18th March 2011

Professional Customer Networks: The world changing phenomena

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There is so much more to social networking on LinkedIn than what the current discourse allows for. So much more benefit from building professional customer networks.

Whenever I speak on a platform or am part of a panel discussion in the media, all the Social Networking examples from my industry colleagues are drawn from one of the following:

1. About Not-for-Profits (NFPs) – typically more sexy or at least more interesting than the most boring topic of all – how to be a better accountant! Jokes aside from this former accountant, professional customer networks for accountants are really important, and LinkedIn can deliver great ones
2. About launching a new product
3. About a natural disaster and how people used the tools to communicate
4. About a ‘viral’ campaign like the wonderful Old Spice (Dark man. White horse. Very sexy!) which isn’t even social networking (see below)

Basically, they are usually about causes or issues that allow people to gather and get excited– because it’s much easier to get inspired about helping change the lives of orphans than it is to build a network of Sales Directors.

So the first problem is that those who work as managers and professionals cannot see their story, or how they can build powerful professional customer networks on LinkedIn.

The second and related problem is that the media and ‘expert’ commentators also confuse Social Networking with its cousin, Social Media. The ridiculous and ridiculously funny Old Spice example is the example most commonly used today. I had great fun debunking this on Sky TV (see Old Spice Sucks).

But as marketers selling our services, it’s a big opportunity for us when so many ‘experts’ focus on the colorful and the obvious. And confuse Social Media with the far more important Social Networking. It leaves the field clear for a company like ours, one with the vision of attacking the way more difficult task of professional customer network building. A task that helps in the day-to-day grind of being a lawyer, accountant, CIO or sales director, facilitating the interactions that all professionals need if they are to be great in their professions.

So it’s not as engaging as a network built around a cause like saving whales. But it’s way more important to the world of business.

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25th February 2011

The Perfect Professional Customer Network

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A great customer network for professionals and managers, particularly on LinkedIn, requires 5 key ingredients:

1. Information and knowledge on tap. Always there, always easily accessible and well indexed, and always freely available to all members of the professional customer network.

2. The LinkedIn group to be collegiate. Meeting the work based social needs of the professionals in the network. Because while professionals compete with one another, fundamentally they have more in common with each other than they do with outsiders.

This reminds me of the surprise I used to feel when I would see Rugby or Basketball players standing around having chats with the opposing team following 80 minutes of players bashing one another during the game. Clearly many were good friends. This little mystery was explained for me by a footballer being asked in an interview why they were so friendly. His response was: “We’re all footballers, you know, that’s what we do for a living and for fun and we see one another regularly.”

So, the collegiate and social aspects of online networks, from sporting to professional ones, are vital.

3. The ability to research through the professional customer network. There must be members available to answer the particular, professional needs of other members. And because those information or strategy needs are complex and diverse, there needs to be a large number of professionals in the group to help answer them.

4. Considerable size. A perfect professional customer network, LinkedIn group, or ‘tribe’, by definition, has to be large enough to meet diverse professional needs. It will be absurd to have 5 lawyers and call it a ‘tribe’. You need to have 5,000, maybe 500,000 to be a truly effective and long lived professional customer network.

5. Finally, Sub-groups are important. Of course, you could have a ‘tribe’ of 5 divorce lawyers in Seattle or 20 property lawyers in London. But to be valuable, they need to be a part of a  group of a 100,000 lawyers.

Mix all that together, and the professional customer network will be powerful. And prosperous.

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15th February 2011

Key Elements of a Professional Customer Network

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There are 5 key elements of powerful LinkedIn Groups – what we may also call ‘Tribes’. Thanks to Seth Godin for this great summary:

1. The group must have a purpose – it must have a manifesto about what it stands for and what it believes in.
2. It must be easy to connect members and then keep them – this is why using LinkedIn is an ideal solution.
3. The group must be easy for members to connect and converse with each other. Throughout history, members of a group have always been able to converse. It is only recently in the ‘pre-social networking’ era where the communication flows were primarily top down, with some limited flows upwards. For example, in organizations like churches, industry associations and major companies, the costs of enabling members to communicate with each other were prohibitive. They would have spent all their time travelling! But in traditional networks or ‘tribes’ (such as villages) that existed for thousands of years, communication was obviously horizontal.

