RENEGADE THINKING from the CEO of Renegade, the social media & marketing consultancy that helps clients make more out of less by transforming communications into "Marketing as Service."
Drew's Articles
Social Media

Q&A with Ethan McCarty, IBM’s Senior Manager of Digital and Social Strategy

09/11/11

Here is the first part of my interview with Ethan McCarty IBM’s Senior Manager of Digital and Social Strategy.  Its hard not to be impressed with IBM’s approach to social, elevating the discussion from a “nice to have” media component to a “must have” means of doing business.

Drew: Most businesses are trying to get their mind’s wrapped around social media, and you folks are now talking about social business. What’s the difference between those two terms?

Ethan: I think there’s a variety of interpretations for these terms : social media and social business. Social media is typically about mediated experiences with content, and sometimes it’s about dis-inter-mediating the experience. Social media is about media and people, which is one dimension of the overall world of business. With social business you start to look at the way people are interacting in digital experiences and how you can apply the insights derived from all the data and apply them to business processes that may not necessarily be about dissemination of information.

Drew: Tell me about the various dimensions of Social Business, and how companies can deploy it.

Ethan: Social business is about looking at  business processes differently;  from how you are listening to your customers, to how you are engaging with a wide-variety of constituencies. It could be your employees, or it could be potential investors; it could be current investors; it could be prospects for your business.

One of the main dimensions of social business is about managing relationships through these new business processes. Social media is more about disseminating information in new ways, using people as the medium rather than broadcast systems as the medium.  In social business you might be managing community relationships or relationships with individuals; you might be identifying and activating experts or rewarding and recognizing certain kinds of behaviors. And then of course another really important dimension of social business is collaboration. I think that is beyond the thought of social media because it’s not always about creating an information document.  It could be things like collaborative editing, but it could also be file sharing or expertise location.

There are things in the realm of social business that are more about working to improve the efficiency of teams as opposed to just getting a message out there, which I think a lot of the initial social media really were about. Social business is sort of a super-set of social media. Social media is one component of social business.

Drew: Is social business a mind set or a skill set? Or is it a product?

Ethan: All of the above. There are certainly products that enhance an organization’s ability to become a social business. For example, IBM offers a platform of products that enable social business – wikis, blogs, communities, instant messaging, etc. Beyond these products, and really in order to implement and adopt them successfully, social business has to be move than just a mindset, it has to be an organization’s cultural priority. Leaders have to be committed to making significant business process changes in order to actually make work getting done easier and more efficient. We have at IBM a social business management council that  includes some very high-ranking IBM executives, IBMers in the CIO office, in HR, etc., [and] we perform risk analyses and opportunities analyses to help us establish new modes of work. One of the efforts that I’m leading with an IBM HR leader is to look at how we’re going to formalize these new modes of work into our skills at IBM. Social business at IBM is a priority, we’re constantly fine tuning our processes to better serve our customers, partners and ourselves.

Social business is a pretty broad thing, and it includes skills that aren’t necessarily obvious to every employee.  Also there’s a broad area of policy development that we, as an industry, need to do. If you think about how many relationships between an enterprise’s employee base and those with whom they are supposed to be working have been mediated and controlled by processes that are not necessarily enabled by the most contemporary social business approaches, you’ll see the world has a lot of work to do in this area. That is, to me, very promising.

Drew: How is Social Business being integrated into IBM’s business model?

Ethan: There are a couple major concepts that we’re currently working on. One is acknowledging that social, digital activity is moving from the periphery to the center of business. And to me, that’s a big part of what social business is. It’s the transition of all the interesting and fun social activity that’s taken place in the commercial domain is becoming increasingly applicable to enterprises, and how enterprises get work done; how enterprises manage relationships with their clients; how employees work together. That’s a significant change in business.  Social, digital activity and experiences are no longer a frivolous, nebbishy thing for teenagers and college students. Enterprises are realizing the power of these tools to transform there business.

