At the 2010 SXSW Interactive Conference, two sessions were held discussing the recently updated FTC Guidelines as it relates to endorsements and testimonials used online in social media. (You can review the twitter stream of each session from these hashtags: #bloggercred and #mikeylikesit.)

WOMMA has been proactive in helping marketers understand the responsibilities brands and bloggers have in complying with the FTC Guidelines. (You can learn more about WOMMA’s best practice guidance by reading our Social Media Marketing Disclosure Guide.)

There are many gray areas within the FTC Guidelines because the social media marketing space is evolving. WOMMA, in working with member companies and industry experts, shares best practice advice to help marketers navigate through the issues of disclosure. However, we recognize our advice will continue to evolve and be refined.

One area where WOMMA’s advice is certain not to change is disclosure. The matter of disclosing information that might affect the credibility of an endorsement is vital because word of mouth works best when it is 100% credible. (Again, for more background on the importance of disclosing material connections in social media places, read the WOMMA Social Media Disclosure Guide.)

A gray area discussed at SXSW session led by the FTC’s Mary Engle dealt with the confusion in applying the FTC Guides to how regular employees of companies, not company spokespeople, should disclose they are employees of a company when they use Twitter and/or Facebook to talk about their products/services of their employer.

Mary Engle, the FTC’s Associate Director for Advertising Practices, explained when company employees share good news and essentially use social media to endorse products/services their company offers, they should alert readers they are employees of the company they are talking about.

Also at this session was Aaron Hendelmen, Partner at Wilson Sonsini Goodrich and Rosati. In response to this question of employee disclosure, Aaron emphasized the importance of companies needing to have policies in place to alert employees of why disclosure is needed.

The following video taken from this SXSW session shares the perspectives of Mary and Aaron on the issue of employee disclosure in social media…

As a marketer, my takeaway and advice about this doesn’t have legal backing and might not be the official position of WOMMA. That said, I don’t believe many companies have much to fear when their non-spokesperson employees occasionally tweet about their company or update their status on Facebook with a mention about products/services their company sells.

I do believe employees who have been given the responsibility for serving as an “official” spokesperson in social media venues for a company should always identify themselves as an employee of the company. Dell does this exceptionally well on Twitter where “official” spokespeople have usernames that clearly identify themselves as Dell employees, such as @LionalatDell and @RichardatDell. “Official” Comcast spokespeople also use excellent disclosure-compliant usernames like @ComcastGeorge and @ComcastKim.

However, if a non-spokesperson employee goes way beyond occasionally tweeting to incessantly tweeting about their company’s products/services with no disclosure whatsoever… then yes, this could be a problem. And the company should have a policy in place, to Aaron’s point in the video, to address situations of a rogue twitter-happy employee on the need to (a) disclose and (b) potentially tone down the incessant nature of their company-focused tweeting.

At this stage in the evolution and development of social media marketing programs, there aren’t many definitive answers. There are lots of best practices though and WOMMA has one of the better best practice guidelines out there in Social Media.

According to Advertising Research Foundation (ARF) president Bob Barocci, “The single biggest opportunity in the history of consumer marketing lays dormant.”

The opportunity Bob speaks of is LISTENING.

If listening is the single biggest opportunity in the history of consumer marketing, then why is it such an untapped resource? Why aren’t more brands engaging with customers through listening-inspired marketing activities?

Those questions and more are answered and explored in THE LISTENING PLAYBOOK written by Steve Rappaport, ARF’s Knowledge Solutions Director.

This worthwhile book presents listening-inspired marketing to help brands solve marketing challenges ranging from maintaining sales momentum to co-creating new products to understanding shifts in the marketplace to so much more. 30 case study examples are detailed showing how brands are applying listening-inspired marketing to impact their business.

Also detailed are do-it-yourself and full-service vendor methods of listening to the online and offline conversations customers are having about brands.

It really is more than a book to read, it’s a book to use… hence it’s called a “playbook.”

The first step in this playbook on applying listening-inspired marketing is to… LISTEN. Easier said than done as The Listening Playbook points out. Some brands aren’t open to listening for fear of what they may hear. Other brands are overwhelmed by the voluminous amounts of conversation data found online. Many brands are unsure how best to positively impact financials through listening. And, some brands want to listen but don’t know how.

To assist brands in their listening approach, The Listening Playbook explains the various do-it-yourself search/monitoring tools, text analytics software services, and full-service listening platform vendors.

That’s helpful information but the most valuable information in the playbook are the case study examples of how brands are applying listening-inspired marketing activities.

For example, we learn how MINI USA analyzed online conversations and discovered MINI owners “… viewed their car as a blank canvas onto which they could project their personality, through customizations and modding [slang for ‘modifying’], and enjoy doing it and sharing it virtually and in-person. With that listening insight, MINI USA developed various activities to foster more sharing opportunities within the MINI community of customers.

We also learn exactly how CDW, a computer hardware and accessories brand, listened to conversations its customers were having on three company-driven online communities. Based upon what CDW heard from its customers, the company overhauled its cold call marketing strategies and designed new customer relationship strategies.

JetBlue’s listening strategies, along with scores of other companies, are detailed in The Listening Playbook showing how the airline uses Twitter to stay ahead of potential customer service issues and react to any customer service issue flare-ups happening 24/7.

