Think Social Media Is a Panacea for Small Business? Get real!

751 LinkedIn connections.
1,443 Twitter followers.
410 Facebook friends.

Those are my stats as of this morning.  Trust me, I know there are countless people whose numbers make mine sound limp.  And trust me again, I know the numbers don’t mean much for anybody if the connections aren’t real.

Collecting followers, fans and friends is an ultimately fruitless hobby unless something substantive happens after the point of “accept” or “approve”—or unless something substantive had already happened before the request was made.  Even as my numbers organically grow in my social networks, the most valuable online relationships are the extensions of real-life, three-dimensional, old-fashioned human contact.

As social media has taken hold in the business world, there’ve been those voices touting its use as a panacea for small business sales and marketing.  Of course, those voices typically follow their definitive proclamations with “act now” offers for webcasts, seminars or the like.  Fact is, social media is an amazing tool, but it’s not fairy dust.  Just like everything else, it takes strategy, hard work, skill and savvy to be effective.  There’s no secret formula for this stuff.  No matter how much we log on and rack up online connections, if we’re not making one-to-one connections with other people in substantive ways, it’s all for naught.

No matter all the social media, it still matters how quickly—and kindly and effectively—you respond to customer requests and concerns.  It still matters that you are in direct touch with what’s going on with your clients, hearing straight from them and nurturing the relationships established long before anybody had a LinkedIn or Twitter account.

Here’s an example…  I’m a Comcast customer for wireless Internet service, and as a work-from-home professional, I rely on that connection for just about everything I do. When a felled tree took down our line and thusly our service, I scheduled the repair with Comcast, and waited patiently during the lovely three hour block of time in which they’d promised to arrive.  As the minutes ticked down, I grew wearier and tweeted my frustration.

In no time, I had direct messages from a couple of Comcast’s Twitter watchers, stating they could help, etc.  Yet still I waited for the service technician to come reestablish the line.  When the fellow finally arrived—well out of the prescribed time window—he explained in very human terms that “there’s only one of him” and that one of him had a very full day.  In spite of the immediate response of the Twitter brigade, it was only the feet on the street that mattered.

And frankly, I much more appreciated the realness of the on site technician, than the false hope of a couple Tweets from unseen people I’ll never meet. That technician has since been out to the house to remedy another issue, and we have had positive interaction that represents Comcast well.

My point? (and I do have one…)

Yes, social media is real.  Undeniably real.  It has an ever-evolving, ever-growing role in the business world, and business people are well-advised to embrace it and determine the best ways to incorporate it into their overall strategies.  However, it’s essential to maintain interpersonal contact—great service and solutions, face-to-face meetings, phone calls, personal correspondence—to forge the kind of relationships that will sustain for the long term, through the ups and downs, over time.

I just checked my email; I’ve got three new LinkedIn connection requests:  #752, #753, #754.  But that won’t mean much if I never relate one on one.

Thanks!

The Collective Connective – It’s Time for Small Biz to Face Up to Social Media

I have her email address and phone number.  She lives no more than a mile from me. However, I opted for direct messages on Facebook to set up our recent dinner outing.  Why did I communicate with my friend this way?

Because I was already there—and she was, too.

Like millions of other Americans, my friend and I are spending time on Facebook.  Thus, I found it just as simple to reach out via Facebook direct message than to switch over to my email account to do so.  (And God forbid I pick up the phone anymore!)  In the end, Facebook successfully led my friend and I to some quality face time.

While Facebook helped me stay connected to this friend from my zip code, it’s also been an incredible tool for reconnecting with friends spread across the globe.  Whether they’re in Houston, Singapore or any point in between, I easily, communally mix and mingle.  Gone are the days of blasting my friends via traditional email with a heavy assortment of attached photos to keep them updated on my life (after much debate about which of my pals would want to see said photos lest I feel like a spammer to my own circle of friends).  Now I post a photo album, and my friends can peek at their leisure.  I can share and receive updates with everyone in a single pass no matter physical location or time zone.

According to topline data from Nielsen NetView for June 2009, Facebook ranked first in terms of time spent per person on a site.  Internet users spent an average 4 hours, 39 minutes on Facebook.  That’s more than the time spent on Google, YouTube, AOL, MSN (WindowsLive/Bing), eBay or Amazon, and it notably exceeds the time spent on the number 2 ranking Yahoo!, at which users spent an average 3 hours, 15 minutes.

