The Outdoor Recreation Industry is becoming awash in new media data, much of it generated by consumers. And the management teams in many of the major outdoor companies are becoming frustrated.

The top of the funnel is the collection of the data. The middle  is where it gets distributed to the various departments and action taken, and the bottom of the funnel is where management is presented with the data and investment decisions are eventually made.

And here is where the problems become real.

1. In most instances, marketing has the challenge of showcasing the data in an understandable fashion to management.

2. It is failing.

3. Management is becoming frustrated because it wants context, interpretation and return-on-investment information.

Here’s what needs to be done.

1. Investment. Build a bigger investment behind the infrastructure that interprets and reports on the data. If a company is investing in monitoring the incoming data, why not invest in accurate measuring of that data?  This means spending money on an analyst who organizes, helps interpret and reports on the data. This can be accomplished internally (hiring) or  externally (with an outside firm).

• Investment also means that time is allocated in the Marketing Department to work with the analyst to organize the report. People in Marketing need to support the analyst and build a report that shows the value of social media business intelligence.
• Invest in the feedback loop. Feedback from consumers coming in is fine, but there needs to be responses. Content in the form of answers back to consumers, content for the Web Site and content for the company blog.

2. Reporting. Present data that can be understood and measured. And what does this mean?

• Segment the data along the lines of your corporate structure. Customer reviews go to the Product Development Department. Blog and twitter activity around marketing initiatives go to Marketing. Twitter complaints about service go to Customer Service.
• Once the consumer feedback and company response is received and recorded,  the reporting begins…and it is segmented by either Channel or Departments.  Senior management is looking for month over month trends. Is the new media conversation trending up? Are our customer complaints trending down? And are consumers talking about our marketing events?
• Make the data granular, but understandable. What does that mean? If the report states that ” The Phoenix Desert Run Event” received 5,000 mentions on Twitter…define what that means. For example, “that means 5,000 people took the time to mention our event and pass that information along to their followers, a total of 500,000 followers.  Our estimate is that 10% of those followers (5,000 people) read the information and 10% of those followers attended the event. (500 people)  And 50% of those followers tweeted about the event either during or afterwards. (250 people) So, those 250 reported back to 25,000 followers…10% (2500 people) read those tweets.

3. Action. Here’s where Senior Management comes in. Social media can be in real time. And that means that you don’t have to wait six months to see if a program is working. You’ll know in a month or two…maximum. Yes, there are some events that need to build, but the feedback is immediate and clear. Now, if a Department wants to stay with a program fine, let them make the case, but the data coming in is clear. And if it is not building after a few months…the event should be seriously questioned as to return-on-investment.

Most people in senior management believe in the general concept of collecting and measuring new media. The value comes in the reporting. And if management can not measure, they will not continue to invest.

They become believers when they understand the metrics. And that allows them to assess value.

Channel Signal is borrowing the famous battle cry, “It’s the Economy, Stupid” created the Clinton candidacy to help focus the campaign on a winning strategy. Coined by James Carville, it did the trick…tapping into a core value that resonated with the American public.

Now, comes social media. And the focal point ought to be on finding the Influencers and building the relationships.

Putting this into perspective, the Outdoor Recreational Industry has always been about relationships. Athletes talking up brands. Retail salespeople selling what they like and are confident about to consumers. People in the communities who are gearheads and always having recommendations for family and friends. And millions and millions of conversations over beer and wine about climbing, skiing, running, biking and camping.

Now, social media is good for measuring conversations about initiatives and events and then comparing the rise or fall of the volume on a month-to-month basis. It is the start of developing a basis for ROI.

However, brands will grow if they attract, enlist, and keep Influencers. For these are the people who attract the online traffic, talk about your brand to friends, and talk about the latest gear at cocktail parties.

So, it is the relationships and how to attract them. And it will not be accomplished with big-message marketing. And it will not be accomplished with heavy footed attempts are being friends on Facebook. It will be accomplished thru your people honestly having conversations with Influencers. Some will come on board and be messengers for you. Some won’t. But humanity plays a big part in these conversations.

We came across an article in Marketing Professor that speaks to our point.

Channel Signal Analyst, David Sweeney, brought this to my attention yesterday. Needed a day to think about it.

