The future of television is much more than social; much in the same way that the future of media is too, more than social. Social is a fabric; it connects the individual nodes that make up the human network. But, social however, is not a means to an end. And, as such, the same is true about the working theories driving Social TV. Understanding the role social plays in how viewers connect with programs and other people is essential to defining the future of television.

Over the years, I’ve written much about my vision for the long overdue convergence of not only web and TV, but also how the three screens (TV, mobile, and PC) and human relationships impact adoption and engagement between people and also between programming. So when I hear the term Social TV, I get it. I’ve certainly used it in the past. At the same time, I’ve also said however that the future of television is more than integrating Tweets or #hashtags into the programming to start a “global conversation” around the world’s largest digital water cooler.

This is a time when bringing to life what’s possible takes imagination, design, scripting, and innovation. We need to raise the bar. The future of TV won’t be driven by a social media strategy. Instead, the future of TV will be driven by innovation and a vision for more meaningful entertainment and engagement (no it won’t be called entergagement). This innovation will in turn inspire new programming, revenue opportunities and ultimately social media strategies.

Chloe Sladden, Twitter’s director of media partnerships, once said, “Twitter lets people feel plugged in to a real-time conversation. In the future, I can’t imagine a major event where the audience doesn’t become part of the story itself.”

She’s absolutely right. The program is the event. It’s the epicenter of engagement. The future of TV starts with defining how the event is alluring, captivating, and most importantly shareable.

Many of you don’t know, but I ran some very interesting social experiments with top networks and programs for several years. The driving questions at the time are still more than valid today. How do you expand the reach of a network, program or personality beyond the reach of the existing audience? And, how do you use social media to drive tune-in?

All too often, even the best examples of social media in entertainment are simply finding new ways to connect with those to whom they’re already connected. The goal, in every experiment, was always the same and it sparked creative thinking and innovation in both approach and technology. Marketers sought to use social media to drive tune in and also find new ways to measure social media’s effects.

I learned quite a bit about how engagement between and during events created a new communal experience that connected events and people together offline and online. I also learned more about the role each of the three screens play in consumption and engagement. Whereas TV, PC and mobile are all used for consumption of content, consumers have made it clear that they only wish to use the PC and/or mobile for real-time engagement…not the television.

The Medium is the Message and the Message is the Medium

It is in the context of each device and the context of the event that brings viewers together. The nature of the event also defines are engagement is triggered. We can’t assume that content and channels are agnostic. What we can assume is that audiences are already more fractured and distributed. Each channel (broadcast, online, and social) and each device serves a purpose. But no purpose will ever compensate for unengaging content or events.

If you think about it, some of the biggest events, such as the Super Bowl and the GRAMMYs, are only earning greater concentrations of live audiences. This is in part due to the content of the event, but it’s also driven by the conversations that make the event communal, a real-time exchange. Whether it’s driven by a fear of missing out (FOMO) or a desire to share in the experience, broadcast events are conduits to live participation and as such, can be designed to spark online engagement.

I refer to the connected class of consumers as Generation-C. It’s not just about Gen-Y, it’s about all consumers who live the digital lifestyle. And, they are not only connected, they’re incredibly discerning. Connected consumers don’t just expect online, on-demand streaming optimized for each device, they expect to engage in each screen differently and in a dynamic way. This is where you come in. The experience requires definition. The experience requires architecture. And, the supporting experiential infrastructure must be adaptive. It’s part programming, part mobile and social media, and part engagement. It’s also episodic and continual.

Today, we’re seeing experimentation across the screens with strategies that invite audience participation. Some live shows now run social media tickers during programs. Other live events feature tweets and also live statistics based on social media analytics. Some programs are integrating community participation into content. Others are using social media to tell supporting stories between seasons or airing special webisodes to keep interest and anticipation high between on air programs. Apps are also emerging to open new windows between programs and mobile audiences.

So what?

What we need to do for any of these initiatives to work is to align them with a higher purpose and a vision for what the new relationship looks like between viewer and the program, the viewer and the program’s elements, storyline and characters/roles, between the viewer and the screen, and between viewers and other viewers.

You must first answer these questions…

What is the objective and the purpose of your social TV initiative?

What kind of relationship are you striving for and how will you enliven it through each channel in a way that’s not only engaging, but also relevant?

What would the “Tweet heard around the world” look like and what is the social spark that would trigger activity?

What does the experience look like on a mobile phone, tablet, PC, and a TV? Meaning, what does the second and third screen experience look like? Design it and also design it back into the first screen programming.

Programming is just the beginning. Advertising also has a new opportunity to engage in a more meaningful way.

Rather than simply buying seconds and using spots to promote social media campaigns, visits to Facebook pages or rallies to Tweet a branded hashtag (brandtag), think about it as a way to tell a story that can live beyond the spot or beyond the campaign. Old Spice learned that its commercials were too successful to treat as traditional campaigns that would start and stop. Viewers don’t “turn off” so why wouldn’t a great story continue to live on across distributed platforms where consumers are more than willing to engage? Now, Old Spice hosts an ongoing experience where its campaign has become a transmedia experience that perseveres across online, broadcast and social channels. The story, the product, the series keeps viewers engaged. The series also strives to make consumers part of the story where custom videos are created based on input and participation.

Product placement is also open for reinvention. By making products or brands part of the story, advertisers have new opportunities for contextualized storytelling across multiple platforms and the ability to host new interactions, build communities or drive desired outcomes. Everything of course is based on the story advertisers wish to tell and the experience they wish to delivery. The point is that advertising doesn’t just have to end nor does it have to be limited to a finite engagement in new networks and platforms. Storytelling and consumer engagement are infinite if they’re compelling, delightful and shareable. But then again, it takes a different vision supported by an irresistible purpose or intention.

Through experimentation, we are seeing what’s possible. However, networks, advertisers, and producers, must think beyond technology and rethink experiences. By not focusing on the experience or defining the nature of relationships, we fall to mediumalism a condition where we place inordinate weight on the technology of any medium rather than amplifying platform strengths to deliver desired experiences, activity, and outcomes.

The future of Social TV is not yet written nor has it been broadcast. It takes vision. It takes creativity and imagination. It takes innovation. Most importantly, it takes the architecture of experiences to engage, enchant and activate viewers across multiple screens. A hashtag is not a second or third screen experience. Right now, viewers are taking to multiple screens without any cues or direction. What it is you want them to do or say requires explicit design for each screen. Doing so will inspire more informed and creative ideas through the entire broadcast ecosystem, including the original programming on the main screen.

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I’ve been a long-time supporter of MediaTemple’s (MT)Residence program along with Gary Vaynerchuk, Neil Patel, and many others whom I respect. I wanted to share my “7 questions to answer to become a social business” with you here..

Social Media is pervasive and is becoming the new normal in corporate marketing. Brands who get this right are starting to build their own media networks rich with customer connections numbering in the millions. Right now, Coca-Cola has over 34 million fans on Facebook, but they’re hardly alone. Disney follows just behind with 29 million fans, Starbucks boasts 25 million, and Oreo, Red Bull, and Converse play host to over 20 million fans. If we were to look at other networks such as Twitter and Youtube, we would see a recurring theme. People are connecting en masse with the businesses they support and new media represents the ability to cultivate consumer relationships in ways not possible with traditional earned or paid media.

Sounds great right? This might sound abrupt, but the truth is that we’re hardly realizing the potential of what lies before us. Everything begins with understanding not just how other brands are marketing themselves in social media, but also seeing what they’re not doing and envisioning what’s possible.

We’re already approaching the first of many crossroads that new media will present. Do we take the path of a social brand or that of a social business? What’s the difference? A social brand is just that, a business that is remodeling or retrofitting its existing marketing practices to new media. A social business is something altogether different as it embraces introspection and extrospection to reevaluate internal and external processes, systems, and opportunities to transform into a living, breathing entity that adapts to market conditions and opportunities.

It’s a tough decision to make right now especially at a time when all we read about is how much success many businesses are finding without having to answer this very question. With all of the newfound success in social networks, the truth is that we’re only just beginning to learn what’s possible and that’s where you come in. When compared to the investment in time and resources across the board, social media represents only a small part of the mix. But with your help, that’s all about to change.

The CMO Survey, an organization that disseminates the opinions of top marketers in order to predict the future of markets, recently published a report that gave credence to the fact that social media is taking off. One of the most profound takeaways from the report was this gem; “The “like button” [in Facebook] packs more customer-acquisition punch than other demand-generating activities.” With insights like this, it’s easy to see why the race to social is becoming heated.

The report also highlighted exactly where social fits in the marketing mix today and as you can see, despite all of the hype, it’s not a dominant focus yet. As of August 2011, the percentage of overall marketing budgets dedicated to social media hovered at around 7%. However, in 2012 the investment in social media will climb to 10%. And, in five years, social media is expected to represent almost 18% of the total marketing budget. Think about that for a moment. In 2016, social media will only represent 18%?

Queue the sound of a record scratching here. With businesses finding success in social networks, why are businesses failing to realize the true opportunity brought forth by the ability to listen to, connect with, and engage with customers? While there’s value in earning views, driving traffic, and building connections through the 3F’s (friends, fans and followers), success isn’t just defined simply by what really amounts to low-hanging fruit.

The truth is that businesses cannot measure what it is they don’t know to value. As a result, innovation in new engagement initiatives is stifled because we’re applying dated or inflexible frameworks to new paradigms. Social media isn’t owned by marketing, but instead the entire organization. This changes everything and makes your role so much more important. It’s up to you to learn how to think outside of the proverbial social media box to see what others don’t, the ability to improve customers experiences through the evolution of a social brand into a social business. Doing so will translate customer insights from what they do and don’t share in social networks into better products, services, and processes.

See, customers want something more from their favorite businesses than creative campaigns, viral content, and everyday dialogue in social networks. Customers want to be heard and they want to know that you’re listening. How businesses use social media must remind them that they’re more than just an audience, consumer, or a conduit to “trigger” a desired social effect.

Herein lies both the challenge and opportunity of social media. It’s bigger than marketing. It’s also bigger than customer service. It’s about building relationships with customers that improve experiences and more importantly, teaches businesses how to re-imagine products and internal processes to better adapt to potential crises and seize new opportunities.

When it comes down to it, Twitter, Facebook, Youtube, Foursquare, are all channels for listening, learning, and engaging. It’s what you do within each channel that builds a community around your brand. And, at the end of the day, the value of the community you build counts for everything. It’s important to understand that we cannot assume that these networks simply exist for people to lineup for our marketing messages or promotional campaigns. Nor can we assume that they’re reeling in anticipation for simple dialogue. They want value. They want recognition. They want access to exclusive information and offers. They need direction, answers and resolution.

What we’re talking about here is the multidimensional makeup of consumers and how a one-sided approach to social media forces the needs for social media to expand beyond traditional marketing to socialize the various departments, lines of business, and functions to engage based on the nature of the situation or opportunity.

In the same CMO study, it was revealed that marketers believe that social media has a long way to go toward integrating into the overall company strategy. On a scale of 1-7, with one being “not integrated at all” and seven being “very integrated,” 22% chose “one.” Critical functions such as service, HR, sales, R&D, product marketing and development, IR, CSR, etc. are either not engaged or are operating social media within a silo disconnected from other efforts or possibilities. The problem is that customers don’t view a company by silo, instead they see one company, one brand, and their experience in social media forms an impression that eventually contributes to their view of your brand.

The first step here is to understand business priorities and objectives to assess how social media can be additive in achieving these goals. Additionally, surveying the landscape to determine other areas of interest as its specifically related to your business.

• Are customers seeking help or direction?

• Who are your most valuable customers and what are they sharing?

• How can you use social media to acquire and retain customers?

