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Module 3:  Corporate blogging
Kryptonite Bike Lock Fiasco
The power of video blogs A biker finds out that his bike lock made by US lock-maker  Kryptonite  can be picked with a  Bic  pen.  He posts video online. Company does not react after three days. Bloggers continue to rail at the company until it finally agrees to exchange the old locks for new ones, at an estimated cost of at least US$10 million.
Kryptonite Lock Fiasco
Kryptonite Lock Fiasco 2
Mainstream media picks up story
Source: Fortune
 
Ingersoll-Rand Endures  Kryptonite's US$10 Million Hit   OCTOBER 25, 2004, MONTVALE, NJ -- Kryptonite delivered a $10 million hit in unanticipated costs in the third quarter to the Security and Safety division of parent company Ingersoll-Rand. Despite the setback, Ingersoll-Rand enjoyed an overall 15 percent increase in third quarter revenue to $2.4 billion.  Kryptonite's financial drubbing began in early September after Internet video clips demonstrated the apparent ease in cracking its tubular locks with the shells of ballpoint pens.  Kryptonite launched replacement programs for consumers and retailers, and accelerated retail delivery of new product. Those moves, however, hit the security division's operating margin.  "Operating margins of 16.5 percent (in the third quarter) declined compared to 2003,  reflecting approximately $10 million of estimated costs related to Kryptonite cylindrical bicycle locks," the company reported Oct. 21 in a filing with the Security and Exchange Commission. Its operating margin in 2003 for the same period was 21.2 percent.  The company, founded in 1871, is organized in Bermuda with corporate offices in Montvale, New Jersey. It has about 42,000 employees worldwide and a current market capitalization of approximately $11 billion with annual sales of more than $9 billion. The company trades on the New York Stock Exchange under the symbol IR.
“ Like new, this Master U-lock is perfect for temporarily attaching your bike or scooter to a pole or bike rack. This temporary attachment is very handy if your bike does not have a proper kick-stand. “ It's sturdy steel design and black color are intimidating for thieves who don't have a way to open it. “ Comes with two keys. Keep one with you, and the other safe at home in your desk drawer. Lock and “keys” offer on
Lessons: Kryptonite Every customer has the power to affect your brand, product, service in a profound way The blogosphere is growing and influential and you cannot disregard it anymore Be ready to update website, re-act to comments quickly False ‘Our  ( enter product/service here )  are fine’ statements will not hold water. Kryptonite after claiming ignorance for the longest time starts own blog -  one and half years later.
Blogging
Famous last words… "Blogs Don't Worry Me," Says Zainuddin Maidin,  Feb 17, 2008 “ The younger generation may be tech-savvy, but they tend to believe newspaper reports over comments made on the Internet,” the Information Minister told China Press. He claimed that he is not worried that blogs and forums critical of the incumbent Barisan Nasional coalition would affect its chances of winning the election. He added that the Internet is used  mainly to book budget airline tickets or to get entertainment news .
Post-mortem: New media  influences voting patterns  “ When I did a review (after the 12 th  general elections), I found that  70 per cent of the results were influenced by the new media , especially blogs,"  University Malaya Media Studies Department lecturer Dr Abu Hassan Hasbullah The younger generation placed greater importance on  those who disseminated information faster  rather than getting it from the traditional sources. They also spread blog content to parents and family. Opposition using the new media since 1998 with 45 bloggers, rising to 7,500 bloggers by the middle of 2004. Some bloggers were “indirectly trained" to become politicians and eventually won parliamentary seats. “ It is not easy to win the trust of blog readers, adding that it could take years to achieve that.”
Bloggers not immune to the law
Bloggers affect brands Jeffooi.com vs Maxis  Mon, July 26, 2004  “ I maintain two post-paid mobilephone accounts. One of the Maxis main accounts activated over eight years ago on Jan 9, 1996, has contributed a total of RM9,982.81 to Maxis coffer to date. Because of sustained call pattern, Maxis has granted me a Line of Credit of RM850.00 some four years ago, and the LOC is still maintained in their customer database. “ Yesterday, Maxis decided to ‘interrupt’ my line because I owed them RM5.92 - LIMA RINGGIT SEMBILAN PULUH DUA SEN.  Once a telco grows big, it tends to get very cocky . I used to detest this perception, but I now agree fully….”
