News Update – Best of the Day

What kind of advertising is better for campaign conversion for companies? Search or advertising? A recent Eyeblaster study states the combination of both.

“72% of the conversions of cross channel search and display campaigns are a direct result of the display channel while only 28% are the result of the search channel”.

And if we think a bit further, then we might ask if engagement creatives will be the most powerful future of advertising conversion? What do you think?

As mentioned in a post some days ago, augmented reality can offer great customer service or even be used as a sales tool in terms of visualizing products that people might want to buy. Lego shows how this could be integrated in the POS sales strategy…

Commercials in the 60ths have been recorded live. Should not commercials in our todays world of real-time be recorded like this? I doubt somebody can talk as professional as this car dealer today. Most of the social web workers are probably better in writing as quick as he speaks…

Reloaded – Personal Web Manager

One of my most popular posts was my vision of the personal web manager. Most of my friends or business cotacts even thought that my next business follows this idea and invitations to next web generation events followed.

And yes, I still think and know from C-level executives that it would solve one of their biggest problems when getting engaged in the social web: Having more time when they need it in the future while staying in contact and up to date in the social web world!

Now the vision of the personal web manager is reloaded. Gina Trapani tries to “work against” the idea in her post Work Smart: Mastering Your Social Media Life with a new solution named “funneling”. And thus, she brings the value of my personal web manager vision back to live. Most comments go against her vision and obviously, I have to disagree as well.

Nevertheless, watch the video and maybe rate her funneling against the personal web manager…

The problem of personal productivity versus being a “perfect” social median remains unsolved. Vision are there, the world wants this problem to be solved and someone will realize the personal web manager business model in the future. Don’t you think?

Social Micro-Payment: Flattr = Paid Trend mit Zukunft?

Die meisten meiner Follower und Fans werden mitbekommen haben, daß mir die Verwirklichung des Paid Service Gedankens sehr am Herzen liegt. Es wird Zeit, daß sich auch wertvoller Content vermarkten lässt.

Aber bitte nicht die Diskussion um Paid Content, sondern weiterhin zukünftig bei Paid Service bleiben. Was die Verlage nun über Jahre nicht geschafft haben, will nun Peter Sunde schaffen – Gründer von The Pirate Bay. Sein Projekt heißt Flattr.

Flattr ist ein Social Micro-Payment Vision, die bisher noch nicht am Gedankenstart war. Aber sicherlich nicht nur den Micro-Content Anbietern gefallen dürfte…

Flattr läuft in der Beta und man kann sich als Content Anbieter um einen Account bewerben – Email Adresse abgeben genügt. Gleich vorweg: Reich wird man damit nicht!

Wie funktioniert Flattr?
Der Internetnutzer zahlt einen fixen monatlichen Obulus. Wer die Seite eines Content-Anbieters besucht, findet neben den Inhalten einen Flattr-Button. Wenn der Inhalt gefällt, wird geklickt. Am Monatsende werden die Klicks des Nutzers gezählt und der eingespielte Betrag entsprechend dann unter allen Empfängern anteilsmäßig verteilt.

Spot On!
Die Idee klingt gut. Der Teufel steckt in der Umsetzung und die hat es in sich. “Every month the Flattr User pays a small fee.” Wer bezahlt denn da eigentlich? Eine Vorauszahlung für Content, den ich vielleicht gar nicht bekomme oder konsumiere? Soll das eine Art Donation-System sein? Hmmm, ist das ein gangbarer Ansatz?

Und dann mag ich gar nicht ausdenken, wie sich das auf die positiven Kommentare in Blogs und RTs auswirkt. “Hey, ich hab schon bezahlt. Lassen wir das mit dem RT oder Kommentar mal…”

Oder liege ich mit meiner Sichtweise falsch…? Nochmal die Idee ist irgendwie cool, aber auch bis zu Ende gedacht?

Augmented Reality – the future of customer service?

The customer service world around us is changing with the social web, new technologies, and especially mobile apps. The question is how much this is effecting our perspective of the real offline world around us. A new technology is evolving that is beginning to connect the offline and the virtual world from a customer perspective as it will offer some new form of customer service. The term is Augmented Reality (AR).

