Friday, January 7, 2011

Social media bringing B2B and B2C marketers closer together


TUESDAY, JANUARY 4, 2011

Social media has changed what's possible for marketers. It's shifted the curve towards the individual and away from the mass customer and opened up opportunities for communication to be more interactive. From one-way broadcast towards two-way conversation. Ways to interact with consumers that were prohibitively expensive and would never make it past the first cut of an annual marketing plan are now viable, even preferred options.

Is it also leading to a convergence of B2C and B2B marketing? Business marketing has always been further along the path in terms of focusing on the individual customer vs. the mass market. At the Enterprise end of the spectrum, the primary customer contact is one-on-one and personal. Client-facing sales people are a primary driver of brand value, responding to their customer's needs and keeping them well informed. Maybe there are lessons here for consumer marketers now looking for a more personal touch?
Cisco Social Media Measurement by Stephanie Marx
Cisco's Stephanie Marx included this chart as part of a presentation on how to measure the effectiveness of social media. Cisco's approach to the evaluation of social media programs is interesting in of itself but what also caught my eye were the categories used to organize the various measurement approaches: "Community Health," and "Market Perception." These look relevant to all marketing, consumer or business.

Some of the sub-categories actually reflect new areas of interest in consumer marketing. "Thought leadership" mirrors the developing interest in and recognition of the importance of content and "customer satisfaction" mirrors the interest in companies like Zappos that have made customer service a point of competitive advantage vs. a source of costs that need to be reduced via automation and/or outsourcing.

Perhaps, as consumer marketers try and figure out their social media strategy, it would be worth talking to/recruiting a few B2B marketers to get their perspective. 


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MARTIN BISHOP
SAN FRANCISCO, CALIFORNIA, UNITED STATES
I'm a brand strategist at Landor Associates specializing in brand architecture and portfolio strategy. Twitter: @martinjbishop

Social media bringing B2B and B2C marketers closer together

WHAT WILL 2011 BRING? RETAIL PREDICTIONS



Posted by Bruce Dybvad on 12/17/2010 12:15 PM | Comments (2)
In 2011, retail will continue to undergo some of the most dramatic changes the industry has seen in half a century due to underlying drivers that have permeated society and shopping behavior. The most powerful, of course, is digital. Less immediate but also highly significant are demographic, economic and cultural value changes that are having an impact at both the local and global level. 

Consumers’ digital domination
Nielsen predicts one in two U.S. consumers will own smartphones by the end of 2011. And yet, despite the rapid adoption of digital technology, the majority of retailers have been slow to respond to the opportunity. The coming year will be one of catching up. The lion’s share of capital budgets will be allocated to the online channel and its optimization for mobile use, while marketing departments will try and crack the code for connecting with customers through social media. To truly connect with shoppers who are adept at controlling the interaction, retail brands will continue to discover innovative ways to be invited into consumers’ closed loop.
At the same time, consumers are increasingly more willing to allow access to their private information. Amazon.com now allows users to link their Amazon account to their Facebook account, so that the subjects in their social posts can be integrated into their Amazon recommendations. Keep in mind that in exchange for access, customers will expect to receive more value.

As retailers rush to take advantage of digital’s new channels for customer insight, interaction and engagement, they will also be faced with data overload — more information on customers, transactions and operations than they know what to do with. They will seek to find ways to separate the wheat from the chaff in terms of metrics, by way of refined research into the shopper’s path to purchase.
The art of the deal
While technology has allowed consumers to become increasingly savvy, skilled and sophisticated shoppers who gleefully drive deals, it also makes them susceptible to impulse purchases. The group bartering trend has been formalized through programs such as Groupon, where stores grant deep discounts if enough people sign up for them. Members only clubs for apparel like Gilt Groupe, are being adopted by other categories. Flash sales, or time-limited offers via text or Twitter, will continue to trigger impulse buying and give shoppers the smart feeling of having scored a great deal. Traditional retailers like J. Crew are already learning to use the flash sale: It recently opened an online factory store only on the weekends for deal-happy shoppers.
Brick and mortar transcends itself
Despite the fact that the point of purchase is now highly mobile, retailers are going to find that the physical store still needs significant investment. Shoppers expect it to be the epitome of the brand experience and the embodiment of all that is unique about the way a merchant does business. Otherwise, why go to the store? Stores will incorporate new services and experiences into their concepts to remain relevant and provide emotional engagement. This will be key to the increased importance of word-of-mouth as great service and experience will be actively compiled, commented upon and shared by wider audiences.

