Aside from Privacy, Security Issues — Facebook is a Threat 2 Ways
Facebook is well-known for its privacy and security issues. I’ve written multiple columns about social media and how it can harm businesses, especially when employees are not trained about using it on your company’s computers.
For example: 3 Studies – New Concerns about Internet Security and 5 Safety Measures to Thwart Mounting Social-Network Attacks.
But my sense after reading two articles in AdvertisingAge Magazine – a must-read for the advertising profession – is that Facebook raises the specter of two other ramifications for business: Facebook is becoming more of a threat in marketing.
Consider two headlines: What Happens When Facebook Trumps Your Brand Site?” and “The Top Five Brands on Facebook.”
First, so what happens when Facebook becomes more relevant than your Web site? “…the social network has quietly become something else: the biggest relationship-marketing provider for many brands,” writes Jack Neff.
He points out 37 Facebook pages have a million or more fans even though most Web sites have difficulty attracting 100,000 visitors. That means, of course, Facebook is outperforming their sites.
For example, Mr. Neff cites Coca-Cola with 10.7 million Facebook fans, but its Web site’s unique visitors dwindled to 242,000 unique visitors in July, 2010.
The danger is that all these people are identified with social media, which is owned by Facebook. Brands will have to pay to advertise on their own Facebook pages, and Facebook collects all the revenue.
Starbucks may be one of the rare companies to have a strong Facebook and Web site presence.
Mr. Neff provides other interesting insights – for the full story, see the article here.
Also, at AdvertisingAge, Matt Carmichael writes about the top five brands Facebook. But it appears their top ranking is for dubious reasons.
“According to new research from ExactTarget and CoTweet, it’s pretty simple: coupons and free stuff,” he explains.
He reports the top five: Oreo, Walmart, Victoria’s Secret, iTunes and Dove.
See his article here.
So, it’s imperative protect your brand by not cannibalizing it to the extent that it has less power than Facebook. Use the necessary due diligence in strategies to use Facebook to drive traffic to your Web site. Or, you’ll pay the price.
From the Coach’s Corner, here are related columns on promoting your Web site:
Facebook Users Favor Online News Sites.
Web Publishers: Are You Optimized for Bing?
Startup Toolkit – How to Make a Hit on the Internet
5 Tips If Your Web Site’s Traffic Slows in Summer Months
Internet Marketing Trend: Q2 Sales Increase 9 Percent
Aug. 10, 2010
Internet retail sales increased to an aggregate $32.9 billion in the U.S. during the second quarter of 2010, according to research firm comScore. That’s a 9 percent increase over 2009’s total, and represents the third straight quarter of increases after the previous weak sales during the downturn.
“The second quarter’s continuation of the first quarter’s strong retail e-commerce growth rates is encouraging,” says Gian Fulgoni, the comScore chair. “We remain cautiously optimistic heading into the second half of the year, but we will be keeping a close eye on unemployment rates, which along with potential uncertainty in the stock market could limit growth in e-commerce spending in the near term.”
Sales are up 17 percent among households with an income of $100,000 or higher.
Consumers spending their money in consumer electronics (excluding PC peripherals); computer software (excluding PC games); computers/peripherals/PDAs; and books and magazines.
It’s also worth noting that retailers with multi-channels gained the most market share vis-à-vis companies with merely an online presence.
| Retail E-Commerce (Non-Travel) Growth Rates Excludes Auctions, Autos and Large Corporate Purchases Total U.S. – Home/Work/University Locations Source: comScore, Inc. |
||
| Quarter | E-Commerce Spending ($ Millions) | Y/Y Percent Change |
| Q1 2007 | $27,970 | 17% |
| Q2 2007 | $27,176 | 23% |
| Q3 2007 | $28,441 | 23% |
| Q4 2007 | $39,132 | 19% |
| Q1 2008 | $31,178 | 11% |
| Q2 2008 | $30,581 | 13% |
| Q3 2008 | $30,274 | 6% |
| Q4 2008 | $38,071 | -3% |
| Q1 2009 | $31,031 | 0% |
| Q2 2009 | $30,169 | -1% |
| Q3 2009 | $29,552 | -2% |
| Q4 2009 | $39,045 | 3% |
| Q1 2010 | $33,984 | 10% |
| Q2 2010 | $32,942 | 9% |
That’s certainly encouraging news. But it also underscores how the affluent are faring better in the recovery, so far.