It is a technology that brings your visual experience and information from the web or networks together, and by doing this enriches daily situations with relevant data from the web – and in more and more cases the information provided will come from the user.

The competition for users and companies has already begun. We have augmented reality browsers like Layar, explaining us instantly which famous buildings are surrounding us. Or, another AR browser named Wikitude that starts to become one of the most-wanted AR browser apps (not only for iPhone users) and gets nominated for one award after another. With wikitude.me shops and service providers of all sorts can already use this cool service to make themselves visible in the offline world by geo-tagging their office or location with simple online entries. If somebody is new in a city, this person can find a laundry or the next wine shop much easier in the future – just by using an AR browser app.

There are products like T-shirts projecting interactive games with AR. Digital cosmetic mirrors where women in cosmetic shops can see in real-time what a new eye-liner or make-up is looking good at them without testing it in reality. Adidas will launch a series of shoes, each printed with an AR code on the tongue which give you access to an interactive game that changes on a montly basis. Is this the customer service of the future?

Now, just imagine what this technology could do for customer service in the future. Wouldn’t it be a positive effect when we get immediate feedback on health information about the food and drinks we consume?

The following short film, called Augmented (Hyper)Reality, shows us a world some time ahead, where augmented reality is part of our daily offline life. We see what the actor sees, from his own perspective, and get to know the oppotunities that AR might offer to our daily life. OK, if we agree to getting networked completely…

The interesting acknowledgement for companies will be the advertising part of the film – although in some way it might be shocking…

Spot On!
The complete overkill seems to be the massive sea of logos flooding our sight in the beginning. Although the above examples might seem an exaggerated view of a futuristic branding scenario, it gives some idea on how the world might change customer care in the future. And you never know if this will be really happening, or not. Today, this all might sound strange to us but just think about how common the use of artifical medical help is for us, or how often we use the navigation system in cars today.

And then, think about the options when combining location based advertising with augmented reality. This opens a complete new world of customer care…

Don’t you think?

Is customer-centric business the future?

In the last 12 years, the credo of my business life was “Customer First!”. It surprises and disappoints me when I experience poor customer service. Or when I hear from unhappy friends, colleagues or relatives telling me stories about how companies treat the centre of their business: customers.

Last week, when I was thinking about how to leverage this to a higher level, I came across a modern business strategy vision by Ranjay Gulati, Harvard Business School professor and author of the book “Reorganize for Resilience: Putting Customers at the Center of Your Business“. In the following video Gulati tells us how to deliver what customers really want.

Reorienting vs. Reorganizing
Ranjay Gulati sees the fundamental changes appropriate for some movement in company processes. Customers have more information, more choices on products while companies are facing global competition. So, businesses have to think about their business (not only marketing or sales efforts!) and how it operates.

Redefining vs. Reinventing
The analysis of the customer base might show that the website is designed for male while the majority of the users might be female. So, we need to ask questions like “Who are my customers?”, “How do my customers shop?”, or “What do they really want?”.

Gulati explains with the latest success of Best Buy how women and men shop. At that point, he also hints to the upsale opportunity of recommendations.

Success for businesses, he believes, comes from “Inside-Out-Perspective”. Companies don’t have to produce everything themselves but need to make the client happy like Apple with the iPhone. 90% of the inputs are not made by Apple. The same occurs to the apps in the Apple store where Apple basically just orchestrates the customers wishes.

“Make this identity shift. I am not here to sell what I produce – I am here to solve a set of customer problems (…) and actually acting on that!”

How to get to a customer-centric business…
1. Shifting mindset: the intention to solve customer problems.
2. Sense of curiosity and humility: the wish to understand your customers.
3. Make a creative leap: the will to understand their needs.
4. Align the elements in the organization: the motivation to live the customer-centric business.

Spot On!
Interested to get your view on this modern business strategy. Let us know what you think about customer-centric business. Or do you think the social web will be leading us towards this business process anyway?

Moms access point for engagement? – Social Networks!

If your company sells children (car) seats, diapers, baby buggies or lipstick, when it comes to engaging at-home moms you may think about social networks. At least two recent reports from the Retail Advertising and Marketing Association (RAMA) conducted by BIGresearch as well as another one conducted by Lucid Marketing and analyst Lisa Finn in the US make clear that moms are more likely to be on Facebook, MySpace or Twitter than other moms.