We’re leaning toward the collective connective for a variety of reasons.  I think the recent death of Michael Jackson and subsequent online communications frenzy is a good encapsulation of the shift (and likely could have impacted Nielsen’s June numbers).  Facebook experienced the crush of the communications rush when the news of Jackson hit.

The desire for interaction. This key point hinges on the very human need to be heard and avoid being alone.  While Internet users may have first glimpsed or heard of Jackson’s death through other sources, they logged on Facebook in droves to share the disbelief and emote.  CNN partnered with Facebook to have real time comment sharing in tandem with the live coverage of the Jackson memorial service.

The need for multi-dimensional information exchange. Facebook served as a source for diverse perspectives and unfolding details, as friends clamored to share what they’d learned.  Friends from all points on the map received information from different sources and were able to convey details quickly.

The simplicity of sharing. Just as email overtook traditional mail because of its immediacy and affordability, Facebook interaction overtook email messaging likewise.  During the hubbub of Jackson’s death, it was quite simple to share on Facebook because it converges and merges friend groups for streamlined sharing options, has no associated costs and allows for broad-sweeping messaging without being obtrusive.

What’s the quick take-away for small business people?
Be where your customers are. While I’m just a Facebook user and not a brand advocate, the numbers undeniably affirm that millions of people across every demographic are using Facebook.  Of course, there are other widely used networks, namely and famously Twitter, for example.  Business owners are wise to take note.

Evolve your communication methods. Word in the world of online trend-tracking keeps buzzing about the fact that traditional email is fading in importance.  Messaging through Web 2.0 technology/social networks is on the rise, and with the launch of tools like Google Wave, it’s clear that the way we share information is evolving.  Email is not ready for mothballs, but it is likely being reassigned as modes of electronic communication advance and change with the onset of cloud computing and mobile technology.

Build relationships online. There really are conversations going on all around us online, as Internet users seek out those they know to share in discussion.  It’s imperative business leaders plug in.  It’s not effective to be a strategic interjector; people are hungry for more substantive connections.  That’s why Facebook is a stronger draw than random commenting on various sites; we all want to be heard, especially by people we care about.

Think ahead about the collective connective. Business owners always need to be one step ahead.  The reality is, we live in a Web 2.0 business world,  and even if some participants are still fumbling in 1.0, we’re not going to regress. Web 3.0 will be next.  In the evolutionary marketplace, the businesses that are in step with the times will thrive.  Those who are presently overwhelmed or totally disconnected may not stand a chance.

Suffice to say, it’s time to ‘face’ up to social media!

Until next time…
Thanks,

Is Your Biz a “Lust” or “Must”? Use Social Media to Convince Customers They Need What They Want or Want What They Need

Windshields.  Cupcakes.

In the gravel-spattered roadway of life, windshield fix-it shops exist to meet the needs of drivers.  A cracked windshield could pose a danger; it’s imperative it be repaired.  Thus, this service is pretty much a “must.”

On the contrary, cupcake bakeries offer optional fare.  There’s really no “must” about a$3, 3-bite confection; this delectable is truly a “lust.”

“Must” businesses often focus on advertising’s frequency more so than its creativity, knowing their messages must align with the steady stream of potential customers’ needs.  When that cracked windshield happens, customers will zone in on the most prominent, present advertiser and call the shop that’s top of mind.

Promoting a “lust” business—goods or services that are truly optional in the course of life—is a different endeavor.  Generally, these businesses have to be creative in order to get attention and very convincing to motivate consumers to make the next move.  The art is to turn a “lust” into a “must,” and this can be challenging, especially in a beleaguered economy in which consumers are trying to stifle their desires for trifles.

How can a “must” business such as windshield repair earn and hold position as the first-dial when customers have a need?  How can a cupcake purveyor elicit the budget-conscious to part with three hard-earned dollars for such a fleeting pleasure?

Here are some ideas.

Meet your potential customers where they are.
In person or online, find ways to be meet and greet the people who may love your product or service.  For example, consider my present fascination with cupcakes.

