Posts Tagged ‘marketing trends’

How 4 Brands are Leveraging Social Media

Tuesday, November 10th, 2009
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At yesterday’s Social Media World Forum in Santa Clara, CA, I attended a panel discussion entitled “Benchmarking Advertising on Social Networks.” The panelists represented American Airlines, Harley Davidson and Warner Brothers Records. I also recently attended a social media discussion with Dell Computer at the TechTarget Online ROI Summit.  Here’s a recap on how these top brands are leveraging social media to acquire and engage with customers and fans.

How is Social Media Being Used?

  • American Airlines (AA) uses social media in targeted geographies, known as “geo-targeting” to boost passengers on specific flights. They also provide travel-related content beyond flight information as a value-add to their passengers (restaurants, entertainment, lodging, etc.)
  • Harley Davidson uses social media for new customer acquisition and to build a community of evangelists among its customer base.
  • Warner Brothers recently brought its advertising in-house as it experiments with ways to monetize content that is often free on sites such as YouTube.
  • Dell Computer uses social media to engage with prospects and customers and to track and respond to what people are saying about them. Dell uses blogs, online forums, bookmarketing/share widgits, Twitter, Facebook, YouTube, flickr and LinkedIN.  Through social media, Dell sold over $2M of product last year using a Dell Outlet promo code. Employees can engage with prospects and customers online and follow a code of conduct that requires them to identify themselves as working for Dell and to “use their best judgment”.  (To see the largest collection of social media policies, check out the Social Media Governance website.)

Benchmarking Process

  • AA benchmarks by setting measurable goals, such as the number of passengers on certain flights.
  • Harley Davidson uses Key Performance Indicators (KPIs) such as 1) relationships (no. of fans or friends), 2) click-through-rate (CTR) on paid ads, 3) visitor engagements (number of times content was shared among friends) and 4) media value (profile visits, cost-per-click).
  • Warner Bros. tracks and measures the amount of traffic that they drive to an artist’s site, and the number of Facebook friends and Twitter followers.
  • Dell uses tools such as Buzzient to see the most active sources of a topic as well as Radian6, GoogleTrends, Google Alerts and TwitterSearch to measure their “share of voice” in comparison to competitors. They track changes in Twitter follower count, number of re-tweets, changes in website or blog traffic and their Twitter influence using a tool called Twinfluence.com.

Use of Facebook and Twitter

  • AA uses Facebook to spur conversations among their passengers and to hook people to content, what they call “virtual hubs.”  Twitter is used as a listening tool to monitor what people are saying about AA. Six full-time customer service reps monitor Twitter and reach out to people to assist them if appropriate. Twitter is used to deliver flight information as well – especially delays due to weather issues. As a result, calls to the AA customer support 800 number have dropped.
  • Harley Davidson uses Facebook for initiating conversations with and among fans. Twitter is used by fans to see “what’s happening this moment” at Harley Davidson-sponsored events.
  • Warner Bros. views Facebook as a place for conversations to happen. They post photos of fans with an artist and the fans will tag themselves.  Twitter is viewed as a “digital billboard” to drive traffic to Facebook or an artist’s site. It also is used for scavenger hunts in which fans use clues delivered by Twitter posts to find CDs and concert tickets.
  • Dell monitors Twitter for both positive and negative mentions of the company or their products as 20% of Tweets mention a product name or company. They have several Facebook Pages to build fans and discussions among their target user segments.

Summary
Key advice from these brands:

  • Listen first – find out where your audience hangs out online and what they’re saying about you
  • Integrate social media into your overall communications mix, being consistent with content and messaging
  • Set measurable objectives and monitor results

At the end of the day, social media is another avenue to build a strong community and trust among your prospects, customers, partners and investors.

For more information, check out these blog posts:

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2009 Email Marketing Trends and Response Rates

Wednesday, March 18th, 2009
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I recently attended a BMA breakfast meeting hosted by Laurie Beasley of Beasley Direct Marketing. Laurie shared key trends in email marketing and current response rates from sources such as MarketingSherpa, the Direct Marketing Association (DMA) and Caslon & Co. which I’ll recap for you.

According to MarketingSherpa’s “2009 Email Marketing Benchmark Guide“, which reported the results of a survey to over 1,700  marketers, marketing budgets are expected to be reduced by 20-25% this year.  Keep in mind that the study was conducted in August 2008 before the economic crisis really kicked in. Therefore, these numbers are likely very conservative. Here are some key findings:

  • Email reigns as the number 1 marketing tactic – due to its low cost and ability to be targeted to both prospects and customers. Email receives on average 16% of the online marketing budget in medium-sized companies and 27% in small companies.
  • The top techniques for gaining B2B opt-ins are eNewsletter subscriptions, sales alerts and opt-ins at trade shows. With trade show attendance down (for vendors and prospects),  29% of B2B marketers plan on increasing spend on rented (3rd-party) email lists for lead generation. In exchange for opting-in, subscribers want marketers to not share their email address and to receive special offers/pricing.
  • Challenges to successful B2B email programs include deliverability issues, competition at the inbox, and the ability of marketers to consistently provide relevant content. Email needs to be designed with the anticipation that many readers will view it with images off and only through their email client preview pane or PDA.
  • The two primary reasons why people unsubscribe are a lack of relevant content and receiving emails too often.
  • Opportunities exist for international email programs (on the radar for 33% of large companies) and for optimization of emails for mobile rendering (73% of marketers are not currently doing this).

Average Response Rates

  • Click-through rates (CTRs) for eNewsletters are staying high, with 26% of survey respondents reporting CTRs between 5.1%-10%; another 24% report CTRs between 2.1%-5%.
  • CTRs for sales-related email blasts are similar, with 26% of survey respondents reporting CTRs between 5.1%-10%; and 26% reporting CTRs between 2.1%-5%.
  • According to Caslon & Co., personalizing email and direct mail can improve response rates by 50-100%. The average response rate for lead generation campaigns is 3.2% according to the DMA. With personalization, Caslon reports a jump to 5%.
  • Caslon also reports that personalizing registration landing pages can improve response rates by 100%  to 130%.

For best success with your email marketing programs, focus on providing relevant, personalized content to your prospects and customers at a reasonable frequency.  Be sure to design the email for maximum deliverability so that content and offers are easily viewable in preview panes and on mobile devices. And as always, integrate your email programs with other marketing mix elements (web, videos, social media, blogs, sales development calls) to increase the chance that your message will be heard. Visit the marketing campaign development blog for tips on optimizing your marcom mix.

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