Do you really need to be on Facebook?

A friend recently asked me why a small business needs a social media presence. The first question is whether a small business needs a social media presence. The short answer is: it depends! More specifically, it depends on your marketing objectives and target audience. Let’s discuss both.

The ultimate purpose of a marketing initiative is to influence consumer behavior in ways that accomplish your business goals. What exactly do you want to accomplish? Define your goals by listing the results you hope to accomplish. Desired results may include multiple objectives, including:

  • Business production
  • Brand awareness
  • Reduce marketing costs
  • Consumer education
  • Lead generation
  • Establish expertise
  • Specific promotions

New business production is often difficult to achieve using any strategy. I have spoken with many professionals who do not view social media as a source of new customers. That mirrors my experience. To be fair, I have not found the traditional web a meaningful source new business either. I believe that having a website is now a prerequisite for credibility. I suspect it is often true of Facebook and other social media sites as well. On the other hand, I know insurance agents, tax specialists and social media vendors who generate significant business through social media.

Again, business production is only one of many marketing goals. I recently spoke with an account executive at a major brokerage. He wants to increase his Internet footprint. His assumption is that the odds of a prospect becoming a client are proportional to the number of hits when they search his name. The broker wanted to know how many hits “CFO America” generates. The answer was 7.7 million. While nine of the first 10 were my company, many were not. However, if only 1% is, it far exceeds several regional and national competitors. That exposure results from an extensive social media effort. It is also consistent with an April 2010 survey by Michael Stelzner of SocialMediaExaminer.com. He found 85% of participants reported social media generated exposure for their business.

Two other marketing goals supported by social media are search engine results and cost reduction. I spent $10,000 developing a traditional website. I was promised a “top 3” ranking for the phrase “fractional CFO.” While it accomplished its goal, I am still waiting for the phone to ring! Very few people search that phrase, largely because they do not know what it means.

Could I have used social media to boost search rankings and save money? The Stelzner survey found 54% of participants thought social media marketing improved their search rankings. It also found 48% experienced marketing expense reductions. I am now using blogging, Facebook, Twitter and other sites to educate the small business community on what a fractional CFO is and how it can benefit them. Since I cannot afford a national print media campaign, this is the only way I know of to accomplish my goal.

The second area to explore in evaluating the need for a social media presence is your target market. The question to ask is where potential customers turn (Internet, newspaper, Yellow Pages, etc.) to learn about your products or services, and businesses that offer them. The answer is largely dependent on customer demographics like age, education, income level, gender and so on. The statistics are easily summarized. If your marketing “sweet spot” lies in young, educated, and/or high-income consumers, you need social media. Using Facebook’s active U.S. users as a proxy for all of social media, 80% are under age 45, 66% have at least some college education, and 67% have incomes over $50,000. U.S. active Facebook users (like many social media sites) exhibit a bias in favor of women. However, on a worldwide basis, Facebook has slightly more men than women. Visit www.alexa.com to find matches for your target market.

Does your business need a social media presence?

That is a key marketing question, one you must ultimately decide on your own. I hope you will base your decision on an objective analysis of your marketing goals and target audience. I now end by confessing the obvious. I love social media marketing! I am excited about the possibilities it offers small and medium-sized businesses to communicate their message across a wide spectrum of prospects. Having said that, it is difficult to conceive of goals and audience demographics that are not supported by social media marketing. It is impossible to conceive of a more cost-effective strategy.

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Comments

  1. A web presence is vital to showing the world you are serious about your business. Even a basic one that has what I refer to as the “Big Five: Home page, About Us page, Services Offered page, Contact Us page and, if you have a place customers need to visit, a Location page;ideally with a map or a link to one of the major serach engines that will display your location. Your site doesn’t have to be fancy nor rival your largest competitor. It only needs to be neat, organized and easy to navigate, especially the Contact Us page.

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