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March 2010




Tapping the Consumer Voice to Drive Growth



                               RIDING THE TSUNAMI:
                               HARNESSING THE POWER
                               OF SOCIAL MEDIA
                               by Lindsay Pedersen



                               Why Use Social Media
                               As marketers, it is our role to drive demand for our businesses
                               by empathizing with our consumers. Social media provides
                               a powerful empathy tool by enabling us to listen, engage,
                               participate and encourage conversations that can turn loyal
                               consumers into passionate advocates.

                               Social media is clearly striking a chord among a growing
                               segment of consumers, and no longer only among techies
                               and young people. Traffic to social networking sites has
                               risen meteorically in the last year, as has the amount of
                               time individuals spend on those sites. Why is social media
                               resonating so? What do consumers find so compelling?

                               We believe that there are two fundamental consumer needs
                               driving the growth of social media:

                               1: EMOTIONAL NEED TO FEEL HEARD
                               Social networking deeply satisfies people’s need to feel heard.
                               They enjoy advocating for brands that they love, and are
                               gratified when given the opportunity to expound upon topics
                               they are passionate about.




© 2010 LCP Consulting, LLC | www.lcpconsultingllc.com                                                 1
RIDING THE TSUNMAI: HARNESSING THE POWER OF SOCIAL MEDIA                                     March 2010




                               2: PRACTICAL NEED TO FILTER INFORMATION
                               Social media also can serve as a filter in an increasingly
                               overwhelming information environment. By using social media
                               to learn about products, consumers can cut through the flood
                               of information on the Internet to yield information only from
                               like-minded networks of individuals. In this way, social media is
                               edging out traditional Internet searches, thereby transforming
                               the purchase consideration process.

                               In order to harness the true power of social media, marketers
                               should remain attuned to these fundamental consumer needs
                               that are driving social media’s popularity among consumers.

                               How to Succeed with Social Media
                               Social media marketing today presents many of the
                               challenges posed by Internet marketing during the mid-to-
                               late 1990s. Back then, marketers knew that the Internet was
                               a revolutionary way to market their products, and that it was
                               an important component of their marketing mix. But given
                               the unchartered nature of Internet marketing, they were
                               struggling with how to use it.

                               Many marketers are facing the same uncertainty with social
                               media. For those of you searching for some proven success
                               tips, here are the demonstrated best practices our research
                               has uncovered.

                               1: USE SOCIAL MEDIA AS A TACTIC (NOT A
                               STRATEGY)
                               Marketers should not abandon their marketing strategy in
                               their enthusiasm for launching into social media. As important
                               as it may be, social media is not a strategy. Social media
                               is a tactic that, when used to activate a sound strategy,
                               can complement and augment the effectiveness of other
                               marketing efforts.

                               Before employing any marketing tactic, including social



© 2010 LCP Consulting, LLC | www.lcpconsultingllc.com                                                 2
RIDING THE TSUNMAI: HARNESSING THE POWER OF SOCIAL MEDIA                                       March 2010




                               media, revisit your marketing strategy. Describe your target
                               consumer, her habits, needs and interests with crisp and
                               incisive detail. Being inside the head of your consumer enables
                               you to focus on social media that is already relevant and
                               compelling to her. Articulate your brand’s positioning and
                               personality, and craft your message accordingly. What you say
                               (messaging) and how you say it (positioning and personality)
                               is as important as the vehicle you use.

                               A brand that does a great job bringing their strategy to
                               life through social media is Maximus-Minimus, a gourmet,
                                                          Seattle-area food truck appealing
                      Before employing                    to “foodies” who are also
                      any marketing                       sports fans. Maximus-Minimus’s
                                                          personality is irreverent but positive,
                      tactic, including
                                                          accessible and free-spirited, and
                      social media, revisit               their messaging reflects this. For
                      your marketing                      example, their vanity plate and
                      strategy.                           Twitter name both read “Some
                                                          Pig,” playfully conjuring pork,
                               their mainstay ingredient. Because their consumers tend to
                               be sports fans, Maximus-Minimus often parks near Safeco
                               Field, and uses Twitter to cheer for the Seattle Mariners.
                               Other Mariners fans then see Maximus-Minimus’s “tweet” and
                               become Maximus-Minimus followers on Twitter – even “re-
                               tweeting” their tweets, which further reinforces the brand.
                               This use of social media is a natural extension of Maximus-
                               Minimus’s strategy. The resulting buzz generates awareness
                               and a brand-appropriate feeling of goodwill toward Maximus-
                               Minimus.

