Small Business Success Index 5

Index Score^*		Grade
SBSI INDEX	73	C-
Capital Access	67	D+
Marketing & Innovation	65	D
Workforce	76	C
Customer Service	88	B+
Computer Technology	75	C
Compliance	92	A-
*Index score is calculated on a 1-100 scale.

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What Do Consumers Expect When They Engage With Your Business on Social Media?

January 20th, 2012 :: Rieva Lesonsky

By Rieva Lesonsky

What consumers want when they engage with your brand on social media is often very different than what you think they want, according to a new study by The CMO Council and Lithium. The study, “Variance in the Social Brand Experience,” polled more than 1,300 consumers and more than 100 marketers and found that, by and large, businesses aren’t giving consumers what they want.

More than half (55 percent) of consumers say they interact with brands on social networks primarily to learn about new products. But the biggest group (65 percent) do so to enter promotions or contests or to play games. About one-third use social media to share positive experiences with a company, and 25 percent use social to connect with other fans of a brand.

Consumers have high expectations when they interact with businesses on social media. They expect to get answers to questions or complaints within 24 hours, with 22 percent of consumers seeking instant responses and 19 percent seeking a response within a few hours. As for what they expect to get in return for following or liking your business:

Exclusive offers (67 percent)
Games and contests (65 percent)
Opportunity to interact with other customers (60 percent)

While consumers are focused on offers, games and chances to get a reward, marketers, in contrast, think consumers “like” their brands just because they like the content they find online, to get news and information about the brand, or to make their voices heard. Just 27 percent thought customers followed their brands in order to get special offers—and only 22 percent of marketers actually offer special promotions or deals via social media.

What’s the takeaway? Sure, your fans and followers want to learn more about your company, and they do want to connect with their fellow fans. But as the old advertising truism goes, their biggest concern when liking you on social media is “What’s in it for me?” Unless your social media strategy offers something of concrete value to them, you’re likely to find your fan base becoming less and less engaged, as they move to competitors who give them more of what they’re looking for.

Image by Flickr user birgerking (Creative Commons)

Tags: small business marketing, social media
Posted in Marketing, Small Business, small business, Social Media, social media | 1 Comment »

Will Google+ Become a Social Media Powerhouse?

January 19th, 2012 :: Monika Jansen

Since the launch of Google+ last year, Google’s answer to Facebook has gotten its share of buzz. According to Google+ for Dummies author Jesse Stay, Google+ is positioned well to do everything it has promised to do, and more – to become a true social media powerhouse. Here’s why:

Total Google Integration

The +1 button has penetrated the web, and we are just seeing the tip of the integration iceberg. Google is working to integrate its social network across all its products, even going so far as to kill off products that aren’t Google+ friendly. Those products that are capable of cross-integration are getting tweaked to perform well with the social media platform. Even Google’s flagship product, its search engine, has joined Team Google+. Now, you can even see what your friends have +1′d in your Google search results.

Sharp Focus on the Product

According to Stay, the entire Google team is sharply focused on developing and improving Google+, including its integration into existing Google products, as I mentioned above. Google is releasing new features every week, each one adding up to the summation of a social media game changer. As more time and resources are invested into Google+, it’s clear that the company is putting lots of eggs into this basket. This focus and investment bodes well for the future of Google+.

Fueled by Facebook Competition

Once Google+ was fully launched and steadily growing its user base, Facebook must have looked back and caught a glimpse of the new kid on the block gaining ground–and threatening its market share. Needless to say, the two have been in fierce competition ever since. This competition is benefiting the consumer, as each network tries to one-up the other, making rapid improvements to both products. Google+ is benefitting from this early-stage competition, as it gets the opportunity to work out any kinks as soon as possible.

Tighter Niche Marketing Capabilities

With the addition of Google+ Pages, marketers have new opportunities for communicating with customers on social media. They can separate audiences into circles and target messages to specific circles only, creating unparalleled custom communications in social media. Google+ is offering marketers what has often alluded Facebook–increased privacy and personalization for their social media marketing campaigns.

