Despite Hoopla over Social Media, Web Searchers Stay Longer
May 1, 2011
If you want your Web site to dominate your competitors, you might want to consider that social media doesn’t enhance your odds as much as other strategies. What works best is an investment in content and search engine optimization (SEO). Ironically, the hype about social media makes this seem like an improbable proposition.
However, a new study shows you’re missing opportunities for growth if you’re too influenced by the social media buzz – investing more in social media than enhancing your Web site with frequent, strong relevant content backed by SEO strategies.
The study by Outbrain shows referrals from user-traffic deliver more results than social media. (The firm, www.outbrain.com, provides services for an impressive array of publishers including content and traffic information.)
Outbrain says users that directly visit your site and surf more of your pages constitute about 66 percent of your visitors’ data.
The firm’s study indicates social media enthusiasts will spend less time on your site – the bounce rate is higher – they visit one page and that’s it. On the other hand, surfers who visit your site based on their key word or phrase-search will visit more of your pages.
To quote from Outbrain’s study:
- While search still reigns supreme in terms of directing traffic to content pages (41% of external referrers), social is gaining share at 11%.
- Of the six content verticals examined, stories in the news, entertainment and lifestyle categories are the most likely to receive traffic from social sources.
- Traffic coming from social media sources has the highest tendency to bounce.
- Readers who go from one content site to another (i.e. USA Today to The Daily Beast) are most likely to be engaged in what they’re reading, presumably because they are already in content consumption mode.
- Facebook delivers a more diverse audience than Twitter.
My sense about the study: All traffic – social media enthusiasts and content searchers – is welcome. However, Outbrain is right. With all the hype about social media, if you have to choose between the two strategies, it might seem riskier to invest more in your content and search engine optimization. But your ROI will be stronger.
Candidly, that’s my experience, too, as business-performance consultant and publisher of this business portal. Content searchers tend to be more studious and will spend more time looking for content that interests them. The bounce rate for them is insignificant. That enhances your odds for more revenue – whether you’re marketing products or services or depend on display-advertising revenue.
It may seem riskier in the face of the social media hooplan, but focus on providing frequent, relevant content backed by SEO. The social media efforts should be secondary. If you have to make a choice, remember Web sites with current, strong relevant content earn more respect.
From the Coach’s Corner, if you want more specific tips, you might consider the myriad of business-coaching topics in Marketing/Sales.
“If you don’t make a mistake, you never know when you’re right.”
- Actor Robert Ryan (in the movie, House of Bamboo, 1955)
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For a complementary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Why Bank Woes Provide Lessons for All Companies Seeking Growth
Many banks have customer loyalty issues. It’s well known that bank fees and other behavior have been catalysts for customers to switch to credit unions in 2011 and 2012 — in big numbers.
A study also shows that banks have a credibility issue with affluent women.
Another indicator: Banks need new approaches because they are only satisfying 21 percent of their medium-sized business customers, according to marketing research by TNS in 2010.
Actually, the challenges faced by banks in trying to grow include principles that are applicable to all business sectors that want opportunities for growth.
The TNS study suggests American banks need new strategies to lay a strong, long-term foundation to attract new business customers. It was sponsored by the Commercial Banking Momentum Monitor (CBMM).
“For 70 percent of the market, multiple failures by the current lead provider on credit, pricing, operational reliability, or service would push the client to consider alternative providers,” according the TNS press statement. “When an opportunity arises, the banks most likely to be considered are those that have already established a base level of familiarity and rapport with the prospect.”
Such criteria were once assumed.
“Failure to meet these tests will immediately eliminate banks from consideration,” the press statement says. “The factors that are currently most likely to influence the final selection of a new banking partner are credit terms, pricing, the product fit, the quality of the web-based solutions, and servicing.”
The study repeatedly makes this point.
“Banks seeking to drive growth through acquisition need to understand the dynamics of the switching process in the current environment,” says TNS Vice President Glenn Staada. “This includes the triggers that lead to consideration, the evaluation process, and the potential barriers to switch. The banks that will be best positioned to attract new relationships will be those that are able to respond to unmet and emerging needs with a differentiated solution. Bankers must continuously invest in building relationships with the businesses in the community, even among those extremely satisfied with their current relationships. It is these relationships that will eventually drive consideration once an opportunity presents itself.”
The good news for such banks for the 21 percent of loyal customers is that most will stay put.
Here’s why:
- 67 percent of the loyal business customers are content.
- 53 percent of them say their banks are fulfilling their credit requirements.
- 10 percent believe the cost of switching is too high, particularly because of complex business relationships.
“Banks can aid acquisition success by developing strategies to help clients more easily transition away from an existing provider, especially around EFTs (electronic fund transfers),” suggests Mr. Staada.
The study also hints at opportunities for banking growth. However, about 20 percent of the study’s respondents say their business needs are so unique other banks couldn’t provide the same level of service. Ten percent want their banks to improve but they haven’t found a better bank.
