Archive for May, 2011

Visiting the Valley: Trending Topics

Wednesday, May 11th, 2011

A few weeks ago I had the opportunity to spend a day out in Silicon Valley, the land of digital start-ups just outside of San Francisco. A friend of mine who works for a major global manufacturer is a “marketer in residence” at one of the largest VC firms. He invited me up for a day to visit a handful of this VC’s seedlings and a few other friendly investors. It was only a day, but thanks to smart scheduling and the proximity of so many start-ups, I was able to get an outstanding firsthand view of the ideas and people that make this a hotbed of innovation. During the next two weeks I will share my takeaways here.

One of the things I found interesting about my day of meetings in Silicon Valley was how the same questions and opportunities are on the minds of so many people. Likely because of the interconnected nature of relationships and critical mass of talent here, innovation topics that spread throughout the world seem to gestate here first. In no particular order, below are some of the discussion topics that arose during my visit. If you’re not talking about them today, you probably will be tomorrow.

Rewarding Engagement

One of the companies I met with was going through a “pivot”–which in the start-up business means that your original idea that got funding didn’t work, and you are trying to shift to a new, usually related idea instead of just giving up and giving the money back. This company was toying with an idea around the concept of “rewarding engagement.”  The most common example of this is when new mobile software developers attempt to increase their download and install base by offering some kind of virtual incentive. Companies such as Groupon and Zynga Poker have offered up Tap Tracks song credits or Farmville Bucks, for example.

Some might argue that rewarding engagement is a variation on Marketing with Meaning. After all, the consumer gets something of value, the software company gets a bigger user base, and the media company gets paid only when these two are successfully paired up. However, I have many doubts. The problem is that incentivized downloads are meaningful for the consumer, but not really related to strong brand marketing. They encourage people to download something not for a brand-related benefit, but in order to get something in what is often a completely different product or service.

Apple agrees that this is not meaningful, but for a different reason. Just a few weeks ago the company began cutting off apps that were using this practice, claiming it is a violation of its terms of service. Apple does not like the fact that “buying downloads” like this can send apps to the top of its Top Downloads list overnight. Apple knows that people expect this list to be the very-best-quality games and utilities, rather than the ones that gave away the most virtual cash.

I think it’s pretty obvious that these kinds of incentivized downloads are not going to earn the kinds of frequent users that app developers want. Looks like gaming the Apple app store is the only, now impossible, goal of this gimmick. I’d look for this trend to fade quickly.

Influencer Rankings

We had an opportunity to swing by the bustling office of Klout, a company that is rapidly becoming a killer app for influencer marketing. The guys at Klout say they are “an analytics company that happens to run campaigns for marketers and their agencies.”  For those who don’t know, Klout offers a score or ranking of people based on their social media profile. Although the tool has a lot of opportunities for improvement, I love the fact that it can be used today by brands that want to, say, pick the top 100 people to invite to an event or prioritize the high-ranking people who call the telephone complaint line. I was mildly proud to learn that my own Klout score of “51″ puts me in the top 20% of all profiles. Such a scoring system also means that people will work even harder to boost their scores and influence.

Although the company did not start off as an engine for marketers’ use, it is coming around to this opportunity quickly. I got to see a big brand that is using Klout to invite the top influencers in a specific topic to join an invite-only club, brands are starting to use it to see who their most important Facebook “Likes” are, and a major job search company is starting to add the score to people’s profiles. A new Klout.com is on the way, which promises further improvements and will include more than just your Twitter feed in calculating influence.

Building Dependencies

One well-known and respected investor we met with spent some time sharing his team’s formula for picking winners in this noisy environment. He specifically mentioned that his partners look for new businesses that “build dependencies” among their customers. This means creating a company that becomes so necessary and ingrained with how customers operate that it keeps their business for the long haul and keeps competitors out.

Omniture is a great example of a company that does this, by locking businesses into a system for measuring their digital customer engagement. The more you use Omniture, the more tightly it is linked to your way of working. And the fixed costs of implementing the tool dissuade companies from bringing in another way of measuring results. Dunnhumby does this by creating a tool that retailers and their suppliers can use to understand purchase habits and provide personalized offers. Salesforce.com takes this to the next level by not only creating its own killer apps, but by allowing its platform to be used by thousands of third-party application developers.

Companion Viewing

Content is on the minds of start-ups, marketers, and investors. Many are coming to see that content–not channel delivery or advertising interruption–is king. Nothing is more valuable than an aggregated audience that is voluntarily giving you its increasingly valuable time. And speaking of content, television continues to be a media vehicle for content that dominates all others. It combines sight/sound/motion, mass delivery, and an established ecosystem. And television is only getting better for consumers, thanks to greater on-demand options and bigger/better sets.

