Tap Today's Products and Needs with Social Media

In the coming years, social media will change an awful lot about human communications, but one thing it won't change is basic human wants and needs. This is important to understand, because the best use of Social Media is to improve and expand upon current communication needs rather than trying to invent new ones.

For example, if you manufacture hammers, you may be tempted to leverage social media to create a hammer-oriented community. Before you invest (and lose) in this strategy, ask yourself if people currently need to discuss and bond over the topic of hammers. They don't, but they may want to share "Do It Yourself" tips or brag about their home improvement projects. By focusing on the ways to tap consumers' current needs, a losing strategy can be turned into a successful one.

Evidence that social media doesn't really change basic human communications behavior is easy to see; just look at the successful Web 2.0 sites. Some sites attempt to do it all (MySpace and Facebook) but most concentrate on a specialty, all of which fulfill long-held human desires:

• Movies: Movie lovers share favorite lines, summaries, and ratings on IMDB.com.
  
  
• Music: Music fans create and share their own music stations, rate songs, and tag music on sites such as Last.fm and Pandora. Digital mix tapes can be compiled and shared with other music fans on sites such as Mixwit and Muxtape.
  
  
• Pets: Among the oldest and most overlooked social networks on the Internet are Dogster and Catster, sites where pet lovers fashion profiles for their animals, create networks of canine and feline friends, upload pictures, and dole out virtual treats. These sites were launched over four years ago and are still going strong by satisfying pet lovers' desire to brag about their cats and dogs.
  
  
• Books: Book clubs have gone virtual and global with GoodReads and LibraryThing.
  
  
• Pictures and movies: Hobbyist photographers and amateur filmmakers have long tried to corner others to share their pictures and movies. Now, some of the most trafficked social media sites are Flickr and YouTube.

What does this mean to your brand? When seeking a foundation from which to launch your social media efforts, don't waste time thinking of new ways customers and prospects might communicate but instead consider how social media can be added to existing products and services.

Here's a good example: The social debit card. Facecard is a new debit card, focused on the tween and young adult market, which seeks to make shopping and spending a more social experience.

Like every other prepaid debit card, Facecard allows cardholders (or their parents) to add cash to the available balance. This provides a way to teach tweens about fiscal responsibility and gives them access to buying power without risking the issues associated with credit cards.

Facecard increases its appeal to today's young consumers with special social media features. The concepts are all deceptively simple, and they don't imagine new needs but merely satisfy existing ones. These special features include:

• Users who create a profile with their favorite brands can earn "prewards" from those brands. This means cash deposited to the card that may only be spent at the particular retailer.
  


• The card is integrated with the Web site and mobile tools, permitting consumers to check and transfer balances from their preferred medium.
  


• The card and web interface are designed to make it easy for consumers to transfer cash to each other.
  


• Facecard is being marketed to tweens in typical Web 2.0 ways--with a Flickr gallery, a purposely lame YouTube video, and event marketing at Bonnaroo.

Adding Web 2.0 features to a product is an excellent way to launch into social media. Facecard demonstrates how a rather mundane and undifferentiated product like a debit card can be positioned for the right market using the right social media tools.

(As an aside, I wonder if Facebook is going to have anything to say about the Facecard name. There is no association between the debit card and the social networking site, and the use of the "Face..." name combined with the social tools seems destined to cause confusion, which is of course a blinking red light for trademark infringement. I'll be interested to see if Facebook takes notice.)

Social Media and Your Most Important Customers: Your Employees

There has been so much attention of social media for marketing purposes that there is a risk we may overlook the profound impact social media may have within our organizations. Certainly using social media to create stronger relationships with customers should be a goal, but what about creating stronger bonds with employees? With social media demanding more transparency and with the potential for employees to be communicating to larger groups of stakeholders, there has never been a greater need to ensure your employees are your most loyal customers.

Customers and prospects aren't the only ones talking about your brand and organization on social media sites; once they head home, your employees are also sharing information, observations, and feelings. What they're saying online may be read by potential job candidates, prospects, customers, vendors, and coworkers. The same Web 2.0 tools that create relationships can also be used to weaken them, so the role of social media in the employer-employee dynamic must not be overlooked.

What does the enterprise need to consider with respect to social media and its employees? Here are some good places to start:

• Revisit employee communication guidelines: One of the ways brands will stumble in the new Web 2.0 world is by failing to inform employees what is and isn't permitted. If in the past 18 months you haven't taken a fresh look at your communication guidelines--and made sure every employee understands them--it's time to review and update your policies.
  
