Archive for the ‘Social Media’ Category

Social Media and The Rule of 150

Published by admin on October 18th, 2012

Original Photo courtesy of FreeDigitalPhotos.net

Social Media and The Rule of 150.

Google uses social media engagement as a key metric in giving relevance scores to websites, so, the more “likes” on your Facebook page the better, right?  10,000 is 100x better than 100 and a million is 100x better than that, right?  It’s important to remember that metrics don’t buy your products or services, human beings do, and while social media has changed our habits, our motivations and the size and sphere of our social groups haven’t changed since prehistoric times. Turns out the number you as a business owner need to be focused on is 150.

Social media has changed the conversational medium by which human beings communicate; it just hasn’t changed human beings.  The typical social group size for humans hasn’t changed.  It is and has always been about 150 people.  With the explosion in population, travel and access, and now the internet, social media, etc. one would think our social sphere of influence would have expanded, but it hasn’t.  Dr. Michael Gazzaniga is well researched in this field, and articulates this in his book Who’s In Charge: Free Will And The Science Of The Brain

Dr. Gazzaniga sites the work of Robin Dunbar, head of Oxford University Social and Evolutionary Neuroscience Research Group in the Department of Experimental Psychology:

“150-200 people are the number of people that can be controlled without an organizational hierarchy. It is the number of people one can keep track of, maintain a stable social relationship with, and would be willing to help with a favor.”

But why? What are the limiting factors that keep us at a social group of around 150? Turns out it has to do with the size of the neocortex in our brains.  He goes on to explain:

“To have social relationships, you call on five cognitive abilities:  (1) you must interpret visual information to recognize others, then (2)be able to remember both faces and (3) who has a relationship with whom; (4) you must process emotional information, and then (5) manipulate information about a set of relationships.”

Managing human relationships requires an immense amount of processing power and for whatever evolutionary reason our brains’ cognitive capacity caps out at around 150 people.  Yeah, but you (or someone you know) have 784 Facebook friends, right?  More from Dr. Gazzaniga:

Today’s social networking sites appear no different.  In an ongoing study, Dunbar has so far found that even people with hundreds of “friends” interact with a limited number of them.  “The interesting thing is that you can have 1,500 friends but when you actually look at traffic on sites, you see people maintain the same inner circle of around 150 people that we observe in the real world.”

Still think getting that lady who has 950 Facebook friends to like your page is super influential? Sure she is, but no more than that introverted customer who slips in and out of your business without much engagement or feedback at all.  They both have about the same size social group.  Every customer interaction, from your advertising, your Facebook page, your website, to your phone calls, your trucks and store fronts, is an opportunity to delight each person as if they have direct influence with 150 people, because statistically speaking, they do.


Advertising for 3 Phases of Consumer Behavior

Published by admin on February 24th, 2012

 

Everything I know about Relational and Transactional customers, I learned from Roy H. Williams, founder of the Wizard Academy  and the those terms should be properly credited to him.   My friend and former co-worker Josh Yudin, president of The Marketing Academy, an Atlanta-based consulting firm, assigned a new meaning to those terms as different modes of consumer behavior in general.   It has occurred to me, however, that there is a 3rd phase, Transitional, that incorporates both the general ethos of Relational or Transactional buyers, and buyer behavior through the sales cycle of any give product or service.  That said…

There are three phases of buyer behavior:

Relational, Transitional,  and Transactional

Relational: The phase customers are in before the need arises for your product. 95-98% of your target. The longer the sales cycle (HVAC, jewelry, cars once every few years, vs. say a restaurant, grocery store, gasoline, etc.), the longer a customer is in Relational phase

Transitional: After an event occurs to move them into the sales funnel (anything from the everyday mundane events like “I’m hungry” to paradigm shifting life events like “my mother broke her hip and now she can’t live alone”). The length of time a customer stays in Transitional mode depends on a number of factors like personality types,  immediacy of solution needed, amount of expense, resources available, etc.

Transactional: After the consumer has had what my friend calls the “Popeye moment” (as in, “I can’t stands no more!”). They’ve done any necessary research and they are ready to pull the trigger on a purchase.The immediate sales funnel. That 2-5% of your target customer that is ready to buy today.

  •  Each phase requires different advertising strategy.  One could argue for exceptions, but generally speaking, it works something like this.

Media Strategy for Each:

Relational Strategy: The “Why”.   Persuade with emotions. Authentically enroll people with the “why” of your company. Details and facts are irrelevant in relational mode because they are not yet in the market for your product.   While emotions can be conveyed in any medium, the human brain is uniquely wired for processing the human voice, thus making intrusive, sound-based media like Radio and TV a prudent choice for not only arresting the attention of an audience, but also telling the “why” story of your company in an emotionally compelling way.

Transitional Strategy:  The “How”.  An event has occurred in the customers life and they are looking for possible options to solve their problem. Articles and blog entries on your site found through a solid SEO strategy.   Social Media conversations on  Facebook/Twitter/Pinterest, etc.  Behavioral Retargeting is becoming more and more effective advertising tool in transitional phase. 

Transactional Strategy: The “Who, What, Where”.    They are ready to buy and they are looking for the details necessary to complete the transaction.  SEM (Pay Per Click) used correctly is a very effective tool in the Transactional phase.  Feedback sites like  Yelp, Angie’s List, Kudzu etc. are also becoming more and more important.  In certain cases print media can allow  a more comprehensive format to fill in the details and facts necessary to complete the transaction.  Search has a distinct advantage in that tools like Google Analytics allow advertisers to track metrics and provide reams of data that print media cannot (save tools like QR codes).

Trying to connect emotionally when consumers are in Transactional mode is too late.  Filling ads with details in Relational mode is too premature.

For more information, email me.


Beware the Danger of Data

Published by admin on February 16th, 2012

I love data.  Analyzing more efficient ways to get more customers to my clients’ websites and businesses by any and every metric there is is an obsession.  Monitoring CRM sales data, site traffic, search metrics and social media can enhance and improve your marketing efforts….that is, until it doesn’t. The truth is, as much as I lean on it, the dark side of data is that it can lead you to conclusions that are counter to your intuition, particularly when you’re dealing with human beings. 

“When dealing with people, let us remember, we are not dealing with creatures of logic.  We are dealing with creatures of emotion, creatures bristling with prejudices and motivated by pride and vanity.” – Dale Carnegie

We are emotional creatures ultimately motivated by avoiding pain or seeking pleasure. Moreover,  anticipated pain or pleasure is often as powerful a motivator as the experience itself. Logic is only used to justify what our emotions have already deciced. 

With few exceptions, we move in and out of a given sales cycles by events that happen in our lives, not by your website or your offer or by how many facebook fans “like” you.  A new baby, a blown tire, a change in jobs, an aging mother-in-law who breaks her hip.  These things happen and we search for a solution.   When you start talking about anything else, or get hyped about social media metrics because the “data shows” this or that, beware.  It’s why, while 59% of Facebookers  have “liked” a brand or company in the last 6 months, yet only 1% have engage with the brands on the site.  1%!  Social media has changed the platform on which we interact to be sure, but it hasn’t changed the motivations behind those interactions.  For all the snake oil being sold to get people to ”like” you on Facebook, or follow you on Twitter or Pinterest, your customers will go where anxiety is low. Helping them avoid pain or gain pleasure through great customer experience always wins the day.  

 Hey, I think I’ll tweet that…