Social Media for Small Business: What, Why, How, When, Who
As small business owners we are busy. There are not enough hours in the day and the thought of adding extra tasks to an already ridiculously long to do list is about as appealing as poking yourself in your eye with a knitting needle! There is a love hate relationship with many small businesses about social media. They hear “oh you must write a blog, be on twitter, and get a facebook page”. If you are like me, then before you invest time or money on something you need to know the why. My mission for my clients and myself is to not just accept that everyone is doing something you must get on board, rather work out what are the benefits of social media and what approaches work for different businesses and why. So here it is.
What: Wikipedia defines social media as content created by people using highly accessible and scalable publishing technologies. At its most basic sense, social media is a shift in how people discover, read and share news, information and content. It’s a fusion of sociology and technology, transforming monologues (one to many) into dialogues (many to many) into publishers. Social media has become extremely popular because it allows people to connect in the online world to form relationships for personal and business.
Why:
- Build your brand by adding authenticity e.g. yes there really is a person connected to this business
- Encourage word of mouth marketing
- Build relationships with customers and prospective customers
- It provides a forum to gather customer feedback gaining good ideas for product or service improvement
- Access to people you wouldn’t get access to otherwise
- Great way of keeping up with diverse and widely spread customers
How:
Blog – product updates, stories, what’s in store this week, photos with news, timely information
Who: Businesses that have something to say and who enjoy writing
Facebook/Myspace – profile business owners, develop a business page that customers and friends can join as fans and promote to their friends, reconnect with associates from the past, event invitations, special offers to facebook friends, easy and personal communication.
Who: Anyone
Linked In – networking and selling professional services companies
Who: Consultants
Twitter – fast communication, promote specials 20% off today, promote events and urls, real time dialogue, offer customer tips, communicate with customers in a timely way, access to people and information, create a presence a human to the brand, share product or business related information.
Who: Anyone who’s hooked up to their computer, i-phone or pda and has something to say or sell
Flickr – showcase products particularly if they are visual e.g. accommodation, food, produce. Great for telling stories through pictures can be linked with blog and twitter.
Final tip: Action in business is better than inaction. Give it a whirl.
Drumming Up New Customers and Sales
Do you need customers and sales fast? Here are five ideas of how you can drum up sales for your business.
1. Contact all people or businesses you have worked with before to discuss new work possibilities.
2. Make contact with past customers and organise a special promotion to entice them back
3. Take out advertisements to find new customers
4. Hold a special event or sponsor an event that your target market might attend e.g. stall at festival, family fun day, wine tasting afternoon. The event attracts the people and you can then sell your services
5. Creative Collaboration – “you scratch my back and I’ll scratch yours” work with other businesses to cross promote each other’s products or services e.g. bookkeeping and accountants, clothes store and hairdresser
Marketing Messages & Methods in a Downturn
There are always positives in every situation and a downturn is no exception. How can a downturn be good news for a business? If you do business with other businesses there is an opportunity that isn’t available in busier times.
Business owners who are not super busy are more open to hearing from you and to evaluate your products and services. Let’s face it, when you are racing out the door this is not the ideal time to hear from a sales person. If you do business with consumers there are still opportunities. When people are spending less or more aware of the money they are spending, they take more time to evaluate their purchases. When money counts so does your marketing message. Consumers are taking the time to read information to help them make a value for money decision.
Some Tips:
1. Be aware of customer price points during this time
It’s not always rational but with all the talk about belt tightening, job losses etc. money is on people’s minds. Even though your customers may not have had anything change in their circumstances, they may still feel pressure to spend less. When $100 was no problem before, that amount may now be $70. Observe what the critical price point for your customers is at this time.
