SOCIALNOMICSHow social media transforms the way we live and do business. Erik Qualman Deanna Middleton
Erik Qualman:• Global Vice President for online marketing of EF education (world’s largest private educator)• Fortune 500 speaker• MBA professor at Hult International Business School.
WHY DO WENEED TOUNDERSTANDSOCIALNOMICS? • As present and future marketers, business people, & hopeful entrepreneurs, we must embrace and adapt to social media to capitalize on the benefits: • Increased sales • Creating and nurturing customer relationships • Decreased marketing costs
HOW SHOULD WE UNDERSTAND SOCIALNOMICS?@ Word of Mouth- World of Mouth@ Social Media= Preventative Behavior@ Death of Social Schizophrenia@ The transparency of the “Glass House Generation”
• Social Media is the World’s Largest referral program in history • We care more about what our neighborsWHAT IS say than what google does- instead of futile searches we see what our friendsWORLD like! • One message that remains constantOF even after hundreds see itMOUTH? • The real winners of social media referrals are the products and services that are genuinely good • Reduces redundant labor, time, and frustration • Challenge for companies- social media is shifting the traditional business practices across all levels.
SOCIAL MEDIA=PREVENTATIVEBEHAVIOR “live like your mother is watching”
PREVENTATIVEBEHAVIOR • We have to think corporately and individually about our actions – will they put our company or out image in a negative light? – is it worth the risk? – Your party animal should stay caged
SOCIALBRAGGADOCIANBEHAVIOR • When we get in the competition of who is doing the coolest things • We evaluate our friends and their activities and ask ourselves what are we doing with our lives? • Challenges companies to create products that consumers take ownership of.
DEATH OF SOCIALSCHIZOPHRENIA “it is really difficult for a person who is well rounded to stand out in this new world”
WHAT IS SOCIALSCHIZOPHRENIA? • We create personas at work, in social settings, and at home “being good at – we can be who we want to be in that situation something is better and at that time and with those people… than being good at – Our corporations have personas too everything” • We can’t be multimillion dollar givers and then be million gallon polluters • We also can’t be good at everything and have too many personas. – Social media develops transparency that negates this “persona” behavior – Companies also have to focus on their core strength and their niche.
WINNERS AND LOSERS- IN 140CHARACTER WORLD • People’s lives are moving online- companies have to do the same • They do not want traditional marketing • HOW do we capture your faithful following of customers as everything moves online? 1. admit your faults and move on 2. Let fans and customers contribute to your products 3. Understand your customers of today could be your competitors of tomorrow- stay on the cutting edge and don’t let that happen! 4. Listen first, sell second!!
WHAT’S NEXT FORTHE GLASS HOUSEGENERATION?How do we stay transparent and successful? • Referrals are still the most effective form of marketing • Challenges companies to start moving from traditional marketing to create discussions about products among users/ buyers using social media
WHAT DID ILEARN?• This book makes me want to research the effects of word of mouth to see if it should be recognized as an actual form of advertising. – If it is recognized, how do we measure it? • I have also learned about the importance of staying on the cutting edge and keeping your business where the customers are.
WHONEEDS • Everyone related to social media- which is everyone… • If you are on one end of theTO communication channel, you need to know what companies are doing onlineKNOW? join in & check out your favorite companies!
SOURCE • Qualman, E. (2011). Socialnomics: How social media transforms the way we live and do business. New Jersey: Wiley and Sons.