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The Psychology of Social Media In a Crisis

One of the large parts of professional Social Media management is the role of a crisis. When something urgent and negative happens, people feel emotionally compelled to share information without necessarily evaluating the truth of that information. This is particularly so when someone is 1) physically or effectively close to the disaster, 2) tending to think about themselves rather than thinking of others, and 3) experiencing negative emotions from reading the information. It may seem obvious, but it’s still important that it’s been studied and proven, that our tendency to share information during a crisis is based on self-centered emotional release rather than the benefit of others.

Earlier this year, my colleague at Social Media Beast wrote an article for businesses dealing with Social Media crises. These are truly perilous situations if handled incorrectly. Whatever legitimate negative publicity kicked the mess off is bad enough without the additional Social Media wildfire of rumor, speculation and trolling.

Though it’s hard for many to see it this way, these times of emotional frenzy can also be opportunities to test and strengthen your brand and place you top-of-mind if handled authentically and deftly.

 

Here are some key points from my colleague Katie’s article:

1) Have a plan. Obvious, but yet everyone gets caught flat-footed and plan-less.

2) Already have a structure in place that allows for consistent monitoring and rapid response.

3) Move quickly, but without defensiveness or any other attitude that would inflame the situation. Remember that, as we said above, triggering readers’ emotions will only cause more tweeting-sans-thinking.

4) Become a go-to resource for the kind of information and service that defuses tension.

5) Keep learning. Revise your plan so the next one is handled smoother.

 

After spending over 10 years in marketing, I’ve been personally involved in a number of situations where an angry customer became a product evangelist when the responsiveness and customer service were truly worthy.

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Testimonials: The Right Way and the Wrong Way

February 28, 2015 Leave a comment

Nothing supercharges lead generation and sales quite like social proof. One study published in the Wall Street Journal noted that social proof was more influential in changing behavior than the prospect of saving money.

Content Marketing Leaders Spill on Using Testimonials Effectively

Tim Paige of LeadPages.net produces a fascinating podcast about digital marketing effectiveness called Conversion Cast. Earlier this month, he interviewed the Strategic Director of Orbit Media, Andy Crestodina. The subject of the episode was testimonials. Andy talked about a small business case study where the proper implementation of testimonials resulted in a 97% boost in leads.

Tim Paige, Producer of Conversion Cast

First, the wrong way (and what everybody tends to screw up). Whatever you do, do not put your testimonials on a dedicated testimonials page. It’s tantamount to hiding your best credibility indicators in a section of the site where no one ever visits. Think about it: when was the last time you ever clicked on a testimonials page?

Testimonials belong on the main pages of your site (products, about us, etc.). They should be woven into the content. As Crestodina puts it, they should be “pixels away from the claims” they justify.

Think about testimonials as the sources that you’re citing to back up your claims, like footnotes. Except that you don’t want to put them at the bottom. Better to place them along the side of the page, as well as in-line (block quotes), and also at the bottom. Just so long as they are visually tied the the claims that they back up.

Andy Crestodina, co-founder of Orbit Media

Crestodina also makes a point that you want to use a variety of formats. He refers to video testimonials in particular as the “atomic bomb of marketing.” They convey passion and sincerity through body language and inflection. So don’t simply settle for a bland quotation or a logo array.

KissMetrics Schools Us On the Psychology of Social Proof

In a blog article on social proof, KissMetrics offers some fascinating wisdom on implementing testimonials and social proof.

First, and maybe most interesting, testimonials can backfire if they’re phrased in a way that suggests that many people are doing something incorrectly. We refer to this as negative social proof. They site the example of the signage used in the Arizona Petrified Forest to reduce theft. Here’s what happened, in their own words:

Their findings were shocking. The sign with the negative social proof was not only unable to reduce theft, it actually increased the likelihood that people would steal the petrified wood from the forest! In this case, the sign read:

“Many past visitors have removed the petrified wood from the park, destroying the natural state of the Petrified Forest.”

The researchers found that this sort of sign encouraged more stealing (it tripled the amount of theft) because it was evidence that many other people were already stealing from the forest. Instead of discouraging people, it made them more confident that stealing was “okay.”

