Yet something was missing – the hard business case for social media.  Like most companies, Cisco knew it was benefiting from social media, but it couldn’t prove it.

The launch of a new router using only social media would provide the proof Cisco’s marketers were seeking.

The results surprised even the social media enthusiasts. With this single project, the company shaved six figures off its launch expenses and set a new precedent for future product launches.

“It was classified as one of the top five launches in company history,” said LaSandra Brill, senior manager, global social media. “It was the crossing the chasm point for us in the adoption phase of social media and helped us get over the hump of internal acceptance.”

Router Launch: Promotion Through Play

Up to that point, the traditional product launch went something like this:

• Fly in more than 100 executives and press members from 100 countries to headquarters in San Jose, California
• Take a few hours of the CEO’s or an executive’s time to prep and present
• Distribute well-crafted – but static – press releases to key media
• Email customers
• Run print ads in major business newspapers and magazines

For its Aggregated Services Router (ASR) launch, Cisco aimed to execute entirely online leveraging social media, and in doing so, engage network engineers in a more interactive, fun way.

Cisco met its audience where they were – in online venues and the gaming world. Here’s how:

Second Life – The company built a stage with big-screen monitors, chairs for the audience and palm trees for its flagship launch event – entirely in a Second Life environment. It then piped in video of executives presenting the ASR.

Network engineers or the press could board their own “personal transport device” to surf through a virtual router.

To generate pre-launch buzz, the team held a concert in Second Life featuring eight bands over seven hours.

An executive presents the new ASR in a live Second Life event.

A 3D Game – More than 20,000 network engineers learned as they played a 3D game, wherein they “defended the network” using the ASR. (Research shows that 17% to 18% of IT professionals play games online every day.) Top scorers went on to a championship round with the winner bagging $10,000 plus a router.

“If they’re playing games, that’s how they want to engage and that’s who they are,” Brill said. “How do we make that applicable to what they do at work?”

YouTube – Video gets eyeballs. Cisco’s “Future of Shopping” is up to 3.3 million views.

www.youtube.com/watch?v=jDi0FNcaock

Additionally, the company heavily used video to educate customers and the media about the ASR, encouraging them to pass along links via social sharing.

Video conferencing – The company’s next-generation video conferencing technology, Cisco TelePresence, brought customers together at local offices around the globe. Executives back in San Jose could see the audience’s facial expressions and vice versa.

Mobile – A video datasheet engaged engineers on their mobile devices.

Facebook – Hardcore network engineers could connect on the Cisco Support Group for Uber User Internet Addicts. How addicted are they? One member shared that he networked his community swimming pool so he could stay connected poolside.

“It allowed them to connect with Cisco in a new way, and build preference and customer loyalty,” Brill said.

Social Media Widget – Cisco assembled videos, collateral and images in a widget format and embedded it into “social media” news releases and launch pages. Bloggers and others could spread the information easily with the embedded code.

Cisco blogs – Videos and other content engaged bloggers and customers, encouraging viral pickups.

Online forum – Cisco seeded its Networking Professionals Technology Community Forum with launch-related discussion topics and gave customers an “Ask the Expert” function.

The whole campaign spanned three months with the launch in the middle. During pre-launch, launch and post-launch, Cisco kept the audience engaged by encouraging discussion with and among its audience.

Reaching 9,000 People

Compared to traditional launches of the past, the ASR launch delivered eye-opening numbers. More than 9,000 people (90 times more than past launches) from 128 countries attended virtual launch events. Without travel, the launch saved an estimated 42,000 gallons of gas.

Plus, top executives spent only about an hour recording the video presentation.

Print ads were largely replaced with media coverage, including nearly three times as many press articles as a comparable traditional launch, more than 1,000 blog posts and 40 million online impressions.

Yet Cisco wasn’t the only one recognizing the impact of the campaign. In fact, the company earned a Leading Lights award for Best Marketing.

Taken alone, the reach of the campaign impresses. But consider this: The whole launch cost one-sixth of a similar launch that used traditional outreach methods.

Social Media: The New Norm

The ASR launch effectively tore the lid off social media at Cisco, which now truly walks its talk regarding the power of networks. Since then, social networking comes standard with every product launch and print advertising funds have largely moved to social activities.

