Buzz Builder

Word of Mouth Not Advertising Is the Best Marketing for Verizon's Mobile Services

Last year, when I bought an iPhone 4S, I had to wade through the confusing marketing claims of Verizon, AT&T, and Sprint to choose a carrier. I went with Verizon because my friends with Verizon seemed pleased with their service and didn't have a problem with dropped calls. In contrast, my friends with AT&T had very little good to say about it. One friend in the San Francisco Bay Area even told me, "I love my iPhone except the phone part since almost half my calls are dropped midway through converations."

Unfortuantely, none of the mobile phone carriers do an effective job marketing the features and benefits that they offer. In fact, Verizon is particularly ineffective in its advertisements as this funny Saturday Night Live spoof illustrates (a 15-second commercial precedes the skit):

How Scott Avery Is Using Social Media to Grow His Hardwood Floor Refinishing and Installation Business and His Content Marketing and Consulting Company

The in-home services sector has been slower to embrace social media than many other industries. However, this interview clearly demonstrates that social media offers tremendous advantages for companies in this niche.

Patrick Galvin (PG): What do you do for a living?

Scott Avery (SA): My primary business is Modern Tech Floors, a hardwood floor refinishing and installation company in Portland, Oregon. The success of the marketing practices I’ve used to grow the business has spawned Momentum Agents which is our content marketing and consulting company for service trades.

PG: How are you using social media to build your businesses?

SA: We started engaging in social media activities in early 2009 and maintain a presence on LinkedIn, Facebook, and Twitter.

I’ve used LinkedIn primarily to ask for warm introductions. I’ve not invested much time yet in the other arena of answering questions in my area of expertise on LinkedIn.

Our primary marketing focus is blogging which allows us to educate our prospects and customers and it pays huge dividends in establishing our expertise. The amount of content in our blog has positioned our wood floor business at the top of organic search rankings. I would advise anyone interested in drawing in clients who like to research prior to purchasing to focus first on blogging.

An overlooked area in social media for some businesses is also Flickr because we have seen queries about our projects originate from there.

PG: Which social media platform(s) do you find most useful?

SA: Blogging is where I cast my vote for effectiveness. Because a large part of winning in the game of SEO is the number of indexed pages matching a particular keyword or phrase, blogging allows you to outpace the market for ranking if you just keep adding good, keyword-rich content. In addition, blogging provides a real window into the mind of the writer and establishes credibility. It also provides a great forum to engage your prospects and customers in a valuable Q&A format.

PG: Does social media give you a competitive edge?

SA: In this tough economy, I’ve found that consumers are still spending but are cautious and want to ensure that they are getting good value and dealing with reputable businesses. Consumers believe that companies that maintain a regular social media presence are more likely to care about their reputations than businesses that haven’t embraced the digital world. I’m no longer surprised to hear customers tell me that they have checked out our Facebook fan page in addition to our website when they evaluate our services.

PG: What general advice would you give to a small business owner who hasn't embraced social media?

SA: The hardest part of engaging in social media is starting which isn’t that difficult. Investing the effort in producing a well-written blog will build customer confidence. Furthermore, once a blog is well populated and produces leads, the content is valuable intellectual property and can add tremendous value when determining the sale price of a business. As for specific content advice, I strongly suggest that new business owners mix up the type of blog posts using video, audio, or written content to make things more interesting.

PG: What would do differently with social media knowing what you've learned through experience?

SA: I simply would have started sooner. A well-executed social media strategy has been the equivalent of adding a goose that lays golden eggs to our payroll.

How Travel Agent Laurie Landers of Cruising.com Is Using Social Media to Build Her Business

When it comes to travel agents, Mark Twain's famous quote is particularly appropriate: "The reports of my death have been greatly exaggerated." While many have written off travel agents since so many people plan their own trips online, Laurie Landers is a great example of how savvy travel agents can use the Internet in general and social media in particular to be relevant, valuable, and successful.

Patrick Galvin (PG): How would you describe your job?

Laurie Landers (LL): I’m a travel agent with an online company (Cruisingco.com and its division MouseEarVacations.com). I help people plan and book their dream vacations. My services don’t cost clients anything.

