What's an Apology Worth?

 

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What’s an apology worth in the world of business and marketing? 

 

I received an unusual email the other day.  It was an apology note from Posterous (where this blog resides) for their service difficulties experienced last week due to some pernicious Denial of Service attacks (here’s a link to the Official Posterous Posterous blog that contains the same apology note).  It’s a sincere, open, direct apology for problems on their end. 

 

On the one hand, it wasn’t all that unusual.  But, at the same time, it was.  Confused?  You won’t be.  Let me take just a marketing minute to explain this paradox (and how an apology can be a good engagement strategy).

 

No Big News, But Big News

On one level, I don’t find it unusual to receive an apology from someone…it’s standard etiquette.  Isn’t that what our parents, pre-school teachers, elementary school teachers, guidance counselors, college counselors, bosses and shrinks have told us for years?  You goof up, you ‘fess up and say you’re sorry.  The same goes for companies and brands that screw up.  Bottom line, a sincere “I’m sorry” sure helps the relationship and seems like the right thing to do.

 

On the other hand, how often do we NOT receive an apology when someone or some company causes us problems we never asked for?  I can’t recall Mark Zuckerberg ever saying, “I’m sorry that I trampled on your privacy and tried to turn you all into retail shills based on your online purchases.” (remember Beacon?)  Steve Jobs?  “Oh, that iPhone connection thing…did you want that to actually work as a PHONE?!”  (The man is brilliant, but I doubt the words “sorry” and “apology” are in the version of the English language he speaks) *

 

And, how do you feel when you’re treated like that?  Even for those with healthy self-esteem, it feels like we’ve been treated poorly.  It’s annoying and disappointing enough when that happens in “real life.”  When it happens in business, it smacks of arrogance (for lack of a better word).   And, some of our “technology leaders” seem to have created a whole new level of arrogance that disconnects them from their “real world” customers.  But, as Posterous shows us, that’s not necessary. 

 

Bad Things Can Lead to Good Engagements 

That’s why I found this apology note so refreshing.  With this one little note, Posterous not only apologized, but gave me some insight as to what happened and how they dealt with this unpredictable mini-catastrophe.  Having worked in young tech companies, I could relate to the pain (and lack of sleep) they must have personally experienced.  I could feel their anxiety and sweat, feel the wheels turning in their brains as they tried to solve this problem.  And, here they were, apologizing to me for falling victim to an aggressive, senseless attack on their system.

 

The irony is…I didn’t even know about this problem as I’d been off Posterous for a while tending to other life matters.  I missed the whole “disaster.”  But, in some ways, my obliviousness made me appreciate their apology all the more because of their honest admission and sincere contrition. 

 

The net of all this: Posterous ENGAGED me.  Maybe it wasn’t part of an “engagement strategy,” but the outcome sure felt like engagement on my end.  And, maybe that’s the ultimate strategy in our ever-evolving social world…maybe the best engagement occurs when we’re not trying to engage others for strategic reasons, but are just being honest and true to ourselves, our brands, our company values. That brings to life and makes an overused phrase like "transparency" real and meaningful

 

This “non-strategy strategy” seems to have worked for Posterous.  Their sincere mea culpa has turned me into a bigger fan than ever.  They’ve made a fan for life, created a cheerleader and advocate just by saying: “we’re sorry”…and, meaning it (okay, it helps to have a good product, too!).

 

Hmm…deeply engaging your audience and customer base in a way that creates appreciative, loyal, vocal ambassadors for your brand.  Does that sound like something of value in today’s business world?  What business or marketing leader wouldn't want that for their brand?

 

So, now, let me ask you…how are YOU treating YOUR customers?

 

P.S. As an appreciative, loyal, vocal ambassador, I encourage all of you bloggers and potential bloggers to check out Posterous (if you haven’t already).  It’s a great, easy to use service with excellent features that are getting better every week.  And, it’s run by people who really care about their customers…for real.  They deserve your business.

 

* Author's Note - I don't know Mark Zuckerberg or Steve Jobs personally or professionally.  So, if I mis-stated or mis-characterized what appears to me, an outside observer, as arrogant or unconcerned behavior on their part toward their many customers, I sincerely apologize.  In fact, I'd be happy to buy you guys lunch to talk it over if you think it would help clear the air.  Let me know.

 

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Google Nexus One - Big Flop or Brilliant Strategy?

Google is not omnipotent.  Nor is it invulnerable, invincible, all-knowing, all-seeing, all-conquering for everything.  The hottest company and brand on the planet is still subject to the laws of business, marketing and the marketplace (4000+ PhD's or whatever aside). 

Exhibit A: July 16's announcement that Google is discontinuing the Nexus One, it's Google-branded smartphone.  You probably didn't hear much about that announcement (unless you follow ReadWriteWeb or Mashable).  If you give me just a marketing minute of your time, I'll offer you some reasons why Nexus One is now Nexus Gone, as well as why this might have been a brilliant piece of strategy for Google.

WHY YOU DIDN'T HEAR MUCH ABOUT THIS
For those who have taken Marketing 101 or have a modicum of common sense, this part is pretty easy.

