For anyone who follows social media in the least bit, the discussion as to whether or not this form of communication is a fad or not seems to pop up more and more as of late.

You ask one ‘expert’ in the field and they will tell you that social media is essentially a fad; something will eventually go the way of New Coke and Beanie Babies. You ask another ‘expert’ and they will inform you that social media is here to stay for the foreseeable future, a tool that can only enhance a company’s profile.

Having followed social media now for several years, I would have to say that I side with the latter thought, that being that SM is here to stay for some time to come. I say that mostly because I see no signs that tell me otherwise.

You will also find me saying that if you’re a small business or you plan on starting a small business and you are not actively using social media to promote your products and services, you are missing the boat.

For those small businesses not exploring the possibilities with social media, they stand the risk of falling behind their competitors and missing out on added revenue for starters.

Do You Think Social Media is a Fad?

When social media first caught our attention, many of us probably looked at it as a fad that would eventually wear out its welcome. For those who predicted such a result, they’ve been wrong to date.

With some 750 million users on Facebook, along with the reported 200 to 300 million (depends on who you believe) using Twitter, it is obvious that many individuals look at and use these two and other sites as more than just a fad.

Many consumers and fellow business heads have turned to social networking sites for not only entertainment and news, but to shop for products, including  items like phone systems and much more. As a small business owner, you are missing the boat by not engaging with consumers and those fellow business owners who are potential customers, i.e. more return on investment (ROI).

Connecting the Dots of Social Media and CRM

If you’re familiar or not familiar with the term social CRM, it is the interaction of social media and customer relationship management. What does social CRM offer the small business owner? Among the options are:

• Building both trust and brand loyalty with consumers;
• Obtaining customer data and maintaining it in an orderly process;
• Providing valuable information for your customer base;
• Savings costs on expensive advertising initiatives;
• Interacting with customers today and not tomorrow, providing quick online responses to both questions and issues.

Additionally, having a sound and effective social media presence for your small business gives you the opportunity to reach out to potential customers who are online looking for goods and services.

In order to successfully go about this, your small business needs to utilize the online medium for:

• Blogging on company products and services;
• Retweeting and sharing important details that will assist both current and potential customers;
• Use polls and surveys to determine what customers most need and how you can assist them.

The bottom line is social media is not leaving us anytime soon.

If your small business has been gun-shy about getting on the social media boat, you better give it a second thought before you are permanently stuck in port.

Photo credit: sonicseo.com

0 Comments

According to Robbinex Inc, a firm specializing in the sale of mid-sized privately-held companies, the majority of business partnerships don’t make it past 3 ½ years.

Having been involved in business partnerships in one form or another for more than 10 years, I can tell you, like everything else in business, there’s a right way (that increases your chances of success) and a wrong way (that decreases your chances of success) to go about making business partnerships and relationships work.

The wrong way is to jump in blindly head first hoping the concrete pool has been filled with water. Sometimes you get lucky. Other times … ouch!

The right way to go about this involves 5 key steps:

1. Relationship discovery

2. Role specification

3. Ego reduction

4. Money matters

5. Acceptance

Sounds like too many pieces to the puzzle? It’s actually easier to solve than you may think.

1. Don’t Ignore Your Gut

This is all about your gut feeling. Through your communications, in person, by email, on the phone, and so on – how do you feel about this person? If good, move forward. If bad, it’s probably time to abandon ship. Your gut is usually more accurate than you give it credit for.

Think you can rush into finding a perfect match? Think again…while you can get lucky, these things generally take some time. Like any relationship, the more you know about your potential partner, the more comfortable you become.

In business as in life, you can only move to the next step when both of you are comfortable with each other and ready.

2. You Cook, I Wash the Dishes

So your partner has passed the ‘gut feeling’ litmus test. Right on!

Now it’s time to sort out what roles both of you will play.

This may sound trivial, but it’s not. The earlier on you decide what each of you will focus on, the more efficient your work will be, and the fewer disagreements you’ll encounter.

Figuring this out early makes you both accountable and sets expectations that you’ve both agreed to.

When a problem arises, and they always do, you’ll be able to quickly find the hole that’s causing the problem, plug it and move on.

3. Avoid the Ego Trip

We all have egos. Dictionary.com explains “ego” as “the self of any person and distinguishing itself from the selves of others.”

