From the category archives:

Community Marketing

Following on from the the many articles written about the UK riots and social media’s involvement, I felt compelled to share an article about my understanding of the cause and effect that lead to the UK riots.

Looking back I hope that anyone searching for information about social media in association with the UK riots will read the text below and thus have a better understanding of events proceeding.  Yes, social media was used during the riots both for good and bad, but to lay the blame at technology and Generation Y is incredibly short sighted and to not understand the wider context.

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WE are all being told by the political classes and select media that the rioting in the UK we have seen is mindless criminal activity– opportunistic stealing.

But what should WE expect – what example is being set by the politicians and public figures.

The riots started in Tottenham, scene of a most brutal riot during the recession of the 1980s during Margaret Thatcher’s premiership.

For the past thirty years we have been governed by the children of Margaret Thatcher – she was Tony Blair’s hero – she and Tony Blair are David Cameron’s heroes.

Remember Margaret Thatcher’s quote “There is no such thing as society. There are individual men and women, and there are families. -people must look to themselves first. It’s our duty to look after ourselves.”

And so that is what they have been doing ever since – looking after themselves.

We have bankers who have taken taxpayers money – OUR money and plunged the world into the worst financial crisis in the last eighty years. No political party has felt the need to challenge them or make them pay. These bankers are still being allowed to pay themselves fat bonuses out of OUR money, but the austerity measures with government spending cuts are targeted at US.

We have one individual banker, Sir Fred Goodwin, who as Chief Executive of Royal Bank of Scotland presided over the largest annual loss in UK corporate history. And yet he walked away with a pension of £703,000 per annum  paid by a nationalised bank, funded by US, the taxpayers. One year of his pension represents more than a lifetime of benefit payments for three people – yet it is the benefit claimants being targeted by the politicians as “scroungers”. So they have to be reclassified because WE are told by politicians that the government cannot afford to pay them.

We have politicians, who appear to be in politics for what they can get out of OUR money, paying their mortgages, paying their partners, buying private items, with the expenses that have been stolen from US, the taxpayers.

We have the forces of democracy itself that have been hijacked by a megalomaniac media organisation. Successive governments  have pandered to its demands and defended the rights of big business above the rights of US.

Even the rule of law has been hijacked by this same organisation with a revolving door between its offices and Scotland Yard.

We have had successive governments who have spent billions of OUR taxes on supposedly protecting the democratic rights and welfare of individuals in Afghanistan, Iraq and Libya but argue that the government cannot afford OUR welfare nor the resources of OUR police force to protect US.

As a result of successive government’s policy over the past thirty years we have the greatest social inequality in Europe – yet this current government is ignoring this and insisting on a crackdown on US through the welfare system and government induced unemployment whilst at the same time ignoring the tax avoidance schemes of their paymasters, the big corporations and non-domiciled high earners.

And don’t forget we now have Government Ministers and a Mayor of London who are no strangers to damaging property for their own amusement. Remember that as students, David Cameron, George Osborne and Boris Johnson were all members of the Bullingdon Club – proud of its reputation for trashing restaurants. Of course when well-to-do young students do this it can be called a “right of passage” or “student high jinks” but when WE indulge in this behaviour, it is called “criminal.”

When WE see all these suited gentlemen walking away with so much of OUR money. Or politicians buying private items out of OUR taxes or Government Ministers and Mayors who have trashed restaurants while they were receiving Student Grants paid out of OUR taxes then surely a pair of trainers from JD Sports is small beer by comparison.

Politicians of all parties should stop treating these riots as just mindless criminal activity and address the wider underlying problems of OUR poverty, OUR unemployment and OUR frustration with their lack of interest in US.

But, in the meantime WE should not forget “We are all in this together” as part of David Cameron’s “Big Society” and WE should set an example to THEM and therefore ‘Hug A Hoodie.’

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The following is taken from a key-note speech I delivered at B2B Marketing event in London on 18th November 2009. All slides were images so thought I’d share the script and will look to add v/o to slide deck on SlideShare shortly… please feel free to add your thoughts as this is a fast-growth area that is definitely one for discussion.

Introducing the social customer
We the customer have now evolved, we were never stupid, businesses just kept us that way. Social media powered by technology has enabled us to break free and provided us with a voice.

