ComBlu specializes in community marketing and influencer programs. Our Lumenatti blog sparks conversation about the best and brightest community ideas.

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  • 03.08.2010

    What if IBM ran the healthcare debate?

     

    One of the first things that Sam Palmisano did after becoming CEO of IBM was to do a values gut check. Palmisano felt strongly that a refreshed values system would provide a roadmap for operating differently in a rapidly changing market environment and ultimately complete the transformation process.

    The biggest challenge? Despite the fact that IBM was emerging from a long, painful decline and was newly prosperous, people were cautious and suspicious of a new vision. The company needed a way to galvanize people around hope and aspiration as opposed to fear of failure. The company also has a massive, global employee base with widely divergent views.

    The answer was a highly innovative process that IBM called Jam Sessions. In a nut shell, the first one started with senior management creating a set of values that were vetted and refined through focus groups and surveys. Then, the entire employee population was invited to weigh in on the list. IBM used social media tools to gather input and analyze trends across the input. Each “value” was the topic of a single forum that was moderated by a member of the senior management team, including the CEO. Employees comments reflected the “good, the bad and the ugly.” Instead of running from the bad and the ugly, Palmisano viewed negative input as a mandate for change. Tags helped sort input, which informed the creation of a new mission and values statement. The company eventually held adjunct Jam Sessions to identify operational roadblocks to adoption of the new IBM way.

    If President Obama and the United States Congress could outsource the healthcare debate, IBM would be the perfect partner. Imagine if we “jammed’ the healthcare bill. Each major tenet could be debated over a 2-3 week period and include anyone in the country who wanted to learn and participate. For example, one week, the focus could be “cost reduction”. This umbrella topic could be broken down into several sub topics such as “tort reform”, buying insurance over state lines”, “public option” , “pools”, etc. Before jumping into the jam session, the participant could view content that provides context for each topic. A few experts could debate the pros and cons of each topic and then citizens could jump into the session and comment. Following the “open jam” period, comments could be analyzed and used to create a “mission” for each topic. This mission then would be sent back out and people could give a thumbs up or down for each sub topic. Sort of a mash-up between Yelp, Ideastorm and IBM’s jam sessions.

    Congress could augment this online debate with town hall meetings held simultaneously around the country in movie theaters. This approach was used by Buisness Week several years ago for its annual two day business conference. Live speakers were at various venues and teleconferenced to audiences in movie theaters around the country. Interactive devices facilitated audience participation and captured feedback instantly. This opens discussion and participation to audiences with no access to or comfort with online social tools.

    The integration of on-and off-line engagement is  a best practices often missed by marketers. In this case, it also provides a very important choice for how to engage citizens.

    Congress would then use this feedback to write a bill that reflects the will of the people. This of course has been one of the big criticisms of the current process: the will of the people has gotten lost in the shuffle. Another drawback of the recent debate has been the sheer size of both the House and Senate bills. A Healthcare Jam would break it down and give people an opportunity to learn in smaller bites, participate and “vote”. What a concept. It’s a little bit like “democracy in action”.

    Let’s Jam!

  • 03.02.2010

    A Social Salute

    Right before the holidays I had the honor of presenting at the All Services Social Media Conference, which was sponsored by The School of Continuing Studies at Georgetown University. The event was part of an ongoing initiative spearheaded by Colonel Kevin Arata to share social media experiences, best practices and approaches.

    Lots of smart people and big thinkers presented at the conference. One of the best was Peter Klaus of Fleishman-Hillard’s Digital Media Team. He presented a case study about a program his team put together for the Department of Defense. Called That Guy, it uses an interactive social website as a pivot for a widespread campaign to curtail substance abuse in the military. One device is a set of clever interactive “trading cards’ that help a person self-identify as a specific species of “That Guy”: the comedian guy, the angry guy, the dancing guy, etc. (you know who you are!) The cards list behavior traits, link to video, provide a way to send the card to a friend who fits the description, and so on. The site uses every motivational and teaching device that appeals to its target including humor, games and even a bar calculator for those who are only motivated by their pocket book. Check it out; wonderful program.

    Some other sessions were lead by Katie Paine (measurment0, Rohit Bhargava (engagement) and Andrew Krzmarzick of GovLoop.

    I led a session about how to plan and build a strategic social marketing plan. The session sparked a lot of audience participation and of course, the interaction and shared learning among the participants was where the real value occurred. Representatives from across our armed services shared challenges that they face in managing and integrating disparate social media programs. I was blown away by the savvy and sophistication of the questions and insights of the group. At ComBlu, we work with a lot of experienced marketing teams of major corporations, and talk to countless others every week. Many of these conversations do not match the social media knowledge or maturation levels displayed by the mostly military audience at this conference.

    I should not have been surprised. Look at the social programs the military uses for recruitment, addressing the concerns of parents and other family members, supporting the efforts of military commands, etc.These are just a few examples. There are many command social media sites, user generated communities for parents and families that are not sanctioned but supported by the military, Department of Defense programs, etc.

    One observation about all this activity: just like their corporate counterparts, the military social media approach still seems to be one of “experimentation” or what we call “lots of bricks; no building”. Many public and private organizations have yet to create a social strategy mash-up. Our recent research shows that only 20% or so of major corporations exhibit a cohesive social marketing strategy. While this is starting to change, ultimately the full value of social marketing will only be realized when it is integrated and organized in a way that leverages brand value and offers stakeholders a easy, comfortable way to engage.

  • 11.30.2009

    I’m tired and my head hurts……

     

    But not from the usual Vegas reasons: staying up late, losing money and drinking too much. I did none of those during the three day WOMMA 2009 Summit in sin city. My excuse is too much information and so many great conversations with little down time to process. So now, I’m in the air heading home with a little time to reflect.

