There is barrage of hype around the term “social media”. Everybody is writing about it, tweeting about it, spamming about it, and a lot of people are trying to determine how they use it for their business.
The other day, I mentioned social media as being a useful method to connect with customers or business partners. My colleague politely said, “It is more hype than fact! It really doesn’t substitute for selling or promoting your business. It’s a time waster.”
We talked a little more about about his thoughts and that was the end of it. But the conversation made me think.
What does social media mean to me? Do I use the term too loosely?
Social Media (in my view) is a component of a larger business strategy.
The way I see it there are 3 main factors:
Web Tools that enhance productivity
Sharing technologies to enable you to be part of a community and be in multiple places at once (leverage).
Communication technologies that allow you to better reach within your community.
How do you define social media? Is there a better term?
Technology and the Internet are driving entirely new approaches to product creation, delivery of information and promotion. Whether you have an existing business or are starting a new one, it does require a new mindset and a little outside the box thinking.
1990’s model
Back in the old days of technology (about 20 years ago) companies would hire software programmers, employees, lease office space, create applications, manufacture cds, books and packaging. They would then ship physical products around the world, either directly or through distributors.
Today that same business can be created through an online store with digital downloads. No printing, no production, no shipping! And in some cases, no employees!!
Physical versus Digital
Digital is becoming the new frontier. Why set up a production facility when all you have to do is create content, build a website or online store, and then find innovative ways to find your customers.
While many companies struggled during the recession, Apple has showed this digital model to be profitable building a whole business around iPods, iPhones & iTunes.
The introduction of the Apple iPad and the Amazon Kindle Wireless Reading Device
are changing the way we consume information. You think the world has changed now with Facebook and YouTube. Just Wait!! In the next 10 years we will all experience an entirely new way of consuming information. And the best part for businesses – that consumption will be monetized!!!
As a business owner (large or small) you can take advantage of these trends today.
6 Digital Strategies to Help your Business Catch the Wave!
Software – Downloadable web software is a huge business and is growing at a fast pace. Although there are millions of applications available the opportunities here are limitless. Developing software applications can be as simple or complicated as you want to make it. Bottom line is it requires a good idea and a strategy to take your product to market.
E-Books – E-Books were first introduced to me by one of my mentors in the blogging and marketing world – David Meerman Scott. E-Books can be created for free as an opportunity to promote your brand or company. However there is a growing market beginning to monetize this technology. Here is an example of an E-Book based on the free model that went viral – Marketing Apple – By Steve Chazin.
Video & Audio – Similar to E-books, video and audio content can be used to promote your company. They can be complemented with ads or sponsors or can be paid subscriptions or services. If the content is good, video content can go viral as in the case of IBM’sTim Washer.
Online Stores – The technology to create an online store is so easy today. You can sign up for a variety of programs, build your own store, or get paid a fee for directing people to another companies store (affiliate partners).
Affiliate Partners – In my view this technology is still very much in its infancy. Affiliate companies pay you (the producer of web content) a fee or percentage of product sales. This could be anything from a couple of dollars to a few hundred dollars per transaction. There are thousands of businesses today earning lucrative incomes from affiliate partner programs. More businesses are starting to embrace this approach as an efficient way for promoting and getting their message to customers.
Advertising and Sponsorship – Digital advertising, like affiliates is changing the way companies connect with customers. Some businesses are now finding alternate income streams by having ads or sponsorships on their websites. Again this market is destined to grow.
Becoming Creative
Most musicians today do not make money off downloads of their music. Although iTunes is figuring out a formula so that musicians can get paid, most make their money by building their profile on the web. They create a niche following, build fan sites on Facebook & Twitter, promote concerts and events, and more of them are learning how to sell products and merchandise on the web.
The same strategy can apply for your business.
How do you diversify your product or service? If you sell real estate how might you use an e-Book, a blog, video or an online store? Would an affiliate program make sense? For every referral you receive from an affiliate you pay the web owner a small royalty fee. How could that drive customers to your business? Has it ever been done? I’m not sure.
I am really excited about where my business and this website are moving. The last month has been fantastic opportunity to connect with people all over North America. The best is still yet to come because I am going to show you how to build a business using many of the technologies I have described.
How is your business creating income from the web?