Previously businesses only managed the post-purchase relationship that was used largely for loyalty: to grow value of existing relationships (be that through spend or uptrading) or to reduce defection. Although designed to help drive conversion through the entire marketing cycle, It wasn’t as efficient to use pre-purchase in converting more leads to customers. In short, it had limited application to what was a largely linear process.

We have invested in ways not to engage with customers but keep the communication channels open through providing customer support centres, direct mail and e-mail newsletters.

Now that customers have access to social tools they are no longer just consumers they are also producers and can create video, blogs, use Twitter and connect with one another forming tribes.

Social shopping has brought immense change in how people short list, research and engage with products and services. We now have insight into what triggers and influences consideration and purchase actions and grow greater loyalty and value from it.

It’s not just purchase decisions that people are turning to digital for – they are increasingly turning to it when they have a customer service issue or complaint. If they cannot find the answer on your site they will turn to Google to seek out the problem and Twitter to bash the hell out of a company.

An example of the power of the social customer is Karl Havard’s experience with Aviva. In June 2009 Karl received a renewal notification for his motor insurance policy. Although Aleksandr the meerkat is very charming, Karl decided that for the sake of a few pounds he would stick with Aviva as he couldn’t be bothered with the hassle and all he needed to do was update his direct debit details - as Aleksandr would say ’simples’. So you would have thought!!
In Karl’s case to make a simple change to his direct debit bank details he was presented with a Mission Impossible. He found himself talking to voice recognition technology that had a hearing impediment; a call centre with people offering awkward silences and you have to check whether or not they are still there; 30 minutes plus of horrendous library hold music; and an online portal that presents him with “run time server errors” and when it did work….sent him back to the call centre. What is more interesting is that at this time Aviva’s marketing communications consisted of an ATL A-List celebrities focussed on individual care and attention!
So what did Karl do? Well he wrote a letter to the CEO of Aviva explaining the problem. That was not all, being digitally savvy he decided to share his bad experience by seeding this issue on his blog and embedded a copy of his letter within his post using slideshare for all to see. He also decided to tweet about this too and share his experience within customer service forums such as Plebble, customer communities and money saving expert. The result was that the letter on slideshare was picked up by Aviva and posted internally within their intranet, this then resulted in the issue being picked up by Sales and Marketing Director who personally contacted Karl to resolve the issue. The CEO of Aviva UK wrote a personal letter to Karl addressing the issue and many employees responded to his Twitter feed and blog post with comments to apologise. Furthermore the real damage is evident through searching ‘aviva customer service’ in google which now displays negative results that influence the contextual picture of the brand.

To respond to each customer as Aviva has done is definitely not cost effective. So how can we reduce cost, churn, develop new leads, maintain existing relationships using social media brand outposts and activities that may/may not be already in place?

This is where social CRM now can also play an important role…

Introducing social CRM
By definition, social CRM is understood as the integration of social media and CRM systems.

CRM in the social age becomes advantageous across the whole of marketing activity. It benefits from conversations prospective customers have through platforms and provides opportunities for authentic conversations.

CRM in the social age means building relationships much earlier in the traditional marketing cycle based on real-time value exchange with individuals and communities, converting more prospects to leads, more leads to customers.

It is vital to understand that social CRM should not exist as a silo but should be an integral part of social business.
If you want to be social you need to start with your customers and their conversations - simple.

I use Lithium as a great example of technology used to simplify this process by:
- Turning customers into problem solvers
- Sourcing new innovations and ideas from customers
- Generating word-of-mouth referrals from customers and generate support

I’ll provide you with some examples:
Promote - customers talking together about the products they want to buy on your site/community. The more enthusiastic customers are about your products and services the more you will sell. Reviews and recommendations are an example of this, and you can look to create a customer network around service.

Innovate - Intel connect this is a recent example. Apparently there are 15 billion devices connected to the internet of which Intel have a large share so they are looking for ways to best increase. This use of ideation is very similar to Starbucks and Dell Idea Storm but with Intel and they are looking to pay out for great ideas to get customers exchanging ideas on their behalf. If you’ve read Wikinomics, Don Tapscott provides more depth to the subject of crowd sourcing and co-creation.

Support - the most common use for social CRM. With traditional CRM it is very much focussed on internal processes. With social CRM it is focussed on external and social dynamics for example understanding user behaviour and why they would support users amongst the community for free.

