Archive for the ‘Finance’ Category

Social Media: Still a Mystery to Most Small Businesses

By Amy Howell, CEO of Howell Marketing Strategies

Not a day goes by that someone doesn’t ask me about social media for business. LinkedIn, Facebook, and Twitter are all new media tools that can help bolster your Internet or digital “footprint.”

You can read all about how social media is ramping up the conversation by doing a simple Google search. But the more important question small business owners want answered is how to use social media to boost sales and get the phone ringing. I call it “turning on the water faucet.” Social media for businesses should mean one thing: free tools that can strengthen your organization’s SEO (search engine optimization), help get your message out, and engage with customers and prospects.

Now these tools may be free, but the time you must spend executing the work can be extensive. A lot of writers just re-hash what’s already been written, so what I find most helpful is to share what we help clients do in the trenches every day. Below are the main barriers to using social media and why it remains a mystery, followed by how to get started and what to do first.

The barriers for most small businesses using social media are:

  • Time and education: It takes time to read and learn about the ever-changing, growing tools online, and most business owners don’t have extra time to devote to this. I hear it every day, and as a small business owner myself, I certainly understand this constraint. Small businesses have limited resources and must focus on revenue development and all that comes with running a business. Social media can help a small business tremendously, but most owners have not had time to get up to speed.
  • Lack of resources: It takes a dedicated effort to employ social media tools. Most companies can hire help, but many simply don’t have the extra resources to do so.
  • Reluctance to embrace new media: A lot of people are just flat out skeptical of social media. There are legitimate reasons to ignore it, especially if you are in a regulated industry (banking, insurance, finance, etc.), as some governing entities such as the SEC have policies against any use of social media for work. I think that will change soon, as I’m already seeing some large organizations issue new policies on social media use.
  • Generational: Most people would be surprised to know that the average age of a Twitter user is between 40 and 55. Age isn’t an excuse to avoid social tools, but it is often an explanation.

How to get started if you want to add a social media strategy to your marketing toolkit:

  • Read, read, read. There are some excellent blogs (like this one) and other resources online that can tell you all you need to know. There is no “magic wand” that will do this for you. If you really want to jump in, you have to do the reading yourself. You can hire it out of course, but the ideal results spring from the business understanding social media and embracing it, even if it means only monitoring at first. Let’s take the Judy McLellan Team for example (@JudyMacTeam on Twitter). Judy hired my firm to help with a real estate marketing and PR strategy that included the use of social tools. At first, we did some of the tweeting and posting. But now, you can find Judy out selling homes while using her iPad and iPhone to tweet and spread information about her listings.
  • Pick one tool and learn that first. For me, it’s Twitter. Once I understood Twitter, I moved on to learning about some other tools. I think by mastering one tool, small businesses can see results faster. Let’s take Cheffie’s Cafe (@Cheffies on Twitter) as the next example. We helped Cheffie’s Cafe spread the word by using Twitter, along with traditional PR during the previous few months. A good Twitter strategy is key to a successful PR campaign.
  • Look at what your competition is doing. Get online and do a little research to see what your competition is up to in the social space. Let’s take OrthoMemphis, a successful orthopaedic practice in Memphis that adopted social media long before its competition did. We have helped OrthoMemphis (@OrthoMemphis on Twitter) use social media tools to not only market their sub-specialists (knee, hips, and shoulders), but also to launch OrthoStat, its acute care walk-in clinic. Combined with direct mail, PR, and patient communications, Twitter and Facebook have been tremendously helpful.
  • Get a social media policy in place and communicate it to your organization. There are some great examples online and free resources available. I suggest any small business that wants to use social media tools have a policy in place just like a media policy. Talking online is like talking in the newspaper, and it’s important to have a strategy and know the dos and don’ts of posting online. Good examples are Coca-Cola, Kodak, and Intel. (A list of these can be found on my blog.)

