Tuesday, December 23, 2014

Five Tips To Help CMOs Improve Social Media ROI in 2015

The coming year will be a watershed one for social media marketing, I predict, and not in a positive way. A topic that was only whispered about in private conversations early in the year is now being openly discussed: For many brands, earned media and content marketing are not delivering results in line with the investments. Some claim our metrics and strategies must mature, but it is getting harder to ignore the limitations of marketing in the social channel. So unavoidable is this discussion that even at the Social Media Today Social Shake-Up, a confab of social elite, a speaker asked from the main stage, "In a year, will any of you produce a deck with 'social' in its title?"

While social circles are buzzing with increasingly sober discussions of the channel's difficulties delivering marketing results, that conversation seems not to have reached the ears of the CMO quite yet. Mainstream marketing media, which was late to recognize the growing investment in social media marketing, is now tardy in covering the growing body of data demonstrating social's challenges as a marketing channel.

Adweek, continuing its trend of being impressed with engagement rather than results, recently featured an article on the "top Tumblr posts of 2014." These posts were not selected as "top" because they delivered any marketing ROI but because lots of people liked them, and thus Adweek has once again uncovered that deep marketing insight that people love inspirational quotes, hot models, animated GIFs and pets. (Shocking!) This is representative of the coverage that social media continues to receive from the marketing media--big numbers lead while investments bleed.

Since your CMO does not seem to be getting good advice to guide decisions on social investments, I'd like to offer up five tips to help him or her consider how to manage social media budgets and efforts in 2015:

  • Stop trying to make your brand interesting with tweets and posts; instead, give people a reason to talk about your brand in meaningful ways. The organic reach of brand content on Facebook is dying. Not dwindling; dying. The story is little different on other social networks. Brand engagement on Twitter is minuscule and, although engagement on Instagram is fine today, it is only a matter of time before Instagram goes the way of other social networks before it.

    By the end of 2015, the talk will be about zero reach in brands' organic social media marketing efforts, and it will become impossible to ignore that brand publishing is not and never was going to be the way to succeed in social media. The real social media strategy that has worked from the beginning is to get people talking with each other, not about brand content but about actual products and services. The reason is that people trust each other far more than they trust you and your brand.

    There are several ways to leverage peer-to-peer brand communications. Bring trusted consumer ratings and observations into your site, integrated on the pages where prospects consider your products and services, as USAA has done on product pages. Leverage trusted relationships to create connections between your brand and prospects, as Ameriprise does with its LinkedIn "Find an Advisor" feature. Encourage positive comments, not on Twitter where tweets are quickly lost in the void, but on the rating and review sites that people trust to help them make purchase decisions. In 2015, CMOs will be forced to realize that the key to social media success is not publishing content but getting people talking with each other about brands' products and services.
  • Stop trying to go viral; instead, use social media to solve consumer problems:  Viral posts get a lot of attention because everyone loves big numbers, but there is little evidence they drive brand value. KMart had the most viral brand video in 2013, but it didn't stop the retailer's continued slide. The same thing happened in 2014: This year's most viral brand campaign was the Ellen Oscar selfie, but despite Publicis CEO Maurice Levy's claim it delivered Samsung a billion dollars of value, Samsung's smartphone market share slipped 25% from Q3 2013 to Q3 2014. (Where viral campaigns tend to help is not with established brands but with up and comers such as HelloFlo and Wren, but even then, the one-in-a-million shot of achieving "viral' scale is so remote, the few success stories hardly suggest that viral marketing is a smart strategy.)

    Your marketing goal is not to go viral; it's not even to get engagement. Your marketing goal is to deliver demonstrable business results, and that means changing consumer behaviors and attitudes. Viral videos too often sacrifice brand impact for entertainment value, and that is a lousy trade to make.

    Rather than try to be funny, instead focus on solving consumer problems. Fifth Third Bank didn't make the waves that Samsung did, but its Reemploy campaign got unemployed mortgage borrowers back to work and delivered the brand the sort of "buzz" that encourages consideration. USAA partnered with the NFL for a Salute to Service campaign that increased appreciation for military service members, raised over $400,000 for military support organizations and generated considerable social media buzz with on-field events.
  • Stop saying "Content is King." Start focusing brand-building energies on the Customer Experience. First exercise: Other than brands whose product actually is content, name a brand you purchase regularly because of content it produces. Now list the brands to which you are loyal because their products or services furnish a great and consistent experience. How do those numbers compare?

