The Case for Social Media

A Case Study in Colossal Failure and Moderate Redemption

According to Greenpeace, Nestle has been less than ethical lately. It turns out that the company known for its wholesome cookies has allegedly been using unsustainably harvested palm oil, which has been documented to lead to deforestation, greenhouse gas emissions and endangered species loss. Not a good thing to do, especially when Greenpeace is watching--and they always seem to be watching.

And in true Greenpeace form, they launched into a full-on, make-a-public-example-out-of-you assailment of Nestle in the most grassroots form possible: the Internet.

But before I go any further into the story, and the true failure and subsequent redemption of Nestle--no, I am not here to pass judgment on their supposed use of illicit palm oil--I should probably tell you how I know all of this. Because it's not so much a first-hand, I'm following Nestle in the news sort of knowledge--I'm not--but the knowledge I've gleaned from looking at the repercussions via social media, specifically Twitter.

Now, although I did talk to a good amount of local social media thought leaders from all walks of business and communications for this story--whom you will hear from shortly--and have thus become somewhat elevated in the ways of social media by osmosis, I'm no social media expert. But that doesn't mean I can't tell you how Nestle's story makes it to me, with nary a published piece to do with it.

The first thing I do when I get to work, post-griping about the travails of my fantasy baseball team, is open Twitter. For an editor, it's a way to aggregate everything I need to see and everyone I want to talk to in one cohesive place. It's not where I get my news per se, but it's certainly where I get the gist of what the news is doing, how it's breaking and developing, and what the general social media-going public's consensus about it is.

Which is what happened with Nestle. One day I know little more than that their cookies melt in your mouth and the next, I'm finding out way more about palm oil, deforestation and the fate of the orangutans than one man need know, via the simple act of watching conversations unfold on Twitter and following the links presented to me.

As I alluded to earlier, for Nestle the true failing wasn't necessarily the palm oil deforestation issue, but how they handled Greenpeace's attack and the far-reaching social media shockwaves it sent. Greenpeace, savvy in the ways of grassroots search-and-destroy, began by posting a web video campaign citing Nestle as a threat to orangutans that Nestle lobbied to have removed from YouTube. Greenpeace responded by rallying its droves of supporters to post negative comments on Nestle's Facebook fan page, which is when Nestle, ill-prepared for such an attack, blew it. They responded in a tone that was clearly frustrated and annoyed, deleted certain posts that featured altered Nestle logos, and effectively took the bait Greenpeace had dangled, making themselves look all the worse for it. Eventually, inevitably, a Nestle rep apologized for the snippy reaction saying, "This [deleting logos] was one in a series of mistakes for which I would like to apologize. And for being rude. We've stopped deleting posts, and I have stopped being rude."

And so the fiasco was destined to end with Nestle looking bad, and appeared to have ended as such, as the dust settled and the weeks passed. That is, until Nestle decided to swirl their dusty defeat once more, this time in the name of doing the right thing. The company quietly met Greenpeace's demands and in partnership with The Forest Trust, announced a "zero deforestation" policy, which will boast an initial focus on amending its palm oil purchasing practices.

As Nestle, like many companies before them, found out and your company surely will at some point, social media is not merely fodder for hormone-pumping teenagers; it is a crucial and influential tool that, when valued and used carefully, can be positively impactful for your business, and when used carelessly, can ravage it.

Don't Take My Word for It--Take Theirs

In an arena where no one is an expert yet many have opinions, it can be difficult to determine who to listen to.However, the more attention you pay to social media, the more certain people separate themselves from the pack. The following is a series of Q&As--all executed via Twitter--with ten of the more influential and disparate local thought leaders engaged in the social media conversation today. By no means are they the top ten-again, nobody is-they are merely a handful of solid sources who bring varied perspectives, backgrounds and insights to the conversation. They talk social media tools, how social media will affect business going forward, and even return on investment.

Lars Leafblad [@larsleafblad]

Lars Leafblad is principal at Minneapolis-based retained executive search firm KeyStone Search. For the past several years he has been a connector on LinkedIn, active on Facebook, and although he began skeptically, is now rather prolific on Twitter.

