Here’s a dirty little secret: Social Media Engagement is not so easy as to be covered by absolutes. If you have an agency, consultant or friend that tells you to ALWAYS follow a defined set of rules, then RUN.

Each engagement is unique. Will you find overlap and similarities? Of course. But you have to gage your interactions based on your objectives, your fans, followers or members. Social Media is not a cookie cutter exercise. Be courteous, honest and communicate in a way that engages your fan base, and allows them to engage each other.

Facebook is the destination, the playground to which so many go to interact with each other, connect with companies, play games, be entertained, share and learn. It is an ecosystem unto itself.

Google’s +1 is a misguided attempt to connect users to each other; it falls short on several fronts. It is too strongly influenced by the algorithm that delivers the search results. It is self fulfilling. Check out almost any eye tracking heat map, and you can predict what will get +1. Additionally, Facebook is where we go to get opinions from friends, directly asking them for their experiences. For Google +1 to work, we and our friends need to be conducting similar searches at or around the same time (latency can lead to a degradation in relevancy between the times of searches) and have profiles, and be linked together. Not all likely.

What Google is missing, and what appears to be a perpetual issue with Google, is that they collectively think globally. They think of the internet as one big global community. It isn’t. Google doesn’t build with the individual or small group in mind, they build with the idea that it has to be applicable across the globe. This creates great reach, but socially little relevance. Search across the globe is algorithmic. Social interaction is not. There is no deep attempt at social community at Google, but the social tools they are building are too shallow to be beneficial to many.

I think +1 is most similar to Digg. But, Digg motivates us because it is attached to subject matter content while +1 is attached a level or two above that interaction. It is not focused on a defined common interest, but on an assertion that because I know you, I will search the same things you search…I don’t even search the same things my wife searches.

The success of social media is that it provides a mechanism for us to aggregate (or congregate) around common interests. Twitter, I can follow those I respect. Facebook, we have some historical or topical connections. LinkedIn aligns professional interests. +1 relies on an off-chance similarity between searches from different people. There is no cognitive connection, just the hope of a connection.

If you’ve heard of these ( and you most likely have) than you may have also heard of the issues consumers and retailers experiences:

-Retailer is inundated with business they cannot handle.
-Retailer provides a significant discount to a bunch of first time, never-to-become-repeat customers, resulting in loss-leaders that lead to nothing.
-Customers are frustrated because they had to wait too long to receive the product or service offered. This resulted from inventory and capacity issues.
-Customers feeling as though they were ripped off as they suspected the retailer artificially inflated the retail price to provide a “larger discount.”

The “daily deal” has a place in the marketing mix, but retailers must have that place clearly defined before entering the arena. Essentially, daily deals can play two important roles for local retailers: 1) build new customers, and 2) help move excess inventory /capacity that have not sold well.

With either of these roles, retailers must ensure a good customers experience.

First, be honest with yourself about your capacity and your inventory. One aspect of marketing that has blurred this new tool is the idea of breakage, or the rate at which individuals do not claim an offer to which they are entitled. This is most commonly applied when calculating the cost of rebates. For example, if a company offers a $2.00 rebate, but believes that only half the people will actually send it in or claim it, then they are assuming the breakage is 50%. This translates into an average discount of $1.00 per sale. Breakage plays a big role in calculating the impact of offers on the bottom line.

Here is where it gets difficult for daily deals, because the old model of breakage does not apply. So, when setting limits on the number of offers they will make available, retailers must assume a near zero breakage. Retailers cannot risk running out of inventory, or over taxing capacity. This can become challenging as the offer-services make more money with higher volume, but retailers must stick to their reality, even if it means they need to squelch the use of daily deals.

Secondly, don’t mess around with the numbers. Base all discounts off your real retail price. Remember, this is the Internet; checking up on prices has become the easiest thing for consumers to do. Just ask FTD.

Third, have a retention plan. If you are driving a whole bunch of new customers with discounts, how will you retain them without continuing the use of daily deals? It is not as easy as simply providing good service (that is just the ante for successful retail.)