                               2: EMBRACE A TEST-AND-LEARN CULTURE
                               To best position yourself to unleash the power of any
                               emerging tactic, including social media, know that some
                               endeavors will be more successful than others, and celebrate
                               this experimental attitude. This is easier said than done.
                               When you are spending precious marketing funds, it can feel



© 2010 LCP Consulting, LLC | www.lcpconsultingllc.com                                                   3
RIDING THE TSUNMAI: HARNESSING THE POWER OF SOCIAL MEDIA                                       March 2010




                               uncomfortable to try unproven tools. The best social media
                               marketers are embracing this discomfort as an opportunity to
                               make their marketing spending more effective.

                               One company that has reaped benefits from social media
                               marketing is Dreambox Learning, an online educational
                                                          math program for elementary
                      The best social                     school-aged children. Dreambox
                      media marketers                     Learning has embraced a “test
                                                          & learn” marketing culture in
                      are embracing this                  which marketers are encouraged
                      discomfort as an                    to try a variety of social media
                      opportunity.                        tactics in the spirit of learning.
                                                          Dreambox Learning’s acceptance
                               of uncertainty makes them nimble, enabling them to evolve
                               their social media tactics as their consumer base evolves.
                               For example, when Dreambox Learning’s marketers noticed
                               an unexpected advocate for their product in teachers,
                               they created social media tactics that engaged teacher
                               communities. Through its website, blog, Facebook page and
                               Twitter presence, Dreambox Learning keeps fans engaged
                               through a variety of messages and vehicles - including daily
                               tips for family activities, company news and video YouTube
                               contests.

                               Without the organization’s willingness to experiment,
                               Dreambox Learning never would have learned that this
                               resource could be a useful marketing lever.

                               3: ADOPT A TRANSPARENT AND AUTHENTIC
                               VOICE
                               There is something about social media that makes it easy
                               for people to sniff out overt promotion. The rule of building
                               your brand through social media, therefore, is transparency. A
                               company’s participation must truly add value to the consumer.
                               The efforts must be in a spirit of generosity and authenticity in
                               order to resonate.




© 2010 LCP Consulting, LLC | www.lcpconsultingllc.com                                                   4
RIDING THE TSUNMAI: HARNESSING THE POWER OF SOCIAL MEDIA                                        March 2010




                               Beecher’s Handmade Cheese, for example, even posts
                               messages on Facebook to support its competitors, because
                               Beecher’s recommendations are valuable to their artisan-
                               cheese-loving target. This establishes Beecher’s expertise,
                                                          fosters brand goodwill and
                      If your social media                trustworthiness, and ultimately
                                                          drives awareness and trial of their
                      gives something
                                                          own products.
                      valuable to fans and
                                                          Part of the appeal of social media is
                      followers, it builds
                                                          that people feel they are connecting
                      trust and credibility               with real people. Putting a face, a
                      for your brand.                     name and a real personality out
                                                          in front of a corporate logo allows
                               companies to establish a feeling of authenticity and familiarity
                               with their customers. For example, Kodak’s CMO, Jeffrey
                               Hayzlett, communicates regularly with his 12,000+ Twitter
                               followers about the ordinary happenings of his day.

                               4: TURN IT OVER TO INFLUENCERS
                               This goes back to embracing uncertainty. Previously, we
                               marketers tried to minimize uncertainty by testing our
                               messaging rigorously before launching a campaign. Now the
                               magic lies not in decreasing uncertainty, but in cultivating
                               advocates, and then letting them run with building your brand
                               in a way that resonates for them. This requires openness to
                               both positive and negative discussions about your product.
                               You must accept the negative along with the positive in order
                               to get truly compelling social media.

                               Influencers may be already-loyal consumers that you can
                               connect with one another and give a forum for discussing
                               your product. For example, Nike started a social community
                               on Loopd to connect athletes interested in similar activities
                               with the brand. Similarly, Graco has built a community around
                               sharing photos (via Flickr and the Graco blog) of Graco
                               baby products in use. To nurture this community, Graco




© 2010 LCP Consulting, LLC | www.lcpconsultingllc.com                                                    5
RIDING THE TSUNMAI: HARNESSING THE POWER OF SOCIAL MEDIA                                       March 2010




                               has organized real-life meet-ups that further vitalize the
                               influencers and humanize the company.

