Has Facebook got the X-Factor?

Social Media, and Facebook in particular, has been hailed as the marketing tool of the decade - but does it live up to the hype?

There is no doubt Social Media is a popular marketing tool - this blog is social media - but there seems to be a lack of objective statistics in the UK on its ROI. In 2010, the X-Factor TV show achieved one of the highest viewing figures in recent times, so we examined audience engagement with its Facebook page.

The X-Factor Final
On Sunday 12 December, 2010 over 17m people watched Matt Cardle win the final. Its Facebook page was heavily promoted during the show.

The busiest section on The X-Factor Facebook page was the Wall. Here the admin posted questions and supporters could ‘Like’ or ‘Comment’ on the posts.

In total, the admin posted 32 questions between 11.18am and 9.22pm, and the peak time of activity was 7.33 - 9.22pm when the show was live (13 questions posted).

The X-Factor Facebook page was one of the most popular at the time with over 2.5m ‘Likes’.

The results
The table below shows the Likes/Comments that viewers posted on the Wall during the whole of Sunday and when the show was broadcast. Approximately 66% of Likes/Comments were made when the show was live, with a marked drop in participation when the show finished.

We’ve also shown the number of Likes/Comments expressed as a percentage of the show’s TV audience. We view this percentage as the ‘response’ Facebook achieved (if SCi achieved that sort of response using any other marketing tool we would be disappointed).

To examine the level of engagement people had with Facebook we analysed further a question posted at 8.22pm during the middle of the show.

• 1.42% of the Comments were adverts for other products and Facebook pages.
• 22.57% of the Comments contained just 3 words or less.
• Only 6% of people made more than 1 Comment.

Conclusion

The X-Factor is a subject that generates divided opinions, as such we would have expected the Facebook page to have more participation.

While it’s true the page is popular, it managed less than 0.5% engagement with it’s TV audience; and only 1.99% of the 2.5m people who Like the page made a Comment.

If most of the ‘viewers’ of the Facebook page are inactive spectators it could be argued that its real potential is not being exploited - it’s not that much different from passively watching a TV commercial.

The fault may not be Facebook’s, perhaps The X-Factor’s use of the page is the problem. Two months after the show has finished and there are still adverts for other products and pages in the Comments, which suggests poor housekeeping. Also some questions from participants remained unanswered.

But even when people do participate their level of engagement is not deep. Just 22.57% of the Comments contained 3 words or less, many with simple  ‘Yes’ or ‘No’ answers; and only 6% of people Commented more than once.

How would the X-Factor judges mark Facebook's performance?

B2B telemarketing not as unpopular as you think

One of the biggest obstacles that B2B telemarketing has to overcome is its perceived unpopularity with target audiences. But new research reveals a different picture.

There are many prejudices in marketing, but perhaps the most damaging is 'me, me, me marketing'; the assumption that you are typical of the target audience and that what you dislike, they will dislike.

We may have all received telemarketing calls at home that seem to come at just the wrong moment - when you are sitting down to eat your evening meal or when you're on a ladder changing a light-bulb :)

Some telesales calls at home can be annoying.

But new research shows that telesales calls at work are not viewed in the same way. There is a difference between B2C and B2B telemarketing.

We surveyed 200 ABC1 managers and asked them what was the most annoying form of advertising. Telesales calls at home came top of the list with 35%, but telesales at work was at the bottom with just 4%. Only Direct Mail and Door Drops were less annoying.

Pop-up windows on websites came 2nd and TV advertising 3rd. But note how both email marketing and text messages on mobile phones are considered to be more annoying forms of advertising than B2B telemarketing.

 





Why the difference between B2B and B2C telemarketing? It may be because most managers accept that it's part of their job to talk with new suppliers. Indeed, some buyers have a KPI on the number of new suppliers they meet - it's an effective way to ensure the company is getting the best deal.

But maybe the reason why it's preferred to email and mobile text messages is that it uses Human Interaction. Buyers are people - always have been, always will be - and relationships are important in business. It's easier to build a relationship and dialogue over the phone than via an email or text message.

Your brand's relationship with customers is shaped by the content and relevance of your marketing messages, but the channel you use may also have an impact.

How Big Data is affecting the Single Customer View

In 1999 Seth Godin wrote about the idea of ‘permission-based marketing’, and to achieve it marketing departments soon realised they would need a Single Customer View (SCV). But how has the evolution of Big Data affected SCV?

Every day we gather information on our customers and store it in different databases, different departments and even different buildings. An SCV, or single marketing view as it’s sometimes called, seeks to merge all that data into one point that is accessible by all.

The problem was that for some companies, achieving an SCV was a journey that could take years. Many large organisations needed to build 5 year plans and it was not unusual for projects to over-run.

As a result, SCV slipped a few places on corporate priority lists. But Big Data may change things.

According to Bryan Eisenberg, founder of the Digital Analytics Association, the world is currently generating more data in 2 days than in all the days before 2003.

The sheer Volume, Variety and Velocity of information has increased; largely as a result of the explosion in digital marketing and the data it generates.

