5 common social media marketing mistakes

Social media initiatives have become standard components of companies' marketing and communications strategies. Large or small—from the local bakery to General Motors (GM)—businesses see the value of engaging in online conversations already taking place about their brands. While social media best practices have emerged, brands still struggle with how best to engage with their consumers. Here are five common mistakes:

1. Not (or Barely) Monitoring: Companies that do not first "listen" and observe how their evangelists and detractors talk about their brand risk jumping into a cyclone of unanticipated activity. Constant monitoring is a must.

Even a well-liked Internet brand can fall victim to lack of social media monitoring. In 2009, hackers exploited a vulnerability in online retailer Amazon.com's (AMZN) site, causing all books by GLBT (Gay, Lesbian, Bisexual, and Transgender) authors to disappear. Over the course of a weekend, thousands of consumers on Twitter, Facebook, and forums voiced their concern, suspecting that Amazon had made the authors unavailable deliberately. Two days later, when Amazon made an attempt to explain the glitch, people on Twitter already had created a hashtag further ridiculing the company's ineptitude.

2. "Down-sourcing" to Interns or Junior Staff: The fresh, young digital natives at your company embody a crucial resource in helping to navigate the emerging media waters. In some cases, however, their lack of business experience could imperil your brand's "social voice."

Recently, Nestlé's (NESN) Facebook page erupted in a flame war when Greenpeace staged a protest of the chocolate maker's alleged use of palm oil from deforested areas in Indonesia. The "official" posts in response to comments were overly flippant and defensive, which only fueled the firestorm.

3. Fast Beats Perfect: In the digital world, content can spread like wildfire. Immediate, authentic, and humble acknowledgements of your brand's social media kerfuffles are not only necessary but also expected. Taking the time to craft a perfect corporate response with layers of bureaucratic approvals will only cause more damage to your brand's social reputation.

In a matter of days, the now infamous Domino's YouTube video, in which employees did some highly unappetizing things to the chain's food, erupted into a full-fledged crisis. Although the chief executive officer provided a video statement/response, some felt the company's reply took far too long. (The company has since redeemed itself with its highly successful Pizza Turnaround campaign.)

4. Faking It: If you've failed to foster and energize a legitimate set of brand evangelists, don't attempt to disguise false engagement by having employees pretend to be customers (known as "astroturfing"). It will most certainly be found out.

Earlier this year, speculation was that Wal-Mart's (WMT) local Chicago PR agency was behind a fake community support group commenting on blogs in favor of the retail store coming to town.

5. Having an "Off" Switch: Your brand's involvement in social media should never have an end date, since at its core, that involvement is about nurturing customer relationships. While campaigns that have a social media extension may come and go, you must maintain an "always on" approach and outlook.

TGI Friday's September 2009 cross-channel campaign reached its goal of winning 500,000 fans of fictional character "Woody" on Facebook. In fact, it got close to 1 million fans. TGI Friday's ended the campaign and deleted the Facebook page without those fans converting to TGI Friday's official Facebook page, losing all the social capital built up over the course of the campaign.

As we're still in somewhat of a nascent period in social media marketing, brands will inevitably make mistakes and learn from them along the way. This learning process is exciting and offers marketers some unique opportunities to connect directly with consumers. At the end of the day, brands must earn their "social currency." There are no shortcuts or substitutes to authentic engagement in the realm of social media.

Facebook Fans Spend More Money!

Facebook-money


A social media marketing company called Syncapse surveyed 4,000 people who have “Liked” the top 20 brands that have pages on Facebook and figured out exactly how valuable those “fans” are. The study (“The Value of a Facebook Fan: An Empirical Review”) estimates that someone who has Liked a brand will spend an average of $71.84 more each year on that brand’s products or services than will someone who has not Liked it on Facebook, for a total average annualized value of $136.38. The study demonstrates that people who become fans of brands are more likely to spend and evangelize.

How Consumers Interact with Brands on Social Networks

Consumers do want relationships

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The social networking audience in the US has reached critical mass. eMarketer estimates that 57.5% of all US Internet users, or 127 million people, will use a social network at least once a month in 2010. By 2014, nearly two-thirds of Internet users will be on board.

