Archive for September, 2009

Sorry Mashable, but you’re wrong about Whole Foods. Celebrity does not equal competence.


2009
09.21

In his recent Mashable post, Soren Gordhamer highlights “5 Social Media Lessons from Whole Foods”, and starts off by proclaiming that they have “impressively embraced social media more than most”. As evidence, he points out that they’ve amassed more than 1.2 million Twitter followers and more than 123,000 fans on Facebook…. which brings me to the point of this short entry/rant. Why does there seem to be this pervasive confusion that social media celebrity and social media competence are one in the same?

Time to change the logo?

Time to change the logo?

Allow me to explain… imagine you were invited to a cocktail party hosted in the Rose Garden by Barack Obama and the first family. And imagine this party was attended by society’s elite, including business and world leaders from across the globe. Now imagine you were asked to attend and were very excited by the idea that you’d get to shake hands with the world’s most powerful people, and that you were determined to make a good first impression that would have lasting positive implications for your business and personal lives. So, this being the case, which of these scenarios would demonstrated a higher level of social intelligence?:

a. You show up looking (and smelling) drunk and disheveled, boorishly fawn over the female guests while mumbling inappropriate commentary about Mrs. Biden’s cleavage, wind up dancing on the tables and finish the evening by skinny dipping in the Reflecting Pool. You’ve been thrown out with everyone watching, and they all know who you are.

b. You show up dressed impeccably, wowing the guests with your charm, wit and manners. You discreetly mention your occupation, but only when asked, and promise to follow up, but only when asked. You leave having engaged meaningfully with only 20% of the guest. Each of which, however, has a lasting positive impression of you, and is now formally an acquaintance.

Similarly, which of a or b would create greater celebrity for yourself?  I think we all know the answer to that…

So, back to Whole Foods then. Perhaps they’ve done a decent job of achieving social media celebrity, and indeed they have cottoned onto something substantial in the concept of organic, unprocessed food, but I personally feel that saying their use of social media is impressive is grossly inaccurate. Why? Because, quite simply, it’s SOCIAL media and not social MEDIA, and being impressive in one’s use of it requires that one is impressive when it comes to one’s social IQ… something Whole Foods is decidedly not, starting at the top.

Social Media Faux Pas  #1: Lying about who you are

Social Dummy?

Social Dummy?

Back in 2005, the a series of posts bashing retailer Wild Oats appeared on a Yahoo! Forums board under the name Rahodeb. “Would Whole Foods buy OATS? Almost surely not at current prices. What would they gain? OATS locations are too small.” Rahodeb speculated that Wild Oats eventually would be sold after sliding into bankruptcy or when its stock fell below $5. A month later, Rahodeb wrote that Wild Oats management “clearly doesn’t know what it is doing. . . . OATS has no value and no future.” Thing is… Rohodeb was actually John Mackey, Whole Foods CEO. Uncool… very uncool. And when challenged, this was his response:

“I posted on Yahoo! under a pseudonym because I had fun doing it. Many people post on bulletin boards using pseudonyms.” He said that “I never intended any of those postings to be identified with me.” “The views articulated by rahodeb sometimes represent what I actually believed and sometimes they didn’t. Sometimes I simply played ‘devil’s advocate’ for the sheer fun of arguing. Anyone who knows me realizes that I frequently do this in person, too.

Social Media Faux Pas #2: Publicly Shunning Your Primary Segment

On August 12th, 2009 John Mackey wrote a Wall Street Journal editorial quoting Margaret Thatcher and suggesting that healthcare is a commodity that only the rich, like him, deserve. In retaliation, the very community Mackey has been relying on to pay his exorbitant prices even when they can’t really afford it,  established one of the fastest growing groups in Facebook history: “Boycott Whole Foods”. Last count: 34,213 members and growing… Again, not exactly a shining demonstration of a high social IQ.

So how do I account for the massive following Whole Foods have online if their social media strategy is crap? It’s simple… their success has nothing to do with social media or Whole Foods. It has to do with a population intent on overspending on food so that they can convince themselves they’re healthy. By co-opting the “we shop at Whole Foods” message, people are trying to tell a story about themselves to themselves (as Rob Walker would be proud of me saying :) ).

I’d love to hear about other examples of so-called experts confusing celebrity with competence. Please chime in with your thoughts….

