Customer Service Thoughts for the Holidays

We are entering the busiest retail time of the year. A large percentage of all retail sales take place between Thanksgiving and New Years. With that in mind, I found what I believe is some useful information that might help you with your business:

Happy Thanksgiving to all our faithful readers! And Thank You for following us every week as we share information that we hope you find of interest.

This week, due to reader request, we are rerunning an Agurban from late last year. The message is as fitting today as it was a year ago.

Holiday Marketing Tips for Businesses
by Scott Taddiken
Washburn Small Business Development Center

That's right - it's that time of year again! I'm amazed every season how many creative and wonderful marketing strategies business owners use during this season, and having spoken recently on the topic, I thought I'd share a few ideas I've come across.

1. Don't overlook any potential markets - Gifts are huge, but decorations, candy and food, flowers (poinsettias and others) greeting cards and postage, etc. are also big. These categories make up to 25% of Christmas spending!

2. Black Friday is big, but it isn't everything - Traffic is extremely high on the day following Thanksgiving and some say up to 25% of shoppers will start at 5 a.m. However, Black Friday isn't always the biggest spending day - for brick and mortar businesses, the last two weekends prior to Christmas may be the biggest.

Many people are looking for good deals and a place to have fun. Black Friday shopping is something fun to do with family and friends.

While many people get out to shop on Black Friday, stores must have a plan to bring them back in to buy.

3. People are shopping online - Online purchases tend to increase as the season progresses (people have checked out store specials and done comparison shopping)

Monday, Tuesday and Wednesday are often good online - people shop in stores over the weekend and then shop online at the beginning of the week. This means retailers must close the sale on the weekend while shoppers are in their stores.

4. Spending the week after Christmas and into January continues to increase! - Find a way to bring these shoppers back into your stores. Hand out "good for ___% off your next purchase" coupons to holiday shoppers. Offer surprises with a future purchase and make sure to promote your after Christmas and January sales.

5. When they are buying from you, be sure to "Bundle 'em up"! - Create gift packages (corporate gifts, related products, etc.) Remember people are four times more likely to buy something they can touch, so have items available.

Ask your vendors for displays or use displays that suggest a product's use or someone else's enjoyment in receiving a product.

6. Gift Cards - Did you know that 56% of people spend more than is on the card? So make sure all shoppers know you offer gift cards as a great gift idea.

Gift cards are also a great addition to any purchase (buy $25 for $20).

Another benefit of gift cards is that they expose new people to your business - great advertising!

And remember, some gift cards never get used.

Above all be positive, cheery and enjoy the season - your customers will notice!

The 3/50 Project

I received this in an email today. I saw if first several months ago and find it as interesting today as I did the first time around. We are defined by the choices we make and every purchase is a choice. We can support our local businesses and they will thrive, we can ignore them and they will disappear. Please take a moment and read the info below. If you are intersted, get in touch and lets discuss how we can make a difference with and for locally owned businesses:

The 3/50 Project

We received a great email this week from Frankie Gilliam, CEcD and Community and Economic Development Specialist at ASU Delta Center for Economic Development in Jonesboro, Arkansas, introducing us to Cinda Baxter and the 3/50 Project movement. Below are the key points of The 3/50 Project, as outlined on their home page.

3 - What three independently owned businesses would you miss if they disappeared? Stop in. Say hello. Pick up something that brings a smile. Your purchases are what keeps those businesses around.

50 - If half the employed population spent $50 each month in locally owned businesses, it would generate more than $42.6 billion in revenue. Imagine the positive impact if ¾ of the employed population did that.

68 - For every $100 spent in locally owned independent stores, $68 returns to the community through taxes, payroll, and other expenditures. If you spend that in a national chain, only $43 stays local. Spend it online and nothing comes home.

1 - The number of people it takes to start the trend - you!



