Insightful articles, opinion and commentary about mobile and web.

It’s time to listen to your customers and learn to relate to them on their level.

No prizes for guessing that 2009 is shaping up to be an ugly time for marketing and PR. Australia may technically avoid a recession, but everyone is behaving like we’re in the middle of one, with budgets being slashed and projects put on hold across nearly all industries.

There is a lot of evidence showing that this is the time to increase marketing spend, not reduce it. As the Harvard Business Review stated earlier this year:

“It is well documented that brands that increase (marketing) during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.”

OK, hands up, all those whose marketing budgets have been boosted for the coming year. Um, yes, I thought so – the reality is that the standard business reaction is to ignore the above-mentioned evidence, scream ‘Fire!’ and head for the exits when business indicators head south.

Low cost impact

Well the good news is that tough times present a great opportunity for marketers and PR executives to provide cost-effective solutions and, if overall spend is down, at least you can gain budget spend from the evil empire, aka the advertising guys.

Alan Parker who I recently interviewed in a HotHouse podcast, is a digital PR executive whose most recent Australian role was head of technology and digital for Burston-Marsteller Australia  says that:

“the rise of digital and social media bring plenty of new PR and marketing opportunities, all at a much lower cost than big TV ad campaigns.”

He says that the growing influence of the Web on business is leading more and more marketers and PR executives into the digital sphere, although he argues that, particularly in Australia, “The C-suite are still the people you need to convince” in order to win budget approval for digital projects.

A recent study among chief marketing officers (CMOs) by the Epsilon research group revealed that although 65% of CMOs acknowledged that global and local recessions would dent their budgets, digital marketing was seen as a bright spot. Social computing (word of mouth, social networking sites, viral advertising, blogging, etc.) was the most popular emerging channel, with 42% of marketing executives expressing interest in adding it to their marketing mix over the next year.

As US Web 2.0 PR expert Todd Defren writes:

“The agencies that survive the coming crapfest will be actively helping their own clients realize the benefits of socializing through the recession.”

However, Alan Parker warns that it’s not as easy as just “whacking out a press release online”. Although he acknowledges that there is still a place for the press release, the humble PR release has evolved, with the ability to add video (or even consist only of video), or a product demonstration with tags and links to more information.

In the digital arena, PR companies need to change their orientation to aim at markets, not clients, he says. “You need to match your client’s needs with what your audience is looking for.”

Before starting to talk to customers online, it’s important to “open your ears and hear what people are saying about your company,” Parker says. Some simple ways to do this are to search for mentions of your company on Technorati and setting up Google Alerts.

There is no shortcut to getting this information; it is something that will take time and continual effort, “It requires dedication, it requires effort,” according to Parker.

Once you have listened and learned, it is then time to start the conversation, through things such as corporate blogging, engaging with bloggers in your topic area and using networking devices such as Twitter and Facebook.

Untapped area

PR agencies are still hesitant about using social media tools such as blogging. Recent US and British research highlighted on the Deep Jive Interests blog, showed that while most PR executives believe blogging is effective for sharing information quickly and broadly (UK 70%, US 80%), and has a role in influencing public opinion and decision making (UK 60%, US 70%), most PR companies don’t have a blogging policy (UK 82%, US 88%), and few of them blog for their own company or clients (UK36%, US 37%).

UK-based Copywriter and blogger Matt Ambrose writes that, “Many PR firms are still nervous about jumping into blogging headfirst, preferring to wait for others to test the water and then watch to see if they sink or swim.

“PR’s methodology shares some characteristics with that of the advertising world. Their tactics for influencing mindsets have generally been a one-way, top-down approach. In a world where everybody now has the means to share their opinions and experiences with millions of online consumers this approach now seems antiquated. PR, like advertising, needs to learn how to listen to what people are saying and to be able to have their client’s voice.”

Ambrose argues that “Successful PR in the online world is about more than just generating buzz with a virtual store in Second Life. To get info-hungry consumers to listen to your client’s message you now need to trade in the currency of transparency and value. By utilising podcasts, wikis, blogs and RSS feeds, PR agencies have the means to communicate in a more open format, and in a manner which will allow their client’s voice to be heard in the online conversation.”

Todd Defren, meanwhile, points out that, ironically “the distinct lack of editorial professionalism in the blogosphere” has “forced PR agencies to increase the genuine professionalism of their outreach – indiscriminate e-mail blasts are on the wane.”

He warns that:

“Consumers are ever more resistant to marketing messages that use the old “one-to-many” approach but are often enthused about marketing programs that are useful, empowering and inclusive.” Meanwhile, “Web 2.0 technologies have made participation more fun, accessible, instantaneous, trackable.”

He says the critical factor to remember about social media is that “it is not only helping brands spread the word; it also helps the brand to shore up support among its current customers. “

Long-haul thinking

Social media is about building relationships, not jumping in and jumping out of conversations. “Don’t think campaign – think long term for social media initiatives,” Alan Parker says.

He adds that because social media is still in its infancy in Australia, there is plenty of opportunity for companies who haven’t yet climbed on the bandwagon. “We are at the point in Australia where the C-suiters are starting to recognise the importance of the online world.”

As technology develops and features such as high-definition video become more widely used in Australia, corporate social media use will really take off. Are you ready for take-off?