By now, you’ve likely heard something about this Internet thing called “social media.” And, perhaps 2010 is the year your business or not-for-profit organization will dive into the “social marketing” pool. Terrific! But, let me offer a caution: look before you leap. Adopting a social media strategy isn’t a must-do proposition for everybody. Let’s take a look at the pros and cons of social marketing. Experience tells us it always pays to know how deep the water is before jumping in.
Facebook, Twitter, LinkedIn and similar social media tools are relatively simple, inexpensive ways for businesses and organizations to connect with customers or constituents, and to introduce products or services to new audiences. Not surprisingly, more and more companies are launching robust social marketing strategies in response to impressive growth statistics for global Internet usage, and in particular, social media. If you haven’t been paying attention, consider:
• Internet World Stats reports more than 1.7 billion people worldwide are connected to the Internet – slightly more than one quarter of the earth’s population
• Since 1990, Internet usage has skyrocketed 380 percent
• According to company figures, Facebook now has 350 million active users, half of whom log in on any given day
• More than 70 percent of Facebook users are outside the U.S.
• More than 700,000 local businesses have active Pages on Facebook totaling more than 5.3 billion fans
• It’s estimated that Twitter – the 140-maximum-character, micro-blogging site – records 55 million monthly visits
• SearchEngineWatch reports the fastest growing Twitter demographic is people ages 45-54, slightly more than the expected demo group of 25-34 year olds
• LinkedIn reports more than 53 million members in more than 200 countries and territories around the world
• A new member joins LinkedIn approximately every second; about half of Linkedin members are outside the U.S.
The rapid adoption and viral nature of these social tools, and the price tag – usually free – make them especially appealing to aggressive marketers who are looking to swim in deeper water. Before you take the plunge, however, here are several important considerations.
1. Social marketing is best viewed as a conversation. The real power of online social connections is the interaction between businesses and customers (both critics and fans) often in real time. Such interaction provides valuable insight into what consumers appreciate, and what they find annoying. Most importantly, these social connections pull back a kind of cyber curtain revealing what dissatisfied consumers are sharing online about your products and customer service. This digital intelligence presents unprecedented opportunities for businesses and organizations to immediately respond to such negatives.
2. Social marketing can provide a competitive advantage. By engaging in direct, real time conversations, and by using key words and phrases to monitor the Web for references to its products and competitors, the socially connected firm will often have a leg-up on its competition. In a business environment where profit margins are razor-thin, every bit of competitive advantage is necessary to stand out in the marketplace. But understand that it requires real commitment by businesses to proactively seek out this digital information. It’s not a push-the-button-and-it-happens-automatically proposition.
3. Social marketing is a tool, not a solution. Facebook, Twitter, et al should enhance, not replace traditional marketing. Some companies adopt an all-Internet strategy, eschewing traditional advertising, direct mail, and the like. But typically these are firms whose audiences essentially live on the Internet – usually smallish startups that depend on the viral nature of the Web to advance products and services. Traditional companies should look for ways to integrate Web-based messaging into overarching marketing strategies. And, social marketing can be a great tool for tracking targeted discounts, coupons, and other such online-only offers.
4. Social marketing requires sufficient personnel and financial resources. Blogging, Twittering, and Facebooking – all require regular updates of new, compelling content. There are few things less interesting on the Web than a months-old post on a blog, or that “tweet” you sent ten days ago. Social networkers will easily sniff out half-hearted approaches. This is critically important – you’re either in or you’re out – there is no in between. In short: social Web strategies that aren’t taken seriously, and properly supported by management, are doomed.
Social marketing is very much in its developmental stage. Organizations shouldn’t feel pressured into adopting a social marketing strategy just because “it’s the thing to do.” Without the requisite staff and financial resources to properly engage in an online strategy, social marketing is probably best left alone. There is, after all, the risk of mishandling an online promotion (see Marsh Supermarkets’ unintentional but expensive Facebook fiasco.) Without a deep understanding of how to capitalize using social connectivity, it’s entirely possible more harm than good might come from the experience.
Still, a case can be made for many organizations to engage in some form of social marketing. The ability to determine and better understand how customers really feel about products and services is the long-sought Holy Grail of marketing, and the availability of social media tools moves us closer than ever to this elusive goal. Social media’s global reach and relatively inexpensive cost are too powerful to ignore. Just be sure to handle with care.
