Friday, December 30, 2011

Social Media-Based Brand Ambassadors - Part 1


INTRODUCTION


[This post is part 1 in a series of posts related to Social Media-Based Brand Ambassadors.  This post introduces the concept of social media-enabled brand ambassadors and sets the tone for the series of posts that will follow.]


We’ve heard ithundreds, maybe thousands of times – “Our employees are our greatestasset.”  When it comes to business-speak,this phrase has become one of the most overused expressions in the trade.  From annual reports to media interviews to companyrah-rah events, these words always find a way to make themselves at home.  Yet no matter how trite we believe the phraseto be, it is true.  There is no denyingthat in business there is little that can be done without human capital.  That’s because regardless of technologicaladvancements or an organization’s name, size, products, or services, people buy from people!  This point is especially critical in the post-OccupyWall Street era where humanity, honesty, and transparency havebecome the new expectation for business.


Many organizationshave known for a long time of the value that is created by employees thatevangelize on behalf of the organization. These employees are commonly referred to as brand ambassadors.  Research and surveys have repeatedly found thatbrand ambassadors boost an organization’s reputation resulting in improved profitability.  As a result of their excitement, knowledge, loyalty,and commitment to the organization and its products and services, brandambassadors create excitement and loyalty among customers.  As such, brand ambassadors act as incrediblyeffective influencers.  More effectivethan the best advertising. 

An excellent representationof the ideal brand ambassador is “Flo,” the customer service representative inProgressive Insurance commercials. Flo is so effective that current commercials portray her luring toProgressive Insurance executives from a competing insurance company.  This is the employee brand ambassador conceptat its best.  According to a BusinessCourier article by Ric Sweeney (“Brand Ambassadors’ Give Your Business A Boost”) “All employees, regardless offunction or title, are key ambassadors for your company’s products andservices.  Once motivated by seniormanagement to believe in the company and its products/services, employees can utilizetheir network of friends and colleagues to grow the company’s circle ofinfluence.”


Author Ronald J.Alsop tells a story in his book, “The 18 Immutable Laws of Corporate Reputation,” (Free Press,2004) about Larry Fish, former Chairmanand CEO of Citizens Financial Group. Alsop says “Larry Fish is rare among CEOs in that he recognizes thevalue of employees to corporate reputation and makes them his goodwillambassadors.  It’s the employees who areon the front lines working with customers, suppliers, shareholders, governmentofficials, and other audiences.  Theymust be your loyal allies because their effect on your reputation isimmense.  They can be your biggest fansor your worst enemies.”

While thecharacteristics (excited, loyal, and knowledgeable) of the brand ambassadorsnoted in Alsop’s 2004 book are the very same characteristics that embodytoday’s brand ambassadors, the manner in which they influence has evolved.  Historically, brand ambassadors conductedtheir influencing activities primarily through face-to-face interactions.  These interactions took place at theiroffices, civic meetings, places of worship, and anywhere else someone waswilling to listen to them.  Brandambassadors are successful influencers not because they are great salespeoplebut because they love what they do and who they do it for.  Their ability to influence is the result oftheir passion – as well as the positive reputation of the organization,product, or service.


While today’sbrand ambassadors still possess excitement, loyalty, and knowledge, they are nolonger confined to face-to-face activities. Through social media tools such as Facebook, Twitter, and LinkedIn,today’s brand ambassadors can influence a much broader audience.  Social media enables brand ambassadors toinfluence not only their neighbors across the street but also those livingacross the country and across the world.

Facebook, the 800-poundsocial media gorilla, boasts over 800 million active users.  Active users maintain an average of 130“friends” on their Facebook social network. Twitter, another dominant social network, maintains over 100 millionactive users.  LinkedIn, the socialnetwork of choice for business professionals, maintains over 135 million activeusers.  And these numbers do not reflectthe millions of users that belong to other social networks such as YouTube,Google+, Foursquare, MySpace, and hundredsof others.  A cadre of socialmedia-enabled brand ambassadors can produce results significantly better thanwas possible just a few years ago.

According Inc.Magazine blogger Eric Markowitz  (“How To Find The Right Employees To Be Your Brand Ambassadors”), “In order to fullyrealize – and leverage – an employee’s full value, a successful company needsto find creative ways to tap into its employees’ networks (both online andoffline).  Brand ambassadors, or employeeevangelists, are becoming an increasingly common way for brands to leveragetheir biggest asset – their workforce, of course – to reach new markets,generate buzz, and put a real face on the company.”  Schwartz Communications blogger Allison VanNest states on the Schwartz Crossroads blog (“Must Love Snacking: Empowering BrandAmbassadors Through Social Media”) that “Employees are becoming moreengaged as company influencers.”