IBM’s a great example of this social business transformation; a lot of our work is done using digital, collaborative means. Consider this, I’ve got eight people on my core team, and, not one of us lives in the same city, and many of us are in different time zones.  I work with IBMers in Australia and California and Michigan and all around the Tri-State area, and we’re doing all kinds of great work together, every day. It’s asynchronous; it’s collaborative. The way we work together is digital and a lot of it this work and collaboration is not happening over email.  Email is a very limited tool, and in some ways completely antisocial.  It does a lot of things to silo the work efforts. Instead of email, we’re using social tools – file sharing, video conferencing, wikis, communities, instant messaging, etc – to get our jobs done.

FYI, you can follow Ethan on Twitter @ethanmcc.

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Marketing for Good
Social Media

Insights into CMO’s and Social Media

05/4/11

Probably nobody in the world talks to more CMO’s than Pete Krainik, founder of The CMO Club.  I caught up with Pete last week after The CMO Club Summit in New York City and asked him for the inside scoop on CMO’s and social media.  Here’s our Q&A:

DN: There was a lot of conversation at The CMO Club Summit about social media.  Why do you think this is the case?
CMOs care about customer engagement and having a reason and vehicle for listening, having a conversation, and sharing their Brands.  Social media is simply the best way, for many brands to do this.  Every Brand has different products/services and customers so the conversation’s centered on new and game changing ideas they can build on for their industry, customer base and products.

The other big reason is about marketing mix optimization.  Every dollar and resource focused correctly is worth significantly more than before. More targets, more marketing vehicles results in more interest in getting it right.

DN: Do you expect this conversation to grow over the next 12 months or are CMOs approaching Social Media fatigue?
The conversation will grow but move from social media to social marketing and social branding.   I’ve noticed within The CMO CLUB that more and more 1-1 conversations with CMOs to think through synergies for sharing resources together.  Moving from company specific apps, communities, programs to a community of Brands approach.  Very interesting times ahead.

DN: The CMO’s at the event seemed to be at various stages of the adoption curve when it comes to social media, why do you think that is the case?
A number of reasons.  For larger, more technical B2B Brands, a smaller number of customers are leveraging social media so the call to action and priority is different than for B2C Retailers and CPG companies.  Also some companies focus on innovation leadership while others are fast followers, etc.  Finally global companies have issues of rollout and priority by region, product lines, etc.

DN: What role does social media play in the marketing of the CMO club?
Given the club is an exclusive “heads of marketing only” community with the mission of facilitating the world’s best CMO conversations, Social media has been the single more important vehicle for the growth of membership. Two out of every 3 new members in the club come from referrals and recommendations from heads of marketing in the club.

We not only use social media for communicating new posts and events from members, but the members only site itself is a community site vs. website. Everything from member blog posts, member Q/A, New CMO jobs on the market, vendor rating programs, plus content in the CMO CLUB Thought Leadership Library is contributed from members.  Social media is used to share member insights, build subgroups of interests, and listen to members.

Our weekly poll question of members has gone from 75 to 150 members per week responding, then sharing and discussing results. The value of the club is to help CMOs connect with peers, share insights, and stay sharp and competitive as heads of marketing.  Social media and our social community platform is the catalyst to make it happen.

DN: Pete closed by noting that the October 2011 CMO Club Summit in Los Angeles will have a large section focused on “CMO worthy” innovations in social media.

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Drew's Articles

Bring on the Facebook Love Button

02/13/11

Social media practitioners have pursued “Likes” of late like they were going out of style.  Land on the Facebook page for brands such as Bud Light, Mercedes and Allstate and the appeal to hit the Like button is a full-page event.  Not that this is in itself  bad business; in fact many social media gurus would call this a “best practice.”  But after spending two days with companies seeking game-changing levels of customer satisfaction, the simple pursuit of Like feels inadequate, if not downright unlikeable.

Explained Deborah Eastman, GM of Business Consulting at Satmetrix, the host of the Satmetrix Net Promoter Conference I attended last week, “Like to me is opting in, I don’t think it identifies you as a promoter or a passive or a detractor.”  More to the point, Eastman added, “I don’t think Net Promoter is about like, its about love.”  And while this might seem like a subtle distinction, the brands that are currently pursuing “Love” as a business strategy are also starting to bring this mentality to their social activities.

Mighty Leaf Tea Brews Up Love

In her presentation on the intersection of social media and Net Promoter, Eastman highlighted a number of good and not so good cases.  Among the better ones was Mighty Leaf Tea, a company known for having fanatical loyalists.  Including a customer support tab on its Facebook page, Mighty Leaf offers its fans a chance to ask questions, share an idea, report a problem and give praise.  (By the way, their Support tab is powered by Get Satisfaction’s Facebook app.)

