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Social Media as a Business Strategy posted on February 12, 2009

In many ways, 2008 was the year of social media. It was the year that social media websites like Facebook became the epicenter of Web users’ online lives, and companies realized that their absence from social media spaces was coming at the expense of their competitive advantage.

By Marianne Madden

What is social media?

Let’s back up a little and define social media/Web 2.0. The old mode (Web 1.0) was typified by consumers having access to a dizzying array of information, and passively consuming it as they would a hard-copy newspaper or TV show.

Social media and Web 2.0 are about consumers shaping web content, either partially or completely.

For example, the act of reading a newspaper article online was typical of Web 1.0. But in Web 2.0, a Web user can read a newspaper article, comment on it, share it with their friends, bookmark it on a social bookmarking site like Delicious, and vote it up or down on a site like Digg – all with a few clicks of the mouse. That is, the average Web user is shaping the Internet’s content as much as they’re consuming it.

Blogs, forums, wikis, social networking sites, social bookmarking sites, photosharing sites, YouTube, etc. are all good examples of Web 2.0 sites. More spring up every day.

Implications for Marketers

Initially, marketers tended to pile on social media sites in a less-than-sophisticated way. They simply used their same old models of push marketing, trying to adapt them to sophisticated communities. It didn’t work. Just like Web 2.0 represents a new paradigm for Web users, it represents a new mode for marketers. So it’s an appropriate time to debunk a few myths.

Social Marketing Myths, Debunked

Myth: Social media is a trend.

Fact: It’s true that social media represents a whole new way of using the web. And not everyone participates, or participates at equal levels. But it’s fair to say that social media is here to stay. In fact, this year, online inquiries for “social media” actually surpassed inquiries for pornography!

Myth: Social media participation is a marketing strategy.

Fact: Social media should be a business strategy, integrated with a number of your business processes. For example, because social media participation makes it so easy for consumers to reach out to you with questions, comments, suggestions, and customer service inquiries, it can be a powerful CRM strategy. A number of companies have leveraged Twitter (a microblogging platform) as a CRM tool – reaching out to Twitter users who speak about your brand, and especially those who complain about your products or services.

Similarly, you can view social media participants as focus groups. Send product samples to web users in the appropriate niche, asking for their feedback. You'll be blown away by the response.

As an aside, the nagging concerns about the ROI of social media as a marketing tool melt away when social media outreach is seen as a core part of doing business and a low-cost way to reach out to your biggest fans and greatest detractors.)

Myth: Social media only makes sense for brands targeting a young, hip demographic.

Fact: The fact is, nearly all demographics participate in social media. Though college students made Facebook the gold standard of social media, Facebook is by no means the only social media site that matters. Niche social media communities continue to spring up, attracting everyone from Christian housewives to electricians to reptile enthusiasts. Do a little research into your niche and you’ll be amazed by the depth of participation.

Myth: Facebook, MySpace, LinkedIn, Twitter are the only social networks that matter.

Fact: These huge networks tend to attract a diverse base of users, but if your product or service appeals to a niche audience, shouldn't you go after niche communities? Niche blogs, forums, and social networks exist for many different groups, and these specialized communities tend to attract especially passionate and active people. After all, smart online marketing is about who you reach.

Myth: I can repackage my marketing messages for the purpose of social media.

Fact: When you participate in an online community, do you want to be bombarded with unrelated marketing pitches and marketing slogans that were developed for a mass medium like television? Hardly. Such a ham-fisted approach simply doesn’t translate to social media. It’s likely to get you ignored, shunned or marked as a spammer.

After all, social media is about what the consumer thinks. It’s about conversations, not just about messages flowing from marketer to consumer. Rather than pushing out marketing messages, ask your customers a question via social media. You’ll be rewarded with loyalty, engagement and valuable feedback.

Myth: Social media marketing is spam.

Fact: The worst thing you can do is burst into an online community (whether it’s Facebook, Twitter, Yahoo Answers, or another community) and shill away, without learning the unique culture and lingo of that particular community. The key is to learn the rules of the community, respect the community, and add value to its users through your participation. If you’re not doing those three things, your efforts will indeed come off as spam.

The Bottom Line of Social Media

Participate in social media to facilitate consumer-to-consumer conversations, as well as to open up a channel for consumer concerns and questions about your products or services.

If you simply want to push out your old marketing messages via social media, your presence will go over like a lead balloon. But if you show genuine interest in and respect for your customers, detractors and soon-to-be-customers, you will win new customers and the loyalty of existing ones. More importantly, you will strengthen your core business by streamlining customer service and listening to your customers.

Marianne Madden worked at an SEO firm before becoming an organic media coordinator at Geary Interactive. She is particularly interested in content development, social media and online reputation management. For more information, please visit www.gearyi.com.