-D

P.S. Trader Joe’s is the sh*t! ;)

  • Share/Bookmark

Facebook determined to beat the Twit out of you


2009
09.12

Beaten Twitter Bird

A new post by Facebook engineer Tom Occhino today announces Facebook’s adoption of the @-symbol call-out most commonly associated with Twitter users:

Now, when you are writing a status update and want to add a friend’s name to something you are posting, just include the “@” symbol beforehand. As you type the name of what you would like to reference, a drop-down menu will appear that allows you to choose from your list of friends and other connections, including groups, events, applications and Pages. Soon, you’ll be able to tag friends from applications as well. The “@” symbol will not be displayed in the published status update or post after you’ve added your tags.

It’s no secret that Facebook has been desperately trying to muscle-in on Twitter’s lifestream concept; now it’s appropriating the very conventions of Twitter.

via Facebook | Tag Friends in Your Status and Posts.

  • Share/Bookmark

Executives and Social Media


2009
09.10

According to Russell Herder and Ethos Business Law, the vast majority of executives see value in social media– particularly in company branding:

Value of Social Media to Executives

This focus on brand-building strikes me as being similar to the US’ attempts at nation-building in countries like Somalia and Iraq: it sounds great on paper until you try to dispense with the conceptual framework and find measurable indicators of success. How is the effectiveness at brand-building to be determined over social media tools? (And are we too preoccupied with the tyranny of the click in even wanting such granularity? The lack of metrics inherent to brand-building never stopped anyone from taking out a full-page ad in the New York Times.)

It is also telling that executives see a number of corollary benefits to social media, several of which relate to their employees:

More than eight in 10 management, marketing and HR executives responding to the July 2009 survey cited relationship- and brand-building as benefits of social media. Execs also considered social media a good tool for recruitment (69%) and customer service (64%), and 46% thought it enhanced employee morale.

Will social media evolve into a critical internal function which will unseat the interoffice newsletter as the dominant form of interaction within an organization?

via Executives and Social Media – eMarketer .

  • Share/Bookmark

Is Collective Invention any better than Design by Committee?


2009
09.09
Preakness anyone?

Preakness anyone?

They say that a camel is nothing but a horse that’s been designed by a committee… and given my experience working in a large company with large clients, I have to agree wholeheartedly with the idea that sometimes the best results don’t come from the input of many.

But while it’s true that fewer cooks often lead to more delectable meals, is there any merit to the idea that, although committees often produce a solution heavy in appeasement and compromise and light in innovation and impact, sometimes great inventions come from the egalitarian contributions of a mass of individuals? I mean, isn’t this the ethos of open source development, and the reason that we even have such things as Linux and the Internet?

So why the camel stigma then? Is it just that small groups are a breeding ground for competition and posturing or is there something more to this idea? While you ponder this thought, check out Quirky.com, a great site that came to my attention through  Consumed (trust Rob Walker to find another weird and wonderful intersection betweeen products and people).

signup

Quirky.com

What’s it all about? Well, here’s how it works:

  1. You pay $99 to submit your idea;
  2. The sociosphere votes on your idea and weighs in with suggestions for improvement;
  3. The best ideas are produced and marketed without you having to lift a finger;
  4. The more people weigh in and/or vote, the more “clout” your idea develops i.e. the larger your share of the pie;
  5. 30% of all takings go back to the “community” i.e. the people who contributed to your idea.

So, basically, I can pitch an idea into the collective brain of the sociosphere, watch them improve it, watch someone else make it, and then take in up to 15c for every dollar my idea generates in sales? Hmmm… out of curiosity I ran some numbers on one of the items advertised on their front page:

Quirky.com

The Scratch-n-Roll sells for $14.99 (let’s call it 15 bucks). So, if I made 15c for every dollar, that’d give me $2.25 for every unit sold … or put differently, I’d break even at about 45 units.  If it sold a thousand units I’d make about $2,150, and if it was a hit and cracked 10,000 unit sales… I’m about 22 grand richer! And to make the dreamer in me happy, imagine we could move 100 thousand units… well, then we’re talking North of a quarter million dollars. Doesn’t seem too bad for simply sharing an idea and then sitting on my ass!!

Now, I don’t know whether this product, or even the concept, will be a success. But, the socialmediology wikinomicist in me hopes like hell it will, and I’ll be following this with keen interest.

So, then, how do we explain the success of crowds versus the perceived failure of committees? I’m not sure… but I’ll be scratching my head about it until I am. Any psychology major or consumerist out there with an opinion? Would love to hear from you.