Type in a question about Mighty Leaf on their support tab and you just might find an answer already there from another fan.  Encouraging customer to customer interactions not only builds a sense of community around a brand but it also offers the potential to lower customer service costs as “promoters” do the company’s work.  That said, relying on Facebook fans exclusively to do this work could lessen the love.  With a number of the questions posted by fans currently unanswered on Facebook, love for Mighty Leaf could be leaking just a bit.

VirginMedia Plugs into Love

Eastman also pointed to VirginMedia, “the Comcast of the UK,” as a company plugged into the social scene. With a “tweam” in place monitoring tweets 24/7, VirginMedia was more than ready when actor/comedian Stephen Fry tweeted about his cable service going down to his over 2 million Twitter followers.  Relaying the complaint to customer service, VirginMedia rushed a repair truck to Fry’s house and within a couple of hours had fixed the problem.

Not surprisingly, Fry was overjoyed by the speed of Virgin’s response, singing their praises in tweet after tweet.  Recognizing that customer “voices” are not all created equal, Virgin’s response to Fry’s very public complaint was indeed impressive both in terms of speed and cross-functional integration.  Interestingly, VirginMedia is not quite on its game with Facebook, where a veritable “suckfest” is happening on their Review’s tab with service complaints piling up like open wounds in a knife fight.

Like is Not Love

My purpose in sharing these two mini-cases is multi-fold.  First, is the simple recognition that gaining a Like is nice but hardly an end in itself.  True brand advocates are created and maintained by doing things that exceed expectations.  If you put up a Facebook fan page, it is expected that you, the brand, will respond within at least 24 hours.  However, if your CEO responds, as Michael Dell does on some occasions via his tweets, then you just might blow someone away.

Another key here is the recognition that social media is best approached from a customer experience perspective rather than a marketing channel.  Marketing tends to focus on what to say while customer experience professionals emphasize actions, asking themselves “what can we do to turn this nice customer into a super promoter?”  This approach yields such social innovations as BestBuy’s Twelpforce and the use of functional apps like Get Satisfaction’s on Facebook fan pages.

This particular understanding may also effect where you put your social media team within the organization.  Explained Gibbs Jones, Senior Vice President of Customer Experience at Suddenlink, a cable company making bold moves to improve customer satisfaction, “social media is a shared responsibility between Customer Experience and Corporate Communication (PR), with some involvement from Marketing.”  Since Gibbs and his team are actively pursuing Love, they know a simple Like is just the table stakes, akin to “just responding during business hours.”

Then there is the rather advanced notion that social media can and should be integrated into what the Satmetrix folks call a “closed-loop process.”  Explained Eastman, “you need to know if they are customers or not; you need to know if they are high value customers or not.”  With this knowledge, you can begin to craft an appropriate customer experience that ultimately integrates social into a systematic monitoring of customer engagement across all touch points.

Are You Ready for the Love Button?

Pursuing Love via social media will put you way ahead of the crowd. Reported Eastman, “few of our customers are integrating social media in Net Promoter at this point,” and these are the folks that are leading the way with Love-engendering customer experiences in just about every other channel.  One exception is Chick-fil-a, whose legendary in-store customer experiences have begun to inform their approach to Facebook, drawing a whopping 3.7million Likes thus far.  Undoubtedly, should Zuckerberg and Co. heed our call for a Love button, true fans of brands like Chick-fil-a will simply eat it up.

Final note: turns out there is a lot of demand for a Love button as this amusing video demonstrates.

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Marketing as Service
Musings

The State of Guerrilla Marketing

11/22/10

The following is a Q&A with yours truly on the current state of affairs in guerrilla marketing.

Q: How has guerrilla marketing evolved?

Guerrilla thinking has evolved tremendously in the last 24 months. Press seeking guerrillas have shifted away from street theater to something with online legs. Part of this is fishing where the fish are. Part of this is that if you can gain Likes or YouTube channel subscriptions, your initial contact can turn into a more lasting relationship. Part of this is the press itself—the press is more likely to wax on about a social program than a purely street program at this moment in time.

