Network Solutions and the Center for Excellence in Service at the University of Maryland’s Robert H. Smith School of Business released the findings of their Small Business Success Index survey on February 16. The index is designed to track the competitive health of the small business sector over time, and the results are always interesting. Scores in 6 categories are graded; marketing and innovation got a C-. Let’s see why:
[S]mall businesses perceive themselves at a disadvantage in marketing and innovation.
That statement surprised me, because one of the key findings of the survey was that small business owners have embraced social media: social media usage has increased from 12% to 24% in just 12 months. Since social media is widely seen as an excellent tool to level the playing field between big, multi-national companies and small, me-myself-and-I businesses, it would seem to me that the small business owners who are using Twitter, Facebook, and LinkedIn (the most popular social media sites) are doing something right with their marketing strategy.
But then I read this:
Common marketing methods for reaching potential customers include print advertising (37%), email marketing (24%), social media marketing (19%), telephone sales (18%), direct mail (17%) and broadcast advertising (14%).
I honestly do not understand why so many small businesses still use print and broadcast advertising. I considered advertising in a local magazine for business women last year. But then I realized how tiny the chance was that potential customers would not only see my ad but remember it, too. I’d have to invest a lot of money to run that ad every month. Think about it: what if your potential customers don’t have time to read that newspaper issue, or listen to the radio that week because they’re on vacation, or watch TV because they lost cable during a big snowstorm? You just spent all that money, and what kind of leads did it generate? If you’re getting a great ROI using traditional advertising methods, good for you, but if you’re not, time to talk to a marketing strategist, who will save you time and money (in the long run).
Back to social media:
The majority of small business owners who use social media (58%) feel the medium has so far ‘met expectations.’ Another 12% feel it has ‘exceeded expectations’ but twice as many, 26%, feel it has ‘fallen short of expectations.’
The fact that 70% of small businesses are finding new customers, engaging with current customers, and generating awareness with social media is encouraging, as it proves that integrating social media into your marketing efforts is worthwhile.
Half of users, though, said social media has used up more time than expected. Yes, it does take time, but it is time well-spent. Being able to so easily connect with people who want, need, and/or use your company’s product or service is an amazing opportunity that was not possible just a few years ago. Embrace technology, don’t run from it.
I am active on Facebook (professionally only—I do not use it for my “regular” life), Twitter, and LinkedIn, and I write blog posts for Grow Smart Business. You need not be active on a handful of sites, though. Pick one or two and stick with them. There are lots of guides, white papers, and articles online that contain valuable information on how to use social media effectively. Spend an hour or two on research, and either put together a new marketing strategy yourself or, like I said above, hire an expert to help you.
Google+Web.com is now offering forums designed to support small businesses in cities throughout the US. Learn more about these forums here: http://Businessforum.web.com/
Tags: advertising, Innovation, lead generation, Marketing, Small Business Success Index, social media
Posted in Marketing, Small Business Success Index, social media | 10 Comments »
