Over the course of the last few blogs I have documented my understanding of where social media arose from and what each one of the different sites does functionally. However, the end result of this blog is not to just say what many people already know. The point of this blog is to really understand, from a marketing standpoint, how to leverage this media outlet and why it needs to be on every one's marketing whiteboard. Consumer habits are rapidly changing, as I have mentioned many times before, and the business world must take heed in order to attract buyers. Today we will look at one company that is harnesses the power of social media, in hopes to show how this can benefit a company's bottom line.
I recently read an article from the Harvard Business Review supplied to me by an account rep for an Internet marketing firm. To get off topic, I love this approach from a sales person. She made it a point to educate me and give me the tools to better understand this tool. Reading that article and being fascinated by what it said is one of the main reasons I decided to start this blog. Ok back to the story now. The article was about Best Buy's CEO Brian Dunn, and how he has immersed himself and Best Buy in the social media phenomenon. This story was inspiring to me because a high level executive was going against the grain and taking a swim in uncharted waters. Since he started with the company in 1985 when it was a small fraction of the company it is today, he has been on top of all things tech. They were getting into e-commerce while everyone was saying it was the doom of brick and mortar stores. Looks like he made the right call. I am not going to give the complete story of his epiphany, but in my opinion he is a pioneer who understands consumer trends. Could this correlate to Best Buy's success over the years?
Let's take a look at what they are doing to leverage social media right now. As of March 2011, Best Buy's Facebook fan page has over 2.5 million fans, and growing consistently. The page has many many opportunities to engage the customers and create conversation, which is what the main goal of social media should be. If the sole purpose of a Facebook page is to sell sell sell, it will not be successful. This is, in my opinion, the reason for many in the corporate world to write off social media as a fad. Many cannot grasp a concept of not directly "selling" to customers on these sites. They sell, and they fail, and they speak poorly of this medium. Granted, Best Buy's page does have promotions, informing customers of upcoming specials and sales. In addition they have a area of the page called "Shop and Share." Yes, both of these are meant to sell, and that is ok. The main point is that, the main motive must be customer interaction and they do this well. Shop and Share allows the fan to click on a product, be it a new 3-D TV or new DVD, then start a conversation about the product and get real time reviews. This is a genius idea, and gives Best Buy an edge over competitors.
Another important aspect to a conversation on Facebook is that there will not always be agreements. If you want a customer to trust you, your organization must be transparent in the way it handles customer issues. The fact that Best Buy allows all comments to be posted by customers is key. Negative comments are not deleted, in fact quite the opposite is true. There is a team dedicated to responding to each post regarding a customer complaint or concern. From what I saw, the response time is quick and genuine. It would be a mistake for Best Buy, or any company, to not allow criticism. A company that cannot accept legitimate customer criticism will never change or evolve, therefore will ultimately fail. On the flip side, a company who truly listens to their customers will continue to expand and prosper. Social media gives companies the opportunity to interact with their customers, both happy and unhappy, to mold their brand or product into one that customers always want and buy. Engage that customer who has a complaint, talk to them, figure out why they are unhappy. Then look at your operation and tweak the process that is causing the issue. Granted, we cannot make every customer happy but it is our obligation to try.
Best Buy is also active on Twitter, both as Best Buy and as Brain Dunn's personal Twitter. I am not as impressed with their Twitter as I am with their Facebook. All I see on their twitter are "Hey come check us out" (I am paraphrasing of course). I would like to see something a little more than just current specials. I understand why they would do this, because for 175,000 people to see what your specials are twice a day keeps your presence top of mind. I understand this from an advertising perspective, but I don't want things like that clogging up my feed. Give me links to new emerging technology, how to use current technology to make life easier, etc. Tidbits like this give the company an edge because there customers are going to them for advice, so where do you think they will buy from?
Best Buy is one example of a company that leverages social media in their marketing portfolio. Next week I will outline steps a company can take to leverage social media EFFECTIVELY!
-Luke
Monday, March 7, 2011
Monday, February 28, 2011
Life As We Know It
Myspace, Faceook, Twitter, Foursquare, Friendster, Linkedin. You've heard of these sites right? You probably use a few of them on a day to day basis. Personally I have a Facebook account, a Twitter Account, a Linkedin profile, and I am getting into the fun of Foursquare. Many many moons ago (can be converted to 4-5 years approximately) I also had a Myspace page. The only one of these that I have not dabbled in is Friendster.
