September 3, 2013

Question #56: Should I blog?

money making business

“Always do your best. What you plant now, you will harvest later.  Og Mandino”

James Altucher is an investor, programmer, author, and serial entrepreneur who recently shared his  “Ultimate Cheat Sheet to Starting and Running Your Own Business.”  It’s presented like an FAQ for people who want to start their own business.

Probably the most powerful tip was the final one:

RULE #infinity:
You create your luck by being healthy and not regretting the past or being anxious about the future.

Inspired.  There are 101 other great questions and answers in the blog post.   One that caught my eye was this one:

56) Should I blog?
Yes. You must. Blog about everything going wrong in your industry. Blog personal stories that you think will scare away customers. They won’t. Customers will be attracted to honesty.

I won’t dispute the truth of the statement, however I’ve worked with enough business bloggers to want to raise my hand and offer a bit of advice on the subject.

You must blog: Check.

Don’t be afraid to blog about what’s wrong in your industry.  Check.

Angela Hoy of  the self publishing company Booklocker shares her concerns about how many self publishing houses engage in less than ethical tactics in the weekly newsletter.  She  and her husband also maintain a forum – the “original” web 2.0 app – which includes a “whispers and warnings” section.

Blog personal stories that you think will scare away customers.  In the words of Ralphie’s mother in “A Christmas Story” when her husband set up the leg lamp in their front window – “Ahhh, ohhh, uhhh…”

I’ve worked with business bloggers since 2006, and I feel I need to add this disclaimer to this bit of advice.

If you’re in the business of solving problems, it’s not a good idea to blog about how you can’t solve your own current problems.  For example, if you’re a marriage counselor, it’s probably not a good idea to blog about your own personal issues with infidelity.

There is of course and exception to the exception and that’s creating a “here’s how I’ve overcome this obstacle, I can help you overcome it as well” style blog post.   Even better is to create a series of  “I overcame this obstacle,  I’ve helped others overcome it as well” style blog posts. These types of post are by far the most powerful “marketing tool” you can create for your business.

Customers will be attracted to honesty.  Double, triple, quadruple check!

Another word for honesty is authentic – and this is where business blogging can get ugly for some people.  If you think your customers are mindless sheep then it’s probably best if you don’t blog because for some reason, blogging tends to put your “shit on blast.”

Instead of being afraid of the “putting your shit on blast” properties of business blogging, get your attitude adjusted then put on your big boy (or girl) pants and start blogging.

 

Filed Under: Building Trust with Blogs
September 2, 2010

Social Media’s Role in Branding

Before social media, branding was the buzzword of the marketing and advertising industry.  Like social media today – many in the “biz” were familiar with the term branding – but really didn’t “get” what it was really all about.  As a result a lot of “noise” has been made about branding which focuses upon the choice of colors, logo or other visual elements used in marketing.   But branding is so much more than just the visual packaging of your business or even your business name.  While the name and the visual elements are a way to quickly communicate the “core” or DNA of your business to consumers who don’t know you yet – your true BRAND is built through interaction with your customers.

I’ve always said that branding is not something you do to your business – but rather it’s something your customers do to your business.  Just as a calf does not control the hot metal which sears a symbol into it’s flesh – your company’s brand is controlled consumers.  This is why focusing upon the consumer and striving to meet their expectations is the foundation of branding.  Social media gives businesses a way to make that connection – to collect that information – and to actually see your business from the consumer’s point of view.

Peter Drucker was a self-described “social ecologist” whose insight helped to build some of the most successful companies in the world including General Electric, Coca-Cola, Citicorp, IBM, and Intel. Drucker attempted to unveil some of the “mystique” surrounding branding,

“Suppliers and especially manufacturers have market power because they have information about a product or a service that the customer does not and cannot have, and does not need if he can trust the brand. This explains the profitability of brands.”

According to Drucker – the essence of branding is building trust and long term business profitability ultimately depends upon building trust with consumers.  Branding is all about building trust with consumers.   When consumers can trust you – they’re more likely to buy from you.  Social media provide the communication tools necessary to engage consumers and build that trust.

The process of building trust with consumers used to be as mysterious and abstract as quantum mechanics.   Companies had no way of knowing whether they had made a “connection” with consumers other than to watch for the cash register to tally up another sale.    Social media is providing revolutionary insight into this once obscure concept but  it’s increasing the importance of actively striving to build trust with consumers as well.

