Now the rush is on to understand and harness this new weapon in the communication arsenal. In New Zealand we need to look no further than Palm Oil/ Cadbury example to see how consumers are already exercising their new found powers; but the question remains: How can Facebook and other social media –consumer driven channels – be used to best effect by brands?

The place to begin, in this humble bloggers opinion, is in the past. It is here you’ll discover who the power players are and how to plan for the future.

According to their own timeline, Facebook started at Harvard University in February 2004. In under a year Facebook had out grown a dorm room and booked into the hub of I.T. start-ups, California; from February to December in their first year of business they had built a network of 1 million users. The following year Facebook added photos and by year end 2005 they had grown five fold to 5.5 million users. By 2007 Microsoft was on board as an investor and Facebook Ads were launched that same year; active users numbered 50 million – As recently as the beginning of 2009 the ubiquitous “like” function was added. Current stats show active Facebook users at 500 million globally; (June 2010) with 50% of those users logging on daily.

NZ Facebook statistics number active users at almost 1.5 Million. (Facebook Ads, April 2010) and rank Facebook as the second most visited site after Google, outranking Trademe (Hitwise Sept 2009)

The point here is 500 million users (globally) or 1.5 Million users (locally) are not going to go away overnight and something that grows so rapidly will have profound affects on time spent on other media channels – You don’t have to be a Harvard graduate to work that out. But what’s more interesting is the demographic movement during this rapid growth and also, the power that early adopters and “geeks” have in this new media.

So rewind: In the beginning, like many other I.T phenomena, Facebook was dominated by young, male, tech-savvy, university graduates… And now with rapid growth fuelled by social networking and the coming of age of a computer literate generation, Facebook’s membership has developed to better reflect a normal population.

In fact, recent New Zealand Statistics show Female users dominate Facebook in this country (56%) and people between the ages 25-54 make up half of local Facebook users (51%). While it’s no surprise that people aged 18-34 make up 50%, a healthy and growing number of people aged 13-17 currently comprise 15% of the New Zealand’s Facebook users. (Facebook Ads April 2010). A recent press release outlining Facebook’s partnership with the U.S. PTA (June 2010) demonstrates this expansion into younger demographics elsewhere and my own experience with nieces and nephews indicates that the floodgates are well and truly open. Watch this space.

You can also track these demographic shifts by looking at Facebook groups and apps; the move from function towards emotion. The class of “04” is giving way to groups that range from crime fighting to Christian affirmations. Facebook includes the tab “Facebook stories” that not only highlights the diversity of the online community, but also the possible social targeting that exists for advertisers. One case study that illustrates this point, available in more detail on Facebook Ads, is CM Photographic’s ability to target their exact demographic — 24-30 year old women whose relationship status on Facebook indicated that they were engaged.

However looking past the obvious – The interesting part is who is calling the shots. “Geeks” and early adopters, including the brands that invest in social media networks have the greatest influence.

Taly Weiss in her article on trendspotting.com “Digital Early Adopters: What has changed?” (March 25,2010) discusses the “screen power” that social media has given to these technology boffins. It’s true that, “Consumers are no longer passive to new technology, but are fast learning – active producers”, and it’s the people that do this best that are the kingmakers. Their influence moves past the realm of technology and it is those that acknowledge this shift that will reap the rewards. Historically you can look to the film, television and radio industries for similar moments that a group has broken through to become significant trend influencers. Brands will be answerable to these early adopters – they have the power to be vocal, globally. They are Oprah’s of the new age.

Understanding social media also is about reflecting on psychological research that has been around for a while. A recent article by by Apurba Sen and Taly Weiss Facebook’s Naked Reality: Social Networks Research Insights on trendspotting.com (July 10th, 2009), discussed the significance of the Dunbar Number in terms of social media

 “ Dr. Robin Dunbar, an anthropologist, concluded that the cognitive power of the brain limits the size of the social network that an individual of any given species can develop. Extrapolating from the brain sizes and social networks of apes, Dr Dunbar suggested that the size of the human brain allows stable networks of about 148. Rounded to 150, this has become famous as “the Dunbar number”.

