Sanjeev Aggarwal's Blog

November 25, 2014

How Social Media Factors Into the SMB Equation

March 30, 2011

Is there a Method to Social Media Madness?



Co-authored by: Sanjeev Aggarwal and Laurie McCabe, SMB Group, and Brent Leary, CRM Essentials  SMB adoption of social media for sales, marketing, product development and customer service is on the rise – but how are SMBs tracking, analyzing and measuring the success of their social media endeavors?

In our joint SMB Group-CRM Essentials “2011 Small and Medium Business Social Business Study,” we surveyed 750 SMB (small business is 1-99 employees; medium business is 100-999 employees) decision-makers about their use and plans for social media for sales, marketing, customer service and support, product development, HR and other business functions.

Featured Study Highlights

To put social media adoption in context, we asked several questions to better understand how SMBs accomplish their business objectives though different channels and mechanisms, including, “How does your currently track, analyze and measure the success of the company’s social media efforts?”

In the medium business segment, 52% of respondents indicate that they currently use social media. Among these respondents, about 19% say they use it in and “ad hoc, informal” way, while 33% indicate they use it in a “structured, strategic” manner. When we take a deeper look at how medium businesses using social media track, analyze and measure success of social media efforts, we see that companies that take a strategic approach are more likely to incorporate a greater number and more actionable metrics to measure social media effectiveness than their informal, ad hoc counterparts (Figure 1).

  • For strategic users, actionable, customer-centric metrics such as referrals (14%), click-through rates (12%), and inbound links (11%) top the list. These are followed by social media measurements such as number of followers and friends (9%), and sentiment analysis (9%), along with anecdotal feedback (9%).

  •  Companies that use social media in an ad hoc manner are more likely to rate “softer” measurements, such as anecdotal favorable feedback (6%) and buzz from social media (4%) as top tracking criteria and yardsticks for success.

Not surprisingly, SMBs that take a structured, strategic approach–and use more actionable metrics–are also more satisfied with the results of their social media efforts than those engaging in an ad hoc manner.

This underscores the need for better integration of social media with traditional sales, marketing, and service/support solutions–along with better tools to track and measure results.
Figure 1: Medium Business: Comparison of Strategic and Ad Hoc Users Criteria to Track and Measure Social Media Implementation
 
 
 
 

 


Quick Take

For SMBs to truly evolve into “social businesses,” they need to be able to easily track, measure and tweak the results of their social media investments across a wide range of business activities, from marketing through customer service and product development.

Although the social media drumbeat is loud, SMBs’ enthusiasm will be curbed if they can’t figure out what impact their social media initiatives are having. Whether on their own or via partner solutions, vendors will need to give SMBs the tools they need to integrate and evaluate social media efforts into their larger business strategy and framework.

Because social media engagement does not occur in a vacuum, businesses will want to measure social media efforts in context of broader sales, marketing and customer service or other initiatives. Although collaboration, CRM, marketing automation and other vendors are integrating social media into their existing solutions, few provide the analytics required to track and measure the effectiveness of social media and its different channels in an actionable and streamlined manner.

March 2, 2010

Relevance of Marketing Tools/Media in Customer Acquisition

The topic of lead generation and the role of various media solutions in the lead generation process draw significant conversation. From a survey of small businesses done in the summer of 2009 and detailed in my blog, GoToMeeting‘ from CitrixOnline or ‘Intuit Website’ from Intuit. This form of media effectively cultivates and nurtures demand. ‘Small Businesses interest in Social Media Increasing ‘ and with regards to tools used by small businesses to promote their business (not generate sales leads), 77% of small businesses are using or plan to use social media tools. Why has the use of social media seen such a dramatic increase? This is primarily driven by several factors:   

  • Change in the personal communication environment and habits of consumers and business workers  
  • Low barriers to entry: the cost of participating in the social media communications are very low and some—tools like Twitter, Facebook, WordPress and LinkedIn—are even free 
  • Social media solutions are a one-to-many form of real-time communications
  • Social media is much more than a digital form of viral marketing – it is an effective and inexpensive way to convert contacts into a referral network  

   

Traditional Media tools. On one end of the spectrum, marketing is responsible for Demand Generation by driving awareness. Traditional media tools such as radio, television, newspapers and business journals (in their print form), provide broadcast opportunities and are good for creating broad awareness to develop interest among consumers and businesses – otherwise known as Outbound Marketing. Successful examples include the TV commercials like ‘GoToMeeting’ from CitrixOnline or ‘Intuit Website’ from Intuit. This form of media effectively cultivates and nurtures demand.