4. Money or profit is not the point of the group. This is hard for marketers and sales people who grew up in the mass media world to grasp. Groups exist for their own reasons. People join them for their own purposes – not to be sold to and not to make profit for somebody else (though they don’t mind if it is a by-product and if it doesn’t affect their overall experience).
5. Members must have the ability to track progress, as well as the benefits and advantages that belonging to a group brings. Enabling benchmarks to measure improvements is a powerful way to keep people engaged in the network.

Our role as professional customer network builders is about providing content and engagement. It is about helping members solve problems by positioning our clients as experts – experts who don’t sell and experts who are ‘omnipresent in service’.

There are principles that underpin powerful communities, particularly those with a business purpose:

1. Transparency – the purpose and the actions of the group must be transparent to all members. For example, the fact that we have clients who work in the background and provide resources to our ‘tribes’ is transparent. We don’t try to hide it. It is simply a part of being a member of our professional community and does not detract from their experience.
2. A group must grow carefully and slowly – it needs to be built on solid foundations for it to thrive. With solid foundations, connections will multiply, which will lead to more knowledge sharing and then eventually the network itself becomes self-sustaining.
3. It is important for the network to be different to other groups. The ones that we build are currently different to nearly all existing customer networks because we don’t allow spam. We are not attacking other groups- just highlighting the difference and showing that there is a better way.
4. Groups must exclude outsiders in some way, not nastily, but in a way that defines the difference. For example, the exclusion in our own ‘tribes’ of what we call spam (e.g. “Come to my free seminar!”) makes us very different.

Professional customer networks with all these elements will thrive.

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10th February 2011

Social Media and Model T Fords

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LinkedIn and Facebook are today’s Model T Fords.
How so?

The Model T changed America and ultimately the world. Here’s what’s interesting about the T: it wasn’t the only or even the best car when it was first made. And it certainly wasn’t the best for all the years that it completely dominated in America. And it was ultimately and inevitably replaced by much better cars. In fact, in just a few short years after they stopped making it, the T looked very old fashioned.

It was ragingly successful because it was delivered at a price that the working man could afford and it did the job. It worked. And it sold in such huge quantities that it kick-started the unstoppable process towards a whole nation, and the whole world, living and working very differently.

LinkedIn and Facebook are the Model Ts of social networking. They are not perfect, but they are here, they dominate, their price is good (free!) and they are changing the world. Calling them ‘just a marketing tool’ is ridiculous. Calling them a fad is even more absurd.

Fundamentally, humans are herd animals and we want to link together in various ways. The tools are here and they are powerful enough, more than powerful enough. Scarily powerful to those of us looking ahead and seeing the implications for business.

So like the Model T, they are changing the face of our world and so the social platforms will look very different in 10 years. But LinkedIn and Facebook are doing it now. Today, in fact.

In some ways, they are like a tsunami. A tsunami where you’re given the opportunity to make what you will of it, to see it as you want it to be. You can perceive it as a giant wave and hop on board and ride it.

Or, you can sit back, wait, and watch in growing horror as it (slowly) destroys your industry. And then suddenly it rears up again, and you’re gone.

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2nd February 2011

Technology and Social Media needs not be confusing!

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The technology for social and business networking, and the social media platforms such as LinkedIn, gets easier and better every month. The pace of change with this technology is accelerating…and rapidly. There are huge investments being made in software designed to create faster and easier ways to connect.

So where are we heading? What is the ‘final station’? What is the end game? Ultimately we want to:

  • Connect with who we want (and do it easily)
  • Communicate easily with other members of our LinkedIn group or ‘tribe’
  • Be members of multiple professional groups at the same time
  • Have ‘fluid’ professional groups that evolve with us as our lives change and develop
  • Have free membership– at least at the first (or outer) level of a group
  • Choose from both open and closed networks, which exist for different reasons
  • Have tight-knit, paid LinkedIn groups inside and alongside free and open ones

Every day, it becomes easier to tighten the relationship with your followers. Every day the professional networks on LinkedIn will become more valuable to their members, and to their leaders.

 

 

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20th January 2011

Humans are Hardwired for Networks

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What have all LinkedIn groups always had in common? What have they always provided their members?

1. Sharing of resources
2. Protection against outside dangers
3. Social needs – providing a sense of belonging and human contact
4. A purpose
5. An ability to grow, to do more or be stronger as part of the group

Many types of groups or ‘tribes’ have come and gone throughout history. Underpinning them all is the human desire and need to gather together. Put simply, humans are herd animals.

