Kensingt<strong>on</strong>, Md., is that traditi<strong>on</strong>al media is a pushformat in which <strong>the</strong> organizati<strong>on</strong> or <strong>com</strong>panypushes its brand, its message, its informati<strong>on</strong> to<strong>the</strong> customer. Now it be<strong>com</strong>es a c<strong>on</strong>versati<strong>on</strong> or atwo-way push/pull. As a result, <strong>the</strong> <strong>com</strong>pany isn’treally c<strong>on</strong>trolling <strong>the</strong> message any more. “One of<strong>the</strong> first things I say, which usually makes <strong>the</strong> vicepresident of <strong>com</strong>municati<strong>on</strong>s squirm, is that ‘Thereis no more c<strong>on</strong>trolling your brand. Those days areover. You can manage it, but you can’t c<strong>on</strong>trol it,’”says DeLouise.The whole social media phenomen<strong>on</strong> is provingto be a much more efficient way of doing business,according to Katie Paine, CEO, Katie PaineHome Profile Find People Settings Help Sign OutIf you can carry <strong>on</strong> a c<strong>on</strong>versati<strong>on</strong> at a cocktailparty, you can participate in Facebook and Twitter.new media. However, while B2B <strong>com</strong>panies arebehind, <strong>the</strong>y are not necessarily light years behind,says Corcoran.The argument is also that <strong>the</strong> B2B sector hasalways lagged behind c<strong>on</strong>sumer packaged goodsbecause c<strong>on</strong>sumer goods move fast. It’s mucheasier to do research <strong>on</strong> c<strong>on</strong>sumer goods becauseof <strong>the</strong> large investment in research, says Paine.Some corporati<strong>on</strong>s can spend billi<strong>on</strong>s of dollars <strong>on</strong>marketing research, while few B2B <strong>com</strong>panies arespending as much.With business-to-business, you’re also talkingabout more of an instituti<strong>on</strong>-to-instituti<strong>on</strong> relati<strong>on</strong>ship,says DeLouise, with many forgetting that <strong>the</strong>reare people behind those instituti<strong>on</strong>s.“We’re quickly moving pastthat,” she says. “In a lot of ways,what’s happening here mimicswhat occurred with e-mail.When e-mail first came out, manythought it was just a waste of time.Now you can’t imagine runningyour business without it. So whilemany may be late to adopt socialmedia, so<strong>on</strong>er or later <strong>the</strong>y willget into <strong>the</strong> swing.”about 1 hour ago from webkatp010—Katie Paine, Katie Paine & Partners LLC& Partners LLC, Berlin, N.H. “It’s not really media,but a whole new different way of doing businessthat’s catching <strong>on</strong> am<strong>on</strong>g c<strong>on</strong>sumers. I start out myspeeches by asking how many people in <strong>the</strong> audienceare <strong>on</strong> Twitter. Recently, for <strong>the</strong> first time 100percent of <strong>the</strong> people acknowledged <strong>the</strong>y were<strong>on</strong> Twitter. Just over six m<strong>on</strong>ths ago, an averageof three or four out of two dozen would raise <strong>the</strong>irhands.”B2B Lags BehindExamining <strong>the</strong> main differences between B2B andB2C can explain many of <strong>the</strong> reas<strong>on</strong>s why <strong>the</strong>business-to-business sector is somewhat behindbusiness-to-c<strong>on</strong>sumer when it <strong>com</strong>es to embracingsocial media, says Close. B2C is a lot morepers<strong>on</strong>al. There’s more of an emoti<strong>on</strong>ally-chargedfeeling behind purchases as opposed to buying foran organizati<strong>on</strong> where reas<strong>on</strong> supersedes emoti<strong>on</strong>.On <strong>the</strong> o<strong>the</strong>r hand, c<strong>on</strong>sumer advertising tendsto have more m<strong>on</strong>ey and more resources, saysCorcoran, making it easier for advertisers to testExplore <strong>the</strong> BenefitsOne of <strong>the</strong> most important benefitsof social media is that it’sa relatively inexpensive form ofmarketing <strong>com</strong>pared to traditi<strong>on</strong>altechniques, according toOckrim. It’s a great