BOOK REVIEW: SOCIAL MARKETING TO THE BUSINESS CUSTOMER

SOCIAL MARKETING TO THE BUSINESS CUSTOMER by Paul Gillin and Eric Schwartzman

This book is AWESOME! Actually, the word "awesome" has become so overused these days I will rephrase my assessment and call the book - “FRIGGING AWESOME”.

Over the last couple of years, I have learned a lot about social media and social marketing. I have learned how to take some of the fundamental concepts of social media and apply them to the very niche specific aspect of my foodservice beverage company. I have learned how to use social media to identify opportunities (both on the sales and manufacturing sides of the equation). I have learned how to solicit market research using social media, and enjoy the benefit of real-time feedback as a result. I have learned how we can use social networks to connect with, and therefore support, our customer base. And, I have learned how social media can be used to solicit feedback and evaluate marketing programs (again, in almost real-time).

I know there is no teacher like experience. But learning from experience takes time. Since time is the most valuable commodity there is, we look for tools to help us save time and (in terms of our education) speed up our learning curve.

This book is THAT tool for speeding up your learning process of WHY and HOW to use social media/marketing for B2B business.

If your business is on the fence about participating in social media, or if you have said something along the lines of, “our organization will fully commit to a social media program as soon as someone can show me how we make money with it…” then you NEED to read this book.

If you are in the foodservice industry (either on the manufacturing side or the distribution side) and a digital immigrant like me: someone who grew up in a world with only 3 major television channels; someone who remembers (or better yet, still has information stored on) 5 ¼” or 3 ½” disks; someone who used Lotus 1-2-3 or dBase III…this book will help you build a solid understanding of social media and its importance for our industry. More importantly, it will help you do it FAST.

I downloaded the electronic version to my iPad. It is the first book I have read on the iPad where I have highlighted (what I felt were) important passages. When you flip thru my copy, it looks like a college textbook of yesteryear. There are highlighted passages and notes “in the margins” throughout the entire book.

One of my favorite quotes comes early in the book. “Social media marketing is a way to humanize the business, to turn frailties into endearing qualities that encourage experimentation, loyalty, and forgiveness.” If you want to discuss the WHY of social media for our companies, is there a better reason than helping to humanize our businesses?

This book is literally a blueprint on how B2B businesses can get started in social media…just look at some of the chapter titles:

· Creating a Social Organization

· Creating and Enforcing Social Media Policies

· Learning by Listening

· Understanding Search

· Choosing Platforms

· Planning Social Media Campaigns

· Lead Generation

· Profiting from Communities

· Return on Investment

If you aren’t sure what some of those things are…do not worry. The authors do a fantastic job of explaining concepts in a manner that even I can understand.

The electronic version will travel with me from now on. It is a permanent fixture in my iPad library. The hardcover book will soon be taking up residence on my office bookshelf, becoming neighbors with some of my all-time favorite business tomes.

If you want answers to “WHY social media” and “HOW do we implement social media” as part of an overall marketing strategy…this book is a must read.

If you want a link to purchase the book from Amazon…click here…

(Full disclosure…I am not an affiliate of Amazon. I don’t get credit for you clicking on my link. It’s a straight link to the Amazon site and I post it because I really think you should read the book. I would also like to point out that I have not been offered anything from the authors, or publisher, to review this book. I bought it (twice) because I wanted to read it. I reviewed it because it is a great book and I believe it can help many in my industry understand social media integration.)

If you purchase and read this book as a result of my review, please let me know...not because I am keeping any sort of tally, but because I want to ask you if you got the same amount out of the book that I did.

Alas, no bonus questions on book reviews. Sorry. But be sure to brush up on your Arnold Schwarzenegger movie references for my next post.

WHAT CLINT BARTON TAUGHT ME ABOUT B2B AND SOCIAL MEDIA

Let me pose this question to the social media “experts” out there…how many times have you been told, “We are a B2B company and just don’t see the need, or benefit, from a social media program”? Well, I am about to give you some tips on how to sell me.

Yesterday, thanks to Twitter, my “understanding” of why social media is important to B2B grew significantly.

If you are a foodservice manufacturer, pay very close attention. If you’re a consultant, pay even closer attention. What I am about to reveal is not only cool, but also relevant to our industry…and for the consultants, THIS is how you sell someone like me on social media.

Like other foodservice manufacturers, we participate in food shows across the country. We participate in state restaurant association shows, like the Florida Hotel and Lodging Association show or the Texas Restaurant Association show. We also support our distributor partners by participating in their individual shows.

Yesterday, in Des Moines, Iowa, one of our distributor partners (Hawkeye Foodservice) held their seasonal show. While we try to stay on top of what shows are occurring and when, the sheer volume of shows tends to prohibit (or at least impede) that flow of knowledge. There have been instances where we have not found out about a food show until after it occurred.

