Twittering Television

Last night on Twitter Mack Collier tweeted (rather retweeted @kathyoreilly)

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It reminded me something that I had thought about a few times – TV is more fun with friends,  and therefore TV is more fun with Twitter! During the U.S election I watched the news, and twittered; after the bruhaha in Parliament Stephane Dion and Stephen Harper made speeches on Canadian television and I listened to the speeches while joining the conversation on Twitter. Beyond politics, I have twittered about Lost, Grey’s Anatomy and the Oscars. Last night I tweeted about my dislike of the Simpson’s (simply tired of it….):

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I received a number of replies – only one admonishing my remark, the remainder agreeing and one suggesting that the Family Guy is far superior. But, I digress…

We already know that many people are using their computers while watching television – multi-tasking at its best. We are more engaged checking our email, chatting, surfing social networks, playing games and tweeting than we are with the television program.  Of course what we are doing on the Internet doesn’t usually have to do with what we are watching on TV. Except in the case of the social networks as we often IM, tweet and change our status reflecting what is going on with the television program at hand.

Some of my recent tweets for example were regarding a program Inside the McDonald’s Empire.

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So, what better way then for the networks to engage with its audience again then through social networks like Twitter that are “real time”.

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According to Mack Collier who immediately tweeted back to me in reply to my comment there are some Interactive uses in the US through Dish.picture-3

Here in Canada we can get “more info” on some Sat channels such as CBC and The Weather Network. The Weather Network for example allows you to choose your region. Occassionnally I have seen news casters refer to a Facebook group, and increasingly I have seen and heard Twitter mentioned (The View, Canada AM, The Hour, The Daily Show).

But while TV isn’t always a “social”, we do often end up in social situations talking about TV. So, why not bring those two things together? As, you saw from the first “tweet” – on Sunday night the 5 of the top 10 trending topics were TV programs, so what is the opportunity for networks? How can they get some excitement back into TV? Is there a possibility for new revenue streams?

What if our favourite shows advertised a Twitter hashtag in the corner for people to follow along? What kind of conversations would take place? Could there be trivia? Maybe polls? Analysis by crowd? A real-time forum to discuss the intricacies of our favourite dramas! Fact checking could be shared with others watching the same debate/interview/speech; programs could request real-time questions and requests from their audience; or perhaps during the Oscars they could share tidbits from live tweets on the best/worst dressed. There could be special access to clues or theories (for Lost!), or  a “backstage pass” as producers tweet behind the scenes (imagine the green room at Letterman….or MTV awards).  A live event such as concert, sporting event would become social even if you can’t make it to the event! Of course there could be shared links to pictures, video, or interviews with the stars or experts.

What else can you think of? Would you participate?

As always  – connect on Twitter and Google Friend Connet (right hand side). And, if you enjoyed this content – subscribe!

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#GNO with @jessicaknows: A Summary of Twitter’s Girl’s Night Out

Jessicaknows

Jessicaknows

I missed some of the #GNO (Girls Night Out) discussion on Twitter last night so I went into Twitter Search and read the discussion. As always, it was a bit of a dizzying conversation last night – trying to keep up with the multitude of posts. So, it was difficult getting all the tips from @jessicaknows during the discussion.

I tried to pull as much as I could into this compilation. I hope this helps others as well.

Attracting PR Peeps for your Blog

A lot of participants were interested in reviewing more products and wondered how to go about doing this more often.

@jessicaknows said that she doesn’t think that there is a magic number with regards to traffic on your site in attracting PR. She noticed a lot of attention once she had about 20,000 monthly visitors to her blog. However, she suggests if you write about the products you are passionate about the PR folks will follow.

My two cents: She is absolutely correct, while the PR people will look for an engaged community the numbers may not matter as much if you are passionate and are considered an “influencer”. In this case, your review would simply be the tip of the iceberg. An influencer will tend to spread “word of mouth” throughout a variety of networks online and offline -giving a lot of added value to the campaign – beyond the blog post.  I hope to write more posts on books in 2009 since that is my passion. I don’t have 20,000 monthly visitors – but I have already received two books for review in the past. (Dan Ariely – Predictibly Irrational and Don Tapscott – Grown Up Digital)

Use Social Media to Build Your Own Community

@jessicaknows suggests that you pick 3 social media tools & be consistent use them everyday. She uses three social networks: Twitter (obviously), Facebook and LinkedIn. She also uses StumbleUpon for bookmarking regularly. She uses LinkedIn to connect with lots of PR folks, and mom owned business she can partner and work with in the future. On Facebook she prefers to “friend” people she knows in real-life and friends she has met on other social networks (Twitter for example). For users concerned with privacy and sharing with virtual friends she had a great idea to have a user profile for personal use and a Fan Page for your business/blog/website. While the Fan Page will show you as an author, “fans” will have to request to be a friend in order to see your Facebook profile.