I recently attended a networking event at which gourmet cupcakes were served.  Though I’d normally ration my cupcake intake, these delights had me revisiting the dessert table two…okay…three times.  Let’s just say I had my cupcake and ate yours, too!  And frugal as I try to be these days, I gotta admit I’d plunk down $3 for such yumminess.  This is a new “lust” I’ve personally decreed a “must.”

However, I’ve since searched for the cupcakery online, to little avail.  They don’t use Twitter or Facebook, and their website is a one-page digital business card.  They’re highly praised on Yelp! and other review sites.  But if I could follow these bake masters on Twitter, I’d easily be lured by daily updates about fresh flavors.  If they had a Facebook fan page, I’d sign up without hesitation and rally pals to join as well.  This business “met me” at the event, but how can I ever really get to know them now?

Offer incentives to motivate response.
Even if you succeed in being where your customers are, you’ll likely need to do something to be heard over a cacophony of competitive marketing messages.  You have to stand out from the pack, differentiating your company by motivating consumers to take action.  Value savings, buyer advantages, special status, premium service—no matter what you offer, you need to show customers there’s something in it for them.

Have you ever gotten something that looked like a coupon, yet it had no discount or saving offer?  I get those duds every now and then in the stack of auto-generated coupons that are printed at the the end of my grocery store check-out or even in those Valupaks that are mailed to the house.  Why would a business invest to be included in the Valupak or in the store coupon program and not give potential customers a nudge? No matter how great your biz may be, customers will ere on the side of “discount” or “incentive” if given the choice.

The aforementioned cupcakery contributed a buy-one-get-one-free coupon in the swag bag for the event I attended.  That was a smart move, as that offer provided the extra nudge I’d need to go from ‘event groupie’ to ‘paying customer.’

Be consistent to stay ‘top of mind’ and ‘front of the line.’
Frequency and positioning matter in this message-a-minute world.  That’s why advertisers run repetitive campaigns with brain-burning jingles, celebrities show up for flashing cameras at every premiere and charity event and media moguls chime in on all the issues or tweet their most fleeting opinions 20 times a day.  Businesses or personalities that want to have last word often ceaselessly strive to stay top of mind and hold position at the front of the line.

For small business owners, being consistent doesn’t have to also mean being outlandish, brash or intrusive.  It’s simply a matter of being present on a regular basis.  Customers who are busy with work, family and life in general are constantly rattled and riddled with marketing messages.  Any business or service provider that becomes a voice of consistency can earn and hold top position in customers’ minds and benefit from being first in line when those customers need what the business has to offer.

That’s the beauty of social media.  Customers elect to participate in social media, and they exercise their right to select connections within those networks, sites and forums.  A business has an open door to create ongoing relationships, illicit interaction and become part of their customers’ daily lives.  The key is to be the steadfast voice in a sea of hit-or-miss messages.  That’ll help make a “lust” product a “must” purchase.

Again, if that newly beloved cupcakery were to join in the conversations on Twitter or Facebook, I’d definitely welcome them into my circles.  However, if I don’t hear from them soon, there will be another flavor to steal my attention.  I’ll get busy and diverted, and I’ll inevitably file the fact that I loved those cupcakes deep in my overloaded brain.  It’s in their court to remind me how wonderful they are.

Whether promoting something people want or need, social media, mixed with a strategic blend of traditional advertising and marketing methods, can be the icing on the (cup)cake for small businesses.

More bite-size ideas coming soon…
Thanks!

Can You Make Money on Facebook, Twitter or Other Social Media Networks?

“Has anybody figured out how to make money on here?”

I’ve run across people asking this question on Facebook and Twitter quite often, and the topic even comes up frequently offline.

Of course, this question isn’t coming from casual passers-by who’re just interested in reconnecting with their pals.  The question of social media monetization belongs to the business people, the entrepreneurs who’ve logged on with blatant or subdued hopes of cashing in.  And the question seems fair enough.  After all, we’re spending lots of our time and energy on these sites.  Will there be a pay-off…ever?

My quick answer is “no and yes.”

