This is from a datamation article in the US following an extensive technical study around the way Facebook updates and distributes users news items. i.e. When you share some news to your loyal followers. (read more).

The issue is quite a technical one, but has major implications for those using Facebook to send out news to their readers and fans. It appears it’s not working, around 90% of the time. Broken may not be the right word, since it implies a software bug, when it’s really about how Facebook structures their system. But figures like this start to put Facebook, as a channel, in the same league as email for the delivery of messages. i.e. Under 20% are read.

But as mentioned in other article on this site, it’s never wise to put all your eggs in one basket. Cross-channel starts to make sense.

Facebook?  It’s no free ride for Business

If what the article implies is true, the fix involves giving Facebook your credit card number for paid advertising. As the article says “… Facebook lets you build massive lists of "fans" or "followers," but won’t let you communicate with them unless you pay.”

In itself, i don’t see an issue in this, since any form of business marketing has to have a cost. There are many services worldwide that are free to consumers, but if they’re being used for commercial gain, then you have to pay. Google sort of does this with its search. Organic is a ‘free’ service although still takes considerable work to get you up on page one. Instant results come via their AdWords ‘pay per click’ ads. Facebook is essentially now doing the same thing. We just didn’t realise it. In fact when we look at how many consumer and business services started out on the net, the Facebook  move should come as no surprise. Starts off free, then you pay.

However it would have been nice for businesses to have been kept in the loop a bit more on these changes – Told what was really happening. There are ‘workarounds’ of course, which smart companies will use, although much relies upon making communications more interactive (which isn’t a bad idea, but is costly), or having users change their security settings. The free ride is now over.

However the other argument made is that Facebook is just filtering out those 90% who are not interacting with you on a regular basis and not worth communicating with. This may be fine and even logical for personal communications where many who ‘like’ you, are but temporary acquaintances.

But as anyone knows in business, the business sales cycle can be long. Often a year or more before they’re ready to buy. Regular communication is vital. This Facebook strategy could be disruptive and force businesses to look to other channels again like email or even direct mail, which don’t have these nasty filters in place. It’s a stark reminder to us all never to put all your marketing eggs, in one basket.

It could be the beginning of the end for Facebook as a business marketing tool. Quite sad really. Facebook had such promise for home and small business users. Now it will become another marketing channel only there for those that can afford it.

STOPPRESS: August 5th. Seems Facebook is changing its mind and turning back some of its filtering, under pressure from Advertisers. But will this start to turn many people off to Facebook, as it becomes more commercialised and filled with promotional Ads? Getting the right balance will be the trick.  Checkout the changes here

However like anything done online, it does take time and effort. Yes, the base tools are supplied free, but your time isn’t. Having a good strategy helps too, as does utilising all the tools that Facebook offers.

One of the best authorities I’ve discovered recently on this topic is Mari Smith, who writes regular articles in the Social Media Examiner. (click here). Our local Debbie Mayo-Smith, columnist and speaker has also talked about the benefits of Facebook in business. (Her Youtube video)

Mari reveals all the tricks and guidance to make Facebook work for you. The other thing with Facebook that’s not specifically covered here, is to have it more tightly integrated with your own website and/or shopping site. Most web designers stop at the normal ‘like’ or Facebook linking buttons on their website or cart – They only consider the website, not the Facebook side.

Let’s get together – Two always work better than one!

There are certain things you can’t do with Facebook legally or technically (e.g. sell stuff). Some items or elements are therefore better posted on your own website which can then, using special community or self-developed Apps, be ‘windowed’ into the Facebook page. Very few Facebook pages (less than 1 per 10,000) utilise these toolsets, but those that do have seen immense returns, like BigCommerce users.

Left is a typical ‘windowed’ application developed by one of our partners, BigCommerce in the US.

Other similar Facebook Apps to that from BigCommerce can be developed to embed specific storefront pages as well as your website sales landing page, catalogues, customer surveys or signup forms etc  (email me for details). Often, instead of upgrading your own website to do this, it’s usually far easier to utilise a  brand new WordPress site, that can be setup in a few hours, (costing hundreds of dollars), instead of days or weeks (thousands of dollars) to ‘window in’ your existing website toolsets.

But You Always Need Your Own Website – Facebook Isn’t Yours

Having Facebook + Custom WordPress Website work together like this makes a lot of sense. And it provide some security long term, since you do OWN the website. Your Facebook page is NOT yours and simply provided by Facebook at their discretion. Wrong-doing, deliberate or otherwise can have your Facebook presence  removed…. (Have YOU read their terms and conditions documents?). Also, Facebook is more of an open forum. Your [WordPress] website can display sales-related items or articles which are totally under your control.

As a local hairdressing Salon owner mentioned to me recently. “Around half my new business business comes via my simple WordPress website with people doing a Google search.  The other half via referrals from my Facebook page. I couldn’t do without either of them.”

