Will Groupon Kill Gramma? Social Discounters and Small Business

September 8, 2010 by Jessica Ziegler · View Comments 

Today I noticed a website that had enabled a social discount promotion (think Groupon, LivingSocial, Yolodeals, etc.)  directly on its own website. An interesting switch, where the retailer owns the deal, eliminating the middle man and their take.

Social discount sites offer a product or service at a deep discount if enough people buy into the deal. A typical deal would be to allow consumers to pay $15 for $30 in food and beverages at a specific restaurant. It’s a pretty good deal for consumers if they are certain they will use the deal.
I LOVE these deals, I have several queued up in my inbox as I write this. But I worry.

Last week I had the opportunity to talk with a small tour company operator who had offered one of these social discount promotions. He said that they had no idea what to expect, but managed to sell over 1000 of their tours during their day-long promotion. This is a LOT for a small, local business, especially when you look at the numbers. They discounted their tour by 50% PLUS the discounter took another not-insignificant percentage of the discounted price. These promotions can be a great way to gain exposure for your business, especially since most of these sites are local-facing, BUT the deal can be a financial killer.

With deals such as this, the business owner is counting on a certain percentage of people not redeeming the deal, aka “breakage”. This particular business owner is looking at about 80% redemption. That is HIGH.  In the end they will most likely lose money on this promotion, and only time will tell if they make it back in increased business at  full price.

Businesses need to take a close look at their price point and costs before committing to this sort of promotion. Giving away $20 in food and drink to get $10 up-front cash-in-hand can work well, and consumers are more likely to blow off something they only paid $15 for if it’s inconvenient to redeem. If you’re giving away $75 of a $100 item to get $25 cash-in-hand, that might not work out as well AND your breakage is bound to be lower because the consumer would be out $50.

Even large retailers are getting in on the action. The now famous $25 for $50 to spend at The Gap Groupon from August resulted in $11 million in sales on Groupon during the one day promotion. The Gap has yet to figure out what the promotion will mean for their bottom line, but I anticipate a LOT of Gap products under the trees this year.

The question is, how long before businesses start getting killed and back away from these promotions? Or at least start to back away from paying the middle man to run the promotion? Where is the line between paying for exposure and taking a hit? What is the cost difference between running an ad with a coupon, with zero guaranteed revenue and running a social promotion with guaranteed revenue but higher per-customer costs?

I’d LOVE to hear from anyone else who has sponsored a social discount promotion, how have they worked out for you?

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Vestor Logic Screen Cast: How to Add a Custom Landing Tab to a Facebook Fan Page

September 2, 2010 by Jessica Ziegler · View Comments 

In today’s quick screen cast I’ll show you how to add a custom landing tab to your Facebook fan page.

Additional Note: Sometimes Facebook will automatically add your FMBL as a tab. If you are NOT seeing your fbml as a tab or as an option in when you click the plus sign, go to edit page > scroll to your fbml > under the fbml title click “Application Settings” > make sure the tab is set to “added”.

Stay tuned for more screen casts for Facebook and Twitter. Please comment below, we’d love to hear your thoughts and suggestions for what you’d like to see!

Related screen casts:

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Vestor Logic Screen Cast: Intro to FBML for Facebook

August 30, 2010 by Jessica Ziegler · View Comments 

Today’s quick screen cast will discuss FBML and how to use it to create a custom Facebook fan page for your business.

Additional Note: Sometimes Facebook will automatically add your FMBL as a tab. If you are NOT seeing your fbml as a tab or as an option in when you click the plus sign, go to edit page > scroll to your fbml > under the fbml title click “Application Settings” > make sure the tab is set to “added”.

Stay tuned for more screen casts for Facebook and Twitter. Please comment below, we’d love to hear your thoughts and suggestions for what you’d like to see!

Related screen casts:

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Vestor Logic Screen Cast: How to Create a Facebook Fan Page

August 27, 2010 by Jessica Ziegler · View Comments 

In this brief screen cast I’ll cover what you need to create your own Facebook fan page for your business.

Additional Note: If you want to create a test page to experiment with building your own fan page, when you are done you can delete the page by going to the page you created>edit page>delete page (link in sub nav near the thumbnail)

Stay tuned for more screen casts for Facebook and Twitter. Please comment below, we’d love to hear your thoughts and suggestions for what you’d like to see!

