Tag Archives: marketing

August 9, 2012 · 9:07 am

What’s The Most Valuable Social Network?

Like many of you I’ve been following the ups and downs of Facebook‘s recent IPO and the stock’s performance subsequently. I thought about it again this morning as I read a release from The Incyte Group (via Research Brief) that states consumers want deeper connections with brands – but open social networks are not where they want to build these connections.  Facebook is the biggest of the bunch and while marketers put over $3B on to Facebook’s revenue line last year, if you speak with many marketers the ROI on that spending is unimpressive.  The notion that sort of pops into my head about marketers searching for the best social network to reach consumers is that of a drunken sailor bouncing from bar to bar, spending a little cash along the way, looking to get lucky.  Facebook to Twitter to Pinterest to LinkedIn.  Turns out that’s not what holds the most promise when we’re talking about reaching them via social networks:

(Consumers) do not expect, or even want, these communities to be part of an existing social network like Facebook or LinkedIn. Instead, their preference is for customer communities that are:

  • Run separately from open social networks, but have strong linkages to them so they can easily share information with like-minded friends
  • Proactively managed by companies
  • Tightly integrated with the company’s website

So what, in my mind, is the most valuable social network?  Amazon.  Think about it – much of the time when I’m on Amazon I’m not  actually sticking things in a shopping cart.  I’m researching.  I’m reading reviews to discover new books or music.  I’m commenting in things I’ve bought or used that are for sale.  When you look at the research findings, Amazon meets all the criteria plus it closes the circle by offering products for sale.  It’s not an ad-supported model but their sales were over $12B.  For a quarter. Several times what Facebook or any other social network’s were.

Amazon is the most valuable social network for marketers because it is for consumers.  Now ask the next logical question:  what’s your strategy on Amazon and is it the best one when you think about it as social and not as commerce?  Do you agree with my thinking here?

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August 7, 2012 · 10:43 am

Still Haven’t Found What I’m Looking For

U2 provides the succinct summary this morning of some research published by the folks at Lynchpin and Econsultancy.

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Those two concerns examined how companies are using and learning from analytics and their Online Measurement and Strategy Report brings us back to a theme we’ve explored previously here on the screed.  In brief, companies are finding out more and learning less.  What I mean, and what the report shows, is that companies have more data than ever about consumer behavior and yet because of a number of factors they find the data less useful and without context.

Here are a few findings:

A majority of marketers worldwide say that less than half of all the analytics data they collect is actually useful for decision-making. Just one in 10 companies thought a strong majority of analytics data was helpful, and less than a third said somewhere between half and three-quarters of all data was useful.

While finding the right staff has been also highlighted as a limiting factor in the report, one other issue that emerges after looking into the responses is that organizational issues are another common frustration.  These demonstrate themselves in ways such as :

There is one team in charge of web analytics – not a marketing team – so for the marketing colleagues it is a fight to try to extract data from the analytics team.

Huge and siloed organisations, complexity of aged infrastructure and sites, legal policies

Getting management agreement on goals.

Education of senior management in understanding the benefit of an integrated digital performance management process.

Once again we find that a lot of data isn’t necessarily a lot of information.  For that to appear we need to formulate actionable business questions that are concerns of as many stakeholders as we can involve and then seek out the appropriate data to answer them.  The more we know the less we understand, apparently, and many businesses still haven’t found what they’re looking for despite drowning in data.   I think that’s kind of amazing and a bit sad.  What do you think?

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August 3, 2012 · 8:43 am

Avocados And Your Business

Foodie Friday is here and today’s topic is an ad I came across while reading one of my favorite food magazines. I own many knives and I’m not opposed to buying more of them. Yes, I realize I only have two hands and it’s generally a bad idea to use more than one knife at a time, so another knife is not a priority. Still, I appreciate that each of the knives I own is of a particular sort and it’s generally a good idea to use a tool appropriate to the task. While a good chef’s knifecan handle almost anything (and our kitchen is equipped with them in several sizes), having a boning knife makes that task easier, just as a good slicing knife or a bread knife can cut meat or bread, respectively, better than can a general purpose blade.

That said, I laughed out loud when I saw an ad for an avocado knife. Seriously. A knife dedicated to cutting, pitting, and scooping avocados.  Of course, I saw a business point immediately.

This is a solution in search of a problem.  I’ve cut hundreds of avocados.  I generally use my smaller chef’s knife to remove the seed and a spoon to scoop out the flesh.  I’ve never had a problem or wished I had a better tool with which to do the job, unlike seeding a mango, for example.  We don’t just come across this mistake in the kitchen.  I’ve spoken with quite a few businesses who have thought that what they were developing was something really important but for which there wasn’t a need.  Or demand.  Or a market.

Obviously consumers aren’t always aware that they have a problem until the solution comes along.  Steve Jobs was a master of this approach.  People like Edison and Bell were as well.  However, for most of us, the identification of the problem – and the market for it – before creating a solution is a better way to spend our business days.  You get the point.  Me?  I suddenly have a hankering for guacamole.

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