Georgia SBDC- Small Business Blog

Social Media: Fad or Trend?

Every now and then i find an article that I think is well written and thought provoking.  This one on Social Media did it for me.  It can be found here.  It is from the Blog of Guest Relations Marketing.

Enjoy!

We have heard many business professionals question the validity of social media in terms of its value to business communications.   “I don’t need to follow so and so … “ or “I don’t need any more friends.”   Like any media or contact point, social media sites have their own characteristics … and their own limitations.

But, social media is here to stay.   What is uncertain is what formats and sites will thrive and what new applications will take root.  But, the category is growing in acceptance and engagement.

There are some fundamental reasons why:  people have become increasingly skeptical of the credibility of conventional news sources, so they have sought their own.   Private “on the scene” videos of news events have peppered YouTube and rival the reach of conventional news outlets in certain cases.   People still seek the ideal of belonging to a community.  With social media, they can choose to engage with like interests in a manner of their choosing.   On demand.   We want it now.  Everything.   And, finally, connecting to beliefs, interests and other things that are held in passionate terms are now served up in social media.   You don’t need a publisher or agent to blog on a subject you are a Zealot about.

Here is why social media is even more valuable to businesses. As long as transparency and authenticity are practiced, businesses have a great opportunity to show its followers it has a heart, it has employees that are likeable, and it has a story to share.  In short, a chance to share the emotional side of its “brand.”  And, how ironic is that?  In a media that eschews overt selling, here’s the opportunity to make the emotional connection.  Through your story, through your employees, through your customers, and most certainly, through your Zealots.

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Guest Relations Marketing
Transforming Prospects to Guests, and Guests to Zealots

Any Publicity Good Publicity?

I have heard it many times before, any publicity is good publicity.  Is this a true statement?  Can publicity that is given your way hurt your business?  Ask Dell Computers what they think about publicity and a certain website that was created just for them.  Ask Iams pet food the feelings they have about negative publicity (Amazingly, I am a customer of both companies). Negative public relations and publicity can damage your company that you have worked so long and hard to create.  It can be extremely costly in the long run.  Word of mouth is still one of the most influential ways for people to buy products and services.

Many companies monitor what is being said about them on the streets as well as on the internet.  Because of blogging, micro blogging such as Twitter, and other forms of online avenues, it is extremely easy to receive publicity good and bad.  Comcast actually has employees who do nothing but monitor what people say about them.

The point I want to make is not that you should monitor yourself, but you should.  I think it is more important that you follow up on the publicity that you receive.  This needs to be the case when you receive good and bad publicity or word of mouth.  If someone is talking nice about your company, thank them!  Tell them that you appreciate that they are trying to spread the word about your company.  Sometimes it can be difficult to track down the people spreading positive word of mouth about you.  If you find out that someone is spreading negative things about you and your company, find out who they are, and try to remedy the situation.  They already like to talk, give them something to talk about in how they originally had a problem, but your company went out of its way to help them.

Word of mouth can help and hurt your business at the same time.  It should also not be your sole means of marketing your company.  Make sure to monitor it, and follow up on all forms of it.  Make sure that in everything you are doing with your company; provide the highest levels of customer service and products and services at all times.  In today’s times, it is easy to be found if you don’t, and that could cost you!

 

 

So what is all this new stuff? 2.0? New Media?

I was sitting in a meeting the other day where the conversation was turning into how we contact with our customers.  We then discussed how this has changed drastically in the past few years and how people need to start getting on board now before they will be completely left off the bus.  Even though many people consider 2.0 to be extremely new, it is not.  I think that if you look at the curve of the cycle of users, it has finally started to hit the majority.  Social Media as well as other new forms of technology are tools that small business owners now use to reach their customers.  It is a combination of these tools as well as some of the older ones that we utilize to let our customers know who we are and what we do.

