Daily News Monday, June 02, 2008

Facebook's for the kids, right?

By: Emma Warrillow, Emma Warrillow & Associates Inc.

Facebook is just for kids, right? The rest of us don't need to understand it? Or do we? The advent of Web 2.0 has made collaboration and information sharing between Web users commonplace. Social networks – like mySpace, Facebook, Flickr and LinkedIn - proliferate on the Internet.

But what if you don't want to look up old friends from high-school (the ones you never bothered to keep in touch with anyway) or share your photos with family? What's in it for you? Why should you care?

The phenomenon of social networking is something we and our businesses cannot afford to ignore. Large businesses and small will benefit from understanding this trend and learning what is being said on these networks. Social media can provide a mechanism for advertising, promoting word-of mouth, for capturing customer complaints and reducing servicing costs.

Low-cost advertising for small businesses

I recently attended a conference where I heard speakers from Facebook and LinkedIn (where individuals post their professional rather than personal profiles) weigh in. They gave examples of small and medium businesses having great success leveraging these tools to create a business presence.

One speaker told the story of Port restaurant in Pickering, Ontario and their Facebook profile (http://www.facebook.com/pages/Pickering-ON/PORT/7680605835 ). The profile was originally created by its owners to keep friends and family updated on their progress as they planned their new venture; the restaurant had "fans" before it ever even opened its doors. Despite begin open only a few weeks, the owners claim that their Facebook site has generated significant interest – diners have cited Facebook as how they heard about the restaurant and reservations are frequently made on a number that is listed only on the site.

And just today I received notification of a sale at a favorite neighborhood retailer from a friend on Facebook; these sites make recommendations easy to make – what could be better for a small business than facilitating referrals from its customers? Some social networking sites such as Gigpark and Homestars are designed completely to enable word-of-mouth recommendations.

Eavesdropping on customers

Businesses of all sizes can also leverage what is being said online – by listening in. Public forums on the Internet are frequently where individuals share the experiences – both good and bad- that they've had with companies.

News travels fast online and it is practically impossible to police your brand image and control what's said. Just ask Barbra Streisand. In 2003, Streisand attempted to sue photographer Kenneth Adelman, after he published a photographic survey of the California coastline that included images of her home. Unfortunately, rather than protecting her privacy, the law suit brought the image to many peoples' attention and it was quickly spread around the Web. Now you can see her home and its exact location at any number of places online (http://www.californiacoastline.org/cgi-bin/image.cgi?image=3850&mode=sequential&flags=0)

Listening to what is being said about your brand, your competitors and the industry can also provide valuable insight. Brands have successfully exploited a competitive advantage by listening to complaints being made about their competitors and using them as points of differentiation.

Your response to complaints online can have considerable impact on your image. Some time ago, a Bell Aliant customer (Katie the Grumpy Canadian) posted a video on YouTube talking about a terrible customer service experience. Word spread and the video was shared.

Apparently, Bell Aliant was listening. They emailed her shortly after her video was posted; using her nickname and the email address used on Facebook. Their quick response made her feel important. Not only did they resolve that customer's issue but she, in turn, posted a new video praising them - http://www.youtube.com/watch?v=xX24hmZodfc. As of today, over 600 people had watched her positive message.

Helping people help each other

Finally, companies can facilitate conversations online. Many businesses have built their own social networking sites which enable customers to talk to one another and provide value to their target audience.

I recently had an issue with a new Blackberry I'd purchased and its synchronization with my Dell laptop. Rather than making tech support calls to both companies (where I'd likely have been told it was the other's problem anyway), a quick Google search turned up the answer on Blackberry forums where another user had answered this question. The cost savings to these companies can be huge – and more importantly, as a customer, I got the answer I needed immediately.

In summary, the phenomenon of social networking is something companies would be wise not to ignore. So sit down with your kids, and learn what it is all about!

Emma Warrillow, runs Emma Warrillow & Associates Inc. (www.emmawarrillow.com) a Toronto-based consultancy that helps companies build data-driven marketing strategies and make the most of their customer data. She can be reached at emma@emmawarrillow.com

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