Archive for the ‘Social Media’ Category

Happy Birthday Twitter! .. Valuable or Waste of time?

March 20, 2012

Jack Dorsey - Twitter

Happy Birthday Twitter

Happy Birthday Twitter..

On the 21st March 2006 founder Jack Dorsey sent the very first tweet and six years on while it is growing in popularity it is probably still the most misunderstood of the popular social media platforms.

When we run our Social Media courses the results are nearly all the same , pretty much everyone is using Facebook at some level and just a very few are using twitter. I would safely guess that a maximum of  20% of social media users are actively using twitter.

Is this failure, is this most people deciding that it is irrelevant, is this most people not understanding how to use twitter or is it an absolute gem that is yet to be discovered by the mainstream?

At Fuzion we take it really seriously because we see the value of it for us and for our clients but we do understand the difficulty that people have with it. By it’s nature it is looser than the other platforms with pretty much anyone being able to follow anyone, your messages are more public capable of being picked up by anyone searching and then there is the business of hash tags, re-tweeting and #FF, that’s Follow Friday, by the way!

Added to that everything is quite limited, how many characters (you have 15 characters in your twitter “handle”) in your unique identity, how many characters you are allowed in a post, how much information (literally describe yourself in 160 characters) you can include in your bio – it’s just different, different enough to scare users off initially before they get to experience the real magic.

The whole experience is very different and in many ways it is attracting quite a different type of user – often a curious individual who loves getting involved in discussions and who loves giving an opinion! Many of these users seem to leave Facebook behind as they find the twitter experience more enriching.

In the last year we have seen the interface and some of the functionality improve and the numbers using the platform have continued to increase.

Most recently Twitter was in the news for how it played such a starring (and deceptive) role during the Presidential elections in Ireland – while this highlights a risk around how people process information without source verification it also shows the instant and incredible power that it has today.

I won’t start giving a lesson on how to use twitter but I will share with you my Top 10 reasons why we think you should consider embracing it for you and your business –

1. Branded Chit Chat – on twitter you can choose an identity for yourself and every time you post, your “identity” carries with you, it’s like advertising in a subliminal way @prguru. Guess what service that person provides? Even if you are chatting about the latest Liverpool game your identity travels with you.

2. Viral “ability” – of all the social media platforms twitter is the very best for passing on information. The retweet facility makes this possible. I pass the message to my followers, them to theirs and so on. Uninteresting posts will not be retweeted but interesting ones will be, remember Simon Coveney’s, famous Brian Cowen post? Simon Coveney did not have many followers when he tweeted that information, it didn’t matter.

3. Innovators and Early AdoptorsSeth Godin in his famous book the Purple Cow talks about a typical product cycle and he stresses the importance of targeting people who love new things. These are the people who love to try new things out and then tell their friends, they are generally naturally curious and are often the ones who are vital for spreading the word – before you know it when enough people have heard about “that” new product it enters the mainstream, where volume starts kicking in.

If you have a new product or service you will find many of these innovators and early adoptors are already using twitter- makes sense if you think about it?

4. Avoiding the CrowdFacebook has the advantage of so many users and it is really powerful as a result. However it is a pretty crowded space with more businesses joining it the whole time competing for people’s attention. The chances are that your competitors are already up and running and competing with you in this space. Twitter on the other hand has not been explored to the same degree so you can steal a competitive advantage over your competitors and have more of those prospects to yourself.

5. Search – the search facility on twitter is incredible. You can use it to follow topics, to search on people discussing your business and your industry. We find it invaluable in our work with clients and in a “crisis” situation it is really useful. You can literally measure the temperature of a situation on twitter, which can be really useful if you are dealing with a tricky situation. In the last 12 months alone we have used it many times to assist us in our work with clients.

6. Read all about it! – the problem is that it is now impossible to “Read all about it” . With so many newspapers, magazines, radio and tv channels how is it possible? With twitter by following the correct media profiles on twitter you can create your own customised news feed. Everything from your favourite team (have I mentioned this is Liverpool!) to breaking news.

7. Journalists – for some reason many journalists have flocked to twitter, which probably tells it’s own story as to how they value it. If you start using it you can quite easily follow journalists who may be interested in your sector and if used correctly you will be able to learn what they are interested in and what they are writing about. Use the platform to try to build a relationship with them and then pitch your stories – make sure you build trust before you start pitching!

