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Why Companies Fail at Social Media

MixedNorms 300x250 Why Companies Fail at Social MediaLet’s say you run a day-care center and you’re tired of parents being late to pick up their kids. What do you do? How about instituting a fine? That seems like it’s logical and could be effective. If parents had to pay extra, one would assume that they would be more likely to be on time. But one would be wrong.

In January, 2000, Uri Gneezy and Aldo Rustichini published a study titled, “A Fine is a Price.” In this study, they followed six day-care centers in Israel. They found that, on average, there were seven or eight late pickups per week across the ten centers they were monitoring. At six of these centers, they instituted a fine for late pickups and the effect was immediate and striking. The incidences of lateness steadily increased over a four week period. Eventually, the average number of late pickups peaked around twenty – almost triple the original rate. What happened? And what has this to do with social media?

Mixed Norms

Gneezy and Rustichini attributed this to something they called an “incomplete contract.” The rules that were in place were sufficiently ambiguous that customers had to figure for themselves what was appropriate behavior. In those circumstances, we tend to fall back on social norms. Social norms are a set of unwritten rules that determine what is and is not acceptable behavior in social situations. However, in the case of the day-care experiment, instituting a fine shattered the ambiguity and replaced it with an economic norm. The parents no longer feared social repercussions. They determined that the convenience of showing up whenever they wanted was worth the price.

Oil and water by andredoreto on Flickr 300x199 Why Companies Fail at Social Media

Oil and water courtesy of andredoreto on Flickr

This is an example of “mixed norms.” When we combine social behaviors with an economic situation or vice versa, we get unpredictable (and sometimes volatile) situations. Consider, for example, finishing a holiday dinner at your parents’ house. You compliment the cook(s) on a terrific meal and pull out your checkbook asking, “How much do I owe you?” Most people would be offended and might even throw a utensil in your direction. Dating also carries such risks.

Social media also carries such risks.

Social Media and Norms

Make no mistake. Social norms are in play in all social media channels. The main reason for this is that when it comes to social networks, the users are also the owners. This is not the case in most other media with which companies are used to dealing (e.g. television, radio, newspapers, even Google). And so their tendency is to dive into social media with their economic norm behaviors. The result is that people will automatically tune them out and unfollow/unfriend them. In a sense, the companies have placed a virtual fee on their social media presence. This fundamentally changes the relationship from a social one to an economic one. Game over, influence squandered.

And here’s the really bad news…

Mixing Norms is Irreversible

End Designated Safe Corridor 300x199 Why Companies Fail at Social MediaBack to Gneezy and Rustichini. After five months, the day-care centers rescinded the fining policy. However, the behaviors didn’t change. It turns out that once you change the relationship from social to economic, you cannot go back. It’s altered permanently and there’s nothing you can do about it.

This should give pause to companies currently or planning to be involved in social media. You had better get it right the first time, because you won’t get a second chance. So how does a company insure it’s following social norms? Well, there’s a four letter word that spells social media success; gift. Make sure the vast majority of the content you’re creating and sharing can be considered as a gift to your audience and you should be fine.

 Why Companies Fail at Social Media

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Those Creepy Advertisements!

iStock 000013103494XXXMed 200x300 3 Misconceptions About the Death of PrivacyYou may have heard this already, but this social networking thing is starting to get popular. It’s fundamentally altering the way we conduct our daily lives and that has lots of people coming unhinged. Daily shrieks on my Facebook wall warn of a new plan from the modern day Trilateral Commission(Facebook, Google, and Foursquare) to turn us into strung out, ad-clicking junkies so they can cut off our heads and mount them on pikes. News reporters who wouldn’t know the difference between a browser cookie and an Oreo cookie write terrifying stories about web sites stealing deep, dark, private secrets: like the URL for your Facebook profile that is already indexed by Google.

But I had to write this post after reading the latest prediction of the privacy apocalypse from the Intelligentsia. In a February Wired Magazine article titled “Your Life Torn Open,” Andrew Keen wails that we are being led down a primrose path to Hell with these social networking sites. Fear mongering has a long and glorious history – especially in journalism and politics – because it’s such a powerful emotion. If Gordon Gecko were a journalist instead of a wall street banker he would have said, “Fear, for lack of a better word, is good.”

While being concerned about your privacy is very important, articles like Keen’s focus the attention in the wrong place, in my opinion. In an effort to warn people about an impending doom, he’s inadvertently doing more harm than good. His article peddles three untruths that I see commonly thrown around and I will take exception to them now.

