TedRubin

The “Wisdom of Friends” Powers Brand Advocacy

We are hearing so much now about how social media is creating a shift from ‘the wisdom of crowds’ to ‘the wisdom of friends’, but what does that really mean for brand advocacy?  A lot.  It’s this ‘wisdom of friends’ that brings a new “social power” to brand advocacy.

Social power (the ability to influence) used to be determined by who had the most money, was the most intelligent, or was the most effective at impressing their will on others, but that’s changing thanks to social media.  Now social power comes through connections of friends, or the “wisdom” of friends, so Advocates have much greater influence.

Numbers still hold some power, and they always will, but the strength of connection is becoming even more powerful.   Consumers care about reviews, evaluations and what other consumers say about your product, much more than advertisements… and that is great for a brand.  What they care about even more is what their friends think about your product.  One or two friends’ opinions — the “wisdom of friends” – carry more weight than many other opinions combined.

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Step aside, Aspiration… INSPIRATION is the way to go

Forget Aspiration in the years ahead… the new challenge is to give customers INSPIRATION for your brands and products.

I’m not suggesting we throw away our sales and marketing goals (aspirations), just that we give more value to the concept of INSPIRING our customers as a valid marketing tactic.

If your organization’s internal focus is on easily-measurable metrics, that’s the message that will leak out to your customers – that each customer is just another number toward your goals.  If your focus is instead on INSPIRING your customers, they will feel that difference and want to engage with your brand and your products.

I state this as a challenge because it is not easy to inspire someone, especially when the digital atmosphere is overloaded with competing messages now that brands can so easily share their messages through social media.  Your brand needs differentiators now more than ever, but if you can INSPIRE your customers, you will get – and keep – their attention.

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Fences make good neighbors

Fences make good neighbors — even in the social media world. 

 Too many brands assume that the most effective way to market in this digital age is to use social media to post and tweet as many marketing messages as possible to the widest range of potential consumers across the greatest number of social networks.  Spread the word to anyone and everyone, and hope someone believes enough in your message to create a connection and become an advocate influencer for your brand.  

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Does your product pass Social QC?

Advocates are a whole new type of quality control: social quality control.  

If your product is fantastic, when identified and energized, your Advocates will spread the word like wildfire. Social networks and traditional word-of-mouth will start buzzing with your product, and sales will reflect your Advocates’ delight.

But your advocates won’t try to get someone to buy your sub-par product, and they certainly won’t apologize for you or your product.  Don’t try to make your Advocates do that work for you, because they won’t…and they shouldn’t have to.

The sale starts with your product, not your Advocates; your Advocates are simply the reward you get for ensuring your product is and does everything you promised it would (if not more!).  Your strongest relationships are built on trust – trust that your brand is committed to producing quality products and services – and if you don’t deliver that top-notch product, that essential trust is quickly lost.  Along with the sale. 

You might be tempted to use social media to over-highlight the best parts of your product in the hopes that the disappointing parts won’t be noticed.  But even the best social media relationships can’t perform magic… they won’t make up for a less-than-great product.

However, the good news is that when your product is strong and does carry through on your brand promises, advocates, through their social media relationships, can skyrocket your product sales.  Advocates engage, word gets out, and sales happen.  As Seth Godin said in his recent blog post, (Consider the category of ‘without apology’) “People will go out of their way to buy and recommend products that don’t require an apology.”   They will go out of their way for you.  Because they want to… because your product is what it is supposed to be and has passed Social QC.

Don’t waste your time trying to hide your product flaws.  Invest your time in making a flawless product, and give your Advocates something to get excited about!

Ted Rubin

If your product is fantastic, when identified and energized your Advocates will spread the word like wildfire.

Social Media, Sleeping, and my Daughters

Social media truly never does sleep but what I find is that social media is very reactive. You have to put out to get back so at some point, usually late at night, you simply have to put a hard stop in place. That is hard for me since I am a content producer on Twitter and since I think in 140 characters naturally I am always spitting out content. Since I have come to realize that I can survive on 4 hours sleep for many nights in a row, but anything less than that does not work, I know I cannot carve anymore time out of the day, so 2am is usually my hard stop when I find myself going overboard.

Order and consistency is all in how you perceive what you are doing and how you maintain your connection to what is important. My personal brand, and who I am, is all about being responsive and creating trust and relationships. So I find the social media world, and all the connectivity it affords, a perfect medium for maintaining connection and consistency.