8. Audience – if you use twitter proactively we believe you have a good chance of building “followers” or an audience for your message very quickly, even quicker than Facebook. However, it’s up to you how you use these relationships once you gather them.

9. Relationships – we have found that the nature of the conversations is quite different and at times they are more of a “community” type – the conversations can happen between groups of people. As a result you can have quite different relationships with people. Once you are capable of holding your own on an issue or topic you will build a good reputation and also quality relationships with relevant people.

10. Fun – there can be quite a good sense of humour around using Twitter and even though your topics might be heavy you can build good relationships around lighter issues, which can ultimately lead to a listening for your key messages. My key message is don’t take yourself too seriously on twitter, have fun, build trust and build relationships – after that spread your message.

I heard a great quote by someone who attended one of our social media for business courses in Dublin recently, when comparing Facebook and Twitter – “Facebook is for interacting with people you were in school with, Twitter is for interacting with people you wish you were in school with!”  – This is a big generalisation but it does capture a little bit of the unique spirit that exists on twitter.

Twitter is a load of rubbish, the stuff people tweet is totally useless.. who cares what people have for breakfast

I often hear this type of argument about using twitter so I will leave you with my closing thoughts ..

Twitter is like a radio station, you tune it in by following who you want – find the channels that you like. If someone is annoying you, don’t follow them, block them, change the channel – you are the controller!

So Jack, thank you for Twitter .. I’d miss you if you weren’t there, Happy Birthday!

Greg Canty is a partner of Fuzion Communications

“Live” Testimonials – Who thinks you are great?

February 25, 2012
testimonials

I think you're great !

My poor laptop was starting to fall apart, left mouse button a bit wobbly, battery life of about 2 minutes and a regular dose of crashing and ctrl alt deleting required ..

I just wasn’t up to the trauma of changing, mail system not working, transfer of files and program’s, a few days of frustration …. too busy for all of that!

In the end I was forced to bite the bullet so I rang my buddy Sean Ware from TSG who gave me a really good price on a well spec’d machine and promised to do a painless changeover.

Hmmmm … I wasn’t convinced, it never works out that way!

To be fair to Sean he had convinced us earlier in the year to move to Google Apps for our email service, which not only protected our emails but also made and changeover a lot easier.

A few days after ordering Sean arrived with the new laptop, software installed and even my email was set up. An hour later we were 100% up and running after transferring files and re-installing a few random pieces of software that I use.

I must hand it to him – the transfer was incredibly painless.

I paid him and sincerely thanked him for the great service.

Going out the door Sean winked at me and suggested that if I was really happy with the service I might “tweet” out that I was happy. To be honest he didn’t need to suggest it as I would have done it in any case! I was more than happy to oblige of course.

“Live” Testimonials

This is where social media is absolutely brilliant – you can capture “live testimonials” for you and your business for all to see.

Word of mouth was always the best form of referral and the traditional face to face method was the only way this really travelled. Now with your Facebook page, Twitter account and LinkedIn presence (of these LinkedIn personal recommendations are the most permanent and  powerful) you have an opportunity for anyone that is happy with you and your business to post that positive feedback “live” – what better way to capture that your customers are satisfied with you?

Next time someone tells you that you are great you know what to say to them!

Greg Canty is a partner of Fuzion PR

Do you want my number or do you want to connect?

February 15, 2012
Alone in a Crowd?

Connections or just numbers?

@gregcantyfuzion is following you – Great, that’s another follower and your numbers are building. Who exactly is this guy?

According to his bio he is a partner with a PR & Marketing in Cork and Dublin firm, called Fuzion. If you have any interest in this guy having had a peep at his profile you might follow him back. Why did he follow you and what is the value of the connection- is he just “collecting numbers” for vanity sake?

I try a little test when people connect with me by asking a simple question – “Hi Greg, thanks for connecting, how is everything in your world?

On Twitter, nine times out of ten I don’t get a response – they are either rude or just in a game of boosting their numbers. Worthwhile connection? – mostly not.

Greg Canty wants to connect with you on LinkedIn – Great, that’s another connection and your numbers are building. Who exactly is this guy?

According to his quite detailed bio I can see what he does, where he works now and where he worked in the past, I see links to his website, his recent comments and his other connections. He looks interesting so you decide to connect with him. Why did he follow you and what is the value of the connection – is he just “collecting numbers” for vanity sake?