Most of us have knee-jerk reactions when it comes to protecting our egos. And that’s fine except when you take it too far.

Both you and your partner should express your opinions on all matters. But you also must prepare for criticism and understand its all part of the relationship. It is healthy. Accept it. Value it… and keep moving forward.

The classic downfall many partners face is the desire of one to always be better than the other. And while competition is a great thing, too much of this can flush the business’ potential down the drain.

Solution: You and your partner should aim to excel in the areas of the business you are focusing on. The result is that you’ll both be ‘the best’ at what you do and the business will benefit too.

4. Show Me The Money

The winner in the category of partnership destruction is…you guessed it, money.

There’s no issue more contentious than money. One partner thinks the money should be spent on a new Web site, the other on improving the product. One feels she’s working more than he is so she should get more money even though they both own 50% of the business.

The best solution for ridding this nagging problem from your business is to set out before the partnership gets too deep how money will be handled under every imaginable circumstance. For example, if you’re running a consulting business, you’ll want to discuss how consulting fees, office expenses, meals and entertainment, payment from speaking opportunities or product sales will be managed.

Even with all the planning in the world, things change, and there really is no magic bullet. The best advice I can provide is to be honest, completely transparent and review your finances on a regular basis.

The better both of you have a grasp of where the business is at and discuss your strategy around money openly, the better off your partnership will be.

5. Acceptance

The billionaire Seymour Schulich in his book Get Smarter dishes out very wise advice when it comes to relationships.

He suggests that you “Stop trying to control” your friends, relatives, partners and business partners.

This comes down to acceptance. Once you’ve successfully passed the first and second steps above, you should know how your partner works, how they think, and how they act.

Too many people go into relationships hoping and planning that they’ll change their partner to become more like themselves. That’s a recipe for disaster.

You are who you are, they are who they are. As Schulich says, trying to change someone “will make you very unhappy.”

Business partnerships can be immensely powerful. Use these 5 ideas to make your next partnership a success.

Photo credit: smallbusinessdelivered.com

Michael Zipursky is a business consultant and co-founder of FreshGigs.ca, a jobsite specializing in marketing jobs in Canada. His work has been featured in FOX Business, the Financial Times, HR Executive and other media.

2 Comments

Whether it was by accident or a tragic mistake on one’s part, an individual spent some time behind bars and now they’re in need of a job. Are their chances of finding employment good, bad or ugly? More importantly, what are the chances you as a small business owner will hire them?

This scenario actually occurs more often than individuals realize, so small business owners need to hire with caution.

Small business owners, especially those who may show a kind heart and have not dealt with this situation before, need to be sure the employee they bring in from the secretary to a management member has a clean record or has demonstrated clear improvement returning to society since their time behind bars.

If you’re hiring, understand the potential negative ramifications of bringing on an individual with a criminal record. Such actions have the potential to lead to company theft, workplace safety matters, and more.

In order to best negate those issues and practice due diligence, business owners should do their necessary background checks before hiring.

First, while companies are certainly entitled to check up on potential hires, know the rules prior to considering someone.

U.S. businesses typically are prohibited from disqualifying an individual based simply on an arrest or for that matter a conviction. Typically, applications will ask the individual if they have ever been arrested or convicted of a crime, with a disclaimer noting a “yes” answer might not automatically disqualify them from a job. The key here from the business owner’s standpoint is to be sure they do not unlawfully discriminate against the applicant.

Secondly, in the event someone has committed a crime and done jail time in their past, determine how that crime may impact their potential role with your company. For example, someone who spent time in jail for stealing money would not be a good choice to handle your accounting matters.

The best way to head off potential problems is doing a full criminal background check (the best possible to your abilities regarding time and money).

In order to best do that, first make sure each applicant signs a consent form to a background check, including one for criminal records. You can also word articles that include future background checks for retention and promotion unless revoked via writing.

One key piece of information is obtaining details on where an individual lived for the last 5 to 8 years. This will help you determine that the applicant has not done any recent jail time, i.e. there are no major gaps in where they resided during this time.

If you’re looking to give an individual a second chance, your heart is in the right place; make sure your mind is too.

So, have you ever hired someone who did jail time or contemplated doing so?

Photo credit: eb2bconference.com

Editor’s note: If you are interested in learning how background checks can be beneficial to your business, fill out the form to compare background check price quotes and get a free background checks price guide.

