Socialnomics E-Book

Erik Qualman

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 570

Veröffentlichungsjahr: 2012

Beschreibung

The benchmark book on to the effects and implications of social media on our daily lives, and how businesses can harness its power Socialnomics is an essential book for anyone who wants to understand the implications of social media on our daily lives and how businesses can tap the power of social media to increase their sales, cut their marketing costs, and reach consumers directly. In this revised and updated second edition, author Erik Qualman presents new material based on meeting with 75 Fortune 1000 companies, 50 colleges and universities, and over 100 small businesses & non-profits since the first edition. Qualman's materials have been used from IBM to NASA to Harvard to local businesses. * Lists the top ten easy opportunities that companies and organization miss when it comes to social media * Describes where social media should reside in an organization and the necessary building blocks for success * Explains why over 50 percent of companies still block social media to their employees and why this is a detriment to success * Shares proper training methods for your ENTIRE organization on social media; not just the chosen few * Reviews the top companies, organizations and individuals using social media, explaining what separates them from other companies and how to replicate their success Social media can transform your business and your relationship with consumers. Discover what social media can do for you, and what you can do for others while using social media.

Leseprobe

Table of Contents

Praise for Socialnomics

Title Page

Copyright

Foreword

Acknowledgments

Social Superstar Support

About This Book

Introduction

Chapter One: Word of Mouth Goes World of Mouth

Is Social Media Just a Fad?

Who Cares What You Are Doing?

JetBlue Helps Reduce the Travel Blues via Twitter

Foreign Friends Are Not Forgotten

Search Engines and Social Media

We No Longer Search for the News—It Finds Us

Newspapers and Magazines Diminish in Power

Playboy and the Sports Illustrated Swimsuit Issue Are Stripped Down

Idaho Bloggers Are Better Than New York Reporters

Not All Bloggers Are Bad

Crowd-Sourced Information

A Touch of Bacon Salt on Your Social Media

Micro Revenue Streams Huge for Social Media

Dancing Matt—Something to Chew On

Flying the Not-So-Friendly Skies

Chapter Two: Social Media = Preventive Behavior

Staying in Touch with Your Teenagers

Preventive Behavior for Business

Chapter Three: Social Media = Braggadocian Behavior

Just Do It, Did It

Social Media Is the New Inbox

“Are You on Facebook?” Is the New “Can I Get Your Phone Number?”

Deep Dive into Dating 101

Assess Your Life Every Minute

Millennials—All about Giving Back

The Next Generation Can't Speak

Consumers Own Your Brand

Kids Ages 2 to 17 Don't See Advertisements

Turning Lemons into Lemonade with Fizzle

Chapter Four: What We Can Learn from Politics

You and YouTube

Open Those Closed Doors

Can Google Predict the Next President, Product Trend, or Flu Outbreak?

Is the Flu a Virus or Just Simply Viral?

Digital Data: The New Exit Poll?

Capturing Geographic Interest and Intent

Fireside Chats and Presidential Texts

Is the White House More BlackBerry or Mayberry?

Free Pancakes, Anyone?

Social Media Creates and Solves the Problem of Long Voting Lines

Online Voting—The Future Is Now

Even the Army Is Sharing Information

Chapter Five: I Care More about What My Neighbor Thinks Than What Google Thinks

Buying the Right Child Car Seat

Minivan or Hybrid?

Blowing Out the Candles

Bon Voyage, Online Travel Agents?

Looking to Friends for Medical Advice

Jared and Subway's Almost Missed Opportunity

The Choices We Make

Marketing to Zombies

Leveraging Success

Companion Credit Union: New Logo

E-Readers/Tablets

Where in the World Is Bangladesh?

Chapter Six: Death of Social Schizophrenia

Even Football Players Need to Calm Down

Be the Best at Something, Not Everything

One Message

Referral Program on Steroids

Chapter Seven: Winners and Losers in a 140-Character World

Does ESPN Have ESP?