I try a little test when people connect with me and ask a simple question – “Hi Greg, thanks for connecting , how is business with you?

On LinkedIn, nine times out of ten I do get a response – quickly you get a sense of why they wanted to connect with you. Worthwhile connection? – mostly.

These are generalisations but from my own experience the quality of your LinkedIn connections are much better, which says a lot about the platform. This is not to say that Twitter connections are worthless, but many of them seem to have very little depth. On LinkedIn the platform makes you jump a few hoops before it allows you to request a connection, which does preserve the quality to some degree.

You can find a “gem” of a connection on any platform but as with everything else in life if it’s too easy then it probably isn’t worth as much. The real magic starts when you start communicating openly with these connections and get a chance to show them who you are and what you do and vice versa.

so … do you want my number or do you want to connect ..?

Happy connecting !!

Greg Canty is a partner of Fuzion

Twitter and the New Car!

January 15, 2012
Car Salesman

At least this guy was making an effort!

My meeting had gone well, I was in a really positive frame of mind so I decided I would take the first step towards possibly ordering a new car for the start of 2012.

On the way back from my meeting I popped into a car showroom just to get a feel for the prices of the new cars, the second hand cars and of course what I would manage to get as a trade in for the Santa Fe that had served us well since the beginning of 2007 despite the high mileage.

I first spent some time looking at the “premium collection” parked outside, the collection of two and three year old cars all in great condition. Hmmm … not bad at all!

I then dared to venture into the showroom to look at the new models and I must admit feeling excited about the thought of being able to drive one of these beauties at the start of 2012. I was waiting for the approach from the salesman to start a possible conversation that could have resulted in a sale – a few of them were busy at their desks, a few walked past me with folders and a few were chatting to other possible customers.

I looked, I waited, I looked again and I must admit after a while that I was feeling a little deflated as car salesman after car salesman seemed to decide that I was an unworthy customer – did I look broke, did I look like a “tyre kicker”, did I look like another casual browser who was just going to waste their time? In any event I ended up leaving after about 20 minutes having spoken to no one.

Those who know me quite well will not be surprised that how I was feeling at that moment was shared on Twitter … “I must look like I am broke, the car salesmen didn’t come near me” I tweeted.

Jaguar XF

I know .... isn't it a beauty!

About 10 minutes later I received a call from a friend of mine who is in the motor trade who had spotted my tweet – he was initially concerned that this could have been his car showroom and that there was some issue with his customer service. I assured him that it wasn’t and that if my route back from my meeting passed his place I would have definitely have called in. Needless to say the conversation came around to me possibly being in the market for a new car..

I collected it beauty on the 5th January, it’s a beauty..

Who said twitter was a waste of time for business ..?

Greg Canty is a partner of Fuzion

Waiting for the Penny to drop

August 26, 2011
Changing trends?

Changing trends?

I was reading the text of an interview with a prominent retailer in Ireland (in business for over 40 years) who has a number of outlets – he was talking about the current state of his business and his outlook for the future.

Some of this is as you would expect:

Footfall, passing trade, impulse buying and general sales have decreased.. Last year was bad and this year is the worst ever … there is a need to work harder and continue to offer great quality, reasonable prices and a top class service to customers … we have to offer continuous promotions to keep the business ticking over …

we have to offer discounts to get customers to part with their money … whether we are in sale or not customers will often barter for a lower price and we are prepared to negotiate … the nature of our business is very personalised and we promote it with quality merchandise and great quality…

we’ve reduced prices by between 20 and 50 per cent, which customers have reacted well to… circumstances are changing on an almost daily basis as there seems to be a constant crisis with the Irish economy… we never got complacent even in the good times … the government isn’t doing enough to ensure healthy business and sales growth in Ireland…

Vat and rates are beyond our control and are the main reason why so many businesses are closing for good… we advertise on local radio and in the local press…. we do what we can to keep the doors open… hopefully there is light at the end of the tunnel

Now this is a guy and a business who has been in a permanent scrap for the last few years, no doubt fighting with landlords over rent, cutting back on staff levels, reducing staff wages, negotiating with suppliers over margins, fighting on a daily basis to get more efficiencies in the business and doing everything I am sure to stay in the game.