My two cents: I post all blog posts to Twitter and Facebook. I try to avoid using the robot when I have the time by personally summarizing the newest post in my status/tweet.  Twitter is also a great place to promote DIY or How To Posts to people who are looking for specific help. I use Tweetburner to track click-through, which can give me an idea of how successful the tweet/status was. Note – don’t just do self-promotion, make sure you tweet other content outside of your own that you think your followers will find value in.

I have just started using StumbleUpon but I have definitely seen some traffic to my site through my profile. StumbleUpon allows you to find “friends” that have similar interests to you which is a great way to find new and interesting websites. Stumble others and perhaps they will Stumble you. All about Karma!

Couple other thoughts on Social Media:
- Use Video to promote your site by placing your URL in videos posted to YouTube
- Participate in Forums and Discussion groups in your topic area
- There are niche Social Networks that you can be involved in TwitterMoms, ClassyCloset and more…Create a profile and participate in the community
- Comment, comment, comment on other blogs. This is an easy way to promote your blog on other similar sites, and show some love to other bloggers.
- Try to link to other bloggers in your blog posts when possible. Give credit where credit is due, and share great information with your community.

Search Engine Optimization (SEO)

There was a great discussion around SEO last night during the #GNO.  There were folks on all ends of the spectrum – from questions such as “What is SEO?” to helpful tips from experts. @jessicaknows suggests that this is an important part of driving traffic to your website. For Wordpress bloggers she recommends the SEO Plug-in, and she has signed up for SEOBook training to get up to speed on SEO.

My two cents: Having attended SES Toronto last year, I am a believer in SEO for building traffic to your site. I use All-in-One SEO Plug-in for my WordPress blog. I use H1, H2, H3 headers where possible in my blog posts, and try to include Keywords without sounding “canned”.  SEO is great, but you also must use Analytics to compliment your SEO work.  If you aren’t following your stats you won’t be able to measure your success, see what is working and what isn’t, and see where you might have holes. Your Analytics program can also tell you before you start SEO efforts what Keywords are driving traffic to your site, and later on you should follow data for trends in keywords and content that you may not have noticed otherwise.

My SEO for Marketers post is a good SEO 101 for new comers, and watch next week for my Google Analytics Series for Bloggers. Also, take a peak at my “learnings” from my analytics a little while ago

Blogger Relations and Onsite Details

A lot of blogger etiquette and on-site promotional ideas were brought up during the discussion, here are some of the points:

  • It is all about helping others: @jessicaknows says “I establish relationships by learning about other ppl’s goals & what they’re all about & then introduce to each other”. This includes helping to promote blogs she believe in the most through her sites. I love this quote from her “it’s so easy…the key word is SOCIAL…use the “have a friend, be a friend” mantra in business and you can’t go wrong”
  • Write often, and be consistent. She tries to write daily if she can. Obviously that isn’t feasible for everyone – but I know if I blog 2-3 times a week my traffic remains higher than if I blog 1 time a week. Perhaps that is just a no-brainer.
  • Encourage conversation and open up channels for two way conversation.
  • Show personality in your posts
  • Offer Blog giveaways (check out @jessicaknows 15 days of Marketing Post on Giveaways)
  • Attend offline events (Tweetups, Conferences)

For those of you who were at Girl’s Night Out – did I miss anything? Any other hints and tips to encourage traffic?

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Chia Pets Are Not Sold Here

I am probably doing myself a disservice…but what the *bleep* is with Chia Pets.

A few months ago I wrote a post called Ch-Ch-Chia in hopes of winning a ticket to the Canadian Marketing Association’s Mass to Grass Conference (note: I got tickets). The post was a Word of Mouth campaign for Chia Pets.

