Corporate Blogging Series III-Consumer Engagement,Technorati authority and CGM

Research clearly indicates that organisations have accepted 2 facts-
1.Cultivating a respectable level of customer engagement is a strategic challenge.
2.The volumes and degree of consumer engagemnets will have long term implications for a firm.

Let's take a look at social media's role in this entire talk about consumer engagement.

Mario Sundar at the Linkedin Corporate Blog lists the top fifteen corporate blogs on the basis of their technorati authority.

Technorati authority is a measure of the number of blogs linking into the blog under discussion.In other words, technorati authority is indicative of-
1)Popularity of a blog as in terms of voulme of readers.
2)Volume of user generated content about a blog, with those many other users having generated content regarding that particular organisation, brand or product.

For the purpose of this discussion on corporate blogs, let us assume that a significant number of visitors to the blogs in question are customers-prospective and current.

Further, as per Ghuneim’s typology of engagement, a customer who comments on an online organisational initiative measures ‘medium’ on the degree of engagement continuum while a customer who creates content, as in blog about an organisation, brand, product, or service rates as 'highly engaged'.

Hence, the technorati authority can be safely assumed to be indicative of the volume of significantly ENGAGED consumers.The study of CRM could significantly benefit by taking into account the technorati authority of these corporate blogs, to track the volumes of consumer engagement.

Some observations-
1.There is a positive correlation between the reach(percentage of global internet users who visit the site) of a blog(source:Alexa.com) and the Technorati authority of the corporate blog.
2.There is a positive correlation between the Technorati authority of a corporate blog and the volume of Consumer Generated Media(source : Blogpulse).

Engagement refers to the creation of experiences that allow companies to build deeper, more meaningful and sustainable interactions between the company and its customers and appears to be the first step for any corporate towards building consumer loyalty, satisfaction, involvement and evangelism. Social media sure seems to provide a way.

The age of Consumer Generated Media and the unhappy consumer

In an article on Comcast must die Bob Garfield on Ad Age, solicited ideas for a consumer jehad against digital and internet cable company Comcast!!! As a hapless consumer out to get back at an erring organisation, Bob's post garnered umpteen comments and suggestions. Some interesting ideas he received , specially from a Web 2.0 and CGM perspective ranged from posting on technorati, adding flickr photos or youtube videos of any damage done, choosing tags and suggesting that folks tag their own blog posts and videos with same to forming a Comcast service group on Facebook.

While other ideas included spreading good WOM for Comcast competitors, sending posts to equity analysts who follow Comcast, or calling up Comcast Corporate headquarters,
the most interesting comment however, was to buy the web domain ComcastMustDie.com, establish a blog and issue a press release(to drive traffic) so that all dissatisfied Comcast customers would have a forum to voice their opinions!!!!...sounds so much akin to a DELLHELL in the making...Comcast....are you listening???

Building Brand Equity through Social Media

Paul Legutko's discussion at Customerthink
"......, but simply the fact that someone is staring at your company logo and creative for a certain period of time. This has an inherent branding value, and "branding" is something both marketers and management understand......high-volume sites can have significant brand-equity."
and Jim Sterne's response regarding brand impact, awareness and brand character attribution, can further be applied to the way major corporates are using the power of social media to garner brand dividends.

Coke, Hindustan Unilever Limited, Proctor and Gamble, Nike, Nissan, Pepsi are part of a trend where a large number of corporates are creating online communities and social networking sites, taking advantage of the interactivity that the internet as a digital medium provides, to capitalise on the huge number of cybersurfers.

With humongous volumes of visitors on these sites, organisations have successfully mingled customer engagement with increasing brand familiarity and distinction and focussing on solution importance, to try and create customer loyalty.

