I love a bargain......But please, enough with the emails!

Lately every time I open my emails I am flooded with deals from LivingSocial, Spreets, Cudo, Ouffer and Groupon. What used to be a daily email with a pretty good deal has since become multiple emails everyday with multiple offers and little difference between the various deal sites.

I know, I’ve done this to myself....I love a bargain and used to look forward to an offer that would catch my attention. But now the offers seem to be the same thing: teeth whitening, an overseas holiday, yoga classes, massages etc. ect. It is at the point now where I almost always delete them all without opening....something like junk mail for the compulsive dealer.

In a recent issue of the Marketing Mag Joe Barber, founder of Third Screen Media a mobile marketing focused company, shares his thoughts about these group buying discount offers. The title of this article is “Daily Deals – Not the ‘Cash Cow’ it used to be”.

I wanted to share the first two paragraphs, I think this pretty much sums it all up:

“Did you blink and miss the whole daily deals rise to stardom and now wondering what happened as the segment enters the twilight phase? Just further evidence that the mobile industry is fast paced and changing every hour.

Recent studies including one by Kantar show a decline in traffic for both industry leaders Groupon and LivingSocial. Combine that with Facebook dumping their daily deals altogether and Yelp Deals downsizing and the tsunami of daily deals is entering a new phase as quickly as it rose.”

To me, this is a fantastic summary of the state of play. First there were only a few online deal providers and then there were heaps and now there are too many and nobody cares about them anymore. It makes we wonder about the businesses and media outlets that backed these websites. There was a significant investment in traditional media advertising to get people to register and purchase. And now, I am sure I am not the only one who loved these deals and now deletes them without a second thought (but can’t be bothered to unsubscribe...lazy I know).

For businesses going to Spreets etc to sell an offer there is a big investment of revenue generated ( I think it can be up to 50% of total taking being kept by the deal site) and what value do you really get? I actually think it is a serious threat to the idea of customer loyalty, these deals are encouraging people to shop on price and keep an eye out for the next good deal. For businesses like hair salons where a loyal customer base is gold I see these deals really affecting their client base.

Perhaps the future of these deals is where Barber sees opportunity:

“Deals need to be more localised and immediate and need to be moved away from the ‘soft cost’ services market of discretionary spend items like haircuts, spa treatments, restaurants and holidays and start delivering deals on staple goods like groceries, clothing and even electricity!”

Do you see a future for daily deals? Is Barber on the money or is there another way deals could find a second life?

The Social Media Leaders and the Ones Left Behind

In the October issue of the Marketing Mag, Tim Barnes (Head of Marketing, Sony Ericsson) shares some insight into the digital and social media strategy for Sony Ericsson, in particular he talks about the importance of Facebook. This comment sums up where Tim is coming from:

“In some ways, it’s hard to imagine life as a marketer before Facebook. Two-way dialogue with customers is no longer a pipedream; it’s an every-day reality. As a channel, Facebook enables us to do a great number of things that weren’t previously possible.”

He also talks about Facebook offering more flexibility and responsiveness in a localised market, enabling the establishment of a local identity and voice for the brand. Some of the applications Sony Ericsson has made in relation to social media are:

-          Learning from customers and fans

-          Support and service channel

-          Co-marketing programs with partners, looking for opportunities to cross-pollinate communities and create awareness for new products and services to mutually benefit those involved

-          Integration through owned media channels (e.g. Facebook ‘like’ button across the brand’s website

Barnes suggests that no one has mastered Facebook as a marketing channel and that online communities are living and breathing entities in which change is the only constant. His suggests that the ‘social layer within the marketing mix’ is emerging as a real battleground for brands. He concludes by saying “At Sony Ericsson, we will be watching and participating in the constant evolution of the social media space.”

Given that Sony Ericsson is a strong brand within the technology and communications sector, it couldn’t afford not to stay at the forefront of social media marketing. Things in this market are quickly evolving. There is a real danger of being left behind.

However, there are so many organisations and entities in which change is slow and infrequent. I am sure there is a real tension in government agencies, institutions and NGOs where decisions are made over extended periods, where there is a need to meet reporting standards and where detailed investigations are required before action and progress can be made. I feel that it will be here in these sorts of industries and organisations where we see social media strategies being at least one step behind. To make social media marketing work in these environments there needs to be a fundamental shift, a change of culture and a desire to embrace the competitive advantages that social media can offer.

I feel that there will be a continual push uphill for those wanting to use social media in situations deep in bureaucracy and covered in red tape. How long do you think it will take for social media to simply be part of the marketing channels available as opposed to seeing it as the great unknown?    

