Thoughts on ROI and social media

: Image via CrunchBase

A prospective client asked me this yesterday: “I read through it [referring to this post] and was looking for how it translates into measurable business benefits such as client satisfaction, increased inside sales, increased referrals, etc – can you point me to any of these indicators with regard to this AGCO initiative?”

As I ponder how to respond, I’m considering these words of wisdom from Mitch Joel on the topic of social media ROI…

“How do you measure success? If this were a high school cheer, it would probably end in: “R-O-I!”

Ahh, the elusive ROI is Social Media. If yesterday’s Blog post (Social Media Gurus – That Old Chestnut) didn’t provoke some thought and commentary, then trying to crack the elusive Social Media ROI will surely get your noodle boiling. Richard Binhammer (from Dell’s Social Media team) gave a private presentation yesterday and when one of the audience members asked about how Dell measures the ROI of their Social Media strategy, Binhammer responded that ROI was nothing more than an accounting term and probably has little to no place when it comes to measuring the success of any Social Media marketing initiative.

How would that make your clients, team members and supervisors feel?

Pushing Binhammer’s comments further, he also said that if you’re looking for the ROI in the campaign, you’ll probably spend too much time, budget and energy just trying to figure out what your definition of ROI is, and concluded by saying that he doesn’t think about ROI, rather he looks at the overall business objectives and if Social Media can help him meet those objectives, then that is what is ultimately the most important thing.

Let’s repeat: forget the ROI and look at the business objectives.

In looking at business through this prism, Dell has changed the way they do business and – in doing so – they have made lots of money by being engaged and using everything Social Media that is under the sun. In a more primal way, they’re focused on using Social Media to meet practical business objectives and not looking at the overall ROI. In thinking about Social Media and how it can help in overall business objectives, it does make things a lot easier to swallow.” Source: Killing ROI | Six Pixels of Separation – Marketing and Communications Blog – By Mitch Joel at Twist Image

Binnhammer’s perspective means alot as Dell is one of the few major brands that are thriving in a down economy. Coincidentally, they are ranked #2 for ‘deep brand engagement’ amongst the 100 most valuable brands as ranked by the ENGAGEMENTdb study which concludes that ‘deep brand engagement correlates with financial performance’…

Relative to AGCO, do I have data that shows that a customer purchased a new combine as a direct result of a video we posted to YouTube? Hardly. What we do see at AGCO is this: Stock has risen since the time AGCO actively engaged in social media…

“SmarTrend identified an Uptrend for AGCO (NYSE:AGCO) on October 27, 2009 at $29.61. In approximately 3 months, AGCO has returned 9.1% as of today’s recent price of $32.31.

AGCO is currently above its 50-day moving average of $31.71 and above its 200-day moving average of $29.11. Look for these moving averages to climb to confirm the company’s upward momentum.

SmarTrend will continue to scan these moving averages and a number of other proprietary indicators for any shifts in the trajectory of AGCO shares.” Source: AGCO Upward Momentum Looks to Continue (AGCO) – Comtex SmarTrend Alert

Is there any other more important measurement?

I don’t claim for one minute that AGCO’s momentum is due entirely to social media. I do claim that it has a lot to do with the social media ‘state of mind’. Snap! I went there, as my teenage son would say. What I mean is this. When business results start going south, someone within the organization will usually say ‘we need to return to the ‘blocking and tackling’ [or fundamentals or get back to basics] of our business. One of the fundamental disciplines of social media is listening to what the internet as a whole and customers in particular are saying — the most fundamental of all business fundamentals and the first thing that successful companies have historically stopped doing!

More to come…

January 30, 2010 0

Damn, we’re good!