Yesterday, if not for one of our standard twitter searches, we might not have known about the Hawkeye food show in Iowa.

I personally use TweetDeck because I like the layout and functionality of the application. As one of my standard Twitter searches, I keep a lookout for the term “foodservice”. Yesterday, while sifting through the tweets regarding “foodservice job postings” I came across a tweet from Michael Leaders.

Michael is the manager of sales training and development for Hawkeye Foodservice. Through his Twitter account, he was letting people know the Hawkeye food show was kicking off at 9am.

We sell Hawkeye some iced tea and beverage concentrates, so I was VERY interested in our participation at the show. I contacted my VP of Sales and asked him to check with our sales rep and broker to make sure we had a presence at the show. He contacted the sales rep and confirmed our participation at the show. We then contacted everyone we knew in the Hawkeye distribution coverage area to let them know we would be at the show, and to please stop by and say “hello”. We did not try to sell them anything. We did not offer any discounts. We invited them to come by and share a glass of iced tea.

The show finished late in the afternoon and I have not had a chance to review the post-show report to see how successful our efforts were. Hopefully I will get those numbers later today.

Because of an integrated marketing plan that does include social media and email marketing, we were able to generate a few more “touches” on our end-user client base. We attempted, on relatively short notice, to get more people to attend the show…even if they were not regular Hawkeye customers. We did not pitch the email as “hey come visit us so we can sell you more of our product”. We informed our foodservice customers that a foodservice operator was having a show…we know our customers buy more than just iced tea and beverage concentrates and might just need the services of a distributor like Hawkeye Foodservice.

My one regret is we only found out a few hours before the show. If we had more time, we could have done a much better job of marketing in that area. Michael and I are now following each other on Twitter so I will be sure to catch all his updates, ensuring I know about their food shows well in advance from now on.

How can B2B companies utilize social media into their marketing strategy, and why is it important? The “how” is easy…(to borrow a phrase from Nike) “Just Do It”.

“Why” should you do it? Ultimately the company is going to have to figure that reason out on their own. But, having a social media presence allowed us to: KNOW about a food show; ensure we were AT the food show; strengthen the relationship with our distributor; get another “touch” with our clients; and hopefully sell more products.

Today’s bonus question: How does “Clint Barton” relate to ANYTHING in my post? Can you figure it out without cheating by clicking here?

Distribution 2.0

If the sign of a successful blog posting is an open and passionate discussion about your topic, I must have written the mother of all blog posts. After posting the 3^rd installment of Foodservice Outlook 2020, my phone started ringing.

The irony of having someone call me regarding an online posting was not lost on me at all.

Don’t get me wrong. I received several emails with comments and words of congratulations as well. But the phone call was one of the most interesting.

“Why did you write that stuff about the distributors and brokers?” I was asked. “What were you thinking?”

“What do you mean?” I responded. “All I did was write about a day dream I had describing a distribution model which was efficient from a manufacturers perspective. My model doesn’t exist, and in all reality probably never will exist.”

“That’s not the point. You’re a brand and a manufacturer who needs distributors to get your product to market. Your post could potentially cost you a relationship with a distributor.”

I usually try to think of how my words will be interpreted before I hit send. However, I did not even consider the scenario I was currently being presented. I mean, my post was written a little tongue-in-cheek. I had been presented with a scenario in a conference, which as a manufacturer seemed to be at one end of the spectrum. I offered the unorthodox and contrarian perspective as a means of illustrating the normalcy of our existing distribution model.

Sure, our distribution path has some potholes. We have some issues that need to be resolved. We, as an industry, have to figure out a better communication model so manufacturer, distributor and operator are all working towards the same goal. We need to develop transparency throughout our multiple channels to build trust and foster better partnerships.

BUT…our distribution model works. Foodservice Manufacturers build products. Operators purchase food products. Consumers consume food products. And distributors, well distributors are the important piece that makes the entire system work.

We aren’t interested in reengineering the distribution model. Foodservice Beverage Manufacturers like myself only want to figure out how to sell more foodservice beverage items, communicate with our operators and consumers, and maximize our profit margins by becoming more efficient.

So, from this beverage manufacturer and brand owner to all those distributors who help us get our products to market, thank you for doing what you do. We don't have the patience, the knowledge, or the vehicles to do what you do...so please keep doing it. And if you can add a few extra cases of mine on every delivery, I would surely appreciate it.

Foodservice Outlook, 2020 (3 of 3)

This is a continuation of my earlier posts, describing my thoughts and comments about the 2010 IFMA President's Conference. This post wraps up my discussions regarding FS-2020.

I was immediately brought back to reality when I subconsciously heard Bill say, “Costs and prices always go down.”

What? Huh?

Did I hear that correctly, or was I still working on my new distribution model? Thankfully, as if he heard the panic in my thoughts, he repeated himself…”Costs and prices always go down.”