As you know, we have been long time proponents of supporting your local businesses. What a great idea that Cinda has put together! I encourage each of you to Pick 3 and Spend 50, to Save your local economy. Thank you, Frankie, for bringing this to our attention!

So you want to start your own business, do you...

Much of my effort as an economic developer in Stokes County is spent in an effort to assist local businesses and to work with those that wish, for many reasons to start their own business. Many of them feel pressured into this because they have lost a job due to downsizing or they feel the pinch of stagnant incomes and rising prices. Whatever the reason might be, I would suggest they take a few moments and read the comments posted below. If after reading this and taking the time to really consider what Mr. Walton has to say please get in touch with my office and lets make sure you have the tools to start you own your way:



Entrepreneurship

How Badly Do You Want Success?
Are you fully committed?

By Jim Walton
CEO, Brand Acceleration, Inc.
Indianapolis and Charlotte

I recently had lunch with a young man who wanted advice about starting a business. He’s a very talented individual with a great work ethic. He has a job working for someone else but his long-time dream is to be self employed. Many have that same dream but few really understand what goes into starting and growing a business.

As a business owner, I am often approached for such advice. I’ve started, stopped, bought, and sold several companies. I’ve been self employed nearly half my career. I guess you could call me a habitual entrepreneur. It’s just in my blood and I love the process of creating and growing a business. I’ve made many mistakes and learned countless lessons along the way.

For the sake of clarity, when I talk about self employment, I am not referring to freelancing or projects taken on to fill a financial void while searching for a job. I’m talking about a real company – full-time self employment.

Today’s challenging economy has spat a large number of very talented people onto the job market and many have considered self employment as the next step in the career path. Before starting a business, there are several questions that must be answered. Only by clearly understanding where you stand on each should you move into the world of self employment.

Why do you want to be self employed?
People start companies for several reasons but the most common is the need for a job. Big mistake! Most new companies require at least 1 ½ to 2 years to become self-sustaining. If all the owner desires is a job, he or she had better have the patience, hustle, and resources to ride out this crucial startup period.

How far are you willing to bend?
There will be times, whether you’re self employed or work for someone else, when you will have to work with people you simply don’t like. As a business owner, you have the ability to decide which employees, vendors, and clients to allow into your circle.

We once had a series of meetings with a construction industry supply company which had expressed an interest in signing Brand Acceleration as its marketing communications agency. The discussions went well until the third meeting. As is often the case, when you allow someone to speak long enough, their true personality will eventually be revealed. At that point in time, the company owner/president became belligerent, not only with us but with virtually every one of his staffers. Now, we’ve worked with difficult people before but this guy was rude, condescending, and just downright abusive to every person in the room.

When I started Brand Acceleration, I vowed to myself that I would not work with any person I didn’t like, nor would I ask anyone on my team to work with such a person. At the end of that meeting, I politely declined the business, telling the owner that it just didn’t appear to be a good fit for us. As a business owner, you need to know how far you’re willing to be pushed, even if you desperately need the business.

Are you up to managing the details?
Companies often fail because they outgrow the ability of the owner to manage the details of running a business. For example, many restaurants are started by people who consider themselves great cooks, just to die because the owner is overwhelmed by the minutia of running a business. Staffing, accounting, taxes, insurance, leasing, equipment, and other details are more than some people can handle. At some point in time, it stops being fun and the business shuts down. If you’re not up to the daily grind of business ownership, don’t jump in. You’ll regret it.




Have a passion for excellence
As a business grows, the owner needs to remain committed to providing excellent products and/or service. You must be able to do this while managing the details and growing the company. The moment you turn your back on your clients and begin cutting corners, you’re doomed to fail.

Surround yourself with great people
Over the years, my most trusted mentors, some former employers, taught me to surround myself with great people and then get out of their way. This applies not only to employees but also to suppliers and vendors. I’ve found that they make me and my company look great by providing excellent deliverables to our clients. It’s also important to swiftly remove underperformers. Regardless of how great the team is, your customers will remember the poor service resulting from the actions of the one person who dropped the ball. As the business owner, you must build, monitor, and make changes in order to protect your company brand.