5 Comments

Business management can’t be boiled down to one department, one aspect, or one person. Breaking down the different types of business management can be tricky, but separating and determining the key characteristics of each is a great place to start. While some fields of management overlap, There are eight sectors of business management, each as equally important as the others: financial management, marketing management, human resource management, strategic management, production management, operations management, service management and information technology management.

Financial management, the most important part of business management, in the corporate world is about finding a healthy balance between profit and risk so that even with a setback, the business is profitable in the long-term. This type of business management involves planning, directing, and coordination between accounting, investing, banking, insurance, securities, and other financial activities of a business. Financial planning, control and decision making are the three key elements of financial management. Short-term financial management is often referred to as “working capital management” and relates to cash-, inventory- and debtors management. Both the assessment and technique of financial decisions fall under this type of business management.

The business discipline focused on the practical application of marketing techniques and the management of a company’s marketing resources and activities is referred to as marketing management. Whether you’re talking about brand management, strategy, or pricing, these are all a part of marketing management. The four major areas of marketing management are company analysis, collaborator analysis, competitor analysis and customer analysis. Spending time analyzing the different aspects of a business is necessary for developing the best branding opportunities and executing marketing tactics for the best ROI possible. The scope of a business’ marketing management depends on the size of the business and the industry it’s a part of. Effective marketing management will use a company’s resources to increase its customer base, improve customer outlook and feedback, and increase the company’s perceived value.

Referred to as HRM, Human Resource Management focuses on the recruitment of, management of, and provides direction for the people who work in the organization. Compensation, hiring, safety and wellness, benefits, and all that encompasses employee administration fall under HRM. A common misconception about HRM is that it is the responsibility of a human resources department or individual to execute HRM. However, the managers of all departments should understand that effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization’s goals and objectives. This is the responsibility of an entire corporation, not just one department or one person. In previous years, HRM was more focused on personnel administration. Now, HRM needs to add value to the strategic utilization of employees and the employee programs to positively impact the business.

Strategic management is the application of strategic thinking to the job of leading an organization. Many of the other branches of business management revolve around strategic management because the success of a business is often based on the strategies of finance, marketing, operations, etc. Strategic management focuses on the “big picture” of a business – where do we want to be and how can we get there? Perhaps the most chameleon branch of management, the most important element of strategic management is formulation of the organization’s future goals despite external factors such as regulation, competition, and technology. Strategic management is adaptive, incorporates competitive strategy, and keeps an organization relevant.

The decision making that comes with the manufacturing of products or services is production management. Production management techniques are used in both manufacturing and service industries. Machines, methods, materials and money are the “4 M’s” of production management because this type of business management is about converting the raw materials into a finished product, or service. One of the main focuses of production management is ensuring that production is efficient – this includes inventory control and employee training. Inventory control is by far the most important responsibility of product managers and involves tracking all components of production from required materials and finished goods to general supplies. Another major focus of a business’s production management team is research and development (R&D) of both the production process and the product itself. Businesses looking to expand, cut costs, and develop newer and better products must conduct R&D as a part of their product management.

Operations management involves the responsibility of ensuring that business operations are efficient, no matter the department. Managing the operations of a business means dealing with a plethora of departments, strategies, and processes. Operations teams need to consider the acquisition, development, and utilization of resources that their business needs to deliver the goods and services that clients want. Similar to other branches of business management, operations management must work with other departments and branches. Depending on the industry of a business, operations management can vary, but the end goal is the same: make sure the company and all aspects of it are running as efficiently as possible.

Service management varies completely on the industry and the business, but is essential to a company’s success. Service management is sometimes viewed synonymously with IT service management, but the two differ in a few different areas. Service management usually incorporates automated systems along with skilled labor and often provides service development, even if it is not IT related. Managing and streamlining workflow for the automation or support of human decision making is only one focus of service management. Service management is what enables a provider to understand the services that they are providing from both a consumer and provider perspective and ensure that the services facilitate the outcomes that their clients want to achieve. No matter the service, managed service providers need to understand and manage the costs and risks involved, as well as the value and importance of the services to their clients.

