consumers

Social Media is All About Carrots

There’s an awful lot of talk within social media about engagement – the idea that companies can create vibrant and active relationships with consumers.

This happens by having conversations with existing and potential consumers, and providing them with relevant and interesting content that encourages interaction.

And while content, in many ways, is still king, one thing that I have learned over the past few months is the important role played by carrots in getting consumers excited or interested in what a company is doing with social media.

In an ideal world, we would be talking about carrots – the crunchy, nutritional kind loved by rabbits – but in this case, I’m referring to the different incentives that companies must use to convince consumers to participate and participate in an online community beyond simply appealing to their interest in a product or service.

This is why things such as contests have become such an integral part of social media marketing. Offering consumers a “carrot” such as the opportunity to win a prize (and it doesn’t necessarily have to be anything significant), significantly increases the chances of them engaging with your company and brand. If companies can insert some creativity into the mix such as what Dunkin’ Donuts did with its create-the-next-donut contest, so much the better.

The focus on the “carrot” is no different than the off-line world in which incentives have always played a role in getting the attention of consumers. But the carrot’s role within the social media ecosystem has not attracted a lot of attention amid all the focus on the tools and how consumers are embracing them.

At the end of the day, carrots will become a significant of the social media marketing landscape as more companies get into social media. At some point, standing out from the crowd will be increasingly difficult so companies will need an edge to appeal to consumers. It could be terrific content but it could also be carrots.

The Recession’s Over; Time to Upgrade!

A sign that the recession is over or, at least, that many people have decided to move on is the flurry of upgrade activity taking place within the consumer electronics landscape.

Apple, for example, is leading the charge with the launch of the oh-so-wonderous iPad and almost as enticing iPhone4, while the TV industry is enthusiastically pushing sales of 3D models even though many consumers are still thinking about upgrading to large-screen plasma or LCD TVs.

It just goes to show that time waits for no man, and the consumer electronics industry’s need to have people upgrade to the newest, shiniest model waits for no one as well – recession or no recession.

For Apple, the upgrade game is child’s play these days. iPads are flying off the shelves, even though few people really needs one. Sorry, iPad users, there’s no sugar coating this reality.

And sales of the iPhone4 will soar as well because it is a significant upgrade, particularly for iPhone 3 and 3G users who are salivating about the new features. This is particularly in play for 3G owners who want the ability to multi-task.

As for the TV makers, 3D will be a much harder sell. At this point, 3D seems so futuristic compared to the fact that 50″+ models armed with high-definition service are so compelling and affordable. With few 3D shows to watch, it’s very difficult for consumers to get a good handle on why they need or would want a 3D TV.

Then again, consumers and their money are fools. The need to have something new and shiny frequently takes precedent over their needs or budgets, which is why the consumer electronics industry plays this card so often and so well.

Sorry, but Blippy is a Stupid Idea

Confession: I’m a social media junkie – an enthusiastic blogger, active Twitter user, reluctant member of the ever-growing Facebook empire, and YouTube watcher. I like to share my thoughts and interesting content and online services.

The chances, however, of me using Blippy are zero, nil, nadda, nunca.

Why anyone would give a third-party their credit card information so their purchases can be tracked and broadcast is bizarre. Over the past week, I have been beating the drum about the changes that Facebook made to its API that now make more of your information public, and Blippy is just another strange part of the “tell-all” ecosystem that has emerged in recent years.

Really, what are the benefits of telling the world about your purchases? Seriously, what’s really in it for you, your friends or strangers who see this information.

Is it vanity? Is it a way to provide real-world suggestions about the best products and services to purchase? Is it just another creature of consumerism, which seems to have survived the recession relatively unscathed? Or is Blippy just another beast to feed our growing addiction to sharing.

I’m sure there are people who get some value from Blippy by getting a better idea of what people are buying so they can make better purchasing decisions but let’s be real here: Blippy’s in the business of collecting massive amounts of data so it can aggregate and leverage it to make money. In other words, your activity fuels the fire.

To me, the common theme between Facebook and Blippy is how the balance between the benefits offered to users, and what these companies get from all their users’ activity is starting to tilt in the direction of the companies. While users get a few social media crumbs, Facebook and Blippy are gorging at the data buffet.

By the way, here’s Blippy mea culpa in the wake of reports that some of its users credit card information was accidentally disclosed via Google.

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