  As you study how your Communication Policy must be updated for 2008, consider the entire breadth of social media tools and information transfers that can occur between your employees and other stakeholders. Don't just give attention to what happens during work hours, but also contemplate the ways your employees may be altering perception of your brand with their personal use of Twitter, Facebook, blogs, forums, and the like.
  
  What sort of information can employees share? Can they mention their employer online? Can they share compliments? Criticisms? And what will happen if the policy is violated? Employers and employees must share a common understanding to avoid social media missteps.
  
  
• Consider what Social Media's openness means to employee relations: Even the most detailed communications policy cannot prevent employees from communicating any and all complaints and criticisms to others. Of course, we always knew that no employee handbook rule would stop people from commiserating about their employer with peers and friends, but while it was only a mild worry to know this sort of sharing was occurring among a couple people at a time, it's a very different concern today when an employee can gripe to hundreds of followers on Twitter.
  
  While it may seem the appropriate response to these risks is to clamp down on all public discourse by employees, employers need to understand that a new openness is the rule among younger employees and social media users. Organizations have the right and obligation to set policies around employee communications, but the best defense is a good offense. Giving employees reason to brag rather than complain is the best way to prevent inappropriate employee communications and to manage your employer brand in the Web 2.0 world.
  
  
• Give employees an outlet: Most companies already maintain ways for employees to share their concerns and ideas, but it may be wise to consider if your organization is doing enough. Providing the appropriate feedback mechanisms within your organization lessens the chances employees will voice their concerns via external social media sites. I know of several large organizations that have borrowed from Web 2.0 tactics and created open forums for employee feedback.
  
  How concerned should you be about discontented employees taking their frustrations outside the organization? Those in the tech field will fondly (or not) remember F#ckedCompany.com, which became the bane of many dot-com startups due to the negative and confidential information that was routinely disclosed by employees.
  
  That site is now a footnote of the dot-bomb era, but new sites are springing up to give employees a place to share. For example, GlassDoor.com, a social media site that provides "an inside look at companies from those who know them best," encourages people to share salary information, perceptions of their employer's management, and their feelings about their employer.
  
  You could (and perhaps should) block this site at the corporate firewall, but that won't stop employees from participating on GlassDoor or other online forums in their spare time. Rather than strive (and fail) to control your employees' outside activities, create the sort of employment environment that permits and rewards sharing, and you will reduce the impetus employees may feel to take gripes outside the organization.
  
  
• If you're doing things right, help employees brag: Employers might consider the same viral marketing tactics for employees as for customers. In the same way that many brands seek to turn loyal customers into brand promoters in social media, the same can be done with energized employees. Of course, this requires you have highly engaged and motivated employees, but if your organization has succeeded in creating raving fans within the workforce, why not leverage this as a social media asset?
  
  Zappos shows how this might be done--check out the Inside Zappos blog where employees give a peak into the working environment at the world-famous footwear retailer. It's easy to get a sense of the kind of workplace Zappos offers while reading about Fried Bologna Friday or how Jonathan kills exotic blue snakes in the name of fashion.
  
  A Zappos program aimed at consumers could also be leveraged by great employers. The "I heart Zappos" campaign provides customers with code they may use to place a Zappos badge on their Web site, Facebook profile, or blog. This badge declares the site owner's love for Zappos and creates a link back to the Zappos Web site. How might the impression of your organization be improved in the employment marketplace if your workers extolled the virtues of the organization in the same manner?

Social Media will have a significant impact on more than just marketing. Employers cannot ignore that the same changes occurring in the communications channels with consumers will also be happening with employees. In an age of greater transparency, the more dedicated, informed, and enthusiastic your workforce, the better the experiences created for customers and the stronger the brand.

Prevent Social Media Problems Before Exploiting the Opportunities

In the past week, we've discussed enterprise-level social media strategies and suggested initial steps that large organizations consider as they explore social media.

One strategic mistake that seems common is for organizations to seek opportunities but ignore the potential drawbacks of social media. While I am rarely the kind of person to concentrate on the negative, when it comes to social media an ounce of prevention is worth a ton of cure. Organizations should first focus on solving social media challenges before turning attention to the opportunities. Understanding these challenges is important so that your organization can 1) take steps to avoid or minimize issues, and 2) consider and lessen risks as social media tactics are deployed.

One way to avoid brand troubles was suggested in "First Four Steps Into Social Media for the Enterprise": Ensure those involved with social media execution thoroughly understand your organization's brand or brands.

