In this week’s marketing strategy, we’re going to explore how to give customer rewards (customer loyalty rewards) in return for customers sharing your business on popular social media sites.

iMingle is a fairly new player in the social networking scene, and it brings in an element most people don’t associate with social networking: insurance. It works by rewarding people for networking and purchasing insurance; when individuals network, and get a group together to purchase insurance, they can get a multi-policy deal and garner big discounts that otherwise they’d have no way to access. The insurance companies get more customers, and the purchasers get a better bargain on what they pay.

So far it’s working pretty well, and it’s a new concept that small businesses can grab onto and use in their own way. Here’s how:

Putting the Strategy to Work in Your Locally-Owned Business

To apply this strategy to your own small business, ask yourself two questions: what do customers want most from you (what can you provide) and how can you give your customers what they want with your social networks? Let’s break that down a little bit by looking at a hypothetical case: a small-town restaurant owner with a good business and the desire to expand with online sales.

So our restaurant owner – let’s call him Jerry – thinks about what his customers want most from him. That means both his local customers and his (potential) online customers. Jerry wants to use his online presence to connect with local people and to increase his customer base for Internet sales of his packaged gourmet foods. He knows what his local customers want: they want to get great deals and discounts on meals at the restaurant. He’s asked them in various ways, and that’s always the most popular response.

Jerry’s not so sure about his Internet customers, because he’s still getting into that world of online sales. So he takes a guess that they probably want great deals on the stuff they’re going to buy from him, too. They want high-quality, unique gourmet food items and they want to get deals and discounts on those items.

In both cases, what Jerry needs to provide is a better deal or the opportunity for a discount: a way for his customers to get an insider’s bargain on his meals and gourmet items. The second question he thinks about is this: how can he use his online presence to give his customers what they want, in a way that rewards them for interacting with him (i.e. his restaurant) online?

Jerry comes up with these ideas:

• He can give a coupon every time someone refers a friend who becomes a fan of the restaurant’s Facebook page or a follower of the restaurant on Twitter.
• He can offer group discounts; when a fan or follower gets X number of people to make a purchase (in the restaurant or via the online store) they all get a certain discount. He can use coupon codes for this.
• He can give a coupon for any type of social interaction online which promotes his restaurant; customers can “earn” a discount by sharing a link to his webpage, his Facebook page, or his Twitter account, or by blogging about his restaurant, reviewing his products, or getting a friend to sign up for his e-newsletter.

What ideas do you have for your business to expand your reach to new customers while rewarding the loyalty of existing customers?

Image: One Laptop per Child

Choosing one social network over another might seem like a toss-up for small business owners. What does it matter which one you use, as long as your business is online? You’re interacting, you’re building a network, so you’re accomplishing your online marketing goals, right?

Well, maybe. But with a little insight you can not only make better decisions about which social network(s) to put time and effort into, you can also learn how to use them more effectively. That means more results in less time, and that’s a good thing for anyone in the hectic world of running a small business.

What Are Your Goals?

(If you don’t know, check out this recent post on how to set your goals – and follow our series on marketing planning.)

What do you want to accomplish with your social networking? If your first answer is “to create an online presence,” well, that’s a good starting point. But what do you want to do with that online presence? Do you want to connect with customers? Get feedback? Build a mailing list? Generate leads? Sell your products and services online? Get people to your blog or website? Collect customer information? Interact with your most loyal customers? Get word-of-mouth spreading via the online networks?

Certainly it would be nice to accomplish all of those things with social networking, and over time you can get close to achieving all. In fact, most of those goals are spin-offs; achieve one, such as spreading word-of-mouth, and you’re automatically achieving another, such as generating sales leads.

But goal achieving isn’t automatic. While any online presence is better than none, a smart small business will make savvy use of the Internet and those vast resources.

Facebook vs. Twitter: A Few Surprises

Facebook is the online giant, bigger than Google now, with 78% of all social networking traffic belonging to Facebook, That’s great news for you, when you set up your Facebook Business Page. And Twitter, with only 5% of the social networking traffic, is a much, much smaller piece of the pie. But traffic isn’t the only thing that matters; you not only need people to visit you (on Facebook or Twitter) you also need them to respond, to interact, to follow through, to take you up on those great offers. And while Facebook, the social giant, gets an average of 3 clicks per link posted, Twitter users get a much higher response: an average of 19 clickthroughs for each embedded link. That’s a huge difference!