Q: What’s up with street stunts?

Frankly, I’ve never been a fan or promoter of the street stunt approach. They are typically a brief encounter with little residual value. The challenge with guerrilla has always been to provide a reasonable exchange of value between brand and consumer. In exchange for a consumer’s time, the brand must provide some value, either genuine utility or at least a good laugh. The reason the HSBC BankCab is still on the road after seven years is that the value exchange is extraordinary. First, people love to see an old Checker driving around the streets. Second, when they get in the BankCab, it is a refreshing experience complete with a truly knowledgeable cabbie. Third, HSBC customers get a free ride when engenders brand love. We recently renovated the HSBC BankCab, enabling it to run on compressed natural gas, thus making it a more “green” experience. As street programs go, this is about as good as it gets.

Q: What’s cool right now?

The most exciting area of guerrilla right now, is the social to offline movement. Skittles “Mob the Rainbow” program is one great example of this. Skittles solicits ideas from its 10 million strong Facebook fan base, which sometimes lead to hilarious offline executions. For example, fans suggested sending Valentines to a particular postal worker. Skittles did just that and produced a funny viral video which brought the program full circle. JetBlue is using its strong Twitter following in a similar fashion. Earlier this year, @JetBlue tweeted they were on a particular street corner in Manhattan giving away tickets. In a matter of minutes, 300 eager travelers showed up and of course, JetBlue got some nice ink for this as well. In this way, social media has replaced email as the ignition switch for flash mobs.

Q: How does social fit into a guerrillas plans?

Any marketer considering a physical guerrilla interaction would be crazy not to also bake in a social component. The social component should give the program legs, extending the offline interaction online. It also provides a home for videos and or photos taken of the physical interaction thus sharing these experiences with a larger audience. The social component also helps amortize the cost of the potentially expensive offline component. Finally, the social component provides an opportunity for feedback something that is not always easy to get in the physical arena.

Q: Is the physical street experience dead?

Since marketing success has often been about zigging when others zag, a few enlightened marketers will renew their emphasis on the physical experience and the true engagement opportunity it represents. Touching someone deeply often requires a physical touch. Online dating sites do the matchmaking but typically the fire doesn’t flame until the couple actually meets.

Q: What roles are left for guerrilla marketing?

Guerrilla thinking has never been dependent on one particular type of interaction. It has always been about making more out of less, breaking the ice in order to build meaningful and hopefully lasting relationships. Social marketing has proven its ability to maintain and nurture relationships but the jury is still out on its ability to generate trial from new customers.

Q: How has Renegade evolved from a guerrilla standpoint?

I see social marketing as an evolution of our long-time guerrilla practice. The goals haven’t changed but the tactics  we use continue to grow and evolve. Five years ago, three out of four incoming calls would be from clients seeking guerrilla ideas. Now those same clients are requesting social marketing ideas. The impetuous for the calls is the same—help us engage customers cost-effectively.

["Delivery.com Street Stunt in October"][]

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Drew's Articles
Marketing as Service

Fight Social Media Fire with Social Media Water

09/7/10

“I’m just the guy who gets it,” offers the humble yet vivacious Ramon DeLeon when explaining his unlikely rise from delivering pizzas around Chicago’s lakeshore to delivering keynote addresses on social media around the world. What seems to be intuition for DeLeon is in fact an uncanny ability to be way ahead of the curve, to observe what’s going on with his target and adapt accordingly. DeLeon gets it in a way that is both inspiring and enlightening, offering a tasty guide to social media success.

1. It’s Not About the Pizza

Marketers long-trained to push out messaging, often look at social media as a new channel to tell their story. A few minutes with DeLeon and they will realize the folly of this approach. In fact, I spent 40 minutes on the phone with DeLeon talking through his social media success stories before the quality of his pizza even came up. The truth is that when it comes to social media, it is simply not about the pizza. “My focus has always been on the consumer,” noted DeLeon. “Out of ten tweets, maybe only one will mention our product.”

2. It’s About Connecting with the Customer

Most companies pay lip service to customer service, hiding behind phone trees and avoiding intimate interactions. DeLeon, on the other hand, has been on a first name basis with his customers ever since his days delivering pizza. Explained DeLeon, “My whole thing is the connection with the customer—how can I help you?” Starting first with Instant Messaging then Facebook in the mid-90’s, DeLeon established tight bonds with the local college kids so much so that when they graduated, those students brought Domino’s with them into their new companies.

