How does social media fit into your business?

I’m sure that’s a big question on people’s minds right now. How does social and viral media, particularly the top two biggest dawgs in the industry Facebook & Twitter fit into your business model?

Are they helping you generate revenue beyond your wildest expectations? Or are they something you haven’t really considered yet? Chances are, if your like most folks out there, you’re still lost as to how to use them to generate a profit… Understandable!

The old world business model (that many are still using today) looked like this:

Someone would see an ad in a Newspaper, TV, Radio, Billboard or some other form of old media… That’s where the awareness of the brand and products usually starts. Then they might talk to friends & family.

If they like what they see and hear, they would buy it by placing an order on the phone (like Sears or some major department store) or just simply walk to the nearest store of that type and do more investigation there… From there they’d likely buy it.

The challenge with this old way of marketing is that there’s no conversation and you can’t really filter who sees and who doesn’t see your ad. Yes, mass exposure to just about any product *IS* a good thing, however you still have to pay for that exposure. You can’t ONLY pay for folks interested in X, Y or Z… There’s also no way to measure the popularity and the conversations being had by friends by phone and in person as they discuss these various companies and products. It’s behind closed doors. I bet for some businesses that helped things but in the new world, that likely hurts…

Today’s modern model is changing dramatically… The landscape has shifted…

Did you know that fewer and fewer people turn to the yellow pages than ever before? Why would they? First, you pretty much have to guess WHERE in the book they may have put a given company, THEN the company themselves may not have listed the information your looking for (Hours of operation, product names, prices etc..) so even if you DO rely on the Yellow pages, it’s incredibly limited in comparison to the web. With the web, you can visit their website and get all this information and much more.

Even the way people discuss products has changed. Why ask your local friends & family about a company or product when you COULD.. Google them, search twitter for them, search Facebook for them.. discover the dirt on them, read reviews about them and find out whether they’re worth getting something from or not.. Find out how fast they ship, whether they stick to their promises, if the product works as well as described, or whether it lasts as long as they claimed it does.

The new social marketing business model:

Today, folks are more likely to turn to a search engine, whether it be on their home or office computer, or on a cell phone like an iPhone to seek the answer to their questions. That question might be “langley dry cleaners” or it could be “how to get soap out of a towel” or it could be specific like 2009 Kia Rio5 Reviews… Regardless, the search engine of 2010 finds the answers to the consumers questions much faster and more efficiently than Yellow Pages can.

Interestingly, Facebook now has 500 million users and at first it was a great tool to find out who was dating who, or what someone did last weekend… Now that extends to what someone bought last weekend but an even more facinating thing to marketers is happening online. A couple months ago, my wife posted on her Facebook status, “does anyone know where in Abbotsford I can find the best price on chicken?”, and to my surprise her small gathering of moms started naming off the best deals in town and where each were located and the pricing…

In this online conversation, brand loyalties came out, price gouging came out and quality were discussed… How are advertisers to jump into this conversation or even monitor it? Fact is, that same conversation is happening on Twitter in a smaller format locally and internationally about even more expensive purchases than a bag of chicken breasts!

When people DO decide to buy, they don’t need to phone and talk to a sales rep who may be able to convince them to buy something more substantial or influence their decision, instead they can buy online with their credit card and have it shipped to their door! Or… They could drive (which means neighbouring cities can compete for loca business… unlike that of a walking consumer) and that changes more dynamics in marketing.

Then, ultimately they can decide to buy the product. What has the web done for us in 2010 that it didn’t do when introduced in the 1990′s? It allows this conversation to take place on a global scale and even a local scale. A scale never before had… Product flaws are out in the open with the first few purchases, product benefits are out there too at the same speed.

Are you lost yet? Good!

It’s not surprising that social media business models can confuse folks. How do you jump into a conversation nolonger controlled by Journalists, media owners, print shops and big business? You can’t buy this type of conversation! But, it gets better. Fact is you can influence these conversations… Just as folks influenced the buying decisions of their consumers years ago with positioning, the new thing is awareness.

Dan Zarella has a basic overview of the concept in this graphic here… But i’d like to expand on this concept a little… I think of it abit more like this:

• Exposure (folks see you)
• Awareness (They know you)
• Club Joiners (they become a fan of yours)
• Action! (They buy, purchase, subscribe)

My next post will be a bit about some ways you can capitalize on Social and Viral media almost overnight. It’s the hidden key I hunted for ages ago, hidden under the door mat, welcoming you into the house of the social party going on online. It’ll tell you some simple and quick strategies to gaining tons of friends on facebook, and followers on Twitter. Nothing for sale here folks, just free info. Stay tuned.

Daniel J Deyette