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word of mouth or the importance of online information in driving purchase decisions October 23, 2008

Posted by Luis in October.
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30 comments

In a recent post in TMCNet, I found interesting information about a recent survey conducted by Rubicon Consulting.

The survey showed that reviews received through word of mouth have more influence on American buyers than online or written reviews. The survey underlined the importance of online information in driving purchase decisions, but the most influential information is beyond the direct control of companies selling products and services.

They explain how social netwokring is perceived too and they advice companies how to benefit from them.

“Many companies downplay the importance of online communities because only a few percent of all Internet users contribute to them heavily,” said Harry Max, a principal at Rubicon Consulting.
 
The Rubicon Consulting advises companies to make more of an effort to reach out to these online communities. The study also found that the Web is used in order to garner info about products even before users think to call product manufacturers or dealers. 

I found really interesting one confirmation more of how is the new generation of age 22 and under. The report also tries to categorize the variety and nature of the posts written online. Young Americans (age 22 and under) tend to be noisier than older ones and they account for about half of all the content and comments posted online. Social media sites, wikis, blogs are also the places users tend to look up for info on their products. This population is definetely a good reference and testing population when we are developing our rsitez social networking software.
 
The report notes that most Web users are consumers of information, not creators. About 80 percent of user generated content on the Web, including comments and questions, is created by less than 10 percent of Web users. But despite the low content creation rates, online communities have enormous influence on almost all Web users. The personal reviews from them are far more influential than official reviews posted by a Web site or magazine, or information posted online by a manufacturer.
 
The study, developed by Max and Rubicon Principal, Michael Mace, also confirmed the power of most frequent contributors — the 9 percent of Web users who produce 80 percent of all user-generated content. According to officials, the survey covered 3,036 active Internet users in the United States, and should be projectable to the U.S. Web-using population, about 75 percent of the U.S. population ages 13 and up.

To me, this study is one more confirmation of the importance that social netowrks are acquiring. Brands that are not putting attention to this evolution of consumer behaviour will pay the price. It’s also curious to find out that 9% generate 80% of user generated content. Savvy brands will target this 9% to support their products. At some point part of this 9% will identify a way to monetize this effort…more innovation is coming!

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Social Media Consultans – Can you trust them? October 20, 2008

Posted by Luis in October.
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18 comments

Is your company looking for creative ways to reach your customers?
Do you just find out that your competitors’ last Press Release is about a Social Media campaign?
Is a Social Media Consultant telling you that he/she can establish your company’s presence on specific social networks for a mere $150-$500/h?

In a post by Jennifer Leggio in ZDNet, Social media consultants: snake oil or value add?, Jennifer explained why you should not believe everything that a Social Media Consultant is telling you. This is some parts of her post:

“Social media consultancy, for the most part, has gone the way of the snake oil salesman. While there are many qualified business consultants who can help a company leverage social networking as part of its overall strategy, there are far too many who are selling their services based on the ability to help establish a company’s presence on specific social networks. Many of these consultants have been successful building their own personal brand, however, prowess for personal brand building does not prove an understanding of enterprise business needs.

Companies need to stop believing the hype that social media is an “everything drug.” It’s not. It’s a strategy that needs to be considered and tailored to fit specific business needs.”

That’s right on!

At rSitez, we have worked with Consultants that understand the value of Social Networking as part of the overall strategy of a brand and this realtionships were great. Unfortunately, we also have worked with Consultans that completely mislead their customers in what a Social Network can do for them.

In order to help, let copy some questions from Jennfier before you hire a Social Media Consultant,

Ask yourself:

  • What is the profile of your ideal customer / sales prospect?
  • Where are these ideal customers / prospects spending their time online? (Note: It might be worth purchasing a market research study on your customer demographic and Web presence before hiring a consultant)
  • What are other companies in your space doing? Can you get your hands on success metrics?
  • How educated is your management team when it comes to Web presence and Internet branding? If you push them hard to sell the concept, what measures must you take to prove value?
  • Can you do any of this for free? Are there people on your team or other teams who are social media savvy who would love the visibility of a cutting edge project?
  • Can you really measure the ROI of what is being recommended? If it’s not clear, how else will you measure success?