With admiration I am saying to myself “well done you are one of the great survivors – it sounds like you have been doing everything to survive” – then I read one final piece in the interview..

I acknowledge the growing importance of social media sites such as Facebook and Twitter for making immediate contact with my customers … we’re in the process of setting up a Facebook profile aimed at younger customers as I recognise the importance of social media as a form of free and immediate advertising

In the process of setting up a Facebook profile! – I find myself screaming to myself ..”What are you waiting for?”

Unfortunately this hard working business is fighting a battle on many fronts but it is stuck in the slow lane with smart competitors putting on the indicator and whizzing quickly by – he probably doesn’t even notice them.

Despite the extreme economic climate and the huge shift in how we consume media for many people the huge Social Media Penny has still not dropped … one of these days!

Why do we find it so hard to adapt?

Greg Canty is a partner of Fuzion

At Fuzion we offer social media consultancy to clients even those where the penny takes a while to drop!

JFK – the back garden speech and Social Media Magic

July 31, 2011
JFK - Famous Speech

JFK - Anyone Listening?

And so, my fellow Americans: ask not what your country can do for you – ask what you can do for your country. My fellow citizens of the world: ask not what America will do for you, but what together we can do for the freedom of man

Imagine if JFK had made this famous speech on 20th January, 1961 in his back garden over the fence to his next door neighbour instead of in front of millions around the world  – What a waste that would have been!

Imagine having the same audience and wasting the opportunity by delivering a short, boring speech and saying nothing of any significance – What a waste that would have been ..

While social media is still pretty much in its infancy I am amazed how many people are struggling with it – yes, they have jumped in there, have decided it is for them and that it warrants some effort but getting it right in most cases just isn’t happening.

I am seeing two quite contrasting and very common things happening in our work with clients and in our social media training.

The Posters

This crew have found the knack of posting on-line, they are pumping out status updates, clever links, uploading fabulous pictures of new stock or from customer events, sharing videos on Youtube that are relevant to their business. The problem often is that they are devoting a lot of time to posting but to a tiny audience – what a waste.

The Collectors

This very different crew are in a race for numbers, busy accepting connections on LinkedIn, accepting followers on Twitter and friends on Facebook but posting very little – “But, I don’t know what to say?” – what a waste.

The Message and the Audience

If you want to start winning with your social media efforts make sure you spend equal amounts of time and effort creating your worthwhile messages as well as creating an audience for these messages. Be patient, over time you will get better at posting, you will build the size of your audience and you will enjoy success with your efforts.

To achieve Social Media magic I will leave the last word to JFK and I will steal some part of that famous speech that is not as well known: “In your hands, my fellow citizens, more than in mine, will rest the final success or failure or our (your!) course

Greg Canty is a partner of Fuzion

Google Adwords and when you should try other forms of “Sniper” Advertising

July 18, 2011
Fishing for customers

Fishing for new customers!

I am a big fan of Google Advertising  used as part of marketing campaigns for our clients fishing for new customers – the Google Adwords platform is really valuable and I often refer to it as “Sniper” advertising.

Instead of your traditional “blanket” type advertising on newspapers or other media with your Google Adwords campaign you can target anyone that is searching for your products or services – effectively you can target the “low lying fruit” – those people who have already decided that they want what you have to offer.

If you are not found you are not in the game.

Google Adwords operates on a bidding basis whereby you “bid” on particular keywords or phrases – when someone searches for these your advert will display (if you are bidding competitively enough) and if the user clicks on your advert they will be directed to whatever page of your website you have specified. That’s powerful stuff – bringing them right to what they were looking for.

The great thing is that these campaigns operate on a Pay-per-click basis, which means you only pay when your advert is clicked on.

This sounds like an automatic recipe for success but there is no guarantee that the customer will order or enquire – once they arrive at your website you need to ensure that the content excites them sufficiently so that jump into some form of action.

Google Advertising

To Google or not to Google?