They are talking about your brand Among all bloggers: Seven in 10 bloggers talk about products or brands 46% talk about brands that they love (or hate) 38% post product or brand reviews 38% post about some everyday experiences in stores or customer care Source: Technorati survey 2009
Corporate blogs give you visibility Among business bloggers: 71% of all respondents who maintain blogs for a business – their own or one they work for – report that they have  increased their visibility  within their industries through their blogs.  63% says prospective clients have read their blogs and  purchased products  and services 56% say that their blog has helped their company establish a position  as a thought leader  within the industry.  58% say that they are  better-known  in their industry because of their blog . Source: Technorati survey 2009
Blogging is a bonafide business > 200 million bloggers A-listers get most of the traffic http://paultan.org
Why blog? Adds a human face to the company, more authentic with insider views of business Counters rumours, misquotes, fake sites, negativity, brand terrorism.  Opens lines of communication, engages customers, builds brand loyalty, encourages conversations and linkability Promotes new products/services Creates a knowledge database for staff More flexible than press releases, useful in a crisis
Humanize:  Dell's bloggers wrote extensively about their battery recall:  providing a feel from the inside of what it's like to deal with a massive customer service problem.  Promote CSR:  Bob Langert, McDonald's blogger at  Open for Discussion , is the vice president for social responsibility, who writes about obesity, negotiating with Greenpeace and why McD's gave out Hummer toys in its Happy Meals.  Personalize:  In  Nuts About Southwest , a pilot writes about how he spots thunderstorms on radar and a flight attendant describes the joys of staying over in San Diego. Put a face on your company
Don’t be boring! http://dullestblog.com/
Don’t fake it! McDonald’s now has CR blog responding to criticism over the healthiness of fast food
What a CEO shouldn’t do Whole Foods chairman and CEO John Mackey used fake name '‘rahodeb,'' trumpeted Whole Foods and attacked its rival Wild Oats on Yahoo stock forums.  Postings from 1999 to 2006 claimed that Wild Oats was “overvalued and poorly run”. Mackey apologized when found out. In 2007, Whole Foods bid to buy its rival for about US$565 million, but federal antitrust regulators blocked the deal. SEC ordered investigation. Two years, US$28 million in legal fees and expenses later, before deal was approved.
ROI of Blogging From Groundswell
ROI Blogging: GM Fastlane Blog Start-up costs   Costs Planning and development  US$25K Training for blogging executive  US$10K Ongoing costs (annual) Blogging platform  US$25K Brand-monitoring service  US$50K IT support  US$3K Content production, Including executive time  US$150K Review and redirection  US$20K Total costs. year one   US$283K *Estimates are taken a large company blog and benefits do not directly account for sales decisions driven from blog readership.
Benefit analysis (annual)  Value of benefit Advertising value: visibility/traffic US$7K  (estimate 7,500 pageviews/day at a $2.50 CPM) PR value; press stories about/ US$240K  driven from blog content  (estimate 24 stories at value of $10K each) Word-of-mouth value: referring posts  US$37K  on other medium-to-high-profile blogs  (estimate 370 posts at value of $100 each) Support value: support calls avoided   US$69K  because of information on blog  (estimate 50 daily support calls avoided at $5.50 per call) Research value: customer insights  US$40K (estimate comments/feedback equivalent to 5 focus groups at $8K each) Total benefits. year one   US$393K
Track and measure Source: Forrester Research
8 Blogging tips 1. Update once weekly, if not daily Rule of thumb is to blog at least once a week. Do it tag team style, so you can keep it fresh and updated.  2. RSS: Make it easy to subscribe 3. Track visitors: Blogger: Use Google Analytics tracker to track number of blog visitors. WordPress: Stats on Dashboard, or use independent tracker eg:  http://extremetracking.com  or Google the keyword “free trackers” 4. Promote, promote, promote Use Facebook and Twitter apps to automate blog post updates.