If you are not immersed in this online world yet you may wonder why the need for multiple accounts. To me, I liken it to why are there so many TV channels. The answer is simple when thought of in that respect. The different sites provide me with different benefits and values. I use each one for specific reasons, and I do not think one site can provide all of these values.
Facebook allows me to stay connected with friends by posting pictures, engaging in conversation, seeing conversations they are engaged in (not in a stalking manner), and see where their lives are taking them. As much as many of us will not admit it, Facebook also gives us a mile post for our own accomplishments. We can see what our peers are doing in their professional and personal lives if they choose to share. On the same hand, I can share my life with my chosen group of friends. I posted pictures of my wedding and our amazing honeymoon, allowing my friends to experience it through pictures. I share with them my thoughts of what success is, and my ambitions in my professional career. This is my trusted circle of friends, otherwise why would I share this information and experience?
Twitter and Foursquare are fun, and that is why I use them. Twitter allows you an outlet to be random, and express your thoughts as they come to you. This is not the place for a monologue or diatribe on how the price of milk is affecting your ability to feed your cat. You share with everyone who follows you and who you follow. Much less informal than Facebook. It is almost like a party, where you open up to complete strangers after a few drinks...Foursquare lets you announce to your friends where you are and what you are doing by checking into places. The creators of Foursquare are intelligent for making it into a game where you unlock badges throughout your journey. This gives people a reason to continue using it, which adds to the appeal for businesses (which we will get into later)
Linkedin is the professional social networking site aligning businesses with clients as well as providing an outlet for job recruitment. I love Linkedin and I think every professional should have a Linkedin profile if they want to compete in the coming years. LinkedIn gives you the opportunity to know your buyer's decision maker personally before you go into a presentation. How could you not want that information?
Now that you know what each one accomplishes on a social scale, lets look at what businesses can and have gained by entering this social media world. First let me say that I am not an expert in the field of marketing and I have not studied the data on forms of marketing in depth. I am simply and observer of consumer trends and trying to learn each day how to better serve and connect with them.
The benefits for companies to jump wholeheartedly into social media are endless. Two impact areas for any business are costs and sales. How can we the business community drive sales and reduce costs? The answer really is not difficult, however most marketing traditionalist do not want to admit it yet. I've briefly outlined the two below.
One can argue it is an inexpensive way to reach a large variety of current and potential customers. Anyone who has sat in on a sales pitch from a radio or cable rep knows the cost of those forms of marketing. Other forms of marketing for retail businesses include direct mailing, coupon books, and grassroots marketing (aka hustling). All of these include direct costs and more often than not, substantial costs. When thinking of ROI, or Return on Investment, do these forms of marketing become worth it? How can you measure what a $10,000 radio campaign brings you in new or repeat business? With a strong social media campaign a company does not have any direct costs, as all of the sites are free for everyone to use. Used correctly, this can be used as an online assault of your competition without breaking the bank. And guess what? You can talk to your customers about what is working!
Another benefit is customer relationship. If you walk up to your favorite store, restaurant, or bar and they know you by name and greet you it makes you want to come back right? Every business should make it their priority to develop relationships with their customers. Repeat business is the only sustainable business model, and it has to be cultivated. Traditional forms of marketing are not conversations, unless you consider conversations one way....yea me neither. Radio and cable only let you talk to your potential clients about YOU. It does not allow you to discuss what THEY want. What they want is the key to the magic equation. Social Media allows for this two way conversation to occur between the company and the customers. Each one learns about the other in a non-selling manner. Businesses build trust among their buying community and the sales roll in. How much less stress is it to talk to your friends than it is to a potential client. Win them over and the relationship lasts forever.
-Luke
Now that you know what each one accomplishes on a social scale, lets look at what businesses can and have gained by entering this social media world. First let me say that I am not an expert in the field of marketing and I have not studied the data on forms of marketing in depth. I am simply and observer of consumer trends and trying to learn each day how to better serve and connect with them.
The benefits for companies to jump wholeheartedly into social media are endless. Two impact areas for any business are costs and sales. How can we the business community drive sales and reduce costs? The answer really is not difficult, however most marketing traditionalist do not want to admit it yet. I've briefly outlined the two below.