The article goes on to display graphs that show that regardless of number of facebook “friends” – networks stabilize at approximately this number, supporting Dr. Dunbar’s findings. However it is further on in article that a key insight is revealed; while the Dunbar number holds true for networks within Facebook, the total number of intimate connections is much fewer, from 3-7 people only, with frequency of communication increasing with physical proximity. *(These stats are derived from American research). The message is clear: Think Global – Act Local. Don’t let the Facebook population stats be the only influence on your message – As always cleverness and relevance are the winners in communication

So that’s what’s been. What’s to come?

• My belief is that the focus for marketers and advertisers as always should be relationships, and social media makes interaction with the consumer more instant and potentially more rewarding than ever before; if used in the right way.
• Augmented reality can make the consumer the hero in a way that hasn’t been possible before – appealing to Gen Y and placing power back into the real world interaction – “the truth will out”.
• Even more than ever there will be focus on ROI: Less wastage with more targeted advertising and reporting – this will be true as much for “quick wins” as for investments in building networks, which will be rewarded tenfold.
• There will be a place for lower-fi content on the back of a demand for authenticity and immediacy.
• Brand partnerships will breed content channels.
• Of course in the present the main buzz in social media is around GPS and mobile. The new player Foursquare, which Facebook, Microsoft and Yahoo! have already had a run at acquiring, is leading the race. Expect new developments as mobile devices replace old hardware across the board.

For further opinions and predictions regarding social media and I recommend the slide share on Social Media at trendspotting.com for a good dose.

Finally, what’s important now?

Be found. Make sure your website is at the top of search pages – Advertise your web address, provide links between digital media e.g. Facebook, RSS Feed and Twitter buttons on the homepage of your website and use social media to drive traffic to your online store. Be where your target is; which could include: Facebook, twitter, or mobile apps.

Be sharp. Make sure what you create looks professional and appropriate. A print campaign is not a digital campaign. A TVC online looks like a TVC online – no brownie points there for traditional approaches.

Be relevant. Make sure you are up to date with new products and news. If want to be a leader, be a leader in technology. If it walks like a duck and quacks like a duck – It’s a duck.

Evolve and Interact. Email marketing, texting, promotional micro-sites and dynamic content are all possible and expected. Don’t lose a sale because you don’t follow up or create opportunities to listen to your consumer.

Magnet can create Facebook and mobile applications and has ten years’ experience of great digital communication. Talk to us now about digital vision for your business.

References:

Facebook timeline:

Facebook user stats:

National PTA and Facebook Announce Partnership 

NZ Facebook stats were taken from businessblogs.co.nz: Facebook Statistics for New Zealand

Wikipedia “The Dunbar Number”

Foursquare

Trendspotting articles:

Digital Early Adopters: What has changed?

Facebook’s Naked Reality: Social Networks Research Insights

Social Media slide share

Al’s argument is that “marketing professionals need to more stupidly focused on ROI, [and that this] carries over into the e-mail arena”.

My argument is that often the right questions aren’t asked at the outset when compiling a database, or revisited during the process of data collection and use, and as a result the data and dollars aren’t used to their best advantage.

So what are my questions? What did Al say? And are we stupid?

In my opinion, the first question should always be: “Why are we collecting this data?”

Without a clear purpose the opportunity for effective communication and therefore the marketing dollars spent are wasted. Lazy marketers might choose to just ask for as much information as possible, but when strategic thinking isn’t used at the outset you run the risk of becoming data rich and information poor – A well thought out approach has a flow on effect that means communication stays relevant and customers don’t feel interrogated. Al discusses one possible outcome of lazy marketing which he terms the “spray and pray school of thought”. He makes the point that consumers are tired of inbox clutter, are quick to recognize this type of communication as SPAM, and points out to get the best value for money you need to smarter than this.

My next question is so logical; it could be described as stupid. It is: “What do we intend to use the data for?”

Collection without action again results in waste. I love Al’s term: “analysis paralysis marketers”, which he gives to the data crunchers who spend time and dollars focused only “on the data itself, rather than on data driven campaign strategy and execution”. Execution; I’ll say it again, stupid – Execution.

