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Michael Senger's Blog


Facebook’s Wild Ride

August 3rd, 2010

Author: Michael Senger CEO, StoneMass

TechCrunch reported data from comScore that Web traffic to Facebook is now nearing that of Yahoo! The world’s largest social network has already surpassed Yahoo in monthly page views, and will soon overtake the search engine’s mark of more than 594 million unique visitors. eMarketer analyst Debra Aho Williamson recently shed some light on Facebook’s future growth potential, revenue opportunities, and how marketers can take advantage.

Key Insights:

  1. Facebook’s US user base grew from 42 million to 103 million. 144.9% growth rate!
  2. The 35+ demographic now represents more than 30% of the entire user base.
  3. The 55+ audience grew a whopping 922.7% in 2009.
  4. Atlanta had the highest growth rate in 2009 at 267.6%

I want to delve into the comparison between search engines and Facebook. Search engines are tactic based; you do a search query, find your answer and move on. Facebook, like entertainment, are interactive, you engage with your information, react and respond to it. You comment on everything, you like it or share it - your network see this and they interact also. Social networking is a new world and the game has changed for companies that sell products and services.

And this is only the beginning.

“Tryvertising” – the latest Social Media Powerhouse

February 18th, 2010

Tryvertising gives shoppers (now called Trysumers) the ability to try your product or service before they buy–giving you their evaluations and building brand loyalty at the same time. Trysumers recommend your products to friends through their social networks and increase your sales virally.

Sample U
, a privately held company, was founded on the Campus of Alliant International University in San Diego, California as an experiment laboratory in which consumers (called Trysumers) become part of the decision making process of product development.  Sample U has both an online survey environment and on-site labs, where you can gain quick feedback about your products, messaging, pricing, offers, advertising and marketing concepts from Trysumers of your selected demographic makeup.   Sample U also uses cutting edge crowdsourcing techniques through its dedicated online social networks to enable Trysumers to view your product images, information, branding concepts, etc. online and immediately answer questions that give you the data you need to make the right decisions.

Examples of how your business can use Tryvertising:

  • Product Development: Need to validate a new product concept? Wondering if there is demand? Ask Trysumers about your product’s features, usability and perceived value before you begin development.
  • Market Development: Evaluate the marketability of your product.   Trysumers help guide your decisions regarding pricing, demographics and geographic location.
  • Advertising Campaigns: Test messaging, packaging and advertising concepts to determine which perform the best before you spend your media dollars.

This is all about “free” for the Trysumer.  The most responded to word in direct marketing. Millions of consumers are already taking advantage of obtaining free products. Expectations are increasing and we are seeing more signs of the growing trend. It has been around for years, but now companies are looking at advantages of offering free products. It is becoming an essential part of doing business.

Advanced Strategies for Social Media Marketing

December 9th, 2009

May 8th, 2009

Author: Michael Senger CEO, StoneMass

More and more companies are integrating their marketing plans into social media marketing.  As a result you are now competing for an ever increasingly crowded share of voice of your targeted audience.  And with your audience being bombarded with multiple communications, they are getting sophisticated on what they watch or do online.
What follows are critical strategies for businesses that may already have small online communities or are making plans to create an online presence.

1. Social Media needs to be integrated into every aspect of your Marketing Communications Plan

It is sometimes too easy to think of social media marketing as an afterthought.  In some cases, social media marketing should drive the campaign.  Volkswagen launched a nationwide campaign with one purpose - to have you join their fan page.  They realized that building an online community of VW fans would provide opportunities for fans to share their love and passion for the carmaker and for VW to have a fan base to continue the ongoing dialog.

2. Don’t fall into the “Build it and they will come” trap - utilize contests, discounts and incentives

Companies put an exuberant amount of work into the launching of a social media program.  The program launches and after a month they wonder why they only have 50 fans on Facebook and 40 follows on Twitter.  One way to excite your community is to offer contests or incentives.  Build your follower base with “Become a fan today and enter into our weekly drawing to win…”.  Once your social media program has started, continue with contests and incentives in order to engage with your brand and encourage returning.   Promotional exclusivity is also a great draw for new users - “by following us on Twitter, you will get exclusive promotions available just for you.”  Social Media is an ongoing dialog, maintain contact and keep the conversation and viral engagement going!