I’m a little bit torn between two conflicting philosophies of self-promotion here. Woody Hayes always said “when you get to the endzone, act like you belong there”. On the other hand, it’s a sad dog that can’t wag his own tail, so please forgive a little tail wagging on my part…

Earlier this week, I posted about the work we’re doing with farm implement manufacturer AGCO. Yesterday Wunderkind Public Relations of Atlanta said that while “Georgia’s top public and private companies scored a D for social media engagement in 2009”, e1evation’s client AGCO was one of only four brands in the state singled out for their excellence in the social media space…

“Four Georgia companies received perfect scores: AGCO Corp., the Coca-Cola Company, Delta Airlines, and Infor Global Solutions. These companies utilize a variety of channels to create an interactive dialogue with customers, prospects and employees. On the other hand, thirty-one companies received a score of 2 or less, and all but one company is using some channel of social media. Data also concluded that public companies as a whole, whether B2C or B2B, are more engaged (2.36) than private companies (1.92).” Source: New Research Reveals Georgia Companies Lack Social Media Engagement — ATLANTA, Jan. 28 /PRNewswire/

Now I’m sure there are a lot of great social media consultants in Georgia, but when AGCO needed a social media plan, they turned to the e1evation/Envano team from Northeast Wisconsin. As AgWired reported…

“One of the recommendations Sue makes is to not be afraid to get started with social media. She says that there are some great consultants out there who can help you too. I’ll use this opportunity to make a little plug for Todd Lohenry with e1evation, Inc. [sic] who has worked with AGCO.” Source: AgWired » Blog Archives » AGCO Shows How To Go Social

The e1evation/Envano team offers a unique combination of expertise and value and we’re just down the road. Comment, call or contact us to talk about how we can help you bridge the social media gap in your firm…

January 28, 2010 0

Afraid of making mistakes online?

Get over it!

“Risk aversion is the number one reason that people and organizations fail to tap the full power of social media. People often tell me that they can’t afford to make a mistake online, because any error will be just one Google search away for anyone to see, forever.

Unless you’re prepared to risk the occasional mistake, however, you’ll never do anything interesting enough to earn real attention or foster real conversation. Even more crucially, you’ll never develop the social media fluency that comes from making, and then learning from, your own mistakes.

Of course, it’s hard to embrace the upside of online mistakes in a culture that avoids admitting failure, on- or offline. So let me do my part to chip away at the fear of failure by sharing four of my own cringeworthy social media moments. Here they are.” Learning from My Online Mistakes – The Conversation – Harvard Business Review

If you’d like to read more about Alexandra Samuel’s online boo boo’s go to the source — if you’d like to make some of your own, contact me! I can help you get over it… ;-)

January 22, 2010 0

Are location-based services overrated?

: Image via CrunchBase

Please consider this…

“Despite the buzz around location-based services, I have been ambivalent, if not skeptical about the technology.As much as social media has encouraged people to share information, I have not been convinced there is the same amount of enthusiasm for broadcasting your location.There’s the issue of privacy, as well as few “rewards” for telling the world your location.

In many respects, however, being unconvinced about the potential of location-based services has been like a Don Quixote-like experience, particularly when you’re an enthusiastic member of the social media community. The idea that you don’t really buy into the next new thing seems almost sacrosanct.

It was interesting and, to be honest, encouraging to read Joshua Brustein’s column in yesterday’s New York Times about whether the excitement surrounding location-based services is being driven by technology companies and investors, while consumers only seem modestly interested.

Brustein’s column came on the heels of a Pew Internet and American Life Project survey that discovered only 4% of Americans use location services like Foursquare and Gowalla, compared with 5% last May. Even among smartphone-toting 18 to 29-year-olds, only 8% use location-based services.

It may just be that location-based services won’t be widely embraced. Or it could be that location-based services have yet to find their sweet spot. However you want to explain it, the reality is location-based services have failed to live up to lofty expectations as social media’s next hot thing.

Perhaps Facebook’s entry into the market will change things, particularly if consumers are attracted to the link between the company’s Places and Deals services.

Or maybe not. It could be that most people have no use for location-based services despite the best efforts of companies and investors.