MB: Talk about how you've overcome your initial Twitter skepticism

LL: I couldn't envision what networking value Twitter could offer beyond what I was already experiencing with LinkedIn and Facebook. I've come to believe the real value in Twitter lies in its ability to serve as a radio buoy in the sea of information being shared by individuals, organizations and movements much different than me, much smarter than me, and much more innovative than me. And by following/listening to what these individuals/organizations/movements have to say, share or illuminate, I'm always learning and challenging the assumptions, ideas, and perspectives that I hold. Twitter is also a great tool to flatten communication structures. When you can exchange direct public messages with authors, executives and entrepreneurs, we all win.

MB: Social media can make ambassadors out of employees, and also liabilities of them, depending on the company's level of involvement. Do you agree?

LL: Social media can provide employees with the ability to serve as bridge-builders with potential clients, existing customers, advocates and detractors, and to meet those stakeholders on their own terms and in their own preferred social media habitats. I think each organization has to assess its own unique culture to answer that appropriately.

MB: Whether they are physically active in social media, do you think the C-suite needs to be present in the conversation? If so, how?

LL: Yes. The real crux is what is an appropriate strategy for the C-suite to engage. As new leaders assume C-level posts, I expect we'll see them demonstrating new qualitative aptitudes such as network fluency, which means they understand there are many within their organization who have built, manage or belong to networks of influence and their job as leaders within that organization is to harness those networks to advance that particular organization's agenda/mission. If I were CEO I would want my vice president of communication to know every employee who has 1,000-plus followers on Twitter, 500-plus connections on LinkedIn and 500-plus friends on Facebook, because those employees are my organization's connectors and I need to be connected with them to advance the whole.

I wonder if we'll see the real social media growth in the C-suite once legal/investor relations can catch up beyond the risk mitigation elements of social media strategy, and understand how social media can help them proactively address and mitigate problems, risks and governance issues that affect the organization as a whole. There's a big difference between "connectivity" and "connectedness" and I think those companies and senior executive teams who embrace the latter will be most successful in the long run with regards to their ability to innovate, engage clients and attract/retain talent. 

Gregg Litman [@GRLitman] 

Gregg Litman is a senior news and sports producer at WCCO-TV. Although he has not been involved in social media for as long as some, he is in the middle of most of the important social media conversations going on today. Litman was also part of the launch team for WCCO's newest online vehicle, The Wire, a live stream 
of news at it happens from the words of reporters as well as citizens.

MB: What are your initial impressions of social media in business?

GL: It's such a great communication tool. It allows businesses to do what they already do, but more efficiently or on a bigger scale. Still, it's just a new tool. Use it to help what you're already doing, don't just do new stuff because it involves social media.

MB: Among local media outlets, WCCO is one of the more proactive adopters of social media. How does social media affect a media business?

GL: We've always been part of the community and we've always engaged with the audience, so social media is just a logical extension of that. Social media allows us to interact more effectively and efficiently with people, both as a station and as individual journalists. We're excited about The Wire. It's another opportunity for us to connect with our audience and it makes sense to ask them for input. Most businesses spend time looking at audience or customer reaction (ratings in TV). This is just a more direct way to get feedback.

MB: What's the real value of social media?

GL: I think it's hard for most people to understand the value of social media until they've immersed themselves in it. I think SM builds on itself. The more people who are involved, the more others see success and want to jump in. That's definitely what's going on at WCCO. People make it more complex than it is, though. It's still simple communication, using different tools and channels.

Maikel van de Mortel 
[@maikelvdm]

Maikel van de Mortel is cofounder of Minneapolis-based Element Six Media, a provider of unique green branding and advertising solutions. He became involved with social media seven years ago and first tackled LinkedIn nearly four years ago, where he set up the Creative Professionals group, which has 3,600-plus members. He is also the founder of local marketing, technology and social media group Java Meet-Up 612.

MB: Where do you see social media right now?

MVdM: On the grand scale, social media is still relatively small in the world of communications. However, it's rapidly growing. Due to its rapid growth, it attracts the attention of brands and thus marketers. From a consumer perspective social media is a great tool for people locally, nationally and internationally to connect in real-time. It allows for your voice to be heard, not only as a single consumer but also as part of a group. Plus it gives people equal footing.

MB: Is social media a science?

MVdM: Marketers, brands and agencies are still trying to figure out how to best tap into social media; how it can best fit in with their current lines of communication. Unfortunately, they don't change and move as fast as the consumer. I think there are many companies that in hindsight wish they had been better prepared before getting involved with social media. Ask Nestle.

