The 4 Rules Of Social Media Marketing

How Starbucks, Macy’s, and Netflix Blew Billions Of Dollars In A Day!

I want to share with you The 4 Rules Of Social Media Marketing that we have developed that lead to profitable Social Media Marketing. Like most Rules, there is logic and experience behind them. They are also easy to follow and as we will see, easy not to follow with some catastrophic consequences.

We are going to look at what happened to Starbucks, Macy’s, and Netflix when they broke the rules the wrong way and a fantastic example of how to break the rules the right way that just happened yesterday!

First, let us take a look at what The 4 Rules Of Social Media Marketing are.

Starbucks just lost Billions of dollars in stock value in one day because they broke Rule 1 and 3 of The 4 Rules of Social Media Marketing. The number 1 rule being, never get political and number 3 being Never Get Involved In Controversial Subject Matters.

Typically, unless you really know what you are doing (and that is really rare), when you break one of the rules, you are going to tick off a bunch of people who just happen to be your customers.

Businesses should be like Switzerland and never, ever take sides unless you are prepared for the consequences and only about 1 out of a 1,000 are. Here is what happened to the stock price of Starbucks the day they broke the rules.

That my friend is north of 5 Billion dollars going up in smoke. Not exactly genius level marketing do you think?

Starbucks broke this rule and it caused them to lose $5+ Billion dollars in market value in just one day. You can Google the incident if you have not heard about it. No need to repeat it here. The CEO basically lost Billions of dollars for his company. This hurt every stockholder and employee in the company including the 90 year old retired teacher in Des Moines, Iowa that owns Starbucks in her pension fund. She and 100,000’s of other people had a portion their pension values taken from them all because they broke rule number 1. Can you say stockholder lawsuits?

Is it just a blip or long-term? Well, since the day that they made their big political announcement, my highly unscientific observation of the local Starbucks near our office shows me that there are no longer daily lines waiting at the drivethru blocking traffic on the road that it is on. I would guess that business may have dropped off by 50%. Now this might just be a local thing, but then again, maybe not. I have had other people remark that there are no more morning snarls by the Starbucks. Now personally, I roast my own coffee, so I only go in there only with clients. So I have not spoken with the barristers or whatever they call people that serve your coffee.

The sad point of it is that the whole debacle was totally unnecessary. They did not follow the 4 rules.

There was another one this week with Macy’s when they decided to drop Ivanka Trump’s clothing line supposedly because of poor sales, But, it was widely reported on social media that it was again a political move as one of the head muckety mucks was a heavy supporter for the President Trump’s opponent. That plus the fact that her clothing lines sales were up 21% last year tend to throw water on their argument. The result was that you had thousands and thousands of people cutting up their Macy’s card and vowing not to shop there ever again.

Again, totally avoidable. They broke Rule #1, don’t get political.

Finally we are brought to Netflix. They just did a trailer for a show jumping on the Band Wagon Of White privilege and basically saying all whites are racist. They had over 1 Million negative comments on YouTube and supposedly deleted 10’s of thousands more.

Again, look for their stock price to drop and for them to lose a lot of customers. Now a 5th grader that you or I took 20 minutes to explain marketing 101 to would get this right, but not the heads of these Billion dollar companies. You do not tick off half or even more than half of your audience. Duhhh…

Here is the longer version of the Social Media Is Here 4 Rules Of Social Media.

1. Never get political unless you are involved in politics. Pretend you are Switzerland.

2. Never use anything remotely over the top sexual or pornographic. Pretend you are a nun.

3.Never get involved in controversial subject matter period. Pretend you know better.

4.Keep your pie hole shut about your personal opinion concerning all of the above unless you have planned out how to capitalize on it beforehand and are not shooting yourself in the foot. This can be done effectively, but it is truly rare.

So we have spoken about what happens when you break the rules and you do not know what you are doing, here is an example of breaking the rules and knowing what you are doing and having a plan.

I am going to talk about Andre Soriano and Joy Villa. Two Social Media marketing geniuses that broke the rules and won big time. The went political at the Grammy awards when she showed up in a “Make America Great Again” dress. She was a little known singer who skyrocketed from ranking 189,000 on Amazon to #1 overnight.

And Andre’s dress sales have shot through the roof!

You can read the articles about them both on the Gateway Pundit.

Now these two were smarter than the combined billion dollar marketing brain trusts at Starbucks, Macy’s, and Netflix combined.

They will both make millions because they had a plan before they broke the rules because they understood how to break them profitably.

In the meantime, when in doubt, follow the 4 rules and your profits will be a lot safer for doing so. That plus you really do not want to end up as a world wide example of how not to market your company do you? But then again, if you are reading this, you are smarter than the average bear anyway! Would love to hear your thoughts on this.

Andrew Anderson
Social Media Is Here
Social Media Marketers
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