Stop the Charade—Nobody Is Perfect

Free Labor

The Tom Sawyer Approach

Everybody Wants His or Her 15 Minutes of Fame

Become a Modern-Day Pied Piper

Everybody Is Twittering, but Is Anyone Listening?

TV Repeats Mistakes of the Music Industry

NBC Earns Fool's Gold in the Olympics

TV Shows Viewed through the Internet

Adjust Shows Based on Fast-Forward Behavior

Scrabulous—A Fabulous Example

Advertising within Social Networks Is Actually Effective

Content and Conversation Will Drive Awareness—Not Advertising

Don't Put All Your Eggs in One Basket

Second Life Equals Idle Life for Coca-Cola

Search Engine Optimization for Facebook

John Deere Mows Over Facebook

Sheep without a Shepherd

Chapter Eight: Next Steps for Companies and the Glass House Generation

Power to the People

Customers Get Paid for Their Search Efforts

Join Them Before They Beat You

Role of Search

What Happens When the Internet Advertising Structure Collapses?

Where Have All the Banners Gone?

Search Engine Results Are Still Prehistoric

Paid Search Relevancy Dilemma

Oral Communication Skills Decline

Is the Journalistic Interview Dead?

Mobile Me

Field of Nightmares: Lufthansa and American Airlines

A Truly Interconnected Web?

You Don't Find a Job; It Finds You

Hiring the Internet Generation

Tony Tweets

Southwest Is No Ding-a-Ling

Chapter Nine: Social Media Rolodex and Resources

Additional Digital Thought Leaders

Others Who Inspire

Resources

Chapter Ten: Social ROI

What We Can Learn from Footloose

Wasting Time on Social Media Actually Makes You More Productive

Company Restrictions on Social Media

Social Media Return on Investment (ROI)

Eye-Opening Statistics

Chapter Eleven: Social Success Secrets (Give Them to Me Now!)

Top Opportunities Missed by Most (But Not If You Read This!)

Chapter Twelve: Blogging: What Works

Content That Works

Top Three Blog Platforms

Blog Search Engine Optimization (SEO)

Chapter Thirteen: 100+ Social Media Tools

Random, Must-See Social Media Tools

Marketing

Monitoring and Intelligence

Social CRM

Management

Blogs and Websites

Agencies

Other/Miscellaneous

Chapter Fourteen: Making Viral Videos

Chapter Fifteen: Social Media for B2B

B2B Customer Relationships Are Often Fewer and Stronger Than B2C Relationships

B2C Company Clients Often Aren't Competitors

Listen First

Tips for B2B Social Success

Chapter Sixteen: Case Studies

Chapter Seventeen: Social Analytics: Big Data and Beyond

Chapter Eighteen: Social Organizational Structure

Chapter Nineteen: FAQs

Chapter Twenty: Teacher and Company Resources and Exercises

Socialnomics Summary

Socialnomics Winners and Losers

About the Author

Index

Praise for Socialnomics

“People with a passion for something can be infectious. It's obvious that Erik Qualman's passion is social media.”

—Dan Heath, New York Times best-selling author of Made to Stick and Switch

“[P]eople are hot for social mediaErik Qualman, who has written a book called Socialnomics, says it's about listening first, then selling.”

—Forbes

“The social media revolution has raised new and important questions and is now interwoven into our lives. Whether you are an executive, a parent, or a basketball coach, Qualman's Socialnomics is a great guide for these issues.”

—Tom Izzo, basketball coach of Michigan State University

“Erik Qualman has been doing his homework on the social media phenomenon.”

—Huffington Post

“In Socialnomics, Qualman brilliantly prescribes that the key to social media success is doing rather than deliberating. This is a must read for anyone trying to leverage the social graph rather than be squashed by it.”

—Steve Kaufer, CEO, TripAdvisor

“The day I met Erik, I met his mom. You learn a lot about someone from how they treat their moms. Erik is a trustworthy guy.”

—Chris Brogan, New York Times best-selling author of Social Media 101 and Trust Agents

“Qualman is to social media what Deming is to quality and Drucker to management.”