From the Coach’s Corner, if you’re like other businesses and want to sell more, here are 5 Strategies to Sell More from Your Web Site.
Leadership, HR, Marketing Lessons from HP’s Executive Turmoil
Updated Aug. 9, 2010 – 10:00 a.m.
Hewlett-Packard will find it advantageous to address three salient corporate issues following the sudden exit of senior executive Mark Hurd. At issue, are leadership, human resources and marketing quagmires.
Mr. Hurd was widely credited for HP’s recent success. But his forced resignation over a sexual harassment case and inconsistent expense-account reports is the company’s third tumultuous event involving key executives in just five years. Analysts were unimpressed with his lack of vision.
His accuser, Jodie Fisher, is a 50-year-old actress and former reality television contestant who was hired has a marketing consultant, introduced him to key customers and kept him company. She said she was sorry he lost his job.
The first unsavory HP event, of course, was the 2005 firing of CEO Carly Fiorina following her lack of financial success and her questionable, contentious merger with Compaq resulting in heavy layoffs.
Then, there was the 2006 controversy surrounding Patricia Dunn, who as chair of the board, hired firms that used illegal methods to try to stop leaks of proprietary HP information to reporters.
So, it’s not surprising that published reports indicate employees now have huge morale issues after Mr. Hurd’s recent tenure.
His critical replacement will need substantial leadership skills because HP now has to improve the employee morale and marketplace position.
HP’s share price plummeted by 10 percent in just the first day after Mr. Hurd’s firing. It fell another 8.4 percent the following Monday to a 52-week low. Obviously, many investors are nervous.
Certainly, employees feel betrayed. Improving employee morale necessitates a strong internal communications program with empathy and appreciation for the employees’ contributions to the company. Certainly, from the C-suite on down, HP’s HR and training initiatives are being tested.
It might seem like a bit of a stretch, but the marketing should tout the rich, storied legacy of the company’s origins in a garage. That’s what occurred to me after being reminded that Americans love an underdog following release of a 2010 study by the Simmons School of Management in Boston.
“Across contexts, cultures, and time periods, underdog narratives have inspired people,” according to the study co-authored by the school’s Jill Avery. “Stories about underdogs are pervasive in sports, politics, religion, literature, and film.”
In using the term, credibility, she implied in an interview with BusinessNewsDaily that trustworthiness and integrity are salient principles to inspire customers to buy.
“Underdog brand biographies contain two important narrative components: a disadvantaged position versus an adversary and passion and determination to beat the odds,” wrote the study’s authors.
In addition to Dr. Avery, the authors include Neeru Paharia and Anat Keinan of Harvard University, and Juliet B. Schor of Boston College.
They found that the respondents identified with underdog brands and were more likely to buy them.
“The American Dream, the fabled American myth, is built on the stories of underdogs who came to the United States with virtually nothing and pulled themselves up from their bootstraps to achieve success,” wrote the authors.
When the study of products that included the branding term, underdog, they were preferred in 89 percent of the cases by participants. Companies with a humble history are very appealing to consumers.
In fact, as a reward for participating in the study, respondents were given their choice of a chocolate bar. Seventy-one percent chose the underdog candy bar.
What a great country this is, right? Right!
Meantime, HP makes great products. My firm has had numerous laser printers; both black and white, and color. Some have only lasted a year or two. But two of the most reliable are the discontinued HP LaserJet 4P model printers from the early 1990s. They’ve produced reams upon reams of quality documents without fail.
Let’s hope HP finally gets this leadership problem corrected. It’s past time for inspiration and vision.
