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

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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

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

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

BLOGS: IGNORE AT YOUR OWN RISK

Although Facebook and Twitter are the dominant forces in social networking, here’s another silver lining to be explored, with business owners having expressed unanimous interest in leveraging on “blogs” as a platform to help drive their business. However, what is the ultimate impact of the “blog” and can it really help you drive business? Recent findings have shown that businesses with “blogs” produce better overall marketing results, according to a recent research report.7 The report displayed an increase of 55 per cent more visitors, with 97 per cent more inbound links topping business credibility, as well as 434 per cent more indexed pages, which effectively means your website will appear more prominently on search engines.

DO IT RIGHT – THE FIRST TIME

The following table features the best practices for leveraging on social networking for your business.

BEST SOCIAL NETWORKING PRACTICES FOR SMBs

Cultivate dialog: Attract readers on a personal level by acknowledging the importance of their opinions.

Avoid commercialism: Deliver credible content.

Utilize call and response format: Use as a tool for information sharing and project sharing.

Expect and accept criticism: Facilitate an open forum of communication to benefit from the user insight.

Prepare response strategy in advance: Respond to comments within 24 hours, with custom responses, and follow-up with users as needed.

Respect privacy and personal information: Allow users to keep chosen information private, especially with social networking sites.

Source: Datacraft

Another recent survey has also provided some further tips on using social media for your business.8

Communicate to your audience through social media in a conversational way, rather than a mandatory marketing vehicle

Consider and reiterate your main business objectives

“Engage” in social media, and not “broadcast” your marketing messages

Inform, not pitch

Work smart by using free tools like HootSuite and Google Alerts

7 Social Media & Small Business – Power to the SMB, 10 Sep 2009 http://blogs.cisco.com/ciscotalk/marketing/comments/social_media_small_business_power_to_the_smb/ 8 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/

UPDATE, UPDATE & UPDATE!

“The only thing worse than not having a social network presence is to have an overtly outdated or neglected social networking presence.” – Juan M. Pousada, Social Networking Consultant

If you do not maintain your social networking presence, the only audience you will ever manage to engage – will be yourself. To avoid this you can devise a schedule with reminders to check on your social networking channels regularly (twice a day at least) and respond to inquiries and updates on a timely fashion.

MEASURING YOUR SOCIAL NETWORKING ROI

This is the final step towards a successful social networking strategy. Contrary to popular beliefs, social marketing results can be measured. There are many methods and tools you can use: monitor blog comments, mentions in the media, traffic stats, Facebook fans, Twitter followers, comments on your content, real-time blog advertising results, click-throughs to your Web site, etc. By measuring your social networking ROI, you can evaluate your performance and make the necessary adjustments effectively.

IF YOU CAN’T BEAT THEM, JOIN THEM

With our global economy moving towards a new age of collaboration, leveraging on social networking is but one of the many elements to propel your business towards innovation and competitive growth. Rather than go against the grain, embrace Facebook, Twitter or any other social networking what-have- yous as well as the challenges that comes along with it. If you are still very much in the dark about new, emerging technologies, you should make plans to budget time, money and resources to ensure that your business moves forward with the times. In order to keep competitive, you cannot afford to snooze, or you’d lose. And in order to have any chance of beating your rivals, “you have to be in it, before you can have any chance to win it”.

KEY SUMMARY

Social networking tools fulfil the main functions of enhancing and promoting social activities, such as keeping in touch with friends and family.

Social media began as the only channel to allow the delivery of information and ideas and collaboration across various platforms such as pictures, sounds, videos.

More businesses are increasing using social media to support various business functions.

While social media adoption has doubled, some SMBs are finding it difficult to fully exploit its potential.

Some SMBs feel that social media can hurt their businesses more than it helps.

SMBs can engage audiences via social media by using a more conversational style of communication.

Social media can help SMBs become more innovative, competitive, and move ahead with the times.

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