#1 – Social Networking is Narcissistic

iStock 000009903620Large 300x184 3 Misconceptions About the Death of PrivacyIn my opinion, this is the laziest, most gratuitous slap anyone can take at social networking. Almost invariably, they cite Tweets about what someone had for lunch or wall updates about their pet did this morning. Since social networking begins with us talking about ourselves, it’s really easy (too easy) to make quips about it being narcissistic. But it’s also demonstrably false.

If social networking were truly narcissistic, then NOBODY WOULD FOLLOW ANYONE BUT THEMSELVES. And that would pretty much defeat the whole purpose of a social network, wouldn’t it? The very fact that someone has Facebook friends or Twitter followers annihilates the argument. I follow other people because I either learn something from time to time, or am entertained by that person, or want to keep my relationship with them warm by seeing what they’re doing. I’m interested.

There are billions of people on this planet who could not possibly care less about what I have to say. From their perspective, I’m obviously self-absorbed for writing about stuff they don’t care about. But I’m not talking to them. I’m talking to few hundred or thousand who do care. I’m talking to you. Does that make me a narcissist?

Now, I have no doubt there are true narcissists in social networks, but that’s because they are already narcissists and would be whether Facebook existed or not.

#2 – We Aren’t Naturally Social Beings

iStock 000012953897Med 300x199 3 Misconceptions About the Death of PrivacyThis line in Keen’s story made burst out loud with incredulity. This is absolutely demonstrably false. There have been countless experiments that illustrate the fact that much of our irrational behaviors are specifically geared toward social acceptance and group dynamics. Fear of public speaking is an example. We developed a fear of standing out from a crowd as a survival mechanism because there’s safety in numbers. Cognitive researchers have shown that our decision process is highly dependent on and easily swayed by others’ opinions. This helps promote harmony in small groups so that consensus can be reached on important decisions.

Keen opines that “human happiness is really about being left alone.” Really? Do I really even need to make an argument against that? Everybody likes some alone time now and then, obviously. But for my entire adult life I’ve heard about how our social fabric is being torn apart by people moving out of cities and into solitary lives in suburbia.

Now all of a sudden we’re all Greta Garbo? Here’s a free tip if you’re feeling too “social” – shut down your laptop and turn off your phone for a few hours. Problem solved!

#3 – Social Graphs Are Evil

Whereas the first two points I’ve made are demonstrable facts, this one is a little more of an opinion and personal preference. However, I feel like the whole paranoia over privacy settings gets a bit hysterical sometimes. First of all, you’re in complete control over what data you want to share and what data you want to keep private. Yes, reasonable people can argue about whether or not it could be more user friendly but the capability is there.

Creepy Advertisements1 1024x662 3 Misconceptions About the Death of Privacy

Second, we’re not talking about sharing social security numbers and credit card details. We’re talking about the brand of car you drive, your favorite songs and television shows, and news articles you’ve read. Lots of people think it’s “creepy” that this information can be used to target advertisements to us when log into Facebook or visit a newspaper website. I prefer to think of it as spam-blocking. I’m all in favor of giving these websites information that lets them improve the ads I see and offers I receive so that it’s more relevant to me.

Let’s Be Smart

OK, please don’t waste our time by mis-characterizing my point: I am not saying you should make everything public. I am not saying there’s no such thing as identity theft. I am saying that you should be concerned about the important things, like strong passwords and recognizing a phishing attack when you see one. Those are much, much more important than preventing Facebook from telling someone your favorite artist is Justin Bieber.

Well, maybe you do want to keep that one private.

Let me know what you think about privacy and targeted ads. I think there are more dangerous things to worry about but maybe I’m missing something.

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The Tangled Web: Weekly High Five

Published on December 5, 2010 by in High Five

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The Tangled Web: Weekly High Five

HighFive 300x275 The Tangled Web: Weekly High Five

Weekly High Five lists the most interesting, compelling, and/or useful links of each week.

Weekly High Five lists the most interesting, compelling, and/or useful links of each week.  This week’s theme is “The Tangled Web.” An effective web presence used to mean a well-optimized (for search) web site. But today, the ever-expanding world of social networks is both complicating and simplifying the process at the same time. This week’s links reflect on how social media sites are impacting search and connecting with one another.

#5: Your Income, Home Ownership & Parenthood Status Now Available as an API

RapLeaf has taken some heat over the past couple of months. Privacy concerns for consumers are going to have to be balanced with the openness of the Internet. The U.S. Congress is even making noise about a “Do Not Track” registry for Internet browsers that is similar to the “Do Not Call” registry for telemarketers.

Link: ReadWriteWeb

#4: Facebook Testing New Registration Social Plugin

Facebook is looking to extend its fingers further across the web by providing web developers with more tools to simplify their tasks. By offering a free registration system for web sites, they are strengthening their position as a standard identity provider on the web.

