ROI of Social Media

A recent bug bear of mine is how we can articulate ROI of Social Media. In a nutshell, to do so you have to bring it back to your business objectives.

If one thinks about a brand in the context that a brand is essentially a nest of perceptions, you’d think differently about the ROI of social media. One person’s view of a brand is not exactly the same as that of another. We build those perceptions by gathering messages about the brand and forming our own perceptions.

As guardians of the brand, marketeers and PR practitioners are charged with proliferating those messages so that the general public receives a balanced view of the organisation and we shape peoples perceptions through what we communicate.

An organisation that is interested in managing its brand’s reputation and communicating with its stakeholders would be foolish not to do so through any means that are available to them. Furthermore, they should package those core messages (through video, podcasts, editorial, images) about the brand in a manner in which their stakeholders, advocates and influencers can easily share those messages, so as to capitalise on building that nest of perceptions.

After all, especially in a crisis, and particularly in the travel industry, digital communications channels are where we are seeing people proliferate their sentiments about a brand.

Social Media is on the cusp in Singapore

Recently I have been visiting several prominent organisations in Singapore who are at various stages of online engagement with their fans or customers. I’ve been testing them for feedback on a business approach for PR led social media, in terms of driving conversations, creating online content, running their online newsrooms, among other practice streams.

What I’m finding is that these organisations are on the cusp of something big and if agencies don’t get their act together now, it might all just fade away.

What I mean is, the organisations have set up the conversation with their fans, but they are struggling to continue it, or even engage. Those that have rich content sources, like Wildlife Reserves Singapore, have such high levels of engagement that their fans are asking them on Facebook for jobs. But those that aren’t engaging are failing to realise that by using social media, they have in fact become publishers. There is no job description within their organisation for someone to create content. The closest people that come to it are those in PR. But those in PR only seem to know how to pitch stories to journalists and not how to package content in a manner that people want to share.

The pitfall is this. Upper management wants to know that the money they are spending is having a return on investment. They want to see that the result is incremental sales. It seems that no one is measuring ROI from social media or offering tools that can show it. No agency has the guts to say, look at your bottom line, the number of line items on your invoice, the number of customers walking through your store to see the impact. They say that the only way you can measure it is through the number of hits, the frequency of conversation and the tone of voice. However, just like this was the bane of advertising, you have to show bottom line impact in order to continue the spend.

Why is Singapore so far behind the rest of the world in PR led Social Media?

For one thing, traditional media still has a strangle hold on the market. The biggest spenders in PR are the government agencies, and they want to see their articles in the Tier One newspapers, because the ministers read them and can see that they are doing their jobs. Largely, the government has struggled with engagement through social media, so the prevalence lies in traditional media.

Marketers have taught organisations that Social Media should rest in Marketing. But what both the organisations are learning, as well as the marketers, is that they can set up, but they can’t continue the conversation. PR is used to the two way conversation, but they don’t have the marketing experience of packaging information into podcasts, videos or even editorial. So finally, we need the hybrid PR person - someone with a marketing, better still, branding background.

Why do I think it might fade away? If organisations fail to show the ROI, and soon, the budgets will be cut. However, I think that is unlikely to occur. The onus is on digital and marketing agencies to marry with PR and create a solution that involves conversation. Watch out for new partnerships and acquisitions over the coming year to occur, because as early as this month, substantial tenders are being drafted to call on agencies to deliver PR led social media management solutions.

Social Media PR

I’ve been talking for about 4 or even 5 years now about Social Media PR.

One of the first people I ever talked about it to was a guy called Andrew Peters. He was one of the first prolific bloggers in Singapore who discussed the subject, as well as social media evangelism, ad nauseum through his blog APLink. We strongly believed that in a short period of time, how you reach customers, communicate with customers would change profoundly. At the beginning of 2011, we see the reality of that.

People engaged in the disciplines of advertising and marketing are beginning to understand that branding through social media is more complex than they originally thought. To get conversions, its not just about the number of hits or eyeballs that see your message and that likely a percentage of those people will buy your products (as it was with TV advertising), its actually about conducting a relationship with your customers in order to drive conversions.

To have a relationship with your customers, your company actually has to have a voice. The tone and frequency of your voice, as well as what you have to say matters in social media.