2. Customise your product or services to meet the new price point
If your customers are sensitive if prices are over a certain point, don’t despair look at ways you can provide services or products to meet this. You don’t need to discount or take a hit to profitability to meet customer needs. For example, create smaller packages rather than 7 in a pack have 5 in a pack. Offer 10 minute neck massages rather than one hour or thirty minute massages. Provide discounts on larger quantities if price per unit is important. Trim back the service component to offer some DIY elements if that saves you the cost e.g. offer a pick up rather than delivery option or snail mail rather than express post. If you are unable to change your product and service (and therefore the price) consider generous payment terms e.g. lay by, credit card option or monthly payments.
3. Remember to communicate with customers they way they want you to.
Email is a cheap way of communicating with customers but beware of always choosing the cheapest way of communicating. A phone call for businesses and a letter for consumers can be slightly more expensive but much more effective.
4. Present an argument for value for money
In these times customers are interested in value for money. Going with the cheapest is not always the way people buy. Money is precious and they want to get good bang for their dollar. It is important to promote the ways your product or service provides value for money. In particular it is helpful to mount a financial case for the sale, e.g. lasts longer, saves your time, saves petrol, protects your furniture reducing the need to replace, makes your shoes look like new again – no need to buy a new pair.
5. Be positive don’t give into pessimism
It’s very tempting to tap into people’s fear at this time to try and get a sale. But often this doesn’t work. In order for someone to buy from your business they need to take action. Fear can immobilise people causing them to do nothing! Even worse, if you take a negative approach it can have a negative response in customers and they can then in turn have a negative association with your business! Bad news might sell newspapers but people what solutions with their products and services!
Marketing in Tough Times: An argument for all guns blazing!
There are some real advantages for businesses to come out all guns blazing with their marketing in uncertain times. Firstly it’s the opposite of what most businesses are doing so for that reason alone can provide many strategic benefits. Secondly marketing activities are often cheaper in ‘tough times’. Thirdly you get to stay business fit so when customer confidence bounces back you will be ready.
Many other businesses act like sheep and look at what other businesses are doing and follow (I am not sure why people in business think that other people in business have a better idea than them!?). Most businesses feel uncertain and want to play it safe. The irony is that often the actions they are taking do not produce healthy business outcomes instead can actually encourage less sales and profits which is exactly what you are trying to avoid!
So are you going to run with the pack or get out there and market? Some reasons to market hard in tough times.
- You get better bang for your advertising dollar
Because other businesses have cut spending, there are some good advertising deals to be had. For example last minute special rates or discounted permanent rates are more likely to be available.
With less advertising clutter your message can cut through more easily and more cost effectively than in normal times. This is particularly true of ad word advertising online.
- Set yourself up for the good times when they return
Many businesses believe the only strategy is to cut back and reduce spending. That might work well when times are tough but what happens when they turn around again? They may not have the staff, systems, stock or promotion channels in place when business picks up. Replacing or training staff takes time and it starting from scratch trying to promote your product may prove more costly than maintaining your promotion.
- Get an edge over your competition
If your competitors are cutting back with their marketing activities you have an opportunity to build market share.
Websites to meet your budget and business requirements
The best marketing advice is tailored to each individual business. Every business sets different annual sales goals, has different resources available for marketing, has different customers and different business owners. Why then would a one size fits all website solution work? Often it doesn’t. What can result is a business over paying for website functionality they don’t or can’t use or business systems are kept at a pre-millenium level involving lots of different databases and paperwork.
AP Marketing Works assisted two businesses recently to achieve new websites.
Aim: To produce a website that would sell services and provide back end database smarts to tailor information for each customer. It was also important for the website to build the brand of the business and communicate the level of professionalism, expertise and skill the business owner brought to each pre-purchase inspection. AP Marketing Works assisted in sourcing the web developer, determining look, feel, flow and content of the site as well as writing some copy.
Aim: To develop an online brochure to showcase the depth of products and services provided by this boutique jeweller. In particular it was important to communicate the difference in value when comparing mass produced jewellery versus custom made jewellery. As this was Diamond Craft Jewellery’s first website developing the look and feel that projected an authentic image was vital.