Imagine you have an important business meeting. You worked hard to get this appointment and you know this person would be a great partner for your business. You want to make a good impression. You take extra time to prepare for your meeting and you make sure you dress professionally and appropriately.
Chances are you wouldn’t dress in a pair of sweat pants, an old t-shirt and running shoes.
Yet many businesses dress their website this way. Their website is an afterthought.
Website as a Central Source
Social media strategists often say, the first step to creating a social presence is to have a good website. The main purpose of social tools like Twitter, Facebook, Linkedin and other forums is to drive people to your website. According to the Edelman Report Barack Obama’s election team used 15 social networking sites to get the word out. They created a central website at BarackObama.com and that had videos, blogs, calls to action, and resources that people could use and share. (I’ll include a link to the report at the end of this post)
There are 3 components to a good website.
Graphics Design & Layout
Programming & Development
Usability
It can be difficult to find website design companies who have mastered all 3 of these skills. If you do, you’re likely to pay big bucks! IT companies will tend to hire in-house, but small businesses usually have limited budgets.
6 Ideas for Building a Website on a Budget
My website is about 3 weeks old and has been created on a small budget. This is still a work in progress but here are some resources that I use today:
Wordpress – Wordpress is easy to use, includes great themes, and it’s free.
Netfirms – URL Registration & Hosting – Hosting is generally inexpensive
IstockPhoto – For low-cost images – or Flickr for free images
Website Grader – from Hubspot – this is a free tool that lets me grade my website for design, web usuability and Search Engine Optimization (SEO)
Technical & Design Support – I am not a techie so I have a friend who helps me with any coding or technical work. Usually all it takes is an email and he can create something quickly for me.
Access to Communities – Accessing web communities is one of the most powerful resources I use. With Twitter, Linkedin and a new community called Third Tribe Marketing, I can get answers to most questions, business, marketing, sales or web related.
Developing a good website is worth the time investment.
At the end of the day your website can make your day-to-day sales efforts a lot easier.
In my last post I talked about how challenging it can be when we don’t take the time to listen or get to know our customers.
This is usually the biggest challenge we face in our businesses or jobs. Why? Because it takes time and planning.
If we are a small business the task can seem daunting. Marketing and business schools provide some simple methods to help us get started.
Market Segmentation
First to understand our target audience we need to segment into categories like age, gender, education, income, marital status, etc. Then we segment by interests, social class, attitudes, beliefs, etc. We begin to get a picture of our what our typical customer might look like. (there is a resource link I’ll provide at the end of this post)
When we start this process it can feel a little like guess work. But as we talk to people, get to know our audience it becomes more real and believable.
Well.ca(Canada’s Online Health and Beauty Store) has the ability to create a real picture of their customer, because they gather data when customers order. They can segment by age, gender or marital status and see trends in buying habits. They also identify new customer segments as they emerge. They can adapt and direct their messaging towards these new markets.
Vertical Markets
Corporations will tend to split their markets into what is called “ verticals or vertical markets”. The best companies treat this work like a science. They create products or services specifically for a target market. They design all web and marketing materials to talk directly to these customers. Sales people learn the language of their target audience. Good sales people create buyer personas. They know what magazines, newspapers and communities their customer belongs. They listen and talk the language of their clients.
So the lesson. Regardless of the size of your business, get to know your customers. Think about their needs, interests and how your product or service might fit for them. Ask questions. When a customer buys from you, ask them, “why did you buy from me?” If someone doesn’t buy your product, keep a relationship and ask them, “why didn’t you buy from me?” Make your business a learning ground, get to know your customers and be adaptable.
A while back I was at a large business gathering. These events are usually designed for people to meet, share ideas, network and find more business. I met about 20 people and had some great conversations, asked a lot of questions and exchanged business cards.
There was one woman who approached me and before I could even tell her what I do, she started selling me. “You need these marketing and print materials and let me tell you we also offer design services …. Blah, blah, blah” I tuned out. She was determined to sell me. We talked for a little longer but she did 99% of the talking. After a few minutes I found a convenient excuse to get away (my beer glass was empty) and I left the conversation.
By 8am the next morning there was an email (from her) in my inbox telling me how her great products would save me money and be just what I needed to get more customers.
She assumed that I needed to save money or get more customers?
She never even asked me a question?