If the motive is the fast buck, good luck.  I’ll risk repeating myself to say that social media is not an outlet for ceaseless strings of 140-character classified ads.  If you deluge followers and friends with nothing but direct selling messages, you soon won’t have many followers or friends.  Granted, that tactic can work when playfully carried out by the occasional local pizzeria or bakery (hourly updates about what’s fresh out of the oven go over nicely with hungry Tweeters, I suppose) or retailers offering exclusive deals (i.e. – Dell’s successful Twitter sales pushes).

Nonetheless, status is usually done for gratis.

I liken the approach to social media to that of public relations.  In PR, we earn trust and presence with constituencies by bringing forth quality information and ideas on a consistent basis, offering pertinent and timely responses/input to current issues and substantively participating in communities.  PR is about building reputation, and try as we might to assign exact dollar signs to the value of a great reputation, it’s pretty much priceless.

Still, it’s fair to presume a business with a great reputation would have sales that reflect its positive market perception.  The dividends may not pay out in immediate, directly trackable and measurable ka-ching as would an advertising or direct marketing campaign, but the long term value is immense, impactful and important.

Social media lets companies be part of communities.  Social media extends business’ presence into customers’ lives.  It generates and facilitates conversation, connects friends old and new and adds dimension to what people know about a company. Ultimately, these things build attraction and affinity with a loyal audience that will take action (get a free white paper on this topic) by making purchases.

There will be pay-off, yes.  But it will take time, patience and ongoing nurturing.

A recent Forbes.com article also delved into the idea of cashing in on social networking.  The article features an interview with Brett Hurt, founder of Bazaarvoice.  Bazaarvoice offers user-generated review platforms that can be incorporated directly into brand websites.  The business model contends that people go to brand websites to buy, thus it’s beneficial to incorporate social networking at the point of purchase.  Hurt likened participating in Facebook and Twitter to attending a cocktail party, with the punchline being that “nobody shops at a cocktail party.”

Very true.  When people are mixing and mingling in their favorite social network, they probably don’t have their credit cards in hand.  But they are trading ideas and information with friends and deepening relationships in real, though often subtle, ways.  And in the business world, there are some pros who have the knack for working cocktail parties to their great advantage.  A few biz cards collected at a networking event can lead to paying gigs down the road.

My friend and colleague Paula Swift, owner of Prosper, Business Image Consulting, is a perfect example.  Just like Paula can work a cocktail party or networking event, she can work her presence on Facebook and LinkedIn.  When she makes a connection online, she’s savvy to take note of the person’s occupation, and if things align, she simply takes the effort to inquire further about what they do.  And now and again, that little extra effort pays off.

Paula recently reconnected with a school friend on Facebook and noted he works in the promotional merchandise business.  She followed up by inquiring about ideas for promo items for one of her clients, just to keep in mind.  Months later, Paula knew who to contact when a specific opportunity arose, and the entire transaction occurred within Facebook.  Paula’s old friend from school landed an order, Paula was able to charge her agency commission, and thus, using Facebook really did pay off.

The great thing is, it happened organically.  There was no intense hounding, spamming or pelting sales messages.  Paula noted a professional synergy with a Facebook friend, the friend responded, and when the time was right, both benefitted from the connection.

Another phenomenal example of organic, social networking business combustion:  Help A Reporter Out, the brainkid of Peter Shankman.  Shankman is an NYC PR guy.  He has many clients and knows tons of reporters, thus he launched a Facebook group to connect media in need of information with sources who could supply.  All this is for FREE, mind you.  The group exploded past Facebook’s allowable numbers, so Shankman shifted the burgeoning entity to his own website.  In just a couple years, this group—still FREE for participants—is a profitable venture.  Shankman sends three emails a day, chock full of media leads (you really should sign up!), with an amusing, paid ad at the start of each email.  Shankman started by giving…and continues to give, but he’s certainly gained in the process.

That’s great news for Swift and Shankman, but what about the question at hand…for YOU?  Is there any money to be made here?  No and yes…

No, social media is not your marketing microwave, your online cash machine for new biz.  You’ve got to invest for the long term and be willing to give to get.  Yes, social media can nurture reputations and create and enhance relationships that pay out dividends in the long term.  It’s not the be all, end all.  Small businesses are well advised to invest in comprehensive marketing, including SEO, advertising, direct communications, traditional PR and in person networking and sales.