PG:  Then, how are you paid?

LL: When the travel industry began, people had to book through a travel agency to which suppliers (airlines, hotels, cruise ship companies, etc.) would pay commissions. Although the commission percentages have decreased, this practice still exists. In other words, no matter how travel is booked there is usually a small amount set aside for a travel agent.  If you call the Marriott and book directly, for example, you’ll pay the same price that you would get through me—but in this case the Marriott keeps the commission.

PG: Do you work full or part time? 

LL: I work full time plus - about 60 hours a week.

PG: Have you been in the travel industry a long time?

I have been with my current company for one-and-a-half years.  I used to work for Southwest Airlines but left to start a family and become a stay at home mom.  When my kids got older and went to school, I returned to the travel business. 

I’ve always loved to travel. I received a BA in International Business with a minor in Japanese from Linfield College. I was lucky to have had the chance to live and travel in Japan for about six months. Also, when I was in college, I would organize spring break vacations for fellow classmates and really enjoyed putting these trips together.

PG: Why do people use your services instead of booking directly through travel websites?

LL: Many people are overwhelmed with choices when trying to plan their vacations online. They choose me to help narrow down the possibilities based on their likes, dislikes, and financial resources.  In other words, I’m a personal travel shopper. Instead of feeling overwhelmed and confused, my clients feel confident and relaxed when they depart knowing that I’ve gotten them the best possible deal and taken care of all the details.

PG: When did you start using social media? 

LL: I was slow to embrace social media. I started using it for business purposes in March 2011 but now I’m hooked.

PG: How is social media important to your business?

LL:  I mainly use Facebook and Twitter to post vacation promotions or other items that I feel my clients and prospects would find interesting. It’s amazing how many people see these posts and forward them to friends or co-workers. Although I have just 189 Facebook “likes” and a handful of Twitter followers, I receive reports showing that nearly 700 unique visitors are checking me out through social media every month and many have booked trips with me.

I keep trying new things in social media as well. For example, I’ve just started using LinkedIn to connect with my clients.  I’m also on Google+ - actually I was a beta tester before it launched publicly. I can imagine that someday it might be more important than Facebook given its cool features and the popularity of Google. I haven’t yet started blogging. But I write articles for our company and these are published regularly in the weekly newsletter that we send to clients. I’m also active on several online Disney forums which helps people get to know me while increasing awareness of my travel expertise.

PG: Which social media platform is most useful for growing your business?

LL: So far, I’ve found Facebook to be the most useful. I like how it allows me to “talk” to my audience through short conversations that generate interaction and awareness.  I appreciate how Facebook posts are easy to share with others.  Also, I like how simple Facebook makes it to share links.  When I find articles my clients will enjoy, I use Facebook to share them quickly and easily. And, last but certainly not least, since more users are on Facebook than any other platform, that’s where I spend the bulk of my social media time.

PG: How does social media give you a competitive edge?

LL: It helps me deepen connections with clients and prospects.  Through social media, I’m able to boost my visibility and credibility as a travel agent since I use it to share interesting travel information and respond quickly to clients. Also, friends and clients recommend my social media sites to people they know creating a continuous stream of qualified new prospects.

PG: What advice would you give to peers in the travel industry on whether or not they should use social media? 

LL: If they’re willing to commit to social media, it can be extremely useful. But they have to stay current with what’s happening, such as supplier promotions, and know what they want to sell and promote. There are too many travel agents who have experimented with social media and haven’t been able to keep up. Then, when their social media efforts fail to generate business, they give up. It certainly takes time to have a strong social media presence but the results I’ve gotten have convinced me that it’s time well spent, and I’m sure that other travel agents could enjoy similar good results.

How Brewer Dan Del Grande Is Using Social Media to Build Bison Brewing Company's Brand and Sales

I’m very grateful to Dan Del Grande, the owner and brewer of Bison Brewing Company in Berkeley, CA, since he took a leap of faith and became my company’s first client in 2002. Over the past few years, I’ve admired the creative ways that Dan has used social media to promote his company and products. Recently, I chatted with Dan about his social media usage and his answers provide valuable insight for any business owner looking to grow brand awareness and sales without advertising. Here’s the transcript of my conversation with Dan:

Patrick Galvin (PG): How long has Bison been on Twitter and Facebook?

