BarnRaisers

The Wall Street Journal, in a recent article, Avon Is Late to Social Media’s Party, reported sales for cosmetic products have steadily moved online to sites like Sephora.com, Beauty.com and Drugstore.com. This has contributed to a -75% decline in operating profit for Avon and their 5.8 million sales representatives that sell door-to-door over the last decade.

Recently, Warren Buffet and Coty made a move to takeover a company in crisis.

I feel bad whenever 1-to-1 relationships are replaced by computers. Even though WSJ says  Avon is late to “Social Media’s Party,” I don’t believe  it is. Social media is not about being early or late; it’s there for any brand that is willing to join.

So I called my good friend and social media colleague, Toby Bloomberg, founder of Diva Marketing and co-writer of this blog post and said: “Let’s put our heads together. What can we do to help Avon out?”

Here’s what we came up with; 10 actions Avon should take to Social Media party.

1. BUSINESS STRATEGY: Of any brand, Avon has one of the most powerful social business strategies available. They have a brand community of  5.8 million reps. There are great examples of brands that put their community to work and turned their business around. Take for example, Harley Davidson. This may seem like an odd comparison but stay with us.

On the brink of bankruptcy in the 1970′s, Harley Davidson overhauled their business to realize their most valuable asset was their riders. In other words, the people were even more important than the product so Harley: 1) Spoke to the shared interest of their community before product benefits 2) brought advocates together and let them help build new relationships. Avon needs a business strategy, not a social media strategy. Now, here’s what they can put it to use.

2. “AVON CALLING” ONLINE COMMUNITY: Avon’s famous slogan could now be a live, online community where their sales reps offer daily advice about Avon products, deals, help customers with a cosmetic question, refer someone to the Avon rep in their area and talk about who they are as people (e.g. where they like to go on vacation). By the way, this is what Harley does daily at HDTalking.com, a customer created content community of close to 400,000 members. P&G also has a highly successful online community, Being Girl, for their Tampax and Always brands that has achieved a 4-to-1 ROI over traditional channels. Avon even has a online community in the UK, Avon Connects, demonstrating they are not late to the party, they just have to invite the rest of the world to their party.

3. “LIKE” US ON FACEBOOK (AND SEE WHAT HAPPENS): Every brand wants you to “Like” them and Avon has a pretty robust but commercial Facebook page that 660,000 people already like. They could use their sales reps more and show a human side. For example, Kraft Macaroni & Cheese, recently produced a video called “Likeapella” to celebrate the people who like them. Not to suggest that Avon do the same thing but to make the point that major brands need to use social media to make a more personal connection. Here’s what Kraft did.

4. AVON CUSTOMER APPRECIATION DAYS (VIA TWITTER SEARCH): If Avon representative wanted to build 1-to-1 relationships in larger venues, they could go to high traffic locations in their area like a mall; then, if they use Twitter Search, they could find other women in the same mall and begin a conversation the very same way with the very same techniques they use when selling door-to-door.

5. KLOUT PERKS: With 5.8 million sales reps, they must have a very large number who have high Klout scores. Why not demonstrate to how powerful they already are in social media. Put this social influence to work and see how many rewards Avon reps can get through “Klout Perks.” This would show how much social influence sales reps already have.

6. AVON PINTEREST: The newest darling of the social networks, Pinterest, aligns with Avon’s targeted female demographic. Online products provide Avon with the base for creating a Pinterest page that has multiple benefits from reinforcing community with boards that highlight new and seasonal products, provide lifestyle the “Avon way” with beauty to showing the caring side of Avon through its nonprofit work. In addition, likes, repins and comments offer Avon new consumer insights.

7. AVON PINTEREST CONTEST: Taking Pinterest one step further is the idea of a “Pin It To Win It” contest. Avon has the opportunity to engage with its customers in creative ways that engages both customers and sales representatives. For example, many of Avon’s products are colorful from its nail polish to lip glow. A red, white and blue Fourth of July themed challenge could create fireworks of fun.