Filed Under: Building Trust with Blogs Tagged With: , , , ,
August 17, 2010

Blog posts and building trust with prospective customers

In Blogging, Authority and Trust I talk about how in order to gain access to a prospective customer’s emotional triggers you have to engender a level of “trust” with a prospective customer or client.   That level of trust begins as “trust” and can grow into “authority” with time.

In “Trusting your Gut“I shared the word picture which illustrates how the whole process of building trust works. Now I’d like to illustrate the role trust plays in social media marketing by sharing a recent person experience on how a single blog post – and the comments approved on the post – worked to build – and then destroy – the elements of trust needed to make a sale.

I was searching for software which would automate a task I perform in my business.  Since I’m going to be asking this piece of software to eliminate the need to hire an employee – I know it’s not going to be freeware.   I entered the keywords to describe the software into Google and -not surprisingly – one of the first results returned was a WordPress blog post.  In the post, the author asked his readers to share what software solutions they had used to solve the same problem I’m having.  The blog post had almost 60 comments by the time I arrived and I had high hopes that I would quickly and easily discover the software I needed.

At this point, my trust account balance with this blogger is low.  However, I’m willing to give this blog author the opportunity to earn my trust.  After all – his post is appearing first in Google, it appears he talks about issues affecting my business.

The post itself was basically fluff  – asking readers to submit the solutions they had found. I didn’t mind this – as a matter of fact, I was happy to see it.  It’s great to see how others are solving this apparently common problem.

The first few comments were apparently authentic- each of which acted like a deposit into the newly opened trust account.  Most of the authentic comments on the blog post fell along the lines of “I still use pen and paper to perform this task.”  UGH!  That’s what I’m doing now.

Notice that these are what I call the authentic responses because it was obvious that these were real readers with real businesses.    Unfortunately,  there were only about a dozen “authentic” responses – followed by about four dozen “inauthentic” responses.

There were several comments which looked authentic at first glance.  They included a photo gravatar combined with a first name – like “John” – followed by a comment which went along the lines of “we looked long and hard for an easy to use, intuitive software program to handle these tasks and were delighted to find [insert software name here].”  The comment then went on to describe the software’s benefits in glowing terms.

The problem with “John’s” comment and many others began with a simple hyperlink.  See, one way a reader “gauges” the authenticity of a comment is by following the hyperlinks in the comment.  In the case of these inauthentic “shill” comments,  when you clicked on the link to see if you could “trust” the glowing recommendation.  – surprise surprise -you would find the hyper linked went directly to the website selling the software program described in the comment.

Congratulations “John” – you garnered some weak link juice and lost the opportunity for me to even download a trial version of your software.

John and several others were obviously shill posting as a satisfied customers promoting their software solution via this blog post. This may be what some people call “social media marketing” but it’s really just spamming the comments of blog posts by posing as a satisfied customer.   It’s yet another example of a blunder in online reputation management – one that can’t be easily erased.

The moral of this story is that several software developers who tried to promote their products via shill comments lost the valuable opportunity to be “authentic” and showcase their software product to a prospective customer who was actively researching a purchase.

Instead of leveraging the power of a blog post with a #1 SERP on a valuable – albeit long tail – keyword term to capture high quality sales leads by leaving an authentic blog comment – a surprising number of software developers settled for a link with very little SEO value and absolutely no potential for real customer engagement.

This experience illustrates a lot of “blogging truths”….

  1. Leaving thoughtful comments on other blogs which add value to the conversation are a great way to get new readers for your blog.
  2. Finding blog posts which use powerful keyword phrases and leaving authentic comments is a great way to promote your product or services.
  3. Trying to “game” social media is a waste of time and energy.
  4. Trust which is quickly earned is fragile – and must be earned over time to fully develop into authority.

The best social media marketing practices begin by recognizing that social media is transparent.  Unfortunately it’s relatively easy to “stand out” from the crowd by simply being honest and telling the truth. In the blog post mentioned above, one software developer was “authentic” in his comment – sharing that he was the developer  and asking for input about his software from readers.

The web is big – and often you’ve got a limited opportunity to engage with a prospective customer.  Why would you waste it by lying and pretending to be someone you’re not?

Filed Under: Building Trust with Blogs Tagged With: , , , , , , ,
August 10, 2010

Trusting your gut….