From the Coach’s Corner, if you have customer loyalty issues, don’t worry because you’re not alone. Consider this resource link: Bank Woes Provide Lessons for All Companies Seeking Growth.
Why Facebook May Be Inching toward An IPO
Aug. 5, 2010 3:11 p.m.
Many marketers are allocating more of their budgets for Facebook ads, according to a report in Website Magazine, which also means Facebook is a candidate to go public.
“Two years ago the big brands were experimenting with us,” Website Magazine’s senior editor Mike Phillips quotes Facebook COO Sheryl Sandberg. “They started buying with us a year ago. Now, they’re going big.”
Mr. Phillips writes that she claims the social medium’s top advertisers are now investing 10 to 20 times more dollars.
So, does this mean Facebook is positioning itself to go public? The magazine suggests Facebook may try an initial public offering in 2012, if it continues to show it’s making profits from ads.
“Facebook appears to be positioning itself for an IPO in 2012, and is currently valued at $25bb,” confirms Francis Gaskins, a widely quoted and respected IPO expert. “Here’s an interesting article.”
So, what about Facebook as a marketing tool?
“For most companies, it’s not yet completely clear whether Facebook ads are truly effective at generating quality leads or increased conversions/revenue,” Mr. Phillips astutely points out. “What is clear, however, is that Facebook continues to grow its user base. Certainly, 500 million users are nothing to sneeze at.”
He says research firm comScore reports Facebook has overtaken Yahoo as the nation’s No.1 display advertiser.
“Now might be the time to get involved in Facebook advertising,” suggests Mr. Phillips. “Prices have remained steady, the website is still the hottest property online and you can expect those prices to increase sooner than later. You can run a few simple campaigns on the cheap, look for results and optimize in no time at all. There is plenty to gain here.”
As a business-performance consultant, I concur. To quote my good friend, Cork Platts, now a retired Los Angeles marketing guru, a basic marketing tenet is “test, test, test.”
For me, that’s especially true when it’s an inexpensive investment.
Mr. Gaskins’ resource links:
Note: Mr. Platts is also founder of Consultants West, www.consultantswest.com, an association of veteran consultants that meets regularly in Los Angeles. Mr. Gaskins is also a member, and I’m proud to be associated with them.
From the Coach’s Corner, here are two marketing resource links:
5 Strategies to Sell More from Your Web Site
Invigorate Sales with Customer Retention, Referral Strategies
Bank Woes Provide Lessons for All Companies Seeking Growth
Many banks have customer loyalty issues. In fact, banks need new approaches because they are only satisfying 21 percent of their medium-sized business customers, according to new marketing research by TNS.
Actually, the challenges faced by banks in trying to grow include principles that are applicable to all business sectors that want opportunities for growth.
The TNS study suggests American banks need new strategies to lay a strong, long-term foundation to attract new business customers. It was sponsored by the Commercial Banking Momentum Monitor (CBMM).
“For 70 percent of the market, multiple failures by the current lead provider on credit, pricing, operational reliability, or service would push the client to consider alternative providers,” according the TNS press statement. “When an opportunity arises, the banks most likely to be considered are those that have already established a base level of familiarity and rapport with the prospect.”
Such criteria were once assumed.
“Failure to meet these tests will immediately eliminate banks from consideration,” the press statement says. “The factors that are currently most likely to influence the final selection of a new banking partner are credit terms, pricing, the product fit, the quality of the web-based solutions, and servicing.”
The study repeatedly makes this point.
“Banks seeking to drive growth through acquisition need to understand the dynamics of the switching process in the current environment,” says TNS Vice President Glenn Staada. “This includes the triggers that lead to consideration, the evaluation process, and the potential barriers to switch. The banks that will be best positioned to attract new relationships will be those that are able to respond to unmet and emerging needs with a differentiated solution. Bankers must continuously invest in building relationships with the businesses in the community, even among those extremely satisfied with their current relationships. It is these relationships that will eventually drive consideration once an opportunity presents itself.”
The good news for such banks for the 21 percent of loyal customers is that most will stay put.