8. AVON SALES REP SOCIAL MEDIA TRAINING: Avon has created an innovative online training program, Beauty of Knowledge, for their sales reps. Topics range from how to start your new Avon business to money management, logistics, goal setting and traditional marketing support. However, in my research I came across sales reps who had posted on social networks the need and their desire for social media courses to be included in their training. Although Avon sales reps are currently involved in social media many are still have challenges on how to start and/or how to take their initiatives to the next level. In addition to the training we suggest that Avon consider developing a series of template models for Twitter, Facebook and blogs.

9. AVON MOBILE APP: Smart phones and tablets have opened additional eCommerce channels and created new ways to engage with customers. With the ubiquity of smart phones branded apps continue to grow in popularity. Research conducted by Women at NBCU’s Brand Power Index found that women are more likely to have gaming apps on their smart phone (75%of women versus 67 % of men). What fun it would be for Avon to explore developing a gaming app and of course, a mobile commerce app.

10. SOCIAL MEDIA MEASUREMENT: Including social media as part of a marketing communications strategy can help accelerate achieving your goals. However, with so many moving pieces, Avon doesn’t need more measurement, they need to identify the ones that matter, their Key Performance Indicators (KPI’s), and report, track and be prepared to take action on them.

Maybe, if Avon follows this plan, it would let Warren Buffet and Coty know just who they’re dealing with.

Some great brands have turned their business around when they realize their community is their strongest brand asset. Do you think these actions to join the Social Media party would help Avon and their 5.8 million sales reps turn their business around?

Buy it or build it?

This is a primary question that involves thought for any business. As it relates to marketing, there’s no shortage of ways to buy it from ads to affiliate relationships to list buying.  But with social media, you build it. And it often comes with a better return on investment because you’re taking out the middleman and building a more direct relationships with your customers.

Want proof? Here are 9 case studies where social media took out the middleman.

1. CLEVELAND CLINIC: Heavily regulated category like healthcare usually shy away from social media but not the Cleveland Clinic. By structuring a cross-functional team to enable education, collaboration, and smart governance, the Cleveland Clinic deepened engagement with its consumers around the globe – both providers and patients. They used Facebook and Twitter for daily wellness tips; LinkedIn for professional recruitment and YouTube for content on diseases and patient stories. Since the Cleveland Clinic established social media as a cross-functional discipline, it has seen a noticeable increase in website traffic, attendance at health lectures and new patients making and keeping appointments.

2.  EDIBLE ARRANGEMENTS. Through their Facebook page, Edible Arrangements offered consumers a voucher for free chocolate dipped strawberries. But to redeem the coupon, fans had to visit an Edible Arrangements store providing Edible Arrangements franchisees the opportunity to promote their store to a slew of new customers. This campaign  generated 170,000 new fans and a double-digit increase in sales versus year ago.

3. FOILED CUPCAKES: Has shown extraordinary growth, strong ROI and built a social community where 95% of their customers come from Facebook, Twitter and LinkedIn. When Foiled Cupcakes had their first Groupon promotion, the promotion went live at midnight and fans bought 800 dozens by 8 am.

4.  HARLEY DAVIDSON: (HDTalking.com): Harley owners created a website and social community of over 3 million Facebook fans and 62,000 Twitter followers that runs entirely on user-generated content.  Here, Harley owners trade photos, jokes, where to find hard to find parts, advice on Harley models and ownership plus there are at least 7 mechanics on-call at all times.  HDtalking.com now has 58,000+ Harley owner participating and cost to Harley for operations is negligible.

5.  H&R BLOCK: Used Facebook and Twitter during the tax season to provide immediate access to a tax professional for Q&A in the “Get It Right” social media campaign.  The effort secured 1,500,000 unique visitors and answered 1,000,000 questions for a 15% lift in business versus the prior year when there was no social media “Get It Right” program. Here’s how Amy Worley explains how the company got it right.

