May 6 2010

No Strategy for This

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The spill in the Gulf of Mexico started as a news report of an explosion and eleven men missing. Only one sentence was dedicated to the oil spillage…saying only that a tiny amount was leaking.

It has now grown and threatened the coastline of several states. It is telling a story much larger and much more damning to the shrimpers and the oil people.

Here’s an example…reported by the New York Times.

“About 35 endangered sea turtles have washed up dead on beaches along the Gulf of Mexico since Sunday, sowing fears that they were done in by the growing oil spill.

But so far scientists have found no connection between their deaths and the spill. Autopsies indicated that the turtles had ingested no oil.

It is now suspected that shrimpers out at sea before the April 20 rig explosion and spill caught the turtles in their nets, which can suffocate them.

The A.P. reports that federal fisheries investigators are looking into whether shrimpers were responsible.”

So, the oil spill exposes other abuses.

And is social media having a hay day with the suspected killing of endangered species in pursuit of the dollar? Yep. Search for “sea turtles” on Twitter and it is all about turtles and the oil spill.

Why is the sea turtle episode exploding on Twitter? Because it is the sidebar that puts a new spin on the story. There are pictures. And people are becoming emotionally attached.

And this whole business is dirty.

Our dependence on oil is dirty… due to carbon loading.

According to the University of California, every car is responsible for 1.28 tons of carbon per year.  A nation with five percent of the earth’s population consumes about 23 percent of the world’s oil output. And we are currently exceeding the regenerative ability of the earth to sustain us. Today we occupy 145% of the earth’s regenerative ability.

The extraction is dirty, and dangerous.

According to the Associated Press, the U.S. Minerals and Management Service is developing regulations aimed at preventing human error, which it identified as a factor in many of the more than 1,400 offshore oil drilling accidents between 2001 and 2007.

Sea turtles are now proving that commercial shrimpers are dirty.

And this story has so many sidebars, many which are still unknown,  that it will be tweeted about, facebooked about, and blogged about …for years.

There will be more pictures of wildlife, total victims.  And millions more new media comments.

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There will be villains. And more new media comments.

There will be innocent human victims. And more new media comments.

And my point?

There is no new media strategy that can solve this, next time. This is a national tragedy.

Pundits are already coming out and writing that BP didn’t handle this the right way. Well what is the right way? Set up a war room and have the best minds churn out news?  Stay on top of the issues? Be the first to break the stories…before the media?  Be transparent? Be honest? Be responsive to new media questions?

Won’t help.

Again, this is a tragedy and one that is unfolding before our eyes. And new media is a part of delivering the story and the millions of opinions surrounding it.

BP better concentrate on fixing the problem and cleaning up the mess. And pay for all of it. After nearly two decades of screwing around with the legal system, Exxon got exactly what it wanted: a Supreme Court that reduced punitive damages from $2.5 billion to $500 million. According to reports, that is just a week’s profit for Exxon.

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This time we should put the big hurt on BP. 10 billion. 20 weeks of profit. Make them howl. And the judicial branch should level the fine and walk away. That will get the attention of the other oil companies.

The Obama Administration would be wise to forget about the deals they made with the Republicans to get the health care bill passed…and kill the off-shore oil drilling initiative. DOA. Period.

Shrimpers…stop killing endangered species. You might have been innocent victims, but you sure aren’t now.

This is a big story of our time. And because of new media, we are all involved. Writing. Discussing. Taking action. Being disgusted.

And there is no strategy that will lessen the impact for BP.  It is caught in a huge unfolding story.  And the federal government is caught in the same story. So are the shrimpers. And so am I. And so are you. BP is just a spoke in the massive feeding machine connected to our lifestyles.

We in new media can pontificate all we want about this national disaster, but until we view the future with sharp, clear-eyed vision and determination…expect bigger environmental disasters.

And expect our free fall into the future to continue with the ground approaching at an ever increasing rate.