- What ideas are circulating and how can you harness user generated activity and content to innovate or adapt to better meet the needs of customers?

- How can you broaden a single customer view to recognize the varying needs of customers and how your organization can organize around each circumstance?

- What insights exist based on how consumers are interacting with one another? How can this intelligence inform marketing, service, products and other important business initiatives?

- How can your business extend their current efforts to deliver better customer experiences and in turn more effectively unit internal collaboration and communication?

Customer demands far exceed the capabilities of the marketing department. While creating a social brand is a necessary endeavor, building a social business is an investment in customer relevance now and over time. Beyond relevance, a social business fosters a culture of change that unites employees and customers and sets a foundation for meaningful and beneficial relationships. Innovation, communication, and creativity are the natural byproducts of engagement and transformation. As a social brand, we are competing for the moment. As a social business, we are competing the future in all that we do today.

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Guest post by Danna Vetter, VP, Consumer Strategies, ARAMARK

People laughed when we began talking about putting resources towards building a social structure for a company like ARAMARK. We heard it all:

The standard -
“We can’t open ourselves up to this kind of risk.”

The mean -
“You’re just trying to manipulate company perception.”

The ridiculous –
“No one wants to read tweets about hot dogs.”

If you don’t know, ARAMARK is a private, $13 billion global company that provides managed services (food, facilities, uniforms, etc) for clients in just about any imaginable environment and industry, including sports and entertainment, higher education, healthcare, as well as other general businesses and beyond. You might know us as the people that run the food service at your kid’s school. Or help manage your stay at a conference center. Or clean your room when you stay at the hospital. Or maybe you just know us from that aforementioned hot dog at the ball game.

In whatever the case, our employees work day and night to meet the needs of our clients and we meet them well. Sometimes we are tested by natural disaster or human tragedy like the trapped Chilean Miners. Or it could be any old fire drill our clients run us through –we are there for what our clients need and we make sure it happens. And as an “ingredient” brand that constantly works to get it right, we blend into our client’s environment and deliver on their mission with service results.

While our level of commitment has never changed nor has the expectations of our clients, what has is the consumer. Providing for the needs of today’s Connected Consumer has turned the service game on its head. It’s unlike any challenge we have ever seen. Sure, our businesses had dabbled in social media. Facebook page here, Twitter account there. But by not having a concerted social media effort and structure, we were striking out with an important segment of our consumers without coming to the plate. Ignoring the Digital Age, which has the consumer connected 24/7, would represent a huge opportunity cost. As Brian Solis often says, Digital Darwinism looms for all businesses. And by not connecting with this new consumer, we would be failing to deliver on those client expectations.

Coinciding with all this is the large, complex structure of our businesses, which are organized by industry segment. We have thousands of client locations and over 255,000 employees that work in different environments to meet different client goals and objectives. To create an enterprise strategy to connect with our consumers through social media would require a very thoughtful approach.

Social media, by nature, is alive, personal, and engaging. Anyone who has worked at a large, multi-business company knows that those descriptors of social media sometimes fly in the face of the more formal corporate culture. We are innovative, sure, but it’s a structured innovation. So, ARAMARK was never going to adapt to social media. We were going to have to adapt social media to ARAMARK.

And that’s what we did. We created a team that leads social media from the center of the organization. Our goals are to connect users managing social, consolidate resources, and share information. As you start to think about how you can fit social into your large organization, here are five areas to concentrate your efforts:

1. PEOPLE/COLLABORATION

Many of today’s corporations present fewer gaps of need wider than the one of collaboration. Getting internal employees to communicate and share information with each other is essential for success in today’s global workplace. To help champion social media across our organization, we turned to collaboration by creating a team of “social delegates” from across our businesses. The delegate was made responsible for helping draft their business’ social strategy, act as a point person for their community managers (those responsible for managing our social presence at each location) and become a social media expert.

We regularly hold social delegate meetings to discuss what is going on in social media across the company, what big industry issues have arisen, and to just connect and communicate about what we are all working on. To further the communication, we also have workspace on an internal social collaboration network that allows us to blog about best practices and thought leadership, share files and information, and create wikis to build a library of knowledge about this ever-changing media.

By having our social leads in tune with each other, they can work together to help solve problems, come up with better strategies, and learn new and important skills.

2. OBJECTIVES AND STRATEGIES

Social is not a one size fits all initiative. And a social media strategy, like any campaign effort, needs to be tied back to the business needs and objectives.

We started getting our businesses aligned with this thinking through needs assessment meetings with each of our business’ marketing leaders. As they built their objectives, we had them consider the audiences they are targeting and the goals they’re trying to meet. What comes out of this is the strategies needed to implement a consumer campaign, and then the social channels best capable of achieving success.

3. TRAINING

Developing social media strategies for all of our businesses made obvious a wide range of learning needs. So you can imagine how difficult it can be to train employees across the dispersed enterprise, considering we’re looking to empower thousands of employees from VPs of Marketing to front line managers, cashiers, cooks, etc. What we did was bucket the organization into three categories: Awareness users, Active users, and Expert users.

Awareness users are primarily the highest and lowest ranking members of the company that need to know the company is using social media and how and why this is becoming a part of the way we do business. Active users are the community managers that will represent the company on social channels. And Expert users are our social delegates, who represent our businesses in social and help develop social strategies.

We are working towards a comprehensive online library of “101” modules that focus on general social media and the primary social channels that make sense for our company (Facebook, Twitter, LinkedIn, etc). Our initial module, Social Media 101, was used as introductory training for all members of the company. More in-depth training, including live sessions, is developed based on the individual strategies and needs of the business. But we try to sustain the materials we create and use as much content across the enterprise as possible.

4. TOOLS AND RESOURCES

For a large segment of our company, social media was something they wanted to get involved in – they just didn’t know where to start. As we formed our center-led team, one of our primary goals was to provide the tools and resources so that the businesses could concentrate on doing their job, specifically creating the content that was going to help drive engagement within social channels.
We created a handbook on how to use social media for the organization, developed guides to build a social voice, and also put together a listening framework that identifies and manages conversations from the top to the bottom and vise versa.

We also got an enterprise license for a social media management system that allows our businesses to publish content, access analytics, and simultaneously manage multiple social channels. For the businesses, this really helps them manage their social users and campaigns. For the community managers, it allows them to operate their social channels in one place as well as share content, develop content calendars, and work within a hierarchical structure.

But the key theme here is rather than having multiple businesses in our company create their own resources and purchase their own licenses, we are able to centrally develop sustainable tools and resources that everyone leverages.

5. TEST AND LEARN

In a large company, you may only have one chance to prove a new idea is worthy. If it doesn’t meet or exceed expectations, that may be it. And as social media constantly evolves around us, getting it right is that much harder. At ARAMARK, we are a big believer in testing through pilot programs before larger rollouts. It’s not just the technology or the strategy that you’re testing out – it’s how your employees are able to adapt and implement those strategies with those technologies.

Once you find the right people to test with, create the goals and benchmarks that will give you the information that will demonstrate you met or fell short of success. And when the pilot is complete, you need to document your learnings and make adjustments to your strategy before you’re ready to launch.

That’s just a quick overview of the way we approached tackling the difficult process of organizing social media for a large company. We’ll go deeper into each of those five targeted areas in future posts here.

Always remember, if it is the right idea for your company, there’s a way to make it happen; no matter how crazy the idea or challenging the environment.

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It’s inevitable that I will get the question. You’d think by now that I would learn to expect it…that I would prepare for it…or have a response that would be purely second nature. But I don’t. I’ve no standard answer that automatically inspires anyone in the moment to take action. And, to this day, I neither expect the question nor do I have a rehearsed or standard riposte committed to memory.

So what is “the question?”

The question faces those who see disruption all around them. They believe survival requires change and they aspire to fight for transformation. But, at some point in their quest to pursue a new course, a direction in which they deeply believe, they will ask reluctantly, even desperately, “How do I convince others to see what I see” or “how can I get those in control to recognize the importance of what’s happening around us so that we can move forward in the right direction?”

While my response in each moment always attempts to zero-in on the individual circumstance, the truest, most genuine answer that I can share is that…to bring about change does not take technology, it takes courage. And, this is why change is not a commodity. Change is not easy nor is it formulaic. But I can say this with the utmost conviction, change.is.inevitable and it is yours to define.

We live in disruptive times. As such, everything we know transcends into everything we once knew. How we communicate, connect, discover, learn and share is changing. New and emerging technology is becoming increasingly relentless and it is forcing evolution or complete transformation. And, it touches your personally and professionally. In our own way, we each are gravitating toward dissonance or disarray and it can be distressful. As students, parents, role models, employees, managers, entrepreneurs, artists, or some or all of the above, we will at some point collide with disruption. And in that moment, we will have a choice to make. We either fall down, choose to embrace change, or we will see the possibilities beyond what’s immediately apparent to pave the way toward a more meaningful outcome.

But again, it takes courage. It takes courage to see what others don’t or do what others won’t. It takes courage to push forward when pushed back.

Courage is the ability to do something that frightens one, yet it is the very thing that all leaders share. See, courage takes great strength to stand in the face of pain or inevitable grief and without it, your vision, no matter how brilliant or essential, is merely a masterpiece painted on a napkin—a promise that is never fully realized.

We stand today upon a foundation of uncertainty and apprehension. Everything is changing. What is constant however, is the absence of clarity, direction or answers. To tell you that there is an easy path toward transformation or that there are a series of “top 10 ways” to help you change the perspective of leadership or those around you is, well, misleading or a complete falsehood.

Contrary to popular belief, there are no rules for revolutionaries…just as there are no leaders who don’t continually strive to earn a position of leadership. It takes courage to be a change agent, to rise up and lead the way when others are filled with fear. It takes courage to walk in a different direction when others walk along a contrasting path. Most important, it takes courage to drive persistence to overcome resistance…to find comfort outside your comfort zone when the promise of reward is ambiguous. For, it is the vision to see where you need to go and the conviction to shepherd the march toward relevance that earns the greatest rewards of all, leadership, significance, and advocacy.

This is your time…

“Courage is grace under pressure.” – Ernest Hemingway

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In an era of Digital Darwinism, no business is too big to fail or too small to succeed…this is your time.

Many follow, but very few lead.
Many compete to survive, but few compete for relevance.
Do we listen to our customers? Do we truly understand them?
Do we create experiences or do we simply react?
The future of business comes down to one word…change.
This is a new era that redefines everything.
An era of empowered consumers and employees.
Will we fall to natural selection or will we rise to lead the revolution.
This is our time to make business relevant.
Because people, after all, are everything.

#AdaptorDie

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Digital Darwinism is a phenomenon when technology and society evolve faster than the ability to adapt. And, it threatens rigid and traditional practices everywhere. It’s no longer just survival of the fittest, but also survival of the fitting.  Businesses must earn relevance and to do so requires much more than adoption of the latest technologies or launching endeavors in the latest social or app flavor of the month.

Indeed, this post requires not only your pinterest, but your dedication and creativity. What we’re about to review requires depth not tweeting thoughts.  Contrary to the beliefs of those who push the tenets of a social business as a matter of survival, we are not competing for the moment nor are we merely competing in real-time. We’re competing for the future and at the heart of this (r)evolution is relevance and innovation.

Put yourself in the shoes of your customer for a moment. Do you know them? I mean…do you really know them? What about your employees? Have your tracked how behavior, preference, and decision-making have transformed or in some cases splintered from current mainstream activity?

To survive Digital Darwinism takes understanding of course, but more importantly, it takes leadership…it takes courage. It takes the ability to see what others don’t and do what others won’t. The future of business and customer and employee engagement is built upon a foundation of vision, trust, significance, and relationships. Set on this foundation are 10 pillars for which transformation is braced.