The discussion started to change though, does the average person want to know how to use all of the forms of media, or do they just want to understand them?  So many people ask the question what everything is, so they can just be informed of what is out there.  It seems to me that many people who complain about some of the new forms of marketing are the ones who either don’t understand them and/or don’t use them to their advantage.  I still commonly hear from business owners that the people who use these forms of technology are not their customers.  I will disagree with you as more people are using this technology every day.  The largest growth in users for people in viral media is people over the age of 65 and housewives.  This combined with the large majority of people under the age of 30 and others who have found its benefits makes up a large body of users.  Also, all of these people under the age of 30 will not always be below the age of 30.  This new form of marketing is going to be a norm in the way we reach customers.  Individual names of the companies that we use may change, but the general philosophy of what they do will not. 

The only way to truly understand the new forms of media and marketing is to use them.  Using them for one day is not going to do the trick either.  Notice, I did not mention to definitely use them for your company.  Try them out for yourself individually; you can start slow by just reading or participating in blogs or forums.  The key to understanding is to be engaged in what is going on.

These forms are not going to replace all of the old things that business owners have done over the years, it will just enhance the process of reaching customers.  Just think of what is going to come out next. Would you have ever even imagined that what we are doing now would ever be out there?  What do you think is going to be the next big thing for small businesses in the form of technology?

Are You Protecting Your Reputation?

Are you monitoring what others are saying about you on the Internet?  If you are not, you really should start thinking about it.  With all of the new technology on the Internet including social networks, blogs, Twitter and others, it is easy for individuals to write anything that they want to at any particular time.  Unfortunately, this can come at a price for a business.  For example, there were many people out shopping this past weekend and not every one of them was happy 100% of the time.  Do you think it could be at least possible that one of them may have complained or vented on the Internet out of frustration?  I think that is entirely possible as I have seen many instances of that first hand. Now seeing that most of the technology is viral based marketing, this could mean that 1 complaint could possibly be seen by thousands if not more people.  What if this was your company that was being complained about?  Is there a way that you can find out when people are talking about you on the Internet?  If so, how much will it cost?

Well, there is such a thing for you to monitor yourself on the Internet, and it does not cost a thing.  It is as simple as going to Google and setting for alerts.  Every time your company, name, or the topic that you select is mentioned online, it will send you an email with a list of where it was mentioned.  After you have the list, you can look through them to see what others are saying about you and your company.  This may be a way to solve customer problems, or see something that your customers really like about your company. 

You have a brand whether it is for your company or individually.  You need to make sure that you protect your image online as well as offline.  By signing up for Google Alerts, you can at least start monitoring what others are saying about you.

Social Media. Is it just for Millennials?

Not a day goes by that I do not hear a complaint either about working with younger generations, or trying to reach them.  The millennials as they are called are a section of “Generation Y” that are currently in the early stages of our workforce or about to leave school.  So many people talk about how they do not have an attention span, how they use cell phones a lot and play on the Internet more than they should.  We need to face it, this is a brand new form of generation that we have not seen before.  So many companies have talked about how their customers are not in this generation so they do not need to know how to reach them.  One thing to keep in mind though, these customers are getting older and will soon be part of your customer base.  There are also many people, not just millennials who are embracing the new forms of marketing and technology.

So what are all of these forms of new promotion?  With the all the new forms of technology there are many new ways to reach customers.  It all depends on who your market really is. One of the keys is to be creative and to diversify where you are sending it.  With the use of smart phones, restaurants are even marketing themselves with the use of GPS and how long the wait is at the restaurant.  Social Networks, blogs, smart phones, internet connected televisions and social media are ways that companies are now reaching their markets. The world is now connected online more than ever before. According to the Harvard Business Review’s Working Knowledge Blog, Of the 6.5 billion people in the world, about 1.5 billion have Internet access, more than 300 million have broadband access to the home, and 3 billion have cell phones, a growing number of which offer Internet access.  The interesting thing about mobile technology is that many people never let it get more than a couple of feet away from them.  I am one of those people.

I am not telling you to go out tomorrow and use social media and wireless technology to reach everyone out there; I just think that every business owner should start trying it.  It is definitely here to stay and people are using it.  The number of users is also growing every day.  Soon it will just not be to reach the millennials, it may be close to everyone.

If you need assistance implementing new strategies into your marketing mix, contact your local SBDC office.  They will be more than happy to help your business grow to the next level.

