Tweet about Shwaag from @bullseyevideo

What I found was a(nother) startup company trying to monetize word of mouth marketing on social networks. Shwaag.com, which is currently in Beta, says:

The Shwaag movement is all about everyday people becoming Champions of Social Goodness by utilizing their social networks to spread the word about great companies doing great things. In turn, these companies not only get recognized for their amazing products and services, but their work with charities, environmental causes and within their own communities.

The generous companies we work with also give back to Shwaag members. Their contributions of 100% FREE products and services called Shwaag, is just one more way of saying “thanks” to the Shwaag community. These products and services are distributed to our members who, in turn, can choose to keep their Shwaag or Pay It Forward.

What that means: “Hey, tweet or share our message, and we MIGHT give you something really cool for free!” Of course, when I say really cool, I mean it. Recently “shwaag’d” items include:

• Optoma PICO Pocket Projector
• Pulse Smartpen (I have one and it is awesome)
• Logitech® Squeezebox Music Player
• Weber® Portable Grill
• Panasonic® DMP-BD65 Blu-ray
• Vinturi Essential Wine Aerator
• Amazon Kindle
• DeLonghi BAR32 Espresso Maker
• Wacom® Bamboo Craft Pen Tablet
• Flip Ultra HD Camcorder

They also tell you what current and upcoming stuff will be, and who has won the recent stuff.

Screenshot of Shwaag.com Current and Recently Shwagg'd Stuff

The odd thing about the site is their tagline “Get It. Give It.” The folks at Shwaag spout a lot of fluff about good will and charity and the joy of giving…

“…we encourage everyone in the Shwaag community to enjoy those things that they are given, but to also spread that joy by giving to others. Giving Shwaag™ is meant to be an open expression of generosity. Our system will ultimately allow you to give Shwaag in a variety of ways: to friends and family, to random strangers or to charities. At times, you may even be given the option to keep Shwaag for yourself, AND give Shwaag away to someone else!”

…but ultimately, I’m left a little confused by the whole plan… honestly, if I’m going to spam my friends with a link promoting a product (I have yet to see anything relating to charities or the contributions to humanity that these companies are supposed to be making) its because I WANT THAT PRODUCT. I don’t want to send it off to a stranger. Call me selfish, but… lets be realistic here. No fund to provide firefighters with better equipment and resources is being helped by handing out an Amazon Kindle. Amazon is getting tons of tweets talking about its product and Shwaag is making money ($99-$599 + the product – though they seem more eager to sell their idea or at least license it than anything else).

Shwaag claims to be a better way to distribute products directly to consumers than by companies themselves – a claim I can see both sides of. Shwaag will have access to a diverse group of free-hungry fans ready to tweet anything you ask them too. A brand with its own following will also have rabid fans who already like the product line and will retweet any freebies as well. Both will really rely on the ancillary readers to continue retweeting and garnering exposure for the brand. In the case of Shwaag, they are promoting themselves in addition to the product. But if a company launches the campaign, they focus all the attention on their product/brand and drive traffic to their website (Shwaag doesnt even link to a product/company’s website).

If you read through the Terms & Conditions (who does that?) you will learn a little more about the site that is currently not viewable to non-members – like the other ways to enter to win shwaag:

“…sign in using your username and password. After reviewing the “Featured Shwaag” or “Shwaag of the Day” Giveaway, Click on the “Shwaag Me” button. You will then be taken to a landing page that will display the details for that day’s Challenge, including, but not limited to; a traditional random drawing; a series of multiple-choice trivia; and chances to increase odds by posting to social media sites such as Twitter and/or Facebook. The number of options in each Giveaway may vary, depending on the design of that day’s Challenge.

Traditional Random Drawing: A Traditional Random Drawing Trivia Challenges: The content of the questions and multiple-choice answers for any particular Giveaway may vary from Member to Member. Use your mouse to click on the answer you wish to submit. For each correct answer you submit for a question about that day’s Featured Shwaag, you will receive (1) Entry. All submitted answers are final. After you have finished playing, the amount of Entries you earned will be displayed and automatically credited to your Account.”

Since the website is still in Beta, you have to request an invite to be a member, so you can’t sign up immediately if you have your eye on that projector. Right now they are focusing on their home state of Arizona, and so some shwaag items (like restaurant gift certificates, services, and experiences) are limited to what state you live in. You also have to have a Twitter and/or Facebook account, duh.

