In social media, is there truth to the proverb, “seek and ye shall find?”

As our experience in new media matures, learning what it is we wish to seek and also accomplish is at the forefront of rapid evolution. Converting questions into objectives is how we grow and succeed. While the opportunities within social media in general are sweeping, one such possibility that’s largely untapped in business social networking is the ability to find customers and prospects as well as learn what inspires them to make decisions and share experiences.

Customers and those who influence their decisions take to social media to learn, discover and share. As a result, social networks such as Twitter, Facebook, LinkedIn as well as hyper-local networks including Yelp and Foursquare are evolving into potent touchpoints for customer acquisition and retention.

Social Networks in Customer Acquisition

Regus, a provider of workplace solutions with over 1,100 business centers in 85 countries, recently published a study that explored the role of social media in customer acquisition. Based on input from senior managers and business owners around the world, the study found that almost one-half of small businesses are successfully connecting with prospects through social networks. On the other side of the spectrum, only 28% of large firms reported finding new customers in social networks. Medium-sized businesses landed appropriately in the middle at 36%.

A Global Perspective

The worldwide survey also ranked countries who found success in customer acquisition in social networks. With 14 countries reporting, an average of 40% reported that social networks were indeed ripe for converting prospects into customers. At the very top of the list, 52% of businesses in India reported success followed by Mexico, Spain, The Netherlands and China with 50%, 50%, 28%, and 22% respectively. The US ranked 7th with 35%.

1. India – 52%
2. Mexico – 50%
2. Spain – 50%
3. Netherlands – 48%
4. China – 44%
5. South Africa – 43%
6. Germany – 41%
6. Australia – 41%
7. US – 35%
8. Canada – 34%
9. France – 33%
9. UK – 33%
10. Japan – 30%
11. Belgium – 27%

combination of search and focused keywords

This is Just the Beginning

Leading metrics firm, comScore, released its Q1 U.S E-Commerce Spending Report and found that Facebook and Twitter visitors spend more money online than average Internet users. And, as social networks usage increases, so does the propensity to spend online.

These numbers will only continue to grow. Everything begins with search, and for those businesses who master the art and science of transforming basic search queries into lead generation in social networks will find an entirely new landscape of opportunities.  The question is, what are you going to do about it? And once you’ve converted prospects into customers, how will social media factor into your retention and advocacy strategies?

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One of the most sought after answers in Social Media is whether or not engagement in social networks such as Twitter or Facebook directly correlates to customer acquisition, retention, and advocacy. Before we can earn customers however, we have to recognize that at any given time, there are also prospects. And, prospects require information and confidence in order to make decisions, in your favor of course. The answer to our question lies in social engagement.

Prospects are not only searching for guidance, comparisons, and experiences through Google, they are also becoming increasingly social in every step of a decision making process. If brands do not identify the various stages of choice and resolution and also the networks where they socialize and explore, opportunities will be missed.

If we’re not part of the decision making cycle, we are absent from decisions.

From Fans and Followers to Customers

In order to connect with prospects online, we must do so where they’re already active. New research reveals that doing so may have a strong effect on the decisions and activity of your customers. In February 2010, market research firm Chadwick Martin Bailey along with iModerate Research Technologies, surveyed over 1,500 individuals online as well as conducted one-on-one discussions to contextualize social media behavior.

The study found that an astounding 60% of individuals who “like” pages dedicated to brands on Facebook are more likely to recommend the brand than those unaware of the company’s presence within the network. Perhaps even more incredible, is that 79% of consumers who follow the brand on Twitter have stated that they too, would refer peers to those companies they follow.

Since actions speak louder than words, the study sought to answer the question of whether or not engagement actually leads to purchases. The answer is yes. An impressive 51% of Facebook fans and 67% of Twitter followers indicated that they are more likely to buy since connecting online. With 450 million users on Facebook and over 100 million registered users on Twitter, the potential is not only great, it’s exponential.

Social Media is a Tool for Customers and Prospects

What compels someone to fan a page on Facebook or follow a company on Twitter? The survey specifically asked the question of its panelists in relation to Facebook and Twitter and their answers may be surprising to many.

