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Three Types of Insights That Will Help Shape Your Strategy

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Three Types of Insights That Will Help Shape Your Strategy

Ideas without insights - especially coming from a group of people who usually are very far removed from the audience - are akin to throwing darts in the dark. Even the best ideas, without direction, won’t hit their mark. These brain dumps are a waste of everybody’s valuable time. You need to start with research.

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Research is 75% of Strategy

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Research is 75% of Strategy

When most people think of marketing, they think of the ads and promotions - the visible stuff. But for the great campaigns, the real magic happens long before those ads and promotions are even dreamt up. The real magic happens in the research and insights.

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Why YouTubers are Cashing In (hint: they are worth it)

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Why YouTubers are Cashing In (hint: they are worth it)

moneyteen I've read more than a few articles that sensationalize the large dollar amounts that Digital Influencers are making. I've also overheard many people having conversations about this that indicate they think this is frivolous. I want to tell you that when I hear anyone snicker at what Digital Influencers are making, I automatically think:

  1. That person is out of touch with the reality of marketing today - these kids in their bedrooms with their iPhones making videos are who people listen to (especially Millennials, who everyone seems to want to reach).
  2. That person is going to regret their dismissal of Digital Influencers when they are priced higher than the current market rates for other forms of advertising.

Just because you don't understand why this is happening doesn't mean it isn't happening. And it's only the beginning.

Doing The Basic Math

The simplest way to describe the value is by presenting the basic math. When you work with a Digital Influencer, you are getting more than someone sitting in their bedroom for a few hours recording and editing a video. You are getting video production/editing/direction, talent, natural amplification AND celebrity/influence.

If I was to conservatively price out a basic YouTube video looking for 100,000 views (equivalent views to a mid-range YouTube influencer with around 200,000 subscribers), it would look like this:

Scripting/production/shooting/editing - $5,000 (for really basic stuff) Hiring basic talent (with charisma) - Average $250/hr - ACTRA says you have to pay for a full 8-hour day - $2,000 Boosting - Assuming the CPV (Cost per View) is $0.05 = $5,000 for 100,000 views Influence/Celebrity - hard to price this, but Kim Kardashian makes $100,000/hr for appearances and Snooki makes $25,000. Neither of them show up on the most influential list. Let’s be conservative, though, and say $10,000 for the appearance.

That nets out to a very conservative estimate of value for a YouTuber with 200,000 subscribers (and ~100k views/video on average) to $22,000 per video.

And when I say that I was being conservative about this estimate, think about the costs of a 30-second TV spot - which is reaching fewer and fewer people (and, in my opinion will continue to decline in relevance...if there ever was much anyway). According to the American Association of Advertising Agencies, the average cost of a 30-second spot on television in 2011 was $354,000. That's a pretty penny.

So, when Jerome Jarre, who has 7.2 million followers (and rapidly growing) on Vine is reported to make $35,000/vine, I say those brands get a helluva deal! Don't tell Jerome, but he should be making $500,000+ if he was charging for just the boosting capability (his vines see >10million unique views)!

I guess the $1,000,000 offer he turned down was a good move after all:

[youtube https://www.youtube.com/watch?v=CIuJOYceU3o?wmode=transparent]

The Bottom Line

When you hire a Digital Influencer, you aren't paying for the few hours they take to record the video or the quality of the camera or editing work. You are paying for their SOCIAL CAPITAL, which in their world is VERY tangible.

You can see their subscriber numbers and the way their audience is deeply engaged in everything they do (from what they are wearing to who they listen to and beyond). They've spent years building deep trust with their audience by investing in them and being open and transparent. According to a study by Variety, Digital Influencers rate higher than Hollywood celebrities in influencing purchases.

To dismiss them for being too young or their work being too fun/easy or their content being too casual is to completely miss the reality of the situation: your brand should have invested in digital content years ago. Just one 30-second spot would fund anywhere from 1-10 YouTube stations for a full year (depending on your production investment + complexity). That sort of investment would mean a smaller long-term investment, bringing that efficiency that many companies look for today.