Taking a queue from marketing history, back in the 1980s and 1990s, retailers and CPG companies used coupons to drive trial purchases. It did not take long for consumers to become “addicted” to coupons. We spent millions in advertising trying to convince consumers that they no longer needed coupons to get great prices, that we had EDLP (every day low prices). Some retailers like Wal Mart built an empire on EDLP, but coupons never went away. They eroded brand loyalty and made switching a common practice among consumers.

So, for retailers that are using a daily deal service, you need to plan for the post deal relationship. Loyalty programs can keep people coming back; return-with-a-friend deals, or other such programs should be planned as part of the daily deal. Develop an email program, encouraging sign up at the store with a return customer incentive. The reality is that consumers are in love with their discounts and you will be hard pressed to move them away from that. They key is to develop programs that will fill this need through loyalty to your store rather than continuing to seek new locations with discounts.

National franchise and dealer programs have a unique situation. Unlike the Gap that can centralize the daily deals for all locations, these organizations have to facilitate deals across multiple, independent businesses that share the same brand name. There are a few areas that present a particular challenge: 1) the mechanisms for corporate support are structured around advertising and marketing programs and not necessarily set up for discounts. Parent companies need to structure marketing funds and rebate funding around this new concept. 2) Developing consensus around the offering among multiple independent businesses. Typically referred to as local marketing groups (LMGs), these groups need to build a plan into the beginning of their annual or quarterly marketing programs.

Bottom line, while daily deals are great for driving customers, small business and franchise / dealer networks alike must plan their place in the mix carefully. From ensuring that you can deliver on the promise, to ensuring you are leveraging daily deals for relationships that last more than just a day, make the most of these for you and your customers by planning ahead before diving in.

The thing is, this isn’t really a Sponsored Story; you, as the user, get nothing for this. It would be more accurate to call it a Hijacked Story.

But, there is a way Facebook can make sponsored stories out of this. But, to get there, we need to talk a bit about Facebook credits.

When you play social media games through Facebook, like FarmVille, or CityVille, you can buy game coins or game money using Facebook Credits – which you buy with real money (credit card). So, if you want to buy a building in CityVille, you can use your credit card to buy credits and exchange those for game money (Facebook gets a 30% cut – expected to get about $300MM in 2011). When you actually do it, it goes more seamlessly. You can simply buy credits to store up and use if you wish. More info http://on.fb.me/f3KEiO

CNNMoney story having some fun with Facebook Credits (http://bit.ly/fM7P6q ).

So how about this? A true Sponsored Story is when Facebook gives you Facebook Credits whenever they use your update in an ad. You have to opt-out (opting in is kind of against Facebook’s philosophy), but if you participate you get some number credits every time your update appears in an ad. This makes it a true Sponsored Ad, plus it gives Facebook credits more exposure.

To make this even more interesting, how about the sponsoring companies provide discount coupons via Facebook that can only be purchased with Facebook Credits (ie the Groupon model)? This way, the user experience comes full circle – given that many would have no other use for the Facebook Credits.

If they are really going to try to connect brands and users in an explicit ad, then the users should get some benefit. This just seams like a fun way to do it.

Of course, there has to be a value to the consumer. Why would someone text your short code, download your app, or Like your Facebook Page? It turns out, loyalty programs could be a significant driver to leverage current digital campaigns and extend their value.

The Oct 2010 Mobile Response Survey by HipCricket shows that 35% of consumers are interested in a loyalty program they can use with their phone, yet only 9% have found an opportunity to do so. Additionally, 60% were at least somewhat likely to redeem mobile coupons. There is an untapped opportunity for businesses to extend the value of their digital marketing programs.

http://bit.ly/gGAeaW

Small budgets. No Apps. No Problem.

One of the issues for small businesses is resource; they believe they simply don’t have it. The truth is, there are options that can provide the consumers what they are looking for while being cost effective for the SMBs.

