“Holding a contest DOES NOT bring in new customers that want to buy. It brings in NEW CHEAP PEOPLE who want to WIN FREE SHIT.”

Well said. I had to learn this the hard way. Holding contests and giveaways was a good way to drive traffic to my blog, but much of that traffic wasn’t worth having. I still think promotions are great, but only if they’re relevant to your current customers (and if they don’t encourage Twitter spamming, of course.)

You’re right. It’s simple. Hit the nail on the head with #5. I see this all the time – companies that are only interested in getting new customers, not taking care of the ones they have. Do the math – if you treat your current customers very well, they’re likely to engage with you AND spread the word. It’s much more costly to replace customers than retain them.

I don’t 100% get it…yet. I’m working on it, and your comments in #1, #2 and #4 will have the most impact for me. Thanks!

I completely agree with the conversations and engagement bit. Some people say that brands should be more humanizing, I don’t care much about who the person is on the other end as long as they are helping.

And I also have noticed the script dilemma, I usually just hang up and call back so I can get someone who actually can think instead of just read.

Nicely done.

Most are lucky to recover from 2 strikes never mind three. Off to cancel my f’reebie super saver promo flash spectacular for first ten new followers.’

I found this post refreshing and informative. A clear statement midst the social media blather.

i love it when you shoot straight. and you’re not the only one who “cleans house” when it comes to followers and who i’m following. i do it regularly. people think i’m crazy. of course i tell them it’s cup-size envy ;-) add value, not followers.

Reading this makes me want to jump on top of my desk and shout “Peter! Peter! Peter!” while waving my arms like a crazy person. Thank you for being a steady voice of reason who people will actually listen to. Nominating this post for our Jan topic at SMC Jacksonville. Do you want to join us? :)

Couldn’t agree more. At the end of the day, it’s all about service and responsiveness. Verizon deserves to be on the receiving end of a flame for that triple-fail. (Oh and BTW, it’s “brusque” not “brusk” :-))

Shank, you are so ON! I recently listened to a true expert discussing the differences between Social Media and Social Marketing, and how we (salespeople) need to get a clue in discerning the difference. We need to add value to our relationships with clients that “get it”, and separate ourselves from mass consciousness. You’re a stud.

A good rap across our marketing knuckles, Peter.

It’s not that hard if you think about it. The problem seems to be that many companies don’t think about it.

I’m not a fan of Verizon’s CS, so I’m not surprised that even their PR company is just as responsive.

Absolutely love the rawness and truth of this post! I’m so sick of people wanting to do a giveaway to gain traction. Can’t we just create engaging products and content? Have we no creativity and money generating ideas anymore? So much to the point that we have to give away an ipad? I would be curious to know the amount of iPads that has been given away through social media compared to the amount sold!!

Re: your #5, a social media customer service success story – I had bought the mac-daddy Kenmore Pro dishwasher, which was DOA on install – they took my old but still working dishwasher and replaced it with a rock! The installer couldn’t fix it, and regular Sears repair “script readers” quoted me 3 weeks to get a tech out. I tweeted @DougMoore_Sears (SVP of home appliances) who got @SearsBlueCrewHA on the case. Tech out the next day, fixed the broken wire, gave me a $75 gift card for my troubles. Thanks to Doug for breaking the “impenetrable wall of stupid” – I hope they use the experience to find a way to routinely escalate cases like mine.

This is actually game changing for me. Great post.
SM. Has always been about pre-revenue relationships for me. But it’s good to see the opposite perspectives as well.

…and this is why I love you, Pete. Basic #2 alone could completely change the effectiveness of jillions of corporate social media strategies.

Thank you Peter for raising these great points! My only addition is that social media marketing is about making emotional connections with customers by telling them WHY – Why it matters, Why it can help them, Why now! Too many marketers try to push their stuff on you without providing compelling content that inspires you to buy. Instead of bragging about a product, tell them why. The WHY is the secret to sales!

Yes… too many people think that quantity is more important than quality when it comes to social networking contacts. There are so many spammers out there that just connect with hundreds of people daily looking for one sale (and not a relationship).
As for #2, I read a fascinating article recently that supported your views on that. Has to do with all those new “discount” sites that get you to buy 1/2 price certificates to various restaurants, spas, etc… People looking for “cheap” meals or massages – who probably won’t turn into loyal customers – cause who wants to pay full price the second time if they paid 1/2 the first time? The actual branding…. the site itself! Few customers refer the places/services – but everyone’s Twittering and posting about the discount site! And who suffers? The businesses offering the services, it backfires on them because they can’t fulfill the demand they thought they wanted!
I’m not totally sure how to make money off SN; I offer information and support my clients through it… I guess it’s a process, especially if you’re a solopreneur!
Thanks for the insights!