8 Blogging tips 5. Link out Link to related articles within, link to articles you are commenting about, link your pics to the article you refer, link to major news sites, A-list bloggers, update your blogroll. 6. Track popular posts, subscribe to feeds Use Digg, Delicious, slashdot.org, Alltop, uClue.de 7. Moderate comments, respond, thank visitors Delete the nasties, banish trolls and spammers 8. Blogging takes time and effort Don’t give it up so easily. Be patient.
 
15 blog post ideas Do profile on “Employee of the Month”. List 5 or 10 ideas, trends, or thoughts  Do sneak preview of a project or new product Promote CR activities Publish a list of links on a specific subject Relate a recent experience, or anecdotal story Answer questions you received recently Comment on other blog posts Turn a press release into a blog post, insider view Trade guest posts with other bloggers Post pictures or video of recent event Record audio of speaker, or speech and post Embed presentation  (use Slideshare.net, scribd.com) Embed video from YouTube Post slideshow of recent project or event Bonus: http://bit.ly/100blogideas
Blogging resources BLOG SITES SEARCH BLOGS http://blogsearch.google.com CEO/CORP BLOG LISTS Corporate Blogs List http://bit.ly/corpbloglist CEO Blog List http://bit.ly/ceobloglist BLOG INDEX Alltop Clue.de SAMPLE BLOGS Brian Solis http://www.briansolis.com Chris Brogan http://www.chrisbrogan.com David Meerman Scott http://www.webinknow.com What’s Next blog http://www.whatsnextblog.com Jeremiah Owyang http://www.web-strategist.com/blog Strategic Public Relations http://prblog.typepad.com/strategic_public_relation/ The Blog Herald http://www.blogherald.com USE WORDPRESS IN YOUR OWN DOMAIN http://wordpress.org/about/requirements USE BLOGGER IN YOUR OWN DOMAIN http://bit.ly/useblogger
Blog terms blogroll  (favourite weblogs)  bloggerrhea  (posting to your weblog many times in a short period) blogstipation  (the antithesis of bloggerrhea; a condition that results from going too long between blogs) blog diva  (a blog that receives numerous hits a day...aka “A-lister”) troll:  A commenter whose sole purpose is to attack the views expressed on a blog and incite a flamewar splogs:  fake spam blogs
Blogware Free:  Blogger, WordPress, Posterous, Tumblr, Xanga, LiveJournal CMS:  Movable Type, Typepad, ExpressionEngine Open Source CMS:  WordPress, Joomla, ezPublish, Drupal, Mambo, Media Wiki  Links:  http://www.opensourcecms.com http://weblogs.about.com
RSS and your blog You can syndicate your blog using RSS. Use Feedburner at feedburner.com Place RSS button on blog, make sure it works Use AddThis.com to share
Companies that blog  internally or externally
CEOs’ blogs Richard Branson, Virgin http://www.virgin.com/richard-branson/blog/ Mark Cuban http://blogmaverick.com
Bill Marriott http://www.blogs.marriott.com/ Richard Edelman http://www.edelman.com/speak_up/blog/
http://www.tonyfernandesblog.com
 
Exercise: Create a blog Go to www.wordpress.com and sign up
1.Go to wordpress.com and sign up here
2. This becomes your URL for your blog ie: http://buzz.wordpress.com 5.Remember the email you are using, you have to access this to authenticate account later 3.Write username down in case you forget 6.Click Sign Up 4.Write password down in case you forget
 
7.Open email from WordPress.com 8.Click on activation link
9. Click to view site
10. This is your new blog! It has a new post and new comment and uses the default design template. You can edit or delete the post and comment or change design template in My Blog > Dashboard > Appearance Log In
11. This is your Dashboard. Explore features like Posts, Pages and Appearance in left column
Click on Posts to edit Posts Click to Pages to edit About page, or add New ‘Permanent’ Page Click on Links to add a blogroll Click on Appearance to change Theme (in Manage Themes you can add Widgets or Custom Header) Click on Users to add users
 

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CSM Module 3: Corporate blogging

  • 1. Module 3: Corporate blogging
  • 3. The power of video blogs A biker finds out that his bike lock made by US lock-maker Kryptonite can be picked with a Bic pen. He posts video online. Company does not react after three days. Bloggers continue to rail at the company until it finally agrees to exchange the old locks for new ones, at an estimated cost of at least US$10 million.