Facebook

On Facebook, existing customers topped the list with 49%. Following with 42%, consumers felt compelled to show support for the brand. In third with 40%, individuals admitted that they hoped to receive discounts and promotions.

Other stats worth mentioning, 27% and 26% of respondents stated that they would like to be among the first to know information about the brand and also to gain access to exclusive content respectively. And, 17% claimed that they were referred to the page by someone that they knew, which already demonstrates word of mouth at work.

Twitter

Twitter paints a different picture, but more so than in Facebook, consumers want access.

51% of consumers polled are already customers of the company. 44% stated that receiving discounts and promotions was the primary reason for following. 42% did so for entertainment purposes.

Gaining access to exclusive content and learning about information first with 37% and 36% respectively is also worth noting.

Whereas 17% were referred to Facebook pages, only 12% followed brands on a recommendation. However, as the number two reason for following reveals, Twitter users are ready to make a purchase based on information gleaned from their stream.

Engage or Die

Creating a presence in social networks is mandatory, but it’s also not enough. Actively and thoughtfully engaging consumers in social networks is quickly becoming an expectation. As part of the study, consumers voiced their opinions and sentiment, some of which serves as a wake-up call to businesses everywhere:

“It’s EXPECTED that a company have some digital face – whether it’s on FB or Twitter I don’t know – but they need a strong electronic presence or you doubt their relevance in today’s marketplace.” Female 50-54

“Either they are not interested in the demographic that frequents Facebook and Twitter or they are unaware of the opportunity to get more exposure in a more interactive method.” Male 35-39

“It shows they are not really with it or in tune with the new ways to communicate with customers.” Female 18-24.

“If they’re not on Facebook or Twitter, then they aren’t in touch with the ‘electronic’ people.” Female 55-59

It’s clear. Those brands that focus on prospects and customers through social engagement will open new doors that increase brand awareness and sales through word of mouth. But perhaps more importantly, businesses will also earn expanded relevance in the age of a new and powerful medium.

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In celebration of National Small Business Week…

For entrepreneurs, business owners, investors, and consultants, one of the most exciting prospects of social media, lies in the ability to dramatically amplify your visibility and value proposition among existing and potential stakeholders. Social Media finally places small, local and emerging businesses in the spotlight in ways that up until this point, were largely unattainable.

New Media is rapidly shifting the landscape of how people find and share information and much of it isn’t just moving online, it’s connecting people in ways that weave a dedicated network of prospects and advocates within networks that invite your value-added participation. As a result, once scattered customer-bases are now unifying online as concentrated contextual markets, enabling the establishment of bridges and highways between businesses and prospects and ultimately creating new opportunities in the process.

Small Business is Anything But Small

When combined, small business and social media marketing is anything but small. As eMarketer recently noted, small business is doubling adoption of social networks and there’s very good reason for that. Need proof?

The University of Maryland’s Smith School of Business along with Network Solutions recently published its third wave of the Small Business Success Index (SBSI), a study that reveals the extent to which small businesses are embracing social media. The results are staggering and serve as a harbinger of new business dynamics.

Social media adoption among U.S. small businesses doubled in the past year from 12% to 24%. And that’s just the beginning.

61% of small business owners use social media to identify and attract new customers.

75% surveyed have a company page on a social networking site.

45% expect social media to be profitable in the next 12 months.

As part of the study, 500 small business owners shared their experience and expectations of social media. As we can see, creating a presence in social networks ranks at the top of the list, but that’s only the surface. We reveal more insight with each layer we peel back. Of those, 69% are posting updates within their network of choice, with just over half of all business owners focusing on the development of dedicated online communities and also listening to customer feedback.

- 75% reported having a company page on a social network, including LinkedIn or Facebook

- 69% actively post updates on social networks

- 57% are proactively building networks within sites such as LinkedIn or Facebook

-54% monitor customer feedback within social networks

- 39% host a blog to demonstrate expertise

- 26% Tweet about areas of expertise

- 16% use Twitter as a customer service channel

Source: Mashable

Social Media serves as a platform to identify, learn, and connect with customers and prospects along with those who influence their decisions. As in anything, you get out of it what you put into it. The study also examined how small business owners rated the performance of social media tactics against expectations.