No humans. First name that pops into mind is Bank of America. How can they possibly grow so large when they stink at customer service?

My issue is companies that can’t see beyond Facebook & Twitter. Social media tends to be used to define putting something up on an existing network. As powerful as this can be, your depth of reach is limited. If you want your customers to get passionate and engaged, focus on social networking – building functionality into your own site to allow discussions, commenting, sharing, voting, and posting of UGC.

Facebook is a mile wide and an inch deep. Your Facebook page is your entry point to your own site. Content on your site gets posted to Twitter as a promotion. Don’t just do Twitter and Facebook. Go all in.

Peter, I guess what bothers me about this is that people like you (and me) have been saying this for, oh, fifteen years or so now – long before there was such a concept as “social media.” These are the same people who didn’t see why they had to be on that Internet thingie anyway, to whom “e-mail” was something their secretaries/assistants did. Smart? Sure; a lot of the people we spoke to ran agencies and engineered big traditional campaigns. Understanding the emerging social marketplace? Not so much.

Peter-

This is why in many cases big, plodding, small picture ROI-obsessed companies are getting out-worked and out-hustled by entrepreneurs.

I firmly believe the advantage in social media is personal. Connecting with other people. Not saying all brands are doing it poorly, but if creating likeminded relationships is a priority, it is hard to hang out, talk with, engage, whatever the heck you want to call it…with a logo.

@Josh McCormack – I’m intrigued by your concept of ‘going all in’ in social media. Can you elaborate on how to build UGC? If you prefer off line, email to lauren@resumayday.com. Thanks!

Peter,

I’m championing that little list of yours starting today. Good stuff. Way to turn on a fan in the humid, nasty bathroom that is traditional marketing meets social web.

I’ve never read your stuff until today. That was smart and awesome. Definitely going to be stalking you for a while.

Thanks,
Andrew

It really shouldn’t be that hard to figure out. Yet many people still won’t figure it out, ever. Just look at e-mail, there are so many organizations out there that still don’t get e-mail marketing. A lot of people just want to take the easy way out without really understanding what they are doing or why.

So true, spot on! It’s amazing how some multinationals still have not decided what their global digital strategy is or how marketers should work together with PR experts in communications departments. The reason is that there is a lack of understanding how to integrate social media lesser maybe in marketing plans but more in corporate PR plans. There is a huge opportunity for PR experts.

Very well said sir. I especially like your Verizon example. Unfortunately that story is played too often.

“Everything we do in social media should be tied, in some way, to generating revenue.” Yes, but making that connection for a CEO may not be as easy as you suggest. Using social media to listen to, and engage, audiences will impact revenue, but the connection may be indirect. A leads to B, which results in C. “B” in this case may be increased trust or customer satisfaction, which some would describe as “make people like us.” No?

Kudos, Peter for pointing out the offenders (yes, I mean you, VERIZON) who “just gotta be there” on Twitter, then use SM as strictly one more way to alienate customers. At least they’re consistent across all media when it comes to post-acquisition retention efforts.

1. Absolutely
2. Absolutely
3. Couldn’t agree more unless you’re giving away stuff to get customers to follow you in a new way to engage with them even more or m otivating them to bring you more customers.
4. Huh? conversation is of no value unless the company is standing there with some reward and I’m in front of the cash register ready to buy? Are you sure you don’t want to re-think that one? Conversation (buzz) creates excitement about products! Apple, anyone? Yes, customers want rewards and they sure want you to listen to them when they have an issue but conversation-buzz-storytelling is how companies convey their products advantages in the marketplace. If the story is compelling, I’m going to re-tell that story over beer after work on Friday and might generate a sale for you with my friends, who trust my opinion more that your ad, even if I’m not ready to buy myself just yet. Trying to SELL every time you engage with your customers is a sure-fire way to DISENGAGE but everyone likes a good story, stories create excitement, and excited customers buy because they think it was their brilliant idea.
5. In a perfect world companies would handle customers with unwavering accuracy and no one would ever say anything bad about them but all companies drop the ball sometimes. no amount of training will completely eliminate that. You are right to say social media should not be the go-to guy but it has tremendous value in finding those “ball-dropped” customers that are unhappy and then demonstrating that mistakes are made but can be corrected. The real failure is to continue to fail as Verizon did in your example. A failure found and corrected shows commitment to customer service. A triple play failure shows no commitment to the customer at all.