Bill, I love you, but what the heck are you talking about? My ingredient costs have gone up. My warehousing costs have gone up. My labor costs have gone up. My freight and fuel costs have gone up. My packaging costs have gone up. The only thing that has gone down in the past year is my profit margin.

I looked up to find Bill moderating a panel of industry leaders, discussing the talking points from his presentation. Apparently the panel was back to discussing buying groups, and Bill was trying to make the point that as manufacturers (or distributors) once you lower your pricing, it is hard (if not impossible) to raise it again.

First, I need to offer some constructive criticism of the panel. We were at an IFMA conference - IFMA, as in the International Foodservice Manufacturers Association. Notice the Foodservice Manufacturer's portion of the name. Bill’s panel consisted of 3 operators and a distributor discussing the potential future and shape of the foodservice industry.

Personally, I thought a key component of the foodservice industry was missing from the panel…a foodservice MANUFACTURER. It would have been great to hear the thoughts from a global food manufacturer like Kellog’s or Nestle, but really any manufacturing perspective of the potential future of our industry would have been appreciated.

Despite the lack of a manufacturer on the panel, the panel offered some insightful comments. One sentiment repeated by all the panelists was - the sales process is changing.

Let me repeat that because I think it's important...THE SALES PROCESS IS CHANGING.

Consumers are not interacting with brands in traditional fashion. They are talking about our brands in social spaces like Facebook and Twitter. They are finding foodservice operators on sites (and mobile apps) like OpenTable, Yelp!, and FourSquare.

Conversations ARE happening, and people ARE talking about our brands. The "new" sales process needs to focus on engaging those customers and participating in the conversations.

If our industry of foodservice manufacturing is going to survive (and succeed), we need to figure out how to engage with the customers. If we can figure out how to engage with the customer and operator in the same conversation, even better.

Foodservice Outlook, 2020 (2 of 3)

This is a continuation of my earlier post, describing my thoughts and comments about the IFMA 2010 President's Conference.

I left off the first post describing Bill Hale's discussion of cost controls and efficiency...as relevant to the foodservice distributor. Bill had posed the question on whether it was more or less cost effective to have more trucks on the road distributing from fewer distribution centers.

Although my first instinct when I heard the question was to check my email, Twitter and Facebook accounts…I decided to listen instead. Actually, I couldn't get a strong wi-fi signal inside the conference room, so really the decision was made for me.

It turned out that listening was the better option. Even though I didn’t hear an answer that directly addressed concerns from the manufacturers standpoint, the ensuing discussion did get me thinking about the issue from our perspective.

As a manufacturer, I would much rather ship into 6, 12 or even 20 distribution points rather than say 82 individual distributor houses. I can manage my freight costs with more certainty. I can achieve better economies of scale by shipping (and thereby producing) more products at one time. And, it is easier on my receivables and cash flow.

The problem with my "solution" occurs from the distributor level, as far as I could predict. By having fewer distribution points, distributors will be shipping over longer distances. This means relatively more trucks with higher fuel costs and considerably more logistics planning.

But, could it work?

As Bill continued to speak about FS2020, my mind began building a distribution network that worked from a manufacturer’s perspective.

First, the organization would have a much leaner employee base with an increased focus on logistics instead of management. There would be a core group of personnel at each of the distribution points whose main focus was to facilitate the inbound and outbound shipments. Orders and AR/AP could be handled at a corporate location and delivered electronically to the few distribution centers and supplier partners, again minimizing the work force, preventing duplicate efforts and increasing efficiency.

Every distributor needs a sales force, but why not outsource it?

Instead of foodservice brokers working for manufacturers, why not have them handle the sales for the distributor? I mean, brokers maintain relationships with operators anyway. I would assume the cost for a distributor to reach an operator would decrease dramatically by utilizing a broker with existing relationships. As for chain account business, manufacturers already have people focused on selling the chain accounts. Why duplicate the efforts at the distribution level?

Plus, unlike the current manufacturer/broker relationship, a distributor would not necessarily have to exclusively align themselves with particular broker. A distributor could open up the marketplace to competition, and competition should help sell more items. If you’re a broker authorized to sell for a distributor, you can sell anything in the distributor book, and, you’ll get paid on everything you sell. Sales could be tracked by broker codes, making it easy to track commissions.

From a manufacturing perspective, since our broker fees were eliminated, we would be able to offer more distributor programming monies...which, since those monies would now be spread over a smaller executive base would translate into larger profits for distributor shareholders.

Yes, my mind wandered for a few minutes, and I am positive I missed the entire focus of Bill’s point. And yes, I know my scenario requires manufacturers and distributors to develop real partnerships, working openly to financially benefit these two sides of our industry and become more efficient.

But I couldn’t help wondering…what if??

--To be continued-- (Part 3 will post on Friday, November 19th)