Dan Del Grande (DDG): I've been on Twitter and Facebook since June 2009 and only got started because "I should" do it for my business (maybe like many of your readers).  I didn't really understand it.  Boy, was I impressed at the power of social media.  After three or four months, I was able to use the tools easily, and hopefully with focused business purpose, to engage people and build my brand.  I see social media is an accelerant for my brand and one of the main ways I generate word of mouth marketing. 

PG: I hear that Bison gained a lot of traction promoting #IPADay on Twitter. Please tell us about #IPADay and how it helped Bison.

DDG: Last month, Bison Brewing started a movement. We partnered with a few select craft breweries and social media sites around the world to launch the 1st annual International #IPADay. Our goal was to create a grassroots movement uniting the voices of craft beer enthusiasts, bloggers, and brewers worldwide, using social media as the common arena for connecting the conversation. It worked.

On August 4, craft beer drinkers from a dozen countries across the globe raised pints in a collective toast.  On August 4 alone, over 15,000 discreet tweets were recorded, and several hundred blog posts and online tasting notes were posted. We can't count the hundreds of craft beer bars, breweries and beer fans who organized and hosted “real life” #IPADay events, parties and tastings all over the world. Bison Brewing hosted two extremely successful events. At BoPGy G’s Pizza in Berkeley, CA, IPAs from five local breweries took over the taps and patrons enjoyed pint specials and camaraderie celebrating IPA. At the Napa Marriott, over 200 people enjoyed a sunny patio sipping IPAs from eight different local craft breweries, and raising over $1500 donated to V.O.I.C.E.S. Napa, a local non-profit committed to empowering under-served youth.

PG: Is the success of #IPADay inspiring any new social media efforts?

DDG: #STOUTDay is November 3 to build on a solid franchise for social media events and word of mouth marketing.

We are also planning fun, live beer-tasting events on a Big Red Bus where we invite good customers and supporters from Twitter and Facebook for a real world brand experience. Hopefully, the real world experience will live on in cyberspace as people tweet and reminisce about it in social media circles.

PG: What are other business benefits has Bison derived from being on Twitter and Facebook?

DDG: If "business benefits" is defined as "increased sales," the jury is still out on the absolute return on investment, but we are breaking even at least. I can say with certainty that we’ve gained several new points of distribution and tens of thousands of dollars of "new" top line sales, mostly with two new beer distributors, but also a couple dozen grocery stores and restaurants. We are looking more and more at Twitter as a consumer pull strategy. If you consider "business benefits" to be defined as "increased brand impressions," this is well underway but I'm uncertain how to measure it.

PG: Are the audiences and your intentions for Twitter and Facebook different?

DDG: Yes. My social media strategy is creating and sharing dynamic content. My Twitter audience seems to be 50% consumer and 50% opinion makers.  Facebook seems to be 100% consumer. You need to adjust the content accordingly.

My Facebook personal profile (Daniel Del Grande) and my Facebook Fan Page (Bison Organic Beer) are only about two things: (1) Bison news, recipes, events, and (2) sustainable lifestyle advocacy. I avoid personal things on Facebook, unless somebody posts a picture of me with family, which I usually delete or untag.

I try not to narrowcast my tweets. Anything goes. My tweets are about craft beer events, my beers, sustainability, and the fun "slice of life" of being a brewmaster, or my observations about life. I probably do about 1/3 consumer tweets, 1/3 sustainability tweets, and 1/3 "Dan is having too much fun" tweeting. I think I have finally found the balance between not sharing enough and sharing too much.

PG: What “secrets for success” do you have for a small business just getting started with social media?

DDG: We advertise by hand, like we brew by hand. I find that if you are genuine, there is a lot of camaraderie in the social media community. About 100 people I talk to on twitter I have also found interesting enough to meet when I’ve visted their hometowns.

