Banking On Friends: Why Bulk Is Going Bust

Experian Marketing Services' CheetahMail recently released an analysis that ought to wake up bulk promotion supporters, especially those relying on email as a means to deliver messages. The analysis pinpoints just how significantly emails from trusted sources outperform other marketing campaigns, even when the offer is the same or inferior.

• Friends-and-family emails had 43 percent higher open rates and 29 percent higher click rates compared to bulk promotions.
• Friends-and-family email transaction rates were 85 percent higher and 2.5 times higher against bulk promotions.
• Friends-and-family emails generate higher sales per email than bulk promotions and much higher referral rates.
• Friends-and-family emails with links to social networks had higher referral rates than direct-to-offer links.

Bulk Promotions Are Slowly Going Bust.

Before every social media expert nods in agreement, it might be important to point out that the trust measurements are changing in 2011. While the current trend is to trust people with significantly higher frequencies, the public is already beginning to slowly shift away from "brand ambassadors" who are attempting to supplant the blind bulk promotions.

Friends might trust friends who share links to social networks, but when "friendz" share simply to make pennies on the dollar or because they are enamored with a brand, then any established trust will begin to evaporate. In fact, many people have already filtered the top tier of abusive sharers — that one uncle who has nothing better to do than pass along chain emails and conspiracy memos. They were the first to go and certainly not the last.

Only Careful Sharing Will Increase Trust.

While most "influence" measures are built on a formula of little more than "volume times frequency times mass," those score-trumping trends, especially when linked to rewards for the sharer, will eventually crash. Ergo, while we all appreciate friends who share a new music discovery or review site, people are less inclined to "like" pages and "follow" brands because their second cousin likes to win contests and perks.

The trust evaporation factor may even happen faster as those once engaged are pelted by direct promos because they wanted to help a friend win a T-shirt or some other lowbrow novelty. Smart marketers already know this and have adjusted to accordingly. And those that don't? Many are already crumbling, including some who are nothing more than consultants.

Planning For Purpose: Fresh Content Project

When you take a good hard look at the communication landscape today, the fundamental missing ingredient for most companies is a strategic communication plan. After all, if more companies were operating with a communication plan, it seems highly unlikely they would use algorithms to shortcut influence selection, invest more time into "viral" results instead of outcomes, or continue to use the punch list of collateral materials that defined most communication plans three decades ago.

But yet, they do. Companies will only advertise in the Yellow Pages because that is the only place they find clients (probably because that is the only place they advertise), fall prey to online algorithm schemes (foregoing homework for scorekeeping), and dumping quality content in favor of gimmicks meant to fool spiders into directing people toward their content. All of it is largely symptomatic of operating without a plan, which is why these five fresh picks might make you think beyond the quick fixes.

Best Fresh Content In Review, Week of November 8

• Five Things PR And Marketing Should Break Free From In 2011.
Three of the five suggestions from Priya Ramesh, not surprisingly, are printed: Yellow Pages, newsletters, and brochures. She has a point. The digital editions of such communication devices are more engaging and less wasteful, which is why she concludes that traditional press releases and meetings without purpose could go too. While I might argue that some of these seemingly dated communication vehicles sometimes have a time and place, the real takeaway from Ramesh is to reconsider the company's communication. The days when every company must have this, that, or the other thing are long gone.

• Klout Versus Reality.
The most popular "influence" measurement device online is Klout despite the shortcomings of the service. It continues to receive praise and accolades from a handful of people intent on elevating their "activity" scores on Twitter (and optionally, Facebook). Klout has also done a masterful job at marketing, sucking companies into offering "rewards" across the server. According to Klout, it measures actionable items. However, the service mostly measures frequency. The more time you spend on the service, the more "influence" you supposedly have. Geoff Livingston offers up a host of other problems.

• Destined To Obscurity.
Ike Pigott calls it partly right. Too much of the Web is based on little more than vanity measures and spiders. Quality has very little to do with what becomes popular on the net. Sure, sometimes quality bubbles to the surface, but the primary reasons to communicate — to inform, persuade, teach, and inspire — are often trumped by searches and reciprocal sharing (networks of people who share whatever people who share their stuff share). And, as more people embrace the content creation of crap, quality tends to be buried at the bottom. It was the very reason we started this project.