Thanks for sharing that a holding a contest DOES NOT bring in new customers that want to buy. It brings in NEW CHEAP PEOPLE who want to WIN FREE SHIT.. 

And you are so right on that ITS NOT OK to chang “marketing” to “social media?” Everything we do in social media should be tied, in some way, to generating revenue.

Please keep delivering great ideas and sharing them which helps us all out a lot.

By the way, if it’s OK with you I’d like to add that no marketing plan or marketing calendar should be set in stone!

If history has taught us anyting, no matter how effective your plan may be, chances are, it will have to be altered at a given time; due to what your competitor(s), clients, future clients or suppliers are doing.

Here’s the kicker, don’t feel as if you have to be a psychic. Don’t feel overwhelmed at the thought of needing a business and marketing plan so flexible that it takes away from the overall aim and goals that made you ‘hungry’ to market your particular business, product, service or idea in the first place!

No doubt about it, there’s an easy way to be sure that you can continue to have success in the future – if you just start off with flexibility in mind! The best way to do so is to have a marketing plan and marketing calendar that is flexible and built to adjust itself when the time comes to do so.

Respectfully,
Sandy Barris
Fast Marketing Plan.com
http://www.FastMarketingPlan.com

A great post…thank you for writing this. I think that I may have taken a meeting with same “Smart” people. Connecting with people is very different that traditional marketing.

Truly it is time to forget about superficial prizes…the best rewards include time, respect and perhaps access or even participation behind the scenes.

…btw…I actually spend time blocking people from twitter. What’s more important who you follow or who follows you?

“CONVERSATIONS happen over beers. ENGAGEMENT happens over cash registers.”

that line is worth $100,000+ annually to *any* business that internalizes it.

I enjoyed reading this. As I try to find a position in this myriad of social network choices available, I find that many corporate social profiles are just an illusion. Most of the profiles aren’t any different than creating a profile for your cat. Random and impersonal updates with only the purpose of selling more junk that I don’t need. I find it disappointing to follow someone only to find out that it isn’t what it appears. We need the personal connection in social media. I think.

“I’ll actually DM some followers who have never interacted with me and ask them if they’re finding value in my tweets, posts, or the like.”

ACK! I’m wracking my brain to remember if I have ever actually interacted with you, as in @ — other than RTs. Because I’m here listening, reading, thinking, admiring, agreeing… Value? Yes, so much value. Keep me.

And as always — brilliant post. You have seemed irked the last couple of days. I get it.

So happy I don’t have to go buy an iPad to give away, when I don’t even have one myself yet!! Thanks for the heads up.

I just forwarded to our social media firm. They need to get “IT” too.

F*&@ Verizon

Basic #4 hits home and is something I am going to help my clients work on. We have been looking for ways to engage current customers through social media. I am going to try it myself with my own business as well. Thank you for the insight!

So important today… we work on number five and try to be cognizant of all our customers conversations about us, positive and negative, on Twitter and otherwise. This is the best way we can make sure no one is going unanswered. Thank you for such a great post!

Looking at the Verizon example was interesting.

Let’s look at one of their recent tweets:
~~~~~~~~~~~~~~~~
Take the FiOS experience mobile w/ Verizon’s latest app,Mobile Remote. Turn your mobile phone into a remote control http://bit.ly/ddNgeA ^DH
~~~~~~~~~~~~~~~~

That tweet has been around for a couple of weeks now. How many people clicked on the link?

The way to find out is to add a ‘+’ sign to the end of the link.

So we go to: http://bit.ly/ddNgeA+ .. and find that that link only had 35 clicks … out of a 12803 twitter followers. The link underneath it only had 86 clicks (only counting ones shorted by bit.ly)

Is it really effective marketing to send a message to extra 35 people ?

Mac

Thank you!

I mean that with conviction. We were discussing a contest this week, and the idea has been shifted now towards showing love to the people on the site already, where it should be.

Oddly, I think we all knew “It brings in NEW CHEAP PEOPLE who want to WIN FREE SHIT”, but we needed serious validation to stop us from making a mistake twice.

You rock man,
Steven
Voice123

Please, please, please let social media be the force that brings back real customer service! The Verizon story is priceless.

Companies forget that their customers consume what they want, when they want where they want. The companies job is to provide their customers what they are looking for when they are looking for it and where they are looking for it. So, in social media you have to use the site your customers use (FACEBOOK, TWITTER, fouresquare, kangalope etc…) provide them content they find interesting and valuable, and that they actually have to use the medium and listen to the feedback provided. I know, an odd concept. stop looking for the cheap quick fix, make the commitment to do your best work.

