Why Social Media Matters to Direct Marketers

Posted on May 31, 2010 by Dukky

Editor’s Note: Today’s post was written by Debra Ellis and originally published on the Multichannel Marketing blog, which I can’t recommend enough. It is reprinted here with permission.

An open letter to direct marketers…

There are those who say that direct marketing is dying. It is being replaced with a new “unmarketing” philosophy embraced by consumers and forward thinking companies. There will be no room in the future for the tactics that used to motivate people to respond to corporate messages.

The opposing viewpoint is that social media is a fad that will disappear like pet rocks and the Macarena. This group argues that most of the people tweeting, linking, and nudging are kids with nothing better to do. Before long, we’ll be back to normal.

Which side is right?

Neither. To paraphrase Mark Twain, “The report of direct marketing’s death has been greatly exaggerated.” If you dig deep into the stories you’ll find that most of the people calling for a memorial service don’t understand direct marketing. And they definitely don’t know how to use it to grow a company.

Direct marketing works. Whether it is catalogs, postcards, letters, or email, it generates revenue. And, any tactic that delivers a return on investment will be used. When someone tells you that your marketing is dying, you know better because you see the results every day.

Social media works, too. It’s different from direct marketing, but every bit as effective because it humanizes companies. Customers get to know the people behind the products and promotions. It creates a connection that won’t be broken by lower prices. It makes your company more attractive to your competitors’ customers.

What happens if you ignore social media?

If you think that I’m going to say it’s the end of your world, you’re wrong. It’s not (at least not today.) But, it is the start down a slippery slope because social media is here to stay. The platforms may change, but the concept and ability to really connect with your customers won’t.

Ignoring social media will put you behind any existing competitors who are embracing the channel. Even worse, it allows new companies to build relationships with your customers, charming them away from you.

Social media is the venue that changes the world’s marketplace into corner stores.

Imagine that your company has a store in a small town. A new fellow comes into town and introduces himself to everyone. He attends functions with a smile and helping hand. He seems to be everywhere; chatting with your neighbors, leading fundraisers, and offering information. Everything seems harmless enough, helpful even, until he announces that he is opening a store as your competitor. He has clearly established credibility and your revenues will suffer.

The same thing will happen to the business you are managing today if you fail to join the social media world. People who are in it now are looking for opportunities. You will provide them one.

You have an advantage, if you choose to use it.

You know direct marketing. You know how to plan a campaign, test variables, and measure the results. Social media marketing isn’t that different. It requires a different tone and focus, but it still needs planning, testing, and measuring.

The combination of direct marketing and social media is what we have been seeking for so many years. We wanted the ability to connect with our customers, learn from them, and provide exceptional service. The new platforms provide the tools to do just that with customers around the world. It is hard for me to imagine why everyone in the direct marketing industry isn’t jumping for joy.

Instead of elation, there is a lot of explaining why social media doesn’t work.

“My customers aren’t involved in the social media scene.” (Have you looked at the demographics lately? You may be surprised.)

“I don’t know what to do. “ (Let someone teach you. There are plenty of us around who understand social media and a few who understand how to make it work with direct marketing.)

“It takes too much time.” (In the beginning, it is time consuming but it is manageable. When you are established, it saves time and money because you can resolve issues quickly and economically.)

“I don’t see a return.” (You will. It takes time to build relationships. Once established, your customers’ lifetime value increases.)

Social media matters to you whether you accept it or not. It has the potential to move your company to new levels up or down. You choose.

Choose wisely.

Note: If you aren’t sure where to start or you’re not seeing progress with your current social media strategy, check out my new guide “Social Media 4 Direct Marketers“.

8 Reasons to Add Social Sharing to Your Next Email Campaign

Posted on May 28, 2010 by Dukky

How can your email campaigns benefit from integrating social media? To find out, MarketingSherpa surveyed email marketers to see how adding social media to their email campaigns has helped them.

Using their survey results, along with other research and our experience here at Dukky, here are 8 great reasons to start incorporating social media elements into your email campaigns:

Reason #1-Increasing awareness

Adding social sharing to an email campaign is an easy and effective way to increase awareness of your brand. Social sharing prompts your customers to forward your offer to their friends and family, generating positive word-of-mouth that people are likely to remember. MarketingSherpa found that 35% of email marketers believed social sharing was “very effective” at increasing awareness, while 58% believed it was “somewhat effective.”

