The 3 R’s of Social Consumers

In the last weeks, I came across the same issue in many meetings with clients. Social consumers increase their use of Social Media and social networks to state their opinion about a company, brand or service. Sometimes to rate the way companies make use of Social Media, or how they engage with them in campaigns or branded social hubs. Sometimes to complain about incredible customer service, or the quality of products. Sometimes just to link or share some content piece that attracted their attention.

The input described above by consumers can be summarized under the 3R’s: ratings, reviews and recommendations. These 3 R’s will challenge companies and brands in the future. Companies know that they have to find a way to deal with all the content published, as well as to establish ways to make use of it in the context of their business.

Ratings
Years ago, we would have seen ratings on Amazon, eBay or rating platforms Ciao. Today, there are external and internal rating opportunities for customers. Most modern content management systems have implemented rating systems. Content and shopping pages have their 5-star systems, percentage scales or „thumbs-up-and-down“ to evaluate the quality of the content or product provided. Facebook, Twitter and other social sharing buttons act in the same way, reach out and distribute ratings to a wider audience to name just some options the social consumer has here.

Reviews
While the chance to find yourself as a brand in a Twitterstorm was low in the past, the tables have turned. Companies like H&M, Motrin or BMW have become victims of reviews in the last years. Whether through crowdsourcing or blogging, reviews could leverage or damage your business success in a day’s time. The question remains the same for brands. Most consumers don’t differentiate between the trusted and personal reviews. In which reviews can they trust, what not, and what could end in a brand nightmare? The list of review sites is long, the one of personal blogs, social networking accounts, etc. even longer, and getting intense the more people review their personal views. And then, organizations have to bear in mind that 97% of purchase decisions are based on digital experiences.

Recommendations
Probably, the most dynamic part of the 3R’s is the recommendations part. In social networks (Facebook, Twitter, Youtube, LinkedIn) people hint, share and forward quick opinions about a film, a hotel or a show in minutes – and forget about it. Companies and brands need to take a position on these recommendations, or clear up the damage as best as they can. Well, if they find them and have the processes, people and resources in place to react. Some recommendations are still in the stealth mode as of semantic detection issues, or as they are only shared within the social graph of a person. And some recommendations are not even recommendations. They get catalyzed through social banner opportunities with Googe Plus buttons inside Google ads or via recommended people of the personal social graph in Facebook ads. And some will stay invisible for brands – most offline spoken words.

Spot On!
The challenge for companies in the future will be to educate social consumers on their way to social purchase. Social consumers often don’t pay attention to who said what, their gender, habits, age and preferences. Customers tend to be affected by a negative scale although it may be positive. 97% is not 100%, 4 start is not 5 star, the last opinion that was the only one negative, and so on. Most consumers don’t check who or how many people have rated the hotel on tripadvisor or booking.com. So, what is better? One rating in the 100% range, or 5 ratings getting 95%? A review where companies can react and improve the quality of their service? Or a recommendation that they could use as a statement to their blog? In my eyes, we will need to have seal of quality buttons that tell people to be aware of the fact that the 3 R’s are a good orientation for quality but not the final truth. And marketers should think about the best alternative to straigthen and strengthen their brands whatever effective the 3 R’s might be for their business.

Would you agree…?

Web or App? Nielsen study knows usage time of Android smartphone users

According to the latest findings of research firm Nielsen that tracks and analyses iOS and Android data, smartphone users spend twice as much time on applications than on mobile version of these websites. The study reveals also that –although there are millions of apps in the world- only “a very small proportion of apps make up the vast majority of time spent”.

The average Android smartphone user spends 56 minutes a day using apps and browsing the internet. Two-thirds of that time is usage of apps, the rest goes to mobile websites and 39% acccount for consumer app consumption. The study illustration below shows that mobile device owners spent almost half of their usage time on their top 10 favorite apps and 51% on their favorite 20 apps.

Let’s give it a guess… Probably most of the app usage of mobile device owners accounts for the following usage time: Checking email apps, Facebook, Foursquare or Gowalla, Twitter, and some of their favorite and coolest news or geeky gaming apps (very often used by their kids). And if you look at the top (free) list of apps you find Angry Birds, Angry Birds Rio, Google Maps, YouTube, Facebook Mobile, Skype, Tiny Flashlight, Viber and Drag Racing amoungst others.