In our case, an example of a testimonial that would case the same problem would read like this:

“Like so many others, I have been writing testimonials incorrectly for years until I read this article.” –John Q. Wrongness

Here are some KissMetrics pointers for getting the most out of your social proof (testimonials in our case):

1. Include pictures next to your quotations.

This is based on a recent study published in the Psychonometric Bulletin and Review stating that pictures next to examples of social proof tend to inflate the subjective measure of truth.

2. Include testimonials from people who demographically match your buyer personas.

More research, this time from Current Directions is Psychological Science, that shows people tend to gravitate to, and be influenced by, people similar to themselves (duh).

3. Go for status.

All things being equal, we will tend to value the opinions of the more notable and influential people. Titles matter. The words of recognized industry leaders matter. So concentrate your efforts on gathering some marquee testimonials.

Applying the 80/20 Rule to Marketing: A First Look

December 31, 2014 Leave a comment

One of the many great lessons I’ve taken from Tim Ferriss is the active application of the 80/20 rule to projects and endeavors.

The 80/20 rule, known more formally as the Pareto Principle, states that 80% of your effects are usually generated by 20% of your inputs. For example, in B2B sales it’s often the case that 80% of the revenue comes from 20% of the customers. If you’re running a PPC campaign right now, it’s highly likely that 80% of your traffic comes from 20% of your bidded keywords. The ratios are not always exact, but the point of the principle is that in any given situation, the vast majority of our effort may not be achieving substantial returns.

This is why analytics have become so important to marketing over the last ten years, and why CMO’s have become obsessed with ROI tracking. The moment that companies could finally calculate the direct effect of advertising, most senior executives had a heart attack at the inefficiencies they saw (there’s a reason they call is “spray-and-pray”). The last decade of marketing has been about reallocating resources to where they demonstrate measurable results.

Pareto 101: Baby and the Bathwater

It’s easy to assume that just because you find an 80/20 dynamic somewhere, it’s always a problem that must be fixed. It’s not. The 80/20 dynamic will always tend to exist, even in optimized systems. It’s part of what happens when a system finds equilibrium. Sometimes expending effort on the lower 80% is absolutely necessary to maintain the top 20%.

Here’s an example: if you sell technology, you may decide that you only want to offer technical support to your top 20% of customers (let’s say “enterprise” customers). They are, after all, the ones who are supplying the majority of the revenue. You can do that, but your brand will be damaged by the refusal of support to the other 80%. So that may not be the world’s best idea.

Now, it’s tempting to apply the 80/20 rule only from a monetary perspective.  But because many marketing departments in the SMB world are staffed by only a handful of people, it may be more interesting to apply it from a time perspective instead. What tactics – hacks – can you apply to marketing that will have the highest gains compared to the amount of time it takes to implement and sustain them?

Where do we face this challenge at its most stark? Digital content marketing.

Content marketing – including blogging, social media, case studies, whitepapers, etc. – is a hugely important part of the digital marketing world. If you produce enough informative, interesting, trust-inspiring content, people will come to your website looking for more of your sage wisdom. They will trust you and your products, because of your authoritative works. They will share your content with their friends and colleagues, who will in turn link to your site and establish those all-important backlinks that are necessary for organic rankings…and then you’ll rule the world…

…in theory…

Content marketing is also incredibly labor intensive, even when content is actively repackaged and repurposed. Marketing Directors tend to fall in love with it because the only expense is salary – a sunk cost. But without an audience actively sharing your content, linking to it, or using it in a specific evaluation of whether or not to buy, it consumes more value in time than the results it generates.

Try This At Home

You want a fun activity? Select an SEO agency at random (these are the agencies who are supposedly the best at using tactics like content generation to foster backlinks and organic search results). Take a look at how much content they’re generating on their own behalf (it’s typically a lot). Then, go to the Moz website and enter their main URL into the search tool. Look at their Domain Authority score (this is how much authority the domain has achieved based on backlinks, social shares, age of domain, etc. – this is the necessary prerequisite to high search rankings). Anything under 50 is pathetic. An agency that knows anything about SEO should have an authority in the 80s or 90s. How did yours score?

Most companies, including the SEO agencies who should know better, produce a ton of original content that no one reads, no one shares, and has no effect on trust, authority or ranking. This is a ripe area for the 80/20 rule to be applied.

