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AUGUST 25, 2009

Social Media’s Effect On The Box Office

Last night I saw “District 9“  in the theater. Normally I would never consider paying $9.50 to see an alien movie, but I had heard that it was pretty good. When I was asked who said it was good, I couldn’t come up with any names. I knew that multiple people had said they liked it, but I couldn’t remember who! :\

Today I was on Facebook and realized that a few of my Facebook friends had also seen the movie and had noted that it was worth seeing. I’m embarrassed to say I didn’t have actual conversations with anyone about the movie - I only blindly trusted their Facebook statuses as movie reviews.

The power of social media is AMAZING. Peer reviews are what we trust, and social media allows us to share our opinions to anyone who wants to listen. My “District 9″ experience reinforced that power for me.

Timemagazine and Mashable have also written about the effect social media has on box office revenue. When “Bruno” opened, it did well… until the bad tweets about the movie flooded Twitter. Time speculated that the negative reviews on Twitter contributed to the movie’s downward spiral after its premiere on July 10. Mashable thinks that Twitter had the opposite effect on “District 9″ - it was a trending topic and garnered mostly positive buzz. Both movies made over 14 million dollars on opening night. On the second day, “Bruno”’s take fell to 8.7 million, while “District” made 12.6 million dollars!

I’m glad I listened to my friends on Facebook even though I couldn’t remember which ones. It was an unexpected hit for a moviegoer like me. Usually, I go for historical dramas and chick flicks, so if not for the unsolicited reviews my online buddies posted, I would not have had the chance to enjoy this sci-fi thriller!

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FEBRUARY 25, 2009

No More Yelp For Me

One of the reasons I love social media is because the whole philosophy of it is built on honesty and transparency. Social networks, blogs, user-generated content - this stuff is compelling because, ideally, it is the reflection of a community of peers, each speaking his or her mind honestly and collaboratively. One example I keep coming back to is my neighborhood listserv- that most basic of Web 2.0 tools. I know that a query I post on my listserv will be answered with helpful and honest answers by similarly-situated folks who have at times faced the same need for a roofer, or a decent dry-cleaner, or a dog-walker.  I may not agree with every opinion expressed on the listserv, but I trust the mechanism for getting those opinions posted, and believe that the motivations behind the postings are pure.

Last week, Corey circulated a link to an article that I found very disturbing, called Yelp and the Business of Extortion 2.0, by Kathleen Richards. It’s a long article, and I am not going to try to summarize it here - I’d urge you to read it yourself.  Richards’ main point is that Yelp - a site that describes itself as “the ultimate city guide that taps into the community’s voice and reveals honest and current insights on local businesses and services on everything from martinis to mechanics” - is actually in the business of manipulating user reviews in order to extract money from the businesses being reviewed. Richards alleges that Yelp sales staffers have repeatedly called businesses offering to delete negative comments in exchange for payment. Other “shady” Yelp tactics include ranking negative comments higher in order to pressure businesses to pay to have them removed, and actually creating negative comments in order to open the door for a sales pitch for advertising.

This is extremely troubling.  As Richards writes, “If Yelp indeed suppresses honest reviews in exchange for its advertisers’ money, it is cheating users who expect genuine consumer feedback. Conversely, if Yelp demands payment to remove even dishonest reviews, then advertisers are being cheated.”

For the record, Yelp denies these claims - check out these two posts on Yelp’s blog.

Time will tell whether Yelp was unfairly targeted, or whether these allegations are true. Unfortunately, for me, the damage has been done. I will never consult Yelp again - my confidence in that community has been shaken beyond repair. Trust and confidence are hard won and easily lost - even more so in the world of social media, where transparency is the foundation upon which it is all laid.

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FEBRUARY 3, 2009

Following The Herd

I have written previously that when I am saturated with information and can’t decide what to do,  I turn to others for input.  In fact, I have recently discovered that this is typical psychological behavior.  A recent book titled Yes! 50 Scientifically Proven Ways to Be Persuasive describes how the power of persuasion can impact consumer response in very significant way.