 Flops don't get big press releases - While Nexus One may not have been a "flop" per se, given Google's track record and the hype at the announcement of its launch, it's hardly a success.  And, when was the last time you read a press release from a company announcing it was discontinuing a product that it had ballyhooed just a few months earlier?  That's hardly a typical marketing and PR strategy.  So, it's no surprise that Google sort of "ahem-ed" this one over to the side.

People don't care - We've become a "hype society," capable of only paying attention to the Big Bang, the Big Story, the hottest and latest news.  If it's a big launch, we hear about it.  Big problems get big headlines (and rightly so).  But there's an apparent shift in our DNA that has debillitated our ability to stick with a story, a cause, an issue, etc. for more than a short period of time. 

As a story gets smaller or drags out over time, people don't pay as much attention.  Examples include Hurricane Katrina and the devastation in New Orleans (sad to say it's still a problem, but most of us aren't tuned into the city's continuing plight), Sarah Palin and the Jonas Brothers. There are notable exceptions, e.g.,the OJ Simpson Trial , but those exceptions prove the principal (although you can bet BP is hoping it won't be such an exception).  It's almost an iron-clad law in the world of technology.

In the case of the Nexus One, it fell off the radar screen and pretty much went radio silent to most of us.  It really wasn't that big a deal as a product, especially as other manufacturers kept upping the ante in feature sets and sex appeal.  It also was helped over the awareness edge by the omnipresent hype machine of Apple with its launch of the iPad and iPhone 4 (antenna controversy and all).  In other words, zzzzzzz...

WHY GOOGLE'S NEXUS ONE DIDN'T WIN IN THE MARKETPLACE
Why did Nexus One, which has a lot of fine features and good things going for it, fall off the radar screen?  Because Google is not omnipotent.  It can't do EVERYthing well.

Google is an outstanding company which may have more smart people per square inch than any company in existence.  They're not just smart, they're smart smart.  They're determined, aggressive, visionary, daring...find a positive business adjective (other than "cuddly" or "soulful") and it probably applies to Google.  I have the utmost respect for the company.

However, even smart smart people can't be great at everything.  Same goes for companies.  No company can beat all comers in all categories, especially when they start to tread outside their core competencies.  And, that's what we have here.

Google states its mission as follows: to organize the world's information and make it universally accessible and useful.  And, for the most part, I'd say the company is to be admired for how it has pretty much used that mission statement to guide its ever-growing array of offerings (I'd include Android in that category, as it's an operating system that helps mobile users organize and utilize information).

But, as the Nexus One shows, there are limits to how far you can stretch a mission and your competencies.  The phone business is hard.  It's about optimizing manufacturing efficiency vs. feature inclusion.  It's about marketing and selling gadgets to customers, explaining why you need Gadget A and why A is better than B, C, D, E...and so on.  It's about pricing models, distribution channels, on-going customer relationships, supply chain management, etc, etc.  While Google is many things, the aforementioned are NOT things that Google has been about - being an information services company is a whole lot different than making/selling "things."  And, it was up against companies who DO specialize in these capabilities. 

To top it off, Google couldn't explain why having an unlocked phone was so important to people...or maybe they didn't feel they needed to or that it wasn't worth the effort.  Whatever the case, the result was the same: there was/is no clear, compelling reason to have a Nexus One.

And, so, in this case the marketplace won out and Nexus One becomes Nexus Gone.  The laws of the marketplace/marketing/jungle (insert desired metaphor here) remain in tact and we're all safe for now.  Looking at it this way, this may be a simple case of corporate hubris and cutting losses while the cutting is good.

WHY THIS WAS BRILLIANT...MAYBE
However, I come not to bury Google, but to praise it (apologies to Will Shakespeare for bastardizing his line).  In fact, I think this could be brilliant...maybe...for a couple reasons:

Nothing ventured, nothing gained...

I had always questioned why the heck Google would want to get into the cutthroat business of mobile hardware in the first place.  It is just so much different for them as a company.  But, I give them props for pushing their own envelope and see how far it can stretch.  If you're not pushing, then you don't grow and you don't learn.  You can't fault Google for being afraid to try some different things.  Which leads me to...

You can't judge a book, or a phone, by its cover
This is for those of you who are into conspiracy theory...

While the demise of Nexus One was a "quiet" announcement, and maybe a bit of a yawn to many, I still think it was a worthwhile strategic move for Google.  I might even go so far as to say that Google knew all along that this would be the eventual exit path (since there was not much done or spent to market the Nexus One past its initial launch) and did it for other strategic reasons.  With its financial war chest and depth of human resources/brainpower, they could afford to toss out a red herring like this with another end game in mind.  They're smart people -- I wouldn't put it past 'em.

At a minimum, I imagine that Google has learned a lot that will help it to further its service and growth of Android to hardware manufacturers and the telcos. They've "been on the other side" now, which can only further their understanding of customer needs, issues, etc. as they seek to expand Android.  That's one potential part of their strategy for launching Nexus One and watching it die so quickly.

What else might Google have been thinking?  What's their end game?  I can't say for sure...I may be smart, but I'm not "smart smart."  Or, maybe I'm over-thinking this; maybe I should have stopped this post at "corporate hubris" and not give Google so much credit.