Always offer and demand loyalty
The glue that holds the Brand Acceleration team together is the loyalty and caring that we share for one another. Our clients, employees, and vendors are our friends, too. We care for one another and function much as a family.

How badly do you want success?
One of the biggest things that budding business owners fail to consider is the amount of work they’ll have to do. The idea that self employment means you won’t have to work as hard is pure fantasy. You’ll work harder than you’ve ever worked in your life. As a business owner, you can forget the concept of a 40-hour work week. Sixty or eighty hours may be more realistic, especially during the startup phase. You’re going to live and breathe that business during your every waking moment.

I recently saw a YouTube video of Mr. Eric Thomas, Advantage Director at Michigan State University. In his Secrets of Success video series, he asks the question, “How bad do you want your dream?” In it, he dramatically demonstrates the importance of the passion, desire, and commitment required to succeed at anything, including self employment. This is one of several of his speeches on YouTube. Click the picture to view his YouTube video.

To my young friend, here’s what I said: If, after considering these very serious questions, you still have a burning desire to start your own company, then you may just have what it takes to succeed. Develop a well written business plan, establish a team of advisors, get your financing together, and then go for it. I wish you much success and personal satisfaction

21st Century Program and Economic Gardening

We had our "kickoff" for our 21st Century Program this week. This included a reception Tuesday evening and interviews with 30 local citizens on Wednesday. This process went on for the entire day and the I can't begin to tell you how proud I am of our participants. We were 30 for 30 with everyone being here for thier interviews and taking time from their busy day to help Stokes County move forward. Mark Roberts and the NC Dept. of Commerce team left here with reams of information and a giant task ahead: to assimilate all the information, then help us understand where we are and where we need to be. This is a big step for our community.

If my thougts and our efforts over the past 2 years are on track, we are going to be most effective with a program of internal development and entrepreneurial growth. A process called "Economic Gardening". It is summed up in detail in the article shown below. I hope you take a few minutes an review this information. I believe it is the best hope for rurual communities to be competitive in the future. We will find out in a few weeks if the 30 people that were interviewed on Wednesday agree with me!

Seven Steps to Developing an Economic Gardening Implementation Strategy

16 September 2010
Economic gardening is an entrepreneurial approach to economic development that seeks to grow the local economy from within. Here are the seven steps to developing an implementation strategy for your economic gardening program to succeed.

This article is an excerpt from the InFocus issue, Strengthen Your Local Economy through Economic Gardening, by Christine Hamilton-Pennell, published by ICMA.

Economic gardening is an entrepreneurial approach to economic development that seeks to grow the local economy from within. Its premise is that local entrepreneurs create the companies that bring new wealth and economic growth to a region in the form of jobs, increased revenues, and a vibrant local business sector. Economic gardening seeks to focus on growing and nurturing local businesses rather than hunting for “big game” outside the area.

Preparing a strategy for an economic gardening program can be complicated—there are many elements that must be developed first, taking into consideration unique community needs and available resources. Here are the seven steps to developing an implementation strategy for your economic gardening program to succeed.

1. Gain the support of local officials and other stakeholders

Governing bodies generally do not like to be handed a program and asked to vote on it. It takes time and effort to develop the support of elected officials for an economic gardening approach. The first step is to sit down with each official and other key stakeholders and listen to their concerns about economic development. Inadvertently or deliberately excluding a key stakeholder or someone on the governing board from providing input or participating in the decision-making process can lead to opposition and future undermining of your efforts.