The building your own audience ship hasn't sailed quite yet, though. Condé Nast, under the amazing leadership of Dawn Ostroff, is investing in a better digital content strategy on YouTube and it's really paying off. Their audience is growing rapidly as are their organic views. Much of their content is modelled on the types of videos the audience enjoys: entertaining, funny and authentic.

I still believe that working with Digital Influencers is one of the strongest short term marketing tactics you can deploy today and going forward, but it's also important you learn from them and invest in becoming an influencer yourself.

Let me know how you are investing in an audience below.

[title image credit: Thinkstock]

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How to be Creative

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How to be Creative

fairydust_vert
fairydust_vert

My work is fundamentally creative. There are loads of analytical pieces, but at the end of the day, marketing is about making a connection with human beings who are not as predictable as marketers would like to think. Yes, there are lots of studies on consumer behavior and human drive and we can move the needle by tapping into those things that motivate buying behavior, but so is everyone else and the companies that 'win' the loyalty and sales are the ones that are more creative.

Content marketing, which is the focus of my current consulting, is all about being creative. There is a good amount of noise out there: companies writing blog posts, producing video series and posting regularly to social media channels, and most of it really doesn't matter. It follows formulas and delivers the same old same old that we've read a million times before. There is nothing to distinguish one inspirational quote from another. There is no point of view.

So I am to dig deeper. Provide something different. Something valuable. Something thought provoking. I shoot for remarkable.

But thought provoking, valuable and remarkable take time. They take long hours of thought. And, frankly, most brands don't want to pay for that. We just got them to the point that (many of) them are realizing that content is important and some of them are willing to pay something for it, but that's only a small piece of it. Stopping there would be like giving someone a bathing suit and expecting them to swim across the Atlantic.

Francis Moran, a colleague of mine, recently likened the current state of content marketing to the early state of radio. Anyone with access to the tools could claim expertise in radio, but as it evolved, it was apparent that there were very few examples of radio shows that could hold an audience. And you need an audience to pay the electric bills.

One of the shows that stands out to me is This American Life with Ira Glass on Public Radio. There are very few radio shows that I can listen to for a full hour each week and even fewer that I will go back to listen to multiple times, but this is one of them. There is just something so incredibly entertaining and thought provoking about it.

And then this weekend, another colleague of mine, Mitch Joel, pointed out aGoogle Talk with Ira Glass in which the interviewer asks where he comes up with the programming week after week (for >18 years!) and Glass' answer is amazing:

Somebody will pitch a story that we all feel very excited about and that doesn’t go with any of the themes we have going on at the time, so we’ll just say “Let’s use that story as an anchor for some show” and then we’ll concoct a theme that could plausibly contain it. And sometimes we’ll come up with 2 or 3 different themes that could plausibly contain it and we’ll have other stories left over from other shows that we couldn’t use and see if we can glue anything to it and then we’ll start on a search. And that search could take up to 3 or 4 months often and sometimes even more. Finding ideas for stories is very inefficient.

One of the things when you start to do creative work that nobody ever asks is, “Where are ideas going to come from?” And you have this idea that they are just going to be sprinkled on your head like fairy dust…but you just have to surround yourself with a lot of stuff and a lot of ideas, because ideas lead to other ideas. So at one point, we’ll just go on a massive search…

Then he goes on to describe a very complex process with all sorts of questions and nuances that are unique to every story and every episode, including having to kill about 1/3-1/2 of every thing they start. And he adds:

You really can’t tell what’s going to work until you start to make that thing. It’s like you want lightening to strike as an industrial product (in the same spot) every week, and to do that, you just need to wander around in the rain...a lot. 

This is the key to creativity. It's not a linear process and it's not predictable. You need to give it space and lots of encouragement. If you are held to pumping it out like a factory, you are probably not going to nail it. And it doesn't come to you at the most opportune times.