Introducing the social business
Begin by building a vibrant customer community and then leverage the community to generate leads and ultimately transactions.
First step is to start off with social search engine optimisation looking for people based on what they search for, and social media monitoring to understand where to find people talking.

Look at Social SEO within the community as the more content you have within the community you need to ensure that it can easily be found through search.

Make sure that you build communities that dont exist in silos but that they can all collaborate and talk with one another.
Again great customer service starts with search. Your search within your site/community must return all results federated so that they do not have to search in multiple places.

With regard to management information, in practise you can monitor from a customer service point of view those problems asked, problems answered by existing content, resolved by community and resolved by agent. As the community evolves you should solve more problems with existing content thus increasing the return on investment.

To measure success of community you use metrics such as page views, posts, registrations, searches, new threads, accepted solutions, user sessions. Improvements can be made based on content, interaction, traffic, members and responsiveness.
The main question for marketers at the moment is how do I connect social web technologies to my own CRM? As social sites such as Twitter, Facebook and Communities scale in terms of positive network effects you cannot expect to have your employees watching this all this time.

You can use tools such as Lithium (I promise I’m not being paid by Lithium). They have technology that allows you to take a tweet and set it up as a thread within your own community to continue the conversation.
This technology taps into social behaviour aswWhen people use Twitter they want it to become a social response. A twitter user may not think that anyone is listening to their complaint, enquiry but instead they are alerted that their tweet is now visible and being listened to by a whole community so they should receive a response to their tweet.

You can then take that conversation which may be discussing purchasing a product or service and integrate it into your CRM system such as Salesforce or Microsoft Dynamics.

In summary you need to integrate your social media strategy to your CRM strategy to become a social business. You can listen, leverage brand outposts, engage, create conversation, manage reputations and build social media community through the use of technologies and then link this to your CRM strategy.

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Monitoring, listening and engaging with social media is a hot topic for brands with their ongoing quest to get closer to customers, build trusted relationships and extend their customer lifecycle. There is a conference for that which I would have liked to participate in: Monitoring Social Media
I personally have been involved in monitoring the social media sphere for clients at Headstream as part of the listen and engage methodology from the Social Media Strategic Framework.

From my own perspective what each audit has highlighted is not only the wealth of conversation taking place about individual brands within social media, especially on certain platforms; but the need for organisations to place more importance on customer service and online reputation management.
In short organisations looking to be more successful need to become customer centric and take into account the social consumer – pretty obvious. You can read my thoughts on social CRM and online reputation management.

Back to the post in hand… Today I received latest the research conducted by Harris Interactive and commissioned by Tealeaf that looks at the social customer and the powerful effect they have on a brand’s reputation. More specifically how customers respond to their experiences of online transactions. Do check out the slide deck and if you require further information visit http://www.tealeaf.com/harris-uk

The research was carried out amongst UK consumers who had participated in online transactions and those who had experienced online problems with transactions.

The findings for those who closely follow the social media world and indeed marketing in general are not ground breaking, but they further re-affirm the importance of digital marketing, social media marketing, online reputation management with regard to consumer purchasing decisions. I have extracted some of the key findings from the research below:

• When customers experience problems attempting to conduct an online transaction, 78% share their experience with others.
Furthermore 46% of those customers would then abandon a transaction entirely or switch to a competitor.
I am certain that you have witnessed many a tweet complaining about airline ticket bookings which is why in the UK profiles such as @easyjetCare exist to respond to customer issues. I do not need to mention @comcastcares or @zappos

• 51% state that social media has influenced their online transactions.
This finding further supports research from DEI Worldwide in 2008 that I have referenced within client presentations particularly for the consumer electronic and game verticals placing importance on search and social media.

• 74% said when they read a negative comment online, it influences their likelihood to do business with the company.
Would love to know what the sales figures were like around the @HabitatUK backlash which scattered across all social media. Out of curiosity it would be great to see if the figures underpin the above findings and understand brand perception through the Net Promoter Score (NPS).

• 52% used a particular website after reading good reviews.
Encouraging result that supports the need for brands to identify key influencers and form trusted relationships with them.

In summary the underlying message from the research is to monitor, react and respond. This focuses on listening to the conversation within social media, reacting to the conversation in the appropriate way through a considered response.

Going back to basics it makes perfect sense to actually sort out the website sales funnel and indentify where in the transaction the problem are occurring, usability testing would not go a miss.
This is also an opoprtunity to engage your community and get them to play their part in helping to contribute to research and development of new platforms. Without covering old ground Dell IdeaStorm exists for this very reason.