You need to realize how Social Networking fit in your overall startegy and be willing to give part of your marketing control.  Are your ready?  Any anecdote with Social Media Consultants?

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Business Networking with Social Networking Sites during Crisis Time October 13, 2008

Posted by Luis in October.
Tags: , , , , , ,
20 comments

I would like to refer to an excellent article from Marci Alboher @ the New York Times. Marci explains how important social networking sites could be for networking purposes during crisis times. She also points to niche social networking sites for this purpose. Niche sites has been a recurrent theme in this blog. ( Check niche social networking sites vs mass market social networking sites post)

An extract of Marci’s article:

As the job market continues to sour, it is important to take advantage of all available tools to keep up with your personal and professional network. So if you’ve been joining social networking sites and never taking the time to complete your profile — or if you’ve been hitting the delete button when friends and colleagues invite you to connect on a new online platform, now is a good time to start paying more attention. Here are a few things to think about as you take the plunge or take your social networking to the next level.

LinkedIn has taken hold as the standard for most professionals, but also consider spending time on sites catering to your own industry or profession. Keep up with the trade press in your field to figure out where your peers are congregating online. Specialized communities exist for just about any industry or interest group — like NurseLinkup.com (for nursing professionals), Model Mayhem (for models and photographers), Mediabistro.com (for media professionals) or Lawyrs.net (for lawyers).

Though online social networking sites are newish, the same rules of old-fashioned in-person networking apply. Build your reputation as a giver, rather than as someone who is always asking for favors. If people in your network, for example, ask for help or introductions, check in periodically and respond when appropriate. If you’ve shown that you are a giver, people will rally to help you when you have a need to tap your network.

Use these sites to showcase your experience and achievements. If you or someone in your organization has recently given or heard a terrific presentation, won a case, published an article or appeared on television, post something about it. If you do this in the spirit of sharing good information with others — like this video about the current economic situation that Ramit Sethi, a personal finance blogger, distributed via Twitter and other tools — you’ll have the perfect marriage of self-promotion and sharing good information with your online colleagues and fans.

Build your presence on these networks when you’re not looking for a job. Make sure that your profile is up to date. Periodically check to see if there are people you know that you could be connecting with. Be responsive to requests from your network. Should you then need to look for a new opportunity, your network will be well tended and it won’t be awkward to connect with people who can be of help.

Finally, a few words of caution to keep in mind:

When you create a presence on a social networking site, take the time to learn how to use it properly. If the site offers an online tutorial, do it. If possible, find a friend or colleague who is already part of the community to give you a primer on the site’s etiquette.

Do not join every social networking site that hits your radar — there’s a reason the phrase social networking overload” has been cropping up a lot on blogs lately. As with professional organizations or clubs, it is hard to be a real contributor when you are involved with too many groups. That said, you might find it helpful to join a handful of sites and then choose one or two on which you will be more active.

Social networking sites make it easy to contact people, but be mindful of your online manners. Do not try to connect with people you don’t know personally. Do not use these tools to stalk or send spam to people who haven’t been otherwise responsive to you. And make sure to review and follow the guidelines of any community that you join.

At rSitez we are helping entrepreneurs and professional to build new niche social netwoking sites every day so if you don’t find the social networking site that will help your professional field maybe it’s time to start one! Let us know we are here to help!


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How to Market your New Social Networking Website October 12, 2008

Posted by Luis in October.
Tags: , , , , ,
25 comments

I’d like to share a great post that appeared in Elance this week from Chris Bennett, the President and Founder of 97th Floor, a leading edge SEO Firm specializing in Search Engine Optimization, Reputation Management, Social Media Marketing and Blog Optimization.

This post goes in the same direction that my previous post about niche social networking sites vs mass market social networking sites.

Elance is an online workplace where businesses connect with qualified professionals to get work done. rSitez had used Elance with very satisfactory results. Elance wrote about rSitez a full article back in March 2008.

