A Tale of Two CMO's: Interest (Part II)

If you haven't read my blog in a little while (don't worry, I forgive you), you might have missed the fact that I'm working on a five part series titled, A Tale of Two CMO's: A Study in Contrasts. The goal of the series is to contrast the styles of an old school and new school CMO whose personas I've fleshed out in my original post. During last week's installment that focused on generating brand awareness, James' and Tessa's responses sounded more similar than different. This week, you will start to see a more noticeable divergence in their positions (a trend that will continue as we move down the marketing funnel).

----------

What role does search play in fostering consumer interest?

James: For us, paid search (SEM) and search engine optimization (SEO) have become a major component of our day-to-day marketing efforts. To be honest, I can't think of a better way to "fish where the fish are." I just wish there were more relevant search queries to buy and page views to serve up. Right now, we max out our key search terms and as it turns out, we're still only spending 3-4% of our overall marketing budget on SEM and SEO. Obviously product ads on television, print and online also play a huge role in driving customer interest. I don't see this going away anytime soon.

Tessa: Yes, search is a great tool. And as James mentioned in his repsonse, our company also continues to use product specific advertising to drive consumer interest. However, we've been experimenting recently with our newly launched branded online community (four months old) and are starting to see some amazing results. In fact, where we are seeing the most traction is when we take a prospective customer from a paid search term to our branded online community (heavily threaded throughout our website). We've done a series of A/B testing using the same keyword and while the sample sizes are still small, the prospects we've surveyed post-community visit have shown a 3-5% increase in brand affinity and interest in a specific product vs. those that haven't visited our community.

----------

Thoughts on a branded online community's role in helping foster brand interest?

James: I 

About nine months, our director of digital marketing tried to convince me pilot a branded online community. While I am not opposed to the idea, investing another $500,000 to a million dollars in something in which very few companies have shown demonstrable success just seems premature to me. I'd rather reinvest that money in paid search or perhaps think about testing out a small ad buy on Facebook where there is some critical mass in the two to three hundred million users.

Tessa: As I mentioned in my last response, we are starting to see some real traction in our branded online community driving not only interest in our products but also creating a deeper level of brand engagement. It's also starting to move the needle ever so slightly on the NPS (Net Promoter Score) front. My only complaint with the community so far has been a lack of critical mass. We're starting to get there with over 150,000 members thanks largely to making the community more visible from all areas of our website and select Facebook ad buys. Ideally, I'll really start to pay attention when we get north of 500,000 members.

----------

How about the greater social Web? Are you testing places like Facebook, Twitter or LinkedIn?

James: I know a probably seem like a dinosaur but I'm still not convinced that there is real upside to participating in the social web yet. Of course our HR department uses LinkedIn to recruit but beyond that, we haven't done a whole lot. Our corporate communications people have started a Twitter and a Facebook account but mainly use it to post press announcements. To me, I see what's happened with companies like Southwest Airlines, and Nestles and I think, "do I really want to open our company to that kind of criticism?" I'm sure we'll get there at some point, just not until the rewards outweigh the risks.

Tessa: We are testing various outposts on the social Web like Facebook and Twitter to see if we can do a better job at engaging our prospects and customers. I'm not sure I can look at our Facebook Fan page and say, "wow, look at all the consumer interest we're generating," because Facebook doesn't really work like that. With that said, if we can do a better job at providing valuable content to our prospects and customers while engaging them in meaningful dialogue, that looks like success to me. As for LinkedIn, that's been mostly a recruiting tool for our company but I do see promise based on some of the conversational capabilities they've added over the last 6-9 months.

----------

As we can see, we're starting to see a little bit of a divergence between the way James and Tessa view social to drive traditional marketing outcomes. Next week, I have a few additional twists and turns up my sleeve so don't think we're done just yet. By the way, if you have any questions for our two CMOs -- trick or straightforward, let 'em fly in the comments!

Social Media for B2B: It CAN be done

This was originally posted on my friend Tommy Landry's blog, Return on Now, as a guest post on February 8, 2010.

Why is it that when it comes to conversation about social media, business-to-business (B2B) seems to draw the short stick every single time? As someone that does a lot of webcasts, blog posts and speaking gigs, the questions/comment that always comes up is, "what about B2B examples." Fortunately for me, I'm able to mention companies like BreakingPoint Systems and Hubspot that do a great job tapping into the power of social media but I often wish there were more examples (with public results) that I could discuss.