One can argue it is an inexpensive way to reach a large variety of current and potential customers. Anyone who has sat in on a sales pitch from a radio or cable rep knows the cost of those forms of marketing. Other forms of marketing for retail businesses include direct mailing, coupon books, and grassroots marketing (aka hustling). All of these include direct costs and more often than not, substantial costs. When thinking of ROI, or Return on Investment, do these forms of marketing become worth it? How can you measure what a $10,000 radio campaign brings you in new or repeat business? With a strong social media campaign a company does not have any direct costs, as all of the sites are free for everyone to use. Used correctly, this can be used as an online assault of your competition without breaking the bank. And guess what? You can talk to your customers about what is working!
Another benefit is customer relationship. If you walk up to your favorite store, restaurant, or bar and they know you by name and greet you it makes you want to come back right? Every business should make it their priority to develop relationships with their customers. Repeat business is the only sustainable business model, and it has to be cultivated. Traditional forms of marketing are not conversations, unless you consider conversations one way....yea me neither. Radio and cable only let you talk to your potential clients about YOU. It does not allow you to discuss what THEY want. What they want is the key to the magic equation. Social Media allows for this two way conversation to occur between the company and the customers. Each one learns about the other in a non-selling manner. Businesses build trust among their buying community and the sales roll in. How much less stress is it to talk to your friends than it is to a potential client. Win them over and the relationship lasts forever.
-Luke
Monday, February 14, 2011
Family Tree
In order to fully understand where something is headed, I feel it is important to know where it came from. I think everyone nowadays knows something about "social media" or "social networking." Facebook, Myspace, Twitter are names that are thrown around everyday. We know what they are, and most of us use them almost religiously (well maybe not Myspace anymore). But where did they come from? Did they appear from thin air? Is it the social big bang theory? Poof! There it is and here it will be? Or is it something that has evolved over time into what we know today?
Over the past week I have researched the history of social media and took an in depth look at where this phenomenon arose from. By no means do I consider myself and expert on the technology behind this or the progression, but it has given me a greater understanding and that is the goal of this blog. I will outline the timeline and touch on some key points that have lead to social media as we know it today. I will also chime in on where business and companies began to tap into this expansive resource.
Social media is an invention that came about the way scores of other inventions come about, it filled a need. There are a lot of inventions and practices that are far off ancestors of social media but to me there is one that exemplifies a solid start to what we know today. In 1978 computer hobbyist by the name of Ward Christensen and Randy Suess developed the Computerized Bulletin Board System, CBBS or BBS for short. Designed after the cork bulletin board commonly found in offices allowed people to communicate and stay in the loop from their computers. Users logged in to share or view "bulletin" messages or even play games. The technology behind it is out of my realm of knowledge, so I will not attempt to explain, but the impact of this invention is monumental. Many forums and social networking sites do the exact same thing as these BBS's did, just on a much larger scale. These BBS's stayed hot until the mid 1990's when the rise of the World Wide Web began to dominate the tech world. There was not much of a corporate influence with BBS, if any at all. These were run by hobbyists for hobbyist, and were largely local (due to dial up and long distance rates). The importance of this technology cannot be understated when moving forward.
Fast forward to the mid to late 90s. The Internet and World Wide Web has opened up the world to our fingertips. The Internet forever changed the way we live our lives in many many ways, and further progressed social media. I could go on forever the impact the Internet has had on business, but we are sticking to social media so let's keep moving!
In 1994 GeoCities was introduced as BHI or Beverage Hills Internet. It was designed around "neighborhoods" where users would create their profiles by determining which neighborhood they wanted to belong to. Users were called Homesteaders and by late 1995 there were 14 neighborhoods, upon when it changed its name officially to GeoCities. GeoCities continued to grow, and in 1997 social media and business began their courtship when GeoCities introduced advertisements on user pages. Eventually the company went public, with shares rising to upwards of $100. While GeoCities popularity declined over subsequent years (leading to closure in 2009) at its peak it was the third most visited site on the Internet behind AOL and Yahoo. To me, GeoCities was important because the corporate world began to notice the influence a social networking site could have (why else would google buy for $3.57 Billion?).