way to bein touch with customers withouthaving to spend a lot of m<strong>on</strong>ey.Through Facebook, you’repopping up <strong>on</strong> <strong>the</strong>ir screensdaily, whereas you w<strong>on</strong>’t get thatmany client touches mailing outa quarterly flyer, he says.Unlike <strong>the</strong> need to allocate a good porti<strong>on</strong>of your budget for Web site development as inyears past, social media are free and simple, saysMcManus. “It takes a little time but it enables youto create some great opportunities.” By learningwhat’s <strong>on</strong> your customers’ minds and what’s importantto <strong>the</strong>m, says Paine, you basically be<strong>com</strong>e abetter, smarter <strong>com</strong>pany. You can lower your costof doing business because developments happenfaster when you hear directly from your customers.A great example is found in Best Buy’s story ofdramatically lowering its cost of employee recruitmentand training by lowering its turnover rateusing social media, according to Paine. “The <strong>com</strong>panyhad many frustrated customers who weren’tgetting answers to <strong>the</strong>ir questi<strong>on</strong>s, and many frustratedemployees who didn’t have <strong>the</strong> answers. Bysetting up an internal social networking <strong>com</strong>munity,<strong>the</strong> <strong>com</strong>pany was easily able to share answers tocustomer questi<strong>on</strong>s am<strong>on</strong>g its employees. As aresult, <strong>the</strong> customers were happy, <strong>the</strong> employees18 November/December 2009
Social media are arelatively inexpensiveform of marketing<strong>com</strong>pared to traditi<strong>on</strong>altechniques.—Mike Ockrim,Chicago School Supply LLCwere no l<strong>on</strong>ger frustrated, and <strong>the</strong>ir turnover ratewas reduced.”“The new media bring customer service andcustomer relati<strong>on</strong>ship management fr<strong>on</strong>t andcenter—even before advertising,” says Corcoran.“It ultimately <strong>com</strong>es down to understanding thatyou never had c<strong>on</strong>trol of your brand, nor do youhave it now. But <strong>the</strong> <strong>on</strong>ly way to have a real impact<strong>on</strong> it is to get involved in what’s being said about itthrough social networking.”Where to StartAvoid <strong>the</strong> problem of going into social media withouta sound strategy, advises DeLouise. “I believeorganizati<strong>on</strong>s that are most successful in newmedia set out some very specific goals.” Are <strong>the</strong>ylooking to attract new customers? Do <strong>the</strong>y want away to resp<strong>on</strong>d to customer c<strong>on</strong>cerns? Is crisismanagement something <strong>the</strong>y’d like to c<strong>on</strong>trolbetter?“We have a methodology that we’ve developedcalled POST,” says Corcoran. “It prohibits businessesfrom jumping into tactics and technologies withouta strategy. The four steps of <strong>the</strong> acr<strong>on</strong>ym beginwith PEOPLE. First understand what your customersare doing. What types of social media are<strong>the</strong>y c<strong>on</strong>suming? What would work for <strong>the</strong>m? Thesec<strong>on</strong>d step addresses OBJECTIVES. What do youreally want to do with social media? Do you wantto talk to people or just listen? Next is STRATEGY.In what way do you want to go about listening ortalking and for what reas<strong>on</strong>s? Last <strong>com</strong>es TOOLS.If you’re interested in talking, you’ll want to set upa Facebook profile, a Twitter account, or a blog,followed by a discussi<strong>on</strong> of determining <strong>the</strong> toolsyou’d use to ac<strong>com</strong>plish your goals.What Lies Ahead?Many experts are united in believing that this isjust <strong>the</strong> infancy of <strong>the</strong> social media and social networkingphenomena, which have <strong>the</strong> potential ofbe<strong>com</strong>ing <strong>the</strong> dominant marketing method of <strong>the</strong>future. “If I were a traditi<strong>on</strong>al advertiser, I would beafraid,” says Close. “I definitely believe that socialOFF CEL NE19