TedRubin

“Google’s Groupon Bid Rejected” BIG mistake?

Groupon is getting way ahead of themselves and I think their rejection of Google’s bid is a Big mistake. My 2011 prediction… Google buys Twitter!

Richard Bashara says: Ted I’m going to agree with a “but,” look at Facebook. Zuck’s had how many chances to sell FB? You can’t deny that Groupon has set a trend. Perhaps trying to stay on top of the wave could pay off.

And if Google doesn’t buy Twitter, I’d be quite surprised. Who knows, maybe Twitter will try to stay independent though. As a publishing tool, it’s clearly becoming more active than Digg or Reddit.

Ted Rubin replies: Twitter is incredibly concerned, as they should be, about how to sustain and monetize what they have. Google is incredibly worried about Facebook and how to penetrate and participate in Social Media/Marketing. Solves a critical problem for both.

As far as comparing Groupon to Facebook, I think the projectory of their growth is where it ends. Facebook competitors have many more barriers to entry than competitors to Groupon, and they control the hearts and minds of their members. Groupon exists only as long as they can provide such unsustainable discounts. With Google… the value of their local search and local relationships/workforce came in to play and made them much more valuable than as a stand-alone. IMHO

Ted Rubin

What is Experiential Marketing and is it Social?

What does experiential marketing entail? It entails allowing a customer/prospect to engage & interact with a brand, product, and service in sensory ways that provides an additional intimate level of experience and information.

Personal experiences help people connect to a brand & make intelligent & informed purchasing decisions. “Experiential Marketing” refers to actual customer experiences with the brand/product/service that drive sales and increase brand image and awareness.It is the difference between telling people about features of a product or service and letting them experience the benefits for themselves.

Many think of this as a totally separate form of marketing from social, but to me it is the ultimate in social marketing. It is all about experiencing a product or brand… and what could be more social. In addition the power of social is not the initial reach, but the engagement and more importantly the sharing that follows and enables a brand to reach into each individual’s social graph. How better to do that than to give a consumer an “experiential” experience to share.

Ted Rubin

Questions and Answers about Relationship Marketing and Relationship Commerce

Ted Rubin is the Chief Social Marketing Officer at OpenSky and also one of the early members of The Social CMO Crew! Based on his previous work at E.L.F. Cosmetics and now at Open Sky, Ted is leading the way and becoming clearly recognized as a leader in the emerging field of Social Media Relationship Marketing and the rapidly growing phenomena of advocacy triggered sales known as Relationship Commerce. Below is a Question and Answer piece first published earlier this week by SMM Magazine.

1: Relationships: how do you build them online?

I believe everything we do in our personal and business lives revolves around relationships—now more than ever. With effort, an online relationship may begin from the request of a Facebook friend or following someone on Twitter. But make no mistake—that initial request or follow will never create the relationship. Trust is built upon interaction, when you’re true to your word, authentic, and genuine. To build relationships online, you (as a brand or individual) have to offer value in return.

Read more

Takeaways from Altimeter’s “Rise of Social Commerce”

Altimeter Group hosted The Rise of Social Commerce event on October 6th and 7th at the Four Seasons in Palo Alto. Theme for the conference was: The push for customer advocacy. Reinvent your brand through the Rise of Social Commerce

Shoppers want to belong. They want to be heard. They crave a better buying experience. Power is shifting from the retailer to the shopper. Social commerce is filling the void between clicks and bricks to deliver this personalized experience.

Technologies are emerging answer the challenge. Point of Presence (POP) is combining with Point of Sale (POS) to influence, persuade, and guide shopping. Artificial reality and virtualization is enhancing interaction. Social media is evolving to social commerce to improve the in-store experience. Attend this event to understand how companies are capitalizing on these trends to influence shopping on mobile devices, automate check-out and link the voice of the customer to the value chain.

