Marketeers! This is What’s Next For Social Media

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Ask most marketers and they will tell you that customer engagement has never been more important.

But real engagement isn’t happening on traditional channels. It’s on digital platforms such as Twitter, LinkedIn, Pinterest, Youtube, Instagram and Snapchat.

What is the future of these channels – and what do they mean to marketers?

Here are six ideas currently gaining traction on a foresight website near you.

1. It’s a conversation which won’t be dominated by brands

The difference between a channel and a platform is that channels are one way pipes, while platforms are two-sided networks.

So while Netflix has an audience and adds content incrementally, Youtube is a community and adds content exponentially.

Marketeers need to understand this.

According to Danielle Tiedt, CMO of Youtube, the goal is not “how do I create a viral video” but “how do I use video to create an ongoing conversation that builds a relationship?”

Historically, marketers have wanted to dominate the conversation, but it is now all about participating. The days of dominating are over.

2. Personalization will get way smarter

There is a ton of content on most platforms. Most of it we don’t need to see.

Platforms do the work of making the experience more personal for us. They will get better at this, filtering out the stuff you don’t need to know about and making sure you can discover new stuff you will like.

Google think a social media platform will be like “ a friend that knows you.”

3. Products and platforms will blur

Uber (a platform) is now offering customers the opportunity to select music for their trip directly from their playlists on Spotify (a product).

Things will travel in the other direction too. Products such as your fridge, will soon pop up on your Facebook page to tell you to buy more milk.

The internet of things will soon be the social network of things.

4. Companies will start to use social media platforms to manage their organizations

Facebook won’t be banned at work, it will be the means by which companies organize business processes such as employee communications, performance management and professional development.

Leaders who want their customers to engage with their brands on platforms must participate themselves.

In a social age, says Harvard Business Review, “you get what you give”.

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5. Frictionless payment via social media

Paying for stuff is changing. Already, with digital wallets, we can download an app, pay our Uber driver or order a Frappuccino without touching our wallet.

Next we can expect even greater integration of e-commerce and social networks.

So while it might now feel odd to make a payment via Facebook, the invisible nature of digital payments is making this new era of social commerce possible – and more popular.

6. Customers won’t want to use more than one platform for any given purpose

How will your connected car integrates with your Twitter feed?

Platforms and providers are going to have to work together to deliver this kind of seamless customer experience.

As digital platforms get smarter and more relevant customers will benefit.

But businesses with traditional mindsets structures and practices will find it increasingly challenging.

Customers are setting the pace, its up to us to keep up with them.

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How to do the hardest thing in the world: change

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“Change does not roll in on the wheels of inevitability, but comes through continuous struggle.”

Martin Luther King was describing a change more fundamental than any that occurs in business.

But that does not mean his words do not apply to affecting changes – big and small.

The truth is, change is very hard.

“Adapt or die” is s a truth universally acknowledged, and yet, often we think it doesn’t apply to us.

Companies are no different. Even though they can see they need to make fundamental changes in how their business is conducted in order to help cope with a new more challenging market environment, still they often resist.

I’m not talking out of my hat. My job as a consultant content director is to get clients to improve their comms  – to change in other words – and it is by no means an easy task.

After some tough experiences  I started reading what experts such as retired Harvard Business School professor John P. Kotter (Leading Change, 1996)  had to say on the question of organizational change.

Here’s a guide based on the learnings of experts – and your humble scribe – of how to do the hardest thing in the world: change.

OVERVIEW

The first thing to say is the eight phases of organizational change take time to work through.

How long? Longer than you think, sometimes three years and beyond.

The second thing to say is that any mistakes in each of the phases can have a critical impact, slowing momentum and negating hard won wins.

Finally it’s worth remembering that because so few people are experienced in change,  even smart people can make whopping mistakes. (Believe me, I should know).

OK, so, having said all that, strap in, here we go. It’s going to be a bumpy ride!

 STEP ONE: establish a sense of urgency

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This is vital. Getting a transformation programme started requires the aggressive co-operation of many individuals. Without motivation, no one helps, and your change programme dies.

Surprisingly, many companies fall at this first fence. Why?

Executives really under estimate how darn hard it is to drive people out of their comfort zones. Or they get impatient to move to the next phase, before the seriousness of the need for change really sinks in.

Sometimes execs become paralyzed by downside possibilities – they worry morale will drop, senior employees will get defensive, stock will sink and they will be blamed for creating a crisis.

The problem here is  simple: generally it’s a manager’s job is to minimize risk and keep the current system on track.

But change requires a new system, which takes leadership. Without leadership, or a change champion, a new system can not be developed.

The top line is this: stakeholders need to have a frank discussion of potentially unpleasant facts about the business  – flat earnings, no growth or whatever other indecies of a declining competitive position.

Because there is a tendency to shoot the messenger, many CEOs get outsiders to bring the bad news.  The aim here is to make the status quo more dangerous than launching into the unknown.

When 75% of a company’s management is honestly convinced that business as usual is totally unacceptable, you are ready for Step Two.

Anything less can spell trouble later on.