Facebook vs email

But wait there’s more! Latest research from eMarketer (click left) is telling us that Facebook, is becoming more important and effective than email! It’s interesting to note where the other channels fit too in this report.

In many markets all this isn’t surprising. More and more people are using their Facebook accounts to communicate. Email is too hard and not interactive.  Young people especially often use their mobile phones to update their Twitter feed and Facebook pages, something most websites can’t offer (unless you’re running a WordPress site). Facebook is their own online community, hence a far better tool than email to converse with a crowd. As the eMarketer article says, Facebook is more cost-effective and convenient.

And don’t forget to read Mari Smith’s articles.

However on the internet, a year is a long time. Things change. You’ll all note the rise and rise of Twitter, Facebook, as well as Linkedin and Youtube. These top social sites are now all mandatory in business, be it selling to consumers or businesses .  The statistics on their growth are astounding. Put simply, this is where more and more consumers are going to for advice (from others, usually strangers) on their new purchases.

The New Sales Funnel?

Social media isn’t perfect for sales. However I do appreciate that in some market segments, social does make more sense and can certainly provide sales leads. It’s the online equivalent of ‘word of mouth’ marketing, which we know is one of the most effective means of selling. Many say it’s rewriting the traditional sales funnel. (left, courtesy of genius.com).

I don’t think it’s a the magic wand for every business or business type. For example, it wouldn’t make as much sense for the local plumber or electrician to spend too much time on Twitter, although a Facebook or blog page providing hints and tips could help sales and credibility.

The sweet spot, based upon those who monitor such things, is likely around consumers looking out for new toys for their home or person. e.g Movies, events, new tech gadgets, women’s fashion, latest deals or sales etc. These are all prominent on twitter and Facebook. Even Dell computer runs regular specials via twitter and does better than any one expected, with a massive 1.6m followers.

Another leading consumer electronics manufacturer leverages social media to generate sales and awareness for new products. Its online advocates share a company-produced video about the new product and a promotional offer with their social networks. The results? A 4.8% of the inbound clicks resulted in actual purchases for the new product!

By comparison, the company’s [more expensive] traditional marketing and media efforts generate less than 1% conversions. Another startling fact: each time an advocate shared the video and offer on Twitter, the company got 17 in-bound clicks to it’s website, compared to 1 in-bound click for email. Buoyed by the success of the campaign, the company is now encouraging Advocates to “share the love” by creating and posting product reviews to shopping sites. This result is unusual, but shows the potential of the channel.

Seth was right

It’s all panning out exactly as marketing guru, Seth Godin predicted in his tribes and earlier books. Companies are helping out their own users, followers and consumers for promotion, via these free social media sites.  An email campaign to an established client base often kicks it off, but then social connections adding the icing on the cake. It’s then quicker than email alone, has more credibility, a tiny fraction of the cost (zero), and in some markets, much more effective marketing mix than ‘traditional’ Print-Radio-TV. Here the happy customer is doing the selling [mostly] for free. Typically, you’ll get five to ten times the sales leads of your traditional Yellow pages, newspaper and magazine ads, for less cost

However it’s a two-way street. This cheaper promotion does have a price. Without a superb product/service actually worth talking about (i.e. remarkable as Seth would say), zero or bad reviews in social media can kill off a product or good reputation very quickly. The earliest, most dramatic example of this was a Dear Mr Dell letter posted on a blog by journalist Jeff Jarvis in 2005. The end result of this had a dramatic effect on Dell computer sales and reputation, which took them years to recover from.

Don’t overlook the customers media channel

The other little-appreciated fact in developing a social media strategy, is the realisation that more and more people are going to these social websites using their mobile phone, not on their laptop or PC.

80% of Twitter usage is on a mobile device!

This means ensuring everything is mobile-optimised from a format and content perspective. e.g. Clicking from a twitter link back to a company website that takes 3 minutes to load on a mobile or graphics-laden emails does far more harm than good.

Every Day Counts – But where to start?

Enquiries to: zn.oc.gnitekramlatigidnull@nivek

We make it easy. For a flat monthly fee, we’ll build and then manage for you a smart, high traffic, sales-generating Digital Marketing package comprising:

• LinkedIn, Facebook, Youtube and Twitter accounts
• A slick mobi website or Mobile-compatible blog
• Mobile keyword and lead generation pack
• Advanced online email marketing system
• SEO, Google Adwords plus directory listings

Still don’t believe the power of social and online media over Radio, TV and Print? Check out this video..

Read also : “Social Media for Sales is Different”

However if we look at these things in the same way as you’d view attending a local chamber of commerce meet, being a forum to make new touchpoints, then I suspect it has a place.

There’s a new webinar coming up that I’ve registered for entitled Don’t Cold Call, Social Call. Now, knowing that most salespeople hate cold calling, then this one should be interesting…

To register yourself, visit www.eyeonsales.com  If you miss it, I’ll place an audio link archive of it on this page later.