2. Identify your community’s assets

Develop an inventory of community and business assets available to you. Ask yourself these questions:

■What human capital exists in my community? Human capital refers to “the unique capabilities and expertise of individuals that are productive in some economic context,” generally linked to formal education and experience.
■What skills and expertise can we tap into?
■What organizations can we partner with?
■What systems and organizations already exist to support entrepreneurs?
■Who is already motivated and passionate to make something happen?
■What cultural, recreational and other quality-of-life amenities do we have?
■What assets can we leverage outside our community?
Your list of assets should include the usual suspects such as economic development organizations, chambers of commerce, small business development centers (SBDCs), SCORE, workforce centers, universities and community colleges, financial institutions, and civic and social groups such as Rotary and Kiwanis. Other groups and individuals that can also provide value to your community efforts include:

■Public and university libraries
■Professional business associations and groups
■Community foundations and loan funds
■Microfinance organizations
■Elected and appointed officials
■Utility companies
■Successful entrepreneurs
■Council of governments
■Arts and cultural entities
■Consultants
■Policymakers
■Healthcare agencies
■Tourism offices
■Immigrant and citizenship initiatives
■Continuing education and training programs
■And more
Look for individuals in your community who have skills and expertise in areas such as business coaching and mentoring, finance, employment/workforce development, research, marketing, meeting facilitation, organizing/managing projects, public speaking, legal support, and fundraising.

Perhaps the most important assets you can identify in your community are individuals who can become champions and advocates for your economic gardening project. They might be successful entrepreneurs who want to give back to their community or individuals within any of the groups or organizations listed above.



3. Develop a collaborative effort among resource partners

Once you have identified the assets in your community, explore which entities and individuals are likely to become resource partners in moving your economic gardening venture forward. Set up a steering committee that can guide and implement the project.

Bring key resource partners together to reach common agreement on goals and directions for the project, as well as to identify who will take responsibility to carry out each piece. If key resource partners are not willing to take ownership of the project, then your community may not be ready to launch an economic gardening project. You may have to step back and address the political and community development issues that are driving your locality.

4. Create a system-wide operating agreement

Because an economic gardening project generally involves multiple entities, it is important for the steering committee to develop a formal or informal operating agreement that addresses key operational and long-term planning issues. Questions that must be addressed include:

■Which entity or group will make program-level decisions?
■How will the program be funded?
■Who will serve as fiscal agent?
■Who will oversee and coordinate delivery of services?
■What role will each partner fulfill in the overall project?
■What resources will each partner contribute to the effort?
■How will the program be tracked and evaluated?
■How will a sustainable capitalization plan be developed?
5. Determine the target audience for services

One of the most important questions an economic gardening project needs to answer is, “Who will we serve?” Economic gardening programs around the United States take a variety of approaches, depending on their identified goals and community expectations. Some programs support all types of small businesses; others work only with growth-oriented companies. The important thing is to know which group of businesses you are targeting and why.

The first step in determining your target audience(s) is to inventory the available entrepreneurial talent in your community. What kinds of businesses are located there? What is their level of growth or maturity? Small local businesses generally fall into three categories: start-ups, lifestyle businesses (local consumer-based ventures), and growth businesses (offering goods and services to external markets).

A template for the entrepreneurial talent assessment process is offered by the Center for Rural Entrepreneurship (energizingentrepreneurs.org/index.php).

According to existing research, growth-oriented companies produce the greatest economic impact on a region, because they bring money into the community from outside markets. Many of these are so-called Stage 2 businesses, those that have between 10 and 99 employees and at least $1 million in revenues, although growth-oriented ventures can be found across the entire universe of companies. Growth companies also tend to be relatively young (less than five years old). They can range from companies with a local market that want to expand and reach external markets (often through e-commerce) to companies that have specialized expertise or knowledge and primarily sell to external markets.

Rapidly expanding, high-growth companies, sometimes referred to as gazelles, are a rarity in many communities, making up only 3 to 5 percent of all businesses. Most small localities do not have the technical resources to support the needs of high-growth businesses. These companies typically have the connections and technical assistance they need to grow, and they will do it with or without an economic gardening program.

