ROGERS - As the director of social strategy for Wal-Mart told a room full of bloggers how the world’s largest retailer manages its online reputation, fingers flew on dozens of tablets, smart phones and laptop computers, sending comments and thoughts out into the Internet.
On Friday, Umang Shah told the more than 300 people gathered at the first SoFabCon hosted by Collective Bias at the John Q. Hammons Center that Wal-Mart uses social media to give the company a voice to tell its own stories but also as ears, to hear what its customers are saying.
Shah came to Wal-Mart about a year and a half ago from Microsoft. He said Wal-Mart is using empirical data to guide its engagement with customers online with the goal of developing better relationships. He said since he came on board, the company has gone from using one Twitter hashtag to six to allow for deeper conversations on issues such as food, health and the environment.
Shah said it is vital to understand who is engaged in online discussions on issues that matter to Wal-Mart and its customer base, what they were talking about and how much sway they have with key groups active on social media and other outlets.
“Just because you Tweet the loudest online does not mean you’re the most influential,” he said.
Bentonville-based Collective Bias is a marketing company that focuses on social media networks, using a cadre of more than 1,400 bloggers who wield influence online. The goal is marketing that’s more engaging and authentic.
Clients of Collective Bias include Fortune 500 companies Tyson Foods Inc., Nestle USA and Walgreen Co. It employs 67 people, with 50 of those in Bentonville.
In early April, the company completed a $10.5 million round of Series A investment. Updata Partners, a Washington, D.C.-based growth equity firm focusing on technology with nearly $500 million under management, was the majority investor. At the time, John Andrews, co-founder and chief executive of Collective Bias, said the funding would be used to to enhance the company’s Social Fabric content management platform, add employees and enter new markets.
Nicole Brady, an Iowa blogger who runs SAHMReviews. com, which stands for “stay-at home mom,” said she’s been with Collective Bias for a little more than three years.
“Here, we have a voice,” she said.
Mark Fidelman, chief executive officer of the San Diego-based media consulting firm Evolve! and a columnist for Forbes, said in a break-out session that in the past, television, radio, newspapers and celebrities had an elevated status that could influence brand loyalty and trust.
“Big media used to control the message,” he said.
Today, influential people such as Oprah Winfrey can hold up a book and cause sales to skyrocket. He said there are not a lot of influential people with the power of Winfrey, but there are thousands out there who are experts in niche areas who have credibility and trust that brands hunger for.
“They are the Oprahs of their industries,” Fidelman said.
He offered some advice to Northwest Arkansas companies Wal-Mart and Springdale-based Tyson Foods Inc. on dealing with people with influence to support the companies’ brands.
Fidelman said the giant retailer could try featuring key people and company advocates in display ads at the local stores where they shop or give them reserved parking spaces. Another suggestion was highlighting the expertise of employees who are knowledgeable in certain areas, such as firearms or fashion. For Tyson, he suggested partnering with local chefs who often have strong local followings to highlight Tyson products as ingredients.
If a brand can harness enough influential people who are trusted, that trust will eventually make its way to the brand and generate sales, he said.
“If enough of them say you’re cool, you’re cool,” Fidelman said.
Business, Pages 27 on 05/04/2013