    Summit 2009 content was heavily focused on case studies, social marketing techniques and measurement. In fact, WOMMA debuted it’s newly published “Measurement and Metrics Guidebook”, a collaboration of some of the best thinkers in social metrics. Check out ComBlu’s chapter by Jennifer Voisard on cost deflection. I moderated a session on “Community: An Important Driver of WOM” with panelists Dawn Lacallade , chief community strategist at Solar Winds and Bill Johnston chief community officer at Forum One.

    And, Steve Hershberger helped lead the live “Socializing Media” podcast which featured a conversation with some of the best thinkers in word-of-mouth. In between hallway chat and keeping up with crucial projects, I attended a half dozen sessions. Here’s some of my favorite take aways.

    Measurment Keynote. WOMMA’s chair of the Measurement Council, Walter Carl, PhD, presented highlights of the above cited tome of best practices in measurement. One interesting factoid was the impact of word of mouth marketing (WOM) on revenue vs. traditional marketing communications channels. Turns out the latter does a much better job of generating short term customer acquisition and revenue generation, while WOM yields higher customer lifetime value through longer, deeper customer relationships and a significantly higher referral rate for new customers. (1.7 per traditional channels vs. 3.8 for WOM).

    Anatomy of Buzz Revisted. Author Emanual Rosen gave an address on what not-for-profits can teach commercial enterprises about generating buzz. Core to his examples is the concept that human beings want to share what they create. If you give them an opportunity to co-create with you and other stakeholders, they will spread their interpretation of the activity. I think this basic tenet of self-expression as an engagement model has been forgotten in the gold rush of social media and the bright shiny object syndrome.

    The View, only with academics. Keller Fay principal, Brad Fay deftly led a panel of academics who all study various aspects of engagement, influencer identification, measurement, etc. You’re thinking this was deadly, right? They were great. Here’s the line-up.

    Socializing Customer Service. Sue Sunday, Microsoft, Ed Billmaier, The Scotts Company and Marie Shubin The Gallo Winery, talked customer support. These were from wildly different industries: software, wine and fertilizer yet offered a common thread: the use of customer service professionals to become the voice of the company in social platforms. The rationale: many companies that start listening programs or solicit comments through online forums and communities often get quickly overwhelmed by the sheer volume of conversations. The solutions: repurpose customer service representatives from call centers or email support. Not only will they be able to handle a larger volume of customer support episodes through the online platform, but they typically can offer marketing three magic things: human resources who already have deep product knowledge and are steeped in the legal, privacy and compliance imperatives of their organizations.

    Cognitive Science. Another potentially deadly topic that turned out to be the absolutely best presentation I heard. This one was lead by Steve Knox of P&G’s Tremor Group. He laid out how human’s think and a process for disrupting normal perceptions that serves to get people’s attention. Using this disruption model or combining two unrelated schemas can lead to the magic that we all seek: cutting through the clutter and getting consumers to notice, buy and tell others. This is highly over simplified, and definitely worth digging deeper. Who knew 45 minutes about schemas could mesmerize!

    I’ll provide more learning about some of these sessions in upcoming posts. ComBlu also previewed our research report, “The State of Online Branded Communities” which we’ll also dive into in the weeks ahead. Now that I’ve gotten these ideas out of my head, the seat is going back and I’m snoozing the rest of the way home.

  • 11.02.2009

    No News Is Bad News!

     

    Our firm, ComBlu, hosted the Midwest regional judging of the WOMMy Awards a few weeks ago, which are sponsored by the Word of Mouth Marketing Association (WOMMA). A group of judges from agencies, not-for-profit and big brands got to determine the bronze, silver and gold winners in the engagement category. It was very interesting to see the state of the art of word-of-mouth engagement programs. The entries ran the gambit from internal stakeholder engagement to big brand extravaganzas. The winners will be announced at WOMMA’s Summit in Los Vegas in mid-November so I can’t say much more about the entries or the winners.

    One of the best parts of the day was meeting our fellow judges and hearing their perspectives and different takes on the entries, the industry and their own campaigns and programs. One judge was from a local university and mentioned that they had launched a community for parents a few years ago. She relayed how much they had learned over the past few years and talked about how their skills and point of view had morphed to meet the needs of this new social medium. She told a story that occurred early-on when a colleague commented, “There’s no activity in the community this week; isn’t that great?” We laughed because in this instance, of course, “no news is bad news.”

    The whole point of the community is engagement with the parents, helping them have a great experience with the university and to feel secure that their children are in good hands. A great mission for a university-sponsored community. Her colleague was applying old school thinking to a new media solution. In the past, no interaction with the parents was equated with no complaints! In the community model, however, they want action and reaction. They want to hear the good, the bad and the ugly. They want to improve parent/university relations and learn from these constituents in real time. It’s a smart strategy; these parents will have a great story to tell other parents in their networks whose kids are considering this choice for higher ed.

    This judge’s story was interesting; more so than some of the entries! Not all of them really had a lesson to teach, which I think is at the essence of what an award winning program must do. Award winners should model best practices against a defined business challenge as well as demonstrate exceptional ROI. They also need to be strategically brilliant and stun us with their creativity. Not necessarily their creative, but their creative execution of a well thought through strategy.

    Many of the entries did just that while others are still representative of early efforts to give social marketing a whirl. Nothing wrong with that, but I was heartened to see how far the industry has come. Many of the entries demonstrated solid business results and used some tried and true techniques in unusual or new ways. That we have tried and true techniques alone speaks volumes of the growth and evolution of this marketing discipline. I can’t wait to hear about the winners in the other categories. I’ll share more insights from our group after the awards ceremony on November 18th.