3. Make Deposits in the “Good Will” Bank

Many CEO’s ask their marketing head’s to focus on “things that deliver immediate ROI,” often at the expense of relationship building. DeLeon likens marketing to dating, noting that he “always includes customers in marketing pieces to give some love back after spending [their] hard earned dollars and to create very strong bonds.” These bonds were money in the bank when Domino’s faced it’s YouTube video crisis in 2009. Noted DeLeon, “because of the relationships we had with customers they had our back, so they still would order and support in confidence.”

4. Fight Social Media Fire with Social Media Water

When two young Domino’s employees in North Carolina posted a video of them cooking a pizza with cheese they’d put up their nose, Domino’s Corporate and the local franchise were both caught completely off guard. Not so DeLeon. He immediately created his own video, noting how horrific the other one was, and then follow up with anyone in Chicago who commented online about the offending video. Local bloggers and tweeters responded favorably to his outreach, acknowledging that DeLeon had been “part of the social media scene forever” and would “never let such a thing happen in his stores.” Remarkably, DeLeon’s store sales actually rose during this period while nationally Domino’s took a hit and the local NC franchise ultimately went out of business.

5. Learn To Apologize (Really Well)

Admitting a mistake often comes hard to corporate America. DeLeon, on the other hand, has turned apologizing into a PR-generating, customer-satisfying art form. When a well-known local blogger had a problem with a delivery and wrote about, DeLeon responded with an amazingly heartfelt video apology they he posted on his YouTube and Facebook pages. In the video he and his shamefaced manager invited the blogger into the store to “make things right.” DeLeon’s apology video has been watched over 125,000 times and is regularly showcased in speeches by marketing gurus Seth Godin and Jeanne Bliss.

6. Don’t Get Bogged Down by Trying to Measure Everything

Much to the chagrin of marketers, not every effort, online or otherwise, can be tied to sales. DeLeon believes that “sometimes there are too many metrics,” adding, “how much do you love your wife?” As an example, DeLeon points to a poster program in his stores that invites customers to take pictures of themselves in front of a Domino’s poster and share them with friends. “I’m not telling them to tag these or anything—just share them with your world,” noted DeLeon, who praises the program as generating good will and giving his customers something to do while they wait for their pizzas.

7. Make Each Program Your Own

Geo-based social networks like Foursquare are just emerging as powerful tools for local retailers. Not surprisingly, DeLeon was one of the first retailers to try Foursquare in Chicago, but did not settle for the norm of giving something free to the people who checked-in most at each of his stores. Instead, DeLeon challenged his “mayors” to take responsibility like a real mayor; “to do whatever [they] think [they] gotta do to keep me in business!” By putting the onus on his best customers to “represent” his stores and rewarding them by allowing them to give free pizzas to whomever they chose, DeLeon tightened his relationships and made the program his own.

8. Have Fun and Keep it Real

Fun is not a word that is heard a lot of outside of start-ups. Ramon DeLeon evaluates his own success with two questions, “am I having fun?” and “are our sales and profitability up?” The fun part for DeLeon is a constant, since he clearly loves connecting with people, whether he is on stage, behind a counter, on Facebook/Twitter/Foursquare or in his homemade video shout-outs. Regardless of the channel, DeLeon tries to be the same person and advises all others to take this approach. Concluded DeLeon, “there are real people behind these tweets and I just want to have fun with them.”

Final Note: While DeLeon could not offer actual sales figures, he noted with pride that sales growth in his stores over the last 18-months has significantly out-performed both the Chicago market and national average for Domino’s stores.  This article first appeared on FastCompany.com.

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Drew's Articles

Profound Advice from the Pizza Delivery Guy

09/2/10

For want of a belt, Ramon DeLeon almost didn’t get the part-time job delivering pizzas that launched his remarkable career. Fortunately for us, he overcame this hurdle just as he has so many before and since, becoming a highly successful businessman, not to mention the most effective practitioner of social media I’ve yet to meet.