Hindustan Unilever's( India's biggest consumer goods company) brainchild Sunsilk Gang of Girls, promoting the shampoo brand Sunsilk, has a total of 579899 members in 34122 gangs. This has evolved into a huge medium where people participate, give their views and are really bonding with the brand. By discussing commonplace issues like hair care, shampooing and conditioning, hair tips, hair biology and hosting hair gurus by tying up with hairstylists like Javed, Sunsilk GOG has struck a chord with the readers. By tying up with leading magazines like NewWoman and Cosmopolitan,and Marjorrie Orr at Astrology.com, Sunsilk GOG has been able to delve into areas of interest for women ranging from beauty tips to love quizzes to astrology and with Monster.com to cater to their career aspirations. Typically catering to the youth interests of today, members can even watch funky music videos, download wallpapers and screensavers and participate in exciting contests, Sudoku and word search games.

With a traffic rank of 25,500 the Proctor and Gamble brainchild Beinggirl aims at engaging the female segment for P&G's products targetted for the female community. By giving females an opportunity to discuss issues close to their hearts, without giving up their identities, P&G has been able to provide a medium for interaction and developing relationships with its customers thereby facilitating brand loyalty. About 62% of the clientele of beinggirl is from China and 14% from the U.S.

Most of these sites, especially those catering to niche audiences, use the skills of online community managers to nudge the conversation, seed chat forums with threads, recruit others to take a lead in various topics, and monitor the dialogue

Nike's joga.com for football lovers, Coke's mycoke.com and Pepsi's pepsizone for young adventurers out to network, share photographs,videos,music and have fun, Nissan's community for car lovers discussing car models and their features......the list is endless......

Agreed that there are no ways to quantify brand loyalty as a result of such ventures, but as Paul said, as long as larger number of visitors can identify brands , logos and products, garnering brand dividends as a result of such ventures is a foregone conclusion.

The correlation between Consumer Generated Media and Sales

As the democratisation of consumer expression leads to a viral proliferation of information online, the newage communication ecosystem has prompted the need for a careful evaluation of the potential of CGM or buzz as it is called. With each passing day, consumers find innovative ways to express their satisfaction/dissatisfaction about a product or brand.

An investigation of the relationship between blog buzz, market promotion and sales in the Consumer Packaged Goods(CPG) industry, by Nielsen Buzzmatrix revealed the following-

1.CGM has the potential to influence and generate incremental publicity for products, enough to effect their commercial prospects, specially in the CPG category.

2.CPG Marketers should consider the role of Buzz in their Marketing Mix, with respect to New product communication plans.

3.Ad spend is a large factor involved in generating CPG buzz.

4.There is a strong correlation between buzz and sales.

5.Buzz helps in generating accurate forecasts.

6.Buzz Magnitude: Top 10 % of products were responsible for over 85% of total buzz generated. Buzz is higher

7.Buzz Timing: Buzz usually precedes product launch and sales and is usually highest in the initial stages

As the above reiterates the prime motivational factor for consumers to create and post CGM-To be on the forefront of something new, it is profoundly clear that CGM will need to be an intrinsic component of the new product communication plans for marketers.

Consumer Generated Media - How peer reviews highly influence consumer buying behaviour

Here is something which corroborates my thoughts on Opinion Leaders and CGM and The era of the empowered consumers-
A report published at ReportonBusiness.com about Online Buyers scouring for deals

The findings of the report include-

1. More and more online buyers are turning to peer-reviews for product related advice, before adopting a product.

"When asked to note their most trusted information source, sixty per cent of online buyers said consumer reviews compared to 31 per cent who said newspapers or magazines."

2.Large no. of online buyers indulge in comparison shopping and use social networking sites to do so.

3.Online buyers are early adopters of social networking such as writing or reading blogs, customer reviews, and community websites. They're more likely to share their opinions and give reviews online than people who shop the old-fashioned way.

4.As social netwroking sites abound with users, they will be areas of most potential for e-commerce.

5.Embracing advertising in the web's community sites appears to be very promising for marketers.

