A recent article in EE Times explored the supposed antipathy held by engineers for social media. Prominently referenced was a graph that showed the results of an EE Times survey from May of 2010 which clearly indicated that the overwhelming majority (85%) of sampled engineers had feelings towards Twitter ranging from indifferent at best to “HATE IT!” (Emphasis was theirs.)
It doesn’t take a CSEE degree to know that engineers are notoriously suspicious of marketing, equating it to spin which equates to lies, or at best time-wasting communication fluff. Since social media is generally considered a form of marketing, the presumption goes, the thread of disgust is easy to understand. However this supposed hatred for social media is certainly not warranted for most engineers and may not be true.
Part of the disconnect lies in understanding what social media is; for most people, and by extension most engineers, it is Facebook and Twitter. Ignorance plays into the cloud of suspicion, as evidenced by some of the comments posted in reply to the EE Times article. Apparently unaware of the irony of responding to a blog post about social media with the opinion that social media is useless, some offered hoary clichés in the ”Twitter is a waste of time. Who cares what you had for lunch?” vein. Others disparaged social media but grudgingly allowed that they found some value in LinkedIn.
If these engineers could merely apply the clarity and careful consideration with which they approach problem-solving, they would quickly understand that they should LOVE social media for the following reasons:
Speed of Information
Nothing fires an engineer’s imagination like a new product, or a new way of using an existing product. They are almost always willing to receive product or capability info because they might be able to use it. Correspondingly, when seeking a solution for a particular problem, they will conduct their research but once they choose a solution or an approach they quickly move on to the next design step. Catching the engineer in the right window for consideration is key. With social media, the engineer can constantly be exposed to a stream of information in near real-time, as well as access to archived info flow via search functionality. This means they can literally have the latest and greatest info from all their trusted sources right at their fingertips.
Without Twitter or blog RSS feeds, the responsibility falls back on them to seek out information. Microblogs and related push technology makes it easy to get the latest and greatest served up on a platter, or at least a pad.
Collaboration
Who invented the BBS, after all? The idea of posting questions in front of a community and having members reply or comment is one of the first instances of social media on the Internet. Engineers of all types routinely seek out the ways that others have addressed problems or determined solutions. Avoiding the reinvention of the wheel is deeply ingrained in the engineering mindset; use what has worked before, because it will save you time and stress. It is very important to be efficient and effective, so proven solutions vetted by others have great credibility. Clearly the many facets of social media facilitate and enable this kind of collaboration, from forums and blog responses to more sophisticated tools and community functionality that can share everything from software code to 3D CAD elements.
Evaluation
Collaboration is built on, and builds, trust, which is the core currency of all social media. The democratization of influence, broken out from the silos of professional reviewers or classic Word of Mouth dissemination, has allowed recommendation to become a valuable function of business social media connections. Research has shown time and again that personal recommendations are the most important factor in the B2B buying decision.
In the same way that Yelp reviewers can influence a restaurant choice, Twitter or blog commentary about a product can influence its specification and use. Expertise is demonstrated in opinion or commentary compared to personal experience, so the reader makes his/her own decision as to whether or not to trust any given evaluation. But again, in terms of efficiency, exponentially more recommendations can be parsed via social media feed than possible through direct human interaction. I look forward to the day when GlobalSpec allows commentary on any given company or product, since they typically qualify their registered users and could guarantee a certain amount of credibility for any participant.
Gadgets and Apps
The first people I knew to get iPhones were not interactive marketing gurus; they were electrical engineers. The bleeding edge is crowded with MSE’s and their brothers and sisters who can’t wait to get the latest toy. This is related to the need for the new described above, coupled with the longstanding geek cred that comes from possessing the rare and the special. Also important is figuring out how it works, and applying it to ones needs in order to be more efficient (as described above as well).
