Social Media Report: Building Product and Market in Tandem

By Suzi Edwards   March 7th, 2008   Filed under: microtrends, online marketing, marketing that sticks, innovative business, social business media

Writers and business analysts are keen builders of community. They share their work online before taking the traditional print path and eagerly engage audiences in discussion.

Two clever Wired guys are taking that anti-vacuum approach with books scheduled for print in 2008 and 2009:

FREE: Why $0.00 Is The Future of Business: Remember when The New York Times tried to charge us for online content? Those were the days when business tried to reshape a traditional product model into ecommerce revenue. Not anymore. As Chris Anderson (of The Longtail fame) argues in FREE, giving it away is getting business. Anderson hopes to, you guessed it, give away the book for free or practically free. How?: hungry sponsors.

Crowd Sourcing: Another Wired guy, Jeff P. Howe, is peddling his own book (publishing in July 2008) about the online phenomenon of crowds. The theory gives form to an underbelly, grassroots movement that has been successful in open source programming for years: the power of the masses trump the efforts of one. This, according to Howe, can be a powerful force in innovation, business and funding.

Both Anderson and Howe are tapping into more than just collaboration for the sake of collaboration or making the community feel warm and fuzzy. They are creating the ultimate marketing utopia of building a market with the product. How do you say no to purchasing or obtaining something you’ve participated in or donated to? It’s like bringing beef stew to the potluck but not having any. It’s not done.

You don’t have to be a book author to build a market with your product or service. Consider creating a Wiki to discuss your next business venture, marketing project or your take on industry trends. Too scary to open it up to the masses? Then don’t. Create a private Wiki for invite-only access to select clients and colleagues. Good or bad, we’d love to hear about your experiences or ideas so please post away.

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2008 Fly-on-the-Wall Business Predictions

Predicting what 2008 will bring is tricky business. It’s an election year, housing is moving on from sellers-market denial, credit card debt continues to eat away at our economic stability, the U.S. dollar has seen better days, old media continues to fight the once-good fight while new media prepares for all-out infiltration and conglomerate air time is continually consumed by the Writer’s Guild strike and Britney Smears instead of our troops.

Armageddon? Not yet. As far as I can tell, turmoil breeds panic for the timid and intrigue for everyone else. The business climate, depending on the business, is at once volatile and filled with opportunity. I see the upcoming two years as less of an end to a decade than a precursor to the incredible shifts that will take place beginning in 2010. Virtual living and working will cause person-to-person business to make room for better online practices and philosophies. To be truly successful in the Web 2.whatever, businesses must synergize online and offline activities. Your business’ relationships, revenue and mojo depend on it. Enough about the decade, let’s just focus on 2008 for now.

Below are WallFly’s top three predictions for the upcoming year. I have to admit they are a mix of prediction and hope. Maybe I should have called them “Business-Fulfilling Prophecies” instead?

Recession Schmession

Smart companies will improve relationships, not business plans.

I’m not suggesting you avoid streamlining. We’re all making measured decisions with our cash flow. Just last week I considered not sending out a business mailer for the holiday season. Instead I opted to spend less money at Panera and wait until the new year to hit Staples.

Move your numbers around all you want but if you’re not taking time out to do the following, you are losing ground with clients: a) connecting with your clients on a regular basis (phone, mail, email or events) to increase opportunity for more interaction b) learning when, why and how your current clients interact with you, and applying that knowledge to improving your value and c) feeding your positioning with a menu of competitive activity, impending growth and your customer’s changing climate.

We all know that getting a client takes double the effort versus convincing a happy client to stay, so why do companies continue to neglect clients in the off-season of interaction? Think about your best personal relationships and what makes them tick. Making someone happy in a relationship 90% of the time requires improving their life every day (i.e., taking out the garbage) versus buying an expensive gift one day out of the year (i.e., buying an iPhone). Next time you consider dumping all of your marketing dollars into a big trade show, think about the low-budget things you can do to reach out to clients throughout the year: start a monthly newsletter, make quality control phone calls, talk about how other clients benefit from you, make in-person annual visits or even send out a short quarterly email that shares info on upcoming developments.

Ecomm Grows Up

Utility will emerge from 80 gazillion social media apps.

I’ve seen some pretty useless Facebook applications - from starting a virtual snowball fight to getting hugged by a zombie. How do these strides in web development improve your business? They won’t. But they will change the way users interact with the web and that’s what you need notice. Once users start expecting things from the online world, they want it from everyone - a streamlined user experience, content that takes into account context and a site that understands the concept of easy.