While building trust and establishing authority is a difficult process to “quantify” and measure –  it’s one of the best reasons to launch a blog for your business.

Years ago, a close friend of mine entered into therapy with her husband to try to save their marriage of 10 years.  Her therapist initially diagnosed the “primary problem”  in their relationship as my friend’s lack of trust in her partner.  The therapist provided her with a powerful word picture which she shared with me.

The emotional trust word picture goes like this:  Trust is like a bank account – when you initially meet someone – the trust balance on the account is zero.  Over the course of time, you make deposits to the account.  Deposits can be small at first – like calling when you say you’re going to call or showing up on time when you have a lunch date.  However, just like money – small regular deposits can add up quickly to create a sizable balance in the trust account of a healthy relationship.

Withdrawals from the account in this word picture are made when one party asks the other to take a leap of faith.  For example, in my friend’s case – when her husband called and told her he was working late – he was making a withdrawal from her trust account with him.   My friend’s counselor painted this picture for her because he believed that she had not been properly “crediting” her husband’s trust “account” and as a result – she didn’t trust that he was indeed working late as he claimed.

Hindsight is always 20/20 – and it turned out that my friend’s “trust accounting system” had been spot on. Shortly after sharing this word picture with me, my friend’s husband announced he wanted a divorce and revealed that he had been involved with a co-worker for over a year.  My friend’s gut instincts about his late night work sessions had been right on target all along.

While the therapist missed the mark in the above situation (caused by believing the narcissistic lying sack of sh*t to whom my friend was soon freed from the bonds of not so holy matrimony) his word picture about how building trust works is right on the money and one that every business owner who is considering using social media marketing needs to keep in mind.

When a prospective customer finds your blog post,  the balance of their trust account with you is low.  You begin making “trust deposits” immediately with seemingly simple details like the theme you choose.  However, the best way to quickly build the balance in the trust account quickly is to provide access to LOTS of high quality and relevant information.

Which is why a blog with a hundred or so blog posts is a great trust building tool for your business.  When prospective customers discover the first blog post about your product or service – they can dig deeper and learn more by simply reading other blog posts you’ve written.  When you create blog posts from questions asked by potential customers via email – it’s a powerful way to build a library of informative business building blog posts.  While fellow bloggers – who are the ones most likely to leave comments on your blog posts –  may find your blog posts “redundant” – prospective customers who are finding your blog for the first time won’t see redundancy but rather lots of valuable information they need to know to make a decision about whether or not to give your products and/or services a try.

Next – I’ll share a customer’s eye view of the whole “trust building” process and demonstrate how a blog post can serve as a powerful trust building tool.

Filed Under: Building Trust with Blogs Tagged With: , , , , ,
August 3, 2010

Blogging, Authority and Trust

Dale Carnegie once said,  “When dealing with people, remember you are not dealing with creatures of logic, but creatures of emotion.”

It’s commonly accepted that people buy products and services based on emotional triggers.  Only after the emotional trigger has been pulled will consumers then try to use “logic” to justify the purchase.  That’s why – when you’re writing copy with the intention of “selling” something – you first try to pull the emotional “trigger” and then provide “evidence” to justify the purchase.

In order to gain access to those emotional buttons – it’s essential that the marketing materials engender a level of “trust” with a prospective customer or client.  Sometimes – in the case of minor sales – this level of trust can be achieved quite easily – a professional site design or a BBB label for example.  However, in the case of a major sale – the type of sale that any independent service professional is making –  achieving that level of trust can only be achieved by providing lots and lots of “evidence”.

One of the reasons blogs are powerful business building tools is that they offer quick, easy and lasting communication.   One of the most potent uses of a blog is creating authority.  In that post, I defined authority as trust + power… the power to motivate people to take action.

Adam Singer writes in his blog post Influence, Trust And Authority

Trust is a gray area to measure using quantitative metrics.  Measuring an idea as subjective and nuanced as trust is difficult because you can never escape the simple fact that trust is relative.  Someone may have a personal blog with only 20 readers, but those 20 readers soak in every word and trust the author deeply, taking any calls to action suggested and studying each word carefully.  That person may be more trusted by their small, but loyal following than far more popular bloggers with greater numbers.

In his example, Adam is showcasing a common scenario in the world of business blogging where a “small time” blogger has engendered a high degree of “authority” with a relatively small audience.