The hottest gadgets are in the mobile device space; iPads and iPhones are natural social media enablers, so by extension as the engineer figures out how to use these advanced devices, s/he will be exposed to the mobile versions of Facebook, Twitter, LinkedIn, and YouTube, and may just realize how they might be worth using. More obvious will be the appeal for dedicated apps published by vendors, consultants, and other resources that meet specific needs and allow quick calculation and specification in the field. EE Times mentions that Agilent offers a Microwave (µWave) calculator to find errors in measurements. I doubt it will rival Angry Birds for number of downloads, but for a specific audience that could be keenly valuable.
Modest Glory
Finally, let’s be honest: the engineer wants the world to know about his or her great skills and accomplishments. I did it! is the mantra for all problem-solvers, and the common yearning for efficiency prevalent in any engineering mindset means that others will want to know how they did it, right? The mores of social media not only allow this non-boastful bragging, they almost demand it. Any engineer worth his or her salt needs to hop on Twitter and tell the world how they visualized a particular system’s time response to various inputs. or overcame the limitation of space and load with a judicious brace. Alternately, they can cruise trade media blogs or the LinkedIn groups in their specialty and respond to questions.
I’m sure that every engineer, being rational and open-minded, will take these proof points to heart and open themselves up to the world of social media. In fact I think that it is quite possible that, in the nine months since the EE Times survey, engineers might have been changing their minds all along and are now happily utilizing all social media channels for help, value, and advantage. It’s the smart thing to do.
Showing posts with label B2B marketing; digital PR;. Show all posts
Showing posts with label B2B marketing; digital PR;. Show all posts
Monday, February 7, 2011
Monday, October 18, 2010
Vital Statistics for B2B Marketers
Back in June the folks at Earnest Media decided that B2B needed its own catchy video, like the Socialnomics "Social Media Revolution" video that has embedded itself in our digital consciousness.
Well, for some reason, I never caught it when it was released but happened to come across it today. I love it! And not simply because it has a kickin' Dave Brubeck tune as a soundtrack. So I provide it to you, in case you missed it the first time around.
Well, for some reason, I never caught it when it was released but happened to come across it today. I love it! And not simply because it has a kickin' Dave Brubeck tune as a soundtrack. So I provide it to you, in case you missed it the first time around.
Tuesday, June 15, 2010
B2B Companies: Do They Believe the Hype?
Parsing the eMarketer Report on B2B Social Media
Earlier this month, eMarketer released a report titled “B2B Social Media Marketing Heats Up.” eMarketer bills itself as “a business service unlike any other.” It is different from other well-known business intelligence companies, such as Forrester Research, in that it conducts no primary research itself; instead, it aggregates and analyzes all the available research, surveys, and data on a given topic.
I took a careful look at this report and have some thoughts about the following key points, as well as additional observations that might be helpful for B2B marketers thinking about social media.
· Spending on B2B social media is expected to increase significantly
· There are still barriers to adoption for many B2B companies
· Lead generation remains keenly important and is being achieved by many via social media
· Measurement and ROI are also key for B2B companies
· The differences between how B2B and B2C companies approach social media illustrate the differences between audiences and the respective marketers’ needs
B2B Social Media Spending to Increase (or as the kids say, “Duh”)
One obvious conclusion reached by the report is that spending is on the rise for B2B social media marketing (their term, not mine). They lead with a Forrester prediction: B2B firms will spend $54 million on social media marketing in 2014, up from just $11 million in 2009. The $ figures seem small to me, although the report does specify that internal costs such as staffing and training are not included. Since most of the social media channels are currently free or cheap (which may not be the case forever), it stands to reason that increased person-power will comprise the bulk of expanded social media efforts and thus would not be represented in these numbers. Still, given the consistent trend of exponentially increased online budgets from year-to-year, these amounts seem very cautious to me especially over a five year period.
One trend worth noting: the flight of budget from other media to social, especially that of online display advertising.