  • 8.  
  • 9. Ingersoll-Rand Endures Kryptonite's US$10 Million Hit OCTOBER 25, 2004, MONTVALE, NJ -- Kryptonite delivered a $10 million hit in unanticipated costs in the third quarter to the Security and Safety division of parent company Ingersoll-Rand. Despite the setback, Ingersoll-Rand enjoyed an overall 15 percent increase in third quarter revenue to $2.4 billion. Kryptonite's financial drubbing began in early September after Internet video clips demonstrated the apparent ease in cracking its tubular locks with the shells of ballpoint pens. Kryptonite launched replacement programs for consumers and retailers, and accelerated retail delivery of new product. Those moves, however, hit the security division's operating margin. "Operating margins of 16.5 percent (in the third quarter) declined compared to 2003, reflecting approximately $10 million of estimated costs related to Kryptonite cylindrical bicycle locks," the company reported Oct. 21 in a filing with the Security and Exchange Commission. Its operating margin in 2003 for the same period was 21.2 percent. The company, founded in 1871, is organized in Bermuda with corporate offices in Montvale, New Jersey. It has about 42,000 employees worldwide and a current market capitalization of approximately $11 billion with annual sales of more than $9 billion. The company trades on the New York Stock Exchange under the symbol IR.
  • 10. “ Like new, this Master U-lock is perfect for temporarily attaching your bike or scooter to a pole or bike rack. This temporary attachment is very handy if your bike does not have a proper kick-stand. “ It's sturdy steel design and black color are intimidating for thieves who don't have a way to open it. “ Comes with two keys. Keep one with you, and the other safe at home in your desk drawer. Lock and “keys” offer on
  • 11. Lessons: Kryptonite Every customer has the power to affect your brand, product, service in a profound way The blogosphere is growing and influential and you cannot disregard it anymore Be ready to update website, re-act to comments quickly False ‘Our ( enter product/service here ) are fine’ statements will not hold water. Kryptonite after claiming ignorance for the longest time starts own blog - one and half years later.
  • 13. Famous last words… "Blogs Don't Worry Me," Says Zainuddin Maidin, Feb 17, 2008 “ The younger generation may be tech-savvy, but they tend to believe newspaper reports over comments made on the Internet,” the Information Minister told China Press. He claimed that he is not worried that blogs and forums critical of the incumbent Barisan Nasional coalition would affect its chances of winning the election. He added that the Internet is used mainly to book budget airline tickets or to get entertainment news .
  • 14. Post-mortem: New media influences voting patterns “ When I did a review (after the 12 th general elections), I found that 70 per cent of the results were influenced by the new media , especially blogs," University Malaya Media Studies Department lecturer Dr Abu Hassan Hasbullah The younger generation placed greater importance on those who disseminated information faster rather than getting it from the traditional sources. They also spread blog content to parents and family. Opposition using the new media since 1998 with 45 bloggers, rising to 7,500 bloggers by the middle of 2004. Some bloggers were “indirectly trained" to become politicians and eventually won parliamentary seats. “ It is not easy to win the trust of blog readers, adding that it could take years to achieve that.”
  • 15. Bloggers not immune to the law
  • 16. Bloggers affect brands Jeffooi.com vs Maxis Mon, July 26, 2004 “ I maintain two post-paid mobilephone accounts. One of the Maxis main accounts activated over eight years ago on Jan 9, 1996, has contributed a total of RM9,982.81 to Maxis coffer to date. Because of sustained call pattern, Maxis has granted me a Line of Credit of RM850.00 some four years ago, and the LOC is still maintained in their customer database. “ Yesterday, Maxis decided to ‘interrupt’ my line because I owed them RM5.92 - LIMA RINGGIT SEMBILAN PULUH DUA SEN. Once a telco grows big, it tends to get very cocky . I used to detest this perception, but I now agree fully….”
