I was going over some data at the marketing charts website and was kind of surprised to see a report stating that business to business companies don’t have much of a social media presence. I read the report, and it got me thinking. What could these companies accomplish with social media, and how should they use it to their advantage? It seems we (as marketers) focus alot on business to consumer social media marketing, especially when it comes to Facebook, Twitter, and Youtube, and maybe that’s the major problem. So I’d like to discuss some ways that business to business companies can use social media to their advantage. Let’s start by discussing…

Top barriers to social media for business to business companies

According to the report, there are 4 main reasons why b2b companies don’t focus as much on online marketing. Here we go…

1. Insufficient personnel to maintain - It’s not surprising that this is number 1. So many companies have downsized, and they are continuing to do so (HP just let go of a ton of people the other day). However, why do you need to hire more people to do this? Here’s what I think. I would solicit blog entries from employees and offer some sort of reward for entries that are picked. Wow, pretty simple. Every one of your employees should have a presence on LinkedIn. If not for the company, then for their own good. Encourage them to post and answer questions. Now you have a social media presence and you didn’t even have to hire anyone.
2. Lack of organizational knowledge - I’m not sure what they mean by “organizational” knowledge, but I think that if you don’t know something you need to go and figure it out. There are a ton of online resources to find out more about online marketing. There are tons of books out there. If you don’t have time to research them yourself, then pick a different career. To think, these guys call themselves marketers. You should always make time to educate yourself.
3. Preference for traditional marketing - Let me say something here (like you have a choice). I prefer traditional marketing. And yet, I still engage in online and social media marketing. Why? Because I see the advantages, and also because a marketer needs to use any and all weapons at his or her disposal. If you aren’t using social media, you’re leaving a big weapon in the armory collecting dust. There’s no reason for that.
4. Perceived irrelevance to their field - Bottom line: you have to go where your customers go. This is 2010, take a deep breath and say it with me now, twenty-ten, soon to be eleven. People go online to find information. When you go fishing, you probably go to the lake where there are tons of fish. Why is marketing any different. Sure you’re dealing with a company, but that company is made up of individuals. And individuals like to go online to educate themselves. If you have a presence online and provide relevant information, then those individuals will find you. That’s called marketing.

What can b2b companies do to take advantage of social media

1. Start a blog - We’ve talked about it before. People go online to find information. Provide useful information to people and they will find you (and your company). Provide information on all aspects of your industry and your business. Like I said before, solicit entries from your co-workers (you’ll be surprised at all of the great ideas and talent that you have on board). If you can become an industry expert, then you can’t help but increase your brand awareness… and your profits.
2. Get on LinkedIn - People go to Facebook to interact with friends, relax, and play games, and all that good stuff. People get on LinkedIn to interact with other professionals, and to learn. You and every one of your co-workers should have a presence on LinkedIn. You should spend time asking and answering questions, linking up with other professionals in your industry, and basically becoming a part of the community.
3. Be one of the few - The fact that not many b2b companies are using social media means that the ones that do are ahead of the game. Going back to the fishing analogy, if you’re the only one at the lake, you’re going to catch alot of fish. Get started, stop making excuses and do it. Your competition will hate you, but your customers and prospects will love you.

What do you guys think? How can b2b companies take advantage of social media? What other obstacles do they need to overcome?

I was playing around on Facebook today, and I saw a link to this news story which was posted by one of my friends (thanks for the link Mary). Okay (for those of you that can’t / don’t want to risk clicking on the link) so basically this lady was celebrating her 35th birthday with her 8 year old daughter and so they decided to dress up as princesses and go to Disneyland in Paris. She was told by a guard at the gate that she looked too much like a princess which may confuse kids into thinking that she worked at Disney. As a result, the woman was not gained admittance to the park.

Wow, talk about ridiculous. I know that protecting your brand and controlling your message is very important, but this is a perfect example of just going too far. What would it have hurt? So what if some kid thought she looked like a real princess? If she started getting unruly they could’ve always kicked her out then, just like they would with anyone else.  Really, if they think that she resembles one of the characters, then maybe they should’ve offered her a job instead.

The lady had even called the park before they showed up to see if it would be a problem, and they said it would be fine. I guess this means that there’s no policy against dressing up; perhaps this is a case of an overzealous guard. Who knows. In any case, the lesson here is that you need to understand all of your responsibilities as a marketer, not just one thing or the other. Disney is supposed to be the happiest place on earth, and something as innocent as dressing up as a princess should not just be tolerated, it should be celebrated.

What do you guys think?

We’ve discussed it before, and we’ll probably discuss it again. Twitter search can be an excellent resource for any business. It’s a great way to research topics or companies. It’s a great way to find out what customers / prospects think of your brand. It’s a great way to seek out new prospects that haven’t heard of you. Most importantly, it allows you to find your customers and interact with them.

