If you’re like most small businesses, you already know you should have a presence on social sites like Facebook, Twitter, LinkedIn, etc. You probably have lots of excuses, too, for why you just haven’t gotten around to setting up a social strategy; maybe you think it’s too much work, or maybe you think it’s just a fad, or maybe you think that social networking doesn’t really make a difference to your bottom line.

Well, if you’ve been waiting to see some evidence that social networking can work for your business, I’ve got good news for you (and bad news for your excuses). According to recent research reports (from Chadwick Martin Bailey and iModerate Research), social marketing is not only good for promoting and marketing your business, but it can also directly impact sales, attract new customers, and strengthen customer loyalty.

What the Research Says

In the study, 67% of consumers who follow businesses on Twitter said they are more likely to purchase from those businesses after becoming a “follower”. Similarly, 51% of people who “Like” a business on Facebook said they would become customers of the businesses they “Like”. Considering the hundreds of millions of users that these social platforms have, that’s a lot of potential customers and new sales!

Since social networking is all about sharing information, it’s no surprise that the research also found 79% of Twitter followers and 60% of Facebook fans are more likely to recommend the businesses they follow to their own networks of friends and associates. That can result in significant referrals being spread through the social networks, with the potential for further sharing and referrals as information is then shared among additional personal networks.

The Message You’re Sending to Customers

So how important is it for a small business to invest in a social networking strategy? Josh Mendelsohn, a vice president at Chadwick Martin Bailey, says “companies not actively engaging [in social networking] are missing a huge opportunity and are saying something to consumers, intentionally or unintentionally,” which further underscores the importance of creating an effective social marketing strategy for your business.

If your small business isn’t already using social networking to connect with customers, the sooner you get a strategy in place, the better. Your customers want you to be there, and frankly, they expect it. The reasons customers follow or “like” your business are varied; for instance, the study revealed that for women, receiving discounts and promotions was a top motivator (60% for Twitter users and 43% for Facebook). Men, on the other hand became followers on Twitter to be part of a like-minded community (32%), but “liked” businesses on Facebook to show others that they liked and/or supported the business (52%).

Additional reasons cited in the study included gaining access to exclusive content, being the first to know new information about a business, or resolving customer service issues. Whatever the reasons, it’s clear that having a presence on the social networks is becoming an expectation of your customers.

What’s Holding You Back?

Social networking provides your business with a huge opportunity to reach new customers and promote your business, and the data now shows that companies with a social marketing strategy are seeing increases is actual sales and new customers as a result of their social activity. So if your business still does not have a solid social marketing strategy in place, what’s holding you back?

In case you haven’t noticed, Google recently unveiled a new design for its search results pages that gives users access to some new, interesting search options. The new design may not be immediately noticeable, but when you do a search from Google’s home page, you can now see a new, left-hand column on each results page.

At the top of the column are the different Google search “engines” (like images, videos, news, etc.). The next section in the column has a link called “Show search tools”, which expands to display a variety of new Google tools for people to use when looking for information.

The new search tools let users view results by criteria such as “time” (latest results, past 24 hours, etc.), “location” (nearby results), “related searches”, “sites with images”, etc., which may ultimately have a significant affect on your business’ search engine strategy. Why? Because with each new option a user selects, a different set of Google search results is displayed, based on the option that is selected.

So now that there are multiple new Google search options, does this mean that businesses must consider which Google search option(s) they wish to rank for, then optimize specifically for that option? Maybe.

The Importance of Real-Time Search

Real-time search was added to Google only a few months ago, and is the result of social sites like Facebook and Twitter becoming a major resource for users who wanted information that is minutes-old, not days, weeks, or months-old. Now that real-time search is even more accessible to users via the left-column options (e.g., blogs, news, discussions, “time” tools, etc.), social search has become even more important for businesses striving to rank well in Google.

Social search is all about visibility, meaning you need to have a presence on the social networking sites and get people talking about and / or sharing your content. You need to get people involved with you in order to be relevant in real-time search, and real-time search has already been shown to be a real-big factor in getting to the top of Google rankings.

Where Do You Want to Rank Today?

If you want to increase quality traffic from Google, it makes sense to optimize your pages for coverage in the search option categories that matter most to your business. For instance, if you operate a storefront in your town, you may want to show up in the local search (and “nearby”) results. Or, if you’re offering a time-sensitive discount or have tied a promotion to an event, then you may want to be included in the “time” results for past 24 hours or past week.

Know Your Audience!

The key to ranking well in Google – regardless of the search option category being used – is to find the right keyword phrases to use in optimizing your site. Do some actual research, don’t just guess! If you don’t know how to research and find relevant keywords, then hire a professional to help you. You must know what people are actually typing into that search box, or your efforts will do little to drive targeted traffic to your site or deliver new customers and leads. The more you know about the keywords your target market uses to find products and services like yours, the more you will know exactly where you need to focus your efforts in Google.

Hurry Up and Wait

Although Google’s new search tools are a fairly new development, experts are already weighing in with their opinions on how (or if) these new search options will have an impact on a business’ SEO strategy. The early consensus seems to be that yes, the new options will have an effect to some degree, but it’s probably too soon to know to what extent.