How to Be Savvy
Now before you go delete your Facebook page and focus all your time and attention on Twitter, take a moment. Facebook and Twitter are vastly different social networks, and if you’re smart, you’ll use both – in a partnership – and reap the benefits of both. Here are a few key differences:

Facebook reaches a bigger audience, but Twitter reaches a more targeted audience. So it’s going to take longer to get noticed on Facebook, but there’s huge potential once that happens. Once you do cross an attention threshold with Facebook, your audience is almost unlimited. So realize that you’ll have to invest more time into building up your Facebook page, but that the investment can pay off in big numbers.

Twitter is very of-the-moment, but Facebook makes browsing easier. Although the new Twitter interface makes it easier to look back at the history of a particular user, it’s a different atmosphere. Twitter users want to be in the moment, so if they miss your first link or mention, they might not go back and find it. With Facebook, however, when a user visits your page they get all your latest information right there in one spot, and responding to older posts or information is easier and more common. Use Twitter to tweet and retweet relevant news, information, links, updates, deals, and ongoing items of interest, and use Facebook to interact on a deeper level with your customers and fans.

Image by 10ch.

Sources:
Entrepreneur Magazine
SocialTwist Sharing Trends Report

More and more brick-and-mortar business owners are starting to see that social networking helps business: it increases your public profile, helps you create a recognizable brand, and helps you reach people you might not otherwise reach.

But what about the benefits of social networking for reaching out locally? Can you use social networking not to “expand” into a new target market but to get more business from where you already are?

In short, absolutely. Social networking can become a huge boost and help you increase local business. Here’s how to go about it:

Create a Local Presence Online
Maybe you have a website or business blog, or you’re building up your Facebook business page and learning your way around Twitter. Use your time online to create more contact with other local folks. Here are a few ways to do that:

1. Get your profile on geo-social sites like Foursquare and Facebook Places.

These social sites are places that map local areas and then allow users to interact with those local places online. Create an account, and then claim your local business on the map; you’ll go through a brief confirmation procedure, and then you can start interacting with users on the social site. (Look for more on this in an upcoming post. We’ll walk you through it step-by-step.)

2. Find local groups and local business pages on Facebook and get involved with them.

Use Facebook’s search tool to find groups and pages from your area, then join the groups and become a fan of the pages. Interact; respond to posts, ask questions, answer questions, be friendly, and contribute. All you’re doing is expanding your local presence from the street front and physical community to the virtual street front and online community.

3. Connect with local news and review sites.

There are some national websites, such as Examiner.com, Citysearch.com, and Yelp.com, which have local branches. Browse through these and you’ll find reviews of area restaurants, articles on local events, and more. Get in touch with the news writers and offer an interview or story idea relating to your business; most of the time these folks are looking for good material, so they’ll jump on your offer. For the review sites, make sure your business is on the site, then respond to good reviews with thank you and any negative comments with an offer to help and resolve the problem. No feedback from you will come across as negative, so be proactive here.

Promote Your Social Networking Offline
Once you’ve got a Facebook page, website, blog, or other networking method in place, start telling people about it! Put a link on your business cards. Create and print a simple flyer telling people to find you on Facebook or follow you on Twitter. Put a sign in the window, a sign on your bulletin board, a link on your email signature, and a reference on any other material that goes out of your business.Local folks will not just automatically find you online; you have to tell them. And sometimes you have to tell them a few times so, repeat, repeat, repeat.

Use Social Networking to Promote Your Local Community
Now that you’ve established a local presence online and started getting local people to connect with you online, it’s time to leverage all that work into more local business. Do this by using your social network and online storefront to promote local events and provide special locally based offers. Sponsor the next charity 5K run and talk about it online. Put a local community calendar on your website. Put an events tab on your Facebook page and highlight local events as well as events as your own business.

What you’re doing is becoming a local resource, both online and offline. Expand your local value by offering special discounts, deals, and coupons to local folks but do it online. Send a special message to your Facebook followers, an email to your subscribers, or tweet out a message offering 1/2 off an item for the next 24 hours. Make your discounts significant and time-limited and offer them frequently; this motivates your local fans to follow you online so they don’t miss a special deal, and it also motivates them to share your great deal with other local folks.

The key in this strategy is to keep the focus on the local folks. What gets them excited and makes them want to come back? Figure out what that is, translate it into something you can offer or talk about online, and you’ve found the key to leverage social networking for more local business.

Photo Credit: philcampbell

You’ve heard us talk about the phenomenon for small businesses that is Twitter. We’ve talked about everything from fun Twitter contests to writing tweets that get the picture or link opened.