LOVE the conversation vs. engagement argument. Brilliant!

I get it. And I concur with you on #5, Verizon. They really upset me too. We have five, count them, five phone, (family) with them. I recently went in with my LG phone and wanted to upgrade. Guess what my “contract” doesn’t allow me to until next March. Really?? then what am I supposed to do with this phone that shuts off while I’m in the middle of talking to a client or interviewing someone?? I said well what if I went to Best Buy or online and bought a phone, will you turn it on then? Will there be an activation fee???Of course.
But what really ticked me off was they then tried to sell me the same model phone I already had and didn’t like. I even told them in front of customers what I thought about it.
I told them I could buy a Droid X online for only $187 why were they wanting to charge me $500?? seriously?
Then they were going to sell me a pre-certified phone, huh? why? why can’t i buy a new phone at a decent rate? We have options people VERIZON, are you listening?? Just like whom we choose to fly with.
thank you for letting me vent here.

#5 is crucial. Everyone wants to know that they are talking to a real person and not some emotionless corporate machine. Also, I noticed that businesses that engage in conversation with their followers are utilizing socia media better rather than those that just update tibits of information. They’re a lot more entertaining to follow and it’s fantastic when you get responded to!

Unfortunately like everything else in America the perception of bigger (more) equates to being better. A 50oz steak is much better than an 8oz steak; making 2 million dollars is better than 1 million; being more popular means more money…So naturally, being embedded in this bigger-is-better culture, why wouldn’t these “smart” people think that if someone has a huge following on twitter or millions of fans on Facebook, that it wouldn’t translate into lots of money?

I believe, it’s not just social media that America lacks understanding on – it’s also business in general. Everyday you see businesses being propped up as 300-400 million dollar companies – which in the eyes of many equals money and success. When, in reality, you look behind the scenes at the underlying financials they’re 200 million in the hole. The perception is much different than what is actually happening.

From a business perspective, social media is just another channel of marketing and way to interact with the people/customers in your social network. I believe it’s meant to compliment your other marketing efforts but is not the end-all be-all. But I do believe there is some merit to having a huge following or social network – even if it is only perception – rightly or wrongly…

From your perspective Peter, how much of your success do you think is a result of social media? Would you be able to generate the 7 figure ad revenue you do if you didn’t have the following that, although you put in a tremendous amount of effort, social media helped you build? What about all the speaking/consulting gigs you get – can you honestly say that having a huge following has no greater impact on your success than if you had only 8 followers and friends that were really engaging? Do you think Vocus would have still acquired you if your social network was a small percentage of what it is now?

Without having a huge following or social network I can’t find anyone or business who has actually been able to translate their use of social media into money.

I would love to know of some successes and how they are doing it if you or anyone else knows of proven case studies or success stories.

Peter thanks in advance for your quick reply, unlike Verizon:) Continue the great commentary…

Unlike Verizon, there are companies that work hard to keep customers happy.

I had a company ship the wrong book to me last month (an easy mistake — the title and cover were very similar). When notified by Internet form of their error, they sent the correct book immediately with priority shipping. I gave them a five-star rating, and would use them again in an instant.

Just today, I had an airline accidentally change my reservation to the wrong month. It was a pretty stupid mistake, but when I spotted it in the confirmation email and gave them a call, they were very quick to make it right. They will keep my business.

On the other hand, I have horror stories about phone menu hell at Comcast.

yes, Yes, YES!!!!

Shankeman, you have chutzpah and moxie! Well said well taken!

Oh…the timing of this is uncanny as I do PR (in my day job) for an internet marketing company that doesn’t have a blog, facebook, or twitter pages. For months, I have been embroiled in an ongoing debate with senior management about why this is and the answer I keep getting is “that it will only give people more opportunity to bad mouth us.” Ugh. I keep trying to explain that there are always going to be people who are bad mouthing us, but wouldn’t it be better to listen to what they’re saying and be in a position to respond? Wouldn’t it be better to be like the companies that have staff monitoring Twitter and FB who respond IMMEDIATELY to customer complaints? Haven’t you ever noticed that those companies are the ones that start getting all the love, and usually from the people who were doing the bad mouthing, because they are now a HAPPY customer and are going to tell everyone they know, which, across a social media network, is HUGE? The answer? Still no. Blows my mind.

I had a similar problem with T-Mobile, and got no return call from the store manager or his supervisor, called the 800 and left two complaints, then finally had to–get this–wait for it–’write a letter and mail it’. Guess what? I got a canned response but did get $50 off my bill, which I’ll believe when I see it.