The study supports my own feeling that although we continue to download apps and spend (2010 per user: Android 1,97 USD, iPhone 21,22 USD), we only use most of them them periodically, and only a few continously if the give us permanent benefit in networking or staying up-to-date on news.

Well, the time will come when HTML5 might change the market situation and developers will have an easy time working with apps. Amazon’s Kindle Cloud Reader gives insights in what is possible with HTML5 for the mobile web.

Spot On!
The study does not really give an answer to the question yet, or can give a recommendation to management. Still, Seeing these numbers, just imagine the chances companies and brands have when launching a new app to get under the hiflyer apps in the smartphone user market. Ideally, think about the five strategic reason that could make your app successful and be aware of the fact that most brand apps fail.

Study: Social Media and Advertising – What is the next hype for marketers…?

When you do Social Media marketing seminars and trainings (and I have done many in the last 24 months), most of the times marketers want to know everything around Facebook and Twitter (maybe Google Plus these days). However, according to the Pivot Conference that released their study “The Rise of the Social Consumer”, with the response of 230 brand managers, executives, and marketing professionals yesterday, some new hypes from marketers can be seen. Just check out the platforms that marketers are planning to invest in…

Although the big players on the market dominate at present, the next wave is already approaching marketers mindset. YouTube, LinkedIn, Foursquare and Zynga have made their popularity in the Social Media market and might get the future attention of the marketers. The second column shows an increase of those four platforms between 13-26% which obviously have some good business value if seen from the right customer service and customer relationship management spot.

For B2B companies LinkedIn got some great assets, not only with their special groups. YouTube is some higly underated platform in my eyes. It can be used for different visual aspects in B2B, but also viral topics and campaign opportunities in B2C. If restaurants, service providers or entertainment brands want to head for local promotions, Foursquare (and Gowalla in some areas – also 5% increase forecasted) offers some fantastic buzz potential. Whether Zynga is really so powerful for marketers to promote their offerings, needs to be seen and proved in the future. I would rather recomment and elaborate on reward advertising models.

The study also showed that 84% of brands encourage user involvement with social advertisement campaigns. This is interesting as very often the perception of marketers was that people don’t really see the ads next to their streams. The intention of marketers why they invest in Social Media advertising is manyfold…

Spot On!
Over half of respondents of the study (see full report) said they were shifting money away from other forms of marketing towards Social Media. 23% of respondents even stated that social advertising delivers a greater ROI than other forms of advertising. Although this sounds great, the strategic approach to every social advertising and Social Media engagement needs to be double-checked. The development of the results need to be aligned with the expectations and targets set before the Social Media activity started. At least if they don’t want to lack business credibility in front of their bosses…

Social Media Evolution at EMC (Video)

Many companies have started showing case studies, infographics, or videos to present their latest Social Media activities. Now, EMC comes up with a great video that explains nicely how the copany leverages the power of the social web.

In a “comic-style” video a Neanderthal man (what a nice metaphor) explains how Social Media has changed the way EMC engages with its audiences, how it helps to strengthen their relationships with customers and partners, and the public. However great all their success might be, they also highlight the responsibility which comes along with the Social Web engagement.

The EMCCorp YouTube channel states that the “brief training video is designed to communicate the key points of proper social engagement while not losing sight of the ‘fun’ side of Social Media”.

I remember a social media training day I have given their marketing team about one year ago and how much they liked the power of virals I have shown them. Don’t know if this can be connected to the training, but I have to ask… Isn’t this a nice way to illustrate the social media evolution in the business arena? Well done, EMC!

PS: Some bits and pieces in the video could be discussed from a social media strategic perspective as I would not always agree with them…

What happens in 60 seconds on the Social Web? A comparison and the value of “infographics”…

There are different ways to illustrate how fast the Social Web is growing these days. For two years my favorite “real-time” resource -based on studies and research data- was Gary Hayes Social Media Count. And I am sure, you have all seen this great little widget already…

However, we also have to keep up with the pace and realize that -although people already hate them- infographics are sometimes a nice way to grab facts quick and easy. The Shanghai Web Designers created an infographic which illustrates how fast conversations, comments and content are produced on social networking and online platforms in only 60 seconds.

