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Should We Re-Think the Lead Generation Funnel?

23 10 2009

What happens when someone becomes a fan of a facebook fan page? What happens when someone RT retweets something? What happens when you hold a conversation on Linkedin? This individual “vote to participate into a sales process” is seen by their ‘friends’. Did I shock you? It may not lead to a monetary transaction but it triggers an increased awareness of something. Consumers and customers have been empowered for some time to become active participants of their consumption. They are clearly moving outside of the traditional sales funnel starting with thorough research using internet.

A recent McKinsey report (June 2009 Subscription) highlights that only 30% of purchasing decision points are still ‘company driven’. This means that more than 70% of decision points in a buyer’s active evaluation process are now consumer-driven: user consumer reviews, word of mouth and in store interactions. Is it time to re-evaluate how things are done?

Social technologies are expanding these phenomena to micro-influence level never seen before. A few weeks ago, I had to change our office router and jumped on Twitter & FB to ask what people thought… it didn’t take more than 10 minutes to get 10 e-pinions… 2 from people I know, 8 from people I don’t know. It’s getting much easier to get that instant feedback. You bet I bought what was most recommended.

Now what does it mean for our businesses? People are empowered to swap between brands more than ever before. The social media funnel and measurement is simply upside down compared with a traditional sales or purchasing decision process. It’s cheaper, greener, further-sighted to use social media. Brands need to go through the journey of seeing themselves through the lens of their constituents. It’s not an audience, it’s a constituency.

1- A brand may and connect with its core customers to start with and then expand. There is, most of the time, an underlying community of customers or consumers. There are also communities of influencers in that space. Both groups should be recognized and empowered by your brand if you’re serious about building trust.

2- A community will only engage if they feel connected and empowered by that brand. If there is no exchange, there is no social media; it’s only push marketing through new channels. Deliver high quality content and help them support each other. People are likely to want to discuss about much larger things surrounding your brand than just your product. They already know of your product or use them.

3- The more they talk, the more they trust, the more everyone is merrier.

4- Be where conversations happen. If you’re lucky/skilled… but mostly honest and caring, people will progressively feel comfortable discussing the brand’s social footprint or presence. If not, a brand should carry its ‘conversation capital’ where ever those conversations happen.

No one likes to be part of a funnel (ask the Foie Gras ducks what they think about this). Like everyone else, we vote with our $$ when you see value and can trust a product or services. On the other side, it always feels good to buy something from a brand you trust. Be the change you want to see, they say.

Now, is this the right mix? Am I saying that the traditional funnel should disappear? No. How do you think an organization should look at these strategies?

@YannR

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Your participation is required (no duh!)

14 01 2009

In the last few weeks, we’ve discussed the roots of and early influencers of web 2.0 and customer relations (the re-birth of Trust 2.0 , the village Not-So-Fool,  Napster, Gen y…).  More and more, Health 2.0 and Enterprise 2.0 are taking the stage….. the 2.0 juice is everywhere, are you sick of it yet?

If you’re sick of it – You’re certainly experiencing a culture gap :).  If you’re excited about it, that’s probably the right feeling. It starts to get crunchy when you can claim and act as you are embracing it. Every segment of your company’s value chain should start thinking 2.0 collaboration. As the economy drops, it is essential that more brands engage in conversation.

The economy may be tanking but that’s not the case with all that is 2.0. Let’s talk about growth for a moment: Twitter 343% (users) and grew by 752%  in traffic in 08′, Ning 251% (users), Linkedin 193% (users) (the state of the Economy helping), Facebook 116%.  When was the last time you saw figures like that?? Staggering, isn’t it?

Now all those “sick and tired of this web 2.0 malarkey” would have you believe that this is all just a fad. A wild management fashion that will blow over by the time Spring comes. Just something to keep those geeks and young’uns occupied when they should be doing some “real work”. Right. Call me silly, but I see several major cultural and behavioral shifts here (feel free to add more):

– Numero Uno: This growth is conversation based.  Robots have no place in the hive and the communities are watching. Communities value quality, authenticity and collaboration. Sounds trivial doesn’t it? There you go, arguing that that flashing your sensory advertising 7 times in front of someone’ eyeballs may do the job. Forget that.  It’s just part of the noise.  As a product manager, a brand marketer or simply an employee, your online attitude and your ability to converse are making or breaking your business model.  The economy is just magnifying any cracks already there. Your products, your sales tactics and PR in general can only stay alive if you’re engaging with your consumers. No, it’s not only your engineering team’s job to do so… if you think so, you’ll fail.  Someone somewhere is  conversing about the features or service add-ons they’d like to see.

– Numero Dos: This growth is participation based. Your product, your brand (personal and company), your PR, and your support operations have to be able to engage and sustain conversations if you want to stay relevant. Relevancy has 2 axes:

– your current customers and prospects (do you empower them through conversations? are they getting your brand experiences for the same price they bought you product or services?). Are you in conversation with them before and after they bought your product? Like a good Chef, does your brand walk around Twitter or Facebook and see if what you cooked went beyond expectations?