There are lots of self-proclaimed experts out there and that can be intimidating. If you need some guidance, read the informative articles on www.mashable.com. You can do it! To get started, don't hire somebody to do it. Do it yourself. If you hire somebody, you will spend more time instructing the hired gun, checking the hired gun, and wishing the hired gun said it a different way. It’s pretty easy once you get started.

Get started with 1/2 hour a day and explore a little each day. Whatever voice you find, it has to be genuine and interesting--you don't need a pre-thought out strategy. Spend time reading commenting on other people's blogs that you find interesting and relevant to your business or brand, and tweet or share the blog on Facebook. Follow people that you think are interesting. They will probably follow you back unless they are a rock star.

Once you have a firm understanding and direction, and have established a voice (and this might take 6 or more months), you can give the daily responsibility to somebody in your organization that you trust to carry the torch. But stay involved, read what is going on, and tweet and post on Facebook at least one 1/2 hour session per week.

PG: What should a small business avoid doing in social media?

DDG: 1. Controversy. It is hard to win an argument in 140 characters. 2. Religion/Sex/Politics. You will surely offend somebody.

PG: What should the balance be between product promotion and other activities in social media?

DDG: I like the 33% promotion, 33% dialog with your consumers or potential consumers, and 33% about why you are compelling and interesting to your customers.

PG: Do websites still matter in our era of social media?

DDG: YES. Websites are still a requirement, but mostly as a catalog. It is an important place to archive your business achievement, product information, and act as a landing page to people interested in your business. It should be your primary SEO tool.  But most of my time online is centered on a blog, twitter, and facebook. 

PG: If websites do matter, how should they integrate with social media activities?

DDG: If put some really interesting links, commentary, or information out on Facebook or Twitter, I capture it in a blog post on the website for future reference.  Your website is also the place where you refer people back to when you comment on blog posts.

PG: Any other advice for social media newbies?

DDG: Get a smart phone with a data package. Period. Use the Facebook and Twitter applications daily.  It will allow you to respond to your customers within an hour. I do it while waiting at the bank, finishing my coffee, finishing lunch. Customers want to hear from you soon. Don't just do it once per week because you will fail.

Netflix Price Increase: An Unnecessary PR Fiasco

I always enjoy reading David Pogue's technology columns in The New York Times. His recent piece weighing in on Netflix's 60% price increase for its "unlimited online streaming + one DVD out at a time" package prolvided a balanced perspective in a week of tough PR for Netflix. The blogosphere and mainstream media have been dominated with disgruntled Netflix customers saying that they couldn't believe the company had jacked up prices so quickly and that they would cancel their subscriptions.

While a 60% price increase sounds large, the new charge for the unlimited online streaming + one DVD is still a bargain at $16/month when compared to other services (check out this PC World post comparing Netflix to its competitors).

What really hurt Netflix wasn't so much the price increase but how it was presented to the public. Its PR chief did such a poor job justifying the sudden price increase to Pogue that I read the column a couple of times and still couldn't understand the reason behind the sudden change. Perhaps the Netflix official that Pogue interviewed did a poor job, I thought. Nope. After reading articles about the price increase in a variety of respected publications, I became even more confused about the rationale. My conclusion: Netflix's PR people simply didn't have adequate information to explain the price increase to consumers.

I've been a satisfied Netflix customer for almost ten years, and I will continue with the service since it remains a relative bargain. But, I'm not so sanguine about what other Netflix customers will do. In February 2011, the results of Brand Keys' annual survey of customer loyalty were released and in its first year of inclusion, Netflix came out on top of the list of all 528 brands, beating out reigning champ Apple. I'll be very curious to see how Netflix fares in the 2012 survey. I'm guessing that they'll drop in rank. In short, it's a lot easier to lose loyalty than build it in the first place.

Bloggers Not Celebrities More Influential for Female Purchasing Decisions According to BlogHer 2011 Social Media Social Matters Study

The lucrative product endorsement deals that celebrities sign are something most peole have heard about so much that they barely notice them. I've always wondered whether companies are justified in paying so much for endorsements. Well, if companies are trying to market to women, there's an intriguing study that indicates blogger endorsements have a far bigger payoff than those coming from stars.