Stage 1 companies—those with one to nine employees and less than $1 million per year in revenues—are by far the largest group of businesses in the United States. They collectively represent 28 percent of all employment nationally. Most of these firms are start-ups and lifestyle businesses, but some are growth-oriented companies, too.

Lifestyle businesses (the so-called mom ‘n’ pops) are the small retail and service businesses in every community. They do not usually “grow” the local economy by bringing in new wealth, but they recirculate the wealth throughout the local community. They are essential to what makes a local community a vibrant and desirable place to live and work. They can also provide significant political capital for an economic gardening program through their testimonials and support.

The “sweet spot” for most local and regional economic gardening programs to target is entrepreneurs who have started a venture that is between one and five years old and who want to grow it, regardless of its size. These ventures aren’t necessarily high-tech, but they have developed some sort of innovation in their product, process, or delivery method. They also have a potential or actual market outside the local economic region and create high-quality, living-wage jobs.

These nascent growth-oriented companies can provide significant economic impact and can benefit greatly from the services an economic gardening program typically provides. To focus on this target audience, find companies that meet the following criteria:

■Firmly established (in business for one to three years)
■Have financial statements that include profit and loss and cash flow numbers
■Have a clearly defined market
■Demonstrate revenue growth over time (even if the company has not yet reached the break-even point)
■Clearly intend to grow (as expressed in the desire to hire employees, expand operations or market area, or seek capital investment)
■Have a product or service that is scalable and preferably unique (i.e., cannot be easily imitated)
■Have a potential or actual market outside the local region.
These growth businesses will sometimes look like secondary businesses—local retail and service companies. The key is that they have both the desire and the ability to sell their goods and services outside the local area. For example, a local producer of specialized jams and jellies can sell their products over the Internet; a local coffee roaster using solar technology can wholesale their organic beans to coffee shops throughout the region; or a local printing company can provide on-demand printing and graphic services through their website.

You can also consider offering tiered services to different audiences. You might, for example, provide basic services to your lifestyle businesses and more comprehensive support to growth-oriented companies.

6. Develop a delivery system to provide services to the target audience

Steps involved in creating a viable delivery system include finding or developing qualified business coaches, providing or linking to technical assistance resources, locating entrepreneurs within your target audience, offering market research services, identifying financial resources, and partnering with other providers within and outside the local area. A local referral network of small business professionals and service providers is a crucial element at this juncture.

Having the capacity to deliver economic gardening services is a challenge for many small and rural areas. Rural communities must often develop a regional initiative and take advantage of government resources that are available to their local area. These include land grant university extension offices, small business development centers, and U.S. Small Business Administration (SBA) loan programs. Grant opportunities for rural community and economic development initiatives are available through federal agencies such as the U.S. Department of Agriculture and the U.S. Economic Development Agency.

Rural communities must have adequate transportation and broadband infrastructure to support local business logistical needs. They must also have an entrepreneurial climate—a business culture that supports entrepreneurship. They must provide quality-of-life amenities such as good schools, access to health care, and cultural amenities. They must also have access to a trained workforce that can meet local employment needs.

7. Develop a communication system to gain community support and buy-in

Make public presentations explaining the economic gardening program and gain the support of local media. Use entrepreneurs and your local referral network as advocates to deliver your message to funders, prospective clients, and the public. Build regular reporting functions into your ongoing activities.

The entire article, Strengthen Your Local Economy through Economic Gardening, published in ICMA's Infocus, is available for purchase in the ICMA Press online bookstore.