Looking to Apply the 80/20 Rule To Marketing

Andy Crestodina, the Strategic Director of Orbit Media, is one of the most successful appliers of Content Marketing for the purpose of search optimization. His book, Content Chemistry, discusses the concept of “atomizing” content. That is, creating one large unit of content that can be broken down and repurposed through many different media. For example, an eBook that also serves as a blog series, the basis for an infographic, the outline for multiple webinars, etc.

This is an example of applying the 80/20 rule to content marketing: creating content that can be atomized and repurposed with minimal extra labor. But this is just one example. Imagine how we could apply this principle to other channels like database marketing, telemarketing, and even traditional channels.

Time to open up the floor. Where in your experience can marketers pick up the most true gains with the least amount of implementation time and effort?

These could be ideas at the tactical level, like headline-writing, simple web forms, or building your influencer network. But I’m really looking for the subtle, couterintuitive ideas that on one’s talking about. Did you ever try a marketing experiment that made no logical sense and have it pay dividends, the way some people increase the fat content of their diet in order to lose weight?

What’s your best marketing time-hack?

How to Know Your Customer’s Mind Before They Do

February 26, 2014 2 comments

A couple months ago I was at an American Marketing Association event on analytics. One of the sponsors was demonstrating the powerful capabilities of their prediction software in a creative way: the set up a fortune-telling booth. I gave them my name and zip code, and the fortune-teller accurately predicted, amongst other things, that I had just bought or was about to buy a new car.

It’s stunning the extent to which our behavior as consumers is utterly predictable, and many marketing companies and retailers are becoming much more efficient in grouping us not only by who we are and what we like, but by what we’re about to do. This is how they do it. Read more…

Consumer Choice as Self-expression

November 27, 2013 Leave a comment

Dr. Michail D. Kokkoris

This month we travel all the way to Bremen, Germany to look at a fascinating doctoral dissertation published in this month’s Psychology & Marketing. Michail Kokkoris, a newly-minted PhD in psychology, brings us insight into the nature of individual choice and how our choices and preferences are affected when we voice our opinions about those choices. I would also like to acknowledge his academic supervisor and co-author, Dr. Ulrich Kühnen.

About nine years ago, I went shopping for a new car and selected the Ford Mustang. I had never really talked much about Mustangs before, but was always interested in them. From the time I bought the car, I loved it. There were no features of the car that made it grossly superior to other cars out there, but I felt a sentimental connection with it. I had to give up that car recently, and it was surprisingly hard to do.

What is choice? recent research suggests what we already knew in our hearts: more than the mere selection of a preference, choice is a method of self-expression. We see this overtly in countries with the most individualistic cultures, like the U.S. However, this same research suggests that even within more collectivist cultures, choice is still self-expressive.

When I purchased my Mustang, something happened to me that happens to some degree with all choices: I rationalized it. I started to idealize the car. The fact that my choice was self-expressive made the car more than just a heap of steal and fuel that moves me down the road. It was something that was associated with me; an extension of my voice in this world.

English: A picture of a black 2011 Ford Mustan...

English: A picture of a black 2011 Ford Mustang v6 Coupe with the optional Performance package. (Photo credit: Wikipedia)

So what would happen if, right before I purchased the car, I was given the opportunity to express my opinion about it in some other way? Let’s say I wrote a Yelp review for it, or provided a testimonial. It turns out that expressing such opinions before making a purchase relieves the impulse for self expression. Since you got the expression impulse out of your system before the purchase, the purchase becomes less of an exercise in self-expression, and you will not feel as strong a connection to the product as you would have otherwise.

There is a fundamental truth lurking within this insight that marketers understand but rarely articulate: rationalization is part of the desired product experience.

This insight is a very big deal to marketers who work their entire careers trying to make consumers feel that special connection; that sense that you are a slightly different, slightly better, slightly more satisfied person now that you have made this purchase. Opinion expression in the smartphone age is inescapable. You don’t have to write a review. We express our opinions without even realizing it. You could be having a text message argument with someone about the merits of a Ford Mustang while you’re in the dealership, and that would be enough to mess with the subsequent decision rationalization experience and the resulting bond with the product. Digital marketers will have to re-examine their user experiences to make sure they are not unwittingly allowing their consumers to express themselves in any way other than making the purchase decision. Otherwise it might interfere with the pre-purchase state-of-mind, and therefore the whole product experience.

