Archive for category Social media
Social media complements search and email marketing (for now)
Posted by Jose Mallabo in E-Commerce, Funny, Public Relations, Shopping, Social media on November 11, 2011
Looking at this Forrester post almost a year later feels a lot like going back to high school after your first year in college. You thought it was a good idea to visit but then you realize by the end of it — not so much.
The blog post’s conclusion is to draw your own conclusion about social media’s impact on holiday purchasing. The post meanders from having an opinion that the ForeSee research was limited to having no point of view whatsoever. How am I going to join a conversation or rebut your point of view if you don’t have one?
While there are no official rules to blogging – the universal and unspoken rule is to have an opinion.
Here’s mine: The idea of social commerce (buying stuff on Facebook) is still a pipe dream. Rather, social media can drive brand, product and deal awareness and therefore serve as a complement to a retailer’s larger search and email marketing programs.
Since this post in late 2010, LinkedIn and Groupon have gone public. Facebook’s IPO has been delayed – but will be the biggest one in the history of ever. The point being, these companies are all well capitalized, have hundreds of millions of subscribers and are not going anywhere. So industry pundits and luddites alike need to bite down on the reality that marketers will continue to throw marketing dollars at them to hock their wares regardless of whether we have any proof of a causal relationship between the social media consumption and clicking the “buy” button on a shopping site.
At 2.9% e-commerce conversion rates there is no proof needed.
While this question of “Was social media a big factor in holiday purchases?” will come up again and again over the next few weeks and months, I encourage marketers and PR people to do one thing: challenge the question.
As Augie Ray correctly points out social media is a mere infant and it will take time to prove its correlation with purchasing behavior. In the meantime it serves a lot of other organizational needs that are no less important than shopping cart clicks. Don’t get suckered into the conversation about social media and its impact on transactions because you’ve got more to attend to with your 2012 social and media dollars such as:
- Reputation management
- Product and corporate branding
- Influencer relations
- Partner relations
- Customer service
- SEO
- Issues management and crisis communications
- Recruitment and workforce engagement
While the analyst community continues to look under the hood for purchase conversion evidence, what they’re missing is that the owners of these social media programs may not at all be focused on driving holiday (or non-holiday for that matter) transactions.
Pause.
Bite down. Chew. Gulp.
And therefore, there might be some reason why the transactional or purchase conversion evidence is not to be found.
In fact, most brands and retailers I know are still investing more in tried and true search and email marketing initiatives to drive transactions and conversion online and in stores –- while using Facebook and Twitter as complements to those initiatives and for all of the other communications objectives listed above. That explains why search and promotional email remain the primary drivers for purchasing behavior for the holidays.
There. I said it.
Don’t go back to high school. But do take my poll on LinkedIn
-Jose Mallabo
Which is more influential TechCrunch or Mashable?
Posted by Jose Mallabo in Social media, Uncategorized on October 26, 2011
Take my poll on LinkedIn.
Has social media already won?
Posted by Jose Mallabo in Public Relations, Social media on August 15, 2011
Everyone wants to be on the winning team. It just takes longer for some people to see the winning.
I remember walking my first Bay to Breakers race about a decade ago. I had a very broken arm and lugged around a cast that ran from my fist to my armpit. An hour into the 7 mile race someone with a bullhorn was yelling to the masses: “The Kenyans have already won. Go home!” I laughed and limped along with the thousands of others — appreciative of the update.
Social media isn’t too different. The early adopters have been claiming victory over traditional marketing channels since Facebook and Twitter were mere puppies. Search, email and general multi-media marketing/advertising might have a few things to say about that. But if you just look at the growth of Facebook and Twitter memberships over the past year — they’re signing up more people now than they were two or three years ago — you can start to see the not-so-early-adopters getting on the bandwagon.
And that’s OK. We all can’t be died-in-the-wool Yankees, Patriots, Red Sox or Phillies fans. Someone has to get on the bus last. So grab your licensed apparel and get on the social media express. But to the newcomers to social, I’d caution you from drinking solely from the awareness pitcher. Check that box and skip ahead to finding out how social media can drive lead generation and business development — because that’s the Kool Aid pitcher the cool kids are filling up from.
It can look a little like this one that I know was used in generating ~$200 million on software/solutions business leads for an enterprise facing company with a big blue logo.
Not as sexy as a Facebook page with videos of the trendy people at your company doing fun things in skinny jeans. But it works. And it will take this kind of coordinated approach to driving business for social media to run with the Kenyans.
