Last week I spent a few days providing social media training for a company that probably provides social media services for more clients than any other company in the country, if not the world.
Where was I? Well I wasn’t working with a hotshot PR firm, or a branding agency. In fact, you’ve probably never heard of the company. But they currently provide and execute social media strategies for well over a thousand clients. The company currently creates over 2,500 blog posts a week for over 1,200 clients, and adds 30-75 new ones every month. And their renewal rate for those clients is right at 90%.
I was in Atlanta training with the good people at Network Communications, Inc. NCI is the largest national publisher of local printed and online magazines for the real estate market, and my guess is they probably provide social media services for more clients than anyone else in the country, if not the world. They offer social media services to property managers, realtors, architects, interior designers, and contractors, just to name a few of their client areas.
And they’ve gone from 0 to 1,200 social media clients in just a year’s time. All while providing an extremely affordable social media solution for clients. Those clients get a blog (with 2 new posts every week), a Twitter presence, and a Facebook page, for usually $350-395 a month.
Blogging is a big part of what NCI is hanging its hat on as far as driving success via social media for its clients. And that’s why I was in Atlanta last week, to work with 60 or so of the company’s bloggers on how they can better create blog posts that help them reach their client’s objectives.
What struck me in the weeks leading up to the training sessions, and during my time with the team in Atlanta, was that the engagement level on the blogs was often non-existent. Few, if any comments, no retweets, no ‘signs of life’. In fact, I was thinking to myself that many ‘social media people’ would look at these blogs, see little to no engagement, and view them as failures.
But obviously they aren’t failing their clients, who keep jumping on board. So how does NCI create value for its clients via blogging?
“Our goal is to drive leads for clients on the web.” explains Adam Japko, the Senior VP and President of the Home & Design Area for NCI.
Customer leads for clients. This is one of the points I keep stressing to those of you that are trying to get buy-in from your boss for your social media ideas. You have to make the business case for social media. NCI is doing that. They are delivering a tangible return on their client’s investment. As a matter of fact, Adam shared a case study with me from one of their clients that I will be sharing here with you on Thursday. Let’s just say this client saw a pretty huge cost savings from letting NCI guide its social media efforts.
Now everything is not perfect sledding for NCI. What they’ve done in the last year is literally invent a business model. There’s few if any other companies that are providing social media services on such a widescale level. So NCI is having to invent the template here, and that’s created some problems for them over the last year.
One of the company’s biggest challenges was that they grew quicker than they expected. “Our volume of clients came in faster and bigger bunches than anybody would have imagined. We have hired and trained more than 70 people this year as we ramped” explains Japko. I saw that NCI is still dealing with managing the workload for workers, as well as shuffling people around and trying to find the best fit for everyone. There are clearly growing pains at work here, but they ARE growing.
And I don’t see that growth slowing down any time soon, in fact, as they continue to improve their existing business processes, the growth should only accelerate. Thanks again to Adam (who is also a wine buff with a great blog), Rick, Ed, Keith, Melissa, the bloggers, OCMs and all the good people at NCI for having me last week. I hope to make it back again soon, and thanks to my dear friend Charity Hisle, who is also one of NCI’s shining stars, for the picture to this post.
(Disclosure – NCI is a client, but did not pay me to write this post. I wrote it cause I think their business model and how they are breaking new ground in providing a low-cost social media solution to clients is pretty interesting. Plus, I enjoyed meeting all the managers and executives, as well as the bloggers and OCMs such as Amanda, Keenan, Craig, Justin, Natasha, Jo Anne, Deidre, Ashley, Lynda, Kali and the rest of the NCI team.)
Mack,
I am really glad that you wrote about NCI and their business model. I look forward to reading the case study that you mentioned. Here is my question: Over the past year or so I have read a lot and heard social media “experts” or “strategists” caution about the efficacy of hiring someone else to “speak” for you and your business in the social media arena; however, your post would seem to contradict this…it appears this solution is a win-win for both NCI and their clients. Can you comment on this?