Here’s how I think Social Media/Networking should work (mainly for smaller businesses, there are about 20 million or so). Go to Google, run a search for a plumber, before you see Google results, you see suggestions from YOUR friend network. Tell me, who would choose a computer generated plumber ad (or result) over a plumber recommended by a friend or friend of a friend? Nobody! Oh, don’t waste your time trying to create this, I’ve already done it. Not trying to plug my own stuff (mogoe.com), but you asked.

Thank you Peter!!#2 especially hit home for me. Never thought of it that way before – just figured get the word out and that would be great. But if they are only looking for free stuff – they are not going to shop.

Thank you!

Your Verizon story in #5 can be wrapped up by #3 = The number of followers you have doesn’t matter to them or their silly PR Company!

Boom, roasted!

Stewie! Is there anything else that needs to be said? Jk
I appreciated the comment on giveaways and couldn’t agree more! Thanks for the straight forward talk!

Hey Peter, If you’re a “huge Apple fan” why are you trying to buy a full priced Blackberry…?
…and this from one who just traded hers in for an iPhone.

Peter–you simply rock! Spot on, fearless post, and a great smack upside the head.

I’ve never had a good experience with Verizon the company anywhere or any time, other than its labor force is probably much more competent than management thinks. But management is not competent enough to properly use its workers. The monopoly attitude persists no matter which medium Verizon uses, and there seems to be a huge issue of entitlement within the company.

Peter, that kind of common sense is uncommon. Er, say, can I pick your brain sometime? Over lunch, your treat. Ha ha, just kidding!

Great post. I could not agree more. Back to the basics of what really matters. Thanks for putting it all in perspective!

It’s funny to see how many people think social media negates the basic rules of business, and marketing in particular. Thanks for the reminder that it’s all about meeting the needs of customers. (social media must allows it to happen faster)

Great read for newbies to social media, a great reminder for those already using social media, and a strong smack on the rear end to combine social media with good old-fashioned branding/marketing/PR that works for your brand and your target customers. Brutally honest, wonderfully penned. Gracias/Thank you Mr. Shankman!

Perfect – Thank you for stating the facts so clearly! I’m not in 100% understanding of the social media process, but I’m learning and seeking out new ways to make it work for our small medical practice. It’s nice to see posts like this that get straight to the heart of the matter. Thank you!

Sure, we’ll get it eventually (ok maybe not everyone). Remember when the success of a website was measured in hits?

Excellent article. Love the honesty and directness. I have to say that even though some of us don’t comment we learn from your articles/tweets. Thank you!

These are very interesting points, Peter. Thanks for sharing your perspective and expertise.

Great reminder that we need to be applying basic marketing sense to social media! Google Alerts are how I “listen” to what customers are saying about me; social media sites are where I find new & interesting stuff to draw attention to something I sell!

I agree completely with 1-4, but have one addendum for #5: some companies won’t change for a while yet, because it’s all about the money. Spending $$ and time to reach out to you then failing to follow through is its own failure, but simply alienating existing customers just isn’t all that financially damaging for certain companies – most people won’t change providers even when the service is crappy, because there aren’t alternatives that meet our needs cheaply enough or well enough.

When we have more choices, CS will re-emerge as being a major differentiator between companies, and I agree that anyone who doesn’t want to be left behind should start to work towards that *now*, but they’re banking on the change being far enough away that they still have time. Companies can’t use SM to create meaningful relationships with customers when they don’t care, but they won’t care until being jerks costs them more $$.

Places with more fungible services, though, are where the movement on this is, and I think it’s really starting to show. Esurance helps those of us who just want car insurance to comply with the law, but State Farm & Allstate are pushing for a return to agents and personal connection, for those of us who want more than the legally-required minimum. Whether a given agent is actually good or not is its own question, but at least their marketing is reflecting the change.

I agree wholeheartedly with 1-4, but have one addendum for #5: some companies don’t care yet, because they have no financial reason to. Spending $$ and time to reach out to you then not following through is its own failure, but simply alienating existing customers just isn’t all that financially damaging for certain companies – most people won’t change providers even when the service is astonishingly crappy, because there aren’t alternatives that meet our needs cheaply enough or well enough.

When we have more choices, CS will re-emerge as being a major differentiator between companies, and I agree that anyone who doesn’t want to be left behind should start to work towards that *now*, but they’re banking on the change being far enough away that they still have time. I agree that companies can’t use SM to create meaningful relationships with customers when they don’t care, but they won’t care until being jerks costs them more $$.