Regardless of the demonstratedvalue that comes from an excited, loyal, and knowledgeable cadre of employees, thereis often a discrepancy between the message delivered by the organizationthrough its marketing efforts and the message delivered by its employees.  This discrepancy is the result of the organization’sfailure to formally train and deploy its employees as part of the organization’soverall branding strategy.  This failureon the part of the organization denies the customer, employee, and organizationan opportunity to maximize the benefit received.  The customer misses an opportunity to receivethe best possible attention.  Theemployee misses the opportunity to play a larger role in the success of theorganization.  And the organizationmisses an opportunity to develop a deeper and more valuable relationship withthe customer.  The organization’s failurealso ensures that employees lack the excitement, loyalty, and knowledgenecessary to become effective influencers. The negative impact of this failure is compounded when the organizationdoes not make use of the leverage provided by social media platforms.

Logical Stringblogger Mayank Krishna concludes (“Employees As Brand Ambassadors”) that this failure causes customersand potential customers to question whether “The brand is true to what it isprojecting or are there things deeper than what meets the eye?”  Krishna attributes the lack of employee influence-abilityto the fact that “In a majority of organizations, brand and branding is adomain that is considered the exclusivity of brand managers and marketingmanagers.  For an average employee, brandmanagement doesn’t seem relevant and he/she is hardly aware of the nitty-grittyof the brands and brand management philosophies of his/her organization.”

As such, unlessorganizations create a formal Social Media-Based Employee Brand AmbassadorProgram to ensure that employees are well-trained brand evangelists,organizations will lose out on the potential benefit that comes from employeesthat decide to make it their mission to act as influencers for theorganization.  A further risk is thecompetition.  To the extent thatcompetitors develop their employees first, the organization puts its businessat risk.

Thursday, December 29, 2011

Digital identification and mobile payments


The fundamental problem with all payment systems is to accurately verify the identification of the buyer. If one can be hundred percent sure that the identification of the buyer is absolutely accurate, one can be hundred percent sure that the payment is not fraudulent. In the physical world this is achieved by verifying physical documentation (for instance ID documents, fingerprints etc.). The problem is of course much more difficult in the digital world.

That is why solving digital identification is almost the same as building a fraud-proof digital payment system. This is emphasised by a recent announcement from Paypal (Read here). In this announcement, Paypal aims to become the custodian for their clients' digital ID's. Similarly, deploying well-designed mobile payment solutions in emerging markets is similar to rolling out robust identification systems. One should consider combining both problems: rolling our national ID systems at the same time as deploying mobile payment systems.

Wednesday, December 21, 2011

Hong Kong Investment Banking Salaries Overtake London

Average base pay for investment banking and hedge fund staff in Hong Kong has shot up by 15 per cent this year overtaking salary hikes in London

Such generous rises highlight the two-speed global economy in 2011 as Asia powered ahead while Europe and the US teetered close to recession.

Analysts in Hong Kong have seen 20 per cent base pay increases while those at “managing director” level have

Very positive surveys for Mobile Banking


It is all good and well to talk about a trend based on trivial observations or individual war stories, but trends get substantiated by rigorous research only. That is why one can now confidently proclaim that there is a spectacular growth in the adoption and potential for mobile banking. This is true on the basis of a number of research reports released in the past few months that all corroborate this trend.

Some of the more interesting reports that I have seen are:
  • Javeline Strategy and Research reporting a jump of almost 60% in mobile banking take-up, concluding that mobile banking has now moved from a "nice-to-have" to a "must-have". (Read here)
  • A McKinsey research poll of major European banks report a jump of more than 50% in banks that are planning to launch some mobile banking application (Read here).
  • A Comscore research reports a jump of 45% on a year to year basis of consumers using mobile banking. This now represent about 14% of all mobile users in the US (Read here).
  • Both Starbucks (reporting 20 million mobile transactions) and Paypal (expecting $3.5 billion of mobile transactions in 2011) reporting strong growth in their mobile banking initiatives (Read here)
Good news for the industry.

Thursday, December 15, 2011

2011 Top Ten Financial Markets

Want to work in one of the world's top ten financial markets? You may want to check out this news in yesterday's China Daily: HK most developed market

Hong Kong overtakes US, UK and Singapore to take top spot.

Hong Kong has overtaken the US, the UK and Singapore to top the world's most developed financial markets, the first time an Asian financial center has achieved this rank, according to the

Friday, December 9, 2011

Look Who's Talking: Facebook Engagement

Facebook recently began disclosing several key metrics on Facebook Pages to assist Page owners at-a-glance in assessing the success of their Facebook efforts and to assist visitors to the Page in determining how useful others have found the site in the past week.  These metrics are disclosed along the left side of the Page (they, along with other metrics, are also found on the Insights page).