In the past, the 80/20 retail rule of thumb said that 20 percent of a store’s SKUs equaled 80 percent of sales. That rule will be turned on its head. In a digital world with almost infinite choice, shoppers will be drawn to stores with a personalized focus. Physical store concepts will become smaller, better executed and highly tailored. Assortments will become relevant and finely curated as they evolve toward true demand.  As shoppers buy less of what’s mainstream and more of what suits them individually, 80 percent of units will earn 80 percent of profits. Additionally, private labels, localized sourcing and cultural influences will be further differentiators, as shoppers demand simplicity, convenience and closeness.
Urbanization, empathy and emerging markets
Two big demographic trends have arrived that will affect the retail industry’s long-term planning outlook. The first is a striking population shift. Today, half the world’s population lives in urban areas. Nearly 180,000 people move into cities daily, which will impact the retail landscape dramatically. Retailers will concentrate less on traditional malls in favor of heading back into the city. Real estate will become more of a challenge, as city lots require clever adaptations of core concepts. We are already seeing arguably more creativity from retail brands as they incorporate existing and sometimes historical architecture into the shopping experience, discovering new aspects of their brand personality in the process. The dense living and working environment will also spawn new retail business models, such as pay-to-share for large expensive items, like Zipcar and B-cycle car and bike sharing. As consumers, city dwellers tend to be more open to new concepts, so expect merchants to react accordingly.
Corporate philanthropy and good citizenship will also be a growing expectation. Brands will learn to strengthen customer loyalty through generosity and acts of kindness, such as Dutch KLM’s campaign of spreading happiness by surprising passengers with unexpected gifts at the airport. 

Expect retail expansion into China and India to continue. Retail spending in China has risen by double digits the last two years and is expected to maintain that pace. Merchants, seeing manufacturers’ succeed by launching new products and brands that are culturally right for emerging markets, such as Levi’s dENIZEN jeans and Hermès’ Shang Xia, will adopt a similar strategy and create store concepts inspired by native culture. Barriers to global trade will continue to come down, which will encourage retailers to think and work towards a global customer base, sources, talent and reach.
*****

WHAT WILL 2011 BRING? RETAIL PREDICTIONS

WHAT WILL 2011 BRING? DIGITAL



Posted by Robin Rusch on 1/4/2011 2:53 PM | Comments (0)
Businesses that progress in 2011 will be those that craft a richer experience with the brand in the digital space. With distractions like device, interface, application, and platform, it’s easy to lose track of the importance of a meaningful message and an on-brand journey. Therefore there are five related areas for brand owners to focus in 2011 and beyond.
1.    The journey defines the brand. Brand owners need to be asking themselves: Is the digital experience delivered on brand?  I don’t mean usability (which ensures a user achieves his goal), but rather user experience. So, was the user delighted by his or her experience and was that journey reflective of what one would expect from this particular brand? 

Interface draws an audience in, but the user’s experience throughout the interaction is critical to the impression of the brand. Offline this would take the form of an on-brand experience: from the shop front to the merchandise, from the dressing room to the store employee, from the cash register to the packaging, from returns to the customer service hotline, direct mail promotions, and so forth. 

Digital interaction needs to move beyond functional and branded look-and-feel to a full experience reflective of the brand throughout the user’s journey. Is this the experience one should expect from this brand?
2.    Next generation convergence. It’s a term we’ve heard for years in regard to devices. When applied to brands, convergence does not just ask do different interactions look the same, but rather do different interactions also act the same?  Whether your customer is engaged with the website, app, podcast or dashboard, the entire experience should be recognizable and reminiscent of all other previous points of interaction with this brand. 

Ideally as brands launch new products or services, the consumer will intuitively adapt and adopt because he or she is programmed to know it from all other interactions with the brand. 

3.    Personal access without the burden of ownership. Spotify, Zipcar, cloud storage—all wildly popular despite the consumer ceding the privileges of ownership. Turns out we don’t always need to own things; we just want to feel like it’s ours when we want it and for the duration of the interaction. That can be achieved by weaving personalization and individual preference into the service or product.

Providing a feeling of “mine” could involve programming an individual’s unique settings, but it also applies to smart services built in for general population groups. For example, tying in related interests based on typical population profiles, providing alternative functionality for low-bandwidth locations, or recognizing special needs groups with features appropriate to their abilities.
4.    Getting to know the consumer. One way to deliver that individual experience in a shared service is by capturing user preferences and tailoring the journey. Employing artificial reality (AIML) or intelligent behavior personas, a system learns the user and tailors paths, content, and experience to the level of a user type or specifically for the individual. 

