

4/ If you don’t engage in social media, your competitors will
Social media is by no means ubiquitous, certainly not in the developed world. But it will be. Orkut, a Facebook me too in Brazil has 84% penetration and continues to grow. Similarly renren and 51 in China, Vkontakte in Russia and Bharatstudent in India all have following on a scale that would dwarf the populations of some small European states.

Social media will become a default communications tool for most people under the age of 40 by the time the football World Cup reaches Russia in 2018, especially in the fastest growing economies with the youngest demographics such as the BRIC nations. Corporate websites will become increasingly obsolete as communities interested in a topic or product come together online, with or without your business.

Successful businesses are finding the communities that are interested in their solutions, and listen to the conversation before engaging.

5/ The big numbers aren’t the true story
Facebook is predicted to have a billion users by the end of 2012, and social media will reach 90% penetration of all internet users in 2013. By the summer of 2012, half of all mobile phone users in Europe will use smart phones. In the UK, nearly 26 million adults have Facebook accounts. Of all UK Facebook users, 50% are over 36.

However, the power of social media is isn’t in its scale alone, it is in the quality everyone’s connections. People for time in memorial have asked people they trust before making a purchase, and social media has accelerated this. Amazon understands it, and the travel industry is coming to grips with it through Trip Advisor. Havas Media’s research in 2010 found 62% of UK shoppers consult online communities before buying and 34% have looked at an online review at least once before making a purchase.

Which takes us nicely back to point 1. Social media is active, even if you are not.

09 May 2011

Get off my business case


Continuation of my look below the surface on B2B social media…


Let’s kick off with some controversy ;-).


I am a ‘value based’ marketer. In fact, it was reading Peter Doyle’s book of the same title when I was studying my Post Graduate Diploma in Marketing that I decided that I needed to go further and get an MBA so that I could one day influence a whole organisation to the concept. (Even Kotler said the book could spark Mareting revolution).


If you are new to the approach, I recommend you look into how it can work for you. In the meantime, value based marketing is based on delivering shareholder value (in the form of return on investment/equity) based on delivering greater value to your customers (according to what they are prepared to pay) relative to your competition. There are countless examples of business that have consistently achieved this, First Direct Bank, Apple, Volkswagen and Starbucks.


So by extension, the concept goes that every marketing activity should be measured and reported in terms of shareholder value. Now as I said, I am a value based marketer, I think linking the sum of all marketing activity to shareholders returns is absolutely the right way to go. It drives the correct behaviours in the marketing function and delivers the right outcomes for the businesses ultimate owners.


However, I have had more than my fair share of exposure to management accounting at under grad, through my MBA, and from some very real experience at Honeywell. I draw the line at the minutiae of job costing including every single overhead. Firstly, because the calculation enters the realm of diminishing returns, secondly, because I don’t think the calculation adds any insight to the marketing led management decisions, and thirdly because it’s a faff.


So where’s the controversy? Well, having established I am not going to, and nor would advocate you should, measure the value of every single marketing activity, I recommend you don’t get drawn on applying some different set of metrics to social media. Yes it’s new, yes it may need an additional FTE to monitor pages or shepherd content, but that’s a marketing exec, not an administrator. A marketing exec should be adding value to every administrative task, and aligning those tasks to shareholder value (through adding value to clients).


We can’t realistically track any sale to a single brochure, single exhibition stand or video blog on our web site. It’s not even just down to the tender document we responded to. It is the sum of all these activities integrated to tell a single story that offers greater value to the client, relative to the cost of purchase and what our competitors offer.


I discussed this at the Finextra conference with another delegate from a Bank, they told me they did measure the value f every single activity, whether that be a stand at an event for thousands or an intimate event for a handful of clients, but they couldn’t tell me how they linked a sale to a specific marketing interaction, or be precise about how may pounds of revenue were returned for every pond of marketing expenditure. But they did have 3 people dedicated to generating spurious metrics that strangely enough, they always exceeded.


If you disagree, I would like to hear from you. As a committed value based marketer, I remain open to resolving this. But in the meantime, the case for B2B social media remains as and increasingly essential tool to support business developers broaden and deepen their relationships to sell more, whatever you produce. And how to measure how successful you are that? I think they call that dividends, or in other words, shareholder value…

01 May 2011

The Modern Brand Britain.


Friday 29th April was the peak of my patriotism to date. I didn’t think it would go beyond the high it experienced while I was living in the States when England won the ashes, the whole country was celebrating the bicentenary of Nelson’s victory at Trafalgar and CNN’s lead story one weekend was Routemaster buses leaving the streets of London.

Not only were 2 billion people around the world sharing the Royal Wedding experience through their TV sets, but anti monarchist parties took place across the UK. My closest friend attended one in Brighton, and some 2,000 people attended a party in London’s Red Lion Square. How many states and communities around the globe can point to such a degree of tolerance where the majority of people share in the personal delight of the Windsor family wedding, while simultaneously having celebrations of an eventual downfall of the British Monarchy. We even tolerated small Muslim protests around the UK who chose to burn the Union Flag and effigies of the happy couple.

The brand values of Britain we should be most proud of and promote to every corner of the globe were all on show. Not just the pageantry first choreographed for Queen Victoria, the use of old British brand icons like a 1960’s Aston Martin for the escape from the main wedding party, or the limos ferrying guests built by Rolls Royce when the company wasn’t owned by a German manufacturer whose brand is associated with building Hitler’s dream of automotive manufacturing. Britain’s brand is of a people coming together to celebrate as one, regardless of whether they agree with the premise of the celebration.

The UK is a nation that wears its diversity for everyone to see, that mocks our differences but understands inherently; it is these differences that make us special.

And let’s not underestimate the power of our brand. Quite deliberately I have followed the build up to the Royal Wedding through the foreign media. My family were among the 25% of Britons that followed the event live using a medium other than the BBC, through CNN in fact. We were all struck by how this little overcrowded island just off the north coast of Europe, with its own currency and transient climate, has held the headlines of newspapers, magazines and news channels across the world. Al Jazeera, France 24, CNBC, Bloomberg, Fox, Russia Today all had special programmes on the satellite feed I had access too. Nearly all of them invested US $200k in a special studio over looking Buckingham Palace, flying in high profile anchors.

We have a brand that it is almost unique to us, not just based on the tradition of monarchy and social order; but of diversity and harmony. A brand the world values and indeed needs. A brand that we can still command interest in.

That’s why I was proud to be British on the day of the Royal Wedding in London on 29th April 2011, and would fight to retain the monarch
y.