At the top of the list, 73% of business owners anticipated that social networks would improve the ability to identify and attract new customers with 61% realizing success today. Of course, visibility is instrumental in earning a position within any cycle of evaluation and decision making and as such, 56% expected to increase awareness within target markets with 52% stating that their objective was met. Engagement is the key to everything and thus, I was surprised to see the numbers for both expectation and accomplishments at only 46% for customer engagement within social networks.

Identify and attract new customers
Expectations: 73%
Accomplishments: 61%

Develop a higher awareness of your organization within your target market
Expectations: 56%
Accomplishments: 52%

Stay engaged with current customers
Expectations: 46%
Accomplishments: 46%

Collaborate more effective externally, such as with suppliers, partners, and colleagues
Expectations: 34%
Accomplishments: 35%

Collaborate more effectively internally
Expectations: 26%
Accomplishments: 21%

Other
Expectations: 12%
Accomplishments: 9%

Monetization of social media is of course, at the top of the list for all business owners. They want to know that their efforts will pay off, sometimes trumping patience and strategy. Nearly 1/2 believe that social media will make money within the next 12 months and another 53% suggest that their investment in social is already breaking even.  Surprisingly, only 9% stated that social will lose money, but 22% reported that their engagement within social networks is already paying off.

Overall, 58% believe that social media has met their expectations. And, herein lies the true opportunity. As we all think about what we know in terms of social networks, we realize that possibilities and success are practically infinite and that learning and experience are practically equalized for everyone. Those who experiment and practice become the veterans in a new medium abundant with students and starved of teachers. That’s why this is such an incredible time.

This is your time to engage and become the expert you seek. By answering our own questions, we can participate in social networks in ways that boost visibility, attract customers, and empower a team of advocates to create new business opportunities, improved customer service, and also a more valuable service offering as tuned by our stakeholders.

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Social Media is as revolutionary as it is evolutionary. It represents an important chapter in the ongoing saga and transformation of new media.

Over the years, we’ve witnessed that the 10 stages of social media integration in business are almost always set in motion by an internal champion who is determined and impassioned to engender change from the inside out. These champions emerge from different disciplines and departments and are typically role agnostic. Depending on the organization, champions exist in customer service, communications, marketing, interactive, as well as executive management. The change that these champions engender will ultimately represent a revolution in the spirit, philosophy, vision, and framework for organizations, one that increases market relevance and dramatically enhances the opportunity for affinity and fidelity.

Champions however, are the beginning of an important movement, a mainspring that needs the alignment of more formidable allies and platforms to impact the business overall.

Social Media champions are often referred to as change agents or trust agents as their dedication rouses and inspires trust within their organizations as well as within the social communities that define their landscape of influence. Monikers we haven’t yet seen to define these advocates are ones that actually reflect their next stages of growth and advancement. Inevitably all champions become politicians and ultimately diplomats in order to truly become change agents across the entire organization. The difference is that a champion represents a catalyst for defining and presenting the case for adaptation and experimentation. They either do so by acting now and apologizing later, and/or they review and curate case studies and success stories in order to earn support for an official, funded pilot program.

As experience is established and initial successes are presented, champions are then challenged by inspired believers or worse, the opportunists within the organization who realize that social media represents an opportunity for personal and professional advancement. Internal competition ensues and without formal governance or training, social media becomes a landscape that resembles corporate anarchy.

Change agents are not martyrs however, and their passion is not overthrown by the materialization of opportunists. Their fervor is only intensified as they earn and build networks of support within as well as outside through online and offline engagement. Eventually our champions realize that they must become politicians in order to stimulate and advance social media adoption across the entire company. To do so effectively and with meaningful results, it is critical that social media earns the attention, support and focus of the executives who hold the wheel for steering the current and future direction of the company.