MB: Where did Nestle go wrong?

MVdM: In Nestle's case, a carefully planned attack from Greenpeace-although they will deny that-uncovered the lack of social media communications experience. The backlash on Nestle's Facebook site was massive. And much of that damage could've been prevented. The lack of communication amplified the case, which then spread like wildfire across the universe. People are flexible and can adapt easily in social media, but [many] companies require new rules of engagement. If they don't review these prior to their social media adventure, things can get quite nasty, which leaves the potential for brands to do much damage in real-time.

MB: How can companies measure return on investment when it comes to their social media efforts?

MVdM: Social media return on investment is a very touchy subject for many people. The truth is, no one has uncovered new metrics that measure the ROI of social media. I see five points of communication for brands: 1, initial investment; 2, action; 3, reaction; 4, non-financial impact; 5, financial impact (ROI). Most people only measure point four, which can be measured in many ways: clicks, tweets, posts, visits, buzz, mentions, retweets, etc. All very valid, but none can be considered ROI. ROI equals return on investment. In the corporate world investment is measured in dollars. So in other words, if company X invests $1 into a social media effort, how many dollars will it get in return? Most people/marketers only measure the non-financial because it's much easier to measure. No CEO or CFO will find this acceptable unless the final marketing or engagement objectives are set to be non-financial, which is perfectly acceptable.

MB: People always seem to 
equate social media with the Wild West-a monstrous cliché, we know-because it's such a moving target. 
Talk about that.

MVdM: The bottom line is social media is always evolving, which requires some smart thinking, honest communication and solid measurement-and the outlining of a good strategy and measurables before diving into a social media adventure. As far as the "Wild West" cliché, if you go in prepared, you should be just fine. Companies do need to recognize the size of the medium. Many companies stay away, as they are fearful. That's a big mistake. Your consumer will be talking about you, even if you're not present. So as a company you better be available to communicate with your consumers.

MB: Unknown areas can breed some charlatans early on. Is that a problem in social media?

MVdM: Ask for solid social media credentials when hiring or engaging with anyone. Those who understand the medium can show a solid and proven track record. Just because it's available and free doesn't make just anyone an expert. This medium requires solid marketing and communication skills, knowledge of finance and strategy, and a proven track record.

Mike Rynchek [@mikerynchek] 

Mike Rynchek is president of Minneapolis-based Spyder Trap Online Marketing, an online marketing strategy and execution company. At only 25, he's been involved with implementing social media strategically for clients for more than five years.

MB: How do you define social media ROI?

MR: Like any other marketing strategy, ROI in social media takes on many forms: sales, business intelligence (which leads to increased ROI), consumer insight, increased awareness (which leads to additional sales). The key is having clear objectives, solid strategy and tracking in place. Social media is better at achieving some objectives than others. Even within social media, some tactics are a better fit. It comes down to objectives.

MB: Do you believe that for a company to be successful in its social media efforts, the C-suite has to be involved?

MR: Education with the C-level is key for top-down adoption and understanding of social media. They don't have to be on Twitter to "get it." They do, however, need to know how it can and cannot be used to achieve a desired result. C-level people really enjoy social media monitoring. Understanding what people are actively saying about their company, product, competition, industry, is of great value and low risk, cost, etc.

MB: Engaging is a huge concept in social media. Is it possible to measure a return on engagement?

MR: It comes down to best practices. Social media is about engagement. Firms who decide to engage should expect people to want that engagement. [On Twitter] not following back, not responding, is like owning a store but only letting a select few in. When people expect to be able to engage and can't, that actually hurts a brand. In some cases you are better off simply not being there or choosing other forms of social media involvement. Not following back is bad; not responding, in my opinion, is even worse. This is where education on social media uses, strategy and implementation is so important. Be strategic!

MB: What do you tell a company thinking about how to employ social media?

MR: Companies need to look at social media like any other "tactic." Social media, like any other business medium, needs planning, tracking and education. Understand what you want out of it and choose the strategy with the right mix of tactics to accomplish your objectives. 