Primed for Mobile

Google+’s position as a major player in mobile might be the most convincing reason the social network is here to stay. Google owns Android, which will create powerful synergy between Google+ and mobile capabilities. According to Stay, soon Google+ will likely be integrated into the operating system of all Androids, making it a native feature of any Android-powered device. Users will have access to enormous sharing capabilities by default.

For example, when you take a photo with your phone, you could very easily share it on Google+. Also, you could organize your contact list into circles, and all Google+’s location-sharing features will be native to your device. Simply put, Google’s relationship with Android guarantees that wherever you go, Google+ will help you share your life with everyone in your circles.

Are you using Google+ for business? What advantages do you find that make the network worth investing in for a long-term social media strategy?

Image courtesy of creative design agency Arrae

Tags: Facebook, Google, Marketing, social media
Posted in Marketing, Social Media | No Comments »

Census Reveals 5 Trends That Matter to Your Business in 2012

January 18th, 2012 :: Rieva Lesonsky

By Rieva Lesonsky

The 2010 Census data, released in 2011, was a gold mine of information for business owners. But what information will be the most important to your business going forward? The Brookings Institution picked out its top five trends rom the 2010 Census, and I thought I’d share them here.

Slowing population growth: The 2000s saw the slowest growth in the United States in 70 years–just 9.7 percent, or 27.3 million people, were added from 2000 to 2010. The decline is a result of aging baby boomers, slower U.S. economic growth and declining immigration. However, the U.S. is still one of the fastest-growing industrialized nations. Growth was highest in the South and Midwest and lowest in the North and East; suburbs grew faster than cities. Despite the housing crash disproportionately affecting the Sunbelt, these areas are still fast-growing.
Staying put: In the boom years of the 1950s, nearly 20 percent of Americans moved every year; in 2011, just 11.6 percent did. Aging boomers and higher homeownership rates are part of the reason for the slowdown, along with recession, dwindling home prices and tighter credit restrictions. For businesses, this means areas that relied on immigration for their work force may find it harder to get employees; on the plus side, cities that suffered from “brain drain” may find more of their best and brightest staying put.
Minority becoming majority: Not quite, but 50 percent of U.S. infants are now non-white, and non-whites (primarily Hispanics and Asians) accounted for 92 percent of U.S. population growth in the 2000s. Foreign-born people account for almost 13 percent of the population. These minority and immigrant populations are also moving into the suburbs in greater numbers as segregation declines.
Aging boomers: Baby boomers (born between 1946 and 1964) are now fully middle-aged or older. America’s 45-and-over population grew over 18 times faster than the under-45 population in the 2000s. The aging of the boomers, and the fact that younger age groups are waiting longer to get married and have children, means just 20 percent of U.S. households consist of married couples with children under 18 (compared to 40 percent in 1970). Large cities are increasingly defined by whether their number of young people is growing or declining, and many areas find themselves in a culture clash—for instance, Arizona’s senior population is more than 80 percent white, while its children are more than 60 percent minority.
Poverty grows: The 2000s was the first census decade on record in which real median household income declined. Some 15.3 percent of Americans were in poverty. Nearly all of the 100 largest metro areas had lower incomes in 2010 than in 2000. But the recession wasn’t all to blame: The Sunbelt, manufacturing cities and the Southeast had all seen dramatic increases in poverty even before 2008. In addition, poverty is hitting the suburbs; the number of suburban residents in poverty rose 53 percent over the decade.

How will these trends affect your business going forward? You can access much more data from the Census at American FactFinder to see specific trends for your region of the country, state and city.

Image by Flickr user comedy_nose (Creative Commons)

Tags: Marketing, small business
Posted in Marketing, Small Business, small business | 1 Comment »

5 Marketing Metrics Mistakes to Avoid

January 17th, 2012 :: Monika Jansen

We often read about what to do for a successful marketing metrics strategy, but sometimes it’s just as helpful to study what not to do.

Trying to decipher which metrics to track from the hundreds of marketing metrics out there can be overwhelming. Whether you’re just starting to measure your marketing efforts, or you’re fine-tuning an existing strategy, here are five mistakes you’ll want to avoid:

1. Focusing on activity instead of results

It’s easy to see marketing activity, such as the time and resources invested into a social media campaign. It can be much harder to see marketing results, especially if they often create more tangible results in other departments (sales, for example). You can’t measure what you can’t see, so be careful not to overlook marketing activities that are driving results throughout the business.