Shwaag Request Invite

So what do you think? Will you be sending a request for invite? (I did.) Do you know of other sites like this? Do you think this would be a valuable tool for your product / brand? Leave a comment and let me know!

You can find out more info and connect with Shwaag both on Twitter and on Facebook.

10/12/10 UPDATE:

So I did eventually receive my invitation to join Shwaag.com, the email read “Hi Corrie, We got your request for a Shwaag Invite Code, and immediately broke into a “Happy Dance!”  Now we’re even happier, because we have new member availability.  We know it may have been awhile, but that’s because of all the hard work we’ve been doing behind the scenes to make sure we were ready for you!  We’d like to welcome you to the Shwaag Movement!” -They also told me they opened up an invite code for me to share with a friend, but as I don’t see a code anywhere or anything on the site to indicate that, I assume they just want me to tell all of you about it and invite you to request an invitation like I did originally.

Once you are signed in and have created your basic profile, you get started by clicking the red “Get Shwaag’d” button under the featured product. You are then taken to a product page of sorts.

You can see the product on the left (in this case, the pocket projector) and the description on the right. In the top right corner is a blue box showing your number of Entries. If you REALLY like the item, Shwaag gives you the option to “Buy Now” which when clicked, takes you to an Amazon.com product page where you can buy the item in question.

After clicking the red “Shwaag Me” button, you just have to agree to their rules to be entered to win – this is the “Traditional Drawing” way to win described in the post above.

Now we get into the social media side of this whole process. To earn BONUS entries (and increase your chances of winning) you can post about this shwaag item to your Facebook and/or Twitter account. The blue box in the top right hand corner tracks how many entries you have based on your activity. I imagine this is also where any games or quizzes or surveys would be where you could also win extra entries (as described in the post above.)

–Oh, and just fyi, when it comes to high end items (like those available on Shwaag.com, federal law requires you to pay taxes – whether you bought them or not. So Shwaag will send you a 1099 form for “any Shwaag given out to any one individual over the course of our tax year, if the combined retail value of that Shwaag exceeds $600″.–

In addition to my invite to Shwaag.com, I also received my first newsletter which addressed my initial query as to where the so-called charitable causes were… Overall, I’m still not convinced that the chance at free stuff (albeit cool stuff) is worth the effort and spam that these kinds of promotions entail… What do you think?

I personally attended Media 2.0 Day and Gov & Org 2.0 Day on June 15th and 16th, 2010 respectively, live tweeting, note-taking, recording audio, and snagging quick video interviews with various event attendees. Below you will find some of my takeaways from the sessions I attended.

GOV & ORG 2.0 DAY

“Energizing Your Base and Online Community Growing•” In today’s climate, organizations are only as good as their supporters. But with so much noise today, how do we ensure our message is being heard and really reach and inspire our core community? Panelists spoke about tools and techniques they use to successfully find and motivate their audiences online and offline. Panelists included: Alan Rosenblatt from Center for American Progress, Roz Lemieux from Fission Strategy, Charles Lenchner from New Organizing Institute (NOI) and Jesse Posilkin from Save our Safety Net; Moderator: Shireen Mitchell

• When looking at your online presence, you must ask yourself, “Does this online content piece create value for something the organization cares about? Can you quantify it? — You CAN track things! Compare time spent and results vs. what it would cost to do something similar in traditional media (ads, buying email lists, etc).” – Charles Lenchner
• “They are your base, they ARE energized! Find out how they are communicating; Tell them what your plan is and share your results; Connect them with each other!” – Roz Lemieux
• “The majority of people you are working with will never come to your website… you have to go to where they are.” – Alan Rosenblatt
• “Social media is about social interactions. It requires you to talk to them and them to talk to you.” – Alan Rosenblatt
• “You have to be ready and have your network in place BEFORE a crisis happens.” – Alan Rosenblatt
• “We used the internet and social media to document and promote what we were doing in real life.” – Jesse Posilkin

“Social Media 202: An Advanced Discussion in Online Community Building“• Recent client case studies were used as a launching point for discussing building online brands and community with a special focus on using social media to reach print and online publications. Panelists included: Deb Lavoy; McLean Robbins; Kristina Libby.