The earliest (and most enduring) ‘groups’ were of course the small and roaming tribes of early humans on the plains of Africa. Later, these developed into small settlements and villages when agriculture appeared. And soon after, villages and larger towns were established, with ‘sub-tribes’ living in different areas or suburbs.

Let’s look at an example of a major and important class of ‘tribe’ or group – religions in all their forms. In the beginning, religions were location-based – your religion was a function of where you lived (though the strength of people’s beliefs varied dramatically!).

The introduction and growth of transport and communications technology changed religion just as it changed the rest of our world. Religions needed to become more relevant and ‘exciting’ to engage with a bigger audience – one which now had a menu of religious ‘brands’ to choose from (An aside: is it offensive to call a religion a brand? It certainly offends me when my football team is called one! But hopefully not… this paper is not about challenging people’s religious beliefs).

And of course, the intense competition surrounding religion feeds the trend towards extremism and fundamentalist behaviors. This sad but seemingly inevitable gravitation towards extremes comes as a result of old certainties and the monopoly held by one religion just crumbling away. The certainties cannot survive as they were built on your local region- the only region you knew, a region that you never left.

So yes, most groups (including religions) have changed, but underneath, at their core, they are just ‘places’ or beliefs centred around where people cluster- where people wanted to be together and to belong.

Other categories of groups that appeared in the last 150 years are the industry associations and unions. These groups formed for the purposes of sharing knowledge and providing a collegiate or social function for the various members. The fact is that all of these services can now be provided significantly better and more effectively via social networking software.

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5th January 2011

Way Stations of Marketing or Why Social Media doesn’t work yet

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Definition: A marketing technique or approach that existed only briefly – a mere ‘blip’ in the history of modern humans. Marketing that has come and will shortly be gone. Mass media advertising, for example.

There are many products that have been ‘way stations’ – a well-known example is the CD in the music industry, which came and left in less than 30 years. Digital music itself has gone to another level with the iPod, iPhone, etc. – the delivery mechanism of that music was the way station.

Let’s look at some marketing examples …

Permission marketing was all the rage in the 80’s and 90’s amongst direct marketers.

This was an approach to marketing that grew out of the marketer’s new ability to more easily invade people’s personal space. The theory was that marketers had to earn the right to send information to people- to interrupt them. This approach of course is now under challenge as anyone can now reach everybody else via Social Media, so even permission marketing is becoming dubious.

Networks of people can now send messages sideways to each other and of course often back up the chain to the leader. This ability to communicate with everybody did not exist when the whole theory of permission marketing was developed, at least not easily or in bulk.

The mass media is another example of a Way Station. Mass media marketing appeared and has already started to disappear. In terms of our history, mass media marketing is a mere blink(less than 150 years, and only a major industry for less than 60 years). Social marketing and Social Media have challenged the mass media ‘Tell and Sell’ approaching two ways:

  1. We can now micro-market. There is no need for a mass message that is untailored and impersonal. These messages were only untailored because we had no choice – no way to tailor it (except very crudely). The TV could only show one version of your ad to whoever happened to be watching that show (and so a new industry to define and track audience demographics for each show grew). This crude segmentation was clearly a waste! Advertisers would have loved to show it to their target audience only.
  2. Our tolerance of having our personal space invaded and of being interrupted has fallen dramatically in the last 5 years. This intolerance will continue to grow to the stage where it will be better not to use it because the negative perceptions caused by your interruptions will outweigh any benefits.

The third example of a Way Station is the Groups on LinkedIn – the point of this article.

Over 95% of the active groups on LinkedIn are filled with spam. Cluttered. No-one has the time to dig through the junk to find value, so once they see the problem, they tend to ignore the groups and say they are useless.

Alternatively, many groups have no discussions at all, they are simply moribund. Dead.

A good way to understand the members of a spam-filled group is by using the old ‘boiling frog’ analogy. If you toss frogs into very hot water, they will immediately try to jump out. Alternatively, if you put frogs into water and gradually heat it up, they will cook to death. They don’t notice the slight changes and think all is ‘normal’, so as a result, they perish…

Just like the slow-boiling frogs, members of spam-filled groups are used to the large amounts of self-serving junk that piles into groups like a stream of excrement. The members think that this is normal as they can see no other alternatives…at the moment almost no spam-free groups exist.

Our mission is simple: create groups or professional customer networks where there are no streams of excrement flowing through them. Where instead, there is a flow of resources and useful discussions. A flow of knowledge and information.

The current spam-filled groups are just Way Stations.

