Three reasons social media marketing favors small businesses
Sep 22nd
I’ve spent some time this week attending a few online webinars and catching up on my blog reader and I noticed an interesting trend. The conversations, research, presentations, and case studies focused entirely on large corporations.
For example, I sat through a Forrester presentation on new social web marketing analytics and their ideas on measurement took resources that were way out of reach of the small business owner, meaning … most of us.
Look through the success stories in your blog reader. Nike. Ford. Coca-Cola. And of course the ever-present Zappos. Is anybody paying attention to the little guys?
We keep hearing about the great opportunity for small businesses to “take part in the conversation” but is that really true? In the daily dogfight for consumer attention, are they being overwhelmed by the big brand mega-productions, online promotions and games? Are small businesses going to be crowded out by the big chains and big marketing budgets?
No! It’s time for the small business owner to rise up and embrace the social web! Local businesses CAN have an advantage through social media for these three reasons:
Local angle — Social media’s greatest power is when it is used in a way that is targeted and local. I could care less about a tweet from a mega-brand, but I would certainly be interested to get to know a local shop owner in a personal way.
Here’s an example. I don’t follow Starbucks on Twitter and probably never will. However, I do follow Brian Myers, the owner of JaVerde Coffee here in Knoxville. We became friends over Twitter. Although his shop is 15 miles from my home, I go out of my way to support his small business entirely because of our personal Twitter connection. That’s how business works!
Personal touch — One time Brian saw this tweet come through: “On my way to JaVerde Coffee but forgot my wallet!” The shop owner replied, “Come on by, this one is on me.” He just won a customer for life.
Even though companies like McDonalds may fill a room with tweeters, I don’t think they could ever match the connection and loyalty a local business owner can drive with its customers. If Bank of America tweets every minute of the day for the rest of my life I am probably never going to connect with a real person. And for a small business, that is everything. It’s not just about coupons. It’s about caring.
The ROI advantage — Culturally, I think it is difficult for many large businesses to do anything more than check a box on social media because they expect all the results to be neatly assembled on an Excel spreadsheet or infographic. If you have a moment to spare, I encourage you to watch this three minute news story about a small bakery’s use of Facebook. Here are some of the social media benefits described in the clip:
- Higher customer loyalty/number of visits
- Higher rate of spending
- Frequent customer connection
- A channel for customer service
- Emotional connection to the brand
- Source for new product ideas and customer polling
Now if a customer provides an idea for a great new pastry, how do you measure that? I suppose you could create a pie chart. Pie chart! Get it? Oh, never mind.
For a local business using an essentially free social media platform, this list of benefits is pretty impressive. In fact, it’s revolutionary.
So while small businesses may not be getting the spotlight on the blogosphere, there is no question that, done right, there can be great opportunity in this critical segment of the economy.
What is your experience? Do you have any great case studies from your city you would like to share?
Not Everyone Knows as Much as You Do About Social Media
May 21st
A guest post by David Lifson …
Small business owners. They’re an impressive group that must handle every element of their operation – from accounting to inventory, and hiring to firing.
Maybe the most important part of the business they need to manage? Marketing.
As we continue to define and quantify the value of social media marketing, small business owners are slowly joining the party. However, we have to remember that they aren’t here in mass yet. In truth, the number of small business owners who understand, use, and capitalize on social media marketing is minuscule. Yet that’s something we tend to forget, which in turn, widens the gap between the evangelizers and innovators of social media. We continually have to put ourselves in their shoes. And when we do that, we really need to understand the hurdles that they’re facing when it comes to social media marketing. So let’s look at few obstacles… and what we can do to overcome them.
Newness
It’s important to remember that social media marketing is still new. It’s difficult to tell a small restaurant owner that they should scrap their 25 year old phonebook ad and fire up a Twitter account. And it’s safe to say that the majority of them are thinking “Why should I blog?” (they may also be asking what a blog is, for that matter). Either way, it’s important they feel comfortable. Let me explain: you know that feeling you get when someone rambles on about a new technology that you know nothing about and then that person acts mystified that you aren’t in the know? That’s how most small business owners feel when people talk about social media. And it doesn’t feel good. Social media marketing evangelizers and innovators need to remember that not everyone lives in the tech world. When on-boarding small business owners, keep that caveat in mind.
Time Commitment
The beauty of that 25 year old phone book ad is that it’s been on cruise control for 25 years. It requires minimal time investment. Social media on the other hand, is perceived as some abyss for small business owners to get lost in. They “heard from a friend of a friend that the guy who runs the hardware store down the street got lost in Facebook last week and hasn’t been seen since.” And to be honest, small business owners who don’t have someone to tackle their marketing also lack the extra time to spare on social media. Instead, it needs to become a small part of their day, like going through email or balancing cash drawers. The best way for the small business owner to take a proactive role in the social media marketing is to carve out a schedule. Spending 10 minutes a day, three days a week parsing through comments, mentions and reviews can be a great way to start. Think of it this way — why not do your social media posting and updating during your coffee break?
Fear
For the small business owner, social media marketing still has that wild west feel. From pondering what their first tweet should be to dealing with less-than-friendly reviews on Yelp, small business owners are scared they’ll do the wrong thing. Some don’t want to do anything at all. One way they can combat this when first dipping their toe in is to just listen. It’s important to get a feel for how they’re perceived in the social web. It might make sense to scope out what their competitors are doing in social media. (Nothing turns fear to fight like a little competition, right?) Set some Google alerts, search by keyword on Twitter, get a feel for what people are saying. Listening to what customers and influencers are saying on the different social media channels can help small business owners overcome the fear that they may feel when first diving in.
Value
We’ve heard it time and time again: “How does social media marketing impact my bottom line?” Small business owners are accounting for every penny and every hour. Time spent doing something that doesn’t directly impact their bottom line is often eliminated, and quickly. The way to scale this hurdle is twofold. First, explain that social media levels the field. Customers can interact with businesses and vice versa. Reiterate that. Social media gives small business owners the ability to interact with their customers. Secondly, to get a sense whether or not social media is having any financial impact, small business owners need to understand if their traffic is coming from social channels. Train cashiers to ask how customers heard about the shop. Have a customer email list? Poll them to find out what social networks they use.
It helps to remind ourselves every now and then that the vast majority of small business owners still see some major roadblocks when it comes to social media marketing. And that’s OK. What’s important though is that we help them out. Show them around. Don’t talk down to them. On-board them in a way that’s… well… social.
David Lifson is the CEO of Postling (postling.com), a web tool that helps small business owners manage social media marketing. Follow Postling on Twitter at @postling.







You’re in marketing for one reason: Grow.
Grow your company, reputation, customers, impact, profits. Grow yourself. This is a community that will help. It will stretch your mind, connect you to fascinating people, and provide some fun along the way. I am so glad you’re here.
-Mark Schaefer