In this link, Chris Brogan explains some specific ways that you can use Twitter search for your business. 

I remember when I first discovered ebay way back in the day. Thankfully I had a job back then, and spent most of my disposable cash on all kinds of products that I just couldn’t find in stores. I used to by manga (Japanese comics), out of print books, out of print CD’s and old NES games. It was fun and cool, and it opened up a whole new world for both companies and consumers. With ebay and other auction sites like Bonanzle customers can now buy products directly from each other. As a matter of fact it’s about time for another shameless plug (it’s been a while since the last one). If you’re a woman, and are into clothes and stuff, check out my friends auction site here. Seth Godin’s discusses this with his ninth trend in Meatball Sundae, “direct communication and commerce between consumers and consumers.”

Many businesses have been created (or have become more successful) because of this new trend. My favorite bookstore in the world, Half-Price Books has taken advantage of this customer to customer interaction. Sure, they buy and sell used books, but I’m talking about their community meeting groups. I don’t know if all of their locations offer this, but the main store on Northwest highway in Dallas offers a place for clubs and groups to meet up and discuss their chosen topic. That means all you pen-and-paper rpg folks can game it up, all you manga readers can get together and swap and discuss books, poets are welcome to come out and try their new stuff out on an audience, Star Trek fans can live long AND prosper (how about that?), etc. I don’t know of any other company that offers this type of meeting place, and I applaud Half-Price books for doing this (HPB marketing team, please start promoting this stuff).

Instead of fighting against this trend (look at what software producer Electronic Arts is doing to punish people that buy used games; they call it “project ten dollar”), companies should embrace and even encourage their customers to interact with each other. Let’s be honest, the genie’s already been let out of the bottle anyway; we’re going to talk to each other whether you like it or not. Get with the program and create a place where your customers can talk to each other. If you don’t, just don’t be surprised when you competition does (and takes home some extra goodwill and business as well).

Trend ten discussion coming soon.

Notable quote from this section:

• “As social networks become more powerful, consumers will gravitate to each other, not just informing each other about their experiences but banding together into unions that will pressure organizations for more of what consumers want.”

One of the first rules of marketing is to segment the market. You probably already know that, but if you don’t, now you do and remember kids, knowing is half the battle (the other half is apparently blowing stuff up). What’s been happening lately though is that the market has actually been segmenting your business. Before, you could get away with packaging products together, but in today’s market, customers are demanding pick-and-choose component based solutions. Look at products like iTunes where you can purchase individual songs instead of complete albums. This phenomenon is Godin’s seventh trend, “Google and the dicing of everything.”

I’m not sure exactly when Google became the standard for web searches, but one thing is certain. They have completely changed online business forever. Before Google, we had to go though a company’s main web page and then click though different pages to find the one with the information we needed. Now with Google, we can jump directly to the page that pertains to our search. This means that your company’s offerings should be very specific as opposed to the pre-packaged offerings of the past. If I’m looking for an adult sized banana costume, I can Google my query and pull up a number of sites where I might find exactly what I’m looking for. That’s just an example… no really, I’m not looking for a banana costume, stop looking at me like that!

The point is that no matter what your company offers, you need to understand that the customer will not be satisfied with the package that you put together. They demand to pick and choose the best elements themselves. They want to jump directly to the products (or services) that pertain to them, and they want to do it with minimal clicks. Respect your customers time, and segment your products accordingly. If you don’t, your competition will, and then they’ll reap the benefits while you go out of business.

Trend eight discussion, “Infinite channels of communication” coming soon.

Notable quotes from this section:

• “Specific searches mean that bundling is not necessary.”
• “If you can’t offer more than a commodity, someone else will sell it cheaper.”

For years, companies have searched for ways to “eliminate the middleman.” Well, we’ve gotten to the point where this is a reality for many types of businesses. Unfortunately, many companies mistakingly see this as a problem, not a solution. The first trend that Seth Godin discusses in Meatball Sundae: Is Your Marketing out of Sync? is “direct communication and commerce between producers and consumers.” Basically this means that consumers now have (and expect) the ability to communicate directly with companies. This also means that it’s possible for companies to market and sell directly to consumers.

In the past businesses relied only on mass media to reach customers, but today the average consumer is going out of their way to avoid these interruptions (commercials are skipped, radio stations are changed, ads are forgotten). So much money has been wasted, and continues to be wasted on marketing to masses of people. Only a small percentage of people will even pay attention, much less be moved, by these mass marketing messages. So why do companies spend so much time and money on these methods? Because it’s the way it’s always been done. Like I said in an earlier post, instead of spending a ton of cash on ads, I would instead hire a team of excellent marketers that can take advantage of the free and cheap tools on the internet… but (you guessed it) that’s another story.

