Facebook’s Real Crisis

blogginFacebook’s problem is that the next wave of young people–today’s 12-18 year-olds–are not as engaged with the social media platform as the prior wave was. Facebook isn’t as cool to them as it was to today’s 20-somethings, as this new wave has Snapchat and Instagram, and other alternatives. Facebook’s challenge isn’t too different from what a lot of companies face: Does it change with the users who fueled the early growth, or focus on driving engagement with the next wave?.

Simple: In Name Only

blogginSelling out to a big bank for $117 million doesn’t exactly strike me as qualifying as a banking industry disruptor. BBVA, however, was not simply paying ~$1200 per customer to acquire Simple’s customers. BBVA paid for a brand that it would need years to build itself.

Facebook Fans Aren’t Better Customers, Better Customers Are Facebook Fans

Obsessing over driving social media connections because social media fans are more likely to buy, are better customers, or whatever, misses an important point: Social media connections don’t cause the desirable behavior/attitudes. Encouraging customers to “Like us on Facebook!” or “Follow us on Twitter!” is a waste of marketers’ time and efforts. The customers who make those connections are already good customers.

What’s The Value Of A Social Media Guru?

A recent article on FutureLab reported on some “math” computed by cloud data backup service Backupify. To compute the value of participants to various social networks, the firm divided the estimated valuation of the company by the number of users of each social network, and called the result the “value each user contributes to the company’s value.” If I have to explain the idiocy of these calculations, please leave this site immediately. I have developed a formula that I believe could become the industry standard. Maybe it will come to be called the Snarketing Index.