After all, you can lead a horse to water but you can’t make him drink” Source: Do Consumers Really Want Location-based Services? | Social Media Today

When I teach ‘curation’ as a form of blogging, I usually say that the author’s comment can be ‘yes, no or maybe so’. In this case, my response is a ‘maybe so’, but I’m leaning toward no. Let me tell you why…

Something like 87% of Americans have cell phones. Of that, 25% have smartphones. That number is projected to grow to 50% in 2011. The default mapping application on the two fastest growing platforms is Google Maps. Google just released a new product called Hotpot that makes it easy for patrons to write reviews directly on to Google Maps. Think about the implications. Say someone’s driving through Algoma, WI on their way to Door County and they’re looking for a place to grab a bite. They check Google Maps to see the options and as they try to decide, they check the reviews from Hotpot directly on Google Maps. Unfortunately, earlier that week someone had a rare bad experience at one of their choices. Do you think that won’t have an impact?

Michael Moon quoted Peter Drucker astutely in his book ‘Firebrands’ over a decade ago when he said that we’ve moved beyond the information age to the aged of ‘trusted relationships’. I believe that tech-savvy people with smartphones are going to change the face of American retail business by holding retailers accountable through mobile tools that allow them to report good or bad experiences immediately as they happen. These ‘trusted’ mobile ‘relationships’ will have the power to guide purchasing decisions at the mobile ‘point of sale’ like an endcap in a grocery store, directing potential customers to the ‘right’ place. Smart business owners will keep an eye on this trend…

Shoppers Turn to Location-Based Services for the Holidays [STATS] (mashable.com)
Google Unveils Hotpot, a Recommendation Engine for Places (mashable.com)
Location Based Services ready to check-in in Asia [TNW Asia] (thenextweb.com)
Gimmicks Won’t Cut It For Location Base Services (webguild.org)
2010 Mashable Awards Winners: Foursquare = Best Location-Based Service (e1evation.com)

January 21, 2010 0

Social media fairy tails

: Image by Getty Images via Daylife

Great stuff from patgermelman’s blog…

“There are social media formulas that you can pick and choose from and adapt to fit your schedule, staff, and resources. There’s a virtual candy store of platforms and options. Here’s the secret…they all take work. There are no silver bullets. If someone claims to have all the answers they most assuredly don’t. If you get help from an expert and something doesn’t sound right, then it isn’t. You know your organization better than social media experts and any plan can be tweaked and adjusted to fit your organizational needs.” Source: patgermelman: Social Media Fairy Tales

The rest of the content is equally compelling! Go to the source for the rest of the article. btw, who’s the guy in the picture? Why did I use him?

January 17, 2010 2

Websites and social media

: Image via CrunchBase

I’m fond of saying “the answer is rarely either/or but frequently both/and”. Mitch Joel talks about the roles and relationships of websites and social media and how the answer may be both/and…

“There are two schools of thought when it comes to marketing brands online and the presence they need.

1. Build a website that houses everything – all of your text, images, audio and video – in one, centralized, location.
2. Use the existing platforms and build your presence within their community (Facebook, YouTube, Twitter, etc…).

Both have merit, and you can also do a little bit of both. For example you can house all of your branded content in your own website, and use the existing online communities to set-up outposts (as Chris Brogan calls them) – a specific Facebook Fan Page or a YouTube Channel – to further promote what you’re about with strong links back to your mothership (or website). You can also use a Facebook Page as your home base and direct people to a microsite for more information or to gather more data from them than Facebook might allow based on their terms of service. Personally, I advocate for owning your own space, building it and nurturing it and using those other/existing platforms to promote or extend the brand. Brands should own their content, community and type of conversation and not be beholden to the terms of service or whims of someone else.” Source: What A Website Will Be… And Never Be | Six Pixels of Separation – Marketing and Communications Blog – By Mitch Joel at Twist Image

This blog is a great example [in my humble opinion] of both/and. Both/and, however, does not have to take a lot of extra time. It’s easy to connect your social media outposts to your website for maximum effectiveness and traffic. Call, comment or contact — I’d love to connect with you around ‘how’…

