Small business doesn't get social media

Small business does not find value in social media. Does this mean there's no value, or simply that many small business owners (or large businesses for that matter) just don't understand how to use it?

According to a recent poll by Citibank / GfK Roper survey of 500 small business executives across the United States, 76% have not found social networking sites such as Facebook, Twitter and LinkedIn to be helpful in generating business leads or for expanding their business during the last year, while 86% say they have not used social networking sites to get business advice or information. Maria Veltre, Executive Vice President of Citi's Small Business Segment, concludes "... small business owners are still feeling their way into social media... many... may not have the manpower or the time required take advantage of them." This is the bottom line, it is about the time and manpower rather than a reflection of the media.

If a business bought television advertisements at 3 am, and did not see a return, does that mean TV advertising is worthless?

What if an advertisement was run in print newspapers and magazines, but the company forgot to put contact information in the ad? Does that make print ineffective?

These examples may seem obvious to many, but that is because this media has been around for a long time and we have gotten used to what works and what does not.

Social media is something that takes time to understand, and most small businesses do not have a lot of time to devote to learning and connecting in this user-generated media. There is value, it will just take some education on the media, and time to connect with your community. Furthermore, if small businesses turn to social media for advice they are connecting with the people who matter most: the customer. This is why so many businesses fail, they are trying to interpret business advice from Forbes magazine rather than connecting with the people who will keep them in business. You will never find the secret to success published in a book, magazine, or newspaper. The secret to success is listening to your consumers.

Nothing just happens for free, that's why it is called work.

Hitting where it hurts, there's an app for that

Part of me wanted to applaud the new ad campaign by Verizon Wireless, "There's a map for that" but then I saw the end of the commercial. The part that has prompted a lawsuit by AT&T, in which they show a map of AT&T's 3G coverage. The graphical display of the two providers' 3G coverage area is shocking, and although Verizon states that it represents AT&T's 3G areas specifically, AT&T feels that customers believe there is no wireless coverage in the white area.

The lawsuit requests an emergency injunction to stop the ads and claims significant losses of market share and goodwill, prohibiting them from competing. It is true that customers can be easily confused with the technical differences between having 3G coverage, and having slower wireless coverage. What matters is what the public believes, and AT&T polled many customers who were indeed under the impression that there was no coverage.

The Verizon commercial was upbeat and positive, and sold benefits of their available smartphones and superior 3G coverage. It should have left it at that. While Verizon technically did nothing wrong, it is an accurate map, directly attacking their rival was not a necessary maneuver and could cause problems for them. It is usually wise to keep your hits above the belt, even when you have a knock-out punch ready to deliver. In business, your competitor can hit back with the legal system.

The bigger the company, the bigger the blunder

Toyota stumbled into a mess with a launch of their new 4-Runner website. (I imagine this site link will soon be broken, since they're going to need to rectify the situation). To set the mood of wildlife for their SUV brand, they looked to photographers on Flickr to provide photography for the microsite. They found several great photographs which were used, unfortunately they never asked the photographers for permission.

Michael Calanan (a talented photographer & friend) posted his concern on Twitter the evening of Tuesday, November 3. The conversation towards @Toyota must have got their attention, as they promptly tweeted Wednesday morning to the photographers involved.

This is why your company needs an experienced marketer on staff. Real marketing directors have an understanding of intellectual property laws. Photographs, fonts, illustrations, and other design elements found online are not free for you to use, especially for commercial purposes. Further, marketing personnel are meant to understand consumers. First and foremost, the responsibility of marketing is to know what motivates people, and how they will react. Not knowing that professional photographers would certainly notice the increased traffic on their Flickr pages, and be upset about someone using their work without contacting them is a fatal mistake. If they fail to understand this, do they understand what Toyota customers actually want from their vehicle? There may not be a correlation, but it begs to be asked.

If I was to guess, I would say it was not malicious intent of Toyota to steal these photographer's work, but was a lack of intellectual property understanding. That does not excuse what they have done. Ignorance of the law is not a valid defense. Whether you are a multi-billion dollar company, or a small boutique, you need to respect the property rights of others. If you are unsure of what you can or cannot do, ask for help from a real expert.

Will you pay for an online newspaper subscription?

I am actually not going to enter the debate over whether newspapers should or should not charge for access to their online material. In the end, some will, while others will not.