In one of my favorite TED Talks ever, Elizabeth Gilbert describes a fantastic story where poet Ruth Stone would hear a poem thundering over the hills while she was working and have to "run like hell" to find paper and pen to capture it in the moment.

Creativity requires:

  1. Surrounding yourself with inspiration, stories and ideas. I'd say that most of those ideas should be on-topic (if you are trying to come up with a great story on wearable tech, surround yourself with conversations, articles and experiences on wearable tech), but you should also step outside of the narrow topic to get inspiration (think about it from the perspective of parenting or fashion or education, for instance).
  2. Space to breathe and  grow. You'll go down a million paths that will lead you nowhere. There is no fairy dust.
  3. A purpose. You need a direction. A point of view. A raison d'etre. For Ira Glass, it's the constant search for stories that will change people's perspective. Having an end goal or a point of view will help focus you enough on what you want to convey. Then you just have to deal with the how.

As you are probably already thinking, this process is far too free-flowing and unpredictable for most companies out there. It's why most artists are starving and why the world is full of mundanity.

The good news is that there is a happy medium to be struck between completely unleashed creative, interesting content - that is "inefficient" as Glass puts it - and completely lifeless outputs of formulaic, mundane content. But the current pendulum favors the efficient (while complaining that the ROI is less than desirable on this particular output). What we need to work on is the message that it isn't just any content that works. It's content that actually adds value (a term that is understandable to organizations). And adding value takes more thought than a 2 week RFP or a couple of brainstorms.

(The last creative agency I worked with operated on last minute series of brainstorms to come up with ideas for clients. I added some sanity to this by bringing market research to the meetings and presenting insights, but the output was still horrifying enough for me to back away from the whole circus. In an ideal world, agencies would work as partners with clients and evolve ideas over time rather than be given a creative brief, then expected to go into their creative cave and come out with brilliant ideas.)

And brilliantly out of the blue, Jeff Bezos' wildly popular appearance on 60 Minutes provides a fantastic example of a company that is winning and will continue winning by having a purpose, taking time and surrounding itself with inspiration (they spend a good deal on R&D, a dying department). Bezos asserts of their crazy sci-fi drone idea that it'll be 4-5 years before it is reality. But their incredible commitment to customer-centricity helps them get creative in their approach. It's how they became the market leader and how they will stay there.

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No, Social Media Doesn't Drive Sales...but that's not the point

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No, Social Media Doesn't Drive Sales...but that's not the point

socialmedia_notwhatitmeans
socialmedia_notwhatitmeans

Okay, maybe I'm overstating it. Some sales are driven through social media channels. I know I've bought books and songs and contributed to Kickstarter campaigns many times because a friend shared a link and I thought, "Hey! That's awesome! I should buy that!" I've even tipped a bigger purchase in favor of a friendly recommendation on a social network. But I can count on one hand the number of times  I've bought something pushed to me by a brand I follow on Twitter/Facebook or the like.

But that's not the point.

The point is that social media is a teeny tiny reflection of what happens in day-to-day life. In Jonah Berger's Contagious, he makes the salient point that only 7% of word of mouth happens online (other studies say 5%). I'm not sure if all of that even belongs to social media channels, either. I'd guess a bunch of it happens over email and private chat.

There are hundreds of ways that your customer will find you (or not find you) online and offline. However, when it comes to spreading a message, word of mouth has always been the most effective way of marketing messages spreading. But these messages become ineffective when they aren't authentic. But the most salient point here is:

You cannot force word of mouth.

It doesn't matter the media or the amount you spend on it...some stuff just doesn't spread. And though marketing impressions make a brand awareness difference - whether it's a billboard or a paid tweet - it's never guaranteed to work.

So I'm continually bowled over when I hear people complain about how their social media marketing doesn't work. Usually a few questions helps me realize what's really going on:

socialmediastrategyinfographic
socialmediastrategyinfographic

What's really going on here is that companies think that paying for marketing is some sort of silver bullet. It's not. It never was and it never will be. Hell, some super bowl ads go unnoticed - and that audience is one of the biggest captive audiences in the universe!