In thinking about this topic, one of the main reasons that B2B has taken a little longer to adopt social media into its marketing mix is that it's harder to do effectively. It's also feels risky because there is less control then there is in other channels. With that said, I personally believe that B2B companies stand to benefit the most from social media because they live and die based on the strength of their customer relationships. On top of that, many B2B companies actually know exactly know who their prospective customers are so seeking those folks out in a meaningful way and creating relationships with them can have a huge impact on the bottom line.

Given that I'm a prescriptive kind of guy, I'd feel remiss if I didn't offer up some ways that companies can start thinking about putting social media into practice. There are obviously tons of ways but here are a few (including a diagram that provides more color commentary on item number three):

1. Start listening. This is easier to do than you think. Set up a Google alert for your company's name, your competitors' names and keywords for your industry. If you're already doing this, consider hiring a "listening" service like Techrigy, Radian6 or Meltwater Buzz. This will help you find out where all the relevant conversations in your space are happening.
   
2. Create a Twitter account for your business. However, resist the urge to put up links to press releases, product specs and links to press that are signing your business's praises (at least out of the gate). Instead, talk about things that people in your industry care about. For instance, if you create bill payment software, talk about the needs of small to medium sized businesses across the financial spectrum (payroll, credit, vendor managment, etc.) Link to reports and industry analysis. Point out other people's blog posts and magazine articles.
3. Set up a blog. Before you do this though, make sure you have someone (ideally internal) that is willing to commit to posting at least 5-6 times/month. This can be someone on your marketing, product, or PR teams or even better, one of your executives. Think about creating an editorial calendar to help guide your topics. Most importantly, spend time looking at other industry related blogs -- in fact, you should spend at least a month doing this before you set up your own blog. Be sure to comment on those blogs (talk about the topic, not your company). This will help with getting to know the relevant "social" people in the space.
4. Create an online community. Once you've gotten comfortable with items 1-3, start thinking about a online community. Ideally, this is for both customers and prospective customers. Some businesses feel more comfortable about creating private communities where customers can talk to one another. The key either way is to hire a great community manager and let them help you create relevant content via webinars, blog posts and conference calls (see diagram below). A community manager will also help you draw out your customers and insure that conversations stay relevant and productive.
5. Measure, measure, measure. This is less difficult than you might imagine. This really should start with looking at your current goals i.e. new customers, greater retention, larger share of wallet, referrals, etc. Then make sure you benchmark e.g. look at your webstats and current KPI's before you launch your social efforts. Then look at how your moving the bar over time. A key place to look is at your web analytics to see what kind of traffic and engagement your Twitter feed and/or blog efforts are driving. Also, it doesn't hurt to survey customers and ask them if your efforts are impacting their loyalty to your company.

I won't lie to you, everything I mentioned above takes effort. But it's worth trying, especially when it's done right, because it will yield results. One thing that I failed to mention is the importance of integrating the recommendations above with your existing marketing/channel activity. Social media doesn't live in a vacuum and if nobody can find the fruit of your efforts, you may as well not have exerted the time and resources.

Am I missing anything? You bet I am. But that's where you come in. What types of social media have you tried? What's worked? Please feel free to share in the comments section below.

2010 Predictions from Social Media Breakfast Austin

Earlier this week, my friend, Bryan Person, invited me to be one of ten speakers to offer a prediction up for 2010. Bryan wisely segmented the group into categories (see below) so that you didn't get the same prediction several times.

Wesley Faulkner | fundraising
Dara Quackenbush  | education
Sheila Scarborough | travel/small biz
Lisa Goddard | nonprofit
Mike Chapman | public policy/politics
Tim Hayden | media & events
Kathy Mandelstein | B2B Marketing
Aaron Strout | brands
Deirdre Walsh | B2B marketing & community
Jen Wojcik | recruiting

My prediction (branded online communities) comes about three quarters of the way through but I strongly recommend that you listen to all ten as you'll find some interesting and useful insights.

• Blog post wrapping up the breakfast (including PPT presentation of photos and memorable tweets)
• Blog post with embedded Scribd document of the predictions
• SMB Austin Ustream page
• SMB Austin 11 presentation: Photos and Tweets (Slideshare.net)
• Event photos by Callie Richmond

What are your predictions for 2010?

Photo credit: Callie Richmond Photography