—Scott Galloway, professor of marketing, New York University Stern School of Business, and chairman, L2 Think Tank

“Erik Qualman has a very bright future.”

—Angelo Pizzo, award-winning writer and producer of Hoosiers and Rudy

“Social media isn't just for the next generation—it's for every generation. Whether you're an entrepreneur, a media professional, a college student, or a mom, social media will shape your future. Don't be overwhelmed by it; read Qualman's book instead.”

—Jane Wooldridge, award-winning journalist, Miami Herald

“Social media is one of the most popular activities online today offering opportunities for both businesses and individuals to connect with a new audience. Qualman's book, Socialnomics, helps readers understand this emerging behavior.”

—Chris Maher, president, Hitwise

“Marketing is experiencing a profound paradigm shift. In the old paradigm, marketers controlled the conversation with consumers through commissionable media—television, radio, newspapers, and magazines. In the new paradigm, marketers risk being marginalized in the electronic dialogue now taking place real-time. Erik Qualman's Socialnomics offers valuable insights that will help marketers in regaining control in the perplexing world of modern communications.”

—Dr. Eli Cox, marketing department chair, McCombs School of Business

“Marketing and research are just the tip of the iceberg when it comes to tapping the wonderful world of Socialnomics. Social media is so powerful that we've seen it drive spikes in search behavior on Google. Qualman's book will provide you with a navigational map and allow you to prioritize your social media initiatives.”

—Kevin Lee, CEO, DidIt

“Qualman makes a powerful case that social media has forever changed the way we live and do business. Socialnomics helps make sense of it all.”

—Dr. Stuart Levy, professor, George Washington University

“If you need to know digital/social media in business, then you need to know Erik Qualman.”

—William Hawkes, PhD, CMO, AmericasMart

“Right now an online conversation is happening about you, your brand, and the things you care about. Erik Qualman's book—Socialnomics—will help you and your organization join and benefit from that conversation.”

—Harry J. Gold, CEO, Overdrive Interactive

“We live in a world where engagement with your consumer is critical. The one-to-many paradigm is gone. Are you prepared? If not, this book is a must read.”

—Robert J. Murray, CEO, iProspect

“Qualman's intelligence on social media is a necessity for business and individuals. A ‘Socialnomics Strategy’ should be put in place for every person and company.”

—Todd L. Young, president and CEO, ProspX, Inc.

“I am convinced Qualman can contribute to driving change toward embracing and utilizing social media with any size of company in literally any business.”

—Bjorn Ulfberg, vice president of marketing, Nokia

“Qualman's lively presentation fascinated the audience, and the messages were a great start for our FTTH conference alongside the prime minister of Portugal.”

—Dr. Hartwig Tauber, director general, FTTH Council Europe

Cover design: C. Wallace

Copyright © 2013 by Erik Qualman. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Qualman, Erik, 1972–Socialnomics : How Social Media Transforms the Way We Live and Do Business /

Erik Qualman.— 2nd Edition.

pages cm

Includes index.

ISBN 978-1-118-23265-1 (pbk. : alk. paper); ISBN 978-1-118-28407-0 (ebk);

ISBN 978-1-118-28278-6 (ebk); ISBN 978-1-118-28701-9 (ebk)

Social media— Economic aspects. I. Title.

HM742.Q83 2012

658.8′72— dc23

2012026725

Foreword

From Main Street to Wall Street and from schoolrooms to boardrooms, there is a revolution happening. It is being driven by a fundamental shift in how we communicate, and it is enabled by the unprecedented rise of what is commonly called “social media.” Now, one may argue that we've always interacted with each other through dialogue and debate, but there's no question that the platforms and tools that are freely available to us today are taking this to the next level. It's one-to-one and one-to-many discourse in a public setting. And while we may be only at the beginning of this revolution, the effects are palpable. The historic invisible walls of the Internet are being broken down daily, locally, and globally.