The author of the book, Robert Cialdini, gives two examples of how small changes in a business approach can have a big impact on consumer response:

First, an infomercial writer changed the wording at the end of the program from “Operators are waiting, please call now” to “If operators are busy, please call again”. This caused a huge increase in the number of people who purchased the product, because they thought others were buying it too. It’s amazing how changing just a few words can make such a difference.

Second, Cialdini also did an experiment aimed at encouraging greater participation in a hotel’s towel reuse program. In addition to the usual signage, the hotel informed guests that the majority of people who stay with them actually do recycle during their visit. As a result, guests in those rooms were 26 percent more likely to participate. Ironically, when asked, the majority of people they surveyed were adamant in saying they weren’t influenced by other people’s behavior.

The book’s conclusion: be mindful of the true power of “social proof” and how, when people are undecided about a course of action, they tend to look outside themselves to others to guide their decisions. This concept is reiterated in a recent blog post by Gayle that talked about the online shoe company Zappos. She pointed out that Zappos uses most of the money it would spend on paid advertising instead to enhance the customer experience, like by providing free shipping. Its belief is that word-of-mouth marketing by customers who feel well treated by Zappos has more influence in attracting new buyers than traditional advertising.

Peer-to-peer communication, either directly or subliminally, is the new persuader. This is evident through the technology of the new age - YouTube, texting, blogging, Twitter, and social networking.  It’s surprising to me that some companies are slow to catch on, for clearly, those hesitating to adapt are missing out on a big opportunity to reach out to their customer base in a more effective way.

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JANUARY 12, 2009

A Fan Of The “Pink Lady”

I turned 30 this past year.  There, I said it.

Unfortunately, as a woman, the number 30 usually carries a lot more baggage – literally and figuratively – than it does for men.  (Let’s just say crow’s feet on women don’t look nearly as “distinguishing” as they do on men.)  And so, in preparation of my 30th, I vowed to start taking better care of my skin than I had in years past.  No more washing my face with Dove soap, slapping on some moisturizer, and calling it a day.  It was time to get serious.  Call me paranoid, but it seemed like every morning I woke up to find yet another crease in my forehead, or lines around my eyes and mouth that weren’t there before.

Sure, I knew I could magically look years younger if I took the Botox route, but injecting a toxin into my forehead that paralyzes my muscles just seems, well…extreme.  And so I started looking elsewhere, and discovered none other than the famous (or infamous) Mary Kay Cosmetics.

Now, I know what you’re thinking: “Mary Kay?  Do you mean my grandma’s Mary Kay?  Are they even still in business?”  I know, I thought the same thing; in fact, visions of Tammy Faye Baker  and Dolly Parton flashed through my mind when a family member suggested that I try it.  But because I trusted this particular family member and because she happened to look fabulous, I decided to give the “pink lady’s” products a try (word-of-mouth works every time), and… I loved them!  Not only do I use the skin care line, I gradually began using the MK make-up line, too.

Over the past year and a half, Mary Kay has undoubtedly earned my loyalty, and in today’s marketplace, being loyal to any product is saying a lot.  And it seems I’m not the only fan: in 2007, Mary Kay brought in $2.4 billion in total sales – they must be doing something right. In addition to the great products (especially the new mineral line), here are some other reasons I like this company:

  • Mary Kay spends millions of dollars conducting over 300,000 tests a year to ensure that its products meet the highest standards of quality, safety and performance.
  • Mary Kay does not conduct animal testing for its products and is a PETA pledge member.
  • Mary Kay understand what it means to be a “socially responsible” company.
  • Mary Kay was before its time in anticipating consumer’s most valuable asset - our time.  I value the moments saved by having my products mailed directly to me.

It’s true, I’m not getting any younger, but with Mary Kay’s help, I’m hoping to look as if I am!

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OCTOBER 24, 2008

Online Research - Friend or Foe?

I am not a particularly nosy person. I like to think of myself as well-informed and proactive. Okay… who am I kidding? It’s so easy to be nosy nowadays! (And as David referenced in his post a few months ago, I’m not the only one.)