Moms log on almost daily
And moms are using social networks quite often. A Lucid Marketing study states that 80% of Facebooking moms log in at least daily. Even more, 30% of the responding moms login more than five times each day. Also mobile logins are quite popular: About 40% login from smartphones and computers.

The future seems to belong to Facebook. 90% of the moms say the Facebook benefit is that its easy contacting friends/family. 26% mention they like the apps (games and quizzes).

Social web for at-home moms important
- 60% more likely to use Facebook
- 42% more likely to use MySpace
- 16% more likely to use Twitter
- 15% maintain their own blogs

“Retailers who aren’t engaging customers through social media could be missing the boat” (…) “Twitter, Facebook and blogs are becoming increasingly popular with moms as they search for coupons or deals and keep in touch with loved ones. The web provides efficient, convenient ways for brands to stay in front of their most loyal shoppers and attract new ones.”
Mike Gatti, Executive Director, RAMA

Spot on!
Now, the most interesting part for marketers: 64% like ads (or feeling neutral about) on Facebook, says the Lucid Marketing study. Meaning, Facebooking moms are apparently open to get in touch with brands and marketers – if they take their wants and needs into account. The ’social moms’ are getting engaged when they search for exclusive deals (i.e. coupons and discounts). Apart from that, these studies indicate that companies addressing moms could replace old loyalty programs. I am sure, this is a great opportunity. But don’t forget to provide sustainable conversation – moms hate it not to be taken serious in their job at-home.

Can corporate social media engagement replace customer loyalty cards?

We all have our purse full of plastic cards for customer loyaly programs. These won’t make us rich. They make us save money, or get kickbacks from companies and brands if we want. And the philosophy of these programs is clever. Companies have the feeling of being in touch with their clients on a regular basis, making sure customers stay informed about their product offerings.

The customers bottleneck is, well yes, we have to carry multiple plastic cards in a credit card format with us. So, why not leaving these cards behind after 20 years and just make customers fans on Facebook and/or followers on Twitter of brands?

Imagine you go into a store and you’ll see a “Follow us on Facebook or Twitter or on our iPhone app” sign taped to the cash mashine instead of receiving print and plastic to carry home?! – Why not save the trees and oil resources!?

Companies install reward program cards to make us buy more of their products, or more frequently. And companies get more feedback on our buying habits. So, for companies these cards are an essential part of their customer loyalty strategy.

And customers with a big purse are happy. Others don’t want to have all these cards. Thus, these customers are not lsitening to what’s the latest promotion. Now, who of the male world is happy with all these plastic cards making our trouser pockets look like fat kangaroo pouches?

In most cases, these loyalty cards are addressing and being used by an old-economy’s vanity (IMHO), or women. “Look how much companies are interested in having me as their customer”, I heard a woman say the other day.

A recent study by the CMO Council “The Leaders in Loyalty: Feeling the Love from the Loyalty Club” shows the trouble of loyalty programs. 54% of consumers mention that irrelevant messages, low value rewards, and impersonal engagements may decrease their loyalty for brands and their services, and with that their loyalty programs.

And yes, we can understand this fact when our online and offline mailboxes are full of non-personalized, unexhiting and unintersting promotions from company’s so called loyalty programs. Talking of me, these loyalty programs get one chance and I cut those cards into pieces straight away when the company loyalty program fails.

Now, what does this means for loyalty programs when we match these results with the latest survey by MarketingSherpa. The new web generation and prosumers love following brands as they expect savings, learning about specials and sales as the top motivation to friend and/or follow a brand online. If companies are aware of this fact and learn from it, why not replacing the old loyalty card concept then?

The benefit of the fan and follower systemtic is quite obvious…
- You become a fan and/or follower when a brand becomes of interest for YOU as a customer
- You become a fan and/or follower of your favorite brand when YOU are in a purchase process
- You can check status updates on sales, discounts and promotions when YOU need them (not when the company wants to sell more products)

OK, thinking of business intelligence and data mining sales cycle topics, it might become difficult for companies to track purchase processes as good as now. But, isn’t the customer king with the rise of social media? And companies could save money for print mailings and their plastic card production, right?