Implementing Web 2.0 tactics will require that communication responsibility be distributed even widely than in the past. For example, customer service representatives who today speak to one customer at a time may tomorrow be posting information read by thousands. And marketing personnel--who currently almost never engage consumers directly--will soon be employing community managers to speak on behalf of the company to your most loyal and engaged customers.

It's important to remember how vital social media will be in creating and altering the perception of your brand in the minds of consumers. Consistency has always been necessary to build a strong brand, and in the future the number of people communicating for your brand will make consistency even more difficult. Overcome this challenge by instructing every employee involved with social media efforts about what makes your brand different and how their actions matter.

Speak to employees about the brand in practical ways. Don't show them the Brand Strategy bull's-eye, discuss the communications platforms, or bother with media strategies; instead, put attention toward the importance of voice, how the unique selling proposition is realized in their daily communications with consumers, and how their social media interactions can best reinforce the brand personality.

I am reminded of a situation that occurred years ago when I was working with a famously conservative insurance company. Their customer service division was experimenting with its first-ever email responses, and one employee was selected as part of the program due to her enthusiasm and highly personable manner. One of her initial responses to a policyholder who held several million dollars of insurance contained a smiley face emoticon: :) . While complimenting her commitment to friendly service, the employee was counseled on ways to maintain her natural warmth while still conveying the professional and conservative face of the company.

What else can the Social Media Steering Committee do to avoid the problems associated with Web 2.0 tactics?

• Brainstorm possible Social Media problems: The buzz around social media is so strong that there is often a strong inclination to immediately launch into the "fun stuff," but taking a step back to consider and prepare for the risks is a vital first step. Take time with your steering committee, advisory boards, or other groups to consider the unique challenges your organization, brands, or industry faces with social media.
  
  You may be in a highly regulated industry, which would speak to the need for more legal involvement in social media planning. You may employ thousands of hourly employees who are geographically distributed, which suggests a need for distance learning so that associates understand your brand and communications policies. Or, you may have many brands with related but subtly unique brand platforms, which would require more care in defining what is shared and what isn't as brands execute social media tactics.
  

• Plan for emergency social media response. Don't wait until blogs and Twitter are abuzz with comments about your poor service, your product failure, or your corporation's SEC investigation. Create a plan for when to respond, how to respond, and who is responsible in the event something embarrassing or threatening occurs to your brand.
  
  As any Public Relations expert will tell you, being too responsive to every criticism or problem isn't the best policy, but there are some PR storms that cannot be weathered simply by battening the hatches. Understanding before an incident occurs when action is necessitated and who will lead the response helps the organization react rapidly and in a coordinated fashion when time is of the essence.
  
  And don't make the mistake of thinking social media PR issues can be managed using traditional PR tactics. If half a million people are reading or seeing your organization's failure, you cannot successfully combat the issue with communications hidden in the "news" section of your site. Instead, make social media work for you by using the same channels that are carrying the troubling news and information; for example, if an embarrassing video appears on YouTube, consider a YouTube response.
  
  
• Assign Responsibilities for Monitoring Social Media: Creating a social media director position (or a small team) is recommended for larger organizations. Among the many reasons organizations of a certain size need one or more people dedicated to social media is for the purpose of monitoring Web 2.0 discussions. Your brand and organization will be discussed, and knowing what is being said is not only good for the corporate feedback loop but can also provide an early warning of developing issues. Assigning responsibility for social media monitoring to one person or group helps to avoid gaps or duplication of effort.
  
  
• Register Your Brand Names on Social Media Sites: Not only will monitoring social media provide a great deal of knowledge as to what consumers think of your brand, it may also prevent a brandjacking. Might someone not associated with your organization already be speaking on behalf of your brand? If you think it couldn't happen, read about Exxon Mobil's recent experiences on Shel Holtz's blog. A person registered the username ExxonMobilCorp on Twitter and has been corresponding with consumers as if she were an official company spokesperson.
  
  That drama is still unfolding, but an Exxon Mobil exec has words of warning for other brands: “We need to be diligent about what is being said about you, by you, and those pretending to be you.”
  
  As Exxon Mobil learned, anyone can register your trademarks on social media sites; no one is monitoring or preventing this from happening. In fact, in many cases, they already have. A Disney fan named Cheri Thomas scooped up the Twitter name Disney, and although she is making no attempt to portray herself as anything but an individual, the Disney organization really should claim their own name. Twitter's Terms of Service provides the basis to do so without much effort, stating "We reserve the right to reclaim usernames on behalf of businesses or individuals that hold legal claim or trademark on those usernames."
  