Maccas - Yes but No

Marketing Mag (October 2011) has an interesting article from Jo Macdermott, Beware the fake marketer. Number five on a list of 10 items on her list that a ‘real marketer will tick all the boxes’ is:

“They will have discussed social networking as a marketing tool”

This thought appealed to me, especially after seeing a few ‘me too’ campaigns where social media is almost just tacked on the end of the wider activity. In some ways what we do via social media, like advertising, is more like an adaptation of traditional media. However, the rich and engaging communication we can have with consumers via Facebook, Twitter, You Tube etc. has no equal in the offline environment (I must attribute this gem to something else I read somewhere too!).

Much discussion has been had about social media advertising – some predict it will decline and others see this as an area of significant growth. What happens here in the quickly evolving landscape that is social media remains to be seen.

One campaign that comes to mind at the moment as being one that has had a good try at using social media as part of the grand plan is the Macca’s Back By Popular Demand activity. The Facebook site is great, heaps happening like polls, comments questions etc. Offline activity like the in-store competition is integrated, consumers are being asked what they like about the new menu items. However, I had a better look at some of the question put out there by Maccas like :

Who's tried mixing up our new McFlurry flavours? We've heard that Caramel Sauce with Double Choc Fudge is a treat! Any other fave combo's?

This question was asked two hours ago and so far has generated over 160 comments including:

I think this really highlights the need to have a really well-resourced social media team if the aim is to use Facebook and other platforms to add value to the campaign. Not only has there been no acknowledgement of the suggestions, there is no response to the comment about ‘condom flavoured’ ice-cream (reference to a young child putting a used condom that they found in a Maccas playground in their mouth).

I’m actually a fan of what they are doing here – the TVC references Facebook, radio promotions encouraging people to go to Facebook to share what they would like to ‘bring back’ -  it is a well constructed campaign that uses each element to complement the whole activity. It is a great example of how social media can be integrated into the marketing initiatives of an organisation. I actually planned to sit here and complement this activity and it was only after looking at things in more detail that I found this disturbing (for all involved) comment.

So, while it is still a good example of how social media can be used for marketing advantage it now also stands as a good example of how small things can really derail the wider activity and an example of how, if you are determined to make serious advances in social media marketing you need to ensure you have the resources to maintain momentum......not responding to people and thanking them for answering their question or not thanking people for participating is bad but.....letting a comment like this sit there unacknowledged is worse.

Facebook Advertising - Is it a Case of Best Before or Use By?

In the September 2011 issue of Ad News, News Digital Media’s commercial director, Tony Prentice, is reported as saying:

“Facebook will last as a social network. My personal view is it won’t have advertising longevity”

He proposes an outline of Web 3.0, in which consumers will move back to the familiar and back to the brands they trust. According to Prentice Facebook will face “wear out”. He says that Web 3.0 is “about cutting through the noise and figuring out who you can trust. My personal view is Facebook is about adding to the noise, not taking it away.”

As part of the same article Leigh Terry, CEO of OMG, states that Facebook as of now is performing – “Facebook lives and dies by its relevance...If the ad is relevant on Facebook, it works.”

So, what are your thoughts on Facebook advertising? Do you agree with Tony Prentice and support the idea that Facebook for advertising has a limited shelf life? Or, like Leigh Terry, do you think that as long as advertising through Facebook is relevant to the user it will continue to be a strong means of SMM activity?

Social Media & Two Iconic Auto Brands in Australia - Not a Photo Finish

 I’ve been doing a little bit of reading about various brands that are using social media as part of their marketing activities. The guy responsible for social media for Ford (in the states) Scott Monty, seems to do a bit of work as a key notes speaker at various conferences and also has his own social media marketing blog (the first search result under the sponsored link when using Google to search for ‘social media marketing blog’ which is impressive).

A lot of what Ford in the states is doing is recognised as working well and it was ranked number 10 in the Top 10 Corporations that have done the best job of using social media in North America (Abrams Research ‘Social Media Survey’, Feb 17, 2009). If you are interested in having a look at what they are doing Think Tank Media has one of Scott’s presentations available to view.

With the sound of race cars zipping along in the background (V8 Supercars on TV I think) I thought I would have a look at what Ford and Holden are doing locally via Facebook and Twitter.

These two bands are iconic, both have passionate enthusiasts (it seems that a lot of people are either ‘Ford” people or ‘Holden’ people) and so have a great opportunity to use social media to build a strong community in the online world like they have in the physical world.

Ford Facebook – Key Points

-          5,794 fans

-          References to events like Frankfurt Auto Show

-          Integration of media coverage

-          Images used well, not too many videos

-          Some comments about off shore production are not answered

-          Ranger Challenge Voting: competition where visitors can watch a selection of videos of people testing the new Ford Ranger and then are able to vote for their favourite tester to win surfing lesions and fuel cards

Holden Facebook – Key Points

-          23,266 fans

-          Interactive vehicle showroom

-          Functionality to book a test drive, get a brochure and contact a dealership for a quote

-          Featuring Holden Racing Team updates

-          Links to relevant news items

-          Great use of images and video content

-          References to significant events and occasions like Sam Stosur’s win and Fathers Day which keeps the page current

