Social Currency. Where Brands meet Dynamic Context.

Mai 2nd, 2010 • 1 comment Brands, Social, Social Business, Strategy
Tags: Adaptation Marketing, Brands, Business, Report, Reports, Research, Social, Social Business Design, Social Currency, Strategy, Study, Trends, Vivaldi, World

One of the really good studies about brands and their social environments has just been published jointly by NYC think tank Vivaldi Partners and Professor Johann Füller (University Innsbruck) in cooperation with Lightspeed Research.

The report ‘Social Currency’ asks what a brand’s social currency is, and what it takes to build and nurture it. And, the report indeed brings a couple of crucial things across – it defines the buzzy term Social Currency and attributes success metrics for brands here.

Defining Social Currency

So what is Social Currency and why is it important? From the report’s perspective it is the contextual sum of experiences users can have in relation and interaction with a brand. And a brand’s social currency is bound to a dynamic process that we call reality.

Social Currency is the extent to which people share the brand or information about the brand as part of their everyday social life at home or at work. (…) It is neither a product feature, nor a communications or PR campaign that is completely managed by any one company. From this perspective, social currency is a far more delicate asset to build, nurture and maintain than is brand equity.

Social currency represents a shared asset of consumers and company-owned brands. It originates from interaction between customers and consumers. And it is the material a brand’s success will be fundamentally influenced by…

1. Across categories and brands, 53% of consumers’ brand loyalty can be explained by social currency
2. Users of brands with high social currency show a significantly higher willingness to pay a price premium (correlation=0.73)

The study’s explanatory strength does not only lie in these results – it is remarkable as it tries to define what social currency is made of. Since the research assumes that social currency is crucial for brands to create customer loyalty it consequently also reveals its components. No, a brand does not necessarily have to access all levers – this varies in regard to which industry and brand is involved…

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Dear Forrester. No, We Are Not Going to Die.

März 29th, 2010 • 2 comments Business, Strategy
Tags: Adaptation Marketing, Agencies, Brands, Business, Diagram, Forrester, Future, Ideas, Industry, Reports, Social Business Design, Strategy, Trends, Truth, World

Since Digital has initiated the revolution in Marketing the question for the ‘Agency of the Future’ has almost become an Internet Meme. Pretty much every agency around claims to have found the recipe. That’s in fact no very surprising. Over the time the already-complex agency-marketer relationship has been significantly altered by factors such as the recession and the rise of social media. With brands and agencies stumbling into the real time web and over interacting customers (OMFG!) the key question is obvious: Whose agency future is it anyway?

The challenge

In their late Forrester report about ‘The Future of Agency Relationships‘ Dave Frankland, Sean Corcoran, and Vidya Drego have tried to define a CMO’s challenges and their criteria catalogue when it comes to choosing an Agency of Record – a highly complex task. Agencies have always managed to adopt to changes. There were many paradigm shifts from the ad sales era of the early 19th century to our wired reality. Nevertheless agencies (or similar institutions) managed to offer services which were relevant enough. Today, once more, agencies are faced with new requirements in what they are supposed to deliver:

That may not exactly sound completely new. But it is quite interesting to ask which agency model might be able to accept these challenges.

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My Perspective. The New Rules of Relationship Management.

März 7th, 2010 • 2 comments Allgemein
Tags: Adaptation Marketing, Altimeter, Brands, Business, Monitoring, Reports, Social, Social Business Design, Social CRM, Social Influence Marketing, Strategy, Tools, World

Altimeter Group has just published its new report entitled ‘Social CRM. The New Rules of Relationship Management.’ It assumes that companies are simply overwhelmed with social interactions. They need tools, but they need tools to deliver on certain, clearly defined objectives. This report tries to give an overview on the tech-related maturity of SCRM tools and their relation to company objectives. Most of you will find it f*****ing boring. I don’t.

About half a year ago I posted an article entitled ‘Social CRM. Ready for action?‘. I tried to give a rough overview on the relevance of a new approach to brand-customer-relations in an era shaped by interactions among users via social software.

Of course I am not the first one to reflect the outcome of a world gone social for CRM. People like Esteban Kolsky (read his articles ‘The Roadmap to SCRM‘), Wim Rampen, and a few more CRM guys try to define the role of SCRM for today’s marketing. And now there is a new report by Altimeter’s notorious Jeremiah Owyang and Ray Wang – Social CRM: The New Rules of Relationship Management.

What’s it SCRM?

Social CRM extends the classic definition of Customer Relationship Management. According to Paul Greenberg…

CRM is a philosophy & a business strategy, supported by a technology platform, business rules, workflow, processes & social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It’s the company’s response to the customer’s ownership of the conversation.

SCRM accepts the fact that there are millions of people virtually interacting . They are chatting about your brand, recommending your sneakers, or rate your restaurant online. This is where SCRM starts off…

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Social Networks. Age is definitely more than just a number.