Google Adwords Tips

There are many tips for making the most of your Google campaigns:

  1. Avoid broad match – make your bids either “phrase match” or [exact match] (Google either of these phrases and you will find explanations)
  2. Build up Bidding gradually – start low and nudge your campaigns up slowly, keyword by keyword
  3. Quality Bidding – be careful with your adverts – split your campaigns into different groups, write separate adverts for each set of keywords and specify an appropriate landing page for each. Optimise your website ensuring that important keywords are catered for.
  4. Variations – work on your keywords – spend some time working on all the different variations and add geographic variants of these (PR in Dublin etc)
  5. Google Suggestions  – the Adwords software will help you with word variations (make sure you add these in “phrase” and [exact] match formats)
  6. Know your Margins – don’t go beyond what is sensible for keyword bids (pause keywords that are too expensive)
  7. Measure SEO – make sure that you are not bidding on keywords where you are performing well organically
  8. Position First is not necessary – sometimes Position First can be a lot more expensive than 2nd or 3rd, which may make a lot more sense
  9. Reporting – set up your reports and keep an eye on the keywords that are using up most of your budget – make sure it makes sense to spend money on these keywords
  10. Be Patient – people might come to your website a few times before they purchase – would you buy 1st time you visit a website
  11. Awareness – while orders and enquiries might be the ultimate goal other benefits could include awareness in the sector
  12. Compare Value against Traditional Advertising – Google Adwords is another form of advertising – compare the effectiveness of your budget against what you are getting in other forms
  13. Database – Once you get people to your website try to get them to sign up for any form of database (newsletter, Facebook or Twitter)
  14. Content Placement – Avoid content placement adverts in most cases (where Google places your adverts on various websites on the net)
  15. Professional – Get help from a professional when you are setting up your campaign but ask for training on how to use it (if you do not know what you are doing Google can be a hungry beast!)

(I’m sure you can add many more tips – I will gladly include other suggestions!)

Facebook advertising

Facebook Advertising a serious player?

While Google is a great form of online advertising it doesn’t always work and there are times when you should consider switching budget to either Facebook or LinkedIn advertising.

With both of these platforms you target a “fixed” advert(s) and pitch it to a certain demographic of people – these adverts operate on a pay per click basis in the same way as Google. (LinkedIn is the more expensive of these platforms).

The demographic options with both are quite different and as you would imagine LinkedIn is much more suitable for Business to Business advertising.

When advertising here it must be remembered that the person using the platform has not executed a “keyword search” – they are merely using the platform – this probably means that the “click” onto your website is probably less valuable or less immediate than with Google.

I would consider these platforms as an option when:

  • Your keywords are just too competitive, and as a result too expensive on Google
  • Your product or service is quite new and people do not yet know how or what to search for
  • Your objective is more about awareness and branding and building a following (Facebook)
  • You want to advertise to your prospects in a more social or specifically business environment (Facebook/LinkedIn)
  • You want to target people with declared special interests (Facebook)
  • You want to target people who work in particular industries and who hold particular job types (LinkedIn)
  • Demographics are more important that search keywords

A superb feature of Facebook advertising (this is why Google are starting to target the social media space with Google +1 as it is a real threat to their revenue) is that you have the option of bringing users to your facebook business page – here you hope they will “like” the page when they get there and then you will enjoy a cumulative effect with all your advertising efforts.

Once you have an interested person on your page you can then excite them with your content, which should lead to plenty of business over time.

Summary – Pay Per Click

Pay per Click advertising is still growing and should be seriously considered as part of your marketing mix. Now there are even more options online and it is important that you understand each of these and explore how these could work for you.

Each of the platforms present unique opportunities, which if executed properly should bring extra business to you.

Pay per click? – It’s just a click away, what are you waiting for?

Google, Facebook or LinkedIn

Greg Canty is a partner of Fuzion and runs Pay Per Click campaigns for a wide range of clients

Barack Obama and his “Penny Drop” Social Media moment

May 8, 2011
Barack Obama - Social Media

Barack Obama's Penny Drop Moment!

I have come to realise that no matter how you map out the Social Media Opportunity for clients, or try to demonstrate the success that others have had using the different platforms, they themselves have to realise the magic, the possibilities – I call it the “penny drop” moment!

Once that happens they are “off”, they are converts, they assign resources to their social media efforts and they start seeing results.

The “penny drop” moment arrives at different times for everyone and for each of the different platforms.

For me it happened at different times :

Facebook – a peer I met in Dublin casually commented on “how well Fuzion were doing“, I gladly accepted the compliment but asked how they arrived at that conclusion, ” Oh, I follow you on Facebook” … Hmm, I didn’t realise how many people were listening or paying attention to what I was saying

Twitter – we were able to achieve valuable coverage for a client, an International NGO during the Haiti disaster by communicating directly with journalists on Twitter who were actually out there  …. Hmmm, now I get it!

