Charter Business White Paper Social Media Marketing for the Small Business Environment

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Charter Business White Paper Social Media Marketing for the Small Business Environment Charter Business White Paper Social Media Marketing for the Small Business Environment Special Report from “ThisisCable” for Business “ThisIsCable” for Business Reports are designed to demonstrate how new technologies enabled by cable providers help small business owners and managers address key challenges, solve problems and achieve mission critical objectives. More resources can be found at thisiscable.com/business. In the Web 2.0 era, first generation e-commerce tactics are no longer enough to deliver the winning edge. Today, organizations of all sizes are looking for new ways to unleash the power of the Internet. and the next new frontier is the realm of social media. Social media runs the gamut from social networking sites like Facebook and MySpace to microblogging forums like Twitter, to including collaboration, low barriers to entry (in cost as well as usability), and the ability to edit and revise content in real time. At this early stage in the social media marketing lifecycle, there are few wellmarked routes and even fewer rules of the road. Even next level. A new survey conducted by email marketing provider StrongMail found that half of all businesses plan to increase their email and social media marketing budgets in 2011, while 43 percent plan to maintain current levels. “As marketers head into 2011, they are focused on increasing subscriber engagement through increased relevancy and automat- ing lifecycle communications,” says Ryan Deutsch, vice president of strategic services at StrongMail. “While it’s clear that mar- The “2011 Marketing Trends” survey reveals that email marketing (65 percent) and social media (57 percent) will be the top areas of marketing investment in 2011. The respondents also say they plan to decrease spending on direct mail (36 percent) and Tradeshows/Events (33 percent). This paradigm shift away from traditional marketing strategies like direct mail and tradeshows indicates that businesses place a great deal of value in client engagement and segmentation – two of the primary strengths of social media marketing. Forty-three percent of respondents to the StrongMail survey consider integrating social media and email marketing to be a high priority, and 71 percent plan to integrate their email and social media strategies by the end of 2011. ‘Community, Identity, Stability’ If you disregard the dark subtext, Aldous Huxley’s motto for his “Brave New World” might well fit the social networking revolution. In the 21st century, this is the way your customers interact, collaborate, form communities, influence each another, and, most importantly for businesses, how companies reinforce brand loyalty. building and customerengagement tools. One key reason for the success of social media marketing: it’s where your customers are. According to a survey conducted by Nielsen in April 2010 , social media sites account for three of the world’s most popular online brands – Facebook, YouTube and Wikipedia. Additionally, 22 percent of all time online now is being spent on social net- works and blog sites – an increase of 24 percent over 2009. CharterBusiness.com Charter Business White Paper Social Media Marketing for the Small Business Environment And that time means money. Recent research indicates that social media is having a strong influence on consumer preferences. “It is increasingly on The Internet’s not written in social media that retail brand awareness is established and brand image pencil, it’s written in ink. is built,” explains Ivano Ortis, research director, IDC Retail Insights. “Social – The Social Network networks, blogs, price comparison Web sites, and the like can all be used by retailers of all kinds and sizes to attract and influence customers, to study demand patterns, to improve brand reputation, and finally, to provide cus- —— tomer support.” 22 percent of all time New Trends online now is being IDC researchers found that the innovative nature of social media can turn spent on social media multiple account profiles into an opportunity for retailers to capitalize on and blog sites. same-shopper sales growth prospects. Additionally, shoppers are making greater use of mobile social networks, a trend that is likely to bridge the gap between online and physical shopping. —— Another important factor businesses must consider when evaluating social Social networks and network marketing is the fact that a majority of consumers rely to some the like can be used to extent on social networks to guide them in their purchase decisions. Ac- attract and influence cording to a new report by Gartner , these social networks often include in- customers. to people with whom they are connected. —— “Companies attempting to use social networks should develop relation- ships with key customers over a period of time and progressively refine B2C and B2B marketers the social network profiles of those individuals,” says Nick Ingelbrecht, re- search director at Gartner. “In this way, the most suitable individuals can be must determine how social media targeted with the right information, products and promotions in the most tactics complement the rest of the marketing mix. this with their best customers for years, with the intention that these ‘VIP’ customers will not only buy the new products, but recommend them to —— their friends.” The value proposition for social network marketing is not just applicable to A social media presence business-to-consumer (B2C) markets; business-to-business (B2B) firms can improve brand image and can benefit as well. “Emerging social behaviors will fundamentally change help businesses gather the nature of the marketing relationship between B2B buyers and sellers, useful consumer data. especially in a down economy,” says Oliver Young, senior analyst at For- rester. “B2B marketers must use social profiling data to determine how so- cial tactics complement the rest of the marketing mix. Integrating tradition- —— al and online tactics is essential as the groundswell of social activity grows.” Succeeding in social media Emerging Strategies marketing depends on the right In this brave new world, IDC believes that retailers must have a balanced investment, analytical tools, presence across social media networks, allowing consumers to feel in con- integration with traditional trol of their own personal spheres. A friendly, interactive presence on a so- cial network can greatly improve brand image and help the company gather marketing and executive support. CharterBusiness.com Charter Business White Paper Social Media Marketing for the Small Business Environment extremely useful, unstructured data about demand trends, the • T hey are more likely to possess analytical tools required researchers say. Also, organizations should realize that a social network pres- • T hey are more likely to integrate campaigns across - digital and traditional marketing ing to current and potential customers on social network sites helps businesses gather useful information about their market • Mor e of their marketing executives will believe that in a non-intrusive way. digital marketing is important to their personal success “Most B2B marketers miss the nuances of their audience’s Partnering with firms that have an expertise in social network preferences by jumping directly to deploying social technology marketing also can yield good results, particularly for smaller without first profiling the social behavior of their customers,” organizations or those that are less technology focused. Young says. “Knowing buyers’ behavior lets marketers set the every new technology that comes along. campaigns, they risk wasting marketing dollars by the millions,” says Jens Harsaae, a BCG partner and co-author of the report. Overcoming Implementation Challenges “By fumbling conversations with digital consumers, they risk Although available data clearly demonstrates the value of so- damaging a brand’s reputation. Inaction is not the safe option.” cial network marketing, many still struggle with the logistics of implementation, according to a new report by The Boston About BizTechReports.com Consulting Group (BCG). BizTechReports.Com is an independent reporting Mirroring the digital marketing buzz, about 90 percent of re- San Francisco Bay Area that analyzes user trends spondents to BCG’s survey said their companies plan to spend in business technology. BizTechReports.Com explores more on social-media, mobile, and online advertising in the the role that technology products and services play next three years. However, many of these companies are taking in the overall economy and/or in specific vertical a leap of faith, investing despite gaps in in-house talent, mea- industries. For more BizTechReports.Com white surement tools, and agency support. papers, case studies and research reports, visit For example, only 31 percent of survey respondents agreed www.biztechreports.com. that their advertising agencies are helpful in making the right - About This Is Cable dents said they do not believe that they have developed the ThisIsCable.com Business Report Series is an right tools for managing their increasingly complex media mix. initiative of CTAM, the Cable & Telecommunications Association for Marketing, which is dedicated to “Once again, we see some companies taking bold steps to in- helping the cable business grow. Cable companies vest, even amid massive uncertainty,” says John Rose, a senior supporting the initiative include: Armstrong; Atlantic Broadband Business; Bend Broadband Business; Bright He points out that there is no single winning formula
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