-          Virtual Ute Muster: competition where ute owners post a photo of their vehicle which is judged and the winner gets tickets to the Deni Ute Muster

Ford Twitter – Key Points

-          472 followers

-          Official responses identified by initial

-          Promotion of Facebook Ranger  competition

-          Offers direction to people seeking product information

-          Good use of platform for customer service

-          Integration of media coverage

-          Links to event information e.g. Frankfurt Auto Show

-          Links to influential bloggers

-          Retweeting of high profile tweets e.g. Michael Klim

-          Retweeting of positive consumer comments

Holden Twitter – Key Points

-          3,223 followers

-          Current updates: last post was yesterday (17/09)

-          Links to Facebook for photos

-          News about new model launches

-          Personal responses to customer service issues

-          Integration of media coverage and news links

-          Communications about Holden’s participation in events (e.g. Deni Ute Muster)

-          Recognition of events of national importance (e.e. Sam Stosur’s win)

-          Interactive engagement: Virtual Ute Muster competition through Facebook

Having a look at what these brands are doing on line it appears to be apples for apples – competition, photos, comments, customer service, regular posts etc. The quality of the content and frequency is pretty well evenly matched.

The most obvious point of difference is the number – Holden have a much bigger social media community. With the recent Facebook Friends campaign for the new Ford Territory I would have thought that there would be more integration of social media across Ford promotions.

Just the other day I received a Ford DM piece in the mail (snail mail) which had info about a few of the vehicles, including the Territory, and a letter encouraging me to get in touch.....I couldn’t find a mention of any social media engagement opportunities for Ford customers and potential customers.

Surely this can’t be the only reason why Holden are miles ahead in terms of the numbers of people participating in these brand communities. Have you got any insight as to why there is such a difference?

Opinion Leaders – Who Says ?

Opinion leaders are a valuable resource to organisations seeking to increase credibility and public profile through third party endorsement. Opinion leaders are also important to driving word of mouth with is an extremely effective means of communication but it can be hard to control and direct. By identifying opinion leaders within target markets an organisation can seek to direct their promotions directly at these key people with the hope that this message filters down to the broader market.

Social media in many ways has amplified word of mouth; giving it more reach and speed that ever seen before. An interesting examples of where social media has be used to identify opinion leaders and tactics have been implemented to generate promotional value from these opinion leaders is the MAC Cosmetics Bloggers Obsession.

The Bloggers Obsession campaign involved 10 well known beauty bloggers in the United States coming to the M.A. C. laboratory to learn about the product development process. As part of this visit, the participants took an idea or an inspiration and were involved in the development of a new product which captured the essence of what they wanted to see sold in stores. These bloggers then shared their experiences with the broader M.A.C. community through You Tube. The video shows each blogger participating in the development process as well as talking about their inspiration (M.A.C. Cosmetics, 2011).

This is a great example of how opinion leaders can offer value to marketing efforts as well as highlighting how social media is creating an environment where consumers and community members are now, more than ever, true participants in the creation of value for organisations.

Have you been involved in any opinion leader group for a brand or have you seen this work well for another organisation?

Customers and Community – Same Same?

I’ve been doing a bit of reading of late about using social media as part of customer relationship management (CRM) strategy. The term ‘social CRM’ is used to describe the integration of social media technologies like blogs, wikis and customer feedback loops, into CRM strategies. However, while CRM looks at a group of customers, it might be more appropriate and valuable to focus on social media marketing in the context of online community relations.

At the risk of sounding to academic for a Sunday, I came across an interesting article by Lawrence Ang (reference at end of post). A couple of points that I thought were interesting:

Ang suggests that ‘social CRM’ may be counterproductive because:

1.       Users of social media are not necessarily customers of an organisation; likewise, not all customers of an organisation use social media. People who use social media share something in common – either in friendship or mutual interest....there is nothing commercial about such relationships

2.       In CRM organisations know their customers intimately. However the same level of intimacy does not exist between organisations and users of social media. This means is it not possible to apply sophisticated strategic, analytical and operations tools of CRM to social media data

3.       In CRM the emphasis in on building a business relationship with one’s customers, as exemplified by the notion of one-to-one relationship marketing

In response Ang proposes a model of A Community of Connected People (CoRM). The four pillars of this model are connectivity, conversations, content creation and collaboration.

Social networking has created an environment where people can form virtual communities based on their interest as well as the brands and products they like. These communities offer an organisation a huge opportunity – readily available access to consumer insight. Through monitoring social media platforms and participating in dialogue in virtual communities, organisations can get a better understanding of what their consumers want, what they think about the brand, how they view the competition and so on.

So, do you think that there is room for social media in CRM? Or do you agree with Ang and feel that there needs to be a totally different approach to building relationships with communities rather than treating most people like consumers?

Ref: Ang, L. (2011) Community relationship management and social media, Database Marketing & Customer Strategy Management, Vol. 18/1, 31-38