Who should own social media?

There’s a struggle going on in big companies around the world: what organization should own social media?  The social media pundits say “everyone should own social media.” But it’s not that simple. Here are some of my musings.  Thoughts?

When no one is in charge: land grabs and boom towns gone wrong

We’ve all been in towns and resorts that have been ruined because of land grabs, dominating developers and lack of good zoning rules.  These places are ugly mishmashes of over-development, feeling less like a community and more like a developer boomtown gone horribly wrong.

Six years ago a team led by Dr Walter Carl, now CEO of Chat Threads,   and I  researched the root causes of issues between real estate developers and local citizen, environmental, economic development and neighborhood groups. (“This Land Is My Land…But Could Be Our Land: Developing Influencer Relationships to Accelerate Development Success.”)

The report conclusion was that community groups distrusted and disliked developers because developers didn’t effectively listen to them, didn’t engage with the intent to educate and build understanding, and didn’t accommodate their interests in what was eventually built. The developers said the right things to these groups, but they were largely disingenuous. In the end their developments served just one audience:  potential customers for their properties.

This community development metaphor is relevant to how many large companies are approaching social media.   Lack of zoning guidelines, an influential, dominant organization controlling the best “real estate” to reach prospects, and other less dominant groups having to fight the controllers to get beach access for their audiences. This is the mess that big enterprises are either sorting out – or working to avoid.

Real world community development metaphor:  who is best to be the town planner?

Humana, with one of the most innovative enterprise social media strategies, is using the community development metaphor — the Town Square –  to guide its company-wide social media strategy.

The centralized Humana social media group serves as the town planner, making sure every organization gets prime real estate, follows zoning guidelines, and understands community rules.  Yet the “town planners” also empower people and organizations to develop strategies within these guidelines that best meet the culture and needs of their specific audiences.

Every Humana organization that wants to be part of the “town” social media development can join Human’s social media “Chamber of Commerce,” which meets monthly and live Tweets meeting notes in the spirit of sharing, transparency and open collaboration.  Everyone at Humana who becomes part of the town – with real estate participation in varying social channels – is tasked to share what they’re learning at the Humana “town square,” a knowledge portal by any other name.

Serving multiple audiences through communications

Social media channels are communications channels, serving wide and diverse audiences, all of whom connect to a company in different ways for different reasons – to learn about services, get customer support help, find out where to get local service, talk to other employees in other parts of the world to get advice, recruit new talent, learn more about company activities to inform investment decisions, understand citizenship initiatives.

The list is long. the point is simple: social media serves multiple audiences.  The organization “owning” social media must know how to serve and communicate with multiple audiences.

This group must know how to make these audiences feel heard and communicate with them in a way that is above all genuine and provides value.  In this social world it is the value of the communications content to the audience that builds brand reputation and relationship equity – and feeds the social networks. Channels and networks are like phones: they’re only as valuable as the communications that takes place using the tool.  What is valuable? It’s different for different audiences, and a company needs to acknowledge this and change its content approach to serve today’s audiences.

“What people want from a corporation is content with which to sustain their social networks,” explains Grant McCracken, a research affiliate at C3 at MIT and author of Chief Culture Officer: How To Create a Living, Breathing Corporation. “Consumers will embrace our invention (content/communications) when those inventions provide value. They will embrace our investments when they can distribute them. They will embrace our inventions when they increase their social capital.”

Social media bombs: managing social like an advertising channel, serving just one audience

Many Fortune 500 social media efforts have gone splat because they used social channels like new push advertising channels, rather than using them as conversational channels to build understanding, relationships, trust, and ultimately brand preference.

These failed social media initiatives were like going to a party with a bore who talks only about his job, his children, his accomplishments.  It doesn’t take too long for people to tune him out, run the other way, and warn their friends away.

Staples, TJX, Wal-Mart, for example, launched and closed high-profile social communities that failed for this reason. The conversations were all about the companies and their products, providing little value to the audience.  When companies use social channels like marketing channels,  the programs often sputter, and sometimes even backfire.

A soft drink  brand ran a Facebook avatar promotion in Europe that was a big hit until it was a big miss because people felt spammed. “Oh, it’s another company using social media to advertise at us.” The brand, though trying to provide value through branded entertainment, failed to engage and provide value.

While these marketing-led campaigns were disappointing, the real failure was that these companies were not paying enough attention on how to communicate with multiple audiences in new social ways. It was all about “social advertising.”  Much of the social media control was in the hands of advertising and marcom organizations, which are accountable for just one audience: customers.