Housing Funds Available in Stokes County

PUBLIC SERVICE ANNOUNCEMENT
Housing Funds Available in Stokes County

• Stokes County has been awarded a $200,000 Single-Family Rehabilitation Grant (SFR) and will be awarded a $400,000 Community Development Grant (CDBG) toward the end of the year.
• The SFR grant is funded by the North Carolina Housing Finance Agency with the goal of helping seniors or the disabled make repairs to their homes to insure continued occupancy of the home as the occupant ages. The CDBG grant is funded by the North Carolina Department of Community Assistance and has similar goals.
• The County will have funds available to rehabilitate approximately 16 homes.
• Candidates are selected on a first come – first to qualify basis.
Eligibility Requirements:
• Applicant is elderly (62+) and/or disabled.
• Income less than 80% of county median. This income limit would cover approximately 85 percent of retired individuals or those who are living on disability.
• Owner occupied household located in Stokes County
• Site-Built homes only (sorry, no manufactured houses)
• Homes need to be in a relatively good condition but would benefit from:
Energy efficiency improvements
Handicapped accessibility
Roof and foundation repairs
Updated electrical, heating or plumbing systems
The cost of this work is in the form of a no payment, no interest loan to the owner which is forgiven at $3,000 per year for the SFR grant and over 8 years for the CDBG grant. Expenditures are limited to $40,000 per dwelling. The loan is secured by a Deed of Trust.
• Stokes County has requested the services of Benchmark, CMR to handle the application/intake process for these grants. If you have any questions regarding these grants or would like to apply for assistance, please call Cindy Ramsey at Benchmark, CMR, 1-800-650-3925.

RAFI Grant Workshops

Please find below a press release on RAFI Grant Workshops in the state and our surrounding area. The workshop in Stokes County will take place on Oct 19th at 6:00 PM at the cooperative extension offices. Grants for individual farmers are available up to $10,000 and up to $30,000 for farm groups. If you have a project that you think might qualify or just want to learn more about this process, please take time to attend this informative session.





NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: Francesca Hyatt, 919-323-7587

RAFI is offering cost-share grants of up to $10,000 for individual farmers and up to $30,000 for farmer groups.
For information and application materials please visit: www. ncfarmgrants.org


Grants available for North Carolina farmers

Through its Tobacco Communities Reinvestment Fund, the Rural Advancement Foundation International-USA (RAFI-USA) is offering close to 2 million in cost-share grants for individual farmers and for farmer groups. The funding provides cost-share support for farmers’ to try new production, marketing, and processing strategies in order to earn more income on the farm.

Deadline for applicants in the Western Piedmont Region* is December 20, 2010. The application process is competitive. High priority will be given to innovative projects which show a new direction or opportunity in farming. All farmers who make an income from agriculture are eligible to apply.

RAFI is offering “How to apply” workshops across North Carolina through November.
The purpose of the workshops is to help potential applicants understand the application guidelines and process. The workshops also give farmers some face time to get specific questions about their projects answered. The following is a list of workshop dates and locations for this region. All workshops will be held at the local County Extension Agency office except when otherwise noted.
(See Attached Schedule)


*The Western Piedmont region is comprised of Alexander, Alleghany, Anson, Ashe, Burke, Cabarrus, Caldwell, Catawba, Cleveland, Davidson, Davie, Forsyth, Gaston, Guilford, Iredell, Lincoln, Mecklenburg, Rockingham, Rowan, Rutherford, Stanly, Stokes, Surry, Union, Wilkes, and Yadkin counties. For other regions please see www.ncfarmgrants.org
How to Apply Workshops, Western Piedmont Region
Western Piedmont Field Coordinator: Francesca Hyatt (919)323-7587
Email: francesca@rafiusa.org web: www.ncfarmgrants.org

Workshop location details are available on our website, as well as a complete listing of workshops for the entire state. If you are unable to attend the workshop in your county, feel free to attend a workshop in a neighboring county. Note: Please check the website prior to attending a workshop in the event of schedule changes.



