The Affari Edge Blog

As noted throughout the blogosphere, the Project for Excellence in Journalism has released the State of the News Media 2007 report.  It is a comprehensive look at news - newspapers and magazines; local, cable, and national broadcast television; radio; and online.

As part of the online news analysis, the project looks at Citizen Media.  There are a number of salient points to be gleaned from the report:

“In the midst of these developments, the earlier form of citizen voice — blogs — began to grow in ways that raised question about whether it was becoming less a part of the grass roots and more a part of the establishment.“  In short, blogs have arrived.  You’re reading one now, aren’t you?  The Project found that 8% of online American adults author a blog or online journal.

The growth in the blogosphere has reached mainstream media.  We all know that even the venerated New York Times has started blogging.  USA Today has taken this a step further, building interactive components with their articles into a larger social networking ability.  The Orlando Sentinel is bringing in community members to do hyperlocal blogs for Central Florida communities.

The project found that the typical blogger has not changed much in the past year.  “In previous years of the annual report, we reported that bloggers tend to be younger, wealthier, and more tech-savvy than the general online population. The most recent data suggest this is still largely true.“  A majority of bloggers are less than 30 years old and almost all blogger (95%) read news online.

And it’s not just the production of  blogs that is growing.  The study found that 39% - 2 out of 5 - of online adult users have ever read a blog, a total of 57 million Americans. Consider that just 51 million Americans subscribe to a newspaper, and you can easily see how mainstream blogs have become.

Finally, the project looked at how bloggers make money - or if they do.  Only 8% of bloggers generate income from thier blogs, mostly by selling items or advertising.   The Project noted that the ad market for blogers is only $50 to $100 million, out of a $16 billion online ad market.  But then, bloggers don’t really do it for money.  The biggest reason was a chance for creative expression.

The project’s conclusion on Citizen Media is particularly telling:

A few years ago, many media critics offered varying degrees of skepticism toward the fanfare that surrounded the emergence of blogs. And a minority even questioned how long they would be around.

Heading into 2007, some of that skepticism — shared by much of the public as well —remains. How much can one trust the accuracy of news and information posted on blogs? How can blogs survive without a reliable revenue stream?

It may be a case of trying to fit a square peg in a round hole. Much of the talk a few years ago — that blogs would supplant traditional media — seems antiquated now. The relationship between blogs and traditional media, in the end, may be more complementary, even synergistic, as time moves on. Citizen journalism, and the interactivity it promises in Web 2.0, increasingly seems to offer the potential of enriching traditional journalism (by enriching citizens), not threatening it.

We belive the same can be said for “traditional marketing” and “traditional public relations.”  A corporate blog should never replace these avenues of communication; instead, a blog should be a part of an overall business communications strategy.

NOTE: All statistics quoted in this post were obtained from the State of the News Media report. 

We at Affari Edge believe that companies can benefit from blogging, which is why I signed up for Blog Business Summit’s Fortune 500 Blog Project, an independent volunteer effort to study public-facing corporate blogs by Fortune 500 companies.

The first company I reviwed is Publix, #104 on the 2006 Fortune 500 list, and top business in the state of Florida. Based in Lakeland, Floria, Publix is a privately held corporation, operating almost 900 supermarkets in Florida, Georgia, Alabama, South Carolina and Tennessee. They are the 6th ranked grocery/drug store with almost $21 billion in revenue. Publix is known for its philosophy of pleasing the customer; the Publix guarantee to never knowingly disappoint our customers is legendary in the industry. (Sources: Publix website, CNN/Money Magazine).

After searching their site, and not finding any obvious links to a blog (and the search for the word ‘blog’ on their site returned zero results), I made a call to Maria Brous, Director of Media & Community Relations. She explained that Publix does not have the current resources to devote to a public-facing blog. Rather, they are dedicated to serving their customers through direct interaction in the stores with friendly, knowledgeable associates and management, as well as a dedicated Consumer Relations Line with both telephone and email interaction. She did indicate that Publix can not monitor the blogosphere simply because of the volume of bloggers out there — a Technorati search on Publix found more than 31,000 entries and 13 blogs - mostly on MySpace. However, Publix customers themselves keep the company informed about what is being said about Publix.

We at Affari Edge recognize the time and manpower a public facing blog can take. Publix is a great company, and their lack of a blog does not detract from the great customer service they offer. Still, in the future, I would expect if customers start asking for a blog, Publix will start one — they are known for making sure their customers get what they want.

I have heard from a number of PR professionals that social media is a threatening place for companies, especially publicly traded companies.

However, Jet Blue - a publicly traded company that is known for its customer service - decided to use YouTube to issue a public apology directly to the people.

I have maintained that Jet Blue is a good company and will rebound from this crisis stronger than ever. It is certainly a case study in crisis management, though, and to see social media used in this manner is refreshing to see.