                                                          In effect, social media often
                      You must accept                     functions much like traditional
                      the negative along                  PR, only without the media as a
                      with the positive in                middleman between the company
                                                          and the consumer. Indeed, social
                      order to get truly
                                                          media still plays a key role even
                      compelling social                   in traditional PR outreach, as the
                      media.                              media now uses social media as a
                                                          source for stories. Company news
                               often breaks nowadays on social media sites (such as the
                               news of the Chow Foods partnership breaking on Twitter).
                               In order to own your PR story, you need to be using (and
                               reading) social media to reach the traditional media.

                               5: TAP INTO CONSUMER INSIGHTS
                               Social media is a useful (and, as a bonus, inexpensive) method
                               for understanding your customers. It can complement
                               traditional methods of market research and provide unique
                               and timely feedback on such topics as:

                                   BRAND HEALTH TRACKING – While it may not always
                                   be easy to hear criticism, listening to and responding to
                                   feedback can keep you close to your customers.

                                   INNOVATION – Savvy companies invite consumers into
                                   the innovation process, and now social media can facilitate
                                   that conversation. For example, Qdoba posted a tweet
                                   saying “Hey guys, what would you like to see new on the
                                   Qdoba menu?” and within 10 minutes, 170 suggestions
                                   flooded in. Qdoba often tweaks recipes and adds menu
                                   items based on feedback from Facebook and Twitter.

                                   MESSAGING EFFECTIVENESS – After new messages are
                                   introduced, companies can monitor social media to ensure
                                   their messaging effectiveness.




© 2010 LCP Consulting, LLC | www.lcpconsultingllc.com                                                   6
RIDING THE TSUNMAI: HARNESSING THE POWER OF SOCIAL MEDIA                                      March 2010




                               In sum, social networking is a powerful tool that harnesses and
                               returns untold energy and feedback from your consumers –
                               one that will likely be used by your competitors and definitely
                               by the consumers you are trying to reach. To effect positive
                               impact on your brand, it must be used with openness toward
                               and respect for the consumer, and should be a natural
                               extension of your brand.




                              Tapping the Consumer Voice to Drive Growth


                               LCP CONSULTING, LLC
                               Lindsay Pedersen, strategic marketing consultant and founder
                               of LCP Consulting, is an expert in tapping the consumer voice
                               to drive growth. With over 15 years of experience driving
                               growth through strategic solutions, Lindsay teams with
                               marketing executives to translate razor-sharp insights into
                               wildly successful businesses. You can find her at
                               www.lcpconsultingllc.com


                               © 2010 LCP Consulting, LLC. All rights reserved.




© 2010 LCP Consulting, LLC | www.lcpconsultingllc.com                                                  7

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Lcp Consulting White Paper Social Media