I'd be interested in your opinions - what do you think?

The Emperor's New Tweets

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When someone nails a point as well as Tom Fishburne does in the above Brand Camp cartoon, I feel it's my duty to simply post that insight and provide you with the link to the full article. So, I've taken just a marketing minute to do just that.

For those of you who have any involvement with marketing, brands or are considering using social tools for your company, I encourage you to read Tom's post. It won't take long, but it may wake you up to some a simple truth that could save you time, money and disappointment.

I've seen this movie before, but it bears a repeat viewing. Bottom line, it's about putting the horse in front of the cart, not vice verse. Business Objectives, Strategy, and Brand should all precede the consideration use of a tactic such as social tools and media. If you'd like to read more on this, check out my post on "Social Media - Beware of Shiny New Objects."

So, to mix metaphors, are you a tweeting emperor or are you putting the cart where it belongs?

The 1/99 Rule - What it Means for Marketers

 

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Ever hear of the 80/20 rule?  You know, the principal that says that 20% of the people/projects/etc. contribute 80% of the output/progress/etc.  Well, that rule doesn’t apply when it comes to social influencers.  

Jackie Huba's keynote presented an interesting case for what I’d call th “1/99 Rule” at last week’s NewComm Forum 2010.  Her findings: only 1% of visitors to sites (social or otherwise) actually create the content that the rest of the universe views (that’s where the 99 comes from). 

Interesting stat.  But, what does this mean for Marketers?  Well, if you’ll give me just a marketing minute, I’ll tell you.

Sharpen Your Pencils…and Your Marketing

One thing I find interesting is that this is not so much a radical shift in focus as a sharpening of focus (okay, maybe a big sharpening, but a sharpening nonetheless).  And, it backs up one of the key strategies in social marketing: identify and energize the people who will spread the word on your Brand’s behalf. 

This perspective also runs counter to a commonly held view that the social web has established a “citizen journalism” where anyone can create and publish content.  In theory, this would create an “equal” playing field.  In fact, this 1/99 Rue demonstrates an “inequality,” rather than an “equality.”  When it comes to real influence, these “One-Percenters” are truly inordinate influencers in today’s world. 

And that, my friends, is the kind of leverage point smart marketers should be seeking.

News You Can Use

Jackie provided some straight-forward advice for marketers seeking to act on this set of insights.  The high level objective in this new arena: seek to create a customer who in turn creates another customer(s) for your Brand. 

Boiled down to blog length, here are 4 Tips Marketers should apply to achieve that goal:

  1. People ARE the Message - It’s not so much about getting your Message to the People, it’s about recognizing that People ARE the Message.  For any brand, the key audience are those One Percenters, the people who are actually creating content.  Find/attract them and you have taken your first step toward your end objective.
  2. Give People Something to Join – Human beings are social animals (and not just online).  We like to participate and share experiences with others who share our interests. One Percenters will readily “join” a Brand, a cause, a community if you provide them with something they can love.  Doing so helps to create “ambassadors” for your Brand, like Maker’s Mark did when they established their Ambassador Program
  3. Participation is the 5th P – The One Percenters are not only the people who create the content, they are the people who SHARE the content that they find.  They actively participate in the conversations and discussions regarding a Brand, Cause or whatever their interest.  So, smart marketers will give these folks things that they can share with the broader community and keep them participating.  This does not mean coupon drops via Twitter; it’s about providing information and content of interest to the community.  In Jackie’s words: “Give first, and you’ll receive later.” Translation: Don’t be a self-centered, commercial glutton who demands instantaneous gratification; you need to be patient, take a long-term view and serve your community’s needs first…you’ll get your ROI over time (if you can wait more than a week…if not, then this may not be a path for you).
  4. Build a Culture of Loyalty – One key to help propagate and build your community of ambassadors and fans is to provide “insider cues” that the community will adopt and share.  It’s these “shared cues” that helps reinforce the feelings of community and belonging that increases a sense of loyalty.  Jackie cited Lady GaGa’s social marketing activities as an example.  The diva phenom provides lots of content for her fans to talk about, capture and share (be it Flip videos of her concerts that allows millions to share the concert experience, her tweets of the “little monsters” tattoo she added to acknowledge her adoring fans or the “clawed hand” symbol that her fans have adopted as a shared symbol). 

Some of you out there may be reading this and saying: “Um, we’ve heard this before.  This doesn’t sound new to me.”  And, I’d agree with you in some ways.  Jackie has outlined some fundamental principals that have been articulated in other ways, so I concede it’s not radical “new news” (although I like her take on the One Percenters and her very practical advice).

However, two things DO strike me as noteworthy.

  1. It’s not always about numbers – Sorry analytics mavens, but to be successful in this arena you need more than a spreadsheet full of metricsI.  When it comes to identifying and attracting the One Percenters, it takes a deft creative hand/mind to conceive the ideas that engage and encourage participation and sharing.  There’s no algorithm for creativity or consumer insights that leads to moves like GaGa.   It’s better to think like a sociologist or psychologist than a mathematician when it comes to creating these shared symbols and experiences.  (And THEN you can start to analyze what’s working and what’s not)
  2. If it’s so obvious, they why aren’t you doing it? – The truth is that there IS a small group who does really understand this arena and are practicing these principles.  But, not everyone or every company/organization falls into this category (in fact, most don’t).  So, if you already “get it” and are walking the talk, I salute you!  And, if not, I hope that the above gives you some news YOU can use in your efforts to create more customers who are loyal, engaged and connected to your Brand.