Social media touches nearly every facet of our personal and business lives. In business it isn't just for the marketing and public relations departments. Rather, it is imperative for social media to be an integral part of a company's overall strategy. Whether a business is large or small, its overall success will be partly owed to its success within social media. Social media is living and breathing, and it touches every part of an organization from customer service and frontline sales to human resources and information technology. It's wherever and however your customer chooses to reach out to you. Social media is your customer today, your customer tomorrow, your employees, and others. Companies properly engaging digitally with their customers and clients have already seen the power and the payoff. At Ford Motor Company, we have seen this firsthand and it's not the result of one person, but rather the result of an entire movement.

The currency in social media isn't euros, pesos, or dollars; meaningful engagement, participation, and value creation rule the day. The World Wide Web is being categorized by billions of users across the world, and if individuals or businesses want a say in how they are categorized, they need to participate with the appropriate currency. And just as in the real world, true givers are rewarded handsomely.

For those willing to forge ahead into this new frontier, the opportunities are real and scalable. We've seen it work at Ford: the Fiesta Movement, in which we gave 100 European-specification Fiestas to digital influencers for six months, yielded amazing results. We let them do what they normally do: tweet, blog, post videos and photos, and tell everyone they know about their experience. We let their content flow through to our site in real time, unfiltered and uncensored. The results? Over 7 million views of their YouTube videos, 750,000 views of their Flickr photos, more than 125,000 hand raisers on FiestaMovement.com, 11,000 vehicle reservations, and an awareness rate of 60 percent—equal to that of vehicles that have been in the market for two to three years. All through social media.

Radical shifts in business models are also occurring elsewhere: Pepsi bypassed a Super Bowl advertisement for the first time in 20 years in order to shift those millions of dollars into social media. At Ford we've adjusted our marketing budget so that 25 percent is digital and social media. These changes aren't only for businesses. The world of politics has seen its fair share of social media influence, from the oft-used example of the Obama campaign to the rise of conservatives on Twitter with their #TCOT (top conservatives on Twitter) hashtag that has fueled the Tea Party movement.

In the United Kingdom, management of the BBC has mandated that the staff use social media tools since the BBC believes that if its employees aren't using them, they aren't doing their jobs as effectively as possible.

When the Iranian government shut off all outgoing communication channels, a revolution within the country was made known to the world via Twitter. Relief efforts poured into Haiti via texted donations and digital applications. Disasters, from flu to fires and from terrorist attacks to earthquakes, are being tracked and disseminated to mainstream news more quickly than ever before. The first photo of the US Airways plane in the Hudson River? It was uploaded to Twitter.

It's also heartening to see that many of the most popular applications and widgets are those that help people easily donate to various causes and charities. The great paradox is that this swath of society that is seemingly narcissistic and navel-gazing is also one of the most collaborative and community-minded when it comes to cause-related efforts. They want to be part of something bigger than themselves. They want to make a difference in the world, and they believe in the collective power of the crowd. To put in perspective just how powerful this can be, if Facebook was a country, it would be the third largest in the world behind only China and India. The winners in a socially driven world are numerous: good companies, good products, employees, consumers, democracy, entrepreneurial talent, and the environment—all creatures great and small. However, it doesn't come without a price; the majority of what we consider to be our personal privacy may be a thing of the past. This opens up new challenges that may be resolved over time, but Andy Warhol's well-known statement about fame may very well be flipped on its head and read something like: “In the future, we'll all have 15 minutes of privacy.”

Socialnomics succeeds at helping us make sense of it all. A strength of this book is Erik Qualman's ability to take complex issues and break them into easily digestible takeaways through the use of real-world examples and analogies. He also peers into the future—seeing a world where products and services will find us via our social graph. He uses constructs that will apply in the years ahead even though the technologies are certain to change.

An item unique to this book is that as a reader you are encouraged to not read the book from start to finish. Instead, you're encouraged to jump around, looking for the items most relevant to you. Helpful summaries of the key points at the end of each respective chapter make this easy.

Fittingly enough, this is similar to our social media usage behaviors. As Qualman correctly points out, we no longer search for the news; rather, the news finds us. Even though you as a reader have the ability to skip sections of this book, if you're like me, you will find that most of the constructs and future models in this book are relevant and necessary to achieve success today and tomorrow. Enjoy!

