Courtesy of jbhill via Flickr
Social media – everything from Facebook to Digg to Twitter to Flickr – has been quickly snagging the attention of small business owners and employees of big companies across the world. The business applications for these tools are being explored and many are finding success.
But is this all hype? Are businesses really adopting these tools and, if so, why do they succeed (or fail)?
In this post, I will give you proof that the use of social media in business is expanding rapidly, illustrate what social media offers your customers, and give you some questions so you can determine whether it’s the right strategy for your company.
Social Media: What’s The Big Deal?
Some businesspeople scoff that social media is a passing fad. Thanks to a recent study from The University of Massachusetts Dartmouth Center for Marketing Research, we have proof that it’s not. Social media is becoming more familiar – and more applicable to business – to a much wider audience. From the social media in the Inc. 500 study:
“Just over one quarter of the Inc. 500 reported social media was very important to their business/marketing strategy in 2007. That number has increased to 44% just one year later.”
So why the sudden and dramatic increase? I contend that businesses figured out where their customers were congregating online and are learning a new way to communicate with current and potential customers.
Go Where Your Fans Are
In David Meerman Scott’s e-book, The New Rules of Viral Marketing, he tells a story about a business finding its customers online and communicating directly with them (which also turns out to be cheaper and more efficient).
Cindy Gordan, VP of New Media and Marketing Partnerships with Universal Orlando, was tasked with promoting a new Harry Potter theme park. She told only seven people, but those seven people reached 350 million potential customers through social media.
What I find interesting is Gordan’s insistence that she was compelled to use the social media channels and websites where those Harry Potter fans gathered and shared news.
“‘If we hadn’t gone to the fans first, there could have been a backlash,’ Gordan says. She imagined the disappointment dedicated Harry Potter fans might feel if they learned about Universal Orlando’s plans in, say, The New York Times rather than an insider fan site.”
Customers expect you to meet them where they are. In overwhelming and still increasing numbers, they are online and frequently reading blogs, checking in with friends on MySpace or Facebook, and sharing what they find online with their friends.
Sure, customers are online, but must businesses join them?
Talking The Talk
If you are a frequent reader of this blog, you know that I’m a big believer that businesses must communicate more personally with their customers (note that communication is a two-way street). They don’t want you interrupting them with marketese, but they are willing to have a chat if your product is good and you are polite.
A recent AdWeek article details this shift in conversation and explains who in business can bring about this change.
“Once thought of as an interesting new media channel, social media is increasingly seen as a catalyst for changing how companies operate. It points to a new corporate structure that favors open over closed, dialogue over monologue, and decentralized power over command and control.”
Some people think this new way of doing things is bogus. But as General Eric Shinseki said, “If you don’t like change, you’re going to like irrelevance even less.”
The AdWeek story gives examples of businesses getting wise to the change though, including Ford, Pepsi, and Intel. The article seems to advocate, as Joseph Jaffe and I have in the past, the idea of a Chief Conversation Officer. It may seem “out there” now, but don’t say I didn’t warn you.
On The Other Hand…
I am a true believer in social media for business, but take a long look at your business before jumping in headlong. Focus on strategy rather than cool technology. Consider whether you have the infrastructure to support a social media campaign. Re-read posts on this blog for help with this.
Like Seth Godin says, if your business is selling meatballs, don’t slop ice cream on top. In other words, not all businesses need a social media campaign. Don’t expect to see ball bearing manufacturers on Twitter – their customers aren’t there and it doesn’t fit their business model or strategy.
It’s true that not every company needs to have a Facebook group or share photos over Flickr. But every business needs to be listening. 99% of businesses’ customers are online and many of them are talking about your product. You need to be attuned to what they are saying. Not only can it stave off crises, but researching your audience can only improve your actual product.
Your customers are talking about you. Don’t let the benefits of social media pass you by.
