Paul Gillin's Blog - Social Media and the Open Enterprise
Friday, May 23, 2008
  An Online Video Strategy That Hits The Mark

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I just returned from my second trip to Toronto in the last two months and was again impressed with the Web-savviness of the Canadian audience. Did you know, for example,that Canadians are the world's most active users of Facebook? Or that Canadians spend, on average, two morehours per week viewing online video than their counterparts south of the border?

And don't give me that "Of course! It's cold up there!" cliché. Canadian homes are wired and its businesses are doing some very innovative things to reach those web-savvy customers.

Take FutureShop. Canada's largest consumer electronics retailer is using online community not only to learn more about its customers, but to help sell products and support customers. It has built an online advisory and customer support service that is like nothing I've ever seen.

"Ask an Expert" is formulated on a high-touch model in which sales associates are taught to be valued customeradvisers. The company has come up with a strategy to duplicate that real-world experience online. The screen shot shows "Aaron," one of the video avatars who guides customers.

Since mid-2007, visitors to Future Shop's website have been greeted by a video image of a sales associate who offers to help guide their experience. Customers can ask any question of the avatar (he'll even dance for you) and get results from a growing database of advice contributed by sales associates and customers. Future Shop created the video front-end itself and bound it to a community portal from Lithium Technologies.

"We're trying to blur the lines between the offline and online experience," says Robert Pearson, Future Shop's director of e-commerce. "Our goal is to become the largest technology community in Canada."

Future Shop is well on its way to that objective. In less than a year, the site has signed up 50,000 members, which would be equivalent to about 450,000 members in the much larger U.S. market. But the community isn't just a discussion forum. Future Shop co-developed a ranking system with Lithium that lets customers provide feedback on each other and on the quality of information offered up by sales associates. Customer contributors can earn discounts and status in the community. The most helpful sales associates can earn cash.

Next up: Facebook-like functionality that gives contributors their own personal spaces and ties sales associate profiles to store locations. Success is measured by a survey of customer affinity with the brand. It's still too early to draw measurable conclusions, but all the trends are pointing in the right direction. "We're getting about 250,000 visitors a day out of a population of 33 million," Pearson says. "That's many more than come into a store. We actually see people walking in with printouts and asking for specific experts they've met online."

Future Shop isn't using video to be cool. It's using video to reinforce an in-store experience that is essential to its business strategy. It has also bound its customers to the company in a way that is rewarding for both parties. The company is now owned by Best Buy, so I wouldn't be surprised to see a similar capability showing up on a retail website near you.

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Tuesday, January 15, 2008
  An interview with the geniuses at Eepybird
As luck would have it, David Strom and I snagged an interview with the two guys at Eeepybird.com who make the fabulous Coke/Mentos viral videos. There's a 23-minute podcast over at TechPRWarStories where they talk about the secrets of their success and how they've bonded with the Coca-Cola company. Come listen!

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Monday, December 17, 2007
  Report: Half of online adults, 85% of online kids to use social nets by 2011
eMarketer says that 37% of online adults use social networks at least once a month and that the figure will grow to nearly 50% by 2011. Among teens, usage is already well over half and will near 85% by 2011. Social nets clearly offer value that conventional news and information sites don't.





Allan Cattier, Director of the Academic Technology Group at Emory University gave a mind-blowing statistic in his presentation to the Communintelligence Executing Social Media conference in Atlanta last month. He said Emory had surveyed its freshman class and found that more than 80% of the students log on to Facebook 18 or more times a day. Imagine how our institutions will be shaped by this trend in coming years. He also showed a compelling video called "A Vision of Students Today" created by Michael Wesch in collaboration with 200 students at Kansas State University. See below.

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Thursday, March 15, 2007
  Why most viral video is stupid
Bulldog Reporter's Daily Dog has an exceptionally thoughtful and well-informed article on the viral video craze that lambastes marketers for trying to add in viral buzz after a campaign has already been created. Author Andrew Foote's point is that anything that doesn't look genuine will be savaged by the community - and rightly so. He cites some excellent examples. If you're a marketer trying to get a handle on the viral phenomenon, read it.

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Saturday, March 10, 2007
  Why there'll be no social media bubble
South by Southwest is my seventh social media conference in about a year (the others were Syndicate, Gnomedex, BlogHer, Podcast Academy and New Communications Forums in Boston and Las Vegas) and I’m again impressed with one thing: the lack of interest in financial rewards or profit motives on the part of the participants.