Here’s why:
- 67 percent of the loyal business customers are content.
- 53 percent of them say their banks are fulfilling their credit requirements.
- 10 percent believe the cost of switching is too high, particularly because of complex business relationships.
“Banks can aid acquisition success by developing strategies to help clients more easily transition away from an existing provider, especially around EFTs (electronic fund transfers),” suggests Mr. Staada.
The study also hints at opportunities for banking growth. However, about 20 percent of the study’s respondents say their business needs are so unique other banks couldn’t provide the same level of service. Ten percent want their banks to improve but they haven’t found a better bank.
Factors that would persuade a business to change banks:
“Approximately, 90 percent rate pricing as a critical factor in the evaluation of a new provider,“ according to the press release. “Nearly as important are factors relating to financial stability, trust, ethical operations, high-quality technological solutions, service, and credit.”
Other factors for a business to consider when changing banks:
“Four in 10 would use their knowledge of the banks operating in their area to select the banks they’d evaluate as a potential new provider,” the press release states. “One third say they must have a prior relationship with that bank, and nearly three in 10 rely on word of mouth from business colleagues, family, or friends.”
“In the initial round of evaluation, potential suitors are most often eliminated from consideration due to questions around financial instability, ethical operations, or perceived unwillingness to extend credit,” adds Staada. ”In today’s economy, these are the new minimum requirements for entry in the business and middle market segments. Bankers should have a strategy to pass the stability, ethics, and credit benchmarks prior to engaging with a new client. Failure to anticipate these questions will greatly diminish the opportunity to compete beyond these basics to communicate more fully the on the merit of its offer.”
Do you see the parallels between the banks’ challenges for growth and all companies?
My firm’s research: For 18 percent of the world’s population, price or cost is the only consideration in buying products and services.
So, for 82 percent, perceptions about value matter most, including these perceptions about a bank or any other business:
Employees, Spokespersons – 52 percent. The key characteristics are integrity, judgment, friendliness and knowledge.
Remember, about 70 percent of your customers will buy elsewhere because they feel they’re being taken for granted. And customers normally will not tell you why they switched to your competitor.
Image of the organization – 15 percent. They are concerned about the image of your company in the community. Cause-related marketing is a big plus in forging a positive image. So is cleanliness and good organization.
Quality of Product or Service Utility – 13 percent. The customer is asking the question – “What will this do for me?”
Convenience –12 percent. Customers like easy accessibility to do business with you. That includes your Web site, telephoning you, and the convenience of patronizing your business.
Price – 8 percent. Price is important, but it’s the least concern among the five value-motivating perceptions.
Your next challenge is to align your marketing, products and services, and customer service — while being mindful of these motivating perceptions.
From the Coach’s Corner, Forbes.com reports on an informative new marketing study: “Referral Programs and Customer Value.”
Profits: How and Why to Align Marketing with Sales
If marketing isn’t synchronized with sales, a company doesn’t enjoy optimized profits. So why is it so many companies don’t align their marketing with sales?
A 2010 study by Northern Illinois University and consulting firm Miller Heiman reveals some noteworthy data – companies that strategically align marketing with sales are more successful – even during the downturn.
Among 2,000 responding companies surveyed in Asia, Europe and the United States, about 33 percent orchestrate marketing and sales. However, another 33 percent say their two departments are in a “state of neutrality,” and the remaining third do not align the two functions.
In comparing 2oo9 results to 2008, the results are eye-opening for aligned companies:
- 12 percent stronger sales and 5 percent more qualified leads.
- 8 percent higher probability of conversion rates of 40 percent-plus.
- 29 percent conversion rate compared to only 24 percent for “low-aligned sales teams.”
- Aligned firms had a higher probability of success – 19 percent and at least a 5 percent sales increase. They also enjoyed a 3 percent growth in new business. But poorly aligned companies suffered from a .5 percent decrease in new business.
- In retention of customers, aligned firms were 11 percent more likely to enjoy 5 percent or higher success for highly aligned companies.