Factors that would persuade a business to change banks:
“Approximately, 90 percent rate pricing as a critical factor in the evaluation of a new provider,“ according to the press release. “Nearly as important are factors relating to financial stability, trust, ethical operations, high-quality technological solutions, service, and credit.”
Other factors for a business to consider when changing banks:
“Four in 10 would use their knowledge of the banks operating in their area to select the banks they’d evaluate as a potential new provider,” the press release states. “One third say they must have a prior relationship with that bank, and nearly three in 10 rely on word of mouth from business colleagues, family, or friends.”
“In the initial round of evaluation, potential suitors are most often eliminated from consideration due to questions around financial instability, ethical operations, or perceived unwillingness to extend credit,” adds Staada. ”In today’s economy, these are the new minimum requirements for entry in the business and middle market segments. Bankers should have a strategy to pass the stability, ethics, and credit benchmarks prior to engaging with a new client. Failure to anticipate these questions will greatly diminish the opportunity to compete beyond these basics to communicate more fully the on the merit of its offer.”
Do you see the parallels between the banks’ challenges for growth and all companies?
My firm’s research: For 18 percent of the world’s population, price or cost is the only consideration in buying products and services.
So, for 82 percent, perceptions about value matter most, including these perceptions about a bank or any other business.
The value perceptions include:
Employees, Spokespersons – 52 percent. The key characteristics are integrity, judgment, friendliness and knowledge.
Remember, about 70 percent of your customers will buy elsewhere because they feel they’re being taken for granted. And customers normally will not tell you why they switched to your competitor.
Image of the organization – 15 percent. They are concerned about the image of your company in the community. Cause-related marketing is a big plus in forging a positive image. So is cleanliness and good organization.
Quality of Product or Service Utility – 13 percent. The customer is asking the question – “What will this do for me?”
Convenience –12 percent. Customers like easy accessibility to do business with you. That includes your Web site, telephoning you, and the convenience of patronizing your business.
Price – 8 percent. Price is important, but it’s the least concern among the five value-motivating perceptions.
Your next challenge is to align your marketing, products and services, and customer service — while being mindful of these motivating perceptions.
From the Coach’s Corner, related reading on big bank issues:
Security Precautions to Take Following Citibank’s Second Reported Online Breach
Legal War on Wall Street Chicanery Isn’t Finished
“Banks have a new image. Now you have ‘a friend,’ your friendly banker. If the banks are so friendly, how come they chain down the pens?”
-Alan King
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Diverse Age Differences at Work Mean Return to Status Quo in Attitudes – Robert Half Study
Despite the 21st century’s widespread age differences in the workplace, at least one thing hasn’t changed – many attitudes of workers are similar. For example, employees are often most-interested in company stability, according to a study by Robert Half.
Sadly, for many companies, that might also be why 40 percent of respondents are apt to shop around in seeking a new job.
“There has been considerable focus on the differences among various generations, but our research confirms many similarities,” said Max Messmer, chairman and CEO of Robert Half International. “Understanding the values shared by nearly all employees, particularly in light of changing economic conditions, can help companies enhance their recruitment and retention efforts.”
The study involves more than 1,400 people working fulltime in North America. The respondents are either college graduates or are in school. Just over 500 are hiring managers. The demographics include baby boomers, aged 46 to 64; Generation X, 32 to 45; and Generation Y, 21 to 31.
Among the three generations, the study reveals five similarities:
- Job security are preferred over working for a community-minded firm or even a shorter commute
- Salary, company stability and benefits were the most salient
- Most-prized benefits – Healthcare and dental coverage, vacation time and matching 401 (k) plans
- The recession is the main reason for those planning to work past 65
- Diversity in work experience is believed to be beneficial
Here are the generational differences:
- Following the downturn, many plan to job hunt. The breakdown includes 36 percent of Generation Ys, 30 percent of Generation Xs, and 24 percent of baby boomers.
- Among the Generation X, 38 percent plan to upgrade skills and 33 percent percent plan to stay with their employers.
- For the respondents planning to work past 65, 54 percent are baby boomers, 46 percent are Generation X, and 39 percent are Generation Y.
- 34 percent of Generation X and 27 percent of baby boomers managed to add to their retirement nest eggs since the beginning of the downturn.
- Many are concerned about differences in coworker work ethics and balancing career with their lives. That’s 54 percent of baby boomers, 45 percent of Generation X, and 35 percent of Generation Y.
“Many employees, particularly Gen Y professionals, are biding their time in their current employment situations and plan to make a move when they feel the economy is on firmer footing,” said Brett Good, a Robert Half International district president. “Now is the time for employers to take action and outline career paths within their company for strong performers. Compensation reviews also should be conducted to ensure that pay is competitive.”
Well said.
If you want, you can get a copy of the study.
From the Coach’s Corner, if you want 18 strategies for better employee relations, see Leadership Strategies to Profit from Employee Respect.
Tech Planning: What If There’s Another Downturn?
Pick any region. Most respected economists and other experts believe economic growth will be tepid, at best. Despite the hype over a so-called recovering economy, there are continuing concerns about the world’s economy.
