Why Your Small Business Needs to Look at Social Media as a Marketing Strategy

If you still think that social media is not relevant to your small business, think again. Marketers are discovering that social media represents a significant avenue for getting to potential customers. This is particularly true if your company is in a technology field.

R2i, an Internet marketing company, reports in a recent survey that 61% of U.S. marketing professionals it interviewed used social media for lead generation. In that same survey 27% indicated that they used social media to monitor online conversations about what was being said regarding their products or services.


What makes social media like Facebook, Twitter, LinkedIn and MySpace so attractive to marketers who are looking for quality leads? After all, these are social networks, not business networks. It is precisely the social aspect that makes these sites valuable. People reveal information about their interests, what they do for a living, what they read, their hobbies, personal stuff that can help marketers build strategies for creative approaches. Social media isn't a hard sell place. Marketers who recognize the nascent customer, the one who is not going to buy today but who can be reached over time, will be able to develop qualified prospects in employing the right social media strategies.

Those strategies employ cause and emotion more than price and promotion. So think about what you are marketing and who your customers are (a typical profile or a number of typical profiles) and do a little experimenting on a social network if you haven't already.

If you do your homework you will soon find many more reasons to deploy resources to social media to help you generate revenue. At worst you will find out what your competitors are or are not doing in the social media space.

If Governments are Going Web 2.0 Then Why Aren't You?

Yesterday I attended a webinar on how government, banks and health care are moving to Web 2.0 applications to deliver services, retain customers and reach out to new audiences.

U.S. Government Adopts Web 2.0 Tools

The presenters talked about how the Obama White House has from almost the day after the President was elected pushed an agenda to make the U.S. government more open and accessible. Government departments were tasked with looking at how they could publish information that could be retrieved, downloaded, indexed, and searched using common web search applications. In the last week the U.S. government announced its Open Government Initiative, a further expression of the goal of the Obama administration to change the relationship of government and its citizenry.

Similar action is being taken by Australia where the federal government and many state governments have taken on the task of introducing Web 2.0 capability to make government information more accessible and usable. The Australian government has stated as one of its many goals to make public-sector information free, accessible using open standards, easily discoverable, machine-readable and freely reusable. Although the government of Australia intends to maintain copyright of all materials, it intends to license its content freely for reuse with no fees and no need to ask for permission on the part of the users.

In the UK the government has made similar moves implmenting openness through the sharinig of government data freely.

The federal government in Canada back in 2008 made many announcements about open initiatives and the adoption of Web 2.0 applications to make information more accessible. Unfortunately little has been done to turn those announcements into reality. At the provincial level there is a greater degree of accessibility but very little in the way of interactivity with the use of social media. This country lags behind.

For governments who adopt Web 2.0 as a standard it represents a new paradigm, creating a dialog among government and its citizens.

What are the implications for you in your business? If you deal with government you should have greater accessibility. But that is really not the point of this blog. Government communicates with citizens. You communicate with customers and prospects. If you are reading this blog you probably have an email address, likely a website, and maybe are already on Facebook or LinkedIn. So my question to you is are you using Web 2.0 to change the nature of your online communications? Is your current website interactive? Do you create incentives for customers and prospects to interact with your business in new and meaningful ways?

Whether you create events, contests, blogs, invite comments, or devise other virtual and physical activities you owe it to your business to rethink your Web strategy to take advantage of what Web 2.0 has to offer.

Creating a Plan for Implementing Social Media in your Marketing Strategy

From time to time I have the opportunity to read other bloggers columns and share them with you here. The following excerpts come from Taylor Ellwood, a social media coach and writer who resides in Portland, Oregon. Her recent posting on BizNik is entitled, The Five Elements of Basic Social Media Strategy.

Taylor's 5 elements include:

1. Define Your audience. She points out that audience is more than just existing clients. It includes prospects and partners. Your target audience may be a subset of your total audience because not all of your clients, prospects and partners may embrace social media. Consider age and other demographics in determining your social media audience.