In short, Nike is taking on two Northeastern College kids for making tee shirts that announce, Just NU It. NU students Matthew Valich and Charles Svirk want to now take this to other Universities, like DU (Denver University), and make a go of it. Matt and Charles have hired the South Butt attorney that represented Jimmy Winkelmann in the South Butt case. Here’s the Article.

Channel Signal has collected and measured 100′s of thousands of online posts on the South Butt case for our client, The North Face. So, we have some experience here.

Here’s our advice to Nike and the young company called Univarsity (correct spelling).

1. Both sides seem willing to settle. Just Do It.

2. If you don’t, then you Nike, should prepare for the full force and power of an online population that is young, powerful, willing to invest time and          money…all to fight the behemoth called Nike. And once they engage, then traditional media engages. Your legal and pr teams will be busier then they ever thought possible.

3. Nike, your lawyers don’t know how to fight this battle. Much money will be wasted.

4. Matt and Charles. Good idea, but this may not go the way of South Butt. Know what you want and then go negotiate with Nike to get it.

5. Nike, last I checked your revenue is north of 35 billion. And I’ll bet Univarsity  isn’t making $10,000 a month. Engage in a fight and you will be perceived as the 800 pound gorilla. And you have built your enormously successful company on the aspirations of millions of Americans that they can get out and “Just Do It.”

Just Don’t Do This. Find a better way.

So many companies are focusing attention on Facebook. Why? Because they feel that all consumers are flocking to FB.

The problem: FB is truly social media. It is filled with consumers sharing past experiences, old photos, connecting with old friends, youtube videos of favorite rock bands, posting links of great blogs, and generally connecting with friends, family and long lost friends.

It is social. It is not business.

Here’s the litmus test. Would you want to see the current pictures of an old boy friend who has recently connected with you, or would you like to hear a sales pitch wrapped-in-the-guise-of-a-conversation about a new product from a brand.

Yep, I thought so. Me too. Bring on the pictures.

So, when companies tell Channel Signal that they are concentrating on Facebook, they ignore a basic fact. They are a small part of the conversation and they will remain a small part of that conversation. The FB core value is…give people the tools to connect with one another. The core value is not…give businesses access to consumers so they can sell more stuff.

That’s why Facebook has floors of lawyers that do nothing but protect the idea of consumers being”password protected.”

And yes, companies are trying to negotiate with Facebook to gain access to the consumers on the platform. It won’t happen. It can’t happen. FB would lose its core value and its competitive advantage.

So, companies need to engage by presenting grass roots events and programs to consumers. Activities that people can do together. That motivate. That create communities. Where people can meet new people. Where good things happen within communities.

Brands are heavy footed. Sorry, brands, but it is true. You don’t communicate with the same free flowing manner of people who are happy to engage with friends, family and about community events. They don’t worry about making a misstep. You do.

And it will always be that way.

Brands should use FB to provide momentum for community building and grass roots movements. And they should use Twitter for the immediate information that needs to get out. And the blogs for thoughtful presentations.

And the selling…save that for the sales reps, retail salespeople, the online retail sites…and the places where people expect to be sold.

And a brand saying that they have 30,000 FB friends? Please. The vast majority are just folks riding through the neighborhood looking for yard sales.

Channel Signal is in the business of collecting raw online data and then providing analysis. WikiLeaks is in the business of publishing the raw data without translation.

I believe WikiLeaks is staying true to its purpose. Publishing the behind the scenes dialogues of government is neither bad nor good. Governments, including the United States Government, have a vested interest in keeping order and the status quo.

WikiLeaks is about publishing the information and allowing people to make up their own minds. Well, they have. In Tunesia, Egypt, Yeman and perhaps Jordan. And the information has encouraged the lower and middle classes in many middle east countries to rise up and demand change. Change that would allow the lower classes to earn a living and the ruling classes to be less entitled…to cushy government jobs, country clubs, and general plush livestyles.

I believe the Obama Administration is watching all of this unfold with a careful eye. The lower and middle classes in the United States continue to struggle. The upper class, especially Wall Street,  continues to make more money while behaving as if they are “entitled”.

Don’t believe for a moment that our country is immune from unrest. Watching the Egyptian uprising may be giving us a glimpse into the future.