Reason #2-Increasing Reach

By generating positive word-of-mouth, social sharing also increases the reach of your campaign. According to MarketingSherpa, an analysis by email service provider Silverpop found that adding social sharing to an email campaign increased the reach of that campaign by an average of 24.3%.

Reason #3-Increasing ROI

Since social sharing increases the reach of your campaign at minimal additional cost, it often greatly increases the ROI. To increase ROI even more, you can also use your company’s social media accounts to support your email campaigns with appropriate content and messaging. MarketingSherpa found that 22% of email marketers rated social sharing as “very effective” for increasing ROI, while 51% found it “somewhat effective.”

Reason #4: Get past the “spam filter”

Sure, your emails may be getting past your customer’s email providers spam filter, but does that mean your customers ever really SEE them? Not necessarily…people’s inboxes are bombarded by so much unwanted marketing material that they develop pretty keen “spam filters” of their own, screening much of it out.

However, when someone forwards an email of yours to their friends and family, their friends and family are almost guaranteed to pay attention, unless the customer in question is an incorrigible sender of junk mail and chain letters. Great aunt Flo, I’m looking at you!

Reason #5- Grow your lists

Incorporating social sharing into your email campaign can also help you build your lists. Your customers undoubtedly have people in their networks who are interested in your product-by allowing them to share your offer, you can bring these other potential customers into the fold.

20% of the email marketers surveyed be MarketingSherpa found adding social media components to their email campaigns to be “very effective” at growing email lists, while 52% said it was “somewhat effective.”

Reason #6 Encourage Customer Loyalty

Did you know that customers you gain through recommendations are more loyal to your brand, right from the start? It’s true-a 2009 study by PeopleMetrics found that “A customer is more willing to forgive a service failure if they chose that organization on the strength of a friend or family member’s recommendation than if they came to the company ‘cold.’”

Reason #7: Lead generation

Combining email and social media is also a great way to get more leads. According to MarketingSherpa, 21% of email marketers believed this technique was “very effective” for lead generation, while 55% felt it was “somewhat effective.”

Reason #8: Identifying your Influencers

When you use Dukky to add social sharing to your email campaigns, you get the added benefit of being able to easily identify which of your customers exercise the most influence on behalf of your brand. Find out who your biggest influencers are, and create special rewards and promotions just for them to keep them talking about your company.

Did I miss any reasons? Post them in the comments!

Studies Show Social Networking Sites Continue to Gain Reach and Influence

Posted on May 26, 2010 by Dukky

Has your company jumped on the social media bandwagon yet? If not, you’d better hop on while there’s still room. Social media has already become a force to be reckoned with, and it’s not going away any time soon. Two new studies, one from eMarketer and one from Jones Lang LaSalle, show how social media continues to expand its reach and its influence.

According eMarketer’s report,“Social Network Demographics and Usage,” 57.5% of Internet users will use a social networking site on at least a monthly basis this year. That’s 120 million people-how many do you think are your customers?

I Friended Your Mom on Facebook

If your customers aren’t already using social networking sites, they will be soon. According to eMarketer’s study, the number of people who use social networking sites is expected to explode over the next few years. By 2014, two-thirds of all Internet users will use social networking sites.

The demographics of these social networks are changing, too. They are no longer just for kids and young adults. Older adults and even senior citizens have stopped shaking their heads about “kids these days” and have come to join the party on Facebook and Twitter.

Debra Aho Williamson, the author of the report, explained the changing demographics on Facebook in a little bit more detail:

“Teens and young adults are old news,” said Ms. Williamson. “This year, 60% of Internet users ages 35 to 44 and one-half of those in the 45-to-54 age group will use social networks at least once a month. Women, especially moms, are still driving much of the growth.”

Social Networking Sites Influence Purchasing Behavior

Social networking sites are more than just baby pictures and Farmville. They are also places where people go for information, especially about products and services. Case in point: today, my Facebook newsfeed contained a post from my little sis seeking resort/hotel suggestions for our upcoming family vacation, and a post from an old friend wanting to know where to buy patent pumps. Each post generated at least 2 recommendations from friends.

This anecdote reflects what Jones Lang LaSalle found in their report, “Get Connected — How to Harness the Power of Digital Media.” According to their research, 92% of consumers research products and services online before they buy.