Google serves as a wonderful little sidekick that can give me juicy tidbits about people, places, and things whenever I want them. Thanks to Yelp, I can research the service at the restaurant I’m thinking of going to and read reviews from real patrons. Sites like Rate My Professor prepare me for what to expect from instructors, as well evaluate my books before I buy them for a class. Rate My Cop evaluates police officers based on personal accounts of interactions by people online. (As you might imagine, some people have not-so-nice things to say about the officer that just wrote them a ticket hours earlier.) A friend of mine even showed me how to look up county information to find out if people have traffic tickets or arrests. All you need is a name and a county to search in.

When I recently moved to a new house, Rotten Neighbors took the mystery out of the situation - it gave me the chance to screen my neighbors before even meeting them. And, I admit that after I finished checking out my own neighborhood, I had fun plugging in the addresses of my family and friends.

But, does this knowing all information, especially information about the people around us, make us safer? Happier? Probably not. In many cases, it just give us another thing to worry about. And let’s face it, for most of us, our list of worries is already pretty long as it is. Do we really need to think about that crazy write-up that someone posted online about our neighbor that may or may not be true?

When all is said and done, we should use these tools when necessary, but not go overboard. I am learning to take the information and reviews I read online with a grain of salt and focus more on the number and quantity of bad reviews more than the specific details of one person’s account. This keeps me from stewing over something that may or may not be biased, and unnecessarily ruining my perception of a restaurant, neighbor, cop, or person unfairly. Then both technology and my conscience will be on my side.

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AUGUST 5, 2008

Word-of-Mouth Marketing… It Works!

In the latest edition of an EPM Communications Research Alert newsletter that I follow as part of the New Persuasion team here at TMG Strategies, I saw a startling piece about world-of-mouth marketing.  According to the article, ”WOM marketing” is the fastest growing segment of the marketing industry.  Surprisingly, in 2007, spending on this form of marketing exceeded $1 billion and is expected to hit $3.4 billion in 2011.

There is no substitute for word-of-mouth marketing  - it’s a dire necessity for the success of a company.  Studies have proven that consumers trust their friends, families, and even complete strangers more than they trust big corporations.  This is why understanding word-of-mouth marketing and its importance is a key element for any growing or fully-established business.  According to my Research Alert, about 90% of WOM marketing takes place offline in face-to-face or phone conversations.  People are also more likely to think that offline WOM is more credible– which directly correlates to the intent to purchase at a later date.

This is something that everyone needs to keep in mind– no matter what type of company they work for or what type of business they are in.  After all, how else could Google have risen to the top as quickly and as efficiently as it has in the recent past? 

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JULY 28, 2008

“The Shack” Attack of William P. Young

With over one million copies sold on a wimpy $300 marketing budget, this 256-page tale of human sorrow and divine redemption is undeniably a literary and religious phenomenon.  But how did this happen?

shack cover Just over a year after it was originally published in paperback, William P. Young’s The Shack debuted at No. 1 on the New York Times trade paperback fiction best-seller list, and hasn’t budged since June 8.  Currently it is No. 1 on the Borders Group’s trade paperback fiction list, and, until recently, it was No. 1 on the Barnes & Noble trade paperback list.  Motoko Rich at the The New York Times says it’s “the most compelling recent example of how a word-of-mouth phenomenon can explode into a blockbuster when the momentum hits chain bookstores, and the marketing and distribution power of a major commercial publisher is thrown behind it.”

To summarize (but without revealing too much of the story): Early in the novel the young daughter of the protagonist, Mack, is abducted.  Four years later he visits the shack where evidence of the girl’s murder was discovered.  He spends a weekend there in a kind of spiritual therapy session with God, appearing as an African-American woman who calls herself “Papa;” Jesus, who shows up as a Jewish workman; and Sarayu, an indeterminately Asian woman who incarnates the Holy Spirit.