-Jose Mallabo
I quit Facebook
Posted by Jose Mallabo in Friends and family, Social media on July 8, 2011
Hi, my name is Jose. I make a living on social media and doing PR in the e-commerce segment. And, I just quit Facebook.
Someone light my cigarette.

Back when I was working at LinkedIn and really driving my social network activity into a professional realm, I was itching to bail on Facebook. I joined to re-connect with high school friends just before our 20th year reunion but since then had been wavering on my activity there. It just felt too icky too often. The first ick moment came when a former boss asked me about something I posted on my Facebook profile. She was lurking me.
Ick. Double ick.Two years later, 98% of my personal social networking activity is on LinkedIn, Twitter and this blog. And professionally, I manage the GSI Commerce blog as part of my job.
Reconnect with high school pals? Done.
Ongoing Facebook purpose? Unclear.
But what really tipped me over was this quote from this 2-year old Newsweek article: “When I think about all the hours I wasted this past year on Facebook, and imagine the good I could have done instead, it depresses me.” It’s basic macroeconomic theory applied to social networking. The opportunity cost of clicking through pictures of people in wonderful “look at me you’re not here” places is less time from things that matter.
I’m off Facebook. And off to spend more time on iFoster.org as a board member, other business ventures . . . and throwing baseballs to my nephew who wants to be the next Jose Reyes. If I throw enough fly balls to him maybe he’ll be the next Torii Hunter instead. Either way, last I checked I can’t throw batting practice on Facebook.
E-Mail Commerce: An Old School Beast
Posted by Jose Mallabo in E-Commerce, Social media on May 17, 2011
Look at this.
Not only is e-commerce growing – projected to hit almost $300 billion by 2015 – it is growing as a percentage of overall retail.
How? The easy and obvious answer is that people are finding shopping online easier and more convenient than going to the store.
The same analyst firm that projected this growth also did a study recently (with my current employer GSI Commerce) looking at holiday 2010 shopping data from 15 online retailers representing about $1 billion in gross merchandise sales.
One of the primary takeaways is that email and search remain the most influential channel to moving shoppers from browsing to buying. Yes, you read that right – old school e-mail can still bring it.
That inflamed a huge tidal wave of boos from the Mashable and social media faithful (I consider myself both) – but when you really dig into the numbers, study and where we are as a social media using country it really makes sense. Think about it. Most people who are the breadwinners and decision makers on discretionary spending in the U.S. have been on e-mail for 15 to 20 years. The early adopters of that group mayyyybe have been on social media networks for a 2-3 years. When you factor in the difference in dynamics between these two mediums it really makes a lot of common sense why email is still more powerful in e-commerce than social.
E-mail is very private. It’s a true 1:1 medium that we’ve been conditioned for most of our adult lives to keep to ourselves and guard with legal disclaimers like “this transmission is meant solely for the recipient and is confidential” blah, blah, blah. Email has spent the greater part of the last generation becoming the closest thing to our digital identity or our virtual Social Security Number. So, if a retailer can get to me there – odds are I’m primed to buy from them.
Social networks on the other hand are very public. Every major social network’s product settings are defaulted to share everything you do on the network. Most people rarely ever switch those settings to something other than that. So, while finding and sharing good deals on underwear, vacations and massages is great fun. It doesn’t seem likely that people like my father or middle aged buddies would show the world they’re buying these things.
This is my semi-professional opinion. I live in e-commerce and make a living as a social media guy. But kick my tires. Walk across the building in your office and show a total stranger your Facebook wall. Then hand the him your BlackBerry or iPhone and ask him to thumb through your email.
It’s this sense of intimacy with our emails that explains why Groupon and LivingSocial are growing so fast while true social networks like Facebook and Twitter are still finding their legs in e-commerce. I get into cold sweat at just the idea of even my mother reading my emails. Groupon and LivingSocial aren’t so much social commerce companies but at their core are email marketing geniuses that buy and sell local deals with the leverage of their members (that’s the social part) to push down prices for the individual consumer.
E-mail commerce. Maybe it’s not a popular headline, but email still works and will likely remain a big part of that $300 billion market. It’s no wonder why all favorite social networking sites update me on new features, product news and privacy updates on my email. I still read them.