Emerging wisdom: social ownership not about politics, but three key competencies

While there is no best practice about what organization should own social media in a large enterprise, there is emerging wisdom that the best organization to own social media is an organization that understands how to:

  1. Communicate with multiple, diverse audiences, providing value in the communications.
  2. Act as town planners, developing the zoning and infrastructure that benefits every organization in the enterprise community;
  3. Practice servant leadership: serving the needs of organizations across the enterprise, focusing more on achieving their social vision and associated outcomes, and less on organizational recognition and status.

Thoughts?

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Book review: Chief Culture Officer

The most important point of the excellent book “Chief Culture Officer” by Grant McCracken is this — and it’s big:   Today’s fast-changing external cultural environment presents significant opportunities and dangers for companies.  To manage risk and seize opportunities somebody needs to own culture — understanding patterns and uncovering insights,  and helping the C-suite understand how make better decisions based on this understanding.

This isn’t traditional market research, but anthropological research for business, noticing and assessing ideas, trends, emotions that make up the life of customers and employees — and determining what these cultural shifts mean to a company. This applies not just to marketing, but to leadership, HR and workplace communications.

This understanding and empathy, Grant notes, is often viewed as a “soft competency” by executives and business schools.

“To refuse empathy is a kind of managerial malpractice. It costs us essential knowledge of our colleagues and our customers…In fact empathy is frequently the blade that finds the right insight, extracts from it the real strategic and tactical opportunity, and crafts it into a final, compelling form. Is this really a ‘soft’ skill?

Value of a Chief Culture Officer

  • Better informed C-suite decisions based on opportunities and risk that come from culture, both strategic and tactical decisions.
  • Serve as internal entrepreneur, an innovation agent

What a CCO does

  • Finds patterns among chaos of cultural trends and conjure what they mean to a company
  • Insinuates cultural knowledge into the CEO

How the chief culture officer does her or his job

  • Talks to anyone who will talk with you.
  • Figures out the thing that makes a person interesting.  Find what they know best and what this means to them, how it looks to them, how it feels to them
  • Is open and guileless, never, ever “hipper than thous”
  • Treats everyone as more knowledgeable than him or herself
  • Is a fearless “noticer” or observer — “spotting things that defy expectation, that don’t compute.” Pays special attention to things that puzzle. Pays attention to any failure in attention.
  • Develops empathy, the ability to feel how another person feels, and find insights from those feelings.
  • Admits ignorance and asks naive questions.

Beware: what culture strategy is not cool hunting

Today’s Fast culture is a huge challenge for businesses: miss a trend or misread customers and your brand can quickly become irrelevant. Similarly, slow culture also  presents opportunities and risks and is perhaps more overlooked as the “cool hunters” have no interest here at all.  Grant warns us to beware of the “cool” people; they tend to be into themselves and what’s hip, not real listening, observing and empathy needed to uncover insights.

Quotes I liked

  • “We should think of our CEO as a Soviet-era Moscow audience and the CCO as Radio Free Europe. The CCO is trying to penetrate an air space constantly being “jammed” by other things.”
  • “Knowledge can stand in the way of innovation.”
  • “Without emotional sonar, there are many things an executive cannot know. This person in a sense is trapped in himself.”
  • “There is no code to “crack” culture. Just good listening.”
  • “We are not seeking perfection. We are seeking to construct and idea just robust enough to get us from confusion to clarity.”

This is a motivating, highly-readable book, chock full of insights, things that make you wonder, and motivation to make you  want to wander more in order to notice more. It’s also so refreshing in its pragmatic approach, reminding us that culture strategy is a form of anthropological science and not about what the cool people think.

Five stars for this book.

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The upside of getting laid off from ad agencies

Here’s the trailer from the new documentary “Lemonade” about how six ad agency veterans found new lives and passions after getting laid off.  I never got laid off from an agency, but 12 years ago I did walk away from my position as president of  an  agency  because the juice just wasn’t there for me.  It was a great decision, opening paths to interesting work and opportunities.

Every year about this time I ask my self three questions, which help me stay connected to meaningful work. The more connected I am, the more valuable the work is for clients. And, mostly importantly, the happier I am.

1. What do I love most about my work?

2. What do I love least?

3. A year from now what will I look back on and feel proud about having done in my work?

Good luck on your journey. Better to keep asking these questions than be “surprised” by a pink slip.

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Employee attitude matters more than advertising

megaphone

Companies spend so much on acquiring new customers, hiring the best talent possible, taking chances on innovative marketing concepts. But engaging employees often seems to a stepchild, loved, but in a less passionate way.