That fact was driven home to me again this evening, in a panel session called “Production Companies 2.0: Taking Online Video to the Next Level,” which featured some of the early winners in video blogging. In contrast to the industry panels of a decade ago, which were all about creating huge new brands and reaping rich rewards for the founders, this session focused on issues of artistic control, voice, independence and freedom from the pressure of commercial interests.

Ryanne Hodson of RyanIsHungry.com spoke about the importance of not signing away control over content to investors, while Andrew Baron of Rocketboom boasted about new features on his site that enhance social networking features and make it more useful to viewers. “The vast majority of our discussions about Rocketboom are about how to make it better for the audience,” he said.

Where money was discussed, it was always in the context of how video bloggers could manage to make a living from their craft. Rock-star blogger Robert Scoble actually drew oohs and ahs from the audience for mentioning that he had signed a sponsorship deal for his video blog totaling $300,000. A decade ago, such a small amount would have prompted snickers.

As a veteran of forward-looking industry conferences going back more than 20 years, I find this spirit remarkable – and refreshing. Ten years ago, the tony Internet industry confabs attracted swarms of bankers and venture capitalists looking for the next billion-dollar company. Entrepreneurs who played the game successfully at the time were rewarded with billion-dollar payouts. In contrast, Jason Calacanis, arguably the most successful social media entrepreneur to date, sold out to AOL for $25 million. That’s nothing to sniff at, but it’s a far cry from the payouts awarded to the founders of Yahoo, Lycos and Broadcast.com.

Last September, I wrote a column in BtoB magazine (the original doesn’t appear t be online since BtoB revamped its website) arguing against the probability of a social media bubble. “Bubbles need air supply in the form of venture capital and inflated expectations for investors. They also need a payoff. Almost none exists in this market,” I wrote at the time. I still hold firm to that position. Perhaps the big money is still waiting on the sidelines for a viable business model to emerge, but I think they’ll be waiting a very long time. The Internet bubble of the late 90s was driven by investors’ misguided assumptions that the Internet was a channel for big media and big brands to emerge.

In fact, the opposite is true. Social media is fulfilling the Internet’s promise to make it possible for millions of small communities to form around very specific areas of interest. People now have the tools to share and comment upon information that’s compelling to very small groups – and to do it at almost no cost. Political super-blogger Glenn Reynolds calls this phenomenon An Army of Davids and the terminology is apt. The Internet is all about specificity, not generality. It just took us a decade to realize that.

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Thursday, March 08, 2007
  Did JetBlue get it right?

Is this JetBlue video effective? This is a topic of debate here at New Communications Forum. Some people are saying this is a master stroke of corporate honesty and transparency, an effective use of social media to deliver a message that looks genuine and unscripted.

Other people are saying that the CEO looks panicked, scared and not in control. There's also debate about whether the production value is right. Does this look like it's been engineered to look "rough" and is rough right for a message like this? Would David Neeleman be more effective in a studio with a coat and tie and professional lighting?

These are the conundrums marketers face in using social media. What works on TV doesn't necessarily work on YouTube.

There's one thing JetBlue did right, though: it acted fast and it went direct to the customer. As Steve Crescenzo said in a panel discussion today, "It takes most companies three weeks to get an article about the United Way approved by HR. JetBlue got a Customer Bill of Rights through the legal department in a week. "

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Thursday, November 09, 2006
  Blendtec's appealing videos
I hear marketers ask all the time how they can engage with their audiences and build "buzz" in new media. Check out what BlendTec is doing. The company makes mixers, blenders, mills and other appliances that chop stuff up. They took a cue from Letterman and posted a series of videos in which they grind up things you didn't think could be ground up (like golf balls!). It's a lot of fun to watch and it reflects very favorably on BlendTec because the videos really show off the power of the appliances.

So think: what do you do that's really remarkable? How can you demonstrate that with new media and build awareness virally? Blendtec is an example of a company whose product most people consider a commodity using Web 2.0 media to look different.

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How social media and open computing are changing the business world.

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Name: Paul Gillin
Location: Framingham, Massachusetts, United States

Paul is a writer and media consultant specializing in information technology topics.

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