- In billing, their odds were eight percent higher for an increase and at least 5 percent higher than poorly aligned firms, which experienced a 3.5 percent decrease. Sales for aligned companies dropped 1.2 percent.
- In revenue, aligned firms were 4 percent more likely increase 5 percent. Lowly aligned companies had a 2.9 percent revenue decrease. Highly aligned firms decreased 1.2 percent in revenue.
But it isn’t necessary to examine financials to see missed opportunities.
Here are three examples:
- Many marketing campaigns are perceived as ostentatious. The copy is clever but doesn’t appeal to the five value-buying perceptions that motivate people to buy. (The value perceptions are in this column, The Seven Steps to Higher Sales)
- Marketing collateral boasts of professional salespeople, but salespeople fail to match the message in the marketing. When customers call to buy, the salesperson doesn’t fully understand the product, doesn’t develop a rapport, and is not enthusiastic. The salesperson fails to treat the occasion like it’s an event for the customer. If the customer doesn’t have a change of heart, in the end the salesperson fails to say thank you or to prevent buyer’s remorse.
- Or note the lack of enthusiasm when marketing campaigns are introduced to sales staff – the salespeople appear bored or they’re superficially attentive.
In the three scenarios, profits aren’t optimized. Sometimes, it’s because the wrong people are on the sales staff or the marketing creates images that can’t be met by sales. But, it’s also safe to assume the marketing and salespeople aren’t on the same page. They often don’t speak the same language.
That’s ironic for professionals who are supposed to be good communicators. Instead, there are often turf battles. Marketing people think they’re the only ones who are strategic thinkers. They think salespeople can only see to the end of their noses and are only concerned about their monthly sales quotas. Salespeople feel marketers aren’t carrying their own weight in generating sales leads. And so on.
The solutions:
- Everyone needs to get on the same page. Starting with the senior executive, there needs to be a commitment for collaboration. The chief marketing officer and sales managers need to meet regularly, especially over lunch. Good things happen when people break bread together. The philosophy must filter down both staffs.
- The two sides should continually work on talking the same language.
- They should proactively look for weaknesses and breakdowns in communication.
- Everything should be tested. There should be an agreement about prospect leads and quality.
- Establish an ongoing reporting dialogue – input and feedback between marketing and sales.
- Review and develop metrics for efficient accountability for both functions.
Good luck!
From the Coach’s Corner, for the above reasons by design, this Web site combines marketing and sales into one business-coaching category, Marketing/Sales, where you’ll find dozens of business-coaching columns.
5 Tips If Your Web Site’s Traffic Slows in Summer Months
Traffic on the Internet slows in the summertime, according to Peter A. Prestipino at Website Magazine. So much so, his article refers to the slowdown as the “Web summer doldrums.” Frankly, I’ve never noticed. But I respect his insights.
From his 10 years experience, he offers five tips for helping your summer Web traffic; they include:
Create 30, 60 and 90-day plans – Mr. Prestipino suggests developing and implementing strategies in 30-day increments.
“The 30-60-90 strategy is ideal as an outline of what you will accomplish, what you want to accomplish, and, finally, what you wish you could accomplish,” he writes.
“In 30 days you will want to have created a media center on your site; in 60 days you will want to have had 10 bloggers written about your website or its products and services, and in 90 days you will want to get coverage from at least one major media news source,” he adds. “There are clearly a lot of steps involved to get there but writing down your plan will get you thinking about how to achieve them. When you plan, you plan to succeed.”
Complete Big Projects – Mr. Prestipino asserts that in the process, you will uncover a challenge that needs to be solved.
“…big projects might be a Website redesign, link building campaigns, conversion testing, etc,” he writes. “When it comes to selecting which big project you want to complete, you’ll need to weigh the potential return against the time commitment and legwork necessary to get the project done.”
He points out the most-complex projects usually don’t provide short-term benefits.
“Decide what would most benefit your business (creating social media campaigns, email marketing campaigns, etc.) and stick with it,” he explains. “When you know what you need and resolve to complete the task, it will make a difference to the bottom line in the near and long term.”