Places with more fungible services, though, are where the movement on this is, and I think it’s really starting to show. Esurance helps those of us who just want car insurance to comply with the law, but State Farm & Allstate are pushing for a return to agents and personal connection, for those of us who want more than the legally-required minimum. Whether a given agent is actually good or not is its own question, but at least their marketing is reflecting the change.

Peter, wonderful!

First. If a business owner’s a jerk, the business is likely to reflect that. If the owner’s goal is only to make money, the company will reflect that. If the company focuses on making life better for the client, charges a fair price (not cheap, fair), and they treat people ala The Golden Rule, then success usually follows. The advertising, PR, and SM used will reflect the values of the company. Period.

What you focus on is what gets stronger.

What works in all cases, and your blog proves this point, is telling stories. We love to hear and read stories. That’s why you(PS) start your HARO with a personal story. I’ve asked you for a headline to get me into it because as a person when I see all that copy, my brain says “that’s too much to read.” THAT’s why it needs a headline. But when I HAPPEN to get into it and get to the end, like this time, and click through I get a good result. Perhaps if I read more (and were encouraged to do that) I’d get even more.

Verizon. Personally, I have great success with them. The folks I call on the phone to help with problems, thoughts, etc., are friendly, conversational, not on script, and extremely helpful. So much so, that I NEVER go into one of their stores anymore. Where I find the service impersonal and SELL, SELL, SELL. Who ever is in charge of their online help should take over the instore operations. The problem is not Verizon, per se, it is the group/person/philosophy running their instore operations. They have a tremendously successful group on the phone. So much so, that I constantly praise my Verizon service and won’t get an iPhone because I hated my on-phone experiences with AT&T.

Here’s how I use SM with a client of mine.
Dr. L is a pediatrician.
We have our SM set up so when he writes a blog, it loads on his website as a news article and is archived, a Tweet is sent out driving folks to his Facebook where a shortened version is on the wall which then drives them to his website to read the blog. No one ever goes to the blog site, it is simply an engine. Since this is a medical website, we do not want public opinions posted. We want people to come to the site for information. Mothers, the vast majority of our SM users, get their flu shot scheduling information in this manner. We also send a commercial-service email to our list of patient families to promote upcoming sign up events, things that are only of in-family interest. Our families love the system. Within one minute of the emails/tweets being sent out, we start to get phone calls in the office from mothers to sign up their children for shots. We also get phone calls from across the country about specific problems. While we can’t turn those into in-office clients, we do have books we sell and are about to go on line with SpotOnLineLearning to create courses and classes that will have universal value. During the Swine Flu fiasco, we used this system to assure them from the beginning this was likely a media-driven scenario and not to worry. Our information was forwarded by our mothers to their friends not in the practice and also those in other cities.

The key to this success is not SM. SM is the tool. The key is the content. Information, stories, and how-to. We give some knowledge away and that encourages folks to buy more.

The most successful site I have run across recently is Bits du Jour. Why? Because they have caused me to spend about $500 on software in the last 3 months. Their deal is to have a one-day-only sale, they drive folks to the company websites for info, but the most important thing they do is allow me to download a 30-day trial of the software, fully functioning, for free. I have decided NOT to buy 3 programs I’ve downloaded and I’ve bought a dozen I HAVE downloaded. Someone sent me the link. They use SM to tell folks what’s on sale, when it’s going to be on sale, and invite them to request an alert be delivered on the day of the sale so they dont’ forget to buy. (The products are never offered again on sale — buy the special or buy full price later)

So, Peter, SM is important. But it is NOT what folks thought it was. It is what it is. It’s up to us (listening to gurus like you) (and others) to figure out the best way to use it. Information, stories, and how-to still work best.

Thanks for the great article.

(consider headlines?)

Marvelous post, Peter. I’d share with my clients but most would never recognize themselves. I do differ in my opinion of contests though. I manage the FB page for a client and we’ve run 3 successful contests. I announce them to inspire new “likes”, when we hit the numerical target, we run the contest. I pose an interesting question, the only criteria is that they post a “comment” in reply. The prize is a meaningful quantity of the product the client manufactures. The participation has amazed me! People write poems, love sonnets, heartfelt comments. All of it is unnecessary, the winner is chosen at random, the comment could be a single word and it would suffice. But they have a desire to express themselves, I think mainly for each other. So our contests generate new “likes” to the page, deep engagement and a full circle of creativity. We ask the winners to send us a photo of what they’ve created with their prize. We’ve seen direct increases in class enrollment, tours, product sales, distributorship inquiries……I am content however learning all the time. Which is why I so appreciate your wicked smart mind. Thank you!

as I slowly learn this, I question, then… how do you make money on FB & Twitter? Or is it just a ongoing ‘conversation’? The question is, how much time do you spend tweeting when the business must go on!