Also, just a technical observation. When I click on your link to Network Communications, Inc, I am taken to their site; however, it does not open in a new browser and when I try to click back to your site with the back button it does not work! I was viewing this in IE8.
Talk to you soon.
Judy
Hey Judy! That’s a good question on who should speak for the company, but I should clarify again that NCI didn’t pay me to write this post. I offered to, because I think what they are doing is interesting, and I think in a year’s time their work will be getting a lot more coverage than it currently is. I often have clients ask me to cover them here, or at The Viral Garden, and I won’t do that unless I can make the post be of value/interest to y’all.
But to answer your question, I see this post as more of simple blogger coverage than ‘speaking for’ NCI. And as for your question on IE8, I am sorry but that is way over my head. I will see if I can find the answer though, thanks for the comment Judy!
Mack,
I understand NCI didn’t pay you to write this post. That was very clear, I also understand the importance of writing your post. It is very educational for all of your readers. I think that what I was trying to ask, Christa and Alexandra covered beautifully in their comments – that is assisting clients with their Social Media campaign, when the client has no time to handle SM in-house. Is it good business or not? It seems to be working nicely for NCI.
P.S. Regarding the IE8 bug- your link to NCI works fine in FF and Chrome. It is only in IE8 where the problem exists.
Judy I think that a lot of companies see social media as simply being advertising/marketing for their business. And since they already pay ad agencies and marketing firms to handle their traditional marketing efforts, I believe they feel that they should just pay someone to handle social media. So they don’t WANT to be engaged, and want someone like NCI to handle everything for them. But that’s mostly because they don’t understand how their engagement could improve the quality of their social media initiatives, and I think this is why client education is so vital.
Does that help answer your question?
Mack,
Yes, your answer is very clear. I want to make sure I can balance this with our clients. Educate them, as you say.
Thanks for your insights.
Judy
It was great seeing you Mack! Thanks for the blog post!
Loved seeing you Charity, and can’t wait to see you again soon!
I am so glad to be reading about this. Blogging and social media services are something I have been offering to my clients, which are start-ups whose small staffs aren’t sure enough about social media to commit time and energy to it themselves. I was not sure if this was the right thing to do; shouldn’t social come from inside? But I do indeed build social into the marketing plans I write for clients, and my hope is that as they start to see results, I’ll either be able to hire staff, or coach clients on DIY social. Thanks for highlighting NCI!
Christa that’s a great question. I don’t think there’s a one-size-fits-all answer. Ideally, I’d like to see the client super-engaged in their social media efforts, but many don’t have the time for that, or don’t want to make the time, and want to hand it off to someone else. I think from our end as consultants or even with a company like NCI, we need to educate our clients on the value of their participation. We need to make sure they understand that the time required will result in better results on their investment, and show them how this will happen.
Mack,
I’m so excited and impressed to see what NCI is doing by helping their clients create content. That is one of the biggest roadblocks we run into (we’re in the interior design management industry) with our social media clients. It sounds like they’ve built a tremendous, scalable model that keeps very talented writers in work and keeps clients who need frequent blog updates fresh.
We have some mutual clients with NCI for other areas of our management business and the one area that I feel they are not as strong is in the engagement factor through the tools besides Facebook. Much of it is automated and spit out. From your perception, do you think that this is still better than not being present on Facebook (et al) at all?
Thanks again for this great post!
Alexandra Gibson- @gibsondm
Alexandra that’s a good question on engagement, and I think it’s an area that NCI is working on. In fact, that was part of the reason why I was brought in, to help their bloggers on making the content creation process more efficient, and the content they create more engaging. The intent is definitely there and they are very passionate about doing the best job they can, and I think they will only continue to improve in this area.