Managing the ‘3 Vs’ has been a problem. But Eisenberg believes that as new companies enter the Big Data arena, and provide cloud-based solutions, the capabilities that had previously been accessible only by large organisations will find their way into smaller companies. Big Data for the little guys.

Duncan Stuart, Director at Deloitte Canada, confirms there are compelling reasons for companies to pursue Big Data, “Instead of looking at my customer’s behavior once a month, I can look at it every minute of every day. That kind of insight is very, very powerful. It allows me to serve my customer better”.

The result could be that SCV becomes easier, or essential, to implement.

With SCV companies will have a platform that can profile, segment and enhance data to make the most of the intelligence and insight a unified view provides – and they can do it minute-by-minute with Big Data.

This will enable you to make your marketing more relevant, and relevance is important. A recent study by Transactis* asked customers about their relationship with companies they had already given information to. It showed:

• Nearly 80% UK customers would shift their business to a competitor if a company kept sending them irrelevant offers and communications
• 86% of customers say they would withdraw permission for a company to even contact them in future if it continued to send them irrelevant communications and offers
• 88% of customers would simply refuse to hand over further details on themselves if a company kept sending them communications and offers that they find to be of little use or interest

Proper integration of Big Data into an SCV provides clear insight so you can tailor, personalise and track the outcome of marketing messages and offers faster than previously possible. All of which is vital for customer acquisition, retention and profitability.

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The 3 Vs of Big Data
Bid Data refers to the explosion of data that organisations gather and the issues surrounding the management of that data. It is measured using the 3 Vs.

Volume: The amount of data, normally measured in Petabytes.
Variety: The different types of data; video, sound, documents, web logs, etc.
Velocity: The speed at which the data changes.

There is perhaps a fourth V… veracity. All the data in the world is meaningless if it is not accurate and checked regularly, and one of the best tools for B2B data cleansing is telemarketing.

Stay legal. Free CTPS check on your B2B data

There is a legal requirement for companies using B2B telemarketing to check their data against the CTPS register. The fine for failure can be up to £500,000 and is payable by the company that instigated the call… that could be you.

On Monday 2 July, BBC Panorama investigated B2C telemarketing. As a result, the spotlight in now on all forms of telemarketing – including B2B.

To help companies meet their legal obligations, we are offering to check your B2B telemarketing data against the Corporate Telephone Preference Service (CTPS). Free of charge.

The CTPS register is a list of companies that have ‘opted-out’ of receiving sales calls. It’s illegal to call them and can result in huge fines.

This offer is for UK data only and is limited to 100,000 records. The offer ends 31 August 2012, and for the rest of the details please read The Small Print below.

If you are calling Sole Traders as part of your telemarketing you might need to also check your data against the Telephone Preference Service (TPS). The Direct Marketing Association manage both CTPS and TPS, but any fines for failing to comply are imposed by the Information Commissioners Office.

If you want to protect your brand and ensure your telemarketing campaigns are legal, then please call Brendan O’Flaherty, CEO, on 020 8846 3950 or email boflaherty@scisalesgroup.com

Further information
Direct Marketing Association – www.dma.org.uk
Corporate Telephone Preference Service – www.tpsonline.org.uk
Telephone Preference Service – www.tpsonline.org.uk
Information Commissioner’s Office – www.ico.gov.uk

The Small Print
1.We will only check 100,000 telephone data records free of charge. Additional records can be checked for a fee.
2.We will perform one free CTPS check per company in one month only. Subsequent checks are charged at £50 per 100,000 records, per month.
3.CTPS is a list of UK companies that have requested not to receive sales calls, therefore this offer is limited to UK data only.
4.Your data must be supplied in .csv or Microsoft Excel format only, and must have unique ID for each record.
5.The telephone numbers must be in standard 11 digit telephone number format only.
6.This offer applies to CTPS only. If you are calling Sole Traders or consumers as part of your telemarketing you may need to check your data against TPS as well. Please ask for details and extra charges.
7.This offer is not available to other telemarketing or marketing agencies/consultants.
8.We reserve the right to postpone or refuse to complete the CTPS check due to our workload or other operational issues.
9.This offer ends 31 August 2012.

The value of human interaction in B2B sales

The emphasis on digital marketing has affected investment in other channels. So have we lost sight of the benefits that ‘live’ human interaction can bring to B2B sales?

There’s no doubt small company purchases can be done online without HI, but do buyers still need the confidence they get from a telephone conversation or meeting before they consider that large order?

The following is an extract from a White Paper which you can view by clicking ‘The value of Human Interaction in B2B Sales’.

1. Defining Human Interaction (HI)
There are many types of interaction in B2B sales, some are immediate, some are two-way, some personal and some not.

Events offer real-time, two-way interaction with visitors; but they are ‘crowd’ based. The exhibition stand or seminar needs broad appeal to attract sufficient visitors; it’s not an individualised event and does not feel ‘personal’.

Direct Mail, Email, Social Media and some Websites are able to interact with individuals, but the engagement is often delayed as you wait for a response from the other side.