Start simple with an SMS program. SMS is a text messaging program whereby the consumer sends a specific text message to a number (also known as a short code). Based on the message, the system can be set up to send weekly deals, or monthly offer coupons or any number of locally target programs. You don’t need your own SMS system to do this. A good local marketing agency can set you up with their system, taking advantage of scale.

Also, keep in mind that Facebook is as much a mobile experience for users as it is a desktop. Creating your business Page on Facebook, and then adding a “Like” button to your site, display ads or landing pages can allow consumer to connect to you, and you to promote to them. Setting up a Business Page can be done relatively quickly, though we recommend having a broader social media program in place. In addition to the Business Page, you should claim your business within Facebook Places (http://www.facebook.com/help/?page=1154) to encourage repeat visits. Again, you don’t have to go this alone if you’re not familiar with it. A good local marketing agency can get you set up and help you manage your program.

So, how would a program like this look to a consumer? The beauty is in the simplicity. Within the display ad, on landing pages or on your site, you need to proved either, or both, the Facebook page icon (code provided courtesy of Facebook) and the SMS text and Short code. You may want to put these only on the last page of a forms submission so as not to detract from immediate conversion; you should test this.

Of course, you also need to provide a reason, another call to action. Let the consumer know that these will be exclusive offers, or deals, just for those who participate in the SMS or Facebook page.

In addition to SMS and Facebook Pages programs, you can build loyalty programs around location based check in services like Foursquare, Gowala, of Facebook Places (mentioned above). With these services, users check into your location, and they can earn badges and you can develop rewards and recognition around the frequency of the visits, such as discounts or other offers. As the business owner you can set up the type of badges for your business.

There are more things you can do with to extend the value of an existing (or new) online marketing program. I’ll hit on some more in future posts.

Two of my children go to the same school district and within the district there is an incentive program for the kids that exhibit good behavior; these are called roar cards. Every time they demonstrate responsibility, respect, ownership etc, a teacher will give them a roar card. At the end of the quarter, the kids can turn in the cards for prizes. The more cards, the better the prize.

Anyway, the school had parent teacher conferences this week. During a visit, my wife,
daughter and youngest son went to my daughter’s cooking classroom and talked to the teacher. Of course, my son, being the little brother proceeds to embarrass my daughter. He was very curious, looked around the room, goofed with the teacher, and asked a bunch of questions. Well, he eventually spotted, buried deep in a basket, a bunch of roar cards. Naturally, being who he is, he looked at the teacher with a big smile and asked, “can I have a roar card?”

My daughter couldn’t shrink back fast enough.

Her teacher smiled at my son and asked “why do you deserve one?” Without missing a beat, he told her ( I won’t go into detail here, but she was impressed by the polite confidence).

She gave him a roar card.

In the car on the way home ( after sufficiently recovering from the embarrassment she suffered at the hands of her little brother), my daughter blurted out, “why did he get a roar card!?”

To which my wife calmly replied, “because he asked for one.”

How come good salespeople get the business?

Because they ask for it.

Yes, they have to earn it. But how many times do we see the opportunity go away and realize we never actually asked for it? Perhaps, afraid we’ll hear “no”, we never gave the person the chance to say “yes.”

Earn it. Then ask for it.

You see, Groupon is not just about the savings. It is about the Local, unique opportunities that people would otherwise never see. So, when a Gap coupon came out (BTW – I like Gap), it was out of touch with the reason for Groupon in the first place. As one person interviewed on NPR said, we can “get a Gap coupon anywhere.”

I hope that Groupon doesn’t allow itself to be drawn away from its core by investors seeking a new revenue stream. If it is, it will become just another coupon site, and we don’t need another one of those.

One of the foundational truths about working in interactive, digital advertising is that you have to be comfortable with the fact that you will be ignorant monthly, weekly and for stretches, even daily, about things you thought you knew. It changes, and you cannot predict how; it may be the technology, it may be how people use it, or even how people react to it.

