Earlier this week I wrote a post discussing the question that so many marketers are asking: How do you monetize social networking?  Well, in this month’s Harvard Business Review, Utpal M. Dholakia, an associate professor of marketing at Rice University’s Jones Graduate School of Business, describes an experiment he did with local Houston-based bakery Dessert Gallery on Facebook.  Yummmmm!!  (Ok, it wasn’t a taste test.)

Professor Dholakia discusses how he used Dessert Gallery customer survey responses to determine whether or not promoting the bakery chain on Facebook caused great interaction with customers and, ultimately, greater income.  According to the article, people who replied to the survey and who had also become Facebook fans with the bakery wound up being Dessert Gallery’s best customers.  “Though they spent the same amount of money per visit, they increased their store visits per month after becoming Facebook fans and generated more positive word of mouth than nonfans. They went to DG 20% more often than nonfans and gave the store the highest share of their overall dining-out dollars. They were the most likely to recommend DG to friends.”

Using a net promoter score, Professor Dholakia was able to identify Dessert Gallery’s most valuable customers.  This gives the bakery the information it needs to know which customers will be the greatest return on their marketing investment.  While the article points out that further surveying is needed to determine whether this response continues and can lead to long-term decision making, it does show how connecting with customers where they can be talking about your product can absolutely lead to greater business success. 

Sure, being on Facebook and any other social network is an investment of time, but it’s also free.  That tastes good to me!

 

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Social Media ClubAn article in today’s Advertising Age discusses how Toyota is turning to its most loyal fans for support during this very tumultuous public relations period.  According to the article, the car manufacturer has been able to grow its Facebook fan base by more than 10 percent since January.  Toyota has dedicated six to eight employees to monitoring social networking sites like Facebook and Twitter and the blogosphere for anyone talking, positively or negatively, about the company and its cars.  Despite a highly criticized public relations response using traditional advertising and communications techniques, Toyota is being highlighted for its social networking efforts.  But, what does this mean for the bottom line?

That’s exactly the question that was posed at last week’s Social Media Club – Chicago event entitled “How Social Media Makes Financial Cents.”   Speakers including Leslie Banks and Drew Methard of Morningstar and uberblogger Shannon Paul discussed how social media is necessary in building relationships with consumers, fans and followers.  While all three panelists admitted that keeping track of what is being said about a brand takes time and money, being there is necessary and the return on investment can be significant. 

Of course, the powers that be will always ask how having tens of thousands of Twitter followers is converting to good old dollars and cents.  However, what the panel and this article on Toyota both show is that no matter what the situation, there will always be someone talking about a brand.  Marketing and communications professionals just need to know where they are and help turn them into a valued partner.

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FoursquareI am the “Mayor” of the Evanston Athletic Club here in Evanston, IL.  Never heard of me?  Well, you must not be one of the hundreds of thousands of people playing Foursquare.  Ok, even if you are, you probably still don’t know me, but if you are a marketer for Chicago Athletic Clubs, Lululemon, Nike, Les Mills Group Fitness Programs or any other fitness-oriented organization you should know me.

Why?  Well, as the “Mayor” of the Evanston Athletic Club, I’m self-identifying myself as the most frequent user of the gym through the mobile location-based-service (LBS) Foursquare.  I’m pretty much giving you information on where I’m going, how often and who I’m meeting up with.  That’s the beauty of LBS platforms like Foursquare.  It’s a consumer data oasis.  All it needs now is more people buying in.

I first learned about Foursquare last year at the MBA Media and Entertainment Conference at Columbia University.  Even after being one of Dennis Crowley’s first followers it did take me almost a year to really get into it.  What did I need?  More friends participating!  But now many of my friends, especially from my Medill IMC program, are getting into it.  And we’re not alone.

Already there are more people using Foursquare in the first year of its inception than what Twitter had on its first birthday.  Plus, A number of marketers like Pepsi, Bravo TV and Zagat guides are already jumping on the bandwagon by using the platform to reach the early adapters.  These marketers are reaching out to users when they “check in” to offer free samples of products and tune-in reminders.  For example, to promote the new movie Valentine’s Day, Warner Brothers reached out to Foursquare users who had checked in at one of ”Makeout Spots” locations listed on the movie’s website.