• Why Social Media Marketing For Foreign Languages Is Vital.
Guest writer Christian Arno shares an interesting study that suggests 83 percent of marketers are planning to increase their spending on social media, but only 26 percent plan to run campaigns in more than one country. The survey is shocking when you think about it, given that the Internet is has a population that far exceeds the reach of one country. While proximity marketing can be smart, planning to attract people from other countries can be smarter. Or, at least, removing some of the barriers. You cannot establish a presence online without thinking outside the imaginary boundaries that separate people.

• Humanizing Business & Brands: Your Ambassador Ecosystem.
There was plenty of push back related to a post by David Armano, given the abundance of name dropping and plug for his company's trust barometer gizmo. But if you look past all that, the models make sense in that they aim to provide a framework for the communication operations of a company. In many cases, companies don't have to adopt one or the other, but it does seem to me that companies ought to be taking more care in mapping out their communication models as part of their communication plans. Of course, we all know that most companies have no communication plan, but we can dream.

Being Thankful: Happy Thanksgiving

“Don't waste yourself in rejection, nor bark against the bad, but chant the beauty of the good.” — Ralph Waldo Emerson

I used this quote a couple years ago as the lead in lesson for my son around Thanksgiving. And in some small way, it made an impact on his life.

The more things change, the more they remain the same. We're both still thankful for many of the items that made that list and those that came after. But this year is different. Rather than be grateful for the abundance of things, I'm happy with one.

The hand turkey.

The first hand turkey on record supposedly dates back to 13,000 B.C. It was included among the paintings discovered in Lascaux. Of course, North American turkeys are not the same as the turkey fowl in Europe, but it's still interesting to think ancient people used the same artistic technique employed primarily by artists, ages 4-6, today. (The above hand turkey was made by my daughter, age 4.)

Hers reminds me how much hand turkeys are like people. We're basically the same, with subtle differences that make us unique and interesting and worth getting to know. Some hand turkeys are fat and others thin. Some are plain and others fancy. Some are embellished like my daughter's creation, breaking away from tradition. And others are familiar, resembling something we might have drawn years ago. See for yourself.

They are all different, but we can't really say one is better than the others. They are all equally creative within the confines of their sameness. And it kind of makes me wonder sometimes why we can't see people much the same way. All those differences of opinion are nothing more than embellishments on the same design. We might celebrate them instead of fretting about them.

You know, like hand turkeys. Happy Thanksgiving.

Dumbing Down: TSA Policies Are Not A Privacy Issue

It may take some time, but the Transportation Security Administration (TSA) and Department Of Homeland Security will eventually lose the argument they have chosen, and their failed public relations program is only part of the reason. The real problem is they have chosen the wrong argument in what seems to be an attempt to dumb down complaints.

“We are constantly evaluating and adapting our security measures, and as we have said from the beginning, we are seeking to strike the right balance between privacy and security,” John Pistole said in a statement.

Except, it's not a privacy issue. It's a liberty issue.

"The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized." — The Fourth Amendment (Amendment IV), United States Constitution

Currently, no matter how you frame it (even claiming that certain transportation methods are privileges, as if), TSA policies are a direct infringement on the fourth amendment. And, even the TSA argument, that 75 to 80 percent of the public supported these measures, we might remember the U.S. Constitution was not written to protect a democratic majority, but the minority.

Heck, I've seen polls over the years that suggest better than half of all Americans would vote to have their homes searched without warrants too (based on the pretense they have nothing to hide). And a certain percentage are in favor of installing videos everywhere to help quell their irrational fears. But that doesn't make it right, just, or even remotely American as Henry Blodget seems to pretend.

The most recent TSA policies, those that were inspired by timing (and despite a bill that barred their use as primary scanners) along with pat-downs, are a threat not to our privacy but to our liberty to travel freely in the United States. Unchecked, you could argue such tactics for anyplace where people congregate (don't laugh). And if that continues to happen, unless Americans speak out against early infringements, we may as well declare the very people we are protecting ourselves from the victors.

