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Tuesday, December 6, 2011

Using Social Network Communites for B2B marketing

For B2B companies, the use of social network for building communities is a key part of the social marketing strategy. A company hosted community for users of its product provides an excellent way for a company to engage its customers, monitor the conversation, receive feedback and learn from its customers. The information that a company learns about its own product, how it is used, and customer requirements through online communities allows the company to make incremental improvements and design better products in the future.

Online communities are a faster and more efficient means of communicating with customers than traditional user group meetings, trade shows and conferences. The use of communities should be a key component of customer relationship management (CRM) because it engages the customers, present a platform for them to provide feedback, and monitors customer satisfaction, all key components of CRM. Although it is difficult to quantify some of the communications and feedbacks received through online communities, or calculate ROI of online communites, the relationship that are build up with customers are invaluable for future sales and marketing.

It is also interesting to note that companies who are afraid of reviews and open communications in communities fail to realize that a larger percentage of communications and reviews tend to be positive rather than negative. Also some negative communications increase trust in the forum and users will not feel that it is just another marketing channel for the company. The build up of trust in an online community is critical if active discussion of issues is desired. Furthermore, only an active and real discussion forum can provide honest feedback and learning opportunities for the company.

Ethics and Social Marketing

Social Marketing to the Business Customer is a book written by Paul Gillin and Eric Schwartzman about how to best utilize social marketing in the B2B market. One interesting topic that the book discusses is how companies should draft their social media policies and the many specific issues that may come up when companies and employees engage in social media in the public. The list of issues that may arise include privacy issues, employee right to free speech, use of disclaimers, potentail conflict of interest, compensation for bloggers or any other party for endoring products, confidentiality and copyright issues.

The list of potential problems raises a host of red flags and potential legal issues for allowing all employees to engage freely in social media without providing adequate training. Although employees have the right to free speech, a company policy encouraging employees to engage in social media marketing and communicating with the customers should not be implemented without significant investment in time and energy training the employees.

It also does not make sense to encourage all employees to participate freely in social marketing since it is impossible to control all communications and provide adequate training for such a large group. Instead, it make sense for companies to designate a select number of people with different expertise to advocate, communicate, monitor and engage in the social media arena. Social media policy and training can be provided to these employees so that their communications will engage the customers without causing legal, privacy and other issues for the company.

Monday, December 5, 2011

Personalized Website by Visual Appeal - A New Trend?

Studies have shown that different generation may have different criteria for judging the visual appeal of web pages. The study Generation Y, web design, and eye tracking, published in the International Journal of Human-Computer Studies showed that Generation Y (age 18-31 in the U.S.) prefers web pages that include a main large image, images of celebrities, little text, and a search feature.

http://users.wpi.edu/~djamasbi/2008-Djamasbi%20et%20al-AMCIS.pdf

Marketers and online retailers targeting this particular demographics should attempt to design their website with a main large image that takes up at least 40% of the web page, images of celebrities endorsers, large main text and an easily located search box. Detailed text and lists should be hidden from view unless a user clicks to a link or hovers over the particular function. A large static list of products with images and text should not appear on the main page. Instead features that include rotating images and scrolling features should be used to display larger images of products and allow the shopper to scroll through them. Actual lists should only be accessed through clicking on a link.
This study also highlight the limitless possibilities for the next level of website personalization by visual appeal and layout. Amazon.com is one of the recognized online retail leader in creating personalized shopping web page by recommended products, previous purchases, and browsing history. The use of personalized website by visual appeal and feature would further enhance the level of customization and provide a more visually appealing website for each user based on demographic and personal data. The web page would then be configured to fit the profile of each user - including more text and reviews for shoppers that may be more inclined to read specs and do research, less text for younger generation, quick visual graphically product comparison instead of a side by side technical spec comparison and more larger images for Generation Y. The web page visual design would evolve based on the click tracking and features used by each individual shopper. The next level of web page customization could be just around the corner.

Generation Y Web Preferences

The international journal of human-computer studies published a study in 2010 on how to make webpages appealing to Generation Y, the demographics encompassing ages 18-31 in the United States.

http://users.wpi.edu/~djamasbi/2008-Djamasbi%20et%20al-AMCIS.pdf

The conclusion was that pages that have main large image, images of celebrities, little text and a search feature are especially appealing to Generation Y, who grew up with technology and are internet savvy.

The study however does not address potential differences in website appeal to different generation of internet users. As recent data have shown, website use by other age groups have increased dramaticaly in the last few years, and the average age of internet users and social network users have both increased as the older population jump online. Half all all new internet users in the United States will be aged 45 and older according to a recent estimate.

U.S Internet Users by 2014
 TOTAL: 250.7 million (77.8%), up from 221.0 million in 2010 (71.2%)
- 3-11:   24.9 million (64.1%) / 18.6 million (49.8%)
- 12-17: 24.5 million (96.6%) / 23.8 million (94.6%)
- 18-24: 29.0 million (93.0%), 27.9 million (91.0%)
- 25-34: 39.6 million (90.0%), 36.5 million (87.4%)
- 35-44: 36.7 million (89.0%), 34.5 million (83.5%)
- 45-54: 37.9 million (87.0%), 35.1 million (78.6%)
- 55.64: 31.7 million (79.8%), 26.0 million (71.7%)
- 65+: 26.4 million (54.0%), 18.6 million (43.2%)

It is important for academia and marketing professionals to understand this trend and determine if there is a real difference in website visual appeal preferences between Generation Y and Generation X/Baby Boomers. The questions that should be addressed is whether the same website visual appeal applies to Generation X/Baby Boomers and if there is a convergence in appeal when it comes to website design. Although Generation X and Baby Boomers may be more used to traditional marketing media format that are largely text based - example magazines, newspaper and direct mail marketing, it is possible that that they will not judge the website appeal based on what appealed to them in the past. The study seems to imply that more text and a more static and list based website might appeal more to the non Generation Y demographics. A future study should be conducted to find out if a real difference exist among Generation Y, Generation X and Baby Boomers especially since going online have become a way of life even for the older generations.