  • 17. They are talking about your brand Among all bloggers: Seven in 10 bloggers talk about products or brands 46% talk about brands that they love (or hate) 38% post product or brand reviews 38% post about some everyday experiences in stores or customer care Source: Technorati survey 2009
  • 18. Corporate blogs give you visibility Among business bloggers: 71% of all respondents who maintain blogs for a business – their own or one they work for – report that they have increased their visibility within their industries through their blogs. 63% says prospective clients have read their blogs and purchased products and services 56% say that their blog has helped their company establish a position as a thought leader within the industry. 58% say that they are better-known in their industry because of their blog . Source: Technorati survey 2009
  • 19. Blogging is a bonafide business > 200 million bloggers A-listers get most of the traffic http://paultan.org
  • 20. Why blog? Adds a human face to the company, more authentic with insider views of business Counters rumours, misquotes, fake sites, negativity, brand terrorism. Opens lines of communication, engages customers, builds brand loyalty, encourages conversations and linkability Promotes new products/services Creates a knowledge database for staff More flexible than press releases, useful in a crisis
  • 21. Humanize: Dell's bloggers wrote extensively about their battery recall: providing a feel from the inside of what it's like to deal with a massive customer service problem. Promote CSR: Bob Langert, McDonald's blogger at Open for Discussion , is the vice president for social responsibility, who writes about obesity, negotiating with Greenpeace and why McD's gave out Hummer toys in its Happy Meals. Personalize: In Nuts About Southwest , a pilot writes about how he spots thunderstorms on radar and a flight attendant describes the joys of staying over in San Diego. Put a face on your company
  • 22. Don’t be boring! http://dullestblog.com/
  • 23. Don’t fake it! McDonald’s now has CR blog responding to criticism over the healthiness of fast food
  • 24. What a CEO shouldn’t do Whole Foods chairman and CEO John Mackey used fake name '‘rahodeb,'' trumpeted Whole Foods and attacked its rival Wild Oats on Yahoo stock forums. Postings from 1999 to 2006 claimed that Wild Oats was “overvalued and poorly run”. Mackey apologized when found out. In 2007, Whole Foods bid to buy its rival for about US$565 million, but federal antitrust regulators blocked the deal. SEC ordered investigation. Two years, US$28 million in legal fees and expenses later, before deal was approved.
  • 25. ROI of Blogging From Groundswell
  • 26. ROI Blogging: GM Fastlane Blog Start-up costs Costs Planning and development US$25K Training for blogging executive US$10K Ongoing costs (annual) Blogging platform US$25K Brand-monitoring service US$50K IT support US$3K Content production, Including executive time US$150K Review and redirection US$20K Total costs. year one US$283K *Estimates are taken a large company blog and benefits do not directly account for sales decisions driven from blog readership.
  • 27. Benefit analysis (annual) Value of benefit Advertising value: visibility/traffic US$7K (estimate 7,500 pageviews/day at a $2.50 CPM) PR value; press stories about/ US$240K driven from blog content (estimate 24 stories at value of $10K each) Word-of-mouth value: referring posts US$37K on other medium-to-high-profile blogs (estimate 370 posts at value of $100 each) Support value: support calls avoided US$69K because of information on blog (estimate 50 daily support calls avoided at $5.50 per call) Research value: customer insights US$40K (estimate comments/feedback equivalent to 5 focus groups at $8K each) Total benefits. year one US$393K
  • 28. Track and measure Source: Forrester Research
  • 29. 8 Blogging tips 1. Update once weekly, if not daily Rule of thumb is to blog at least once a week. Do it tag team style, so you can keep it fresh and updated. 2. RSS: Make it easy to subscribe 3. Track visitors: Blogger: Use Google Analytics tracker to track number of blog visitors. WordPress: Stats on Dashboard, or use independent tracker eg: http://extremetracking.com or Google the keyword “free trackers” 4. Promote, promote, promote Use Facebook and Twitter apps to automate blog post updates.
  • 30. 8 Blogging tips 5. Link out Link to related articles within, link to articles you are commenting about, link your pics to the article you refer, link to major news sites, A-list bloggers, update your blogroll. 6. Track popular posts, subscribe to feeds Use Digg, Delicious, slashdot.org, Alltop, uClue.de 7. Moderate comments, respond, thank visitors Delete the nasties, banish trolls and spammers 8. Blogging takes time and effort Don’t give it up so easily. Be patient.
  • 31.  
