Outsource Social Media?

This wasn’t necessarily a presentation I attended at iMedia, the Social Business Summit, or SXSW, but among the many brand people I got to meet, it was an extremely hot topic of discussion.  The discussion was further fueled by something that happened the day before the Social Business Summit.  If you hadn’t seen the news, an employee from a company called New Media Strategies, accidentally dropped an f-bomb on behalf of their client, Chrysler’s twitter account.  As you can imagine, the employee was immediately fired and Chrysler let the agency go the following day.

Many of the brand people I met worked in various parts of the company, and something mentioned in the Ad Age article about the incident sparked a lot of discussion…

Turf battles over social media between marketing and communications have been an issue at the automaker — and other companies — for a few years. Early in the day after the tweet went out, Chrysler’s communications team was grappling to get hold of the details of the episode after bloggers and media began calling, in part because Chrysler’s marketing department controls Facebook and Twitter social-media accounts that are “consumer facing.” The communications department has separate Twitter, Facebook, YouTube and Flickr accounts that are meant to be “media facing.”

Many companies say the divide only serves turf and budget wars, not the brands. “All that has blurred, so it’s critical for communications and marketing to be coordinating and cooperating all the time,” said Stuart Schorr, VP-communications and public affairs at Jaguar-Land Rover North America. One of the issues creating the turf war, he noted, is which department gets the budget.

What I think we all discovered was social media is something that can’t be fit into a traditional box, as it has blurred the lines between paid and earned media, marketing and customer service, as well as transactional versus relational communications.  I’m not sure anyone has figured it out, but everyone expressed frustration about how this confusion was causing issues within their companies  (like the ones mentioned above).

The general perception is that social media is “cheap,” because sites like Twitter, Facebook, and YouTube don’t necessarily charge you to be there.  However, in order to do it right, you have to invest first in listening to conversations about your brand and industry… which isn’t easy, when there are over 1 billion tweets per week, 1 billion Facebook messages posted per day, or the 24 hours of video uploaded to YouTube every minute.  Imagine the resources it takes just to do this… and if you want to respond to any of these messages, that takes more resources – and as pointed out above, multiple resources across functions/silos.

Hopefully you can agree, at the very least, it takes a large amount of time and organization.  Generally, brands are already heavily committed to traditional media – and spending money to outsource this work to traditional media agencies – because the “push my message through a one-to-many framework” has been in place for so long.  Even more important, leaders aren’t yet prepared to organize new internal communications structures to deal with a “new” media which requires one-to-one relationships.

In the meantime, there are certain to be many, many more ethical debates (like this one – Should You Outsource Social Media?) about whether or not you should hire someone to manage customer relationships in social media on your behalf.  Please tell us what your take in this debate is by commenting on this post.

Real Time Marketing

Presenter: Shiv Singh, PepsiCo
This was easily the best and most practical presentation of the day, providing a very clear outline for building a company structure to take advantage of a real-time environment.  The recent revolution in in Egypt highlighted the power of real-time communication and timeliness of information. Businesses can utilize social media for real time marketing, but there are six elements that need to be in place to execute effectively:

• Real-time Insights – It’s most important to be aware and know what your customers are thinking and doing in real-time.  The listening tools must be in place to provide a stream of updates.
• Real-Time Response – When you know what your customers are saying, you need to be in a place to act immediately.  A response only has meaning if it’s timely, so having staff who can respond in real-time provides an answer or response immediately.
• Real-Time Content Studio – Not only do you need to be able to respond immediately, but you need content and creative experts organize to be able to produce content in the moment.
• Real-Time co-creation – We can work together within the organization and with the consumer to develop the message and let it evolve.
• Real-Time Distribution – As a brand, the tools should be there to allow you to talk directly to consumers without having to go through your agency or a middle-man.
• Real-Time Engagement – Interacting and engaging with customers in real time creates engagement and trust.

All of this fits within a pop culture frame, meaning an awareness of the environment and what’s going on in the world at that moment.  The way we think and process information is changing, and new media technologies are literally addictive says psychologist Susan Weinschenk, fueling a “dopamine induced loop of seeking behavior and instantanious reward.”

There are 30 billion Facebook updates a month and a brand’s marketing message is competing for attention with all those status updates.  Therefore, brands need to think like a content company, regularly producing relevant content that cuts through the clutter.  During fashion week, Pepsi launched its new skinny can with a campaign called “Get the Skinny.”  During fashion week, they set up a content center for information on culture and fashion, essentially acting as a small news organization for the week.  It resulted in over 90,000 new Facebook fans and a large amount of engagement online with the brand.