These 10 principles serve as the framework for an adaptable business model where opportunities are readily assessed and innovation is regularly practiced. The reward is relevance, affinity and advocacy. As Leon C. Megginson once said in paraphrasing Charles Darwin’s Origin of the Species, “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.”

10 Tenets to Survive Digital Darwinism

Vision: The stated outlook of organizational direction needs review. When’s the last time you read your company’s vision or mission statement? If you did read it recently, would you Tweet it proudly? In a time when brands are not created, but instead co-created, if vision is unclear or underwhelming, alignment, community and camaraderie will prove elusive.

Strategy: With new media and emerging technology creating a groundswell of customer empowerment, new strategies must focus on the alignment of objectives with meaningful experiences and outcomes. All too often, emerging technology is confused with either disruptive technology, where is impacts how companies work or how customers behave, or that of yet another channel or platform for traditional marketing or selling. Far too much emphasis, budget, and time is placed in new media channels without an understanding of why or what it is that customers expect or appreciate.

Culture: This is a time of change, which requires coalescence and solidarity. We can’t change if the culture is rigid or risk averse. We can’t innovate if those who experiment are not supported. Organizations need to focus on cultivating a culture of adaptation rooted in customer- and employee-centricity and more importantly, empowerment. Culture is everything. It is and should be intentional. It should be designed. Those companies that invest in the development of an adaptive culture will realize improved relationships that contribute to competitive advantages.

People: The 5th P of the marketing mix, “People,” will take center stage. Organizations that embrace the spirit of intrepreneurialism will empower employees to experiment through failure and success to improve engagement and morale. And, by embracing customers, insights will inspire relevant products, services and processes.

Innovation: The ability to recognize new opportunities is perhaps the greatest challenge rivaled only by the ability to execute. Emerging and disruptive technology is now part of the business landscape and customer lifestyle. Innovation, trends, and hype is not going to stop. In fact, it will only amplify. The capacity to identify and consider new solutions and responses is critical. It must be supported by innovative collaboration and decision-making processes and systems to assess and react. Innovation must be perpetual.

Influence: Digital influence is becoming prominent in social networks, turning everyday consumers into new influentials. As a result, a new customer hierarchy is developing forcing businesses to identify and engage to those who rank higher than others. There is no future in any business model that is cemented in reactive engagement. Organizations should identify and engage all connected customers to extend reach outside of problems. Businesses must engage when touchpoints emerge, during decision-making cycles, when positive experiences are shared, or to proactively feed the results who search for insight and direction.  Contributing value to people and investing time and energy into networks of relevance will also earn any organization a position of equal or greater influence.

Localization: For global organizations hoping to connect with customers around the world, localization & contextualization are king in any engagement strategy. This is also true for any engagement strategy regardless of local. Many companies are jumping on every bandwagon imaginable, syndicating content, thinning resources, and investing no more in each network than what’s necessary to maintain a pulse. Facebook, Twitter, Google+, Youtube, Foursquare, Instagram, Pinterest, Quora become broadcast channels for one-to-many strategies and programs that do very little for cultivating dedicated and engaged communities.

Intelligence: One of the biggest trends in 2011 was the development of social media command centers. At the heart of these sophisticated data gathering silos were conversations and tools that allowed community managers to listen, respond, and promote engagement within the company. While social media is introducing the art & science of monitoring to marketing and service teams it is the organizations that invest in technology, teams and processes that will translate activity into actionable insights.

Philanthropic Capitalism: Customers expect values to match their own core values. What used to be a necessary checklist of community focus, such as corporate social responsibility or CSR is now rebooted. Philanthropic capitalism is a business model where companies contribute to worthwhile causes on behalf of customers as part of the transaction. Additionally, customers are expressing that they will also invest in companies where employees are “treated well,” pledging trust and loyalty as a result. The empathetic business model on the horizon requires charitable and sustainable decisions as part of everyday business where customers naturally become stakeholders.

An ode to leadership:

The answers you seek lie in intelligence and empathy. Leadership unfolds in how you translate what you learn and feel into appreciation and understanding of the state of customer sentiment and how that correlates to the state of customer relationships.

Once you listen, not monitor, but truly listen to customer activity and observe online behavior, you cannot help but feel both empathy and harmony. And naturally, the response it begets is only human.

#AdaptorDie

Order The End of Business as Usual today…

Part of an unpublished appendix for The End of Business as Usual…

Think of your favorite brand, and the first thing to come to mind is likely a logo, such as the Coca-Cola scripting, a tag-line, such as Nike’s “Just do it,” or a jingle – remember the Oscar Meyer Wiener song? These may be the aspects of a brand you remember, but they are no longer the most important aspects of branding today. Identity, persona, essence and promise, are the new kings and queens of the branding kingdom, thanks to technology and the deeper connections it opens up between brands and consumers.

Markets, consumer behavior and how businesses connect with customers are all directly impacted by technology. Looking at the rapid erosion of Blockbuster’s business model, it’s clear to see the impact that technology can have on consumer behavior. During Blockbuster’s initial bankruptcy filing, CNBC’s The Faber Report summarized it this way, “At the end of the day, this is one of those bankruptcies that’s not really about a financial situation as much as it’s about seminal changes in how people ultimately watch video.”

The increasingly important role of technology, combined with global economic unrest, means a company’s brand is more important today than it has ever been. Consumers, in search of certainty, rely heavily on a brand’s symbolism and significance. We don’t have to look much further than Netflix for a recent example of what happens when executives misread the impact of technology and consumer demand and in turn, make decisions that have negative effects on the business and the brand. In this case Reed Hastings and company raised prices, which sent customers in an uproar. Feeling the effects of negative sentiment from a full-blown PR crisis and a declining stock price, Netflix opted to divide the company into two entities, Qwikster would handle DVDs and Netflix would focus on digital and streaming. The company caved to consumer and investor pressure however and folded the two entities back under Netflix, killing off Qwikster as quickly as it introduced it. Netflix customers weren’t ready for such a bold move toward a new direction. But, any form of market research that studied conversations in social networks or quite simply, a customer engagement program would have revealed the state of consumer needs. Netflix now must focus on rebuilding its brand to earn and re-earn trust before it can take another aggressive move into the future.

Brands that fail to instill this level of confidence in consumers run the risk of falling to digital Darwinism. The brands that survive this era of economic disruption, will be the ones that are best able to evolve because they recognize the need and opportunity to do so, before their competitors .

Survival of the Fitting

Digital Darwinism is the evolution of consumer behavior when society and technology evolve faster than some companies’ ability to adapt.

The point of natural selection is that not every business will make it. As Edward Lawler and Christopher Worley note in their book Built to Change, “An analysis of Fortune 1000 corporations shows that between 1973 and 1983, 35% of companies in the top 20 were new.” Their work showed that the number of new companies rose to 45 percent between 1983 and 1993. That number increased to 60 percent between 1993 and 2003. And, as they so appropriately asked, “Any bets [as] to where it will be between 2003 and 2013?”

To further their point, a recent ad produced by Babson College cited a rather humbling statistic; “Over 40% of the companies that were at the top of the Fortune 500 in 2000 were no longer there in 2010.”

We’ve witnessed the demise of seemingly invincible brands in the U.S., such as Circuit City, Borders Books, Wherehouse, Tower Records, Pontiac, Saturn, and Palm among others. Meanwhile, grim predictions show that the pattern has no end in sight. In June, 24/7 Wall St. published its annual list of “Ten Brands That Will Disappear in 2012.” The publication predicts the demise of some of the world’s most recognizable brands, including Sony Pictures, American Apparel and Nokia.

What separates brands that falls to digital evolution from those that excel is the ability to recognize the need for change and the vision to blaze a path toward renewed relevance among a new generation of consumers.

Branding is More Important Than Ever before

In 1984, Apple stunned the world with its now iconic “1984” commercial. It firmly established Apple’s brand and ultimately set the stage for the company’s significance in the emerging personal computers market. The commercial attained legendary status, but Apple, like every brand, would still need to relentlessly compete for attention and relevance.

A year later, Apple attempted to match its previous success with “Lemmings,” a commercial that dramatized the lemming-like behavior of the PC-based workforce. The ad, while arguably brilliant, was widely considered a flop, since following the image of businessmen following one another over a cliff confused customers. Over time, Apple’s brand slowly degraded, losing touch with its core audience and missing an opportunity to connect with the growing base of consumers seeking personal computers.

When Steve Jobs returned to Apple in 1997, he was on a mission to not only turn the company he co-founded around, but also rebrand the company to connect with consumers. In a recently surfaced internal video, Jobs focused on the importance of brand as he introduced the employees to its iconic advertising campaign, “Think Different.”

“For me, marketing is about values,” said Jobs,”This is a very noisy world and we’re not going to get a chance to get people to remember much about us. So, we have to be very clear what we want them to know about us.”

The company then looked inward in an attempt to answer the questions: Who is Apple; What does it stand for and where does the brand fit in the world.

“What we’re about isn’t making boxes for people to get their jobs done,” said Jobs during the company meeting,” Apple’s core value is that we believe people with passion can change the world…for the better. Those people, crazy enough to think that they can change the world are the ones that actually do.…Here’s to the crazy ones.”

The “Think Different” campaign would run from 1997 to 2002 and effectively rebrand Apple for years to come. But that was just one example of how the company would use branding to compete for attention and relevance over the years.

Brand Empathy: Always Improve Experiences

In 2011, Millward Brown Optimor released its annual BrandZ survey that ranked and valued the world’s top brands.

Apple surged to the number one spot, soaring 84 percent relative to its 2010 ranking. The company boasts a brand value estimated at $153 billion. Google came in second, however its brand value fell by 2 percent to $111 billion. IBM came in third, with a 17-percent increase in brand value year over year to tie Google at $111 billion. McDonald’s ranked fourth, growing 23 percent and earning a brand value of $81 billion.

Any other company would likely be thrilled to be in fourth place, but not McDonald’s. The company is undergoing its most extensive store-by-store makeover in the chain’s 56-year history. Gone are the famous yellow and red interior colors. The fiberglass tables and steel chairs have also been removed. Instead, McDonald’s is adapting to a new era, creating an experience marked by muted colors, wooden tables and faux leather chairs. And, that’s just the beginning. McDonald’s is pouring $1 billion into redesigning the consumer experience. The goal is to provide create an elegant and upscale presence similar to that of Starbucks, Chipotle, and Panera Bread.

As Jim Carras, senior vice president of domestic restaurant development for McDonald’s told USA Today, “McDonald’s has to change with the times and we have to do so faster than we ever have before.”

Meanwhile, don’t expect Apple to slow down despite its newly-minted, first-place position. Apple will continue to innovate, even as the company mourns the loss of its chief visionary. Expect Apple to continue to inspire meaningful experiences, and establish a sense of unparalleled belonging. This is the charge of any brand that wants to stay at the top of the brand value list. In the face of digital Darwinism, reinvention, constant relevance, and perpetual value become the pillars for an adaptive business.

Everything begins with embracing a culture of innovation and adaptation — a culture that recognizes the impact of disruptive technology and how consumer preference and affinity is evolving. Social and mobile networks, tablets, smart phones, syndicated commerce, augmented reality, and gamification represent some of the game changers that businesses must either embrace or deeply study to determine bottom line impact. If a organizations cannot recognize opportunities to further compete for attention and relevance, it cannot, by default, create meaningful connections, a desirable brand or drive shareable experiences. The brand, as a result, will lost preference in the face of consumer choice, which may one day lead to its succumbing to digital Darwinism.

Perhaps Jobs said it best: “This is a very noisy world, so, we have to be very clear what we want them to know about us.”

I would just add…”and never stop.”