AOL blasted the world with Instant Messaging in 1997. Nuff said
Keep trotting forward to the end of the century...towards the dot com bubble.
Whewww, not that is past us..lets get to the good stuff! 2002, Friendster gains 3 million users in the first three months by pioneering connecting real friends to each other. 2003 comes Myspace, Facebook debut's in 2004, and Twitter in 2006. Also during this time period Linkedin, Foursquare, Photobuck, Flickr. These are just a few examples of the sites that began sprouting up during this time period. These sites garnered mainstream and corporate attentions. The social impact of these sites is huge, but the most fascinating aspect of these sites is the impact it can have on the way businesses become part of a person's inner circle of friends. Think about the impact it can have on a companies bottom line if their customers look to them as "friends". Your friends are who you turn to for advice; your friends want what is best for you, and held guide you.
There are many companies who are still behind the times on this. It is not a fad, it is not going away. It will only grow and become more a part of our lives. My grandmother has a Facebook for goodness sake! We want to be connected to these people and we want to connect to more people of similar interests. Companies can gain a tremendous following by effectively leveraging social media and becoming part of the in crowd with their customers.
Next week I am going to look at post 2000 when the influx of mainstream sites took the online social world by storm. Facebook, Myspace, Friendster, etc will be covered and what businesses jumped on it right away.
Stay tuned...
Over the past week I have researched the history of social media and took an in depth look at where this phenomenon arose from. By no means do I consider myself and expert on the technology behind this or the progression, but it has given me a greater understanding and that is the goal of this blog. I will outline the timeline and touch on some key points that have lead to social media as we know it today. I will also chime in on where business and companies began to tap into this expansive resource.
Social media is an invention that came about the way scores of other inventions come about, it filled a need. There are a lot of inventions and practices that are far off ancestors of social media but to me there is one that exemplifies a solid start to what we know today. In 1978 computer hobbyist by the name of Ward Christensen and Randy Suess developed the Computerized Bulletin Board System, CBBS or BBS for short. Designed after the cork bulletin board commonly found in offices allowed people to communicate and stay in the loop from their computers. Users logged in to share or view "bulletin" messages or even play games. The technology behind it is out of my realm of knowledge, so I will not attempt to explain, but the impact of this invention is monumental. Many forums and social networking sites do the exact same thing as these BBS's did, just on a much larger scale. These BBS's stayed hot until the mid 1990's when the rise of the World Wide Web began to dominate the tech world. There was not much of a corporate influence with BBS, if any at all. These were run by hobbyists for hobbyist, and were largely local (due to dial up and long distance rates). The importance of this technology cannot be understated when moving forward.
Fast forward to the mid to late 90s. The Internet and World Wide Web has opened up the world to our fingertips. The Internet forever changed the way we live our lives in many many ways, and further progressed social media. I could go on forever the impact the Internet has had on business, but we are sticking to social media so let's keep moving!
In 1994 GeoCities was introduced as BHI or Beverage Hills Internet. It was designed around "neighborhoods" where users would create their profiles by determining which neighborhood they wanted to belong to. Users were called Homesteaders and by late 1995 there were 14 neighborhoods, upon when it changed its name officially to GeoCities. GeoCities continued to grow, and in 1997 social media and business began their courtship when GeoCities introduced advertisements on user pages. Eventually the company went public, with shares rising to upwards of $100. While GeoCities popularity declined over subsequent years (leading to closure in 2009) at its peak it was the third most visited site on the Internet behind AOL and Yahoo. To me, GeoCities was important because the corporate world began to notice the influence a social networking site could have (why else would google buy for $3.57 Billion?).
AOL blasted the world with Instant Messaging in 1997. Nuff said
Keep trotting forward to the end of the century...towards the dot com bubble.
Whewww, not that is past us..lets get to the good stuff! 2002, Friendster gains 3 million users in the first three months by pioneering connecting real friends to each other. 2003 comes Myspace, Facebook debut's in 2004, and Twitter in 2006. Also during this time period Linkedin, Foursquare, Photobuck, Flickr. These are just a few examples of the sites that began sprouting up during this time period. These sites garnered mainstream and corporate attentions. The social impact of these sites is huge, but the most fascinating aspect of these sites is the impact it can have on the way businesses become part of a person's inner circle of friends. Think about the impact it can have on a companies bottom line if their customers look to them as "friends". Your friends are who you turn to for advice; your friends want what is best for you, and held guide you.