AP Marketing Works sourced the web developer, devised the website content, project managed the process and wrote the copy for the website.
Business Lessons from Bushfire
In the next few days I will be assisting businesses affected by the bush fires through the Small Business Mentoring Service and whilst many businesses are concerned about the global economic crisis, spare a thought for businesses who have lost customers, offices, records, staff and so much more. I’ve been thinking about what these businesses are facing and I guess being a half glass full gal, I am looking for lessons that can be learnt from this disaster. Here are some thoughts I’d like to share.
- Insurance – look into insurance for your business and be brave and look at the worst case scenario. Become familiar with the exclusions. Some businesses who have business interruption insurance may miss out on receiving payments due to clauses such as ‘except in the situation where police barricades are used’.
- Buffer – work towards having a buffer of about three months in your business. When something does go wrong, rarely does it have short term consequences. An overdraft, savings, a clear credit card with a big limit etc. may be the difference between survival and closure.
- Backup - all data needs to be backup off site with a robust data retrieval system that has been tested. You may lose your computers but they can be replaced. Data, settings and information cannot. For many businesses who physically lost their offices to fire may be lucky to have their business online (as if we need another reason to go online) and have captured some client details but more importantly have a communication channel to their clients and the general public.
What’s the first step in business recovery?
Making contact with customers. Tell them you are still in business. Tell them what’s happened and let them know how they can help. This can be done via phone, letter (if have client details), media release, email or via the business website. Customers have a vested interest in businesses staying in business. Customers don’t like to switch unless they have to. So never underestimate your customers – they truly make or break your business and I’m sure like the rest of Australia and the world, when a terrible crisis affects your business your customers will be batting hard for you too.
Finding Opportunities in Pessimistic Times
One of the smartest questions for business owners to ask themselves is; have my customers been affected by the global economic crisis? If the answer is no then fantastic nothing to panic about (unless you want to add more stress to your life then fill your boots!) If the answer is yes again don’t hit the panic button just yet. It’s important to analyse your customer base for opportunities. To ascertain your exposure to risk answer these marketing questions
Business to Business
- What industries are my customers in?
- Have those industries been affected by the global economic crisis?
- Which industries have been affected in the positive?
- Which industries have been affected in the negative?
Employment Agencies have had slow times in recent years they are looking at a boom period ahead. Government spending is up, are your customers in line to receive some of that spending?
- In what areas are your business customers cutting back on?
- Why?
- What things are still important to your customers?
- Do you offer these things?
- Can you offer these things?
The values of a business customer haven’t changed they are looking for ways to create value, save money or make money. If your product can guarantee that – they will still buy.
Business to Consumer
- Which customer groups have been affected by the global economic crisis?
- Has the impact been positive or negative?
- In what ways have they been affected e.g. lost their job, lower mortgage, cheaper fuel, reduced superannuation etc?
- How does this impact on what they spend with you? e.g. my product is a ‘non essential item’, their income is down from two to one
- What are they still spending their money on? Why?
- What are they still buying from you? Why?
Consumers are still spending. As always they are looking for value for money so it is important to communicate how you provide value. Consumers are interested in reducing pain, creating pleasure, saving time or making money. How does your product help them achieve this?
Be Glass Half Full for Sales!
A question I am being asked regularly by small business owners is ‘Ailsa is the global economic crisis hitting businesses?’. I reply how have your sales been? Many business operators say that business is going well for them. We all like a one size fits all approach and my favourite mantra is one size fits nobody. The same can be said with the impact of the economic downturn. What is going on in the rest of the world creates ripples but it doesn’t have to be Armaggedon for small business. Or more importantly, your business! The biggest threat facing businesses right now is their mindset. Businesses with an optimistic outlook do well. A can do always gets more sales than a can’t do. There are opportunities everywhere.
Some things to be positive about
- There are bargains to be had for your business – everyone’s gone nuts and are discounting make the most of it to save money for your business.