Jennifer Kane [@JenKaneCo] 

Jennifer Kane is principal of Minneapolis-based Kane Consulting, a marketing and public relations firm specializing in integrating social media into communication processes. Although they've been consulting since 2001, for the past two and a half years Kane Consulting has worked "intensively, extensively and exclusively" at incorporating social media into the marketing and public relations mix.

MB: What does social media consist of?

JK: Social media consists of all the channels we have online that allow us to engage in conversations, so I consider blogs, since their comments open doors for conversation, to be "social media" too. It's beneficial because these conversations are the foundation of both business-to-business and business-to-consumer relationships.

MB: Is social media just controlled chaos?

JK: I think it's more of a gigantic and well-architected playground. While it may seem chaotic, there are definite habits, behaviors and engagement patterns; you just have to know what you're looking for and develop new heuristics to understand and predict them.

MB: Are people split on the subject of social media return on investment?

JK: We're always studying social media monitoring trends and developments, and are big believers that this stuff can-and should-be measured. But we also recognize that conversation analysis is highly subjective. You need a human to participate in the process. We've yet to run a report that shows total accurate return on investment. So it's important and it's possible, but you need to work hard if you want it done right.

MB: Where does the C-suite come into play?

JK: C-suite involvement is going to look different in every company, according to their needs, their challenges and the inherent strengths or weaknesses those professionals have in the space. No two recommendations I've made to clients have been the same. It's tricky, but when you call it right, putting the right C-suite person in the social media pipeline can really make some magic happen for a company.

MB: How do you introduce social media to clients that have been slow to adopt?

JK: On some level, I use analogies and metaphors a lot when I'm working with clients. They need to get the gist of what's going on: brand messages are being marketed to customers here, just like any other marketing strategy. The specifics of how/when can be overwhelming. The one thing you must ensure, though, is that the C-suite realizes that they can never fully control this medium. If that's the goal then you're playing on the wrong playground. Social media engagement can't be scripted like a TV commercial. Social media has to be integrated with your other marketing efforts to work. So, yeah, no champions at the top? Probably not going to have much impact. 

 Arik C. Hanson [@arikhanson]

Arik Hanson is principal of ACH Communications, Inc., which helps companies devise creative digital public relations strategies to help achieve their business goals. He started blogging in 2008 "as a way to learn more about the tools/process" in the form of a family blog, but quickly realized he needed a creative outlet for his professional thoughts and opinions; thus his blog Communications Conversations was born.

MB: In what context is social media important to business?

AH: I'm still a huge believer of organizations using social tools as a way to open up two-way conversations with customers and key stakeholders. I think the big opportunity going forward is if/how organizations use social tools to transform their cultures as a way to grow business, improve transparency and customer service, and enhance the overall work environment. There is huge potential there in 2010 and beyond.

MB: Talk about the role of the C-suite in social media, now and in the future.

AH: C-suite support is critical to enterprise adoption of the "social culture" online. But I've got plenty of examples of momentum bubbling up from the front lines or middle management. So it's not an absolute, but C-suite support certainly makes the potential for success much more attainable.

MB: Does the C-suite have to be directly involved for social media to be successful in a company?

AH: In my mind, support is more important than the C-suite actually being involved. The key is finding those who have a passion for social media and getting them involved. Sure, it'd be great if the CEO could tweet or blog, but in most cases they simply don't have time. So you either need to find creative solutions to solving the time issue-they do exist-or you need to identify alternative core storytellers. Quite often, those storytellers exist outside the C-suite anyway. But you do need senior management's support. That is crucial.

MB: How does social media become more prominent going forward?

AH: Isn't it already prominent? Four hundred million-plus users now on Facebook. Twelve billion tweets to date. Blogs becoming more commonplace every day. Heck, even Conan [O'Brien] mentioned Twitter on a nightly basis on the Tonight Show. That aside, I don't think social media needs to be ubiquitous to be successful from a marketing/PR standpoint. It's just another tool in your toolbox. In the same way that you wouldn't reach your entire audience through radio or billboards, you won't reach your entire audience via social media. But, again, I see these tools as a great opportunity for brands to engage customers/stakeholder in the complete brand experience. I have one client for which SM is an effective customer service tool, but it's definitely not the only customer service tool. They still use the phone. They still use email. It just complements what they're already doing, and reaching customers where they live. 