Growing a business offline or on, it’s still true that the harder you work, the more successful you’ll be.  That you can count on.

Thanks!

Dig In! Treat Social Media Like a Full Meal

A social media plan is not an à la carte menu, so if you’re using social media to help take your small biz big time, come hungry.  This stuff isn’t for snacking.  Maybe you can get away with some à la carte, pick-and-choose in a marketing plan (operative word:  “maybe”), but you simply must order the full course meal to get a social media plan’s impact.

For example, a solitary blog is like an island—hard to get to without a boat or a bridge.  A Twitter account unto itself will serve little purpose for many business people.  A Facebook fan page without the nurturing of fresh content or interconnectivity will wither and fade all too quickly.

Social media requires commitment to a process.  One link leads to another, like tributaries flowing into a river that’s flowing toward the sea.  Ignore one aspect, and the flow is affected.  Ignore many aspects, and the flow will ultimately cease completely.

Have you been ordering à la carte when it comes to your social media?  Have you tried to sample things without investing time and effort to plan your work and work your plan?   That’s like connecting only select dots on the page and expecting to get a full picture.  There really aren’t any skippable steps here.  As I’ve recently blogged, social media is not a marketing microwave; steadiness and patience are required, but the potential rewards are great enough to merit the ongoing effort.

Of course, you can’t do everything “social” that’s out there.  But you can round out a plan that employs essential elements, to ensure connectivity and eliminate any missing links that might hinder your social media success.  Connect the main dots to reveal the big picture.  Then you’ll be able to fill in the details much more easily over time.

Here are the big picture, full-course basics you’ve must include from the get go.

- Fresh Content
If you’re going to be social, you need to contribute to the conversation.  Don’t build podiums without having something worthwhile to speak about.  Think about what you have to share, how you can add to what’s already being said and create content accordingly.  Your content may come in the form of a blog, a constantly freshened website, substantive tweets, pertinent comments on others’ sites/postings/discussions or all of the above.

- Followers, Fans, Friends
Without making connections, you’ll just be talking to yourself.  You must incorporate relationship-building into your social media plan.  You could rally your existing contacts through direct messages, initiate followings on Twitter, join groups on LinkedIn or Ning to be part of targeted communities or invite ‘fans’ via a Facebook fan page.  Also, you’ve got to be a ‘friend’ to have a ‘friend’; start reaching out to others, and they will reach back.

- Platforms for Posting
Once you create content and make friends, you need outlets and methods for staying connected, platforms for sharing what you’ve created.  This is where your Twitter account, your presence on LinkedIn, that Facebook fan page (or personal profile, for that matter), a FriendFeed, etc. comes in handy.

- Mechanisms for Participating and Sharing
Not only do you need to share, you need to make it easy for your network to share alike!  Add “share” or “add this” buttons to your blog, your website.  Ask for retweets on Twitter.  Thank anyone you find who does forward your content on.  This is the essence of social media:  one link really does lead to another.

Does this give you something to chew on?  If you need specific ideas on how to get started, ask me!  I’ll gladly dig into specifics to help you go big time!

Thanks!

SEO & Online Marketing for Small Business: Let Customers Seek and Find

It seems many marketers still find “search” to be the engine for successful advertising and branding campaigns.

In a recent survey of senior-level marketing and media execs conducted by Forbes, 75% of respondents ranked SEO and email/e-newsletters as their top digital marketing tools.  Likewise, SEO and email also ranked high in terms of effectiveness in generating conversions (48% for SEO and 46% for email/email newsletters).  Pay-per-click also ranked high in terms of use and success for participants of this survey.

Use of ad networks, attempted by 40% of total respondents, proved to be the lagger among digital marketing components according to this survey, with 44% of those who tried them indicating results did not meet expectations.

Mind you, this survey was definitely of the big biz – big budget variety; approximately 44% of respondents have $1MM+ digital marketing budgets.  Big bucks in the budget let companies try a variety of tactics, while most of us must pick and choose with more scrutiny.  Nonetheless, the information and insights are translatable for any of us.