I’m a member of MENG (Marketing Executive Networking Group), and I felt I represented the membership in many ways at this event, exchanging ideas with thought leaders in the emerging and ever-evolving world of social tools, technologies, marketing and media.  I’ll be sharing other insights I gleaned from NewComm Forum 2010 in days to come.

But, my minute is now up.  It’s your turn…what do YOU think?

Social Media is Wrong

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“Social Media” is wrong.  There, I said it.  Now, if you’ll kindly give me just a marketing minute, I’ll tell you why.

 

I was reading a thought provoking post by Eric Flethcher, ”Conversations, Relationships and Renaming Social Media,” over on The Social CMO (excellent blog – I highly recommend it) that got me thinking about this.  Eric raises many good points in his article regarding some barriers to companies accepting/embracing social media - corporate fear of losing control, executive fear of engaging in a “conversation” (being “forced” in this direction), etc. 

 

Eric does a nice job of reframing the issue, and the opportunity.  One of his final suggestions: come up with a new name for “social media.”  He has his reasons, but this thought resonated with me for a different set of reasons.  Actually, it’s a thought I’ve been struggling with for some time.

  
Misleading and Limiting

"
Social Media" as a term is wrong on a number of levels.  Primarily, the term is misleading and limiting – it creates misperceptions, conjures up thoughts that narrow the outlook, potential and application of these new technology tools on behalf of an organization.

 

For most, the word “media” is associated with the communication channels we’ve all grown up with and which continue to sprout up around us.  Per the dictionary, the noun “media” is most commonly defined as "the means of communication, as radio and television, newspapers, and magazines, that reach or influence people widely." I think in today's world we can add online, and even some social networks, to that definition.

 

Certainly, one can argue that this IS one way that these new social networks, tools and technologies can function.  They certainly CAN be used as communication and/or promotional conduits for our messages.  No argument with that. 

 "Social" is NOT Just "Media"
But, that’s only one usage and potential application of these powerful tools.

  • Is asking the opinion of hundreds or thousands of people in your target community for input or feedback on your new product concept, new flavors, features, etc. really “media?”  IMO, not really – that’s marketing intelligence, real-time feedback, research...not "media."
  • Is paying close attention to customer comments and/or complaints on the Internet through the use of sophisticated “listening tools,” then swiftly responding to them really “media?”  Not IMO – that again feels like real time market intelligence with a good overlay of customer service on top.

I could go on, but the main point is this:  “Social” is not just “Media,” at least not in the way that the overwhelming number of people (including business and marketing types) think of it.  It is so much more.

 

What's Wrong With This Picture
This mislabeling can have two (at least!) potentially negative effects:

  • It encourages the wrong set of actions – Companies and executives are too quick to only view these tools in the context of a marketing communication channel, and may therefore rush out to stake their claim in this new form of media.  That can lead to what I call SNOS, or “Shiny New Object Syndrome.” It’s not strategic, it’s not integrated or related to the organization’s objectives and it could lead to serious disappointment, wasted time and money...you get the idea.
  • It limits strategic application of very powerful tools – Today’s tools have many uses for the savvy business executive and marketer.  From product research to consumer insights to evaluating brand perceptions/saliency to customer service…and, yes, to the more prevalent ways we think of these tools for marketing communications and relationship building.  Right now, many companies are struggling with social because they are only looking at a small portion of how they can utilize these tools (Twitter accounts, Facebook fan pages and promotional activity, etc.).  That’s a tremendous opportunity lost, in my estimation.

One can (and many probably will) argue that all of my above examples are still forms of "media," that it all leads to building better, more productive relationships no matter what an organization does (as long as it is engaged in these conversations and building these relationships).  Some may say we're dancing on the head of a pin here.  I can understand these perspectives; but, I don’t fully agree with them. 

  

 In a world of short attention spans, limited time and a tendency to be reactionary rather than strategic, little things like “names” can be very powerful signals that lead us in one direction or another.  And, I’m of the belief that using the term “social media” is sending the WRONG signals and making it MORE difficult for those who grasp the potential of these tools to make headway in helping their companies fully leverage these potentially powerful technologies.  As much as the old term “Web 2.0” was derided and lacked clarity, it did allow for a broader platform of potential application and uses.

So, I’d like to see another name.  I’ve been using the clunky term “social tools and technologies.” It will not win me any prize for brand naming brilliance, but it more clearly describes what I’m talking about and allows me to focus on the objectives and strategies of an organization and how we might use these tools to further those goals.

What about you?  What would you do if you were to rename “social media?”

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A Debate for the Soul of Marketing

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"Our Biggest Brands Can No Longer Be Managed By Nerds"

The above headline grabbed me.  Turns out it's a thoughtful Ad Age/CMO Strategy commentary by Tom Hinkes on the state of Brand Management.  It got me thinking, so I had to take just a marketing minute to post and share it with you.  