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Getting More Out of Twitter

August 18, 2010 by Jessica Ziegler · View Comments 

While in the process of writing the new Twitter training lab documentation (coming soon!), I’ve been playing around with some of the more advanced components of Twitter. Here are a few of my favorites:

Twitter Advanced Search

This easy-to-use web based form allows you to really hone your search. You can search within specific date ranges, search tweets by or references to specific people, search retweets, etc. One interesting feature is the ability to filter by location. This piece is bound to grow more powerful as users see the value in geo-targeting themselves and their tweets, and as location-based services like Gowala and Foursquare continue to gain traction.

One of my favorite features is the ability to filter based on “attitude”, tweets that use smiley faces, frowns or question marks. This is nowhere near as thorough a view as offered by products like Consumer Base that really study and interpret the language of tweets, but it’s a pretty decent tools for the average user.

If you prefer to write your search queries yourself in the twitter search box, the Twitter Advanced Search Operators are for you. These operators reflect the same filters as the advanced search interface, but without all that annoying ease-of-use. If you write queries regularly, this may actually be faster for you. It’s syntax-tic! Moving on…

Search Widget
I love this one. Use the interface to define your search query, title and caption, test it right there, then finish and grab code. Voila! You can a display a custom stream of tweets related to whatever you choose right on your page or blog.

For example, say you run a blog called SchnauzersRock.com, because you love Schnauzers. (No, I don’t love Schnauzers, we’re talking about YOU). You could search for Schnauzers, love, I love Schnauzers. Then add a title and caption and…

Twitter widget

Paste the code right on your site for non-stop Schnauzer love.

Or course these tools offer compelling listening tools for your business, even if it is not Schnauzer-related. Use advanced search to find people worth following, use the search widget to create a real time view into conversations that are, and aren’t, happening around your industry right now and share with your readers.

How are you using these tools to gain insight into your business?

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Helping vs. Selling

August 12, 2010 by Jessica Ziegler · View Comments 

Last week while reading The Key to Social Media Success is Just 2 Letters, by Jay Baer, I was struck by his notion of helping vs. selling. His basic concept is that by giving, developing those initially trust-based relationships through sharing and being helpful, clients will come to you when they move beyond DIY mode. This makes a lot of sense to me because I am not a sales person. At all. It takes a very specific skill-set to walk into a room and walk out with a signed contract, and I don’t have it.

However, I am a helper (some might say enabler; tomato, tomahto). It’s easy to forget about these opportunities to help in the midst of maintaining clients, creating proposals and day to day business tasks.

Jay refers to several good examples of companies creating something helpful that leads not directly to sales, but indirectly. Nationwide Insurance’s iPhone app for on-site accident reporting, Geek Squad’s YouTube channel, I won’t go through all the details here since he’s already done such a beautiful job in the article (you can read it here). They position themselves to become your go-to in those instances where you need that next level of help.

He recommends doing a “helpfulness audit” of your company. So we did. We realized that in the process of creating our new Training Lab series (currently in development) there were several opportunities to create screencasts of some of the core elements involved in setting up various social media initiatives.

Currently I am deep into developing our Facebook Training Lab. Some of our clients already use Facebook on a personal level, but there are many out there who don’t, and even more who don’t use it for business. As I began outlining the structure of the Facebook Training Lab, I immediately identified four topics about which we could create free screencasts. These topics may seem simple to some, for others these will be akin to a foreign language. They represent the core building blocks for creating a Facebook “fan” page. Here is my list so far:

  • How to create a Facebook Page for your business
  • Intro to fbml for Facebook
  • Creating a custom landing page for your Facebook Page
  • Adding admins to your Facebook Page

By offering these out to the world, we can help people create their own Facebook Page (for the uninitiated, “pages” are for businesses, brands and interests, “profiles” are for individuals). If they stumble or want to go to the next level, we’ll be there. By opening the door we open the conversation.

Now it’s your turn. Consider doing a about a helpfulness audit. How do you rate? Where could you and your company be more helpful in your space?

We’d love to hear about your progress, and will keep you up to date on ours.

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Star Client: How Desert Perinatal is Doing Social Right

August 5, 2010 by Jessica Ziegler · View Comments 

Several months ago we had the pleasure to work with Tina Senter at Desert Perinatal Associates in Las Vegas, NV.  Tina runs the marketing department for this practice specializing in high-risk pregnancies.

Vestor Logic was responsible for redesigning their existing website and implementing a WordPress install. We set up accounts and built a Facebook fan page and a Twitter background to maintain a consistent look across their various marketing initiatives. All of these are pretty foundational elements when starting a social media marketing initiative.