In the post “Trust is not Transitive”  I wrote about how it takes quite a while to build trust and how trust is not easily transferred from one person to another.  While Andy Beards’ readers trusted him – they weren’t ready to instantly “trust” some of his recommended resources.  Andy had achieved a level of “trust” with his extensive blogging audience – and when he used his blog to sell his products and services – his audience was responsive.  However, when Andy began recommending other resources – his readers did not respond.  Andy had achieved “trust” with his readers – but hadn’t reached “authority” status with his readers.

Building a level of trust that is transitive is what I refer to as “authority” – the ability to recommend products and/or services beyond your control and have your audience act upon your recommendation.

Cath Lawson demonstrates just such “authority” in her post about making money online by selling what you know.  In her post, she not only promotes her own ebook  Write an Ebook in 7 Days – but she also promotes the ebooks of other authors as well. In our whole “trust vs authority” example – Cath’s post will effectively “sell” her ebook to readers with whom she has established a certain level of trust.  Meanwhile, Cath’s post will sell the ebooks of other authors to readers with whom she has established authority.

That’s an important distinction which  the “get rich quick with blogging and promoting affiliate links” gurus frequently overlook.

In order to sell the products and services of others with your blog, you need to establish a level of trust known as authority.

Eric Holmlund has clearly demonstrate the power of how powerful blogging authority can be in his post “Am I liable for this – you be the judge“. Eric shares an email he received from a reader who hired a copywriter – Nicolas Cole – based upon Eric’s recommendation in an earlier blog post.  Long story short – the copywriter didn’t deliver and the reader was asking Eric for a refund, because after all – he wouldn’t have hired Nicolas had Eric not recommended him on his blog.

When I first saw the post  – it had over 700 comments.   Forty eight hours later, that number had grown to over 900 and when the dust settled the number of comments had grown to over 1000.   Imagine having hundreds of prospective clients gathering in one place to debate whether or not someone who recommended your services should offer a refund because you didn’t deliver.  Talk about an online reputation nightmare in the making!

However, beyond what was happening to Nicolas Cole’s online reputation – notice how the reader hired Nicolas and paid him over $1300 to write copy based solely upon Eric’s recommendation .  Whether you think Eric was liable or not – the reader obviously felt enough of a connection with Eric to act upon his recommendation without further research. This is an clear illustration of the power of authority. Eric built a such a connection with a virtual stranger powerful enough that when he recommended a copywriter – the reader hired him and paid him over a thousand dollars to retain his services.

You don’t build that kind of a connection with strangers in a few blog posts.  It takes time and it takes consistency.  Eric has been blogging regularly since 2006 and this particular recommendation was from a post dated October 2009 which Eric then went back and revised.

Creating authority with your business blog does NOT happen in the matter of a few posts but it does happen.  It begins by creating a level of trust with your readers – and then slowly but surely progresses to a level of authority.  By the way, that kind of trust is only created when you overcome your business fear of sharing.

Only when you’ve created trust with your readers will they open themselves up enough to allow you to pull the emotional triggers which encourage them to purchase your products or services.   If your marketing efforts are falling flat – it’s time to take a good hard look at whether you’re doing what it takes to establish trust with your target audience.

Filed Under: Building Trust with Blogs Tagged With: , , , ,
March 24, 2010

Your Business Blog is Good for Business

I’ve been saying for a long time that business blogging is by far the best investment of time/energy/resources you can make for your business.  Well’ now it’s official –  a recent study proves that your business blog is good for business.  Emarketing commerce reports:

Majority of Business Blog Traffic Comes From First-Time Visitors

Two-thirds of respondents to a survey conducted by Compendium Blogware found that more than 80 percent of all of their blog traffic was from first-time visitors.  For the survey, Compendium Blogware, a social media and search platform provider, gathered data from 266 companies about blogging traffic, visitor trends and Twitter usage. … First-time visitors come from two major sources, Compendium said: referring sites and search engines.

These results are hardly surprising.   Blogs – especially the WordPress variety – are extremely search engine friendly in their architecture.  Combine that with the fact that the act of blogging about your business tends to create content which is rich in the keywords your desired prospective customers/clients are using to find the very solutions you and your business offer.

However, the fact that your business blog can be found more easily by your ideal customers is just the tip of the iceberg.   Once those prospective customers/clients discover your business blog – the blog posts you’ve created over the months/years go to work establishing your authority.