3. It is time to stop making excuses for not using Multimedia

Guess what is the #3 search engine in the world?  YouTube.  People first started using YouTube for entertainment but now use it for information.  Where else online can you can be shown visually how to make a Kitchener stitch, how to whistle with two fingers, or be shown how to change a flat tire.  As a marketer, you need to understand the behaviors of your target audience and determine where they are spending their time online.  You can create multimedia videos or advertise on YouTube or other video sharing websites.  In summary, your target audience is now interacting with video more and more and you need to be involved.

4. Of course play in the big sandbox (Facebook, Twitter), but don’t ignore Local Social Networks like Yelp, TripAdviser, or others

I spent a week in Hawaii and got addicted to TripAdviser.  Where else can you get detailed feedback and ratings on local restaurants, events and outings?  It helped me plan my excursions and restaurants. Yelp is the same format where people give reviews but they also have a business section.   You can be proactive to make sure your business has favorable reviews and to monitor negative comments.

5. Evaluate, modify, and test and then do it again and again and again

Why is there a certain “voodoo” associated with web metrics analysis? I would think most business owners and marketers when asked “do you need better analysis tools to measure your campaign effectiveness?”, would immediately raise their hands. We all want better measurement of our marketing $’s performance but are averse to understanding the data mechanics or even how to go about generating an insightful report.

When it comes to online marketing programs, everything is measurable and can be associated to an ROI - even business to business.   Establish key performance metrics with your objectives, test, modify and repeat.

Changes are afoot at Twitter

May 8th, 2009

Author: Michael Senger CEO, StoneMass

Twitter is technically speaking, a multi-platform blogging service. It was designed as a way to post short messages of 140 characters or less, to update your friends and network with your current “status”, i.e. “What am I doing right now?” or share insightful information, “Look at this great article.”  Over the past year it has gained significant traction as a business tool with everybody from entrepreneurs, small business, and to larger companies like Dell and Comcast. twitter-addicts
But has Twitter reached its peak in popularity and is this darling of social media waning? Naysayers have been predicting the demise of Twitter as early as 2007 but it is still around and generates a passionate following.

“The light that burns twice as bright burns half as long….and you have burned so very, very brightly, Roy.” - Blade Runner

Let’s look at a real life example of a twitter account that you could subscribe to: The National Geographic Society.  Here is a sampling of their ‘tweets’ over a six hour period.

@NatGeoSociety

1.  Pluto Has “Upside Down” Atmosphere http://tinyurl.com/b4xkal

2.  EXCLUSIVE PHOTOS: Rare Artifacts Return to Afghanistan http://tinyurl.com/arx4j63.

3. Whale giveaway 5! How many calories per day does the average blue whale need for survival? Be the first to answer and win a prize

4.  Our final giveaway is happening at 3P et. Be the first to answer and win Nat Geo prizes

5.  Near Costa Rica, scientists study a stronghold of the blue #whale. Read the Nat Geo Magazine article http://tinyurl.com/da4bqs

The assumption is that because I have signed up for their Twitter account, I am interested in all of these topics.   The “Pluto Has ‘Upside Down’ Atmosphere” article sounds interesting but is that enough to sustain my interest in their twitter feed.  And if I subscribe to a few other feeds, my cell text alerts will increase 10x fold.  This may be a lot of information to digest.

It is also rare that a communication medium maintains such popularity when it is controlled by a private entity.  Successful opensource mediums have open standards and work in a distributed fashion, for example: newgroups, email, webpages, etc.  Twitter’s growth as the defacto social communication medium may be limited.

However, its private ownership makes it very attractive to suitors; Facebook had expressed interest in purchasing them and the latest suitor is Google. They are less interested in the technology but desire to absorb Twitter’s bloated subscriber network.

As long as the media loves twitter, and oh they do, then it will continue to generate news.

Twitter’s business model will change for the sole reason that eventually the audience will move to a new medium. It is the same reason we have abandoned malls for online shopping sites.  Before that happens, Twitter will probably be acquired by another company.  Any time you have a convergence of newness, mass popularity and little understanding you are liable to get an overrated, and very simple, technology.  Twitter is not the first, and it will not be the last.

