Sunday, July 12th, 2009
When I blogged about this two days after it was posted on Youtube:
two days has just under 15,000 views, just over 4,000 ratings (with an average of 5 stars), over 1,000 comments
Today, six days after it was posted on Youtube:
- just over 2.3 million views
- 19,358 ratings (with an average of 5 stars)
- 12,250 comments
So the initial 15,000 views x 4 minutes of negative engagement is now 2.3million views x 4 minutes of negative engagement.
Since everyone seems to be hung up on using physical world ROI to apply to social media, let’s do this in the reverse situation.
Let’s use the lowest conversion/open rate possible (I’m thinking direct mail with about 1%), I’ll halve that for the internet at 0.5%, which is 115,000 people. If these 115,000 people say “I’m never flying United again”, how much does that translate in negative ROI over each customer’s lifetime at an average of say, one trip a year?
Of course, this isn’t a “scientific” way of calcluating anything. But that’s what we do isn’t it? Buy a million banner ads and hope for a 1% clickthrough rate. This is the same thing, working against you.
Can your company afford that?
Tags: conversion rate, customer lifetime value, direct mail, negative brand coverage, negative brand interaction, open rate, ratings, ROI, united airlines, united breaks guitars, views, youtube
Posted in Poor Practices, case studies, social media, social media business | 2 Comments »
Friday, April 24th, 2009
Last week, Rubin and I made a quick search for shirts that go with a tux (no, we didn’t know previously that they’re different from regular shirts). So we hit three shops in the immediate vicinity, the first two were totally aiming to make the sale. Everything from trying to get you to commit to an order, introducing “premium” materials and lowering prices to make it seem like a “discount”.
The third, we felt was more authentic right off the bat. He showed us the “normal” material and “premium” material and told us to verify for ourselves that there was no discernible difference in texture (there wasn’t), and that the important thing that tailors bring to customers is the service and customisation.
I think this approach is really about customer lifetime value. Do you go in with an affordable, knock-them-off-their-socks product that keeps them coming back for more, or are you concerned about making that one sale, and forgetting about the trust and relationship that can be formed, especially in businesses that are service-oriented?
Very different marketing approaches, but in the long run, I think aiming for retention will get better results than just attracting new customers. More word of mouth, more loyalty and more trust, which money can’t buy.
Tags: attracting new customers, authentic, authenticity, commit to an order, customer lifetime value, different marketing approaches, discernable difference, discernible difference, discount prices, going for the customer, going for the sale, keep coming back for more, knock them off their socks, lowering prices, loyalty, money can't buy, premium materials, retention, service and customisation, service and customization, service-oriented, shirts for tuxedos, texture, trust, trust and relationship, tux, word of mouth
Posted in Marketing, Singapore, case studies | 3 Comments »