2. Using vanity metrics

Marketers are often tempted to use vanity metrics that sound good and impress managers rather than those that will improve profitability. Don’t focus solely on press release impressions, email sign-up lists, and Facebook “Likes” just because they look good on paper. Find the metrics that lead to performance, and track those instead.

3. Focusing on quantity instead of quality

Marketers who focus on lead generation often get caught up in the number of leads they bring in, while ignoring the quality of those leads. This skewed focus can cloud decision making when programs that look good initially end up falling short on delivery. Be sure to include a metric for tracking quality in your plan.

4. Being efficient, but not effective

This point is similar to the one above. Too often, focus is given to the number of Twitter followers, or the number of attendees at a conference. But what if those followers and attendees aren’t the people who will help your business succeed? Marketers should strive for doing the things that have impact rather than simply getting the job done.

5. Measuring what’s easy

It can be difficult to pin down metrics for revenue and profit, even though these metrics are what executives are most interested in. The problem comes when marketers use stand-in metrics for those other numbers, forcing the marketer to prove a relationship and jeopardizing credibility. Give colleagues what they really want by measuring bottom-line metrics.

***

Have you made marketing metrics mistakes not listed above? Help your fellow marketers avoid them by sharing in the comments section below.

Image courtesy of creative design agency Arrae

Tags: Marketing, marketing measurement, marketing metrics, marketing strategy, results, vanity metrics
Posted in Marketing | 4 Comments »

Mobile Shoppers Love to Search for Deals

January 16th, 2012 :: Rieva Lesonsky

By Rieva Lesonsky

The just-passed holiday shopping season brought home to small retailers and e-tailers the power of mobile shopping. A recent survey from SapientNitro-GfK took a closer look at just how the growing popularity of mobile devices is affecting consumer shopping behavior.

More than one-third (39 percent) of the approximately 1,000 consumers surveyed said that digital devices have “enriched” their shopping experience during the holiday season. Among younger consumers aged 18 to 24, the percentage was even higher, with 47 percent agreeing.

Consumers also used the word “empowered” to describe how shopping with mobile devices made them feel. Overall, 38 percent said the devices made them feel empowered. Among tablet owners, 56 percent felt empowered; among consumers 18 to 24, almost two-thirds (64 percent) felt this way regardless of what type of device they used.

In addition to actually making purchases, 67 percent used mobile devices to browse for or research items (up from 44 percent in 2010); 60 percent used them to compare prices (up from 40 percent in 2010) and 48 percent used them to look for deals (up from 35 percent in 2010).

The study says GPS-enabled mobile computing is an area to watch for mobile shopping in the future. The survey asked about specific mobile applications and features and found:

31 percent use the GPS/location feature on their device to shop
30 percent use mobile apps to search for or purchase products
20 percent looked or posted something on Facebook, Twitter or other social networks to get advice on products or find products
19 percent used a QR code to get information about a product
18 percent used a mobile coupon at point-of-purchase

Among tablet owners, however, this behavior was far more prevalent: 42 percent had used a mobile app to shop for or purchase products, and 41 percent had used a QR code to get information about a product.

“Imagine the day when you walk into a store and the retailer already knows something about you based on location-aware services,” said Davey. “The implications for retailers — in terms of targeted promotions or in-store navigation — are fascinating.”

Image by Flickr user Mosman Council (Creative Commons)

Tags: sales process, small business marketing, small business technology
Posted in Marketing, sales process, Small Business, small business, Technology | No Comments »

Group Deals Are Growing Strong

January 13th, 2012 :: Rieva Lesonsky

By Rieva Lesonsky

Has your business ever offered a group deal via a site such as Groupon or LivingSocial? Despite some reports of backlash against the programs, new data from MerchantCircle’s 7th survey of U.S. small business owners shows that group deals are growing steadily in popularity among small businesses. As of December 2011, nearly 12 percent of local merchants reported they had offered a daily deal at least once. That’s an increase of one-third (33 percent) since June 2011.

What’s more, three-fourths of respondents said they would offer a daily deal again, and 61 percent said they found deals effective in acquiring new customers, while 37 percent said deals were profitable for them.