Infographic by- Shanghai Web Designers

Now, although I honor the work of the Shanghai Web Designers, it lacks some information on where the data was generated from. Gary Hayes explains nicely how the app data was put together and how actual it is (having said that I think Gary needs to refresh his links as I found links ending in 404′s).

A comparison could be interesting, I thought. Why not compare the 60 seconds data from the Shanghai Web Designers (SWD) versus a “one-minute-momentum” of Gary Hayes (GH) counter…? I started the counter and waited 60 seconds, and there you go. Here are the results…

The comparison will just focus on the essentials Google, Email, Facebook, Twitter and Youtube. You can still do your own comparison afterwards…

Google
Search queries: 694,445 (SWD) versus 1,393,519 (GH)

Emails
Emails sent: 168,000,000 (SWD) versus 204,255,455 (GH)

Facebook
Status Updates: 695,000 (SWD) versus 696,758 (GH)
Comments: 510,040 (SWD) versus 512,100 (GH)

Twitter
New accounts: 320 (SWD) versus 208 (GH)
Tweets published: 98,000 (SWD) versus 62,707 (GH)

YouTube
Hours of content uploaded: 25+ hours (SWD) verus 36 hours (GH)

LinkedIn
New members: 100 (SWD) versus 60 (GH)

Spot On!
The comparison makes clear that the Facebook figures are similar whereas for the rest of the figures there is a massive discrepancy in numbers. Facebook is sharing their latest actual figures, for the other technology platforms the data probably comes from third party sources (or at least as far as I can see). If all platform and technology owners would share their latest data, those discrepancies won’t happen. The lack of source information from Shanghai Web Designers makes it difficult to argue which data is the latest, where the differences in the comparison are coming from, and so on. Maybe this is the reason why some experts don’t like infographics any more. “Don’t like…” might be wrong when I see how many people have shared the infographic in the last days. They appear very nice and compelling in social networking accounts and “illustrate” thought-leadership in presentations. Right…?!

82% of word of mouth conversations are face-to-face

The word of mouth and research company Keller Fay Group and Google have collaborated to understand the effects of the Internet and Internet enabled devices on word of mouth conversations about brands – and the Google Business Youtube channel published some findings now in a video.

In the US there are 2.4 billion conversations involving brands on a day, and the question is what role do various types of media play in this process? The study -based on 3.000 responding adults- comes to the conclusion that the vast majority of word of mouth conversations still happens face-to-face (82%).

However, the internet is the leading source of information motivating conversations. TV is already number two media to trigger word of mouth conversations. Google searches directly inform 146 million brand conversations a day, says the video. Are we surprised? Well, I wasn’t…

Obviously, Google would not publish it, if search wasn’t the main initiator in conversations as the study claims. According to the study, search is also said to outperform social media when it comes to credibility and likelihood to purchase decisions.

The study video concludes to mention the importance of search which is the leading source that inspires and informs, and thus triggers word of mouth brand conversations, followed by e-commerce with 7%. Social Media and branded websites are coming in at the same level.

Spot On!
The findings illustrate the importance to connect offline and online brand activities. Although search definitely has a major impact on our purchase behavior these days, and especially Google with all their opportunities and different service offerings, I would definitely stress that brand advocates also have a major impact on word of mouth conversations when using them to empower social media capabilities. The study did not use these special people as “online channels” of course. However, think about brand advocates and how you could leverage your brand with them.

PS: The full video can be seen here…

Outlook or flashback? The (mobile) reward advertising model…

About 12 years ago, when I was about to join silicon, I remember my first meeting in the Chelsea office. I got to know the founders and management team in London and we had first discussions about the future of the business model. It was all very exciting to be in the UK, talking business with that innovative team that was reaching out to the big VC’s for more venture capital as web TV and community building seemed to have been the new rising starts for the next hundred years. And today all business is focussing on mobile…

At that day, we were brainstorming opportunities how to engage users in advertising, and how to reward them. Reward them, when they were watching the pre-rolls at our daily (on-demand) three minutes news show, when they were clicking on display ads, when were reading articles that might fit their business needs and then send them personalized advertising… and reward them when paying attention to any forms and activities of sponsored areas.