As for your question about Facebook, I tend to lean toward it being better for a company to have a presence there and simply repost links, than not be there at all. In fact, the bloggers at NCI told me that often they get more engagement on a client’s Facebook page, than they do on their blog. And I think that’s simply a byproduct of there being half a billion people on Facebook.
Thanks for coming Mack. We learned a lot and you were so helpful. Can’t wait to have you back and talk progress. Onward and upwards :O)
Thank you Ashley, loved your insights during training, it was really helpful!
Mack, thank you for such a great post on what NCI is doing here in Atlanta. I have been awed by their story and success with the sherpa program. What they are walking out as they ramp up provides some very valuable lessons for everyone.
I appreciate the care and candor in your story today…what NCI has undertaken is truly groundbreaking, and not without some growing pains and challenges. You’ve shed some light on this and provided some valuable commentary and insight. Charity is a dear friend to me as well…this, and the fact that I’m in the business of social and in Atlanta myself make this a valuable story to me! I look forward to your post on Thursday.
Thank you James! One of the reasons why I wanted to write this post now is because I have a feeling that what NCI is doing now will be a lot more visible in say a year’s time. So I wanted to share their story and get out in front of the parade 😉
Hope we can meet the next time I am in town!
@James – I know you face similar challenges regarding scale and growth. This is new territory for both of us and our organizations. Hopefully 2011 will provide us fewer challenges and more solutions! I look forward to seeing you next month during #smatl.
Yes, I’m having a grand time here at AroundAbout Magazines! We are certainly not looking at the same scale as NCI, but I’m also sure that much of what we all deal with looks and acts very similar…. it’s all very challenging…and therefore fun, right?! I look very forward to seeing you soon as well Charity. Cheers and Amen to your hopes for us all in 2011
Hi Mack,
I had heard bits and pieces from Charity on NCI (months ago, though!), so it’s nice to get more in-depth insights.
It seems to me that this model could work in any industry.
I guess my question is that if a company offers 8 blog posts a month, plus Twitter and Facebook content/support (did I read that right?) at $395/month and it’s a model that obviously works, why should any company interested in social media hire an agency, consultant, etc. that charges $150-300 an hour? (Well, the exception, of course is that there isn’t an “NCI” in their industry so they’ll need to hire an agency or consultant).
Does this give other industries the impression that social media is only valued at $395 a month?
Is there something I am missing here?
Thanks Mack!
Beth Harte
Serengeti Communications
@bethharte
Beth those are great questions and I think this and similar models will REALLY strike up an interesting debate in the coming months.
To me, if you can do the work for $395 a month, and I want to charge $3,950 a month, then the onus is on me to prove that the extra $3,700 will be a worthwhile investment. I think moves like this will help weed out the pros from the hacks, when it comes to social media consultants and agencies.
Now as to your other question about does a $395 price point support the idea that social media is free or cheap, I agree, that worries me a bit. But honestly, if NCI hadn’t come up with this model, it was only a matter of time before someone else did. In fact, I think you’ll start to see companies trying to copy this and expand upon it in the coming months.
Maybe it means that social media consultants will have to adjust their offerings, moving more from strict content creation, to training and advising companies like NCI that are trying to implement and improve these models?
There are a TON of potential ramifications, but my gut tells me that the smart people that know their stuff (like you) will be the ones that really benefit here. The creme always rises to the top.
Absolutely, the onus is on the agency, consultant to justify their services. That’s just good business. I worry more about the idea that social media is cheap. But, then again, people have been outsourcing blogging and content for a lot cheaper than $395!! 🙂
I think NCI’s work also goes to show that the average consumer doesn’t care if something is “ghost written” or not. They just want/need information to help them make an educated decision. And renting a place to hang your hat and call your own can be a big decision for some people.
At then end of the day, it’s not our first time in this rodeo…the same thing happens with website development and creative design. I remember the days when I paid an agency $5-10K for ad development. Now I can get an ad for $100 bucks on a crowdsourcing site. Times have certainly changed!
I just wanted to bring it up as a discussion point, thanks Mack!