  • 10.05.2009

    Community: More social science than computer science

     

    We’re about to release findings from some research ComBlu conducted to gather insights about the state of online community marketing. Without getting too far ahead of ourselves, let me share one observation after diving deeply into over 125 communities that were built by 45 different brands. Many companies are still taking a computer science approach to community building vs. a social science orientation.

    Here’s the big insight: only a slight fraction of the brands we reviewed show any evidence of a cohesive strategy. Many seemed to still have a “build it and they will come” mentality and left the community to its own devices. This epitomizes the computer science orientation: get a platform, throw a community out there, and hope for the best. This flies in the face of using communities as a core engagement strategy.

    Those communities that were high performers typically exhibited lots of best practices. This is a very important point given that the best practices are almost all some flavor of an engagement tool. And, that’s where the social science comes in. Brands build communities because they want to engage with customers and other key stakeholders. The whole point of having a branded community is to have purpose driven conversations about topics that are of genuine interest to both the company and its customers. This requires the brand to really think through how to provide multiple, meaningful paths to engagement. The brand needs to be an active participant in the community and interact in ways that resonate with members or visitors.

    Conversations are two-way activities; it’s essential that the community sponsor exhibit signs of life. It’s imperative to have a strategy for what to do with feedback, ideas, and insights. One of the worst practices we saw was a community that solicited input and then used an automated response that told the person to contact customer service. Ouch. The community IS customer service! That’s what is at the heart of engagement: knowing customers and using that information to serve their needs.

    Another aspect of engagement is modeling behaviors and organizing activities that make each person feel affinity with the brand. In essence, taking a social science approach to community building provides the gestalt of engagement. The community sponsor needs to unite elements in such a way that the ultimate experience can not be derived from a simple summation of its parts. It is a symbiotic bond that spawns new experiences and deepens engagement from the collective life force of the community. In the process, all parties learn and grow.

    So, it’s no real surprise that those communities that offer multiple ways to engage scored high in our research. What is shocking is the number of brands that go to all the trouble of building a community and then neglect it. Instead of building a significant asset, these brands are simply using a social platform in a very tactical way. At best, this represents a huge missed opportunity; at worst, It just doesn’t do the intended job.

  • 09.16.2009

    The Gravity Rule

    When helping brands and organizations think through community strategy, we are asked a handful of questions by almost everyone. They fall into three major categories:

    · Overall approach and program design

    · ROI

    · Resource allocation

    The first two are very specific to the mission, objectives and business drivers of the organization. To some extent, so is the third but I think the ‘gravity” rule applies. What’s that? Pauline Ores, a community whiz at IBM, is fond of saying, “Community is like gravity; it only come in one flavor.” She goes on to make the case that fundamental principles of community design apply equally across every industry. What works in tech also works in consumer products. The customization comes from the content, tools, and engagement strategy that you employ.

    Here are xxx “gravity” principles that apply to community resource allocation.

    · Designate a community strategist: This person is primarily responsible for:

    •  Identifying business goals and aligning them with community and social marketing programs.
    •  Ongoing approach and applying a best practices orientation to the program.
    •  Integrating the program with other marketing and operations campaigns
    •  Identifying key social marketing and community trends and separating fads from useable applications and tools
    • Assuring community profitability: developing cost/benefit models and developing ROI modeling

    · Assign a public community manager. This person has several responsibilities. including:

    • Serving as the human face of the community. This is the go-to person for members when they want to interact with the company; not just each other.
    • Engaging members in a variety of ways. This requires a comfort level with chatting with customers, understanding their concerns and being open about the probability that desired actions will actually occur in a stated time frame. In my experience, many marketers only deal with customers in the abstract. They view them as personas, objects in a video, data points or from behind the mirrored glass of a focus group. They don’t really deal with them day-to-day. The community manager needs to be comfortable in this role and can offer invaluable insights to the organization.
    • Managing key community functions and activities. These include:
    1. Create quarterly engagement approach
    2. Maintain Reputation Management system
    3. Direct other team members
    4. Analyze trends and work with Community Strategist to determine implications and impact
    5. Serve as community advocate for internal company audiences and business units
    6. Field and manage requests from other business units for advocate or program access
    • Being the voice of the brand throughout the social eco-system. The community manager should be visible both inside the branded community location as well as maintain a high profile at other social destinations.
    • Managing customer advocate relations. Care and nurturing of customer advocates is essential for optimizing this strategic business asset.
    • Moderating disputes and community sentiment. It is essential for the community manager to intervene as appropriate when the community is veering into negative territory or one of its members is behaving badly. Often, self policing among community members handles this before formal intervention is needed, but the manager must be aware and know when to act.

    · Give an Engagement Manager responsibility for:

    • Executing engagement strategies including online and offline events
    • Managing ongoing recruitment and advocate on-boarding

    · Appoint a community operations manager. This person could be the same one as the public community manger but has very specific skill sets. H/her is responsibility for:

    • Monitoring community health and wellness. Maintaining an early warning system signals when the community is in distress or thriving. Each call for action; just different ones. This person is part strategist; part analyst.
    • Moderating specific actions and activities. The majority of this can be automated if you put in the right back-end and admin tools. Someone with half a lobe working needs to watch, though.
    • Overseeing everyday QA of the platform. Nothing frustrates visitors and members more than slow nav and broken tools.

    · Allocate dedicated tech genius. Every organization I’ve ever worked with has a long queue for dev work. If your community is going to be successful, you’ll need more than a few forums and standard widgets. If no one inside your company’s IT department knows and understands community beyond what comes out of the shrink wrap, find a go-to outside resource that is platform agnostic, can help you choose the best platform for current and future needs and can help you scale. This person should also bring you new ideas and new social tools that can help you integrate your social presence both inside and outside of your community.