Also necessary to consider are the expectations of the consumer who is giving us the information. Data may come in the form of letters and numbers, but the marketer who is interested in getting more bang for their buck by way of a relationship needs to ask the question: What does the consumer expect in return for this information?

The Wikipedia definition is a good place to get an overview of the capabilities of database marketing, but interestingly I also think the information contained in the Wiki definition is relevant when the question of consumer expectations comes up.

Reading the Wikipedia entry with this in mind, in the digital space it is realistic for consumers to expect a personalized experience that goes past a “Dear…[fill in the blank]” in the opening address. For consumers today, real-time business intelligence is also a bottom line. A basic example might be: You just bought a tent – Do you need a portable bbq? As opposed to: You just bought a tent – Do you want to buy a tent? Which in turns begs the question: What am I? – Stupid?? Current technology also makes it possible to tailor make a newsletter that makes sense with pictures or without – so arguably, it should. However Al makes a good point in his article that often simple Web site integration isn’t even up to scratch. Weakness in design and wavering strategy means a link from an e-mail might lead somewhere completely unexpected – The result: A potential customer let off the hook.  A simple thing like poor navigation can lead to buyer abandonment and more wasted dollars.

…And still on expectations…What about missed opportunity! Here is a customer/ potential customer who is expecting to be contacted – And tragically this brings me to my next, often stupidly unasked, question: “When are we intending to use the data?”

A timeline is crucial. The longer data goes unused the more likely it will be past its use by date. If you are intending to have a considerable lag time between communications – have the courtesy to manage that expectation too.

A good illustration of how the questions of purpose, expectation and timing come together to enhance sales strategy, brings me back to Al Diguido’s article. Al makes a good point here about order confirmation and shipping emails. Here are pieces of expected communication that perversely are underutilized. More often than not automated – the customer waits and opens this vital piece of information. A good communication strategy should see these as another opportunity for further up-selling or cross-selling. By answering the earlier questions “What do we intend to use the data for?”, “What are the consumer expectations?” and “When will it be used?” this opportunity could be identified and used to add value to the sale.

Finally and simply, asking: “What method of collection and communication will we be using?” will help to inform the data gathered. If the answer is e-mail, mobile or online then an experienced interactive team can help to streamline this process. Data that is presented in digital format delivers information that can be quickly filtered to produce targeted and personalized communication. Automated services can shave man-hours and dollars off marketing budgets.

The questions that are asked at the outset of any Database Marketing campaign are an important part of achieving good value for money. Today the opportunities exist to form lasting direct communication with customers and potential customers – to reward and inform – and ultimately sell product.

Did I say SELL product?  I’d be stupid if I didn’t.

Magnet designs and manages database and email marketing in-house

Please find the links to Al Diguido’s article and the Wikipedia definition of Database Marketing below.

http://www.dmnews.com/be-stupid-its-all-about-roi/article/167828/

http://en.wikipedia.org/wiki/Database_marketing

The article began by stating “Mobile text messaging … may be the closest thing in the information-overloaded digital marketing world to a guaranteed read”

The numbers supported this with 97 percent of all SMS marketing messages opened (83 percent within one hour), according to their latest cell-carrier research.

- Impressive statistics.

NZ mobile phone ownership (there are officially more mobile phones than people), shows that this data could be a good indicator for the potency of our own SMS marketing. Certainly the indicators are there with high profile success of brand leader text campaigns and also the trickle down effect in evidence, with New Zealand government services using the medium to good effect.

It’s worth noting as the NY Times article highlights that “texting isn’t for kids anymore”. New Zealand’s self described “ICT research hub”  – iStart concurs citing that “among key advertiser demographics in the US, text messaging is used by 85 per cent of 18-29 year olds and 65 per cent of 30-49 year olds. However, in Europe, the average is 85 per cent across all ages.”

So – Effective: Yes. Always: No. As with any marketing strategy there’s a right and wrong way of doing things.

