Given the state of the economy I’m hearing more clients ask about how to take advantage of the Social Web. Translation: [Marketing dollars are drying up and they need to do something on the cheap. This Social Web thing sounds low-cost and easy to do.] The increased media coverage of Twitter, Facebook and LinkedIN are certainly partially to blame for creating the impression that “everyone” is engaged in the Social Web. Personally, I think this is more hype then reality. There are a number of individuals who are developing networks, contributing to blogs and actually using Twitter to it’s fullest. There are however very few companies who’ve managed to pull this off successfully. I believe there are several reasons why.

Lack of Authenticity
Social media, the Social Web or Web 2.0, whatever you want to call it, only works when you are authentic! Let me repeat, it ONLY works when you are authentic. Your efforts will fail the minute you or your company tries to manufacture buzz or censor the message. Frequent users of social media can smell a fake.

I realize this is a serious shift in thinking for most businesses. In America especially, political correctness has been so ingrained in our culture that we often over-sensor our communication and shred any meaningful substance from the message. Anyone can write a glowing press release full of pat-yourself-on-the-back statements and fluff but it takes real balls to write about your failures and your missteps. Be real with your customers and followers. Give them something they can sink their teeth into, don’t dish them up whipped cream when they want steak!

Lack of Identity and Vision
Who are you? Think about this. With an exception to Howard Hughes I’m at a lost for an example of a hermit who’s made a name for themselves. Likewise a corporate identity is grown overtime through interactions and positions on various issues. Companies need to wake up and develop real corporate visions and position statements, then hire employees who buy into and champion that vision.

This is something we are currently struggling with at Imulus. We admire companies like Patagonia, Apple, 37Signals and IDEO. These companies have clear positions and identities because their founders have laid out the basic tenants of the company’s values. In a sense, these companies are creating a movement and asking their employees to be activist. This is why so often you’ll see the term “cultist” tied to Apple fanatics.

Lack of Interaction
A conversation is quickly killed when one of the parties doesn’t shut the hell up. For companies to really benefit from the Social Web they need to interact with followers and customers. Ask questions, read what others are saying and participate. This isn’t a one-way street.

As an example, I wrote a blog post about Quantcast a few months back. Within 2 days of the post, Adam, the CMO of Quantcast left me a comment. That, is a perfect example of how to use the Social Web.

Based on the few examples I’ve looked at, not very!

Site A: Enterprise Class / Fortune 1000 Web Site
This comparison shows Quantcast ESTIMATES in green, versus the ACTUALS in WebTrends. Both measures track “VISITS”. This is important because the default for Quantcast is “PEOPLE”. I still haven’t figured out the difference between the two. The variation between the two sets of data is significant and the traffic pattern seems inverted.

Site B: Regional Business Information Site
This comparison is between Quantcast ACTUALS in green and Google Analytics ACTUALS in orange. Again, we are tracking Google Unique Visitors against Quantcast Visits. Another important note is that when actual data is pulled in Quantcast you’ll see separate tracking for US vs Global. Since Google doesn’t distinguish, we’ll focus on the global on both.


Site C: National Ecommerce Site
In this example Quantcast faired to be a bit more accurate. I compared Quantcast People (ESTIMATED) with Google Absolute Unique Visitors and the results were a bit more accurate.


Trend Overview
These graphs below were interesting to me because of the traffic discrepancy despite both sites utilizing tracking codes. Both of these graphs are pulled from Site B. Google’s Max is 206 VISITORS per day, whereas Quantcast is showing about 330 VISITORS.

Google Analytics

Quantcast Visits

Summary
I think Quantcast is an excellent tool; however you should proceed with caution when using the analytics obtained from both it’s estimates and actuals. It is important to note that both measures are benchmarking Quantcast against WebTrends and Google Analytics; however both of these tools have been used for many years and are fairly trusted. I’m not sure I’m ready to fully trust in Quantcast. But I’m very open to differing opinions on this.

So, I would assume most Account Managers, Project Managers, and anyone else in client services all know about (and occasionally create) call reports. However, I’d be willing to bet that eventually almost all of you have given up on them. I know, from personal experience, that the call/meeting report is thought about and started with good intentions. Inevitably, however, it ends up being one of the first items to slowly fade away. While it appears to be a good idea, it always seems like a waste of time, and the easiest task to drop. You get busy, and bogged down with tasks, and figure “who really reads these things anyway?” Well, as much as it may seem like extra, unnecessary work, I can say it is one of the best tools anyone in client services can use.

For those of you who have never heard of these, it’s basically a summary of a meeting, phone call, or even quick discussion you’ve had with a client. (It doesn’t hurt to do this with internal meetings too.) After every meeting, send a summary and list of action items to your team and your client. Trust me. It’s worth it.

The call report does NOT need to be an extensive document. It just needs to cover the basics. If you have a client who tends to “forget” what you talked about, you may need to be a bit more specific. No matter the level of detail, just do one. Every time.

I can’t tell you how many times there has been a conflict about what we decided, a task unassigned, or a lack of follow up on an urgent request. With the call report, this is practically impossible. I have had times where the client was quite upset with a situation and couldn’t believe we chose to go down a certain path for his design. Based on a meeting we had over two months ago, I vaguely remembered him requesting something along those lines, but I honestly had no idea what we decided. I feared we were in for a huge change (and a significant loss of money). Low and behold…the magical call report. I pulled up the old document that was sent to my client the day after the meeting, and copied the exact statement saying he agreed to the change. Not only did he insist on this change, but he also agreed that it was out of scope. The call report saved us hours of headaches and a bundle of money. This is not just a random example. These types of things happen at least once a week, and the meeting report has saved my team, my company, and myself a lot of problems. So, I beg of you. Take the time. It’s worth it. And who knows? It may even save a life or two.