According to the BlogHer 2011 Social Media Social Matters Study, 78 percent of the female American adult populations are active social media users, and of those, nearly twice as many (20 percent) are motivated to consider products promoted by or with a blogger they know, than they are by promotions featuring a celebrity (12 percent).

Before buying a big ticket item like a computer printer or LCD TV, I read blogs - particularly those that review products, and these have influenced my decisionmaking. I can't recall ever having purchased a product because a celebrity endorsed it. But, if you have, I would be interested to know why. Does what celebrities say matter or is the mere fact that they endorse something the most significant?

Video of "Galvanizing Your Business with Word of Mouth Marketing" Keynote Presentation at the Hillsboro (OR) Chamber of Commerce

Last week, I was invited to give a keynote presentation on "Galvanizing Your Business with Word of Mouth Marketing" at the Hillsboro (OR) Chamber of Commerce's monthly Forum Luncheon. I enjoyed the enthusiasm and energy of the audience of business leaders looking for creative ways to build buzz for their companies.

I hope this video provides you with ideas for growing your business. Please keep in mind that audio quality improves after I'm introduced since the microphone is on my lapel. Also, I suggest that you learn from a mistake that I made. If you're ever filmed as speaker, don't forget to take off your nametag.

If you know a company, chamber of commerce, or association looking to educate people about word of mouth marketing, please consider referring me as a speaker.

Special thanks to Karyn Reohr of Black Label Films for shooting this video in challenging lighting conditions and editing it.

Giddy About Groupon: Are Online Coupons a Good Way to Grow Business?

My brilliant wife and business partner Ellen Galvin is the author of this month's Buzz Bulletin about Groupon and the value of online coupons. You can read her article below and sign up here for our free monthly newsletter on how to build business with buzz.

From the July editon of the Buzz Bulletin:

On my desk is a coupon, or rather a “Groupon,” for a local restaurant that I purchased from Groupon.com. It entitles me to $25 worth of food, for which I paid only $12. The problem is, I ordered two of these Groupons and discovered after using the first one that I don’t like this restaurant very much. The food is mediocre and the atmosphere is worse. So why did I shell out $24 for not just one, but two, of these coupons in the first place? I guess the idea of a good deal was just too hard to resist. Plus, how could hundreds of other people in Portland be wrong?

For those of you who haven’t yet succumbed to the Groupon frenzy, this popular website offers heavily discounted deals from local businesses, like restaurants, gyms and spas (who would’ve guessed that there were so many people looking to save money on hair removal?). There is only one deal per day, and the deal only becomes available if a certain number of coupons are sold within a 24-hour period. Naturally, Groupon encourages its users to “tell their friends.” This has resulted in some pretty good word of mouth for Groupon (it is currently valued at more than $1 billion), and spawned dozens of competing daily deal sites like LivingSocial, Zozi, and YipIt.

But what kind of word of mouth does it generate for the businesses who are offering the discounts?

That’s the question I asked of our server recently, on a night that Patrick and I used a Groupon at the French restaurant Chez Machin. We figured that the 50% we saved off the price of dinner would pay for a few hours of our babysitter’s time. Although the restaurant isn’t far from our house, we had never tried it and we were delighted with the good food and friendly service. The Groupon strategy worked: it brought two new customers in the door of a local business (two new customers who talk and write about the businesses they like, I might add). Our server said that the online coupon had brought in several new faces that week, although it was still too early to tell if they’d become repeat customers.

On the flip side, getting too many customers in the door can backfire. In San Francisco, a bakery that specializes in mini cupcakes got more than it bargained for, selling 72,000 cupcake orders in a single 24-hour period (3,000 people purchased the coupon, which offered two-dozen cupcakes for $11 instead of the usual $24). Suddenly, frazzled bakers were shopping twice a day to replenish milk, butter and oil, and several employees threatened to quit. Customers were angry, too, especially those who make a sport of buying Groupons in batches and driving around town to cash them in. One customer who was disappointed at missing the cupcake deal said that he plans his dates around Groupons.

You don’t have to be in the food service business to jump on the “daily deal” phenomenon. Online deals include everything from rock climbing lessons to tax preparation services. So what’s the secret to making these sites work for you?

