Digital Marketing

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Free Article

Should You Use the Value of a “Like” as a Metric?

  • Blog
  • Read Time: 3 min 

Social media strategy shouldn’t be seen as the driver of value difference between a company’s fans and nonfans. Fans are often more favorable toward a brand to start with than nonfans are — indeed, this is probably what motivated them to affiliate in the first place. As well, social media spending should not be justified by an observed difference in customer value that may not have been caused by social media spending. Instead, to understand social media marketing’s impact, companies should run randomized experiments.

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Free Article

Should You Use Net Promoter Score as a Metric?

  • Blog
  • Read Time: 5 min 

The net promoter score (NPS) has become one of the most widely used marketing metrics. Consumers answer a simple question (How likely is it that you would recommend X?) on a scale from 0 to 10. Customers who answer 9 or 10 are considered promoters; those who answer 6 or less are rated as detractors. The score is the percentage of promoters minus the percentage of detractors. One of the strongest selling points of NPS is its simplicity. But the value of NPS may depend upon whether a manager sees it as a metric or as a system.

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Free Article

Should You Use Market Share as a Metric?

  • Blog
  • Read Time: 5 min 

Market share is a hugely popular metric. But is it really useful? Companies with superior products tend to have high market share and high profitability because product superiority causes both. This means that the two metrics are correlated — but it does not necessarily mean that increasing market share will increase profits. Using market share as a metric of success simply because other companies do can be counterproductive.

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Finding the Right Role for Social Media in Innovation

Social media provides a game-changing opportunity to support new product development. But taking advantage of the opportunity requires more than just a Facebook presence with a loyal base of “friends.” To use social media for innovation, organizations need clear strategies and objectives. They also should look beyond social media used by the general public to lesser-recognized platforms, such as special user forums or expert blogs, for especially valuable user-generated feedback.

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The Metrics That Marketers Muddle

Well-defined metrics are critical to effective marketing. However, despite their widely acknowledged importance, five of the best-known marketing metrics — market share, net promoter score, the value of a “like,” customer lifetime value, and ROI — are regularly misunderstood and misused. This confusion undermines the marketing discipline’s reputation for delivering results. The authors present Do’s and Don’ts for using these metrics and flow charts with detailed advice for developing each metric.

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How Crowdfunding Influences Innovation

Crowdfunding is changing how entrepreneurs bring new products to market. It has allowed thousands of innovating entrepreneurs to raise money, build brand awareness, and join a broader conversation with large numbers of potential backers — all while still in the product development process. But crowdfunding’s potential goes beyond financing and marketing. The people who back projects can also be important sources for product feedback and ideas.

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Turning Content Viewers Into Subscribers

Content websites can more readily convert site visitors into paying customers by prompting visitors to gradually increase their social engagement with the site — using a concept the authors call the “ladder of participation.” This means thinking strategically about using site engagement to improve conversion. It also means taking an active role in encouraging users to climb the ladder of participation and move quickly up its rungs.

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Free Article

We Are Open For Business

  • Blog
  • Read Time: 1 min 

On February 23 and 24, MIT Sloan Management Review is completely dropping the site’s paygates, allowing visitors to freely explore all of our articles, reports, posts, videos, webinars, tools, and case studies. Why? We want to encourage the world to get to know all the remarkable things that MIT SMR has to offer. We work to collect here the best new ideas, research, and tools, and we want to give visitors the chance to experience all of it.

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How CEOs Can Leverage Twitter

Rather than waiting for impressions about a company to be driven by others in social media, CEOs of large companies can help shape the conversation by becoming active on Twitter. Journalists often check a CEO’s Twitter account before covering the CEO or the company, and certain types of business-related CEO tweets — including tweets about new management initiatives; strategy and performance; and new products and services — have even correlated with positive movement of company stock prices.