This personalized experience helps foster brand loyalty as the consumer feels that the brand gets him or her. Of course, consider your audience and don’t end up defining your brand as “creepy.” It’s a fine line when employing artificial intelligence or behavioral tools—you have the opportunity to either delight or disturb with the uncanny knowledge of a user’s behavior. 

5.    It’s the message not the medium. It’s easy to get caught up in the medium and forget content and message. Whether it’s a social media opportunity or a 3D depiction, the content must be reflective of the brand. In fact we can argue that there will always be a new thing on the horizon—five years ago Twitter, iPads, and 3D television weren’t on the scene, but the value and importance of what is actually communicated will never go out of fashion.

WHAT WILL 2011 BRING? DIGITAL

The Art of the Checkin: From Location to Content to Brand



Caroline Giegerich is the blogstress behind the Daily Marauder and a digital marketing consultant. Follow her on Twitter for more social media and emerging tech insights.
Within the spectrum of social media, the act of sharing essentially amounts to a desire to personally define ourselves to others. In the age of the social network, there are an almost infinite number of options for creating that personal definition on the web. Checking in is just one of the newer ones.
There is an art to checking in and a way to make it part of your online identity. Below, we walk through some of the obstacles and best practices for doing it right. Read on and let us know what tips worked for you in the comments below.

Location, Content, Brand


progression image
This all began with location but has shifted to allow users to check in to TV, movies, books and finally to brands. Each of these additional options allows us to personally define ourselves by answering the following questions: Where am I? What am I watching/reading? What am I buying?
While each of these choices from location, to content, to brand allows for an additional layer of sharing, they also each call for an additional level of activity from the user. It’s not enough to visit a restaurant or watch a TV show; we now must announce to the world that we’re doing it.
“If a tree falls in the middle of the woods but no one is around, does it exist?” Or the digital edition: “If you visit your favorite bar at Santacon and never check in on Foursquare, did it ever really happen?”
Simply put, we have fallen into the age of the overshare. There is a happy medium to be found, but we haven’t quite hit on it yet.
So, what do these companies think the reward is for users? And what do users think about interacting with these platforms?

Location: Cast of Characters


cast image
The San Francisco Chronicle claimed in October that there were 20,000 location-based applications in existence either with location as their core feature or with location weaved in. I’ve identified the four mentioned here simply for the story they tell about the evolution of this space. They also happen to be generally thought of as the leading location-based networking apps.
Loopt launched in 2006 and has approximately 4 million users on its platform. In the beginning, location was about coordinates rather than places. Foursquare and Gowalla both launched at SXSW in March of 2009. With both, the audience could now check in to locations rather than simply a cross street. Foursquare blazed ahead with specials and game dynamics, tapping into our inner need to compete with each other and resulting in its current lead of 5 million users to Gowalla’s hundreds of thousands. Latecomer SCVNGRdecided not to focus on checking in at one location or another, but instead, on what we are doing along the way.
In August, Facebook Places launched and shook up the location-based apps scene. It instantly had access to the more than 200 million active users accessing Facebook from a mobile device. At launch, Facebook Places merely allowed users to check in and tag others at the same location. No game dynamics. No specials (although Facebook Deals has since been added). The location wars continue.

Why Are We Checking In?


location image
There are five main reasons people use location-based applications: serendipity, game dynamics, as apersonal diary, for sharing experiences and to score deals.
Dennis Crowley, co-founder of Foursquare, called the platform: “Technology that facilitates serendipity.” The ability to find friends on the platform and sponsor serendipitous encounters is probably the most obvious reason why people interact with the platform.
Game dynamics fulfills the human desire to play and compete. Game elements that location apps use include mayorships, pins, badges, points, or any other competitive function of the application. Some people think game dynamics lack sustainability. Once I fight for a priority position and win, will I continue to fight for number one? What keeps us playing after we win?
The personal diary function gives us a running history of every location we have visited. On a recent trip to Munich for Oktoberfest, I found that I had forgotten the names of a few bars and beer gardens we visited along the way. Why? 1) It’s Oktoberfest. I was drinking beers in steins the size of my face. 2) Everything was in German. When traveling, location-based apps become an excellent way to record the places we visit along the way.
Sharing experiences, such as leaving tips for friends at your favorite locations, is the best alternative to actually being there with them. It also helps us foster connections with people based on those shared experiences.
Finally, seeking out discounts at our favorite locations is a good motivator, and there is built in convenience since most people always carry their phones. However, location-based services have not yet figured out an easy way to allow a mass audience to tap into the deals on their platforms. Their success moving forward depends on their ability to ease accessibility and make users aware of specials.

