The truth about social media (Hint: it’s not media)

The Truth About Social Media(Hint: It’s Not Media)

“History is the present. That’s why every generation

writes it anew.”- E.L. Doctorow

“The reason history must repeat itself is because we

pay so little attention to it the first time.”

- Blackie Sherrod

“The thing that has been, is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun. Is there anything whereof it may be said, 'See, this is new?' It has been already of old time, which was before us.”

- Solomon

3: of or relating to human society, the interaction of the individual and the group, or the welfare of human beings as members of society <social institutions>

4a : tending to form cooperative and interdependent relationships with others

Definition of “social:”

source: http://www.merriam-webster.com/dictionary/social and http://dictionary.reference.com/browse/media

3: of or relating to human society, the interaction of the individual and the group, or the welfare of human beings as members of society <social institutions>

4a : tending to form cooperative and interdependent relationships with others

Definition of “social:”

The means of communication as radio and television, newspapers, and magazines, that reach or influence people widely.

Definition of “media:”

The means of communication as radio and television, newspapers, and magazines, that reach or influence people widely.

Definition of “media:”

Social:“...relating... ...the welfare of human beings....”

Media:“...reach or influence people widely.”

1839posters on private property banned in London

1867earliest recorded billboard rentals

1864earliest recorded use of the telegraph for mass unsolicited spam

1880’searliest examples of trademarks as branding

1905The Univ. of Penn. offers a course in “The Marketing of Products”

1908Harvard Business School opens

1922radio broadcast commences

1940selectronic computers developed

1941first recorded use of television advertising

1950systematization oftelemarketing

1970se-commerce invented

1980sdevelopment of database marketingemergence of relationship marketingemergence of computer-oriented spam

1984introduction of guerrilla marketing

1985desktop publishing democratizes the production of print-advertising

1990sCRM and IMC gain dominance in promotions and marketing planning

1995AltaVista search launchesYahoo search launches

1998Google search launchesMSN search launches

2001social bookmarking site stumbleupon is established

2003MySpace is founded

2005YouTube and Vimeo launched

1991integrated marketing communications gains academic status

1996identification of viral marketingask.com founded

2004Facebook foundedDigg lanuched

1999opinion site epinions is established

2006Twitter founded

2002photo sharing site SmugMug set the stage for sites like Flickr and Photobucket

(Glenn video)

source: Glengarry Glen Ross - New Line Cinema

Social Media = Relationship Deepener.

• Thinks long term. • Considers this transaction to be one in a series. • Does not enjoy comparison shopping/negotiating. • Fears only “making a poor choice.” • Hopes to find an expert they can trust. • Considers their time spent shopping to be part of

the purchase price• Is likely to become a repeat customer.

Two Kinds of CustomersThe Relational Customer

RELATIONAL

Two Kinds of Customers

• Thinks short term.• Cares only about today’s transaction. • Enjoys the process of shopping and negotiating.• Fears only “paying more than they had to pay.” • Is willing to spend lots of time investigating. • Considers themselves the expert. • Hinges every transaction on price. • Is a good source of word-of-mouth advertising.

The Transactional CustomerTRANSACTIONAL

NOTE: A customer can be a Relational Shopper in one product category and a Transactional Shopper in another.

RELATIONAL

TRANSACTIONAL

One Case Study

Two Kinds of CustomersRELATIONAL

TRANSACTIONAL

Average Sale: $82Average Gross Profit: $32*Average Profit Margin: 39%

*Assuming a Cost of Goods Sold of $50 and a Markup of 100% (Keystone)

Bewareof

Averages!

Only 22% of Store Visits (5 of 23) were made by Relational Shoppers.

TRANSACTIONAL

78% of Store Visits (18 of 23) were made by Transactional Shoppers

TRANSACTIONAL

20% Traffic 80%

RELATIONAL

50% of Buyers (5 of 10) were Relational Shoppers.

TRANSACTIONAL

50% of Buyers (5 of 10) were Transactional Shoppers.

TRANSACTIONAL

20% Traffic 80%

RELATIONAL

TRANSACTIONAL

20% Traffic 80%

50% Buyers 50%

RELATIONAL

59% of Dollars Spent ($480 of $820) were by Relational Shoppers.

TRANSACTIONAL

41% of Dollars Spent ($340 of $820) were by Transactional Shoppers.

TRANSACTIONAL

20% Traffic 80%

RELATIONAL

TRANSACTIONAL

20% Traffic 80%

50% Buyers 50%

TRANSACTIONAL

20% Traffic 80%

50% Buyers 50%

60% Sales 40%

RELATIONAL

72% of Gross Profit ($230 of $320) came from Relational Shoppers.

TRANSACTIONAL

28% of Gross Profit ($90 of $320) came from Transactional Shoppers.

TRANSACTIONAL

20% Traffic 80%

RELATIONAL

TRANSACTIONAL

20% Traffic 80%

50% Buyers 50%

RELATIONAL

TRANSACTIONAL

20% Traffic 80%

50% Buyers 50%

60% Sales 40%

RELATIONAL

TRANSACTIONAL

20% Traffic 80%

50% Buyers 50%

60% Sales 40%

70% Profit 30%

RELATIONAL

BUT...

TRANSACTIONAL

20% Traffic 80%

50% Buyers 50%

60% Sales 40%

70% Profit 30%

RELATIONAL

TRANSACTIONAL

10% Advertising 90%

20% Traffic 80%

50% Buyers 50%

60% Sales 40%

70% Profit 30%

RELATIONAL

Two Kinds of CustomersMost retailers say the primary objective of their advertising is to “drive traffic.” And since traffic is weighted toward the everywhere-at-once Transactional Shopper, it’s not surprising that the majority of all retail ad dollars are spent on “Sale,” “Price-Item” and “Event” ads that target the Transactional mindset.

Hmmm...

Two Kinds of CustomersMost retailers assume the store traffic they see each day is representative of their typical customer profile and potential sales volume.

But seldom is this the case

Two Kinds of CustomersTransactional Shoppers represent a greater share of overall store traffic than of actual sales or gross profits because they tend to visit a greater number of stores in search of the lowest price.

Consequently, Transactional Shoppers represent lower closing ratios, lower average sales, and smaller profit margins.

Two Kinds of CustomersRelational Shoppers represent a smaller share of store traffic, but a larger share of sales, higher closing ratios, higher average sales, and higher profit margins.

Two Kinds of CustomersIntentionally or unwittingly, most companies target either the Transactional Shopper or the Relational Shopper.

Who have you been targeting?

• Blog

• E-mail (newsletter & auto-responders)

• Video

•White paper

• Case study

• Infographic

Tools. Nothing More.

“Is this effort to supply free information really working

for us? Is it worth it?”- Zede Donohue

“We’ve had thebest month ever!”

- Zede Donohue

“...75% of [their] business would be sourced from Facebook, Twitter and their blog.”

• Carry a notebook.

• Ask your staff.

• Create a customer advisory board.

• Host a conversation group.• (What to Write; A Content Idea Generation Workshop at 1:40p

or visiti www.shortcutblogging.com/brainstorm)

http://www.zeromomentoftruth.com/toolbox

“Your audience gives you everything you need. They

tell you. There is no director who can direct you like an

audience.”- Fanny Brice

Add a blog to your site and create loads of content.1)

Inject yourself in to your shoppers every day lives.2)

Promote your content first, your company second.3)

twitter: @paulboomeremail: paul@paulboomer.com

paulboomer.com

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