Managing the technology resources of a business to meet its needs and priorities is referred to as IT management. IT managers and teams are focused on making sure the technology of a business is aligned with the strategies set in place. IT configuration, service, and financial management are the three key elements of IT management as a whole. IT management means meeting business goals while fulfilling the expectations of customers. Managing IT means focusing on individual components and the delivery of end-to-end services using the best methods for reducing costs and improving employee efficiency. IT management incorporates the education and development of managers who can effectively manage the planning, design, selection, implementation, use and administration of emerging and converging information and communications technologies.

0 Comments

The most recent Bureau of Labor Statistics (BLS) report shows the slight increase in jobs in the month of January 2012, yet again making our ascent out of this recession a slow and painful one.  There are still many displaced workers but the increase in economic stability is creating jobs. If you are one of the lucky employers who has the ability to hire employees in this market, the advice herein will be a refresher on how to weed out those with less than desirable histories, and how to spot those who may be omitting or including things that just may not be truthful – and cost you a lot of money in the end.

If you think that digging into prospective employees’ resumes, or even running a background check, is not necessary then you may want to think again. Recent stories of late with Executives who stated certain criteria that never existed makes you think, what else are people hiding? With more than half of all job applicants listing untruths on their resumes you may want to find out more about who you are considering for a hire and run a full background check, before you find out the hard way. Hopefully this infographic will help you improve your hiring process so that you can build the best workforce possible for your business.

Feel free to embed this Infographic on your site for your readers by copying and pasting the code below into your site or blog:

<a href="http://www.business.com/blog/building-a-dependable-workforce-using-background-checks/" onclick="javascript:_gaq.push(['_trackEvent','outbound-article','http://www.business.com/blog/building-a-dependable-workforce-using-background-checks/']);"><img class="wp-image-4485 alignleft" src="http://www.business.com/blog/wp-content/uploads/2012/01/BS_I_02-Background-Checks-to-hire-a-Dependable-Workforcev1.6.121.png" alt="" width="600" height="3432" /></a><br /> Visit Business.com for <a title="background check" href="http://www.business.com/human-resources/background-checks/" onclick="javascript:_gaq.push(['_trackEvent','outbound-article','http://www.business.com/human-resources/background-checks/']);" target="_blank">background checks</a> and other business resources.

16 Comments

Employers and employees probably feel like they need 25 hours in a day just to get caught up with all the workplace has in store for them.

While much is expected of the employee, just what are employers doing to make sure their employees are taken care of while under their watch?

Despite a declining unemployment rate nationwide (currently around 8.3 percent) there are still a fair number of workers who are coming home with pink slips at the end of the day. When that happens, the workload is then heaped on other individuals who must do the extra work, something that can lead to stress issues.

According to a 2011 survey from the American Psychological Association (APA), 36 percent of workers reported feeling work stress on a regular basis and nearly half (49 percent) pointed out that a small salary has a major impact on their stress level in the workplace.

Along with money issues, employees stated minimal options for growth and advancement (43 percent), large workloads (43 percent), unrealistic work expectations (40 percent) and long hours (39 percent) as major sources of stress.

Additionally, less than half of employees (43 percent) indicated they obtain adequate non-monetary rewards and recognition for their efforts at work and only 57 percent claimed being happy with their employer’s work-life practices.

Finally, 52 percent of employees reported they feel valued in the workplace, only two thirds stated they were motivated to do their best at work and close to a third (32 percent) indicated that they intend to seek employment elsewhere within this year.

If your employees are feeling a tad stressed these days, what can you do to make them feel more at ease so that they have a better mix of work and life?

Among the items to consider:

• Make sure your workers know the signs of stress at work so they are pro-active and not re-active. In the case of an employee feeling anxious, irritable, fatigued or battling issues concentrating, see what is bothering them, especially when it might be work-related;
• Reassure them that the company is doing everything in its power to succeed and that layoffs are not in the plans anytime soon. Employees who have more job reassurance are less apt to be stressing;
• Make available a workout program via a local fitness club so that employees can exercise regularly. Whether it is one day or several days a week, employees will feel better about themselves and their jobs by getting proper exercise;
• Plan some social get-togethers. It can be a happy hour or an in-house lunch, but bringing your employees together as a team in a non-stressful setting offers a great opportunity for all to unwind;
• Review each employee’s time management and check out where they may be able to tighten up a few areas. By feeling less pressure to get things done on the clock, employees will be more relaxed and should concentrate better;
• Let employees know their contributions are appreciated. Too many employers only point out when something negative happens. Take a pro-active approach and congratulate employees when the job is well done.