But what about Twitter basics? Lots of brick and mortar retail stores and local restaurants are catching onto the fact that their customers are on Twitter – and that deals are being done there. Is it time for you to catch on to Twitter and capture some of those deals?

I say an emphatic YES!

First things first:
1. Setup an account on Twitter. Go to www.twitter.com and get started… It’s easy and painless. And unlike many social networking sites – if you choose a username or “handle” as they’re called in Twitter circles – and decide later that you made a bad choice – you can change it! Twitter is cool like that, so don’t sweat it – go sign up!

2. Upload a PICTURE of you or your store logo for your avatar. This is a critical step.

3. Tweet a few times. Just say something about your business, what you like, what you’re doing. You can’t tweet too much – unlike Facebook where you can really overdo it and drive folks nuts.

4. Download Tweetdeck to your computer. It will be your new friend.

5. Visit Twitter’s Advanced Search engine – type in some searches about your community, business district, business niche or even your business name. Watch in amazement at what pops up.

There’s more to a successful run on Twitter – like writing a description that gets you found, creating a Twitter background, who and how to follow, how to grow a following – and most importantly how to start doing some business on and thru Twitter. That’s exactly what we’ll be covering in our webinar on Tuesday, September 14, 2010 called (remarkably) Twitter for Small Business 101. Andy and I will co-teach this webinar – and you will leave FULL of great and valuable information whether you a complete Twitter novice – or have been on Twitter for a while. We’ll talk Twitter strategy perfect for retail stores, small business and local restaurants and the like. Join us by registering here… and stay tuned. We’ll be talking a lot more Twitter in the coming days and weeks.

Editor’s Note: Annie Mueller provides value-filled, relevant content to help small businesses build an effective online presence. In over 6 years of freelance writing, she’s never had an unhappy client.

Networking is about meeting and building relationships with people for a purpose. It’s that last part that counts in the definition, the purposeful part. Otherwise we’re all just socializing, which is what much of it amounts to anyway because if you don’t know your purpose, it’s pretty difficult to achieve it. That’s fine if you just enjoy socializing for the sake of socializing (and, actually, the best social networkers are people like that usually). However, if you’re spending marketing dollars and the prosperity of your business depends on the success of your social networking, you’d better do a bit more than socialize.

1. The Question You’d Better Answer First

Why are you interested in social networking? To build your business? How, exactly?Do you sell online or just promote online? Are you locally, nationally, or internationally focused? Do you want people to talk about your business online, share your links, spread the word about you, learn more about you, recommend you, sign up for a program, get a free sample, get your e-newsletter, read your blog, interact with you, ask questions, get a membership, order a product, pay for a service, refer you to their friends? If social networking works for you just the way you want it to, what will the results be? Get that pinned down first; don’t tweet a single character or start a Facebook page or write a blog post until you know the answer to this question:What do you hope to accomplish from your social networking? What are your ideal results? Be very specific; don’t say, “I want my business to grow.” Say, “I want 75 members in my exclusive coaching clubs,” or “I want to sell 6,000 widgets online next year,” or “I want 100,000 readers so I can sell pricey ads on my site,” or “I want 250+ people in my referral program,” or “I want 100 customers to sign up for my gold-level service club.”

2. Believe in what you have to offer.

Billy Mays. Everybody wished he would be a little bit quieter but nobody doubted he really loved that OxiClean. And he sold it. Bob Ross. He was all calm and light and happy trees and you just knew you could paint that way, too, if you listened to him. He believed it, and he sold it. Tyler Florence. A gourmet chef singing the praises of a packaged salad dressing? Er. Something’s screechy and wrong here. If what you are trying to sell violates the principles you have already defined for yourself and your business, don’t waste your time trying to sell it. You either have to find a new product or service which fits with the way you’ve defined yourself, or you have to redefine yourself and your business. If you can’t convince yourself that what you have to offer is genuinely worthy, then you cannot convince anyone else. Believe in your business, first. If you’re in one of those slog points, revisit the notes you made on top of the mountain. Remember your strengths. Think about your unique offer. Define the value and make sure it’s something you believe in.