Because of that post I get oodles of traffic from people looking for Chia Pets. This is just from the past 30 days.
Keywords

I did a quick Google Search to see why so many visitors came to my site due to this rather curious key word and this is where I show up in the Search Results:

Make Your Own Giant Chia Pets: 9
Giant Chia Pets: 2
Chia Pets: not on the first 5 pages
Chia Pet Retailer: 3

All these visitors bounce right off my site of course, since obviously my site is not what they are looking for! So perhaps, I can make this post more popular than the original…and it will be obvious from the title that Chia Pets Are NOT Sold Here.

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I Want to Work Here! : How Employers Will Lose Out in a Web 2.0 World if they Treat Employees As Easily Replaceable

Most companies act as though their employees are easily replaceable. Certainly, there are plenty of potential replacements out there, but what companies don’t realize (or ignore) is that there is a cost to the loss of every employee.

Costs such as:

- Recruitment costs (advertising, recruiter/hiring company, screening)
- Termination costs (administration)
- Training

Beyond these direct costs there are the internal resources required to recruit a new employee and the costs involved in covering the position while it is vacant (overtime or temp work). A company needs to consider the value of the time an HR and hiring manager need to spend screening and interviewing potential employees, as part of the cost of losing an employee. As well, it will be likely necessary to fill the shoes of the lost employee while the position is vacant – and this also carries a cost to the company.

meeting.jpgFinally, and probably the least considered factor to cost is the decrease in productivity. A new employee takes time and training to get up to speed – to be able to be as productive and knowledgeable as the person they are replacing. According to a variety of sources it can take anywhere from 3 months to 12 months (depending on position and learning curve) for a new employee to become fully competent in their new role.

So, what does it cost to replace an employee? While it depends on the position, level, industry, and required skills – many studies have shown turnover has a great cost to business. For an $8/hour employee estimates range from $3500-$9000. Other sources provide these estimates:

    - It costs a company 30-50% of the annual salary of entry-level employees,- 150% of middle level employees,

    - Up to 400% for specialized, high level employees.

If it costs so much to replace employees – why do so many companies treat employees as though they were easily replaced?

    - Many companies have never likely calculated what it actually costs them- It is left solely in HR’s hands

    - They believe turnover is just par for the course of running a business

    - They think the solution to end the turnover would cost more than the turnover itself

I have worked at many companies that have ignored high turnover due to the belief that there are a hundred people waiting in the wings to take the positions left by the exiting staff, and it seems too often it was the “little things” the company could have done to retain that top staff member.

Sure, money talks – but sometimes a great working environment laughs louder! This is what crossed my mind when I read these benefits for working at Hershey Canada (my notes italic):

boardroom.jpgBenefits and Perks of Working at Hershey Canada:

    – Of course. exposure to some of the finest chocolate and non-chocolate confectionery products. drool, I hope they have a gym too- Health and Wellness Reimbursement program as well as other great employee benefits. check it! must be money towards a gym membership!

    - Corporate social responsibility programs – because we should leave the world a little better than we found it ! Companies need to realize we spend 40 hrs a week (if not more!) at work – and we need to feel we are doing something for the greater good – not just selling consumer goods to the masses (although that can be fun too!) Gives me the warm fuzzies!

    - Fantastic reward and recognition programs. A pat on the back often is the best glue to keep an employee happy, of course recognition through rewards and money help too!

    - Flextime with required core working hours of 9:30 am to 3:00pm – subject to department approval Very nice

    - Telecommuting – subject to department approval. Even better if you can work from home on those nasty winter days

    - Summer hours from May to September – subject to corporate approval. Bonus!

    - Working in a LEED certified and open concept environment. Sounds like a warm fuzzy environment.

Of course a job description is a selling tool for the company, perhaps it isn’t as fantastic as it is outlined. But on paper it certainly looks as if they are making an effort to do the “little things” that make work – less like “work”. There are of course “little things”, such as working environment, management style, and workplace culture that don’t make it to the job description. In the past, these are the things that the new employee finds out about once they take the job. In the near future however, companies beware, potential employees will be going online to find out the truth behind those “little things” that mean an awful lot!

Thanks to the onslaught of Social Media sites exist now, although none appear to have reached a high level of engagement to rate and share your experience at the companies you have worked for. It is only a matter of time before these sites become a regular part of the research process we take on when we go job hunting. We review books, television programs, movies, restaurants and consumer products online – why not the workplace! In the future before anyone takes a new position they will research it like they do purchasing a LCD screen – by reading and research online! Companies that treat their employees as replaceable will suffer when they find the hundreds of potential employees waiting in the wings are no longer there.