You are probably asking yourself, "Okay then, why would anybody in their right mind pay for marketing?"

Good question. I sometimes wonder myself because not everyone is ready for it...and sometimes they are too late for it.

But why pay for marketing when the results aren't guaranteed? Because, like I said before, there are hundreds of ways your future customers will find you (or not find you) and it's better to be findable than not. And good marketing means that you will be more findable AND have more credibility (if the branding is done right) when people do find you. And all of that helps with what you want: sales.

There are all sorts of wonderful things built into social media marketing that you won't have built into traditional one-way channels. There are:

  1. analytics - you can't really tell who paid attention to that television ad, but you can tell who watched your YouTube ad all the way through...and who liked it...and who shared it...etc etc. The data available on how people interact with your content is AMAZING.
  2. feedback - it's right there in the comments. It's also there on Twitter. Oh...and you can find out what people are saying on Reddit and their blogs and in forums and...well...that is invaluable. Read it. Report it back to your team. Improve your product with it. Respond to it with thanks. Hell, you pay hundreds of thousands of dollars to get this feedback from focus groups each year and here it is for you for free. Completely raw.
  3. relationships - you aren't going to strike up a conversation through the TV or radio. But that two-way conversation is built into social media platforms. It's really awesome. You can find out so much about your customers and start to really build a bond.

What really baffles me is the demands that brands make of social media marketing when they pay a fraction of the price to use it. They'll hire interns and junior staff to run it, they'll lowball agencies and consultants ("I pay you whatfor a couple of FB posts?! I can get my kid to do that!"), they get impatient and want instant results without being willing to invest the thought needed or take risks, they'll tack on a social media strategy (which has no strategy) to a made-for-television and magazine ad campaign thinking that it's yet another direct marketing channel (which is a limited medium, too).

All of this and the brands ask for stellar results. They look past the amazing insights and feedback and potential for relationships that no other traditional marketing medium every had and they say, "Meh. Social media doesn't work for me."

And completely miss the point.

You want to know the ROI of social media?

Number one. It's the ability to listen. It's priceless. Not with some damned tool that measures sentiment or finds influencers, either. Really listen.

Number two. Serendipity. It's opening yourself up to constant and amazing opportunities to participate and by participating, you will find numerous opportunities to lead the conversation and make a great impression. Oreo's dunk in the dark tweet is a great example of this. They are doing a really great job of being a relevant brand again by seizing opportunities like that. Do they do it every single day? Nope. But when they do, they nail it.

Number three. Community instead of merely customers. The difference is incredible. If you have patience and build a community instead of just a customer database, you will have finally tapped into that magical word of mouth network you wanted to buy a few months ago. But this time, it's real and authentic and it spreads.

(and there are dozens more...but you get the point, right?)

So PLEASE FOR THE LOVE OF DOG stop thinking of social media as a direct marketing tool or some sort of silver bullet that will drive sales through the roof. Stop reading those case studies where Facebook...no...Pinterest...no...Polyvore...no Snapchat drove millions of dollars in sales from a viral campaign.

That's not the point.

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If you don't stand for something, you'll fall for anything.

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If you don't stand for something, you'll fall for anything.

followtherules
followtherules

[title quote attributed to Alexander Hamilton as well as Malcolm X in various forms, image bought from Shutterstock]

I've been trying to put my finger on the problem with so much of the social content brands put out into the world. Why does it seem so damned flat and soulless? Sure, they post the occasional uplifting quote I can get behind, but mostly I just skip over the rest. And it isn't just that it's too self-promotional (though much of it is "me me me"), it's something more.

And then today it occurred to me:

ENGAGING SOCIAL CONTENT HAS A POINT OF VIEW.

The un-engaging stuff (pretty much everything else) just follows formulas and schedules and feels as alive as a silk plant. They get so close, but when you lean in to take a sniff, something is off.

But the stuff that we connect with, the stuff that makes us cheer and like and share and remember the brand, that stuff has a point of view. And that point of view is something WAY bigger than the brand.