While some believe that television will be substituted with new screens such as laptops, smartphones, and tablets, some early consumer research suggests that new screens are additive to the television viewing experience. According to a recent Nielsen/Yahoo! study, 86% of U.S. mobile Internet users watch TV with mobile devices in hand. Of that group, 40% use devices for social networking, and 33% use apps. The concept of “companion viewing” suggests that television content creators–and marketers as well–should consider using these additional laptop/mobile/tablet interfaces to add value to the experience. If you are like me, you might find yourself keeping an iPad close to you on the couch while watching a program. During commercial breaks or when I want to look something up related to the show’s content, I increasingly hit the TiVo pause button and pull up Google to satisfy my need for information.

To date, only a handful of television programs are taking advantage of this trend. The History Channel lets you pull up Tweets of fellow viewers during shows such as Top Gear, and Top Chef Masters lets you rate the players’ dishes for yourself. Some new televisions are coming with interactive features built in, but I believe it will always be easier to use a separate screen/device to interact. If programs truly integrated smartphones and tablets for companion viewing, we might see live stats and replays-on-demand during sporting events, or a moving map with vacation suggestions during a travel show.

At the end of the day, not all of these are truly “new” ideas spun from the epicenter of digital innovation, but they might give you a jump-start on what’s coming next–before the annual “What’s Hot for 2012″ lists start propagating.

Twitter Works, but Is It Working for Your Brand?

Wednesday, May 4th, 2011

(This is a special guest post from Douglas O’Donnell, Possible Worldwide Associate Director of Measurement & Analytics. The other day we were trading emails about how many brands fail to think about how to use Twitter the right way, and he took the initiative to write up the following point of view. Please enjoy and reach out to Douglas directly on Twitter, of course.)

Most brands have no business on Twitter. They apply traditional push marketing strategies and spend large amounts of money on irrelevant content that annoys customers. Most are on Twitter because it’s cool or to be on par with their competition.

The problem is that brands do not humble themselves for the new medium, nor do they consider how their strategies might affect operations challenges. My favorite southern saying is, “Big hat, no cattle,” and it applies here. If you don’t connect with customers in a human way, they won’t buy what you’re selling.

6 Rules of Humanizing Your Brand

  • Be human and humble (this should come naturally).
  • Follow the 80% (value add content)/20% (marketing) rule.
  • Establish Twitter-specific objectives, strategy, and measurement, and optimize.
  • Seek out your advocates and follow them first; don’t make them find you.
  • Interact with customers, like you would with a friend in a coffee shop.
  • Be relevant to their interests, be available to address their needs, and embrace negative comments as opportunities.

(Bonus rule: Fire your legal and editorial departments–unless they are solution biased.)

The Issue

Your brand is a snob. It expects that people will automatically love it. This approach doesn’t work in the social media space, especially on Twitter. The whole premise of Twitter is real-time, relevant interaction, and this is where brands drop the ball.

Let’s talk some psychology and consumer science. Your brand wants to be loved and talked about, but this does not happen in a vacuum. People like exclusivity. Access is the reason Twitter a la Southwest or Zappos (or Lady Gaga) is interesting. It’s an opportunity to peek behind the curtain of a company (or celebrity) that interests you. This plays to social media’s other strength, voyeurism. It’s the direct connection to someone or something you otherwise have no access to. So make it interesting. Who cares about your new product push? But it might be interesting if you tell me you’re the VP and post a picture from the manufacturing plant while finalizing the “new product” nobody knows about yet. For your followers, it’s a ticket to the party.

Twitter vs. Facebook

Brands struggle with Twitter because the people pitching content do not typically use the medium. Twitter is a completely different mind-set than other social media platforms. Twitter is public as opposed to Facebook’s walled garden. Twitter is about the conversation, in real time. On Facebook, conversations are fragmented over time based on when you access and check the posts within your social circle. A community manager on Facebook will have a planned strategy, a content calendar, and some guidance on occasional real-time interactions. A community manager on Twitter should be on call, like a doctor. This doesn’t necessarily equate to high-maintenance or time-consuming tasks. But Twitter must be monitored consistently for it to work as intended. Some brands such as @DellCares actually put the hours up of their social media outreach team on their Twitter profile, which is completely acceptable.