So if blogging is indeed good for business – why aren’t more business owners blogging?

One of the most common objections I hear from business owners about blogging is that they don’t have time to blog.  Sometimes this objection is based upon the mistaken belief that to “blog” means to write incessantly – creating multiple blog posts each and every day.   However, it’s been my experience that most objections about perceived time poverty are instead a cover for the “real” objection to business blogging: not knowing what to write about.

In Unseen Business Killers, I offer a sure fire way to determine if  “I don’t have time to blog” is a reason or an excuse.

It’s easy to determine if “I don’t have time to blog” is an excuse or a reason.  If you really don’t have time to blog for your business, you can either

  • hire someone to blog for your business or
  • hire someone to assume some of your duties so you can find time to blog.

It’s just that simple.  You can usually find time to do what’s important – and blogging is important for your business.  It’s a great way to get found by prospective clients/customers – and it’s a great way to establish enough trust with them so they’ll take the next step and contact you.

The act of business blogging can be as simple as reworking emails you (or members of your staff)  have sent to both current and prospective clients/customers. As a matter of fact, sometimes the subject lines of those incoming emails make GREAT blog post titles.

Once you’ve got a great blog post title that gets your blog found by the search engines, then get to work creating relationships.  Once people find your business via the search engines, they then needed to form a relationship with the people behind your business.   Building a relationship is part of  the whole TRUST thing I go on about here.  Building trust is what social media does best.

THAT is why business blogging is so darned good for your business.  Not only can those blog posts act as bait to bring in first time visitors who are seeking the solutions your business provides – those same posts can also carry some of the “trust building” weight as well.  Prospective clients/customers find your blog – read your blog posts – and decide after reading a few dozen articles that – yeah – you really can help them achieve their Goals – quench their Desires – or solve their Problems.  In other words, not only can your blog posts act as bait – they can also start to work on establishing your connection to your prospective client/customer’s GDP.

No wonder business blogs are so good for business!

Filed Under: Building Trust with Blogs Tagged With: , , , , , ,
February 23, 2010

Creating Authority with Your Business Blog

I’ve talked a lot about how your business blog can be used to build trust with prospective clients – especially if you’re in the business of “selling your knowledge.”  However, there’s another term which is emerging which may be an even more compelling reason to begin blogging for your business.

That term is AUTHORITY and it’s becoming a buzz word in the world of business blogging because business blogging is a powerful and effective tool you can use to establish your authority.

Authority is powerful stuff.  According to Dictionary.com, one of the definitions of authority reads:

“right to respect or acceptance of one’s word, command, thought, etc.; commanding influence: the authority of a parent; the authority of a great writer.”

Think of authority as the natural next step in the whole “trust building” process.

Authority =  trust + power… the power to motivate people to take action.

There have been lots of behavioral studies surrounding the power of authority.  One of the most cited works on obedience to authority is the Yale study conducted by Stanley Milgram.  In the study, inspired by the trial of the Nazi war criminal Adolf Eichmann, Milgram sought to answer the deeply troubling question of whether authority could cause a person to contradict their deeply held beliefs.

In the study – volunteers were recruited and told they were part of an experiment which tested memory and learning in different situations.  The “administrator” was dressed in a lab coat and armed only with a clip board. and  the “student” was actually an actor.  The true subject of the study was the volunteer – who was assigned the role of “teacher” in the experiment.   The volunteer was instructed  to administer increasing electric shocks to the “student”.  The results of the experiment were sobering to say the least… 26 of the 40 volunteers went on to administer the maximum (fatal) voltage three times, despite the student’s pleas for mercy and apparent impending death.   Only one participant refused to administer shocks to the student.

That’s the power of authority.

In the study – the stage for the administrator’s authority was planned carefully.  The administrator was dressed in a lab coat and given a clipboard.    In later subsequent studies, it appears the “uniform” is an important control in creating the appearance of authority.  While the uniform in the original experiment was a lab coat and clipboard, subsequent experiments and a few well known scams have used police uniforms to create the authority required to quickly gain the trust needed to influence people to act in ways they would not without the misuse of the  power of authority.

Blogs are the “uniform” of authority on the web

So if you’ve been wondering what all the “fuss” is over business blogging – it’s this:  Business blogs are great tools for building authority.  Bloggers in every niche are constantly being cited regularly as “reliable sources” by various media outlets.  Search is a tool used by journalists worldwide – and blogs are very search engine friendly.