LinkedIn – this one was easy, reaching out to the business community in your target locations and being able to generate relevant discussions on your areas of expertise. You go to networking meetings and people you have never met, come up and chat to you because they have seen your posts and recognise your ugly mug …… Hmmm, this seems to be working – no brainer!!

Blogging – in the beginning you wonder how this will work for you, then you see with “sticky” content (stuff that is interesting, or made interesting) and posts in relation to your areas of expertise that you receive large numbers of hits and your search engine scores are great. I even managed to highlight nasty issues, quickly sorted out issues with a national phone provider and had material published nationally …. Hmmmm, now I get it!

If you are in any doubt or need further convincing about the value of Social Media we might ask Barack Obama, the leader of the free world, the first ever “social media” President , when was his “penny drop” moment? ….. Hmmmm, I’m the President of the United States!

Have you had yours ?

Greg Canty is a partner of Fuzion

The Business Social Media Dilemma

May 2, 2011
Gary Vaynerchuk - Thank You Economy

Gary signing copies of Thank You Economy

In the terrific Smarter Egg book learning programme our group has just finished reading and discussing the excellent book by Gary Vaynerchuk, “The Thank You Economy” , which deals broadly with businesses adopting a “Thank You” philosophy and embracing the Social Media opportunity properly to be successful in the marketplace.

The book was really interesting but in it Gary V took a huge swipe at PR companies for their approach to Social Media for their clients, which was a little unfair (then again, it depends on your PR company!).

Basically he stated that 90% of the worst social media engagements were produced by PR companies! Even stronger than that he accused PR companies of spotting that the “wind” was blowing away from them towards social media and the reason they are engaging with clients in this area is just to bolster up their fees and chargeable hours.

In my experience Gary is way off the mark but it does put the spotlight on what I refer to as the “Social Media Dilemma“.

Social Media Dilemma

It goes like this – as a PR company who always takes a broad “holistic” approach to communications we know and clearly understand the benefit of Social Media for our clients, in fact in 99% of cases well before them. We push for them to engage in this area properly but we do realise that the “voice” used on the platforms should be a trusted and skilled internal voice.

Now for the dilemma – often this trusted and skilled voice is not available and our client is not prepared to allocate the proper resource to this area.

To make sure that they do not get left behind their competitors we will make ensure that our client’s open up their Social Media platforms (Facebook, Twitter, LinkedIn, Youtube and their blog), that they look the part as they are an extension of their brand online and we will also provide them with the necessary training so that they are well equipped to use them proficiently.

We know we cannot do this for them but we will always be there to support them and will never be shy in recommending that they should be more active in that space. Sometimes as an option we might assist them in the “learning phase” until they are fully up and running. (often we have to be quite careful with Social Media conversations because if a client isn’t ready to listen you will end up annoying them!)

We see the huge opportunity for clients and if the Social Media platforms were not there we would be gutted – they add so much opportunity for all our clients.

Swiss Watchmaker

Master Craftsman

Dilemma: Who? – Social Media Manager

Who looks after the Social Media in a business is a vital issue. Gary V refers to this person as the “Community Manager” and is quite right in stating that it should not be someone that you can’t find anything else to do with!

He rightly suggests that this person should not be an intern or another junior person. It should be someone who knows the business intimately, who understands the customer, who is passionate about customer service and who is well able to communicate in the “social media” arena – this person must be quite skilled in this area, which is often underestimated.

Why Social Media activity fails?

This leads me to Gary’s suggestions as to why most Social Media initiatives fail:

1. Using tactics instead of strategy

2. Using it to exclusively put out fires

3. Using it to brag

4. Using it as a press release

5. Exclusively re-tweeting other people’s material rather than generating “own” content

6. Using it to push product

7. Expecting immediate results

I agree with Gary on all of these points 100% but I think it is missing a BIG, BIG last point – a NUMBER 8!

8. Skill

This for me is probably the biggest point and while Gary alludes to it at times I think he actually doesn’t fully appreciate it and maybe he takes his own talent in this area for granted.