Given the influence of employees on customer loyalty, maybe the priorities need to be altered. At yesterday’s Conference Board conference Engelina Jaspers, HP’s vice president of corporate marketing, shared three stats that can help focus management’s attention on employee engagement:

  1. 68 % of customers leave a company because of poor employee attitude
  2. 41% of customers are loyal because of good employee attitude
  3. 70% of brand perception determined by experiences with people from the company

Brian Ray of McDonald’s is quantifying the value of committed employees in revenue and profitability for McDonald’s owners/operators. (85% of McDonald’s are franchises), and has just completed an project to create an employee value proposition.

(So interesting that every company seems to have a customer value proposition and mission, but not so for employees.)

To develop this “EVP” McDonald’s spent just $65,000 and asked two simple questions, which got an amazing 79% response rate from frontline workers in 33 countries:

  • What do you love about working for McDonald’s?
  • What do you love the least about working for McDonald’s?

What do your employees love the most and least about your company?  These two simple questions asked at least annually can provide the insights you need to understand how to make your employees your best marketing advocates.

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Did PETCO kill the squirrel?

Bird feederHere is  our birdfeeder, with no birds, not even the pesky squirrel who does contortions to break into the feeder. You see we bought a new bag of   the PETCO Black Oil Sunflower Seed  and the animals disappeared. No fighting over the perch, no annoying squirrel hogging the feeder.

Alarmed, my husband cleaned the feeder and thoroughly checked the yard for any weird growing berries or other vegetation that could be deterring the animals. But nothing. Pretty sure that the birdseed was contaminated  he emailed  PETCO Customer Relations, and they wrote back:

Unfortunately, there has been no information provided to us regarding any issue with the PETCO Black Oil Sunflower Seed. You may want to check if there’s something different with the bag that you recently purchased compared to those you have purchased before…You may also want to contact the manufacturer, Kaytee, regarding your inquiry.

Why would PETCO refer us to  the manufacturer when it was a PETCO branded product?  Why wouldn’t they ask for more details about our purchase so they could track possible contaminated shipments in our geographic area? Why wouldn’t PETCO apologize and tell us to return it to the retailer for another product?  If they looked at my husband’s purchasing history — he has one of those PETCO PALS loyalty cards — they’d see just how steady and profitable a customer he has been over the past 10 years.

The lack of PETCO interest so turned off my husband that he switched to a competitor, PetSmart, and tells all of his animal-loving friends about this story. Talk about word of mouth marketing.

The marketing lesson is this:  customer service is more important and valuable than any advertising.  It creates positive or in this case, negative, word of mouth.  Yet for many companies customer service is not part of marketing.

Advertising, promotion and CRM loyalty programs report to marketing, but not customer service?  In today’s social media world where the good and bad travel fast, that’s just for the birds.

Our bird friends are returning after a month away from the feeder.   But no squirrel. We think he may have died from the tainted birdseed.

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Low cost video exceeding 1.3 million black and white views

We’ve been analyzing characteristics of marketing content that gets shared and passed around. Here’s an example of a home-grown advertisement from Red House Furniture in High Point, NC that has 1.3 million + views on YouTube, has been covered by on a number of news programs including CNN, and is being covered all over the Blogosphere.

The reason for its appeal? It’s provocative, employees and customers introduce themselves as being black or white, and talk about how the furniture is good for black people and white people. Racial? Yes. Racist, no way. Just pointing out that blacks and whites like the same kind of furniture. Hilarious? Most definitely

The video is also genuine — real employees, real customers, low production quality and a folksy tune sung by two geeky guys: “The Red House…where black and white people buy furniture.” (The company os also sells tee-shirts with the theme, leveraging the interest in the video

The video was a risky best for The Red House, but good for the owners for taking a chance. I hope the attention is bringing in lots of business.

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Auto marketing messages as weak as their business

Why do some advertisers treat people as if we had no brains?  One example of misplaced messaging is GM and Chrysler’s recent ads assuring people people about their business. Duh! You have to live in a cave to not know that these companies are in big trouble. Plus, don’t we all realize that “employee pricing” is a joke; it’s code for “we have a lot of inventory to move so we’re really cutting prices.”

This new Chrysler “assurance” spot even goes so far to end with this tag line: “At Chrylser the future is not only bright it’s electric.”  Oh puleeeze. We know you’re future isn’t bright, even with Fiat.


Ad Age’s Jonah Bloom wrote a great editorial on how these auto companies are mis-spendng millions on the wrong message.

Ads for assurance programs may seem soothing and may even increase foot traffic to some degree, but they strike us as pointless and the consumer as completely out of touch with reality. For instance, how can Saturn promise to make your car payments for up to four months when the brand itself is slated for disposal?…So however well those ads may be executed…they ring false.”