Sites to check out and rate your company!

Jiibe
JobVent
Criticat

Photos courtesy of Stock xchange.

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Will Elections Ever be the Same?

Yes, I know I live in Canada, and yet numerous times in the past few weeks I have posted about the US election. But, it is far more interesting than our own recent election, which cost more than it was worth!. So, here is another post…

Will elections, or for that matter politics, ever be the same after this US election? This election has set the bar for how elections will play out online. Finally, (say those of us who are digital evangelists) it seems politicians have realized the power of the ‘net to spread the message, build community and target the campaign. Certainly not all politicians “get it” – but both the Democrats and Republicans have joined the digital space to some extent.

Obama / Biden

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The Obama and Biden camp have by far outstripped the McCain/Palin group in using the internet to attract and engage voters. Obama’s campaign more than any other in history has been funded and powered through online organization.

Twitter

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Barack Obama (or his team!) has been on Twitter since April 2007. His updates have ranged from where he is speaking to thoughts on the Iraq war. He has over 100,000 followers, and he is following them back.

Search Campaign

According to ClickZ in a post in September post the Obama/Biden campaign spent $5.5 million on Online Advertising between January and August 2008. The majority of that spend has been with Google. Of course the Democrats have spent a lot more on Television advertising than they have online!


BarackObama.com

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BarackObama.com went up in February 2007, just before Barack Obama announced his intention to run for President. This site will likely be a template for future elections in the US and abroad. It goes well beyond Web 1.0 (brochure-web) to offer voters the chance to engage with the Democratic Party and other members of the public who share their enthusiasm for Barack Obama.

    - There is the usual information on where to vote, how to check your personal voter information, and resources for volunteers- The site has an enormous amount of detail on the specific issues and the policies Obama and Biden are presenting in their campaign. This section is easy to navigate, with a drop down menu of the target areas (Foreign Policy, Taxes, Environment) and then within each section there are key points above the fold, and more specialized sections below (Foreign Policy has a section “On Israel”, “Iran” and of course the War in Iraq ). Where applicable they have a side by side comparison called “Obama vs McCain”.- There is a menu titled “People” which drops down to groups such as “Seniors for Obama” or “Jewish Americans for Obama”. Each section outlines key issues of concern to that group. In true Web 2.0 style you can “join” or “invite a friend”!- There are also press releases, copies of news articles, photos, and videos- And, what online campaign headquarters would be complete without a place to donate?

If all that is too Web 1.0 for you – not to worry there is a social network, widgets to download and a blog!

Social Network:

My.BarackObama.com is a Social Network for Obama supporters, started in 2007 by the Obama camp. Community members have set up with thousands of groups, planned local events, and written many blog posts about the election. Users have the ability to search and host local events as well as locate and communicate with like-minded individuals. As with any social network you can find friends (or invite them!), and add them to your profile.

One thing that has been very interesting this election is how Obama / Biden have canvassed for donations for the campaign, and allowed the community at large to self-organize. The Internet has been an integral part of the fundraising process and support network. Indeed, beyond posting blogs and creating a profile members can plan local events, volunteer to make calls and canvas their neighborhood. They can also set up their very own Fundraising page with a few clicks they can create a page, set a goal, and then canvas their friends for contributions.

Blog:

- BarackObama.com has an “official” blog as well written by various Obama staff members. The first post was in February 2007 when the site went live, and now there are over 500 pages of content! The posts are open for comments, and easy to share on other social networks (Digg, Facebook, Stumble Upon etc).

Downloads:

Of course there are the usual downloads -logos, Screen Savers, Desktops, photos, posters and documents. But keeping with the Web 2.0 theme, they have Widgets (latest news, latest videos etc) to download for your blog, Site Badges, and Icons for IM!

Obama Everywhere

The Obama campaign didn’t wait for people to visit their site, they also went where the people were. They are active on a variety of the hottest Social Networks, including:

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McCain/Palin

The Republicans on the other hand are a bit less involved online than the Democratic camp. As McCain told the New York Times earlier this month, “he had not mastered how to use the Internet and relied on his wife and aides” and “I am learning to get online myself, and I will have that down fairly soon, getting on myself. I don’t expect to be a great communicator, I don’t expect to set up my own blog, but I am becoming computer literate to the point where I can get the information that I need.”

