Optimization, that fancy word for making a selling process
more relevant and engaging for your customer, could be said to have four major approaches
that have critical value for marketers: experimentation, targeting, behavioral
and social.
In recent months I outlined the first three. Social media is
the last of the major optimization approaches to explore (at least for now).
What Is It?
Social media is a phrase most of us in marketing have come
to recognize, though its meaning is not always clear. In its broadest sense, social
media means the coming together of people within a community (whether that's an
actual online community or simply a section on a website dedicated to allowing
the consumer to have a voice) to actively participate in the creation of new and/or
the management of existing content.
This could mean allowing users to post their own photos or
videos, to rate and review products, to create tags for content, to write or respond to
blogs, to change existing content (like wikis), and more.
Social media has allowed consumers to feel empowered and in
charge of their web experiences, but it can be far more than that for
marketers. When marketers harness social media elements, they can use the
"wisdom of the crowds" to great advantage to increase sales and to generate good
will among visitors.
Optimization using social media is a way to allow your
visitors to influence what you show other visitors. When done correctly, it
offloads the work of determining relevance, so that rather than having to
guess or use something like a recommendation engine to offer relevant content to visitors,
other visitors essentially take care of that for you.
Where Social Media Work
There are several simple ways to allow your visitors to
engage in social media:
- Reviews - In retail and travel, customer-written reviews
have been a clear value to consumers. With their massive consumer base and
long history of operation, those two verticals are still the kings. But companies like BazaarVoice can give this advantage to
any site. The key with reviews is participation - the more coverage your
products have, the more effective the reviews will be.
- Ratings
- Ratings include stars, thumbs up and down, "paws," and myriad other
forms. Consumers register their level of approval, and the
product's rating becomes based on some form of average of responses. This type of
consumer feedback is incredibly useful for optimization because it is easily
rankable. Have on-site search? Why not rank results by popularity.
This is a fabulous way of providing relevance through ranking.
- Digg/Reddit - Social sites provide a clearinghouse for user responses. The most
well-known, Digg, allows sites to put up an icon on articles that lets the
reader "Digg" the content. More "Diggs" and the
article shows up higher on Digg.com, a central site. Reddit is done in a similar fashion. This is cheap
and relatively easy, but useful primarily for editorial content. It can
increase reach by popularity ranking across a huge base, but it is easy to be irrelevant.
- Social
Shopping - Like Digg, but for products.
The Good, the Bad and the Ugly
Optimization using social media is perfect when you have very broad product set - for example, a travel site that may
represent literally millions of combinations of locations, properties, and
services.
It would be impossible for a single company to build up their
own well-attributed database to help customers make decisions - in other words, to offer recommendations based on behavioral targeting - but by allowing consumers to do the work for you, others still get the benefit of recommendations.
Social media also works well where a deep level of interaction with the product or service significantly
enhances the merchandising of that product. For example, high-end
electronics like audio gear and printers are very difficult to merchandise
based on manufacturer information. Consumers that use the products can often
provide a layer of editorial content that can drive consumer preference and
conversion.
On the other hand, highly branded environments are not as receptive to basic social
optimization. In many cases, the selection of imagery and arrangement of
products is a critical part of marketing. When you hand this over to customers, you
run the risk of devaluing the product.
Social optimization only works when the consumer base is willing to participate. Promoting the fact that you have recommendations and ratings when nobody has actually recommended or rated anything is as compelling as entering an empty
restaurant on a Saturday night. Having nothing may, in fact, be better. Even small populations of participants can be risky, as individual
bad and good reviews can skew recommendations in a sub-optimal way.