Social media: the smart choice

The following are some concepts I researched and wrote about in my new book on Marketing 2.0, as well as ones I've experienced first-hand as a marketing executive at IBM.

For marketers, lightly branding is key

For marketers, social media has shown how to drive opportunities in greater volumes into the pipeline. "Lightly branding", which is having your customers and communities drive your brand, is happening all around us. Companies today are custodians of their brand, not the owners. In a global world, consumers are taking that brand equity and building their own stories. It is these stories that are now at the heart of trust and relevance.

Social media is the toolset to allow pre-existing social networks to produce exponential increases in brand awareness and new customer leads. It is more powerful than third-party advertising because it conveys an implied endorsement from a friend. And it provides you with a way to personalise your brand.

As an example, one area of business at IBM, Business Process Management, enables companies to continuously optimise their business processes and adapt them to rapidly changing needs. IBM has a section of the ibm.com website dedicated to this product group, but in addition, has contributed to a third-party micro site on this topic. Therein the IBM team leveraged some fun video problems and other tools to better serve those customers who prefer to educate themselves in that community environment.

Differentiation is no longer about product/service but rather is based on the concept of engagement and long-term relationship. For instance, in one of the book's exclusive Online chapters, a small company in San Antonio, Texas called RackSpace, is highlighted because of their virtually 100% referral business. Driven by viral reference videos, and what they call "Fanatical Support", they have actually co-branded their stellar service as a competitive advantage. Full Article: http://www.ibmpressbooks.com/articles/article.asp?p=1273853

Lightly branding is one way to start that long-term relationship and to drive new leads. It works both ways though! Just recently, due to Twitter comments, Johnson & Johnson's Motrin brand took a lightly branded approach by removing their new ad due to tweets about the ad's impact on their "brand".

Guiding principles:

• Businesses no longer hold absolute sway over the decisions and behaviour of consumers.
  
• The longer companies refuse to accept the influence of consumer-to-consumer communication and perpetuate old ways of doing business, the more they will alienate and drive away their customers.
  
• To succeed in a world where consumers now control the conversation, and where satisfied customers tell three friends, while angry customers tell 3000, companies must achieve credibility on every front.

For sales, social media is a word-of-mouth channel

Social media is a new channel. Through real time social media techniques, like blogging, Twitter or online chat, a channel of support or assistance can be focused on a particular topic. It offers an opportunity to interact with a person in a non-threatening manner moving from B2B to P2P - person to person.

As an example, using its social chat capability, IBM increased its leads, improved customer satisfaction, and drove up sales productivity. From their ibm.com/soa website (for IT architects), IBM leverages a set of pre-determined "qualifications" to pop up an online chat. In just the first three months of operation, IBM has seen over 2,845 chats with new customers, resulting in 182 validated leads and is now extending the online chat to Germany, China and Japan.

The social media channel provides a way to respond "just in time", not waiting in a reactive mode. In fact, it allows a pre-qualification process for new customers. It gives you the ability to have a conversation with your prospects when they're most receptive - while they are on your website or on your Twitter Channel actively gathering information.

Guiding principles:

• Skills matter. The presence in front of prospects is very important, so you want your best and brightest reps doing the real time chats. They need to be very knowledgeable about the products and services, not simply communicating at a high level.
  
• Your mom taught you etiquette! Use it online! There is online etiquette for inviting people to chats, and for chatting with them once they accept. For example, don't immediately pop up an invitation within the first 30 seconds that a person is on your site.

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