And media like video, Facebook and Twitter keep customers and the press engaged continuously. Cisco now runs live public Q&A sessions showcasing John Chambers, Cisco’s chairman and CEO, as he answers questions coming in via Twitter.

Live TelePresence sessions bring executives and customers together for face-to-face virtual meetings.

The company’s chief technology officer, Padmasree Warrior, communicates with nearly 1.4 million followers on Twitter.

With subsequent launches, the company has realized even greater ROI – now seeing costs just one-seventh of those before. But the networking company keeps pursuing even greater returns with social networking.

“Now that we’ve got that buy-in, we need to just continue to show the success of one campaign over another,” Brill said.

Tools like Radian6 and Symphony help the core social media team, now eight people, measure the impact relative to cost of each campaign. After every campaign, the team just sets new benchmarks to beat.

“Social media doesn’t replace the need for white papers or sales interaction. I think it helps accelerate and shorten the sales cycle,” Brill said. “There are studies out there that people who are involved in communities and engaged with the brand are likely to spend up to 50% more than those who are not. We want to try to prove that.”

What success have you seen using social media for launches of new products or services? What worked well and what didn’t? Leave your comments in the box below.

#1: 50% of Small Businesses Say Lead Generation is Biggest Benefit of Social Networking

According to the “Small Business Marketing Forecast 2010” from Ad-ology, lead generation is the biggest benefit of social networking for U.S. small businesses.

Here’s the breakdown of respondents’ top benefits of social networking:

• 50%: Generating leads
• 45%: Keeping up with the industry
• 44%: Monitoring online conversation
• 38%: Finding vendors/suppliers

This chart shows the level at which the respondents found each social networking benefit useful.

Here’s a surprising statistic: While 67% agreed that social media is a good way to increase business, 39% of those surveyed said they did not plan to use social networking in their marketing plan in 2010.  This number is likely tied to the finding that 31% reported that their customers do not use social media, 29% stated they do not have enough time to devote to it and 21% said they do not know enough about social media.

Although more businesses are beginning to adopt social media strategies into their overall marketing plans, this report suggests businesses still have a long way to go before social media is fully integrated into marketing efforts.

#2: Online Forum Users Are Enthusiastic Brand Advocates

According to a recent survey published by PostRelease, people who actively contribute to online forums are overwhelmingly more engaged in “influential” activities – both online and offline – than people who don’t use forums.

What’s most interesting about these findings is that a forum contributor’s influence far extends past the walls of the forum.  Here are some statistics:

• 79.2% of forum contributors help a friend or family member make a decision about a product purchase – compared with 47.6% of non-contributors and 53.8% overall.
• 65% of forum contributors share advice (offline and in person) based on information that they’ve read online – compared with 35% of non-contributors and 40.8% overall.
• 57.7% of forum contributors proactively recommend someone make a particular purchase – compared with 16.9% of non-contributors and 24.9% overall.

There’s also an interesting correlation between forum users and blogging.  The study found that those who contribute to online forums are 10 times more likely than non-contributors to also publish a blog, and are 9 times more likely to take an active role in organizing an offline event or meeting for a group that originally met online.

For marketers who are looking to connect with the key influencers in their niche, the findings suggest that online forums are a smart place to start; however, marketers should proceed with caution. Justin Choi, founder and president of PostRelease, writes, “Online forums are great places to find enthusiastic consumers and influential brand advocates. The people in forums are often discussing specific products, sharing advice and asking each other for recommendations.  For marketers, participating in that discussion is not quite as simple as jumping into a forum conversation – forums have rules about that.  But there are tools for connecting in a way that’s transparent and relevant.”

Here's a snapshot of the behaviors and habits of people who contribute to forums versus the non-contributors.

#3:  Only 47% of Companies Experimenting With Social Media

A study by Gartner predicts that by the end of 2010, more than 60% of Fortune 1000 companies will manage an online community.  However, another study by ComBlu brings Gartner’s findings into question.

ComBlu’s study, The State of Online Branded Communities, shows how most companies do not understand how to engage within online communities and have no real idea of what their customers want on these sites.  Furthermore, most companies are unaware that people interact on these sites in different ways, so many companies are merely pushing data with little or no interaction.

