The truth about social media (Hint: it’s not media)

twitter: @paulboomer | copyright 2013 Wizard of Ads
The Truth About
Social Media
(Hint: It’s Not Media)

“History is the present.
That’s why every generation
writes it anew.”
- E.L. Doctorow

“The reason history must
repeat itself is because we
pay so little attention to it
the ﬁrst time.”
- Blackie Sherrod

“The thing that has been, is
that which shall be; and that
which is done is that which
shall be done: and there is no
new thing under the sun. Is
there anything whereof it may
be said, 'See, this is new?' It
has been already of old time,
which was before us.”
- Solomon

3: of or relating to human society, the
interaction of the individual and the group,
or the welfare of human beings as
members of society <social institutions>
4a : tending to form cooperative and
interdependent relationships with others
Deﬁnition of “social:”
source: http://www.merriam-webster.com/dictionary/social and http://dictionary.reference.com/browse/media

The means of communication as radio and
television, newspapers, and magazines,
that reach or inﬂuence people widely.
Deﬁnition of “media:”

Social:
“...relating... ...the welfare of human beings....”
Media:
“...reach or inﬂuence people widely.”

1839
posters on private property
banned in London
1867
earliest recorded
billboard rentals
1864
earliest recorded use of the
telegraph for mass unsolicited spam
1880’s
earliest
examples of
trademarks as
branding
1905
The Univ. of Penn. offers a course
in “The Marketing of Products”
1908
Harvard Business
School opens
1922
radio broadcast commences
1940s
electronic computers
developed
1941
ﬁrst recorded use of
television advertising
1950
systematization of
telemarketing
1970s
e-commerce invented
1980s
development of database marketing
emergence of relationship marketing
emergence of computer-oriented spam
1984
introduction of guerrilla marketing
1985
desktop publishing democratizes
the production of print-advertising
1990s
CRM and IMC gain dominance in
promotions and marketing planning
1995
AltaVista search launches
Yahoo search launches
1998
Google search launches
MSN search launches
2001
social bookmarking site
stumbleupon is established
2003
MySpace is founded
2005
YouTube and Vimeo launched
1991
integrated marketing communications
gains academic status
1996
identiﬁcation of viral marketing
ask.com founded
2004
Facebook founded
Digg lanuched
1999
opinion site epinions is established
2006
Twitter founded
2002
photo sharing site SmugMug set the
stage for sites like Flickr and
Photobucket

(Glenn video)
source: Glengarry Glen Ross - New Line Cinema

Social Media = Relationship Deepener.

path

• Thinks long term.
• Considers this transaction to be one in a series.
• Does not enjoy comparison shopping/negotiating.
• Fears only “making a poor choice.”
• Hopes to ﬁnd an expert they can trust.
• Considers their time spent shopping to be part of
the purchase price
• Is likely to become a repeat customer.
Two Kinds of Customers
The Relational Customer
R
E
L
A
T
I
O
N
A
L

• Thinks short term.
• Cares only about today’s transaction.
• Enjoys the process of shopping and negotiating.
• Fears only “paying more than they had to pay.”
• Is willing to spend lots of time investigating.
• Considers themselves the expert.
• Hinges every transaction on price.
• Is a good source of word-of-mouth advertising.
The Transactional Customer
T
R
A
N
S
A
C
T
I
O
N
A
L

NOTE:
A customer can be a
Relational Shopper in
one product category
and a Transactional
Shopper in another.

R
E
L
A
T
I
O
N
A
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-
T
R
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A
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A
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One
Case
Study

R
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N
A
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T
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A
C
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A
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$100
R
E
L
A
T
I
O
N
A
L
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T
R
A
N
S
A
C
T
I
O
N
A
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$90
R
E
L
A
T
I
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N
A
L
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T
R
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N
S
A
C
T
I
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N
A
L

R
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N
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S
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C
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$100

R
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N
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C
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$90

$70
R
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N
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T
R
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S
A
C
T
I
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N
A
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R
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N
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$80

R
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N
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$60

R
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$70

Average Sale: $82
Average Gross Proﬁt: $32*
Average Proﬁt Margin: 39%
*Assuming a Cost of Goods Sold of $50 and a Markup of 100% (Keystone)

Beware
of
Averages!