30 second book review – Six Pixels of Separation (kevinsgreatadventure.blogspot.com)
There’s no silver bullet for the big, bad social media measurement wolf (threeminds.organic.com)

January 8, 2010 0

Lately I’ve been struggling…

…with the issue of what is the best way to graphically depict the relationship between the various social media tools that I use. I think I may just end up settling with a flow chart for now, however, I’m finding some interesting stuff along the way such as this…

Social Media Maps http://d1.scribdassets.com/ScribdViewer.swf?document_id=7844566&access_key=key-z5qwnajvjmgme3qdouq&page=1&version=1&viewMode=slideshow

December 20, 2009 0

Social web involvement around the world…

Hmmm. Interesting…

http://viewer.docstoc.com/v2/

Global Map of Social Media – December 2009 –

December 19, 2009 0

The intangible benefits of blogging

“Search for the term benefits of blogging and you’ll probably find hundreds and thousands of blog posts and pages waxing eloquent about the great benefits of blogging and I totally believe in most of the stuff. Blogging has so many benefits that it is simply outrageous not to have a blog, especially if you run an online business…

Blogging has both tangible and intangible benefits. Since you’ll find tangible benefits of blogging almost everywhere, in this post I’m going to talk about the intangible benefits of blogging: benefits that are there but you cannot see them, you cannot measure them, and they may not even manifest an effect that you can observe.” Click the here to read more…

December 17, 2009 0

define:brand

I got this from Seth Godin who got it from the Google dictionary…

“A brand is the set of expectations, memories, stories and relationships that, taken together, account for a consumer’s decision to choose one product or service over another. If the consumer (whether it’s a business, a buyer, a voter or a donor) doesn’t pay a premium, make a selection or spread the word, then no brand value exists for that consumer.

A brand’s value is merely the sum total of how much extra people will pay, or how often they choose, the expectations, memories, stories and relationships of one brand over the alternatives.

A brand used to be something else. It used to be a logo or a design or a wrapper. Today, that’s a shadow of the brand, something that might mark the brand’s existence. But just as it takes more than a hat to be a cowboy, it takes more than a designer prattling on about texture to make a brand. If you’ve never heard of it, if you wouldn’t choose it, if you don’t recommend it, then there is no brand, at least not for you.

If you hear a designer say this, “A TCHO Chocolate bar, with its algorithmic guilloche patterns, looks like a modern form of currency. “Modern” was always part of the brand brief — no faux traditionalism, but resolutely forward-looking for a new generation of chocolate enthusiasts…” then I wonder if there’s a vocabulary disconnect.

Design is essential but design is not brand.

(Believe it or not, I didn’t make that quote up).

PS a Google tip: you can find the definition of any word by typing “define:” followed by the word into your search box.” Source: Seth’s Blog: define: Brand

This goes hand in hand with the earlier post I did about Facebook pages…

December 13, 2009 0

Strategy vs. tactics in social media…

Seth Godin on strategy vs. tactics…

New media creates a blizzard of tactical opportunities for marketers, and many of them cost nothing but time, which means you don’t need as much approval and support to launch them.

As a result, marketers are like kids at Rita‘s candy shoppe, gazing at all the pretty opportunities.

Most of us are afraid of strategy, because we don’t feel confident outlining one unless we’re sure it’s going to work. And the ‘work’ part is all tactical, so we focus on that. (Tactics are easy to outline, because we say, “I’m going to post this.” If we post it, we succeed. Strategy is scary to outline, because we describe results, not actions, and that means opportunity for failure.)

“Building a permission asset so we can grow our influence with our best customers over time” is a strategy. Using email, twitter or RSS along with newsletters, contests and a human voice are all tactics. In my experience, people get obsessed about tactical detail before they embrace a strategy… and as a result, when a tactic fails, they begin to question the strategy that they never really embraced in the first place. Source: Seth’s Blog: When tactics drown out strategy

Go to the source to read more…

Seth Godin’s Thoughts on Social Networking (brandinfection.com)

December 12, 2009 0

An interesting perspective…

: Image via Wikipedia

…from a former USA TODAY reporter…

“Today is the last day that I’ll walk through USA TODAY’s glass and marble lobby, itself a monument to flusher times.