The following points represent my takeaways from this landmark session:

  • Social commerce was defined as “the use of social technologies to connect, listen, understand and engage to help improve the shopping experience.”
  • In 2010, 20% of 200 companies had a social commerce strategy; in 2011 86% plan to have one.
  • 90% of companies will increase funding for social commerce by 8% in 20011
  • It seems that the Social Commerce world is fixated on what they refer to as “frictionless commerce” vs. the value of relationships.
  • The vast majority of discussion centered around how to create direct sales by leveraging the social graph.
  • Although most examples reflected that the companies making the biggest inroads to increased sales are those that allow the most interaction/relationship building it seems most etailers have not been able to let go to that degree.
  • Brands, not etailers, are the ones doing the best job of nurturing/leveraging relationships. Seems it may be because they do not have the pressure of next quarter performance, and the need to show direct sales to senior mgmt, so have more leeway to nurture relationships and plan for the future.
  • “Birds of a feather flock together” clearly points to peers influence more within their personality/behavior groups, therefore a very positive element for OpenSky developing strong sales around taste-makers and affinity groups.
  • According to many presenters the Social Media/Commerce journey starts with curiosity (OpenSky’s discovery factor) and leads to Advocacy… sharing their great experiences (a key to OpenSky success).
  • Influencers, when/if they see the value, can create group habit by including the group in the before, during, and after. What seems clear is that it is important that OpenSky provide the tools for Sellers to allow/encourage their audience to share the fact that they are buying… via input, reviews, forums… which in turn will enable the “group effect’ to help them grow, build their brand and foster the purchasing behavior.
  • The Social Consumer is empowered and has influence of her own. Be certain to provide the tools that allow this consumer to leverage the new found power. She wants a dialogue and wants to be heard and recognized.
  • Influencers do not equal simple amplification of an offer/product value… but add depth and breadth to the relationship.
  • Facebook is not a channel for commerce, but a platform that can enable commerce. Many are mistakenly looking at FB as a channel.

It seems to me the view/perspective I keep hearing is all about leveraging consumer’s social graph to sell more product. But when I hear the case studies, and see where true progress is being made, I hear more about interaction, engagement, and sharing… i.e. relationships.

When I think about social commerce what seems to be the greatest opportunity is growing/nurturing the connection, participation and loyalty of a consumer, which in turn will build ROR… Return on Relationship. This is the first step required to make all this social integration sustainable and long lasting. Relationships are what will lead to the ability to sell more, not using customers to sell more product, but by facilitating/enabling feedback, sharing, reviews, and therefore build dynamic advocates who openly sell product they love and are passionate about.

Ted Rubin

Editors Note: Agenda for event & complete presentations are available at http://bit.ly/RiseOfSocialCommerce

“Social Broadcasting” misses the point.

Although blogger Zennie Abraham shares some interesting ideas in his post “Social Networking is Really Social Broadcasting”, I just don’t buy it.

I do get his point that social networking has a big “broadcasting” component to it, and I understand his reasoning of trying to place it in that basket so advertisers can see it as the same as other media buys, but in my opinion, that’s just trying to fit a square peg in a round hole simply to make it sell better. It will sell when, and the key word is when, the marketing community wraps it arms around its true value… and not before.

I don’t think “broadcasting” is the right word because it only addresses the most basic aspects of connections and is primarily a numbers game of how many people you can push your message out to.

Social networking, on the other hand, fully uses the powerful sharing aspect of social media (and the social graph) to rely on and build relationships between people. These relationships then provide you the ability to spread a message through your network and into the network of others due to the true value of the message — value that continues to increase simply by the fact that you have approved and recommended it by passing it along.

Take, for example, Twitter. Most in the marketing community misunderstand Twitter …when used wisely, it is not a broadcast tool or a standalone tool for marketing, it’s an enhancement to your marketing strategy and an extremely valuable networking, experimenting and seeding tool. While it allows you to provide a broadcast-like tweet to all your followers, most will never see a single tweet and the real value is that it also allows you to interact directly with one person in plain sight of thousands of people and allows them to pass along to others in their network. Think about how much we learn about someone by watching their interactions with others, and you can understand how this feature of Twitter quickly creates (or destroys!) trust throughout your social network.