The United States was very healthy in the 1950′s because there was promise in the air. The reward of a better more prosperous life for hard work. That continued in the 60′s and 70′s. It started to come apart in the 90′s and 2000′s…as we had the S&L crises, then the bubbles (both Internet and Housing), and then the Wall Street mess.

Making money just to make money only benefits the rich. And countries who pander to the upper-class undermine the very foundation of good government.

Change will come. Raw information from Wikileaks probably brought change sooner, but it was coming anyway.

Here’s hoping for a smart peaceful change, for the better, in our country.

I have been attending the Outdoor Retailer and Snowsports Shows for a long time. OR or ORWM (Outdoor Retailer Winter Market) is held in Salt Lake City. The Snowsports Industries of America Show is held in Denver…moved recently from Vegas in a moved that has been brilliant.

I have not seen more upbeat shows in a decade; no, over a decade. OR was first. I attended the Thought Leaders Dinner the evening before the show, and the mood from the industry leaders was positive to the point of being giddy. Numbers, customers and momentum all swinging to the right and up. The first day of the Show was the same. Very positive. Much conversation.

Then a funny thing happened. The Show got quieter, and I don’t think this was a bad thing. I believe people were doing business. Retailers busy with their “open to buys” and brands busy showing the product lines. Mind you, still loud and positive…but a little more business like and subdued.

The SIA Show was not the same. It was loud, positive, and not subdued…until the end. During the Show it was announced that the snow industry sold over a billion dollars in December, a record. I overheard the President of Rossignol, Tim Petric, asking a retailer how business was. The retailer replied that it was just excellent. Just excellent. And that vibe kept up throughout the show.

My congratulations to the OR team led by Kenji Haroutunian. Great show and well worth it for the brands, retailers and the other attendees.

And to David Ingemie and his team at SIA. The move to a ski town, Denver, combined with a well run show, the great winter and good business cycle made for an industry rapidly gaining its health.

There have been a few lean years. However, those who kept their heads down, stuck to the business basics, and forged ahead with a smile are now reaping the rewards.

It couldn’t happen to better industries or the people in them.

Jonathan Salem Baskin writes a blog called Dim Bulb. I like him because he is a contrarian in a social media world of  people who are always “so excited to see you!!!”

He provides balance.

Here he writes about Best Buy and how it has deployed employees to tweet. Baskin reminds us that content is not necessarily information. Nor does it lead to more knowledge. Sometimes, content is just a person with a megaphone attached to his/her stream of consciousness…and brands may be sorry they resorted to branding “by thousands of voices” with no central message.

Have a read.

DimBulb

Well, it is time to climb back into the saddle and start the new year of blogging. Actually looking forward to writing and hearing back. In 2010 many comments were insightful. I learned a lot.

So, what does Listening to the Crickets mean, anyway?  Well, it goes back to conversations I am having with business leaders who seem to believe that monitoring online marketing channels can be done without participating in the conversation.

Business Leader: “Why don’t we just listen for awhile and get the hang of this?”

Me: “Because, based on what Channel Signal is picking up, there is no content to react to. So, we are listening to the crickets, and nothing else.

Business Leader: “What does that mean?”

Me: Remember, a long time ago, when you were sitting on the front porch with your girlfriend, and she asked you a question that you couldn’t or wouldn’t answer. She waited, and you just stared at her. And there was this awkward silence. Well, there is that same silence now from your company, online.

Business Leader: Well, they tell me that our products are doing well and consumers are writing reviews.”

Me:” Yep, that’s true. We can monitor for Customer Reviews and that’s a start, but you and your team should engage in several different channels; blogs, social media (twitter, youtube, facebook), and online traditional media. If you want to have an impact online, you must engage.

Content is the center of  a Push strategy, to push content into the online channels so that consumers will read and engage your brand in those channels.  Then, a company can start to monitor, engage, and measure. Can start to Pull real data. And measure.

Listening is important.  But you must be interesting first, so that people want to talk with you.”

Useful content. Responses that answer consumer questions. Good replies to good comments.

Be human. Listen. Comment. Answer.

And your company will hear more than just crickets.

To all of you who are readers, I thank you.