Only 22% of Store Visits
(5 of 23) were made by
Relational Shoppers.
R
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A
T
I
O
N
A
L
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T
R
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N
S
A
C
T
I
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78% of Store Visits
(18 of 23) were made by
Transactional Shoppers
R
E
L
A
T
I
O
N
A
L
-
T
R
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N
S
A
C
T
I
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N
A
L

T
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A
C
T
I
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N
A
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20% Trafﬁc 80%
R
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A
T
I
O
N
A
L

50% of Buyers
(5 of 10) were
R
E
L
A
T
I
O
N
A
L
-
T
R
A
N
S
A
C
T
I
O
N
A
L

50% of Buyers
(5 of 10) were
Transactional Shoppers.
R
E
L
A
T
I
O
N
A
L
-
T
R
A
N
S
A
C
T
I
O
N
A
L

T
R
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N
S
A
C
T
I
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N
A
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20% Trafﬁc 80%
50% Buyers 50%
R
E
L
A
T
I
O
N
A
L

59% of Dollars Spent
($480 of $820) were by
R
E
L
A
T
I
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N
A
L
-
T
R
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N
S
A
C
T
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$100
$100
$100
$90
$90

$70
$60
$60
$70
$80
41% of Dollars Spent
($340 of $820) were by
R
E
L
A
T
I
O
N
A
L
-
T
R
A
N
S
A
C
T
I
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N
A
L

R
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T
I
O
N
A
L
T
R
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N
S
A
C
T
I
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N
A
L
20% Trafﬁc 80%
50% Buyers 50%

T
R
A
N
S
A
C
T
I
O
N
A
L
20% Trafﬁc 80%
50% Buyers 50%
60% Sales 40%
R
E
L
A
T
I
O
N
A
L

$50
$50
$50
$40
$40
72% of Gross Proﬁt
($230 of $320) came from
R
E
L
A
T
I
O
N
A
L
-
T
R
A
N
S
A
C
T
I
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N
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$20
$10
$10
$20
$30
28% of Gross Proﬁt
($90 of $320) came from
R
E
L
A
T
I
O
N
A
L
-
T
R
A
N
S
A
C
T
I
O
N
A
L

T
R
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N
S
A
C
T
I
O
N
A
L
20% Trafﬁc 80%
50% Buyers 50%
60% Sales 40%
70% Proﬁt 30%
R
E
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A
T
I
O
N
A
L

BUT...

T
R
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N
S
A
C
T
I
O
N
A
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10% Advertising 90%
20% Trafﬁc 80%
50% Buyers 50%
60% Sales 40%
70% Proﬁt 30%
R
E
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A
T
I
O
N
A
L

Most retailers say the primary
objective of their advertising is to
“drive trafﬁc.”
And since trafﬁc is weighted toward
the everywhere-at-once Transactional
Shopper, it’s not surprising that the
majority of all retail ad dollars are spent
on “Sale,” “Price-Item” and “Event”
ads that target the Transactional
mindset.

Hmmm...

Most retailers assume the store trafﬁc
they see each day is representative of
their typical customer proﬁle and
potential sales volume.
But seldom is this the case

Transactional Shoppers represent a
greater share of overall store traffic
than of actual sales or gross profits
because they tend to visit a greater
number of stores in search of the
lowest price.
Consequently, Transactional
Shoppers represent lower closing
ratios, lower average sales, and
smaller profit margins.

Relational Shoppers represent a
smaller share of store trafﬁc, but a
larger share of sales, higher closing
ratios, higher average sales, and
higher proﬁt margins.

Intentionally or unwittingly, most
companies target either the
Transactional Shopper or the
Relational Shopper.

Intentionally or unwittingly, most
companies target either the
Transactional Shopper or the
Relational Shopper.
Who have you been targeting?

• Blog
• E-mail (newsletter & auto-responders)
• Video
tools

• White paper
• Case study
• Infographic
tools

Tools. Nothing More.

“Is this effort to supply free
information really working
for us? Is it worth it?”
- Zede Donohue

“We’ve had the
best month ever!”
- Zede Donohue

“...75% of [their] businesswould be sourced from
Facebook, Twitter and
their blog.”

• Carry a notebook.
• Ask your staff.
• Create a customer advisory board.
• Host a conversation group.
• (What to Write; A Content Idea Generation Workshop at 1:40p
or visiti www.shortcutblogging.com/brainstorm)
ideas

source: Google Zero Moment of Truth
http://www.zeromomentoftruth.com/toolbox

“Your audience gives you
everything you need. They
tell you. There is no director
who can direct you like an
audience.”
- Fanny Brice

Add a blog to your site and
create loads of content.
1)

Inject yourself in to your
shoppers every day lives.
2)

Promote your content ﬁrst,
your company second.
3)

twitter: @paulboomer
email: paul@paulboomer.com
paulboomer.com

The truth about social media (Hint: it’s not media)

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