MarkSchaefer

Why so much research about Twitter is flat-out wrong

Every week it seems there is some fresh research establishing that Twitter is irrelevant to businesses and/or brands. Bloggers gnaw endlessly on reports dismissing the marketing possibilities of micro-blogging, calling for the death of Twitter.

I’d like to suggest these debates are largely meaningless because so many of these reports are hopelessly flawed. I’ll demonstrate this point by asking you a simple question:

If you took a survey asking you to name the brands you follow on Twitter, would you name me?

I’m guessing that you wouldn’t, because you relate to me as a person and possibly even a friend, and yet I am certainly also a personification of my company and its “brand” on Twitter. I would be overlooked in any research report looking for how people relate to “brands” on Twitter, wouldn’t I? And lots of other companies would be missed, too.

For example, Amy Howell is the personification of Howell Marketing of Memphis, but I am following Amy because I like Amy. Megan Parker is paid to be a voice of GE on Twitter. I love her irreverent spins on corporate news and sometimes don’t even connect that in fact, I am following one of the largest companies in the world. Everyone knows how fun and effective Chris Brogan is on Twitter yet make no mistake that he is the personification of his growing new media fiefdom. When you follow Chris, do you even think about him as a B2B company?

Here’s the deal. If research focuses on the benefits of Twitter for “business-to-business” or “business-to-consumer” it’s doomed because this channel is ultimately about P2P — person to person. In fact I would suggest that with few exceptions, ONLY “personal” brands thrive on this platform. I can’t imagine following a bottle of beer or a restaurant chain on Twitter yet I would eagerly follow real marketing professionals from those companies who can enlighten, teach, and entertain me.

And that’s why so many of these research reports are missing the point. They’re asking the WRONG QUESTION. In fact I think it would be very difficult to measure the complete business value of Twitter across the social web quantitatively — many of the successes are “stories” of connection or qualitative data points. But I’m sure companies will keep trying to reduce Twitter to a list of survey questions because it’s easy to do, it’s a hot topic, and it’s a way to get their name at the top of the wave for a moment. And so many of these reports are being rushed to a data-hungry blogosphere without regard for statistical validity!

So, how many of the individuals I follow on Twitter represent brands or companies? Just about every one of them! And THAT’S the point!

Does this make sense to you?

Mark Schaefer

How to create a content marketing plan — without any content!

When somebody talks about “content marketing,” they’re really talking about “content engineering” — scientifically optimizing documents such as blogs, case studies and white papers to create search engine results and sales leads.

This can be an extremely complicated, time-consuming and expensive proposition! So I started thinking about this in the context of my friends and small business customers who simply can’t afford that kind of effort. It led to this idea: micro-content, or marketing content when you don’t have time to produce content!

Let’s examine ideas about micro-content that even a time-starved business owner should be able to master in 15 minutes a day …

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Can the social web play a role in customer retention?

The recession has culled the weak from the pack but it’s likely that your competition is still fierce. Is there a way to attract and retain B2B customers without lowering your price? And is there a way to leverage the social web to keep your customers … even in the extreme case of a commodity market?

Holding onto customers in a buyer’s market is one of the most extraordinary challenges in business, especially if you’re selling a commodity (Commodity = purchasers view suppliers as identical on all factors but price, i.e. common coal, steel, or chemicals).

There is usually only one winner in a commodity market — the lowest cost supplier — except in periods of high demand when supply falls short. But there are ways to lock-in customers even in ugly downturns. One strategy I used throughout my career was to create a systematic plan to raise switching costs. By this I mean create obstacles — through valuable benefits — to prevent a customer from leaving you for the competition.

A process to retain customers

This process starts with getting out to your most valued customers and listening. And I mean REALLY listening. We would sometimes have half-day sessions to explore un-met and under-served customer needs that would …

  • Improve their competitive position
  • Enhance profitability or productivity
  • Eliminate waste
  • Lower risk
  • Increase speed to market

One strategy that uncovered potential points of differentiation was to ask customers what they hated about their job. This always seemed to get people to open up about an idea we could implement to make their life easier! Some other potential approaches to this challenge:

  • Solve a customer problem (reporting, data-gathering, analysis/testing) that might add slightly to your cost, but establishes enough value to create a hurdle to switching
  • Create a specialized service that would be difficult for competitors to match (we did a specialized truck-return recycling program, for example)
  • Work actively with customers to influence specifications and terms that could advantage my company or disadvantage a competitor
  • Focus retention efforts on most profitable customer locations
  • Look at eCommerce integration options to enhance retention

Notice that all of these ideas go beyond the basics of price, quality and service. Those aren’t strategic initiatives. Those are competitive tablestakes these days.