#AdaptorDie

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A key objective for senior executives over the next several years is to use disruptive technology to get closer to customers, to improve relationships, and enhance experiences. It is a considerable move and the result will usher in a new era of adaptive and empathetic business models. However, this is a move that is easier said than done., especially when vision and execution are two sides of different coins. This is a critical path where businesses must not only commit to new technology and goals, but also invest in the methodologies, systems, processes, and people to bring about change from within before it can effectively engage outside.

Like in anything, businesses are measured by actions and words, where outcomes reveal true progress. In 2012 and 2013, businesses will prioritize efforts that bring the organization closer to customers while also performing against the metrics that are constant, including revenue, market share, increased efficiencies and improved margins. The difference now is that today’s company faces a formidable customer that is connected, empowered, influential, and most notably elusive. To earn their attention, their business and ultimately their loyalty and advocacy, the customer journey must be reconsidered, redesigned and individualized.

In a survey of over 1,700 CMOs in 2011, IBM found that the intention of customer engagement was certainly present, but that executives were unclear in how to assess and integrate new technology in managing and leading customer relationships. Of the 13 key market factors below, an alarming 50+ percent of respondents are under prepared to manage all but two key changes, Regulatory Considerations and Corporate Transparency.

Certainly, the model for tomorrow’s business is under development today. What’s clear is that the answers to lead change and chart new directions are unclear. And, this represents both a challenge and opportunity.  Determined businesses will not sit idly while the market is defined by new technology and corresponding customer behavior. Nor will enterprising businesses adopt every new trend that comes along as a way of surfing waves of short-term relevance. Leaders and change agents will develop a process and taskforce to assess new technology against corporate vision, customer expectations, and market direction to prioritize investments in the following areas:

1. Integrated strategy and execution toward business objectives
2. Renewed, unified and consistent branding
3. Organizational structure, alignment and the empowerment people
4. Operations and supply chain
5. Improved processes
6. Collaboration
7. Customer service and engagement in new channels
8. Risk and reputation management
9. Integrated experiences – Mobile/Tablet/Digital/Social
10. Syndicated commerce
11. Metrics and value systems

These areas of focus represent the trends in transformation as expressed through the aspirations of executives who hope to get closer to customers and the expectations of the customers they hope to reach. This is as much about technology and vision as it is about reducing friction, inside and out. In the end, the convergence of disruptive technology, business processes, and customer experiences forces any organization to examine and re-examine everything.  Every effort today carries opportunities for optimization or complete overhaul. The end result is increased relevance, improved experiences, and escalated results.

Some of the key areas of focus for any business in this convergence will include:

1. Big data and the necessary algorithms to make sense out of sheer volume and noise – the net result is intelligence to set the foundation for Adaptive and Predictive business models

2. Social and mobile media as it relates to customer influence, the customer journey, and post-commerce activities

3. Contact centers and the unification of democratized channels such as Facebook, Twitter and Google+ and a managed customer relationship system

4. Metrics, ROI, and meaningful outcomes that look beyond today’s limited KPIs that focus on friends, fans, followers, views, etc.

5. The relationship between CMO and CIO and how together, they will need to invest in innovation and scalability for a new breed of employee, consumer, and an unending array of emerging and disruptive technology

While these reflect only part of the trends requiring transformation, they collectively contribute to customer and employee preference and ultimately competitive advantage. This is the year when we must take a step back to cut through the fog of hype and identify the gaps between business objectives, customer expectations,the important technology channels that separate businesses and customers, and the capabilities and prowess to effectively engage and lead experiences across the board.

In further reviewing the IBM CMO Global Study, CMOs are prioritizing new technology investments as it relates to increasing engagement and improving customer relationships and experiences.

As you can see above, the examination of disruptive technology and the exploration of revising internal processes are aligning to…

1. Enhance customer loyalty/advocacy

2. Design experiences for tablet/mobile apps

3. Use social media to engage customers…their way

4. Use integrated software to better manage customer relationships

5. Listen and learn

This list should be viewed as a checklist for leading important conversations that contribute to a strategy roadmap. Where businesses are and where they will be next year and five years from now will not be predicated simply by social media. Customer expectations and the capacity to translate trends into actionable market opportunities requires a syndicated, but integrated approach, one where all channels are considered and weighted based on behavior and educated predictions. The true opportunity for customer engagement and scalable profitability lies in the architecture of not only a more social business, but a holistic enterprise that operates under a united front. But to get there requires the difficult first step, acceptance. Second, businesses need to assemble capable stakeholders who can organize the necessary treatise between social media champions, change agents, and leaders to organize a distributed movement that empowers employees, engages customers optimizes experiences, and adapts to new opportunities for growth and earned relevance.

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I was recently asked to join a group of experts to contribute thoughts on trends driving the evolution of CRM over the next five years. I must say, that it’s a group of individuals whom I not only respect, but also am lucky enough to know in the real world.

- Ray Wang, Principal Analyst & CEO at Constellation Research
- Brent Leary, Owner at CRM Essentials
- Esteban Kolsky, Principal & Founder at ThinkJar LLC
- Denis Pombriant, CEO at Beagle Research Group, LLC
- Paul Greenberg, Owner at The 56 Group, LLC

SoftwareAdvice‘s Lauren Carlson led the discussion under the banner of CRM’s Next 5 in 5. I’ve included some of the highlights here to give you a glimpse of what each expert is tracking. Of course, take a moment to read the full post for a deeper perspective…

Ray Wang: In the next five years, we will see tremendous growth in context services and the data they provide. A key source of this context data will be from mobile devices. Context services are subscription services that help add context during engagement. For example location, relationship, roles, business process, and other sensing technologies.

Esteban Kolsky: We still don’t have the analytical tools to make sure we can deliver value in the instances described. We need to build the infrastructure to make sure there is value in the technology. Analytics and Cloud are leading the charge there.

Paul Greenberg: We’ll see more technologies like SAP HANA, Hadoop and other in-memory and distributed technologies deliver radically faster information processing capabilities. Real-time customer intelligence will become a reality. Technologies around unified communications will be not only hot, but game changers.

Denis Pombriant: Virtual interaction increases the need for enhanced content management systems, as well as spur demand for video production tools that lightly-trained people can use to create animations and conventional “talking head” broadcasts. We will also probably see CRM systems evolve to track these virtual interactions.

Brent Leary: Near Field Communication and the impact it will have on person-to-person and machine-to-machine information exchange will have a big impact on CRM in the not too distant future. I’d also throw in connecting the TV to the mix of screens companies will use to create better customer experiences When people are at home with access to a big screen, they will want to leverage that for their interactions and rich content experiences. Companies that begin developing engagement strategies with this in mind should be in line to see some competitive advantage in terms of customer engagement.

While only some of thoughts made the cut, I didn’t want to lose the other ideas that were swirling in my mind as a result of this exercise. I needed a place where I could park the other important trends I’m following…

1. In 2012 and continuing into 2013, I believe businesses will start to explore new dynamics of CRM beginning with the Customer Influence Factor (I.F.). Services such as Klout, PeerIndex, and Kred are by default creating a social customer hierarchy that introduces influence beyond marketing, to now include service and sales professionals.

2. The second trend is the development of CRM systems that integrate I.F. data into the mix. This will help the front line prioritize engagement, personalize engagement, while providing a more comprehensive view of the social customer and their needs and expectations.

3. Naturally this introduces complications and new parameters in how businesses engage and develop relationships with customers. This will by default necessitate the development of new rules of engagement and supporting metrics to convert leads, solve customer issues, and improve experiences.

4. Next, we will see gamification extend beyond marketing to improve loyalty through integrated social rewards programs, social graph data, and a more community-focused effort on expanding the company’s reach through influence and advocacy programs.

5. Finally, the convergence of marketing, service, sales, and business intelligence will set the stage for businesses to build a more holistic front and experience through traditional web, social and mobile networks. Integration signals not only technology frameworks and connected systems and processes for collaboration, but more importantly, a mission, purpose, and charter to meet and exceed customer needs and expectations.

Where do you see CRM headed?

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Guest post by Scott Forshay, creator and editor of mobi.luxe. Following him on Twitter @mobiluxe

Establishing consumer relationships through mobile marketing, as with any successful, productive relationship, inherently requires a mutual exchange of value. Whether consumers are opting-in for brand communications via SMS or engaging with the brand in a single instance through scanning a QR code, the onus is on the brand to deliver value in return for customers’ valuable time and information. Without the perception that value has been exchanged for value, the relationship becomes essentially one-sided and unrequited attempts at interaction on the part of the consumer will spell the end of the relationship – perhaps permanently.

In the early stages of mobile marketing, the value exchange was almost exclusively defined through promotional-based marketing. Consumers were asked to share their mobile numbers in exchange for coupons. While seemingly primitive by today’s standards, text back couponing remains an effective behavior stimulus for many brands and retailers, but for luxury brands discounting flies in the face of the intrinsic value of the brand. The challenge for innovative prestige brands is defining how best to create a true value exchange with their most loyal advocates while remaining true to themselves and not cheapening the brand in the process of attempting to deepen relationships.
Any value exchange requires the exchange of currency. Whether the currency is monetary, emotional, or informational, it establishes the parameters necessary to define a successful exchange and secures a commitment to future exchanges. With this in mind, an analysis of the efficacy of any value exchange must be measured by the mutually beneficial exchange of mobile currency.

Affluent loyalists of prestigious brands seek greater intimacy with, and priority access to, the brands they most covet. In exchange for priority access, the affluent consumer will exchange premium monetary currency. A mobile campaign touchpoint that directs the consumer to an optimized landing page or microsite featuring a product exclusive to mobile subscribers effectively plays marionette with the heartstrings of affluent consumers by exclusively engaging a prestigious audience with exclusivity and access to product available only to a select audience. Tactics such as these create a successful value exchange whereby a monetary commitment is made by the consumer in exchange for priority access to the brand and the prestige associated with exclusive ownership.

The essence of any coveted brand is the story it conveys. And as Brian Solis believes, “the aspiration it evokes.”

The rich heritage and tradition of the brand is infused with creative vision and continued innovation as the brand narrative unfolds across mediums to engage consumers and create a vision of a lifestyle to be aspired to and desired. Traditionally the brand narrative has been told in a unidirectional fashion through artfully produced photography and film, but the consumer was only capable of experiencing the story in a disconnected way. Mobile, as a medium, is innately transitive in nature, serving as a persistent interface for consumers to navigate an ever-evolving digital ecosystem of retail touchpoints and become, themselves, players in the storytelling experience. Strategically dissecting the brand narrative to take on an episodic form allows the brand to engage audiences in the on-going drama, create desire to see where the story will lead, and create deeper emotional connections in the process. Whether bringing still imagery to digital life through QR codes or augmented reality, targeting desired audiences and engaging them with rich mobile display advertising, or consistently communicating emotional currency via SMS marketing, the mobile value exchange is successful in the exchange of permission to communicate with highly-valued consumers in return for deeper levels of involvement and engagement with the brand.

Regardless the strategies or technologies employed, successful mobile marketing relies heavily on a fair and evenly balanced value exchange between consumer and brand. Given the intensely personal nature of smart devices, coupled with the fact that the device is nearly always within arm’s reach, it is more important in mobile marketing to avoid being intrusive and irrelevant. Consumers will not give up their valuable information in exchange for clutter or noise. Focus on an understanding of the currency of mobile marketing and utilize it to create an exchange that delights both the audience and the brand that value them.

Scott Forshay is a Luxury and Premium Brand Marketing Consultant and Mobile Strategist who’s been featured in PSFK, Luxury Daily, Fashion’s Collective, Business of Fashion, and The Wall Street Journal.