Hope the heads of the organisations (The customer was king....)hesitant to adopt CGM as a promotional tool are listening!!!!

Opinion leaders and CGM

As a consumer's pre-purchase research finds more value and credibility in an informal source of information,rather than a company's advertising campaign or it's salespeople, CGM and opinion leaders are fast becoming forces to reckon with.

Opinion Leaders (Schiffman, Kanuk)have an informal influence over consumer behaviour and impact consumer acceptance of new products and services and Consumer Generated Media has provided a new source of communication for these opinion leaders.

The question is-
What drives an individual to be an opinion leader?

Desire for Self-Actualisation-
A feeling of superiority or status by demonstrating expertise by generating content and on being considered an authority on a subject.

Desire for Self-Projection-
Desire to build a credibility for himself. Research shows that individuals categorised as opinion leaders are four times more likely to be asked for advice/voice their opinion on any subject under discussion.

Need for Self-Confirmation-Try to reduce own post-purchase dissonance or self doubt regarding a purchase, by discussing the product features in a medium which will garner some comments, which if positive, will reassure the concerned individual regarding the appropriateness of his purchase.

Need for Social involvement-
Some people love sharing product related experiences and use these conversations as a means of being part of the community.

As the keen desire for knowledge and information drives an opinion leader to be an innovative consumer and share his experiences, his gregarious nature and access to the community coupled with the fertile opportunities provided by the collaborative web, can be utilised by organisations to generate favorable conversations about their products and services.

It is upto the consumer marketers to decide how to 'identify ' these opinion leaders or 'create ' 'CUSTOMER EVANGELISTS'

The consumer was the king and we all seemed to know it.

According to the fifth annual PRWeek/Manning Selvage & Lee Marketing Management Survey, polling 279 U.S. chief marketing officers, VPs of marketing, and marketing directors and managers, and focussing on new media/CGM, integrated marketing and industry ethics, only about 12% respondents had CGM on their mind when considering marketing platforms.

Now why is this so?
CGM or consumer generated media is gaining imporatnce as the newly empowered consumers finds himself with a voice to express his opinions and post purchase emotions.

Organisations on one hand have a set of satisfied customers generating content about their positive experiences and influencing product adoptions by their friends and relatives, and on the other hand have to contend with unhappy customers sharing their woes with the threat of doing so in a technologically empowered digital environment capable of replicating the thoughts umpteen times, as people take to reading each others creations and linking to them.

As per the ADAGE article on the above subject, reasons for non-adoption of CGM as a promotion tool by several organisations stems from-

1. Fear of empowering a consumer to the point of no control.
2. No clear ROI on the subject yet.
However, the cost-effectiveness of this media over traditional media is bound to eventually let it get into vogue sooner or later.

Agreed that organisations are wary of embracing a medium where the echo of the consumer voice may be uncontrollable, but in an era where marketers are talking about
-Customer Relationship Management
-Customer Lifetime Values
-Increasing customer shares rather than market share
-Product Customisation
-Customer data warehousing and datamining and
-Using customers as brand evangelists,

will it not be contradictory to keep the consumer voice muffled?...After all, the consumer was the king...and we all seemed to know it.

Social networking and the collaborative environment

An interesting post by Eric Kintz, CMO, HP to take a look at Facebook's marketing potential.Early explorations for facebook's potential for marketing

How facebook's integrated collaboration environment could be a one-stop shopping avenue is described best in The Teenybopper Network by Andrew Mc Afee, Associate professor, Harvard Business School. His description of Facebook as collaborationware that spreads like wildfire and what exactly motivates people to get involved with this technology facilitated network building -"The desire to be popular and make friends" sums up the concept behind the ever increasing numbers on these social networks.
Also,
Facebook now open to enterprising developers talks about the innumerable applications being offered to developers to customise facebook to needs of the enterprise.