9/9 – Guilford County Workshop, 6:30pm
(Guilford County Cooperative Extension, Barn/ Kitchen)

9/13 – Surry County Workshop, 6:30pm
(Surry Cooperative Extension Office)

9/14 – Wilkes County Workshop, 1pm
(Wilkes Cooperative Extension Office)

9/16 – Yadkin County Workshop, 6:30pm
(Yadkin Cooperative Extension Office)

9/21 – Union County Workshop, 8am
(Union Cooperative Extension Office)

9/23 – Davie County Workshop, 6:30pm
(Davie Cooperative Extension Office)

9/27 – Forsyth County Workshop, 6pm
(Forsyth Cooperative Extension Office)

9/28 – Iredell County Workshop, 7pm
(Iredell Cooperative Extension Office)

10/13 – Rutherford County Workshop, 2pm
(Rutherford Cooperative Extension Office)

10/13 – Cleveland County Workshop, 6pm
(Cleveland Cooperative Extension Office)

10/14 – Alleghany + Ashe County, 6:30pm
(Upper Mountain Research Station, 8004 NC Highway. 88 E, Laurel Springs,

10/18 – Gaston, Lincoln + Mecklenburg, 6:30pm
(GASTON County Cooperative Extension Office)

10/19 – Stokes County Workshop, 6pm
(Stokes Cooperative Extension Office)

10/21 – Catawba County Workshop, 7pm
(Catawba Cooperative Extension Office)

10/25 – Anson County Workshop, 1pm
(Anson Cooperative Extension Office)

10/28 – Cabarrus County Workshop, 6:30pm
(Cabarrus Cooperative Extension Office)

10/29 – Stanly County Workshop, 9am
(Stanly Cooperative Extension Office)

11/2 – Caldwell + Alexander County, 9am
(Caldwell Cooperative Extension Office)

11/2 – Burke County Workshop, 3pm
(Burke Cooperative Extension Office)

11/4 – Rowan County Workshop, 7pm
(Rowan Cooperative Extension Office)

11/8 – Rockingham County Workshop, 6:30pm
(Rockingham Cooperative Extension Offic
NC 28644-8631)

The Tobacco Communities Reinvestment Fund is supported through a grant from the North Carolina Tobacco Trust Fund Commission.
####
M

A Social Media Strategy

I was on the road with other developers this week and our discussion turned to social networking and how much time it takes. I don't claim to be and expert but I believe social networking should be a part of most businesses marketing strategy. As I work to market Stokes County, I spend 20-30 minutes/day updating the local facebook page and blog. With this in mind, please take a few minutes to read the article listed below. A Social Media strategy is important but doesn't need to be all consuming:

Social Media: 4 Steps to an Effective Marketing Strategy
September 14, 2010 · by Paul Chaney

Print Email 4 Comments Comments RSS ShareThis Many small businesses are experimenting with social media to market their products. Based on my observations, however, most are doing it in piecemeal fashion, without a coordinated, overall strategy.

In this article, I present a practical, four-part social commerce strategy that minimizes the time required and that recognizes the overall purpose is to grow sales. Because I am a fan of alliteration and use it as a mnemonic device, each of the four elements begins with the letter "C."

Content
Think of social media as a form of content marketing, which is the creation of content for the purpose of engaging customers and prospects. The nexus for creating such content is a blog. I prefer to think of a blog as a social media "base of operations" from which content can be syndicated to digital outposts such as Facebook and Twitter.

One example of this approach is Ice.com, a leading online jewelry retailer, which publishes Sparkle Like the Stars, a blog focused on celebrities and their jewelry. Ice.com launched the blog several years ago and continues to leverage it to attract the attention and interest of consumers.


Screenshot of Sparkle Like the Stars blog.



Two factors are helpful for creating a cogent content marketing strategy: developing an editorial calendar and determining the frequency of the posts.

•Editorial Calendar. An editorial calendar is a listing of upcoming topics and features. For publishers, it is a helpful planning device and, for readers, it helps explain a publication's mission and content. For example, Practical Ecommerce has an editorial calendar that outlines articles to be produced on a weekly, bi-weekly and monthly basis. Similarly, merchants should consider what topics would be of most interest to customers and develop a calendar to address those.