We used to say “if a customer complains, that means that they actually care. Else they’ll just walk away and never buy your product again.” For the first time in history, companies can have a two way conversation with clients that isn’t by snail mail, feedback forms that never are responded to directly. Instead, the conversation is immediate, real, and often emotional. Marketers don’t know how to deal with that. They are used to a one way conversation. That is them telling us how and why we would like a particular product or service.

So in this age of social media marketing, the two way conversation is becoming critical to a company for conversions. PR practitioners have always been those that have engaged in the two way conversation between a company and its publics. But PR practitioners have been really slow to move into social media. But they are needed more than ever and marketers are finally starting to concede that they can’t maintain a relationship with the company’s publics, and that the PR domain is the best place to manage that conversation.

But that requires a new kind of PR person too. One that truly understands branding and brand positioning. Not only that, they have to be able to write editorial. It is no longer sufficient that the practice of PR communicates with its public’s by pitching to media. Watch for new PR buzz words this year like succinct pitching (eg. in 140 characters on Twitter), exclusive content (for specific distribution channels, news or wires), driving conversations (direct communication with customers).

There aren’t many PR companies geared to be in this space. You have to be brave, nimble and prolific to succeed in this space. The big companies are observing it, advising on it, but frankly they can’t do it.

Why? Because a large part of engaging with your customers is going to be identifying your stakeholders, advocates and influencers. You’ll then have to package your core messages through editorial, images, podcasts, as well as video in a way in which they can re-populate your content so that they spread your core messages through their sphere of influence. This will have to happen hand in hand with the marketing companies. PR companies carving their path into the future are actively, or beginning to actively generate their income through content creation.

Articulating what the new PR model should be has proven difficult. Everyone understands the bits of it but not many are delivering a complete solution. Not many can even tell you in a comprehensive way what it should be so that you can tell your senior management team what you need and why you need to be in charge of it.

We are aiming to change that. If you are curious, get in touch so that we can demonstrate our ideas as to the business approach your organisation should take towards Social Media PR.

More evidence of the Experience Economy

In October I went to a lecture by B. Joseph Pine II and I met him at a dinner reception the night before. He authored a book on, lectures and speaks on what he describes as the Experience Economy.

Random things are coming together for me now that are illustrating just how far trade is going to create an experience. Some things I see influencing the experience economy are:

1. The growing influence of women. The New Rise of Women, a lecture by Hanna Rosin has some wonderful insights into why women are succeeding more than men are today. It’s my belief (drawing back on the cave man theory) that women are simply better equipped to manage and deal with the experience economy. I find it fascinating that men got us here. And it wasn’t the HeMan. It was the nerd.

2. What we choose to spend our money on will relate to material things but come packaged as an experience. For example the ‘Buy One, Give One Away’ business model adopted by TOMS shoes. Ethical clothing is another, where clothes are either recycled or made from sustainable materials.

3. Geographic checkin’s. This year I’ve been addicted to Foursquare, which essentially is a mobile app that is executed as a game but holds promise for so much more because it tells me where my friends are and what they are doing and I’ve met up with people in similar proximity whom I otherwise would never have known that they were near. Products such as UnSocial set to revolutionise meeting business prospects by using a synthesis of LinkedIn and Foursquare technology. Now two new products, Shopkick and Geoloqi (launching in January), set the bar even higher. Shopkick has automatic check in’s feature that triggers when you enter a retail  space and offers you tailored deals and/or rewards. Geoloqi intrigues me because it is a so-called hyper customisable app that sets off automatic reminders and notifications as it automatically checks you into a location. eg. a shopping list when you enter a supermarket. Given my experience with Foursquare and the fact that it sometimes has you in a different district to the one you are actually standing in, I can also see whilst how incredibly cool the app is, it is only as good as the GPS ability to locate you.

Its Food for Thought. Happy New Year!

Using social media in a crisis

Spanish airlines are using social media to communicate in a crisis. Similar to the Icelandic volcanic catastrophe which saw airlines turn to social media to quickly reach the masses of travellers affected, Spain is leveraging the use of social media in its current crisis with air traffic controllers, who are on strike, and have crippled the travel plans of more than 4m Spaniards this weekend.

For a detailed review, please visit the AllPlane blog.