There are many companies who are still behind the times on this. It is not a fad, it is not going away. It will only grow and become more a part of our lives. My grandmother has a Facebook for goodness sake! We want to be connected to these people and we want to connect to more people of similar interests. Companies can gain a tremendous following by effectively leveraging social media and becoming part of the in crowd with their customers.
Next week I am going to look at post 2000 when the influx of mainstream sites took the online social world by storm. Facebook, Myspace, Friendster, etc will be covered and what businesses jumped on it right away.
Stay tuned...
Sunday, February 6, 2011
It Starts Today...
As someone who works in the retail/entertainment/needs-consumers industry, I have become increasingly fascinated with how companies and brands can engage their customers. It is with this thirst for understanding that I have created this blog. It will be a documentation of my journey into the inner sanctum of the consuming public, into the circles from which you and myself develop our brand loyalties. My journey begins today...
Before you follow me through the woods of "marketing darkness", wade across rivers of distractions, and over the mountain ridges of truth let me tell you a little bit about me.
I live in Virginia Beach, VA with my beautiful wife and two dogs, Diesel and Lilly-both dacshounds. I am the General Manger of a retail-ish establishment. I use the ish, because we are difficult to classify, as we are not your traditional tangible goods store. We offer more of an entertainment experience. That is beside the point. I love to learn about things that I do not know, so my quest for knowledge is ever-expanding. I fully buy into the notion that if you are not learning something new every day, then you are falling behind your professional (both inter-office and industry) competitors.
It is through my professional endeavors that I have noticed consumer's buying habits change, including my own. Before I go to a restaurant, I Google it on my iPhone or Macbook. I read reviews or check blogs. If there is something that turns me off in that review, I look for somewhere else to go. I look at Facebook to see if there are any events going on, or any other cool happenings around the area. What am I doing when this happens? I don't know these people who write the reviews, just like I don't know the actor on the company's commercial. Why do I trust this person to help formulate my decision? What factors lead to that? What mediums and channels am I using to find this information? Where is the movement heading?
These questions, among many others I will answer. Times have changed and are changing every day. It does not need to be a terrifying shift for business, but an exciting one. One about establishing relationships with your customers, and engaging them for a mutually satisfying experience.
Ok, now we are ready to embark. If you understand that this IS where branding and consumer decision making is heading, please follow along and feel free to offer your own views. If you are still in denial and think you will grow your business relying soley on traditional forms of marketing...you will figure it out eventually-but your competition will be miles ahead of you.
Before you follow me through the woods of "marketing darkness", wade across rivers of distractions, and over the mountain ridges of truth let me tell you a little bit about me.
I live in Virginia Beach, VA with my beautiful wife and two dogs, Diesel and Lilly-both dacshounds. I am the General Manger of a retail-ish establishment. I use the ish, because we are difficult to classify, as we are not your traditional tangible goods store. We offer more of an entertainment experience. That is beside the point. I love to learn about things that I do not know, so my quest for knowledge is ever-expanding. I fully buy into the notion that if you are not learning something new every day, then you are falling behind your professional (both inter-office and industry) competitors.
It is through my professional endeavors that I have noticed consumer's buying habits change, including my own. Before I go to a restaurant, I Google it on my iPhone or Macbook. I read reviews or check blogs. If there is something that turns me off in that review, I look for somewhere else to go. I look at Facebook to see if there are any events going on, or any other cool happenings around the area. What am I doing when this happens? I don't know these people who write the reviews, just like I don't know the actor on the company's commercial. Why do I trust this person to help formulate my decision? What factors lead to that? What mediums and channels am I using to find this information? Where is the movement heading?
These questions, among many others I will answer. Times have changed and are changing every day. It does not need to be a terrifying shift for business, but an exciting one. One about establishing relationships with your customers, and engaging them for a mutually satisfying experience.
Ok, now we are ready to embark. If you understand that this IS where branding and consumer decision making is heading, please follow along and feel free to offer your own views. If you are still in denial and think you will grow your business relying soley on traditional forms of marketing...you will figure it out eventually-but your competition will be miles ahead of you.
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