  • 1. March 2010 Tapping the Consumer Voice to Drive Growth RIDING THE TSUNAMI: HARNESSING THE POWER OF SOCIAL MEDIA by Lindsay Pedersen Why Use Social Media As marketers, it is our role to drive demand for our businesses by empathizing with our consumers. Social media provides a powerful empathy tool by enabling us to listen, engage, participate and encourage conversations that can turn loyal consumers into passionate advocates. Social media is clearly striking a chord among a growing segment of consumers, and no longer only among techies and young people. Traffic to social networking sites has risen meteorically in the last year, as has the amount of time individuals spend on those sites. Why is social media resonating so? What do consumers find so compelling? We believe that there are two fundamental consumer needs driving the growth of social media: 1: EMOTIONAL NEED TO FEEL HEARD Social networking deeply satisfies people’s need to feel heard. They enjoy advocating for brands that they love, and are gratified when given the opportunity to expound upon topics they are passionate about. © 2010 LCP Consulting, LLC | www.lcpconsultingllc.com 1
  • 2. RIDING THE TSUNMAI: HARNESSING THE POWER OF SOCIAL MEDIA March 2010 2: PRACTICAL NEED TO FILTER INFORMATION Social media also can serve as a filter in an increasingly overwhelming information environment. By using social media to learn about products, consumers can cut through the flood of information on the Internet to yield information only from like-minded networks of individuals. In this way, social media is edging out traditional Internet searches, thereby transforming the purchase consideration process. In order to harness the true power of social media, marketers should remain attuned to these fundamental consumer needs that are driving social media’s popularity among consumers. How to Succeed with Social Media Social media marketing today presents many of the challenges posed by Internet marketing during the mid-to- late 1990s. Back then, marketers knew that the Internet was a revolutionary way to market their products, and that it was an important component of their marketing mix. But given the unchartered nature of Internet marketing, they were struggling with how to use it. Many marketers are facing the same uncertainty with social media. For those of you searching for some proven success tips, here are the demonstrated best practices our research has uncovered. 1: USE SOCIAL MEDIA AS A TACTIC (NOT A STRATEGY) Marketers should not abandon their marketing strategy in their enthusiasm for launching into social media. As important as it may be, social media is not a strategy. Social media is a tactic that, when used to activate a sound strategy, can complement and augment the effectiveness of other marketing efforts. Before employing any marketing tactic, including social © 2010 LCP Consulting, LLC | www.lcpconsultingllc.com 2
  • 3. RIDING THE TSUNMAI: HARNESSING THE POWER OF SOCIAL MEDIA March 2010 media, revisit your marketing strategy. Describe your target consumer, her habits, needs and interests with crisp and incisive detail. Being inside the head of your consumer enables you to focus on social media that is already relevant and compelling to her. Articulate your brand’s positioning and personality, and craft your message accordingly. What you say (messaging) and how you say it (positioning and personality) is as important as the vehicle you use. A brand that does a great job bringing their strategy to life through social media is Maximus-Minimus, a gourmet, Seattle-area food truck appealing Before employing to “foodies” who are also any marketing sports fans. Maximus-Minimus’s personality is irreverent but positive, tactic, including accessible and free-spirited, and social media, revisit their messaging reflects this. For your marketing example, their vanity plate and strategy. Twitter name both read “Some Pig,” playfully conjuring pork, their mainstay ingredient. Because their consumers tend to be sports fans, Maximus-Minimus often parks near Safeco Field, and uses Twitter to cheer for the Seattle Mariners. Other Mariners fans then see Maximus-Minimus’s “tweet” and become Maximus-Minimus followers on Twitter – even “re- tweeting” their tweets, which further reinforces the brand. This use of social media is a natural extension of Maximus- Minimus’s strategy. The resulting buzz generates awareness and a brand-appropriate feeling of goodwill toward Maximus- Minimus. 2: EMBRACE A TEST-AND-LEARN CULTURE To best position yourself to unleash the power of any emerging tactic, including social media, know that some endeavors will be more successful than others, and celebrate this experimental attitude. This is easier said than done. When you are spending precious marketing funds, it can feel © 2010 LCP Consulting, LLC | www.lcpconsultingllc.com 3