We have met the enemy, and it is us.



Apr 19 2010

All of the Noise

noiseChannel Signal has been bombarded lately with noise. Now, part of our job is to filter noise and there is much to filter: worthless posts like “Just on my way to work. What a beautiful day. Wearing my brand sandals.” or “50% discount here on all brand product. Buy. Buy. Buy.”

I would say of the 400-600 posts a day that we receive for each of our clients about 80% is noise.
And when we send it through our second “human” filter we filter out about 80% of that and deliver only about 20% of that to our clients.

Recently, there is a new type of noise, and it is just confusing the issue. This noise is all about the new software coming online to help companies sort through new media, help them develop content, and then help deliver content. Soon, there will be software that will write the content for you and all the brand needs to do is put its name here.

This improved software will help a company make new media easier, faster, more efficient and cost-effective.

Don’t believe it.

It’s just like the great Smith-Barney ads used to proclaim at the end of its thirty-second spots.
“We make money the old-fashioned way. We earn it.”

And you must. Brands must earn the respect of the Influencers in new media. Must earn a loyal following. Must earn a strong community. Sure it starts with the product; however, it doesn’t end there. That is only the beginning.

It’s the communication and feedback loops that you must now build. And yes, software packages can help; however, the basics can not be ignored. Here are some of the basics.

1. Pick just one channel and do it well. Not just by getting yourself up on Facebook, Twitter, MySpace, YouTube, and Flickr…and saying, “well, that’s that. Let’s talk about our product and see if we sell more.”

2. Sorry about this, but it needs to be said…because this is the phrase, “shit in, shit out.” Searching and receiving raw new media data, and not filtering and accurately assigning sentiment means a brand is getting crap. And now crap is being analyzed. And the analysis is crap. And management decisions are being made based on crap.

Channel Signal delivers “finished” data and this is data that is relevant and worth consideration by our clients. We then analyze that data, and measure it. Now management (and its pr/marketing partners) have clean data, a clean report, and good information to consider.

3. Engage. I come from a family of talkers. My Mom always used to say, “well Paul, if you aren’t listening and talking, then how will you know what others are thinking?” Brands must first listen, and then talk. Engage with good content, and then enter the conversation that it sponsors. And if doesn’t sponsor any talk, then change what you are writing about. Get them talking.

Publish and talk. Don’t be shy. New media is not the place for wall-flowers.

And, ignore the noise. An old African saying, “How do you eat an elephant? One bite at a time.”

Take this in bites. Choose a channel. Concentrate on it. Make it successful. And then use that knowledge to build.

And believe that this will be hard work. Building content that attracts a strong community starts with knowing your voice, your audience, and what they want. And that’s where “finished” data comes in. It is the feedback loop that allows you to accurately gauge, and correct.

It’s your compass in a whacky world.


Nov 20 2009

When the Funnel Becomes the Bucket

Recently I wrote that the distribution of information had always been a funnel but it had now turned right side up.  The mouth of the funnel is wide open and consumers are publishing because it is easy and they have opinions.  The good brands are building these funnels, advertising their communication portals (Facebook,etc) , attracting consumers, collecting opinions, engaging, finding their voices and constructively inviting/channeling consumers further down into the brand storyline. During this process the brands are quietly measuring their effectiveness, learning, and becoming much better communicators as consumers elect to engage more deeply.  They are collecting excellent data on Influencers, athletes and active consumers as the information travels down the funnel.

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In recent conversations I have been painfully reminded that many me-too brands in the Outdoor Industry are not building solid funnels but building buckets with holes and no bottom.

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How? Well, these companies crow that they have a Web Site, Facebook Page, are on Twitter, YouTube, and Flickr.

And consumers are initially engaging…entering the bucket. But they are not directed or invited to go anywhere.  They  just sit in the bucket, quickly draining to the bottom…without direction.