 STEP TWO: form a powerful guiding coalition

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Most renewal progranmes start with just a couple of people. But to be successful the leadership coalition must grow over time. Without minimum mass in early stages, nothing happens.

Now, some senior execs just won’t buy in. But to be successful, this coalition should be pretty powerful, in terms of titles, expertise and reputations and relationships.

I small organizations, a guiding team of just three to five people is ok. But in big companies it needs to grow to about 20-50 before more change can occur.

It often exists outside the existing hierarchy. But that makes sense. If the existing hierarchy were working well we would not need transformation in the first place.

The guiding coalition must be powerful. If they don’t they may make progress for a while, but sooner or later, the opposition gathers itself together and stops the change.

 STEP THREE: create a vision

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It is important to develop a picture of the future that is relatively easy to communicate and appeals to customers, stockholders and employees.

It helps if this is inspiring.

Then a strategy for delivering the vision can be developed.

In failed transformations, you often find plenty of plans, directives and programs but with no vision, employees are confused and alienated and unclear but where all this is leading.

Here is a great rule of thumb: “If you can’t communicate the vision to someone in five minutes or less and get a reaction that signifies both understanding and interest, you are not done.”

For a guide, South Western Airlines is a great example of an easily understandable vision.

 STEP FOUR: communicate the vision

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Transformation is impossible unless many people are willing to help, often to the point of making short term sacrifices.

They won’t do that, unless they believe change is possible. With a lot of communication. Hearts and minds of the troops will never be captured.

Sometimes, change necessitates job losses. Getting support is tough when downsizing is part of the vision. So new visions need the possibility of growth and a commitment to treat fairly anyone laid off.

In the best cases, execs use all comms possible to broadcast the vision: newsletters, management meetings, everything supports the vision.

The very best execs live the change. Communication comes in both words and deeds and the latter are the most powerful.

 STEP FIVE: empower others to act on the vision

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Blockers to change are very real. Sometimes its organizational structure, such as job categories, sometimes its performance re-appraisal systems that favour self-interest over the new vision.

Worst of all are bosses who refuse to change.

I worked with one company where a senior exec was allowed to block the change. The reasons he did this were complex. Partly he did not believe change was necessary and partly he felt personally threatened by it. The company had no history of confronting problems like this and people were afraid of him. The net result was disastrous, employees did not think renewal was possible and the effort collapsed.

In the first half of transformation, the big obstacles to change must be confronted and removed to maintain the credibility of the change effort as a whole.

 STEP SIX: plan for and create short-term wins.

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Real change takes time and renewal efforts risk losing momentum without short-term goals to meet and celebrate.

Without short term wins, many people give up or actively join the ranks of those who have been resisting change.

In a successful transformation, execs look for ways to obtain clear performance improvements and reward those involved with promotions, even money.

 STEP SEVEN: Don’t declare victory too soon.

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New approaches are fragile and subject to regression.  A premature victory celebration kills momentum. And then the powerful forces associated with tradition take over.

Instead of declaring victory, leaders of successful efforts use the credibility afforded by short-term wins to tackle even bigger problems. Renewal efforts can take years.

 STEP EIGHT: Anchor changes in the corporation’s culture

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Changes sticks when it becomes “the way we do things around here”. Otherwise they are subject to degradation as soon as the pressure for change is removed.

Institutionalizing change requires two things.

First, a conscious attempt must be made to show people how new approaches behaviours and attitudes have helped improve performance. This requires communication. Time must be spent at every management meeting discussing why performance is increasing.

Secondly, the next generation of top management must embody the new approach.

If not, signs of renewal will begin to fade.

CONCLUSION

Obviously, this is a reductive analysis, but you get the point: change is messy and full of surprises, but by using this as a guide the chances of major mistakes can be avoided. Good luck.

 

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Here’s a GREAT idea. Let’s NOT have a brainstorming session

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I am reading a very enjoyable book called The Sisters Brothers by Patrick deWitt right now. It’s a darkly comic western set along the Pacific Coast in 1851. It’s creative, inventive and great fun.

And it was written by only one person. This guy.

No one ever heard of a book – a good book – being written by a committee. The very idea! Sure, there are acknowledgements in the front of every great tome, but that’s not the same.

Good ideas don’t come from committees. That used to be a prejudice. Now it’s a scientific fact.

meta-analytic review of over 800 teams shows that individuals are more likely to generate a higher number of original ideas when they DON’T interact with others. Brainstorming actually harms productivity – especially in large teams.

What went wrong?

Brainstorming was invented by 50s ad guy Alex Osborn. It works on four basic principles. You get together with your co-workers and then:

1. Generate lots of ideas;

2. Prioritize unusual or original ones;

3. Combine and refine those ideas;

4. Don’t criticise them until later.

The idea is that by getting together with others, people try harder and quantity eventually leads to quality ideas.

Osborn said it would lead to a boost in performance by 50%, compared with people working on their own.

WRONG!

