Would you like another clear cut example that “word of mouth” works?

Yeah, I know – I’m preaching to the choir here, but this type of documentation and research can be very useful when talking to prospects about owning their own home based business. It appears that market research firms Chadwick Martin Bailey and iModerate Research Technologies found that people are more likely to recommend brands they follow as fans on Facebook and Twitter. Likewise, these same followers are more likely to buy from the brands they follow.

The study was conducted with 1500 consumers and here are the hard numbers:

• 60% of Facebook fans and 79% of Twitter followers are more likely to recommend those brands since becoming a fan or follower.
• 51% of Facebook fans and 67% of Twitter followers are more likely to buy the brands they follow or are a fan of.

With now over 400 million Facebook users on the internet these days, one might conclude that there’s an opportunity to be had here.

What’s even more interesting is that these users now actually expect business to have a presence in these mediums. The comments found in the release are very telling:

• “It’s EXPECTED that a company have some digital face – whether it’s on FB or Twitter I don’t know – but they need a strong electronic presence or you doubt their relevance in today’s marketplace.” Female 50-54
• “Either they are not interested in the demographic that frequents Facebook and Twitter or they are unaware of the opportunity to get more exposure in a more interactive method.” Male 35-39
• “It shows they are not really with it or in tune with the new ways to communicate with customers.” Female 18-24.
• “If they’re not on Facebook or Twitter, then they aren’t in touch with the “electronic” people.” Female 55-59

Clearly, Social Media has come of age, and those that embrace this medium have found a market that’s not only able – but very willing to recommend (aka “promote”) for you.

Those of us who’ve work in Direct Sales and Network Marketing (and do it the right way) have known about this phenomenon and how it works first hand. It’s really nothing new. You hook up, provide useful information that benefit them, and the next thing you know all sorts of people are purchasing based on a simple recommendation. There’s no need for heavy sales pitches or arm twisting when done the proper way.

In fact, anything heavy or over the top turns more poeple away can be the death of any online business in this environment.

Just relax, and be…well…”social”. Sounds obvious I know, but it’s the first step in building a long lasting relationship that will build trust and loyal fans and followers. Be part of the community and without much effort at all, you’ll find yourself climbing up the social media ladder – which in turn leads to exposure – credibility – and eventually sales.

Studies like this prove that Social Media not only works, but it’s now required if you want to build a viable business in this day and age.

Kind of puts a whole new light on the new ZamZuu marketing campaign launched less than three months ago doesn’t it? ;-P

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Whether you’re a fan of football or not, you were probably one of the estimated 100 million strong who tuned into watch last night’s Super Bowl. Parties pop up all over the world to watch this event.

Some even tune in to watch a football game.

Obviously Saints and Colts fans were watching to cheer for their respective teams. Old rockers like myself wanted to see if “The Who” could still make it through a set without suffering cardiac arrest. (The Super Bowl has come a long way since “Up With People” huh?) But the vast majority of the water cooler talk this morning I would imagine are the Super Bowl commercials that advertisers invested millions per spot to create brand recognition and buzz.

One of those advertisers the last 23 years had been Pepsi. But Pepsi decided to opt out this year not because they couldn’t afford the $12 million it would cost to air two spots during last night’s game. They opted out because they’re betting that “the days of mass-market media as the sole vehicle to reach an audience are officially over”.

Yep, you read that right, and an article forwarded to me last week lays out a whole new strategy for Pepsi that will focus on Social Media instead of Mass Media. For Pepsi, the Social Media platform is a much stronger and longer lasting medium for a yearlong initiative and their “Pepsi Refresh” campaign.

Granted, people still talk about Cindy Crawford’s appearance a couple years ago during the Super Bowl. (My personal favorites happen to be the E-Trade Babies that are absolutely hilarious!) The new Pepsi initiative however, in order for it to work, requires far more than a laugh, brand buzz or Monday morning water cooler talk.

“This is such a fundamental change from anything we’ve done in the past,” says Lauren Hobart, chief marketing officer for Pepsi-Cola North America Beverages. “It’s a big shift. We explored different launch plans, and the Super Bowl just wasn’t the right venue, because we’re really trying to spark a full-year movement from the ground up. The plan is to have much more two-way dialogue with our customers.”

The plan for Pepsi is to create a “charitable initiative that can build goodwill”. Pepsi wants to give away $20 million in grant money to fund projects in six categories: health, arts and culture, food and shelter, the planet, neighborhoods and education. You don’t start an initiative like that by spending $12 million in advertising dollars during the Super Bowl. It defeats the purpose, especially when there’s a better – more powerful medium that enables interaction between the company and the consumer who will guide this money to worthy projects.

Will this goodwill initiative spawn new customers and help Pepsi’s bottom line? It may not be enough for a Coke fan like myself to switch, but I do find Pepsi’s initiative refreshing enough to write about it – which could lead others to switch. (For the record, it does shed a whole new light on Dr. Pepper, which is a Pepsi brand I do drink.) For some it could tap into brand loyalty in a way that Mass Media could never do – especially during an event like the Super Bowl that’s designed for entertainment and not social change. That’s why I think Pepsi hits the mark with their choice to opt out of the Super Bowl this year and move to Social Media instead.

In my opinion, it’s a perfect marriage for goodwill and social change.

Social Media is just that – “social”. We’re social beings and the platforms available such as Twitter and Facebook enable big name companies to interact and promote not only their brand, but their cause. You’d be hard pressed not to find a company in this day and age who doesn’t have either a Facebook fan page or Twitter account, or both. Not to say some still don’t have one, but if you’re looking to build your company both mediums appear to be a top priority because they enable the company to interact with their customers in ways never thought possible before.

Like this story – Re-Tweet it. Something you find interesting or strikes a chord with you – write about it and link to it on your Facebook wall. Both platforms can do far more than announcing to the world you’re getting ready to get ready to go out next Friday night. And the thing is – people and companies are beginning to see the power these social platforms have. They’ve quickly turned into tools that promote meaningful change and perhaps, for companies like Pepsi – a better bottom line.

Aside from talking about all those over the top and extremely entertaining Super Bowl commercials there’s really very little value for me or you after that. Not that I have anything against brand buzz or hype. I buy into it just as much as the next guy – especially if it technology or travel related. But this shift Pepsi is taking this year takes a strike directly at this long standing medium and makes a very bold statement that there is another way – a better way to get your message and brand out to the masses.

I think about the ZamZuu video that’s on our Rep Accounts, and I see those quotes about the internet, Facebook, old ways of doing business, and traditional advertising being dead.

Couple that with what Pepsi is doing?

Do you think both could be dead wrong?

Possibly. But I don’t think the odds are that overwhelming when you have big names like Pepsi jumping from Mass Media to the Social Media bandwagon. You don’t just stop doing things after 23 years without some very close and careful analysis.

It’s certainly a very bold move. But those of us in YTB, know all about being bold don’t we?

Can’t wait to see how both shake out. ;-P

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