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Social Networking for the SMB: an Offer You Can’T Refuse?

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Social Networking for the SMB: an Offer You Can’T Refuse? now. Issue 8 Technology Spotlight Social networking For The SMB: An Offer You Can’t Refuse? With the unheralded arrival of the Facebook posse and Twitter mob into the back-alleys of traditional business marketing territory, Small- and Medium-Businesses (SMBs) can no longer ignore the lure of new business opportunities – or the accompanying challenges lurking within the shadows of the social networking underworld. PLAYING THE TECH ROULETTE Here we are in 2010. We are no longer in the slumps, with various components of the economy on the upward trajectory to help alleviate our wounds suffered during the recent downturn. Over the past quarters, SMBs have been held ransom by the same cost-cutting chains which threatened to rupture them further under the simultaneous strains of escalating competition. However, with economic rejuvenation now on the cards, “cautious optimism” is the secret code being whispered around along with a new willingness to spend, as excited SMB owners have their fingers ready on the trigger lest that opportune moment they’ve all been waiting for – finally arrives. However, all hell is not about to break loose, as the SMB owners have been biting on the recession bullet long enough to know the importance of maintaining a vigilant eye over their shoulders. As history has shown, the technology roulette is certainly not for the faint-hearted, as we have witnessed the quick demise of many a “next big things” as they failed to perform up to first impressions, before being relegated down the ranks to nothing but another famous four-letter word –“hype”. 2009 was no different, with trailblazing ammunition such as remote mobile devices, Green IT and Cloud Computing devices fuelling the tech rounds. However, all these paled in comparison to a silver bullet which possessed a natural ability, not only in fulfilling cost demands, but more importantly, as the new secret weapon in the business marketing arsenal which SMBs recognized, that could fire them up right on par with the bigger boys. If the millennium was the dawn of social media, then 2010 would be the time when we witness this new technology lose those drool stain lines to mature into mainstream. However, despite social media’s proven success in traditional personal domains, many unknowns still cloud its debut in the business All contents are Copyright © 1992 - 2010 Cisco Systems, Inc. All rights reserved. This document is Cisco Public Information. Page 1 of 6 now. Issue 8 Technology Spotlight world. With the SMBs’ turn to pull the trigger, it is time to hold your breaths and simply make the virtual plunge? Can you resist the lure of new business opportunities afforded by social networking and pass on your shot at the global stage? Bada XING, Bada BOOM Do You Know? How many of these social networking sites have you heard of? There are currently Sure, you know Facebook, Twitter, MySpace or LinkedIn. But there 500 million users on Facebook is a whole slew of other social networking renegade variations (Mark Zuckerberg, Facebook available such as Bebo, Mixi, Multiply, Orkut, Wretch, Xiaonei , Founder), with a 24 per cent presence belonging to SMBs. Ad Cyworld, Decayenne, Tagged, XING, Badoo and Skyrock. This list is spending on Facebook is also by no means exhaustive, and it is growing by the second! poised to pass the US$600 million mark in 2010, accounting for one quarter of total social-network ad In its broadest definition, the social networking tools fulfils the main expenditure worldwide (up 20 per cent from 2009). functions of enhancing and promoting social activities, like keeping Source: eMarketer in touch with your friends and family. On a more functional note, it is the only media channel which allows the user to deliver and share ideas and collaborate across various platforms such as pictures, sounds, videos. What first started as a main channel to simply “connect people” has intruded into the business arena. For SMBs, not only can social networks offer new marketing capabilities with its “rich and dynamic source of ideas, feedback and interaction with actual and target customers”, they can also “create new avenues for companies to build ‘conversations’ with customers”, effectively enabling SMBs to get a foot into the sales doors. Social networks significantly empower your business with tools to conceptualize and execute marketing activities with social networks as an extension of your overall marketing strategy.1 This is but a tip of the iceberg with exponential business possibilities to be explored. However, one thing’s for sure - social networking is fast-gaining popularity with SMBs worldwide. Recent research figures have shown the global social networking adoption has doubled