Which is why – blogs are quickly becoming the “uniform” of authority on the web.

However, it’s important to remember that trust – and the resulting authority – are not earned quickly nor easily.  The newly minted police officer who abuses the privileges his uniform imparts is quickly dismissed from the police force.  The same is true of your business blog.

Blogging authority does not come from a single blog post.  It doesn’t even come from a dozen or so blog posts.  In many cases, it comes from literally HUNDREDS of blog posts on a specific subject.

The path to authority begins with building a foundation of trust.  You gain the trust of your blog readers by providing lots and lots of quality content.  You answer the questions your readers are struggling to answer with your blog posts.  You give behind the scenes “glimpses” of how you solve problems.  You demonstrate your expertise time and time again through your blog posts.

Lather – rinse – repeat.

That’s how you “earn”the uniform of authority via blogging on the web.  It doesn’t happen overnight – but it does happen – one authority building business blog post at a time

Filed Under: Building Trust with Blogs Tagged With: , , , , , , ,
October 5, 2009

The impact of social media…

social-media-marketingI’m beginning to wonder if the rise of social media may be playing an unseen and unmeasured  role in the US economic crisis.

This thought train began a few months ago while watching Mad Money.  Jim Cramer was talking about Nokia and Dell – two companies who were blaming dismal sales on the state of the economy. Cramer correctly pointed out that if it’s “raining” for one business then it should be “raining” on everyone in the neighborhood.  So while both these companies were complaining about the dismal economy and how it’s the reason for their suffering sales, both these companies have competitors who are:

a) kicking their respective asses with better products and better customer service

b) doing great in sectors with strong growth despite the “dismal” economy.

Which made me wonder -are Nokia and Dell’s sales figures victims of social media? After all, if there were ever going to be two products heavily affected by negative buzz in social media circles, two sectors which would be appropriate “canaries” would be the mobile phone and computers.

Is is possible social media is responsible for slowly killing these giant companies?

“Social Media – it’s a moral imperative”

Social media makes communication easy, fun but most importantly PERMANENT!

There was a time – when your advertising and other marketing messages didn’t live forever, easily accessed by the search engines.

That was then – this is now.

Disappoint customers today and they’ll take to the tools of social media to share their experience with others. Those disparaging remarks will live on – and if you’re not on top of your online reputation’s SERPS – those customer complaints may end up being featured front and center.

The consequences of disappointing your customers can be more severe than just a negative rating on a single website. Disappointed customers who feel strongly can now easily, post a Tweet, create a video – create a Facebook Fan Pages – or worse yet – blog about your current customer service.

I’m working on a Dell computer.  Well, it’s a Dell wearing an Alienware mask.  I was sold on Alienware – not from an ad in a magazine but from personal recommendations from other Alienware users. I purchased my Alienware shortly after they were acquired by Dell.  In short, I spent $2500 on a freaking POS Dell computer with a souped up power supply and a glowing alien face.  I bought the BS being spread that Dell wouldn’t impose their shitty quality upon the Alienware line.

To say I’ve been disappointed with my Dell purchase would be an understatement.  Let’s just say – tears were shed, threats were issued and I was loading up my Sunpass for a trip to Miami to visit the Alienware headquarters to voice my displeasure in person.  When I heard Dell’s earning suck – my thought was  “GOOD!!! If they’re still in business – their earnings don’t suck enough!!!!”

Is it possible that the Dell “economic slow down” is really just the result of information flowing freely online? Is it possible Dell’s woes are not rooted in poor economic conditions but rather the fact that they sell crappy computers?   Is it possible their users are WARNING others via social media?

Which got me to thinking… is it possible that Betsy Wuebker’s post WELLS FARGO DUMPS ON A GRIEVING MOTHER is joining forces with literally hundreds of other Wells Fargo customer service horror stories?  Is it possible that these individual blog posts could eventually create a tsunami for Wells Fargo?

Which brings up the question…

Is social media already making a real economic impact on businesses?

Jim Cramer only stated that poorly run companies often blame their poor performance on the market instead of upon management where it belongs.  However, as Cramer  talks about products that don’t perform – I keep thinking of blog posts which have “outed” those products long ago and still linger online today.

How many blog posts does it take to bring down a corporate giant?  Has social media as a medium reached the point of being capable of taking down a company of any size?