Network until Your Fingers Hurt – He says a good summer-investment of time is working on your connections and contacts.
“If you’ve established a Facebook Fan page, recruit new members,” he writes. “If you’re a LinkedIn user, find colleagues, customers and others in your industry to connect with.”
He believes social media endeavors are vital and it’s important to be uncompromising in your efforts.
“The best place to look might just be in your own customer list and even your own inbox,” he suggests. “Start there and shore up your friend and fan base this summer for long-term Web success.”
Stockpile Information and Ideas – He says even if you want to take easy in the summer, at least start accumulating ideas and information.
“It will undoubtedly be a challenge not to act on the information you encounter on the Web as much of it will probably motivate you to act on the suggestions provided, but doing so will ultimately give you a library of ideas you can leverage in the future,” Mr. Prestipino writes.
He says he always generates about 30 article ideas and another 10 to create revenue for his magazine.
“Stockpiling information and ideas will serve you well when you hit those creative blocks or when you finish one project and want to start another,” he explains. “When you are prepared, your chances of success are that much higher.”
Learn One New Thing – Mr. Prestipino suggests learning at least one new concept.
“Learning is a process,” he philosophizes. “The more you know, the more prepared you are to achieve success — Web success.”
He also invites readers to share their ideas at www.websitemagazine.com.
He deserves a big thumbs-up for his excellent counsel. Actually, his Web site is a must-read if you want timely information.
From the Coach’s Corner, if you haven’t focused on your social-media potential but want to start, why not now?
A personal case study:
Since I learned that search engines incorporate social media to assess Web-site relevance, LinkedIn, Facebook, Twitter and Digg, etc., have provided a nice boost to this site’s online presence almost immediately after I implemented the social-media practices, especially on Google and Bing.
My Web site gets as many referrals from social media as it does from Google. It helps with repeat visitors. I don’t bother anyone by tweeting about having a cup of coffee or other trivia…it’s usually a tweet to convey useful information. Further, as soon as I post a headline from my business-coaching Web site, the number of visitors to my site skyrockets. (I also take advantage of the LinkedIn feature to synch my LinkedIn and Twitter accounts. Tweets are automatically posted on my LinkedIn account.) Frequently, they are re-tweeted.
Press releases with pictures have also been beneficial.
Also, I’ve posted articles on a technology-client’s site, and promoted them on Facebook which is synched with Twitter. The client has enjoyed a 50 percent increase in visitors and climbing.
To connect with me:
www.linkedin.com/in/terrycorbell
Profits: How to Save on Sales Opportunity Costs
If your sales efforts aren’t leading to your desired results, here are a couple of questions: How many times have you been burdened by so-called prospective customers who waste your time without buying? How many times has a business or government agency asked for information on projects but used your ideas without paying you?
Ouch. That’s a waste of time and other resources.
Candidly, there are four plausible reasons why people don’t buy from you:
- You haven’t done a good enough job selling your company.
- You’re dealing with habitual tire-kickers.
- You’re trying to sell to customers who are too price-conscious and are not value-minded.
- Not to be gauche, but you’re dealing with parasites or thieves who will try to replicate your ideas without paying you.
Regarding the latter, remember these two adages: 1. “What goes around comes around.” 2. Sooner or later, they’ll get theirs.”
Don’t get mad. Get even. Getting angry only hurts you. It’s usually a waste of time and energy, and often creates negative PR images.
When you point your finger at someone, there are usually reasons why you have three fingers pointed back at yourself. So before you start pointing fingers, remember to assess your role and processes, and make the necessary improvements.
There are five basic dos and don’ts for productive selling:
- Review your branding and marketing. A strong marketing program will prevent such problems by pre-selling your products and services, and will minimize the footwork required to close sales.
- Distribute informative sales collateral and upgrade your Web site – without divulging too much information.
- Improve your customer service and sales processes. Make sure that you and members of your team are using the techniques. Basically, this means remembering when and how to use the Golden Rule – empathy; incisively qualifying and researching your prospects; asking the right questions; listening; providing strong value propositions; showing an attitude of enthusiasm coupled with gratitude; preventing buyers’ remorse; and providing added value whenever possible.