·         Understand the math

Groupon subscribers expect to see a discount of 50% or more. Of that, Groupon takes another 50%. Ask yourself whether you are getting the right customers through the door and whether they are worth the additional costs, like food, labor and extra equipment.

·         Narrow your targets

For owners of highly specialized businesses, in which the likelihood of getting incremental or repeat business is small, the challenge is to attract new customers without over-investing in them. For example, our client OCSC SAILING used Groupon to sell nearly 2,000 Introduction to Sailing Lessons. Instead of offering a discount applicable to any of its classes, it chose a manageable, two hour lesson tailored to newcomers (versus people who are already OCSC clients or part of the larger sailing community).

·         Be prepared

The cupcake example illustrates why it’s important to control the terms when working with Groupon. Set a limit for the number of coupons you wish to sell, and consider the other factors that could cause headaches for your business if you are not adequately prepared. Remember, it doesn’t take long for one cranky cupcake customer to circulate bad buzz through cyberspace. In addition, many business owners recommend having a separate phone number, email or website to deal with the barrage of questions from Groupon customers.

·         Use discounts with care

It’s easy to catch Groupon fever. It’s exciting to see hundreds of people snap up your offer as you envision hordes of new customers who’ll not only help you recoup your expenses but will also buy additional services. But are these people interested in what you have to offer, or are they just reacting to the thrill of the deal? Don’t expect to email them to find out, either. Groupon does not share addresses. Also, issue too many coupons and you’ll set yourself up as a permanent discounter. For example, do you buy anything at Macy’s that is full price? Enough said.

·         Underpromise and overdeliver

At the end of the day, discount sites like Groupon are running software programs that aggregate deals, send out e-mails and charge your credit cards. The real work begins when a customer walks into your business for the first time, holding a Groupon in his or her hand. You are responsible for making sure the experience is great from start to finish, and that’s where the real word of mouth starts.

So, did Chez Machin make any money on us that evening? Probably not, when you consider the cost of our crepes and the wages of its staff. Yet we would have been happy with the experience had we paid full price, which we will gladly do in the future. And, we’ve already recommended it to our friends.

As for that other restaurant, I’ll go back and order carefully just to use up the $12 Groupon that I already paid for. I’ll probably never return, but it’s been a good reminder that not even the hottest social media tools will help your business if you can’t get the fundamentals right.

Rory Sutherland's Brilliant TED Speech Illustrating the Triumph of Perception over Actual Change

In this entertaining TED presentation, ad guru Rory Sutherland of Ogilvy shares some hilarious examples that illustrate how it is often much easier to improve the success of a product or service with the creative use of language than trying to implement expensive changes. Sutherland reinforces my longstanding belief that more companies fail not because they're selling the wrong things but they're telling stories that fail to engage customers.

Why Isn't ReputationDefender Defending Its Reputation and Faceboook App on Facebook?

Yesterday, I heard a sponsorship plug on NPR for a company called ReputationDefender which claims on its website to be "the world's first comprehensive online reputation management and privacy company." I visited the company's website and was intrigued with its offerings. I found this statement on the company's product page particularly enticing: "You can’t manage your online identity unless you know what others can see about you online. Looking on the first page of Google is not enough. Our Reputation Advisors perform a custom search of the far corners of the Deep Web for every reference to you, including over 40 of the biggest social networks. We then monitor the Web every month for additional references to you and deliver them in an easy-to-read update."

I proceeded to download a free ReputationDefender app on Facebook that individuals can use to monitor their Facebook privacy settings. After repeated attempts to get the app to work, I gave up in frustration. Then I visited the app's review page on Facebook and discovered that others have also struggled to make it work. While I realize that Facebook might have changed its site in a way that causes problems for ReputationDefender's app, I was floored that a company that prides itself on defending online reputations has not used its Facebook page to let people who downloaded the app know how to get it to work correctly - especially since the first complaint surfaced on its Facebook page on June 2.

I'll be curious to see whether ReputationDefender notices this blog post in its own online reputation monitoring efforts and swings into action to address the complaints of people frustrated with its Facebook app.