The report reveals that when companies do get people to join their communities, their lack of engagement is extremely obvious to the sophisticated user.

“Instead of engaging the visitor, the brand drives them away because they offer little of value. Consumers today are sophisticated users of social tools and seek out communities to learn, share and interact. If these elements are missing, or there is no obvious organizing structure that fulfills specific needs, the ‘faux’ community will be quickly abandoned,” stated the report.

Here are some interesting findings related to brands and their online community activity (or lack thereof):

• 47% of brands are still in the experimental phase, meaning they “exhibit lots of social activity with little connection or integration with each other.”
• 24% are community ghost towns, meaning there is no engagement and very few members with no return visitors.
• 20% show a cohesive strategy and typically had robust engagement tools and multiple activities with an active participation from their community.
• 9% show community overload with multiple messages to the same audience, most likely causing confusion and diluting the message.

Perhaps even more important, the study points out that some of the most effective online community best practices were used the least.  Of the 135 communities they examined, only:

• 44 have a community manager. A community manager acts as the face of the community. Without one, there is no cohesive bond between the community sponsors and its members.
• 44 allow social networking. This practice allows community members to connect with each other and find shared interests, thus promoting further connection.
• 35 offer social bookmarking. This best practice gives community members a tool to personalize and aggregate their online experience at the brand’s destination site.

What do you think about these study findings? As always, we want to hear from you. Have you had similar results that support the data above or does your social media experience contradict the findings? Let us know your thoughts in the comment box below!

In 2004, Steven Cox sat down with a fellow musician after a gig. Cox’s friend and his wife were expecting their first baby and hoping to buy a house. But as a musician and private instructor, he struggled with making ends meet.

“Playing music doesn’t necessarily pay all the bills, unless you have a really big contract or gig,” Cox says. “My friend was hanging flyers in drugstores and music stores but still not finding enough students.”

Cox, once a full-time musician, worked a day job in IT and management consulting at the time. When he suggested his friend go online to connect with aspiring musicians, the friend confessed, “I’m a musician. I don’t know anything about that.”

With that, Cox began orchestrating TakeLessons.com.

Today, TakeLessons is America’s leading music and voice lessons company—a position reached largely through social media marketing.

He Built It, They Came

TakeLessons.com provides singing and music lessons in over 2,800 U.S. cities. Students register online for local, private, face-to-face lessons with a TakeLessons Certified Instructor™ after finding each other via a Match.com-style approach.

And like a dating website, TakeLessons.com takes some of the risk out of those in-person meetings.

“It can be difficult in music services to find reputable, trustworthy teachers, especially when you’re inviting someone into your home to spend time with your kids,” says Cox, CEO and founder. “Our customers turn to TakeLessons.com for our rigorous teacher hiring standards, and our online tools are second to none.”

To that end, TakeLessons.com only hires the best out there—just 4 to 5 percent of all teacher applicants.

TakeLessons.com must build awareness among two audiences: potential students (and their parents in some cases) and prospective teachers. With a background in fostering online communities—Cox formerly worked in strategy for a college social networking site—the CEO recognized the value of “getting people together to yak about stuff.”

In 2005, TakeLessons.com gave its audience just that, an online forum. The site not only allowed students and teachers to communicate with TakeLessons.com, but also each other—showing the power of online community.

“Teachers were sharing lesson plans and ideas,” Cox said. “Through the forum, they got quality guidance from each other.”

“So You Wanna Learn How to Play Guitar”

Since then, TakeLessons.com’s social media marketing has taken off. The company’s tightly integrated strategy now includes blogging, Twitter, Facebook and YouTube.

“We want people to consume the content and ideas in the form they want, when they want it,” Cox said.

TakeLessons.com blogs a few times every week on everything from conquering stage fright to recipes for vocal health to to “So You Wanna Learn How to Play Guitar.”

“So You Wanna Learn How to Play Guitar.”

Yet the team only spends two to three hours per week total creating, posting and responding to comments. Their secret? Guest bloggers.

“We’ve got a whole university’s worth of qualified instructors,” Cox said.