Another interesting post at the Gilbane Group Blog Facebook and enterprise 2.0 throws up kindof unexpected results. On a query on which collaboration technologies youngsters would use over the next 2 years in their jobs, email emerged at the top of the list. This was fairly acceptable considering that email is the primary source of interaction ad formal data communication in any enterprise today, but the tremendously low expected usage of blogs/wikis and a networking platform like facebook was a departure from the current picture emerging with the increased usage of these networking platforms.After all, appearances are deceptive!!

Case study from Brandingwire

Interesting new blog containing case studies and having a set of bloggers solve them independently. The first case study from
Branding wire is about a fictitious coffee company and the objective is to work out a strategy for growth and expansion. Ideas of contributors range from branding strategies to expansion plans, to extensive market research with the current consumers, to managing customer relationships, developing web strategies for publicity, capitalising local strengths, employee training to kiosks etc. An exhaustive list of ideas..

The one that stuck a chord was the idea on using Coffee outlets for Social Networking by The Branding Blog
In the era of social and Business networking, using these premises for the same, would definitely act as motivation for the social groups and adding an image angle to the offer, can make way for elite/premium social groups to get associated with the coffee chain. This will automatically take care of the word of mouth/buzz marketing as interested groups would like to be part of the clique.The relationship equity can be built upon so that customer's tend to stick to the brand beyond subjective or objective assessments, so much so that sticking to that brand of coffee becomes a habit.
Using social media further, adding access to internet based social networking at such a hangout can further set the revenue registers ringing.

Adding further to Drew Mc Lellan's idea of collecting data to gauge a customer's point of view, maybe some online communities can be established to have people share their coffee experiences...rather than interviewing customers, maybe an online site where they could briefly document their experiences before leaving, and hence be part of the 'Coffee' community....

As suggested by Brand Impact
" go after influential bloggers; find a large number of bloggers inside and outside the coffee blogging arena, and send a complimentary 1/2 pound bag. Ask for their input, either privately or publicly (on their blogs). Bloggers like coffee (by and large), and have an outsized influence"

Having satisfied customers create content about their experiences is bound to set off a positive chain which is much more beneficial than any other marketing or brand building tool....After all, satisfied communities not only indulge in repeat purchases, but also are great customer advocates....

The era of empowered consumers-why do consumers generate content?

At times, as customer expectations are met and desired level of customer satisfaction achieved, a company is left with a happy customer.
What is a happy customer most likely going to do?
He is going to-
1.Refer to the company's product happily whenever he engages in a conversation in that regard.
2.Influence other people to adopt the same product.
3.Indulge in a repeat purchase.
4.Create positive content about the company in case he is part of any web 2.0 social media components.
5.Provide Feedback and maybe product related ideas to the organisation.
point of view

So far so good.
An unhappy customer is most likely expected to work on opposite lines.

The question is-
Why does a consumer bother to create positive/negative content about a company based on the product that he has used?
1.Empowerment-
The feeling of empowerment is unique. It gives a consumer an immense sense of satisfaction to know that they have a tool to get back to the company they have bought a product from.
2.Helps a consumer augment his self-concept-
The thought that content generated by him may later be read and analysed by the concerned company gives a consumer a feeling that he has the ability to contribute to the customer management and feedback analysis systems of the company and becomes a primary motivator to make him create content.
3.Catharsis-
CGM has provided a medium to the common man to unload his thoughts and sentiments.
4.Conversation-
The ability to create a conversation tool to build a community of people using similar products and airing their views.People love to talk and share their experiences and when a tool is available, why not.
5.Project a public self image-Consumers also try to develop a personal brand through the content they generate.

As organisations strive to be more Consumer centric,it is the consumer who finds himself suddenly becoming powerful, with the ability to influence the reputations of organisations. Managing consumer relations and aiming at consumer satisfaction are no doubt important keywords for the success for any organisation.