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When Customers Become Fans

Beijing-based smartphone maker Xiaomi Inc. has actively involved enthusiastic customers — known as “Mi Fans” — in both software and hardware development processes. Tech-savvy users test interfaces and products as volunteers, doing much of their communication on the Internet. Customer involvement in the product development life cycle has not only helped Xiaomi reduce R&D costs but also enabled the company to cultivate a sense of participation and pride among lead users.

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Setting Up Digital to Tell Stories to a Global Audience

  • Interview
  • Read Time: 14 min 

As the first Chief Digital Officer for the Metropolitan Museum of Art, Sree Sreenivasan leads the charge in managing the museum’s digital content — which means storytelling for a global audience. “My job is to tell a million-plus stories about a million-plus pieces of art to a billion-plus people,” he says. In a Q&A, Sreenivasan discusses the global vision for the Met App (for the museum’s 32 million annual onsite visitors), the museum’s use of social media, and its media lab about the future of museums.

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Using Social Media in Business Disputes

An emergent defensive strategy is being used by both upstart players facing established competitors and by newcomers (such as Tesla, Airbnb, and Uber) facing government regulators. Called “lawsourcing,” the strategy advances legal and public relations goals through social media campaigns, online petitions, and boycotts to draw attention to disputes. These tactics are often framed in moral and ethical terms, and they are being initiated by even very small players.

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Creating Online Videos That Engage Viewers

The Holy Grail of modern online marketing is video content that “goes viral.” So how does it happen? New research shows that engagement with online video content depends less on what the video shows than how the video shows it. A study of viewer reactions to online videos suggests that the key is to juxtapose content elements in incongruous combinations or to create original or exaggerated content that makes an emotional connection with the viewer — to create emotionally surprising videos.

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Customizing Social Media Marketing

There is no one-size-fits-all strategy for social media marketing. Instead, companies need to tailor campaigns to fit their products. Recent research suggests that one key question that can guide the approach is whether a company’s products are primarily useful or fun. For instance, consumers expect to encounter messages about fun products on platforms like Facebook. In contrast, they will only glance over recommendations for useful products. Because reactions differ, so too should the social sharing mechanisms used to promote these products.

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Can You Really Let Employees Loose on Social Media?

At Mitel, a $1.2 billion communications technology company, employees tweet about the company and are proactive on LinkedIn with only one rule: “Use your best judgment at all times.” Martyn Etherington, the company’s chief marketing officer and chief of staff, has no problem with that. “We have to enable the majority and not hold them back by implementing catch-all policies that are aimed at a few.”

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How Effective Is Location-Targeted Mobile Advertising?

New research shows that mobile advertising targeted to consumers based on their locations can be effective. This is particularly the case with customers who have shown a high level of interest in the type of product being shown to them. Researchers also think that some users might simply need more time to evaluate the trustworthiness of an app or offer — suggesting that marketers might see delayed responses to location targeted mobile ads.

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Free Article

Why Your Company Is Probably Measuring Social Media Wrong

If a teenage girl retweets you in Japan, will your video go viral in Brazil? Social business expert Jerry Kane argues that it might — because social media is a complex system, where small or seemingly unimportant factors can converge to produce large or unexpected effects. The challenge for managers in the social arena is to consider the unexpected instead of the linear “X means Y” thought processes. Managers should pay attention to four characteristics of social media that can affect outcomes.

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How to Win in an Omnichannel World

Retail customers now readily use both online and offline retail channels. To thrive in this new environment, retailers need to reexamine their strategies for delivering information and products. Companies that are successful at navigating the omnichannel environment take a customer perspective and view the activities of the company through two core functions: information and fulfillment. They also consider hybrid online-offline approaches, including inventory-only showrooms and “buy online, pick up in store” options.

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Free Article

Why Social Media Will Fundamentally Change Business

Of you haven’t yet jumped on the social media bandwagon, you may want to hurry up and join. Social media is not a passing fad, but a permanent, transformative technological change to how companies conduct business. Social business expert Jerry Kane explains how social media is likely to fundamentally alter the business environment in the near future.

Showing 1-20 of 77