William P. YoungAs intriguing is the storyline sounds, I’m not writing this post to encourage or even discourage you from reading The Shack – that’s entirely up to you.  But I’m curious as to why this book has become so popular so fast.  In other words, I want to know how we - the reading public - and even the author himself have turned this book into a best-seller.  I’ll offer five of my ideas:

    1. It’s a quick read.  At 256 pages – a whopping 1055 pages fewer than the King James Bible – it’s no wonder that readers are drawn to a shorter rather than longer route to a cathartic encounter with the Christian God.

    2. It’s cheap.  Foregoing the more expensive, hardcover version, Windblown Media originally published the book in paperback, making it approachable and affordable to everyone.

    3. It’s bought in bulk.  In an effort to spread the word and share the love, many church leaders are asking bookstores for a dozen copies at a time – sometimes even a whole case – to distribute to colleagues, friends and family.  So, whether the book is digested in full or gathers dust on the bedside table, it counts as a sell.

    4. It’s controversial.  Christian “feely-types” say it’s life-changing and will bring you closer to God.  Christian “thinking-types” warn that it’s subversive and will make you question the author’s intentions.  Sounds like it’s worth investigating for yourself, right?

    5. It’s ambiguous universalism.  Beaner927 at the Closer to Free blog writes, “There were even parts of the book that almost seemed like they were meant JUST for me. . . . I got goosebumps!”  Inverse personalization?  Enough said.

Finally, I believe DHubka at the Thinking About Today blog has the most insightful rumination of all:

Why are so many people’s lives being changed by the book?  What can I take from the book and apply everyday?  I don’t know that there is anything. . .  I think it’s encouraging that this book isn’t life-changing for me, I think it means I’m already well on that path.

To be sure, with 40% of fickle - err, impressionable - American adults having changed their faith at least once since childhood, it’s no wonder The Shack is “changing lives.”  Today, it really doesn’t take much to become someone totally different than you were yesterday.

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MAY 26, 2008

Coming To America: The Japanese Beatles!

“With outstanding skills and charming character, they are a treasure to the Japanese Beatles band scene, winning acclaim from numerous quarters. If you are The Beatles lover, you’re sure to be captivated by their music. Love lives? You’ll surely enjoy our show. Experience a stage full of excitement and enthusiasm!” - The Silver Beats

At the modern intersection of globalization and entertainment, you’ll find a Japanese Beatles cover band called the Silver Beats.  Allow me to introduce them to you.  There’s Hidemasa Mabuchi as John, Tadaaki Naganuma as Paul, Yukinobu Kabe as Ringo, and Hajime Kubo as George.  But don’t let their foreign names fool you: these gentlemen bear a striking resemblance in look and sound to the original Fab Four from Liverpool (not to mention that they boast a repertoire of nearly 160 Beatles songs).  Don’t believe me?  See for yourself: A Hard Day’s NightShe Loves YouCome Together.

Debuting in 2002 at The Cavern Club in Tokyo, the Silver Beats first made waves in the United States when the band opened for (and by many accounts upstaged) The Killers during The Killers’ 2007 national tour.  According to screenwriter/filmmaker Jason Whiton, the reason this Japanese tribute band is unlike any other American tribute band is that tribute in Japan is “an integral part of artistic tradition” in which “the student strives to follow in the style of his master.”  Whiton believes that modern Elvis impersonators, for example, place too much emphasis on the King and not enough on his music.  The Silver Beats do the opposite.

Last January, I had the privilege of attending a rare, sold-out encore performance by the Silver Beats at the 9:30 Club in Washington, DC.  I admit that I had never actually heard of the band prior to the concert; I only bought a ticket because a friend of mine had seen them open for the Killers and said it was a “must-see” experience.  So, I tagged along.

Within seconds I found myself transfixed in a time-warp of sight and sound.  At the same time, I couldn’t help but notice that the karaoke-singing crowd surrounding me consisted mainly of Gen Y music lovers, most of whom were born after John Lennon died in 1980.  Yet, there we all were, reviving a band we had never before seen live and resurrecting a man with whom we had never shared a single breath on earth.  Why?