Nielsen reported that in 2009 B2B display advertising overall declined 8%. My assumption is that this was due to a couple of factors: the failure of many B2B trade media titles and associated Web sites, and an increased understanding by B2B marketers that display ads don’t work, especially when compared to tactics like SEM and email.
However, spending for paid advertising on social media (mostly Facebook ads) increased by 184% (probably reflecting the small $ from 2008 as much as the increased interest in social media).
Barriers to Adoption
The key question B2B companies have about social media is the same question they have about any marketing approach: can it help with their business objectives?
· The number one concern for B2B companies, in survey after survey over the years, is lead generation. If social media can generate leads, then it will be embraced.
· The other main concern is ROI; if the value of social media can be measured and documented, and proved to be acceptable, then they are more likely to use it.
At this point in the evolution of social media, I begin to worry about oversaturation. Users of social media can easily find themselves bombarded with input, and many are simply unable or unwilling to read everything or engage with brands as they had in the past.
Despite this concern, it is worth noting that a significant percentage of B2B companies are NOT using social media and represent a worthwhile business opportunity for communications agencies. 37% said they did not know enough about social media or how to begin, according to an Equation Research study in August 2009.
It’s About the Leads, Stupid
Some important numbers discussed in the report:
· DemandGen June 2009: 14% of companies surveyed were getting more than 10% of their leads from social media (218 companies surveyed); 28% were getting more than 5%
· 35% of respondents expected their number of leads generated via social media to rise by 1% to 5% over the next year.
· Hubspot reported in January of 2010 that the following percentage of B2B companies using the indicated channel have acquired a customer from that channel:
· Company blog 43%
· Facebook 33%
· Twitter 38%
· LinkedIn 45%
These figures are both encouraging AND somewhat daunting. Clearly, social media channels are effective at generating B2B customers as well as qualified leads; however, more than half of the companies surveyed in these various polls have not had success using them. Sobering reality, reminding us not to jump at the hype but rather consider the facts and realize there is risk in every venture.
Measurement of B2B Social Media
As my colleague Don Bartholomew puts it, there is a difference between value and ROI. Sometimes you can clearly demonstrate value without necessarily being able to calculate ROI, which is a financial metric.
Still, being an internet-based engagement process, there is an assumption that social media should be able to be measured and tracked the way that Web site traffic or email opens/click-throughs can be tracked. Lack of clear metrics is a major reason some B2B marketers choose not to engage with social media: 37%, according to Equation Research ("2009 Marketing Industry Trends Report, "August 18, 2009).
It seems clear that more marketers are expecting and demanding a clearer measurement of the value of social media engagement. A lot of people who have built their careers on the fuzzy values of “engagement” or “community” have pushed back that social media cannot fit into the dull box of ROI because its inherent value is much higher than simple metrics.
I am not sure B2B companies will accept that. They are clearly leading the charge over their consumer-oriented brethren when it comes to identifying success metrics and tracking results. Business.com’s report of November 2009 identified the percentage of companies (engaged in social media marketing) using the following criteria for success:
· Website traffic: 68%
· Brand awareness: 61%
· Engagement with prospects: 60%
· Engagement with customers: 52%
· Brand reputation: 47%
· Prospect lead quality: 40%
· Revenue: 38%
· Prospect lead volume: 37%
· Useful product feedback: 26%
To Don’s point, most of these indicate value, but to calculate ROI is complicated. Attributing success to any of a variety of factors can be difficult, so even a clear financial metric like revenue is not easy to connect directly to social media. At FH, we conduct a significant period of discovery and definition to fully understand what factors contribute to a business’s success, and we carefully choose the trackable events that form a basis for suggesting ROI or value attribution to the social media programs we develop for our clients.
