Small business | Words For Hire

Social Media: Will the Free World Begin Charging Admission?

April 21, 2010 by Karen Swim

: Image by jking89 via Flickr

One of the early attractions of social media was the low barrier to entry. Basic access to all of the platforms was free and many services did not even have a premium option. The accessibility empowered small to medium sized businesses who had felt outspent in other areas of marketing by big business. A small company blog could compete with big business on a level playing field. Video put commercial production in the hands of anyone with a flip camera. Now that may all change.

Ning has announced an end to free. Twitter now offers “promoted tweets.” Many other free services have either dissipated or switched to premium models. There was always a danger in relying too heavily on platforms that we neither owned or co-opted with our dollars. The very thing that drove social media’s growth may force these companies to shift to paying models in order to support traffic and innovation.

While we still likely see free or low cost services available to all, the introduction of premium services may once again mean that he who has the most dollars can gain an edge.

I do not believe that we should abandon the tools but it is imperative to develop strategies that are not dependent on a specific platform or current day business model. Let us not forget that free also means lack of control. The recent issues with Twitter illuminate this fact.

We must have plans and contingency plans and all should hinge on the non-negotiable asset in all marketing – your customers. Relevant, quality messages will survive any delivery method. The ingredients are the magic not the plate on which they are served.

And yes, we must watch for those telltale signs of change and be ready with a plan should our tactics need adjusting. Change is one of the constants of this digital age. The one thing we cannot do is build a business or marketing strategy on the foundation of free, at some point, we will pay the price.

Have you ever used something that was free and then moved to a premium model? Did you continue using? What impact did it have on your business or life?

The free ride in social media is coming to an end (directmarketingobservations.com)
The free ride in social media is coming to an end (socialmediatoday.com)
Ning Layoff 40% of Its Staff and Say No More to Their Free Service (crenk.com)

What You Need to Know about Business in 2010

December 28, 2009 by Karen Swim

: Image by nDevilTV via Flickr

In the final week of 2009, we will undoubtedly do a lot of looking back and looking ahead. I wanted to take this final Monday to look ahead and share a few things that I learned from reviewing the 2010-2015 strategic plans of other businesses. Read this information and consider how:

You can apply it in your career to become more valuable in your organization
Your own strategic plans compare
You can leverage it to win new business and serve your market in the coming year

I will not share any confidential or proprietary information, but am simply sharing trends and thought patterns that I noted after reviewing strategic plans from several small to medium sized businesses (SMBs). The companies represent a wide spectrum of industries.

The Economy

Without surprise, the economy of the past several years played a factor in all plans. However, not in ways you may expect. All plans reflected a shift in thinking about business processes, and customer engagement. The paradigm shift is driven in large part by increased competition (fewer established competitors fiercely fighting for market share) and the change in consumer behavior and mindset.

Every single plan drives back to the bottom line of growing / protecting market share and profits. All roads to ROI lead through the customer and in all plans the customer was king.

Customers

Two common words could be found in each plan – “customer relationship.” Businesses are interested in building and sustaining relationships with customers. They are shifting their internal processes to better discover and deliver on their customers’ long-term needs. There is a move from transaction based selling to relationships. In the past, companies sought relationship as a way to boost lifetime customer value. While that remains a benefit, the motivation as presented in these 2010 plans is to have the customer truly believe in the business as a trusted partner.

Each company wanted to be a resource for its customers. Planned investments include technology and training that would support collecting better customer information and managing it to provide information and education that was timely and valuable.

Internal

As companies look to shift their external relationships they also want to improve internal relationships. There is a desire to change internal communication structures with more real time, collaborative communication throughout the organization. Executives and front line managers are expected to communicate with teams more frequently, providing feedback and updates about progress against goals. Technology that addresses these needs will be welcomed.

No Buzzwords

None of the plans contained buzzwords like “behavioral marketing” or “social media” but all described a need for exactly what new media offers. Businesses want to improve how they target, talk to and engage their customers. If you are selling to business customers, you will do well to present the benefits and eliminate the jargon. Don’t talk to them about platforms and methodologies but show them how those things help them to achieve their bottom line goals.

Investments

All plans included increased funding for training, technology and new hires but there was a decided uncertainty about the ability to fund these investments in 2010. There were contingencies that extended plans into later years. This was an area that differed from plans I reviewed in past years. All will make the investments needed to drive their bottom line goals but investments may happen at a slower pace. If you sell to businesses, consider phased approaches that would help them invest and realize a return before moving to the next step.

Marketing

Marketing departments are stretched thin and as always are subject to rule changes in the middle of the game. While vendor budgets have been decreased, and will not increase in 2010, there is room for outsourced help. The majority of the plans stated a renewed focus on holding marketing to budget based goals. Nothing new here but in light of the economy, be prepared to show the executive suite the money when it comes to campaigns and communications. The smart internal or external marketer will tie marketing to customer engagement initiatives with a focus of driving bottom line results.

Summary

Business at its core has not changed. Companies want and need to make money. What has changed is the approach, processes and people that will help them with that longstanding goal. Whether you are an employee, business owner or business provider, understanding this will put you ahead in 2010 and beyond.

What trends are you seeing as we near the new year? How can we all do better and serve better in the coming year?

5 Common Problems of Ailing Businesses

January 26, 2009 by Karen Swim

: Image by Getty Images via Daylife

Written by Karen D. Swim

I am not a fan of reality shows but I have become addicted to Peter Perfect. In the show, stylist, Peter Ishkans, visits struggling small business owners in the U.S. In the shows that I have watched the businesses are typically family owned, single location retail stores.

Peter assesses the store’s layout, operations and the image and makes over both store and owners. He delivers the verdict in a straightforward but pleasant way. The business owners cringe only a little because it’s so much easier to hear that your business is a disaster when delivered in a non-American accent.

In a recent episode the business owners listed the problems and Peter looked baffled as he asked, “If you knew all this why didn’t you do something about it?” Ouch. So often we really do understand the problems but fail to take the next step of fixing them. Listed below are a few of the common problems I have noted since watching the show.

Unwilling to give up control. Are you so emotionally invested in your business that you view any criticism or suggestion as a personal rejection of you? Many of these business owners had family members who were partners. The family members had good ideas but the primary business owner was unwilling to give up control.

Business lacked a clear image / brand. When customers see your store front or website, is it immediately clear what you offer? What image does your business project? In every episode the business owners had failed to develop a clear brand. It was not the business idea that was bad but its presentation.

Failure to consider your target market. I recently worked with a client on a website redesign as part of an overall re-branding effort. The site did not at all reflect his target market. He knew that the site was not working but when asked about the choices he remarked, “I chose stuff that I like.” The problem however is that the colors and images he liked were completely out of sync with his target market.

No Marketing. Retail shop owners had failed to engage even their local communities. Do not assume that your market knows you exist and will find you. Whether you have a brick and mortar business or virtual store, you must market. If marketing is not your strength hire expert help. Buy consulting time to assess your needs and develop a plan, but do something or your business will die.

You lack a clear image. Are you reflecting confidence in your own business? Have you made the transition from hobbyist to business owner? Does your appearance and demeanor reflect the image you want to project? Step up to your role and own it.

To run a successful business you don’t have to have all the answers but you do need to be willing to seek them out. Technology has made it easier than ever to tap into expert knowledge and resources. With a little help you can move your business to the next level.

Do any of these issues resonate with you? If you’re a business owner what have you done to work through your roadblocks? For non-business owners, what do you wish businesses would do differently or better?

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