PR Week recently asked a small group of marketers and public relations practitioners if brands can interact on social networks without appearing overly intrusive. Lots of good responses in the article, definitely worth reading.

I was included in the mix and my response that made it into PR Week was edited slightly. Below is my unedited response.

QUESTION:
Can brands interact on social networks without appearing overly intrusive?

MY ANSWER:
Listen. Learn. Respond. That’s the best recipe for a brand to participate in conversations happening online without being viewed as an uninvited guest.

Listening is easy because the conversation is already happening online. Search any social networking site and you’ll see first-hand who is talking about your brand as well as the tone of their comments. Search Twitter and you’ll see people talking about established brands like Whole Foods Market and emerging brands like Paciugo Gelato. If a brand has any charisma, someone somewhere is talking about it.

Learning is more difficult. If a brand lacks confidence in its products/services, then it will not want to listen to negative feedback from customers. Brands need to realize that inside any negative comment is a kernel of truth. Instead of ignoring the negative comment, a brand needs to learn from it. On Twitter, Whole Foods learns everyday which stores are delivering great customer service and which stores aren’t. Paciugo learns which gelato flavors are connecting with customers and which ones aren’t. Social networking sites offer brands an invaluable opportunity to learn from a real-time feedback channel.

Responding is a requirement for brands to be viewed as an invited guest on social networking sites. Just like in the offline real world, customers want their opinions to be heard online. By directly responding to customer comments through blog comments and tweets, brands can foster deeper relationships with customers. Almost all of Whole Foods tweets on Twitter are responses to something others have said. Because Whole Foods spends more of its time responding to others and not marketing at others on Twitter, they have earned over 1-million followers.

By joining the online conversation through listening, learning, and responding, brands can use social media as another channel to provide customer service. Social networking sites offer brands an intimately public way to turn detractors into supporters and supporters into evangelists.

BACKSTORY
This fall, the Federal Trade Commission (FTC) will release updated guidelines on endorsements used in advertising and marketing. Current guidelines were last updated long before the Internet became an irreplaceable communication/networking channel and before marketers understood the irrefutable power of word-of-mouth marketing.

The FTC works to protect consumers from being influenced by unethical, untruthful, and unscrupulous business practices. Updated guidelines will address the need for endorsers, reviewers, and businesses to be 100% transparent and disclose when material compensation (in-kind gifts, special access privileges) and outright compensation (cash) changes hands.

On September 14, 2009, WOMMA hosted a webinar on ETHICS & ENDORSEMENTS: What is Adequate Disclosure. The diverse panel included marketers, entrepreneurs, a professor, a marketing analyst, and a lawyer.

TAKEAWAYS
The resounding sentiment was marketers and bloggers need to design word-of-mouth marketing programs to state early (and often) when material compensation changes hands.

It is a non-negotiable … businesses must solve for being obvious and upfront when a brand offers in-kind gifts, special access privileges, and cash as part of a marketing program designed to spark word-of-mouth.

Solutions discussed by the panelists centered around being clear and conspicuous when disclosing material relationships between a brand and a consumer. Practical implications talked about on the webinar included: “disclosure badges” on websites, prominently placed “terms of engagement” practices, specially designated “product review” blogs, and uniquely tagging of tweets (such as [#ad]).

WATCH. LISTEN. LEARN.
You can watch, listen, and learn more by watching this highly edited version of the webinar. This 11-minute version shares key takeaways spoken by the panelists.

LEARN MORE. DO MORE.
The complete 60-minute webinar can be accessed here: http://bit.ly/DisclosureWebinar

You are invited to dig deeper into this important matter by reading and contributing to WOMMA’s Living Ethics Blog.

Here’s another example of a company following WOM TRUTH #11: A Company’s Personality is its Best Form of Advertising.

Mighty Fine Hamburgers in Austin, TX showcases its unique personality in practically every customer touchpoints. No stunts. No gimmicks. No one-off marketing ploys. All Mighty Fine does is earn opinions by serving up remarkable burgers in remarkable ways.