OMG, love, Love, LOVE you wisdom-filled comments and sage advice, although I admit, these are my favorites: “Holding a contest DOES NOT bring in new customers that want to buy. It brings in NEW CHEAP PEOPLE who want to WIN FREE SHIT.” No one can say it quite like you, Peter!

I couldn’t agree more or said it better about Verizon. I am now debating whether to pay to get out of contracts with them, or just wait until they expire. Hey Verizon, there are a lot of competitors out there!

Interesting.

On point #4 – A bit of a distinction without a difference here. conversation engenders engagement. a lady needs to be wooed surely.

On point #5 – The problem with social media channels for businesses: scale. How quickly were you expecting to get a response? How entitled were you as a customer? Do you think you were being reasonable?

Just some thoughts.

I disagree with one point. #2 – “YOU DON’T MAKE MONEY WITH CONTESTS, PROMOTIONS, OR FREE STUFF.”

There are many points in a businesses life cycle in which contests & promotions work extremely well. They have to be geared to the right people, with the right prize or deal attached. No broad promos giving stuff away for free or cheap to irrelevant people. But concise targeted promos/contests work well and sometimes for very little cost. For instance, launching a new business, or adding a new product offering.

That all being said, I completely agree with you and would like to add to your point about doing promotions for current customers. Facebook has worked very well for this kind of promotion as it is a good place to remind our current customers about us and get them talking about our community involvement and caring. We’ve found that a couple hundred dollars worth of prizes can really stir up a lot of gratitude and discussion amongst current fans.

When it comes to giving something away – current customers are the only way to go. Sitting at a conference giving away free shit to every passerby is useless. If you want to give something away to a prospect you have every right to expect something in return. Contact information, a conversation, a consideration, or an actual transaction.

Now, I work for businesses that rely very much on location & community – so I imagine these things might not work as well for huge companies…who’s customers, like you, might not give a crap about any of that stuff.

I have a question for you though: What do you do to satisfy the client that is constantly and consistently looking for their fans and followers to be growing – and expect you to make it happen?

Well said! This is the first article I’ve ever read from you and I’m glad I took the time to read it. If your other stuff is half this good you have a new loyal reader.

I think this goes to a bigger point. I’ve owned various businesses for 10 years and the number one thing I look for in employees, vendors, and even clients is the “Get It” factor. I’m starting to believe either people get it or they don’t no matter what you say.

Thanks for sharing!

@greghartle

Peter –

I agree that a lot of people don’t get it (myself at least partly included) but it is a lot easier to say what does not work than what does. I agree on contests not necessarily bringing in new quality, converting users and that a Twitter page is a terrible thing to waste….but this post, at least for me, does more to say whats wrong w/ social media than what is right w/ it. Help a brother out!

Also I really respect for your breast cancer post. It’s an issue close to my heart.
Thank you.

It’s easy to read this post and nod vigourously. “Yeah, you tell em Peter.” And yes, there’s a lot to agree with – but I think a few qualifiers to round out the conversation are in order:

1. Social Media doesn’t necessarily equal “marketing” (or advertising).
I know you know this Peter, but your post seems to confuse this fact.

2. Contests can have value other than bringing in new customers directly.
ie – SEO.

Perhaps most significant…
3. Many brands besides Nike, Pepsi and Verizon are using Social Media. Brands with REAL bonafide communities (and community values). Brands that actually have something unique to say. Niched brands. Some of these brands have customers that DO value conversation. And this conversation is part of their sales cycle and arguably contributes to customer retention.

Also – just like blindly chasing followers has become a bad cliche, I’m noticing a new cliche: Bold pronouncements railing against blindly chasing followers. Sometimes they’re written by me :)

Bravo. Finally, a bit of cold water to wake people up on the SM front (and not, thankfully, more Koolaid). Social media is a tool — one of many in what should be a very big, diverse and integrated collection available to marketers. Wise companies will include social media in their marketing outreach but need to be intelligent about weighting it appropriately in the mix so that it truly fits their company’s business objectives. And, as you point out, they need also to own up not only to the possibilities of each of these diverse marketing channels but also to their limitations.

