PR 101

I get an email from the friend the other day, asking about particular social media site. My friends will often ask me which sites I recommend or what I think of a particular site.

Well, as I confessed to my friend, I had never heard of this site. That got me thinking. It seems like new sites are popping faster than dandelions in my lawn in June. But is each of these sites necessary? If someone did a business study of every social media site out there could many of them make a case for their existence?

Obviously, I am active user of social media. I am a social media consultant. I blog, I tweet, I post on Facebook, I use Linkedin incessantly and I am moving more and more onto YouTube. I can make a case for all of those sites. A large part of their appeal is that they are the biggest and easiest to use (more about that second point later.)

I also am a member of Orkut and I just joined a Chinese site called Ushi. I joined Orkut because it has a large number of users in South America and India. Ushi is self-described as the Chinese Linkedin. I do not currently do business in any of those places. But there could time when I do, so I want to have a presence there.

The key to all these sites is simplicity and ease of use. I don’t have to do much to interact with them. Which is good, but I am very busy. The less time I have to spend getting the maximum benefit is what I look for.

I also belong to Plaxo and Xing, but I am not sure why. I really don’t get much out of them.

Frankly, I think I am connected to enough sites. I don’t need any more sites. Yet, I keep getting invited to join others – a couple everyday. The latest is Facebook’s BranchOut. I joined it because I was curious, but so far I see no value in it. It doesn’t do anything that Linkedin or a regular Facebook doesn’t already do.

That’s my complaint about many of the newer sites. They are just duplicates of what’s already being done. Yeah, they might a couple of their own bells and whistles, but not enough to make them significantly different.

I am all for competition if it improves things, but I don’t see any improvement coming out of any of these. They are just not unique. I think this is an area that pretty much been covered.

It kind reminds me of television. ABC has “Dancing With the Stars,” so Fox comes out with “So You Think You Can Dance.” How many cop and doctors shows are on network television. It is all about being a copycat. Eventually, the market gets saturated.

People keep talking about the new Facebook or the next Linkedin. But the sites that might beat those are going to be something entirely new. They are not going to be clones of what already exists.

The newer sites that have taken off, Groupon as an example, did something new.  I belong to Groupon because I reap the benefits.

As long as I am ranting here, I have another beef about the new sites. There are just to many hurdles to join most of them. You want me as a member – make it simple. I think Groupon took me about a minute to join. Not so most of these new sites.  Name, email address, and a password are all that is needed. I will decide if I want to post a profile or a picture. It takes too much time. Yet, they ask for a lot of information. It is not worth my time to supply it.

When the dandelions take over, I pull them out by the roots. When I get site requests, I just ignore. It’s the best of both worlds.

It is a question I often get from potential clients. They want to move their company into social media marketing. They know it’s a space their businesses have to occupy. But there’s that nagging question: “how do I measure return on investment if I use social media.”

Well, I give you a hint. It all has to with Word of Mouth or WOM. If content is king, then WOM is queen.

Since I prefer to work with small and medium-sized companies, the question usually comes from the owner, the chief executive officer, or the chief marketing officer. It is a legitimate question. After all, I am usually presenting plans that can run into the five figures in costs. (I am not a cheap date. But, I am a highly effective one.)

Many of these companies are going to be marketing for the first time in their existence. They have moved beyond the startup phase. To keep growing, they know it’s time to start reaching out to potential customers.

The men and women who started these companies are engineers, lawyers, carpenters, or bakers. So far ROI has been something measurable. They know if they buy X amount of lumber or flour, they will produce Y amount of product. They can usually calculate their ROI after adding in their other production costs.

Marketing is different. There is a product – more customers and hence more profit. But that’s not something stamped out in a factory. These entrepreneurs are now dealing with something more ethereal – a decision by a potential customer to buy their product. These company owners would like a guarantee that what they invest will provide returns. It is a bet that makes them nervous.

It is true there is a certain amount of gambling in every company. You never really know – even after you do your primary and secondary research – whether the product is going to sell. It is only after the doors are open and hopefully the customers come in that you know your efforts were successful.

That’s the first measure of marketing – the first ROI check off. Are customers finding your business and checking it out?