This survey is a good reminder that SEO is still numero uno for many CMOs.  While social media (aka “viral marketing” for purposes of this survey) is the media and marketing darling of 2009, companies aren’t—and shouldn’t—disregard the value of investing in optimization for search engines.  And ditto that fact for email/e-newsletters; though these aren’t the newest, shiniest tools in the shed, they’re still helping collect the harvest for many marketers.

For many small businesses constrained by lack of staff, budget and time, it’s smart to make SEO point A on their marketing maps.  Truth is, social media tactics require plenty of hands-on nurturing in order to be effective, and that can be challenging for small businesses and sole proprietorships.  Worthwhile and effective as they may be, social media tactics may need to shuffle down in terms of priority to ensure room for the traction-building of a good SEO effort.

The big biz respondents of this survey measure success of any digital marketing tactics primarily in terms of “conversions or sales.”  70% stated that a bolstered bottom line (“conversions or sales”) was the best assessment for success, with 52% ranking registrations/subscriptions to their sites as the second important measure.  For businesses big or small, the pay-up and the sign-up offer the best pay-off.

What are the take-aways of this survey for small biz?
- Digital marketing should sell ‘em or sign ‘em up—now!
- Make sure customers can find you through SEO.  Let them come to you!
- Make sure you can find your customers through viral marketing/social networks and other tactics.  Find ways to go to them!
- Let your bottom line be the bottom line; measure ROI to ensure time, effort and budgets are spent well.

Searching for more details, ideas or solutions?  Let me know what you need to know to take your small biz big time.  Meanwhile here’s a link to a helpful article with some practical ideas.

5 Essential Steps to Make Your Site Search & Social Media Friendly

Thanks!

New Stats on Small Biz & Social Media – Are We Telling or Selling?

What’s the real scoop on the usage and effectiveness of social media for small business?  Between information from a couple of recent research reports and real life scenarios, it seems small biz is using social media primarily for telling—not selling.

A new white paper based on a survey of 151 small businesses using social media (sponsored by Sage and conducted by AMI-Partners) states that 64% of respondents spend most of their time in social media sites answering customer questions.  57% ranked networking activities as their most prevalent, while 44% indicated “reference/education” as their most dominant activity.

Only a few businesses indicated they were using social media sites for direct sales.

These stats hold true for Lars Hundley, gardenpreneur of Clean Air Gardening, an online retailer of eco-friendly lawn and garden supplies.  (Hundley, pictured jumping like nobody’s watching above, was not part of the AMI survey.)  Because his is a web-based company, Hundley has long incorporated digital social media tools into his marketing and promotions and utilizes them daily.

“We’re not generating any measurable sales from Facebook or Twitter,” explains Hundley.

Instead, Hundley and his team have found social media to be most useful for customer engagement and product education.  The company’s Youtube channel is a simple medium for providing tips and how-to videos, and its various topic-specific microsites are hubs for customer Q & A.  The latter has proven to be an “awesome technique” for facilitating interaction.

While social media is second nature for a web-savvy business owner like Hundley, many other small biz people have been slower to dip toes into the water.  The April Discover Financial Services Small Business Index (a national, random survey of 750 small biz owners) revealed that 38% of respondents now report being part of at least one online social site, up from 22% in October 2007.  However, less than half of the 38% have used social sites for business purposes.

Likewise, it’s taken longer for them to feel comfortable using the tools.  The AMI study found that 65%  of respondents had grown more at ease with social media in the last year and that those who’d been engaged longer (over 3 years) were more open to social media use for the future. Obviously, usage over time fosters familiarity and increased skill.

(Of course, social media tools are moot points for businesses that don’t even have websites.  In the April Discover Financial Services index, 62% of respondents stated they don’t have websites for their companies.  Really?!)

On the flip side, there are some fun, inspiring stories floating around the blogosphere about businesses owners who’ve proven to be real social media mavens, integrating techniques into their companies’ inner workings or successfully instituting promotions that bring in the bling.  In particular, there’s the much-buzzed story about the Naked Pizza Twitter promo.  This New Orleans pizza purveyor did some sniper shot microblogs just to see what would happen, resulting in 15% of a day’s receipts coming straight from tweets.  Not too shabby…

Overachievers aside, it’s clear that social media use for small biz is on the rise across the board.  As for the effectiveness of that use?  Only time will tell…or sell.

Thanks!