The massive amount of activity taking place among developers for Facebook and now Google’s universal app platform will both increase the size of our kids’ behinds as they play less soccer (or play more virtual soccer) and generate technologies that users will want to see everywhere. If you have a website, start paying attention to the activities happening online. You don’t have to apply them all but you have to understand how it will affect your clients. I’ve advised some clients to skip blogging because it didn’t make sense for them. It’s not about jumping on the latest, new technology - it’s about understanding how all new technology is driving the way we do business.

Marketing Gets Stuck

New media will drive marketing. The stories that stick, win.

I was wondering when some smart marketing guy would take Chris Anderson’s Long Tail and extend it by applying it to branding. The smart marketing guy is Mohammed Iqbal and the essay is The Elongating Tail of Brand Communication, as found on ChangeThis.

One-hit wonders are not only increasingly rare in this climate of targeted success, aiming for them is the same as denying the tastes of various music fans. We are a culture of choice and highly personal demand. One size does not fit all and this philosophy applies to both your products or service and your brand position.

I recently discovered this in my research for finding a market for a Connecticut coworking space, Group88, that I will help manage in 2008. Some of the area professionals liked the idea of getting out of their home-based office to meet with other folks while others had no need for networking at all (I think there’s always a need for networking but I’m partial to the practice). You can’t be all things to all people so don’t even try. You can, however, choose the primary values of your positioning that appeals to your variety of customers. Using new media channels to test an idea and then kill it or expand it will yield higher results than picking one thing and crossing your fingers that it will stick. Don’t egg your basket - add crates and buckets and other things to put all your eggs into.

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Trends: Small, Social and Speechy

Small Stuff – The latest manifesto on ChangeThis talks about “microtrends.” Yes, we all know about the growth of niche and the longtail but this interestingly takes it one step further and suggests that there is a lot of power in 1% that is being overlooked: http://www.changethis.com/38.01.JustOne

Social Networking is Coming For You – Businesses who don’t understand why Facebook and online community building will affect the future, will be left in the dust. Remember the days when email was primarily for chain letters and jokes? Now it’s a marketing tool. Younger generations are building social networking beyond trend and into lifestyle and work function. All the young techies are trying to figure out a catchy Facebook app like this: www.lemonade.com. It may not directly affect your business right now but understanding its impact will keep you open to opportunities when presented.

Word of Mouth – I’ve been a BzzAgent for several years now. As an agent, I spread the word on products and services that I like to friends and family and earn points for spending time talking about other people’s stuff. Recently, they launched the Frog Pond where agents spread the word on websites and online promos. WOM is strategically tricky stuff. I think this avenue will do well with agents like me who live off the laptop: http://www.bzzagent.com/frog/FrogPond.do

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Jelly, Jam and Preserving Workspace

The latest thing in networking and working, if you haven’t heard, is Jelly. Started by Amit Gupta of ChangeThis and BarCamp fame, Jelly-type gatherings bring solo entreprenuers and freelancers together to work out of somone’s home once a week or whenever. The result is a mutt environment of social hanging out, idea storming and actual working - all sans office politics.

Jelly is the hippie, laidback sister-in-law to the evergrowing Coworking trend where independents pay to come and go at jointly-funded office space. A local example of this is Betahouse in Boston. From what I’ve heard, the slots are for established techies versus just-starting-outs. A colleague of mine is dying to get in to Betahouse because of the networking potential. I’m sure Betahouse serves its renters well but the whole concept of how this developed intrigues me. I am always fascinated by how trends take shape and sometimes morph into the very thing they were getting away from. In this case, one of the goals of creating non-traditional work spaces through Coworking was to stave off office politics and create an open environment. Betahouse only has so many desks (12, I believe). It makes sense that they would limit those slots to folks that would most benefit from working in close quarters, but by channeling the networking, has an environment of exclusivity been created, similar to those found in traditional office politics? This isn’t a rhetorical question, I’m really asking. If anyone in Betahouse or any other Coworking space stumbles on this post, I’d like your thoughts.

Note that I have no idea if someone would be turned away from Betahouse if they didn’t fit the typical characteristics of that crowd - and, if they did, so be it. They have every right to do whatever they want with their rental space. I just find the evolution of certain types of social networking intriguing. No matter how organic an idea begins, it’s bound to get formalized. Rules follow, opinions clash and pretty soon bloggers like me start jumping all over it.

Pals of mine recently started a Jelly in Connecticut, Jam At Work, and so far I’ve only attended one afternoon. I liked it - I actually did get some work done and had a few laughs in the process. I’m sure I’ll return in the future. I doubt, however, that I will rent a coworking space anytime soon but I won’t discount it down the road.

I could start a jam or jelly or preserves of my own. Of course, this would require me to keep my dining room table free of papers, coffee mugs and random items that seem to crawl up out of nowhere. On second thought, I’ll preserve my workspace and keep the jelly in the fridge.

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