Trade Magazines and many Websites offer only one-way engagement. Buyers need to use other channels to respond (Email, Telephone, etc).

Possibly the most ‘human’ interaction is a real-time, personal and two-way conversation. For that reason we will confine our definition of HI to Telemarketing and Field Sales.

2. Where is HI most effective?
HI is not as cheap as other marketing tools, such as sending an email blast. To ensure maximum ROI we have to use it wisely.

So where is HI most effective in a B2B sales process?

To answer this question SCi Sales Group researched a group of buyers across a wide range of vertical markets and job titles.

The group were asked if they had either a telephone conversation or meeting with a company representative before placing orders on their last 3 purchases.

Just over 68% of buyers had some form of HI before making their purchasing decision.

But the figures are more revealing when we examine the size of order. The average order value with HI is £68,032, but with no HI the order value drops to £1,018.

This supports the theory that when it comes to placing the big orders, buyers want to talk to someone on the phone or meet them in person to be assured they are making the right decision.

3. What are the benefits of HI?
The emphasis on data, digital channels and automation has perhaps taken focus away from interacting with customers as people. We need to recognise that HI makes customers feel valued. Consider the following example:

It’s your birthday. Friends congratulate you in different
ways. Which friend makes you feel more valued?
Sally sends you a text message,
Raj sends you an email,
Peter sends you a birthday card,
Heather gives you a telephone call,
Simon visits you at home.

This translates to Mobile Marketing (Sally), Email Marketing (Raj), Direct Mail (Peter), Telemarketing (Heather) and Field Sales (Simon).

We asked Managers on LinkedIn the same question, the top two channels were Field Sales and Telemarketing – both have HI.

However there are many advantages to HI beyond making buyers feel valued. HI enables better explanation of complex sales, it’s also easier to identify buying signals, predict objections and steer the conversation.

Conclusion
The whirlwind advance of digital marketing has resulted in a stampede as Marketing Managers race to ‘land grab’ their part of the digital space.

In the frenzy we may have lost sight of one enduring fact… buyers are people; always have been, always will be.

Can our marketing truly connect with buyers if we treat them as just ‘data’ and a ‘digital footprint’?

It’s often stated that “people buy from people”, so using marketing channels with HI (such as Telemarketing or Field Sales) should give you a competitive edge.

HI provides Marketing Managers with quality sales leads on large orders, and repeat or closed business on small orders. Plus it has an ability to make buyers feel truly valued, all of which demonstrates the benefit of human interaction in B2B sales.

How to increase customer loyalty by using the right marketing channels

We’re all familiar with the 4 Ps of the marketing mix; right product, right price, right place, right promotion. It could be argued that customer loyalty follows a similar pattern.

In order for customers to remain loyal you perhaps need product continuity, competitive prices, convenient place and appropriate communication. The 4 Cs. Communication is the focus of this article.

Understanding buyer behaviour
There are two parts to the buying process; information and negotiation. In the information phase (sourcing suppliers) buying behaviour has changed, largely due to the impact of the internet.

Analysis of the Buyersphere Report 2011 shows the major sources of information for buyers are ‘Suppliers Website’ (70%) and ‘Web Searches’ (65%), and the biggest increases in usage have been ‘Online Events/Webinars’ (up 170%) and ‘LinkedIn’ (up 100%).

The result of all this online activity is that alternative suppliers are just a click away.

In addition to being indiscriminate in the information phase, buyers are also less loyal in the negotiation phase.

We conducted a series of online surveys to determine the loyalty of buyers when offered lower prices by alternative suppliers. 76% of buyers would change supplier if offered up to a 10% discount on a purchase of £2,000.

Loyalty comes at a price, and it seems the price has little elasticity.

Choosing channels that make customers feel valued
We conducted a survey on LinkedIn about the relationship between marketing channels and the perception of being valued.

Managers outside of marketing were encouraged to participate, and to further avoid any prejudice in their choice we phrased the question in a non-marketing format. Over 600 Managers responded to the following question:

“It’s your birthday. Five friends congratulate you using different
methods. Which friend values you most?”
Simon visits you at home (Field Sales)
Heather gives you a telephone call (Telemarketing)
Peter sends you a birthday card (Direct Mail)
Sally sends you a text message (Mobile Marketing)
Raj sends you an email (Email Marketing)

Channels that use Human Interaction (HI) performed best, while the digital channels of Email and Mobile Marketing are seen to value people least. It seems that valuing customers is linked to having a two-way, ‘live’ conversation (either face-to-face or over the telephone).

Conclusion
Buying behaviour has changed, the internet has made it easier to source new suppliers and change supplier the minute a better price is offered. To keep customers loyal you need to show how much you appreciate their custom.

We react to different channels in different ways, and using channels with HI has the ability to add value to the relationship. In addition, HI can cement relationships on repeat orders and increase average order value.

Check your marketing schedule and see if Telemarketing or Field Sales could play a bigger role in your plans – after all, it costs 5-10 times more to acquire a new customer than keep an existing one.

A Knowledge Book is available on this subject, please click ‘How to increase customer loyalty by using the right marketing channels’ to view the PDF.