Let’s count some of these remarkable ways.

#1 – The Queue
Total cattle call. I’ve never been to Mighty Fine when the queue wasn’t at least 10 people deep. You go expecting to wait in line. Anticipation heightens the senses. Besides, long lines that move fast mean a restaurant is doing something right, right?

#2 – Fun Language
If you want Mustard, you gotta say, “Yeller.” “Red” gets you Ketchup and “White” gets you Mayonnaise. Mighty Fine could have gone the common, boring route with Mustard, Ketchup, and Mayonnaise. They didn’t. They decided to make the common uncommon. So uncommon that it’s worth talking about.

#3 – Service
Ask a Mighty Fine employee behind the counter how they’re doing and you’ll likely hear, “Mighty Fine.” They smile. They laugh. They look like they are having fun. Which all benefits the customer experience. Mighty Fine prides itself on hiring only “A Players” who are positive, supportive, and cooperative. To attract “A Players,” they pay above-average wages and offer much better than expected benefits. Mighty Fine knows by astonishing employees, they in turn, will astonish customers.

#4 – Assurance
When placing your order, the Mighty Fine employee writes all your requests directly on the bag. To close the order, the employee again goes over everything with you to best ensure you get exactly the burger you ordered. This process takes time but I’m sure it cuts down on mistakes. As a customer, I appreciate the thoroughness because it brings about assurance.

#5 – Picnic Tables
Old-school family-style picnic tables. Nothing fancy. Nothing fancy needed at a burger joint. This family-style seating makes it comfortable for all ages and helps to encourage conversations between customers from different parties.

#6 – Theater
Taking a page from Krispy Kreme’s doughnut theater, Mighty Fine lifts the veil on some of their prep work. The window is wide open for everyone to see the ground chuck getting hand-formed into patties. The krinkle-cut fry cutter is always-on with an employee shooting whole potatoes down the cutting chute. The hamburger cooking and shake-making stations are just behind the counter for everyone to see. Mighty Fine has nothing to hide. It’s operations are in full view of every customer. (Unlike most burger joints.)

#7 – Quality
100% natural beef. Ground in-store. Hand-formed in-store. Fresh cut crinkle-cut fries. Sea Salt is the only salt used. Custom-made beef franks. Hand-dipped and hand-spun milkshakes. Quality is everything to Mighty Fine because they believe quality ingredients produce the tastiest food. (Hard to argue with Mighty Fine here.)

#8 – Smiles
Everywhere you look customers are having a good time. I’m a touch cynical; however, my cynicism subsides when inside Mighty Fine. A good hamburger in a family-friendly setting appeals to young, old, and everyone in-between. (Including this hardened marketer.)

#9 – Mighty Tasty
My Dad is a burger aficionado. In his nearly 75 years, Al Moore has cooked and eaten a lot of burgers. He’s burger expert if there could be one. After visiting Mighty Fine in January, he’s been talking about it with his circle of friends. I asked him what he tells people about Mighty Fine and this is what he says, “The place is awesome. Lots of production people, each knowing their job. The product is even more awesome — a top-notch hamburger. To my surprise, the family-style works. I’ll be back.” That’s one helluva endorsement.

#10 – Job Recruitment
Instead of a pamphlet by the soda machine to attract new hires, Mighty Fine uses a classic grocery store number dispenser like we used to use at the butcher counter. This dispenser is prominently located in the entry/exit way area for potential new hires to see going in and going out. A sign above the dispenser says, “Apply Now.” You pull the ticket and it directs you to a website to learn more information and to apply online. Again, Mighty Fine is simply making the common uncommon. Nice touch.