And then an analyst from Channel Signal investigates. We find that they had good sign-up for the Facebook page, a decent  following on Twitter, and that YouTube and Flickr had good traffic, but that it fell off quickly.

Why did the traffic fall off?  Because these companies did not allocate the resources to engage. Employees were not assigned to respond to consumers, and direct them to the next point of interest. Consumer questions and comments went unanswered. They were not invited to go to Facebook or the Website, or YouTube, or a User Group. And because there was no natural momentum of engagement, no funnel, consumers were stranded and then took the easy way out….quickly out the bottom of the bucket. They were invited to the conversation and then nobody talked to them.

So they didn’t stick around. And  they took all of their knowledge about the brand with them.

A study by the Chief Marketing Council shows that 38 percent of the 480 executives in the industries surveyed say their companies have no programs in place to track or propagate positive word of mouth among customers. And only 29 percent rate highly their ability to handle and resolve customer problems or complaints

All that money to make products that attract consumers. All that money to sell into retail. All that money for advertising to attract consumers. All that money to set up conversation channels.  And then the pay-off…consumers responding online by engaging in one of the channels. And…

And silence. All that wonderful potential data about consumers and what they like and don’t like about your brand and products…out the bottom of the bucket. And all those potential Influencers, gone.

Never to be captured again.

Say goodbye to measuring ROI.


Jul 10 2009

Smile Away On Twitter

 

Recently I have heard from a growing number of my fellow tweeters who have been receiving “follow” requests from, well, not people they want to follow. I too have been getting them. These requests come from people who are trying to sell me stuff and its the kind of stuff that I don’t want to buy. 

a. I don’t want to work from home and make 50k a month selling god-knows what

b. I have no interest in establishing a relationship with a hooker or stripper. 

c. I do not want to be sold the latest stuff in marketing or branding.

d. I have no interest in a consultant who reaches out to me via Twitter…me and thousands of other people. 

Here’s what I want. I want to follow quality people who help me grow. I want followers who find what I am writing about worthwhile. And I think that is what most people honestly using Twitter want. 

So, if I have 100 followers and they are the right people, I win. And if I follow 100 people and they provide great insights, I win.  If new media is like a cocktail party, then throw a small one, invite the best people you can, and have meaningful conversations. 

So. as we conduct more and more searches at Channel Signal, we are becoming less intrigued with a tweeter who has 3,000 followers. Why? Because many of those followers are just hoping to get followed back. There may be no substance to that Twitter account.

To be sure, there are tweeters out there that have thousands of followers who are sincerely interested in the thoughts and experiences of that tweeter. Think Lance Armstrong, especially now since the Tour is happening. However, that is a minority.

Unfortunately here is the thinking of many tweeters:

“So, you follow me and I’ll follow you. I don’t really care about you and I can’t possibly read 3 thousand tweets,  but understand I’m using you to beef up my numbers. I, in turn, am beefing up your numbers, so you should be okay with it,  right?

Wrong. Twitter is a great tool. It broke the news in Mombai, Tehran, China, and in Honduras. It is the national dialogue running underneath our daily lives. It is a great search tool for understanding the discussions around very important topics. Twitter is wonderful and that’s why it is an important Channel in Channel Signal. 

However, we can not let the riff-raff into the conversation. Hit that “block” button that Twitter provides. And don’t feel bad. These people don’t know you, don’t care about you, and aren’t going to read what you write. They are either playing a numbers sales game or they want to beef up their traffic. 

Soon, technology will qualify the number of followers a tweeter has, and who that tweeter is following. Influencers will be judged not only on the quantity of followers but also the quality…particularly the quality. 

From his first and best album, Ram, Paul McCartney wrote a great rocker called Smile Away. “Block” when you don’t want to enter the conversation, say no thanks…and smile away.