In the last few years we’ve had a handful of clients ask us to adopt a performance based payment model. Usually these are start-up companies who are cash strapped and looking for an alternative to paying our service fees. I’m intrigued by the idea of performance based web work however I’ve yet to find a model which I believe is both fair and incentive driven.

I’m still trying to find the right solution. I’m not sure what works best, but I have a pretty good idea of which models I think will tank. Here are a few situations which we’ve been confronted with.

Ecommerce Web Site
The client was offering us a small percentage of overall sales along with a partial reduction in our regular hourly rate. The client was hoping that we would be incentivized by the offer they made us. There are several problems with this model for both sides.

1. What about offline sales, phone calls, emails or faxed orders? We can track the online sales but we have no visibility into the offline orders.
2. How competitive is the product / offering? We have no control over the price of the product or which products are in-stock. We could dedicate plenty of effort building a great system but if the client’s products are overpriced or lack selection then sales revenue won’t materialize.
3. How much is the client willing to pay for marketing? Our agency can do the SEO / SEM work but ultimately SEM and online advertising incur real costs, and not just man-hours.
4. What is the level of marketing they are willing to pay for and who has final say in terms of strategy and creative?
5. Our team could sit back and collect commissions for the client’s sale efforts. That wouldn’t be right, but under this sort of arrangement it could happen. Or vice-versa where the client could get away with doing nothing but filling orders.
6. What is the cap on the number of hours we would commit to each month? If we are spending 80 hours each month and sales commissions only equal $2,200 then our effective rate would be $27.50 / hr. If we agreed on a base hourly rate plus commission then perhaps hours wouldn’t be as important.

Lead Generation Website
In this scenario a client approached us to reduce our rate in favor of a lead generation forumula which incentivized us for creating “qualified leads” in Salesforce.com. To complicate the scenario we would be working with the client and other third parties including an SEO firm, Content Writer, and a PR Agency. The arrangement gave us 4 tiers by which our monthly charges were either reduced or increased based on performance.

We had an existing retainer in place which discounted our hourly rate by 20% for the commitment from the client for a fixed minimum of hours dedicated per month. This proposed program would start us at a reduced rate which is 40% less then what we typically charge. From that, if we perform well enough, we could make 20% back, bringing us to our current retainer rate. On the other hand, if the performance dropped, our hourly rate could go down to 50% of our regular rates. In my mind that is not an incentive, it’s a carrot and stick.

The proposed formula work like this:
Qualified Salesforce.com Leads / Total Unique Visitors = % Conversion

Here are the problems with this formula and the overall scenario.

1. What if the budget for SEM goes up and the third party SEM company starts driving 15% more traffic, but the traffic isn’t qualified? It will dilute the conversion percentage.
2. What is a Qualified Lead? In Salesforce.com we can drive leads but the aspect of qualifying them is arbitrary. Ultimately, that aspect comes down to trust but it sure would be nice to remove arbitrary valuation.
3. The SEO & PR companies are going to have the highest influence of the company’s natural rankings. If these two players hurt or hinder traffic then we suffer as a result.

We counter offered the client a true incentive program which kept our retainer rate at a discount of 20% while suggesting the incentive to reach full rates if we exceeded expectations. If we knocked expectations out of the ballpark, then we would be rewarded with a 10% increase to our regular rates, making work in this client particularly attractive. Unfortunately that suggestion was not accepted.

Does anyone else have similar stories to share? In browsing the web I found these.

GraphicPush: Commission Based Payment for Web Design

Manifest: The First Step in Creating Passive Income

I have to compliment all of the great companies that have gone green lately. I think it’s a huge concern for many environmentally-conscious people, and it shows great awareness that companies are dedicating resources to this cause. Most notably, Walmart has pushed a huge marketing campaign showing their “greenness.”

While, I commend companies for doing this environmentally-friendly push, I think they are going about it the wrong way. Most companies seem to be doing this as the next trendy, cool thing to do. They are using this opportunity to be leaders in this category, and if they truly feel that this is the right thing to do, then bravo! However, if they really think it’s the right thing to do for the industry, why aren’t they encouraging everyone in the industry to do the same, instead of using it to prove their own brand’s worth? Consumers are smarter and more cynical than we give them credit for. Personally, I think the average consumer can see right through this.

Attention Brand Marketers: Don’t use this “green” opportunity as a brand differentiator! It may seem like the thing to do now, but if this really is the way of the future, within months every company will be pushing for green and showing off their capabilities. Don’t rely on a one-time fad to be your companies brand benefit. I beg you to look inside your company and find the true differentiating benefit and really focus on that in your advertising campaigns. The green effort is an amazing thing to do, and great to talk about in your marketing. Keep doing it! But, don’t rely on that to get you more business. It’s obvious you found a trend to latch onto and a big following for it. Try to stay a step ahead of the fad and don’t just look to find the next trendy thing. Your company was made for a reason. Obviously there was a need for your product, service, or whatever it is you offer. Once you show consumers why you exist, and reasons to believe that inherit benefit you can offer them, I have no doubt your company will succeed.