    According to Forrester community expert, Jeremiah Owyang, successful community marketing requires dedicated staffing. In addition, a study by Forum One quantifies the optimal staffers for community is 6.5 FTEs. In our experience, this resource load is often too steep for organizations in the formative stages of community building. ComBlu typically takes a “build, grow, transfer” approach with our clients. We serve as an outsource for much of the heavy lifting during the early stages of community building. As we move past pilot into the growth stage, we begin knowledge transfer so an internal team can eventually take over the running and managing of its own community assets.

    This model with tweaks for individual needs is the gravity rule for community resource allocation.

  • 08.18.2009

    The Tower of Babble

    There is a story about the Tower of Babel in which a great tower was built in the city of Babylon thousands of years ago. 

    Babylon was a cosmopolitan city, many of the citizens were very impressed with themselves.  They were very important.  They did important things.  What they did, what they said eclipsed the value of everything and everybody else. 

    Across this city/state there were a myriad of languages spoken, roll all of this together and it was a very confusing and problematic place to be at the time. 

    All of this self impression along with the conflicting languages caused things to go badly.

    Hmmm.  Does any of this strike a cord?  Did you notice in my blog posting I deliberately mis-spelled Babel?  It’s typed as ‘Babble’.  Dictionary.com defines Babble as “to talk idly, irrationally, excessively, or foolishly; chatter or prattle.” 

    Sound vaguely familiar yet?  No?  Ok, I’ll keep going.

    How about this.  Earned Media.  Getting warmer?  Tagging? Uh-huh.  Uniques?  Yep.  Web 2.0?  Sure.  Tweets.  Of course.  What about this one:  Link Juice.  Ummmm.

    Marketers have their own language that to others sounds like well, babble.  Try an experiment.  Set a meeting request to your company’s CFO and put in the subject line ‘Briefing on Earned Media, Tagging and Link Juice. 

    See if he or she accepts or instead, declines and emails you back asking what the @#!&# it is you want to waste their time with. 

    Respond saying you made a mistake.  You want to share a few cost-deflection and lost revenue earn-back strategies you’d come across.  You’ll probably get a different result.  You see, marketers speak ‘promotion’, while CFO’s speak P&L (profit and loss).  Accountants speak GAAP (Generally Accepted Accounting Principals), VP’s of Manufacturing speak Lean or Cellular (as in Lean or Cellular Manufacturing).  A few mutants still speak Six Sigma.  Together at some level in the organization, the management committee made up of the C-level and EVP level peeps who make decisions like merge, divest, close the Scranton Office, etc. speak Revenue Center and Cost Center. 

    Revenue and Cost center is an interesting language, it has two intertwined dialects.  The first, ‘Cost’ is brutal and gutteral, sort of like Gaelic.  ‘Revenue’, on the other hand is more melodious and sweet; a joy to listen to

    Those who speak Revenue and Cost see things as, well…generating either revenue or incurring cost.  Revenue and Cost speaks only of black and whites. You as a marketer are part of that world.  Yes!  It’s true.  Unfortunately, you reside more often than not in the Cost side; not always a comfortable place.  Sales sits in the Revenue side, which can be much more fun.  The reason is metrics.  Sales can show direct contribution to revenue.  TV ads and guerilla marketing tactics usually don’t.  Sales are easy to defend.  Without hard metrics, marketing is well, squishy and couple squishy metrics with terms and definitions that others don’t get and you are on thin ice in terms of value and influence.

    While the term Earned Media sounds cool and is important to help describe all of which help define the granular inner-workings of some marketing tactic, its impact or outcome, most people outside of the marketing department don’t care or even understand.  Your marketing power points cause some in the organization to spontaneously bleed from the ears (note:  this will usually cause them to exclude you from critical meetings like budget planning).

    Not being understood is bad.  If they don’t understand, you’re value to the organization is diminished (imagine getting a new boss who doesn’t understand what you do.  How long will you last?). 

    dilbert

    If those who speak Revenue and Cost can’t understand your department or your program’s value, you don’t get the opportunity to actively shape how the marketing promise is delivered. 

    Those who control the business enterprise (the making of the widget, the pricing of the widget and the distribution of said widget make their decisions regarding the widget without you.  Your input falls on deaf ears.  Yikes!  Hell on earth!

    So what to do?  Don’t live in the chaos of Babylon waiting for the impending doom.  Be proactive!  Learn a second language and communicate.  When we as marketers are as versatile in the other operational languages our peers speak as we are in our own language, amazing things will happen.  One:  You will start measuring your activity and results in ways that are important to others (those who speak Revenue and Cost).  Two:  Your influence and work will amplify in terms of results.  Marketing initiatives will begin to be baked into operational activities and visa versa.

    What were previously siloed activities will begin to work more harmoniously (i.e. CRM and Social Marketing) and you as a marketer will cease to be viewed by the other non-marketers in the company (whom by the way out number you) as not just the creator of hokey messaging and some un-measurable brand promise but instead the gate keeper of customer loyalty, net profit generation, low-cost win-backs and heck, maybe even a cost deflection source!

    Well, we are at the end of this blog posting and the four non-marketers who were reading this have already gotten their fill and left, so I will reveal the big important ah-ha.  One that trumps even decoding Revenue and Cost.

    You as marketers will hold the power of the customer in your hands and strong customer demand trumps everything.  You will understand them better than anyone, you will know how to reach and keep them happy.  You will know how to convert more customers using targeted, efficient techniques and tools.  You will balance the promise of your marketing efforts with the delivery of those promises by the operation.  You will be the master of customer engagement efficiency!  You will drive profit, which you can measure and defend…and that is a very good place to be.

    That is, if you like that kind of stuff.