JohnMcCain.com

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Despite saying this in July, the McCain/Palin website seems to have launched a blog, albeit a bit late in the campaign. The first entry I found was October 20th. As well, three months ago they began a Social Network titled McCainSpace, but there are very few groups created by members and certainly less interaction and engagement from members. It may be due to the network being difficult to find. It is not advertised on the main page at all, you have to go to a menu to find a linked titled “McCainSpace”. On the social network members can upload photos, videos and write blog posts as well.

Obviously if I were American, I would vote for Obama (in case you didn’t catch by bias from my previous political posts!) but I did spend some time on the McCain site to get a feel for how it was using Social Media. For one, they are a little late in the game, playing catch up to the Obama web site, but better late than never. That said, I find McCain’s attitude towards new media a bit disconcerting. I realize he is 72, and many 72 year olds aren’t always up on new tech**, but then not all 72 year olds are not vying for the Presidency! His ignorance regarding the Internet, therefore says more about his lack of “intellectual curiosity” than it does about his technical abilities. While he obviously recognizes his lack knowledge an is now trying to learn, it amazes me that since the Internet has changed so much over the last 10-15 years (for example: communication, business, education, news, and even ELECTIONS!) that John McCain hasn’t seen the need to pay attention try and figure this Internet thing before July 2008! Perhaps had the Republican party and John McCain paid more attention to what was going on around them, they would have at least hired a team able to build an Internet campaign. It appears, however, the little that they have done has been less than adequate (according to many news sources), including poorly done newsletters, poorly executed blog posts and absent mobile campaign.

** Note that a PEW Internet study that more than 1/3 of Americans 65 and older are using the Internet!

Related Posts:
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Sarah Palin – Genius Flow Chart
Hey, Canada Where are our YouTube videos of National Leaders

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Obama’s Loss Traced to [ insert name here] – Personalized Video at its Best

This is great! This is a nice way to remind your friends to vote.

Personalized video at its best. Certainly more meaningful, and more likely to meet its objectives then “Elf Yourself“!

Video here

Related Posts:
Will Elections Ever be the Same?
I Can’t Help Myself: Sarah Palin Pranked By Canadians

Sarah Palin – Genius Flow Chart
Hey, Canada Where are our YouTube videos of National Leaders

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We are Women: Here us Roar…and talk, and share…

Have you heard this before?

Women are the key influencers. They influence the purchase decisions and consumption behaviour of their families and work places..

Women control 80% of consumer spending

72% of married women who work full time are still the primary shoppers

More than half the women in relationships have sole responsibility for the saving decisions of the household

Women are the fastest growing segment of internet users

72% of women go online – their numbers have now surpassed men in North America and it’s considered their third favourite leisure activity after sleep and family (Comscore)

76% of moms spend more than 1 hour a day on the Internet. 36% spend more than 3 hours a day!(Microsoft)

Women have stronger, deeper, social networks and they aren’t afraid to use them!

63% of Facebook and MySpace users are women (Comscore) and they have a higher average number of friends than men on these networks.

Women pass an average on 83 word of mouth conversations about brands/products each week and are more likely to spurred to purchase products due to these conversations – 55% vs 47% (Keller Fay)

If you work in marketing, you likely have. I used these, and other amazing facts to push through some of our recent marketing plans (as though a small appliance company needs more reason to target women!) And, they were again brought up in a recent conversation. I was struck how true they are in my life. And, in the lives of many of the women I know.

In my home I am the primary shopper for products for the kids, for groceries and everyday items. While we tend to make joint decisions on larger items cars, home decor, electronics, and vacations I tend to do the research and make the initial suggestions while he helps make a final purchase. I take a back seat when it comes to computer parts and home repair and maintenance.

My husband lets me take care of our finances. I track our spending, our savings, create the budgets and chat with our financial advisor. While I take care our financials – my husband always knows what is going on, and takes part in discussions on mortgages and retirement.

Obviously I spend a lot of time online. My husband prefers the television and has yet to set up a Facebook profile (gasp!)

Word of mouth…well I would definitely say I share my opinion – a lot!

Questions:

Why is this? What is it about women that makes us want to be in charge of so much? Or is it done out of necessity? Why do we share more than men?

