SOCIALNOMICS How social media transforms the way we live and do business. Erik Qualman Deanna Middleton

Erik Qualman: • Global Vice President for online

marketing of EF education (world’s largest private educator)

• Fortune 500 speaker

• MBA professor at Hult International Business School.

• As present and future marketers, business people, & hopeful entrepreneurs, we must embrace and adapt to social media to capitalize on the benefits:

• Increased sales • Creating and nurturing customer relationships • Decreased marketing costs

WHY DO WE NEED TO UNDERSTAND SOCIALNOMICS?

@ Word of Mouth- World of Mouth @ Social Media= Preventative Behavior @ Death of Social Schizophrenia @ The transparency of the “Glass House

Generation”

HOW SHOULD WE UNDERSTAND SOCIALNOMICS?

WORD OF MOUTH WORLD OF MOUTH

• Social Media is the World’s Largest referral program in history

• We care more about what our neighbors say than what google does- instead of futile searches we see what our friends like!

• One message that remains constant even after hundreds see it

• The real winners of social media referrals are the products and services that are genuinely good

• Reduces redundant labor, time, and frustration

• Challenge for companies- social media is shifting the traditional business practices across all levels.

WHAT IS WORLD OF MOUTH?

SOCIAL MEDIA= PREVENTATIVE BEHAVIOR

“live like your mother is watching”

• We have to think corporately and individually about our actions

– will they put our company or out image in a negative light?

– is it worth the risk? – Your party animal should stay caged

PREVENTATIVE BEHAVIOR

SOCIAL MEDIA= BRAGGADOCIAN BEHAVIOR

• When we get in the competition of who is doing the coolest things

• We evaluate our friends and their activities and ask ourselves what are we doing with our lives?

• Challenges companies to create products that consumers take ownership of.

SOCIAL BRAGGADOCIAN BEHAVIOR

“it is really difficult for a person who is well rounded to stand out in this new world”

DEATH OF SOCIAL SCHIZOPHRENIA

• We create personas at work, in social settings, and at home

– we can be who we want to be in that situation and at that time and with those people…

– Our corporations have personas too • We can’t be multimillion dollar givers and

then be million gallon polluters • We also can’t be good at everything and

have too many personas. – Social media develops transparency that

negates this “persona” behavior – Companies also have to focus on their core

strength and their niche.

WHAT IS SOCIAL SCHIZOPHRENIA?

“being good at something is better than being good at everything”

• People’s lives are moving online- companies have to do the same

• They do not want traditional marketing • HOW do we capture your faithful following

of customers as everything moves online? 1. admit your faults and move on 2. Let fans and customers contribute to your products 3. Understand your customers of today could be your competitors of tomorrow- stay on the cutting edge and don’t let that happen! 4. Listen first, sell second!!

WINNERS AND LOSERS- IN 140 CHARACTER WORLD

• Referrals are still the most effective

form of marketing • Challenges companies to start

moving from traditional marketing to create discussions about products among users/ buyers using social media

WHAT’S NEXT FOR THE GLASS HOUSE GENERATION?

How do we stay transparent and successful?

• This book makes me want to research the effects of word of mouth to see if it should be recognized as an actual form of advertising.

– If it is recognized, how do we measure it?

• I have also learned about the importance of staying on the cutting edge and keeping your business where the customers are.

WHAT DID I LEARN?

• Everyone related to social media- which is everyone…

• If you are on one end of the communication channel, you need to know what companies are doing online

join in & check out your favorite companies!

WHO NEEDS TO KNOW?

• Qualman, E. (2011). Socialnomics: How social media transforms the way we live and do business. New Jersey: Wiley and Sons.

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