6. IBM: Let employees set up internal blogs to promote collaboration and innovation within the company on a global scale. There was no external blog and no pressure on employee to participate in internal blogs but but there were 17,000 internal blogs, 100,000 employees participating regularly and as many as 500,000 participants involved in company crowd-sourcing “jams.”  Crowd-sourcing identified the 10 best incubator businesses, which IBM funded for $100 million and generated $100 billion in total revenue for a 10-to-1 ROI with a 44.1% gross profit margin.

7. MELROSE JEWELERS: An eRetailer sold high end watches like Rolex and Breitling where the average sales is $5,000. They offered consumers $100 off on their next purchase if they “Like” them on Facebook. They had an app on their Facebook page that functioned as a simple quiz where, after taking the quiz your “watch personality” was revealed at the end (e.g. you are James Bond 200o Breitling man) to engage and secure email addresses of potential customers. You also got $150 off after your purchase if you took a picture of your new watch and posted it on Facebook.  As a result, Facebook fans went from 30,000 to over 180,000 in one quarter and sales went from a few hundred thousand to over $2,000,000.

8. PRETZEL CRISPS: Launched a$1.00 coupon on their Facebook page. Within 36 hours, their fan base grew from 5,000 to 12,000. So, they launched another coupon – Buy One, Get One Free. Only this time they didn’t tell their fans. No matter. Fans found out on their own and the “letting you in on a secret” factor had a viral effect that built the fans from 14,000 and 29,000 and now it’s at over 62,000. But fans just tell one side of the story.  The redemption rate for the fist coupon was 87%; the redemption rate for the second was 95% and annual sales increase was 93%.

8. SETON HALL UNIVERSITY: Was discovering that prospective students went to their Facebook page before their website to find out whether this was the right school for them. So, they engaged on Facebook to increase enrollment and revenue and tagged whether Facebook played a role. Tuitions increased +18% and deposits increased +25% with 2X as many students coming to website from Facebook.

9. TORTILLALAND: Found social media was a great resource for building a database and conducting market research with consumers for their fresh, uncooked tortillas. In the space of a few months, they ran a sweepstakes; then, a free coupon on Facebook that created a database of over 14,000 and insights into target consumers through survey research. They built brand assets that would have cost 100′s for thousands of dollars through suppliers for a very small fraction of that amount.

When developing your brand’s growth strategy, will you buy it or build it and take out the middleman?

“How do I measure social media return on investment?” This is the #1 question over 3,300 marketers ask Social Media Examiner every year in the Annual Social Media Marketing Report.

Pictures, however, tell a different story. The first one below from Google Trends measures the year-to-year change in search volume for the phrase, “social media marketing,” which is increasing significantly.

But the second, from econsultancy, says what isn’t increasing is marketers measuring Social Media ROI, even though they say it’s their #1 priority. Hmm…

According to Marketing Sherpa, the top reasons that marketers use to explain this behavior are:

• Lack of knowledgeable staff
• Inability to measure ROI
• Management resistance
• Technical complexity

To help, here are 8 steps to demystify Social Media ROI.

1. BEGIN WITH THE END IN MIND: Since it’s called return on investment, begin by identifying the return you want at the end. Define and quantify your expectations. For example, do you want to: 1) Increase sales by 50%, 2) shorten the purchase cycle by 1/3, 3) double leads, 4) increase conversion by 40% or 5) decrease customer complaints by 75%.  Be as specific you can be at the start; it increases the success you have measuring ROI at the end.

2. IDENTIFY WHO TO ATTRACT: Social media is one of the best channels for building 1-to-1 relationships. Take the time to identify who you want to attract and find the social networks where they spend their time. There are are great tools to help you. For blogs, there’s Technorati and Alltop. For Facebook, there’s Your Openbook and Booshaka. For Twitter, there’s Twitter Search and Kurrently. Just go to the search box in any of them and type in the product or service you offer. In fact, put the words, “buy” or “need” in front of it and you’re one step closer to a 1-to-1 business relationship.