Social networking is also different from broadcasting in that it isn’t just a one-time send-out of information. Powerful social networking includes a back and forth exchange between you and your audience (network members), and their audience, giving you more than one chance to make an impression, clarify your message, and most importantly, build trust. Let’s not forget that it’s trust that builds customer loyalty!

Ted Rubin

Women hold the purse strings – talk with them!

Women hold the family online shopping purse strings, so no matter what your product, you should be talking to women. Women are the ones using social media to build their relationships, and in this era of Relationship Commerce, those relationships are pure gold.

It’s the women who will take the time to ask for and give product recommendations. It’s the women who will tap into their networks to find the good deals. It’s the women who will gladly make sure all their friends hear about a wonderful new product they discovered… or a terrible product they would never buy again.

However, these relationships are meaningless for you and your brand if you don’t have ways for these women to easily talk with you. They want to know they can trust you, and how do they figure that out? They build a relationship with you, the “influencer” (seller) just like they do with their friends and other trusted information sources. You absolutely must make sure that women find it easy to talk to you and about you!

  1. Make sure social media tools and your own online communities are as easily accessible as your online product information. This shows that you are not afraid to have your customers / clients talk with each other, so you must not have anything to hide.
  2. Interact publicly with individuals of your audience. You know that the most successful relationships are two-way streets, so keep that in mind as you interact with your “audience.” Social media allows you to build very visible relationships (2000 Twitter followers? 2000 possible observers of any of your interactions) so every single interaction counts. An information push won’t get you anywhere – you have to ask questions and answer them! Then ask follow-up questions and answer those also. Follow me on twitter (@TedRubin) to see what I mean.
  3. Communicate consistently. Don’t expect to build trust if you are only responsive to your audience every now and then. Build social media response time into every day and your consistency will pay off. Only pay attention once in a while, and you have no chance to build a relationship. In other words, just like you can’t disappear in non-digital life and expect to keep your relationships in tact, you can’t just disappear online.

So take another look at your product and your brand offering. Are you talking with the women? You should be. You need to be. If you’re not, start making changes TODAY – your brand success depends on it.

Ted Rubin

The Relationship Commerce Revolution

We’re hearing more and more about “Relationship Commerce” these days – but how many of us actually understand its implications? I’ve spent years in the midst of the evolution of commerce: As traditional commerce shifted into a digital world, through it’s evolution into Social Commerce, and now as we come upon the brass ring – Relationship Commerce.

There are some guiding principals to Relationship Commerce. None seem drastically different on their own; though they seem radically new when applied to the realm of commerce:

Relationships matter. Discovering something you love is great, learning about it from someone you trust is even better.

Buying from someone you like is way more fun than buying from a BIG-BOX robot.

Shopping can be better.

Relationship Commerce is simple yet novel, it’s buying from people you know and trust.

Read more

Mistakes being made trying to measure Social Engagement

The mistakes I see being made is trying to measure Social engagement with the same tools we measure every other digital touch point. In my view email, search, even banner ads, have spoiled marketers into thinking everything can be and must be measured with the metrics used to gauge success in other mediums. I am not sue of what the next stage will be but right now as we are building our Social Media audiences, and testing. I have three stages with which I measure… #1 is Audience growth, #2 is Reactivity… getting them to take an action, and #3 Stickiness… keeping them coming back, engaged and interacting.

In addition setting expectations is important. Setting goals for number of follows/fans and how you interact and engage with them and them with you, can be very useful. Growth of your audience is very important and as clearly outlined in the study by CMB, consumers engaged via social media are more likely to buy and recommend.