And wish you a wonderful holiday season filled with family, friends and good cheer.

And peace. Most of all I wish you peace.

The kind of peace that creates patience, understanding, and good will.

Peace that gives you time for the little ones, and the old ones.

The kind of peace that makes you give and receive with humility.

And peace to the environment and all things wild.

The mountains is a place where I seek peace, and often find it.

And I pray that you have a similar place.

Peace on Earth.

Goodwill.

“If you can’t measure, you can’t manage.” -Peter Drucker

And that says it all. If a company is throwing content out into the sea of social media with no means of measuring, then the company is throwing money away.

Reminds me of when companies first launched their own websites and the marketing directors would be excited because they got 10,000 hits the first day…thinking hits were visits.

Context.

What does this mean? And that will be the question that all social media managers will need to answer when reporting to senior management.

What does all of this mean?

Internal (Done by the Company) Measuring and Reporting

A company will want several people on this because the task is a big one. First, all of the information needs to be taken to a new organizational level. A month of posts will need to be filtered again, organized, and placed into a quantitative report that makes sense to senior management and its respective departments. Words. Graphics. Simple but accurate. And then there needs to be Qualitative Information…information that provides context to all of the data.

This event was successful because…This marketing initiative is not successful because… And, here are the metrics we used to measure it.

And senior management probably won’t like or understand the first few reports so major overhauling will be necessary.

CEO’s will ask questions like, “What does brand mentions mean? “We had 1,000 tweets on our running event. Is that good? And how does that 1,000 tweets compare to the $25,000 we spent to sponsor it? How do we measure this?”

You won’t need answers for the first round of questions like this. You will need more answers for the second meeting on social media.

In short, buzz is one thing. Measuring and interpreting that buzz is another thing.

Plan on over 3 full days a month for the first year for one person. (30 hours a month.)  A manager should plan on a full day a month for overseeing, helping to interpret, editing the report and presenting to management.

External (Subcontracting Out the Social Media Measuring and Reporting)

Almost all monitoring and measuring companies offer functionality that allows you, the company, to pull down reports. But it is all automated, which means that the data stream and filtering of that data will be there, but the organization, interpretation and presentation aspects are not there.  A company must allocate other human resources. About 2 days a month to gather and organize the information and then provide interpretation and analysis.

Few monitoring and measuring companies offer the actual assembly of these reports and interpretation by an analyst assigned to the company by the outside vender.  If the monitoring platform assigns an analyst, then it will take simply a few hours a month to review the information with the analyst and submit the report. 2-3 hours a month.

Adding everything up:

1. Internal Collection, Filtering, and Sentiment Assignment= 3 hrs./day/one person

2. Managing the External (Sub-Contracted) Collection and Filtering of Social Media (many monitoring companies do not include sentiment filtering) = 1 hr./day

3. Internal Sorting and Distribution= 3 hrs. a day/ one person + variable costs due to confusion, inefficiency and lack of support for Gatekeeper

4. External Sorting and Distribution= 1 hr. a day/ one person

5. Internal Measuring= 30 hours/month for one person to gather, organize, interpret and present data. (about 1 hour a day)  It will take another person 8 hrs./month  to prepare, add further interpretation, and write the report. Count on these hours for at least a year.

6. External Measuring= 16 hrs./month  for one person to  gather, organize and review/prepare the report for senior management. If the sub-contractor supplies an analyst and the reporting, then the workload is cut to just a couple of hours a month.

Grand Totals:

Internal Cost of Do-It-Yourself Social Media Collection, Filtering, Sentiment Assignment, Sorting, Distributing, Measuring, and Reporting =  170 hours a month + variable costs associated with confusion and inefficiencies of building the program,  lack of support for the gatekeeper, and senior management’s discontent with the reporting.

External Cost (Subcontracting) of the Social Media Collection, Filtering, Sentiment Assignment (often not included in the service)  and Automated Reporting of Data = 80 hours a month.

None of the above includes creating new media programs, writing content, and engaging. That is many more hours and people.

So, it is a matter of cost verse price. The price might be $2,000-$3,000 a month to subcontract out for a social media monitoring and measurement program. However, what is the cost to do it internally?  In real time and real salaries?

This series of articles should get companies thinking about…the real cost.