Recently I posted about Starbucks and its amazing transformation – a 200% rise in profits over a three-month period – and how it appeared to be driven by a) the return of Howard Schultz (undoubtedly) and b) an emphasis on great, best-in-class, employee and customer relations. True, S-Bux has more than five million Facebook fans and 700k Twitter followers, but the reality is that the ‘conversations’ that are taking place there – while no doubt translating into some level of sales – are in no way responsible for the dramatic turnaround in Big Coffee’s fortunes.
No, they are not. But it didn’t take very long before some socmed evangelista leaps on the bandwagon and attempts to imply that they are and – more – that Howard Schultz prefers social media over other marketing channels. I was alerted to this frightening opportunism by this post on Steve Virgin’s blog, which directs you to the piece in question – here – at BrandRepublic.
The argument, which is used to engender and foment one of my least favourite discussions (‘Why do some people get it, and others don’t?’ – more of it later), is based on an interview that Schultz gave to Marketing Magazine – which you can read here.
(Sorry, dearest blog snorkellers mine, I know this is a lot to be dumping on you, late on a Wednesday afternoon, but it is important in our crusade against the spurious lionisation of social media as a tool for business benefit.)
In the interview, Mr Schultz was asked ‘Which one (marketing) channel will take precedence?” – a leading question, of ever there was one – and his answer was really quite clever. He said “I think social media is a natural extension of our brand because we want to do things that are unexpected, and to speak to all sorts of people who are engaged in social media. It’s tough to measure but there is an incremental benefit to sales.”
And he’s right, there is an incremental benefit to sales – but notice he’s careful not to go overboard in terms of what that incremental benefit is. He also, tellingly, qualifies his answer by saying that social media ‘is a natural extension of (the Starbucks) brand’ – ie it is suited to the Starbucks brand, but not necessarily suited to other brands. He also, even more tellingly, doesn’t actually answer the question – he doesn’t say that social media is the channel that ‘will take precedence’. To put those words in his mouth is careless misinterpretation.
And, as promised – here’s a thought on that ‘getting it’ question. (Apparently, according to an Internet Advertising Bureau study, only a fifth of marketers see social as core to their marketing strategy.) Some brands, businesses or corporations don’t seem to ‘get it’ because they don’t need to. It is not right for their brand or business. It is not – in Mr Schultz’s words – ‘a natural extension.’ It really is as simple as that.