So, while some will bash Mark for “lacking sensitivity” to privacy, I would suggest that the only reason we have Facebook, and other cutting edge sites, is because he and others like him are willing to be surprised and uncomfortable from time to time as they explore what digital technology can bring us. They make decisions, act on them and adjust.

If we only explore that which is known and safe, then we’re not exploring at all. So, get comfortable being uncomfortable once in a while and allow others the latitude to do the same.

When planning digital media, there is a disconnect between the channels. Search budgets are allocated irrespective of display, email is treated independent of social (if there is a social component) and offline activities are seldom weighed when planning online efforts. What the traditional planning process misses is the inherent integration of all these aspects, whether it is intended and managed, or not. It goes beyond leveraging synergies. By ‘disconnecting’ these channels, you run the real risk of undermining their inherent value.

Not too long ago, there was an argument that leveraging the synergies of the digital channels was the sole purview of the national advertiser. With the advances in our understanding of consumers, and the capabilities of technology, this is no longer the case. Consumers are fine-tuning their own experiences on the web and mobile to target localized content. Between geo targeted ad delivery on the internet, re-marketing technology, and GPS enabled mobile devises, local businesses have as much at stake, and opportunity, with integration as do the national advertisers; perhaps more. With each channel, such as display, social or mobile, we can see the connections between channels.

The fact is, people don’t often click on display ads. But, it would be a mistake to assume that this means display is not effective. People who are exposed to display ads, will search for the company or product in the search engines, or type the company website into their browser. In fact, according to a ComScore study there is a 45.7% lift in site visits as a result of exposure to display ads over a 4 week period. If you are not managing your search campaign in synergy with display, you’ll not only miss opportunities, but you’ll also make false attributions.  Your search campaign needs to highlight keywords, ad copy and landing pages that are directly related to the display ads. One of the most dangerous pitfalls in online advertising is creating experiences that diverge from consumer expectations. If your display ads set up expectations that are not experienced through your search, you’ll lose the customer. Unfortunately, when not integrating the two, you’re likely to assume the search campaign stumbled; not seeing the connection to the display program that initiated the search in the first place. By planning from an integrated approach, you’ll leverage the synergies and minimize the mistakes.

Social networks are growing and many consumers see this as the primary mode of communicating online. According to Nielsen, the average user of social media has increased their time in the space by 143%. In total, Americans are spending 210% more time on social networks than a year ago. Email, offline, and even online display advertising can all leverage the power of social media by providing customers with an easy way to become a fan or a follower. Of course, you’ll need to give people a reason. For small businesses, using the social networks can drive customers to the store, running time sensitive offers; Inventory can be move with very targeted messaging; create unique content messaging to niche areas of your customer base. One click from an email, or a display ad, or visit driven by in-store POS can be the start of long relationship with customers. But, it can only happen if you seen the connections between the different media.

Every year it seems like we have more reasons to believe we live in a world of change. Over 2009 and moving quickly into 2010, mobile has exerted itself as a true medium for non-phone two way digital communication. Google is aggressively pushing forward with integrating online and mobile experiences so users can research at their desktop and have the same information available on their mobile. While display advertising is still nascent, location based searches are growing strong. So, you have to managed your location information online. If you don’t, users can easily receive old or even entirely wrong information about your business. Understanding how your address and phone number are managed online is key to developing successful mobile experiences – the two are very connected. Search marketing has also evolved to present click-to-call phone numbers as well as URL. Facebook and twitter have mobile services that let people take the social network with them wherever they are. On the mobile platform, we are seeing the convergence of location information, search, social and display advertising. If you don’t manage the integration of your digital advertising, consumers could very easily have 3, 4 or even more very different experiences with your business, all on the same 3 inch screen.

Integration, and targeted advertising, are available to businesses of every size. I’ve only highlighted a few examples of the inter-connectedness of digital advertising. All are within the control of small and medium size businesses. Whether you take the reins directly, or have an agency handle the heavy lifting for you, make 2010 the year you decide to integrate your digital marketing efforts.