This is a challenge for many business entrepreneurs and sales people. We get locked into a mindset that we need to sell. I have done this myself. I’ll tell a prospect what I do (an elevator pitch) and then they will comment back, “we don’t do it that way”. And then I find myself back peddling and saying, “oh no but we can also do this… blah, blah, blah”. Damn! I’ve lost them and I lost my credibility because I was trying to sell when I should have been listening and developing a relationship.
When I work with clients I ask three questions:
Who is your typical customer?
Could you describe them to me (buyer persona)?
What is your target market?
These questions can be difficult to answer. I also believe they change as you get know your business, your customer and as market conditions change. Often a client will say, “well everybody could use what I offer?” I’ll say, “Hang on! Let’s step back! Everyone? Does your product cost money?” ”Yes?” “Oh! So you need people with money?” Yes!
That’s a target market! At least it’s a start. I’ll then work with them to find ways to narrow it down even further.
In a future post I will give some examples of how to define your target market and identify your buyer persona. Or better yet, if you have a business where you would like to run through this exercise, then connect here in the comments area, on Twitter or Linkedin.
Posted by kboon on January 26, 2010 under Stories | Comments are off for this article
Had the pleasure of listening to a talk by Ali Asoria, the CEO of Well.ca.
Ali started Well.ca back in September 2007 in the back of his dad’s pharmacy, and within two short years the business has grown to be the top online health and beauty store in Canada. They made Profit Magazines “Hot 50” as one of the fastest growing companies in Canada in September 2009.
What’s the secret to their success? Here is a quote from their website.
What makes us different?
“Our company is made up of kind, friendly people that want to go the extra mile for you. With customer care at the core of our business, we strive to give you the best shopping experience possible!”
The answer is Customer Service. Ali explained how the customer is at the core of their business philosophy. Every interaction is an opportunity to provide exceptional customer service; even to the point where they include a hand written note on every order.
When they hire new staff, they want to find the most friendly people and create as Ali says, “a local store feel”. They are not afraid to admit when they’ve made mistakes and they take the time to talk to their customers.
Obviously there are other factors which enhance the customer experience. Some you can see on their website, which is well designed with easy navigation, fast checkout and the incentive of free shipping.
But there is something more to Well.ca.
When you visit their website you get the real sense that they’re interested in you. They want your business and they want to connect. There are profiles of their employees, team photos and they are connected on Facebook and Twitter. They are blogging and creating a two-way conversation with chat and a prominent 1-800 number.
When people ask me, how do I do use social media for my business?
Well.ca actually has the answer! Create a quality website, be friendly, approachable and take care of your customers! Engage in a dialogue and be there to assist and support.
Ali closed his talk with two comments that I thought were most enlightening.
“We don’t spend on marketing” and,
“We are a technology company“. (they are not a drugstore)
Perhaps ideas for future discussion.
In my next post I will talk about Haiti, the fund raising efforts and the ability of communities to make a difference.
Posted by kboon on January 25, 2010 under Stories | Comments are off for this article
Last week I had the opportunity to attend the first Guelph Technology event hosted by Linamar. There were a few hundred participants representing various industries from manufacturing, government, entrepreneurs and a growing number of technology companies. Jim Estill, the founder of EMJ & Synnex was the keynote speaker and there were several breakout sessions throughout the day.
There were two speakers with insights that I thought could benefit every business owner or entrepreneur. One with traditional businessbackground, and the other on the leading edge of newer technologies. Both demonstrated (in different ways) how they have used technology to increase productivity, communicate more effectively and increase revenues.
Phil Greenway from Greenway Home Products (GHP) described some of the changes within the past 50 years of his career. GHP develops, manufactures and distributes a broad line of water, heat and home products. They have a dealer base across North America and manufacturing locations around the world.
Phil spoke about business in 60’s and 70’s, before computers and fax machines. He described his early experiences of setting up a global business, describing his travels to Western and Eastern Europe (before the fall of the Berlin wall). With no computers or cell phones, contact with home office was often scattered, and it could take days or weeks at a time before he could connect.
In the 80’s computers were introduced and by the 90’s bar-codes, EDP technology and supply change management streamlined the whole inventory and manufacturing process. Communication became instantaneous and global markets opened around the world.
Productivity has been one of the main benefits of technology for Greenway, where at one time it required 4 employees to generate $1 million in revenue. Today it takes 1 employee to create that same $1 million.