How he got from delivering pizzas to delivering keynotes on social media is a fascinating tale of chutzpah and perseverance, of street smarts and tech savvy, providing a road map for any kid from any neighborhood, anyone willing that is to start small and think big. A two-part series, this first one focuses on the business lessons gleaned from an extensive interview with Ramon a few days ago.

Borrow a Belt (i.e. Do Whatever Else it Takes to Get Started)

Looking for a part-time job while still in school, DeLeon put in a cold call to a local Domino’s store. Having already delivered newspapers in the same Chicago neighborhood, DeLeon made his case well enough over the phone that they told him to show up for work the next day at 5pm. Arriving a half-hour early only to learn he’d lose the job if he didn’t find a belt to wear, DeLeon dashed to his sister’s to borrow a frilly ribbon number two-sizes too small, thus avoiding getting fired before he had even started.

Listening to DeLeon now, it is easy to downplay the significance of this little interlude. But if you’re a kid just getting out of school, you might want to take note. DeLeon was able to get his foothold in the industry that has made him highly successful by building up a portfolio of relevant experience, in this case delivering papers. When he got the opportunity to get in the next door, he didn’t let it slip by and instead scrambled to find a belt, however ridiculous it might have made him look that first day. He did whatever it took to get started.

Find the Joy in Pleasing Customers

DeLeon credits much of his success to his parents whom he described as his “biggest role models.” When DeLeon was in elementary school, his “blue-collar parents used to buy clothing wholesale and sell it at work or to friends.” He took note of the relationships they built with their friends and customers and tried to do the same when he started delivering pizzas. He paid attention to the smallest details, even how to park unobtrusively in driveways and how to ring doorbells to the customer’s liking.

When cellphones came along, DeLeon used them to improve the delivery experience, calling when no one answered the door. It wasn’t long before he’d get calls directly, saying “hey are you working today, we want to order pizza.” Like his parents, DeLeon was building strong ties with each of his customers, ties that distinguished him from his peers. At the same time, DeLeon found joy in pleasing customers, noting with pride, “it became a high for me, the excitement, the doorbell, the kids jumping and shouting ‘the pizza guy’s here!’”

Learn to Make the Pizza

After delivering pizza with aplomb for three years, his manager asked DeLeon to arrive early and open up the store since the shift manager was going to be late. Think Lou Gehrig filling in at first base for headache-pained Wally Pipp except for one key fact, metaphorically DeLeon didn’t know how to hit or catch. When the phone started ringing and orders arriving, DeLeon and another driver had no idea how to make a pizza but somehow they did just that.

When the manager did arrive, DeLeon exclaimed, “I don’t want to be in that situation again!” Taking time before and after his delivery shifts, DeLeon learned how to make the pizza and everything else the store sold. Shortly thereafter Domino’s asked DeLeon to join their management-training program. The lesson here for any of you starting out is clear–learn the business of the business even if it isn’t your primary job. In this way, when opportunity strikes, you’ll be able to jump in like DeLeon and Gehrig, relegating the Wally Pipp’s of the world to mere footnotes.

Take the Low Performing Store

Paying his dues as an assistant manager, DeLeon was working at one of the highest volume stores in Chicago when a manager spot opened up at an underperforming location. According to DeLeon, “there were other people more qualified to take over that store but no one wanted it.” Asked why he would want such a dog, DeLeon gamely offered, “When stuff is that low, the only thing you can do is look up.” Not surprisingly, DeLeon’s willingness to take on the bigger challenge paid off.

On the first day of the job, DeLeon somewhat brashly told his District Manager that his store was going to be off the underperformers list by the end of the week, even if that meant he had to buy the pizza himself. Knowing that he couldn’t transform the store alone, DeLeon “rounded up the right people who wanted to stay and let the others go who didn’t.” Having established his business goal and then put his team in place, DeLeon started a series of guerrilla marketing activities that helped his store set a nation wide Domino’s record for most consecutive weeks of sales growth.

Final Note: Ramon DeLeon did not have the advantage of an Ivy League education or social connections that would give him a head start. On the contrary, he started out at the proverbial bottom of the barrel, delivering pizzas on a part-time basis to pay for school. How he became a pioneering practitioner of social media is all the more remarkable and part 2 of this series (to follow later this week).  This article first appeared on FastCompany.com.

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