Social Judgement - Servant of Chaos

Trust and the Marketer

AgencyWorld, Future of Your Brand, Social Judgement, The Social Way

Consumers have always suspected marketers. Of something.

But this “something” has always been elusive. Hard to pin down.

In the back of the mind of most consumers, there is a small voice – a remnant of our evolutionary instinct – that warns us of a potential risk, a trap. The limbic system is part of our pre-verbal brain that we commonly refer to as “gut instinct”. And because it works without language, we are often challenged to put these feelings into words. As a result, we are left with a sense of mistrust. Something vague. Indiscernible.

But the limbic brain is also the space of creativity. It is the place of imagination and symbolism. And it is the essential playground of the marketer.

Each day, as consumers are bombarded with 3000+ messages, it is the limbic brain that acts as a first level of defence. Most droll pieces of advertising or communication are discarded – with only the most creative and most relevant breaking through.

These days, marketers have to work even harder to cut through the noise and confusion. It’s not just about creativity. It’s also about psychology, human behaviour (change) and analytics. We need to cover all four.

Over the last few years, Australian TV show, Gruen Planet, has peeled back the layers of the mysterious advertising onion. It has laid bare the role of planning and strategy, creative, copy, image and production. Blogs like Adam Ferrier’s Consumer Psychologist provide insight and analysis into what people buy and why they do so.

Infographics like the one below, provide a neat way of understanding some of the techniques used in advertising – but my limbic brain also tells me that we need a different approach now. Sure these approaches will continue to work – but we need to go further. We need to build a different kind of marketing – one that does not set off the limbic alarm bells. We need to address the deficit of trust experienced by consumers.

What if we could create marketing with a purpose (not marketing with a cause). Imagine what that would mean for our customers. Imagine what it would mean for our employees.

And imagine what it would mean for the marketing industry.

Sound dangerous? Don’t worry, it’s just your limbic system acting up.

Retail Innovation? Try Embracing Showrooming

Retail, Social Judgement, Social Media

You know what it is like … you see an item online. It’s a great deal – a special price and a coupon code. That credit card is burning a hole in your desk. But in the back of your mind is that one lingering doubt … will it fit.

So what do you do? You “showroom” – you go in-store to check the item for size, fit, colour or texture. You do your “shopping” in-store and you make your purchase online. This practice is known as “showrooming” and a recent article suggests that retailers have some work to do to avoid falling victim to this new shopping trend. Retail software vendor, CrossView, suggest that cross-channel retailing is the answer.

And there is big business at stake – with more than one in two Australian shoppers aged over 15 now shopping online. PwC and Frost & Sullivan predict that 2012 online spending levels will hit $16 billion – and will grow at a compounded growth rate of 14.1% through 2016. But these figures don’t include travel, events, financial services or media downloads.

This is backed up not only by spending but by brand awareness and customer engagement via social media. According to SocialBakers.com, Australians love online shopping – with Fashion, eCommerce and FMCG industries ranking the top three Australian Facebook pages in the year up to July 2012.

And it is this convergence of eCommerce and social media – in what we can loosely call “social commerce” – that is potentially a game changer for retail. For decades we have seen an entrenched refusal of Australian retailers to invest in the kind of digital experimentation required to lead to breakthrough innovation. This, in turn, left gaping holes in the market – which benefited companies like Apple and Amazon.

But if we look to emerging consumer behaviour we can see not only threat but opportunity. What if retailers were to embrace showrooming? What if, rather than discouraging it through restrictive in-store policies and management – retailers owned, encouraged and transformed the customer experience so that it was EASY for shoppers to showroom.

After all, if the social web has taught us anything in the last decade it is that consumerisation crushes all obstacles.

Influence: I Do Not Think It Means What You Think It Means

Influence, Infographics, Social Judgement

Most of us are in love with the idea of influence. We love the idea that we are influencers or influential within our peer groups, we seek out the favour and attention of others who influence us, and we attempt to measure track and trace influence across different cultural, societal, economic and demographic groups. And yet this thing – influence – remains elusive.

Some time back, Malcolm Gladwell came up with an easy to understand model of influence. It seemed to resonate with many of us who are deeply immersed in the web and have seen, first hand, the apparent randomness of online sentiment and human digital behaviour. His book, The Tipping Point took its lead from Stanley Milgram’s principle that we are all only separated by six degrees – suggesting that within a network, the “hub” or “connector” plays a vital role in the transmission of information across that network.

I have always viewed this theory with scepticism – preferring the strength of weak ties model popularised by Duncan Watts. It’s a shame in a way, as the Gladwell model – the Tipping Point – is easily articulated and understood, while Watts’ approach is more complicated, random and difficult to apply in the real world. Yet, even a casual glance at the social media landscape will show you just how difficult it can be to boil “influence” down to a single factor or variable. Klout has tried it as have PeerIndex and Kred – and there are dozens more on the horizon offering different versions, metrics and tools that attempt to measure the chaos of our behaviours and patterns of indifference.

