Where Does Facebook Fit in Your B2B Communications Plan?

It’s been a media frenzy for Facebook surrounding it’s recent IPO and reaching one billion users around the world. Some now believe that Facebook’s target is on professional users, which is a good thing for B2B communicators.

Facebook has done quite a bit to make its branded pages more useful for B2B companies. FacebookIn particular, the recent changes to add promoted posts and global pages are not just tools that B2C companies can leverage. But can it compete in the B2B space with LinkedIn? And what about new entrants like Pinterest and Google+?

I recently had a chance to answer several questions from Arik Hanson about Facebook and how we leverage the platform. You can read the full interview here: Social media case study: CME Group

 

If you liked this post you may also enjoy the following:

The Three I’s of Social Business Media

Five Lessons Learned from Five Years of Social Media

Are you ready for a real-time B2B world?

Social Media Week: The B2B Content You May Have Missed

It’s been a busy week in social media as cities, brands and people came together to discuss all things social — from Facebook’s initiative to remove bots to Instagram overtaking Twitter on mobile phones. We decided to pull together some of the best B2B focused content from this past week and share it with you. If you have any other links (including your own) that you think we should have included please add them in the comments.

There was a lot of content to consume this year.

There was a lot of content to consume this year.

Hootsuite has added a “conversational” dashboard to help facilitate better real-time collaboration (Disclaimer: I’m a Hootsuite customer).

LinkedIn (a favorite tool of B2B marketers) has rolled out an “endorsement tool”. Why don’t you connect to all of us here at B2B Voices on LinkedIn: Kate Brodock, Arik Hanson, Aaron Pearson, Allan Schoenberg.

Gartner says CMOs better start thinking like CIOs. Speaking of that relationship, IBM has a new study out looking at how CMOs and CIOs need to work more together. If Gartner and IBM are talking about this you better be paying attention (and fine-tuning your technology skills).

You’ve always wanted to take your social media strategy global; no worries, HubSpot has you covered.

Do you know the behavior of your B2B customers? This Buyersphere survey looks at that topic to determine just exactly what is the actual behaviour of B2B buyers (PDF).

If you haven’t started a Facebook page yet for your B2B brand (or haven’t given it attention lately) you better get going. A new study shows that brand pages are getting some serious attention.

I asked you earlier if you were ready for a real-time B2B world, but what does real-time search mean for B2B marketers?

Do you want to be more effective at B2B marketing? Focus on creating better content.

Are you thinking about how your mobile strategy is working? If not, you should because everyone wants it.

The doctor is in and it’s time for a social media check up for your brand.

If you like infographics you will not be disappointed by this one from Brian Solis: The Brandsphere and why it matters.

Last, but definitely not least, are you measuring your influence and what you do? Apparently the C-suite isn’t very impressed with marketers.

 

2012: No Predictions, Just Actions

Everyone seems to have dusted off their crystal balls the past few weeks as the predictions for social media in 2012 are plentiful. I  stopped reading them. There are only a handful of people who are making predictions that I would trust, and after seeing so many most are not taking into account the current economic climate and the themes are too repetitive.

Instead of adding to the overcrowded space of predictions I want to focus on actions. The path for next year is clearly lined with more questions than answers. So, what am I looking at in 2012, a year clouded with economic uncertainty and promises for social media nirvana? Here’s a rundown of what’s on my agenda and questions you may need to ask yourself:

What's ahead for you in 2012?