According to Harvard Business Review there are four reasons why that is not the case:

1. Social loafing: in reality people don’t try harder, they try less hard.

2. Social anxiety: People worry about how their ideas will be treated.

3. Regression to the mean: a process of downward adjustment means the most talented members of a team end up matching the peformance of their less talented peers.

4. Production blocking: people can only express one idea at one time. The number of ideas per person actually declines as the size of the group gets bigger.

So, given the evidence that it does not work, why do it?

Stakeholder buy-in, compadre.

It’s a management placebo, designed to make employees feel good.

So, now we’ve had our brainstorming meeting and generated second rate ideas, we are all willing to put them into practice.

Yay.

Now, back to your desk.

 

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How to produce pointless stories devoid of meaningful value or engagement

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In an extensive interview last week the legendary marketer Seth Godin lamented the ‘industrialisation of content’, writes Andy Cowles. He said: ‘As soon as organisations start to measure stuff and poke it into a piece of software, then we are asking people who don’t care to work their way through a bunch of checklists to make a number go up’.

He’s making the argument for editors, as opposed to brand managers. ‘A brand can’t care’ says Seth, ‘all that can care is people.

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Seth is famous for his book ‘Permission Marketing’, still regarded as the key text on how to engage consumers online. Here’s his definition: ‘Permission marketing is the privilege (not the right) of delivering anticipated, personal and relevant messages to people who actually want to get them’

Seth’s view now is that ‘being trusted is the single most urgent way to build a business’. If you’re paying for content, then trust is acknowledged the moment money changes hands. But as I’ve written previously, when content is essentially free, trust has to be earned.

Because without it, we’re just looking at spam.

With the decline of one-way advertising as the only way to reach and influence large audiences, marketers and ad agencies are now trying to take ‘content’ and see if that will do the job for them.

However, as Saatchi’s strategy director Richard Huntingdon points out in his recent ‘Guano Marketing’post, content is now being ‘ordered by the yard, with quality of no consequence’.

In a fabulously ranty post he declares: ‘Never in the field of human endeavour has so much crap sat on client servers to be consumed by so few’.

 

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Even content marketers themselves say similar, witness this slideshare from Velocity simply entitled ‘Crap’.

I quite agree. The term ‘content’ has had all the joy flattened out of it, crushed by the need for a single description to describe ideas of every kind shared across every platform.

But let’s not shoot the messenger here. The word may be totally inadequate, but that doesn’t mean the passion, authority, service and sheer fun of the exchanges behind it are redundant.

The opposite is in fact the case. Our society may have been founded on storytelling, but right now, our appetite for powerful ideas, inspiring  images, big thoughts, true feelings and passionate opinions has never been greater.

With the reluctance of people to pay directly for magazines and newspapers, the word ‘editorial’ has fallen out of favour in recent years.

You only have to visit linkedin to see how many journalists have rushed to replace it with ‘content’ in order to stress their digital credentials. I make no apology for doing the same, currently there being no better way of saying ‘I present stories to be shared digitally’.

The question is, what exactly are we sharing?

If it’s a genuine point of view, delivered in a relatable tone, with ideas that add value, either practically, or on a deeper emotional level, then readers will react.

They still need to know who’s doing the talking, as ‘editorial’ is explicitly the voice of the storyteller, not the paymaster. But if clarity around brand is maintained, then real connections will be made, real feeling will be created and real action taken.

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As for advertising, the words of Howard Gossage, the original Mad Man still hold true: ‘People will read what interests them. Sometimes it’s an ad’.

 

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The Chinese stock market is a “super-bull on a rampage”

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China’s stockmarket has surged 21% in the last ten trading days, and that is building on a 20% rally over the previous four months, reports The Economist.  One of the world’s worst performers for three consecutive years, China has suddenly shot to the top of the table for all major markets in 2014. The rally has also propelled China ahead of Japan as the world’s second-biggest equity market by value, with a total capitalisation of more than $4.5 trillion. The massive gains of the past two weeks have the air of “mania taking hold”, as Mark Williams of Capital Economics put it.  Individuals account for about 80% of trading in China, massively outweighing institutional investors–the opposite of more established markets. Last week they opened 370,000 new trading accounts, the most in three years (see chart.)

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One of the top headlines on financial websites on Friday was a quote from an investors’ call hosted by Guotai Junan, a brokerage: “Buying shares in financial companies is buying the China dream.”

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Is Germany turning into Japan?

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The yield on a bond represents the return an investor will receive by holding the bond to maturity.  The more you pay for a bond, the smaller your profit will be and the lower your yield will be.If bond yields are going down, it is because bond prices are going up. Now, the only reason bond prices go up is if there is an increase in demand for the bonds. Typically, you will see an increase in demand for bonds when stock investors are concerned about the safety of their stock investments and they decide to seek more safety for their money by investing in bonds. That’s what’s happening in Italy right now.

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Chris Williamson, chief economist at Markit, said that data signalled that the eurozone “is on course to see a mere 0.1pc GDP growth in the final quarter of the year, with a strong likelihood of the near-stagnation turning to renewed contraction in the New Year unless demand shows signs of reviving”. Just like Japan.
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