•Posting Schedule. Once a merchant develops an editorial calendar, he or she should determine the frequency of the blog posts. For search engine optimization, daily posts are best, as search engines prefer frequently updated content. What's important, however, is to be realistic in terms of the time available, and then set a schedule and stick with it.

Because content creation can help with SEO, use essential keywords and optimize posts around them, using one in every post, both in the post's title as well as in the body.

I'm often asked whether a blog should reside inside the main ecommerce site or outside it. My answer is "it depends." In the case of Sparkle Like the Stars, it lives as a separate entity from the ecommerce site, but points to it via links within the main navigation and the post content itself. But a blog can reside within the main ecommerce site, and there are advantages to doing so. SEO professionals will say that, by having a blog as a sub-folder (or, sub-directory) on the main site and committing to make frequent updates, it will help attract search engine attention.

I think the choice comes down to the blog's purpose. If it has a unique topical direction, such as that represented by Sparkle Like the Stars, it should take up its own real estate. Otherwise, it could easily sit inside the ecommerce site.

To complete your content planning, determine which platform to use for the blog, and the personnel to write the posts. It's best to create content in-house, versus outsourcing it to professional writers.

Communication
Once a merchant develops the content strategy, he or she should determine which social media sites to syndicate the content to. This could include Facebook, Twitter, YouTube, Flickr and others. Whenever possible, I automate that syndication process using a tool called Dlvr.it, which eliminates having to manually post updates to each of those sites. Read our review of Dlvr.it at "The PEC Review: Dlvr.it for Social Media Distribution."


Screenshot of dlvr.it, a content syndication tool.



Conversation
Not all syndication should be automated, however. The merchant should add his or her own personal touch through direct interaction with friends, fans and followers.

For Twitter, this means using replies (@username), retweets and being "real." In Facebook, a merchant should respond to comments from fans and introduce attention-getting devices such as polls, trivia questions or games. Anything that will inspire engagement on the part of fans is useful to build brand-awareness, foster loyalty and encourage viral sharing.

To implement a conversation strategy, a merchant should determine who will be responsible for managing the conversations.

Conversion
The purpose of any marketing plan, social media included, is to grow sales and otherwise get more business.

Social media marketing will help merchants grow sales by keeping their products in front of fans and followers. More direct conversion tools include the use of a Facebook-enabled shopping cart, or the use of discount coupons. We've addressed many of these direct tools in previous articles, including:

•"Six Facebook Applications to Sell Your Products;"
•"Social Commerce Spotlight: Payvment, a Facebook Storefront Provider;"
•"Social Commerce: Shopping Carts Extend Reach Into Facebook, Other Social Sites;"
•"Profile: Retailer Spends Little Money for Big Social Media Impact;"
•"6 Facebook Apps to Enhance Your Company's Fan Page."
Getting fans to subscribe to an email newsletter or blog RSS feed will help keep them connected, and will also drive traffic to the main ecommerce website, which should always be uppermost in the merchant's mind.

Implementation
A merchant should address the following questions to implement a successful social media strategy.

Content:

•What topics would most interest customers and prospects?
•How frequently can content be updated?
•On which channels in social media should a presence be maintained?
Tools:

•What blog platform should be used?
•What syndication tool should be employed?
•Which third-party apps might be useful?
•What analytics or measurement tools should be place?
Personnel:

•Who can write the blog posts?
•Who can manage the social network interactions?
•Should a team or people assume these duties, or should a social media management position be created?
•Should outsourcing of these activities be considered?
Conclusion
Social commerce is most effective when merchants develop an overall strategy. To help with this development, I've broken it down into four Cs: Content, Communication, Conversation and Conversion. By addressing each of these, merchants will be engaging new prospects, staying in touch with existing customers, and, ultimately, growing sales and profits.

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