To be frankly open, the time was not ready for these types of advertising rewards from a user perspective (as well as the ad industry understanding the capabilities). However, we thought about clever loyalty programs and how to let users participate in the revenues we are generating. As we were working in the B2B scenario it was even more difficult to get this into the heads of our users. I remember, we even tested the silicon point reward model and had a personalized point counter on our side for some days. Yes, we were quite ahead of our times…

So, where are we today with the reward advertising model?

Some weeks ago, I met Julian Fourgeaud at Rovio (Angry Birds) when I was speaking at the istrategyconference in Amsterdam. Julian told me all about the opportunities they have with their mobile gaming business. If you think about their reach – Angry Birds just cracked the 200 Mio. downloads barrier- it all makes perfect sense. I was surprised how much time people spend with the game, and how addicted people became during the istrategyconference dinner (just ask my kids…) but wondered how to make a clever advertising model out of it. And I thought if reach is as benefitial as relevance form an advertising point of view. But that is another story…

Today, I was reminded of the old silicon days. I came across a new business model which is called kiip. Their business is quite simple. A code is implemented in a game which is basically an ad. The ad is a reward points model or coupon that shows up in mobile games when people achieve certain high-scores or levels in the game. So, when you beat a level, you might get a coffee from Starbucks or a discount from MINI’s merchandising shop. Or you just collect points via their loyalty schemes which motivate you to think about purchasing their latest products.

Here is the video how kiip works…

Kiip: An Introduction from kiip on Vimeo.

Spot On!
There are so many advertising opportunities or loyalty programs (i.e. like Multiply to increase the worth of brand fans) these days that won’t be as offensive as the traditional advertising model. HOWEVER, in my eyes there is one thing which needs to happen: Personalization. With silicon those days we saw who was logged in, just like Youtube, Facebook and Twitter do. So, personalized reward advertising ad models should no be a challenge anymore (under given permission). Still, I cannot see any of these rewarding systems really working for now. Or is Facebook Stories heading towards this idea? Groupon, Foursquare and Gowalla could come up with similar ideas if they just collaborate with the guys from kiip. And if credit card providers as well as loyalty card providers would change their strategies and group with these guys, chances would be amazing to make advertising engaging, personal, rewarding and finally efficient for brands. We would get offers in a personalized format, at the right time and in the right environment.

What do you think about reward advertising models? Is this an exiting area to focus on? Do you fear that data privacy (remember this Google spoof commercial…) becomes an issue as usual? Let us know…

Survey: 7.5M Facebook users under 13 years

You hand over your mobile to your kids? You know where they are on the web? You know what their favorite social network is? Could it be Facebook? Oh, yes it could…

The magazine Consumer Reports states in a research that 7.5 million Facebook users are under the asge of 13 and finds that 38% of 9-12 year-olds are on Social Networks. Did you know that this violates the social network site’s terms? Did you know that this could expose your family to malware attacks and identity theft?

The Consumer Reports’ study “Social Networking, Age and Privacy” conducted earlier this year, surveyed 2,089 households that are going online. The respondents of the study admitted that almost one third had computers infected with malware and viruses in the last 12 months. Based on the findings, the study projects that computers spent $2.3 billion fighting online viruses. It estimates that more than one million computers had to be replaced as of malicious code.

Many responding parents seemed unconcerned that children were on Facebook. No surprise. Probably most of them have no idea what happens on Facebook, or even what it is, and that their kids are not allowed to join under the age of 13 years. Obviously, these younger kids have no clue about the danger that they are causing by not thinking about which malware-loaded links they are clicking and how they could damage the computer.