Beth LaBreche
[@bethlabreche] 

Beth LaBreche is the CEO of Minneapolis-based LaBreche, a full-service agency that also provides strategic communication counsel and crisis communication management to an array of global clients. Although LaBreche has been involved in social media for two years and has successfully navigated social media strategy and execution for clients "as it pertains to campaigns" they are already working on to drive business, she is slightly less crazy about social media tools than most.

MB: You've been vocal about not being smitten with social media. Explain.

BL: I don't agree with social media for social media's sake. First, you need the right opportunity or challenge, then research, then the message and then engagement. Just using the tools is not social media.

MB: Your client roster includes some large corporations. How receptive are they to social media?

BL: It takes a lot to turn a big ship. They want to do more risk-reward diligence, overall corporate philosophy and guidelines. Large companies haven't decided who owns social media internally, so they have exploratory teams and committees. Is it in marketing, in public relations, or in the digital advertising department? Also, you don't have dedicated budgets and teams yet. All this makes it harder and take longer to make social media decisions. Internal social media champions love the ideas, then they are constrained/slowed by all that I have just mentioned. Then you couple that with feeling behind.

MB: Oftentimes it seems like it takes a crisis for big companies to finally pay proper attention to social media. Talk about that.

BL: They really move quickly when negative issues start appearing online. You're right, but it jump-starts their social media plans because they don't want to be caught off-guard again.

MB: So how do we bring more people from outside of the social media conversation in?

BL: Be intentional about inviting clients and prospects and interested parties along to social media get-togethers that are already happening. Maybe that's too simple-but it starts somewhere. Stop "training," start being more inclusive to extend the circle. 

Jared Roy [@jaredroy]

Jared Roy is president of New Brighton-based Risdall Integration Group, a company of Risdall Marketing Group. Roy is one of the few who can lay legitimate claim to having worked in the social media and interactive space since 1995, when he was in graduate school at the University of Colorado. At Risdall Integration group, Roy is in charge of integrating social media strategies throughout the agency as well as for new business development. He also manages interactive projects.

MB: You've seen social media's progression. 
What has it become?

JR: My fondest memory of the web was when it was small and you could have actual conversations. For business it has turned marketing on its head. Interruption marketing is dead and it's now conversational marketing. Businesses now have the opportunity to have "real" conversations with their target audiences, and customers expect it. Businesses should be listening and when someone "raises their hand" in social media, you better be there. I expect businesses to jump into my conversations when appropriate.

MB: You often talk about social media being a collection of tools. Which is your favorite?

JR: I'm social media tool agnostic. You have to communicate to people where they want to be communicated to. There is no silver bullet in social media or a tool that works for every business. You need to map the conversations of your target audience and develop a dialog and strategy where those conversations are. Everything you do in social media needs to track to ROI and your objectives, whether that is sales tracked through analytics, awareness, share of voice, sentiment, etc. It can be a moving target, but you need to have specific objectives you are looking to hit. Are your traditional marketing objectives moving?

MB: How should a company properly implement social media strategy?

JR: The first step is to listen and put together your strategy. Just because you have followers, it doesn't mean you are engaging. Most social media conversations should be one-to-one 1 so you won't see all of it. A lot of companies are still in their planning phases and not ready to engage. Once you start engaging you need the infrastructure to support it.

MB: How should the C-suite engage in social media?

JR: It depends on the C-suiter. Some do, some don't. All should at least know what it is and how it can and will affect their business. What I have shown upper management and marketing directors is missed opportunities and mentions of their brands. That is a wake-up call to them and it gets them to understand the importance of it. 

Chris Lower [@mrcrhistopherl] 

Chris Lower is co-owner of Maple Grove-based Sterling Cross Communications, which specializes in public relations, social media, marketing and web design. Their goal is to find practical applications for "impractical" tools to drive results for clients. Lower's social media roots date back to 1996 when he was dealing with online reputation management for Toys-R-Us, after the launch of toysrussucks.com.

MB: What are your initial impressions of social media?

CL: If you think of the phone or mail as one-to-one communication, and email and broadcast platforms as one-to-many, then social media has brought us into the many-to-many format. Social media, then, is so much more than public relations or marketing; it is research, training, recruiting, hiring, education, customer service, etc.

MB: The world of social media seems so vast, but in the grand scheme of business, it's quite small. How will it grow?