I highly encourage every marketing professional, from CMO to assistant marketing coordinator, to read this article and think about it.

While the headline may be a bit much and the term "nerds" may offend some, the point is well made – the marketing world is increasingly hiding behind numbers to justify business decisions, rather than using data to inform and stimulate forward thinking and creative solutions.  As the author points out: "More data is not better data."  And, he goes on to paraphrase David Ogilvy by saying: "The result is today's brand manager who...uses data 'the way a drunk man uses a lamp post, for support rather than illumination.' " (Gotta love that Dave Ogilvy)

Are You Right or Left? - And I Don't Mean Politically
One thing that drew me into this profession was the requirement for right brain/left brain thinking.  Personally, I'm all for appropriate use of data, research, and analysis, and enjoy applying these skills in my job.  Some of my best friends crunch numbers.  I've been known to bask in the glow of a well-designed forecasting model (don't spread that around too much).  And, I insist that we track and measure our marketing program performance so we know if what we are doing is on track, off the track or somewhere in between.

However, I agree with the general thrust of the article that the pendulum can swing too far -- great breakthroughs don't all stem from the left side of the brain.  In fact, it works quite the opposite. 

To be clear: that left side of the brain is absolutely critical.  We need that side, and we feed the left hemisphere of our brain data, information, numbers, statistics, research, etc. until it is full and about to burst.  Then, we let it digest.

That's when the magic begins.  Studies have shown that the subconscious mind takes all this data absorbed by the left and plays with it, turns it over and over, looks at it sideways.  Eventually, insight, inspiration and ideas begin to bubble up over on the right side of the brain.  The proverbial light bulb goes off, the "aha! moment" occurs.  Some call it "vision." 

Balancing the Pendulum
So, both sides are important.  And, neither side is effective completely on its own.  Imagine a world run by exclusive right brain thinkers -- lots of ideas, but little in the way to filter, screen, evaluate, monitor, etc. those ideas.  Feels kind of chaotic, lacking in discipline and focus.

At the same time, when the left brain assumes totalitarian leadership, the results are static, minute, uninspiring, lacking in breakthrough.  Feels pretty boring to me.  It's brand paralysis by analysis.

I believe that great marketers and the best marketing leaders have that right side/left side balance.  They know how to analyze, dig, research, evaluate all sorts of data.  But, they also know how to synthesize, interpret, extrapolate and use that data to create a new vision for their Brand and/or company.  These are the people who lead true innovation, create breakthrough products or methods; these are the folks how are truly game-changers in their fields.  

It doesn't feel to me like there are enough of those people in this world, nor does it feel like those right brain/left brain folks are valued as much as they should be.  It's not easy, it's hard.  It's not safe, it's risky.  It's not immediately measurable, it's intuitive.  It's not tactical, it's very strategic.  But, it's necessary, lest every product we see on a shelf or in a store or online be a line extension of something that already exists. You know how that feels? ZZZZZZZZZZZZZ...

The Great Debate for the Soul of Marketing
To me, this is really a
 debate over the soul and future of marketing.  (pause for melodramatic effect)  But, it's really not a new debate.  It's really a heightened debate, one fueled by the explosion of technology and tools, and compounded by an economic recession that has scared most people into greater fear and risk aversion than normal.

Whether you agree or disagree, it's hard not to have an opinion.  So, what do you think?  Is this a trend?  Is it good or bad for the future of marketing and business?  Let me know what you think and let's get a conversation going. 

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Can Social Media Marketing Replace Advertising?

Outlook

“If you can harness social media marketing, you don’t have to pay for advertising any more.”

So said Sequoia Capital partner Mark Kvamme, citing examples from campaigns run on Funny or Die and AdMob as he presented to an audience of marketers at OMMA Global in San Francisco on St. Patrick's Day (GigaOm did a nice job of encapsulating his speech in Liz Gannes' post, "Sequoia's Kvamme: Social Media Marketing Can Replace Marketing")

HO-boy!  I may need more than just a marketing minute to digest and dissect this one.  Maybe just a marketing hour or two.  But, I'll stick to my guns and keep this reasonable for you.

There are a couple things that I think are dangerous here.

Problem Number One: There Is No Such Thing as Free
First, Mr, Kvamme is engaging in the frequent falsehood that anything one chooses to do in the social arena is "free."  That mistaken belief is one of the biggest barriers that is keeping companies and organizations from properly planning for and implementing social tools and technologies into their overall business plans.  Many have written on this subject, so I won't belabor it.  Bottom line, social efforts are NOT free.  It may not be like shelling out $2+ million for a Super Bowl :30, but it is by no means free.

Problem Number Two: Change Does Not Equal Extinction
Mark, we get it. The world of marketing is changing. Correction: HAS changed. But, your comments imply that because change is occuring, something must die.  Something will become unnecessary, unwanted, unused (that would be the aforementioned "paid advertising").

However, “change” does not mean "extinction."  I hardly think that all other forms of media, communication or entertainment are going to go away completely. After all, even extinction takes a long time (see Darwin’s ‘Origin of the Species’ and the theory of evolution).