  • Digital Content: We’re doing a lot more with digital content on our website and that will continue. What we’ve learned from the past few years of doing social media is that we have become our own media aggregator with original content that cannot be captured anywhere else. Whether it’s our blog, our online magazine, our media room or our education center, various stakeholders look to us for content and we will continue to drive more of that next year. What are your plans for digital content in 2012? Have you developed an editorial calendar? Do you have an editorial team?
  • Mobile: This was a great year for us and using mobile devices as we expanded our iPhone/iPad offering to the Android and Blackberry. In addition, we introduced an app specifically for our annual Global Financial Leadership event. Our research continues to show that users are moving more and more toward accessing our site from mobile devices and we know that consumers in general are digesting more information via their mobile devices. We will continue to enhance our mobile strategy in 2012 not only for distributing content through social platforms but also for giving people access to our information. How are you integrating mobile into your marketing strategy? What type of research do you have on people accessing your content from mobile devices?
  • Real-time matters: We’ve been using Twitter since 2008 and are one of the few verified brands. In our line of business, real-time news and information matters and for the markets and finance this won’t change. David Meerman Scott’s latest book on real-time marketing captures exactly how we approach this world of instant news. Where we’ll be looking at improving on what we’ve already accomplished is with our partnership with StockTwits. Messages about our products and services in the past year surged from 15,000 a month a year ago to more than 40,000 a month last year on their platform. Does real-time matter to you and your business? Are you targeting the right people on Twitter? Do you have a plan for how you can leverage StockTwits and the messages about your company?
  • Social networks: Facebook will still be a part of our plan and remains a great way to connect with customers in a more static environment. We can create very topical conversations around news and events on our page and that won’t change. We do know that Facebook fans are passionate about topics and the stream has changed our approach to this platform and has helped in creating more awareness about our offerings. We can’t ignore either of those facts. The challenge for 2012 will be to figure out how to use our Google+ page, but first I think Google needs to figure out Google+ for brands. I don’t see a lot of focus there yet from Google so do not plan to spend much time there. At the best right now it’s an experiment in SEO. How are you going to handle new technologies that come out in 2012? Do you have an assessment plan or team in place?
  • LinkedIn: I am a long-time fan of LinkedIn for the B2B market and am very excited about 2012. The company has made some great changes to the corporate pages managed by companies and added a much needed dashboard for group managers. Both of these additions have been much needed and further enhance LinkedIn as a social business platform. We continue to leverage the groups and the private feature has allowed us to create a 24/7 virtual focus group environment where we talk with our customers. We will putting more emphasis on LinkedIn in the coming year and finding ways to better improve what we do for the benefit of our customers. How do you leverage the groups on LinkedIn? Is your company page a place where potential employees view you as a thought leader? How do you get others in your organization involved in LinkedIn?
  • Video: We do have a YouTube presence, but our video strategy continues to focus on bringing people to our location. Our website continues to be populated with video content in a number of places and videos allow us to visually tell our story through our spokespeople, customers and thought leaders. We’ll continue to build content that includes video as a key component and through our social platforms bring this content to our followers. How are you leveraging videos? What is your distribution plan? Do you use video to complement content?
  • Metrics: I’ve always believed that in order to manage content you have to know what is happening. So metrics and measurement continue to play a very active part of what we do and this will continue to be the trend for us in 2012. We have a number of tools that we use that include both qualitative and quantitative metrics for us to better understand what we are doing. Are you measuring the right information? How are you making decisions based on your data?
  • Experiment: We did a lot in 2011 to try new things and apply new technologies. For example, we integrated Facebook comments onto our digital magazine, started using Google+ brand pages, launched our Weibo account in China, and made several changes to our LinkedIn company profile. In the coming year we will continue to do the same and experiment where it makes sense. New technologies and enhancements are now the norm and finding ways to leverage them will be a challenge. How do you stay on top of the latest information? Do you have a social team to review and plan for new initiatives? How do you prioritize what to implement and where to hold off?
  • A Social Business: In 2011, we continued to integrate our social media with our business. One of the best posts I’ve read on this topic is from David Armano and Demystifying Social Business. When I started using social media at the company in 2007 it very much was a silo channel for us, but in the past year we have made great strides as an organization to integrate it throughout the company. That will continue in 2012 with our sales force, marketing activities and with our employees. How do you communicate your social initiatives internally? Have you implemented any training or education programs? Do you have social guidelines for employees and if so when was the last time you reviewed it?

The coming year promises to be another exciting year for communicators. We will not only face a global economy that has numerous challenges for our businesses, but we are being inundated with new and various tools to communicate with our stakeholders. Finding the balance between those two will help determine success for each of our enterprises and I wish you all the best of luck.

If you enjoyed this you may also want to read:

Finally, a comprehensive B2B social media study

World-Class social practices for B2B companies

Are you ready for a real-time B2B world?

Using social networking sites in B2B businesses?

Are You Ready for a Real-Time B2B World?

