Alpha Graphics Convention 2011 Selling Social Media

Selling Social Media

Housekeeping

• Jim Lahner, Four51

VP Mkt & Customer Support

[email protected]

• Slides available via Slideshare on FanTools Facebook page

• Booth #832

• You get paid to speak up!

Four51 Overview

• Technology company, 12 years old

• Two products, Software-as-a-Service

CommerceTools: eCommerce

FanTools: Deal Commerce

CommerceTools Customers• 32,000

customers

• 14M users

• 1,300 users added every day

• 1M orders/mo

Suggestions from Jesse

• Focus on selling social media

• Describe opportunity to make money

• Note how some centers are self-promoting on Facebook…give examples

Topics

• Why does social media matter?

• Selling social media services

What does the market look like?

Who do you target?

Where do you start?

• Wendy’s FourCrown case study

• What’s next?

Why Does Social Media Matter?

• A cultural shift is well underway

People are paying attention to different things

Expectations for interaction are changing drastically (w/ people and w/ brands)

• You can’t fight City Hall and you can’t fight Demographics

New World According to Jeff Jarvis

Give the people control and we will use it.

Companies must learn that they are better off when they cede control to their customers.

Your worst customer is your best friend…your best customer is your partner.

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New World According to…

One of the most significant challenges for many of today's small business owners is developing a strategic communications program that recognizes the game-changing impact that social media has had on the consumer/business relationship.

It's a new business environment out there. News about your company – good and bad – travels fast, and building a relationship with your customers goes way beyond simple buyer/seller transactions. Today, it's critical to recognize the role that your customers and others play in developing and maintaining the reputation of your brand.

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Kevin Cushing

Demographics: The Irresistible Force

Is There a Business Opportunity?

• What does the market look like?

• What exactly should I be selling first?

• To whom?

• Is there money to be made?

…AND MAKE MONEY

Few Businesses Claim to be Experts

• Most companies say they have yet to begin or are early

• A third are “coordinating,” which implies continued testing

20%

33%33%

10%4%

53%

Dormant Testing Coordinating Scaling & Optimizing Empowered

Source: Josh Bernoff in Marketing News. Corporate Social Evolution. 7/30/11, p.12

In Fact, Spending on Social Outpaces Knowledge…

Marketers expect to continue increases on social media spending over the next five years.

Despite the continued trend for social marketing to increase…CMOs don’t believe their social media activities are well-integrated…this suggests an urgency to utilize social media, even before a comprehensive plan is developed.

This approach is natural for such a profoundly innovative tool…Firms are in a period of experimentation and observation about social media.

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Source: Marketingpower.com, summer 2011, p.17.

The Marketing Services Opportunity

• 30M U.S. businesses need help – What should I do?

Complex new consumer behaviors

Platforms galore

Time, energy and expertise required to produce content and publish to many media channels

• 30M U.S. businesses need help – How do I extract value?

Awareness, Trial, Conversion, Loyalty

Data collection and analysis

Intelligence enables better, more valuable engagements

Start with Facebook and Fan Acquisition

• Easy meeting to get, easy conversation to have

• Could and often will lead to other services, but you have to start somewhere…

• Facebook is the big player

• Facebook fans are powerful

Spend more, more loyal

More likely to recommend a brand

Relationship can last years, through many buying cycles

Network effect

Facebook Dominance

• Other methods of online customer engagement (web site, blog, email) are still important, but…

• As of January 2011, Facebook has 600M+ active users

• Quantcast estimates Facebook had 135.1M monthly unique U.S. visitors in October 2010

• According to Social Media Today, in April 2010 almost half of the U.S. population had a Facebook account

• Facebook delivers 30% of all online display advertising

If Facebook Were a Country…

• Does Facebook create fans, or does Facebook give existing fans a stage?

more visible, audible, valuable…

• Both?

• Does it matter? Facebook is clearly a huge boost for brands that want to cultivate WOM marketing

How Do You Get Fans?

• First, you must be in the game, which means a Facebook Page

• Then, use all opportunities to add Fans (offline, online, media, personal)

• Consumers “Like” a business more for a deal than any other reason

• Once a business has the fan, they need to engage

Coupons NOT the long-term answer

Encourage and reward dialogue and sharing

The Path to Selling Social Media

• Study – your team must log the time

• Organize for success

• Experiment with your own business

• Diagnose your base and pick targets

• Get a little guy on board

• Get a big guy on board

Start Watching the Social World, then Hunt

• You need to get comfortable with social

Sign-up and USE Facebook, Twitter and Foursquare

Get a smartphone with data plan (Android or iPhone) and an extra battery

• Read Mashable and Inside Facebook

• Look and listen to local businesses using social

You can help the good, the bad, and the ugly

• Notice how businesses are trying to get you to Like their Facebook pages

Organize for Success

• Make it a priority, make it someone’s job, establish accountability

• Become the trusted advisor/expert: go on "consultative sessions," not sales calls

• Hand-pick your first targets

Chain of yogurt stores

3-location restaurant

SPCA

c-store chain (90 locations)

Amusement park

What Are Your Peers Doing?

Diagnosis: Who to Target

• Promotional businesses, inherently social

Retail, restaurant, NFP, sports/leisure

Burned by a Daily Deal service? Even better

• Look for efforts that have fizzled or common mistakes

• Look for ways to bundle services…e.g. mobile websites, QR codes, FanTools, more...