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26th February 2010

Can personal branding double your income? Maybe, it certainly won’t hurt it!

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Personal Branding for professionals on LinkedIn: Capture the space for your name in your field. It DOES matter. People believe that those they see regularly online are likely to have more expertise than those they don’t see. What else could they possibly think?

Unless of course your LinkedIn profile  is self-serving, and all you do is spam by putting out updates and comments on your business specifically aimed at selling your services. If it’s all about an incessent sales pitch, people will just turn you off. Disconnect. Unfollow.

With just one click.

LinkedIn will get you there, especially if it’s connected to a blog. And of course Facebook if you are in the B2C world.

And now is the best time to act because so few of your colleagues have, it’s easy to capture the high ground. Stake a claim on the best land. Build a business with a defendable advantage – but watch for the next big change that will be coming shortly. (And it looks like it’s Google+ – update as of July 2011). And sooner than the last Social Media Tsunami that swept through.

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14th January 2010

Social Networking in business: not just what you did this weekend

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Think of Social Networking on LinkedIn as like owning your own electronic newspaper. Your own electronic niche ‘newspaper’. A paper where you do all the jobs.

As the Distribution Manager, you decide who you want to receive your newspaper. You also control which distribution media you choose to get your paper to it’s readers—but it’s all the same words, just on different media (with social networking the media is endless: LinkedIn, Twitter, blogging, YouTube, Spoke, Plaxo, and another page full of names!). As the Editor, you have the final say in what your audience gets to read, listen to or watch. As the Journalist, you do the research and decide what stories you will write. And the Editor can of course hire other journalists (writers).

And as the Finance Director you decide how much time and money you should spend to make your newspaper profitable. How much to spend to generate leads and raise the profile of your business.

Now our work is all about lead generation for businessess. With our clients we don’t care about the social aspects of ‘Social’ Networking. Care zilch about getting more friends and spending hours ‘chatting’ online—if you need more friends, the bookshops are stuffed with books on how to find them!

Our whole approach in my book on B2B marketing is about first defining your niche. Your gold clients. The ones you want more of. It’s all about business networking.

Well, knowing your niche is absolutely fundamental to Social Networking. How else can you create a ‘newspaper’ of value? Can you write content for everybody? If you did, would they be interested? No! More importantly, how can you select who to send it to? How can you build a circulation list?

If you don’t have a niche, you might as well stand on 5th Avenue in the Big Apple or George St in Sydney with a loud hailer, calling people to gather around you. And then try and collect all their business cards.

Utterly useless.

Networking on LinkedIn is about bringing people together and it has many business applications. Particularly in generating leads for business—it is just one more form of internet marketing, and increasingly becoming the most important.

By creating a profile on LinkedIn, or other major social networking sites, adding people and having them add you, you can use this media as a way of staying in contact with existing clients and also to generate leads. It’s also great for optimising your website so you rank more highly on Google and become more visible online.

Most importantly: All businesses can build a high profile in this new media at an affordable price. Particularly the early adopters as there is currently so little competition from other businesses as nearly all see it as new and scary.

Advertising businesses is what we do for a living, we’re damn good at it and I don’t just say so myself—click here to see what other business owners say.

Using my own experiences with business marketing and advertising, my team and I have written an extensive book available on Amazon – click on business marketing solutions.

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11th January 2010

Social Networking: Beware over-adding connections!

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One of the things that drives me up the wall with Social Networking on Linkedin  is people connecting with people they have nothing in common with, just to get raw numbers of followers up. Unless you’re a Social Networking counsultant, open ended connections won’t do anything for you. Conversion rates are almost zero.

Too many people are connecting for connections sake and this shows that they don’t know what they’re doing.

Larry Brauner recently posted a Facebook event geared around open ended connections and I think it’s a brilliant idea, for him. Why? Because his business is all about Social Networking. This event has gone viral and the popularity of it has really benefited him because it shows he has a huge network of social connections. Or course, it rightly positions him as an expert in this field, but that would not be of benefit to the 99.99% of businesses or professionals that are not consultants in social networking.

So how would open ended connection benefit a random business like an accountancy firm?

It wouldn’t. So don’t even worry about.

Worry about making effective connections, which is what we at LeadCreation will do for you.

Which is why I’m not as active on Facebook as on LinkedIn.

With LinkedIn, I create specific groups and pages which give free advice to people and showcase my own expertise when it comes to small business marketing. These groups connect me with people looking for my services and so far has been my most successful venture.

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