2. Define your business model. Is your business model B2B or B2C? For example, B2C is a determining factor when considering Facebook whereas B2B may be LinkedIn, Biznik, Partnerpedia or similar social networking site.

3. Pick out your key words and phrases that define what you do. Match your key words and phrases with those that make your clients and prospects pay attention to you. These are the words and phrases clients use to describe what you do for them. This is a magnet to attract other members of a social network with similar needs, members that you have never met.

4. Define your goals for using social media, but keep them realistic. Taylor advocates that you need to go into the social media space with very specific goals. I'm a great believer that any action plan should have distinct and measurable goals and a social media strategy is no different.

In her article on this point Taylor states "It's important to define realistic goals for using social media. A realistic goal is publishing an article to be more visible to your social network. An unrealistic goal is expecting that the article will automatically help you convert readers into clients. It's unrealistic because it's not something you have much control over, and you will get frustrated if it doesn't happen. Recognize the technology for what it is and what it can do and plan accordingly with your goals."

5. Assess how much time and effort you will need to spend learning how to use social media sites, as well as what social media sites you need to be on. Also be mindful of using blogs, e-newsletters, internet radio, video, and other forms of social media and factor those into your assessment.

The last point stated above are Taylor's words not mine. It is very important that you recognize the time commitment you need to make in a social media strategy. Unlike investing dollars in advertising on web pages, or in a magazine, the cost of social media marketing is more a measure of the time you need to spend to create a successful, measurable outcome.

Finally, my additional two cents....it is important to continually test to see what works and what doesn't in social media. This is a brave new world for business to venture into. But as I have stated previously it is hard to ignore the number of people that are on social media sites. The Facebook nation is the fourth largest community in the world, almost equal in population to the United States. LinkedIn is better than one-and-a-half the size of Canada in population. To ignore these numbers in your business strategy is to miss a golden opportunity.

Friending a Brand on Facebook

In my previous article I talked about how your business can use Facebook. In the November 18 ezine, "eMarketer - Digital Intelligence" comes the following interesting statistics from a study done by Razorfish, the global digital marketing firm.

The company's “2009 FEED” survey studied US users who had high-speed Internet access and had spent at least $150 online in the previous six months. These consumers demonstrated strong brand connections. Almost 25% participated in brand-hosted contests. About the same percentage followed brands on Twitter. And more than 40% had "friended" a brand on Facebook or MySpace.

Why "friend" a brand? Because in doing it these consumers were being offered special discounts and deals that made the effort worthwhile. Most as well reported enjoying the brand website, and deriving entertainment value from their online experience.

Digital consumers who visit your website today are not looking for information alone. They want much more - a memorable experience. In your web marketing strategy it is important to keep that in mind.

Use polls, create multimedia, invite them to participate in questionnaires, hold contests, create discussion forums, and encourage comments. It's about engagement, entertainment, connecting emotionally.

It is a proven fact that most of us make our purchasing decisions because of the emotions we derive from the buying experience. Think of just how important colour was in your car buying decision. Yes, the fuel economy was important, but more often than not you were ultimately sold on appearance and how it made you feel.

Engage your digital customers and prospects to heighten their emotional connection with your brand. It works. To get more statistical results from this study you should visit Razorfish.

Social Marketing: Tying Social Networking to Personal and Business Goals

Public social networks are by their nature very poor marketing venues in the traditional sense. Click through rates on advertisements on sites like Facebook, MySpace and Twitter are very low. So many small businesses see public social networks as too difficult and too time consuming to master. They are partially right in their conclusions.

Figuring out the "business angles" in social networking takes considerable time and practice. That's because public social networks are primarily "social." The business that works best on them is "social." The younger audiences that use them find traditional advertising hype to be intrusive and inappropriate. To them it's not cool to be on a social site and be thinking business.

