3rd January 2012

Grey Hair + Spiky Hair = Magic Marketing

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Good marketing always needed experience, some grey hairs. To know what worked in the past and why. What failed, and why. With enough diversity in that experience to understand how this latest situation might be different. Why it could work if we gave it a little twist.

Enough experience to be able to put the constant new stuff into context, into perspective. To see the flaws in the flood of books from the instant experts on Social Networking. To see the impracticalities.

It’s 45 years since I started my first business when I was 14. And I’ve since worked in 6 different countries. And analysed and advised well over 800 companies in that time.

But, in today’s world of technical wizardry and globalisation, you need the other half of the equation ….

The smart young people who grew up with technology and constant change. Who love it. Who automatically challenge everything and constantly ask questions. Who constantly follow links and ideas to see it where it takes them. We have over 20 of them – it is a critical part of staying ahead of the game.

The combination of grey and spiky is exhilarating. A lot of fun. And incredibly fruitful for our clients.

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17th December 2011

OK, Social Media works. But who’s going to implement?

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In the large boardroom of a large Corporate presenting to their senior management team. On all the ways they could transform their marketing and save a million or so by not burning their dollars on ‘Random Media’ (i.e. mass media – newspapers, radio, etc).

And one of them was looking a bit unhappy. And when I asked for questions, she said: “OK, can now see this Social Media stuff could work for us, but we just don’t have the time to implement it. To get any meaningful results will mean us giving up a chunk of our day jobs!”

And that’s what sparked this article. I realised that she was used to marketers standing up and presenting lots of ideas. “Re-position the company” “Run advertisements” “Grow ‘awareness’ using Random Media”. All the old stuff that the ‘Tell and Sell’ school still do.

But, following the boardroom presentation, she realised that Social Networking means engaging. That real people have to get involved online to talk to prospects and clients. Real people who are smart, who know the business. Particularly important in BtoB where you are talking to other business people.

We realised 3 years ago when we launched Lead Creation that marketing on Social Media was very time consuming. And that if we were going to change how companies did their marketing we had to be different. We couldn’t just tell people what to do and then send them a large bill. Or pretend that Social Networking just means putting up a profile. And building a list of fake followers as the ‘Tell and Sellers’ so often recommend.

We had to implement it. And that needed a number of things including a large team of very smart, very talented young marketers.

But Social Media is so very time consuming to do it well. So we needed to develop a new labour force: a regular supply of the smartest interns from around the globe. From the best universities, and who stay with us full time for at least 4 months, and sometimes 12 months.

Who work for free. So our clients can afford to do social media. And lots of it, and so realise how effective it is and cancel the last of the Random Media ads.

Very pleased that that was their only objection. Easy to overcome given our business model!

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16th December 2011

Why does Social Media work better in B2B than B2C?

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Most people who work in B2B believe the complete opposite. That Social Media/Networking works better in the consumer world. And many think it’s just for selling consumer items to young people or to housewives on Facebook.

But there are strong reasons why Social Media is so powerful for companies that sell to other businesses:

The field is empty, it is all yours! Most B2B marketers ignore it, so you don’t have a lot of competition crowding you out. So it is easier to build a high profile. And you have the opportunity to be the first to build a community of your customers.

You are not selling to a business. Even though it’s B2B, there’s always a ‘C’ on the other end, you are selling to a person. And most of these buyers of what you sell are on the big network built for business: LinkedIn. So, with the right strategy, you can gather them together. And engage them. And then sell to them.

The sales cycle is complex and longer for BtoB. So you need the ability to engage with prospects over a long period of time. Social Media/Networking gives you powerful tools for free. And your prospects update their own records: it’s your self-updating CRM

We are in the first stage of the Social Networking Age. And many of the ‘experts’ advising businesses are refugees from advertising agencies. From the world of ‘Tell and Sell’. So they migrate these techniques to Social Networks. So wrong. It is about engaging, about starting relationships. Tell and sell doesn’t work, adding to the perception that these tools won’t work in the B2B world.

So, the field is open for all of you in B2B. On your marks …

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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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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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