In a post on the Chain Store Age website, Jones Lang LaSalle Retail’s VP of marketing, Beth Faulkner, explained one of the key takeaways from the report:

“Social media allows buzz and viral growth so if we reach our audience with the right messages, product information and offers, we can drive traffic to our malls and stores but also have a two-way conversation with our shoppers. Through this we can discover what they want, listen to their feedback and then improve our products and services.”

At Dukky, we couldn’t agree more-and using social networks to create buzz will become even more important as increasing numbers of consumers flock to social networking sites.

PURL Case Study Roundup

Posted on May 23, 2010 by Dukky

Personalized URLs (pURLs) are an effective way to increase response rates on direct mail and email campaigns. By including the names of your customers, pURLs make your marketing feel more, well, personal-and that makes your customers more likely to respond.

At Dukky, we know that pURLs are a powerful marketing tool, and we increase their value even more by adding social sharing capabilities and powerful analytics.

This a roundup of case studies of direct marketing campaigns that have successfully used pURLs to increase response. Some of these case studies are ours, but not all of them-my aim with this post is to create a resource for marketers who are interested in learning more about pURLs. If you know of any applicable case studies not mentioned here, feel free to post them in the comments.

Clearview Mall- In this campaign, Dukky helped Clearview Mall get over an 8% response rate. Previously, Clearview Mall considered a 1% response rate to be something to celebrate.

Cafe Express- a 17% response rate using Dukky.

Bra Genie/Canada Flowers- Two email campaigns, one with a 19% response rate and one with a 26% response rate.

Variable Thinking’s PURL Case Study Collection- A collection of 11 case studies from variable printing.

University of Alabama- A good, in-depth case study of how the University of Alabama used pURLs to increase football season ticket renewals.

Gore-Tex- A look at how Gore-Tex used pURLs to generate a 16% increase in sales.

VMI Foundation- This case study describes how the VMI Foundation used pURLs along with email and direct mail to create a more effective fundraising campaign.

CEA Marketing Case Study- Describes how a Gulf Coast waterfront resort created a successful direct mail/email campaign using pURLs.

Rosemont College: A look at how Rosemont College used a pURL-based campaign to reconnect with alumni.

And a couple of slide shows:

Cross-Media Marketing Case Study #1

View more presentations from Fuse CrossMedia.

White Cloud Marketing | Lakota Social Media Case Study | Oakville Social Media | Dukky

View more presentations from White Cloud Marketing.

Social Media Marketing Offline

Posted on May 22, 2010 by Dukky

Editor’s Note: Today’s post was written by Rebecca Coleman, and was originally posted on her blog, The Art of the Business. It is reprinted here with permission.

I talk a lot about social media marketing: tips, how-tos, etc. But a new and increasingly interesting field of social media marketing is taking place off-line, in the real world.

So, I’ve been doing some research on the topic, and here’s what I’m finding out:

Tracking social media hits is really challenging. A great deal of the resistance of businesses, in particular, to starting social media marketing is because it’s hard to prove the ROI. What I mean by that is, “If I have a facebook page, how many tickets will I sell?” It’s hard to prove, because of the ripple effect of social media. If I send out an invitation to a show, I know who that invitation goes to. But any one of those folks could pass it on to their friends, or their friends’ friends, and so the people who actually show up at my theatre may be the 3rd or 4th generation (or more) of that invitation.

This is part of the reason why I love social media so much, but it does make it difficult to track where people are coming from.

Using social media offline can help to track where people are coming from. For example, a couple of weeks ago, I saw an ice cream place on Twitter post a tweet that said they would be offering a 1/2 price discount on ice cream for the first 10 minutes after the Canucks scored a goal. So, if the Canucks score a goal, and someone comes in and asks for 1/2 price ice cream, you know that person is on your Twitter feed.

Another reason why social media marketing offline is starting to catch on is because of the prevalence of smart phones. Nearly everyone I know has an IPhone or a Blackberry these days. If you see a sign like this, for example:

You can immediately go to your smartphone, go on the internet or to your Facebook app, and “like” this business. And people “like” to get exclusive social media offers–which for the business is a win-win, because it offers an option to track where that business came from.