Oreo's audience was merely humming along with their 'cookies as a character' campaign until one day, they posted this:

gay-oreo-cookie
gay-oreo-cookie

...and all hell broke lose. They chose a point of view that was both unpopular AND wildly popular.  They may have lost a few of their homophobic customers that day, but they gained a LOT of new (and renewed) customers who had long forgotten the brand.

And Coke, one of the most 'liked' brands on Facebook (baffling to me) has a dismally small amount of interactions with this type of post (which they do all too frequently):

Screen Shot 2013-10-19 at 10.43.33 PM
Screen Shot 2013-10-19 at 10.43.33 PM

But when it comes to this type of post...their engagement blows through the roof:

Screen Shot 2013-10-19 at 10.45.10 PM
Screen Shot 2013-10-19 at 10.45.10 PM

441 likes/53 shares (small from an audience of nearly 75 MILLION) compared to 5,081 likes and 274 shares. (though still lower engagement than I Fucking Love Science, whose most popular posts get tens of thousands of shares and hundreds of thousands of likes)

And though they aren't my cup of tea (so to speak), Red Bull has a VERY strong point of view and has built an incredibly loyal audience (and business) from it. And it isn't just about having a strong voice/tone. It's about knowing who you are and not being afraid to stand up for something you believe in. Standing for something.

Because if you don't stand for something, you'll fall for anything.

And I see this happens to lost brands all of the time. You can smell a brand who is following a formula or just follows advice and 'best practice' guidelines. Their voice is forced and weak. They won't take a position. They are afraid of what others think. They define themselves by what they ARE NOT, but refuse to own who they ARE.

One of my favorite people in the world, Nilofer Merchant, describes this in her concept of Onlyness. She describes it like this:

Each of us is standing in a spot no one else occupies. That unique viewpoint is born of our accumulated experience and perspective and our vision. This is your onlyness—the thing that only you can bring into a situation.

When you own that unique viewpoint, nobody can take it away from you. They can disagree. They can dislike it. But they can't deny that you own that space. And what will surprise you is that you will find new allies when you own your onlyness.

But how do you figure it out? Is there an exercise? A set of steps? A workbook? A tool you can pay $24.95/month to figure out your onlyness? Can you hire a creative agency to craft it for you?

Nope. You have to do this work yourself. It's your accumulated experience. It's YOUR point of view. You can hire someone to help coach you towards it, but you can't pay someone else to do it.

This is why, while social media gurus are a dime a dozen, social media is still so damned hard to do well. It's not something you can outsource, automate, hire an intern to do for you or even get your marketing team to create a plan for.  If you are the founder or a senior team member, you need to be involved.

Screen Shot 2013-10-20 at 12.30.16 AM
Screen Shot 2013-10-20 at 12.30.16 AM

And for those of you who think this is lightweight and a waste of time? Keep trying all of that other stuff that isn't working while you lose market share and talent to that other company whose success you can't quite understand because your product is superior. I'll bet if you look real close, you'll smell something different. That's the scent of onlyness. They stand for something. They know who they are. They haven't read a best practices article in their lives because they don't have to. They inherently know what to post and come up with great ways to connect beyond pushing out messages. They probably even like to hang out with one another on the weekends. And they don't worry about who talks to the press, because everyone can articulate passionately what their brand stands for, who their customer is and why they love what they do. Nobody needs a laminated poster to remember the company's core values.

If you want to keep copying companies with mediocre results to keep achieving mediocre-er results, go ahead. And by all means, read more articles by 'social media gurus' who haven't ever built a community or a product. Continue to spend the time you need to figure out your onlyness on random useless noise making.

Screen Shot 2013-10-20 at 12.31.36 AM
Screen Shot 2013-10-20 at 12.31.36 AM

But you have a choice and it's right there in front of you. You can stand for something. You can lead and be the example everyone wants to decode.

Be the case study, not the company that reads it.