Online subscriptions will provide revenue for some newspaper companies. The restriction of access will cause some newspapers financial grief.

What I will say is this, if the management of a newspaper company is too preoccupied with this decision of whether to charge or not, they will fail.

Why will people pay for information from one source versus another? Content and reputation. Otherwise known as their brand. If we know the brand of the news source represents the very best information, and what they provide enhances our lives, we will pay. But if your paper is just kicking out basic information that was covered by a dozen other sources, you lose.

Rather than debating "do we charge, or don't we," it is time to evaluate how your media source is different and what value can you provide the readers that they cannot get elsewhere. When you have a valuable, trusted brand, you can more easily find your income.

Did I ask to be spammed?

There are a lot of ways to connect with your customers, they can be a fan on Facebook, follow you on Twitter, or even the classic opt-in to receive email updates. The important thing is knowing what to do with those customers once you have them. How do you communicate with them, how often, what do you say? These are even more important than the campaigns to attract the customers to opt-in to your marketing efforts. Not only because of "unfollows" and unsubscribing, but the long-term damage to your brand.

Open your email anytime and it is sure to have a message or two that you simply do not find useful. All too often though, there are companies sending messages that make you ask, "did I ask to be spammed?" I like to have updates from the brands I use, it is helpful, helps me remember what is going on, and hopefully provides monetary benefits to being one of the customers who is on the list.

Take a look at the messages you are sending your customers. Ask yourself honestly, does the content represent a significant value to them, or to you? Most of the time we will find that the message is more about us than the customer. This will often result in the customer feeling we are just providing spam.

You may not see that perception from the number of lost fans or customers leaving your mailing list. Many will just ignore, delete without reading, or hit the "mark as spam" button on their email program. So it is always important to remember who keeps you in business and put yourself in their shoes. Your brand reputation depends on it.

Do I intervene?

Funny how the human brain works, isn't it. For some reason I just thought about an experience from just over a year ago.

I was trying a new restaurant with some friends. We lived out in a remote suburb, and it was exciting when something new opened that was not a franchise chain. The menu was quite eclectic, southwest fusion and gelato. Big rewards for creativity and focus on some of the hot food trends of the time. The woman helping us made mention of the owners having a meeting that night. There were six individuals at a table, having big ideas and discussions about marketing tactics.

I really could not help overhearing their discussion. It was a small dining room and they were pretty loud. As they discussed their ideas I just sat there nodding in disappointment. My friends could see what I was thinking, and said I needed to drop them my name and offer to help. I thought that would be a bit presumptuous of me to interject and try to tell them their ideas were money traps that would not make a difference in their business.

The meal was predictable. Not bad by any means, but didn't offer much of a compelling reason to come back. Within a few months they had gone out of business.

What would you have done? If you were a small business owner, do you want someone to politely interject and offer ideas?

Listen to your customers - but not that way

You need to be listening to your customers. Success is that simple, as long as you remember what to do once you have heard them. A business also needs to acknowledge what their purpose is, to provide for, solve, or otherwise make our consumer's life better. Why else would they part with their money if your business did not provide something of value to them? We need to listen to our customers, but if we are not the experts who solve the problem, rather simply facilitating the literal translation of what they asked for, why would they need us?

Henry Ford once said, "if I had asked people what they wanted, they would have said faster horses." Asking a customer exactly what product they want will not yield the innovation that will make you the market leader. You need to listen to your customer's goals, desires, and aspirations to develop a product that they did not know they needed.

Focus groups and other consumer feedback help us understand what is important to people. However, as Ford learned with Edsel, consumers all loved the features of the car but that did not turn into an overwhelming success. In fact, despite the consumer feedback, Edsel is often referred to as a colossal failure. Where Ford went wrong was determining what was most important to the consumers, which was a more affordable car.

Coca-Cola made a similar mistake with a cola formula that was preferred in most taste tests. Despite the positive reaction they received in blind-tasting results, New Coke became a disaster for the company.

Conversely, Dietrich Mateschitz hired a market research firm to test his new soft-drink and received bad news. "People didn't believe the taste, the logo, the brand name." But he launched his drink anyway and Red Bull has been a tremendous success.

The lesson is, if you present product options to consumers, they will pick what they are familiar with. This is not because they are uncreative or resistant to change, but that they have to base their opinions on what they know. It's your job to introduce them to the next thing they will want.