  • 05.27.2009

    Making the leap from product utility to customer experience

    I recently attended the latest WOMMA conference in Miami. It was an intense two days, full of knowledge transfer during various break out sessions. We explored the trends and insights of customer engagement, through community and social media. We also listened to similar stories of what was finally proving to be successful, in our ever-evolving world. But, many of these case studies were around causes that ComBlu has always pioneered. For the brands in attendance however, the information was new, exciting and even a little scary.

    Brands were in the same boat, asking similar questions such as:

    How do I sell this internally?

    How do I monetize this?

    How do I even begin!?

    During a breakout session I noticed one individual was just scratching his head, looking sad of all things. I asked him what was wrong. He said, “Great. I get it. We should be doing this. ALL of this.”

    Am I missing something here?

    “Well, we do insurance. Who wants to talk about insurance?” he asked with dismay.

    I started to think. Well, lots of people! My brain working quickly, I began to lay out an idea.

    What’s important in people’s lives? What do we talk about? Family, safety, security, assets, natural disasters, buying one’s first home. I could go on. If your product is boring or un-sexy, go beyond the utility of it and create an experience. Jump right in. Be THE place for these conversations that your customers, or potential customers, are having.

    Riffing off this idea, another agency representative said, “Exactly. And, you can provide a place for questions and resources. Insurance is confusing.”

    He began to brighten, because now we’ve got something. I continued on.

    An insurance community can be a portal for life. With a community you can stimulate everyday conversation, and become relevant to people’s lives. Give guidance, and be a comfort in times of disaster, trouble and need. Be a resource, and provide the content your customers are looking for. Listen, and get direct customer feedback that could help your process and increase satisfaction. Look at it as an opportunity, and not a problem. I could almost see the gears begin to turn in his head.

    Do all of this right and you can even measure its effectiveness. You’d be amazed at what a little brand loyalty and awareness will get you. It struck me then, that for an insurer, a little customer love may just be the holy grail.

    To drive it home, I began to talk about cost deflection. Eventually your members will develop their own expertise around your service offerings and processes. If engaged properly, they will begin to help each other with policy questions and other important decisions. You’ll save money in a number of areas: claims administration, customer service and support for starters.

    Full on smile now. He got up in a daze, reached for his cell phone and walked away. I looked for him later, but never saw him again. Oh well, I hope I was of some help. Good luck Insurance Man.

  • 05.22.2009

    Community by the Numbers: Part 2

    Consider these community facts (these are real, hard metrics from a number of brand communities but are sanitized and general for reasons of NDA).  Keep in mind, the metrics I am sharing are only the tip of the iceberg of what can and should be measured to effectively determine a community’s performance.

    • A group of several hundred (less than 500) advocates in one community generate over 500,000 page views with the UGC they create.  That UGC they create offsets the need for branded content and is more effective.  Marketing pages that receive this content outperform their traditional counterparts in terms of dwell time by over 50%.
    • This content has significantly increased both product use/downloads and ad impressions as measured against more traditional methods.
    • This UGC is syndicated into outbound CRM messaging.  Advocate content increases the click through rate by over 40%.
    • A group of only 10 advocates within a community, focused on product support, is responsible for delivering $1,000,000 in support savings (as measured by cost deflection) to the brand on an annual basis.

     

    Using a tool ComBlu invented and has spent the last year refining called the Community Performance Index (tm), we can generate a set of performance metrics that helps the marketing and community management team to intimately understand what’s going on in their community, as well as, what is driving that activity.  It gives them the ability to deliver to management quantitative metrics as to the value of the community to the brand.

    Think of it like a Community Net Promoter Score, only better…ok, maybe just more evolved than NPS since you can’t triangulate a position (i.e. measure where you are) with one datapoint (try doing it on a map and you’ll see what I mean).  But this is another blog post.  Back to topic…

    Also, I  mention both ‘Advocates’ and ‘Members’ when talking about community.  Advocates are the heartbeat of any vibrant community and contrary to some positions, advocates are critical to a community’s success.  Advocates have a different role in community than general members.  Why?  They are ‘wired’ differently than the everyday person.  They are more influential because of what they know and their place in the social graph.  Tapping and engaging advocates early and asking them to play a role in the development and growth of a community is critical.

    It’s important to note I am not talking about Influencers.  Here’s how we (ComBlu) make the distinction.  Influencers are people with big megaphones and reach a very large audience.  Charlene Li is a great example of an Influencer.

    clip_image001

    Advocates are everyday people equipped with microphones.  They broadcast to their social networks and peers.  ‘Andy B.’ is great example of an Advocate.

    clip_image002

    From the user’s side (either an Advocate or an everyday Community Member), the index allows the community to evolve efficiently, so that it provides a high level of utility to as many members of the community as is possible.  Using the index, it is easy to change what doesn’t work and enhance what does.  From the user’s perspective, the net result is a very positive and sticky experience.  The user wants to come back.  They want to use more of the products and services the brand offers.  They want to advocate about their experience.  They have greater affinity for the brand.  They have fun and enjoy the experience.  The community shifts from a ‘want’ to a ‘need’. 

    This activity isn’t limited to just the four walls of the community either.  The content that the community members generate is aggregated and then syndicated out across the Internet, impacting the awareness of millions, even tens of millions who encounter this content; all of which is in the voice of the customer, is first hand and genuine.  Using the Performance Index, even sentiment, reach and impact can be measured.

    Granted, all of the content isn’t perfectly flattering.  However, if it is a well performing community, change is a constant and dialogue is two way.  Brand bombs (negative content) is a rarity that more often than not is effectively managed by community members themselves, not the brand.  Good brands don’t hinder negative content, they learn from it and act on it.  Community members help each other have a more enjoyable experience with something they have a shared interest in.  A brand’s job is to listen and learn first.  Then act. 

