I like to call 2011 "The Year of Social Media." Small businesses, franchises, nonprofits and entrepreneurs all got into the social-media game -- throwing spaghetti against the wall to see what stuck. To many, it probably seemed a chaotic mess of apps and gadgets flooding the market. Businesses had a lot of options to try to connect with customers, and some clear lessons emerged from the chaos.
1. Loyal customers are your best channel to new business.
A lot of marketing energy is spent on branching out to find new customers. That's fantastic and necessary. What 2011 showed us, though, is that a loyal customer is still your best customer and ultimately your least expensive path to new customers. Loyal customers are more likely to engage with you and your brand community -- and connect you to their networks on Facebook, Twitter, LinkedIn and other social destinations.
Related: 5 Ways to Show Customers You Care
Your raving fans share your enthusiasm when they "like" your page, retweet your post or click the social share button on your e-newsletter. Happy customers make word-of-mouth referrals to their friends and networks and share kudos on review sites and in local online business directories. The social engagement of your happy customers is visible to their connections and to prospects visiting your social sites. Your best customers will help bring you more customers, so don’t forget to engage them as you seek new business via social media channels.
2. Social participation fuels your marketing.
It may sounds backwards, but smaller scale is actually a big advantage in the world of social media. Unlike big companies, small businesses can directly engage with each and every commenter on social media. Use your small scale to your advantage.
- Participate in conversations with your customers. Start conversations on social destinations and jump in to fan the flames of the liveliest ones.
- Respond personally to customers' questions, comments, complaints and compliments. Keep people talking and give 'em something to talk about.
- Social isn't passive. Include a "social call to action" that inspires your followers to share your post or click through to your website or blog. Everything should end with a request for participation, whether it's asking visitors for a comment, photo or story, or inviting them to click to join the conversation elsewhere.
- Authenticity typically comes very naturally to small businesses, so use it to your advantage. While tools make it easy to update your social pages, don't automate too much. Customers can tell when a Twitter feed or Facebook page is on permanent autopilot. Engage your social media audience one on one. They want to know a real person is listening -- and responding.
3. Consumer opinions matter more than ever.
A recent Nielsen report suggests that word-of-mouth endorsement is critical: 78 percent of consumers said they trust recommendations from other consumers, while only 14 percent trust advertising. We trust consumer review even if we don’t know the reviewer. That review or recommendation gets even more weight when it comes from our colleagues, friends or family.
Related: Three Ways to Spark Engaging Social Conversations
Social media have given consumers a platform and unprecedented market clout. Just look at the big businesses that did 180-degree turnarounds in 2011, when customers took to social media to complain about changes. Bank of America and Netflix are dramatic examples. One voice starts a ripple, which can swell into a social-media tidal wave.
Reviews, opinions and recommendations -- good and bad -- matter. Mobile apps have enabled consumers to check out a restaurant or retail store before buying and post reviews on the fly. Be sure you know what customers are saying about you online and correct any problems before a dissatisfied grumble erupts into a frustrated scream.
On the flip side, your loyal customers are your best brand evangelists. Thank them for any positive comments they make about your business on social media. Invite customers to share positive feelings about your products or services. At the end of the day, your customer experience is the anchor of your social experience.
4. Success requires testing.
There's a lot of trial and error in social media. Sometimes the social content we think will generate the most response gets none; other things we post spark unexpected discussions. To be more successful, businesses should measure their results and build on what works. In addition to analyzing your email marketing data and surveying your customers, keep track of the number of Facebook fans and Twitter followers, campaigns that generate the most buzz, and the content that inspires social sharing, comments and retweets.
Hopefully, you tried new a few new things in 2011 and gained some insights from your experiences. Next year, successful marketers will integrate their social, local, mobile and promotional campaigns. Look for more on how to do that here.
Related: Your Customers Are Talking. Are You Listening?
Life insurance as low as $14/mo for $250,000 or $21/mo for $500,000 of coverage. Contact MetLife®
Comments:
Thanks for this quick summary of how any small biz can benefit from using social media wisely. I agree with all your points. As I see it, the impact comes from making the relationship SOCIAL. In other words, every post should aim to either start the conversation or maintain the conversation, with useful, helpful information. Raving fans, word-of-mouth referrals, sales, and everything else follow from the conversation.
I am searching for ways to transform my passion for thai massage and teaching into a successful business in Barcelona, Spain, where I live. Your post was very interesting and useful, thanks.
Hi Gail! I have gained some important information from this post. I like your way of explanation. Thanks for sharing.
There are, in our mind, two problems with this story (there might be others): 1. It's still retail, consumer-company oriented. We've read in the last few months that only a small fraction of b2b businesses (who account for about 30% of the economy) use social media in any form. 2. There's no mention of how a company might convert social media leads into sales. We're really open to that, because it's got to be a problem. We're particularly welcome comment on the second item. John Heinrich, Chief Mentor American School of Entrepreneurship www.theasoe.com
:)
Great post Gail...You are spot on!
I'm wondering what next year will be: The Year of Listening? Perhaps, everyone has learned the most important lesson of them all: Social media is NOT about 'media'; it's about building relationships with your audience..
If anyone want to learn from the experience of 2011 social media , then the thing is not to avoid the negative response of the customer or anyother person. Consider the negative response same as the positive one and even be more careful for the negative and try to turn it into the positive one and show your skill and ability to provide people the best and as per their need. Thanks for the other nice points.
Social Networking in the 21st Century is probably the best way to grow your business
Hi entrepreneur.com, I was just writing my blog about my startup experience (here http://bit.ly/umFsjU) and I was impressed by this article! I may use it in an upcoming post. At 19, I feel social media is at the rails of the economic train.
Very well written comments-however this Social media and Social participation will reuire a reeducation of traditional marketingmethods combined with a savy we have never seen before.
Social media and Social participation is definitively a great way to go, but realistically speaking is not enough. average tweets, diggs, and othe posting type last less the 1 minute on a potential consumer screen. The startegy should be including the old tactics with search engine optimization, activity diggest to your well established costumers and partners and other. the viral nature of social media is good for the short term, but as any business long lasting presence is what realyy does the trick.
I would have to agree with "loyal customer is still your best customer". I've been with most of my loyal customers for more than 3 years and it keeps on adding as they refer me most of the time with their business friends. And yes, it's totally important that you participate with your social circle; this result to a more visibility of you or your business expertise.