– and Google of all places 🙂 Your brand digital footprint is constantly analyzed by search engines to create rankings.  Engaging in the conversation is cheaper and more effective than hiring any gizmo PR firm.

I’ve  seen a lot of debate on Chris Brogan’s blog lately about lead generation methods. Guess what, the most viral of us are spreading the word faster than ever before. I knew of the DIA air plane crash before any news coverage, I knew about the earthquake in Thailand and that my friend Neil just bought his new iPhone before he called and told me. Yes, your traditional communication methods are still relevant but engaging in conversation is required. Social networks and social media are not just for kiddos anymore – those of us 25 years of age + are the fastest growing segment on most networks.

So here’s your case for change:

– Your social media engagement should empower your users, especially if you are developing software or any collaborative tools. Sounds trivial, yes, now go listen to the blogosphere or the twitterverse and judge for yourself.

Brand monitoring should be like breathing – people are already talking about you, now listen and engage where necessary. I am always pleased to see brands replying to me when I comments about their product on Twitter or else

– If customers come back, great – if they speak about you on yelp.com, facebook or twitter… it’s better, their friends are listening.

Good blogging is the mothership of social media – it’s like going to a networking event– you’re putting yourself out there.  You may be anxious at first but there are no robots in this room, just human beings, style gets you only so far. Substance rules.

It all sounds very much like a village right?  People using technology have created more human avenues for connection than ever before.

Finally, if you think you don’t have the budget for this, your current marketing budget mix is wrong. Just because you’ve done marketing this way for 10 years doesn’t mean you’re right, that it’s working or that people are not immune to your message. It isn’t. And they probably are.

Let’s go man! It’s exciting.

Yann





Trust 2.0 … Get Used To It

12 12 2008

I am more and more convinced that 2.0 is a mindset.  I was on Twitter (like always) last weekend between attending to the urgent lives of my 5 and 3 year olds… (Tonka trucks and other logistical movements) and struck up a conversation with @bakespace (bake who you may say? … twitter name/id). Much of our conversation was based on the rise of Digital Divide 2.0 which I see happening as Social Media reaches out to more human beings. You could argue that social networking sites in general are a generational thing and ultimately we will all be on there . You could also argue that it’s an early adopter phenomenon.  I tend to think that 2.0 is a mindset.

Newspapers, magazines and traditional sources have been ‘seen’ as the trusted source of information over time. “Who are we going to trust”? They say. Well YOU, your brand, your digital footprint. Web 2.0 is an organic world where new tools (software for the most of it), new behaviors and new ethical codes swarm. We are the media. We are re-creating trust mechanisms. I believe we can see through, look at each other in the eyes, shake hands, smile at each other and respect each other online. Businesses as well. Get used to it. It’s here.

Forums in the 90’s and early 2000’s have really given a bad reputation to online presence… they were one big stream and everyone could actually be as primal as possible. We now live in a more open world, if you vote for a 2.0 Mindset.  More and more consumers are judging how they are being treated and how their peers are as well.  BS on Twitter, blogging, facebook and so on just doesn’t fly and people quickly vote with their feet when BS shows up.

This week, amongst other things, I ran into 2 great pieces of content that talk about TRUST. The first was by Rodger Doodley blog on Trust with Rodger quoting Paul J Zak: The key to a con is not that you trust the conman, but that he shows he trusts you. Conmen ply their trade by appearing fragile or needing help, by seeming vulnerable… the human brain makes us feel good when we help others–this is the basis for attachment to family and friends and cooperation with strangers. “I need your help” is a potent stimulus for action. [From The Moral MoleculeHow to Run a Con.]

Selling is about creating a trustable and repeatable experience. If you are a marketer, you are here to build or consolidate the brand trust capital. Social Media (blogging, facebook, twitter, flickr, youtube….etc) when used in concert are here to “empower users” as Chris Brogan says – Those users are your prospects or your customers… Instead of being in their face and being another ‘Interruption Day Marketing’ brand, be part of their lives, be part of their search and their social graph.

Forrester Research just published a new study that has made bloggers and micro-bloggers rage this week… Corporate Blogs are at the bottom of the scale when it comes to “trusted information sources”.  It is very debatable and obviously linear thinkers (let’s apply traditional marketing to social media) are mostly doing it wrong. If you try to sell hard, you’ll just have ZERO effectiveness.

Cloggers (corporate bloggers) it’s time to stop – Companies and corporations have the bad reputation of just republishing their press releases on their blogs, talking about inward content…etc. RISE UP I say… Start by creating value, content that ’empowers your users’. If you can’t think of your higher purpose… have someone else handle your social media services. If you think you know but can’t get traction and your blog traffic sucks…. you’re also in need of help.

Now go on, get out there and build your company digital trustworthiness…

Onwards and upwards,


Cheers
Yann

Thanks to jasoneppink and will lion for their cool pix