Connecting your who with your why and your what.
In a short clip on 60minutesovertime.com, Steve Jobs, initially miffed at Larry Page and Google for "ripping-off" his iPhone with their Android Operating System, decided that since he'd been mentored by other great tech industry pioneers like Hewlett and Packard, he would give Google's CEO some advice of his own. Arguably, it's the best he's ever received.
Quick show of hands: anyone here write for a living? Design? Do something creative?
Okay, let me just start off by saying that I wasn't sure about writing a post like this until this morning. So many people have flooded the internet with great stories about Steve Jobs and his passing that I almost didn't write this for fear of it being seen as nothing more than a "me too" marketing ploy to play off the death of one of the world's greatest innovators.
Whether you want it or not, your company is a big deal. It has some defining characteristic that will be automatically associated with it once people have experienced your brand. The trick is, getting that characteristic to be a positive one.
Keeping your roster filledI recently sat down with a good friend and business mentor and told him about one of my most irritating problems of late: people. Not clients, my own people on my team. The problem? I couldn't seem to keep them. Rocket No. 9 is a virtual company by choice. It helps keep overhead down and allows us to explore the opportunities (and the setbacks) of operating in this sort of environment. We have no physical location, and 100% of her employees (aside from the managing members) are freelancers. Like most companies that work with freelancers on a regular basis, we like to keep using the same ones over and again. It helps establish good relationships that can often pay off in the long run. As a freelancer myself, I feel connected to and respect these folks. I'm always looking at new talent, but as far as establishing relationships, I don't try to jump from one guy to the next willy-nilly.Most of my time with Rocket No. 9 is spent looking at small businesses and how they're using their online identity to well - identify with their target audience. When it comes to blogging, so many of them are doing it wrong.
In the last article about mega-popular Daily Deal site Groupon, I told you about the scenarios that could happen as a result. The news was by and large, not good. It may have left a few of you feeling as though the whole thing was a sham and not worth even being considered. The truth is, Groupon has worked really well for a particular type of business, and again, there’s the stat that “95% of Groupon merchants would use them again.” So it can’t be horrible (at least not at first). In this article, I’ll discuss the type of business you need to be if you want to do a Groupon deal successfully, and ways to make your Groupon feature most effective.
First of all, not every business is suited to be featured on Groupon. As mentioned last time, “seasoned businesses with a steady stream of customers” should probably not use Groupon in the first place, because they don’t need to. Since opening, getting featured on Groupon has migrated from being a marketing opportunity to being “the thing to do”, as made plain by it’s sheer numbers: Some business, somewhere within a city block of you has likely been featured on Groupon. I believe this has resulted in businesses unwittingly getting themselves into trouble because they were simply trying to be cool.
Even businesses that have been around for a good long while are now finding themselves in trouble because, through Groupon, they made a promise they couldn’t keep to their customers. Or if they were able to keep it, it was probably so strained that they lost money on products, produce or staff. Some of them may have even quit.
Case Study: Posies Cafe and Bakery
One of the most well-known cases like this was for a small bakery and cafe in the Portland area called Posies.
The deal went down like this: Jessie, owner and operator of Posies since it opened, was approached and convinced by Groupon to take a 50% hit on her sales for a chance to grow her business. Actually, that’s not entirely correct. She discounted the price of her product by 50% (because Grouponers really respond to big savings, the salesman said) and then gave half of the remainder to Groupon. So she was actually knocking her price down by %75 in order to (possibly) gain more business in the future.
Now think for a second – if you go into a clothing store, where is the stuff that’s marked down by 75%? On the clearance rack. This is the product that they’ve got too much of and need to get rid of it before they throw it away. It is usually not a considerable part of their marketing campaigns because it doesn’t make them much money.
In the mind of her customers, Jessie has told them she’s got so much product, she can almost give it away, and she almost did. By the time her deal was over, she had angered many of her loyal customers (not just Groupon members) and she had to put in over $8,000 of her own money in order to cover the bills she couldn’t pay because she’d cheapened her product so much. She said what I’ve heard a number of times already:
“I’ll never use Groupon again. Worst decision I’ve ever made.”