The posting is great is highlighting things you need to know when you start your online community:

Just building a feature-filled social networking site with a sound infrastructure is only the start of your website journey. Don’t fret, though, because it’s an exciting journey: social networking sites are the most visited area of the Internet. According to recent statistics from Hitwise.com, social networking actually accounts for 11% of all web visits.

As expected, this popularity begets competition: competition to keep your site from resembling an online ghost town and competition to find and convert the right people for your particular niche.

The good news is that you don’t have to navigate the competitive waters on your own. We asked Chris Bennett, friend of Elance and social networking guru, for ways you can market your social networking website and stand out from the competition:

1. Identify your target audience

Who are you targeting — specifically? To help answer this question, think about the target age, gender, interest, and geographic location of who you want to use your new site.

Remember, social networkers are already busy on sites like Facebook, MySpace, Digg, and others, so the average person probably won’t add a “general” social networking site to their agenda. So, choose a niche and identify the relevant audience so you can stand out.

Once you know who you are targeting, figure out how many people are in your target audience and might be interested in your site. To do this, think about keyword searches this audience might do to find sites like yours, and then check out keyword search volume on Google and research data on sites like compete.com and hitwise.com. You should also visit Stumbleupon, go to groups, and find out how many people subscribe to the group or groups related to your topic.

2. Beta test – thoroughly

Social networkers have choices, and they definitely don’t have the time or willingness to deal with problems. So before you launch, you need a really strong beta site that’s been tested and tested and tested. And tested one more time for good measure. If you have the budget, consider private or third-party testing – not only will they do a thorough job, but they may notice problems that over time you’ve come to ignore.  The easiest way to turn off a potential customer is to deliver a sub-par experience.

In addition testing the user experience, be sure to include server and load testing: When sites go down, visitors are turned off and leave, most likely for good.

Remember that social media users as a group tend to be more technically savvy, and as a result, more likely to bail on you if they’re unsatisfied. The bottom line is that you’ll want to have your site in top shape before driving traffic to it.

3. Seed your site

Say you’re creating a site for interior designers and your goal is for thousands of designers to upload photos for the community to comment on. At launch, make sure you have tons of photos in place.

A common mistake is assuming visitors will load your content for you, but in reality almost no visitor will commit to making that jump unless they see other people have already done so. Think about it — would you as a visitor upload photos, add descriptions, and comment on other photos when it is unlikely people will see what you’ve done?

The basic principle is that visiting a social networking site is a lot like using a forum – if there’s no activity, you’ll leave. So seed your site with the kind of content you want users to generate and interact with.

How can you do this? Get a beta group to help you seed your site – even if it’s just your friends and family. Not only will you be seeding, you’ll also be performing additional beta tests in the process.

4. Network to generate traffic

The key message here is that social networking requires online, not offline, buzz generation. Get in touch with online influencers during your website’s pre-launch phase and more general blogs and PR sites post-launch.

How? Use Technorati and Google Blog Search to identify the popular blogs that focus on your demographic. Then, after you’ve conducted beta testing and you’re proud of your site, contact the major bloggers and influencers in your demographic and ask them to beta test your site prior to launch. By reaching out early, you’re showing you respect their knowledge and you really value their feedback.

That’s a much better approach than contacting them after the launch. Why? Most will be flattered you sought their opinion ahead of time, and not only will you get valuable feedback, you’re more likely to be reviewed when you do launch. Reviews and mentions by influencers help create buzz – and buzz creates traffic.

Then notify influential blogs like techcrunch.com, mashable.com, and killerstartups.com. Keep in mind they get tons of requests, so make sure your pitch is to the point.

5. Consider traditional online advertising

If you have the budget, contact the large sites and forums in your demographic that sell ad space and buy a few ads (federatedmedia.com could be a good source). But do not delude yourself into buying just any traffic, and don’t focus on general-interest sites even if they get huge amounts of traffic. In the early stages of your website, you want your ads in front of the right eyeballs – not just any eyeballs.

6. Don’t forget SEO

Getting traffic from search engines is key, right? And getting free traffic is even better. To do this, one of the first things you’ll want to do is identify keywords and continually optimize your site and pages and get ranked for those words.