Ultimately, when it comes to influence, I keep returning to one important point –> it’s not about influence, it’s about trust. And until we, as business leaders, as marketers and as publishers of information and content, understand this, we will continue to dance around the real issue.

And what IS the real issue? Just take a look at this infographic from CrowdTap and read between the lines. Hint: it’s not about your brand.

Social Actions Beat Social Proof

Social Judgement, Social Media

Over the last week or so I thought I would try a little experiment … after all, social media and its immediacy allows us to test and learn simply and easily, right?

I wanted to test whether different phrasings would impact click through rates from social media sites to destination addresses.

Now, usually I either share a link without introduction, or explain that I was “reading” an article with its link.

Now we know that 90% of people visiting your website will just “read” or “lurk”, that 9% will modify, comment or add to your content and that only 1% will drive activity. The 90-9-1 Principle is what Jakob Nielsen calls Participation Inequality.

So, in effect, announcing that I was “reading” an article planted me firmly in the world of the “lurker”.

But the concept of social proof – whereby one’s actions shapes the actions of those around us – suggests that my “reading” of an article would open the door to others who were also of the “lurking mindset”. So what happens if we re-shape that interaction? What if I was “commenting on” rather than simply “reading”? What if I was “pre-ordering”? How are these “social actions” playing out and are they a different order of magnitude?

Based on the analytics coming out of su.pr it seems that there is an impact – and it is in the 20%-25% range. Taking out the spikes for particularly hot topics I normally average about 150-180 clicks per link. But using the “commenting on” prefix I am regularly hitting higher levels of between 200-230 clicks. Over the coming days I will try variations on this theme:

Tweeting at different times of day
Re-tweeting the same link at different times
Using different social actions

The cool thing is, that a little attention to your choice of language and the framing of an outcome can have a positive impact. And I have a feeling that it may well have an impact on the types of audiences (participants rather than lurkers) that you are reaching. Now, THAT would be brilliant.

Awarding #QantasLuxury with a Downfall

Bad Customer Experiences, Memes, Social Judgement, Social Media, The Social Way

Customer loyalty programs are funny things. They often walk a fine line between promise and flattery, between exclusivity and exploitation. These programs are laced with words and imagery that reinforce the sense of entitlement, achievement and reference “awards” and benefits.

But in a socially connected world, awards, entitlement and even exclusivity can be turned on its head. Right now, Qantas is at the heart of this new brand experience.

A few days ago I wrote What Qantas Will Learn from its Social Customers. There were five key lessons:

The social customer is ubiquitous: it’s not just Facebook or Twitter. They write blogs, publish stories and photographs. They share these with hundreds – if not thousands – of friends with the click of a mouse and a glare of disdain
The social customer wields influence with a swagger: they have grown up with the internet and have more tools at their disposal than you let through your firewall. They move fast and do so with intent. If they can impact the decisions of others (to not purchase with you) they will do so.
The social customer is not your friend: they don’t want a platitude and they won’t go quietly. They will remember your words and your actions and they will choose their purchases carefully and with deliberation.
The social customer is the 99%: they can smell inequity at a hundred paces. You’ve just given them a reason to chose another brand who understands their lifestyle and their priorities.
The social customer is developing a social conscience: it’s taken decades, but it is forming. Just take a look at the Edelman Trust Barometer. Brands will be judged by their actions.

But things have progressed, and by “progressed” I mean “become worse”. Yesterday’s promotional efforts using Twitter and the #qantasluxury hashtag have been widely regarded as a failure or PR disaster. But I think it goes deeper than that. It’s a malaise that goes to the very heart of the brand and the disconnect between Qantas the brand and its customers.

You see, social media can become damaging to your brand when you ignore the real messages of social media – the wide cultural and personal transformations that I call The Social Way. Without understanding and translating these into your business the gulf between your brand and your customers will continue to widen. If Qantas (or their advising agencies) had understood, for example, the Five Stages of Social Media Grief and had applied this to understanding their customers, then perhaps, #qantasluxury could have been a completely different campaign.

What we are seeing is a widespread “falling out of love” with the Qantas brand. And with this comes a sense of loss. Grief. The Australian public and travellers, in particular, are having to come to grips with a changed reality – where the relationship and trust that they once had in the Qantas brand has evaporated through purposeful direct action of the Qantas management and Board.

And when the audience, formerly known as “Qantas Customers” have not yet moved into the “acceptance” phase of the grieving process, any brand activations must be carefully considered, planned and executed.

The Twitter stream of conversation (as shown above) seems to be still accelerating and now #qantasluxury appears to have been awarded the ultimate social media honour – the production of its very own Downfall spoof (see Parodies in this Wikipedia entry). When your customers go to the trouble of producing media like this, it’s the equivalent of entering the social customer hall of shame. It’s not an award that Qantas would like, I am sure, but I have a feeling there is still a way to go before this peters out.