However, not everyone is thrilled with daily deals. One-fourth of respondents said they wouldn’t offer a group deal again, with the top reasons being:

42 percent said it was not effective for customer acquisition
36 percent said it was too costly
34 percent said they lost money on the deal

When businesses are deciding what daily deals service to use, here are their top considerations:

Cost: 64 percent
Local targeting: 57 percent
The ability to reach a large audience: 52 percent

While Groupon and LivingSocial continue to lead the daily deal game, MerchantCircle surmises these two may face increased pressure from Google Offers in 2012. In the survey, about one in five local merchants who have offered a group deal said they had used Google Offers since it launched in mid-2011. And 32 percent of merchants planned to use Google Offers for their next daily deal, as opposed to 26 percent who plan to use Groupon and 16 percent who plan to use LivingSocial.

In addition, Google Offers had the highest retention rate of all major daily deals providers, with 66 percent of merchants that had used Google Offers planning to use it again. In contrast, just 41 percent of merchants that had used Groupon and LivingSocial to offer deals say they plan to use these services again.

But Google Offers isn’t the only contender out there. Nearly half (43 percent) of local merchants have used other, specialized deal providers.

Customers love daily deals, and increasingly, merchants are taking to them, too. Have you used daily deals in your business?

Image by Flickr user Roger Price (Creative Commons)

Tags: small business marketing
Posted in Marketing, Small Business, small business, Social Media, social media | No Comments »

How to Use Pinterest for Marketing

January 12th, 2012 :: Monika Jansen

You may have heard of Pinterest, a social bookmarking site where you “pin” and share interesting images on the Web – but what does it have to do with marketing?

While Pinterest has mostly been the domain of brides-to-be, crafters and fashionistas, smart marketers are harnessing this fun social network to generate buzz for their products.

If you’re not yet convinced that Pinterest has marketing value, let me make my case:

A Hub of Influencers

Pinterest users pin images they love, browse what other users have deemed pin-worthy, and follow those with a knack for finding the coolest (or hottest) items. Basically, the network is a community of curators, and those curators with the greatest influence, or following, are exactly the people marketers want to connect with.

Staying on Top of Trends

Once you’ve spent some time on Pinterest, you’ll begin to notice which products and styles are trending in real-time. Better yet, you’ll be able to take cues from the big influencers to find out what will be trending next.

SEO Strategies

There are two benefits that Pinterest can bring to your SEO campaign. The first is local link building–you can embed a link to your store’s location in your Pinterest descriptions and comments. Secondly, Pinterest automatically links to an image’s originating site, so you can quickly amass a collection of visual links.

Marketing on Pinterest

Getting started on Pinterest is pretty straightforward, but you’ll need an invite to join. You can easily request one on the site, and then you’re ready to begin:

1. Check to see if any of your products have already been pinned

This simple first step will give you a baseline for your future Pinterest marketing efforts, as well as help you start making connections on the site.

2. Start pinning things you like, but be sure not to strictly self promote

In other words, pin other people’s products as well as your own. The idea is to build credibility and join the existing community. It’s also a good idea to think strategically when creating boards (collections of images you pin). For example, a sports company could create boards relating to sports as well as the location of their store.

3. Use the search function to dig deeper into the site

At first glance, Pinterest may seem overwhelmed by home decorating and art-related images. However, searching for specific areas of interest to you will reveal other niches within the site. You can also use the search function to identify opportunities for your own category creation–what is missing that you could provide?

4. Pin and be pinned

You will have to invest time into pinning things in order to get the most out of the site. You can add the Pinterest bookmarklet to your browser to quickly add things you find on the web. You may also want to add the Pin this button to your website, which functions similarly to a Facebook Like button, to encourage pinning.

5. Grow your following

Invite people from Facebook and your email list, especially your customers, to Pinterest. You can also grow your following the old-fashioned way by participating and pinning so others can see what you’re all about.

6. Focus on engagement

After all, Pinterest is a social network, so you want to apply the same engagement principles you use with other forms of social media. Make comments on other people’s pinned objects, reply to people’s comments on your pins, and otherwise be social on this fun and addictive site.

***

Have you used Pinterest for marketing yet? What strategies do you find most effective for promoting products and generating buzz on Pinterest?