Checking Into Content: TV, Movies, Media


Similar to why we check in to locations, checking into to what we’re watching is less about chronicling our viewing habits and more about defining who we are to our friends.
Remember when watching TV used to truly inspire water cooler moments? Television and movies connect us. They give us something to talk about when we’ve exhausted commenting on the weather and traffic.
As DVR and On Demand erased our live viewing habits, television became less viable as a water cooler topic. It’s time to bring it back. Enter GetGlue, Miso, Philo, Tunerfish and others. I may now live across the country from friends in New York City but I can still connect with them via GetGlue’s stream and see who is also addicted to The Walking Dead.
Similar to the location side, there are badges and the ability to become a “guru” of a piece of content. Unlike the location platforms, the competitive desire to become “the number one” on a television show or movie is not quite as enticing. There just aren’t incentives that are as compelling as those on location apps. So far, the issue has been a bit of the chicken and egg problem.
Content companies want to play on these platforms as they scale, but they don’t want to invest too heavily until they see the mass audience in attendance. That audience may never materialize, though, if they don’t offer the incentives.
We choose what we check in to as a function of who we want to be. This is personal cachet. I don’t check into The Jersey Shore, but I do check into Boardwalk Empire. That latter shows something about my personality I want to display, the former does not.
Miss piling onto the couch and watching TV together? Enter the second screen experience. Applications like Miso are focusing less on the checkin and more on the information surrounding what’s on screen, including comments from friends and additional information.

Checking Into Brands


On the brand side, checking in involves interacting with the brand in some way, either by scanning a barcode or using a virtual gift card. These platforms are the most recent entrants to the checkin space, so features and use cases are still being figured out.
As with the content checkin, there are similar reasons to why the audience is checking in, including game dynamics and personal cachet. With the latter, it stands to reason, that we will be more likely to check in to certain brands rather than others. The biggest reason why the audience will interact with brands, however, will ultimately be for discounts and deals. Simplifying the pathway to a discount will push these platforms to success. Retailers have used rewards programs for ages, but the days of plastic cards will soon be behind us.
From location to content to brands, our world has become way more checkin heavy. The “why” in all of this returns to the reason we use social media in the first place: to define ourselves. The checking in began with location, but the possibilities will only increase over time as each one us decides what things or actions we want to align with.
How do you use checkin apps?

The Art of the Checkin: From Location to Content to Brand"

Eleven Digital Trends to Watch in 2011

Slideshow: Eleven Digital Trends to Watch in 2011



One of the most interesting parts of my job is working with David Armano each January to curate what the firm sees as the key trends that we think our clients and teams need to think about in the year ahead. This is the second time David and I collaborated on this effort.
For this year’s installment, we identified eleven trends. The first five are mine and the remaining six are David’s. If there’s a common theme that runs through it all it’s that there will increasingly be a lot of information coming at us, yet the same amount of time to digest it all. This, as Auggie Ray from Forrester notes, will make standing out more challenging.
In the deck above you will find the same recommendations we are sharing with our clients and helping them bake into their strategies. Client examples in this deck include eBay, HP and Qualcomm. The others are best practices from around the industry.
The 11 curated trends are summarized below:
  • Attentionomics - Marketers begin to realize the value of attention and not just reach in driving conversion
  • Digital Curation – The plethora of content will give rise to digital curators who can separate art from junk
  •  Developer Engagement – Marketers typically don’t try to court developers, but that’s all about to change
  • Transmedia Storytelling – If there’s one constant it’s that humans crave stories. Technology creates new expectations
  • Thought Leadership – Companies recognize they must activate credible individual expert voices who can create content
  • The Integration Economy – Social media efforts can no longer exist in fragmented, non-formal initiatives. They begin to integrate
  • Ubiquitous Social Computing – As competition heats up mobile devices, consumers closer to being socially connected anywhere
  • Location, Location, Facebook – If 2010 belonged to solely Foursquare, it’s likely that Facebook will rain on their parade in 2011
  • Social Media Schizophrenia – Social overload is no longer a problem for tech mavens, but a broader population
  • Google Strikes Back – Google proves that the best way to beat Facebook & Twitter is to do what they do best: index them to pieces
  • Viva La Social Web Site – Businesses realize that integrating social functionality into their existing web sites is what users now expect

As always, if you have any questions or feedback, we’re all ears.

Steve Rubel
Edelman Digital, New York
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