As for specific points, I disagree somewhat on contests. No, they’re not going to get people to convert on the spot. But they can be an effective attention getter — an introduction to the company if you tailor it to the right audience for the right reasons. That said, you still have to have something compelling for people when people show up, otherwise it’s just another fluffy campaign reduced to 140 characters.

Thanks for a great post, Peter.

Tim Hart, Principal
Hart Communications
http://www.hart-communications.com

Take a look at Dukky.com, I think we have gotten it right.

Excellent post!

I was really impressed with the article but i found the comments much more interesting, especially Scott Hespen’s comment. I also found difficulty with #4 and #5. I also find some issues with #1. I find SM has benefits outside of direct sales such as monitoring chatter and seeing ideas for new products or product enhancements.

I have to say, I didn’t read every single other comment on this story prior to adding in my two cents, and in case it has already been mentioned than I certainly apologize. I agree with most of the things that have been said, but as a follow up (and maybe just to be a ball-buster, unemployed Ivy League Master’s degree holder in the field), I’d like to point out some differences between the sales and marketing functions and why it might be in some companies interests to maintain conversations in order to develop engagement, and also talk about the benefit of giving out “free shit.”

For a short term strategy, everyone wants results, and therein lies the problem that most marketing strategies should be just that–strategies, not tactics. Strategies, taking a long-term view and trying to capture that additional margin of people who have at least displayed an interest (whether or not they are active contributors yet), as opposed to tactics of just pleasing the same old group of people.

Is it true that satisfied customers are less costly to retain and thus easier to earn a profit? Yes, it may be, when you consider the group as a whole. But tell me how it wouldn’t be effective to grow that group of satisfied customers, and convert those who just happened to be “passing by” one day. They’ve already nominated themselves as people who would be interested “in getting weekly emails regarding promotions” or seeing status updates in newsfeeds. And, the acquisition cost in the most popular social media realms (I’m speaking primarily of Facebook, and not of Twitter which is really more effective as a service recovery tool at this time, generally speaking), is effectively ZERO. So, why not turn those newbies into loyal fans? Hedge your bets–some safety in numbers! I am in no way trying to downplay the significance of some brand evangelists, but neither should new potential customers feel that they are not getting the attention that seasoned members have received. It takes a lot of relationship building, but at the end of the day, that energy needs to be spent across the board. How? That is a whole other story.

As for giving away free shit, a particularly great story comes to mind of how Ikea went on Facebook and ran a promotion, where they would upload new photos to Facebook and the first person to tag themselves on an item in a photo would win it! Besides some merchandise at wholesale and some shipping costs, Ikea got all the free publicity that it could want via people checking daily or several times a day for new photos, new merchandise, and likewise telling their friends. Sure, they were just people wanting to win “free shit”, but Ikea’s target market /demographic includes a lot of college aged kids, “hip” and ‘trendy” individuals in urban and suburban markets, and people who are living in a new home or apartment for the first time that might have otherwise taken a trip to Target for some home furnishings. By having a reason to visit the site, these people were continuously exposed to new products, and it simply turned viral.

I’m not suggesting that you just unload merchandise all day, but I think the message I want to communicate is that social media is a creative space. People want friends and relatable news and links–don’t turn your site into a place to solicit new deals and things daily. People don’t want to be constantly sold to; if you update regularly, I believe that at least 70% of your updates should be celebrating your products, company culture, or guest stories and other creative content, and 20-30% (max) related to deals, promotions, etc. With so much clutter in every part of our lives, longer working hours, less money to spend, and less face to face interaction, if you are going to try and solicit business online or by any medium, make it entertaining, make it interactive, and make it worthwhile.

Wouldn’t consider myself an expert on the topic but would love to continue the discussion if anyone is interested via this thread or by email.

Your advice makes perfect sense. It’s also in a long American tradition of extroverts exhorting introverts to be extroverts (Dale Carnegie, anyone?). Most people don’t like to talk to strangers and have a hard time getting beyond banalities when they do. The disinclination can be resisted, with varying degrees of success, which is why the advice is not useless. But natural extroversion is a gift.

Brilliant! The old-school idiots that occupy the majority of old-school, failing companies (such as banks, auto companies and government offices) MUST understand that that we want less pollution in our environment — especially social media. Great posting.

oops – prior comment is attached to the wrong post! It was meant for “How I find time to be always networking” (by engaging people in the normal course of life..) — wonder how I managed that? Must have had the two posts open side-by-side. Apologies if anyone bothered to be discombobulated.

Hey Peter, I just came across your post while “stumbling” and I have to say this is a pleasant surprise. I don’t get how many marketers call themselves professionals when they don’t even know or care about P&L or profit.