Politicians understand that in order to reach the greater goal of the cause they so passionately believe in, they must also lobby on behalf of that cause among the policy makers and change agents that exist in key posts at every level. In doing so, a wave of validation and constituencies will rise and grow as it migrates toward the heart of the organization.

Through every experiment, success, or failure, the understanding of social media only intensifies. As such, social media programming will grow more sophisticated over time – representing a new age for social media. In many ways, the potential for social media is beyond the grasp of any one individual and as such, politicians become diplomats to introduce experiences across the organization in sensitive and effective ways.

While social experimentation starts and flourishes within one department, every outward facing group as well as those affected by inbound and surrounding influence, will need to socialize (whether it’s through engagement or simply by learning through observation, listening and research). What begins as a bottom-up movement requires a top-down directive to precipitate a formal renaissance sparked by champions, lobbied through politicians, and promoted through emissaries.

The socialization of media creates a vital, plugged-in business channel and as such, support from the C-suite is mandatory. However, many executives are not clear in how they should lead transformation and therefore require guidance from those politicians who have successfully lobbied for and earned support. As discussed in my next book, the creation of New Media Councils or Advisory Boards are imperative to the expansion of socially-aware programs and the departments and resources that can support and scale with them.

The question of who owns social media suddenly dissipates in favor of a discussion that is far more substantial and productive. It’s a collaborative process embraced by the entire organization with specific benefits defined and delivered to everyone involved, including those affected by our actions.

Over the years, I have participated in the creation of many Advisory Boards, both internal (current employees) and external (stakeholders, influencers, experts), within small businesses and Fortune 500 companies as a way of organizing efforts and resources around the vision of champions, turned politicians. This council essentially facilitates collaboration, addresses politics, secures buy-in across the organization, pools budgets, and promotes accountability.  More importantly, one of the council’s primary objectives and responsibilities is to ensure the education and advancement of employees to create an organization rife with ambassadors and advocates beyond the original group of champions. Advisors should include representatives from each division that requires a social presence, and let’s not forget legal, as well as those individuals who represent the people inside the organization as well as those who define our markets.

The path from champion to politician to diplomat is long and tumultuous, but it is however, essential to the furtherance of new media within the organization as well as to the career of those who remain diligent and sincere. While the word politician may evoke certain emotions, usually less than complimentary, the difference in goals, tactics, and objectives represents an intrinsic shift from proponent, promoter, and crusader to a new role as strategist, lobbyist, community builder, and campaigner.

Where do you see yourself in this sea of change?

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Social Media impacts every business, every brand, and in doing so, connects a network of distributed communities of influence, making the world a much smaller place in the process.  Small businesses are in fact at an advantage in Social Media Marketing as they can focus on hyper-local activity that can offer immediate rewards or at the very least, the real-time feedback or lack thereof says everything about next steps.

A recent survey conducted by Citibank offers a contrary point of view, citing small business executives who believe social networks offer no benefit or promise to expanding their business. This isn’t all that uncommon however. The truth is that without knowledge or direct experience, it’s virtually impossible to envision the potential of something where they’re most likely absent as a consumer themselves.

But, if a conversation takes place online and you’re not there to hear it, did it actually happen?

Of course it did…and it continues – with or without you.

The “I” in ROI does not stand for ignorance. It does however stand for investment and in cases where new media is “new,” it also stands for intelligence. We’re learning together and that’s both an opportunity and an impediment. We need guidance to better understand the promise and also how to reap its reward.

Ad-ology published its “Small Business Marketing Forecast 2010″ report that revealed that among the other benefits of social media, lead generation is the biggest benefit of online networking. Other benefits ranked as follows…

Keeping up with the industry

Very Beneficial: 16%
Somewhat: 29%
Not Beneficial: 55%

Monitoring what is being said about your business

Very Beneficial: 16%
Somewhat: 28%
Not Beneficial: 55%

Generating leads

Very Beneficial: 16%
Somewhat: 34%
Not Beneficial: 50%

Competitive intelligence

Very Beneficial: 14%
Somewhat: 29%
Not Beneficial: 57%

Improving customer experience

Very Beneficial: 12%
Somewhat: 29%
Not Beneficial: 59%

Resolving problems

Very Beneficial: 11%
Somewhat: 22%
Not Beneficial: 67%

Finding vendors/suppliers/partners

Very Beneficial: 10%
Somewhat: 28%
Not Beneficial: 62%

Recruiting for new employees

Very Beneficial: 8%
Somewhat: 19%
Not Beneficial: 73%

Background checks – employees, suppliers, etc.