CL: While social media is a growing audience, we can't neglect the audience that has not migrated there yet. Why miss out on a chance to communicate with your audience? Which is why integrated communications over multiple platforms still work best. You might think that a company like Cargill would be big enough that they would be all over new communication tools, yet they deal with farmers and growers in parts of the world without phones.

MB: What's the role of the C-suite in social media?

CL: The C-suite only needs to understand the business value of SM, not the nuances. That isn't their focus or function. The C-suite will always judge on results as per usual. You have to understand the tools to integrate them, so to that end there has to be understanding. Once you get past the silly names and shiny-object factor, these are great tools with the benefit that we can track the conversations better to demonstrate better return on investment.

Andrew Eklund [@aeklund]

Andrew Eklund is the founder and CEO of Minneapolis-based Ciceron, a firm specializing in social media, organizational change and digital marketing strategy. He has been involved in social media since 1993, when he founded an America Online community for professional graphic artists.

MB: What exactly is social media?

AE: Social media is the ecosystem in which no one and everyone "owns" the media, can create and amplify stories, and seek truth through collaboration. Social media is not a series of tools. Tools enable social connections, empower people to have a voice and filter conversations.

MB: Talk about engaging the C-suite in the social media conversation.

AE: For a variety of reasons, the C-suite is often the least connected digitally. They got to where to they are the old-fashioned way. Social media also often comes off as the "have-nots" gunning for the "haves." So leaders are often threatened by the tone of social media. Trust in leaders-government to business-is at an all-time low as well, so there's a skeptical eye towards social media. And yet, it's a two-way street: Everyone within companies is looking for direction, rules of engagement and defined boundaries. Everyone knows that social media is disrupting classic relationships: sales-to-customer, customer service-to-customer, employee-to-leadership. When leaders don't articulate how social media is strategically affecting a company and its marketplace, there's mass yet quiet nervousness. I believe that nervousness is beginning to spread to customers and analysts as well. It affects the basic question of "are you competitive?" In the near future, businesses that "don't get it" won't get how their customers buy from them and will be pushed out of consideration.

MB: How do you define ROI in social media?

AE: Return on investment from social media is based on a business' ability to more deftly communicate using more efficient resources, tying to high-performance relationships. ROI is also achieved by listening to social media for incremental product design and development improvements-real-world intelligence. ROI is achieved by being able to solve service issues in a public forum rather than only one-to-one. Finally, ROI is achieved as buyers who have been motivated to purchase through recommendations of others enter lower in the funnel. Social media can have the highest ROI across all of marketing: zero media costs, most sharable, low-funnel activities. Of course, a business that doesn't invest well in building social media relationships and has low engagement from the wrong people won't have ROI. Businesses that don't leverage their people with higher levels of participation or only centralize through marketing lose the social media reach. Botching social media can be a significant brand snafu.

MB: What's the real value in social media within a company?

AE: In only a few cases do we have relationships with brands-mostly with people. Why not leverage them? Most leaders vastly underestimated the current savviness of their employees. Those four hundred million-plus Facebookers came from somewhere. Social media is not a trend or a fad, but a permanent state of business and customer relationships.

 Social Media: A Primer

The Social Media Toolbox

Four of the more prominent tools of the trade, in their own words.

Twitter: Twitter is a real-time information network powered by people all around the world that lets you share and discover what's happening now.

(For business specifically): Twitter is a simple tool that helps connect businesses more meaningfully with the right audience at the right time. Source: twitter.com

Facebook: Facebook's mission is to give people the power to share and make the world more open and connected. Millions of people use Facebook every day to keep up with friends, upload an unlimited number of photos, share links and videos, and learn more about the people they meet. Source: facebook.com

LinkedIn: LinkedIn exists to help you make better use of your professional network and help the people you trust in return. Our mission is to connect the world's professionals to make them more productive and successful. We believe that in a global connected economy, your success as a professional and your competitiveness as a company depends upon faster access to insight and resources you can trust. Source: linkedin.com

YouTube: Founded in February 2005, YouTube is the world's most popular online video community, allowing millions of people to discover, watch and share originally created videos. YouTube provides a forum for people to connect, inform, and inspire others across the globe and acts as a distribution platform for original content creators and advertisers large and small. 
Source: youtube.com