Provide Valuable Content

Nowhere is an 80% value-add and 20% marketing approach to content more important than on Twitter. If a brand is churning out coupons and a weekly pre-planned “buy our stuff” Tweet, they should not be on Twitter. If a brand is not committed to interacting frequently, each week with their customers or fans, they should not be on Twitter. If a company’s legal department can’t get over itself and its 1970s processes, the company must either educate legal on a real-time communications tool or not be on Twitter. In short, being on Twitter badly is worse than not being on Twitter.

Who does this well? There are good case studies and they’ve been exhaustively covered so I won’t rehash. But I will say that @southwestair (customer service strategy) and @zappos (transparency strategy) are two of the best. They are directly and intimately connected to their customers. They actually know them. They study them–not their ComScore profiles–but the actual customers and what they discuss. Also the “tweeters” are actual human beings, not mascots or faceless brands.

The Human Touch – @RoadID

In 2009, I launched Road ID on Twitter, a maker of identification gear for endurance athletes. We built a following by first seeking out and following people already interested in the brand or common interests that aligned with Road ID offerings. Engagement was instant and in six weeks we had more than 1,000 high-quality followers. Road ID is smart, tracking promotions to the sale so they truly understand how Twitter interactions influence sales. And they do.

Here’s the key. The account was attributed to Edward Wimmer, the cofounder, not a mascot or a brand. Ed is a human. The company and the content match the personality of the customer. He posts relevant content about sporting events, sponsorships, and highly engaging contests tied into Ironman or Tour de France races. Content his followers appreciate. He also interacts regularly when people tweet about his product, thanking them or taking on a customer service role if there is an issue. When you execute the 80% well, people accept the 20% marketing because it’s genuine. Transparency is key.

Paradigm Smashing


“It isn’t about who follows you; it’s about who you follow.”

This process works well on Twitter, but is completely counterintuitive. You must seek out and follow your customers first. Likely, people are already talking about your brand. Find them. Not with a social listening tool, although those can be helpful (Radian 6, Crimson Hexagon), but manually. Get intimate. See what people say over a few weeks time (content is different each time, as this is real-time search). Follow those people. Interact with the ones who say something clever or relevant.

Put yourself in the customer’s shoes. Why should I follow a brand? Offers? Coupons? That creates a pretty shallow relationship with your customer and you condition them to expect “deals.”

However, if I get followed by a brand the reaction is: “Interesting, Brand X just followed me, cool!” Especially if it was in connection to an @ response to something I posted. You got my attention because you didn’t sell me something. Instead, you engaged with me and thanked me, you told me what I had to say was interesting, or you acknowledged my frustration, humanly. You reached out to me in context and for that, I’m more likely to follow you back, brag to my friends, or even defend the brand. The brand must humble itself as a new kid in town. Get out and meet people!

“Remove traditional editorial and legal barriers.”

How many lawyers understand that that offensive tweets do not appear on a Twitter brand account, like they do on a Facebook page? The problem is editors and lawyers do not use the mediums they police. The premise of Twitter is real-time human interaction wrapped in authenticity. Timely interaction is what makes the ecosystem hum. Tweets that require legal review or editorial proofing before posting are useless. The opportunity has passed. If you’re a brand that cannot let go of editorial and legal control to an expert community manager you hired for their expertise, cancel your account today. Being human requires human attributes, like trust.

“Negative comments are opportunities. Embrace them!”

This is rooted in public relations and referenced frequently by David Meerman Scott, author of Real-Time Marketing & PR. Acknowledge issues as they unfold in an authentic way and you have the potential to convert a bad customer experience into a great one or an annoyed customer into a fan. It’s powerful when a brand directly contacts a customer who has an issue via Twitter (instead of requiring the customer to contact the brand). Goodwill is extended to the brands that try.

“My brand must be followed by important people to gain clout!”

If by important people you mean your customers, then yes. There is much talk about clout, or Klout the social influence aggregator. Both are nebulous, subjective, and changing daily–just like judges’ scores at the Olympics in figure skating. I have a striking example of clout on Twitter, Sarah Slowik.

Sarah (@lovelybutton) is a nice girl from Michigan and was randomly chosen by Conan O’Brien to be the only person he follows on Twitter. Conan has nearly 3 million followers. He follows one person, Sarah, who originally only had a few dozen followers. When Conan followed her, her followers increased to more than 45,000. So her clout by association is substantial. There’s value in being followed (or endorsed) by an influencer, but that rings true in life as well. And influencers are more likely to endorse you if you have something relevant to offer. Again, human rules apply.

So take a step back and truly understand why Twitter would make sense for your brand from a business standpoint. Then align that with the needs of your customers, humanly. Are you committed to establishing a long-term, meaningful relationship with them? If the answer is yes, then Twitter can be a powerful tool to improve your brand’s business performance.