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Adoption

What drives quality of life and how do you assess the circumstances of the middle class?

If quality of life relates to access to sufficient food and shelter to ensure good health, then an overwhelming plurality of American’s have good quality of life.

If quality of life improves when you have access to devices that reduce the time and labor required to maintain your living conditions, and if your circumstances provide tools and devices to make your leisure time more productive, then your average American is living in an era of unparalleled quality.

A9F958C7-9361-4575-9123-4DF561F937F6.jpgThe chart to the right forms the basis of an argument by W. Michael Cox of AOLNews that suggesting that the American Middle Class is oppressed ignores the remarkable penetration of devices that save time, create connections and entertain in the average American’s life.

My inner technophile loves the chart for the increasing speed of adoption cycles. Note also that the advent of microelectronics has accelerated the adoption of devices that connect people to information and each other. We are in the middle of a second great information revolution, of as much consequence as the proliferation of the popular press in the 18th Century.

But, electronic media is often called the opiate of the masses.

Perhaps Cox believes that unlimited access to media offsets an unsettling shift in income distribution over the past 20 years.

As the Huffington Post reports:

Beginning in the economic expansion of the early 1990s, Saez argues, the economy began to favor the top tiers American earners, but much of the country missed was left behind. “The top 1 percent incomes captured half of the overall economic growth over the period 1993-2007,” Saes writes.

D62CC536-85BC-4776-B19C-72CEA924C4AF.jpgYes, all these devices cost less, and the average American consumer can afford more cool devices.

But when 60% of the population makes 40% of the income, that creates a wide swath of people who have no safety net, and who more often than not are borrowing just to keep up.

30CA12BE-0AD4-4459-AA49-DBE96343F455.jpgThe question of the state of the Middle Class isn’t as simple as questions of food and shelter. It isn’t as easy to define as the access people have to electronic devices.

The state of the middle class is captured in how secure they feel in the world that they experience. The proliferation of media causes dissonance: Images of luxury clash with the reality of daily struggles. No one thing captures the state of the middle class. When Obama talks about rescuing people from their struggles, he is capturing a key element of the zeitgeist. His weakness is his disposition to using the tools of government as the primary release of stress.

The greater question I find myself coming up against again and again is whether leadership can change the culture of a country, can shift values and redeploy the spirit of the citizenship to advance the greater interests of all.

Yesterday, I ran into a retired economist. We talked briefly about the current economic and political situation. His final comment:

Capitalism is an economic system driven by greed. When every part of the system is looking to maximize profits, there has to be suffering. You can’t have everybody be winners. There have to be losers. We lost sight of that.

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9C2E7D0E-C88C-499B-A3F7-49E5B82A7B63.jpgE-marketer shared some research today from Synovate on behalf of the forum-based ad network PostRelease that details the “influencer” behavior of Internet users.

The research was on a base of 1000 adults, divided fairly evenly between men and women. These respondents were high-influencers, with 68% playing some kind of role in a purchasing decision.

BF82EB36-B3B6-4586-AFAD-A707892E8C5F.jpgThe number of active influencers in any group is pretty consistent from survey to survey. For instance, Forrester’s Groundswell ladder of social behavior shows pretty much the same breakdown of people who are creating content online.

Understanding how to talk about and influence the activity of these Internet users becomes a key factor in creating successful online social marketing programs.

Fortunately, a lot of work has been done over the last 20 years to understand the dynamics of Word of Mouth, which is ultimately the science of getting into the conversation of social influencers.

One firm with good insight into how influencers behave and how they are influenced  is Keller Fay Group. Over the past five years, Keller Fay has maintained TalkTrack, a series of ongoing interviews with consumers to create a proprietary database of influence trends and word of mouth.

keller fay 2.jpgkeller fay 3.jpgIn a recent conference paper, Keller Fay shared some observations about the catalyzing power of these key influencers.

Many consumers are having one or more conversation every day about brands, products and purchasing decision, the research shows. Those conversations range from what restaurant to go to to what TV show to watch to what kind of products to get for your home.

What makes Influencers different is the FREQUENCY and VOLUME of those conversations. The Keller Fay research shows that Conversation Catalysts are having 80% more conversations and mentioning twice as many brands as the average person.

While these facts have been true about Word of Mouth for a long time, the big shift over the last year has been the change in the impact of online versus offline influence. Traditionally, word-of-mouth conversations off-line have had much more effect than online. However, the surge of real-time dialogue, of swarm-sourcing and of increased interaction on social platforms appears to be bringing the impact of online word-of-mouth more into line with that of off-line. (To review a good presentation comparing the impact of the two click here.)

Last year, a group of researchers explored in detail the role of influencers, which they called Hubs, in increasing product adoption on social networks. You can find the paper here. Their conclusion was the people who served as Social Hubs were characterized by their early adoption of new information and technologies and their ability to influence early adoption by other people. The number of social connections that these individuals had were not the key determinant to their impact; it was the type of connections and their credibility with the Community.

Why does this matter? In exploring how to leverage social media tools for small and mid-sized local businesses, I have focused on the concept of starting by building Communities of Interest. The concept is that your Community of Interest will be invested in sharing information about your product or service with their social network.

In order to make that Community of Interest most powerful, you’ll want to be able to identify which of your connections are Influencers, are at the center of Social Hubs that can activate adoption of products and services.

One way to do this is to look at the dialogue amongst your connections and their connections. The more influence-type dialogue there is between people, the more likely they are to have the opportunity to have outsized impact on your Community of Interest. In order to leverage that, you would focus some of your own social networking on these catalysts. As the authors of the paper on Social Hubs have proven, this influence has a provable and favorable effect on your company profits.

To get more insight into practical applications of Word of Mouth, visit the Word of Mouth Marketing Association.

Below is the paper from Feller Kay from which the slides above were drawn.

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