* Marketers need to keep in mind that “SMS is really more about long-term relationship building than the quick hit”. Have a clear strategy and know what your follow up will be.
* Rule of thumb is that it’s better to have customers’ text you to begin with. That’s old school “foot in the door”.
* If you do communicate first make it relevant and timely…the accepted wisdom is that it’s better to give them something. Examples might be a coupon, gym pass or discount.
* Simple stuff like how you communicate or pick your short code or codes count. If you include speech marks they’ll be texted. If you use certain combinations of letters you may get some nasty marketing surprises. A good technical advisor will help avoid these traps.
* Admit that you’re battling the cynics. People don’t give out their phone numbers without their reservations. Prove you deserve their trust. Don’t text them too much. Show you care what they think. Voting can work well.

The good news is that the space is still relatively uncluttered. iStart and MyMobile polled their subscriber bases and concluded that the New Zealand SMS market potential remains largely untapped.

Combined with a traditional marketing or used alone texting is an effective medium for building a customer database, is a direct line to an increasing fragmented marketplace and ultimately reaches people on the move. Great applications are at large scale events where mass texting can be used or as part of an ongoing service – I have enjoyed one day cricket updates in the past.

Magnet can deliver text to win campaigns and database management in-house.

Read the New York Times and iStart articles below:
http://www.istart.co.nz/index/HM20/PC0/PVC197/EX245/AR211450
http://www.nytimes.com/2009/09/24/business/smallbusiness/24texting.html?_r=1&pagewanted=2

Each time a new promotion or updating an existing campaign, there is always the following basics

• Getting a valid list of subscribers,
• Creating the promotion message & theme, and
• Ensuring the email is received to those on that list.

Once the basics are covered, steps are taken to where an email campaign is considered a conversation between our client and their customers, and not an invasion. This builds brand awareness, strengthens relationships, and encourages loyalty.

So how do we make a good email marketing campaign GREAT?

A direct subject line and consistent branding

A direct subject line should be specific and spell out the email’s contents. This gives a good reason for the customer to open your email and avoids guessing at the ‘whos’or ‘whats’ of the message.

Customers are more likely to open an email when they know who its from and what to expect. Make sure logos and company branding is placed prominently in the campaign. Consistent themes, styles, and links to your landing pages reinforce branding. The start of the subject line can be effectively used as for this purpose too. For example, “Latest news from Magnet Design: Register now and get 10% off”.

Know your customers

“Dear [first-name]” on top of the email is not considered personalization anymore. Using various tools and custom fields, figure out what your subscribers are interested in and segment them into smaller groups.
E.g., when Amazon sends me an email that contains book recommendations based on my previous purchases, I usually visit their website and browse through the new listings. Yay! So I am an individual and not just a number on their subscriber’s list.

More than two display versions

Creating a campaign that sends HTML and text versions so the right version shows up in the right place is great. But what about the third display version. Yes, that’s right – it’s the “Don’t Display Images” option on most email programs and the subscriber may have it switched on. Make sure your email still makes sense and does its job even without the images.

Start the conversation early

It is important to put a lot of attention when laying out your email’s content. Make sure your logo is clearly visible and you’ve introduced your email’s topic or theme early. Put important links near the top in case a quick preview is all someone needs to inquire, purchase, sign up or learn more. A few well chosen words can be more effective and prevent your readers work to figure out what your email is about.

3D Secure process improves the security of Internet payments by allowing authentication of cardholders by their issuers during an online purchase thus, reducing the likelihood of fraudulent usage of credit cards.

How Does 3D Secure Work?

During an online purchase, the cardholder enters their credit card details which are captured by the participating online store. These details are redirected to a Payment Server where it is determined whether the cardholder is enrolled in 3-D Secure. If the customer is enrolled, they are redirected to the website of the card issuing bank to authenticate the transaction. If this authentication process is successful, then the payment proceeds otherwise the transaction is declined.

If the customer is not enrolled then depending on the implementations by the merchant, the customer is either re-directed to an enrollment form or the online purchase can proceed as normal.

Contact us to discuss how we can help you integrate the latest 3D Secure technology. Read our case study to find out more.