"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." — Benjamin Franklin

I ought to make it clear, I'm not necessarily a fan of TSA security officer bashing in general, especially after my recent experience with air travel. Not every airport is staffed by overzealous or authoritative agents. Most are decent, respectful people, with the difference between departing from Las Vegas and departing from Providence like night and day.

Granted, one airport is significantly busier than the other. However, the professionalism, demeanor, organization, and courtesy of the agents in Rhode Island was light years ahead of Las Vegas, where it is made abundantly clear that the security check points are to screen for terrorists with every citizen and visitor being a suspect. Management in Las Vegas ought to take note.

Our representatives might take note too. The hypocrisy is deafening. The laughter is disheartening, conjuring images of being subjects as opposed to citizens once again.

The brewing public relations nightmare is a point of contact problem.

In response to the backlash of a situation that the TSA created, Pistole has resorted to begging citizens against opting out of full image scanners and pat downs, especially during Thanksgiving. It wouldn't be fair, he argues, to make it a hassle for those trying to make it home during the holidays, as if the opt-outers are somehow responsible for the decisions the TSA made.

I'm sure many colonists were put off when their tea was tossed into the Boston Harbor too. That's the way it goes sometimes.

The only solution to fix the continued erosion of TSA's reputation is to reverse some invasive policies and, most importantly, understand that for the majority of air traveling Americans, the point of contact — security check points — IS the public relations program. Every TSA security officer IS also a public relations agent. No amount of communication can change this fact; even TSA's mission statement demands it.

The TSA is operating out of alignment with its mission.

"The Transportation Security Administration protects the Nation’s transportation systems to ensure freedom of movement for people and commerce." — TSA Mission Statement

While some people consider the horror stories related to pat-down searches, each infraction need not be excused away as accidental lapses in service. They are in direct violation of the agency's own code of conduct to "respect and care for others and protect the information we handle."

The point is that the administration is causing its own problems, which stems in part from Pistole operating off the TSA mission statement with his own, as provided for in his bio, to "grow as a risk-based, intelligence-driven counterterrorism agency dedicated to protecting our transportation systems."

His approach seems to have nothing to do with respect and care for others or to ensure freedom of movement for people. But, without meaning to disparage his otherwise respectable career, individual visions do not trump an agency's mission. If the TSA truly wants to be on the same side as the public, it will change its policies, adopt less invasive procedures that have resulted in better outcomes elsewhere in the world, and remind officers that their employers are the people in front of them.

Full body imaging is only the beginning, says the TSA website.

Don't expect it to happen soon. The TSA has outlined exactly how aggressive it will become in the near future. In developing what one of my colleagues calls the theater of checkpoint security, the TSA states it has deployed more than 900 X-ray systems and 450 imaging scanners, plans to add biometric identification systems (fingerprints and iris scans), and expand operations to include not only subways and other transportation, but "important facilities" as well. Think about that for a minute. Or two.

Then consider that these videos will become more frequent and the responses less defensive. According to the response, the father removed the shirt of his son to expedite a search, but what remains unclear is why removing the shirt might have expedited it.

All this, and it's still safer to board a plane (1:10.46 MILLION) than to drive a car (1:84). I'm slating the issue as a case study.

Challenging SM Experts: It's A Numbers Game?

Chris Kieff is a pretty bright guy. In his interview about Ripple6, he mentions how he helps companies realize their marketing and business goals through social media. Smart stuff in one line.

Less likable was his recent thinking about social media experts and his reaction to the criticism and praise revolving around them. The primary reason is because it feeds the delusion that social media is a numbers game.

Social media is not a numbers game. At least, it won't be forever.

Ike Pigott once framed it up as it relates to duality and juxtaposition. It was one of my favorite posts that he wrote this year, but the discrepancy goes deeper.

Social media for business is less about getting numbers and more about finding the right numbers. The potential reach is not the entire online population but rather a fraction of the entire population, plus about 5 to 10 percent and minus competitor loyalists. And, at the same time, you have to maintain one-on-one relationships with whatever numbers there might be.

In other words, some companies can thrive with the tiniest of online networks. Others will die despite massive popular appeal.