Our smartphones also make it really easy for us to offer immediate reviews. A while ago, when I went to buy a futon, and drove across town to find the store closed, even though I was there within the opening hours clearly posted, I immediately twittered the #fail. The opposite is true for positive reviews: great meals, extra special service, etc.

Online relationships lead to real-life meetings

Last week, I published my very first e-newsletter. In it, I talked about the experience I had at Northern Voice. Briefly, I argued that social media is not killing face-to-face relationships, but, in fact, strengthening them. You see, we get to know people online, and when we meet them in real life, it’s less awkward, and we already know things about each other, so it’s easier to find something to talk about. Many of these online relationships are leading to real-life meetings, or Tweetups. That’s when a bunch of folks who all follow each other on Twitter, and have something in common, meet in real life for coffee or a drink.

Stay tuned… I’m working on a post with tips about how to use social media marketing offline.

"Social" Vs "Anti-Social" Social Media Campaigns

Posted on May 14, 2010 by Dukky

This month, both Pringles and Domino’s initiated new social media-based campaigns. However, the two campaigns exhibit strikingly different approaches.

Domino’s is using what could be called a “social” social media approach in its Taste Bud Bounty Hunter campaign, which encourages customers to tempt their Facebook friends to try Domino’s new pizza recipe by giving them buy-one-get-one-free coupons. Customers also get a free buy-one-get-one free coupon for themselves for the first customer they refer, plus a free pizza coupon for every 10 customers they refer who actually use their coupons to order from Domino’s.

If Domino’s promotion is all about sharing the love, Pringles’ is all about sharing the snark. We all have people on our social networks who tend to divulge a little bit too much information about themselves and their daily activities. As Marketing Magazine notes, Pringles’ new promotion encourages people “to name and shame their friends who share things online that are ‘totally ridiculous’.”

Once you flag a friend’s update as “oversharing,” Pringles sends them a message advising them that people find their updates boring and that they should “seek help” at the Pringle’s website, which is full of helpful tips like “do cool stuff.”

Lame status updates are displayed on the Pringles website, and you can also custom-order merchandise featuring your favorite “overshare.”

Pringle’s campaign is clever and funny, no doubt, but I wonder if its “anti-social” nature could limit its success. In a post on Social Media Today, Matt Ambrose commends the way the campaign encourages people to engage with the brand, but also notes a disconnect between the brand’s image and the campaign’s implications:

“Pringles likes to portray itself as a fun, friendly brand that helps bring people together. But I’m not sure this will be people’s impression when they receive a message from Pringles telling them that their updates are boring? I fear this campaign could leave a trail of broken Facebook friendships in its wake.”

Personally, I’d rather share free food with my friends than “shame” them for their status updates. If I don’t care about them, I don’t have to read them.

Which approach do you think will be more successful? The “social” social media approach or the “anti-social” media approach?

http://www.socialmediatoday.com/SMC/196606

6 Great Resources to Help Marketers Understand the New Twitter

Posted on May 12, 2010 by Dukky

Facebook’s not the only social network in the news for making changes-last month, Twitter also announced a major update to its service: a new advertising model called “promoted tweets.” Last month, the @anywhere feature Twitter announced at SXSW in March also went live.

What do these new features mean to you, and how will they change the way you use Twitter for social media marketing? Now that the initial chatter has died down, the following resources offer in-depth analysis that will help you make sense of Twitter’s new direction. Enjoy!

First Take Analysis: What Twitter’s “Promoted Tweets” Means To The Ecosystem

This in-depth analysis from the Web Strategy Blog is probably the most comprehensive post available on how promoted tweets will affect different players in the marketing industry.

Promoted Tweets? What does this mean for brands?

In this post on Social Media Today, Stacy Cohen explains what promoted tweets will mean to brands, and why they should be cautious.

Tweets at 35,000 Feet: How Virgin America Uses Promoted Tweets

This post from Mashable is an in-depth case study of how Virgin America, one of the first companies to use promoted tweets, has been using them to connect with their customers on Twitter.

Marketers Love Promoted Tweets: But Why Wouldn’t They?

This post from the Econsultancy blog takes a look at companies, including Virgin, that have successfully used promoted tweets, but still urges marketers to be cautious about embracing the new platform until case studies with real ROI emerge.

Twitter’s @Anywhere: It’s Alive!