In the meantime, the best strategy is to keep your site updated with fresh, relevant content, create a strong presence on the social networking sites, build new inbound links, select targeted keyword phrases, and optimize your site using standard, white-hat practices that will help your web site be read and indexed by the search engine spiders. Then sit back and watch the results unfold over the next several months to see if the new Google search options indeed affect your SEO.

What is the Value Proposition, or “value prop”, of your small business? Can you clearly explain the unique core differentiator that makes you stand out from the crowd?

Your value prop is basically the special attributes of your business that make it superior to your competitors; it’s the reason your customers ultimately decide to purchase products or services from you, instead of buying from your competitors.

But even if you can clearly identify your business’ value prop – does it provide actual value to your customers?

Mirror, Mirror, on the Wall

Telling potential customers about your great customer service or how long you have been in business does nothing to truly differentiate you from your competitors. Also, describing the features of your products or services doesn’t help a prospective customer understand what makes you a better choice than the guys down the street. Instead, you must be able to show your customers why your business is the clear winner, and what value you can provide, to give them a compelling reason to buy from you.

In a recent survey from the Marketing Leadership Council, 9,000 business-to-business (B2B) decision-makers were asked if the “unique benefits” that companies use to describe themselves were actually unique. 86% of respondents said they were not, and that these “unique benefits” did not have enough impact to create a preference or differentiate one business from another.

So in considering the value prop for your small business, here are some ideas to help you identify what distinguishes you from everyone else, and help you make sure there is obvious value in your value prop!

1. Get Some Perspective

Typically, small businesses are so familiar with their own products and services that they tend to overestimate their uniqueness. Be sure that you identify the benefits of your products and services from your customers’ perspective. Customers want to hear about how you can solve their business problems or make their jobs easier. They want to hear that you can help them do something better tomorrow than how they do it today. Identify what is truly unique about your business from your customers’ point of view, and put your focus on that.

2. Find the Gap Between Pain and Gain

First, make sure you understand your customers’ biggest business problems, then look at how much better things would be for them if they implemented your solutions. The gap between that “pain” and “gain” is where you can provide real value to your customers. Even when consumers have all the rational facts, their decision to buy is based on emotion. They need to feel that buying from you will lead to more success and improve their situation, so make sure you can show them that you are the right choice to do that. Make your benefits so obvious that it’s easy for them to envision themselves “pain free”.

3. Say It Effectively

Once you have clearly identified the real value that you provide to customers, you must be able to express that value effectively in your marketing materials, in your advertising campaigns, and when you (and your staff) speak with customers and potential customers. If you can clearly show customers what makes your business a better choice and how you are different from the competition, you provide them with a convincing reason to buy from you.

Of course, it’s difficult at best to persuade a customer of your value prop if you don’t have a solid reputation, professional image, and existing business credibility in the first place. Make sure your marketing is consistent in both branding and message, and be certain that your web site and social marketing platforms are an accurate reflection of your professionalism as well. A great value prop will not resonate with customers if your web site is outdated or your social marketing platforms are amateurish or incomplete. Make sure the way in which you present your business to the outside world matches what you say in your value prop, so your message is consistent and credible.

The last seminar stop on the Social Networking Tour was at the Shiawassee Chamber, located in Owosso Michigan.  The Chamber staff was extremely friendly, and Chamber Vice President Sue Kadlek greeted us the minute we pulled up in the mobile office!  Finding parking for a 30-foot RV (our mobile office) can be challenging, but Sue saved us a BIG spot right in front of the Chamber’s front door!

This group of attendees was very focused during the seminar, although not many of them were using social networking yet to market their businesses.  At times the information was probably a little overwhelming, but they asked great questions and were especially interested in all the free tools we were telling them about.  The tools and web sites we present as part of the Social Networking for Business seminar are ALL free, which is sometimes hard for people to believe.  But that’s one of the traits that makes social marketing so powerful – it can be extremely low cost to use, especially if the platforms are set up correctly and integrated appropriately!

As we always do at the end of each seminar, we asked questions of the attendees and the first ones to shout out a correct answer got “Tour Swag” – an official 2010 Social Networking Tour t-shirt with the map of our Tour on the back!  But to our surprise, Sue presented us with “Chamber Swag” – some very cool items branded with the Shiawassee Chamber’s info!  Don and I each got a cool little paperweight, and an awesome ”post-its kit” with sticky notes of various sizes and colors.  Now that was a first!

Help us celebrate the end of the Five Sparrows Social Networking Tour TOMORROW!!!!

Social Tour Tweetup : May 27, 2010

All good things must come to an end – and as our social tour draws to a close, we decided to end the tour in style! Join us for the Social Tour Tweetup on Thursday at 59 West in Highland, Michigan.

Social Tour Tweetup May 27, 7:00pm 59 West in Highland, MI

We’ll be bringing the Five Sparrows mobile office, and will be wearing our Social Tour T-Shirts!

If you won a shirt on the tour, be sure to wear it to the Tweetup and Five Sparrows will buy you a beer! (If, of course, you are a beer drinker and of legal age… otherwise we’d be thrilled to buy you a soft drink of your choice!)

Stop by for networking, pool and air hockey, great food, and lots of fun! You’ll be able to enter to win even more Tour Swag, as well.

Need directions? Click Here for a map and directions to 59 West.