I don’t believe that we’ve reached that “critical mass” yet – but I believe that day is coming.  Stay tuned!

Filed Under: Building Trust with Blogs Tagged With: ,
September 15, 2009

Social Media Tells Customer Service Stories

transparency in social mediaWay back in 1980 – long before the days of the internet – in a time when “social media” meant a party organized around watching a sporting event on television – executives at Braniff had a problem.  They needed to find a way to differentiate their airline from other airlines.  The question they asked was simple,

“What can we offer to our customers that they will perceive as having high value yet costs us virtually nothing to provide?”

The answer to that question is what we now know as the “frequent flier miles” program.  It was a GREAT idea so  – of course, other airlines quickly copied the concept.   While in Braniff’s case it was a great idea which came too late – other airlines instantly recognized the brilliance of offering repeat customers an intangible which cost virtually nothing yet was valued highly by those customers.

The success of the customer loyalty programs in general is well documented.   Since the cost to acquire a customer is commonly accepted to be from 4- 15 times more than the cost to retain a current customer – finding a way to retain current customers by simply providing discounted fares – on seats that normally would be empty- was nothing short of a marketing miracle. When one considers that a business traveler may spend over a half a million dollars on airline tickets during the course of his/her career – it’s easy to see why frequent flier programs are a staple in the airline industry.   The airline industry as a whole has struggled over the past decade as the dual horrors of market maturity met national security for the sector.   However, while airline executives blame fluctuating fuel costs and labor woes on their troubles- a quick trip around the blogosphere reveals quite a different picture.

With the exception of South West – the major airlines are struggling to provide basic customer service – and customer service woes make GREAT blog fodder.  Dave Carroll created a social media shit storm with his “United Breaks Guitars” music video.  The creation of that video wasn’t the result of a single “dropped the ball” in the customer service department at United Arilines – it was the result of consistent and blatant disrespect of the customer.  No amount of frequent flier miles could placate Dave Carroll. On the heels of that debacle – United’s social media woes continued to make news when Wang Jianshuo – a famous Chinese blogger – documented his horrific experience in flying United Airlines.

Now  however – the customer service horror stories are moving from the plane to the computer and the lack of customer attention is infecting the very lifeblood of a major airline’s frequent flier program.   Matt Cutts documents his own Bad Experience with U.S. Airways Dividend Miles and the post does not paint a pretty picture for US Airways.  The post is acting as a sounding board for others who feel free to share their bad experiences inside a US Airways flight as well.  For those of you don’t know – Matt Cutts is Google’s “front man” who blogs frequently about how to get your web site to get better visibility with the search engine giant.

Talk about a worst case scenario when it comes to social media in action – if there’s one blogger I would HATE to have “bitching” about my business – it would be the man who is the front man for Google’s search.

The PURPOSE of the frequent flier program was to create customer loyalty.  By implementing this game of “bait and switch” – US Airway’s frequent flier program is beginning to look like a shell game.  Matt Cutts is blowing the whistle.  It will be interesting to see (if) how US Airways responds.

If there’s one thing business owners MUST know about social media – it’s the unadulterated view of your business it provides.  You can sit in your office, close the blinds and tunr off the lights and tellyourself that your vision of your business is shared by your customer.. However, a quick trip via social media airlines will give you the “real” picture.  Whether or not it’s a picture you want to see is another story.

If there’s one lesson for businesses big and small to learn from social media – it’s that your customers are talking just as they’ve always done.  However, thanks to social media – you now have an “insider’s view” of what’s being said when the customer service stories are being told.

Filed Under: Building Trust with Blogs Tagged With: , ,
September 11, 2009

When social media isn’t enough…

social media marketingLong long ago, Liz Strauss wrote the immortal words – “Your blog is not your business”.  Recently – I had a conversation with a client who learned that lesson – the HARD way.

“Amy” [not her real name] was referred to my business a couple of years ago.  The story behind how she came to me is very common – at least in my practice.  Years earlier, she had paid BIG money to a web developer to create a web site for her brand new business.  Because she didn’t know a lot about this strange world known as “the internet” she assumed that her web site would cause people to line up to hire her to do work for their business.  When that didn’t happen – she began doing some homework.