3. FIND OUT HOW THEY FIND YOU: As you succeed with who you want to attract, your audience is going to want to find out more about you. The first place they are going to go is your website which should have an analytics tool like Google Analytics. Look at your “Traffic Sources:” then, look at “Referral Sources” to see which social networks provide the greatest number of visitors. Assess if this is in line with the social networks where you spend your time and resources.

4. ESTABLISH YOUR VALUE EXCHANGE: Companies ask that you “Like” them on Facebook. Ok. Now what? This chart below tells you consumers are motivated to “Like” you if you show them some “Love,” first.  It also tells you, if you take this step, they show their support for your brand in return. If you need some help showing some promotional “Love,” Wildfire offers some great social media apps that are effective, affordable and make the value exchange easier for you to execute.

It’s been said we watch the Super Bowl as much for the commercials as the game. Maybe that helps explain why this year advertisers, on average, paid $3.5 million (+$500,000 versus last year) for a :30 commercial.

This year’s Super Bowl reached a record 111.3 million viewers; 300,000 more than last year, the previous record holder. Social media proved commercials were the most talked about topic according to Networked Insights.

Super Bowl commercials don’t sell products so much as entertain, often with great storytelling. Even considering the cost, a primary benchmark for success is the Water Cooler Factor, the brand buzz and many conversations that occur after the game that cause us to like the brand and keep it top-of-mind throughout the year.

Super Bowl commercials are measured mostly by media metrics – Reach, GRP’s and Nielsen Ratings.  But, because “Like,” “Buzz” and the Water Cooler Factor are success metrics, shouldn’t social media measurements play an important role?

Here are 7 social media measurements that matter for Super Bowl commercials.

1. USA TODAY/FACEBOOK AD METER: This year, for the first time, USA Today and Facebook teamed up to create a People’s Choice award for Super Bowl commercials. People rated commercials by logging into their Facebook account on a 1 to 5 scale. Here was the people’s top choices for 2012 and the commercial voted #1:

The image above is of one hand clapping. Perhaps it’s coming from the marketing plan that relies on only one type of media.

It makes sense social and traditional media would work better together but, as with any new form of marketing, social media has more to prove so the two are sometimes compared as if they were in competition.

Here are 12 case studies that prove social and traditional media were meant to work together.

1. CLEVELAND CLINIC: Was not the first in healthcare to experiment in social media, but it achieved success where others failed. By structuring a cross-functional team to enable education, collaboration, and smart governance, Cleveland Clinic deepened engagement with its consumers around the globe – both providers and patients. They used Facebook and Twitter for daily wellness tips; LinkedIn for professional recruitment and YouTube for content on diseases and patient stories. Since the Cleveland Clinic established social media as a cross-functional discipline, it has seen a noticeable increase in website traffic, attendance at health lectures and new patients making and keeping appointments.

2. CLOROX: Used traditional media to communicate the many uses for bleach in the home but supplemented with social media to encourage usage in places outside the house. Clorox launched an online community, CloroxClassrooms.com, with blog and Twitter effort on Labor Day weekend at the beginning of the school year.  The Twitter page was among the Top 10 trending topics over Labor Day weekend and the blog was recognized by the Marketing to Mom Coalition and mommy bloggers for excellence in terms of delivering sharable information.

2. COCA-COLA: Used social media strategically and achieved the strongest global marketing integration ever with Expedition 206, a social media promotion where a small group of travel ambassadors went to 206 countries over 365 days to “generate happiness” and published on social networks.  It enabled global promotion execution and integration among 3,500 Coca-Cola marketers around the world.

4. COLGATE WISP: Changed the target for the launch of a new, disposable toothbrush, from the traditional Moms to young, urban men and women 18-25 who were active daters. They supplemented the traditional media plan with 8 ”Be More Kissable” viral videos. They created a Facebook App called “Spin the Wisp” and partnered with 8 online publishers. The videos received over 4.1 million views and the App was downloaded over 40,000+ times. Colgate learned the value of engagement because Colgate’s U.S. market share in the toothbrush category increased 5.6 points to a record 35.6% driven largely by the Wisp.