Using social media is a very highly skilled discipline, which requires individuals:

  • who understand each of the media intimately
  • who have strong “informal writing” ability
  • who understand the business and customers well
  • who can be fully trusted to be the voice of the company,
  • who have enquiring minds
  • who can manage the unstructured nature of the communications
  • who can respond themselves under most circumstances but knowing when they need assistance
  • who can spot and manage communications with genuine customers and at the same time filter out posts by possible competitors/cranks
  • who have the ability to summarise and relate issues back to management in a timely fashion.

To add to this the platforms have to be managed 24/7, which requires some co-ordination of resources, consistency and dedication.

Wow – that is some job!

Gary Vaynerchuk is a social media genius who is the passionate owner of his own wine business, which makes him quite unique – maybe he underestimates his ability in this area and as a result thinks it is easy for anyone to just jump in and be an expert.

So Gary, thanks for the book, thanks for the terrific examples (Old Spice and the San Francisco dentist!) and insights, never underestimate your own skills and please don’t be too hard on the poor PR companies in the future!

Fuzion provide Social Media Consultancy and Social Media Training.

Greg Canty is a partner of Fuzion

Are you spending enough on Positive Costs?

April 25, 2011
Doorman

Positive Cost ?

In my accounting days (yes, I know most of you won’t believe it – I was!!) we had a few different ways of looking at the costs of a business.

The most popular of these was a very simple analysis – Fixed Costs, which were those costs that would not vary with volume and Variable Costs, which were the costs which did vary according to volume. This was quite a simplistic model, which didn’t always hold up!

We then had other methods of looking at costs such as Zero Base Costing and Activity Based Costing .. interesting stuff indeed!

Since the recession has kicked in I have witnessed first hand clients being advised to cut back on expenses by the accounting fraternity and often they just do it themselves automatically – the types of costs that get chopped first are those that are deemed to be “unnecessary”, which will typically include marketing &  advertising spend, sales reps, items like training, corporate entertainment, Christmas gifts, staff entertainment  and other “extras”.

On the surface it is easy to figure out why companies would cut back in such a way but you could ask the question: Why spend this money when sales were easier to come by and when it is harder to win business you just abandon them?

Could reduced sales be a self fulfilling prophecy when you cut out certain overheads?

The New Cost Model

Taking the knowledge of my old profession and combining this with what I am witnessing with clients every day I am now proposing a new way of analysing costs.

Here goes ..

There are actually three types of costs:

Negative Costs –   these are the costs that a business is “stuck” with, regardless of volume. It would include Rent and Rates (but not necessarily 100% of these – I will explain that later), Insurance, ESB, etc.

Maintenance Costs – these are the costs of servicing the business that you have brought in. It would such items as staff costs, raw materials, power and delivery costs.

Positive Costs – these are the costs that are all about bringing new business in, effectively the costs, which should have a “positive effect” on the business.

Positive costs are the most important costs of the whole business, they are the elements that are designed to start the engine, the elements that can make things happen, that “trigger” customers to actually place an order.

Positive costs are far reaching and could include surprise elements that you would not expect: the premium you pay to have a premises in a location that will bring in more customers, the cost of washing the car after it has been serviced, the cost of polishing the shoes that have been repaired, the cost of having a receptionist who answers calls promptly and deals with customer queries swiftly.

There could be an element of positive costs to most people overhead in the business – the porter who does “meet and greet” at the door of the hotel, the credit controller who carefully spends time with customers who are experiencing difficulty, the accountant who spends time with customers to understand the business better, the staff party to reward a hard working team and a deliberate initiative to improve morale.

I’m sure with a little effort you will think of thousands of other unexpected examples – all of these elements contribute to bringing in more business and create a “positive effect” on the business.

Of course Positive Costs will include items such as advertising, marketing, graphic design, web marketing, social media activity and even PR!

Positive costs are absolutely essential for generating business for any company – cutting these out may be viewed as a necessary step but it will eventually choke the oxygen of the business.

Recession (or any time for that matter)

Using our new cost model I would suggest the following approach:

Analyse your costs into the different cost categories and work towards –

1. Reducing the negative costs as much as possible

2. Improving efficiencies and work practices so that maintenance costs are as little as possible

3. Spending as much of your overhead budget as possible on positive costs .

I am not for one minute suggesting naive spending – always look for the best value in your positive costs and don’t waste money, making sure they are actually positive costs – that the spend results in increases in business.

Are you spending enough on Positive Costs in your business?

Greg Canty is a partner of Fuzion