Beth,
I think something to consider here is that NCI’s DigitalSherpa service is basic and largely focused on content marketing (to-date). The bulk of the actual social networking is the responsibility of the client. Hiring an agency may be a better choice for an organization that requires additional networking and monitoring on social sites such as Facebook and Twitter.
What I’m trying to say is that we still need you Beth, and professionals like you! We should catch-up soon!
Mack – I think you’re onto it. Consultants will need to evolve upwards into higher-value offerings (strategy, creativity, network-building, education, etc.) Let’s face facts – at a CERTAIN level – the level NCI is working – writing blog posts and “churning out” social media basic content can be commoditized. Not every company can or should use that approach but it will be effective for some, for the purpose stated (generating leads). And that’s OK. Let’s get on with the more important aspects…
Mack,
First, thanks so much for your powerful contribution to our team and we look forward to continued collaboration. You shared perspectives with our team that has been immediately useful.
It feels a little strange to read about the work we have been doing here for the last year and a half, simply because we have had our head down as we develop a scalable business model that drives internet marketing results for our local clients. Your ongoing reinforcement to companies about staying focused on business results from their social media program has been reinforcing to our entire team. It is what we always try to stress with our clients.
Social media means so many things to so many different people. While we work with more than 1200 clients, there are hundreds of reasons businesses like these begin deploying social content strategies. We believe there is one main reason to spend the time or money deploying content over the social and Google web. Drive leads! Social Media marketing is an extension of a company’s internet marketing strategy that relies on search and content sharing strategies to drive attention to themselves with consumers that are in a position to do business with them. So many apartment marketers started out, as we also did more than a year ago, thinking the primary benefits of social media are in resident retention, but we have learned along with our clients that reliance on simple networks like Facebook and Twitter for resident retention has a low pay off, and that deploying a blogging strategy for resident retention is an effort out of proportion to the return. The main benefit, which requires a very specific, local, and authentic SEO focused content strategy, is to engage the broader community around the apartment community, increase traffic to the community’s website and blog content, and to drive new lease leads to the community marketer. The resident retention benefits are simply a by-product of that, and as such, requires the right sized social media program to be blog-centric, *frequently* creating very specific content with very clear guidelines.
If this was about social networking primarily using Facebook or Twitter, the program would require local participation and outsourcing becomes ess necessary. But in a lead generating content creation program, the amount of time and expertise can be insurmountable for local businesses and communities, and outsourcing starts to make sense since content marketing generates measurable results when the client and the service provider stay connected.
Anyway, it was fantastic to tap into your perspectives this past week and we are excited at NCI to have begun our conversation together.
Adam Japko
President
DigitalSherpa
Network Communications, Inc.
Adam thanks for commenting, you and Tami helped add some valuable clarity around the work and offerings NCI provides. And I’m definitely looking forward to working with you and your team in the future!
Great post title Mack!
LOL! Ok this is my favorite comment, thanks Lynda 😉
Mack,
Wow, it was great to know that our Online Community Managers at NCi had the opportunity to train with you last week.
I was fortunate enough last year to hear you speak at the Optimization Summit in Dallas on how to be a Social Media Rock Star! You Rocked!
Thank you for the great post about NCl’s newest media offering Digtal Sherpa/ Community Sherpa.
Thank you Michelle! Yes the Rockstar presentation is my favorite 😉
Great post, Mack. It was wonderful meeting you and thanks again for all of your help!
Thank you Natasha, was great meeting you and love the writing you are doing on your client’s blogs!