What to remember about running a Groupon Deal
Now, to her own credit, Jessie had a few bad ideas about her Groupon. I haven’t spoken with her, so I don’t know if these ideas were sold to her or she was simply ignorant of the terms of her sale. There is, in fact, a way to use Groupon that won’t guarantee increase, but will make your chances much better and will at least allow you to pay your own bills. Folks who use Groupon should remember the following:
You get to set the limits. The Groupon rep on the phone is not a marketing expert – they are a salesman. Their job is make sure that the deal swings in favor of Groupon, not the small business owner. If you allow them, you’ll end up just like Jessie – not even able to pay your own bills because you took such a hit in your product pricing. Don’t listen to their baloney story about “you’ll never have to advertise again after using Groupon.” That’s bull. Smart business owners know that they’ll never stop marketing their business. Understand that you have a lot more say than they may let on and be clear about what your goals are. You can control a lot of the aspects of the deal. Don’t want them to take 50%? Tell them. Don’t want to sell your product for half of the normal cost? Let them know. You can even set the expiration date yourself, or put a cap on how many of your Groupons can be sold. If they truth is that 95% of Groupon Merchants would use them again, then they need your business as much you think you need their marketing deal. Feel free to take advantage of that in regards to keeping your lifeboat from sinking.
One of our clients – a local blogging mom named Jenny who calls herself The Peaceful Housewife sells budget-friendly and energy-friendly products. She did plenty of her own research and took in some Rocket No. 9 consulting before deciding to launch her own Groupon deal with some heavily modified restrictions. Here’s what she had to say:
The Groupon deal went well. I sold 41 vouchers. I’ve already had contact with several of the customers and have gotten several orders from the deal. So far, everything is great. I had my check in the mail 4 days after the deal ended, which I thought was spectacular. So far I’m happy with it. As for whether or not I’d do it again, tough call. I’ll have to wait and see if I get any repeat orders or new non-Groupon customers from the deal.
Jenny made it a point to dip her toe in the water of Groupon, not dive in head-first. As a result, she’s not feeling the stress that’s left so many other small businesses in a bind over a single deal. She also is being persistent about seeing the true value of the marketing campaign – to create repeat customers, not just one-time Grouponers. Time will tell if this proves to be fruitful.
What kind of business should run a Groupon deal?
As stated before, a seasoned business with a steady stream of clients does not need to run a Groupon deal, if only to seem hip to “what all the others are doing these days”. There is a special niche of folks that I believe can actually benefit from a Groupon deal, because of what it’s made to do: drive a load of traffic to your door on a short-term basis.
Here are some of the folks who could benefit from Groupon:
Knowledge is Power
I don’t believe that Groupon deliberately sets out to kill the businesses they’re involved with – it’s ultimately the fault of the businesses for biting off more than they can chew. If you’re considering going Groupon in the near future, I hope this short series has enlightened you to the advantages and possible harmful effects of using this or any other Daily Deal sites. With the knowledge of how to harness the terms of your deal, you can make it work out best for you.
Ah, Facebook, the behemoth of websites that seemingly changed the face of the internet in less than a decade. With more than 750 million active users, of which 50% log in at any given day, there is a vast ocean of potential clients, customers and opportunities.
At the same time, this powerful tool is still new and very, very vast. It’s easy to get lost in the lingo, etiquette and technology that has been specially-made for this service, especially for those, like many, who just learned how to attach a file to an email. But never fear, I’ll help give you some basic pointers that make Facebook work for small businesses.
Engage, engage, engage!
The number one key to Facebook’s popularity is that everyone can interact with everyone. They build and maintain relationships with their friends from long distances, times long gone and impossible to meet like never before. Many companies make the mistake of using Facebook as a spring board to broadcast their message to the masses, which can happen, but no one will listen and they will hide your posts. They key is to respond to what your fans are saying, replying to posts on your wall and producing content that is engaging and fun.
When trying to gain rapport with your fans, you also have to remember that social media isn’t in high school anymore. Facebook isn’t about how many, it’s about what kind of fans. Having thousands of “likes” does nothing if you aren’t getting any input from them. Developing strong relations with few key fans will get them to influence their friends towards your business and what you’re doing. THEY do the advertising for you, and that’s the whole point of social media.
It’s also important to let people say what they want to say. If people have honest gripes with the company, don’t censor them. Use it as an opportunity to learn, grow and help fix their problem. If you have a strong relationship with the community you’ve grown, they might even step in and defend any naysayers who post on your page.