    That is why measuring performance is so key, so you know how and where to act.  Guessing is largely removed from the equation. 

    In part three of this blog post, I’ll reveal how Community Performance Indexing works.

  • 05.13.2009

    Community by the numbers part one

    Where performance is measured, performance improves. Where performance is measured and reported, the rate of improvement accelerates.

    -Thomas S. Monson (1927 -  )

    If you can’t measure something, is it worthwhile? 

    What would the NCAA Final Four be if they didn’t keep score (heck, would there even be a Final Four?!)

    Would you ever diet if you never weighed yourself and only wore clothes with elastic waist bands?

    Does performance matter if no one cares?

    Performance is important.  But what is it?  Performance is benchmarking (having something to compare progress against), a method to actually measure or track changes and a desired outcome.  Pretty simple actually.

    Think about performance in business terms.  As a customer of some brand, if you have a problem and call their help line, are disconnected twice, on hold for 20 minutes and find out when you reach someone they can’t help you, how do you measure that brand’s performance?  Is this brand experience worth it?

    As an employee, what if you were 3 years behind on the development of a new product and didn’t track against any budgets?  What if you didn’t track pricing or quality? How would your company’s performance be measured?  Would you be competitive?  How would you know?

    Lots of brands have communities.  Some are better developed than others, but how are these communities performing?  Does it matter?  And to whom?

    Well, it does matter.  It should matter to a lot of people…people both directly and indirectly involved in that brands community.  Community can have a HUGE impact on a brand and its underlying operational components by driving results in three categories:

    1.  Advocacy (both WOM and product/service consumption)

    2.  Feedback 

    3.  Support 

    The problem is that some businesses don’t seem to understand the importance of community. They treat it like….an after thought.  Outside of three people in the marketing department, community is something that isn’t even on the radar screen. Is community as important as a patent? How about a state of the art distribution center?

    For most businesses, who some operational experts call ‘laggards’, community is only viewed as another channel to push branded messaging. Other businesses, which operational experts call ‘innovators’, community is part and parcel to everything they do.

    Below are two models. Which one looks like your company? Depending on how you answer (be honest), community is either a ‘thing’…marketing function and provides you limited value but one you can draw a nice neat box around.

    1

    Or instead, community in some form or fashion permeates every aspect of your business. You can’t easily define where it starts and where it stops. It just is. It’s organized and it’s everywhere.

    2

    If you say, “hey, this sort of looks like what we do”, you work for a leader. An innovator. It doesn’t matter whether you do it perfectly or not (nobody does), your business is a high performer.

    The bad news is there are lots of laggards and worse, most of them don’t want to change.  The good news is innovators want to get better and some laggards just need a roadmap and some encouragement. 

    So my question in this installment (one of three) is where does community reside in your organization? Are you an innovator or a laggard? In either case do you want to improve your organization’s performance?  Community is a strategic asset if deployed properly. 

    In part two of this installment I’ll focus on how to measure community and then what to do with the numbers.

  • 04.29.2009

    The Right Advocate at the Right Time

    Advocate identification entails more than scrubbing a customer database for demographic and transactional information. Quite often my team must defend the notion of the right advocate at the right time, yet it’s hard to resist settling for the easier quantity over the more challenging quality. The end result usually pays for itself, so keep in mind the old adage: ‘You get out what you put in.’

    The art of identification is really about finding your most passionate and loyal customers, and putting them at the center of your outreach efforts. All customers are not created equal. If you don’t look for specific behaviors they are hard wired to possess, you’ll find it challenging to build a powerful WOM and communication channel.

    The first step is to create an advocate profile. Think about it in terms of baking a cake. Segmenting consumers by the products and services they use is the base, or flour. Flour is an important component, but alone doesn’t give you a cake. Add some sugar and chocolate, time it right, and now we’ve got something. To avoid a recipe for disaster when identifying advocates, you need the right mix of demographic targets, transactional data, brand loyalty, behavioral traits and attitude. Ever see the commercial where the mom mistakenly served a cake made with salt instead of sugar? If you didn’t, the end result was a toxic mess, and a bunch of disappointed kids.

    How does this analogy relate to community? Advocates are the heartbeat of any healthy and vibrant community. Engaging with them at the right times, during community design or new product launches for example, will gain you key insights and invaluable feedback. This is why identification is so important. We have seen advocacy programs where salt was used instead of sugar, and the environment proved to be just as toxic. One community example jumps to mind. A private council of advocates was hand selected to engage directly with the brand. The council recruited another community member, who on the surface seemed like a good fit, to participate. Unfortunately the program became this individual’s soapbox, and negativity spread like wild fire.

    We use this example to educate our clients on the importance of the right advocate at the right time. In future posts we’ll explore the art of identification and all its nuances. Always remember though, it starts with the proper mix. If not, you may be serving up a cake just as toxic, leaving your customers with a bitter taste versus a world class, melt-in-your-mouth delight.

  • 03.10.2009

    Fuzzy Math

    This is going to be a short and sweet blog post, so relax.  You’ll get through it in 30 seconds.

    Today Brand Week posted an article titled ‘45% of CMO’s See Agencies as a Time Suck’.  Okay.  Two sides to every story.  Although I don’t see it as my job to defend ad agencies, sometimes clients don’t always give clear direction.  People are overworked, understaffed and the data available to work with isn’t always the best. 

    That said, the article goes onto state that only 21% believe they are getting the best work the agency is capable of.  Wow.  That reminds me of the Congress approval rating.

