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Posts Tagged IPO

Social media complements search and email marketing (for now)

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

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Social vs. professional graph: Are the days of separate online identities numbered?

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

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