from 12 per cent to 24 per cent in 2009.2 According to a recent eMarketer research, global advertising expenditure for social networks are poised to pass the US$1.2 billion mark by 2010 and projected future spending will increase by seven per cent every year.3 Research experts Forrester has forecasted that from 2010-2014, social media marketing will be expected to grow at an annual rate of 34 per cent, double the growth rate for all other forms of online marketing. It was further estimated that US$716 million will be spent on social media this year, growing to US$3.1 billion in 2014.4 In another SMB survey, 52 per cent of business owners recognized the importance of a social media presence for their business, with 59 per cent believing it has provided added value to their businesses.5 A recent Singapore-based survey has also listed an 80 per cent majority who expressed interest in leveraging on social media for their businesses.6 “Well, this is simple. Now, all I need is a business presence in Facebook or Twitter, and I’m all ready to go!” 1 Social Networks offer SMBs marketing power, Sol E. Solomon, ZDNet Asia, 30 July 2009, http://www.zdnetasia.com/social-networks-offer-smbs-marketing-power-62056471.htm 2 SMB ‘Social Media Presence’ Now At 24 %, Screenwerk 2 Mar 2010, http://www.screenwerk.com/2010/03/02/smb-social-media-presence-now-at-24/ 3 Advertisers embrace Facebook, other social networks, Pam Dyer, 28 Dec 2009 http://www.pamorama.net/2009/12/28/advertisers-embrace-facebook-other-social-networks/ 4 How SMBs allocate their social media spending, Pam Dyer, 18 April 2010 http://www.pamorama.net/2010/04/18/how-smbs-allocate-their-social-media-spending/ 5 8 Social media tips for small business, Pam Dyer, 11 April 2010, http://www.pamorama.net/2010/04/11/8-social-media-tips-for-small-business/ 6 Singapore firms top social media adoption, Lliau Yun Qing, ZDNetAsia, 8 June 2010 http://www.zdnetasia.com/s-pore-firms-top-social-media-adoption-62200555.htm All contents are Copyright © 1992 - 2010 Cisco Systems, Inc. All rights reserved. This document is Cisco Public Information. Page 2 of 6 now. Issue 8 Technology Spotlight Think again. Having a social media presence does not automatically guarantee your business returns, and you could be sacrificing a considerable amount of your time, too. According to business owner Dr. Alan Glazier, he noted that 50 per cent of small business social media users found it time-consuming. Although social media adoption has doubled, there are still potential roadblocks to small businesses fully exploiting its potential. On a separate note, some feel (17 per cent) that social media provided the opportunity for detrimental remarks to be hurled against businesses over the net, while 6 per cent has even found social media use to have hurt the image of their businesses more than it helped. There are many critical factors to consider before you jump into the social networking pool, or the next thing you know, you could be sleeping with the fishes. “YOU TALKING TO ME?” Know Your Business The first step before you even embark on a social networking strategy is to know whether social networking is suitable for the nature of your business. Know Your Audience Secondly, does your target audience use social networking actively? Whilst there are many cost- effective and free social media tools SMBs can leverage on, they must also understand how their audiences are actively participating on the various types of social platforms. Research expert Steve Hodgkinson explained, “The most cost-effective way for SMBs to harness the power of social networking is simply to participate in existing networks as members. This will allow the companies to observe the likes and dislikes of network members, their language and behaviors, as well as provide an opportunity for SMBs to observe the competition.” Know Your Social Media SMB Tactics On How To Integrate Social Media with Social Media Usage For SMBs Email Marketing Campaigns* (% of Respondents) SOCIAL MEDIA PERCENTAGE OF EXPOSURE SMBs USING Add sign-up forms on social media pages like Facebook Company page on social .12 75% 54 % networking site Broadcast blog entries to my e-mail list Post status updates and/or 69% 46.91% articles of interest on social networking site Include “follow us” links in e-mail messages Build network through sites 57% 46.87% like Linkedin Include share options in e-mail messages Monitor positive/negative 54% 43.89% feedback about own organization on social network Tweet my e-mail newsletter Have blog on areas of 39% 43.33% expertise Place a link to each e-mail message on social media pages Tweet about area of 26% expertise 38.55% None Use Twitter as customer 16% service channel 12.66% Other 8% Source: eMarketer, June 2010* Within Next 12 Months Source: SBSI/NetSolutions, Feb 2010 All contents are Copyright © 1992 - 2010 Cisco Systems, Inc.
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