Does your household follow these trends? Who makes the purchase decisions in your home? Was it a conscious decision or did it just happen that way?

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digital marketing – the new frontier in the job market…

While I am on maternity leave, I am still in constant contact with my workplace. Answering questions, helping forge ahead on a number of projects that I feel are important enough to keep one foot in the door. Some days though I wonder why I bother. I wonder sometimes if my evangelism for digital media and word of mouth just rests on deaf ears. One step forward, two steps back. Approval. Then budget is cut. Approval. Then they freeze hiring for required resources. Approval. Then disapproval. But is any other company different? Is frustration just destined to be part of my working life? Perhaps this is simply what life is like when you are passionate for change, and a little impatient!

So while I am not currently looking for employment, some days I think back on Seth Godin’s book “The Dip” and wonder if I am stuck in a “cul-de-sac” where no amount of hard work will lead to success. On other days, however, I think I am just in a “Dip” and if I push forward I will make it to the other side, successful and triumphent in the completion of my career goals. When I see interesting job postings, or a recruiter calls I wonder if the grass is greener…

I saw this posting on a blog I read:

Sheridan College prides itself on its leadership in the field of digital media studies.

We are now looking for an accomplished and creative Online Marketing Manager with exceptional project management and communication skills to manage our own online presence.

Working with internal clients, a team of web developers and external resources, you will help Sheridan maximize its online impact by planning, implementing and measuring ongoing initiatives in support of our strategic objectives.

Responsibilities:

  • Managing Sheridan’s website, monitoring and enhancing its performance;
  • Managing extensive online advertising campaigns, social media activities and e-mail marketing programs;
  • Collaborating with colleagues, internal clients to develop effective online strategies;
  • Tracking new user trends and IT developments and leveraging them for our online impact.

Requirements:

  • 3 year diploma/degree in E/Marketing, Advertising, Business, Web Design, E-commerce, or related field;
  • Min. 5 years experience in E/Marketing, Advertising, Business, or related professions;
  • Understanding of effective website design and online marketing, including SEM and SEO principles and social media;
  • Experience with web analytics tools/metrics management.

Wow! A job posting that is looking for SEO and SEM experience, someone to work on social media and e-mail marketing, someone to forge ahead in new media. They “get” the new space, and want some one to focus entirely on Digital Marketing, rather than divide their time between online and offline marketing. The last time I searched the job postings I didn’t see positions like this (it has been awhile!) and it is exciting to think that Digital Marketing is slowly becoming its own discipline (even in smaller companies and organizations like Sheridan College ). A quick search on Workopolis found 4 Digital Marketing Manager Positions, 4 mentions of “Social Media” in a job description, and 7 “e-marketing” positions – all in the last 30 days! So, I suppose based on this I can hope that someday I will be able to focus entirely on this area tactically, and strategically work with other marketing disciplines; rather than being the jack-of-all-trades, evangelist for digital marketing, and occassionally frustrated worker-bee, that I currently seem to be! I can hope that someday this will become so important in my own company that “approval” remains approved. That resources find their way to the department. And, instead of talking to myself…banging my head against the wall on occasion…I will find that people are saying the same thing to me!

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Spreading Word of Mouth: My experience with Canon

Two weeks ago I wrote about my ongoing trouble with my new Canon Camera, and the less-than ideal customer service I was receiving from Canon’s service centre.  I owe Canon at least one to one-and-a-half stars for finally replacing my camera with a “refurbished” product. But, don’t get me started on why my brand new camera (purchased in June) got replaced by a refurb model!

Word of Mouth

If Canon runs all customer service transactions like this – they will certainly lose status as a top camera manufacturer – due to the negative word of mouth. One customer can spread the word through their social network and beyond.wom
Since word of mouth recommendations is the number one influencer for consumer purchase decision, it is important for businesses to pay attention to what their customers are saying. And, just as importantly make strategic marketing decisions and position the brand in a way that will garner positive word of mouth.  Not always an easy task, but a company that understands and listens to their customers is ahead of the game.