Spot On!
Some weeks ago, I have thought about Twitter as a sales tool and with this post, I am trying to take this idea a bit further. It shall illustrate how much a company’s sales and customer service strategy gets influenced by a new social web strategy where the customer holds the power of interest in promotions.

So, let us know what you think about the idea that Facebook fan pages, Twitter company accounts or corporate LinkedIn groups could replace loyalty programs in the future? A dream, a vision or a stupid idea?

Is e-meeting a trend or the future?

While some signs suggest the economy is stabilizing and the global recession might find an ending, the majority of business travel managers will be looking for alternatives to travel that can be enabled by technology in the future.

A recent survey “2010 Corporate-Travel Spend Plans & Tactics,” conducted by Kotler Marketing Group, in conjunction with the Association of Corporate Travel Executives (ACTE) provides a detailed analysis of enterprise travel spend plans versus the growing use of electronic alternatives (e.g. web- and video-conferencing) to offset travel.

- 55% of respondents would rely on electronic alternatives more in the future in order to reduce travel expenses.
- More than 40% said their organizations are replacing sales-related travel with conferencing in coming years.
- However, web and video conferencing were not rated as “usually effective” means in accomplishing the goals of their meetings.

Another interesting result of a study by the Palm Springs Desert Resort Communities Convention and Visitors Authority shows that desert hotels lost an estimated $30 million in convention and meetings travel from late 2008 through May.

Now, we might argue and ask the question if executives refrain from going on planes the way they did in the past. And we might ask if spending money for big conferences is ‘out’. So, will department kick-offs with nice trips to the US (or some other interesting places worldwide) be a thing of the past in some years?

Spot On!
Some years ago, one of my partners said: “Can I insert my Miles&More card in our new video conferencing system?” What sounds funny to us has more impact than most of top management members might think. Traveling is a personality statement for a lot of managers. It is also about gestures, mimic, sensual perception, hand-shaking and all that which makes more impression on our business contacts and our deals than some stockholders might think when looking at their shareholder value. Meaning, companies will face a conflict in terms of cost savings and probably embrace the trend of the new technology. Nevertheless, businesses will be trying out alternatives to traveling for meetings with web- or video conferencing. In my opinion meetings need to happen in real life more frequently than online.

Do meetings not have a deeper meaning for business? What is your perception about the effectiveness of these new meeting technologies as travel replacements?

News Update – Best of the Day

People are asking me quite often, what it takes to become a smarter social businessperson? I was about to write a post about it. But my strategy works along Jeff Jarvis words: “Do what you can do best and link to the rest!”. And yes, I have found that Don Reisinger at Gigacom has written some excellent 10 tips for becoming a smarter social business person. So, why should I…?

Some companies like AUDI let their social community and fans co-create their new design for the car of the future. Vitamin waters newest flavor was created by their brand’s Facebook fans. Matt Rhodes shares the social experiment which is not finished with the launch of the product in March 2010. The success factor for the engagement of the community was a competition (again – incentives are key, it seems)… and for the success? Collaboration…! The co-creation included: choosing the flavor, designing the packaging, and naming the water.

This Doritos commercial makes me laugh… join in!

2010: Online ROI – a challenge for companies

The solution to the following question is complex: How should companies measure online ROI in future? In times of display, affiliate and search advertising the measure of success has been kept very simple. Page impressions, clicks, leads, sales – that was it. With the evolution of social media the topic of online measurement has become more complex.

In the Pre-Web 2.0 era, there was a formula that has put everything else into the shadows. It was based on the clic. Obviously still many CMOs see this as the crucial measurement factor of their online activities. The click was considered the basis of the digital marketing manifesto.

The formula of the previous online ROI went something like this…

Page impressions and clicks to convert click-through rate that generates leads and ultimately (hopefully) sales.

And this formula also corresponded to the value in the online marketing of cost-per-mile (CMP), cost-per-click (CPC), cost-per-lead (CPL), cost-per-sale (CPO). Simple, clear, pragmatic.

Marketers were satisfied, the sales man less (mostly) due to inferior leads and associated fluctuating revenues. There was a lack of transparency. The management is considered to be overstretched. 2010 everything will be different.

In 2009, the main German association for publishers and buyers, the IVW, killed the power of the page impression, the visit is the ‘Golden Surfer’ from now on. An English study by the Online Publishers Association (OPA) is following suit and strengthens the effectiveness of the ’silent click’ and the value of the context.