- Become a better student of human nature. Remember the basic law in economics 101 – know when to cut your losses. On the other hand, understand when it’s important to persevere and not give up prematurely.
- Maintain your mental acuity and balance when dealing with prospects. Don’t be desperate to make a sale to a prestigious-looking customer or company. Don’t allow them to use you or your intellectual property. As a prospect deliberates, keep moving and prospecting. Don’t spend your profits before the customer buys, and remember the adage: “A sale ain’t a sale until the money is in the cash register.”
- Be loyal to customers who are good to you. This will make you feel better and you’ll enhance your odds for repeat business, which will also cut your sales opportunity costs.
Remember the essence of productive selling and you’ll save on sales opportunity costs. It’s all about wisdom in creating a happy buying environment and developing relationships.
From the Coach’s Corner, for more on profitable sales techniques, see: The Seven Steps to Higher Sales.
Why Small Business Prospects Are Trending Up
May 8, 2010
Two studies about small businesspeople provide inspirational insights.
A new “Signs of the Times” study by FedEx Office shows 72 percent of responding U.S. businesses believe they’ll help lead the charge to business recovery. Conducted in April, 2010, it included small businesses with five to 100 employees with minimum revenue of $100,000.
The temporary help company, Kelly Services, funded a global study which revealed 20 percent of respondents are working as entrepreneurial independent contractors and another 50 percent aspire to work for themselves. It was a survey of 134,000 people in 29 nations in Asia, Europe, and North America.
The FedEx study:
Fifty-one percent of responding businesses indicate they’re already recovering or will be in great shape by the start of 2011. That’s quite a change. In 2009, 54 percent were worried about the economy.
Eighteen percent are now looking to hire workers compared to just 9 percent in 2009.
Marketing will have a bigger priority – 42 percent will budget for marketing this year. Thirty percent will increase budgets for sales activities.
“Small businesses are definitely getting it right when it comes to identifying and investing in the tools that will help them bounce back from a difficult period,” said Randy Scarborough, vice president of marketing for FedEx Office. “From print ads and direct mail campaigns to online marketing programs and a social media presence, small business owners today are smart and savvy about how to maximize their budgets while connecting effectively with new and existing customers down the street and around the world.”
The FedEx study highlights the wisdom of small businesses on the importance of marketing.
In the early stages of the recession back in 2008, a previous FedEx study revealed relatively few small businesses were fully aware of the effects of the downturn. That’s when 41 percent said they anticipated increasing their marketing budgets. But in 2009 when virtually every business felt the negative impact of the downturn, 44 percent were looking to increase their marketing budgets.
The current study indicates 34 percent slashed their marketing in 2009, but 31 percent regret making the cutback.
Eighty-seven percent believe in the importance of print marketing collateral, and 61 percent believe traditional marketing tools will yield a better return on their investment than the Internet.
Ironically, 51 percent of the 18 to 34 year-old demographic advocate banners, posters and signs vis-à-vis 36 percent of those aged 55 and older.
But many of the respondents say they will embrace the Web more – 46 percent online and 36 percent on social media.
But the study’s red flag: Many small businesses have not designed a cohesive logo and tagline. Sixty-four percent admit their messaging is “somewhat consistent,” 23 percent can’t afford to design messaging and branding, and 13 percent admit spending too much because they don’t have the ability or time to research possible deals.
The Kelly Services survey:
It’s not just about companies cutting back to save on employee benefits, according to Kelly Services. Uncertainty about economics is what is really triggering the trend for entrepreneurship or independent contractors.
The increase in free agency: Twenty-six percent in North America,19 percent in Asia and 17 percent in Europe.
Nearly 25 percent of all respondents indicated a desire to launch a business, especially 48 to 65 year-old males.