Engaging with your followers will also help understand how they are using Facebook. By having a solid understanding of what aspects of Facebook your followers use will better equip you for adapting or drafting a social media plan or purpose and help target your online demographic of like-minded users.
Use the tools you’ve been given.
Go ahead, grab a sandwich, and spend some time to look over all the fun and free-to-use tools, plug-ins and apps that is offered by Facebook. They may not have the simplest of instructions or explanations of their use, but asking a few questions to the right people who can help will only benefit you in the long run.
There are plug-ins on Facebook that enable you to do many exciting and engaging things. “Fan of the Week” is a plug-in that allows you to recognize the fan that has interacted with your page the most in a given week. You could offer a discount or free sample of your product to that special fan. “Fan Voice” gives you the chance to interact better with fans by creating a Fan Feedback tab on your page. While plug-ins are great, the important thing is not to go overboard. Pick three or four plug-ins that you think will keep your fans (potential customers) engaged and start there first.
There is also a tool that provides business owners with detailed metrics about the effectiveness of their page content, analysis of user growth and demographics and other concerns. Log onto: http://developers.facebook.com/docs/insights/
It takes time to invest and develop a Facebook community and strategy.
Imagine being Kevin Costner standing out in a corn field on a warm summer night with a gentle breeze blowing through the stalks as they dance back and forth in a rhythmic cadence. You hear a whisper, “If you build it, they will come.”
Unfortunately, in reality, the 80s are gone and Facebook is not Field of Dreams. Many companies believe that if they set up a business page that it will set its own course. It’s not just fan growth that will suffer from this philosophy; it may also damage your relationships with existing fans, especially customers who have come to expect timely responses to their posts and queries.
There are programs out there will automatically update your pages with whatever you want. People see right through that, and you’ll lose A LOT of credibility
Many companies deal with sales, and the salesmen who are the most successful at their job are the ones who build relationships with their current and potential clients. Facebook is no different. It is vital to update and monitor the page constantly, and that will take time, effort and purpose.
You should be consistently evaluating what you want to get out of Facebook. Set clear goals. For example, are you hoping to attract 50 new fans who could become potential customers in a six-month time period? How are you going to do that? Have you designated someone within your company to maintain the page? How often will you be able to post fresh content?
Buckle up, it’s the law!
Facebook has a very strict Terms of Service regulation, and it can be surprisingly easy to violate one or two of the smaller clauses by mistake. Don’t fret, the vast majority of them are common sense, but it’s good to know some of the more common offenders to be sure you stay out of Facebook’s line of sight and not get your page deleted.
First off, don’t even think about tagging people (linking a part of an image to someone’s profile) in an image without their permission. Getting peoples’ attention by tagging them is not only a violation of the TOS, but can be reported by those being tagged as abusive behavior; which brings your violation to Facebook’s attention and opens your page’s content to review… and you DO NOT want that.
Everybody wants to see their fan count grow quickly, but don’t be tempted to create fake accounts and then become a fan of your business with them. Facebook can often detect fake accounts, which are a violation of the TOS. If you’re caught, you will lose your page and the marketing power that comes with it. But I’m sure you’re better than that, right?
Spice it up!
I can’t express how important the last tip is. The reason people go to Facebook is to enjoy funny, interesting and useful content. This is where small businesses can really shine, mainly because most don’t have any legal departments to get approval from. This is your opportunity, so loosen the tie, un-tuck the shirt and have fun!
Status updates alone get boring. But photos, videos and other forms of multimedia as a whole can get boring too. Your job is to mix it up. If you become predictable, boring or annoying, fans will hide you from their feed. So keep it varied and personal; a video here, a photo here, a tag of one of your fans there.
It’s your chance to showcase your business’ personality and brand. See what your competitors aren’t doing and do it. It’s ok to let loose and be creative. It’s about building a community and relationships, and it can’t be done if you’re being overly professional.
Go ahead and think outside the box. The better you start understanding your fans, the better you’ll get at finding what they relate to and will allow you to play around with what gets more responses with them. You want them to like your content that they share it on their own.
All in all, invest time in learning about the Facebook platform, educate yourself on how to build and sustain an audience, and don’t forget to engage with people like you do in real life. What sets small businesses apart from large companies is their ability to make personal connections with customers. They tend to forget this, yet it’s their biggest strength and asset.