Election 2008: Who will win? Stories

The largest marketing campaign in the last 4 years is presently coming to an end.  And the winner?  Well, that will be decided when the polls start to close.  This campaign has been one of the largest in recent memory and we have seen more types of promotional methods used to reach the customer bases (voters).  Did it work?  Well, I think it did as in some areas over 40% of voters had already voted before the day of the election.  Some people were certainly doing something right.  

We did learn many new things from the election though, one of them is the importance of stories, and a credible one at that.  Seth Godin posted this on his blog and I wanted to add it:

Stories really matter. More than a billion dollars spent, two 'products' that have very different features, and yet, when people look back at the election they will remember mavericky winking. You can say that's trivial. I'll say that it's human nature. Your product doesn't have features that are more important than the 'features' being discussed in this election, yet, like most marketers, you're obsessed with them. Forget it. The story is what people respond to.

Stories are what drives marketing.  People respond to stories and the feelings that the stories brings out in people gives them the drive and motivation to go out and do what they do.  If you think about it, the stories from both parties this year were vivid and evoked some type of reaction on you.  If you did not feel the need to go and vote, the marketing did not work on you, or maybe it did adversely. 

As a business owner, look at what happened during the election.  The permission marketing, social media, and other new forms of marketing were the ones that starting making the difference.  Yet, some traditional methods were still seen or altered to be different.  Make sure that you are using all the marketing methods that you can to reach your customers.  All of the traditional methods are not as powerful as before, but still completely necessary.  Make sure to plan your marketing strategy accordingly.

Social Media Takes Understanding and Time

How are you going to spend your marketing dollars in this next year?  Are you going to do the same thing that you did last year?  Are you spending the same amount of money?  Are you going to try something new?  Digital media is a growing trend in businesses.  The use of online technology and social media applications continues to grow at a staggering pace.  The only problem is that they take time.  If you want a quick fix, you need tactics, not a marketing strategy for your business.  Strategy wise, you need to decide if want short term cash, or do you want long term sustainability.  I know that this is a loaded question because of what we are seeing in the economy. Also, different tactics have diferent response methods as well as different response times.

In the blog Marketing Profs Daily Fix here is what they had to say about social media and its applications.  One thing to keep in mind is that you need to learn how to use the applications that you promote on.  Many of you that know me will tell you that I want you to understand everything that you are doing.  In social media, it does not start overnight, and it takes a lot of time.  You need to build trust with your customers.

If your company wants to be successful in using social media, then here's what you need to do; Use these tools in the same way your customers do, and for the same reasons.

Don't have a firm or consultant set up a blog or Twitter account for you so you can broadcast. Take the time to invest in learning how your customers are using these tools, and more importantly, why. Spend time getting to know your customers and interacting with them.

Social media requires a long-term commitment. You can't "buy" credibility in this space, you have to be here for the long-haul. Leave your wallet at the door, and invest the time it will take to build the connections to your customers. Take the time to give a damn about getting to know these people, and letting them get to know you.

You need to know and understand your customers.  If you know what they need and how they react, then you can better serve to them.  Blogs now cover all industries and all segments of the population.  Take time to try it.  Read one and give it a try.  The one main thing though, is to do it yourself!! 

Christmas Shopping 2008-- How will it be?