5. FORD FIESTA: Gave 100 consumers a car for six months and asked them to complete a different mission every month. At the direction of Ford and their own imagination, “agents” used their Fiestas to deliver Meals On Wheels. They used them to take Harry And David treats to the National Guard. They went looking for adventure, some to wrestle alligators, others actually to elope. All of these stories were then lovingly documented on YouTube, Flickr, Facebook, and Twitter. Fiesta got 6.5 million YouTube views and 50,000 requests for information about the car—virtually none from people who already had a Ford in the garage. Ford sold 10,000 units in the first six days of sales. The results came at a relatively small cost. The Fiesta Movement is reputed to have cost a small fraction of the typical national TV campaign.

6. FRITO-LAY: Launched “What’s You Flavor” contest, as part of an integrated campaign, where social media was used as the vehicle for consumers to capture the diverse flavors and the diversity of people’s imagination in India. It leveraged the Frito Lays brand as a household name in India in a way that connected emotionally. The campaign attracted more than 500 press coverage worth 54 crores, the biggest in Frito Lay India’s history.

7. H&R BLOCK: Has learned in the weeks prior to April 15th, every question that is not answered immediately is a lost sales.  Tax preparation is a highly seasonal business.  H&R used Facebook and Twitter to provide immediate access to a tax professional for Q&A in the “Get It Right” social media campaign.  The effort secured 1,500,000 unique visitors and answered 1,000,000 questions for a 15% lift in business versus the prior year when there was no social media in the marketing mix.

8. HARLEY DAVIDSON: (HDTalking.com): Harley owners created a website and social community totally funded by users and user-generated content.  Here, Harley owners trades photos, jokes, where to find hard to find parts, advice on Harley models and ownership plus there are at least 7 mechanics on-call at all times.  HDtalking.com now has 56,000+ and cost to Harley is negligible.

9. HOULIHAN’S: Showed that social media drives ROI for small businesses. The restaurant showed that social technologies can be used in different ways to drive customers. Houlihan’s in the U.S.has around 100 restaurants, compared to their main competitor Applebees, which has over 2,000. With a small marketing budget, their marketing manager managed to drive sales directly from a private social network, run via Ning. The network was called ‘HQ’ and was launched in early 2008. By combining their social media campaign with email marketing, they managed to quickly build up 10,000 members and estimated that “7,000 to 13,000 people heard about our newest promotion because of an HQ member”. This shows the strength in running your own social network and how sometimes a private network may be the way to go, to offer people exclusivity and also encourage word of mouth.

10. JETBLUE: Started a Twitter account to have more direct relationship with customers and to listen and respond how they could serve them better and deal directly with any complaints.  They now have over 1.6 million followers.

11. MTV: Premiered Skins — an Americanized version of the acclaimed British teen drama. In addition to traditional media and Skins.tv, a central community regularly updated with content (including trailers and sneak peeks), a Tumblr blog – we are skins, Twitter handle –@skinsTV and a Facebook Fan Page, MTV used a number of innovative social apps to develop awareness and brand affinity for the show: Skins drew 3.26 million total viewers, outperforming the launches of competitive scripted shows across both cable and network in its core demo (12-34), including CW’s “Gossip Girl” and ABC Family’s “Pretty Little Liars.”

12. OLD SPICE: Managed to gather some pretty impressive stats that show the money where the buzz is. The reach of the Old Spice campaign is not in doubt, but did it actually impact sales? Since the original campaign launched with ‘Mustafa’, sales increased by 27% year on year. But in the 3 months after the height of the campaign, sales were up by 55%, reaching 107% in the final month of the social media campaign. And of course, Old Spice is now the #1 body wash brand for men. However you choose to look at the campaign, these figures stand up to show that a social media campaign, well executed and combined with traditional media, can drive significant ROI.

Do these case studies prove social and traditional media work better together to you?