Five reasons corporations are not using Social Media effectively… 1. They don’t talk about anything broader than their own products, 2. They listen to customers but don’t take any action (which means they aren’t really hearing), 3. Companies can’t expect to have a strong social media presence when social sites are blocked internally to employees, 4. There is a fear that exists about jumping in, but while there have certainly been some hiccups and miscues along the way, social media has yet to be the undoing of any company, 5. When employees are more concerned with what’s in or out of their job description than doing the right thing to help the customer, that’s not a culture that’s likely to build trust and advocacy for a brand and there is no way social media efforts can be effective.

Ted Rubin

Long Tail death knell… I think not!

Some in the digital media world are declaring the death of the long tail due to digital ADD, the exponential growth of and time spent on Social Media platforms and the time taken up by gaming. I have to strongly disagree. The long tail is alive and well, and if anything, experiencing a re-birth of sorts with regard to media and independence.

As stated so well by Chris Anderson, even if he is changing his mind now… “One of the most frequent mistakes people make about the long tail is to assume that things that are not viewed by a very large audience are ‘not as good’ as things that do have vast distribution. A given niche has both quality content and a lot of junk across a broad spectrum. Sturgeon’s Revelation states that the percentage of crud (junk) is in the range of 90 percent. On a store shelf, or in any other limited means of distribution, the ratio of good to bad matters because it’s a zero sum game: Space for one eliminates space for the other. Prominence for one obscures the other. Long tails in the online world are not pre-filtered by the requirement of factors such as shelf space, bandwidth, or the biases of purchasing managers.” Companies are popping up every day to serve and offer valuable services to the long tail at very affordable rates and the desire for people to communicate, build audiences and relationships, is not only growing, but a very basic part of human nature and something that is gaining momentum, not the other way around.

As long as publishing is low-cost and easy, and people have an easily accessible means to access that content, the long tail will not only live on, but thrive.

Ted Rubin

Social Media Power – Don’t Give It Away! Unless…

Social media’s incredible power is in allowing us to instantaneously connect to, interact with, and build relationships with our audience of thousands… and it’s exactly that power that makes it risky to turn your social media campaigns over to an outside agency.

The “social” part of social media campaigns makes them quite different than traditional ad campaigns. Instead of a brand presence relying on catching attention through the initial “look and feel” (of a website, brochure, television ad, etc.), it now includes a broader and deeper ongoing connection based on personality and relationship, both of which are tough to have someone “outside” successfully convey for your brand.

Also unlike traditional ad campaigns and their weeks/months-to-market brochures and television ads, social media has the power of immediacy with seconds/minutes-to-market Tweets, Facebook postings, YouTube video clips, etc. In other words, with social media we do not have the luxury of time for multiple review cycles and sharp perfection of every public brand message.

However…

I’m not suggesting that you should never consider using outside resources for your social media campaign. If you are still trying to figure out how your brand can use social media for relationship commerce, or you simply have run out of hours in your day to use social media effectively, you may need an outside agency’s help. Just be very careful with your hiring, and deliberate with your integration of outside resources.

Specifically, you need to make absolutely certain that:

1. The key players of your outside agency team are attached at the hip to senior management. When your brand shifts in any way, your social media messages need to immediately reflect those shifts. If your brand’s social media presence isn’t nimble, trust and therefore relationships and influence will falter.

2. Someone with a direct line to the c-suite (top management) and a clear understanding of the brand voice and long-term objectives is keeping track of, managing, and observing the process daily. The brand voice, or “personality” is the heart of your social media campaign, so someone needs to make sure the personality stays true to the c-suite message and consistent throughout the campaign.

3. If you don’t have someone on staff to oversee the social media strategy, you hire a consultant for this role. This consultant must have the requisite experience with social media, and take personal charge of the strategy. Again, you can’t afford the time for information to trickle down from senior management, so the consultant must have access to communicate directly with senior management and be someone who really “gets” how social marketing works and how to execute.

Bottom line: Who can you trust with your brand’s relationships? Make that decision wisely.

Ted Rubin