Hat tip to Church of the Customer for this video.

First, let me say that I have not flown on Jet Blue, but I know people who have. It is a great airline and has repeatedly been recognized for outstanding customer service. They do know how to operate an airline, and they do it well.

Or did until last week.  Cupid shot an arrow throught their reputation.

On Valentine’s Day, a snowstorm hit the Northeast US. Airports closed. Airlines canceled flights, Jet Blue among them - although later than most.

As the storm started breaking, airlines started flying again. Except for Jet Blue. It seems that they had some rather major internal communications problems. Their pilots and flight attendants were scattered all over the place - and Jet Blue didn’t really know where. They had too many airplanes in other places. The New York Post reported Jet Blue had 52 plans parked at JFK Thursday morning, and the airport closed the runway - so Jet Blue couldn’t get their planes to other airports, stranding passengers.

So pilot-less planes were loaded with passengers who waited. And waited.

And waited.

And waited.

And waited.

And… well, you get the picture. Some planes sat on the tarmac for 10 hours or more.

It didn’t help that usually responsive customer service personnel were not able to give out information. Or FAA rules hogtied what Jet Blue personnel could do (such as having to wait four hours before givng food and water on planes sitting on the tarmac).

So what happens to people like this? They blog. JetBlueHostage.com was started by a woman (Genevieve) stranded for 11 hours at JFK:

JET BLUE: A VALENTINE’S DAY HOSTAGE CRISIS

Nothing says “I love you” like being held hostage on a frozen plane with the man you love, 99 strangers, 4 other people you happen to know, 4 screaming babies and 3 rambunctious kids running about, nothing but chips and soda for sustenance, faulty power, unreliable direct TV and overfilled sewage system for 11 hours.

In one week, she has 87 posts. 87. They range from news articles about the situation to posts about other Jet Blue hostages.  There are even two posts from a Jet Blue employee — one basically chastising Genevieve for starting her blog.  Other bloggers posted as well, and linked to Genevieve’s post.

Wow.

Days after the snowball started, the CEO - David Neeleman - finally tried to get in front of it.  He admitted the mistakes.  He taked about his airline’s internal shortcomings.  He was “humiliated and mortified” by what has transpired.  The New York Times has a great article about his mea culpa.

He is offering refunds and more cash to those affected.  Jet Blue paid for hotel stays and free meals. The only information about this on the official website were press releases and an “operational interruption” notice.

Could they have handled this better? Absolutely.  Neeleman almost admitted as much.

Now I will admit that I am not a crisis management specialist.  I realize that what I find in news reports and blog posts does not represent the totality of what Jet Blue has done and will do.  But I can say there are three things I would have done differently.

1) When internal communications breakdown, external communications need more transparency.  Passengers should know as much as possible.  Most of the negative reactions fr0m passengers stemmed from the inbility of Jet Blue staff to give any information.

When a CEO has to come out and admit that his company has some internal problems, his stockholders will not like what happens to the stock price.  Shares of JetBlue had actually risen at the end of last week, and the market is closed today for Presidents’ Day.  I will be watching the shares tomorrow, but if all flights return to flying the long-term impact will be negligible.

2) Provide a mechanism for feedback other than yelling at Jet Blue employees.  Imagine if, instead of having an irate passenger starting her own blog, JetBlue had started a forum or blog where customers could vent.  Yes, the comments would be negative - but the company could see earlier just how big the snowball is getting… and would know how their customers are reacting.

It would let the company know both where and how to communicate information.  It would also allow them to dispell rumors and provide accurate, clear information - instead of embedding the information in their press release section, hoping media outlets will communicate for them.

3) Open the internal communications structure.  Neeleman noted that he had pilots sending him emails asking what to do.  If those same pilots and/or flight attendants could use on-line communications tools such as forums or blog comments, it might have expedited some of the staffing problems.  These tools need not be public-facing, but social media technology can be utilized for internal communications.

Only time will tell what the effects will be on Jet Blue.  They will be spening money on better training.  They will undoubtedly be spending money on communications and reservations systems.   A lesson has clearly been learned, and they will - once again - be back to among the best customer-service airlines in the world.  It is just interesting to see how this situation has been handled.

The connectedness of the Web is transforming what’s inside and outside your business — your market and your employees. Through the Internet, the people in your markets are discovering and inventing new ways to converse. They’re talking about your business. They’re telling one another the truth, in very human voices.

There’s a new conversation between and among your market and your workers. It’s making them smarter and it’s enabling them to discover their human voices.

You have two choices. You can continue to lock yourself behind facile corporate words and happy talk brochures

Or you can join the conversation.