Often a client will have big ideas about all the ways that they could use social media to reach out to their existing clients, but fall short when it comes time to take the reins back from us to DO something with it all. Then again, sometimes we get a client like Tina who is ready to run with social media…

Here are some of the things that Tina is doing right:

  • Desert Perinatal runs a weekly contest looking for a super cute baby picture from their fans to use as their Facebook icon for the week.
  • Tina uses Facebook to engage fans by posting common questions that most moms can’t help but answer in a forum like Facebook, such as: What is your biggest frustration as a parent right now?  Or, how did you transition from  a crib to toddler bed?
  • She allows fans to post on the fan page wall. Parents will post pictures or questions of their own. She is allowing a community to form on her watch, without directly interfering or trying to guide that process.
  • Tina creates a monthly newsletter featuring classes, products, recipes, letters from the doctors and Q&A with the nurses, always promoting the Facebook page and Twitter feed to build awareness.
  • She also had Vestor Logic create a postcard-sized print version of the Facebook fan landing page as a take away at the front desk to build awareness.
  • She uses tools to automatically post Facebook page updates to the Twitter feed.
  • She runs a birthday cupcake promotion encouraging fans to post birthday baby pics and receive a cupcake certificate from a local bakery.

Most importantly, she is consistently DOING something in her social media space.

Tina certainly has some built-in advantages with her “product”, new moms are desperate to connect with other new moms and are frequently stuck at home for the first few weeks/months. Her population is all local to one city. She works within a field that people are passionate about: having babies. All those cute pictures don’t hurt, either.

BUT, she easily could have set up these accounts and wandered back to the textbook marketing approaches. She chose to move forward, stay engaged and experiment and it is truly paying off.

So. What can you do to create a community within your client base? How can you engage with your clients on a more meaningful level?

Update: We know, it’s not that easy for everyone. Maybe you don’t have the bandwidth, the staff, the understanding to make it happen for your organization. Soon we will be releasing a set of social media launch products: labs and engagement packages, to help get over that initial hump between set up and social stardom. Stay tuned…

Want to be notified by email of the new things that Vestor Logic has to offer?  Join our email list to get those updates in your inbox! Subscribe to Vestor Logic by Email.

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N9ne Group gets Twitter training

July 27, 2010 by Tim Miner · View Comments 

New_9G_Logo Last week I had the pleasure of leading a training session for a group of about 80 N9ne Group employees.  As the owner and operator of most of the clubs, restaurants, and venues at The Palms Hotel & Casino in Las Vegas, the N9ne Group views Twitter as a very powerful tool for their employees on the front line.

Vestor Logic led a 90 minute Twitter training session held in the Rain nightclub for the 80+ attendees covering everything from an overview of Twitter, the anatomy of a tweet, the etiquette of the social platform, and best practices for success.

The hosts and promoters that serve a critical function for the N9ne Group venues like Ghostbar or Rain use Twitter every day to engage with their visitors.  They keep their customers updated in real time on the celebrity sightings at each venue and provide a pulse on the activities each night.

The restaurants under the N9ne Group umbrella like N9ne Steakhouse and NOVE Italiano also have big plans for Twitter to better engage with their dining guests.  Look for big things from them in the near future as well.

image

You can follow N9ne Group on Twitter @N9neGroup or following any of there venues specifically at the following handles:

You can also follow the blogs for each venue:

If you would like to discuss training for your organization on any social media topic or platform, just shoot us the details.  We tailor each training sessions to the needs of the client.  We can cover any of the topics that are relevant to your business.

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How Steve Jobs Does It

June 16, 2010 by Jessica Ziegler · View Comments 

A few days ago I was reading through the responses to the Wired Magazine iPad story: How the Tablet Will Change the World, they reprinted in their mail section and it got me thinking about the importance of the right tool for a given job.

In relation to the iPad, many of the critics bemoaned the small size, lack of tools, small keyboard, etc. Mention is made of gamers, CAD artists, designers, video editors, writers, etc. and how the tablet will not be able to replace a laptop or desktop. The assumption is that the iPad will attempt to replace your PC. I don’t think this was ever the intention.

As I sit back and listen to the pros and cons relating to the iPad I wonder, do users really think that the iPad is meant to replace a workhorse laptop or desktop? As a marketer that seems unlikely. The reality is that there are an enormous amount of people who use a computer for a very few tasks. Some assume that the iPad will never take off. I think it will because it falls into a specific-use sweet spot. It’s too small to replace a laptop, it’s too big to replace an iPod. It probably will kill Kindles and Sony readers, but that’s about it. Maybe the iTouch, I guess it depends on how badly you want those tools in your pocket. For some users it will be all they need. For many more, it will supplement what they already use.