For example, if your niche is interior design, you’ll definitely want to rank for terms like “interior design ideas,” interior design photos,” “interior design community,” etc. Look for keywords that describe the content you offer instead of products and integrate that content into your pages. (Unless your site is devoted to product reviews or discussions, of course.) And remember, it’s hard to rank highly for general terms; it’s much easier to rank highly for specific and focused keywords.

7. Participate on sites related to your niche

If there’s a huge forum or a thriving group in StumbleUpon in your demographic, set up an account, link back to your site, and interact and become well-known in that community and you’ll generate traffic to your site.

When you set up your account, make your username the name of your social site to help further brand you. Make a name for yourself – actually, for your site – in your demographic. Here’s a guide to help you set up a StumbleUpon account and, if you like, becoming a top Stumbler.

8. Create spokes for your hub

Set up Facebook and MySpace pages that are extensions of your site. Then search and network with people who share your interest. Aggregating content from your social site and placing it on your Facebook and MySpace pages will give potential visitors a sense of what is on your main site.

You can also set up a Twitter page, with the name of your site as your Twitter username, and tweet all day about what you’re working on and what’s new on your site. You can also perform searches on Twitter to find people interested in your niche. Many influential bloggers use Twitter to alert their readers about new content – you can too.

Make sure you also link to all your Facebook, MySpace, Twitter, and Stumbleupon profiles from your main site – basically, anywhere you’ve created an account related to your brand.

9. Analyze, analyze, analyze

The key to effectively marketing your social networking site is to understand conversions. A conversion in social networking terms is not a sale, it’s a sign-up. (Marketing is, after all, about spreading the word, getting the right visitors, and converting them.) A free tool on blvdstatus.com can help you understand where visitors came from before they signed up, whether based on a keyword, a site, or a blog.

Understanding where your conversions come from helps you determine where to focus your marketing efforts. If a mention on a particular blog resulted in a nice volume of sign-ups from the blog’s readers, you’re on to something. Analytics help you determine where it’s worth spending your marketing time.

10. Encourage your active community

Think of ways to get your community to interact with each other. The benefit is that ever elusive ‘network effect’ – when an active community creates buzz and word of mouth, yielding more users.

Things you should do to facilitate interaction: comment on user comments, create contests for things like adding content, allow users to vote, and let users submit questions.

Note: I’m sure you’ll be surprised by what can create interaction. We work with a best-selling author who, due to time constraints, isn’t easy for the average reader to contact. We asked site users to submit questions they’d like the author to answer, and then the community voted on the top ten questions. It’s so popular it’s become a monthly feature on the site and generates an incredible amount of participation and interaction.

11. When you reach critical mass, work on features to fine-tune the community experience

Once the buzz from the launch dies down, new features can build new excitement, both within your community and outside. So spend time adding features or tools. Then contact bloggers and influencers to let them know what you’ve done – not only will you maintain a vibrant community, but the buzz will help you generate more new users.

(original posting)

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Google patent pending technology for social networking October 3, 2008

Posted by Luis in October.
Tags: , , ,
21 comments

This week Business week wrote an article on Google efforts to use social networking as part of its search algorithms. The article is also commented by web-strategist and analyst at Forrester Research,Jeremiah Owyang. This is an extract…

“Imagine there was one number that could sum up how influential you are. It would take into account all manner of things, from how many people you know to how frequently you talk with them to how strongly they value your opinion. Your score could be compared with that of pretty much anyone in the world.

Maybe it’ll be called your Google number. Google (GOOG) has a patent pending on technology for ranking the most influential people on social networking sites like MySpace (NWS) and Facebook. In a creative twist, Google is applying the same approach to social networks it has used to dominate the online search business. If this works, it may finally make ads on social networks relevant—and profitable.”

“[Google] search displays Web pages with the highest influence—it makes complete sense for them to extend this to online communities and people,” says Jeremiah Owyang, an analyst at Forrester Research (FORR).

Full article

Maybe Google will be able to do it again and build a great money machine with this approach. I hope so. That’s great news for rSitez and all the people in the social networking industry. This can accelerate even more the adoption of this technology. One risk, what happen if someone particularly influential prefers to be anonymous? Thoughts?


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