Congratulations on your degree and your publication, Dr. Kokkoris. We look forward to reading your future research!

Does Advertising Content Work? Let’s Find Out…

September 30, 2013 Leave a comment
English: Portrait of Milton Friedman

English: Portrait of Milton Friedman (Photo credit: Wikipedia)

One of the great advances in economics to emerge in recent decades is the field of behavioral economics. The preceding generation of economists, including Milton Friedman and others, believed that humans were entirely rational consumers. When they made a purchase decision, it was as a result of a neat mental weighing of opportunities costs verses actual costs and other factors.

Now we are starting to understand the enormous hubris of our own assumed rationality. First Kahneman and Tversky came along and pointed out that human cognition is effected by its own limitations, and that we are susceptible to errors in judgement based on these limitations. Dan Airely noted that human irrationality follows predictable patterns. Then Richard Thaler famously pronounced that you could effect (“nudge”) social and economic outcomes by changing decision contexts. This acceptance and exploration of human irrationality and cognitive bias is giving us a richer understanding of the way we work.

So, let’s see this effect in a true marketing context. Professors Marianne Bertrand (Chicago Booth) and Dean Karlan (Yale), together with their team, designed a field experiment in South Africa. They partnered with a cash loan lender to send direct mail advertisements to potential loan customers. The customers were offered rates selected at random, but that were more favorable than the current market. Some of the mailings only represented the interest rate. Other mailings (randomly) included any of a number of psychological manipulations (in other words, “marketing”). These manipulations included elements like competitive comparisons, promotional giveaways, suggested loan uses, pictures of demographically similar people on the mailer, deadlines and other suggestive priming.

No surprise: these psychological factors, when considered as a whole, had a significant effect on loan take-up. The demand increased by as much as a 25% reduction in the interest rate. This effect should not be possible under traditional economic thought.

There were a few interesting subtleties to the results. First, the psychologically-loaded marketing was generally more effective when the interest rate is high (i.e. the loan is more expensive). In other words, as consumers were influenced more by price, they were influenced less by psychological factors.

Also, there were no subgroups of customers who were more or less susceptible to psychological factors than any other. Many have hypothesized that psychological marketing has a greater effect on the less educated and less wealthy. This does not seem to be the case.

Much of new classical research was conducted a...

The University of Chicago, home to Professors Richard Thaler and Marianne Bertrand. (Photo credit: Wikipedia)

Finally, the psychologically-loaded marketing did not seem to attract a poorer class of borrowers. Normally to increase demand for loans one lowers the interest rate, but in so doing one risks attracting borrowers who are less likely to repay. Therefore there is a certain market equilibrium that exists regardless of the present interest rate. Psychologically-loaded marketing increased demand for loans without changing the risk profile of the borrowing pool. That is, it changed the equilibrium of the market on its own. This means that psychological marketing could be seen as its own competitive dimension, particularly in areas of low price sensitivity.

Michael J. Muldoon, Teacher and Coach, 1948-2012

July 20, 2012 8 comments

Michael J. Muldoon

Anyone can talk a good game about emotional intelligence. But when they pass away, and the line for their wake goes out the door and around the building, it’s a sign that they knew a little something about the subject.

Mike Muldoon was a marketer, corporate leadership coach and one of my professors at Lake Forest Graduate School of Management. He died this past Saturday, aged 63. He was an insightful and demanding instructor, with an irrepressible sense of humor drier than the Mojave. He famously talked through a set of clenched teeth about the things that fashinated him. His students performed loving imitations of his mannerisms. He signed his emails with the tag line: “Don’t tell me the sky’s the limit when I know there are footprints on the moon.” Confidentially, I always thought it was a touch cheesy until now.

He talked about his family constantly, and I met them for the first time at the service. They instantly gave the impression of a warm, close-knit, church-going midwestern family. His son, a tall man with a strong presence, was just married the previous weekend. His daughters, both lovely people, were bearing the receiving line duties with poise. One of them is to be married in less than a month. They had the support of an endless host of friends, family, and well-wishers. Read more…