The past two weeks may have been an eye opener for firms who tend to ignore the “real time” world.  In fact, we may be reaching a tipping point as more and more data comes online via social media. That tipping point comes in the form of a competitive advantage for some. Some companies, like StockTwits, took this trend seriously three years ago and developed ways for B2B firms to use social media. We are now seeing more and more B2B companies, such as the hedge Fund Derwent Capital, put this data to use.

How are you managing "real time"?

And while companies like Twitter and Google (search only since Google+ brands pages have yet to officially launch) have been leading the way for B2B brands to look at and use real-time news and analysis, recent changes at Facebook are now under scrutiny by brands. With these three firms firmly racing to be the platform of choice for sharing information, as communicators in the B2B world we need to think about all of the options to meet the needs of our brand.

A number of stories and posts have come out in the past week showing how the mining of real-time data is making many companies and brands take notice. Here’s a sampling of the stories you should read:

The Economist: What’s in a Tweet

But companies that mine the stream of tweets for marketing and other purposes (see article in this week’s issue of The Economist) get much more information.

The Economist: Sipping from the Firehose

Fed through clever algorithms, a torrent of microblogs can reveal changes in a nation’s mood. Hence the excitement about a new market: the sale and analysis of real-time social-media data.

Think Quarterly (Google): Predicting the Present

Using the publicly available tools mentioned above, we’ve uncovered a number of interesting relationships.

Google: Predicting the Present with Google Trends

Can Google queries help predict economic activity?

Business Insider: What Facebook’s Changes mean for Brands

The key takeaway for brands is that the News Feed matters ⎯ a lot. For most brands, the News Feed is their best chance for interacting with fans (aka consumers).

UPDATE: This story from the WSJ also takes a look at real-time data analysis.

WSJ: Decoding our Chatter

Want to monitor an earthquake, track political activity or predict the upds and downs of the stock market? Researchers have found a bonanza of real-time data in the torrential flow of Twitter feeds.

So what can you do now armed with this info? Here are two takeaways from the recent news:

  • Now is a good time to take another look at your social media strategy and reassess what you are doing and what you are posting. We do this on a regular basis as new trends and technologies are introduced, but also as we connect with new users.
  • Share this info internally. But don’t just share this with the marketing and communications team, make sure the right technology and research managers know that you are watching this trend. You want to continue to push these changes internally and to ensure you can help evolve the business case around real-time information.

One objective of this blog is to continue to raise the business relevance of social media in B2B communications. We continue to look for examples and ways that companies are doing this in order for all of us to learn. Hopefully, we’re helping accomplish that and we can continue to build on this objective. Stories like I mentioned above add further evidence to the important of real-time information, which is taking place more and more online in public forums. As these stories develop we will share our thoughts with you and look for your comments.

If you enjoyed this post you may also want to read:

The Beat Goes on at StockTwits

Need a Strategy? Start by Playing Games

Using Social Networking Sites in B2B Businesses

Business Tech Buyers Are Using Social Media, But Twitter? Not So Much

I’m at least a month late in reviewing Forrester’s annual 2011 Social Technographics for Business Technology Buyers report, by Kim Celestre (@kcelestre). As I was last year. :-)  It’s still worth doing. Forrester has conducted this survey for three years running and for those of us looking for the impact of social and digital media on B2B tech, this is about as good a study as we have available to us.

Here’s Forrester’s blog post.

This year’s report appears to show a real maturity in the behavior of technology buyers in social media. Basically, there was no substantive change in what percentage of their audience were social media spectators, critics, conversationalists, creators, etc. I’d venture to say that the average buyer here has pretty much found their comfort zone with social media engagement and is settling in on a specific style of engagement.

Twitter and Facebook are at the bottom of about a dozen online and offline sources.

The good news is that the average level of engagement is higher than for a typical consumer. For example, nearly a third are content creators online (for business purposes), while only 23% of the general population describes itself as such.

Where are they, though?  Forrester also looked at the sources of information these business technology buyers use, and guess what?  Twitter and Facebook are at the bottom of about a dozen online and offline information sources. (Only 5% claim they use Twitter for business purchase decisions.) It turns out more traditional channels like your website or conferences remain hugely important, if someone less so each year.  However, there are real opportunities to find larger segments of your target audiences if you can find niche communities online (LinkedIn does a bit better for instance) or if you can create a private community of your own customers.  For what it’s worth, e-newsletters remain important too.