As I mentioned, The Listening Playbook is a very helpful and valuable resource from any company wanting to improve its business from listening to the conversations customers are having and will continue to have about their company.

A printed copy can be purchased online at Amazon and Lulu.

A bite-size chunk can be had for free by reading (or downloading) Chapter 1 off Scribd.com.

The ARF Listening Playbook - Chapter 1, Essentials of Listening

DISCLOSURE: I paid for my copy of THE LISTENING PLAYBOOK. WOMMA is friends with ARF. A session at the upcoming School of WOM conference will be co-presented by WOMMA and ARF. I liked ALF. Liked that ALF was featured on a recent episode of CBS’s “The Big Bang Theory.” I also like the smell of mayo in the morning.

It’s reported that 60% of online retailers are using consumer generated ratings and reviews to help customers make more informed purchased decisions. It’s also reported 61% of consumers rely on online ratings and reviews before making a purchase. Clearly, online ratings and reviews are changing the buying process by bringing forth authentic consumer voices and transparent business practices.

For the WOMMA Measurement & Metrics Guidebook, Melissa Douglas, Manager of Social Analytics at Bazaarvoice, contributed an in-depth article about measuring the impact of consumer generated ratings and reviews on a business.

I asked Melissa a few pointed questions about her article. Her responses make for good reading for every marketer and product manager.

1. Besides increasing conversion rates, what are some other benefits to a brand sharing Ratings & Reviews of products online?
“There are various benefits to bringing user-generated content (UGC) to your brand. User-generated content not only influences your top line numbers, such as increasing sales, but also impacts your bottom line. Metrics such as conversion, product abandonment, customer service interactions, and return rates can impact both your top and bottom lines. For example, by taking action on poorly rated products or assuring these reviews stay live on your site, you can easily decrease customer service support and return rates. Negative reviews help set proper expectations with your customers and give internal teams the necessary information to optimize the product catalog and improve products. And featuring highly-rated products in marketing campaigns can directly impact conversion rates and call attention to those products that your community considers the best.”

2. What types of businesses can benefit most from Ratings & Reviews? Conversely, what businesses would benefit least?
“All types of industries benefit from UGC. Most obviously, retailers benefit when customer-contributed content helps shoppers find the right products for them on ecommerce sites. But we’ve seen UGC benefit our clients across all verticals. Manufacturers can syndicate their UGC through the channel to numerous retailer sites, helping potential customers wherever they shop. Our clients in the travel industry receive the highest average user contributions per day, as travelers often book online and are eager to share their experiences. Shoppers on financial services sites click to “Read Reviews” even more often than most other verticals – for these highly researched purchase decisions, UGC satisfies the increased demand for information. And UGC helps entertainment providers attract highly-engaged contributors, as customers are eager to share their experiences from shows and artists they are passionate about. In short, any industry would benefit from authentic word of mouth.”

3. What’s the most important Ratings & Reviews metric for a business to measure if its goal is to increase sales?
“Some of the key metrics to take into consideration when measuring ROI include review volume and the percentage of products that contain reviews. Looking at depth and breadth of your review content is critical for success. Keeping your review content evergreen is important, and it’s key to continuously encourage reviews for new products as they are released and sold.”

Influentials are among us. They are known as thought-leaders, trendsetters, mavens, sneezers, etc. Influentials can help spark word-of-mouth conversations leading to a tipping point of sales success. However, It’s not easy for marketers to identify influentials and measure the impact of their influence.

In WOMMA’s Measurement & Metrics Guidebook, Idil Cakim, VP of Interactive Media at GolinHarris, shares her views on “The Influence Factor” and how brands can engage, monitor, and measure influencer marketing programs.

This short Q&A will give you a bite-size chunk of Idil’s perspective on designing and delivering influencer marketing programs.

1. What constitutes influence offline and online?
“The fundamentals of offline and online influence are the same: perceived knowledge of the influencer, credibility and hence trust. In the offline world, we have more access to visual, cultural and social clues that help us assess the influence factor. Meanwhile online, we have more third-party resources and published statements that can help us assess a given source’s influence and authority. Whether online or offline, influencers are experts who know how to spread their messages either through peer-to-peer conversations, organized activities or publications.”

2. Any pitfalls to Influencer Marketing?
“The most common pitfall is sharing an idea or a product with too few influencers and expecting to move the needle. An influencer is bound to take the message further than the average person. However brands may need to engage hundreds of influencers at a time to have quantitative results that show the impact of their efforts.

Lastly, thinking in terms of campaigns with limited times for outreach undercuts the value brands/organizations can derive from influencer relations. Spot outreach is fine, but there needs to be ongoing communication between the brand and its influencers, just like any healthy relationship.”

3. What are three steps a brand should take to design a better influencer marketing program?
First, determine your own influencer criteria and make sure you can recruit enough influencers who can create noticeable change.

Third, plan for ongoing engagement. Sustain authentic communications and continuously offer value to your influencers through news, information, first-to-try types of offers.”

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BONUS COVERAGE:
On a recent WOMMA Brands Council Jam Session, Idil shared more practical insights about Influencer Marketing. The following SlideShare presentation includes snippets from this recent webinar.