Part of my role as as Social Media specialist is to curate content for my clients and myself. I look at a lot of content every day — some of it on social media and some of it on business. I am always searching for the common ground between the two.
Because I come from over a decade of Sales experience in Toronto I love to read about sales and see how it relates to Social Media. In fact, I used to make the claim that having a person who knows about sales manage your social media was an real advantage and still believe that social media that incorporates both sales and marketing insights will be all the stronger for it.
A blog caught my attention this weekend with a quote from Peter Drucker and his approach to business. It quoted him saying
“Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”
I had never read this quote of his before and was blown away how he says that marketing and innovation create RESULTS, all the rest is costs and by the last line in which he states that Marketing “is the distinguishing unique function of business”
Recently I burned through yet another client who decided that “social media” was just not that important and so they decided to terminate my contract. Why? Because I have the that attitude, when I take on a new client that they had better make a commitment to their social media for at least one year or I don’t even want to get started with them. This particular client began to question the value I was working to create and my attitude, after one month of managing their social media. It was barely time to let the ink dry on the contract, get their accounts set up, determine the tone of their market conversation and find the content that was engaging!
Ironically the client was a technology start up out of Calgary that began with no perceived need for marketing whatsoever! They quickly found out that they would have to have a marketing person on board and a plan in place or “investors” would not even talk to them. So they hired an “old Media” marketing person who knew nothing about the new “social media” stuff. A smart move for a business model that relies on online subscriptions for sales revenue…
Don’t even get me started on how it all played out after they hired me on a short term contract. All I can say is that their marketing manager was hoping that social media might be a silver bullet to drive traffic to their site –overnight —-as they were unable to get even 10 hits to their site in a month after trying some old media marketing tactics. Of course I told them from the start that it would take time to build the value that would generate sales online. I am not going to go into the details but I was all over a month after I started — because their fearless leader thought it would be smarter to invest their assets elsewhere and cut the social media “expense” entirely…
Which brings me back to the quote by Drucker. He says that it is either one or the other to create results and SALES. You either Innovate or you Market. Preferably you do both. If you are not innovating — then you better be creating value for your product or service through marketing! Since very few Canadian businesses that I have dealt with actually innovate — most copy the US market or their Canadian competition and on top of that, as a rule, they don’t market much either, I often wonder how they hope to compete for the consumer’s dollar and attention in the days to come. Even if they do marketing– it tends to be all old media stuff — that one way push marketing aimed at an audience that has for the most part, tuned out and moved on to social networks, preferring a new type conversation, a type of marketing that allows them to “interact” and communicate with a brand or company that they are interested it. On top of it all since so many Canadian small and medium sized businesses are short sighted and risk adverse, they are, as a rule, not about to innovate with respect to their marketing strategy. Embracing and then focusing on mastery of social media is for the most part non existent.
By its nature social media is innovative. It is a new medium that allows those who are creative communicators to easily innovate and hence, to add value to a business in a way that they have never been able to do before. That in itself, one would think, would be reason enough to give it a concerted effort to push forward.
Clearly most Canadian business owners are not reading Peter Drucker. I am not sure they are reading thought leaders on business intelligence and instead have become terribly complacent — asleep at the wheel of a big oil rig — thinking that the Canadian resource based economy will carry us into a sustainable future on a planet that is, in fact, currently dominated by technology innovations in internet communications. We have seem more social, political and economic change over the past decade as a result of the internet and Web 2.0 then in we saw in the last 100 years and yet Canadian business thinks that everything will remain the same when it comes to the ways in which they can create value for a potential client and then, for their bottom line.
The status quo that make up the majority of Canadian Business owners, especially in Alberta – don’t like to think about the idea of using disruptive marketing like social media to add more compelling value. Take out the word “compelling” and replace it with the social media buzz word, that means about the same thing , the word “engaging”. If you know anything about social media you know where I am heading with this one. A word of caution to all business owners who decide to stop their social media before it even a chance to enrich your business. What is the real COST of stalling your chances of sustainable growth through new sales revenue via online marketing in 2013?