The smaller the organization (or flatter), the easier it is to employ social media. Even though they may have more resources, larger companies are often more bureaucratic and have more red tape. Larger companies are also usually slower to “get it,” and we have found that companies without all the red tape can move faster and are often more decisive. Social media gives the little guys a leg up and is a great way to have a big voice online.

A CIO Takes On CMOs and Social Media Marketing

By Colin Osburn, Chief Information Officer at

As a technologist, most everything I do has a technical bent first, with true ROI close behind. I realize that technology and finance to a marketer are like sunlight to a vampire, but steadily more and more of the marketing types appear to be following the technical and ROI trend. Metrics, reporting, automation, and justifying that mind-numbing campaign are all things that marketers are doing presently, while showing true technical aptitude.

I’ve had a real taste of why marketing and I are such distanced bedfellows. Running a national automotive parts Web site is complicated. A lot of technical effort goes into the operation and improvement of our search function, images, text, etc. Our customer base is earned through large partnerships, SEO (technical in its automation), and complimentary business lines. We even launched a short-run TV commercial this year for the first time in the company’s history.

It’s readily apparent that everyone—from small businesses to mega corporations and all the MLM shills in between—is jumping on the “new wave of technology” known as social media. To any decent technologist, this “new wave” is the same stuff we’ve been working with for years, but it’s in a new box with a bow.

All manner of Internet black magic that I can find, I heap upon our willing CTO to do a test run. I’m always looking at the newest technology for application to our business model. Automated sharing toolbars and widgets? Yep. Banner ads? Of course. Social media? Absolutely.

But I should have mentioned we do not have a CMO on staff. (Either that, or I disabled his account and forgot about him.) That means the technologists and sales executives are running the show. That also means we got exactly the results from all of these new implementations that you would expect:

  • The banner ads are completely pointless. I intend to remove them.
  • The toolbar never gets used, and no one shares anything.
  • The forums are dead.
  • We get very little response from our e-mail blasts.
  • We keep Facebook and Twitter because they keep the brand public. We also keep them because it’s a new type of customer service.

The site is designed for commerce. We make money when someone buys an auto part. Pretty direct. We haven’t added articles and sticky reading-style content because our user base comes to our site for a very direct task and wants to do it quickly. The same people most likely do participate in auto enthusiast forums and spend a lot of time browsing “car porn” (photos of hot rods, tricked-out cars, and classic vehicles), but not while they’re buying a part. We also have a disproportionately large number of auto dealers who use our site, and the service manager isn’t interested in reading something while trying to get the customer’s part overnighted.

We have Facebook. We have Twitter. But I refuse to attach our brand to MySpace. We have hundreds of friends, and there are a lot of people talking about a lot of things, 99% of which involves the buying and selling of cars. It’s pretty damn hard to get people hot and bothered about a camshaft replacement or that hot new discounted windshield replacement. Have you figured it out yet? We’re not just commerce, but commerce as a subsection of a larger vertical. And that vertical has plenty of content and places that provide it. So we implement what we can as fast as we can and tweak, wait, watch, and adjust.

In reality, some key points came to light for me over the past year:

  • CIOs and CMOs need one another. That’s so painful to admit.
  • Marketing helps those awesome new technologies become ubiquitous.
  • If you don’t have a marketer on staff, this is a good time to start talking to your network.
  • Technology for technology’s sake works some of the time, but not enough to generate an ROI that keeps the monthly revenue high.
  • Content sites will almost always make more on the items I listed, from social media to banner ads. Commerce sites will overall make more on a direct revenue basis. Build a widget, sell a widget.
  • Commerce sites can make progress with these social media tools, but they should not bet projections on them.
  • Being a subcategory makes you look for the “why” a lot sooner. Dell and Ford kill it on social media and “new wave” commerce sales because they are the market. We sell parts. There’s a huge difference.
  • Take what you can get. Better customer service and communication has been a real win for us with these tools, even if we don’t make millions on banner ads.
  • The Get Satisfaction site is a real winner for us because it enabled us to learn from our customers what we need to know. (Facebook has helped us with that as well.)

To be continued…