Hey Mack,
I enjoyed your observations in your post, and the conversation that has ensued here. As you know, I work with NCI, so I am delighted that they had the benefit of spending time with you, as it will only help to strengthen what they are doing. One thing that I would like to add to the mix, particularly as it relates to Beth Harte’s comments/questions: NCI has been in the business of helping its clients generate content and leads via print and online channels in the housing industry for 30 years. Social media marketing was a natural extension to what they were already doing for their clients. In other words, as the housing market shifted, and social media tools became more prevalent, NCI with its 40,000+ customer base and developed expertise in lead and content generation saw the need via proprietary research to help clients, and prospects, leverage these tools for their marketing programs. But, the research also identified the lack of knowledge or expertise on the customer’s part as how to establish a social media footprint and maintain it. Citing these needs, it was an innovative move on NCI’s part to develop a scalable, creative, affordable solution to help their clients’ businesses, particularly in a complex marketplace. The pricing for these services came from an already developed “muscle” but more importantly from knowing the clients they serve, as well as their industries, and knowing their business objectives. As Adam stated, it was eye-opening to see just how many companies have signed on in such a short period of time. But even more thrilling, for me, is to see how many businesses have quickly benefited from having a turn-key solution that helps get them started in social media. For most, that is the single, hardest part. As you know, Mack, being everywhere your customer is, is vital in today’s market, in any industry. Marketing departments everywhere are struggling with the resources they have — whether they are human or cash-related. Companies like NCI are innovating to develop new business models that organically help their customers build deeper connections with their customers, and I hope folks understand it’s not one-size-fits-all, but there was a lot of thought and research behind it, and there are valuable take-aways regardless. Beth was definitely right when she stated that the average consumer doesn’t necessarily care who wrote the information in a blog post or a Facebook update, as long as it’s good and relevant to them. The important thing for any brand is being present anywhere your customer or prospect is. Social media is one of those things that can be mysterious and daunting depending on your age and size of your business, for example if you’re an interior designer, a real estate agent, or a property manager, and these are exactly the types of clients, generally, that NCI provides service and value to every day. Hope that helps to provide clarity and context on the pricing questions.
Best,
Tami
Thanks Mack, I’m already incorporating some of your ideas into my posts.
Thank you Joanna! Please let me know if I can help!
Very interesting post and comment string. NCI is evolving with the consumer which is smart. Their clients need a “simple/ turn key” solution for a fairly complex issue and they seem to be onto something. It does come down to generating more business (or leads) for their clients and NCI gets it. It think that being found is one challenge this addresses but what social media does not address as well is how to increase the number of anonymous web visitors that take action. Could you comment on what thoughts you have on calls to action?
Hey Frederic! Glad you mentioned Calls to Action because that was an area I stressed last week during training with NCI. One of the points I made was that if you create content that has value for someone else, then you have EARNED the right to ‘ask for the sale’ or add a call to action. And that call to action could be literally asking for the sale, or it could be asking for a comment or asking readers to please share the post.
But I think too many bloggers as hesitant to add a call to action. Many think it’s too ‘salesy’. I don’t think you need to add a call to action in EVERY post, but I do think it’s a good idea to work them into as many posts as you can, and to marry the appropriate call to action to the goal for the post.
For example, if I am a home contractor and I write a post that shows you how to do a kitchen makeover (and that post is valuable to you), then I should feel fine in adding a call to action at the end of that post. It doesn’t have to directly ask for your business, I could say ‘If you have any further questions about remodeling your kitchen that I can help you with, please give me a call at…’, or something similar.
Make sense? My general thought is that most bloggers don’t use calls to action and EFFECTIVE calls to action nearly as often as they should.
Yes it makes sense. We also included a live chat feature in our blog and are getting into conversations that way. Since it is our business it made sense to use it and see what would happen… http://www.engageconnectconvert.com
Mack,
Great post, I didn’t know NCI was doing social marketing. Anyway the reason I decided to comment was not so much the post but the comment about calls to action.
I’m in 100% agreement with you on people not asking for the sale often enough. It’s not just bloggers though, it’s all websites. There are many you can’t easily figure out how to contact the owner of the site if you wanted to buy something from them.
It’s bad marketing and happens all over online and offline.
Thanks again for the post I enjoyed reading about NCI