- Jose Mallabo
Why hasn’t PR made measurement core to its function? Q&A with Forrest Anderson
Posted by Jose Mallabo in Public Relations, Social media, Work on April 27, 2011
I’ve been kicking around the idea of doing a post about research and measurement in PR for some time. Namely, I really want to ask why PR hasn’t done a better job making this core to the function when there are scads of resources on the subject. Frankly, I’m not the expert on this subject as I’ve spent more of my career creating content than measuring how it impacts the audiences its intended for. Despite having an advanced degree in this area, I’m guilty as charged. Instead I reached out to my former colleague — Forrest W. Anderson who is not just a measurement expert but one of the sharpest communications strategists I’ve been around in my career.
Below is an un-edited Q&A I had with him this week. My questions. His answers. My parenthetical interjections.
Q: What is the single most important thing people need to remember when looking to measure the impact of communications programs?
A: The single most important thing people need to remember when looking to measure the impact of a communications program is their definition of impact, which should come from the initial, measurable objectives of the program. If you’re trying to change behavior (increase sales, reduce employee turnover, etc.) you should try to measure that change in behavior. If you’re trying to change awareness and/or attitudes, you should measure changes in awareness and/or attitudes. Most likely you would do this with a pre- and post-program survey. If you’re trying to increase media coverage, then you might measure clips. If you’re trying to increase positive media coverage, then you need not only to count clips but assess the tone of the content in those clips.
Q: What is the most common mistake you see companies making in buying measurement and research?
A: To me, the most common mistake I see companies make when they do invest in measurement and research is they focus more on evaluation (or measurement) and less on the research they should do to plan the program. The first step in any program should be to articulate a measurable objective. The next step should be to do research on the target audiences and the business environment so you know what kinds of messages and concepts will appeal to the target audience, which media reach the target audience and what’s going on in the world that might affect the way your target audience will react to your intended messages. The evaluation piece is fairly straightforward, if you’ve created a solid measurable objective for the program.
The measurable objective is a big stumbling point. Without one, you cannot evaluate. This is why so many companies that invest in media evaluation systems that use online data bases are disappointed after a year of using the service. Neither the client organization nor the evaluation system vendor thinks out what the measurable objectives should be for any given program. It frequently turns out, then, that there is a mismatch between what the tool measures and what the organization wants to achieve.
Q: Communications research has been around a long time, why haven’t PR people done a better job making it core to their programs and the industry?
A: I think there are a number of reasons.
- In the past it has been expensive relative to the investment in the program, so there was a question regarding whether you should spend the money trying to get more results or measuring what you achieved. The online systems have made clip analysis less expensive than in the past, and we can also do surveys online for much less than in the past.
- Some communications professionals are afraid of what they will find out if they measure. An agency, for example, might not want its client to learn that a program had not achieved the goals the client requested or the agency promised. This is a very unprofessional point of view because there is no way anyone can improve as a professional if they do not measure the effectiveness of what they do, learn from it and try to do better. The same situation exists for some internal communications departments, with organizational executives taking the client role and the communications departments acting like agencies. Again this is too bad. There is a fair amount of anecdotal and some scholarly evidence that communications departments that do evaluate are more highly thought of by the CEOs of their companies than are those that do not evaluate.
- Last, but certainly not least, I believe many people go into public relations to avoid having to deal with numbers and numerical analysis.
(So true. I’ve lost count how many PR people have said to me “I’m not good with numbers.” Cop out. Reading cross tabs isn’t that hard. And who hasn’t had a client that was BS-ing his boss about results?)
Q: CEO’s often just want to pay for clippings and see their names in headlines, how do you get past this?
A: If a CEO is that shallow, you’re going to have a number of operational problems in the organization that probably will outweigh communications issues. These will only be the tip of the ice berg. That said, the best way I know to influence CEOs is with data. If a senior communications person believes the organization should be doing something, he or she should look for data that supports their point of view and present it to the CEO. For example, if our communications executive (CE) believes the main competitor is winning partly because of the good media coverage it is getting vs. the poor media coverage the CE’s company is getting, a quantitative report demonstrating this would be more likely to sway the CEO than just saying “I think we should do this.”
I once did a $200,000 communications audit for the U.S. subsidiary of a European owned company. The whole purpose of the audit was to demonstrate to the European owner that the U.S. subsidiary needed to invest in public relations. The study made the case and HQ supported a major increase in PR funding.
Q: Is social media helping or hurting research and measurement in communications?
A: I would say social media is confusing research and measurement in communications. What it is helping is dialog. In the past, there were very few direct communications channels open between an organization and its stakeholders, so market research gave management insight into who comprised a stakeholder group, what they cared about, what they thought, etc. However, with social media, organizations can actually communicate directly with stakeholders, assuming stakeholders wish to communicate with the organization. This is great!