Social marketing is not a new concept. According to Phil Kotler, who along with Gerald Zaltman, coined the expression in the 1970s, social marketing is defined as marketing that seeks to influence social behaviour, not for the benefit of the marketer, but to benefit a target audience or society in general. Since social networks are virtual societies it would seem that social marketing would be a good strategic approach for small business and individuals to engage these online communities.

There is nothing like a good cause or social purpose to find a community of common ground. How to do this effectively is a skill set worth acquiring. Nedra Weinreich, of Weinreich Communications, offers courses including webinars on the subject of social marketing. Although Nedra's focus is on using social marketing to advance such health and social causes the principles and strategies she describes in her book, Hands-On Social Marketing: A Step-by-Step Guide and blog articles are applicable to any organization and any cause.

Here are some ideas to consider when addressing the social marketing potential of social networks:

1. If you currently have a social cause that you are drawn to and that you want to share with others in your business community, then make it part of your web presence and feature it on your business website. For example, I have a link to Kiva on my blog site and you will find it on my Facebook page as well. I don't do in-your-face promotion of Kiva on either site but I can come up with strategies that can make Kiva a shared conversation with prospective clients and existing customers.

2. Create an event around your cause. That event can be an activity that invites prospects and customers to an actual physical location with the purpose of raising awareness, and money, in support of the cause. If your cause is "cancer awareness," or another high-profile medical issue, plan to include other interested parties that can give your efforts further legitimacy. For example, you can consider affiliating your event with a larger campaign.

3. Build a cause site on your social network and link it to your website and your social network profile account. Make it graphic. If you are committed to raising money in your social cause put a graph on your site to show how well you are doing.

Large organizations have been doing this sort of community service for years. Having just called on Accenture, the management consulting firm in the last week, while waiting for my meeting, I picked up a glossy, four-colour 50 plus page publication focused on the company's social marketing.

And don't forget Guy Laliberte's recent International Space Station trip where he created a show from space involving actors and performers from all over the planet to promote his cause, clean water for all. Although that gambit cost him $35 million, one should recognize the essential strategy that Mr. Laliberte deployed, social marketing with a very specific social goal.

On a more modest level and as a method for getting exposure for you and your business, social marketing is the right strategy to engage the social networking community.

Guest Submission: Social Networking's Place in Lead Generation

Jeremy Miller is a Partner with LEAPJob, a sales and marketing recruiting firm here in Toronto. His recent post is one I want to share with my readers.

Twitter is all the rage, but can you actually use it to drive sales? What about Facebook, LinkedIn or blogging? Social networking seems like the right place to build a lead generation program right now. These sites offer up huge audiences of engaged users, and make it relatively easy to setup targeted groups and encourage participation. It seems like a no brainer, but it's not. Many business-to-business lead gen campaigns based on social networking are failing.

Here's the secret, age matters. Your audience just might not be ready to be marketed to via social networking. They could simply be too old.

Take a moment and profile your customers. On a piece of paper identify the key decision makers you target in the sales cycle. This could be CEO, President, CFO or VP of HR. Beside each of the titles, write down their average age of the people in these positions. Next, profile the users of your products and services by writing down their titles and average age.

Depending on what you sell, I suspect you will see a gap. For example in the software industry the decision makers, the senior people inside organizations, tend to be 35 to 50. While the users, which could be administrative staff or mid-level managers, are typically 22 to 35. These groups are at least a generation apart, which has a direct impact on the types of technology they use in their day-to-day lives.

The Age Gap: Digital Immigrants versus Digital Natives

The plus 35 crowd, people born before 1974, are Digital Immigrants. They didn't grow up interacting with friends and family through the internet. Rather, they connected on the phone, in person or maybe by letter. If they wanted to plan a Friday night out, everyone called each other to coordinate plans.

As technology exploded in the late 90's and 2000's, the Digital Immigrants embraced the new tools. Email replaced the fax. Blackberries gave access to email and the internet anywhere, anytime. Google made it easy to find information in a matter of seconds. With each breakthrough, Digital Immigrants figured out how they could use the technology to make their lives more efficient.