It’s important to ask a key question: Are you ready for a possible double-dip recession?
Certainly, many global economic trends are eye-opening. Here in the U.S., job-growth and the consumers’ inability to buy are major concerns.
Moreover, public policy at all levels – federal, state and county, and city government – is hurting the nation.
At the federal level, stimulus spending that totals more than $1 trillion has been inefficient. Relatively few jobs are being created and there are constant calls for more spending. Policies are detrimental. The healthcare reforms are anything but productive. The legislation created 19 new taxes, it lacks cost-controls, and insurance premiums are mounting.
For years, state and local governments have been fiscally dysfunctional, too. They are still increasing taxes and slashing services.
Businesses are disappointed. Many lack an incentive to invest in human resources, marketing and technology.
The aggregate impact: A further deterioration of Americans’ financial and political freedoms.
So, it was not a surprise that technology-research firm Gartner recommends in a study that chief information officers should get ready for another downturn. That requires planning.
Authors of the study, “Plan for a Second Recession, Now,” wrote: “We urge these CIOs to leverage their recent experiences by preparing their enterprises should another economic downturn occur within the next 12 to 18 months.”
Gartner believes it’s important that CIOs communicate closely with senior company executives on priorities. Which IT projects for the next 18 months could be postponed or even disregarded?
My sense is that very function or project should be comprehensively studied and any spending should be approved. The budget needs to be detailed and every item needs to be justified. That’s called zero-based budgeting.
Just to cover all the bases, your department’s finances need to be constantly reviewed.
If your company is in dire financial straits and is attempting a financial turnaround, it’s also important to understand the perspectives of both the senior executive and the chief financial officer. There must be a daily review in the form of a flash report. A flash report can be designed to monitor indicators on a daily basis and to evaluate your actual performance against the turnaround plan. For more reading, see Step-by-Step Solutions for a Company Turnaround.
If a poor relationships exist between IT and the finance department, which is often the case, it’s important to understand the CFO mindset. You might want to read: Tech Trends: CFO’s the Boss, IT Departments Are Disappearing.
Good luck. Start planning and strap in the proverbial seatbelt if the roller-coaster ride proves to be harrowing.
From the Coach’s Corner, if you’re thinking about getting into business for yourself, I’d recommend reading: Eight Strategies to Consider Before Starting A Tech Business.
“Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you have, how you’re led, and how much you get it.”
-Steve Jobs
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Vital Lessons for Web Sites Seeking Profits — Study
For information and advertising, consumers apparently trust their local newspaper Web sites over any others, according to a comScore marketing study. It shows 57 percent of respondents prefer newspaper sites for trusted content – local information and ads.
Here’s another stunning statistic: The sales conversion rate was a whopping 82 percent.
In essence, the survey revealed that the advertisers’ selection of the medium in which to advertise is the most important consideration – not the creative. Forty percent “…agreed that their opinion of online advertising is influenced by the type of website on which the ad appears.”
This was especially true for reaching upscale consumers. Sixty-three percent of high-income households and 60 percent of college-educated shoppers trusted newspaper sites more than others.
True, the study was funded by the Newspaper Association of America (NAA), but the 2010 study was conducted by the authoritative comScore.
In fact, comScore reports newspaper sites were the No. 1 preference for all types of content, including classified ads.
Thirty-six percent of the 3,050 respondents said newspaper sites were trusted for ads compared to 23 percent who preferred television station Web sites, and 12 percent for portals.
No. 1 newspaper rankings also included:
- Local information – 29 percent
- Local sports – 27 percent
- Local entertainment – 26 percent
- Local classifieds – 39 percent
The criterions for ads: timeliness, credibility and relevance.
Incidentally, the results favoring newspaper sites were true for all ages. In the 18-34 demographic, newspaper sites beat television 35 percent to 22 percent. The spread was even greater between newspapers and portals, 35 percent to 11 percent.
That’s heartening news for traditional journalists who have long worried about the trends in declining newspaper readerships, especially among the young.
NAA has 2,000 member newspapers nationwide.
No surprises here, but I disagree with the findings in one regard. Any media Web site with a strong local news image will equal the clout of a newspaper site.
The study is confirmation for me as a business-performance consultant. I’ve long advised clients about two basic tenants in marketing and sales success:
- First impressions are important.
- The medium success is synonymous with the message.
In other words, news and public affairs usually attract the most civic-minded consumers with above-average net worth. But I would include radio and TV sites with newspapers in this regard.
And remember the adage, “Birds of a feather, flock together.” For Web sites, be selective to whom you sell ads. If you’re an advertiser, check the quality of the other advertisers before you buy.
From the Coach’s Corner, more suggested reading:
Best Practices to Optimize Your Brand, Manage Your Web Reputation
Tips To Get Top Results From Your Marketing Plan
Marketing: Why One Bank Fails, Another Succeeds
“Advertising is fundamentally persuasion and persuasion happens to be not a science, but an art.”
-William Bernbach
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