*
If you liked this post, feel free to show some love:
Subscribe to OnlineMarketerBlog.com via email or RSS
Share it on Twitter
on Sep 4th, 2008 at 12:54 pm
Great analysis. Many thanks for including the Cindy Gordon story from my ebook. What she did was surprising to many but makes total sense.
David
on Sep 4th, 2008 at 1:21 pm
I think you’ve hit on one of the key points here: it’s not just about diving in and starting blogs or setting up a twitter account but actually listening and finding where your customers are. Sometimes companies struggle to see this side of the equation and feel they can do nothing if they haven’t got the bandwidth to set up a host of different technologies.
Great blog, by the way and thanks to David Meerman Scott for pointing it out to me via twitter. Now subscribed.
on Sep 4th, 2008 at 1:21 pm
Many small businesses are indeed exploring the potential of social media but are having a tough time figuring out where their target audience is hanging out. The small business community is especially elusive. I have worked with our local Chamber of Commerce to create a Facebook group for small business owners and they are now taking the initiatve to start a similar Linkedin presence. I think you can help your readers by discussing ways to find the specific hangouts and then also discuss how to flag yourself to them.
on Sep 4th, 2008 at 2:58 pm
Great comments, all – thanks so much.
David: Thanks so much. I’m honored you stopped by.
Graham: Yeah, that’s one of the things that is most confusing to businesspeople these days. It’s difficult to slow down and look for the simple answer (do what’s best for your customer).
Gil: Great suggestion! Look for that in a future post.
on Sep 4th, 2008 at 3:20 pm
I think the best shot is making it a real part of your business development strategy, or at least putting the tools out there. SMM is usually an afterthought.
on Sep 5th, 2008 at 3:02 am
Hi, My business coach dM from Indiebusiness.com provided the link to your blog. Your blog is informative. Thanks for sharing such valuable information. I will use this info to build my small business: lotion candles by sacredglo.com (coming soon)!
on Sep 5th, 2008 at 3:34 pm
An interesting aspect of social media marketing is that it does two things for a company:
1. It has the potential of dramatically reducing costs because you are no longer having to pay for high-priced advertisements and the like.
2. Requires some work on the company’s part in order to make it truly effective.
I think the second thought is why you are going to see some companies fail at social media marketing. I have tried getting clients to read blogs and then over time write a blog of their own. Even after all of the discussion about how important they are, the clients still do not actively write because they “have other, more pressing things to take care of.”
It is disappointing to see someone not truly take advantage of something that is so useful just because it is not convenient.
Good blog post. I look forward to reading more…
on Sep 5th, 2008 at 10:52 pm
Online money making has become a trend nowadays. From blogging to FOREX trading. What ever it is, your seriusness in uilding up the business is really pays, and that what’s you need most.
on Sep 6th, 2008 at 2:17 pm
Daniel and Leo – I think you bring up really great (and complimentary) issues.
Daniel – You’re right that most businesses need to “put” SM into a box, line item, budget, or other category rather than just doing it (what independent operators like me sometimes take for granted). Business dev is definitely an option, as is content development.
Because if SM isn’t put into a specific box and made someone’s responsibility, it often falls by the wayside as Leo describes. SM isn’t a straight line from work to profit and that confuses people. I think it’s our job (through blogs like this, I hope) to figure out how best to communicate that.
How can we speak their language? Do we need to do it for them (bringing in the CCO issue)? I struggle everyday with these questions. Translating web 2.0 to business is one of the great challenges of these years. How exciting!
on Sep 8th, 2008 at 2:13 pm
Great entry. I do think that interactive communication is vital to all business, political and personal relationships. SM via Facebook is just one form of that. I do worry (and DJ, I know you have been there from experience) that sometimes one customer, supporter, member, etc. can drain so much resources that it becomes a drag on time, resources, patiences and enthusiasm. Who has not spent an hour on the phone with someone on the edge of reason? I think the less personal the interaction (i.e. the further you get from face-to-face) the easier it is to manage resources and time.