-D

  • Share/Bookmark

Why Gmail Users Open More Email


2009
09.08

A new report from MailChimp shows that Gmail users are more likely than other webmail users to open and click on email messages:

Webmail open rates by service

Open rates varied from a low of just over 20% for e-mail sent to AOL users to a high over nearly 31% among Gmail users. The click rate on e-mails sent to Gmail accounts was more than 7.4%, compared with rates between 4% and 5% for Yahoo!, AOL and Hotmail users.Messages sent to Gmail accounts also had the lowest hard bounce rate, though other data indicates Gmail’s spam protection may be so stringent that messages disappear without producing a bounce.

The author’s concluding assertion that Gmail users may be friendlier to marketing messages than users of other webmail services completely misses the point: it is the very ability of Gmail’s spam filters to remove such marketing messages in the first place which results in its users’ comparatively high open and clickthrough rates.

via Who Is Most Engaged with E-Mail? – eMarketer.

  • Share/Bookmark

How can Small Business Owners and Realtors take advantage of Social Network Marketing?


2009
09.08

That’s the topic for a free seminar we’ll be hosting in Los Angeles this week alongside small business marketing guru, Craig Duswalt, and long-time Realtor and social networking star Tammy Burnell, who recently appeared on the Dr. Phil show!

More specifically, we’ll be talking about how small business owners and Realtors can take advantage of social media to generate leads, get referrals and create new business for themselves by being smart about how they use tools like Facebook and Twitter.

We’d love to see you there… and please, bring your friends!

Cheers,

The SocialNotions Team

Events
  • Share/Bookmark

Facebook Users Trash Honda Accord Crosstour


2009
09.05

Ahhh, the Interwebs. You just have to love the power of genuine conversation– especially when it concerns your company’s products. Honda recently launched a Facebook fan page for its new Accord Crosstour, and the early response from Facebook users has been unmistakeable:

It looks as if all those fans have nothing but hatred to spew about the Crosstour. Wall comments are flooding in, and Facebookers agree — Honda took the wrong fork in the road with the Crosstour’s design.

The Crosstour Fan Page reads more like a hate page, with no shortage of commenters voicing their dislike of the design.

Sample opinions include:

Facebook comments

Now that Honda has a clear idea of what people make of the Accord Crosstour, the question is: what will it do with such information? Hopefully, it will take a cue from Chevrolet, which demonstrated major social media savvy by resisting the urge to pull the plug on its 2006 Tahoe promotion, despite overwhelmingly negative user response.

via Honda Accord Crosstour Damaged In Facebook Hit and Run.

  • Share/Bookmark

Yes, People Are Actually Friending Special K


2009
09.03

Hello Kitty Pop Tarts

In an interview with BrandWeek, Jose-Alberto Duenas, Kellogg’s Marketing VP of Ready-To-Eat Cereals, discusses the impact of social media on familiar brands like Special K and Pop-Tarts.

It’s worth reading in full, but the following passage jumped out as being particularly insightful:

BW: So, you can’t just take any brand and put it in social media?

JD: You have to start from a really strong base. You can’t, in a way, start from scratch with social media, especially because consumers have to have a certain level of engagement with the brand. With Special K, we know the brand already has that level of communication and emotional engagement with consumers, so we’ve given them a new way to interact with the brand. That was the right first step. [With Pop-Tarts], we were building off a very strong, already established relationship with kids. Kids have been using digital media, but Pop-Tart’s [foray into social media] also opened up [the brand’s] target in terms of having a conversation with teens and moms, which came later.

This simple idea is so often lost in the scramble to “get social”: you must have something which makes people want to engage with your company. It might be the strength of a brand, like Pop-Tarts. It may be terrific content. In the end, you must have something more exciting to people than simply announcing that they can follow you on Twitter now.

via How Special K Became a Social Media Star.

  • Share/Bookmark

Think People Don’t Interact With Brands Online? Think Again.


2009
09.03

According to a new report from eMarketer, customers are increasingly engaging with brands in social networking forums:

Common wisdom over the past few years has been that people are interested in interacting with social network friends, not marketers. Not so, according to Anderson Analytics’ May 2009 survey—52% of social network users had become a fan or follower of a company or brand, while 46% had said something good about a brand or company on a social networking Website—double the percentage who had said something negative (23%).

Social Networking and Brands

While the search for clear metrics that link brand endorsement to increased customer profitability remains elusive, this report shows that consumers are quite willing to praise — or slam — brands online, rather than limit their social networking actions to their friends. The opportunity for companies is clear: would you rather be unaware of these conversations about your brands, or have a voice in the discussion? via Social Network Marketing Expands Sphere – eMarketer .

  • Share/Bookmark