I would also note that blogs appear to be fairly important sources of information. (Of course, I would say that!) This longer-format, “old-school” social media channel may be particularly well suited for discussing the complexity of B2B technologies. I would also argue Twitter is often a great channel for reaching influencers and opinion-leaders.

Bottom line:  Technology marketers should assume their target audiences are using social media, and probably more than just for consumption. However, they should consider nurturing more targeted online communities and ensure social media engagement efforts are seamlessly integrated with other marketing channels, including media relations, events, advertising and the website.

It’s Social Media Week — Do You Know Where Your Brand Is?

Today marks the launch of Social Media Week around the world and there’s a lot going on. I’m hoping to get to one or two events this week in London. With so much taking place around the world it’s clear that the days of not paying attention to social media are over.

To me the foundation of social media — any media for that matter — is the concept of listening. Who is talking about your brand? What are they saying? Why should you care? What can you do? The rapid growth of technologies makes it far more easier to discover the answers to these questions, but my advice is don’t just use anything. Find the right tools. Here are some that I particularly like and have used to help us.

  • StockTwits: I’ve talked for months about the value of this network from an investor relations perspective. But the platform brings a much richer experience than traders just talking about puts and calls on your stock. This is a constant stream of investors who are also talking about your executives, products and services. You should register and tune in.
  • Hootsuite: I like what Hootsuite has done with its dashboard in terms of metrics and its ease of use. Because of the platform and how simple it is we can really take a deeper dive into specific topics and the people talking with us and about us. There’s also an ongoing debate around Klout, which is integrated into Hootsuite — I’m following the discussion closely. In fact, I just started an online poll about Klout the other day — http://twtpoll.com/s4luaa
  • 14 Blocks: This is a very simple tool that looks at the time your followers on Twitter are most active. The free trial is useful and does give you a good indication of when to engage with your audience.
  • Facebook: We continue to gain a larger audience on Facebook and I continue to be impressed with their analytics. I think they could improve them with more information about topics that our followers discuss, but I’m sure they’re working on that. And if you haven’t tried Facebook ads yet I would encourage you to do so. I think you’ll be surprised.
  • Omniture: If you’re not talking to your website team about this you should make it a point to do so this week. Their tools for your website can give you a much better picture of social media traffic and how you can improve your programs. Your web team will also appreciate the attention and how they can help. It’s a win-win.

There are lots of other tools and resources out there. In fact, my good friend Ken Burbary has created a Wiki of social media monitoring resources to use.  So what are you using to listen and why to you like it? Let us know.

Socialnomics: The Revolution is Us

A Book Review

If you didn’t read Socialnomics, by Erik Qualman, when it originally came out in mid-2009, a revised and updated edition just came out in November. It’s worth checking out.

Qualman is an unabashed cheerleader for all things social media, which for someone with a skeptical bent like myself can be a little hard to take at times, but most other social media authors are no different – as Gartner analysts would say, the depths of the “Trough of Disillusionment” for social media are not yet upon us (though 2011 may be the year). This book is written primarily as a guide to social media for marketers and entrepreneurs. Like most, it comes at it with a B2C emphasis, with the rare exception. But that’s nothing new. The fact is that B2C is still ahead in social media so those of us focused more heavily on B2B need to learn from those experiences.

Here’s Qualman at a recent TedX event.

The Good:

  1. Word of Mouth to World of Mouth: This is the heart of Qualman’s thesis and it’s hard to argue with. As I’ve said on this blog ad nauseum, every bit of research I’ve ever encountered shows word of mouth as the most powerful influence on the purchase decision-making process. This is at least as true for B2B purchases, and maybe more so. But traditional word-of-mouth influence is slow and each individual only influences a few of the people they know. Grease word-of-mouth with social media and suddenly reach and speed explode with little loss of impact. He calls that “World of Mouth.”
  2. Silence is Not Golden. Qualman cites a study by the Strategic Planning Institute that found that 96 percent of dissatisfied customers don’t bother to complain, and yet 63 percent of those silent dissatisfieds will nevertheless not buy from you again. Yikes! Thanks to social media, it’s getting much easier for those customers to complain when something doesn’t go right. The author emphasizes for skittish companies that this is An Opportunity, a chance to take that feedback to make your product or service the best it can be. Of course, you also don’t have a choice because you can no longer hide the things that aren’t working. It’s better to face up to reality.
  3. Stats. Those of us who have to give presentations on social media are always trying to keep track of key trend stats, and not only has Qualman peppered the book with many, as you’d expect, he did us the courtesy of assembling most of them in the last chapter of the book under Eye Opening Statistics.  Oh, okay, I know you want a couple right now.  One out of eight couples married in the U.S. last year met via social media. Also, 50 percent of the mobile Internet traffic in the UK is for Facebook. There are pages of these handy stats.  (Too bad they’ll all be hopelessly out of date in a year, but so it goes. Maybe he’ll keep updating this.)
  4. Thoughtful Case Studies, without clear villains, just like real life. Sometimes the big companies get it right, sometimes they get it wrong, sometimes there’s more than one winner, and sometimes it takes two tries to get it right. And when we think we get something right, inevitably hubris sets in. I loved the travel example, where ACME Travel, a big player, gets something right on Facebook, but not quite right. A newcomer, Where I’ve Been, one-ups ACME. In turn, TripAdvisor tries to buy Where I’ve Been, but the latter gets a little greedy so TripAdvisor builds their own travel sharing app for less than it would have cost to acquire Where I’ve Been. In the end, TripAdvisor ends up with the most users. Fascinating story.

The Not So Good:

  1. It’s Not All Rosy. Although Qualman does acknowledge that there may be some downsides to social media, he doesn’t try very hard to think of many. I’m certainly a fan of the concept of “Socialnomics” but the fact is there are threats posed by social and digital media besides the possible decline of interpersonal communications skills in some young people. One of the great things about social media – really the Web in general – is we can really open our eyes to new ideas if we want to. On the other hand, you also have the opportunity to surround yourself only by people who think as you do and to read news and information that only conforms to your narrow point of view. This can actual reinforce socioeconomic and cultural isolation. Here’s a New York Times piece about that from way back in mid-2009.
  2. The Future is Not the Present. This is mainly something for marketers to be cognizant of. Qualman will often state emerging trends as if they are already the current state of affairs. He notes, for example that the media now do interviews via email instead of by phone or in person. Well, some industry media do, in some instances, but certainly that’s not the way any tier-1 journalist conducts interviews today. (The Washington Post ran such a story today on Chinese President Hu Juntao, but not because THEY wanted to. Rather, Hu insisted.) The author also says, “People are now living their own lives rather than watching others.” Presumably, because you see other people doing cool and amazing, you’re less satisfied spending days working, washing clothes and mowing the lawn, and are now taking up skydiving and treks to the South Pole. I’m sure some are but it feels more like wishful thinking.
  3. Search Engines Subsumed by Social Media. Qualman’s concept here is that I care more about what my neighbor thinks than what Google thinks (true) and so we don’t need to go hunting around on search engines.  I would note that most searches on search engines are not for products. Look at Bing’s top 10 searches of 2010 and none were product-related. And most of what we buy, we never did find on search engines. A B2C example: I want a new car. I don’t know about you but before social media, I wasn’t punching in “four-door sedan with good gas mileage” into a search engine. I was talking to my dad over coffee and emailing my friends. Doing that via social media doesn’t strike me as a radical change. A B2B example: Did I ever hire an accounting firm by trolling search engines? I don’t think this trend is as big as he makes it out to be.
  4. It’s Weber, Weber! Sorry, I’m the only one who cares about this, but in his Social Media Rolodex, Qualman gives a nod to Larry Weber, who founded the Weber Group, which merged with us to become Weber Shandwick.  But it’s “Larry Weber” not “Webber.” Had to be said.

Bottom Line: If you read a lot of books on social media, you’ll have heard most of this before. If not, this is one of the better ones for describing the fundamental impacts of the social media era on business and society.  Plus the sources and references in the back are handy.  Just go easy on the Kool-Aid.

You can follow the author on Twitter at @equalman.

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Integrating Social Media With Corporate Website: How Far Can We Take This?