The Bottom Line

How important is word of mouth to the bottom line? According to a study done by the Listening Company both positive and negative word of mouth is a predictor of sales growth.  According to the study:

  • Companies enjoying higher levels of positive word of mouth, such as HSBC, Asda, Honda and O2, grew faster than their competitors in the period 2003-04.
  • Companies suffering from low levels of word of mouth advocacy and high levels of negative word of mouth, such as Lloyds-TSB, Sainsbury’s, Fiat and T-Mobile, grew slower than their competitors.
  • A 7 per cent increase in word of mouth advocacy unlocks 1 per cent additional company growth.
  • A 2 per cent reduction in negative word of mouth boosts sales growth by 1 per cent.Spreading Negative Word of Mouth

    Most of us have had bad experiences with products or services, and often we discuss it with friends and families. It turns out that we do this less often than we think, according to Keller Fay Group positive word of mouth outpaces negative six to one. However, as we saw above, the negative word of mouth can be seriously damaging to the bottom line! And, it can spread just as easily.

    In my Canon example,  I will spread the word of my disappointing experience in the following way:

    1) Two posts about my disappointment with a company/product I previously adored
    2) These two posts will be posted on my Facebook profile (260 Friends), will be Tweeted on Twitter (247 Followers), that Tweet will be repeated on Facebook as my Status and will appear on my FriendFeed (15 subscribers – haven’t spent a lot of time on this network yet!).
    3) I will also post a note on an active forum of local Moms in the Shopping Section to share my experience with this company (3000 active members).
    4) Finally, and certainly not the least important piece of the word of mouth puzzle – I will tell my friends and acquaintances directly (75% of word of mouth is face-to-face).

    I tell the story, not in spite, but in hopes that it helps other customers make decisions or the company make relevant changes. The potential spread of this story, just from me – one person…is extensive, and doesn’t take into consideration those in my network who might tell someone else.  Certainly not every customer with a bad (or good) experience will tell friends and acquaintances to the same extent, but even if 1% of customers do so – it can be destructive to a brand. A often quoted study by Keller Fay Group, shows that in our ordinary conversations we mention specific brands 56 times in one week.

    How Canon could get Five Stars?

    Canon, and other businesses need to consider the cost of acquiring a new customer, against the cost of maintaining an existing customer. Obviously acquiring a new customer is more costly than maintaining a relationship – the cost of customer service to the existing customers.

    For example let’s say that the cost of acquiring me as a customer for Canon is $X (expenses required to gain my sale – usually including marketing and sales costs such as advertising, PR, POS material and sales expenses). I purchased three Canon Cameras over 8 years, so my Lifetime Value is $Y.  The longer I remain a customer the higher my lifetime value will be as I likely will purchase more cameras over time.  Of course, the acquisition cost for the company remains the same…so the loyal customers are obviously the most valuable. If this is true, why do so few companies spend so little KEEPING customers? Not only does it cost more to find a new customer, but a loyal existing customer who advocates for the brand has the potential to convince others to become a customer…at little cost to the company.

    So, Canon could have:

    - When I went back the second time to have the camera fixed, they could have offered a loaner (perhaps a model a step-up so that next time I purchase I might consider trading-up)
    - When I called before going in for the second time they could have offered to send a courier to pick-up instead of having me to drive to the office again.
    - When they finally sent me a replacement camera they could have sent a letter in the box apologizing for not finding the issue the first time.
    - They could have sent a camera case, or a set of batteries, or some other little branded gift along with my camera as an apology for the inconvenience.
    - They of course should also be searching the web, reading posts about their products, and responding effectively!

    Canon could have simply had remarkable customer service, and I would have continued to purchase Canon cameras without considering the competition. I have not given-up completely on Canon, but next purchase I will do more research than I did this time around!

    Word of Mouth Marketing

    My story may not have any effect on Canon, but complaints from customers add up and can have an effect on sales. Just the same, brand advocacy and positive word of mouth can have the opposite effect on sales. Because of this, many companies are trying to harness word of mouth through word of mouth marketing and buzz or viral marketing.  I have written on this subject a few times in the past, but there are a number of wonderful blogs that focus on word of mouth:

    Church of the Customer
    Andy Sernovitz’s Damn! I Wish I Thought of That
    Buzz Canuck (who also has a great list of WOM Bloggers)

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    You Tube Star

    First time I have appeared on a YouTube Video. I have posted videos before but usually they are my son doing something cute. This video was posted by One Degree as a follow-up to the CMA Word of Mouth Conference – From Mass to Grass.

    I personally dislike seeing and hearing myself on camera, but it was neat to see that I was YouTube. 37 views and counting!

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