Levels of social participation in Social Media

As per the Social technographics report published by Charlene Lee of Forrester Research, there are six levels of social participation in social media in the U.S.This comprises creators, critics, collectors,joiners, spectators and inactives.Interesting comparison of Apple and Dell users and relevant from the point of view of marketers who can identify their target market and which rung of the ladder they are on, thereby creating appropriate strategies towards using web 2.0 for onlime marketing and branding, developing customer relationships, and using customers from a CGM and customer evangelism point of view.
However, if we consider the case of a country like India, where the total population is something like 1,129,667,528 and 40,000,000 web users , with a .035% web usage, the majority of the population would be in the inactive segment.How relevant something like this would be in an Indian context is something for only the urban population to decide.

Corporate Blogs and their objectives

Corporate Blogs are now becoming authoritative sources of information regarding a company. There value and importance can be gauged when a simple technorati search on the word ' Corporate Blogging ' yeilds more than 19000 results. Considering the amount of buzz generated by the same, their importance with respect to leveraging consumer intelligence and magnifying success stories is now undeniable.

As Linkedin launched its corporate blog , the objective they stated was interesting-
"Linkedin was started with the goal of helping you manage your professional relationships better, and today we’re launching our corporate blog to not only help you leverage LinkedIn more effectively but also to provide you a sounding board for all things LinkedIn. So, if you’re looking for a singular information source on LinkedIn with regular updates on upcoming product features, tips-and-tricks, and events or if you’d just like to hear about all the fun stuff associated with working at LinkedIn, you have reached the right place."

A query on the objective behind the Corporate Blog of Bill Marriott, CEO , Marriott Hotels states the following blog objective-
"The purpose of the blog is to create a forum for people to interact with Bill Marriott. We're proud of our culture, history, service excellence, and especially our 143,000 associates whose Spirit to Serve makes us so successful. Part of what makes us great is our belief in service to the customer and Success is Never Final.This blog allows us to hear from you and build on the community that we've nurtured for 80 years."

The DellBlog-
"Our goal is to build Direct2Dell into a community that’s driven by direct communication. We hope to provide you insights into Dell and the employees that drive the company forward."

Digital Straight Talk is a blog produced by Cox Communications. It's a source of views and news on the many issues affecting broadband providers and consumers.
"High-speed Internet, cable telephony, HDTV and a whole host of related innovations and issues in the digital space have created intense competition among providers. And, where there’s competition, there’s no doubt info overload for consumers and others trying to make sense of it all. With Digital Straight Talk, we want to make sure those in the industry, consumers and others who care have a clear understanding of our vision, direction and opinion."

Corporate Blogs are set up by companies to-
1.Build Product Brands.
2.Create a customer-centric approach for the company.
3.To give people a contact point by attaching a face or name they can interact with, hence catering to the concept of relationship building.
4.Create a buzz about New product/project launches.
5.Act as a source of consumer redressal.
6.Act as a source of viral marketing. Its a place where people chat about the company and the products and if they talk well, well you've got a word of mouth campaign already started.
7.Create communities for communication, collaboration,customer-interaction.
8.Image building purposes by showcasing any good work done by the company.
9.Showcase any achievements by the company and any recent successes...

At the end of the day it all boils down to securing more customers and retaining already existing ones....broadly....add to the value perception of a company's customers!!
Don't you think Customer Relationship Management is the ultimate goal of any corporate blog?

Internet etiquette_How to practise listening while communicating online

Effective use of interpersonal skills in communicating online is an essential component in making and keeping the internet a positive and useful force, as technology ushers in newer features with each passing day.

Online communication is limited in its capacity to convey non-verbal meanings and relies on symbols, acronyms, abbreviations and formatting styles instead.

Active listening-
Listening is the process of receiving and constructing meaning from and responding to verbal, non-verbal or online communication.