Februar 28th, 2010 • Reports, Social
Tags: age, Cool, Diagram, pingdom, Presentation, Reports, Social, Social Networks, Strategy, Trends, visual, World

First of all follow Pingdom on twitter. Seriously.

Secondly, it is not common for me to quote the research results of one thinktank for the second time in two days. Here I will make an exception. Simply because Pingdom respects the golden rule of being quoted on the social webs in perfect harmony with the four key elements of social nerd buzz:

• do the research/poll/well argumented guess about Planet Earth
• follow up with number crunching (if there are numbers)
• draw a great looking diagram
• tweet the hell out of it

Today we talk about age distribution and social networks. It’s neither a secret nor surprising that there is an age gap between LinkedIn and Twitter. But as long as you don’t nail down this fact into a diagram you don’t make a point on the intertubes. Right? Right.

Here we go…

Fact: Age distribution in social networks varies among social networks

High five! We are number one. If you are a 36 year old tech savvy, male, digital nerd the following diagram enlightens you with one key information – you will meet the ones you like (and who are like you) over and over again. Your mom probably isn’t yet a registered member of Facebook and your teenage cousin probably isn’t as well. But be prepared for the next generation to be 150% part of the game. Unfortunately they are not really relevant yet marketing wise (but they will follow….muahahahahahahahahahahahaha).

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2010. What’s going to happen in 140 characters or less.

Dezember 23rd, 2009 • Business, Reports, Strategy, Twitter
Tags: Brands, Business, Cool, Diagram, Experimental, Ideas, Prediction, Presentation, Reports, Social Influence Marketing, Strategy, Trends, Truth, Twitter, World

As the year ends it’s time to think of the next big…year. 2010 is coming closer and while the Mayan Calendar seems to save us from the rapture for two more years, it is still time to think about next year’s trends. Okay…we get drown in trend predictions lately, but I liked this one – Trendspotting‘s third annual prediction report following major trends in six categories. This time with trend predictions by the industry’s rock stars in 140 characters or less. Good to go?

Trends. Most Contagious 2009 is live…and kicking.

Dezember 17th, 2009 • Allgemein
Tags: Business, Contagious, Cool, Creativity, Experimental, Future, Ideas, Prediction, Presentation, Reports, Strategy, Trends, visual, We like, World

Contagious Magazine is one of the really good providers of quality content about global trends in marketing (do also check out trendwatching.com and PSFK among zillions of others). Apart from the magazine and DVD, Contagious also provides a pretty cool online resource, weekly newsletter, events & consultancy service, in-depth media reports and intelligence ‘Feeds’ for advertisers and agencies.

Now they have published their annual review for Global trends in Marketing last year, Most Contagious 2009.  It contains quite a pile of more or less known trends from design, technology, and real time media, summarized in a more than nicely designed document. A great compendium of everything that’s dynamic nowadays in our business.

They asked their readers to share the link to the PDF. So here it is – the link to Most Contagious 2009.

Adaptive Marketing. How not to go the Dodo way, Part 2.

Dezember 9th, 2009 • Business, Intelligence, Reports, Social Business, Strategy
Tags: Adaptation Marketing, Business, Forrester, Future, Ideas, Reports, Social Business Design, Social Influence Marketing, speed, Strategy, Trends, World

I did write about the concept of Adaptation Marketing two weeks ago. I admit, it’s another buzz word in the digital/social realm. But it’s a meaningful idea for what brand management might be like in the near future. A model which enables brands to deal with the social sphere without necessarily focusing too much on Facebook, Twitter & Co. A thoughtstarter for rather traditional as well as new marketers alike.

Adaptation is a term from Darwin’s evolution theory. Wikipedia knows that “when the habitat changes, three main things may happen to a resident population: habitat tracking, genetic change or extinction. In fact, all three things may occur in sequence. Of these three effects, only genetic change brings about adaptation.”

The life of the last Dodo ended in the 17th century. His habitat changed drastically when men appeared. An unwelcome surprise for Dodos as for brands who also struggle with real people who behave different than what they are used to. They talk and they walk and they don’t necessarily care for Dodos and brands. We, marketers or advertisers may like it or not – but things in our habitat change. Quickly. And two key aspects of it are  feedback and real time.

How social will we have to be?
The Dodo formula is simple: Humans arrive = Problem. Brands know this problem since the social web startet going mainstream. Some of them adapt quickly. But most of them behave like rabbits in the headlight.  Caught between a rock and hard place, the challenges seem to leave no other way than to use it or lose it, Facebook Fan Page or nothing at all.

I think there is a third way.

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The social workspace. Keep on tweeting, peeps.