Keeping those customers coming through the door is where people such as myself enter the picture. It is our job to show customers where the door is and give them reasons to through.

A caveat: I always tell potential clients; marketing doesn’t sell the product. That’s up to the company’s employees. Now, if the job is done right, the potential customer will be strongly leaning toward buying your product or service. I will everything I can to make the customer contact’s job as easy as possible. I will plow the ground and plant the seed. You just have to make it grow.

How is that done? As I said in the beginning – word of mouth or WOM. At its simplest level, word of mouth is simply Jane telling John to buy a particular product or use a certain service because she had a positive experience. What social media has done is amplify Jane’s voice so she can hundreds of people about her positive experience.

WOM is the most powerful way to market a product. According to Forrester Research, there are currently an estimated 500 billion WOM annual web impressions. Several studies have found that WOM is the most trusted form of marketing.

Research has shown that for every $1 spent on creating brand advocates there is a $10 return in positive WOM and sales. The Harvard Business Review found a ratio of 1-to-12 ROI for positive WOM. That was twice the return for any other marketing method.

That’s why social media is so effective. It generates that positive WOM and sales through third party endorsements and conversations. It does that with blogs, Twitter feeds, Facebook pages, Linkedin discussion, videos and other social media applications.

So the ROI is there. And social media is the way to generate it.

I have been seeing a number of blogs and statements lately arguing that social media might be the next dot-com bubble. I cannot figure if the people who make this argument are trying to be provocative, really believe that social media is a bubble, or don’t understand it and wish it would go away. .

Social media is not going away. Quite the opposite, actually. Look at the data Marketing Sherpa collected on marketing tactics for 2011.

“As marketing strategies evolve from outbound to inbound tactics, there is also a shift in the ways in which money and resources are spent. We asked more than 1,100 marketers how they foresaw budgets changing in 2011 for the following marketing tactics,” Marketing Sherpa wrote. This is what they found:

Look at the chart carefully – 1,100 marketers see the budgets for websites, search (search engine optimization/pay per click), and social media increasing by more than 50 percent. That doesn’t sound to me like social media is going anywhere.

In order for any of these marketing methods to prove successful, a company must use the three together.  A company needs a top-flight webpage so potential customers like what they see when they land there. Search engine optimization is key so potential customers find that website. Social media is needed to create the inbound links to the website so search engines find it. A marketing campaign that doesn’t use all three is a like two-legged stool.

So, I am not sure why some people seem to think social media is going away. I do have some hypothesis though.

First, I think many people are comparing Facebook, Google, Twitter, Linked in, YouTube and other social media sites to companies that were created during the dot-com bubble of the 1990s. That rationale doesn’t apply to the current crop of digital companies. What killed most of the dot com companies is that they never made a profit. Plus, their stock prices were widely inflated. When the recession of 2001 hit and the investment spigot was turned off, those high fliers suddenly had the aerodynamic properties of a rock.

There were a lot of lessons learned in that period. Companies just don’t operate like that anymore.

As I said before, I think some people are just trying to be provocative. They want to be contrarians. Kind of like the people of Vermont, who will never do what the rest of the nation does. Those social media contrarians just want to start an argument. They see themselves as loners, as people who don’t follow the crowd. I image their forebears rode horses and used kerosene lamps by choice well into the 1930s.

Finally, I think there are just some people who hate the whole concept of social media. They have been using the old ways for decades, dammit, and those methods work just fine. They don’t want to take the time to learn something new. It is too confusing for them. Before you automatically assume these people are all old, I was able to qualify for an over 55 discount the other night. And I love social media.

I suppose it is possible one of the more popular social media sites will go away. I don’t think that will happen, but one never knows. Things do change. I grew up with one phone company, three television stations, a record player and a typewriter. The companies that produced those items either went away or changed out of necessity. Yes, I know some places are again selling turntables and other old technologies. But some places still sell candles, but I don’t see them again becoming our primary source of light.

However, the functions those old ways doing things performed did not. I think the same is true of social media. If Facebook or Linked in disappear, something will take their place. Social media is just too dominant to think otherwise.