This post from SearchEngineLand gives an overview of the debut of @Anywhere, with interesting examples of what different companies are doing with the platform.

The State and Future of Twitter 2010: Part Two

This post is long, but well worth the read. In it, Brian Solis explains how promoted tweets will fit into the ecosystem as a whole and why it will be important for companies to promote tweets that are relevant to and resonate with users.

Viral Marketing FAIL: Roger Waters Defaces Elliot Smith Memorial

Posted on May 9, 2010 by Dukky

I love Pink Floyd as much as anyone, but Roger Waters just doesn’t seem to get viral marketing. Yes, you want to get people talking about you…but usually, it helps if they are saying nice things.

Water’s new viral marketing campaign got people talking all right…specifically, it got fans of deceased singer-songwriter Elliot Smith talking, but they didn’t have much of anything nice to say about Roger Waters or Pink Floyd once they found out his team of street artists inadvertently defaced Smith’s memorial.

To promote an upcoming Pink Floyd reunion tour, Waters paid street artists to wheat-paste the following quote from Dwight D. Eisenhower on various walls in cities across the US:

“Every gun that is made, every warship launched, every rocket fired, signifies in the final sense a theft from those who hunger and are not fed, those who are cold and are not clothed.”

So far so good, right? Well, except for the fact that the Los Angeles team pasted the quote and an accompanying picture right on top of Smith’s unofficial memorial, covering up tributes from his fans.

Not a good move. Opinion was actually a bit divided over whether Smith would have liked the quote/sticker or not, but there’s nothing like an old-guard rock singer appearing to disrespect a young, deceased, indie singer-songwriter’s memorial to unleash mass amounts of righteous hipster outrage.

For his part, Waters said it was an accident. The LA Times quoted his apology:

“It was absolutely an accident,” Waters said. “I didn’t want to disrespect Elliott Smith’s fans, and I’ve instructed (the team) to remove the wheat paste immediately. It was a random pasting in the normal course of this, and I want to make it public that we had no intent to offend or cover up something precious.”

This incident provides a handy demonstration of the reason why most social media “gurus” advise you to “listen” before you jump in and start participating: you don’t want to end up inadvertently sticking your foot in your mouth. Obviously, the “listening” step is just as important for viral marketing efforts that start in the street as it is for viral marketing efforts that start online.

4 Great Resources For Understanding How Facebook's New Features Affect Marketers

Posted on May 8, 2010 by Dukky

Last month, Facebook rolled out some earth-shattering (if that’s a hyperbole, it’s not by much) new features. Now that the dust has settled (somewhat), you may be wondering how these features impact marketers. Hopefully, this collection of articles will help you make sense of it all!

What Facebook’s Open Graph Means For Marketers

In this post from the e-Marketer blog, Debra Aho Williamson explains how Open Graph and the “Like” button can help encourage interaction between brands and consumers as well as word-of-mouth.

A key quote: “Not only does this have the potential to expand the reach of services like Yelp through more interaction and usage, but it could also help brands more easily show that their products are validated by potential customers’ social circles.”

Facebook Open Graph- Bring Your Audience to You

In this post from Conversation Marketing, Ian Lurie explains some of the more exciting possibilities that Open Graph opens up, such as the ability to present visitors to your website with a list of your products that their Facebook friends have already “liked.” Studies have already shown that Facebook users influence their friends’ purchasing behavior, and these changes could magnify that influence even further.

A Marketer’s Guide to Facebook’s New Social Plug-ins

This post, on HubSpot’s Inbound Internet Marketing Blog, has an excellent breakdown of the potential implications of social plugins for marketers, explaining how they can help you expand your company’s reach and credibility in the minds of potential customers.

Why Social Sharing is Bigger Than Facebook Or Twitter

In this post from the Harvard Business Review, David Armano discusses Facebook’s new features and how they fit into the broader trend of social sharing.

Takeaways

From a marketing perspective, the end result of Facebook’s Open Graph can be boiled down to this: it is now more important than ever to get people talking about your company on Facebook. Whenever someone “likes” your company on Facebook, Facebook will be watching. Whenever someone mentions your company on Facebook, Facebook will be listening.

Is that a little creepy? Sure. But as Facebook seeks to encourage social sharing and to make the web more social, it will likely create unparalleled opportunities for marketers to harness the power of word-of-mouth.

Are you ready?