In a typical imterpersonal interaction, Social Psychologists state that usually 40-50% of meaning is lost in the transmission of messages from sender to receivers.While Language, noise related issues, misinterpretation of body language, ineterpersonal issues along with receiver distortion, defensiveness and distorted perceptions can be identified as the common barriers to listening, the same multiply in the context of online communication in the absence of face to face contact.
Hence it becomes important to be very careful in communicating online and the first step in this direction can be identified as Effective Listening.

1.Paraphrase and summarise comments made by others.Simply responding to other people's messages by an 'i agree' creates a feeling that reading or listening in this context has not transpired.
2.If you need to quote from the sender's message for clarity, select only the most relevant statements foloowed by your comments.
3.Ask questions. Empathise.
4. Do not immediately interject your own thoughts and feelings, while listening to(reading) thoughts and opinions of others.
5.Use online abbreviations , contractions, emoticons and acronyms sparingly.While a smiley may soften a comment, too many are a clutter.
6. Avoid perceptual biasisand stereotyping.

Hence to be able to communicate effectively online , one must do away with self fulfilling prophecies and concentrate on seeking intent, focussing and trying to analyse the written matter-Because at the end of the day 'the most basic human need is to understand and be understood.The best way to understand people is to listen to them.'

Indian Firms enter the Blogosphere

Abhijit Bhaduri at the Frito Lay Blog sent me an interesting link on an article on Blogging which appeared in Asia Times in HongKong.Indian Firms enter the BlogosphereThanx Abhijit...

Eric Kintz's response to Corporate Blogging and CRM

As i pursued my quest on Corporate Blogs as a tool for CRM, I decided to query a few writers behind these blogs...Response from Eric Kintz, CMO, Hewlette Packard, to my query on Corporate blogging as a tool for CRM

“As HP is substantially into corporate blogging (am an avid reader of these blogs), do u think it has been successfully able to levearage these blogs from a CRM point of view?Vandana”

“I think that blogging is still unproven, but is a great way to provide a personalized dialogue with customers. The vast majority of my readers are HP customers and they have through my blog a personal interaction and personal dialogue about what HP is trying to accomplish in the marketing space. Eric”

Web2.0, Networking and Image Building

Sat through a very interesting lecture by Bethany Cheney, the Marketing head, U.S.A. of Techtribe-an online community established courtesy Web 2.0. She spoke on
" Building the Brand of a Leader" and brought out how increasing visibility, networking appropriately and developing charisma were the key ingredients to a successful image building exercise, which inturn would be very useful for individual growth and success.

Her interesting observation that 'there are only six degrees of separation' highlighted the power of networking and how connectivity can be established between total strangers to accrue benefits for the others. Web2.0 in turn has opened a plethora of options to leverage this understanding of networking to build relationships.

These online communities have been setup for developing contacts with other people as well as sharing information and knowledge for growth,as also forge vital business associations. A valuable outcome of this new phenomenon is that senior corporate honchos, who could be well established names in their respective domains can service the community by functioning as mentors to the youth.The youth in turn can have the dual advantage of developing rapport with established industry names, as well as gain vital information through participation...

From SEO and SEM to SMO and SMM.

How will the big brands react?

Internet marketing, once upon a time talked about Search Engine Optimisation and Search Engine Marketing. Now it talks about Social MediaOptimisation and Social Media Marketing.Social Media Optimisation or SMO, a term recently coined by Rohit Bhargava,Vice President for Interactive Marketing with Ogilvy Public RelationsWorldwide, aims to "Leverage all the links and marketing value you canget from social and business networks".

Rohit Bhargava's 5 rules on SMO, which eventually got converted to17 rules, courtesy other readers, showcases how the power of online contentcan be used from a business development perspective.SMM, coined by SeoMoz also aims at reiterating the impact of social networking and itscontribution towards marketing.

In the Indian context, the foray of broadband into the houses of averageconsumers has made internet a pervasive influence in users' lives. As unexpected outcomes emerge from unanticipated dimensions, the time is not far when big brands will end up using Social Media to promote theirproducts and use Web 2.0 as an integral part of their marketing strategy.