Differences between B2B and B2C
The report identifies two key differences between the business audience and the consumer audience:
· Multiple influencers/deciders
· Longer buying cycle = more need/opportunity for interaction
The consumer is usually the sole decider and often susceptible to the spur-of-the-moment purchase. The business decision, in contract, is almost always subject to group input and careful financial scrutiny. The purchasing process is often hard-coded to enforce consideration of multiple providers in pursuit of the best choice and lowest cost. With a buying cycle in multiple stages, the B2B customer will benefit from consistent and appropriate input, which social media can facilitate.
Business.com noted some important differences between B2B and B2C in their survey (September 2009) of social media initiatives.
· B2B companies are much more likely to maintain corporate blogs (74% of respondents vice 55% consumer)
· Business marketers were also more likely to upload content (i.e. white papers, videos) to third-party sites (50% vice 32% consumer); vertical sites like GlobalSpec certainly promote and encourage sharing content via their platforms
· Not surprisingly, Facebook and MySpace were more popular with consumer companies, while more B2B companies were using LinkedIn and Twitter
One more note on Twitter: an October 2009 survey from Chief Marketer, Direct, and Promo found that B2B marketers were more likely than B2C marketers to use Twitter to announce new Website content. On the other hand, B2C marketers tended more to tweet about special offers and locate brand fans.
Ed Linde II, senior marketing manager for Web marketing at IBM.com, seems to be an excellent provider of illustrative sound-bites because he is quoted several times in the report. On this topic, he points out: “In B2C you’re looking for a lot of interaction and collaboration between the individuals who tend to be a youthful audience, and from time to time there’s a celebrity element. In the B2B space, you want subject matter experts who are known authorities on particular topics. They’re credible experts on a particular area that people are trying to learn more about and make educated decisions on.”
I think his latter point underscores what has always been a key difference between B2B and B2C, and why social media is such a good fit for the former: the need for technical credibility. Expertise in B2B is valued in a different way than popularity in B2C, and the technical audience has always sought guidance and instruction on how to apply a given technology to its own needs and application. Social media facilitates that in a more direct and immediate way than any other interaction besides face-to-face meetings, or as we now call it F2F.
Conclusion: Heating Up, but No Slam Dunk
Pardon my mixed metaphors, but it’s important to realize that few B2B companies are willing to jump onto the social media bandwagon simply because of the hype. The ones that have adopted these strategies and tactics are doing so because they see the value, not simply because it is “hot.”
eMarketer concludes the report with a set of conclusions that seem achingly obvious but are nonetheless worth making:
· B2B marketers need a social media strategy
· Social media can and does generate leads
· It is very important to monitor and measure your B2B social media efforts
B2B social media is certainly riding the buzz wave, and most companies are aware of the various channels and interested in learning more, but they approach all marketing efforts with a critical eye and will not gamble their hard-earned and only now slightly-rebounding budgets on strategy or tactics that they don’t understand or can’t properly value. It’s up to us as communications and marketing professionals to explain the value and demonstrate the worth of social media for B2B companies.
We’ll give the final word to Ed Linde from IBM who pretty much sums up the bottom line:
“…at the end of the day, the marketer’s job is to facilitate collaborations between the customer and the seller. If we can use social media technologies to help do that, we will.”
—Ed Linde II, senior marketing manager for Web marketing, IBM.com
Earlier this month, eMarketer released a report titled “B2B Social Media Marketing Heats Up.” eMarketer bills itself as “a business service unlike any other.” It is different from other well-known business intelligence companies, such as Forrester Research, in that it conducts no primary research itself; instead, it aggregates and analyzes all the available research, surveys, and data on a given topic.
I took a careful look at this report and have some thoughts about the following key points, as well as additional observations that might be helpful for B2B marketers thinking about social media.