- Even if there is a 10% unemployment rate – there are still 90% of people in employment.
- There are always many businesses that thrive in tough economic times.
- Find opportunity in your customer base
When there is a downturn somewhere there is an upturn. Look for those opportunities in your client base e.g. low dollar equals greater export opportunities, consumer spending down government spending up, unemployment up employment agencies boom
- Stay focussed on good business practises
Keep advertising, marketing, having appropriate levels of stock and staff. The same principles of sales still work in a recession. If there is no-one to serve, people will not buy, if there is no stock they cannot buy, if you are not open they will not buy from you.
- Use any spare time productively
Attend business training, organise your business systems for greater efficiency, conduct staff training in sales, revamp your website, continue strategic business planning, seek out new suppliers.
- Don’t stare at the sky and wait for it to fall – you’ll get cataracts!
- This global recession it too will pass and you need to be ready when it does.
- The past few years have been good hay sowing years.
- You can’t control the global economic crisis but you can control your reaction to it!
Don’t Look a Complaining Customer in the Mouth
If a customer who complains is a gift for business why do customers ignore them? In my particular situation I wrote a detailed letter (yes very old school on paper with an envelope) to Qantas over really really bad service I received, I also emailed as well just to make sure and 6 weeks has gone by without hearing a peep from them. Business statistics say that only 3% of all customers complain which doesn’t mean that only 3% have reason to complain but only 3% take action. 97% choose to let it go or clearly go somewhere else.
It’s been proven that the customers that complain actually care about the product and in marketing speak are ‘advocates’ for the business i.e. usually do the company’s marketing for them through word of mouth. 76% of most business comes from word of mouth so how can businesses ignore this? Just to throw another statistic on the fire, each customer complaint usually represents 26 other customers who have had a similar problem. That’s 27 customers Qantas almost enough for a Qantaslink flight! I invested 2 hours of my time to alert Qantas to a major problem and they haven’t got the courtesy or businesss sense to contact me to discuss it. Somehow I don’t think it’s just Qantas who is looking this gift horse in the mouth. Hmmm I wonder how their share price is doing?
E-nnoying: Overuse of email marketing
What can I say just because you can doesn’t mean you should! I’m sure you have experienced the sudden increase in email newsletters promoting everything in the shop using a ‘one size fits all’ method. It is unwanted, untargeted and e-nnoying! When times are tough it is important not to don’t give in to negativity instead roll up your sleeves get out there and market. But let’s do it smart people! Let’s use marketing principles along with technology to save people’s sanity and save your customers. Technology has given businesses the tools to do really great stuff like personalising emails, tracking who reads what and the ability to contact thousands of people at a time for almost no cost at all. Great for businesses but what about customers? You may be scaring them away and with the anti-spam laws you may lose them forever.
Marketing is about looking at things through the eyes of the customer. For marketing activities to be effective they need to put customers top of mind. Email communication needs to follow the same principles as any other effective communication.
1. Permission from the customer
I have ended up receiving emails from businesses have asked my permission to contact me but haven’t ask me if it was ok for that contact to be every day.
2. Relevant
I get sent the same email that everyone else is being sent even though it is address specifically to me. It doesn’t take into account what I’m interested in. I don’t want to fly to Byron Bay without any luggage. So stop sending me this stuff it’s e-nnoying.
3. Delivered in the way the customer wants
I recently spoke with an advertising representative from an online and paper business directory. They gave me the sales spiel and I said very clearly “I am interested in receiving this information if you can mail it to me with full costings that would be great.” I even told the sales rep that I was about a 50% chance of purchasing. He then asked me for my email address. I said “why do you need my email address?”. He answered “so I can send you out some information”. I again reiterated that I wanted to receive the information by mail. No surprises here…. I never received the letter and I guess they never got my business!
Last Thought:
Never forget that the customer has the last say and it’s goodbye or…. unsubscribe.
