Axel Schultze

DELL, success story or flop?

comments 2 comments  |  2315 reads

"DELL makes millions on Twitter" how cool is that. OK sounds cool and as a social media guy I can take a success story any time. But this one? Not so sure.

What is it what DELL does? They give out promo codes that are only available in Twitter to get a discount for your next DELL. Is that a "social media marketing campaign" - it looks like but it has nothing to do with social media. It is one of those very unfortunate stories. It has nothing to do with social. It has nothing to do with conversation, it has nothing to do with dialog between business and their customers, there is no collaboration or sharing - all there is is a stupid discount campaign that was moved from traditional media to social media.

Why is it bad? Because you don't need social media to do that, you can give out discount coupons on gas stations, on toilets, in news papers - anywhere. But what is even worst: If a customer wants to leverage the offer, they have to go to Twitter, find out where to get the key, then buy the computer. Why would you do that to your customer? Are we all insane now and accept this as a pleasant customer experience? And here is the worst of all: All it did was it took profitability away from DELL, because they had to give a discount to incent a customer to go through a maze to finally buy the product.

And just a short comment on math. $3 Million for a $30 Billion company is 0.001%. $3 Million from 40 Million population is also nothing. It' s like Dell Spain would do $3Million in revenue. So I vote for a tripple flop:
1) Flop because financially just not successfull
2) Flop because it has nothing to do with "social"
3) Flop because Dell marketing thinks customers are like rats you can send through a maze

Hey Michael (Dell) come on, you know that 60-80% of purchase decisions are based on recommendations. You built this great company and that model. So instead of blowing your profitability with those idiotic campaigns, invest in the listening process and act on your customers suggestions to build an even better product so that your customers recommend you more. THAT is the way to get to recommendations in Twitter, Facebook, LinkedIn Youtube and all the other social media places. OK? Next time - right ;-)

Axel
http://xeesm.com/AxelS


Republished with author's permission from original post by Axel Schultze.

Axel Schultze

CEO of XeeMe, Chairman Social Media Academy, Silicon Valley entrepreneur, published author of Channel Excellence, frequent speaker at industry events, and winner of the 2008 SF Entrepreneur award. Former CEO of BlueRoads, Infinigate, Computer2000. My social presence: XeeMe.com/AxelS
Categories:
4
Average: 4 (2 votes)
 

2 comments »

Richard Boardman

Richard Boardman

Good post - and a very good

Good post - and a very good point that the significance of Dell's revenue generation through Twitter seems to be overplayed, though I guess it may be a case of acorns and oaks here. Not sure I feel strongly about Dell using the Twitter channel as a means to make offers though. Seems to be a sensible way to encourage people to elect to follow them.

ChrisCooper

ChrisCooper

Have to agree. Shows how

Have to agree. Shows how multi nationals are getting it so wrong on this front.

Post new comment

The content of this field is kept private and will not be shown publicly.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Enter the characters shown in the image.

MarketPlace

Global Customer Experience Management (CEM) Certification Program

[May 30-31, Frankfurt; July 25-26, Hong Kong] An internationally recognized program with proven track record of success - being run for 34 times in 13 cities with attendees from 50 countries, the program is developed based on the U.S. patent-pending Branded CEM Method which aims to drive customer loyalty and brand differentiation with quantifiable business results. Limited offer: USD300 early bird discount.

Register today for Confirmit’s Mobile Research Roadshow!

Join us on May 29th in New York City. Stuart Ryder, SVP, Mobile Research Lead for Ipsos IOTX & Roxana Strohmenger, a leading Forrester analyst, will be in attendance to share best practices and new trends in mobile market research.

Register today for Confirmit’s San Francisco VoC Roadshow!

[June 12, Sir Francis Drake Hotel] Gregson Siu, Vice President, Ariba Business Operations, Ariba and Bob Thompson, CustomerThink, will be in attendance to share best practices, new trends and latest research to help you develop your customer experience program.

Social Networking and sCRM International Congress in Colombia

[June 25-26, Bogota] Thirteen international thought leaders will present, from different perspectives, the trends, the uses, and the magic - as well as the reality - of Social Networking and how it impacts the way customers are doing/will do business.

Driving ROI With VoC

Walker has identified multiple ways to measure ROI – there is not a one-size-fits-all solution. This paper will address each and conclude with some recommendations to help B-to-B practitioners evaluate which ROI approach will work best for their particular business need.

Featured Links

Salesforce CRM

The leader in customer relationship management and cloud computing.

Strategic Roadmap for Digital Marketing

Free e-book (no reg required). 15 articles by digital marketing thought leaders.

Get your event or resource listed in the MarketPlace, reaching 200,000 business leaders monthly.
For more information, contact CustomerThink advertising sales.