    Here's another exercise: List brands you know that have achieved significant success in the past two decades years with content. Then, list the brands that came out of nowhere with little advertising or content but built World of Mouth based on their product or service experience. (Here's a list to get you started on the latter: Ebay, Amazon, Uber, Nest, Square, Flip Video, Google, Krispy Kreme, Zappos, Tesla, Facebook, Apple Store, Jawbone, Angry Birds, PayPal, Evernote, Dropbox and Warby Parker.)

    There you go--I have cured you of the need to ever again say "Content is king" in just two paragraphs. Content is not king--customer experience is king. Why do marketers keep repeating that tired and untrue phrase? Probably because content seems easy to do (just a hire a "brand journalist," whatever that is), is in their wheelhouse (they have been producing ads for decades, after all), and marketers generally control content but not the product and service experience. Well, it is long past time for that to change.

    Advertising and content are important, but nothing is more powerful than Customer Experience. This has always been the case, but in an age of transparency where media is splintering, mass media is slipping and consumers have greater control over communication channels, it is not content but Customer Experience that fills the top of the funnel. Marketers can no longer afford to ignore the high-impact product and service experiences being fashioned by others in the organization while they worry about less powerful ad impressions and social engagement. Smart marketers must turn inward and ensure that the brand experience is crafted end-to-end--not just what happens leading up to purchase but what happens afterwards--because that is where true brand building occurs.
  • Stop being lied to and start demanding better information. Who do you expect will tell the CMO the truth that social media marketing is widely failing to meet expectations? The professionals getting paychecks to produce content for social channels? The agency trying to maximize utilization of its storytellers and community managers? The authors whose books extolling the value of earned media launched their careers? A social media industry has been built to separate the CMO from his or her budget, which is why marketing leaders must seek out the real, unadulterated and unbiased data and insight about social media marketing.

    There is a lot of bad data and analysis out there, and even data from reliable sources can be twisted and misrepresented. For example, dozens of blog posts have mentioned that IBM's recent Black Friday white paper reported that Facebook traffic delivered an average of $109.94 per order over Thanksgiving weekend. That sounds important, but is it really without knowing the scale of orders delivered? IBM is suspiciously silent on that topic considering its 2013 study found that social media drove a mere 1% of purchases. While IBM may not be divulging social network traffic's share of purchases, Custora is. The company evaluated data from 100 US online retailers, 100 million online shoppers and over $40 billion in transaction revenue in the first two weeks of December. It found that social media (including Facebook, Twitter, Instagram, and Pinterest) drove just 2% of orders (down from 2.5% during the same period in 2013).

    The time has come for marketers to get more critical about the data and analysis they receive. If marketing leaders rely on incomplete, unreliable or misrepresented data to drive social media decisions, they have no one to blame but themselves for disappointing outcomes.
  • Your social media metrics suck, so change them. Social media has been Goodhart's Law in action: "When a measure becomes a target, it ceases to be a good measure."

    Likes, retweets and shares were briefly meaningful in the early days of social, when brands earned them solely by offering great products and services, but the second those social engagement metrics became goals rather than measures of success, everything changed. Brands started buying fans with contests, sweepstakes and giveaways. Community managers started gaming engagement with posts of puppies and "like-bait" images. Fan counts soared and engagement rose, but since these tactics were designed to yield positive social media metrics and not valuable business results, it all amounted to little for brands. Is it any wonder that the vast majority of CMOs have no quantitative idea if their social investments are paying off or not? (They're not.)

    If you have a social media scorecard with counts of likes, fans, retweets and pins, throw it out and demand better. Those metrics are easily manipulated and are not measures of business success. Marketing leaders need to focus on more important measures in 2015: Improvements in preference and purchase intent, enhanced share of wallet, beneficial social behaviors such as recommendations, and financial measures including repurchase, clicks and conversions. Those are not as easy to measure as likes and retweets, but the most valuable marketing metrics are rarely the easiest of obtain.
By the end of 2015, I believe we will be having a much different conversation about social media with substantially less focus on brand content and more about social products, social services and social good. If your CMO uses the five tips mentioned above, he or she can be ahead of the game and ensure the company is aligning its marketing budgets to the strategies most likely to deliver results that matter. Or, brands can keep running social sweepstakes, doing funny videos and begging for likes and shares, but I can promise those tactics will not get the job done for the Marketing department, and by the end of 2015, that will be impossible to hide.