The under 35 crowd, Digital Natives, have approached technology from a totally different perspective. Digital Immigrants may look at Facebook, Google and email like tools, but not Digital Natives. I asked my associate Fawzia, who is 26 and definitely a Digital Native, how she would describe her use of social media. She said, "It's a necessity. It's what you do. You might use the phone, but we text and social network. That's how we talk to each other. It's like breathing!" The Digital Natives can't imagine communicating without these tools. They are completely ingrained into their social connections, their community and how they learn.

When to use social networking for lead generation

The differing approach to technology between the Digital Immigrants and Digital Natives has a direct impact on your lead generation strategy. It is crucial to profile the demographics of your users and decision makers so that you know which media platforms to use in marketing.

When targeting the Digital Immigrants, social media is not the best approach for lead generation. Sure you may get a few leads from social networking, but not nearly as much as you could through traditional media. Digital Immigrants use technology as a tool to support their buying decisions. As a result, they use Google to find vendors, websites to evaluate companies and human interaction to make buying decisions. Social networking is not used in the buying decision, because it is not a tool for evaluating products or services.

As you understand the habits of the Digital Immigrants, you can tune your marketing programs to fit their needs. Some of the obvious programs are search engine optimization, because they use Google to discover their options. Public relations are effective, because they use newspapers and magazines as a primary source of information. Public events are also powerful, because Digital Immigrants truly value being able to see the white's of their vendor's eyes.

If your audience is Digital Natives, you have a lot more marketing options. In a business-to-business environment there are not many Digital Natives in the decision making roles, they tend to be users. Users are still important to the overall marketing strategy, because having access to them provides an influential group for up-selling and cross-selling.

For example Salesforce.com created IdeaExchange to engage the Digital Natives, and capture their input for product innovation. The IdeaExchange is an interactive, social networking site where users can post ideas and comments to help Salesforce.com get better. The platform builds on the habits of the Digital Natives, and offers incredible market intelligence for Salesforce.com to plan future versions and products.

Beyond product development, building an engaged user community offers tangible benefits for sales. The ongoing interactions the users have in the online community help to build a relationship with the company, and reinforce its brand. More importantly, the interactions keep the users in the know. They have a better understanding of the company, its products and its upcoming products and innovations. This knowledge helps them to advocate on behalf of the product inside the company, and even drive additional purchases. Essentially, the users start the sales process from the inside out.

Driving Leads Today

By profiling your customers, and understanding their technology habits, you can tune your marketing programs. Social media is definitely the way of the future, but it still may be too early for your customers. If you find your decision makers and users are Digital Immigrants, then focus your marketing on traditional media. Social networking may generate some traffic, but not as much as you could through public relations, search engine optimization and email marketing.

Social media is definitely the way of the future. The Digital Natives may not be sitting in the key decision making roles yet, but they will be in the next five years. As they move up the ladder they will pull their technology habits with them, and the use of social media in business decisions will become far more prevalent.

Social Media Marketing Playbook is Worth a Read if You Want to Facebook and Twitter with the Best

In testing the theory that participating in public social networks can assist you in business I am amazed to find pearls that get dropped on my plate. I am a member of Xing, a social network that on a scale of 1-10, where Facebook is a 10, Xing is a 0.5. But Xing attracts a business audience from all over the world whereas Facebook attracts everybody. One of the groups I belong to on Xing focuses on entrepreneurship. This contribution was sent to me by Dean Hua, a member of that group.

The Social Marketing Playbook is 56 pages long and packed with interesting ideas on how to use social media to help you differentiate your brand and sell to customers. I couldn't agree more with the author's opening comments, "Social marketing eliminates the middlemen, providing brands with the unique opportunity to have a direct relationship with their customers."

Enough said. Take a look and let me know what you think.