I’ve been laid off from my dream job, and I’m not going to lie. It sucks. I enjoyed almost everything about my immediate world there, from my globe-trotting reporters to my creative production team to my hard-working and open-minded boss. My group was tight, and we laughed and learned from each other every day.

But what bothers me the most is what my firing represented. See, I’ve been learning all the tricks that a modern multi-platform journalist is supposed to know. In the past 22 months, I’ve blogged, tweeted, shot photos and videos, and handled speaking engagements. I edited my section, managed my high-personality staff and then in my spare time, I wrote cover stories – something that very few other editors at USA TODAY do. I hustled and I cajoled and I ended up out on my ass anyway.

I’m a true believer in the power of journalism. I walked into my first newspaper office when I was 16, fell in love with deadlines and chaos, and never looked back. During my 20 years in the mainstream media, I’ve written stories that have changed lives, and I’ve written stories purely for entertainment. I felt it was a calling, more so than a job.

But increasingly, things have become more interesting outside the newsroom bubble. I’d go to conferences and meet people who were making it just fine on their own. Some were creating niche businesses, busting up the paradigm. Others were parlaying old school media talents into fresh ventures, with a moxie that made me wish I had the freedom to emulate them. The air inside USAT’s towers on Jones Branch Drive always seemed a little stale after that.

These freelancers-slash-entrerpreneurs are smart. They are nimble. And now they are my role models, as I join their ranks.

So to the managers who made this decision, in less than 140 characters I tell you: Good luck steering the Titanic. And thanks for the head start. Now I’m really going to run.” Source: Goodbye to all of that… | Chris Around The World

The world as we know it is changing in very interesting ways…

December 4, 2009 0

I keep telling you…

…that in order to thrive, not just survive, on the internet, you’ve got to master RSS feeds! Perhaps if someone else explains it this time, it will start to sink in…

“RSS or “Really Simple Syndication” is a term used to explain how, instead of you having to chase all over the Web to find the latest stories and news items you are interested in, you get the Web to bring them to you.

This can save you hours. I call it designing your own news service, delivered to you every day or as often as you want.

The “syndication” part of it is like when a comic strip is “syndicated”, that is, licensed to be used in newspapers all over the world. Bloggers and others who provide stories and articles online want more people to read them, so they “syndicate” them – that is, give permission for them to be read where you want to read them.

Blogs (and some other websites) have code in them to make this happen – it’s called a “feed” because it feeds the information to you that you want. How you usually know where that code is to be found is the orange (or whatever colored) icon. And sometimes words like “subscribe to my feed” or “subscribe to this blog”.

“Subscribe” just means that you get the feed and put it into a tool called a “feed reader” – most of these are free.” Source: What’s RSS? — Des Walsh dot Com

Do go to the source and read the rest of the article, but only if you’re wanting to gain a competitive advantage that will help you crush the competition!

Then, if you’re inspired, go back and read all the posts I’ve done on the topic! Hmmm. Sounds a little cranky — maybe I need more coffee [or, I’ve had too much!]… ;-)

November 30, 2009 0

Hmmm. I think I may need to rethink Posterous…

I’ve been a fan of tumblr for a long time, but the fact that Guy Kawasaki chose Posterous for his ‘Holy Kaw‘ blog got me thinking and testing this morning. My jury’s still out, but I’m curious. Here’s a video tour from the ‘digitalchiropractor’ on YouTube — forget the doctor content and follow along. I think you’ll see why I’m intrigued — Posterous may just be the perfect social media front-end…

httpv://www.youtube.com/watch?v=qxeFOD5lZ4k

November 29, 2009 0

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