Market Segment

No Social Strategy

No Social Presence

Existing Social Strategy

No Facebook Page

Limited Social Strategy

Existing Facebook Page without Fans

Existing Social Strategy

Existing Facebook Page with Fans

SocialCharacteristics Nothing Apparent

TwitterWebsite Links

BlogsFourSquare

Yelp, etc

Broadcast OnlyNo Engagement Apps

or ContentNo Amplify

No Analytics

Active Wall ActivityEngagement App(s)

Deals/OffersAnalytics

Sales Focus

Sell yourConsultativeValue-Add

AssessImplement

Manage

Presence + Fans = Activity/Revenue

Sell the FacebookPage Outcome

Acquire, Engage, Amplify

Campaign ConsultDeal Management

Analytics

Platform Sale

Sell your Differentiated Value-

Add for Fan Acquisition

Position your existing multi media services

Maximize current Investment

Re-Sell the FanTools Platform and position your existing Multi-

Media Services

EngagementOffers/DealsIntelligenceCommerceAnalyticsReports

ProspectingApproach

Existing AcctsLocal Prospects

Traditional Marketing Buyers

Research by Traditional Spend

ValPakDex

½ Off DealsOthers/New

X-Reference with #2 Basic, awareness

research and discovery

Market Research

By MMA

By Fan Count

Area code 55404 (Uptown)no clue

no presenceclue

no presenceno clue

presenceclue

presence fans

Fusion X 1,353

Acme comedy Club x 4,169

SunWerks Tanning x 1,285

Smally's 87 Club x 1,222

Kafe 421 x 198

Longfellow Grill x 1,138

Time Out Pilates and Fitness Studio x 162

The Town Hall Tap x 1,569

Scusi x 907

Broadway Pizza x 2,603

Warehouse Winery x 162

The Original Gabes by the Park x 190

Tavern on the Avenue x 1,492

Joke Joint Comedy Club x 811

Sample Prospect Segmentation

Can You Spot the Common Mistake?

Wendy’s FourCrown Case Study

• Opportunity segment: no social strategy, no social presence, no help from Corporate

• 58 locations, 1,000 ee’s (1,800 peak season)

• Objective: develop and launch a social media marketing program focused on 15-30 year-olds

Drive traffic, emphasize dinner and evening dayparts

Create awareness of new products

Capture Fan data provide preference-based offers

Your Revenue Opportunity at Wendy’s

One-Time RevenueAssessment 20 hrs Consultation 1,900$

-needs analysis & research-goals-strategy refinement

hrs 20rate 95$ 1,900$

Implementation 15 hrs Design 1,620$ -build Facebook page 495$ -graphics and content

hrs 15rate 75$ 1,125$

Fan Acquisition 14,500$ -Print and Print Management:In-store table tents and signage 14,500$

18,020$

Recurring RevenueOngoing Program Mgmnt per month 1,500$

-Facebook page management-Deal calendar creation, execution-Weekly reporting-Monthly reviews-Fan Acq. Programs

FanTools Tech Resale per month 125$ -based on fan count-project 10,000 fans by YE-reseller revenue at MSRP

$500/mo x 25%

monthly 1,625$ annual 19,500$

1 2

Service Opportunities

• Help develop social component of overall marketing strategy

Social & online marketing consulting

• Launch components

“Listening” and Online Reputation Management

Social promotion offer creation and publication

Content management

• Socialize traditional marketing vehicles

Web site creation or upgrade, oriented for social interaction and fan acquisition

• Analytics setup, administration, reporting

Service: Social Marketing Consulting

• Conduct a half-day strategy seminar with business leaders

• Understand business goals

• Social campaign planning, including all supporting tasks and materials required:

1. Define social campaign objectives including metrics

Types: brand awareness, lead generation, customer service, build community

Each campaign type might have different success metrics

Service: Social Marketing Consulting cont.

2. Resources: who does what, when, how?

Internal people: full-time or part-time

Partner with experts

3. Voices: what is the tone or persona that the business and campaigns will use for social messaging

Establish social accounts for business

Decide how employees will use personal social accounts

4. Media: where to publish?

Decide which social platforms to publish on and engage with customers (hint: not all)

Establish accounts and workflows

Services BundlesGood Better Best

Social marketing consulting Social marketing consulting Social marketing consulting

FanTools setup Facebook Page and FanTools setup Facebook Page and FanTools setup

FanTools administration FanTools administration FanTools and Facebook Page administration

Design, write and publish 1 deal per week

Design, write and publish 1 deal per week

Design, write and publish 1 deal per week + 2 DIY deals per month

Welcome tab design (FanGate) Welcome tab design (FanGate)

Pop-up banner Pop-up banner

500 3.6" x 11" 2-sided Full Color Promotional Cards w/1 perf

$100 per month, plus Fan count based fees

$500 setup, $200 per month, plus Fan count based fees

$1,000 setup, $500 per month, plus Fan count based fees, plus printing fees

A la cart: Additional deals, additional DIY deals, custom printed pieces, website socialization, Twitter integration, staff training, e-commerce integration

What’s Next?

• Fan Acquisition through Deals is only the beginning

“Daily Deal Fatigue” is already upon us

• Engagement and Amplification are the goals

Facebook EdgeRank says: Engaging posts today lead to visible posts tomorrow

A person can go broke saving money.

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Examples of Engagement

• Wendy’s french fries in Frosty

Show PageLever data?

• Figaro’s

• Cambria

• Best pages are fresh…they acquire and engage simultaneously

The 5-5-2 Challenge

• What would your business look like if you targeted 5 retailers, 5 restaurants, 2 NFP’s

…and closed one a month for the next 6 months?

• If all 6 were half the size of Wendy’s FourCrown

$54K new one-time revenue

$4,800 new monthly recurring

Call To Action!

• Get smart on social media

Get or “dust off” your Facebook account

Join the free AlphaGraphics FanTools Sales Engine (Facebook Group)

• Get your Center on FanTools

Visit http://ag.fantools.net

It’s free too

• Segment your prospects, start with your base

• Take the 5-5-2 challenge

Thank you, and enjoy the

convention