What will holiday shopping and spending be this year?  What is popular?  What should you stock if you have not yet?  How will people shop?  It is the time of the year where I like to give shoppers and retailers the Holiday outlook.  Linda Bustos wrote an excellent posting that I would not change, so I included it here.  You can find the full link HERE.  It seems as if the holiday season is shorter this year.  I was in a store that had many holiday seasonal items at over 75% off.  Have a great christmas shopping season in October!! -Kyle How will the uncertain economy affect consumer spending this holiday season? Today’s post is a roundup of recent consumer research and forecasts on how much consumers expect to spend, what they’re looking for and where they plan to get it. It’s interesting but not surprising how some results really vary and even contradict each other (e.g. gift cards are hot, gift cards are not). This research can’t make decisions for you but it might help you think through your customer segments (and personas) and consider how different types of consumers (what motivates them in a tough economy) experience your site/email offers and messaging. For example, if you are Musician’s Friend and your customer typically buys music supplies for themselves — if gift givers love to give apparel and gift cards, you might market to your existing customer pushing those items along with an incentive like a gift card rebate to use for themselves in the new year. Will shoppers spend more or less this year? 26% of consumers plan to spend less, 11% expect to spend more, and 63% about the same. “For the first time I am predicting flat to declining sales for the holiday season,” stated Marshal Cohen, chief industry analyst, The NPD Group, Inc. NPD Group Holiday 2008 Survey 35% plan to spend less, 6% will spend more this year, 50% the same. Nielsen, October 2008 45% will buy less, up from 20% last year. Forrester Research, October 2008 59% will spend less, citing food prices (73%), energy prices (69%) the economy (61%) and job uncertainty (18%) as reasons. 11% are still paying off last year’s holiday purchases. Deloitte, October 2008 52% plan to buy fewer gifts, an average of 11-15 gifts compared to 16+ last year. e-tailing group, October 2008 Over 91% plan to purchase the same number or somewhat more gifts online; that’s equal to last year’s levels. e-tailing group, October 2008 How important is price? 83% of consumers report that price will influence their gift buying. e-tailing group, October 2008 60% say that lower prices, sales and special values will dictate where they shop (surveyed mid-September before the stock market’s major downturn). NPD Group, September 2008 70% will shop sale items more often and 53% have become less brand loyal in favor of less expensive brands. Morpace, October 2008 73% will shop where they can find the best value for their money. 72% will look for low prices. Convenient location, quality and selection of merchandise, and customer service/experience all ranked lower. Deloitte, October 2008 66% will use coupons and spend more time shopping around for bargains. Consumer Electronics Association How important is free shipping? Free shipping (95%) and sales/specials (83%) top of the list of what influences online gift buying. e-tailing group, October 2008 The No. 1 customer reason for not buying more online is the high cost of shipping (78%). e-tailing group, October 2008 75% prefer to shop with online retailers that offer free shipping. 58% claim that shipping prices deter them from shopping online. Forrester Research, October 2008 More than 40% of people who abandoned their online shopping carts said they did so because of high shipping costs, according to a recent survey by the online payment company PayPal. Nearly 60% of those polled by BIGresearch said free shipping was a “very important” factor in their decision to shop online. The National Retail Federation’s digital division, Shop.org, says eight out of 10 online retailers offered free shipping during the past two holiday seasons, up from about 60% in 2004. Source: Despite higher fuel costs, retailers cut shipping rates USA Today, September 2008 What items to shoppers want to give / receive? “[Sunglasses] are the most sought-after item by young adults and will surely be their most desired gift,” it says–particularly those with large logos. “Sunglasses will be this year’s handbag.” NPD Group, October 2008 Source: Outlook For US Online Holiday Sales, Forrester Research, October 2008 Consumer electronics comprise four of the top 10 items on adults’ holiday gift wish lists along with computers, televisions, video game systems and cell phones. Nearly 80% of adults and 84% of teens expressed interest in receiving a consumer electronics product as a gift. 28% of the total holiday budget is being allocated for CE purchases, an increase of 6% from last year’s holiday season. Consumer Electronics Association 66% plan to buy gift cards, the top gift purchase for the 5th straight year, slightly below last year’s 69% but will buy fewer cards on average: 5.3 cards compared to 5.5 in 2007, and will spend $28.43 per card this year vs. $36.18 last year. There’s a trend toward less store/product cards and more gasoline cards than last season. Deloitte, October 2008 24% of consumers plan to increase their spending on gift cards, the restaurant/fast food category outselling all others. 50% consider purchasing a gift card if it comes with a coupon/discount for themselves. Archstone Consulting, October 2008 There are few “must-have” gifts this year, compared to last year where many retailers used GPS systems as door-busters. NPD Group Holiday 2008 Survey Which categories are on the decline? Gift cards are losing popularity, 38% will purchase this year vs. 49% who did purchase last year. NPD Group Holiday 2008 Survey Department stores and retailers of electronics, toys, home improvement supplies, and office supplies are likely to feel the brunt of the economic slowdown as consumers shift their purchases to more value-oriented retailers. Nielsen, October 2008 Almost 25% expect to spend less at department stores than last year. Morpace, October 2008 Home improvements and home/holiday furnishings are most likely to decline from last year. Deloitte, October 2008 Will shoppers use the online channel? 27% expect to spend more online this holiday season than last year. Forrester Research, October 2008 Online retailers, dollar stores, grocery stores, supercenters, mass merchandisers, and club stores are expected to attract the lion’s share of holiday spending, as consumers seek to minimize the number of shopping trips they make — and find good values. Nielsen, October 2008 72% are planning to research products online prior to purchasing vs. 65% in 2007. e-tailing group, October 2008 49% of adults who shop online four or more times per year, spending at least $500 annually, will buy gifts online, compared with 44% who plan to do so in-store. e-tailing group, October 2008 Reasons for shopping online are saving time (88%), locating hard-to-find products (84%), greater selection (83%) avoiding crowds (83%) and saving money (80%). e-tailing group, October 2008 Reasons for shopping online: find unique products not available elsewhere (61%), comparison shopping (52%), find the best values and deals (48%), high gas prices (36% vs 22% last year). Forrester Research, October 2008