Consumer Reports gives parents really interesting and good advice…
- Using passwords or PIN’s if they store data on cell or smart phones. Especially smartphones offer instructions for setting PINs or passwords under the settings or security options
- Reporting and Booting kids under 13 off Facebook or reporting underage users to the site
- Monitoring their teenagers’ activities online
- Making full use of privacy settings, especially for teens.
- Being careful about downloading apps for phones and Facebook, and online, protecting Facebook information from friends’ apps

Spot On!
Most of parents have their sensitive data unprotected on their smartphones or their notebooks. And as I have experienced myself, I often stay logged in my favorite social networks on my smartphone and hand over to my big boy without thinking what he is doing. I often find comments and ratings on YouTube about Star Wars then…

Reading this study, I will definitely pay more attention to what my sons are doing on Social Networks, especially on YouTube which is kids favorite social network when they are watching scenes from films, or a trailer for the latest movie to come. So my advice would be… Watch out when you hand over the mobile to your kids. And especially if they have brothers and sisters that are older and already members of Facebook…

Do you expect the number to be bigger? Do you hand over your mobile without knowing where your kids go to? Should Facebook give access to kids of 10, or even under the age of 10 years? Interested in how you see the future of kids joining social networks…

News Update – Best of the Day

According to a study released by the BtoB Magazine, 93% of all B2B marketers use social media marketing for their day-to-day activities. For most marketers the most popular channels are LinkedIn (72%), Facebook (71%), Twitter (67%), followed by YouTube (48%), blogging (44%) and online communities (22%).

The main challenge for B2B marketers is a lack of resources (70%) and defining valid success metrics and key performance indicators (57%). Surprisingly enough, the lack of knowledge about social media (44%) is still a big topic… and management resistance (22%).

Statistics are the best argumentation against management resistance, and to get management behind the changing world of your web-strategic efforts. Hubspot’s author Marta Kagan put together 12 mind-blowing arguments that will empower the change your modern web-strategy is heading for.

In order to get your future web-strategy right, companies need to proof their areas of best practice and knowledge. Jacob Morgan published on his blog their companies Adaptive Social Business Strategy (or framework) which in my eyes is an interesting check-list for businesses on their strength and weaknesses from a web-strategy perspective.

Study: Profs see YouTube as most benefitial social platform

Which social network is more important in the future? According to a study released Monday by the Babson Survey Research Group and the e-learning giant Pearson, there are some social networks delivering more intellectual efficiency than others. The study asked 1,920 faculty profs at various types of institutions.

Testing the uses of nine different types of social media platforms among professors, the study states that professors consider YouTube the most useful tool by far. For both teaching and non-classroom professional use, it is more benefitial. Nearly one third of students that were instructed by their profs to watch online videos as homework, and about 73% replied they thought YouTube videos were either somewhat or very valuable for classroom use. Not saying that they necessarily use them currently.

Other Web 2.0 tools performed less well among the users. Only 2% of the profs said they used Twitter in class, and another 2% responded they used it for professional purposes outside the classroom. However, some more said they could see at least some value in the microblogging site. The portion of these long-sellers still amounted to less than a tenth of all respondents.

The small benefit of Facebook in class or for homework assignments does not surprise me. Although many professors use the site for personal or professional networking, the respondents see not much value from a professional point of view. Faculty rate the site’s long-term prospects in the classroom only slightly above Twitter’s – 15% submitting that it is at least somewhat valuable.

53% (and 46% respectively) of professors think that Twitter and Facebook not only lack pedagogical value but in fact harm classroom courses. It would have been nice to get an explanation herefore but this is not shown from the study results.

Wikis for classroom use seem to be unpopular as well still. Although faculty see their potential value as higher than Twitter or Facebook. 36% saying they view wikis as having some value in the classroom.

Spot On!
These are some more detailed new findings compared to a similar but more limited survey Pearson and Babson did last year. The small difference between professors who teach online and those who teach in person can be seen. However, the question for the future will be how much people will be educated in school on the opportunities and potential that the social platforms can offer. And I personally doubt that all profs are already understanding, or are able to leverage the validity and differentiation between the social platforms. YouTube is easy to use from a faculty point of view: If the prof is standing in front of the class or shown on a screen does not make a massive change from a teaching perspective if Q&A’s are offered along with it. The challenge will be to create and maintain cross-over education between platforms like i.e. Twitter, Wikis, Youtube and Facebook. And the value of social bookmarking sites as reading reference is big. No reason to add these to educational reference value, and to give reading advice to the curriculum? Think about it…

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