Brands must be aware of culture and what the general public is thinking in order to take advantage of real-time opportunities.  During the BP disaster in the Gulf, Pepsi took the opportunity to expand the Pepsi Refresh Project.  They decided to give away and extra $1.3 million to fund reat ideas to help fund Gulf communities.  Because they were structured as outlined above, within a couple days, they got the idea, had it approved, and launched the site.  The next phase of the Pepsi Refresh Project will take advantage of consumer generated videos, allowing organizations who would like the grants to make a case to consumers via video.

Overall, in order to make this happen, Singh suggests that all of the following are needed to make it happen

1. Be able to ride “glocal” culture trends as they’re shaped by consumers.  Your company must be organized to communicate in real time, both on a global and local basis.
2. Target your brand loyalists and let them spread your message, but to do so you need to know who they are and have a relationship with them.
3. The ability to engage in real-time, meaningfully.  It’s about engagement, not just broadcasing your message, but if you’re able to do so, your message will be amplified by others.
4. Have a content studio to operate as a media organization in real-time.
5. Build your own distribution network.
6. Organize to be able to go from strategy to execution in seconds.
7. Don’t limit this to digital – make everything addressable, targeted, and instant.
8. Acknowledge real-time marketing has no geographic boundaries.

I got a question via twitter from @kellythul who asked what KPIs or metrics Singh utilizes for measuring success.  Singh suggested something he helped to develop while at Razorfish – the SIM Score.  The SIM Score for a brand is the ‘Net Sentiment’ for that brand in social media divided by ‘Net Sentiment’ for the industry.  Net Sentiment is defined by Razorfish as “Net Sentiment for the Brand = (Positive + Neutral Conversations – Negative Conversations) / Total Conversations for the Brand.”  He suggested looking at your real time score and comparing it to competitive brands within your industry.  He says that he has definitely seen a correlation with changes in SIM score and sales, mostly in CPG type industries.

Getting People to Share Information

Presenter: Philip Kaplan, Blippy
More than ever, we’re sharing private details of our lives on places like Twitter and Facebook.  Kaplan started a website called Blippy which takes the concept of sharing private information one step further.  The site  asks users to register their credit cards and then socializes your purchases from marketplaces such as iTunes, Amazon, Zappos and many more.  In essence, it tells your Blippy friends what you’ve bought, and allows them to get your feedback and review of the product.

Kaplan outright says, “the only people who care about privacy are old people.”  He goes on to show examples, such as the telephone.  When the telephone came out, there was a huge concern about lack of privacy – people could hear your calls, someone might listen in, etc.  Even more recently, as little as two years ago, people avoided Facebook, considering it “creepy.”  Today, there are over 600 million users of Facebook worldwide.

Kaplan’s feeling is that people have never shared this type of information simply because they have never been able to.  Today, over $1 million in purchases are shared every day on Blippy.  Kaplan feels that more people will share if they see value and a reason to do so.  Thus far, users of Blippy see value in knowing what their friends are purchasing, what they might endorse, if they like what they bought, or even seeing how they might be paying a different amount (like a gym membership) for the same service.

Ultimately, Kaplan feels that people will share if you give them a way to, and he feels that as “old people” move out of the space, a younger generation will be more comfortable – resulting in growth for Blippy.

Only Empowered Employees Can Serve An Empowered Customer

Presenter: Josh Bernoff, Forrester

In his new book, Empowered: Transformed by Social Technologies, he talks about the importance of enabling your HEROs, because only an empowered worker can serve and empowered customer – can’t run company top down anymore.  HERO stands for Highly empowered and resourceful operative.

The sales funnel has been extended, and it no longer ends with customers.  Here’s the new flow – Eyeballs -> Awarness -> consideration ->preference purchase -> Customers -> Supported ->Empowered -> Delighted -> Fan -> Broadcaster – the message then goes to others and starts over again.

Social participation has grown, which only highlights the importance and impact of this new model:

Bernoff believes there are four technologies empowering consumers: Smart mobile devices, Social technology, Pervasive video, and Cloud computing services.

How frequently do people tell others about products and services?  They looked at various social media and counted how often people told others about a product or service they were using.  They found 500 billion impressions, and during the same time period, total advertising impressions were 2 Trillion.  That means social media had 1/4 of the total number of impressions about products and services.  Which impressions do you think had more of an impact – referrals from friends and others on social media or advertising messages?

We need to start to treat our customers as a channel – they are another group which share our message.  The process for accomplishing this is – IDEA: Identify your mass influencers, Delivering groundswell customer service, Empowering with Mobile Information, and Amplifying fan activity.  Identifying the influencers is important because a small percentage of people control 80% of the influence online.  Delivering groundswell customer service requires reaching out and engaging in social media channels, such as Best Buy’s Twelpforce.  This requires empowered employees who can directly respond to customers. Empower people with mobile information, as the use of immediate information is most important.  Amplifying fan activity means enabling your fans to share their messages with others.  He used an example of a highly regulated health industry providing a way for customers to share their own testimonials on their site.