    Worse yet, Jupiter (study publisher) states that a whopping 89% of CMO’s are under greater scrutiny to show…and prove results.  Eighty nine percent.  Couple this with the fact that only fifty percent of marketers and agencies say that delivering ROI is their number one priority.

    Let me repeat this.  Eighty nine percent of CMO’s are under pressure by THIER bosses to demonstrate hard, measurable results.  Only 50% of agencies make this a priority.  Twenty one percent of CMO’s think they are getting value for their dollar. 

    As my friend Jonathan Salem Baskin (Dim Bulb Blog) said to me in an email,

    umm...50% of marketers see their #1 purpose as delivering ROI?  what the hell are the other half doing?  this is frightening stuff...

    Results matter.  I get the fact that creative is difficult to quantify.  However, strategies and tactics can be measured and everything should have a business result.  If it doesn’t, what’s the point?  Last time I checked, most brands didn’t set out to be (or today, want to be) not-for-profits.

    As a CMO friend of mine remarked to me, “When I walk into the board room to present my results, I face a bunch of people who care about only one thing.  Results.  Hard, measurable results.  Full stop.  What delivers and can prove the right results is part of the solution.  What doesn’t is part of the problem.  Period. End of discussion.”

    Something worth keeping in mind.

  • 02.27.2009

    Should social media rewrite business rules?

    There is an interesting question.  First, you have to put a definition on what social media is.

    This might seem like a silly thing to do for some, but I imagine if you ask the CFO of any business (big or small) what their definition of Social Media is, you’ll get a funny look like, “Huh?  What?  Why are you wasting my time with that kind of question?  I have all this red ink and you want to talk about what?”

    So here it goes.  Social Media, defined in part within Wikipedia:

    “Primarily, social media depend on interactions between people as the discussion and integration of words to build shared-meaning, using technology as a conduit.

    Social media utilities create opportunities for the use of both inductive and deductive logic by their users. Claims or warrants are quickly transitioned into generalizations due to the manner in which shared statements are posted and viewed by all. The speed of communication, breadth, and depth, and ability to see how the words build a case solicits the use of rhetoric. Induction is frequently used as a means to validate or authenticate different users' statements and words. Rhetoric is an important part of today’s language in social media.”

    Hmmm.  Sounds like a text book entry (under GAAP Principals), so let me translate.

    “People sharing insight, ideas, know how and content with one another using a variety of content mediums that reside on the Internet.”

    There.  Social Media in a nutshell.

    Why is the reality of social media activity important and why should our fictional CFO care?  For that matter, why should anyone else care besides the marketer? 

    Why?  Because social media and the knowledge that can come out of it provides the business a significant strategic advantage.  So who else should care and why?

    Well, here are a few, other than our CFO and the CMO/marketing team of course.

    1.  CEO.  Social media activity is an accurate barometer of brand equity and corporate reputation.  What social media is comprised of (i.e. what’s inside of UGC) is telling as to the company’s current profitability and future performance.  How hard does the company need to work to maintain market share?  Lots goes into this analysis but social media provides a very real comparable metric to help measure whether the company’s internal metrics are accurate and why.  Being able for the CEO to provide real insight at a shareholder meeting or an analyst conference call is important.  It’s doubtful the CEO will reference his source as a social media output, but that’s not the point here.  Social media’s underlying value is.

    2. COO.  Why?  Social media activity both internally and externally can indicate well the business and its resources are aligned within the marketplace to deliver on projections, plans and results.  Social media metrics can be compared with operational plans to see if the plans were realistic in the first place, on target or slightly off.  Social media tools and metrics can offer operators ‘real time’ adjustment indices if used properly.

    3.  EVP of HR.  Social media isn’t limited to external venues.  How engaged is your brand and your team.  How collaborative are they (or are they capable of being based on the infrastructures and culture in which they operate)?  There are some big brands that are absolutely committed to this.  One old-line brand, a leading insurance provider even makes this a metric that is presented to the board of directors along with things like net profit.

    4.  EVP of Sales.  Sales has a lot it can learn from social media.  Value proposition is best delivered from the mouths of customers themselves, as the sales department always has a primary goal-close the transaction.

    5.  VP of CRM.  Once the sale is closed, who owns the customer?  Most likely the CRM team does.  They get measured on support costs, call duration in-bound requests, churn and a whole lot of other customer-stickiness metrics.  Social media helps to deflect a lot of these costs, as well as, understand what’s driving inbound requests and churn.  Microsoft gets this.

    5.  EVP or VP or Product Development.  Necessity is the mother of invention.  If you want something to work a certain way, you create a work around.  Sometimes, understanding what those work arounds are helps teams innovate.  Sometimes, it’s just asking for ideas.  www.ideastorm.com is the obvious example.  There are dozens of others…good and bad (i.e. that work and don’t work).  Intuit works.  MyStarbucksidea.com doesn’t.

    7.  Institutional and individual investors.  Another  part of doing good homework.  What are customers saying and how well is the brand listening?  There is an old-line manufacturing truism.  To understand how well run a manufacturing company is, simply look at it’s loading dock.  A neat and orderly loading dock says the business is on top of things.  Broken pallets, trash and disarray speaks volumes,  You’d be surprised how many savvy investors who bet (or did before the meltdown) on manufacturers did this kind of homework.  Social media can provide the same sort of insight if approached correctly.

    Here’s a proof point.  This factoid was provided by my friend and colleague Barak Libai, professor at Tel Aviv University and Advisor to WOMMA and is taken from a good book by Gupta and Lehmann on "Managing Customers as Investments"  and relates to Cox Communications.

    Untitled

    You can see that the defection rate for customers who use the product in a wider way is much lower. Much of this wider use comes from formal and informal social media activities (people helping, showing and spreading the word.  This can translate to double the lifetime value!  

    Double…that’s a lot of coin, my friend.