The aromas and flavours of Cuba are now available in Singapore

A rare retail experience, The Connoisseur Emporium will open on 3rd of December 2010 at the Marina Bay Link Mall. Like all good things, it comes in a small package, but packed with the flavors and aromas of Cuba. You can find the Emporium at:

The Connoisseur Emporium
8A Marina Boulevard
#B2-66 Marina Bay Link Mall
Singapore 018984

The first of its kind, The Connoisseur Emporium carries a range of Cuban coffee, rum and beer, along with a wide variety of other Cuban products. In addition, it carries an exclusive range of single cask, single malt whiskies.

Cuba has produced fine Arabica coffee for over two centuries. It is organically grown and cultivated, without the use of chemicals in the Sierra Maestra Mountains. Cuban coffee is renowned for its superior quality. The most popular brand of coffee in Cuba, Cubita, which features strong earthy tones, with a hint of smokiness and a caramel finish, along with Serrano, an elegant, smooth and well balanced coffee with some hints of fruitiness, are stocked at The Connoisseur Emporium.

One of the world’s most popular cocktails, the Mojito, is from Cuba. It, along with the Cuba Libre is made of Cuban rum, such as Havana Club. The Connoisseur Emporium will retail a coveted brand of Cuban rum, Edmundo Dantes, a ‘must’ for serious rum collectors. Produced in a limited quantity of 3000 bottles per year, the line is produced only every so often, following the tradition of the great rums of yesteryear. Full bodied and of outstanding balance, the flavour reminisces of fine vanilla, exotic spices, lemon and orange peel. On your palate dance flavours of coffee, sweet tobacco, Oakwood vanilla with hints of dried fruits.

The Connoisseur Emporium stocks two Cuban beers, Cristal Beer, and Bucanero Fuerte. Cristal Beer, which is brewed with the highest quality malt and crystal clear Cuban water, has a beautiful pale golden hue and a light hop taste that refreshes and revitalizes. Bucanero Fuerte gets its name from old Caribbean Sea pirate legends. Strong and full-flavored, Bucanero Fuerte is made from natural and fresh ingredients, with superior malt and is blended with just a touch of Cuba’s finest sugars.

The Connoisseur Emporium also specializes in selling exceptional single cask, single malt whiskies, acquired from distilleries all across Scotland. The cask is selected on the basis of its outstanding flavor and is not blended with any other malt. Each bottle is uniquely numbered, according to the number of its cask from the distillery and the bottle number taken from the cask. Attend our opening to sample some of these rare whiskies.

A Rare Retail Experience for Scotch Whisky Lovers

The Connoisseur Emporium is a response to Singapore’s refined taste and growing appetite for single malt Scotches.

A rare retail experience, The Connoisseur Emporium, will open on 1 December 2010 at the Marina Bay Link Mall. Like all good things, it comes in a small package, but packed with the flavors of Scotland and the aromas of Cuba. The Connoisseur Emporium is a response to Singapore’s discerning palette, which is becoming more refined.

Singapore, the fifth largest market worldwide for Scotch whiskies, with revenues of SG$58m in 2009, has a growing appreciation for single malt Scotch whiskies. Positioned in the heart of the business district, and with easy access to the hotels surrounding Marina Bay, the Connoisseur Emporium will appeal to visitors from around the region, and locals alike.

“The Connoisseur Emporium will carry a collection of single malt Scotch whiskies from a range of casks that have been individually selected for their unique flavor, and acquired from distilleries throughout Scotland, then bottled in Scotland, staying true to its country of origin,” said Wishnu Bintang, Regional General Manager of The Pacific Cigar Company (Singapore), the creators of this exclusive retail experience for connoisseurs and aficionados.

The Connoisseur Emporium specializes in selling exceptional whiskies, acquired from distilleries all across Scotland. If a person is familiar with a particular brand or distillery, they can name the brand, and The Connoisseur Emporium will offer them a bottle from a personally selected cask from that distillery. The cask is selected on the basis of its outstanding flavor and is not blended with any other malt. Each cask has its own exceptional flavor and once the cask has been fully bottled, that particular whisky will no longer be available. Each bottle is uniquely numbered, according to the number of its cask from the distillery and the bottle number taken from the cask. When the cask runs dry, that particular whisky will no longer be available. Hence the rare nature of each bottle of the selected single malt Scotch whisky.

Private labeling of the bottles, for example for corporations who may wish to gift them, is possible through The Connoisseur Emporium. The label, which could carry the company’s name or logo, will also denote the origin of the distillery and the region from where it is distilled.