  • 32. 15 blog post ideas Do profile on “Employee of the Month”. List 5 or 10 ideas, trends, or thoughts Do sneak preview of a project or new product Promote CR activities Publish a list of links on a specific subject Relate a recent experience, or anecdotal story Answer questions you received recently Comment on other blog posts Turn a press release into a blog post, insider view Trade guest posts with other bloggers Post pictures or video of recent event Record audio of speaker, or speech and post Embed presentation (use Slideshare.net, scribd.com) Embed video from YouTube Post slideshow of recent project or event Bonus: http://bit.ly/100blogideas
  • 33. Blogging resources BLOG SITES SEARCH BLOGS http://blogsearch.google.com CEO/CORP BLOG LISTS Corporate Blogs List http://bit.ly/corpbloglist CEO Blog List http://bit.ly/ceobloglist BLOG INDEX Alltop Clue.de SAMPLE BLOGS Brian Solis http://www.briansolis.com Chris Brogan http://www.chrisbrogan.com David Meerman Scott http://www.webinknow.com What’s Next blog http://www.whatsnextblog.com Jeremiah Owyang http://www.web-strategist.com/blog Strategic Public Relations http://prblog.typepad.com/strategic_public_relation/ The Blog Herald http://www.blogherald.com USE WORDPRESS IN YOUR OWN DOMAIN http://wordpress.org/about/requirements USE BLOGGER IN YOUR OWN DOMAIN http://bit.ly/useblogger
  • 34. Blog terms blogroll (favourite weblogs) bloggerrhea (posting to your weblog many times in a short period) blogstipation (the antithesis of bloggerrhea; a condition that results from going too long between blogs) blog diva (a blog that receives numerous hits a day...aka “A-lister”) troll: A commenter whose sole purpose is to attack the views expressed on a blog and incite a flamewar splogs: fake spam blogs
  • 35. Blogware Free: Blogger, WordPress, Posterous, Tumblr, Xanga, LiveJournal CMS: Movable Type, Typepad, ExpressionEngine Open Source CMS: WordPress, Joomla, ezPublish, Drupal, Mambo, Media Wiki Links: http://www.opensourcecms.com http://weblogs.about.com
  • 36. RSS and your blog You can syndicate your blog using RSS. Use Feedburner at feedburner.com Place RSS button on blog, make sure it works Use AddThis.com to share
  • 37. Companies that blog internally or externally
  • 38. CEOs’ blogs Richard Branson, Virgin http://www.virgin.com/richard-branson/blog/ Mark Cuban http://blogmaverick.com
  • 39. Bill Marriott http://www.blogs.marriott.com/ Richard Edelman http://www.edelman.com/speak_up/blog/
  • 41.  
  • 42. Exercise: Create a blog Go to www.wordpress.com and sign up
  • 43. 1.Go to wordpress.com and sign up here
  • 44. 2. This becomes your URL for your blog ie: http://buzz.wordpress.com 5.Remember the email you are using, you have to access this to authenticate account later 3.Write username down in case you forget 6.Click Sign Up 4.Write password down in case you forget
  • 45.  
  • 46. 7.Open email from WordPress.com 8.Click on activation link
  • 47. 9. Click to view site
  • 48. 10. This is your new blog! It has a new post and new comment and uses the default design template. You can edit or delete the post and comment or change design template in My Blog > Dashboard > Appearance Log In
  • 49. 11. This is your Dashboard. Explore features like Posts, Pages and Appearance in left column
  • 50. Click on Posts to edit Posts Click to Pages to edit About page, or add New ‘Permanent’ Page Click on Links to add a blogroll Click on Appearance to change Theme (in Manage Themes you can add Widgets or Custom Header) Click on Users to add users
  • 51.  

Editor's Notes

  1. Bike-lock maker Kryptonite finds out the U-shaped locks it's been making can be picked with a Bic pen. Bloggers continued to rail at the company until it finally agrees to exchange the old locks for new ones, at an estimated cost of at least US$10 million.
  2. Blogging is a weblog. It is a powerful new medium. Millions. Best ones are very political, humorous, corporate antagonisers.
  3. Dell's site was originally called "one-2-one" until a reader pointed out a porn site of the same name; it's now called "Direct2Dell”
  4. List of CEO blogs: