Selling Social Media
Housekeeping
• Jim Lahner, Four51
VP Mkt & Customer Support
• 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