So, how can you take advantage of this new trend? Well for one, you should be immediately responsive to your customers. When they send you and email, they expect a reply. And fast. I’ve been guilty of leaving email unanswered for too long, and I’m sure you have too. It’s a mistake, and smart people learn from mistakes. Be smart, and remember that every unanswered email is a missed opportunity for you. Every interaction with the customer matters, and yet many companies seem to go out of their way to avoid customers (how many times have you been given the runaround?). This is a big opportunity for you to differentiate yourself and your company. Instead of ignoring those emails, answer them; engage yourself with your clients.

One of the advantages of this type of communication is that you can learn more about your customers, and even begin designing products based on their needs. In the past, companies created products and then used marketing to find customers. Now, you can communicate with your customers and create products and services that are specifically tailored to their needs. Pretty cool, huh? Godin has tons of examples in his book, and I’m sure you could think about many more.

Another way to take advantage of the changing relationship between companies and consumers is to begin taking part in permission marketing. Godin talks alot about this, and it’s easy to see why. With mass media becoming less and less effective (and therefore more and more expensive), permission marketing is the way to go to reach customers. Here’s how it works, instead of spamming tons of people with a message that may or may not pertain to them, you should find (and eventually build your own) communities built around the types of people that your product appeals to. Talk to them, respect them, don’t waste their time. Godin outlines some basic rules for permission marketing. Here’s the short version…

1. Serve your customers, not yourself.
2. Permission is not to be bought and/or sold.
3. Keep your message relevant. If it has nothing to do with the customer and their life, they will leave.
4. Legal print and privacy policies are meaningless. If you do wrong by your customers (even if you are legally correct) they will leave.
5. Respect your customers.
6. Strike first, strike hard, no mercy sir! (okay, I just made that one up)

Next we will discuss trend 2, “Amplification of the voice of the consumer and independent authorities.” See you then.

Notable quotes from this section:

• “The fact cannot be denied: Your people (customers, employees, prospects, readers, whatever) want to be heard. They demand it.”
• “An inbound e-mail is not (just) an expense; it’s (also) an opportunity - a chance for your organization to eliminate barriers and have a dialogue with a prospect or a customer.”
• “The job of marketing is to grow the organization, and growth comes, obviously, from putting yourself in front of people who didn’t know about you before you got there.”
• “Outbound marketing now demands respect for the people on the receiving end.”

It’s time for another book discussion. This time, I’m reading Meatball Sundae: Is Your Marketing out of Sync? by Seth Godin. The general idea is that not all organizations are optimized to take advantage of the new marketing opportunities out there today. Instead many companies are still focused on old marketing techniques. Godin discusses 14 trends that have re-shaped marketing, and illustrates how you can optimize your business to take advantage of these trends. Since the organization of the book is a bit different (and you really should read it yourself), I won’t be discussing the book chapter by chapter. Instead, I’m going to discuss each of his 14 trends in turn.

Let’s start the discussion by defining old marketing vs new marketing. Godin describes the era before advertising as a time when small and local businesses thrived. Products were usually made by hand, and sold locally. Many of these companies failed to invest properly in marketing to the masses and therefore died out when the advertising age hit. The era of advertising is what really describes “old marketing”. Godin define’s old marketing as “the art of interrupting masses of people with ads about average products.” (reminds me of those old toy commercials when I was a kid) Many companies are optimized to take advantage of this approach. However, we are in the era of “new marketing”, and many companies aren’t set up to take advantage.

“New Marketing” Godin says, “leverages scarce attention and creates interactions among communities with similar interests. New marketing treats every interaction, product, service, and side effect as a form of media.” See the difference? Let’s break it down a bit. Old marketing relies on a limited number of media outlets (print, radio, television, etc); new marketing has unlimited media outlets. Old media is focused on appealing to masses; new marketing focuses on appealing to niche audiences. Old marketing is based on marketer-to-consumer communication; new marketing is based on consumer-to-consumer communication. Old marketing sells with features; new marketing sells with stories. The book outlines many more differences, but you get the idea.

Think about it for a few minutes. From the ground up, many companies are designed with this old marketing approach in mind. They create average products for the average consumer, and use mass media to let the world know. If this describes your approach to marketing, then you will not be able to take full advantage of all the new marketing opportunities available. I’ve talked about companies using social media poorly. Many times, it’s because they focus only on the new toys and not enough on organizational changes. If you want to take advantage of new marketing opportunities, you need to create outstanding products and then tell stories directly to the people that you’ve gained permission to talk to.

What do you think defines old marketing and new marketing? Do you agree that we are in a new era? Discuss in the comments or send me an email.

Next time we’ll discuss the first trend, “direct communication and commerce between producers and consumers”.