· Spending on B2B social media is expected to increase significantly
· There are still barriers to adoption for many B2B companies
· Lead generation remains keenly important and is being achieved by many via social media
· Measurement and ROI are also key for B2B companies
· The differences between how B2B and B2C companies approach social media illustrate the differences between audiences and the respective marketers’ needs
B2B Social Media Spending to Increase (or as the kids say, “Duh”)
One obvious conclusion reached by the report is that spending is on the rise for B2B social media marketing (their term, not mine). They lead with a Forrester prediction: B2B firms will spend $54 million on social media marketing in 2014, up from just $11 million in 2009. The $ figures seem small to me, although the report does specify that internal costs such as staffing and training are not included. Since most of the social media channels are currently free or cheap (which may not be the case forever), it stands to reason that increased person-power will comprise the bulk of expanded social media efforts and thus would not be represented in these numbers. Still, given the consistent trend of exponentially increased online budgets from year-to-year, these amounts seem very cautious to me especially over a five year period.
One trend worth noting: the flight of budget from other media to social, especially that of online display advertising.
Nielsen reported that in 2009 B2B display advertising overall declined 8%. My assumption is that this was due to a couple of factors: the failure of many B2B trade media titles and associated Web sites, and an increased understanding by B2B marketers that display ads don’t work, especially when compared to tactics like SEM and email.
However, spending for paid advertising on social media (mostly Facebook ads) increased by 184% (probably reflecting the small $ from 2008 as much as the increased interest in social media).
Barriers to Adoption
The key question B2B companies have about social media is the same question they have about any marketing approach: can it help with their business objectives?
· The number one concern for B2B companies, in survey after survey over the years, is lead generation. If social media can generate leads, then it will be embraced.
· The other main concern is ROI; if the value of social media can be measured and documented, and proved to be acceptable, then they are more likely to use it.
At this point in the evolution of social media, I begin to worry about oversaturation. Users of social media can easily find themselves bombarded with input, and many are simply unable or unwilling to read everything or engage with brands as they had in the past.
Despite this concern, it is worth noting that a significant percentage of B2B companies are NOT using social media and represent a worthwhile business opportunity for communications agencies. 37% said they did not know enough about social media or how to begin, according to an Equation Research study in August 2009.
It’s About the Leads, Stupid
Some important numbers discussed in the report:
· DemandGen June 2009: 14% of companies surveyed were getting more than 10% of their leads from social media (218 companies surveyed); 28% were getting more than 5%
· 35% of respondents expected their number of leads generated via social media to rise by 1% to 5% over the next year.
· Hubspot reported in January of 2010 that the following percentage of B2B companies using the indicated channel have acquired a customer from that channel:
· Company blog 43%
· Facebook 33%
· Twitter 38%
· LinkedIn 45%
These figures are both encouraging AND somewhat daunting. Clearly, social media channels are effective at generating B2B customers as well as qualified leads; however, more than half of the companies surveyed in these various polls have not had success using them. Sobering reality, reminding us not to jump at the hype but rather consider the facts and realize there is risk in every venture.
Measurement of B2B Social Media
As my colleague Don Bartholomew puts it, there is a difference between value and ROI. Sometimes you can clearly demonstrate value without necessarily being able to calculate ROI, which is a financial metric.
Still, being an internet-based engagement process, there is an assumption that social media should be able to be measured and tracked the way that Web site traffic or email opens/click-throughs can be tracked. Lack of clear metrics is a major reason some B2B marketers choose not to engage with social media: 37%, according to Equation Research ("2009 Marketing Industry Trends Report, "August 18, 2009).
It seems clear that more marketers are expecting and demanding a clearer measurement of the value of social media engagement. A lot of people who have built their careers on the fuzzy values of “engagement” or “community” have pushed back that social media cannot fit into the dull box of ROI because its inherent value is much higher than simple metrics.