It’s examples like this that show how much of a gold mine Foursquare can be for marketers.  You are reaching an already engaged and interested fan.  The price of a coupon you can send to that person’s mobile phone is so worth acquiring that person’s loyalty. 

I’m still going to go to the Evanston Athletic Club to work out (I’ve signed a contract), but it wouldn’t hurt getting an occassional free massage or a free pair of yoga pants from Lululemon. (HINT! HINT!)

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Heinz KetchupTalk about truly listening to your customers and catering to their needs!  Last week Heinz unveiled its newly redesigned ketchup packet.  In its first packaging change in 40 years, the Heinz ketchup packet reflects how consumers eat the red condiment on-the-go. 

For anyone who has ruined a white t-shirt or has had a hard time flavoring your french fries when in the car, the packet is perfect.  It’s a cup for dipping those beloved fries or chicken nuggets with a tear-off end to squeeze onto a hamburger.  Plus, it holds three-times more ketchup than the old packet.  That’s good news for anyone who has been charged for extra packets at McDonald’s!

The executives at Heinz have joked that they’ve been receiving complaints since they first introduced the little plastic packets back in the 1960s, but apparently someone was paying attention.  Better late than never, huh?  This is a great example of how listening to your customers and understanding their behavior can not only create more effective marketing campaigns, but also better a better product.

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popcorn-bagFor the past couple of years I’ve been going to the all-day movie marathon known as the AMC Best Picture Showcase.  I’m a movie lover and the idea of sitting in a theater for close to 15 hours on a Saturday in February gives me a big smile, especially as I eat my unlimited bags of popcorn and soda.  The showcase provides people with a great way to celebrate the Oscars, watch all five of the Best Picture nominees in one day and feel ready to win the office pool.  But when the Motion Picture Academy of Arts and Science decided to change things up this year and nominate 10 films for the top prize, it left AMC and it’s die-hard movie fans wondering what would happen to the Showcase. 

I’m impressed with how AMC handled the situation.  Knowing that it would be logistically and humanly impossible to show all 10 films at once, the theater chain decided to split the showcase into two days, each showing five of the films.  But it also gave the fans the ability to help decide which films it would show together, especially since the three-hour megamovie Avatar would be shown in 3-D.  Through a polling system, AMC allowed fans to vote on the movies it would show during the first weekend with Avatar and announce the results later today

86,521 votes were cast and it looks like it may be a good year for me.  I’ve seen about half of the films nominated, including Avatar, and those are also the ones that the majority of fans have voted on to be shown on the first Saturday.  Of course AMC has the final say, but let’s hope that the peoples’ voices have been heard and it will save me $30 and an extra Saturday.

I’ll post the results as soon as I find out.

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Coca ColaSoft drink giant Coca-Cola is collaborating with advertising agency Ogilvy to engage with teens through branded media.  Part of this year’s MIPTV Content 360 Challenge, Coca-Cola will award a 1,000 euro development contract to whoever can come up with the most innovative tv show, web series, mobile app, game, etc that gets kids engaged with the brand.

The MIPTV conference has been hosting this contest for the past five years and Coke certainly isn’t the first major corporation to get involved.  But what it shows is how marketers are continuing to think outside the box to get their brand and their product in the hands of potential customers.  Plus, it allows advertising agencies like Ogilvy to come up with new ideas without the expense of hiring new talent (not sure how I feel about that argument right now). 

 

If you are interested in entering the contest, just go to http://www.mipworld.com/en/MIPTV/conferences-and-events/content-360/

Good luck!

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Funny or Die: Pee Wee gets an iPad

Since Apple’s highly anticipated unveiling of its iPad last week, there has been a lot of buzz about this “revolutionary” gadget.  Frankly, much of the discussion is just about that.  Is the iPad even revolutionary?  For some, including Pee Wee Herman and the folks at Funny or Die, they think that the iPad is nothing more than a glorified iPhone that can also be used as a serving tray.  But for others, including me, the iPad is a hint of what’s to come for media consumption. 