I had a great time at MarketingProfs’ SocialTech 2010 conference earlier this week drilling into B2B social media for high tech companies. I was particularly impressed by the big-name brands represented at the event, from Facebook to Cisco, Microsoft to Xerox. For what it’s worth, I did not see a lot of large agencies represented.

Jeremiah Owyang of Altimeter Group had the opening keynote. Unlike the keynotes from Robert Scoble and Guy Kawasaki later in the day, which seemed weighted more towards bemusement and social media curiosities (not that we weren’t ready for a mental break by then), Owyang kicked things right off with a challenge to improve integration between the corporate website and social media presences. I agree. At Weber Shandwick, we sometimes call the website a “home base” property and social media sites “outposts” of the brand. The two need to work together a lot more than they do today in almost every case. In fact, according to an Altimeter Group survey from earlier this month, social integration onto the corporate website is the No. 1 social strategy objective of 2011.

Jeremiah Owyang (photo courtesy Thomas Hawk, flickr)

It’s a bit of a no-brainer but one challenge is the teams are usually different. And in the case of social media, especially at a larger company, there may be multiple teams all over the place, at the corporate level, at the product or division level, at the country level. Compounding it is the fact that, technologically, social media properties are designed to be agile, radically scalable (most are cloud-deployed), and interoperable, leveraging published APIs. In contrast, a lot of website platforms feel like extensions of the enterprise application architecture, with lots of custom programming and integration to back-end systems.

Fortunately, Owyang shared an eight-step framework to let us get there in stages, learning as a team and evolving our technology along the way.  I don’t have a full presentation I’m at liberty to share but I did find a Slideshare presentation from earlier in the year that does outline the framework (albeit with just B2C examples):

Essentially, we’re talking about moving from no social integration all the way to seamless integration where a visitor doesn’t see a difference between being on a home base or an outpost. Nobody’s really there yet. In fact, most are only one or two steps in.  The problem with being at no integration is that people are having conversations about your brand and your website isn’t supporting those conversations in any way.

A couple interesting examples:

  1. Cisco Support Community is integrating the brand with social channels so no matter where the audience goes, they have a consistent brand experience. You can check out the Cisco Support Community across Twitter, Facebook and YouTube to see what that looks like.
  2. HP Labs is aggregating discussions on their corporate site, which surely would scare some brand owners.  Instead of just having conversations about your brand taking place out on Twitter or Facebook, aggregate those conversations on your website, so the site is the first place your audience thinks to go. Now we’re really making the corporate site a lot more influential and putting supplemental information at the fingertips of our audience without separating ourselves from the authenticity of those social conversations. But it’s a leap to make because there is a loss of control over just what shows up on that site. has been able to do it.

I was talking with Laura Ramos, another former Forrester analyst now at Xerox, afterwards and she pointed out that for many B2B companies where the audience target is known and small, the highest priority may not be seeing how advanced you can get with this eight-stage framework. Perhaps building a dynamic customer community with something like Jive might pay bigger dividends.  But I have one client with a very substantial audience to reach and it’s pretty easy to see the need for improved integration in those cases. Unfortnately, having the organizational structure and governance to head down this path is a challenge. There needs to be a better spirit of cooperation between IT, marketing, advertising, public and corporate communications, sales, and customer service. Wow, has this gotten that complicated?  I’m afraid so – everything is going digital, so all these groups have legitimate stakes in how this integration happens. There needs to be a brand champion looking out for the best interests of the brand, but in my mind that person is a coach and a convener, not a dictator, and someone who can remind all these parties that ultimately  your customer decides what your brand really stands for.

I’m looking forward to keeping the conversation going!

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How Well Do You Know Your Social Network? Probably Poorly

I had a great time at MarketingProf’s Social Tech 2010 conference today, getting a lot out of every session I was in.  I have a rather diverse client base, so pretty much name the challenge and I have a client dealing with it.  Getting so many different perspectives seriously helped.

The biggest eye opener for me today had to be the session on “Using Social Network Analysis to Leverage the Dynamics of Social Media Interactions Inside and Outside Your Organization.” In addition for winning the award for longest and most awkwardly named session, I’m sure it was also probably the most baffling for anyone trying to follow on Twitter. But the message I took away is that most of us have been flying practically blind when it comes to understanding our social networks, and that’s sure not going to cut it in the future.

