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(BTW - that is such a great name), let me give you my take on it.
How one operates depends upon how you approach business. If you're B2C, then you need to reach large numbers of people and SEO/SEM/Facebook etc. make sense. But if you're product operates inside a corporation, none of those forms of marketing make much sense. You're trying to reach particular people in a particular type of organization.
To succeed offering a Web2.0 product for use within an enterprise, you need to reach a visionary within a company. In "Crossing the Chasm" style, that person is your entry point in and they can see and articulate how your product offers value within their company.
What is key about blogs is the blogger. That person is probably a visionary and if they're interested, they know how to present and position your product and more importantly, lend their credibility. Going in by way of intro from a fellow blogger/visionary, you're not positioned as a salesperson, you're an expert who can solve a pain that organization's feeling.
On a good day, I might get 100 people reading my blog. What's more important for me, is that the right people (visionaries) are following my blog and we have common ground and shared experiences. That is why I believe word of mouth and blogs are so important. They allow you to define a niche and reach the right, target people in that niche.
Or maybe I'm just deluding myself...
Andy
I think one of the hidden factors in this fascination might have to do with how valley operates, or we think it does! Many entrepreneurs look for funding before they look for customers (some argue without funding you can't do it, but i am not sold on this argument especially these days but i digress). so they think "i need to get my awesome new thing on the map so VCs accept my calls and listen to my pitch."
Ironically, at least in all my dealings with VCs, they tended to get a lot more excited about your product and what traction you are getting with consumers out there than whether or not TC has blogged about it.
Obviously appearing on the map is almost always good for your business. But I think building a product to appeal to the 1% blogger population while missing the 99% of consumers could cost you a company. What would happen if Facebook had decided to build their system for scoble rather than the rest of us ;)
Wonder how much of a difference there would be in tactics between by B2B vs B2C or by industry.
My favourite is hope and pray :p Where's the raindance option? :)
I wonder if a time element might be at play here: people might have understood "where do you put most of your efforts?" as "what user acquisition activity do you spend the most time at?" Since WOM and blogger relation is more time-intensive than SEO, that might explain its greater prevalence.
Along the same lines, it seems to me that WOM and blogger relation provides greater instant gratification than SEO, while SEO efforts take a while to pay off, which might help make it more "popular".
In fact, I'd also add that they take time from specific types of employees - viral and SEO are typically more engineering centric whereas PR/blog outreach can be facilitated by nontechincal types
Within the group of company readers, you have to count those who are from potential customers and those who very unlikely to become a customer.
Thus you will have 3 groups:
- Residential surfers
- Company readers - unlikely to become customer
- Company readers - target group of companies
We do this for our website and found we got a large presence of marketing and SEO companies, so we have to adjust the content of the blog to our market.
In oder to be able to analyze this a web service that identifies your website visitors by company name is required. A web service we provide ...
I discuss more about this at luckyapps.com -- the Business Strategy section :)