One Big Misunderstanding?
Are we
 misunderstanding what Mr. Kvamme is saying (or said)? I mean, I can’t imagine that a high profile VC would EVER make any sort of bombastic, outrageous, hyberbolic statement in front of a big audience like that in order to get some press.  OK, maybe he (or someone) would.  So, let's stick with the hyperbole path for a moment.

The problem with hyperbole and rhetoric like this is that it rests on an assumption that everything works in the same way. That’s naive and dangerous thinking. There are many brands, many products, many services and they are obviously NOT all the same. Likewise, their objectives, goals, problems, needs, etc. are NOT the same. One size does not fit all. So, social media eliminating advertising as a tool for marketers? Maybe for a few, but not for all.  In fact, not for all that many in the short run.

So, Where Do We Stand?
Don't get me wrong.  I am a BIG proponent of social tools and technologies, and see incredible opportunities for companies to utilize these tools in alignment with their overall business objectives and strategies.  But, I'm also clear on what role social plays in a marketing mix, alongside other tactical tools.  It's only a part of the mix.

What remains key is the marketing science and art.  Fundamentally, we need to intimately understand
- our business objectives for our organization
- our consumers, from who they are to brand perceptions to behaviors to media consumption patterns
- how our brands fit into our consumers' lives, fill their needs, solve their problems, enhance their lives, etc.
- what brand messages will impact our consumers' attitudes in a way that ultimately reinforces a desired behavior (whatever we decide we want that to be)

- what are the best ways to reach our consumers with our brand's message(s)

Then, we build a plan.  (I'll skip the other "P's" in the marketing model for now)  It may include social (I hope that it does), IF social tools and technologies help to further the organization's business objectives.  And, IF social tools will best accomplish that, then they will (and should) be a critical part of the plan.

I just have a hard time believing that all the eggs will, or should, be in one basket.  That's like saying let's put all our marketing dollars into the Super Bowl (wait...MasterLock did that for years...okay, maybe there are some exceptions that prove the rule). 

It's all part of the overhyping of the social world.  It's the Shiny New Object Syndrome.  To be sure, it IS a new world order, but that new world order is coming to us courtesy of evolution, not armegeddon.  In the plainest of terms, let's not throw the baby out with the bath water.

Enough of my comments.  My minute is more than up.  What I'd like to know is...what do YOU think?

 

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How to Succeed by NOT Succeeding at Viral Marketing - Apple's iPad

Some times you can be more successful by NOT being successful.  That's the case with Apple's iPad and their lack of viral marketing for their recently aired tv commercial.

In today's AdAge Digital, there's a column written about Apple's tv commercial for the iPad that ran during the Oscar's. The post calls out Apple for the company's apparent lack of willingness to actively participate in the social media explosion and try to secure huge viewership for its ad on the Web, i.e., "go viral."

It's a back-hand chastisement, a form of what they call "social aversion." The article even quotes an expert in the field as saying: "They [Apple] have willfully abstained at a time when everyone else is hopping on this bandwagon." The fact that "web viewing has stalled" is apparently cause for much handwringing among these circles.

Guilty as Charged
Oh, boo hoo hoo! If we'd all take just a marketing minute to think clearly about this, it would not be such a big fuss.

Since when did "hopping on a bandwagon" demonstrate business intelligence, creativity, leadership or insight into how to market a brand? Or, convey any success on a business?

I say Apple is guilty of whatever these folks are charging them of. And, I say: good for you, Apple! You are not falling prey to SNOS, Shiny New Object Syndrome (see my related post "Social Media - Beware of Shiny New Objects")! All Apple has done is think strategically (perish the thought!) about its marketing for the iPad.

Lack of "viral-ness"...so what?
The fact that there isn't a lot of "viralness" to the iPad Oscar commercial means little to their business. After all, since when did web views of a tv commercial become part of a business strategy?  Apple doesn't need that. The iPad is already all over the Internet. There has likely been few products that have been buzzed about, shared about, socialized about as much as the iPad (except maybe the iPhone...hmm...same company...how did that happen?).  It's time to reach for the broader, non-geeky public to create another "must have" product sensation.

Now, I do have to say that the commercial itself is not all that incredible. If you've seen the slew of iPod Touch or iPhone commercials, this looks pretty similar, only bigger (and with e-books). It's okay, but it's not something that I'd really go out of my way to talk about. But, Apple's fanatics will do that work for them eventually and pass it/share it/post it all around. Give it more than a day, people.

I'm thrilled to see that Apple is not putting tons of energy into trying to force the commercial to go viral (that usually backfires - see this post on "Viral is as Viral Does"). I'm thrilled when I see any company being STRATEGIC, and using their strategy to drive the tactics rather than vice verse. The author even acknowledges this in his article: "For Apple, it's all about driving the viewers to Apple.com, and a potential sale; dissemination of the video itself is secondary." Don't know about you, but I LIKE that line of thinking from Apple.

Apple is not guilty of the dreaded SNOS so many companies are falling prey to in our social media-mad world. No siree. Instead, Apple focuses on CREATING those Shiny New Objects so many people covet. In my opinion, THAT'S the approach worth sharing.