The first metric indicates how many users Like the page.  Traditional Facebook marketing theory states that the bigger this number, the better.  That is why so many social media consultants go on about tactics to increase "Likes" as if he with the most Likes wins.  While I agree that all things being equal, more Likes is better than less Likes, I also believe that it's not the quantity of the Likes but rather the quality of the likes that will make a Facebook effort successful.

Social media is about social engagement.  Social engagement does not occur unless the Facebook effort provides value.  As such, it does not matter how many Likes a page has if the content is not engaging.  Without valuable content the community will ignore the page resulting in a wasted effort to attract the community.  In other words, a Page with 100,000 Likes that was created through some effective marketing effort will not help the bank if none of the 100,000 users visit the Page on a regular basis.


In order to evaluate the effectiveness of a Page's community, Facebook provides the number of users that have "talked about" the Page in the past seven days.  This "talking about" statistic is fairly meaningful as it states the number of users that have engaged with the Page (e.g., brand) in some form.  Activity that is included in the Talking About statistic includes users that:


  • "Liked" the page
  • "Liked," commented on, or shared a Page post
  • Answered a Question on the Page
  • Responded to an Event 
  • Mentioned the Page
  • Tagged the Page in a photo
  • Checked in or recommended the Page location
In the examples below you see two sets of data taken from two banks - one small bank and one mid-size bank.


The bank on the left has only 409 Likes and the bank on the right has over 2,500% more at 10,850 Likes.  A natural conclusion based on the Like data may be that the mid-size bank has created a more valuable Facebook asset.  However, a review of the "talking about this" number suggests that while the mid-size bank has more likes, the absolute number of users that have engaged with the bank is identical.  As such, either the mid-size bank has a bunch of uninterested followers or the small bank has an active bunch of followers.

So why is having as many users talking about the bank so critical? Well, it is the active and engaged users that are most likely to support and evangelize for the bank.  These active users will tap into their social networks and inform their friends and acquaintances of the reasons why they should support the bank.  In addition,  new visitors to a Facebook page can look at these two metrics to understand how popular, active and engaging the Page is and as a result, whether it is one that they wish to follow.  Losing out on an opportunity to engage new users results in a loss of not only that user but of that user's social network.



While banks should seek as many Likes as possible, they should also examine the number and percentage of followers that are engaging with the bank.  If too few are engaging then the bank is not providing adequate content.  This may result from too infrequent posts, too many "salesy" posts, too frequent posts, uninteresting posts, etc.  It should be the job of the Facebook admin(s) to analyze the data to figure out how to best convert the nonengaged users into engaged users.  Once users become engaged then their networks may also become engaged, and at that point the Facebook page may provide significant value.  However, until engagement occurs, the Facebook page becomes that question about whether a tree falling in the woods makes any noise:  if a Facebook page with tons of users creates no engagement does it provide value?  Very little.

Thursday, December 1, 2011

What To Do With Those Repos? Facebook Them!

During these tough economic times it is not uncommon for consumer banks that originate auto loans - particularly used auto loans - to have to pick up a repossession or two. In many cases banks will dispose of the autos through wholesale auctions or wholesale transactions with used auto dealers. Depending on the car and the outstanding balance, sales through auctions or directly to dealers will result in marginal to significant write offs, as the banks are forced to accept deep discounts.


Fortunately, with the purchase of a fairly low cost video camera and video editing software, banks can now create and distribute videos through social networks in an effort to connect directly with consumers and obtain retail sales prices on their repossessed autos - and possibly provide the financing to qualified borrowers.

After exploring its options, Pan American Bank (my employer) in Los Angeles initiated a social media-based program that distributes videos on YouTube, Facebook and other platforms to publicize its repossessed used autos.  Through the use of in-house videos, Pan American Bank is able to achieve several goals:

  1. Publicize the sale of its repossessed autos directly to retail buyers, reducing/eliminating the losses  experienced from wholesale transactions.
  2. Create a following among consumers seeking quality used autos.
  3. Increase the Bank's visibility. 


As the cost of  video equipment and video editing software has fallen sharply (most cell phones provide video capability), many individuals have become pro-am videographers.  If your organization has little to no budget, a great place to begin a search for a video expert is within your organization.  A simple e-mail blast to employees asking for experienced videographers may result in one or more in-house resources.  This will reduce costs and increase flexibility.  If an in-house resource is not available, inquire with students at local high schools and colleges. Finally, call on video services.  If budget is not a problem you may want to seek a professional right away.  However, you may be pleasantly surprised at the quality of employees.
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