Very Beneficial: 7%
Somewhat: 20%
Not Beneficial: 72%

Among those surveyed, Facebook appeared as the most beneficial social network. Perhaps tied the reverberation of activity across social graphs. LinkedIn, while cited less often, ranked just below Facebook, but ahead of Twitter – for now at least.

Facebook

Very Beneficial: 10%
Somewhat: 23%
Not Beneficial: 14%
Do not use: 53%

LinkedIn

Very Beneficial: 6%
Somewhat: 15%
Not Beneficial: 13%
Do not use: 67%

MySpace

Very Beneficial: 6%
Somewhat: 11%
Not Beneficial: 15%
Do not use: 68%

Twitter

Very Beneficial: 6%
Somewhat: 13%
Not Beneficial: 12%
Do not use: 69%

YouTube

Very Beneficial: 5%
Somewhat: 10%
Not Beneficial: 12%
Do not use: 73%

The study shows that education and awareness are needed among small businesses to better understand the promises, advantages and the commensurate commitments necessary to generate visibility and ultimately the activity necessary to sustain or at the very least, contribute to a lucrative and growing business.

31 percent of small businesses claimed that their primary hurdle was the perception that “our customers do not use social networks.” Equally, business owners complained that they do not have the time or resources necessary to run an effective social media marketing campaign. Sound familiar?

While yes, it’s true, small business owners must focus on the core products, services, and values of their business. However, without visibility, customers do not possess the information necessary to connect the dots between their want or need and you.

The Top 10 Ways to Monetize Real-Time Conversations in Social Media

No story is complete without providing ideas to move forward and compete for the future. By competing for the future, we also cultivate a flourishing state of “now.” One of the primary advantages of social media for small businesses is the relatively low cost associated with uncovering relevant conversations within your geographic or service area. It’s how we can identify and personally connect with customers. It’s how we learn what they’re seeking. It reveals interests and cravings.

For example, take a moment to run a real-time search activity search using Collecta to get a feel for the volume and velocity for relevant conversations online. Then, run a local search on Twitter (choose by geography) using a keyword related to your business, but not necessarily that of your business or product name. For example, Pizza, Coffee, and local yogurt shops are searching those words specifically to offer specials and free items to those within proximity to stop in and give it a try. Business owners report that while offers and freebies reflect a notable investment, they always increase clientele and business overall.

To help entrepreneurs and small business owners capitalize on the “now” or real-time conversations populating social media, Web 2.0 investor extraordinaire Ron Conway offered his vision for the top 10 ways to monetize real-time conversations.

10. Lead generation
9. Coupons
8. Analytics, analyzing the data
7. Enterprise CRM
6. Payments
5. Commerce
4. User-authentication, verifying accounts
3. Syndication of new ads
2. Advertising – Context and display ads
1. Acquiring followers

New mobile social networks such as FourSquare, Loopt, Gowalla are also emerging that connect people within local areas based on where they are and what they’re doing. These services require you to “check in” to a location or an establishment and as such, local businesses are encouraging patrons to do so by offering incentives, “check in here on FourSquare and get a free slice of pizza or a free beer.” Why? Each time someone checks in, their social graph follows the establishments they frequent and as such, brands the venue within a very trusted circle. There are also opportunities for paid sponsorships. Each time I check in to venues in Redwood City, a local wine shop and tasting room, Savvy Cellar, pops up with a “nearby special.” If I pop in and show my iPhone with the special, I receive 50% off any tasting. Brilliant.

To learn more about specific examples for increasing awareness and revenue using Social Media, please read Forbes’ piece on 21 Top Twitter Tips (Story | Through Pictures)

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