The Status Quo No More!

A selection from Seth Godin's new book Tribes.

With a long enough crowbar, you can rip nails out of a board.  With a long enough teeter-totter, you can lift a sumo wrestler off the ground.  With enough leverage, you can change your company, your industry, and the world.  The levers just got longer (for everyone).  The Web and word of mouth and viruses and outsourcing and the long tail and the other factors involved in social media mean that everyone (every person, all six billion of us) has far more power than before.  The king and the status quo are in big trouble.

What are you going to do to ultimately get more and keep customers.  What was done in past may not work anymore because time has changed.  Challenge yourself, challenge your company, do what you can to be different and lead your company to the next level.  Try new things, use this new found leverage.  You can be just like the big companies if you try and stay consistent!  Go out and try new things, it is a new playing field! 

How Do You Get Sales Leads?

According to the Marketing Blog:

According to the survey results by the Chief Marketing Officer Council, most valued source of leads is from customer referrals.

54% Customer Referrals

14% E-Mail or Direct Marketing

8% Internet

7% Events

7% Leads from Vendors

3% Third Party Lead Generation Organizations

8% Other

Would you agree that the best leads come from the referrals of satisfied customers? Is it surprising that customer referrals were ranked as four times more powerful and valuable than E-Mail or Direct Marketing campaigns? Customer referrals were ranked nearly seven times more likely to result in sales and new business than leads derived the Internet.

Customer referrals are a means of providing immediate credibility. With the increasing ability for consumers to share personal expression on the Internet, Blogs, E-mail, and word of mouth, the ability to communicate has enhanced the voice of the customer. In business-to-business transactions, a customer referral is more likely to lead to an appropriate contact with a relevant message, which is far more powerful and likely to result in success than a cold call from a third party lead generation. Events and trade shows can be a powerful platform to market a brand, but fall short in delivering valuable leads.

Note from Kyle:  As I have said many times, customer referrals and testimonials are great, as long as they are from a trusted source!  Just because someone wrote for you does not mean it is credible.  This blog is in no way saying that, I just thought I would put my 2 cents in!

With all of this insight, how did the same channel executives, distributors, resellers, and channel representatives respond to the survey by Chief Marketing Officer Council with regards to tactics for generating new leads in the coming year?

14% Plan to use Direct Marketing and E-mail campaigns

13% Plan to use Sales Brochures and collateral

10% Plan to focus on Tradeshows for lead generation

8% Will use Seminars to generate leads

7% Will rely on Print Advertising

7% Plan to use Public Relations and Article Placement

7% Plan to use the Internet and Online Advertising

 

6% Will revert to Telemarketing

6% Plan to invest in Internet Search Engine Marketing

5% Plan to engage customers in User Group Gatherings

4% Plan to rely on Yellow Page Advertising

4% Will experiment on the Internet with Blogs and Social Networking

3% Will use Online Directories

Are these things what you are planning to do reach customers?  What do you want to do?