  Who owns your names? You may be surprised, and with the list of social media sites seeming to grow by the day, making sure your trademarks remain in your possession should be a priority. Go check your brand names on YouTube.com, Flickr.com, Digg.com, Scribd.com, Twitter.com, Facebook, Hi5, MySpace, Jaiku, Pownce, Ning, Plurk, and Identi.ca. (And trust me, that is just the tip of the iceberg!)
  

Organizations large and small can benefit from using new and developing social media tactics provided they proceed with awareness of the potential problems. Jumping into social media strategies without first identifying, educating employees about, and preparing for the problems will only undermine initial enterprise efforts.

Why Consumers Trust Each Other More than They Trust Media

On Experience: The Blog, we frequently explore the concept of trust in relation to advertising and social media.

We marketers are often aghast at how little trust consumers place in our advertising, but the loss of faith in the veracity of marketing hasn't come overnight--it's been a death of a thousand cuts. The evidence that trust in advertising is on life support is significant:

• In 2007, Nielsen surveyed 26,486 Internet users and found that more consumers trusted recommendations from consumers (78%) more than they did any other forms of advertising. The word of a stranger ranked above Newspapers (63%), Brand websites (60%), Television (56%), Magazines (56%), Radio (54%), and Opt-In Email (49%).
  
  
• A 2007 study of UK online users by JupiterResearch found that consumers were almost five times more likely to find online customer reviews helpful when researching products as they were TV ads. Fifty three percent found "Customer Reviews Online" helpful compared to 44% manufacturer Web sites, 11% TV ads, 10% magazine articles, and 3% newspaper and magazine ads.
  
  
• Online social network users were three times more likely to trust their peers' opinions over advertising when making purchase decisions, according to a March 2007 JupiterResearch study.
  
  
• MarketingSherpa reports 84% of online customer trust reviews from another customer over a critic.
  
  
• According to an April 2008 report from ZenithOptimedia, recommendations from family and friends trump all other consumer touchpoints when it comes to influencing purchases. Recommendations from family and friends led with an average score of 84. TV ads and Internet search were next, with an average score of 69 and 67, followed by magazine ads at 60, newspaper ads at 55, outdoor ads at 45, radio ads at 42, and Internet banner ads at 41.
  
  
• According to Forrester, "less than 25% say they trust even the emails they sign up for"--and this was the highest trust level of any traditional advertising channel, beating TV, radio, print, in-store, and online ad media. Conversely, when asked what influences their perception of a brand or company, over 50% cited their friends and family and just under 50% said a third-party review. In other words, consumers trust a perfect stranger's word before they trust a brand's million-dollar campaign.

The fact that marketing is losing trust and thus losing power isn't lost on marketers. A May 2008 Xchange panel of sales and marketing executives found that 84% of respondents agree that building customer trust will become marketing's primary objective. But even though there's a recognition, it seems marketers are conflicted as what to do.

Here's something that won't help restore trust: Breaking down the barriers of objectivity between third-party publishing and advertising. According to a survey by Millward Brown for PRWeek and Manning Selvage & Lee, "nearly one in five (19 percent) of senior marketers admit their organizations bought ads on a news site in exchange for a news story." MarketingVox reports that 10 percent of senior marketers say their companies "enjoy a non-verbal agreement with journalists or editors for which, in exchange for buying ad space, they can expect favorable coverage of their products or brands."

Both of these figures are higher than last year, which should be a concern to everyone--marketers, media, and consumers. Says Mark Hass, CEO of Manning Selvage & Lee, "Without full disclosure and transparency, media lose credibility and their value as an unbiased source of information for consumers. That a substantial number of marketers … engage in 'pay-for-play' year after year is even more troubling, and that much more damaging to the credibility of news media."

I wish Hass seemed as concerned about the loss of credibility to brands and the discipline of marketing and not just to media. From fake blogs to obsessive product placement to annoying banners to subviral marketing to pay-for-play media understandings, marketing isn't under attack from an external source but from within.

It isn't that social media threatens traditional advertising and marketing; it's that social media is giving a voice to and increasing the reach of consumers who are tired of being treated like pawns in a giant game of brand chess. If marketers would shift their thinking away from strategies designed to wear down consumers with a barrage of advertising and instead focused on creating value-based relationships and engaging consumers in dialog, they'd begin to earn back that trust that has been lost.