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Part 16 in an ongoing series that serves as the prequel to my new book, The End of Business as Usual…

It’s a new year and a new set of predictions to set goals and expectations for 2012.  I won’t bother you with the top 10 emerging social networks or apps to focus time and resources. Nor will I gaze in the crystal ball to reveal the five secrets to viral marketing and user/customer acquisition. Instead of adding my forecasts to the endless sea of debatable prophesies, I chose a more aspirational path.

2012 is the year of transformation as digital Darwinism threatens rigid and traditional practices everywhere. Regardless of industry, digital Darwinism is a phenomenon when technology and society evolve faster than the ability to adapt.

Indeed, this is a time when organizations will invest in change to better adapt to emerging market opportunities, to more successfully engage with customers, employees and stakeholders, rethink systems and processes, and ultimately, revive the company’s vision, mission and purpose. The result is an adaptive culture that signals an end to business as usual. Without doing so only expedites the inevitable journey towards irrelevance.  For 2012 and beyond, the following trends serve as beacons for not only survival, but leadership.

Trends for Transformation

Leadership: As technology continues to evolve & permeate work and life, behavior, expectations and communication evolve. Someone must look ahead, see where we need to go and lead the way to relevance. Leadership is something that must be earned. Without a top-down charter toward a direction everyone can march behind, leadership is relegated to operational management. In the age of empowerment, those who march blindly will follow a path not unlike what Steve Jobs envisioned in the infamous Apple Lemmings commercial.

Vision: The stated outlook of organizational direction needs review. When’s the last time you read your company’s vision or mission statement? If you did read it recently, would you Tweet it proudly? In a time when brands are not created, but instead co-created, if vision is unclear or underwhelming, alignment, community and camaraderie will prove elusive.

Strategy: With new media and emerging technology creating a groundswell of customer empowerment, new strategies must focus on the alignment of objectives with meaningful experiences and outcomes. All too often, emerging technology is confused with either disruptive technology, where is impacts how companies work or how customers behave, or that of yet another channel or platform for traditional marketing or selling. Far too much emphasis, budget, and time is placed in new media channels without an understanding of why or what it is that customers expect or appreciate.

Culture: This is a time of change, which requires coalescence and solidarity. We can’t change if the culture is rigid or risk averse. We can’t innovate if those who experiment are not supported. Organizations need to focus on cultivating a culture of adaptation rooted in customer- and employee-centricity and more importantly, empowerment. Culture is everything. It is and should be intentional. It should be designed. Those companies that invest in the development of an adaptive culture will realize improved relationships that contribute to competitive advantages.

People: The 5th P of the marketing mix, “People,” will take center stage. Organizations that embrace the spirit of intrepreneurialism will empower employees to experiment through failure and success to improve engagement and morale. And, by embracing customers, insights will inspire relevant products, services and processes.

Innovation: The ability to recognize new opportunities is perhaps the greatest challenge rivaled only by the ability to execute. Emerging and disruptive technology is now part of the business landscape and customer lifestyle. Innovation, trends, and hype is not going to stop. In fact, it will only amplify. The capacity to identify and consider new solutions and responses is critical. It must be supported by innovative collaboration and decision-making processes and systems to assess and react. Innovation must be perpetual.

Influence: Digital influence is becoming prominent in social networks, turning everyday consumers into new influentials. As a result, a new customer hierarchy is developing forcing businesses to identify and engage to those who rank higher than others. There is no future in any business model that is cemented in reactive engagement. Organizations should identify and engage all connected customers to extend reach outside of problems. Businesses must engage when touchpoints emerge, during decision-making cycles, when positive experiences are shared, or to proactively feed the results who search for insight and direction.  Contributing value to people and investing time and energy into networks of relevance will also earn any organization a position of equal or greater influence.

Localization: For global organizations hoping to connect with customers around the world, localization & contextualization are king in any engagement strategy. This is also true for any engagement strategy regardless of local. Many companies are jumping on every bandwagon imaginable, syndicating content, thinning resources, and investing no more in each network than what’s necessary to maintain a pulse. Facebook, Twitter, Google+, Youtube, Foursquare, Instagram, Pinterest, Quora become broadcast channels for one-to-many strategies and programs that do very little for cultivating dedicated and engaged communities.

Intelligence: One of the biggest trends in 2011 was the development of social media command centers. At the heart of these sophisticated data gathering silos were conversations and tools that allowed community managers to listen, respond, and promote engagement within the company. While social media is introducing the art & science of monitoring to marketing and service teams it is the organizations that invest in technology, teams and processes that will translate activity into actionable insights.

Philanthropic Capitalism: Customers expect values to match their own core values. What used to be a necessary checklist of community focus, such as corporate social responsibility or CSR is now rebooted. Philanthropic capitalism is a business model where companies contribute to worthwhile causes on behalf of customers as part of the transaction. Additionally, customers are expressing that they will also invest in companies where employees are “treated well,” pledging trust and loyalty as a result. The empathetic business model on the horizon requires charitable and sustainable decisions as part of everyday business where customers naturally become stakeholders.

These pillars will serve as the foundation for an adaptable business model where opportunities are readily assessed and innovation is regularly practiced. The reward is relevance, affinity and advocacy. As Leon C. Megginson once said in paraphrasing Charles Darwin’s Origin of the Species, “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.”

#AdaptorDie

Order The End of Business as Usual today…

Part 1 – Digital Darwinism, Who’s Next
Part 2 – Social Media’s Impending Flood of Customer Unlikes and Unfollows
Part 3 – Social Media Customer Service is a Failure!
Part 4 – I think we need some time apart, it’s not me, it’s you
Part 5 – We are the 5th P: People
Part 6 – The State of Social Media 2011: Social is the new normal
Part 7 – I like you, but not in that way
Part 8 – Are You Building a Social Brand or a Social Business?
Part 9 – CMO’s are at the Crossroads of Customer Transactions and Engagement
Part 10 – From Social Commerce to Syndicated Commerce
Part 11 – You can’t go back to create a new beginning, but you can begin to change the ending
Part 12 – How to Make Customer Service Matter Again Part 1
Part 13 – How to Make Customer Service Matter Again Part 2
Part 14 – Long Live Blogs! The State of the Blogosphere 2011
Part 15 – Going Global by Going Local: Why localization improves engagement

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In 2011, the digital landscape underwent a significant shift that will have profound effects on business in 2012.

The challenge is that hardly any business leaders noticed. That’s not their fault however.

Although the impact of technology on business and consumer behavior was widely reported, in-depth reports on what to do next or how this will affect their business specifically were scant at best.

I’m sure you heard it from experts everywhere, “You need a Facebook brand page! Why are you not on Twitter yet? Have you checked-in on Foursquare? Hurry up and get set up on Google+. If you don’t get on social media, you’re going to go out of business!”

And, here you are…still in business. But like any keen business leader or entrepreneur, you’re avidly thinking about your next move. You already know that running the show in a mode of “business as usual” is not only limiting, it’s terribly complacent. But if you are to change, you need to better understand exactly how technology is influencing the behavior of your customers and why.

The truth is that you can create brand pages on every social network you can imagine and you won’t succeed unless you know whom you’re trying to reach and where, what it is they expect and value, and how these channels represent a meaningful opportunity for you and your consumers to connect. You first must answer what’s in it for them and what’s in it for you.

What the social media gurus aren’t telling you is that the landscape for business isn’t changing because of social media, it’s changing because consumer expectations are evolving.

Your customers are empowered through technology where social media becomes only part of the disruption.

Your job in 2012 is to not embrace new technology with arms wide open, but instead understand it and learn which disruptive technologies separate you from existing and potential customers.

What’s unique about “connected” consumers is that they find and share information differently than their more traditional counterparts. They make decisions differently than the everyday consumers you’re used to engaging as well.

But keep in mind, the connected do not displace your traditional customer, they simply expand your opportunity to grow your business.

How you’re marketing, selling, and servicing customers today is largely missing this new breed of consumer, and thus limiting your overall opportunity for growth.

To reach the connected consumer, you must first walk in their footsteps. It takes research, not guesswork. It takes understanding, not skepticism. And it takes a dedicated, not generic or approximated, approach.

Why? Because while your traditional consumer relies on tangible media such as TV, radio, newspapers, direct mail, email, Google search or static websites, the connected consumer is not blindly seeking information, they are reliant on the right information finding them, in the right places.

For example, your new prospective customer lives on their smartphones and tablets. They network with friends, family and the businesses they support in mobile and social networks.

They check in to locations to signal to people nearby that they’re in the neighborhood and to alert businesses that they’re ready to interact live.

Consumers install apps to better make decisions and to broadcast those decisions to their social networks.

What’s more, they research products and services based on the experiences of their peers in real-time, and in turn, share their experiences with everyone else to shape and steer the experiences of others.

In doing so they expand the idea of “audiences” to something far more efficient and expansive — an audience with an audience of audiences.

While it seems foreign or dismissible to those who are not actively embracing or even dependent on disruptive technology, connected consumers are only growing in size, magnitude and influence. Ignoring them is a step toward digital Darwinism.

Today, no company is too big to fail or too small to succeed. Simply knowing your customer is one thing. But, understanding how they make decisions and participating in that process influences behavior while building meaningful relationships.

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Originally published on Monster.com

Welcome to another New Year! While everyone else is busy thinking about or already breaking their New Year resolutions, it’s time for us to take a moment to rethink what it is we can really do better now and over the next 12 months.

I’m sure you heard it everywhere last year. Experts found the highest blog mountains and social network skyscrapers to Tweet in concert, “You need a Facebook brand page! Why are you not on Twitter yet? Have you checked-in on Foursquare? Hurry up and get set up on Google+. If you don’t get on social media, you’re going to go out of business!”

And, here you are…still in business, I presume. But like any keen business leader or entrepreneur, you’re avidly thinking about your next move and your social media strategies for 2012.

You already know that running the show in a mode of “business as usual” is not only limiting, it’s terribly complacent.  But if you are to change, you need to better understand exactly how technology is influencing the behavior of your customers and why.

The truth is that you can create your company brand pages on every social network you can imagine and you won’t succeed unless you know whom you’re trying to reach and where, what it is they expect and value, and how these channels represent a meaningful opportunity for you and your consumers to connect.

You first must answer what’s in it for them and what’s in it for you.

Defining your Social Media Strategy

Social networks, smartphones, tablets, review sites, gamification, geo-location, et al. are producing a new breed of consumer, and businesses are largely missing them altogether. In fact, the emergence of this more “connected consumer” is forcing the end of business as usual.

At the same time, the decision patterns of these connected consumers has ushered in an era of risk where any business, large and small, is vulnerable to digital Darwinism — the evolution of consumer behavior when society and technology evolve faster than the ability to adapt.

Ten Social Media Tips

In 2012, consider yourself a digital anthropologist or sociologist as you immerse yourself in a day in the life of your connected consumer and seek to close the chasm between you and them.

There are many professional social media analysts, researchers and strategists who can help you find the answers you seek.

Starting now and forever, technology and empathy are now part of your business strategy. To what extent disruptive technology impacts your markets will depend on your industry and the rate of adoption within it.

Priority areas for your social media strategy should include an understanding of the following:

1. Social Networks from Facebook to Twitter to Google+ and how they’re connecting to influencers and businesses

2. Geo-location check-in services such as Foursquare and Facebook location updates to share locations and earn rewards or opportunities for discounts.

3. Crowd-sourced discounts and deals including Groupon and LivingSocial and what’s valued and why.

4. Social commerce services like Shopkick and Armadealo and how they create personalized experiences that are worth sharing.

5. Referral based solutions like Yelp, Service Magic, and Angie’s List to make informed decisions and how shared experiences can improve your business, products, and services.

6. Gamification platforms such as Badgeville and Fangager, and why rewarding engagement improves commerce and loyalty.

7. How your consumers using mobile devices today and what apps they’re installing. Also, how they’re comparing options, reviewing experiences and making decisions while mobile?