  • 4. RIDING THE TSUNMAI: HARNESSING THE POWER OF SOCIAL MEDIA March 2010 uncomfortable to try unproven tools. The best social media marketers are embracing this discomfort as an opportunity to make their marketing spending more effective. One company that has reaped benefits from social media marketing is Dreambox Learning, an online educational math program for elementary The best social school-aged children. Dreambox media marketers Learning has embraced a “test & learn” marketing culture in are embracing this which marketers are encouraged discomfort as an to try a variety of social media opportunity. tactics in the spirit of learning. Dreambox Learning’s acceptance of uncertainty makes them nimble, enabling them to evolve their social media tactics as their consumer base evolves. For example, when Dreambox Learning’s marketers noticed an unexpected advocate for their product in teachers, they created social media tactics that engaged teacher communities. Through its website, blog, Facebook page and Twitter presence, Dreambox Learning keeps fans engaged through a variety of messages and vehicles - including daily tips for family activities, company news and video YouTube contests. Without the organization’s willingness to experiment, Dreambox Learning never would have learned that this resource could be a useful marketing lever. 3: ADOPT A TRANSPARENT AND AUTHENTIC VOICE There is something about social media that makes it easy for people to sniff out overt promotion. The rule of building your brand through social media, therefore, is transparency. A company’s participation must truly add value to the consumer. The efforts must be in a spirit of generosity and authenticity in order to resonate. © 2010 LCP Consulting, LLC | www.lcpconsultingllc.com 4
  • 5. RIDING THE TSUNMAI: HARNESSING THE POWER OF SOCIAL MEDIA March 2010 Beecher’s Handmade Cheese, for example, even posts messages on Facebook to support its competitors, because Beecher’s recommendations are valuable to their artisan- cheese-loving target. This establishes Beecher’s expertise, fosters brand goodwill and If your social media trustworthiness, and ultimately drives awareness and trial of their gives something own products. valuable to fans and Part of the appeal of social media is followers, it builds that people feel they are connecting trust and credibility with real people. Putting a face, a for your brand. name and a real personality out in front of a corporate logo allows companies to establish a feeling of authenticity and familiarity with their customers. For example, Kodak’s CMO, Jeffrey Hayzlett, communicates regularly with his 12,000+ Twitter followers about the ordinary happenings of his day. 4: TURN IT OVER TO INFLUENCERS This goes back to embracing uncertainty. Previously, we marketers tried to minimize uncertainty by testing our messaging rigorously before launching a campaign. Now the magic lies not in decreasing uncertainty, but in cultivating advocates, and then letting them run with building your brand in a way that resonates for them. This requires openness to both positive and negative discussions about your product. You must accept the negative along with the positive in order to get truly compelling social media. Influencers may be already-loyal consumers that you can connect with one another and give a forum for discussing your product. For example, Nike started a social community on Loopd to connect athletes interested in similar activities with the brand. Similarly, Graco has built a community around sharing photos (via Flickr and the Graco blog) of Graco baby products in use. To nurture this community, Graco © 2010 LCP Consulting, LLC | www.lcpconsultingllc.com 5
  • 6. RIDING THE TSUNMAI: HARNESSING THE POWER OF SOCIAL MEDIA March 2010 has organized real-life meet-ups that further vitalize the influencers and humanize the company. In effect, social media often You must accept functions much like traditional the negative along PR, only without the media as a with the positive in middleman between the company and the consumer. Indeed, social order to get truly media still plays a key role even compelling social in traditional PR outreach, as the media. media now uses social media as a source for stories. Company news often breaks nowadays on social media sites (such as the news of the Chow Foods partnership breaking on Twitter). In order to own your PR story, you need to be using (and reading) social media to reach the traditional media. 5: TAP INTO CONSUMER INSIGHTS Social media is a useful (and, as a bonus, inexpensive) method for understanding your customers. It can complement traditional methods of market research and provide unique and timely feedback on such topics as: BRAND HEALTH TRACKING – While it may not always be easy to hear criticism, listening to and responding to feedback can keep you close to your customers. INNOVATION – Savvy companies invite consumers into the innovation process, and now social media can facilitate that conversation. For example, Qdoba posted a tweet saying “Hey guys, what would you like to see new on the Qdoba menu?” and within 10 minutes, 170 suggestions flooded in. Qdoba often tweaks recipes and adds menu items based on feedback from Facebook and Twitter. MESSAGING EFFECTIVENESS – After new messages are introduced, companies can monitor social media to ensure their messaging effectiveness. © 2010 LCP Consulting, LLC | www.lcpconsultingllc.com 6
  • 7. RIDING THE TSUNMAI: HARNESSING THE POWER OF SOCIAL MEDIA March 2010 In sum, social networking is a powerful tool that harnesses and returns untold energy and feedback from your consumers – one that will likely be used by your competitors and definitely by the consumers you are trying to reach. To effect positive impact on your brand, it must be used with openness toward and respect for the consumer, and should be a natural extension of your brand. Tapping the Consumer Voice to Drive Growth LCP CONSULTING, LLC Lindsay Pedersen, strategic marketing consultant and founder of LCP Consulting, is an expert in tapping the consumer voice to drive growth. With over 15 years of experience driving growth through strategic solutions, Lindsay teams with marketing executives to translate razor-sharp insights into wildly successful businesses. You can find her at www.lcpconsultingllc.com © 2010 LCP Consulting, LLC. All rights reserved. © 2010 LCP Consulting, LLC | www.lcpconsultingllc.com 7