3. Find the right people: the ones who actually need and will benefit from what you offer.

Target your online audience as (or more) carefully as you target your target market. Who will be interested in what you have to offer? Don’t waste your time trying to interest “everybody.” NOTHING (except maybe toilet paper) has universal appeal. Focus on the people who will love, adore, and build small shrines to the solution you bring them. They will become your secondary marketers and will talk a whole bunch of other (fringe) people into trying your business, too. They will be passionate, enthusiastic, and committed customers. Get these people. Focus on them. Pour your attention onto them. Quit trying to convince a huge crowd of slightly disinterested folks to get interested in you, and instead, start talking to the people who are already into your field. Your job is half-done.

4. Find a (free) preliminary way to solve problems.

Before you sell, give. This is a basic idea of permission marketing, education-based marketing, and Golden Rule marketing, which are all pretty much the same thing. So pick a name and then apply the concept by giving first. Offer genuine value. Don’t try to cheap out at this point. People will flee and never return.

5. Find and focus on 1 to 3 social outlets.

Even if you have a full-time, salaried social networker plugging away for your business, focusing on a few social outlets rather than trying to have a presence on all of them will get you better results. Of course Facebook and Twitter are the big daddies, but if you know your target audience well (and you should) go where they are, whether that’s Facebook, Twitter, ZombieLandForums.com, or somewhere else entirely. Go to the people you want to reach and focus on a few of the places where they hang out online.

6. Be enthusiastic.

Because if you don’t really care or even like it that much, why should anybody else? Introverts, break out of your personality a bit and show some emotion. If that’s utterly impossible for you, delegate or hire out so you get a voice out there with some enthusiasm in it. Otherwise you waste your time.

7. Offer value, help, and attention.

First, offer free items of value. This could be content (your blog, your resources) or samples (don’t be cheap) or trials or digital products (ebooks, podcasts) or giveaways or clubs or services.Second, offer help when you see a need and, definitely, whenever people ask for it. Don’t hesitate. Don’t count up the loss of billable hours. Help.Third, offer attention when people start interacting with you. Don’t work to get people to notice you and then ignore them when they do. Follow up. Listen, Respond. Interact. Be real. Give your attention.

8. Be consistent.

Give people familiarity and reliability. They tend to like that sort of thing.

• Consistent message: say one thing, say it clearly, and repeat it often.
• Consistent value: don’t create one great product and then cheap out on the next. Your customers will feel betrayed.
• Consistent method: if you blog, post on the same days and follow the same format; if you tweet, offer the same kind of helpful info all the time; whatever you do, set up a format that works for your goal and stick with it. Sure, some variation and creativity is great; just work within some basic boundaries so people know what you offer and aren’t disappointed. It only takes one visit to a blog without a recent post for a visitor to strike you off the “live” list.

9. Be ready to sell what you have to offer.

If you follow the steps as outlined, eventually (maybe much sooner than you think) people will ask, “What else?” You’ve offered value, you’ve been sincere, you’re enthusiastic and likeable, you’ve been helpful, you’ve been consistent. You’ve won them over. They like you. They want to give back. They are eager to invest back in you the way you have invested in them. So give them a way to do just that!

• Make it obvious. Obvious doesn’t mean obnoxious. No flashing signs or neon arrows necessary, but a nice big button that says, “Order XYZ Product Here” could do the trick.
• Make it easy. Purchasing should be a simple, one or two step process.
• Make it sincere. Any sales material you have needs to reflect the heart and vision of your business. Go back to step 1: do you still believe in your business? Put that belief into words. Be real. You can always get an editor.
• Make it subordinate. Yes, this is your business; but your first goal must remain – always – to help the people in your network. If you know that they would be better helped by another product or service, or that your product/service will NOT help them, then it is your responsibility to say so. You may lose a sale, but you will gain a reputation that is worth many more sales in the future.

10. Follow up with even more value after the sale.

Repeat steps #7 and #8 with everyone who buys from you. Sound like hard work? It is. That’s the thing with social networking: it isn’t a magic button or an automatic cash cow. There is no keyword strategy that can build a business without any real value any it. So build a good foundation. Put the work in. And here’s the good news: the initial work will pay off exponentially. That’s the magic part of the social networking model, and it does work. Once you put in the work, the time, the belief, the energy, the effort, the attention, and the value, you win over a few people who love you like you love your business: maybe 10, maybe 100, maybe 1000. Then they network for you. The 10 becomes 100, the 100 becomes 1000, the 1000 becomes 10,000. And it keeps growing. You keep giving, of course. So yes: social networking, done right, is 1) hard work which 2) requires time and effort and 3) takes time before it pays off. But it also 4) does pay off and 5) the returns can be quite great and often 6) will take off and continue to grow far beyond the original investment you made.

Photo Credit: Intersection Consulting