#11 – Clean Hands
It’s a “jacuzzi for your hands.” That’s what the hand washer says used at Mighty Fine. It’s the same hand washer employees use, so you know it is more sanitary than the common hand sink washer. Kids clamor to use this hand jacuzzi. Parents are always seen lifting up their kids in order for their hands to fit inside the washer. Of course, parents use it too because it’s just so unique you have to use it. Yet again, another way Mighty Fine takes something common and makes it so uncommon it’s worth talking about.

Every one of these 11 examples are WOM-worthy. Each one showcases how Mighty Fine turns mundane business matters into something so special that they earn opinions from customers. Because these activities earn opinions, people talk. And because people talk, there is always a line at Mighty Fine. And because there is always a line, Mighty Fine has opened a second location.

Mighty Fine doesn’t need gimmicks to get customers talking. It just does business every day in such a way that people gladly talk about it.

Mighty Fine understands the importance of Word of Mouth. How do I know? This sign displayed in the exit way tells me…

In an earlier post I shared WOM TRUTH #11: A Company’s Personality is its Best Form of Advertising. Using Word of Mouth activities in this way is about designing a business to showcase its unique personality in ways customers are compelled to tell others about.

Add Austin Pizza to the list of companies using its personality as it’s advertising.

Austin Pizza has 11 eleven locations in Austin, TX. Recently they closed a location. Instead of posting a small generic sign in the window informing people of the store being closed … Austin Pizza posted a BIG SIGN with some sassy copy.

The Good News/Bad News copy has some personality. Caught my attention. I’m talking about it now online and I’ve told others offline.

The takeaway is simple … if you find ways to show your company’s personality, you’ll find Word of Mouth will follow.

U.S. News and World Report asks, “Should blogger sponsorship deals be regulated?” Robert Weissman from Commerical Alert argues for regulated disclosure. Paul Rand, president-elect of WOMMA, presents the case for voluntary disclosure. [article PDF]

We’ve addressed aspects of this critical issue here and WOMMA recently tightened its stance about brands and bloggers disclosing material relationships by amending its code of ethics to read: “We stand against marketing practices whereby the marketer or its representatives provide goods, services or compensation to the consumer to make recommendations, reviews or endorsements without full, meaningful, and prominent disclosure.” [SOURCE]

It is interesting to note, Robert and Paul agree more than they disagree about the need and importance of disclosure with endorsements/recommendations. Where they disagree is on the matter of regulation. The crux of their positions are below:

“… the reason word of mouth is so effective is that it is understood to be authentic. You tell friends about the great new coffee shop around the corner, and they are keen to try it because they trust the authenticity of your endorsement.”

“Disclosure is about the most mild consumer protection there is, and sponsorship disclosure imposes no more than a trivial burden on bloggers. It’s hard to see how the argument against disclosure is anything other than an argument for deceiving consumers.” — ROBERT WEISSMAN

“We’ve seen time and time again that word of mouth works best when it is 100precent credible. Credibility cuts both ways as bloggers, endorsers, and companies must disclose relationships with one another.

“The online world is changing rapidly. Rules are evolving, and ethical practices are still being defined. However, our intolerance for being lied to, hoodwinked, or manipulated remains consistent. Laws may be needed if self-policing stops or proves inadequate. But for now, let’s stick with the common-sense approach that is helping sort out this new world.” — PAUL RAND

In his response, Paul Rand mentions an assurance tool WOMMA has developed to help marketers and bloggers ensure they are both practicing full, meaningful, and prominent disclosure. Check the design and delivery of your next marketing program to see if it is setup for proper disclosure by following these important steps.

Marketers must:
(1) Be clear and distinct in asking bloggers to disclose their relationships with brands and products and any compensation they receive for participating in marketing initiatives.

(2) Encourage and expect bloggers to express their honest and genuine opinions.

(3) Carefully analyze marketing programs to be sure they accurately reflect the company’s business philosophy and uphold its integrity.

Bloggers must:
(1) Always disclose if you have been asked by a marketer to be part of a consumer outreach program.

(2) Be accurate and truthful in communicating your identity.

(3) Always provide your honest and genuine opinions.