Sure, the iPad probably won’t change the media industry as quickly as how the iPod changed music years ago.  But what is sure to happen is how media companies start thinking about the content they produce and how they release it to consumers.  As the New York Times reports today, the iPad has its flaws.  One of its largest is the inability to play Flash, a key compenent for sites like Hulu.  However, with new devices like the iPad, the Amazon Kindle and Barnes & Noble’s Nook, media producers will once again need to figure out how to get their content into the hands, ears and laps of media users before someone else does.

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DNC State of the Union Email

Since taking a database marketing models class last year as part of my masters program, I have been very aware of data hygiene issues, especially as it pertains to direct marketing initiatives.  The email I received this morning from “President Obama”, ok, really the Democratic National Committee, clearly demonstrates the need for marketers to reach specific targets, not just everyone in your mailing list.

I signed up to recieve emails from the DNC during Sen. Barack Obama’s historical presidential election campaign.  They know I was interested in change and a new political leadership in the White House.  However, what they should also know about me is that I am part of the middle class that “the President” is looking to help by asking supporters to contribute $15.   Well, I’m one of those members of the middle class who needs to keep her $15 to help pay off my students loans, find a job and become a more productive member of society. 

I was deeply moved by what President Obama had to say in last night’s State of the Union address, especially during those last five minutes.  However, the Democratic party’s follow-up has left me with a bitter unhygenic taste in my mouth.

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Team CocoApparently everything in the eyes of the executives at NBC.  According to an article in today’s Wall Street Journal, soon-to-be former Tonight Show host Conan O’Brien must adhear to a nondisparagement clause after he leaves the late-nigh show tonight.  This means no jokes, interviews and print and on-air appearances that could possibly cause the comedic host to say some not-nice things about NBC.  If he does, he could risk losing the $45 million agreement to vacate The Tonight Show hosting gig for a returning Jay Leno.

As stated in the article, NBC is no stranger to in-house heckling.  30 Rock makes fun of the corporate big wigs at General Electric every week and Johnny Carson even got a jab in calling the parent company a “conglomerate with a heart.” 

But what this recent development shows is how much NBC acknowledges O’Brien’s ability to connect with audiences and his pop culture leadership.  Sure, ratings of The Tonight Show have dropped since O’Brien took over this past summer.  However, buzz surrounding this late-night war has certainly increased in recent weeks.  The “I’m with Coco” Facebook page (which I am a member of) already has close to 605,000 fans.  This week in Chicago, fans of Conan O’Brien protested outside the local NBC5 studios donning orange-dyed hair to show their support. 

Only time will tell if NBC’s decision to remove Conan O’Brien from The Tonight Show was the right one.  Public relations representatives from both parties are working to make sure their side comes out on top.  But in the meantime, fans of late-night programming will have to wait to hear what O’Brien has to say about the matter.  Who knows?  NBC’s silence clause may possibly be O’Brien’s gain.

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Chicago Dance Marathon

For the past couple of months I’ve been working to help kick off the first ever Chicago Dance Marathon.  It’s been a great opportunity to make new friends, become part of the Chicago community and help a great cause – Chicago’s Childrens’ Memorial Hospital.

On March 6, we’ll be dancing for 13.1 hours to raise money that will help purchase medical supplies, equipment and fun games and activity materials for the infants, children and teens who find themselves in the hospital.

Our integrated ad campaign just hit Chicago with ads in CTA trains and at stations, local radio spots, flyers at local businesses and, of course, a multitude of events to take part in to help raise awareness of this great event.  Here is a schedule of some of the events already planned by the committee:

  • Tuesday, January 26:  Wine Tasting at Quartino presented by the Players Sports Group from 6:30 to 9:00 pm

 

  • Saturday, February 6: $30 Wristband Night at STATE from 9 pm to 12 am ($10 of each wristband sold goes to Chicago Dance Marathon)

 

I hope to see you there!

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