While employers and managers have the ability to decrease the stress of their employees, not all do.

Some don’t recognize the signs of an employee stressing out, leading to an issue either where the individual begins to fail at their job and must be disciplined or even let go, or the person exits on their own accord.

By acting as a positive role model for his or her employees, business owners and managers can set the tone for a positive workplace experience from the intern all the way up to the top staff.

As a small business employer, what do you or your management do to make sure employees are both productive and satisfied?

Photo credit: rachelthinwitin.blogspot.com

5 Comments

Since the recession started, most people have focused solely on keeping what wealth they have.

In an economy where jobs are scarce and budget cuts run rampant, few people have realized that this is the time to grow financially.  Opportunities abound in this economic climate for people who are willing to take an active approach to their financial situation.

Why You Need an Attitude Adjustment

The Employee Retirement Income Security Act of 1974 decreed that retirement decisions need to be made by individuals.  This began the elimination of pensions; it forced employees in the U.S. to open 401(k) s and IRAs on their own.  This legislation should have ushered in a monumental change in American society, where individual success is lauded above all else.  The ability to control your own outcome had never been so accessible.

Instead, more than 35 years since the passing of this act; most people are taking a passive approach to their long-term financial investments.  Approximately 99% of the working population still has an apathetic relationship with their income.  The abundance of credit availability over the last 20 years has amplified this passivity – most families can afford to live well beyond their means, so becoming more financially literate isn’t required to sustain their immediate lifestyle.

In reality, most people are broke and feeling insecure trying to keep up with the Jones’.  They don’t know how to produce income without involving a third-party employer or a bank, so they are financially co-dependent on these institutions for their well-being.

This insecurity has created another consequence: the boom of the financial services industry.  Hundreds of thousands of financial planners and brokers are currently selling pre-packaged investment vehicles for the masses. Compound interest may be the 8^th wonder of the world, but inflation and the cost of living are growing far faster than risk free savings rates.

Thus, the traditional model of investing and saving leaves you vulnerable to market shifts, job loss, and cost of living increases without a strong residual base of cash flow.  You’re feeding the machine that’s put you where you are.

Why Your Comfort Zone Hurts You

When you’re looking at investment opportunities, avoid anything that keeps you in your comfort zone.

The reality is that there is no opportunity inside your comfort zone.  What’s next for you in the way of opportunity lies somewhere outside of what you find natural.  It’s a myth to think you can act like 99% of the population but have the financial independence of the other 1%.

You’re going to make mistakes as you grow; it would be a mistake to think you won’t.  You can reduce your chances of failure by focusing on investing in items that people consider staples.  Products that are regularly consumed and need to be restocked are good income earners.  Offering a competitively priced staple of high quality causes people to view your product as a brand switch.  This means you’re more likely to earn referrals and expand by word of mouth.

Other areas to consider investing in are network marketing or online distribution businesses.  These carry the least risk and have the highest return potential.  They’re also the quickest for the average person to get established.

How to Succeed on Your Own

The simple formula is to make more than you spend each month.

The information age has made it possible to start a business with less than $1.000.  The way to create passive income that becomes substantial is to think of it like a plate-spinning act at a carnival.  Treat each income-producing investment like a plate.  Get it up and running quickly, at a low cost to you (in time and money).

Once the first plate starts generating cash flow, you can maintain it with less effort; your overhead will stay fixed in proportion to your growth.  Now, you can get another plate spinning.

The idea is to get several plates spinning simultaneously, generating passive income – regardless of whether you’re watching them every minute or not.  The fastest way to fail at generating your own income is to start five plates at once.  Focus on one plate and build your skills so you can leverage them to expand.

Five Things You Need to Get

When starting your own source of income, it’s important to follow these 5 tips to ensure you’re actively boosting your chances of a successful outcome.

1. Get excited.

You have decided to create wealth.  The Latin root decisio literally signifies you’ve cut off all other outcomes.  You are making yourself accountable and effective, and therefore, more responsible.  That’s exciting.

2. Get committed.

Being committed is doing what you said you would do, long after the excitement has worn off.  Without a concrete resolution to stick with it, the inertia of your old comfort zone will pull you back in.