New Media/Digital Media include Social Networking tools (Facebook, Blogs, Twitter, LinkedIn, etc.), Webinars and Podcasts, and Search Engines. Such ‘inbound marketing’ tools enable businesses with product/service increase awareness already developed to a certain level through traditional tools to further draw in consumers and encourage their further investigation of the company’s product or service.  

An SMB survey from Citibank found that some small businesses saw little reason to hop onto the social-network bandwagon. The majority of them found sites like Facebook, Twitter, and LinkedIn to be of little help in finding new business leads. While social media can certainly provide channels to network and help a growing business flourish, many SMBs do not have the manpower or the time required to take advantage of them—that is, use them to look for business advice or information. It is up to the business to bring in the relevant social media conversations related to crowd-sourced recommendations for their company and solutions into their company website or other discussion forums. Techniques that do this are illustrated very well in the “Inbound Marketing” book by founders of HubSpot

Personal-touch Media tools like company website, e-mail marketing, live webinars, and professional advisors provide the information to convert exploring consumers and business buyers into potential leads. The new media-based inbound marketing solutions drive the explorers to the company website and/or additional personal touch based media and channels. However, SMBs must work to channel their company relevant social media discussions into their website. These social media conversations are similar to word-of-mouth and personal communication methods. Ultimately, these personal-touch media solutions are directly involved with actual lead generation, ongoing lead nurturing and finally conversion to customers as well as cross-selling and up-selling to existing customers continually deepening prospect relationships    

Some of the new marketing automation and lead nurturing solution companies like Marketo, HubSpot and Demandbase are combining some of the key aspects of New Media/communications and Personal-touch Media/communications solutions that provide great value to the SMB and mid-market companies for both outbound and inbound marketing – and most of these solutions can be implemented for a fraction of the cost of a marketing person.    

September 27, 2009

Interest in Social Media among Small Businesses Correlates to Number of Years they have been in Business

 

Related insight to my recent blog Small Businesses interest in Social Media increasing rapidly , related to the Number of Years a small business has been in existence. See figure below:

photoshop-2

Adoption and use of social media is correlated to ‘Number of years in business’ and indirectly to the age of the owners. As the figure above shows, longer the small businesses have been in existence (indirectly correlated to the age of the small business owner), the usage of social media declines. Small businesses that are in existence for 10 years or less, most likely will have Gen X or Gen Y business owners who have grown-up in the internet age and are well tuned to and more likely to use online communication and collaboration – are much more likely to adopt social media. In their personal lives, they have extensive experience in using web-based tools like MySpace, Facebook, YouTube and real-time communications tools like chat and text-messaging – for one-to-many and one-to-one communications. They are more likely to be influenced by online communities and collective ratings of products.

Small businesses that have been in existence for more than 10 years would have Baby Boomers as their owners. Boomers interact with others in their communities around shared interests and common issues, but they prefer to use more traditional communications tools like e-mail and voice communications. Boomers participate heavily in word-of-mouth and value personal recommendations and expert opinions, but they have not embraced social networking in any significant manner. It is difficult for people to change habits quickly. However, if the owners of these long established businesses find that their customers and prospects are increasingly communicating on the social media sites, then it would be prudent to hire a Gen X/Y person who is very familiar with these social media tools to help you develop a social media strategy to cater to your audience based on the social media tools they use.

Even though small business use of social media tools is increasing, not all small businesses need to invest in social media – this needs to be decided based on the nature of your business, your business location and your audience (customers, prospects and partners). Some small businesses that serve local communities in rural areas may continue to do business in the traditional manner, until their audience is ready to communicate with them using these new tools and their revenues and customer satisfaction is impacted by it.

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