So, what do you think? Do you think Apple is taking the right approach in their marketing launch for the iPad?

Social Media - Beware of Shiny New Objects

Outlook

Many of us like “shiny new objects.”  You know what I mean -- the latest cool gadget, thingie, possession or hooha to hit the market.  The iPod was such a thing (before it became ubiquitous), like the SONY Walkman before it.  HDTV’s, luxury SUV’s, designer jeans, cappuccino makers…all shiny new objects (some literally!). 

 The business world has “shiny new objects,” too.  Take social media for instance – it’s the business equivalent of the latest “hot, gotta-have” thing.  The problem is, that can be downright lethal in today’s business world.  If you’ll give me just a marketing minute, I’ll explain why.

SNOS - Shiny New Object Syndrome

There’s a disease that I call “SNOS,” short for Shiny New Object Syndrome.  In general, here’s how that disease works: There’s something new and cool and leading edge out there.  It’s so cool that we just HAVE to have it, and we need it now.  Do we need it? How will we use it? Is it right for us?  We don’t care…we don’t even ask the question.  We just want it.  And, we buy it.  If we’re lucky, it works out as a wonderful possession.  And, some times it ends up gathering dust in a drawer some where (it happens to all of us…c’mon, admit it!).

 

SNOS is particularly insidious in the business world.  It’s distracting.  It sneaks up on us when we are not paying attention.  It hypnotizes us.  And then, it strikes.  In comes the CEO who tells his team that they must “get our Facebook page up, pronto!” to remain competitive.  Or, a company establishes a Twitter account and inundates the twittersphere with discount offers. 

 

To be clear, in today’s world I see nothing wrong with experimentation or getting into an area to learn what works and what doesn’t.  In fact, I’d say that if you’re not willing to do that, you should get into another field. 

 

But, the above are real-life examples and emblematic of a critical mistake all too frequently made.  These examples represent tactics leading strategy.  They skip important questions: what do I need this for?  How can I use this new tool?  And, most importantly: What are my overall goals and objectives and what role can this new tool play in helping me accomplish those goals/objectives?  And, how will I evaluate if it’s helping me/us to accomplish our goals?

 

In this headlong rush of confusing a tactic with a strategy, organizations waste time, energy, resources chasing a “shiny new object.” By skipping these questions the organization can find itself distracted from its main goal and/or mission.

 

What’s the SMADer With You?
Is this the fault of Twitter, Facebook, LinkedIn, FourSquare, etc., etc.?  Hardly – they are merely platforms and tools.  In fact, they are potentially powerful tools if handled properly.  Breakthrough tools.

 The sad part is that once a company or executive has fallen prey to SNOS you are at risk of a very serious side effect I call “SMAD”Shot, Missed And Disappointed.  That happens when you try something new; it doesn’t perform miracles, meet expectations or achieve your objectives (often because objectives/goals have not been clearly articulated) and you feel like you’ve been burned by the results.  You’ve shot, you’ve missed and you are disappointed. 

 

So, you discard the shiny new object; those potentially powerful social tools are shoved in a marketing drawer, declared not worth the effort or money.  And, you miss the opportunity.

 

That happens all the time with marketing tools and it’s happening with social media.  Sorry to say, we are living in a world of instant gratification, quick returns, overblown expectations and a lack of forethought and patience.  If you don’t believe me, ask anyone who has taken in any VC money in the last 15 years.

 

A Cure for SNOS and SMAD

Fortunately, there’s a straight-forward and ready cure for SNOS and SMAD.  I call it BTBBack To Basics.  (this is my week for acronyms…I hope to recover soon)

 

Objectives lead strategy, strategies lead tactics.  It’s fundamental.  And, all too often, forgotten when a shiny new object gets us all excited.  But, while undeniably exciting, folks, social is just a tactic, a tool.

 

Begin at the beginning, like we all are trained to do.  Business objectives/strategies and marketing objectives/strategies precede and direct whether, how, where, when, and IF social (or any tactic) plays a role in your efforts.  If you follow fundamental strategic practices in developing your business goals and marketing plans, social may very well be included.  But, it's not a driver, objective or strategy any more than a TV commercial, print ad, end-aisle display, market research study or price discount promotion.

 

If included in your marketing efforts, social should be a part of an overall integrated marketing plan, synergistic with other tactical efforts, not just putting up a FB fanbook page to say your brand has one.  In this regard, it serves much like a channel, albeit a channel with unique differences to all the other channels that have been employed by marketers for years. 

 

Put another way, social should be used as one way to help achieve the overall objectives of the organization, Brand, department, individual, etc.  It should be synergistic with other efforts and programs you may be deploying.  And, approached properly, social tools can/should be broader than just “marketing” efforts; it’s an enterprise-wide opportunity.

 

(For some good perspective on a strategic approach to social initiatives, I highly recommend checking out the work of Charlene Li and Jeremiah Owyang at The Altimeter Group.  They’ve got some excellent perspective and advice in this area, like this presentation.  Other good tools can be found on Jay Baer’s Convince&Convert blog.) 

 

If you take a strategic approach you may find that your organization’s business objectives don’t merit a major foray into the social world right now.  Not all tools are needed for all people, organizations or circumstances.  If that’s the case, then fine – don’t spend the time or energy right now.  At least you’ve asked the key questions and made decisions for reasons that make sense for your organization or company.