3. Get a coach.

Every world-class performer has a coach, not to do the work for them, but to see what they can’t see themselves.  (The gold medalist doesn’t get to the Olympics by himself!)  You need to find someone who’s successful at coaching others in business-building; he will keep you on track and help you see the big picture.

4. Get capitalized.

The best business idea is just a car without gas if you don’t have enough capital.  Free up liquidity by sacrificing a little of what you have today for the future you want tomorrow.  Capital takes on three forms: time, energy, and money.  Bolster each by taking simple steps: hold a garage sale, turn off the T.V., and exercise.  You can’t be successful in building income when you’re not investing in it in other areas of your life.

5. Get the right vehicle.

Picking the right opportunity makes all the difference.  If you’re spending an extra 20 hours per week building a business, then you need to get the most return for your time and money.  Pick something that pays you back more for a $1 or 1-hour investment than anything else would.  If you’re new to building a business, find a turnkey opportunity, where the structure has already been created for you.

You can take control of your financial future by simply choosing to take action.

Refuse to let others determine your outcome. Create it yourself.

About the author: Chris J. Snook has spent more than 11 years as an author, entrepreneur, and venture catalyst and has spent the last 5 years in the investment community incubating media start ups as the Managing Partner of TLEC Ventures. He co-authored three international best-selling books entitled WealthMatters 2007 and 2011 (2nd Edition) and Burnout: How to Transform Frustration to Fortune in 2005. 

1 Comment

There is an old adage that seems to have been lost in recent years: Business is about relationships.

With so many transactions going on the Internet these days, there has been a sort of disconnect that has even affected face to face dealings in the past five years, especially.

But with the rise of social networking and the way so many companies have been using it to touch base with customers and potential customers, that is now changing once again and the world is going back to normal.

While it is important to utilize social networking for your customer base, that isn’t where the tool ends.

Sites such as LinkedIn have shown that social media can also be used to network with others in the business world, building those ever important connections and relationships that can move you further up the ladder and better establish you as at the top of your game.

Networking During Conferences

Perhaps the best time to establish these connections is during conferences.

You have access to hundreds, sometimes thousands of others in the same or similar fields. Business cards have always been the way such things were handled. But think back to the last time you went to a conference and collected those cards; how many did you really keep in touch with? Social media makes this ever easier.

Instead of just taking a card and trying to remember each face and detail, you have a way into the business life they have portrayed online.

Not only that, but you give them similar access and a way to easily share you to others, increasing the range of your network with expansion capabilities never known before.

Tips To Best Utilize Social Media For Networking

* Prepare Ahead Of Time

You should already have a business only social networking account, or several.

Whether that is LinkedIn or the more casual Twitter, it should only be used for business purposes, and all personal interactions, such as friends and family, should remain on a different profile. This will make it easier for you to start mentioning the conference ahead of time, without it being lost in the fray of updates and comments. Try mentioning it a week in advance in order to spark some conversation.

Then, put together a list of four or five companies/contacts that you would especially like to meet up with there, and alert them personally.

* Update Regularly

Not every contact or relevant business will be at the conference, but that does not mean they aren’t important networking targets.

Update your profile regularly with anything from the conference you can. Write status updates about what is going on, leave interesting links to articles you know on subjects being discussed, or even post some cell phone videos and pictures.

Make your profile the place to go for info on the conference, and then use that to make connections with new people who were not in attendance but are in your field.

* Use Google Alerts

It might be the professional equivalent to stalking, but for those more important contacts you can set up Google Alerts to monitor major news or activity. This will keep you up to date before going to the conference, which will help you to not only break the ice, but be better prepared for any business discussions that might be necessary.

* Post Q&A Answers

After most lectures and presentations, there will be the all important Q&A portion of the event. Write down your questions during the talks and try to get them answered, then post the answers on your account.

You can also keep track of what other people are saying, and post that, as well. This is a good way to share information and bring further contacts to your profile.

* Keep In Touch

Once you have built a fair amount of contacts on your social media account, engage them.

On LinkedIn you can be supportive and professional, and more casual on Facebook and Twitter. Keep up with blogs and really engage them in conversation on a regular basis.

If you keep up with it, it is a simple way to build a business relationship that can mean great things for future collaborations or contact.