It has been this way for hundreds and thousands of years. And I suspect it will be this way for hundreds and thousands more. Popularity is no indication of talent or expertise or sustainability. It's often an indication of someone resonating with the status quo, before someone else with an innovative idea topples them off the top with a better way or better gauge or better whatever.

Wilde. Shakespeare. Ford. Beethoven. Cervenka. Warhol. Einstein. Tesla. Lennon. Jobs. Hurley. Lombardi. Socrates. While many of us know these names as influential, none of them seemed all that influential before their influence had already made an impact. And mentioning this could be important to the conversation given that the most influential "social media expert" (if there is such a thing) could very well likely be someone who has 100 Twitter followers today, or, more than likely, hasn't even been born yet.

Companies might keep this in mind while they attempt to overlay metrics onto their decision-making process. While metrics can certainly help us get the job done, they can be equally misleading. While Kieff has a point that it is fair to expect that a so-called social media expert might be expected to participate in the platforms they profess to know, basing decisions on scoring dismisses the varied unseen approaches to this space.

There are plenty of communicators who keep their Facebook pages mostly personal. There are plenty of communicators who invest more personal time on other channels than Twitter. There are plenty of people who never bothered to join a ranking list or algorithm. And so on and so forth. Not to mention, simply participating in all of them doesn't make you an expert, even if it may give you a better understanding.

Searching for someone who understands social media.

Such a decision never starts with a short list of vendors based on nothing more than modern trophies. It starts with understanding the objectives of your business and then finding someone who can help you realize those marketing and business goals using social media or, perhaps, a much broader perspective, making social media a portion of your overall communication strategy.

Sure, I know nobody likes hearing that the answer isn't some short list of criteria. But if anybody wants to be honest, there really isn't any magic formula. If you want a sustainable social media program, all you really need are the people who will match what your company can offer to the people who are already looking for it.

Some of the most prominent and most successful social media programs today did not start with a social media expert (and some did). That alone makes the compelling case that it's not a numbers game. It's about results.

A few related posts you might find enjoyable.

• Down With the Teflon Revolutionaries.
• 9 Points On Why I’m Not a Social Media Expert.
• Let’s “De-Friend” All Self-Proclaimed Social Media Experts!

Challenging Retail: Post-Recession Consumers Want More

According to a new study released by Leo Burnett's marketing services division, post-recession Americans will be high maintenance, promiscuous, and much more demanding. They want innovative and engaging experiences. They want to identify with the companies that make the products they buy. And retailers have more work to do before they can meet these new expectations.

"The recession has forever changed people's mindset about shopping," said Dr. Alan Treadgold, head of retail strategy at Leo Burnett Worldwide. "People have developed new rules for retailers. As a result, retailers must understand the changed role they play in people's lives and meet their expectations to maintain customer loyalty."

Highlights From The Study Released By Leo Burnett.

1. Technology Doesn't Replace Experience. While retailers see in-store technologies as a better way to connect with their customers, customers prefer a human connection (especially when they visit a store). In fact, the study suggests that an over reliance on technology can damage an already fragile relationship.

2. Shoppers Are Promiscuous. With increasing frequency, shoppers will shop around. Loyalty is becoming one of the hardest earned assets of a retailer. More than ever before, the retailers who earn loyalty will have a greater understanding of the expectations they set and their ability to deliver on their expectations.

3. Price Is Only An Invitation. Consumers are no longer willing to trade quality, innovation, and a positive experience for a low price. The low price gimmicks and discounts may introduce them to a product or service, but it will not keep them coming back.

4. Break The Rules. Customers are not satisfied with the status quo. When two stores compete for their attention, they will almost always choose the one that breaks out of category conventions and delivers a unique experience.

5. Some Basics Are Expected. If the basics — customer appeal, retention, and, profitability — aren't right, the customer will automatically pass you by. They no longer have patience for retailers who don't meet the most basic expectations, including such things are long checkout lines or unfriendly and hurried staff.

Leo Burnett has made the white paper, Reimagining The Retail Store: The Shopper's Perspective, available online at the Leo Lens. The comprehensive study provides some interesting insights beneficial for online and offline retailers.