November 11th, 2009 • Work
Tags: Reports, Study, Tools, Trends, We like, Work, World

Okay, good news for all you guys twittering and facebooking while you work. Personal surfing/tweting/networking while at work does not mean you’re ineffective (yeah, you knew that already).

Dr Brent Coker, from the Department of Management and Marketing, says that workers who engage in ‘Workplace Internet Leisure Browsing’ (WILB) are more productive than those who don’t. “People who do surf the Internet for fun at work – within a reasonable limit of less than 20% of their total time in the office – are more productive by about 9% than those who don’t,” he says. “Firms spend millions on software to block their employees from watching videos on YouTube, using social networking sites like Facebook or shopping online under the pretense that it costs millions in lost productivity, however that’s not always the case.” (via University of Melbourne)

Plus, as an article of Harvard Business Magazin explains:

• Millennials will seek jobs that encourage the use of social media: They network 24/7 and expect the company to accommodate pervasive connectivity. As an accenture survey points out the use of various technologies such as instant messaging, text messaging, Facebook and RSS feeds is crucial to how they do their jobs. One participant said “I need to access my Facebook in order to do my job.” Has blocking Facebook today become the equivalent of denying an employee access to a phone at work 40 years ago or email 20 years ago?
• Companies that provide access to social media create a more engaged workforce. Enterprise 2.0 solutions, networking and real time interaction with customers and partners becomes more and more essential. Blocking the access to Social Media sites while leveraging such tools is a contradiction. Global cooperation tools have increased access to experts in the company, reduced the cycle time from discovery of new products to launch of new products, and increased employee engagement and satisfaction in the workplace.

Adaptive Marketing. How not to go the Dodo way, Part 1.

November 5th, 2009 • 7 comments Intelligence, Reports, Social Business, Strategy
Tags: Adaptation Marketing, Business, Forrester, Future, Ideas, Intelligence, Reports, Social Business Design, Social Influence Marketing, speed, Strategy, Trends, World

Forrester has just published an article called “Adaptive Brand Marketing: Rethinking Your Approach to Branding in the Digital Age”. This article comes up with a couple of thoughts which aren’t completely new but leave you thinking. Agility and adaption are defined here as preconditions for brands to survive. Not new, you think? I think it is new in a certain way…simply because it left me with a couple of questions (which I try to discuss in the second part of this article, next weekend).

It’s good to have clever buddies. One of them is Johannes, my colleague who regularly sends me the articles I miss to read and starts a good discussion about it, usually. I had read a good post by BBH labs about a Forrester article which wasn’t even published at that time. But I missed the original Forrester report. Johannes made me read it (thanks again). And I recommend it as well now. Key question of the report: How do organizations respond to an even faster world in which they struggle to survive?

The challenges of speed and dynamics were always hard to put into a model for our social web driven world. All too often we focus on a different question as marketers: How do we respond to customers at all (not even really focusing on the real-time aspect of our digital world)? The question on how we hold conversations at all took our full attention away from its inlying dynamics and what it does to companies. But it’s crucial.

Think of the Dodo. A flightless bird endemic to the Indian Ocean island of Mauritius. Related to pigeons and doves, it stood about a meter tall, weighing about 20 kilograms , living on fruit and nesting on the ground.

The dodo has been extinct since the mid-to-late 17th century. It is commonly used as the archetype of an extinct species because its extinction occurred during recorded human history, and was directly attributable to human activity, hence the phrase “going the way of the Dodos.” (thx to Wikipedia). The Dodo and his ancestors were intelligent enough to survive for millions of years. But as his environment (well, humans came) changed he could not adapt fast enough. And this is a perfect example to introduce the topic I actually wanted to write about: Adaptation. Because evolution is a process that rewards the organism most capable to adapt to new environments, not the biggest or most intelligent. It’s an opportunistic and fast system…for the Dodo as well as for brands.

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engagementDB. Altimeter’s social business compendium.

Oktober 19th, 2009 • Allgemein
Tags: altimetergroup, Brands, Business, Diagram, engagmentdb, Presentation, Reports, Social Business Design, Social Influence Marketing, Strategy, Tools

Actually I am pretty well informed of what’s happening in the wild, wild world. The fact that altimetergroup published this fantastic project without me knowing it for months can only be explained through my vacations (at least I hope, otherwise I would have to reconfigure my Feedreader).

Engagementdb gives an overview about brands in Social Media. Currently it comes with two key features: A very handy, insightful diagram, which dynamically positions brands in regard to their engagement intensity and platform distribution. Additionally the findings of altimeter concerning brands in the social web are put down in the engagementdb study. In addition to the live assets altimeter wants to build up on its core finding and asks users to integrate ‘their’ social brand assets. The goal: to build a comprehensive overview of the market.

To sum it up: Even for altimeter this looks like a challenging project. But it’s definitely worth a look for everyone who works in nowaday’s Social Business.