8. The online presence your business produces across a variety of platforms such as tablets, smartphones, laptops and desktops. You must realize how consumers are experiencing the online presences you create and whether or not they deliver a holistic and optimized experience for each platform.

9. The consumer clickpath based on the platform consumers are using. Are you steering experiences based on the expectations of your customers? And are you taking into consideration the device or network where the clickpath begins and ends? Are you integrating Facebook F-commerce and m-commerce into the journey?

10. The expectations of connected consumers, what they value in each channel and platform, where they engage and how your business can improve experiences and make them worthy of sharing.

This is your year…

2012 is the year for you to grow your small business while earning relevance among a growing class of connected consumers.

Regardless of technology, the future of business isn’t created, it’s co-created. To succeed, it takes a culture of customer centricity and the ability to recognize new opportunities and adapt based on what they present.

In the words of Charles Darwin, “It is not the strongest of the species that survives, nor the most intelligent. It is the one that is most adaptable to change.”

Connect with me: Twitter | LinkedIn | Facebook | Google+

The End of Business as Usual is now available
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Originally published on Monster.com
Image Credit: RedKid.net

During Blogworld Expo in Los Angeles, I was given the opportunity to interview Jim Farley, Ford’s Group Vice President, Global Marketing, Sales and Service live on stage. The discussion was focused on a powerful theme, putting your brand in the hands of customers. Certainly for any business, large and small, the idea of empowering customers to shape and steer your brand can be perceived as both frightening and dangerous. But here, Farley brings a refreshing perspective on why businesses, including Ford, need to engage customers in a more human and genuine manner. He looks beyond marketing to bring executives, employees and customers together in building a stronger brand, more relevant products and services, and investing in meaningful relationships to ultimately create a remarkable business…a business that matters beyond its goods.

“My responsibility is to teach the organization something they’re not willing to learn. If I get fired because of it or if I don’t fit, I should not have been there any way. We live in a new paradigm…with a new opportunity.” – Jim Farley

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Season Two:

S2E1: How Mercedes Benz Successfully Uses Social Media to Engage
S2E2: Technorati’s Richard Jalichandra on the State and Future of Social Media
S2E3: Guy Kawasaki on the Art of Enchantment
S2E4: Adly CEO Arnie Gullov-Singh on the Social Era of Celebrity Endorsements
S2E5: Filmmaker and Webby Awards Founder Tiffany Shlain
S2E6: Jim Louderback, Revision3 CEO on the Future of Broadcast and Web Television – Part 1 of 2
S2E7: Jim Louderback, Revision3 CEO on the Future of Broadcast and Web Television – Part 2 of 2
S2E8: Marcel LeBrun of Salesforce Radian6 on the Future of Social Media Monitoring
S2E9: Our Digital Society in the Next 30 Years: An Interview with John Battelle
S2E10: How Social Customer Service is Changing the Culture at Comcast
S2E11: Dunkin’ Donuts Uses Social Media to Improve Customer Relationships and Experiences
S2E12: USA Today’s Jon Swartz on Disruptive Technology’s Impact on Business and Culture

Season One on YouTube

Now on iTunes!

Photo Credit: Isaac Brekken for The New York Times

As I think about disruptive technology, it’s clear that as an industry, we often get stuck in conversations about products, services, and features. In social media for example, we are enamored with Twitter, Facebook, Foursquare, and the like. At the same time, we tend to confuse emerging with disruptive technologies and overly invest in rising stars such as Instagram, Quora and to some extent Google+ before we understand the impact they have on our world and the impact we can have within each network.

Why does this matter?

As an analyst and as a geek, I too am captivated by all that’s new and shiny. I’m grounded however, by the real world conversations and actions necessary to translate trends into actionable insights. Innovation must be studied. Its impact must be understood. The benefits offered by disruptive technology must be analyzed to learn how it will benefit our business, whether its effects are of value to the business or market infrastructure, in customer and employee relationships, or in product or process breakthroughs. It’s not enough to experiment. While test and learn is a necessary ingredient in converting innovation into progress, it is in the recognition of opportunities where we need to begin. We need to start with a hypothesis or an idea about how technology plays a part in evolution and more importantly, how it allows businesses to realize its objectives better than it does today. It then takes research and experiments to prove or disprove your theory.

In addition to a culture of innovation, experimentation, and one that can recognize new opportunities, the future of evolution comes down to you and your leadership team.

I recently had the opportunity to join Steve Woodruff and Lisa Petrilli in their popular #LeadershipChat forum on Twitter. We discussed why this is the time where business as usual is no longer an operating model. We also dove into the importance of translating trends into opportunities to either lead or help leaders chart a new course. We indeed face an era of digital Darwinism, a phenomenon where technology and society evolve faster than our ability to adapt. This is a time for reflection and adaptation. In the words of Charles Darwin, “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.”

In 140 characters or less, here are some of the highlights of the discussion…

This book (The End of Business as Usual) marks a departure from your past writings. In what way(s)?

- Social media is disruptive in how people communicate, discover & share. It is not a catalyst for leadership enlightenment #LeadershipChat

- To earn the attention of C-Level executives takes understanding, tenacity + ability to translate trends into opportunity

- Social media is only part of the story. The lessons many are just now learning are not unlike those who’ve focused on change

What’s advice re 1st step for a company to translate what see/know into actionable insight?

- My Advice? Stop focusing all of the $+resources on monitoring keywords & put someone from BI on analytics

You see the “connected consumer” as a major driver of change in business. Why and how?

- The connected expand opportunities. They don’t follow the steps of other consumers. They influence + are influenced differently

- We have 3 distinct groups of consumers & how they discover/communicate changes w/each – traditional, online & connected

- Connected consumers are just that…connected. How they find & share information and make decisions is not like the others

- The connected represent a wave of new consumerism & require businesses to rethink & amend its approach to reach & lure them

How can businesses most effectively attract and interact with the “connected consumer”?

- Some believe that consumers don’t know what they want. If we listen to them, we react vs innovate, which = meh products

- Steve Jobs once said “You‘ve got to start w/the customer experience & work backward – not the other way around”

- Consumers are becoming connected & influential. The opportunity is for businesses to architect exceptional experiences

- From marketing to sales to service to experience, businesses must think about defining meaningful + shareable experiences

- People will always talk, whether they’re connected or not, so give them something to talk about. Every consumer group wins!

What will it take for leaders to adapt to – and lead – the new climate and culture of business?

- Quests toward customer-centricity follow 2 paths. 1) Get closer to customers thru social. 2) Create a customer culture

- Leaders often talk about transformation, change or vision much like politicians address the needs of people during election

- Leadership is earned. It’s not a right…it is a rite of passage. Leaders must see what others don’t & do what others can’t

- There’s a drought of useful information-that’s OUR opportunity. We must translate what we see/know into actionable insights

- Change happens when persistence outlasts resistance & it is also your opportunity to become part of the new leadership team

You talk adamantly about vision, higher purpose and mission, where’s the ROI in that? Is that what CEOs really want?

- What’s the ROI of vision or innovation? Often ROI stands for Return on Ignorance, which as you can imagine is usually low

- If you ask an exec what they truly want, the answer will vary across the board-profits, sales, efficiencies, happy employees

- I spent a lot of time w/@zappos Tony Hsieh. He once told me businesses excel if they focus on higher purpose vs bottom line

- I researched it & companies focused on purpose, mission, experience tended to over index in satisfaction, profitability, etc

- Leaders don’t chase trends, they seek results. This requires customer engagement + experiences & leads to mission/innovation

You can read the full transcript over at Hashtracking.

Order The End of Business as Usual today…

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The new, new Twitter is upon us and while some of you already have access to it, others will have to wait up to three weeks. I’m not one to write about new features or products as they’re released. But I would like to take some time to review why this version of Twitter is important to you and your business.

Twitter has undergone nothing short of a complete redesign…again. The new experience offers a much needed simplification. After all, almost six years following its debut, one of the most common searches for “how do you use…” on Google, is still…Twitter. With over 200 million Tweets soaring across Twitter everyday, the service is now aspiring to become something your father or mother or even your “sister” can easily understand and use.

Unveiled through a tagline of “let’s fly,” the new, new Twitter centers around five distinct tabs, Home, Connect, Discover, Me, and Tweet. Each tab presents a dedicated page that presents a snapshot of important features tied to particular actions or interests.

Home: One of the most notable improvements is in the intuitiveness of the design. The format is also now consistent. What you see on Twitter.com for example is the same as the Twitter app on smartphones and Tablets.I should also mention that TweetDeck be viewed as a TwitterPro version and is also now available on the Web.

Now, you have access to what you need in a simple and functional layout.On the “Home” page, you will find your social stream of course in addition to trends, recommended people, DMs, etc.

@Connect: The Connect tab is where you can see who’s talking about you as well as who’s interacting with you or your Tweets. The tab offers two views, “Interactions” and “Mentions.” Under Interactions, you can view conversations and Retweets, who’s now following you, who favorited your Tweets, who added you to a list, and other activities related to you. Mentions is just that…Tweets mentioning your @ name.

#Discover: As Twitter so appropriately states, the Discover tab is where simplicity meets serendipity. I love that…it’s very true and also it is serendipity that makes the egosystem so personal, exciting and valuable at once. In the egosystem, everything literally revolves around you. Your experience on Twitter is defined by who you follow, who they follow, trends based on relationships, and the interactions you have as a result. These interactions are unique to you and that is true for each of us. What you see is not what I see and that keeps things exciting. The new Twitter framework ensures that discovery and also serendipity remains personal.

Get Embed with Twitter

Before we move on, I’d like to call attention to one additional update to the Twitter experience. With the new Twitter framework, certain elements become portable to websites, blogs and other web platforms. To begin, Twitter is now making Tweets officially embeddable. As you know, there’s more to any Tweet than 140 or less characters. There are experiences, conversations, and expressions behind each. Not only will visitors see the Tweet wherever it may be embedded, Tweets become living pieces of interactive media wherever they’re placed.

Yes, embedded Tweets are portable and fully functional. Visitors can Reply, Retweet, Favorite or Follow without leaving your page, simply by clicking the respective trigger on the Tweet itself.

Twitter also improved its Tweet and Follow buttons. The new #hashtag button tells visitors that there is a relevant conversation taking place on Twitter and allows them to follow or join in with just one click. The @mention button gives people a shortcut to easily Tweet you and any desired account.

Go here to design your custom Twitter buttons.

Brand Pages

If you’ve ever clicked on a Promoted Tweet, you were either sent to a custom landing page, a traditional website, or perhaps a Facebook brand page. With Twitter’s new brand pages, it hopes businesses will design Twitter experiences that keep you in Twitter. It also hopes to increase the value of its Promoted products overall by giving brands more control in how they market themselves to consumers.

Twitter’s Chief Revenue Officer Adam Bain recently shared that in his meetings with CMOs over the past year, the most recurring requests focused specifically on brandable pages. Like its bigger social siblings Google+ and Facebook, Twitter’s brand pages have officially taken flight. Enhanced profile pages as Twitter refers to them, give marketers the ability to shape the impressions of visitors while adhering to the brand style guide. Previously, businesses were confined to creative backgrounds and bios as well as their Tweets to define the brand experience. Now Twitter gives brands more control in how consumers view the company in Twitter…free of charge. And, Twitter removes outside advertising from each brand page.

For examples and perhaps to glean insights into best practices, Twitter launched with 21 advertising partners. You can view their enhanced profile pages by clicking each brand: @AmericanExpress, @BestBuy, @bing, @chevrolet, @CocaCola, @Dell, @DisneyPixar, @generalelectric, @Heineken, @HP, @intel, @JetBlue, @Kia, @McDonalds, @nikebasketball, @NYSE_Euronext, Paramount Pictures’ Mission: Impossible – @GhostProtocol, @pepsi, @Staples, @subwayfreshbuzz, and @VerizonWireless.