Friday, December 5, 2014

Social Media Marketing: It's All Been Said Before

I find it difficult to get inspired to write about social media marketing any longer. Where others see ongoing brand difficulties in social media and claim "we're still learning," I see a marketing channel that is fully mature (and by some measures in decline).

As you review all of the inevitable blog posts this month that list 2014's top PR blunders and Social Media #Fail examples, ask yourself if these mistakes were ones caused by an exploration of untested strategies in a new medium or an inability to apply (or perhaps believe) the available data and lessons learned? I think you will find yourself agreeing with me--this year's crop of social media errors and disasters are no different than last year's--same causes, same mistakes, same outcomes. It's all been said before.

The same can be said for this year's success stories in social media. Thousands of brands ran social media promotions, shared content on social networks and maintained blogs and podcasts. How many can claim demonstrable success and offer repeatable examples for others to follow? And for the rare ones that can, did they get there with some wildly innovative strategy or by the same customer-focused, data-driven, omni-channel process that worked in social media in 2013 (and pretty much every other medium before that)? It's all been said before.

Some may argue that the rise of Instagram was a new and exciting development this year for brands, but is this really true? I mean, sure, your brand can chase the higher engagement presently available on Instagram, but by this time next year we will be talking about how paid media is pushing aside organic content and griping about the declining engagement rates on that platform, just as we are about Facebook today. It's all been said before.

If chasing weary, disinterested and distrusting consumers from one new social network to another sounds like effective marketing strategy, feel free to pursue it, but you will need to pardon me for not sharing in your enthusiasm. I aspire to be a brand and business builder, not an engagement hacker.

The news about the higher engagement rates on Instagram is hardly the only recent instance when I saw some newsworthy social media situation, considered sharing my perspective on my blog, and ultimately rejected the idea. The reason is that I can no longer find a way to cover this space without resorting to cutting and pasting words and messages I have already shared before. For example:

The secret to social media success (and failure) is no longer secret. Companies need to stop talking and start listening. They need to stop broadcasting and start responding. They need to stop posting to people and instead encourage people to start talking with each other. They need to stop promoting new products in social media and instead use social to collaborate when developing new products. They need to stop publishing content they hope people will share and instead give people product experiences consumers actually want to share. They need stop trying to be entertaining in social media and instead offer great customer care in the channel. They need to stop counting fans and tallying engagement and start creating advocates and measuring business value. And finally, brands need to stop positioning themselves as more caring, more transparent and more committed to the customer and instead be more caring, more transparent and more committed to the customer.

If you find yourself nodding your head with that last paragraph, take a moment to parse the first part of each sentence from the second. The first part describes marketing activities (broadcasting, promoting, publishing content, being entertaining, tallying engagement, positioning) while the second part describes activities outside of marketing (listening, responding, product development, customer service, earning advocacy, being better corporate citizens).  Therein lies my growing weariness with the topic of social media marketing--marketing is literally the least interesting thing brands can do in social media.

To me, that describes the big shift underway (both in the world and on my blog). Social media remains a powerful force reshaping our lives and companies, but that does not mean it is a powerful marketing tool. So, as I have in 2014, I will continue to focus on how customer experience drives great results (in social and elsewhere) and how social behaviors and technologies are reshaping consumption and business models in the collaborative economy. But whether some brand did a cute Vine or got 500 shares of its hilarious Instagram picture is no longer very interesting to me (and I am frankly unsure why it would be interesting to anyone else).

I said I hate to repeat myself, but here are a couple of things that bear repeating: Social media is not a megaphone for brands; it is a mirror. It does not give your brand "a voice"; it gives consumers a voice they can use to share their good and bad brand experiences. It does not allow you to fashion messages that change minds; it reflects what the brand is and does in a way that changes minds (or, more likely, not).

If you want better brand results in social media in 2015, do less marketing in the channel and find ways to treat your customers better. The brands that will succeed this coming year will not be the ones developing content and leveraging Instagram but the ones developing better relationships via product and services in consumers' real and digital worlds.