Moreover Eyeblaster invents, and especially Dean Donaldson promotes this, the Dwell Time. Efficiency measurement of web activity becomes a challenge for companies. And if we take it to the top companies do need an eye-movement study to measure the time-based attention, the way we know it from the print era (similar to copy-test).

Another challenge is that there are numerous social media activities added, and here we are looking for a reliable measurement method to justify the expenses. In Germany the Association of Social Media and Social Media is quickly introducing a new currency: share of voice or share of buzz. A conceptually coherent model , but in practice is questionable in its feasibility, management and marketing relevance. A similar measure as the CTR won’t be found in the social media industry, probably still for a long time. Probably not even 2010…

Let’s illustrate the complexity of measuring social media ROI at a viral campaign, the buzz generated by social media coverage and results. Previously, the click was relevant. It was a unique short-term assessment without measurement of long-term effect. With the ended of the campaign the measurement time was over. Whether the click came from the desired target group of bookers ranked in it’s relevance secondary.

In a viral campaign, however, due to the target-transparency, the question of efficiency measurement is completely different. All these values are quite different in context and only win in their semantic and concluding statement its relevance for the advertiser.

Questions arise such as …

How much time commitment gives the user his social activities and the commitment to the company?
How do I rate detailed comments on blogs, micro-blogs or social networks?
How to evaluate an Re-Tweet in this context?
From whom are the comments and actions coming?
How does buzz spread via this person and to whom?
How relevant is the target audience about the distribution for the advertisers?
How to integrate ratings in the measurement methog on video- or evaluation platforms?
What about the statements that I can not even see, because a front door at Social Networks is obstructing my access to the results?

Without individual-subjective definion of measuring units, each company, every Social Media ROI measurement is worthless, and social media marketing measurement fortiori. The metric must be defined in the relevant context of the desired outcome best possible – in other words the individual needs of the corporate strategy or intention of each social media activity has to be adjusted from case to case. Increase in visits to the website? Generation of Fans or Followers? Couponing on a community? Knowledge on brand confessions obtained? Or actually generate online sales?

Each profile of an active social median, its social graph, in its sustainability and its recommended value of inside and outside “of his” social community has different weight. Determine where the true relevant measurement is the responsibility of the advertiser. At the Webcific I have called the new monetary views as “cost-per-commitment” to provide the relativity of the word in question and to make clear the relevance of the word, but for the future.

Commitment begins with the communication to customers and does not stop when clients order at the company’s shop. However, maintaining the commitment of campaign spending via email or traditional online activities still is essential. As customers loyalty runs outside the social media spheres, too. Defining commitment as a measure of social media may be based different on the company blog than on Facebook or Twitter.

A crucial factor in the social web is always forgotten: Traditional marketing campaigns have a beginning and an end. That’s when Social Web communication starts…

The CPI formula in times of social web might be …

Reach and engagement convert to social activities that lead to multipliers, and (probably generate) revenues from sales.

The future of online ROI measurement should be driven on the basis of how much communication output must a company deliver through a variety of social media, until the customers brand promise is gaining credibility and creates customer communications. This leads to commitment, which I have just referred to as “social activities” that need to be defined. They are the drivers of the talks for the multiplication of messages from the public relations, marketing and sales department.

Spot On!
Measuring the Social Web ROI is a long term process. Metrics from shares, posts, comments, ratings or Tweets replace the old click-metric. For the new metrics remain the web’s property, thanks to social search integration. Communication is dynamic and it may be that the pure bookmark result of yesterday, generates many social activities and conversations tomorrow.
Who dominates social communication that generates brand-vangelist peers (as I always like to call it). From anonymous platforms users become now fans, followers, blog readers and community members. They all have names that are transparent, a huge advantage of today’s web-talks. In the decisive moment, when they start participating in the discussing companies can find important multipliers of the message of a brand or a company, and therefore define important parameters. But companies should remember that communication can take place anywhere and adjust according to their web strategy. This modern weaving culture should incorporate engagement metrics or policies between sales and marketing. Otherwise, the effort of monitoring, measuring, analyzing is worth nothing, and will not meet the result of the challenge of 2010.

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