Marketers have been chasing this audience for several years, but the question remains: Do consumers notice, or care?

“Those who still think that social network users are too busy engaging with friends to notice marketers must change their viewpoint,” said Debra Aho Williamson, eMarketer senior analyst and author of the new report “Brand Interactions on Social Networks.” “Brand interactions are real, valuable and growing. “

According to a February 2010 survey by Chadwick Martin Bailey, a market research firm, 33% of Facebook users have become fans of brands on the network.

US Facebook Users Who Are Fans of Brands on Facebook, February 2010 (% of respondents)

Another survey, by Edison Research, found that 16% of social network users had friended brands there. And half (51%) had done so on Twitter.

Coupons remain a leading driver of brand interactions in social networks. Learning about sales and new products is also a strong motivator for people to interact with companies in social media. Beyond the tangibles, such as coupons, consumers do gain positive feelings about a brand as a result of their interactions.

Still, social networks are not seen as primary research sources when consumers are looking to buy. Although people are very inclined to take advice from friends and family about products they are interested in, they are not nearly as likely to seek out their social network friends when they are researching online.

According to a study by PowerReviews and the e-tailing group, only 3% of online buyers said they sought recommendations from social network friends first, compared with 57% who started with search engines.

Sources Used to Begin a Search for Information on Branded Products* According to US Online Buyers**, March 2010 (% of respondents)

“More than half of all Internet users now use social networks, and the percentage of social network users who talk about companies, either in organic conversations or on branded company pages, is growing,” said Ms. Williamson. “Consumers do pay attention and they do value positive interactions with companies.

“But while people trust their friends for advice and use social networks as part of their research process, social networks are long way from replacing search, if they ever will, as a source of information leading to a purchase.”

Pringles is The Most Popular FMCG Brand on Facebook

GLOBAL - Pringles has topped Cream's Facebook Advocacy Index for FMCG brands, with a weighted fan population of 5,800,300.

Online intelligence service Cream (www.creamglobal.com) compiled a list of the top FMCG brands as they ranked by fan pages in Facebook.

The number of official fan pages was tallied along with 'unofficial' fan pages for the ranking, with the number of 'hate' pages factored in as a negative in the scoring. Members of unofficial fan groups, set up without any influence from the brand, were weighted higher than official members. The top 10 was dominated by big food/drink owners P&G, Unilever, Kraft, Coca Cola and Nestlé with brands: Pringles, Cadbury, Milka, Ben & Jerry's, Dr. Pepper, Kit-Kat, Sprite, Nescafé, Lynx and Old Spice.

Cream editor Olivia Solon explains: "At Cream we analyse the most innovative marcomms from around the world, and noticed that increasingly brands use their achievements on Facebook as a ROI benchmark for their campaigns. What was missing was context for their achievements - how many fan pages could be considered good, average, or down right amazing? Our Facebook Advocacy Index benchmarks the popularity of these brands. Many of the higher ranking brands in Cream's index reflect the brands' success in harnessing the power of social media - almost all of the top 10 have rolled out specific campaigns to increase their influence in Facebook and increase their connection with their customers."

The prime example is Pringles who, in Australia, invited Facebook users to create their dream party - choosing a venue, a modular band, and 100 of their friends as guest. The app created a Flash clip of their ultimate party and users could post the film to their page. Other users could comment and vote on the party - or create what they thought would be a better party.

Pringles actively engaged in consumer conversations on the fan pages, and gave away free music downloads as spot prizes. This proactive approach led the Pringles Australia fan-page to become the number one Facebook Fan-Page in Australia with more than 266,000 fans. It then went viral across the Facebook universe, delivering the Pringles message to 7.1 million Facebook users, the total Facebook Australia population at that time. Pringles experienced a massive 200% leap in sales within two weeks at key retailers during this time period.

The Top 20 in Cream's Facebook Advocacy Index, FMCG brands:

Facebook_advocacy

Methodology: We added the number of fans of official Facebook pages to the number of unofficial Facebook fans.To get a copy of Cream's Top 50 Facebook