FYI: You can follow me on twitter at http://twitter.com/webmarketers

The new darling couple: Social Media Marketing & Personalization

April 24th, 2009

Author: Michael Senger CEO, StoneMass

Does Social Media marketing bring back personalization to digital media? The ability to deliver customized content across targeted multiple social media platforms should make marketers rethink their communication strategy. Or is Social Media just another latest fad for marketers to consider in their bag of tricks.digital_love_sec

I attended the Online Marketing Summit 2009 in San Diego. Social Media was of course the hot topic and invoked much discussion. There was one meeting debate over the effectiveness of Facebook versus Twitter to deliver personalized message. The argument for Twitter was if you manage an account and develop a good relationship with your followers, you have created a viral communication medium. Arguments for Facebook were the numerous marketing communication applications that gently exceed the 140 character limit that defines Twitter, period.

In summary, today’s economy mandates marketers derive greater ROI from investments, increase response rates and advance the customer experience. Successful marketer’s match the target audience with the right message and offer. Sounds pretty straight forward but many companies fail at this. Audience’s needs are constantly changing and timing the right marketing message and offer make this a complex endeavor. Data from CRM or customer support systems lie unused as marketers lack the understanding or motivation to analyze. Worse too, many companies rehash marketing programs every year without documenting the campaigns pros, cons and leanings. Unfortunately, marketers tend to jump to personalization to justify budgets and to over promise leads, conversions or ROI.

Is Personalization back in vogue with Social Media Marketing?

April 7th, 2009

Author: Michael Senger CEO, StoneMass

One to one marketing epitomizes a marketer’s dream. Personalization sought to satisfy this need by offering the capability to market one message to the individual. Personalized URLS was the early technology leader but does Social Media marketing bring personalization back to digital media? Unfortunately, it does not.

About Personalized URLs (pURLs)
Personalized URLS (pURLs) was first hailed as the true technology platform for personalization. pURLs give a personal touch to your outbound communications. It works this way; I get an email offer and there is a URL link with my name in it, e.g. michaelsenger.cooloffer.com - by clicking on this link I am taking to a webpage where it reads “Hi Michael Senger, we have an offer just for you.” The concept of pURLS is that you will see increased conversion because the prospect believes you care about him and knows exactly what he needs. Variable Data Printing (VDP), like pURLS, personalize direct mail to improve response rates. Did this work to lift conversions as they were so hyped to be?

purl11My research into the pURLs industry identified two early adopters; MindFire & EasyPurl. Both companies have moved to a 100% reseller model; selling their services to partners who then resell to the end-user. In summary, these two companies dominate this space, followed by a plethora of online and printing boutique shops reselling pURLS and/or VDP (variable data printing) services. As a result of these two companies dominance, their services do not differentiate greatly and their fees are fiercely competitive.

Although pURLS did find avenues into some marketing circles, they never really became a part of the marketer’s arsenal to improve conversion with personalization messaging. I was surprised in my research to learn there has been little innovation into personalized URLS in the last five years. Personally, either working for companies or now running my online marketing agency rarely has the “pURLS” topic come into conversation. If fact, a colleague who works for one of the nation’s largest tax preparation companies, just finished a 2009 direct mail campaign utilizing personal URLs with no impact to conversion rates. In summary, pURLS did not work to lift conversions as they were hyped to be.

Next - Part 2: The new darling couple: Social Media Marketing & Personalization

Lies, damned lies, and web metrics - Part 3

April 7th, 2009

Author: Michael Senger CEO, StoneMass

Part 3: What do my Key Performance Indicator (KPI) measurements mean?

Congratulations! After reading Part 1 and 2, the challenging part of web metrics is done. There is still ongoing work required but the methodology of identifying clear goals and assigning applicable Key Performance Indicators (KPIs) is a sound business practice.

In addition, make good use of a continued improvement process. Realize that company objectives will change and therefore your web objectives and KPIs may need to be modified. Changing objectives and KPIs may seem a daunting task to manage but they are not. If you focus your web site around a small number of changes, your web metric program will become more manageable. In a previous position, I was managing Symantec’s enterprise online marketing worldwide. During the crazy days of the Dotcom boom, quarterly web objectives were set and then changed within the first month. With rampant growth in new markets, “changing the tires while driving” was our company’s modus operandi. But this should not be the case with you…hopefully.