• “ROI of social media relates to what the goal of that initiative is.” – Deb Lavoy

“Social Media ROI“• Many organizations struggle with how much they should invest in social media outreach and management as well as how to set goals and measure success. Panelists offered models for how to consider social media in your overall marketing efforts. Panelists included: Carie Lewis, Allyson Kapin, and Danielle Brigida.

• “Find out where your constituents are and establish a [social media] presence there.” – Carie Lewis
• “Stay on top of current trends, using new tools (like foursquare), but avoid ‘shiny object syndrome’”. – Carie Lewis
• “Train and have guidelines (like a social media policy) for your staff.” – Carie Lewis
• “Take an integrated approach. Don’t just rely on one venue (like Facebook)… tie all of your campaigns together.” – Carie Lewis
• “LISTENING is the first step in social media.” – Carie Lewis

“Getting Strategic With Social Media – Combining the Right Approach with Integration and Measurement to Ensure Success” Panelists included: Wendy Harman, Jaime-Alexis Fowler, and Jordan Viator.

• “Success = Listen, Respond, Build Community, Engage.” – Wendy Harman
• “What works for others may not work for you… Once you choose yoru goals, you must use the right tactics.” – Jaime-Alexis Fowler
• “Social media doesn’t exist in a vacuum.” – Jordan Viator

Keynote with Cammie Croft and Charlene Li

• “We now have a culture of sharing- and its impacting everything we do.” – Charlene Li
• “How transparent/open do you need to be? As much as it takes to accomplish your goals and inspire people!” – Charlene Li
• “You can’t six sigma your way into innovation.” – Charlene Li

(Check out Digital Capital Week 2010 – “A Slice of DCWEEK” for video interviews of event attendees!)

You may also be interested in Digital Capital Week 2010 – Quotes from DCWEEK Media 2.0 Day.

Short answer? YES.

The internet and consumers don’t care if you have an official representative or not – they are still going to talk about you. They will review your goods and services on 3rd party sites like epinions.com, ConsumerReports.org, Yelp, TripAdvisor, TestFreaks, and the myriad of other sites that have cropped up to do one thing – become the go-to place for consumer research and reviews. A recent study by BIA/Kelsey Group revealed that 97% of consumers now use online media when researching products or services in their local area.

Victoria’s Secret, the infamous underwear maker, has two “Fan Pages” on Facebook. One for the regular store which boasts over 3 million fans and one for their Pink line with over 2 million fans (a year ago it was at 900,000). Fans can watch videos, browse merchandise, enter contests, talk about products, and upload their own photos. Victoria’s Secret is even celebrating their 3 million fan status on Facebook with a limited edition panty that the FANS got to help design and vote on. By actively participating in what their demographic is doing, Victoria’s Secret remains relevant and accessible while keeping a hand in how their brand is represented. In addition to the official and authorized Fan Pages, there are also over 800 other Victoria’s Secret themed Fan Pages and over 11,000 Groups on Facebook alone! Corporate Victoria’s Secret knew they needed an “official” presence to combat and/or complement all of the dialogs going on about them.

Its hard to put a price on brand exposure, but by participating in popular social networks or hosting a targeted community for customers, companies are bringing their messages to waves of fresh consumers while building brand recognition and increasing brand awareness. Consumers are already actively rating and reviewing products, services, companies, people and even each other. Companies know that they need to have a hand in the way their brand and products are portrayed, and so are joining networks and creating their own. Grocery store chain Whole Foods has over 1.7 million followers on their main Twitter feed, but many stores have their own accounts as well creating and controlling a giant network around the hip trend in natural and organic foods.

So, yes, social media CAN hurt you- if you put out a terrible product, people will rant about it. If your technician falls asleep at the customer’s house – chances are that video will go viral (like the Comcast technician). But if you respond to your customer’s complaints, approach social media with an air of transparency, and engage in an open dialog with consumers, you can create a rabid fan base who will talk about you, promote you, and defend you.