Scott MontyGlobal Digital CommunicationsFord Motor Company

Acknowledgments

Socialnomics could not have been completed without the help of many friends and family members. First and foremost, my beautiful wife Ana Maria served a dual role of sounding board and support coach. My immediate family of Dad, Mom, Jay, Helene, Matt, Mary Alison, and my loving grandparents made certain to tell me when things weren't up to standard, but were also my greatest supporters. Matt's work and insight were especially vital in beefing up our case study section. Encouragement came from my wife's family members, the Lozanos: Fernando, Margarita, José, Nicolas, and Stephanie. Special thanks go out to my John Wiley & Sons team, Shannon Vargo, Matt Holt, PJ Campell, Nick Snyder, Amy Scholz, and Elana Schulman, for having both the skill and the patience to make this happen. To talented authors Tim Ash and Brian Reich for introducing me to John Wiley & Sons. To the Muellers and Youngs for their moral support. The legal mind of Chris Norton. Julie Jawor's artistic eye. And finally, to numerous friends and family who kept giving me positive reinforcement and ideas, just when they were needed most—you know who you are, and it meant more than you know.

Social Superstar Support

Mari Smith, Dave Kerpen, Chris Brogan, Jeremiah Owyang, Mike Lewis, Brian Solis, Jamie Turner, Amber Naslund, Lon Safko, Anne Hadley, Scott Monty, Peter Shankman, Dave Carol, Guy Kawasaki, Steve Garfield, Charlene Li, Wayne Breitbarth, Tony Hsieh, Gary Vaynerchuk, Lee Oden, Jay Baer, Jason Falls, Dan Schawbel, Brian Reich, Angel Martinez, Corey Perlman, Louis Gray, Richard Binhammer, Robert Scoble, Phyllis Khare, Lee Aase, Eric Bradlow, Sally Falkow, Don Steele, Julien Smith, Jim Carey, Michael Lazerow, Sarah Hofstetter, Mack Collier, Mike Barbeau, Jamie Turner, Alan Chan, Todd Defren, Tom Gerace, Elizabeth Pigg, Ken Robbins, Richard MacManus, Jon Gibs, Chris Cunningham, Paul Beck, Jesse Stay, Amy Porterfield, Mario Sundar, John Hill, Kip Bodnar, Adam Brown, Justin Levy, Paul Colligan, Andrea Vahl, Rich Brooks, Rick Calvert, Nichole Kelly, Kelly Lester, Ana White, Matt Goddard, Chris Heuer, C.C. Chapman, Chris Penn, Shel Israel, Tamar Weinberg, Morgan Johnston, Tim Washer, Scott Henderson, David Armano, Mark Cattini, Michael Lewis, Nick O'Neil, Mike Stelzner, Sonia Simone, Adam Singer, Jessica Smith, Michael Brito, Geoff Livingston, Mike Volpe, and Wayne Sutton.

See more superstars in Chapter 9.

About This Book

This book does not need to be read from start to finish like a sultry novel, nor should it be. Rather, it provides useful insight into changes in macro trends, behaviors, and constructs as a result of social media. Just like social media itself, this book is written in sporadically digestible sound bites, and, by the magic of my wonderful editor, Shannon Vargo, it is arranged so that you, the reader, can easily select an example, particular topic, or case study that is relevant to you or your company. As such, I will occasionally repeat myself, but that's okay—studies show it takes three repetitions before something sinks in. Hint: If you want more tactical information, jump to the back of the book. So, while this work will not win any Grammar Girl awards, I hope you find it informative, educational, and entertaining.

Updates and augmentations to this book can be found at www.socialnomics.com. I love hearing from my readers at Twitter@equalman or [email protected]—feel free to disagree or shower me with affection. I adhere to my promise of personally responding.