- Cluetrain Manifesto

Seven years ago Christopher Locke, Rick Levine, Doc Searls, and David Weinberger took the business world and stood it on its ear. Oh, to be sure, most of the rest of the world has yet to notice. They were, and perhaps still are, ahead of their time.

They realized then what the power of an ever-shrinking, increasingly interconnected world would mean to commerce and economics. Despite continued efforts at aggregation, segmentation, and differentiation, the marketplace consists not of amalgamated customers, but people. Lots and lots of individual human beings.

Conventional advertising and marketing, which has worked for so long, consisted of a company communicating outward to its customers. Buy our product! Shop here! Our stuff is best! We are the experts you seek!

And yet, study after study has found that most people trust word of mouth advertising far more than any other delivery system. If someone they know tells them to buy, they are more inclined to buy. This is why advertisers started using customer testimonials and celebrity endorsements decades ago.

They may watch your commercials on televison, but they ask their friends and family about making a purchase.  They may read your direct mail piece, but they remember hearing a colleague rave about a product.  They may see your billboard, but they know where their loved ones shop.

The model of one-to-many marketing needs to be replaced with a many-to-many model that understands the impat of “word of mouth.”  In the late 1990’s, some companies tried their hand at “network marketing,” and failed miserably.  The concept largely failed (outside of Amway and MaryKay) because of overzealous and unscrupulous marketers trying to make a quick buck.  But there is another model.

Oh, before we talk about that model, there is something else to consider. Kevin Roberts identified the future of branding through “Lovemarks.”

Lovemarks transcend brands. They deliver beyond your expectations of great performance. Like great brands, they sit on top of high levels of respect - but there the similarities end.

Lovemarks reach your heart as well as your mind, creating an intimate, emotional connection that you just can’t live without. Ever.

Take a brand away and people will find a replacement. Take a Lovemark away and people will protest its absence. Lovemarks are a relationship, not a mere transaction. You don’t just buy Lovemarks, you embrace them passionately. That’s why you never want to let go.

Put simply, Lovemarks inspire

Blogs can help build the “intimate, emotional connection” needed to grow into a Lovemark.  They are also the perfect many-to-many model, because blogs allow customers to both reproduce your message in other places as well as provide feedback by responding directly to you.

There are two other benefits blogs have: they can get around spam filters that block email marketing campaigns; they can help raise your profile in search engines.  Many companies try using email newsletters or other email marketing campaigns.  Many spam filters often catch these kinds of messages, preventing you from reaching your customers - even if they requested to be added to your email list.  Throught RSS feeds, your customers will read your messages time and again, reinforcing your brand in their minds.

Moreover, a large number of customers use search engines to research purchases, especially major ones.  Your company may use paid search services offered by Google or Yahoo, but take a look at the regular search results.  Having a blog can take advantage search engines, and help raise your profile among these results.

Finally, blogs are cheap.  Really cheap.  There are a number of high-quality free services (you’re looking at one right now).  It takes time and effort, but blogs don’t have to eat into your bottom line.

There is a significant amount of infomation available on the Internet - if you want to take the time to search, read, and teach yourself (like I did).  On the other hand, there are a number of companies like Affari Edge that can help get you started and keep you going.

So, the question is: when will your business start to blog?

Affari Edge is a full service advertising, marketing, and public relations agency.  But not every one of our clients utilizes every service we offer.  As the Director of Public Strategies, my primary job is to help companies with public relations services - both traditional and non-traditional.

So, how do companies decide they need to hire a public relations firm?  There is a certain process companies use to determine their need for a firm.

First, companies need to determine if they are getting enough exposure, espcially when compared with their competitors.  When company executives, turn on the television, read a newspaper, download podcasts, or read blogs and read about products or services, they need to feel comfortable with the amount of attention they receive.

Next, a company who feels that they do not receive an appropriate amount of attention needs to determine if additional attention will provide for more business.  It is possible that some companies would not generate new business despite additional efforts at public relations.  However, for most companies, additional public relations can provide tangible results in their bottom line.  This can be especially true in times of crisis, to protect their current customer base or reassure the general public about the products or services they offer.

Once a company feels it wants more public relations services, it needs to determine if it has enough expertise and manpower available in-house.  Some internal public relations personnel either are responsible for internal communications as much as public relations.  Moreover, in times of crisis for the company, the internal PR person may not have the training necessary.

Finally, once a company has decided to hire an external public relations firm, they need to make sure their PR firm works with their marketing and advertising, either internal or external.  A good public relations firm will make sure a PR plan compliments its clients marketing plan - to ensure that the message provides uniformity and is reinforced in the minds of the consumer.

To be sure, there are a lot of advantages to hiring an external public relations firm, rather than attempting to add PR services to already  existing staffers.  Any reputable firm can tell you whether or not it makes sense for your business, so it never hurts to talk - no matter what size your company is.