I am not sure B2B companies will accept that. They are clearly leading the charge over their consumer-oriented brethren when it comes to identifying success metrics and tracking results. Business.com’s report of November 2009 identified the percentage of companies (engaged in social media marketing) using the following criteria for success:
· Website traffic: 68%
· Brand awareness: 61%
· Engagement with prospects: 60%
· Engagement with customers: 52%
· Brand reputation: 47%
· Prospect lead quality: 40%
· Revenue: 38%
· Prospect lead volume: 37%
· Useful product feedback: 26%
To Don’s point, most of these indicate value, but to calculate ROI is complicated. Attributing success to any of a variety of factors can be difficult, so even a clear financial metric like revenue is not easy to connect directly to social media. At FH, we conduct a significant period of discovery and definition to fully understand what factors contribute to a business’s success, and we carefully choose the trackable events that form a basis for suggesting ROI or value attribution to the social media programs we develop for our clients.
Differences between B2B and B2C
The report identifies two key differences between the business audience and the consumer audience:
· Multiple influencers/deciders
· Longer buying cycle = more need/opportunity for interaction
The consumer is usually the sole decider and often susceptible to the spur-of-the-moment purchase. The business decision, in contract, is almost always subject to group input and careful financial scrutiny. The purchasing process is often hard-coded to enforce consideration of multiple providers in pursuit of the best choice and lowest cost. With a buying cycle in multiple stages, the B2B customer will benefit from consistent and appropriate input, which social media can facilitate.
Business.com noted some important differences between B2B and B2C in their survey (September 2009) of social media initiatives.
· B2B companies are much more likely to maintain corporate blogs (74% of respondents vice 55% consumer)
· Business marketers were also more likely to upload content (i.e. white papers, videos) to third-party sites (50% vice 32% consumer); vertical sites like GlobalSpec certainly promote and encourage sharing content via their platforms
· Not surprisingly, Facebook and MySpace were more popular with consumer companies, while more B2B companies were using LinkedIn and Twitter
One more note on Twitter: an October 2009 survey from Chief Marketer, Direct, and Promo found that B2B marketers were more likely than B2C marketers to use Twitter to announce new Website content. On the other hand, B2C marketers tended more to tweet about special offers and locate brand fans.
Ed Linde II, senior marketing manager for Web marketing at IBM.com, seems to be an excellent provider of illustrative sound-bites because he is quoted several times in the report. On this topic, he points out: “In B2C you’re looking for a lot of interaction and collaboration between the individuals who tend to be a youthful audience, and from time to time there’s a celebrity element. In the B2B space, you want subject matter experts who are known authorities on particular topics. They’re credible experts on a particular area that people are trying to learn more about and make educated decisions on.”
I think his latter point underscores what has always been a key difference between B2B and B2C, and why social media is such a good fit for the former: the need for technical credibility. Expertise in B2B is valued in a different way than popularity in B2C, and the technical audience has always sought guidance and instruction on how to apply a given technology to its own needs and application. Social media facilitates that in a more direct and immediate way than any other interaction besides face-to-face meetings, or as we now call it F2F.
Conclusion: Heating Up, but No Slam Dunk
Pardon my mixed metaphors, but it’s important to realize that few B2B companies are willing to jump onto the social media bandwagon simply because of the hype. The ones that have adopted these strategies and tactics are doing so because they see the value, not simply because it is “hot.”
eMarketer concludes the report with a set of conclusions that seem achingly obvious but are nonetheless worth making:
· B2B marketers need a social media strategy
· Social media can and does generate leads
· It is very important to monitor and measure your B2B social media efforts
B2B social media is certainly riding the buzz wave, and most companies are aware of the various channels and interested in learning more, but they approach all marketing efforts with a critical eye and will not gamble their hard-earned and only now slightly-rebounding budgets on strategy or tactics that they don’t understand or can’t properly value. It’s up to us as communications and marketing professionals to explain the value and demonstrate the worth of social media for B2B companies.
We’ll give the final word to Ed Linde from IBM who pretty much sums up the bottom line:
“…at the end of the day, the marketer’s job is to facilitate collaborations between the customer and the seller. If we can use social media technologies to help do that, we will.”
—Ed Linde II, senior marketing manager for Web marketing, IBM.com
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