When she began doing her homework she learned that the search engines drive most of the traffic on the internet.  So, she typed in some words she thought people would use to find her business.   Her web site – the one she paid BIG buck (five figures) to have developed – didn’t show up.  So she tried some other words and her site STILL didn’t show up – ANYWHERE.  She contacted her web developer and asked what was up – and he told her to be patient.  Things like that take time, he said.  She she was patient – she waited a couple of YEARS and still nothing.

She began talking to other people and eventually had a conversation with one of my clients.  She contacted me and asked me to take a look at her site.  Long story short- even though her page LOOKED great through a browser – it had been cobbled together in such a manner that it was anything but search engine friendly.  Even though the site “looked” fine through a browser – that’s not how the search engines see a web site.  They look at the code – and in this case, it was a real mess.

She told me she loved the site and didn’t want to change the way it looked.  (I later learned the web developer is a friend of her husband’s and I suspect she didn’t want to have a show down with him.)  I assured her we could accomplish her objective in a much more cost effective manner by launching a self hosted WordPress blog to work in concert with her web site.

Her problem: she wanted her web site to be found in Google.  The solution: we launched a self hosted WordPress blog to act as “bait”.  She could link liberally to her “traditional” web site using the blog  and when potential clients found her blog – she could send them to her site to “close” the sale.

When you go fishing – it’s not realistic to expect fish to jump into your boat.  So, you take fishing poles, hooks and various bait to catch the fish.  We were going to set up her blog to act as bait.  Of course, because there is no such thing as “marketing magic”, Amy had to learn how to USE her WordPress blog correctly.  Amy is one of the inspirations for my 8 Week Power Blog Launch product.  Her questions – combined with the questions asked by other clients – are the basis for the “curriculum” in the course.

Page One in Google

Recently, Amy contacted me.  Her blog articles had achieved her objective.  Her content is now appearing on the first page of Google’s results for her desired keyword – a fairly competitive keyword by the way.  However, if you think that the phone call was filled with rejoicing – it wasn’t.

Amy was disheartened and discouraged.  Even though she had achieved her objective of her blog content being found on Google’s first page – her business still wasn’t thriving.  As a matter of fact, she didn’t have a single client – and she had recently had to get a job to make ends meet.  She was ready to throw in the towel.

So, the first question I asked Amy was to describe her business model to me.  She launched into an exhaustive commentary on her marketing efforts.

“Amy, you’ve just listed the various marketing tactics you’re using to promote your business.  What is your business model?  How do you expect to make money from your business?”

“Well, people read my blog posts, go to my web site and then hire me.   I’m getting lots of traffic – but no one is contacting me to hire me.”

What followed was a distillation of my book, Beyond the Niche: Essential Tools You Need to Create Marketing Messages that Deliver Results In a nutshell – Amy’s business is engaged in making what is known as a Major Sale.  However, most of the “marketing tactics” Amy had been engaging in are only effective in marking Minor Sales.  Most of the sales/marketing advice you find (online and offline)  is geared towards  Minor Sale products, which is why Neil Rackham spent a small fortune and 12 years of his life defining and documenting the difference between Major Sales and Minor Sales.

When I first read Spin Selling – where Rackham documents his findings – I immediately recognized that many popular “marketing tactics” are geared towards making Minor Sales.  I’d been working with businesses on their advertising as an advertising account executive for over a decade when I first read the book – and it was truly an “aha” moment for me.  The Major/Minor Sale definition explained why marketing tactics – from radio remote broadcasts to midnight madness sales-  would work so well for one client, yet fail miserably for another.

Amy had been blogging with the goal of being found in the search engines.  She focused on creating creative blog post titles instead of creating relationships.  She didn’t recognize that once people found her via the search engines, they then needed to form a relationship with her so they could TRUST her.  See,  TRUST is an integral part of making the Major Sale – and social media is a GREAT way to build your business with social media– by establishing a relationship with potential clients and customers.

This  is why I cringe when I see an article which touts “the importance of search engine optimizing your Facebook profile” – or when I read someone touting Twitter or Facebook as the “quick easy way” to build your business.  Twitter, Facebook, and blogging are all tactics and nothing more.  Tactics are great when you’re on a mission to accomplish a pre-defined goal as part of a marketing strategy.  Tactics are exhausting when deployed using the “spray and pray” method of marketing.

When you read that “blogging” is dead – you’re probably reading the rant of someone who didn’t understand the difference between tactics and strategy.  A blog is a GREAT communication tool which – when used correctly.

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