Social marketing does some interesting things to what we traditionally think of as the marketing funnel. You know - the one where we generate a lot of content and events, then keep pushing more content in front of people until we finally sic sales people on the lead. It has led to some fairly dysfunctional behavior - both inside organizations and with leads. A game of cat and mouse ensues until someone gives up. Exhausting. And expensive.
But it doesn't have to be that way. Content and social marketing has given us another option - one which, frankly, I'm pretty relieved to see. In this scenario we also produce a lot of content but in more formats, often in smaller pieces (although not exclusively), and we do it much more frequently. The majority of that content gets openly published for all to see. Prospective customers can lurk and lurk without being noticed - and engage in the way and amount they want, when they are ready. It doesn't mean we abandon email marketing and other things but the focus is on pushing content out that provides some value vs. banging on the 'buy now' drum.
This creates a pretty dramatic change to the width and the length of the marketing and sales funnel:
- All the world's a stage. Leads are everywhere but they may be close to impossible to track.
- Not tracking unqualified leads is a good thing: It is expensive and there is such a high percentage of them that are not interested or ready to become customers that companies typically waste a lot of time, energy, and money trying to convert them.
- Without tracking early leads, the marketing organization has to wait for leads to emerge and declare themselves. This will drive them crazy... but reduce overall costs. It requires a very different mindset and over time the amount of content vs. leads will be relatively consistent but... it requires giving up control of knowing exactly who will emerge and when.
- Because you are giving leads more control over when and how they engage, the effectiveness of each conversation is higher because they are ready and interested - i.e. the holy grail - they are engaged.
- Because in many cases (this is not true of all products) prospects can get the majority of what they need to make a purchasing decision without a conversation, when they do reveal themselves time to close can happen extremely quickly.
- A much higher percentage of leads that contact you proactively are ready to buy. This clarity is refreshing and efficient. And wonderfully cost effective.
- You don't end up convincing someone they need your product only to find out after the sale that it doesn't really work for them or they aren't ready for it and therefore they don't use it - both of which cause them to be unhappy and difficult, which is expensive for the company and potentially damaging in the long run if they choose to share their feelings publicly.
By letting your content be free you can increase the width of your lead funnel but you may not be able to know by how much and you can dramatically shorten the funnel. And, yes, it may take leads a little longer in the beginning but when they are ready, they are ready and you'll end up with much more constructive work to do - with customers that really appreciate what you have to offer.
Ahh - feels like a cold glass of spring water.
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Social Media's Pull: People Want Comfort More Than Food
We don't often like to compare ourselves to children or monkeys but the truth is that we're not that different. As adults, we often hide our needs, desires, and disappointments but when looking to understand the behavior of adults, it is useful to watch children and animals because they have no artifice masking their instincts. One of the most powerful and heartbreaking experiments ever done was by Harry Harlow on how baby monkeys form attachments and how important comfort was to their existence. The video below shows that baby monkeys will take comfort over food - in effect starving themselves in order to feel OK.
I can hardly watch the video but the point is that animals and people (we're not biologically all that different after all) will choose something comforting over a more obvious need like food. To me, this gets at the heart of why the social interactions facilitated by social media and social software can make such a big difference to the individuals that interact with organizations. Individuals will flock to organizations that offer comfort (personalized attention) even if the 'food' - i.e. salary, product cost, partnering costs - does not make economic sense for the individual.
For organizations, this has a couple of implications:
- Resources and time spent on effective personalized experiences with employees and customers will see the returns in the form of higher margins, lower operating costs, and increased retention rates.
- The recent conversation about applying business process and integrating 'social' into existing processes should be very carefully pursued. If the social element becomes just as standardized as current processes, it won't have much impact. The business processes themselves must become more flexible and adaptable to individuals which is now possible because social software reduces the cost to support that flexibility.
The issue many of us have is responding to requests to quantify how much comfort is enough. In essence, we are being asked to put a dollar amount on feelings. If you have any suggestions on how to do that, I'm all ears. In the absence of being able to do that, each organization will need to experiment (which, I'm sorry to say, will cost some money) and turn the dial up and down until they find what balance of 'comfort' and 'food' works best for them given their unique market and the unique constraints of their organization.Posted at 01:48 PM in Best Practices, Deep Thoughts..., News/Commentary, People, Relationship Management, Social Media Marketing | Permalink | Comments (0) | TrackBack (0)
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