Phil finished his talk by describing how Communication, through video conferencing, with tools like Skypehave saved tens of thousands of dollars in travel & phone costs. Being able to track inventories online has changed how Greenway distributes and manufactures product.
Although privately owned Greenway and its various companies are worth millions. Their success has been due to their ability to change with the times and adapt technology to their business model.
In part 2, I will talk about Ali Asoria and the success of Well.ca.
Posted by kboon on January 22, 2010 under Stories | Comments are off for this article
My site is officially 2 weeks old and I’m excited about the response and feedback that I have received from many of you. I want to give you an idea of what is coming.
My passion is to share ideas that add to our knowledge and help us improve our life (or business) in some way. I am particularly passionate about technology and our ability as human beings to create wealth. Whether we have our own business or work for someone else, we all have our dreams and goals. There is a drive within each of us that wants to create a better live, not only for ourselves but for those we care about.
In my travels I meet many brilliant people, innovators, entrepreneurs and socially conscious individuals who make a difference. When I talk or listen to these people I’m always fascinated by their stories. I want to understand what makes them tick and how do they feel about life. If they have a successful business I want to know, what is that golden nugget, or idea or philosphy that allowed their business to succeed.
These are the stories I want to tell; stories of people using technology, automation, social media; building relationships, communities and establishing trust; with products that are innovative and exciting; with business models that are simple and effective; and with leadership qualities of inspiration, empowerment and drive to make a difference.
If you have your own stories feel free to comment or connect with me on Twitter.
Dave Carroll was recently on the View (Video). He was the musician, who was on a United Airlines flight going from Halifax to Chicago. He saw his guitar being mishandled by baggage handlers, and when he arrived at his final destination his guitar was damaged.
After being turned down (several times) by United staff for compensation, he decided to write a song and make a video. The video became a smash hit on YouTube and as of today has been viewed over 7 million times.
Dave harnessed the web (and the power of YouTube) to gain a worldwide audience, expand his reputation and earn money. As business owners and entrerpreneurs, what can we learn from Dave’s experience?
Here are 5 ideas that stand out for me:
1. Be Likable – One of Dave’s best traits is his likability. When you listen to Dave’s story, watch the videos or go to his website, there is a quality that draws people to him. Likability attracts an audience.
2. Have a Clear Message – Marketers take note. Dave and his band were able to craft a simple, clear message that had an impact not only on the people who watched the video, but on companies who are recognizing the need to respond more proactively to customer complaints.
3. Showcase your Creative Talents – Dave (and his band) have a skill at songwriting and performing and used their skills to reach their audience.
4. Keep your Risk Low – To write the song and produce the video required time and maybe a few hundred dollars. Not every method will work so be prepared to experiment and try a variety of approaches.
5. Diversify your Income and Opportunity – Dave and his band have been able to use this event to sell more music cds, and tour more. He has also been able to expand his reach with paid speaking gigs and other income sources. I like the affiliate ad for custom hard shell Calton Cases (at the bottom of his home page).
Posted by kboon on January 14, 2010 under Stories | Comments are off for this article
The best way to start this blog is begin with a story.
This will be the first article in a series on Entrepreneurs who have created success using the web. I’ll try to vary the industries because I want to show examples from a variety of backgrounds.
Markus Frind is the CEO of Plenty of Fish, who as a lone entrepreneur and software programmer created a free dating site. His website has attracted over 10 million people and has generated millions of dollars in ad revenue. Started as one entrepreneur with an innovative idea, and created a personal fortune of over $10 million per year.
According to this interview on CBC he spends an hour or two a day working his business.
(Note: Please let me know if you have any troubles viewing this video)
The Question for business owners and entrepreneurs:
What has Markus accomplished?
He had anIdea.
He Committed someTime to build the website.
He made it easy for visitors to understand the Value & Message: Internet Dating and IT’S FREE!
He Built a Community – The tools were made simple for a community to develop.
He Found a Revenue Stream – Through Google Adsense.
He made the business Self Running – He created a business that is easy to manage and his time commitments are minimal.
These are some valuable ideas for business leaders and entrepreneurs who want to create income from the web.
4 Comments to Read 
There is barrage of hype around the term “social media”. Everybody is writing about it, tweeting about it, spamming about it, and a lot of people are trying to determine how they use it for their business.