    Can social media rewrite business rules?  I am here to tell you that that it already is.  So where are you?  Ahead of the curve or behind it?

  • 02.23.2009

    Social networks: No ‘Net’ new?

    In a blog posted today by Spike Jones of Brains on Fire, titled

    Social networks are not what you think they are

    Spike shares some interesting facts that come out of a recent report conducted by Noshir Contractor,  Jane S. and William J. White Professor of Behavioral Sciences at the McCormick School of Engineering and Applied Science at Northwestern University.

    This group of researchers are studying nearly 60 terabytes (keep in mind 1 terabyte roughly equals 220 million pages of information) of data from EverQuest II (a popular Massive Multiplayer Online Games or MMOG) and interviewed 7,000 players of the game (which makes this one of the largest social science research projects ever performed).

    Here’s an excerpt.

    “Even though players could play the game with anyone, anywhere, most people played with people in their general geographic area.

    “People end up playing with people nearby, often with people they already know,” Contractor said. “It’s not creating new networks. It’s reinforcing existing networks. You can talk to anyone anywhere, and yet individuals 10 kilometers away from each other are five times more likely to be partners than those who are 100 kilometers away from each other.”

    This reinforces something that has started to bubble up to the surface and that is: social interaction is social science, not computer science. 

    Let me say that again.  Social interaction is social science, not computer science. 

    Technology, like the folks at BASF like to say doesn’t make it,   it just makes it better; or more far reaching or more efficient.  Which ever you’d like.

    MMOG's and even social networks like FaceBook and Linkedin, even specialty ones like MyShutterspace.com, match.com allow users with common interests to interact and organize around those shared interests and points of view. 

    Many drivers of points of view and even worldviews are fueled by geographic social trends.  For instance, if you go to Berkley, you may be a bit more liberal than say someone who attends say Texas Tech.  You are attracted to attend Berkley for the same reason; a more liberal thinking environment where you feel more at home to openly share your ideas an experiences without fear of reprisal. 

    Since 99% of people are social creatures, we crave face to face interaction, as well as the same thing: to be accepted by peers.  Therefore, online social networks and interaction is an extension of what we already do…naturally. 

    I have seen nothing in the research or programs I know of or am involved in that contradict this general human behavior.

    Online environments as this study shows are extensions and amplifiers of social networks, not proxies.  I am posting a blog on this and will link to your post.

    So what’s the aha here?  It’s the fact that you should not get caught up in the web 2.0 and social networking hype.  Employ the same planning and customer engagement best practices you would in a web 1.0 or a pre-web world. 

    It’s social science, not computer science!

    Remember the New Economy replaced the Old Economy cry?  Remember, we were ‘reinventing’ everything.  Didn’t turn out that way.  It was just the economy (although we may wish we had a new economy.)  People work the same way.

  • 02.23.2009

    M&M Post Script

    I received a comment from Deb Eastman, the CMO of Satmetrix regarding my recent blog post.  Her comment is below:

    Steve, I want to clarify a miserception in your original post, M&Ms is absolutely NOT faking customer engagement.  This site is hosted on the Satmetrix Community platform and MyM&Ms used our technology to collect input from highly engaged fans.  However, Emma is an employee of myM&Ms and was responsible for engaging consumers to provide feedback on how to improve their products and overall customer experience.  They made several changes to their packaging, allowed consumers to put their faces on M&Ms and improved their customer experience based consumer input.  Consumers got the products they wanted and M&Ms increased loyalty in the process.  Everyone wins. 

    It's unfortunate that budgets are currently impacting their level of engagement, but I expect we will continue to see myM&Ms engage with consumers and improve their products & services based on customer feedback.

    This brand listened and acted on customer feedback.  I think most would classify this as genuine customer engagement.

    Deb Eastman, CMO

    Satmetrix

    I would like to thank Deb Eastman for her point of view.  Since the M&M site was hosted by Satmetrix, they cannot, like many professional marketing service organizations, ensure that their counsel will be either listened to or acted upon.   Like the physician who counsels their patient to stop smoking, they simply can’t make it happen, even if it is the right thing.

    Satmatrix is a well respected organization and should be applauded for fine work we see from them across the marketplace.

    Deb points out that M&M’s implemented a number of key initiatives that came out of customer feedback.  This is great, but is only a start.  True engagement and subsequent performance results comes from:

    1. Actively listening to the customer
    2. Providing multiple ways for the customer to engage in this process
    3. Organizing what was heard
    4. Acting on this insight, across the business (beyond just the marketing group responsible for the initiative
    5. Reporting back on what can be acted on, what can’t and why (note: Intuit does this with great success.  Intel is starting to do this in partnership with their hardware OEM’s.  Heck, even small firms have seen a more holistic approach allow them to effectively compete against much larger competitors, as well as, remember where their core advantage lies.)
    6. Providing active, intrinsic rewards for involvement.  Note I said intrinsic rewards, not extrinsic.  That’s a slippery slope.  Intrinsic means:
      • Thank you’s
      • Spotlighting users
      • Articulate how their idea was integrated into the process, service or product
      • Tapping them as SME’s (subject matter experts)
      • Engaging them as mentors
    7. Systematizing the process of customer engagement as part of the culture of the business, rather than a narrow program.

     

    There are also some helpful tips for engaging influential customers (such as M&Mmbassadors) at WOMMA’s website.

    Now, I am NOT saying that M&M has or has not done any of this.  Who knows, there may be a lot going on behind the scenes.  I’d love to hear from them. 

    Moreover, I’d love to see this program come back…in full force…bigger and better than it ever was.  Since I am a fan of M&M’s, count me in.

    Lastly, thanks to Deb at Satmetrix for her comments as well.