What does this mean for businesses specifically?

1. Businesses can host a branded experience for consumers in Twitter without forcing them outside of their preferred network

2. Brands can adhere to brand style guides to present a uniform color, typeface, presence, etc.

3. Guide the consumer experience with intentionally presented Tweets, media, and information.

4. Chart a new click path that starts with a Promoted Tweet and/or media to lead consumers on a more meaningful journey that can start and end in Twitter or continue outside of the information network. Much in the same way Facebook offers landing tabs, Twitter can offer a similar experience that changes based on the priorities of the brand.

5. Allow brands to present a more engageable profile where people follow companies because of the thoughtfulness that is invested in presentation and a meaningful Tweet stream. Brands are now measured not only by their actions, but also their words and content.

It’s now your turn. Are you ready to take flight on the new, new Twitter?

Connect with Brian Solis on Twitter | LinkedIn | Facebook | Google+

The End of Business as Usual: Rewire the way you work to succeed in the consumer revolution

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ENGAGE!: The complete guide for businesses to build and measure success on the social web

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The following report is brought to you by the Pivot Conference taking place in New York on October 15-16, 2012. You can download a full copy of the report for free by clicking here.

At the end of 2011, Social marketing stands at a profound crossroads. Some organizations are finally embracing the importance of social networks and, as a result, increasing investments in creative engagement, marketing, and service programs. Others see the future value, but lag behind in execution. At the vanguard, Social Businesses drive a virtuous cycle of discovery: Their successes in Social marketing lead to new data, which lead to insights, which lead to new and more effective programs as well as the business systems and processes necessary to improve internal and external collaboration.

In 2012, social media marketing, driven by these innovations, will only continue to mature. Bottom-up learning about what really works in Social will be essential for this expansion. Research conducted by IBM in 2011, for instance, revealed a gap between consumer expectations toward the businesses they support in social media, and executive assumptions about what these consumers wanted. This “Perception Gap,” as defined by the IBM study, demonstrates the importance of bottoms-up, informed social marketing programs, as opposed to the traditional top-down strategies tied to the usual monologue-marketing channels.

Not all customers are created equal. So, businesses are learning that there must be more than one approach to reaching and engaging customers through the emerging Social channels.

This year, at the second annual Pivot Conference, we explored the evolving landscape for consumerism as colored by the emergence of Social Consumers. Brands, agencies, academics and thinkers examined how Social Consumers find and share information, how they influence and are influenced by engagement, and also how they make decisions. In the end, it was clear that the Social Consumer is fundamentally unlike a traditional consumer and, as such, compels brands to rethink sales, service, and marketing strategies across social, broadcast, and mobile networks. At stake is a business’ relevance to the Social Construct, which is the new key to consumer connection and success. For brands today, if you don’t establish this connection, Social Consumers will just connect themselves and collaborate without you.

To help brands more effectively plan for improving customer engagement and experiences in 2012 and beyond, the Pivot team, along with The Hudson Group, surveyed 181 brand managers, agency professionals, and experts. Their answers paint a picture for how businesses intend to reach their Social Consumers. Additionally, the results serve as a benchmark as you, the Social Business leader, assemble your strategies over the next year.

The Rise of the Social Consumer

Who is this Social Consumer and how does he or she differ from traditional counterparts? Let’s start with a working definition. A Social Consumer is someone who first goes to their social networks of relevance to learn about products and services. Though somewhat influenced by their overall social graphs, Social Consumers emphasize the input of those who define their interest graph – like-minded individuals on any given subject who share common interests and experiences with them. In this way, Social Consumers evaluate the shared experiences of those they trust, and expect businesses to respond to their socialized questions. As a consequence, Social Consumers don’t follow a linear approach through the classic ‘interest to intent’ funnel during their decision making process. Rather, they follow an elliptical pattern where their next steps are inspired by the insights of others, and their experiences are, in turn, fed back into the cycle to inform the decisions of others.

Reprinted from The End of Business as Usual, Chapter 14

In the Pivot study, we asked if participants had a clear picture of who their Social Consumer is. An astounding 77 percent said yes.

Comparing these results to the working definition presented above, which survey participants did not review in advance, as well as the Perception Gap produced by IBM, I wonder how these numbers would change if the question was asked now. Given the results noted below, it appears that respondents believe they know who their Social Consumers are, even though they may not have actually engaged them in a detailed conversation.

When the Pivot team explored specifically if respondent organizations asked Social Consumers what they expect from engagement, most responded, “No.” This is intriguing because we have 77 percent of organizations who say they know what their Social Consumers want, but 53 percent haven’t really asked. They do not—cannot—really know how to deliver value in social and mobile networks, thus pointing to IBM’s Perception Gap. On the other hand, 35 percent did note that they asked Social Consumers about their expectations. Our belief is that these organizations will most likely outperform organizations that did not ask.

Businesses shared their perspectives on the benefits and customer expectations of social engagement in their responses to the survey. The results cover a wide spectrum of sales, service, and marketing benefits, with customer service, insight to make decisions, and the ability to learn about new products as the top three entries. Deals and rewards came in fourth and fifth respectively. Each of the benefits is important, however. Offering exclusive content, the ability to provide feedback for improvement and social commerce add to the complexity of reaching and engaging the varying needs of social consumers. We think marketers should look here at the whole tapestry, more than the individual strands.

When asked about the gender of the Social Consumer, respondents believe their Social Consumers are equally divided between male and female. This is result is intriguing for many reasons, not least of which is the findings in previous studies that females skew higher across popular social networks such as Facebook and Twitter, as well as for most social commerce services. Are we seeing the emergence of more men in social networks? Perhaps.

As we continue to examine the demographic makeup of Social Consumers, this study indicates they tend to be most commonly in their 30s and 40s. But there are strong showings of Social Consumers distributed across those 26-30, 46-50 and also 51-55. Clearly, social is no longer the province of just the young.

The household incomes of Social Consumers are scattered across the board. But in aggregate, it appears that Social Consumers lean toward desirable income levels. Median income from the study results is just over $60,000.

When asked which networks are frequented by their Social Consumers, participants stated that Facebook, Twitter and LinkedIn were numbers one, two and three respectively. Facebook and Twitter are viewed as essentially ubiquitous. At the time of this survey, Google+ hadn’t yet opened up brand pages, but as of November 2011, businesses can develop official brand presences. Yet, even without the ability to do so during the survey process, businesses recognized the important role Google+ plays in the lives of their Social Consumers

When it comes to Social Consumers’ increasingly common mobile activity, Facebook and Twitter still maintain the top two spots. Foursquare, though, jumps into the third position ahead of LinkedIn, an indication that geo-location networks continue to rise in popularity.

Pleased To Meet You, I Hope You Get My Game

Gamification is becoming part of social networking, education, and loyalty programs due to its attractiveness to the Social Consumer.

Zynga is currently the overwhelming leader in capturing the time and attention of Social Consumers when it comes to gaming, probably a reflection of Facebook’s current dominance. Intriguing here is that the second most common response is “other,” a sign of the diversity in this arena.

Social professionals don’t see a clearly dominant player amount the many current portable photo networks available for popular smartphone platforms. No option received even 25 percent of the responses. However, Hipstamatic is firmly positioned at the top of the list with almost double the usage of Dailybooth, which currently sits at number two, according to respondents. They seem to be leading a rather open field.

In the world of social and group-based deals, Groupon ranks number one among Social Consumers, but LivingSocial maintains a strong foothold in the number two spot. Facebook Deals was in third, but the service has since been discontinued by Facebook.

“After testing Deals for four months, we’ve decided to end our Deals product in the coming weeks,” Facebook told Reuters in a statement published in August 2011, during the time the survey was already in the field.

Engagement is not defined by conversations. Engagement is the act of a consumer and an organization or brand interacting within the consumer’s network of relevance through a combination of conversations, content, or related information. Engagement, and here’s the important part, is then measured by the takeaway value, sentiment, and resulting actions following the interaction.

Brands largely disagree with the belief that conversations in social networks alone drive meaningful business outcomes. The true test, of course, is whether or not outcomes are defined and if they are introduced into engagement as a desired click path. On the flip side of the coin, brands either completely or mostly agree that conversations help with brand lift and relevance responding with 51 percent and 45.5 percent respectively.

There’s notable difference, however, in whether or not brands think their Social Consumers want something of tangible value in exchange for a social connection. 21.6 and 45 percent completely or mostly agree. 27 percent and 6 percent mostly and completely disagree. Our advice: When in doubt, ask.

With all of the fanfare around social media, it would be easy for those living within the new marketing paradigm to assume that social media already was or soon will be mainstream within the organization heading into 2012. However, respondents were divided in their outlook. Just over half believed that social marketing is already mainstream within their organizations and just under half think that social marketing will still be experimental a year from now. This shows where we are in the social revolution: the reality of change is broadly accepted, but norms about fundamental issues still remain elusive. We know we are going to a new place, we just aren’t yet sure exactly where and how fast.

When asked what was preventing the organization from moving beyond experimentation in social marketing, respondents’ reasons were widely distributed. Budget was seen as a challenge, as was the inability to define or measure clear outcomes. We feel that, whatever your personal sense, each of these points is worthy of exploration and definition within the organization. This is the only way to ensure that the needs of Social Consumers do not go unmet. A working strategy and understandable benefits are critical to rallying support across the organization, especially among executives. Defined metrics tied to thoughtful strategies demonstrate progress. Listening combined with research will reveal the need for a cross-functional approach as data always spotlights the varying needs of Social Consumers – beyond marketing.

Confusion reigns today, but conviction lies on the horizon. 2013 is the year a solid set of respondents sees social marketing finally breaking beyond experimentation within the organization. Still, we can see the current uncertainty about the development of social: 15 percent look to 2014 as likely year for corporate breakthrough, another 15 percent see 2015 or later, and a sobering 35 percent still don’t know what to think.

While respondents see social marketing as crossing into the organizational mainstream relatively soon, an overwhelming 89 percent of participants see social marketing as a permanent series of experiments. The takeaway here is that professionals, for the foreseeable future, feel that there is much to learn with regard to the Social Consumer and how to effectively engage and steer positive experiences and outcomes for social marketers. As one area of social moves into the mainstream, it will just open up new areas for experimentation.

The trend in social media budgets is positive. The percentage of respondent companies spending less than 5 percent of budget on social drops by about half between 2011 and 2013 and the percentage spending over 50 percent more than doubles. The sweet spot hovers around 25 percent of budget, rising slightly over the next two years. All this indicates to us is that it remains early days in the development of social in organizations.

Looking ahead to 2012, brands are thinking through goals as they plan next year’s social marketing programs. At the top of the list, at almost 100 percent, is the need to increase sales, which is a reflection of the need for marketers to demonstrate tangible ROI. Consumer engagement, lead generation and brand lift are also atop the list. Among the notable responses from participants, influencing consumer behavior is at just over 60 percent, establishing points of influence at just under 60 percent, and discovering points of relevance shown at 40 percent spotlight how new touchpoints will play a role in driving desirable outcomes and experiences. The overall sense of the responses is a tilt away from “soft” benefits toward harder edged benefits that drive the bottom line.

Surprisingly, improving customer service and support was toward the bottom of the list, but it is promising to see that the research does show that businesses are placing it in the upper half of 2012 planning. We see customer service as one of the potential breakthrough areas for social networks.

Make the Pivot

Here’s the important takeaway: To successfully reach the Social Consumer and ensure that social media extends across the organization, look at this list as a series of steps rather than a hierarchical rank. Thinking through each item will force a more thoughtful approach to reaching Social Consumers and guiding positive experiences and outcomes. Budgets and support are the net benefits of following these action items.