Conclusion

Social networking has provided us with an unprecedented way of communicating with people from all over the world. When it comes to your business, one of the best things you can do is use it to make connections and maintain them.

Next time you have a conference coming up, prepare early and then use it as a useful tool. You will be pleased with the results.

Photo credit: dsc.discovery.com

About the author: Olivia Sherwood is a social media marketer blogging for PsPrint, an online printing company specializing in brochure and poster printing among other popular services. For further information on the company, you can follow PsPrint on Twitter.

3 Comments

Everyone’s looking for the next best thing.

Companies everywhere want better conversion rates, higher quality customers, and more efficient sales processes.  Naturally, most start looking around at what the competition’s doing.

Often, when I’m strategizing with a client about conversion and usability of their site, the client will say, “Let’s just copy Amazon.”

The client’s rationale is that Amazon has already spent millions of dollars testing different options and scenarios, so they clearly know what works.   This is true – Amazon has invested millions in gathering data, and they’ve earned millions back by implementing what they’ve learned.

However, you are not Amazon.

Your company has different challenges and demographics than Amazon does.  You’re comparing apples to oranges.

Here are 5 reasons why you should give additional thought to the idea that Amazon’s model will be right for your business:

1.    Credibility/Brand Visibility

Amazon has a huge brand name.  While you’re probably a force to be reckoned with in your own niche, you don’t carry the clout that Amazon does.  Amazon can get away with more roadblocks to checkout than you can, and they can dot their website with lots of shiny, distracting items.  Their reputation precedes them.  Your goal should be getting customers in and out of the process as quickly as possible.  A reputation of efficiency can only help your brand – wearing your customers’ patience thin definitely won’t.

2.    Accurate Product Up selling

In all honesty, I am not a fan of product upsales during the checkout process.  People get distracted too easily.  Amazon has a different relationship with its customers; most likely already have an account with the company.  This means that Amazon has a much better chance of matching a customer with good recommendations based on others’ orders.  Amazon has millions of orders and, therefore, a massive amount of data to refine – and you don’t.  There’s a strong chance that your last-minute upsale efforts will strike your customers as random or confusing.

3.    Customer Service Reassurance

Amazon has spent years proving to its clients that each and every problem will be addressed.  A simple email takes care of an issue from the customer’s standpoint, so Amazon doesn’t have to advertise phone numbers.  You, however, do not have that luxury.  You need to have a phone number listed on every page of your site, including the checkout portion.  Encourage customers to call!  I’ve witnessed numerous instances where companies have avoided listing a phone number because they don’t want to have to hire staff to answer the phone.  Do a cost-benefit analysis on this strategy before you opt against it – it can be hugely reassuring to your clients.

4.    Repeat Customers

There is a lot of stuff on Amazon’s site, and much of it is targeted.  As we’ve noted, they have more data than anyone else out there, and they have the ability to target well.  They don’t need to worry about distracting users like you might – their customers are likely utilizing Amazon to purchase a variety of items in the first place.  These people visit on a weekly or monthly basis, in many cases.  Because smaller businesses tend to offer a limited number of products or services, it’s in your best interest to avoid cross-selling or up selling unless it’s the only way you make a profit.  Doing lots of cross-selling can hurt your ability to convert a one-time customer into a repeat customer – remember that.

5.    Different Business Models

At the end of the day, Amazon is a huge mall; it’s a massive shopping complex with several stores tucked within it.  If you’re a shop owner, it’s unlikely that you’re anywhere close to being the big engine that Amazon is.  Rather than trying to be something you aren’t, focus on the strengths of your own model.  As a niche provider, you have the unique ability to specialize in very specific facets of your customers’ lives.  You can become the best company in your arena, and you don’t have to diversify your inventory to the point where you’re just doing “okay” in lots of things.  There are good things to each side of the coin – maximize yours rather than concentrating on what Amazon has.

If you decide to follow another company’s lead in your quest to find the next big thing, do your homework.

Make sure that the business model, product, demographics, and goals are similar.  If they’re not, you’re simply helping someone else’s business grow by using their own tactics.

Focus on what you have to offer, and base your conversion strategies on that.

Amazon’s great, but it’s not you.

Photo credit: topmarketingsavvy.com

Danny Demichele is the chairman of Incubate.com, an eBusiness incubator that offers services to help businesses grow online. 

1 Comment