Tweets of #futureofbirth by marc_smith created in NodeXL

Talk about a brainy line-up of speakers: Dr. Marc Smith is chief social scientist for the Connected Action Consulting Group and the author of Analyzing Social Media Networks With Node XL. Lawrence Liu is a product manager for Cisco’s Enterprise Collaboration Platform business unit. Thomas Lento is a data scientist for Facebook where he builds statistical models to understand the behavior of Facebook networks. And Michael Wu is principal scientist of analytics at Lithium Technologies and a Ph.D. in biophysics from U.C. Berkeley. I was in awe of these people but really had to concentrate to keep up with them.  They know each other well and the interplay among them was fun.

Social network analysis (SNA) is very comparable to past references I’ve made to what our partner Community Analytics does to map influence networks.  In this context, we’re talking specifically about influencer maps in an online social media setting. You can read the Wikipedia definition here but what we’re talking about is a network map per the image here of nodes, which are typically people, but sometimes ideas, and edges or ties that connect them, which might represent advocacy or simple education but are very topic-specific. Software like the open source and free Excel add-on NodeXL lets you take social media data sources and create these maps (give it a try if you’re geeky enough). Ultimately, they enable you to spot the real influencers in your network and identify the roles they are playing. One example from Marc Smith:  Let’s say you have a node, an influencer, with lots of other people connecting to that influencer. That’s good, that’s a key person. But if none of those other people are connected to each other, then if the influencer were to withdraw, the whole network would collapse.  Another example from Lawrence Liu: You can find a cluster of connections suggesting a virtual “echo chamber,” which is notable. But if someone in that echo chamber is also well-connected with others outside the echo chamber, that makes them the key to extending your reach beyond your usual suspects. 

Smith warns that it’s not enough to just count the number of connections. As in real estate, where it’s about location, location, location – in the social network world, it’s about those critical people who have the connections others don’t, who can be the gatekeepers to key new relationships. He described the job of the community manager as a park ranger. You’re really talking about nurturing a social network ecosystem. Continuing to add more bears doesn’t necessarily make a nature ecosystem healthier and just ramping up connections doesn’t make a social ecosystem automatically better either.

There’s a lot more to this and I won’t go on about it but the fact is we no longer need to just guess about what these influencer networks look like and as social media programs continue to scale up, we’re really going to need to take a hard look at these more sophisticated, automated ways to analyze what’s happening out there. Gut feel won’t be enough.

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Building a Social Media Marketplace in Financial Services

I remember in my days working at Edelman during the ERP heyday that online B2B marketplaces, particularly for manufacturing, were the buzz and actually changed how many companies did business. Last month, I presented at the Ragan Corporate Communications Social Media conference (we also hosted the conference at the exchange) about what we are doing in the financial services industry (you can view my presentation here via Slideshare and a recap from Barbara Rozgonyi here).

In my opinion we are in the midst of developing a new marketplace at the exchange. In the past several years alone we have seen tremendous and rapid change in our industry. As a marketplace founded in 1848 (version 1.0) our model was unchanged for more than 150 years. Buyers and sellers came to our trading floors to hedge their risk and sell their products. They also used the markets to discover what the market would pay for a price. In 2002 that evolved (version 2.0) when the exchange went public (Nasdaq: CME) and we had new audiences to communicate with (investors, analysts) besides our members. When I came to the exchange in 2004 another shift occurred when for the first time ever electronic trading (version 3.0) surpassed floor trading. This shift in trading create even more opportunities for us as we now had customers in more than 85 countries directly connected to CME Group (as opposed to our trading floor). Today, more than 80 percent of our volume is now electronic. If you want to know more about how the exchange operates you can watch the video here.

So where are we now? I believe social media is profoundly changing financial markets once again (version 4.0). Social media, in particular Twitter, Facebook and LinkedIn, are having profound effects on the way our customers interact, communicate and research what is happening in the economy. If you want a great example of this just go to StockTwits and follow the conversations. We’ll see where all of this takes us but I think social media will continue to create a number of real business opportunities for traders and the financial markets in the coming years.

I’ll be talking more about this idea and concept at Blogwell and Ragan in the coming weeks. So how is social media changing your views about your industry? I welcome your thoughts, ideas and questions.