In 2009, TakeLessons.com began turning to its expert pool of teachers for content. At once, the company gives its instructors valuable exposure while saving time for the in-house staff, which simply edits posts and populates them with keywords.

A Blog-Twitter Duet

Quarter-over-quarter, blog traffic continues to increase, largely due to search engine hits and a Twitter snowball effect. TakeLessons.com micro-blogs on Twitter one to two times every day, directing followers to the blog.

Tracking traffic patterns, TakeLessons.com knows that blogging and tweeting continuously increase traffic back to the TakeLessons.com blog. The company’s approximately 650 Twitter followers share with their own followers via retweets.

Yet TakeLessons.com takes a more casual approach to Twitter than many.

“We decided to let Twitter build organically and let true followers become followers, so we don’t follow others to get them to follow us,” Cox said. “We’re trying another way by just writing what’s relevant to people.”

Feel-Good Video

www.youtube.com/watch?v=NS96nQHOW-E

TakeLessons.com lends itself perfectly to YouTube, the web’s third largest search engine. If you search for TakeLessons.com on the site, you’ll find inspiring, feel-good clips of student recitals, mini guitar lessons and teacher introductions.

For just $150 for a high-def Flip camera and a little bit of time, the company has generated tens of thousands of views that include the TakeLessons.com logo or name, generating valuable brand exposure and website traffic.

Most often, the company shoots video of “Show What You Know” recitals, where students of all ages play publicly for the first time. Each clip kicks off with a screen of the TakeLessons.com logo.

The company racked up some of its biggest views—nearly 50,000—with a video response to a current event. When a musician whose guitar was broken on a United Airlines flight spoke out via a music video (“United Breaks Guitars”), Cox responded with a video. He offered to lend his own Taylor guitar to the musician, and indicated the company had switched a recent flight from United to Southwest in solidarity.

Not everyone agreed with Cox, but he chalks it up to the nature of social media.

“You’ve got to learn to let things slide off your back if you’re going to be transparent and use this medium to get your message out,” he said.

Six Months, 1,000 Fans

Last but not least in TakeLessons.com’s four-pronged approach: Facebook, with nearly 1,200 fans. Popularity on Facebook exceeded initial expectations. Instead of reaching 1,000 fans in one year, they did it in just six months.

While staff does post links to its free “Teach the Teacher” web seminars, mostly the company encourages fans to share their own news and interact with each other. Fans post notes about their own upcoming gigs, arrange in-person meet-ups, find concert venues, or connect to play gigs together.

Here, TakeLessons.com gets back to its roots of community building. Teachers interact and encourage each other separate from the company.

Automating Customers’ Status Updates

In a smart move, TakeLessons.com automates Twitter and Facebook updates for its customers. When students sign up on the company’s website, they are asked about their goals. From then, they can keep up with their goals—maybe the five songs they want to learn—on the TakeLessons.com website.

TakeLessons.com then asks whether students want to install the company’s API applications for Facebook and Twitter. If so, they are asked what type of information they want to automatically post on those sites.

They can choose to automatically post each week that they’ve had a lesson, after the scheduled lesson takes place. Or, they might be asked if they want to post that they’ve met a certain percent of their goals.

“We try to talk less about us and more about them,” Cox said. “We’re not out pounding our chests, which we find works better in social media.”

The Payoff

In total, Cox estimates that TakeLessons.com spends no more than about six hours every week on social media marketing activities. From there, the various online communities create a viral effect.

“It’s growing beyond us having to physically manage everything,” Cox said. “We’ve become the conduit.”

For that six hours, and virtually no direct costs, TakeLessons.com sees impressive results:

• 39 percent decrease in cost per acquisition year-over-year
• 30 percent increase in teacher applications since a year ago
• Nearly 10 percent of website traffic from social media
• Sales directly attributed to specific Twitter and Facebook posts
• Speaking invitations
• Connections with several Fortune 100 companies
• Joint venture opportunities with two companies

However, Cox values the intangible benefits just as much, namely fostering trust and relationships with customers.

“We don’t want to hide behind a corporate image,” he said. “We want people to say, ‘Wow, there are people behind this idea and this company.’ This aligns with our core values and everything we do. People are getting to know who we are so they’re comfortable making a decision.”