When customers don’t play nice

This process of listening, reacting and renewal must be continual and integrated through an effective CRM system. But it doesn’t always work.

In the middle of all this great creative marketing work I just suggested is another dynamic. Purchasing may not want you to implement your ideas – even if there is an advantage – because it reduces their flexibility with suppliers. They may even force you to hand over your innovations to competitors. I witnessed this in the automotive market in the 1990s. This ended up hurting customers because when there is no reward for innovation, innovation ends.

Now what about the social web?

Is it possible to develop some distinct value through social media that could create a switching cost? My answer – probably not. The social web might be a tool to listen and tune-in to possible innovations and market needs but I don’t see how social networks can create sustainable switching costs in this part of the sales cycle. It’s free to everyone and easily duplicated by competitors.

However, I do think you can create PRIVATE information networks and communities that create distinct value. For example, one idea that worked really well was a private, unique market information hub for customers who remained in our top tier in revenue.

What are you doing to hold onto your best customers in tough economic conditions? Can you think of any way to leverage the social web for DISTINCT value in a commodity market?

Mark Schaefer

Mark Schaefer is Executive Director of Schaefer Marketing Solutions and CMO of Freesource Inc. You can find him on Twitter at @markwschaefer and on his blog {grow} at www.businessesGROW.com

Can your website pass the 20-second test?

Twenty seconds.

That’s about the amount of time you have to grab a visitor’s attention on your website. To keep them there, you better have something great to say and it better be quick! There are four messages you need to deliver in those precious moments that will determine whether somebody is a sales lead or a passerby:

1) Graphic impact. Everything you do (and don’t do!) communicates about your brand. So before they read a single word, the graphic impact of your site is already going to leave a big impression. How does the look and feel of your site contribute to the story of your brand? Is it buttoned up? Is it bold? Is it inviting?

2) The big deal. So the graphic impact has held their attention long enough for them to begin to read. Way to go! The first thing you need to say to your visitor, powerfully and succinctly, is “I am different.” Why should the reader go to the next sentence? Tell them! Are you the biggest, boldest, newest, safest, most innovative, best value, most experienced, wisest, or the most colorful? What are you, and why should they spend their time here rather than going back to play Farmville?

3) The unmet needs. Now let’s get very specific. Next you need to tell them how you serve them uniquely. What needs do you meet? This is different than explaining what you “sell.” Customers don’t buy what you sell. They buy what they need and want. Explain what problems you solve for them. For example, every caterer delivers delicious food. But what customers really WANT is a worry-free, memorable occasion that won’t break the bank.

4) What next? OK, you have their attention ever so briefly. Now give them a reason to stay on your site to learn more. This is commonly known as the call to action. Ask them to call, respond, or register. Offer them a free white paper, menu, trial offer, consultation, podcast, eBook. Ask them to view your portfolio, blog, testimonies, case studies. Create another touch point between you and this sales lead. Don’t let them go quite yet!

And really, that’s it. There’s not much more you can do in 20 seconds to give yourself a shot at creating a sales lead out of a visitor. I’m sure you have your own ideas, too. Please leave a comment with your own ideas, problems and questions!

— Mark Schaefer

Mark can be found on Twitter at @markwschaefer and at www.businessesGROW.com

How do I increase my influence on Twitter?

A business colleague asked me this question and I figured if it was on his mind, it might be on yours too. While it remains to be seen if I have actual influence anywhere, I have undoubtedly created substantial, tangible business benefits through Twitter and the social web. So here’s my strategy. It’s very simple and I think it could probably work for anybody.

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Social media mastery is a mindset

I’ve been teaching classes on social media marketing to business professionals for about a year now and I’ve found there’s definitely a group that “gets it” and a group that doesn’t.

The successful ones keep in touch with me long after the class is over and tell me how the social web has dramatically changed their lives through exciting new connections and business opportunities. For others, I can usually tell by the end of the first class that it isn’t going to “take” no matter what I say or do!

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