My husband wants an iPad, he wants it bad. I asked what void this $500 bit of technology would fill in his life. He said that many of his coworkers at EffectiveUI in Denver leave the laptop on their desk at home and bring the iPad to the couch to watch movies, surf, etc. It’s more lightweight than trying to get comfortable under a 5-8 lb laptop. My husband also plays in a band. He wants to sit it on a music stand during his band practices/appearances to access and display set lists. As opposed to shuffling thru pieces of paper, which is apparently unacceptable. Of course I think this is absurd but I’m one of those “reluctant adopters”, don’t need it, not getting it. I didn’t even get a cellphone until my employer paid for and insisted I carry one. In 2002. I know.

However, this is a good example of how this particular tool can be the right tool for a given job. I can see the advantages to being able to quickly scroll through a set list and click over to individual songs, I get it. You’re not going to want to try to prop a laptop on a music stand and anything pocket-sized is probably going to be harder to navigate with a guitar strapped to you than a sheaf of paper. It’s big enough, it’s bright enough, and gosh darn it, he may have a point.

As I write this I consider how this comes back to social media. Social media is never going to solve every marketing problem in every instance, but there are some really “right” tools in the mix. Is the ice cream shop down the street going to benefit from, or be able to keep up with Twitter? Maybe not, but I bet Foursquare could be powerful for them (or do I speak too soon?). Does your community garage sale need a Facebook fan page? Unlikely, but Craigslist would be hugely valuable. The right tool for a given job.

I think the iPad will find its place and become indispensible to the adopters, Apple has customer evangelism on its side. My husband wants the iPad and he will actively find jobs that it can be the right tool for, the price point insists upon it. For $500, by god, you will give serious thought to the niches in your life where this tool will fit before you plunk down the Benjamins. I think Steve Jobs knows a bit more about consumer motivation than we do.

The fact that most social media is free or almost free may actually be working against it. Companies are jumping in, flailing around a bit and then sharing their sorry stories of failure. It’s easy to jump in, it’s harder to sit down and really think about how you are going to use these tools and which are the right tools for the job, especially if you’re not even sure what the job IS, which is the crux of the problem.

Before you jump in, identify the job: What results are you hoping to achieve with social media? Be specific, “more sales” or “more traffic” is not specific. Who is the intented target of your campaign? Where are you going to find them? How exactly do you intent to engage them (because it’s more than just delivering a message)? Answer these questions FIRST, then decide which tool/s to use, and you’ll be on your way to developing a successful social media campaign.

Define the job, find the tool. That’s how Steve Jobs does it.

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The New Facebook ‘Like’ button and the Open Graph Protocol

May 7, 2010 by Jessica Ziegler · View Comments 

Recently some of you may have noticed that Facebook changed it’s “Become a Fan” button to a “Like” button. The thinking behind this is that it is less of a commitment to “like” something or someone than it is to become a “fan”. Being a fan implies a certain level of engagement with a brand or person. You may be willing to tell the world that you are a “fan” of Whole Foods or U2, but you may only “like” M&Ms. Are you and M&Ms casual acquaintances or in a committed relationship?  This move opens the doors for users to feel comfortable connecting with more brands.

Another reason behind this move is Facebook’s new integration with the Open Graph Protocol. According to the www.opengraphprotocol.org this: “enables any web page to become a rich object in a social graph. For instance, this is used on Facebook to enable any web page to have the same functionality as a Facebook Page”.

In essence, this means that by inserting a few simple <meta> tags into your page header and inserting a facebook “like” button on your website with one line of html you can turn your page into a “graph object” which can be found and tied to the social graph. There a also a few other social plug-ins you can utilize, such as an activity feed or recommendations (see more here http://developers.facebook.com/plugins).

What does this all mean? It means that users can establish connections to you and your brand across the entire web, and tie it back to their facebook profile. Facebook becomes a vast repository of everything you and your friends “like”. I find it hard not to think of it as the broadest marketing research experiment ever undertaken.  And all users have to do is “like” stuff.

The negatives, as always with Facebook, relate back to privacy. Any user who is not on top of their privacy setting can cry foul. Yes, you are telling your friends that you like Bon Jovi, you may be telling BMG and Sony as well. I personally don’t have huge issues with the privacy issue, but I am in marketing so I may be biased.

Overall, I think it is an extremely intriguing move and I for one cannot wait to see what the adoption rate looks like. I “like” it.

What about you? Does this move make you nervous? Excited? Angry? Tell us.

Read More about the Like Button:
Why I Like the Like Button: Spreading Nonprofit Messages

Are Like Buttons Evil? The Open Web Reacts To Facebook’s Not-So-Open Graph

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