Below are some statistics on consumer reviews as they affect sales:

• The Shop.org State of Retailing Online study, conducted by Forrester Research, found only 26% of the 137 top retailers surveyed offered customer ratings and reviews, but 96% of them ranked customer ratings and reviews as an effective or very effective tactic at driving conversion. (Forrester)

• Consumers say that word of mouth is still the number one influencer in their apparel (34.3%) and electronics (44.4%) purchases (Retail Advertising and Marketing Association/BIGresearch Study, November 2008)

• Online social network users were three times more likely to trust their peers’ opinions over advertising when making purchase decisions. (“Social Networking Sites: Defining Advertising Opportunities in a Competitive Landscape,” JupiterResearch, March 2007)

• According to a global Nielsen survey of 26,486 Internet users in 47 markets, consumer recommendations are the most credible form of advertising among 78% of the study’s respondents. (Nielsen, “Word-of-Mouth the Most Powerful Selling Tool”)

• 70% of online consumers said they use the Internet to research everyday grocery products. (Prospectiv, 2008)

• The majority of electronic consumers researched online for an average of 12 hours before making a purchase, according to a Consumer Electronics Association and Yahoo! Study released in 2006, even though the majority bought their purchases offline through retail stores. Seventy-three percent searched the net because it was easier to compare prices. Sixty-four percent simply found more variety online.

• According to new research in December 2008, UK company 1&1 Internet found that two-thirds of online shoppers carry out internet-based research about retailers before making a purchase and nearly half of UK shoppers read online reviews or recommendations about specific products before buying them.

• The two leading reasons people contribute content to social shopping sites are the need to feel part of a community (31%) and recognition from peers (28%). (IBM Institute for Business Value, August 2007)

• When asked what sources of information they are “very likely” to consult before making a decision about their entertainment options, 62% named Web sites with user reviews as their top choice, even beating out a knowledgeable friend (59%). (Marketing Sherpa, July 2007)

• 81% of Online Holiday Shoppers Read Online Customer Reviews (Nielson Online, December 2008)

• 86% of consumers read online business reviews before making purchasing decisions; 90% of whom say they trust these reviews. (Kudzu.com survey of 600 users, December 2008)

• 91% of millionaires say they always or often look at reviews before buying luxury goods; 68% of ultra-affluent shoppers use consumer reviews. (Unity Marketing/Google study, reported in AdAge October 2008)

• Satisfaction for those who recalled customer reviews on the retailers’ site is 10% higher than those who said there were no reviews offered. Loyalty increases, too: 7% higher likelihood to purchase online, 8% greater likelihood to purchase from the retailer next time they’re buying similar merchandise and 11% greater likelihood to recommend the site to others. (30 UK Online Retail Satisfaction Index, January 2008, ForeSee Results)

• 83% of shoppers said online product evaluations and reviews influenced their purchasing decisions. (Opinion Research Corporation, an infoGROUP company, July 2008)

• 74% agree—including 14% who strongly agree—that they choose companies and brands based on what others say online about their customer service experiences, the survey shows. (Society for New Communications Research, May 2008)

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Studies and statistics continue to show that using video on your website not only improves online visibility and adds to your company’s credibility, but it also engages customers in a way that increases conversions. In fact, recent case studies by Treepodia show that videos help sell products even when customers don’t watch them. Shoppers who viewed the videos were MORE likely to buy than those who did not view, but -based on multivariate testing- visitors who did NOT watch the videos converted at a significantly higher rate than those who saw the same product page without the option for video viewing. This gets back to the credibility benefit. Customers assume that if you believe in your product or service enough to show it in detail and explain it thoroughly, then you have nothing to hide and it must be “good”. (This is another reason why good website design is important. Having a beautiful and easy to use website makes it look like you invested in that asset and to do that you must be doing alright- you look more legitimate. Video is an added asset. Its comforting.)

When it comes to actually surfacing your video on your website, you can either link to the video hosted elsewhere (a dedicated video page, a 3^rd party like, Youtube, etc) or you can actually embed the video on that product’s page so viewers simply hit “Play”. Mark Robertson, the Founder and Creator of REELSEO references Treepodia in saying “If you add a simple link to video from any given product page, you can expect something between a 5%-15% video view rate, while a video player embedded on the same page will deliver a view rate ranging from 10%-35%.”

But don’t limit yourself to simply product videos! There are lots of benefits to having videos on and off-site about your company.

You may also be interested in reading: 3 Basic Steps for Using Video to Better Market Your Business Online