1. Increase understanding of the benefits of the Social Construct within your organization.
2. Develop a clear strategy for social.
3. Define outcomes.
4. Tie strategies and supporting metrics to business objectives.
5. Earn executive buy-in with data, demonstrate the needs of Social Consumers, and show how others are successfully engaging them today.
6. Earn support across departmental functions by showcasing how the varying needs of the Social Consumer are unmet by key roles in the organization.

As you review these data and compare them to your 2012 plans, or if you’re in the planning stages now, remember that benchmarking against peers is only one part of the process. The real opportunity lies among your Social Consumers by identifying their needs, and benchmarking them against your solutions for them and thus your business opportunity.

Connect with me: Twitter | LinkedIn | Facebook | Google+

Order The End of Business as Usual today…

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Jon Swartz is a veteran journalist who has covered Silicon Valley’s highs and lows over the years. As Swartz says, he’s seen it all and along the way, he’s chronicled not only the events but its impact on business, culture, and society. Jon joins us on (R)evolution to discuss disruptive technology, what it means and what’s next.

Please take a moment to watch and let us know your thoughts…

Season 2 – Episode 12

Image Credit: Thomas Hawk

Season Two:

S2E1: How Mercedes Benz Successfully Uses Social Media to Engage
S2E2: Technorati’s Richard Jalichandra on the State and Future of Social Media
S2E3: Guy Kawasaki on the Art of Enchantment
S2E4: Adly CEO Arnie Gullov-Singh on the Social Era of Celebrity Endorsements
S2E5: Filmmaker and Webby Awards Founder Tiffany Shlain
S2E6: Jim Louderback, Revision3 CEO on the Future of Broadcast and Web Television – Part 1 of 2
S2E7: Jim Louderback, Revision3 CEO on the Future of Broadcast and Web Television – Part 2 of 2
S2E8: Marcel LeBrun of Salesforce Radian6 on the Future of Social Media Monitoring
S2E9: Our Digital Society in the Next 30 Years: An Interview with John Battelle
S2E10: How Social Customer Service is Changing the Culture at Comcast
S2E11: Dunkin’ Donuts Uses Social Media to Improve Customer Relationships and Experiences

Watch Season One on YouTube

Now on iTunes!

Part 13 in a series introducing my new book, The End of Business as Usual…this series serves as the book’s prequel.

These days, customer service seems to be a contradiction of words and intentions. Year after year, customers are appealing for attention, efficiency and a communicated sense of being appreciated. After all, what is the value of customer acquisition if retention itself isn’t valued? Now with social networks becoming the preferred channel of communication among connected consumers, businesses are losing ground and faith. The reality is that customers will share their experiences whether positive or negative and they will influence the decisions of others. The question is, how are you changing your service model to shape and steer experiences that deliver value to customers and also back to your business?

Social networks are emotional landscapes that are populated by human beings, not consumers. It is for this reason that many existing customer service approaches to social networks are the equivalent of the tips of icebergs we see above water. The real opportunity lies underneath the waterline and as you can imagine, it is beyond formidable. As part of this special series, my good friend Frank Eliason decried that social media customer service is a failure! He surely startled everyone including those who are championing change from within. To explain, I’ll provide a bit of context to his position. In order to do so however, we’ll need to peel back an additional layer to demonstrate where customer service and social media are missing confluence. I refer to this phenomenon as the horseshoe effect.

On either end, social media and customer service are either established or developing within the organization. While each exist, they do not naturally co-exist in regards to process, systems, vision, or collaborative workstreams. Allow me to clarify. Today, social media is mostly owned by one of three functions within businesses today, 1) marketing, 2) marketing communications, or 3) public relations. Social media essentially exists within its own silo and is largely disconnected from other divisions.

When a customer tweets at the company with a problem, the social media team is either unqualified to respond or chooses only to focus on those interactions that correspond with their focus or the company’s marketing efforts. Either way, the customer doesn’t see, nor do they care about, who owns social media. They see one company and they simply need an informed and empathetic response. Even when a company has a service team dedicated to social media, it is often a progressive front with a traditional infrastructure – or perhaps said another way, making something appear better than it is. When a customer is engaged, they’re often prompted to take the interaction offline, say through email or phone with a specialized representative, or they’re simply referred to a particular web address, phone number, or email address to start the process from the beginning through existing, less preferred channels.

With social media on one side and customer service on the other, a gap emerges where the social customer is left to fend for themselves. Businesses must look at creating a holistic experience where customer service extends to social media, providing engagement and resolution at the time and place of the social expression.

Case in point, Niklas Femerstrand is a web developer who discovered a security gap in a particular web page owned by American Express. Long story short, the security hole left an administration panel for Web site debugging wide open for anyone to access and provided a potential avenue for attackers to target AMEX customers. Rather than exploit the gateway, he alerted AMEX via the channel he relies on for personal and professional communication…Twitter. What happens next only demonstrates the horseshoe effect and why closing the gap sooner than later will benefit customers and the company alike.

In his own words, Femerstrand expresses his disbelief when he could not get through to the company on a network where it maintains multiple presences,  “When somebody voluntarily contacts a company and repeatedly mentions words like ‘security vulnerability’ and ‘hacker’ one would think the company would act as quickly as possible.”

If you follow the exchange below, you’ll see that Femerstrand made an honest to goodness attempt to reach what he deemed to be the most direct channel to the company, @AskAmex. Please do take a moment to read each line item so that you can both see and feel his frustration and also visualize the horseshoe effect that separated social media from customer service.

As you can see, the exchange is priceless. Poor ^Courtney…

Femerstrand was clear. He didn’t want to be referred to a traditional service backend.  While Courtney was staffing the shift for @AskAmex, she was obviously not trained to handle such a situation and therefore demonstrated the horseshoe effect perfectly. So what is Femerstrand left to do when he was insistent that he wanted to help the company, but did not have time or patience to go through a “technical support jungle?” He blogged not only about the experience, but he also exposed the code and tipped security publications everywhere.

What’s the ROI of a Good Customer Experience

In his post about the failure of social customer service, Frank Eliason also notes that part of the problem has to do with how customer service is measured or valued within the organization today. Traditional metrics that are deeply rooted within the call center today are used as a baseline for an entirely new paradigm. Fortunately or unfortunately, the connected customer defines the rules of engagement and based on the interaction, will in turn share their experience whether it’s positive or negative.

As Eliason explains…

This brings me to the failure of social service. The other day someone tweeted me asking about current costs of phone calls versus the cost per Tweet for customer service. Ugh! This is new media and yet we’re already focusing on old metrics. The truth is that the service world has been broken for years because of the emphasis of handle time or calls per hour. Companies do not want to talk to you, and it shows. The fact is most do not want to Tweet with you either. Since they are worried about brand sentiment, they may appease you to shut you up. Sorry, shutting your customer up is not customer service and trying to expedite resolution isn’t a metric for the new world of consumer influence.

The time is now for new metrics. And by new metrics, I’m not referring to those that simply measure time to resolution, cost per tweets, wait times or Tweet reduction. The opportunity for increased engagement is the real opportunity for customer service. This isn’t about getting away from the customer or simply about solving problems. This is about creating exceptional and shareable experiences! Customer service can contribute to engagement, advocacy, loyalty, and what I call NPS 2.0 aka SPS (Social Promoter Score). It’s not the traditional NPS of whether or not someone would refer a product or company. In social media, we can see if someone actually did and compare that to those who are clearly public detractors. We can also view those detractors that recommend against a purchase.

Additionally, the new doors that are opening to customer service and customer engagement don’t simply have to be relegated to negative experiences. For example, I recently flew United Airlines and I was fortunate enough to have an exceptional experience on a flight from New York to San Francisco. I was so elated with the wonderful customer focus of one flight attendant in particular, that I decided to share it with @United.

I wasn’t surprised when the response was the equivalent of digital crickets. But, I had high hopes for some form of acknowledgement. And even though I know I was daydreaming, I would love to have seen the semblance of a system where that feedback would get back to both Meg Callan and her manager. All too often, social customer service focuses on optimizing the systems and strategies to contend with experiences when they negatively impact social streams. But I believe that if businesses can provide mechanisms where customers, employees, and positive experiences are rewarded, more people will become willful advocates than detractors.

If you’re unclear where to begin, then simply ask. When Google+ was new on the scene, prior to the release of its official brand pages, several companies such as Dell and Ford asked customers how they can use the new network to engage more effectively with customers. In one such case, Michael Dell personally asked followers on his profile if they would like to connect with Dell service via video directly on Hangouts.

The response, to say the least, was phenomenal. Customers were elated that Michael Dell would ask people what they want while also demonstrating how an organization could use new tools to improve customer experiences. The result is support, loyalty, and advocacy. Additionally, the result of one simple post resulted in an array of influential press. I guess that says everything about that state of customer service. If businesses ask how to better help customers and press breaks out as a result, well…at least we’re on the right track.

Closing the social customer horseshoe to create a complete circle is the equivalent of a holistic experience. Fixing customer service is not the goal here. Improving customer service and delivering an integrated experience will not only help customers feel valued, but also establish a competitive advantage. In the end, businesses that invest in customer retention and acquisition to deliver positive experiences, regardless of platform, will strengthen relationships and loyalty and additionally contribute to organic advocacy.

#AdaptorDie!

Order The End of Business as Usual today…

Part 1 – Digital Darwinism, Who’s Next
Part 2 – Social Media’s Impending Flood of Customer Unlikes and Unfollows
Part 3 – Social Media Customer Service is a Failure!
Part 4 – I think we need some time apart, it’s not me, it’s you
Part 5 – We are the 5th P: People
Part 6 – The State of Social Media 2011: Social is the new normal
Part 7 – I like you, but not in that way
Part 8 – Are You Building a Social Brand or a Social Business?
Part 9 – CMO’s are at the Crossroads of Customer Transactions and Engagement
Part 10 – From Social Commerce to Syndicated Commerce
Part 11 – You can’t go back to create a new beginning, but you can begin to change the ending
Part 12 – How to Make Customer Service Matter Again Part 1

One of the most often asked questions about The End of Business as Usual is how it’s different than Engage.

I thought I take a moment to answer it here just in case you were wondering the same thing.

Engage was and is special. In fact, I felt the mission and content of the book was so special, that I wrote it twice. I viewed both versions as my chance to not only document the transformation in marketing and service because of social media, but also empower people to lead change from within. I didn’t expect people to wait for direction. I expected them to lead. Engage helped readers design social media marketing and service strategies and programs that mattered…that worked…that performed against business objectives.

Over the years, I observed their struggles as well as recording my own challenges within the enterprise, governments, and small businesses alike. I realized that the gap that exists between social media and executive leadership is far too great for social marketing or service to solve. And, to be honest, social media isn’t going to save businesses, but instead, it will contribute to relevance. The real opportunity for the transformation of business lies in the evolution of customer behavior and how technology, social networks, smartphones, RFID, and other disruptive innovations empower people AND organizations alike.

The End of Business as Usual makes the case that the need for business transformation is bigger than social media and more important than just connecting or communicating with customers in social networks. For executives to realize the opportunity for innovation and leadership, they need your help in making sense of the differences between traditional and connected customers. They need to know that this emergent consumer category affects business objectives, priorities, and financial goals.

The book examines how leading companies are finding success with connected customers. The lessons, case studies, and best practices contained within will help readers earn the support of organizational leaders by identifying growth opportunities and prioritizing where to invest time and resources. The end result is creating an adaptive foundation for businesses to not only build relationships with connected customers, but improve customer and employee relationships overall.

Adapt or Die!

Order The End of Business as Usual today…