How do you run your organization to make this work? 3 groups that have to work together:

1. HEROs – know customer needs, use tech to serve customers, operate safely
2. Managers – Make innovation a priority, support Heros, work with IT to manage risk
3. IT dept  – Support Heros with technology, scale up solutions, provide tools to manage risk

You must embrace these new technologies, because HEROs will find a way around your controls.  A recent study showed that despite blocking technologies employees said this, they:

– use smartphone for work – 8%
– Download and use apps on work comp – 12%
– use tools to find access to blocked sites while at work – 27%

Resistance is futile, spend your time empowering your employees.  This requires encouraging experimentation, committing to collaboration systems, and using tools to share best practices across the company.

The Connected Company

Presenter: Dave Gray, XPLANE
This was an incredible presentation which essentially compared large companies and large cities, and how large cities are able to adapt, while large businesses struggle. Companies are Complex Systems, and he had a graphic of the org chart at Microsoft. It’s so large and complex, an external company compiles this and sells it to vendors.

Research has shown a 3/2 Rule, meaning that as organizations scale larger, profits drop at a 3/2 rate. More employees have proven less profits. In cities and urban planning however, there’s a 2/20 rule. As you double the size of a city, productivity in that location goes up nearly 10 fold. The reason has to do with relationships to environment, which essentially establishes – are you flexible/adaptable, or process/machine driven?

Both cities and companies start out small. As companies grow, the machine/processes established don’t work because of the increase in people, so they have to re-organize their structure or re-program the machine. Companies need to break down silos and processes, because studies of long-lived successful companies have shown they were:Companies are often like machines – very process oriented, and the CEO is in charge, pulling levers to make things happen. The problem is that processes are designed to sit on a stable foundation. No time has been worse for that then the present environment of change. People and technologies are changing because they are based on people and behaviors.

Decentralized – There are porous boundaries and no big strong central command and control.
Had a Strong Identity – Shared values, cultures, and beliefs.
Active Listeners – They are able to identify and jump on new opportunities (and have the cash to do so).
Most companies are designed by division (for labor specialization). This creates territory or turf when you create separate tasks. Companies should be designed with connections, connecting the core with periphery, or flocking, where they share standard protocols and shared services, learning from each other. Imagine companies as they are today with large organizational charts, vs a connected business or web of cross-functional, cross-experienced teams. If a chain breaks in a hierarchy, everything under falls down. In hierarchies, if a link in the chain breaks, the system breaks, but in a web, you can work around it.Lessons from Urban design:

Think at the level of the street – Get an organization wide initiative that requires a cross-functional team.
Spaces need owners – Wikis needs a gardener, blog owner to organize content, community manager to organize stuff, but they require connectivity for information and support.
Jumping off points – There are opportunities encountered along the way – you came for this, but what about that? Utilize the serendipity to start to make new changes.
Watch, listen, adjust, adapt – Have a strong feedback loop – pay attention, fix broken windows (You know what this means if you’ve read Malcom Gladwell), tweak, small changes add up, tell it what it needs.

Finally, connections within your company are vital, but connections between partner companies are just as important. In a day in age when no one wants to be liable, and things are held to contracts, it creates issues for users, destroying attitudes between both companies. Unless things are easily linked and plug easily into one another easily, this can be just as destructive.

Here’s another article on this presentation.

Dachis Group Social Business Summit

At the iMedia Brand Summit, several of us were talking about whether or not we were going to be attending SXSW. A few of us are, and I found out that Robert Freeman, from Michaels was staying at the same hotel as well. As we got to talking, he mentioned that he and his boss were planning to attend the Dachis Group Social Business Summit. Well, as it turns out, Robert’s boss wasn’t able to make it into town in time for the Social Business Summit, and since they aren’t able to refund his fee, Robert invited me to attend.

I had seen this earlier, but after iMedia and SXSW, there was no way I was going to be able to talk to my boss about footing the tab for yet another conference on this trip. I’m really excited about being able to attend this, particularly because one of the speakers will be Tony Hsieh, CEO of Zappos.com, and I just finished his book Delivering Happiness.  There are some other tremendous speakers on the agenda, including Josh Bernoff of Forrester, Shiv Shingh of Pepsi (got to see him speak last year at work when he was with Razorfish), and Jesse Thomas of JESS3, a data visualization group.  I’m certain the other speakers will be great, and the topics on the agenda look awesome.  As you would expect, I’ll be tweeting and blogging from there as well.