 

The good news?  I see signs that SNOS has been recognized by more and more organizations.  The excitement and rush to shiny new social objects “just because” is ebbing as people become smarter about how to properly employ these tools. 

 

This won’t happen overnight.  But, by thinking strategically, moving thoughtfully, implementing consistently, monitoring regularly and practicing patience with the view toward a long term goal you’ll be taking a healthy and smart approach.  Get back to basics…it’s the way to avoid that dreaded Shiny New Object Syndrome.   

 

In upcoming posts I’ll share more thoughts on how to strategically cure SNOS and SMAD.  In the meantime, ask yourself: “Am I or is anyone I know suffering from SNOS?”  Are you SMAD? Let me know your thoughts…the doctor is in.

 

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Of Roses, Silk Purses and Sow's Ears - Comcast Rebrands to Xfinity

Comcast_xfinity_logos_with_que
 

When does a rose by any other name smell like a sow's ear?  When it's Comcast rebranding its consumer offerings as Xfinity.  If this mix of Shakespeare and the vernacular strikes you as a bit odd, allow me just a marketing minute to explain myself.

Comcast, the largest cable operator in the U.S., is undertaking a rather large effort to recast its image among consumers by renaming all its cable services under the Xinfinity brand.  This follows their move late last year to rebrand their Fancast online video subscription service FancastXfinity.  As noted in yesterday's Wall Street Journal, this move is an effort to appear more modern and appealing, as "its image as a monopolistic cable giant with shoddy customer service, clunky technology platforms and rising prices is well ingrained in the public mind, drawing a sharp contrast with new media brands like Netflix Inc., YouTube and Apple Inc."

Interesting comparison.  Still, this is like the question upside down, backwards, or both.  It isn't a brand issue in my estimation.  I'll repeat: "monopolistic cable giant with shoddy customer service, clunky technology platforms and rising prices."  Get the picture?  I would imagine that if Netflix, YouTube or Apple had "shoddy customer service, clunky technology platforms and rising prices" they, too, would have negative customer perceptions. 

 

We all know: changing a name or rebranding your services does not address the core issues plaguing Comcast and its negative consumer perceptions.  Consumers are pretty smart and discerning.  They know a good product when they see it, experience it, use it.  And, they know a bad one (well, most of the time...how else has the National Enquirer survived for so many years?). 

And, it's also not just a matter of monopoly or pricing.  Apple has historically commanded a price premium for its products, yet consumers value the company's products, technology, user experience, value offerings, etc. and are willing to pay that premium.  That's called the value equation.

If Comcast service were terrific (or at least customer friendly on a consistent basis), their technology strong and innovative (and, in some ways they are), then I don't think we'd be seeing so many negative comments or customer created web sites with names like "ComcastMustDie.com." 

 

I am not on the inside privvy to all the information that has probably been collected, reviewed, analyzed, debated and regurgitated in the process leading up to this move.  So, I can't totally fault Comcast for trying to address a problem.  There are plenty of smart people involved, and I will accept that they believe that this is the best way to proceed.  As Tim Calkins, marketing professor at Northwestern University's Kellogg School of Management, noted in the WSJ, "I suspect they're calculating that starting fresh by investing in a new name is a better option than trying to reposition the old one."

 

But, this is not simply a matter of repositioning.  The bigger question I have is: is this the best way to spend the money to address the problem?  The expense, in terms of out-of-pocket dollars and management/personnel time, to rebrand its service, conduct the launch marketing effort, as well as follow up efforts to further entrench the new brand will be a very big number (no one is saying how big, but let's face it...it will be huge).  I can't help but wonder if that same money were applied to directly addressing the core problems - "shoddy customer service, clunky technology platforms and rising prices" - might actually yield a better, more effective solution and longer lasting benefit for both customers, the company and its shareholders. 

 

Companies who undertake these types genuine of product/service quality improvement efforts gain credibility with their customers where it counts - in the perception of their products.  Two auto industry examples demonstrate this - Ford's "Quality is Job 1" efforts (which was a slogan built upon Ford's concerted efforts to improve their car quality) and more recently the turnaround in quality (and quality perceptions) of Hyundai.  Do you think it is a coincidence that Hyundai was the only auto manufacturer to realize growth in a disastrous 2009 auto year?

 

Brands are not just names. A Brand is a totality of a consumer's interaction with the product, functional and emotional, rational and irrational.  "Rebranding" (and I hate that term) does not change the underlying functional/rational qualities of a product or service, or the experience a customer has in using that product or service.  That comes by changing the service itself.  Merely changing the name doesn't address the core issue; it covers it up, but it doesn't make it better, more efficient, friendlier, more on time, less confusing, etc.  You can't make a silk purse out of a sow's ear without changing that smelly ear in a meaningful, recognizable way.

 

Which brings me back to my point: a rose by any other name would smell as sweet...or as foul as a sow's ear.

 

So, what do you think?  Is this a good move by Comcast or a distracted effort?

 

P.S. Don't even get me started on the name "Xfinity" itself...

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