Potsy of the DC Rock Club, also stopping by 9:30 that night, lends us insight.  He writes:

With The Rolling Stones, The Who, and potentially Led Zeppelin keeping yesteryear rock alive with tours, some of us still have a shot at seeing concerts featuring music that never seems to die. Never mind the fact that The Beatles consciously stopped touring at the height of their career, Lennon’s death certainly meant we would never get the chance to see The Beatles perform. Even if Ringo and Paul hit the road together today, I don’t think it would be at all interesting.

I couldn’t agree with you more, Potsy.

So, last weekend when I read a news release announcing that the Japanese foursome would be returning to the United States this summer to perform at the 2008 Virgin Mobile Festival with legendary rocker Chuck Berry, I wanted to spread the word.  Even if you can sing along to only one Beatles song, you’ll find The Silver Beats’ sonic resurrection incredibly enlightening, particularly when paired with Chuck Berry.  As John Lennon himself once said, “If you tried to give rock and roll another name, you might call it Chuck Berry.”  I wonder: what would Lennon call Chuck Berry plus The Beatles’ own Japanese tribute band?  Probably, he would call it Love. Love, Love, Love.

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APRIL 2, 2008

Starbucks, Thanks for Listening

If you’re wondering how to identify the forces shaping our world, the answer is quite simple: listening. You would be hard-pressed to find a consumer who doesn’t want to be heard. And, when you step back and think about it, listening is one of the easiest things a company can do when trying to maintain and grow business. In our world where technology makes it so easy for consumers to voice their opinions, why wouldn’t companies take advantage of the opportunity?

With the launch of My Starbucks Idea, Starbucks has started listening. This post by ReadWriteWeb gives a great summary of what the two-week old site is all about. Customers offer ideas on everything from free Wi-Fi to making Starbucks environmentally-friendly
 
I’ve been participating in the site for the past few days and I’m both engaged and impressed. Discount days for seniors, happy hour, weekly coffee specials – just a few of the great ideas I’ve already voted for this week. Through the site, I have the power to influence a $9.4 billion company. The only way Starbucks could mess this one up is by not taking any of our advice. It’s great that they’re listening – but it will be even better when I see changes made. 

What other companies are most in need of a site like My Starbucks Idea? The first one on my list: Cosi. As much as I love the food, every trip into this neighborhood restaurant shop ends in frustration because it is lacking the most basic customer service. And, it didn’t take much searching to discover I’m not the only one who feels this way.
 
Which company do you wish was making an effort to listen?

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JUNE 26, 2007

When Customers Find New Uses for a Product

I have a nephew in the Marines.  He’s in Iraq and he recently sent the family a list of things that guys in his unit would like to get.  High on the list was baby wipes.  Baby wipes?  Turns out soldiers use them for personal hygiene and cleaning their equipment and lots of other things. 

Baby_in_a_box Now Matthew at Childs Playx2 says baby wipes are the new duct tape. (Thanks to Sarah at Strollerderby for the link.)  Besides wiping various parts of the body, he also uses wipes for:

  • Cleaning the bannister
  • Removing crayon from the coffee table
  • Polishing your shoes
  • Wiping snot off your computer screen
  • Cleaning grout on kitchen tile
  • Wiping dried oatmeal from the floor
  • Cleaning high chair trays
  • Cleaning the blades on your windshield wipers
  • Wiping dirt from the top of a soda can
  • Doing a quick wipe down of the toilet rim before visitors arrive

I love when people find new uses for a product.  A man I used to work with, who had no children at the time, always carried a bag of disposable diapers in his car.  He used them to suck up spills on the car seats or floors.  You can’t believe how well they work.  He used them at home for the same thing.  So I did it too - and continue to do it.

I always wonder why the manufacturers of these products don’t make use of the ingenuity of their customers.  If baby diapers can clean a carpet spill better than anything else, why not market them for that purpose?  I wrote about it awhile ago, but there is one company that does this - P&G has a fresh ideas section on its website for the laundry freshener Bounce.  Turns out you can use it for lots of different things and they encourage their customers to share their uses with each other. 

Flickr photo by Tom-Tom

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