Today’s online social media have replaced yesterday’s “schmoozing” at social events to boost your business. Whether you have a physical store or a virtual business, it’s imperative that you venture into social media in order to keep up with the competition.Social media sites such as Facebook, Twitter and YouTube are fantastic places to advertise. The best part? Free, free, free! Well, you have to account for your time spent, but once you get the hang of “twittering” or “squidooing” you might find social media to be quite fun!

The entertainment world has certainly made use of social media. Musicians truly had to adapt to digital downloads over the last decade and find ways to boost their income through concert ticket sales and merchandizing.

A great way to do this was to make themselves more available to their fans via social media such as MySpace. By posting recent events, personal video messages and tour journals, their fans are more likely to stay engaged with the band and continue to see concerts, even spending big bucks to buy special “fan only” VIP packages.

The musicians gain valuable information from their fans such as what worked and what didn’t work at the last concert, or what the fans liked most about their recent album. They are “controlling their reputation” by paying close attention to what their fans desire. They get the word out about their concerts and build excitement for CD debuts and tour announcements. They can sell their own merchandise and reap a greater profit because they cut the middle guy out of the picture without sacrificing precious time.

What can social media marketing do for your business?

Personalization of Your Business

Whatever your business is, you will be a step above the competition if your customers like you. If they don’t know you at all (i.e. faceless, nameless owner of online company), you’ve given up a potential for sales. We like to know people. Think about the last time you went out for dinner. Did the owner or manager greet you? Did he or she stop by your table? When owners and managers show interest in their customers, the customers feel special and they are less likely to choose another establishment.

Make sure you upload your picture and perhaps a few photos of your family or your favourite activities. Be frank and creative in your “about me” section. Interact with your viewers using comment sections.

Driving Traffic/ Controlling Your Listings

You can drive more traffic to your website through social media marketing by placing links to your site and others using the bookmark/favourite function. Now, some sites such as Facebook have automatic “no-follow” links as a response to spammers, but these still can work to your advantage if you continue to grow your friends list and upload links (with keywords of course) as often as possible. Some sites have “do-follow” links and these will convert to click-throughs instantly.

Controlling your listings becomes possible without the need for multiple company websites. When you type in relevant searches and your business pops up on page one, that’s fantastic, but it’s not as good as it gets. Using social media can boost your chances of receiving more listings on the search engine page and eliminate some of the choice that your potential customers have. Instead of competing with several other listings on page one, you may have five of your own listings on the same page!

Controlling Your Online Reputation

By putting more information about your company or services, you have a bigger influence on what will be said about your company. You begin branding your name and getting the word out. It may be frightening to think that you may receive negative comments, but those comments will pop up somewhere, so isn’t it best to be aware of them and control them by addressing the situation?

Keep your content fresh and engaging and be sure to keep up with the comments as much as possible.

Where Do You Get Started?

Some of the more popular sites for social media marketing are:

• Facebook
• MySpace
• LinkedIn
• Twitter
• Del.icio.us
• Digg
• Flickr
• Mashable
• MyBlogLog
• StumbleUpon
• Technorati

Social Media is in its simplest form, people voicing their opinions, talking about their day and asking questions to this community online.  There are niche corners of the Internet allowing people to interact with others of a similar ilk or there is the more general free-for-all type forum that appeals to the masses.  The likes of Facebook, YouTube and Twitter have achieved a tremendous following in a very short space of time, placing a lot of other Social Media sites in their shade, but there is still a lot to be gained by seeking out the social media acorns that have yet to grow and bear their own fruit.

Most businesses instinctively target identified groups online/offline in order to sell-in their product or service, but applying this tactic in the Social Media world can be a bit of a faux pas.  Using Social Media to promote your business in this way can have a negative affect on your brand as this online congregation are not there to actively purchase, they are there to chat, moan, research and have fun. This does not mean that businesses cannot use this, for want of a better word, phenomenon to their advantage but it has to be planned and managed correctly.

There are more effective sales channels out there but Social Media, though not the easiest audience, should not be ignored.  A UK study by e-Dialog shows that 11% of consumers receiving a promotion through social networks would prompt them to make a purchase, compared to 47% via email marketing, for example.  Facebook for one does allow advertisers to target specific demographics and particular interests specified in users profiles, which is an effective way of reaching your target audience rather than the splatter gun approach.

The relationship building this community opens up to businesses is currently near on impossible to measure with regards to investment but it is essential to devote time to speaking to this audience and listening to their feedback.  If you can dedicate a member of staff’s time to become the brands voice this will be the most effective way of “working the room”.  Most importantly communication should not include comments on competitors or impolite dialogue even if it is responding to aggressive or rude provocation.

All of this may sound daunting but follow this advice and your business will be able to communicate effectively in the social media arena.