Essentially the research places the importance on digital reputation management for brands and looking toward a customer centric business model – cue the social business and more importantly the implementation of social CRM.

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The foundation of social media is conversations.  As a B2B marketer you should look toward social media, in particular communities as an opportunity to create dialogue between your organisation and customers.  

Marketing is, after all, about understanding and satisfying customer wants and needs.  What better way to do this than to provide your customers with a community where like-minded individuals can come together and interact with both the company and each other.  

Great organisations such as Dell, Oracle, IBM, already use communities as a channel to communicate with their customers on equal terms.  At the same time providing a collaborative work space where their clients can provide feedback and assist in the development of future products and services. 

Where to start?
Well I’m certainly not going to follow the tired formula of ‘build it and they will come.’  B2B marketing is all about initiating the program, pulling the strings and orchestrating the story so here is the best way of building a community for your company:

First, as with any plan you need to define your business objectives; do you want to co-create future products/services with your customers, build stronger relationships or identify current trends and understand how your products or services are used?  Next you can look at resources and what investment you can realistically dedicate to the community as time and effort play a large part in the success of a community.

The cost to develop a community can be minimal and can be launched immediately for free using tools such as Facebook brand pages or groups.  So, if budgets are tight or, you do not have time to wait for budgets to be signed off for a bespoke interface as part of your corporate website, you can start building your community immediately.

Create a stir
Having identified your objectives and platform you then need to target your key influencers; these will usually be the customers who provide regular feedback to your company via e-mail, surveys or have an active presence through blogs and will be willing to participate in a community.  Furthermore these key influencers will help you to build the community through dialogue with other members. 

Contact the key influencers via e-mail informing them about your new community and invite them to join first.  Seed content such as company information into the community to kick-start the conversation and educate the key influencers on how the dialogue should take shape.  When the community starts to buzz, use your CRM e-mail database to inform all your customers about the community and invite them to participate in the discussion.

Promote, promote, promote
Once the conversation is taking shape you still need to maintain the momentum.  To do this you can run promotions or competitions amongst the community.  Set up a tiered system whereby members are ranked or rewarded based upon their contribution to the community.  Make the recognitions public to encourage other members to follow suit.

If you gather real insight into emerging trends within your industry via the community why not write a report and issue a press release to raise awareness of the community’s value.  Through effective digital pr you can boost community activity whilst at the same time recruiting new members.

Integrate other business units
Your community should shape what your business will eventually become – open, honest and highly effective.  More importantly the community should be integrated with not just marketing but other strategic business units, for example: customer service/support, product development and finance, this is because all units can benefit from the knowledge, insight and collaboration of the community as they are all brand touch points.

Fundamentally history shows us that those businesses that go on to succeed and reap the benefits are authentic.  If you provide a platform where customers can share values with your company, meaningful conversations with different business units and interact with other community members then they are more likely to stay loyal to a brand.  We’re all well aware that it costs twice as much to acquire a new customer than to keep an existing customer.  A community based approach can help lower costs at the outset but when budgets are tight they may increase rewards when (if) success blossoms.

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One reason for this post is my discovery of a Twitter Directory Just Tweet It that was brought to my attention via Mashable.  Just Tweet It to me represents the traditional business directory used everyday by buyers and sellers.

I personally think that Twitter is displaying the fundamental market characteristics described by Doc Searls in Cluetrain Manifesto.  There is a tremendous amount of activity and noise, which to the outsider seems incredibly complex but niche conversations and transactions are taking place within networked markets.

You too may have experienced many Twitter consumers using the micro-blogging service as a tool to find out ‘if you know anyone who can re-design my blog?’, ‘do you know anyone who can create flash widgets?’.  
In direct response ’sellers’ of their services will reply to these tweets giving them a direct link to their website or similar (their market stall) whereby the ‘purchaser’ can look at the products and services. Once the preferred seller has been chosen a deal can be made and a business transaction will take place.  So are we experiencing here evidence of our return to bustling markets based on conversations where business takes place on a global scale?  

Perhaps the Twittertainers such as @Wossy become the entertainers of the old markets where we throw a tweet or two their way to interact with them and get some enjoyment from their replies as we travel through the marketplace, but the real business takes place amongst those who produce and develop products and services - the foundation of an economic system.

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