Bloom suggests, instead that these auto makers promote “deals of a lifetime” and use plain English to do so.

Excellent advice.

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Creating new categories: social marketing delivers needed trust, emotion

Marketing as usual when you’re trying to create a new product or service category is doomed to fail.

The ads, the messaging, the press releases, the events are likely to fall flat for two reasons — people don’t trust information from companies and most marketing information is factual, filtered and rational.

Social scientists have proven that logic is ineffective in getting people to change their behavior and adopt new types of products. Similarly, so are most marketing campaigns. Harvard Business School professor John Kotter has said:

“Behavior changes happen mostly by speaking to people’s feelings. In highly successful change effort people will find ways to help others see the problems or solutions in ways that influence emotions, not just thoughts.”

As for trust, the 2009 Edelman Trust Barometer finds that people’s trust in companies, the media and CEOs is at an all time low. Approximately 62 percent of the 25 to 64 year-olds surveyed in 20 countries said they trust companies less than they did a year ago. In the U.S. trust in a company’s CEO is at an all time low — just 17 percent  trust what a CEO has to say. Trust in business magazines is also down, from 57 percent to 44 percent.

I believe that social media and its first cousin, word of mouth marketing, are critical for a company intent on creating a new product category. All too often, however, companies spend more on mainstream marketing when building a new category because it feels safer, the tactics are more familiar, you can create “things” like brochures and advertisements, and you can make sure the “key messages” from the research are included.

While those elements certainly play a role in a marketing strategy, think social first. Here’s why:

  • People trust other people like them more than marketers, CEOs, governments, analysts. (See Neilsen Buzz metrics trust research) Why not sponsor an online community where people can share experiences and get and give help from people they trust?  This is likely to speed trial, if not adoption. As importantly it will help you as a marketer better understand obstacles and objections — and see the arguments people use to overcome those obstacles.
  • After people like them, people next trust outside subject matter experts. Why not sponsor an editorially-independent blog/community and invite outside experts to share their views of the new product or service category?  They’ll be much more believable than your company blog. According to the new Edelman research, 59 percent of those surveyed said an academic or an independent expert on the industry or issue would be very credible.
  • Most marketing communications is based in logic, and that  doesn’t work when trying to change behavior.  The passionate, real, credible conversations are happening among people in new social forms.  The emotion infused in these conversations is what influences change and adoption.  Yet marketing and advertising agencies tend to filter and focus on key messages, and too often  advertising designed to trigger emotion comes across as phony.

Social media conversations are unfiltered, trusted and genuine.  And that’s what you need when taking on the formible challenge of creating a new category.

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Most valuable and under-used social media strategy

“What’s the best social media investment? Where we can really see a good ROI?”

The answer is easy. Getting companies to implement it is not. The most valuable and under-used social media strategy is embedding customer reviews in your Web site.  Not blogs, Twitter, communities or tagging.

An eVoc Insights study found that 48% of consumers need to read reviews before making a purchase decision. Neilsen’s research has found that consumer recommendations are the most credible form of advertising among 78% of study participants.

What gives? Fear of having negative reviews on the company Web site.  According to Sam Decker, CMO of BazaarVoice, companies have three options if they’re selling a bad product and are afraid of negative reviews:

  1. Without reviews, you keep selling the product and risk costly returns and low customer satisfaction
  2. With reviews, you can use the leading indicator of negative reviews and quickly remove this product from inventory to reduce returns and improve satisfaction
  3. Or, just allow the negative reviews to steer customers to a more satisfying purchase within the category. Let the best products win, and you will win.

“In cases 2 and 3 you remain a trusted editor of the best products; customers are happy; you maintain their loyalty, and avoid a return,” says Sam. For more on overcoming this obstacle, check out this classic article “Positives about Negative Product Reviews.”

Example: Consumer reviews on Panasonic.com

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New creatives vs. old creatives

Last night I randomly opened the Age of Conversation/2 and landed on Ernie Mosteller’s “The New Creatives Get It” article. Wow.  Here’s his take on the two fundamental differences between new and old creative, which I think really gets to the heart of the creative sea change.

  1. Information first, entertainment second. It used to be that creative led with entertainment to get our attention, and then served up product information. Today people are looking for information, so effective creative leads with information people are looking — even if they’re looking for  entertainment.
  2. Elegant complexity vs. clever simplicity. Old advertising focused on simplicity. But, Ernie warns, “on the Web simplicity fails. Miserably.”  Today great creative is telling an intricate story, but in ways that are interesting, fun and compelling to prospects.

Is you organization in the new creative mindset — or the old?

(I love the line on Ernie’s blog: “The medium is the audience.”  Oh yeah.)

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