Results versus hype: can small businesses realize value from social media?

An article in the Wall Street Journal last week (“Entrepreneurs Question Value of Social Media,” Sarah E. Needleman, WSJ 3/15/2010) said that a recent study showed that small firms were having mixed results in their use of social media.

In and among the survey results, the article gives several examples of companies seeing a positive ROI on their social media investment. There’s a common thread among them: Each successful firm has been consistent in using the tools over time, and patient in waiting for results.

Some entrepreneurs say they’ve found early indicators that their
social-media efforts are paying off.

“The people coming from social media have been buying,” says Stephen
Bailey, who oversees social-media and other marketing initiatives for
John Fluevog Boots & Shoes Ltd., a footwear and accessories retailer
in Vancouver with about 100 employees.

As evidence, Mr. Bailey points to a 40% increase in online sales in
2009, the first full year the company engaged consistently in
social-media marketing, compared with 2008 when it was just getting
started. He says he can draw a correlation between those figures and
social media by looking at traffic to the company’s Web site from
Twitter using Hootsuite, a free Twitter-management service from Invoke
Media Inc. Other free services that track Web traffic from social-media
sites include Google Analytics, CoTweet and Lodgy.

“The second we started using social media, it became one of the
biggest drivers of traffic outside of search engines,” says Mr. Bailey,
adding that his research shows these visitors spend as much time on
Fluevog.com as those who come from other online destinations. The
company doesn’t invest in paid advertising on social media, he adds.

John Fluevog Boots & Shoes is one of the companies I give as an example in our workshops on social media, particularly for their use of their Facebook page. Their social media interaction extends beyond Facebook though. On their website they solicit customer feedback, hold contests, and find myriad ways to entertain and engage customers. As Mr. Bailey of Fluevog says, social media complements these other efforts. It’s a useful example of a firm using online networking as part of a larger strategy.

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“Making Sense of Privacy and Publicity” by danah boyd

For an excellent overview of the concepts and issues surrounding online privacy and publicity, check out danah boyd’s keynote speech from SXSWi for 2010.

Just because a large percentage of people engage in public does not mean that they don’t care about privacy. Pew found that 85% of adults want to control who has access to their personal information. You can read numbers in any which direction, but it’s dangerous to assume that people who share PII don’t care about privacy or people who make their data public don’t care about privacy. Doing so erases the context in which people are operating and the expectations that they have.

Wanting privacy is not about needing something to hide. It’s about wanting to maintain control. Often, privacy isn’t about hiding; it’s about creating space to open up. If you remember that privacy is about maintaining a sense of control, you can understand why Privacy is Not Dead. There are good reasons to engage in public; there always have been. But wanting to be in public doesn’t mean wanting to lose control.

Of particular note, see her analyses of why the launch of Google Buzz generated so much strong backlash, why people were uncomfortable when Facebook changed its privacy features in December 2009, and what’s interesting about ChatRoulette.

Photo credit: “Fingerprints” by kevindooley on Flickr

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Talk Amongst Yourselves

two women reading newspaper on park bench

I’m cool with “social marketing” and businesses’ presence in social networks. Obviously.

I like blog comments. A lot.

However, it seems I will forever cringe while reading comments on social marketing blogs.

What do you say we try a little experiment with this social marketing blog post!

[I should probably clarify, I've never had a problem with any comment on this blog. We don't get many, and they're rarely, if ever, from the cringe-worthy marketing professionals you see elsewhere.]

Here’s my idea:

Shut out the centralized, public comments.

There are other places where you can commnet on this very post. Google Reader, Google Buzz, Twitter, Facebook, message boards, and other blogs. Heck, you can even talk about it offline! Hopefully, you already know plenty of people who want to hear your opinion of my ideas. People who want your answers to my questions. People who are interested to know which questions you find most interesting.

You’re not commenting just because you like people to see your name and link, right?

So, I’m going to offer a few ideas and questions, in conclusion. Now that you’ve read this post, start a discussion about it amongst the people who already know you. Feel free to invite me into your network to participate. Tell me I’m wrong to my face, it’s cool.

[I was trying to decide if I should leave the "trackbacks" (pingbacks) on.

Cindy offered, "One hazard of this suggestion is that it becomes the original author's (your) responsibility to report back to the blog audience on responses to posts. So then you're setting yourself up as a filter. Open comments avoid this problem; so do trackbacks. They promote transparency."

So, the comment thread can link back to those responding blog posts.]

Okay, then. Here are those questions:

  • What does my post and this blog lose from closing the comments to this post?
  • What do I gain? What do other readers gain? What do your blogs, and social circles gain by commenting “locally?”
  • I’m drawing my line at posts about and for social marketing professionals. I’m not suggesting businesses using blogs to talk to their consumers should do anything like this. But could that line be better drawn some place else?

Let me know where you think.

Photo credit: Ed Yourdon

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FAQ: Should my organization create a Facebook Page or Facebook Group?

Q: I’m on the leadership team of a nonprofit, and we want to use Facebook to connect with potential donors and volunteers. Should we create a Page or a Group?

A: If you’re creating the official presence of an entity on Facebook — whether an organization or a business — you should create a Page.

Here’s how Facebook describes the difference between Pages and Groups:

Like a friend’s profile, Facebook Pages enable public figures, businesses, organizations and other entities to create an authentic and public presence on Facebook. Unlike your profile, Facebook Pages are visible to everyone on the internet by default. You, and every person on Facebook, can connect with these Pages by becoming a fan and then receive their updates in your News Feed and interact with them.


Authenticity is at the core of Facebook. Just as profiles should represent real people and real names, so too should Pages for entities. Only the official representatives of a public figure, business or organization should create a Facebook Page. …

While Pages were designed to be the official profiles for entities, such as celebrities, brands or businesses, Facebook Groups are the place for small group communication and for people to share their common interests and express their opinion. Groups allow people to come together around a common cause, issue or activity to organize, express objectives, discuss issues, post photos and share related content. …

(Thanks to @broganmedia for tweeting about this explanation.)

Pages have several features that Groups don’t. They can import an RSS feed into their Notes, so any blog posts your organization’s site generates could automatically be posted on your Facebook Page; they display visit, interaction, and fan demographic stats to Page administrators; and they have more flexibility in adding apps (including fundraising apps and store apps) and displaying information.

The next question we often hear is, “What if we already have a Group and want to switch to a Page?” There’s no easy way to make the transition. But you should transition anyway, to get the benefits of Pages. The sooner you make the change, the better.

Here’s what to do: Create your new Page, add information like your logo, photos, blog feed, and other content, then send a message to all the members of your Group that you are switching to a Page and the Group will be deleted. Invite the Group members to join you at the new Page; include a link to the Page so they find it easily. Send a second reminder about the switch a week later, and after two weeks send a final notice and delete the Group.

Then, work on creating great content and inviting participation on your new Page, so fans have a reason to visit often and interact with your organization and with each other.

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