Is Social Media a fad?

It is hard to predict the future but here is where we are as of Jan. 2010:

- 96% of millennials have joined a social network

- Social media has overtaken porn as the number one activity on the web

- 1 out of 8 couples married in US met via social media

- The fastest growing segment on Facebook is females 55 to 65 years old

- It took radio 38 years, TV 13 years, the Internet 4 years, and the iPod 3 years to reach 50 million users–while Facebook reportedly added 200 million users in under a year (400 M Global FB accounts 2010)

- 25% of search results for the world’s top 20 largest brands are links to user generated content and 34% of bloggers post opinions about products and brands

What’s the future of these tools?

- New tool development is largely based on user needs and use patterns. New development in these social media tools will be based on what kind technology is available and what the users want. If there is a better, easier and faster way to connect to others, then that will be the tool that users will demand.

What are the costs and resources needed to do this?

- There are no barriers to entry and the tools are free to use. The cost come in the form of time spent largely updating, answering and adding new content. There are production costs associated with the type of content added i.e. professional video creation or professional copywriting or photography

Does every employee need to participate?

- Not necessarily. Social media management can be handled internally if the resources are available. This model would be optimal due to the availability of internal informational and communications.

- Social media management can be delegated to an agency or consultancy as long as the vendor understands corporate positions and guidelines and is held closely in the brand communications loop.

What are the legal ramifications?

- SEC now has regulations in place to include blogs as a means of disclosure.

- Properly trained and knowledgeable Public Relations and Investor Relations groups in social media communications can create a wide social media presence without running afoul of rules.

- In the end, every company should have in place a policy that dictates what employees, agencies or anyone with privileged information can and cannot say on social media platforms.

What happens if we do nothing?

- Nothing will happen immediately. Over time the brand and the company will be affected by a lack of presence in the space and that will translate into lost brand equity and potential loss of market share due to competitors gaining more ground in the space and stronger relationship with you customers.

What are the risks if we engage?

- Libel and brand/product/service bashing are possible

- Inappropriate behavior and content, either deliberate or inadvertent by company employees.

- Release of confidential or proprietary information

- And these are just a few suggestions…

How do we measure success?

- Traffic: site and product page visits

- Interaction: feedback, comments, likes, etc…

- Sales: Facebook/Twitter only coupon codes redeemed

- Leads: test drives, appointments, subscriptions, downloaded material, etc…

- Search marketing: content repositioned in Digg or appearing on Google’s page 1 of search results

- Brand metrics: brand favourability, brand awareness, brand recall, propensity to buy

- PR- content picked up by traditional mass media channels, free PR

- Customer engagement- listening to customers and maximizing conversation, word-of-mouth and new product service ideas

- Retention- repeat purchase and top-of-mind status for the brand

- Profits-it is more profitable to sell to existing customers that to find new ones

Does this hurt or help customers?

- Helps. You are now more accessible than ever before and have the power of a community of people that can help the brand and each other.

How does this increase revenue or reduce costs?

- Both. It reduces costs related to customer service. For example; a complaint or service change can be addressed quickly and effectively by simply updating in Facebook or posting on Twitter. This can minimize expenses associated with customer service call centers.

- It will help increase revenue by engaging and maintaining a customer centric approach to marketing and product sales. The potential for increased awareness through social networks is truly awesome- 1 by the power of thousands.

- Dell in Twitter: In June 2009 Dell reveled it had made $1M in sales directly attributed to Twitter

Does this help fuel or hamper innovation?

Social media platforms are an excellent tool for receiving and testing new ideas. For example: Dell’s IdeaStrom community has:

1. 60,000 participants in the IdeaStorm community
2. They have contributed 12,743 ideas
3. Posted 87,159 comments
4. Ideas posted have been promoted 693,670 times in total
5. And of those ideas 385 have been implemented

How do we manage bad reviews/criticism/negative comments?

- If the comment is a genuine concern or fault it should be approached as a learning opportunity. It should be a chance to reflect and hopefully improve.

- The customer should be provided with an answer and a solution if available or a reward/comp/gift if deemed necessary.

- If the comment is empty slander it should be ignored, disengaged and/or deleted. Often is the case where the community self-corrects or the community jumps to your defense and tells the Negative Nelly where she/he can stick it.

o Facebook: All comments can be deleted. If the person is a fan, he/she can be blocked or unfanned. Libel can be reported to Facebook and personal can be suspended.

o Twitter: Remove the comment and address the person directly via Direct Tweet (DT) message. You can block a Twitter follower and he/she will not be able to comment on your posts.

o You Tube: You can delete comments if they’re on your own videos. Comments outside your videos can be reported as abuse or spam.

 

Join me to discover, decipher and get hands-on training on how the Web 2.o tools can help your business grow.

Class: Web 2.0 Marketing Tools

Date: Dec., 12 and 17

Time: 6:30pm to 9:30pm

Place: Miami Dade College-Kendall Campus

Register: https://sisvsr.mdc.edu/ce/showclass.aspx?ref=542818

Professor: Marcos J. Menendez, President, Loop Consulting Group

Social Network Dissemination (SND™) is Loop’s program for selecting the right social media solutions needed for our clients to promote their causes and campaigns. Loop’s SND™ places the strategy, tactics, tools and training required to succeed in social network marketing. SND™ creates powerful communication tactics that will establish links, attention and traffic to the organizations website.

SND™ shows our clients that it is ultimately about building community around targeted a

udiences and spreading ideas that will drive results.

The Power of Social Media: Digg Your New President?

As a writer, I’m naturally curious, and I’m always looking for new research tools. So recently, I decided to become involved in social networking, or as it’s beginning to be called, “the new media”. I wanted to experience this rapidly growing phenomenon for myself, and I also wanted to see if there was true marketing potential there.

Since Digg appears to be the largest and most popular, I chose to join there. All I can say is, “Wow.” At first glance, it seemed almost like something from a Superman comic; suddenly, everyone seemed to be Lois Lane or Jimmy Olsen, rushing to get their story on the front page of the Daily Planet. But as I “dugg deeper”, I quickly realized that social networks are rapidly becoming the preferred way for millions of people to consume content on the web. And even though I’m not technically a marketer, even I could see the vast marketing potential that lies within the social network media.

Want proof of the growing power of social networks? Well, here you go: CBS News and Katie Couric have posted a video on Digg, asking members to submit questions for the Presidential candidates; Ms. Couric then suggests that perhaps some of these questions will be presented on the CBS Evening News, or even asked to the candidates themselves at the conventions. In my opinion, if the national news media is starting to recognize social networks as a viable media source, then that makes them a force to be reckoned with.

But wait, there’s more. At this year’s Democratic Convention, to be held at the Pepsi Center in Denver, CO, approximately 50 bloggers (one from each state), have been given press passes and access to the Convention. Digg then announced that they will be sponsoring a 9,000 sq. ft. tent, called “Big Tent Denver”, just outside the Pepsi Center, to accommodate more members of the “new media” to participate in the Convention via blogs, podcasts, and more. Although the number of bloggers allowed access to the Big Tent is still unclear, it’s definitely evidence that social networks are gaining power.

There are still those that feel that social media is just another passing trend. But even if that’s true, the very core of marketing is about following and capitalizing on trends. And who knows? Maybe twenty years from now, instead of going to the voting booth, we may be going to the computer and simply “digging” our vote for our next President.

(Oh, by the way, feel free to post this to Digg…)

Kathryn Smith
Chief Editor
www.loopconsulting.com