“The economic downturn has resulted in a new way of thinking about careers and job security. Many people have watched their jobs disappear and now want to do something that puts them in more control of their career,” says Kelly Services Executive Vice President and Chief Operating Officer, George Corona. “These are often people with many years of experience, who may have been displaced and who have taken an entrepreneurial approach to marketing their skills.”
Other results:
- Some 20 percent are freelancers, consultants, independent contractors or free agents. That’s 28 percent of baby boomers, 20 percent of Gen X and 18 percent of Gen Y.
- Another 12 percent would love to be independent.
- Younger people are worried about failing and older folks fear healthcare costs.
- Thirty percent of Gen Y would like to start their own business, but only 22 percent of Gen X and 14 percent of baby boomers would like to do so.
- Forty-eight percent feel they abilities are adequate. Fifty-four percent of baby boomers and Gen X and 40 percent of Gen Y feel confident.
“Many of those who lost their jobs as a result of the global economic crisis have had to reinvent themselves as independent contractors, freelancers and consultants. This self-employment trend may continue as more people become attracted by the autonomy, independence, and flexibility of working for themselves,” Corona added.
In conclusion, these studies demonstrate the ability and fortitude of entrepreneurs.
And, use a metaphor like Reggie Jackson once said about his Mr. October capabilities as a New York Yankee: Entrepreneurs “are the straw that stirs the drink” in economic growth.
From the Coach’s Corner, Jerry Savin, an authoritative consultant at Cambridge Technology Consulting Group, has a reminder about your online presence:
“Today, we received a frantic call from a former client asking why their website was down,” writes Mr. Savin. “As it turned out, their domain registration had expired. Oops.”
His suggestions:
- Check the expiration dates of your current domain registrations.
- Confirm that the Administrative Contact on the Domain Registration is current and the contact’s email address is correct.
- Pay attention to the email reminders. Domain Registrars send out multiple domain registration expiration emails.
- Renew your domain registrations before they expire.
“Google gives slightly more weight to domains with longer registrations,” he adds. “So registering domains for 5 years or longer makes sense.”
His Web address: http://www.ctcg.com
LinkedIn: www.linkedin.com/in/jeraldsavin
Tweet: www.twitter.com/CambridgeTech
Marketing to Women? Study Says More Love Social Media
April 11, 2010
In just three years, a major change has occurred in Internet usage – women under 40 love social media and most men in the same age group love it less, according to a study by the University of Southern California.
A published report, penned by Mike Sachoff at WebProNews, indicates the USC research reveals both genders value social media, but younger men are moving onto other interests.
Sixty-seven percent of females under 40 are as passionate about their social media as they are their offline friendships. This compares to 38 percent of males.
This represents a major swing in preferences since 2007. That’s when 69 percent of males and 35 percent of females were passionate about social media.
The research was conducted by Michael Gilbert. Mr. Gilbert’s a senior fellow at the school’s Annenberg Center for the Digital Future.
“Women have been a bit more cautious with new technologies but they generally catch up and often exceed men in their enthusiasm once they’ve had a chance to look around,” WebProNews quotes Mr. Gilbert. “Men tend to charge in to new technologies and the opportunities they enable.”
His research reveals 48 percent of women under 40 use online contacts to create offline friendships. That compares to 36 percent of the same age group of men. This about the same percentage of women in 2006 but reflects a switch in preferences in young men. In that year, 59 percent of males became in-person friendships after Internet introductions.
It is not surprising that both genders have acknowledged the importance of the Web for making connections.
However, it is surprising that men indicate their Web connections are not as important as in 2007, but now 84 percent of them say they contribute “to their Internet community” vis-à-vis only 69 percent for women.
“The survey also found women of all ages have a wider range of online community interests, putting more emphasis on social, spiritual and relationship aspects,” writes Mr. Sachoff. “Gilbert believes these deeper personal and social interests likely account for the increasing importance women place on their online communities.”
So, the obvious Biz Coach conclusion: Social media is an excellent option for marketing to younger women.
From the Coach’s Corner, WebProNews is a terrific source of information, such as “Social Media May Get Much More Convenient for Businesses.”