Jul 2 2009

Companies Should Not Outsource New Media

                                  ”The biggest threat to companies is not disruptive technology

                                   or global competition but complacency.” Beyond the Brand by John Windsor

 

I’ve had several conversations with companies recently where the leaders have indicated that they are outsourcing new media to their public relations firms. I ask them, “how’s that going for you?” And they reply, ”Well, I assume okay. You know, I really don’t understand this stuff, but they tell me the pr people do.”

Dangerous position.

By outsourcing new media you put another layer between the company and your customers. Which means that you are further from the online conversation about your brand, products, and customer service. At a time when you need to be closer.

You want your customer service reps to be right on top of the customer conversations when praise is given and the pissed-off vent. Right?

And you want your product development people to be talking directly to influencers who have criticisms of a product. And to hear why the zippers are placed wrong on the jacket. And why the hood doesn’t work. And why the shoe laces are too long. Right? 

And your marketing people to listen to why a new brand message isn’t connecting or why the latest advertising is knocking it out of the park. Right?

For years and years and years…I’ve listened to leaders lament how they only wish they could measure advertising in some  way. They always said some variation of this: ” I know I have to spend the money but I sure would like to know what I’m getting for that money.” 

Well, now you can know, in real time. Instant feedback. A sensor placed directly into the marketplace. And you are going to outsource it???  You are going to have a third party decide what feedback is important and what isn’t? To package and then spoon feed you customer information critical to the development of your business?

Thousands of customers everyday are taking the time to talk directly to companies, most with sincerity and a real message. CEOs should shove aside all vendors who want to get in the way of that.

Go ahead Mr./Ms. CEO, get your companies up on the front lines. 

It will change your company, for the good.


May 19 2009

A Ride Down the Wrong Road

I was sent a post the other day by Carson Stanwood, long time PR Guy in the outdoor and bike verticals. It was an article in the Competitive Cyclist about the bike industry and what Specialized and Trek were doing to dramatically reduce inventories of high-end bikes. 

Here it is in a nutshell. Specialized and Trek are both offering over $1000 in a cash back offer to consumers. Participating retailers will need to pony up at least $14,000 to buy the high-end bikes from one of the brands. And retailers are expected to kick-in 45% of the cash back to the consumers.

Bike retailers make about 6% margin on high-end performance bikes. So for this program, when you include buying the inventory, and the 45% of the cash back to the consumer…retailer margins will be somewhere in the area of 2-3%. Not a sustainable business model. 

I hope the rest of the industry will not go this way. Why?

1. We further educate consumers to not only look for huge discounts but to expect them. And there is a big difference in the two. 

2.  This short term solution to a long term problem is bad for business. Long manufacturing lead times are the problem. Sporting goods manufacturers must come up with a production model that can better react to a changing marketplace. Market dynamics will happen again, and again. And the short term solution to an inflated inventory? Deep discounts for an ever smarter consumer base.

3. Manufacturers and retailers need to talk more. What…retailers didn’t pick up on the signs of a recession in the Fall of 2008 when they placed their orders? And by the end of the year when the recession was at full throttle, manufacturers didn’t think to put some real heat on the retailers about their rosy orders?

Here’s a possible path to the solution. Pre-sell.

Manufacturers should get their high-end product protos and product information out there earlier to the retailers and to the public. Create demand. Get the protos into the shops and let the consumers touch and feel them. Let the salespeople get all goofy over these products. Retailers should then take advanced orders and tell consumers that there will be a limited run…so if you want this baby, put your order in now, with a down payment.

Retailer: “Our shop will only be ordering a very few of these bikes over our pre-order number.” Consumer: “Oh, you’d save one for me wouldn’t you?”  Retailer: ” Nope. That’s the reason for the pre-order.”

And manufacturers should use the blogosphere to create the pre-sell buzz. Show your influencers. Let them ride the bike. See all the product info. And they’ll publish. And consumers will read.

The resulting buzz will make it easier for retailers to get commitments from consumers…and retailers, in turn, to make commitments to manufacturers.

What is that I’m smellin. Is that the sizzle?