Introduction

In 1992, James Carville coined the phrase “It's the economy, stupid.”1 This simple phrase was a major driver behind why Bill Clinton became our forty-second president. Much has happened since 1992, with the most powerful change being the ubiquitous adoption and assimilation of the Internet. The Internet has revolutionized almost every facet of our business and personal lives. This last statement about the Internet is hopefully not news to anyone reading this book.

What is news, however, is that today we are in the midst of yet another far-reaching revolution. This revolution is being driven by people and enabled by social media. That is why over two decades later we are taking liberties with Carville's famous quote by adjusting it to: “It's a people-driven economy, stupid.” Although only a slight modification of words, it's a drastic adjustment in philosophy and in how people and businesses are changing and will continue to evolve in the coming years.

Socialnomics is the value created and shared via social media and its efficient influence on outcomes (economic, political, relational, etc.). Or, more simply put, it's word of mouth on digital steroids. A subset of this is that in the future we will no longer search for products and services; rather, they will find us via social media.

Socialnomics is a massive socioeconomic shift. If Facebook were a country, it would be the third largest country in the world behind only China and India. Yet, some of the core marketing and business principles of the past few centuries will still apply, while other basic practices are becoming as extinct as the companies that continue to try to force them on the unwilling public. Businesses don't have the choice on whether to do social media; the choice is on how well they do it.

We are already seeing the economic potential of social media in its ability to reduce inefficient marketing and middlemen. Million-dollar television advertisements are no longer the king influencer of purchase intent. People referring products and services via social media tools are the new king. It is the world's largest referral program in history. There is also less need to subscribe to costly newspapers when consumers are pushed more relevant and timely free content from their peers via social media. The news finds us. All of this can be done easily from the comfort of home or while on the go with mobile devices. These paradigm shifts, along with many others, are discussed in the forthcoming pages. More importantly, we discuss how to leverage these shifts today and in the future. The end result is that everything from purchasing a baby carriage to drafting a last will and testament is easier and cheaper for the consumer and more profitable for the seller. The following pages will give you direction on how not only to survive, but to thrive in this ever-changing world.

Socialnomics eliminates millions of people performing the same tasks over and over (multiple individual redundancy). If new parents see, via social media, that several of their closest friends have purchased the same brand and model baby seat and they all express glowing reviews, the new parents will not waste hours on research; this research and review process has already been done by people they trust. Today's winners are not the result of Madison Avenue, blueblood political parties, or monopolistic distributors. As a result of the ease and speed with which information can be distributed across social networks, the winners today are great products and services—which ultimately means that people win. Companies can elect to do business as usual at their own peril. This is a newer and brighter world for consumers and businesses; this is the world of Socialnomics.

1 James Carville, “It's the Economy, Stupid,” Wikipedia, accessed April 23, 2009, http://en.wikipedia.org/wiki/It%27s_the_economy,_stupid.

Chapter One

Word of Mouth Goes World of Mouth

Ask any Fortune 500 executive, small business owner, or sole proprietor what the most effective form of marketing is, and I guarantee the answer, without hesitation, is word of mouth. Word of mouth is not a new concept, but what happens when this is taken to another level? What happens when word of mouth goes to World of Mouth®?

As depicted in Figure 1.1, an oversimplified historical model of word of mouth works something like this: Joe User has a great experience with his Dell computer; then he tells his friend Kelly about it and why he likes it. Kelly in turn tells her friends about it and so on down the line. This is a great model. However, no model is perfect. A few shortcomings of this model are: (1) the news/information can be slow to spread; (2) the original information can be altered as it changes hands; and (3) Kelly's friends may not know much about Joe. The beauty is that social media helps word of mouth overcome these imperfections. Yet, surprisingly, as of July, 2012, 70 percent of big company CEOs have no presence on social networks.1

Figure 1.1 Difference between Word of Mouth and World of Mouth

While traditional word of mouth can be slow to spread, the opposite is true for Facebook status updates. These updates are pushed via news feeds to all friends in the network. Or, to an even greater extent, a platform like Twitter gives you access to hundreds of millions of uses who have the ability to read your messaging. This scales much better than an individual telling a few friends a week about the new product or service he or she enjoys.