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Thursday 29 July 2010

Everybody's talking; why your business can't ignore social media.

Perhaps you remember when you first heard about Facebook and Twitter. Maybe you were one of the people who thought they'd misunderstood when these sites were described to them: "what's all the fuss about..?". You might even have tried Twitter and abandoned it after a few 'tweets' finding it every bit as lame as it sounded when it was described to you.

You would then have been further perplexed when you started to hear people saying how important Facebook and Twitter (and numerous other social sites) were to your business. Did you sit and look at that flyer from Business Link inviting you to a workshop on how social media could benefit you, and wonder just what it was that you'd missed?

Now, I'm not saying they can't or won't benefit you - as it happens, we use both at Meantime - but this blog is not an attempt to convince you of the merits of social media or otherwise. What I do want to write about is the broader phenomenon of social media and what it might mean for your business.

First of all, let me give you a couple of examples of the type of impact I want to talk about. The first one came about last year when a protestor died at the G20 protest in London. At first the police denied that they had anything to do with it, stating this as fact at a news conference. The truth might have come out if enough eye-witnesses had managed to convince a newspaper to run the story and one might have believed it or not depending on one's opinion of the police. However, in this case, footage and first person narrative of the event was promptly posted on websites and picked up by news broadcasters and the police had to confirm that the man had, in fact, been attacked, unprovoked, from behind by an officer.

The second example comes from earlier this week when Wikileaks posted the Afghan war logs. Regardless of the ethics of this action, the bottom line was that once that information was in the public domain, with even a single member of the public, it could be immediately broadcast to the wider population. Whilst one can be impressed with how President Obama rolled with the horrible revelations contained in the logs, the key point here is that he did not try to refute what was published.

So, how do these stories relate to your business, assuming that you are not running either a security firm or a war overseas?

The point I want to make is that the publication of opinion and information is now unfettered to an extent that was unimaginable even ten years ago. Most of you will have used Amazon and seen the review system used there. Some reviews - particularly those for music and books - are obviously partisan and no more than opinion but when you look at product reviews, it becomes a bit more serious. It was one the birthday of one of my daughters recently and she wanted some toys from the Little Cooks range. The reviews on Amazon across a range of their products quickly highlighted the fact that no matter how good they looked on TV, the build quality was poor and they were not a good present.

There are now independent sites - such as the dreadfully named Revoo - that specialise solely in independent reviews, and consumers are becoming more and more sophisticated in analysing and interpreting the reviews, good and bad. A simple example of this would be when I bought some headphones recently. The pair I fancied had over a hundred reviews, the majority of which were very positive. As one does, I read a higher proportion of the bad reviews and satisfied myself that those reviewers had either been unlucky or had unrealistic expectations. So, I bought the headphones.

I think that in the near future we will see similar sites that are based around services, as well as products.

So, what does this mean for your business? Two things, I think. Firstly, there's no point in trying to deny a problem with your product. Apple have kindly illustrated this point for me over the last few weeks with the issues arising with the aerials on the iPhone 4. No amount of denial is going to convince potential customers, who can see reviews and comment from any number of sources that are presenting the actual facts.

The second, more subtle issue, is germane to those who provide services. The issue here is not around people reviewing a product but instead talking about how you do business and what results you achieve. It doesn't matter how good your staff are, how good your planning is and how good your track record; you will have projects from time to time that simply seem to be jinxed. In the past, one might have been pleased to simply get the project completed and the client out of the door and focus on your successes but those days are fast disappearing. Now it is even more important to understand why a project hasn't gone according to plan and to make sure your client understands that, too. You can't simply rely on the good news that is out there about your company already; beware the old adage that bad news travels ten times as fast as good.

In conclusion then, whether you sell a product or a service, the good opinion of your customers and clients is no longer something that it would be nice to have, a secondary consideration: it is now core to your sales and success. More than ever, it is important to have happy clients because, in this age of Facebook and Twitter, everybody is talking.

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