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Brand Survival for 2011: The socially-focused organization

It’s a whole new year – literally and figuratively.

Social media is quickly changing the way we need to think about our brands and marketing.  We can no longer expect to be successful if we just focus our marketing efforts on telling our target market how great our own brand is.  What we – the brand – say about ourselves is no longer what matters.  It’s what OTHER people say about our brand and their experience of our brand.

Brands have a challenge having effective external conversations with consumers and then truly activating them as Advocates unless they evolve internally into a socially-focused organization.

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Brands Setting Up Shop on Facebook… no big deal

Not sure why the media, and some “pundits,” are so ga-ga over this. Seems to me to simply be another place to sell stuff and nothing unique about it… think “click to buy here” or about shops offered in the past from Yahoo, etc. Shoppers tend to buy most in dedicated ecommerce environments where they are comfortable and in a buying frame of mind.

This is nothing more than an additional storefront in a place that someone is less likely to make a purchase. IMHO will not add significant sales to a retailer, but worth trying if available and cost effective. Even Facebook is not expecting much in sales or they would be asking for a rev share/affiliate fee… instead they want to simply sell more ads which they know will be profitable for them.

Ted Rubin

2011 Social Marketing Predictions

I think 2011 is going to be a very interesting year in the social media world. Generally speaking I believe the marketing world is going to start understanding better the value of, and how better to assign value to, deep consumer relationships.

Right now everyone is trying to assign a dollar value to a Facebook fan or Twitter follower instead of addressing the fact that the engagement and interaction that takes place in these mediums are incredibly important to a brand.

Building a relationship with existing and future customers is the true value and strength of social media/marketing and what will and has allowed brands to survive and flourish for the long-term.

ROI (return on investment) is incredibly important whenever investing, but companies will start looking to ROR: Return on Relationship, when planning, strategizing and most importantly evaluating social marketing … especially smaller competitors who can more easily drive and control Relationship Marketing.

As far as specific predictions go I have a couple… Google will acquire Twitter, and pay whatever it takes to grab a valuable piece of the social marketing landscape. FourSquare, et al will disappear as geotargeting will become more of a proactive medium controlled by those who really know where you are and what you are doing… the credit card companies and others who you tell where you are and what you are doing simple by being there and not having to make a notification.

Ted Rubin

The Heart of Groupon’s Business Model

The heart of Groupon’s business model for their clients is not direct profitable commerce (it is only profitable upfront for Groupon). As many understand Groupon is not an ecommerce business. The business proposition that Groupon offers its clients is lead generation.

A very, very small percentage of Groupon clients make money when they generate all those sales. The business model here is aggressive acquisition through an engine that generates a huge amount of “hot” leads with credit cards ready. The challenge is to convert a workable percentage of those ‘loss leader” buyers into profitable customers and have a metric that covers the upfront investment.

There is a reason that the majority of their customers are small, local businesses. They do not have the upfront capital necessary to use more traditional acquisition models, and more importantly they are less sophisticated in the modeling abilities used to determine life-time value of a customer…. especially a customer acquired through aggressive discounting. So for now the growth is miraculous since so many are jumping on the bandwagon with Groupon recommended discounts that cannot possibly end up profitable for those making the offers.

If Groupon’s strategy is to grab the real estate now, and worry about how to evolve the model so that the businesses making the offers can truly benefit, then let’s wait and see how that is accomplished before final judgement is passed.

I am not saying that Groupon will not survive, and they certainly have a business model, although their sales for the year seem to be grossly overstated in many circles. I simply believe passing up what was offered by Google showed tremendous hubris and that I believe they will come to regret the decision… even if they never voice that regret or remain successful.

Ted Rubin

Agencies Show Clients Too Many Social Media Choices

Recently I have had this conversation too many times with” social media” agencies looking for guidance in pitching a prospective client. They live by the old rules of offering a host of “great” ideas and suggest the client pick what they like. All this does is open the discussion to a myriad of “their” ideas as well as others offered up by the client and leads the client to believe that they do not have a firm grasp on what can work best… at least in their opinion.

They are afraid to stand by their convictions, take a stand, and truly lead a client in the what they believe to be the right direction. Hard to break old legacy thinking and start pitching “only” what you truly believe and not just what you think will get you the account and earn you fees. It is the effective solutions that will make you and your business shine for the long-run.

If you are going to specialize and call yourself a Social Media Agency… then be sure to bring your expertise to the table, tell it like it is, and only execute what you believe will work, is appropriate and will provides value.

Ted Rubin