February 2010 – Column: Rick Petry

Make Social Networking Work for You

Last July, comedian Dave Chappelle showed up unexpectedly in Portland, Ore., telling a local retailer he planned on giving a free, impromptu stand-up concert in the city’s Pioneer Courthouse Square at midnight. Starting at 5 p.m., through Twitter, then Facebook and texting, news spread. By the witching hour, 4,000 fans had turned out.

The following month, Best Buy mistakenly listed a Samsung 52-inch flat screen television set valued at $1,700 on its website for $9.99. News swept wildfire-like via the same social networking mechanisms, as thousands ordered as many as 10 sets only to find out that an obvious pricing mistake would not be honored save for five lucky souls.

These stories contain valuable lessons. In both cases, the lure of something clearly ephemeral became irresistible and caused a groundswell of organic promotion. No wonder. People have always loved to share information–especially when it’s fresh or exclusive–and spreading that news in the digital age is as easy as two thumbs up. The notion of scarcity has always fueled direct marketing. Now, marketers can create an army of word-of-mouth grassroots promoters to help them succeed.

Consumers are smart. They’re going to do their homework. While the idea of a limited-time opportunity sounds smart, its overuse and abuse in infomercials–where the promise of exclusivity is evergreen–has created cynicism and indifference among the public. One of the major advantages of home shopping is that its rolling offers are promoted in real time, creating a genuine sense of urgency that, when combined with a network’s reputation, can produce a formidable one-two punch. Similarly, news of special deals spread via the virtual backyard fence that are indeed limited, have the benefit of drafting off the goodwill of the communicator. They create a sense of now that is compelling.

For the cynical who think this is just about selling blenders and jewelry, rest assured it is not. After the devastating earthquake in Haiti, news spread that by simply texting 90999 via cell phone, an individual could make a $10 donation to the American Red Cross to help with the relief effort. In a matter of days, $11 million had been raised through this tactic. As the world observed during the uprising that followed the recent elections in Iran, these social networking tools operate without boundaries. It’s why marketers better deliver on their promises–because just as these tools can be used for one’s benefit, they can also destroy a brand’s reputation.

So what’s a marketer to do? First, pay vigilant attention to what’s being said on these channels. Discourse on the Internet is as vast and ever-changing as an ocean current. It can’t be merely spot-checked. Second, you need to use these new tools to communicate timely, newsworthy information that will motivate consumers. In a recession where everyone is looking for a deal, the opportunities presented by social networking are unlimited. It’s a chance to take what some may have viewed as mere monkey business and turn it into sound business–the sound of a cash register ringing.

Rick Petry is a freelance writer who specializes in direct marketing and is a past chairman of ERA. He can be reached at (503) 740-9065 or online at rickpetry.com or http://twitter. com/thepetrydish.