Situated at 8A Marina Boulevard, #B2-66 Marina Bay Link Mall in Singapore, The Connoisseur Emporium is positioned along an underground pedestrian network, a thoroughfare for shoppers and pedestrians and directly connected to Downtown MRT station (Downtown Line), Office Towers 1 & 2, One Raffles Quay and The Sail, as well as to Raffles Place MRT Station. The store expects to attract an elite range of office workers, tourists and residents from the central business district area.

Mad about Whisky (not Whiskey)

1.    The Singapore market for bottled malt Scotch whisky is the 5th largest in the world, with revenues of SG$58m (£28m), behind the USA (£490m), France (£80m), Taiwan (£54m) and Germany (£35m).

2.    Emerging markets, such as China rose to be worth 80 million pounds in 2009 from a mere 1 million pounds in 2000 in an industry and is closely followed by India and Brazil.

3.    Scotland exports 90 percent of its whisky production, which is worth an annual £3.13 billion to the Scottish economy.

4.    Single malts only account for just over 6 percent of 2009’s 94.4 million 12-bottle case scotch market by volume, but the malt industry has grown volumes by 23 percent in the 2005-2009 five-year period compared to 10 percent for the whole industry.

5.    Each year, a cask loses 3% of its volume. Sometimes an old cask may only have 25% of its volume remaining, and this is commonly known in Scotland as “The Angels Share”.

6.    A cask typically yields some 40 bottles.

7.    To be called Scotch Whisky, the newly made spirit must age in an oak cask for a minimum of 3 years.

8.    The age of the whisky refers to the youngest whisky in the bottle, not its average age.

9.    It is a misconception that the age of the Scotch whisky determines its quality. In fact, the cask in which the whisky is aged determines its colour and flavor. The age of the whisky determines its taste and the occasion it is most suitable for, but it is not always true that an older whisky is inherently ‘better’ than a younger one. A younger malt matured in a fantastic cask could be better in taste than an older malt matured in poor casks.

10.    It is also not a hard and fast rule that the older the whisky, the darker the colour. The colour is also based on the cask in which it is aged. For example,
a.    A malt aged in a sherry cask will be characterized by a dark amber colour and a spicy finish
b.    Malt aged in a burbon cask will be lighter in colour and have a vanilla finish

11.    Scotland contains six whisky producing regions, all producing their own styles of whisky. The three major regions are:
a.    Speyside: delicate, softer malts like Glenfarclas
b.    The Highlands: characterized by sweet, dry and floral flavours such as those in Dalmore and Glenglassaugh
c.    Islay: peat heavy, smoky whiskies such as Ardbeg, Laphriog, Lagavullin and Caol ila

12.    Whisky flavours are evolving and distilleries are experimenting with new methods, such as ‘finishing’ in wine casks, which give different flavours to the whisky.

13.    In Scotland, ‘Glen’ means ‘valley’.

Illka adds The Pacific Cigar Company to portfolio of clients

In November I commenced working with The Pacific Cigar Company.

They are launching a new, groovy, gorgeous website for The Connoisseur Divan, a place I adore that’s tucked away, private and smells oh so deliciously of Cuban cigars and fragrant scotches. Come along on Sunday afternoon/evenings, if you are a musician or singer and you like to jam. It is a lovely relaxed time.

I’ll be assisting them to launch The Connoisseur Emporium, a scotch and cigar shop at the new Marina Bay Finance Centre at the end of this month.

If you love scotch and cigars, let me know… I’ll invite you to the opening email me at (remove spaces) pr @ illkagobius.com

Singapore Experience Awards - WIT 2009 Wins!

Last Wednesday and Thursday I had the pleasure of attending the judges dinner, followed in the morning by a Forum at which Joe Pine spoke about creating experiences. (See what he has to say on TED.com)

These events were followed by the main event itself, the announcement of the winners of the Singapore Experience Awards. And we won! We being Web In Travel 2009, who won Trade Conference of the Year. With the 2010 edition just executed the week before, it’s easy to get confused about the win. Anyway, it really is an outstanding conference, community and truly shows you how you can turn a conference into a world wide movement. 400 people attended, from over 20 countries. Check out Web In Travel to learn more. Or read the press release. My role in it was to manage the PR and marketing efforts, which included podcast interviews of keynote speakers for example.

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