Using actual numbers, let’s look at the example I used on my previous blog posting “Part 2 - Where do I begin to start analyzing web data?” Our company objective was to improve online customer retention for the 1st quarter of 2009. We will measure this objective by using the following KPI, with a target goal to increase by 10%:

metric_example2At first glance, we failed on meeting our objective of improving customer retention. However, you should be more interested in understanding what could contribute to a lower website customer satisfaction level - therefore further research into the data is required. We soon learned that a national marketing launch occurred in January. As a result, there was a huge spike in new visitor traffic to the website. Marketing and public relations were successful in driving new visitors to the site but was the cause for the drop in % returning customers.

During hard times, there is great pressure to justify every marketing dollar that is spent. A web analytics program that binds company objectives with measurable KPIs, is now expected by Senior Management.

Lies, damned lies, and web metrics - Part 2

April 7th, 2009

Author: Michael Senger CEO, StoneMass

Part 2 - Where do I begin to start analyzing web data?

Knowing that you have so much data available to you can be both enlightening and daunting. The question you need to ask is where I begin. Start with your company goals for the year. If you don’t have any, well that’s a blog topic for another day. From your company goals, you can create specific marketing objectives that transcend to your website. From these marketing objectives, you will identify and measure key performance indicators (KPIs). Your KPIs are key web activities or actions that you want to focus on.

It is unrealistic to state “I want to merely increase web traffic to your website”. It is more useful, for example, to define a goal of increasing web traffic by 10% to support a product launch for September.

Let’s consider the following company example:

Company Goal:

Acme Company sells consumer widgets and one of their 2009 business goals is to improve customer loyalty.

Web Marketing Objectives:
Benchmark, measure and improve online customer satisfaction KPIs for the 1st quarter of 2009.

Key Performance Indicators (KPIs)

Example:
Retention KPI = Ratio of “Returning visitors”/”All visitors”
What it measures: determines how you are doing at retaining visitors
Metric: increase by 10%
How: promote webinar and product announcements

Action:
First determine your KPI benchmark to identify a % goal increase. I usually lean towards measuring the same period before. Since we are measuring performance for the 1st qtr of 2009, I would recommend you compare metrics to December Qtr 2008. Use your judgment here; if your company has strong cyclical sales you may want to measure the same period from the year before.

Next: Part3 What do my KPI measurements mean?

Lies, damned lies, and web metrics

April 7th, 2009

Author: Michael Senger CEO, StoneMass

Why is there a certain ‘voodoo’ associated with web metrics and analysis? I would think most business owners and marketers when asked “do you need better analysis tools to measure your campaign effectiveness?” would immediately raise their hands. We all want better measurement of our $’s performance but are averse to understanding the data mechanics or even how to go about generating an insightful report.

farside1This ‘Far Side’ comic reminds me of a company I previously worked for. This was the typical response from fellow marketers when asked what kind of metric reporting is being done to measure campaigns. Simply, no one wanted to own the metrics data or be held responsible for reporting it.

The Wikipedia explanation of the phrase origin “Lies, damned lies, and statistics” states the following:

“…the use of statistics to bolster weak arguments, and the tendency of people to disparage statistics that do not support their positions.”

There lies our second issue; the numbers are accurate but the interpretation and usage by the individual can sometimes be suspect.

In this three part series, it is my intention to dispel this voodoo and to provide a methodology for evaluating and measuring the success of your online program .

Part 1: Keep it simple - Too much data is just that - too much data!

By 1969 in Vietnam, the kill ratio for American jets during dog fights was plummeting. At one time, 20 to 30 enemy planes were shot down for every one US jet. By the end of the decade the ratio was one to three. American jets and their technology were far superior to the Russian Mig Jets but a disturbing trend was happening.

When they interviewed the pilots that were highly successful in air to air combat, they found something in common. As fighter information technology advanced, so did the pilot’s dashboard and instruments. The successful pilots identified and focused on a few instruments; ignoring the rest. One successful pilot had even taped over redundant instruments. In the engagement of the air enemy, life or death decisions were based on key critical information.

Most web analytics software programs, Omniture, Google, etc. offer the user so MUCH information in their web marketing dashboard to send the user screaming down the hall in frustration. Keep it simple and too much data is just that - too much data.

Next : Part 2 - Where do I begin to start analyzing web data?