The danger comes when an organization begins to believe that a handful of active users of social media users represent the entire stakeholder group. There can be a big difference between what a few vocal individuals think and what most the population thinks. So, I believe social media is a wonderful way to get some insight into stakeholder groups, but I also think we need to be very careful about extrapolating that insight to larger populations. I do not believe social media is a replacement for research.
(I agree with that. And think the hype and sex appeal of social has done a lot to distract companies from focusing on the basics — like research and measurement. People are off building Facebook pages when they haven’t even studied their core audiences to see how they interact with existing PR content and programs.)
Q: Is agenda setting theory still valid?
A: Unless I misunderstand your question, the agenda setting theory is based on the idea that the media sets the news agenda by choosing which topics to cover. Thus the news media exerts great influence over not only the topics its audience thinks about but also how the audience thinks about those topics. I’m not sure I ever completely bought into this theory, because I believe good journalists tried to choose topics that were of interest to their audiences and did some research with their audiences to determine what these topics were. So, the influencers were influenced by those they influenced.
Whether this last bit was true in the past or not, it is certainly true now. Anyone with access to the Internet can publish now, and very many do. Tools such as Twitter’s “Trending” will tell you which topics (or key words) are being discussed the most at any given time, and journalists can and do use those kinds of tools to choose the topics they cover. I would say the influenced are influencing the influencers more than ever before. However, this is just a theory. I don’t have data on this.
Q: If you could build a strategic communications program for Facebook, what would it look like?
A: This sounds like what should be a paying gig.
I told you he was sharp. It really should be a paying gig.
-Jose Mallabo
Social vs. professional graph: Are the days of separate online identities numbered?
Posted by Jose Mallabo in E-Commerce, Public Relations, Social media, Work on February 17, 2011
About 6 months ago I posted something on my Facebook account that had nothing to do with work. It was a rant about a sales guy trying to sell me something completely unnecessary for my motorcycle. Two days later, a friend on Facebook and superior at work asked me about it at work – the implication being that I was ranting about the workplace – where we ironically extolled that the social graph (or identity/profile) was and should be separate from the professional graph.
Facebook CEO Mark Zuckerberg has been emphatic about a singular online identity – which obviously paves the way for Facebook Connect to be the way people log in anywhere online. He’s quoted three times in The Facebook Effect saying: “You have one identity.”
And that…“The days of you having a different image for your work friends or co-workers and for the other people you know are probably coming to an end pretty quickly.” Further challenging the current separation of the social and professional graphs by saying: “Having two identities for yourself is an example of a lack of integrity.”
Well, we know how he feels about it.
In turn, LinkedIn CEO Jeff Weiner has maintained that the separation between social and professional graphs is vital to professionals and to LinkedIn. At last fall’s Web 2.0 Summit in San Francisco — in his “keg stand” interview — he told John Batelle:
“While many of us in college probably were at parties having a good time, doing things like keg stands, or being exposed to keg stands, I don’t know that many of us would look forward to having a prospective employer have access to picture of those events.”
Who’s right? I’m less confident in the separation between the two than I was just 24 hours ago.
At a recent Ragan social media conference I attended, Shel Holtz echoed Facebook’s stance in his own inimitable and convincing way. Of course, I Tweeted at him about this while he was presenting.
If I’m answering Shel literally, I’d say “see the first paragraph of this post.”
But I had to test this just a liiiiittle bit more. The attendees of this conference were a better cross section of U.S. professionals than the early-adopting, Banana Republic-wearing, all technology-loving dot.com crowds that populated the early social media conferences. Insurance. Federal and municipal governments. Universities. Healthcare organizations. And, even the country’s largest cemetary.
They were all in the house — represented by professionals from every generation in the workforce today.
These are people working for really big, very regulated, widely and deeply impactful organizations from never-go-away industries — all there trying to figure out where to place their social media bets and budgets. Shel’s point may be the most thought provoking point made out of all the sessions. Because none of us are over-staffed or walking around with extra dollars pouring out of our back pockets, picking one may be a choice we’re forced to make.
So I put the question to the attendee group to see what they thought about the separation or blurring of social and professional graphs. That group was on Facebook. I’ll post the comments as they come in.
I’m not a Dead Head, but as I sit here during business hours while at the dealer getting my car repaired working on a post that has benefits to both my professional and personal brand, it’s hard not to think that maybe Shel has spoken for many of us.
My car is ready. Back to the work.
- Jose Mallabo