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Switching Costs: A Person's #1 Reason for Not Trying Your Service

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Switching Costs: A Person's #1 Reason for Not Trying Your Service

Shutterstock photo
Shutterstock photo

People get comfortable with routines...even if they aren't the most efficient. Sticking with a familiar inefficiency is often less daunting than switching to an unknown.

Many companies try to sell their products and services as an 'easier' or 'time saving' or 'better' way to do something, but even if your potential customers will save time and effort in the long-run, there are often huge switching costs that prevent them from making the leap.

Here is a personal example:

I was banking with an institution I had been unsatisfied with for years. Their fees were high, their customer service was awful and their practices were not very friendly. I was constantly complaining about them, but it took me forever to switch. Why? Because my whole life was tied to that bank. Even though I was miserable and there were much better banks for my needs, I was avoiding the time and pain it would take to switch my bills, PayPal account, credit cards and day-to-day routine. Besides, what if I took the time to switch and things didn't improve? I felt like I'd be happier being unhappy with what I already know.

I finally switched when things got unbearable and another bank gave me the tools (and sat with me) to switch everything over effortlessly, but even then, it was a bit of a pain. I'm happier now, but it took a few years and being acutely dissatisfied for me to switch and I'm just an individual.

If you are selling to larger businesses, the switching costs are even higher. New processes, even if they are simpler, take new training. And for a large organization, this takes a big swath of time and money. People get used to the irritating workarounds for their inefficient systems. They learn shortcuts and tricks to beating the odds that become part of a daily routine.

Just the other day, I encountered a business that used Photoshop for their invoicing because they understood the tool and didn't want to learn a new one! I even demonstrated how simple it was to use something like Freshbooks (I have no affiliation, but I use it and love it), but the business owner explained that this worked just fine and switching would mean he'd have to relearn and do a bunch of work to transfer all of his clients to the new platform. Even if this only took a few days, he didn't see the advantage over the switching costs.

Sure, you may offer webinars, instructional videos and a support network that help with the training, but that could make switching seem even more complicated for your potential clients. Don't fret, though, there ARE better approaches to helping people get over their fear of switching. Here are a few:

  1. Figure out a way to reduce or eliminate switching time automagically. Wordpress does this incredibly well. In most cases, you can just point it at your old blog or upload a file and it will 'suck in' your posts, tags, comments, etc. so that you are up and running in no time.
  2. Acknowledge the switching costs up front. Don't just say, "We'll save you time". That's too vague. Your homepage is for new arrivals with doubts, so alleviate those doubts. Know the pain points of your potential customers and speak to them. Give time estimates.
  3. Give them an incentive. I've seen banks offer iPads to open a new account, but it doesn't have to be that drastic. Free trials work, too. However, many people don't get the chance to really try your product unless they switch completely (and many won't switch until they try it - catch 22!), so give them test content or offer a one-on-one demo with their data.
  4. If you can't eliminate time to switch, give clear, simple instructions step by step through the sign up process. Use screenshots and clear, short instructions to help your customers through the process so they aren't left hanging at any point. It's not talking down to them, it's doing the legwork for them.
  5. Create a switching officer program...for free. Many people will give up privacy for convenience. Offer the ability to switch for them. "We'll set you up so you are ready to go!" The upfront cost will pay off in the long run.

Of course, this only eliminates a few of the switching costs involved. Some more switching costs are:

  1. legacy systems (you can make sure your product is backwards compatible)
  2. training of staff (offering free training or creating a product that has incredibly intuitive UX helps)
  3. trust (this one is very complicated in today's world of false-promises - it takes time and perseverance)
  4. costs (in the Photoshop invoice case, the business owner didn't want to pay a monthly fee to merely invoice - you need to show how your cost can make your clients money)
  5. competition (when faced with the paradox of choice, a customer won't switch at all. The choice should be crystal clear.)

But whether a potential customer needs to switch from something they hacked together or a competitor, you need to recognize that "we're better" or "we save you time and/or money" isn't enough to get over the ultimate barrier of switching. Recognizing this will help you see things from your customer's point of view more clearly so you can help them faster.

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