Image courtesy of creative design agency Arrae

Tags: engagement, followers, influencers, Marketing, online marketing, Pinterest, product marketing, seo, social media, trends
Posted in Marketing, Social Media | 2 Comments »

The Sweet Smell of Retail

January 11th, 2012 :: Rieva Lesonsky

By Rieva Lesonsky

Retailers are facing increased competition these days from online merchants. But there’s still one weapon brick-and-mortar stores have in their arsenals that ecommerce sites can’t use: scent. The use of scents in stores is growing, Reuters recently reported, as consumers expect more of an “experience” when shopping.

The technology for scenting stores is becoming more sophisticated, but also increasingly affordable. One expert cited in the story says you can scent a store for under $100 a month.

Scent technology can range from using fragrance-infused ceramic beads and diffusers to spread smells through a small store, or disseminating the scent via the ventilation system for larger stores.

Good scents put people in a good mood; experiments have found that people were more inclined to help others when in an environment with pleasant smells. As for the bottom line, studies have shown that shoppers in a pleasantly scented environment stay longer in a store, which generally translates to spending more money there.

However, determining what scents to use can be a science in itself, since there’s no one universal scent that everyone likes. Food scents tend to be popular, creating feelings of well-being or urging customers in, say, a bakery to buy. For example, popcorn scents typically make customers want to eat—which could be a good thing if you’re selling food, but not so good if it inspires people to rush out of your store for lunch.

If you’re using scents in your store, tread lightly. Overpowering consumers with odors can easily backfire, so make sure whatever scents you use are light and unobtrusive. Until you’re sure of the effects, it’s also a good idea to start with scents that quickly dissipate or can be removed, such as scented beads, as opposed to pumping scent through the ventilation system where it may linger.

Also keep in mind that in today’s allergy-riddled society, many customers are sensitive to fragrance. If your business caters to this kind of customer, perhaps a store that has no scent at all is the way to make the sale.

Image by Flickr user Dennis Wong (Creative Commons)

Tags: small business marketing, small business sales
Posted in Marketing, sales process, Small Business, small business | No Comments »

Mobile Shoppers Don’t Give Your Site a Second Chance

January 9th, 2012 :: Rieva Lesonsky

By Rieva Lesonsky

This past holiday season proved that mobile shopping is here to stay. And a recent Limelight Networks survey of smartphone and/or tablet owners showed that consumers have high expectations when researching and buying products online. A whopping 80 percent of respondents said they will abandon a mobile site if the shopping experience isn’t up to par.

Three-fourths of these customers say they won’t give up on the company altogether—they’ll just visit the site later on a desktop computer. But one-fourth will give up on the company and visit different sites so they can complete their research or purchase. What’s more, 20 percent of consumers said they wouldn’t return in the future to a site that gave them problems on a mobile device.

So what do consumers expect from the mobile research or shopping experience? Here were the top 3 features as defined by respondents:

88 percent said the time it takes for the site to load is extremely important or important
88 percent said detailed product images on the site (such as being able to “zoom in” on product details) are extremely important or important
82 percent said mobile site optimization, or how well the site fits the screen, as extremely important or important

The number of consumers shopping on a mobile device is only going to grow. Already 67.4 percent of those surveyed have used their device to shop online; 83 percent have researched and purchased a product on a mobile device; and 17 percent have just researched.

What does this mean to your business? Increasingly, consumers aren’t drawing a distinction between the mobile Web and the Web. They expect the same level of accessibility, detail and convenience whether they’re shopping from their phone or on their desktop computer. So if you’re still making excuses for why your website is subpar on a mobile device, you’d better stop—because your customers aren’t making excuses for you. They’re moving on to your competition.

Image by Flickr user Ron Bennetts (Creative Commons)

Tags: small business marketing, small business technology
Posted in Marketing, sales process, Small Business, small business, Technology, Uncategorized | 1 Comment »

Small Business Success Index 5

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Marketing Articles

Census Reveals 5 Trends That Matter to Your Business in 2012

5 Marketing Metrics Mistakes to Avoid

Mobile Shoppers Love to Search for Deals

The Sweet Smell of Retail

Mobile Shoppers Don’t Give Your Site a Second Chance