Link: All Facebook

#3: LinkedIn Launches Share Button

I have no idea what took LinkedIn so long, but they have finally created a share button for web site owners to allow users to easily share their content with LinkedIn. Sharing is fundamentally changing the world of search marketing and is eating away at the monopoly search engines have had since the inception of the Internet.

Link: Mashable

#2: Twitter Proven to Impact Search Engine Rankings

In my Personal Inbound Marketing talks, I frequently encourage people to use Twitter as much for the inbound links as for the engagement. In other words, even if you don’t have a lot of followers there is value in posting your content there in the form of search engine juice. This article provides more supporting evidence for that strategy.

Link: Hubspot

#1: Why WordPress rules the Web

Blogs are the engines that drive Inbound Marketing. There simply isn’t a better system for delivering your remarkable content in a search engine optimized format. Here’s another person’s opinion on the subject.

Link: SEO Theory

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Google’s South Park Lesson

The Guardian posted an article that provides eyetracking results, showing that users are ignoring the much hyped Google “real time” search results.  The article goes on to postulate as to why this is, and in doing so makes some clever references to hidden gorillas and characterizes the problem as one of “presentation.”

I beg to differ and would suggest, instead, that this is a problem of authority.

You Will Respect My Authoritah!

Any quest for answers, especially those involving Internet search, is entirely based on authority; namely, the authority of both the referrer and the source.  We have all grown to lend a certain degree of trust to the search engine of our choice.  That is, after all, why we’re using Google as opposed to Bing, or vice versa.  We understand that their respective algorithms or ranking processes have pre-qualified these results and judged them to be the most relevant to our search.  However, we also understand that the machines are imperfect and so we scan the results and try to judge for ourselves which of the individual sources appears to have high enough authority to warrant our attention.

In the South Park episode “Chickenlovr,” Cartman pulls over a speeding vehicle and discovers that just because he is wearing a uniform, it doesn’t mean that he has authority.

The problem with real time results is that the sources come from social networks that are decidedly outside our circle of trust.  If I see a list of Tweets from people I don’t follow, my gut reaction is to say, “I don’t follow that person, therefore what they have to say is not important to me.”  It’s a defense mechanism as much as anything.  On a certain level, we feel like we need to protect our social network by not admitting that outsiders have anything of superior value.  As Ani DeFranco sang, “God forbid you be an ugly girl, ‘course too pretty is also your doom, ’cause everyone harbors a secret hatred for the prettiest girl in the room.”

And so it goes with so-called real time search results.  Since you are not in my circle of trust, you are either too ugly or too pretty – but either way I’m not buyin’ it.

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High Five for Week Ending 8-Nov

Published on November 8, 2009 by in High Five

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ziireader
HighFive 300x275 High Five for Week Ending 8 Nov

Weekly High Five lists the most interesting, compelling, and/or useful links of each week.

This week’s High Five is all about technology as a the unstoppable force in shaping market trends.  The markets include computers, communication, entertainment, publication, and social networking.

#5: Windows 7 sales exceed Vista sales by 234%

Windows Vista is a Microsoft product failure arguably only eclipsed by Windows Me.  The cleansing process has begun with the release of Windows 7, a clear improvement.  I successfully upgraded a laptop this week and the process was smooth and error-free.

Link: The Windows Blog

#4: Skype, Founders Settlement in the Works

Skype is a fantastic VOIP (voice over IP) service that was purchased by eBay.  The complicated case centered around eBay’s plan to spin off Skype and threatened the service itself.  As of the this writing, it is widely being reported that the settlement has been reached and we Skype fans can breath much easier.

Link: GigaOm

ziireader 276x300 High Five for Week Ending 8 Nov#3: Creative’s next big thing is a Zii MediaBook

As someone who is an avid reader and intrigued by e-readers but put off by their price, competition is a great thing.  Amazon’s Kindle is under attack from Barnes & Noble and now Creative.

Let the content wars begin!

Link: EpiZENter

#2: Best Buy Prepares for the Post-DVD Era

This is a company that just “gets it.” They are not afraid of change. In fact, it seems to me they are addicted to it.

Link: The New York Times

#1: The chat room/forum problem (& an apology to @Technosailor)

Robert Scoble is one of the pioneers of blogging as a corporate communication platform and is as about as authoritative as you can get in that area.  This article is a very interesting retelling of the history of forums and chat rooms, with lessons learned and how they apply to the current landscape of social networks.  One of the most interesting aspects of this article is watching how his own opinions about services like Twitter and FriendFeed have changed and why he thinks Twitter will not devolve the way chat rooms and forums did.

Link: Scobleizer

Feel free to provide your thoughts and/or contributions…

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