There is definitely an upward trend at the moment, in the area of proximity-based social networking and for many businesses, large and small, it’s a new concept to learn.
Many new apps are growing in popularity, such as newly launched Color, while other apps such as LoKast (which offers local file sharing from mobile to mobile) are developing to become even more accurate and efficient. While many organisations are now comfortable using social media purely online, combining this with physical location presents a new challenge altogether. The benefits are great, but only if you get it right.
Train your staff on the ground
One of the biggest challenges for many businesses now is to coordinate a social media strategy with staff across different business premises. I’ve heard quite a few stories where people have tried to redeem an offer on Facebook Deals or Foursquare, to find that the person behind the till has no clue what they’re talking about. Your staff out on the shop floor are now one of your biggest assets when it comes to online communication and for larger businesses particularly this presents a challenge.
They need to be trained on your company’s local social networking strategy, as well as being able to spot potential business and monitor online for questions or complaints they may be able to deal with. This training should start right away, even if you’re not yet implementing a local social media strategy.
Build a mobile team
I think that one of the most exciting things about proximity-based social networking is the possibility for local ‘crack-teams’ to identify and monitor customers in real-time and be in a position to offer a service, such as replacing a faulty product. This is particularly true for companies that may not have a physical location in stores.
As people raise their expectations of how companies approach them online, this will carry through to location-based networking as well. If you’re able to identify where your customers are and what problems they’re having, you should be in a position to be able to deal with them real-time. This will have a hugely beneficial effect on your reputation online and your actual customer experience.
Adapt the tools to suit you
It’s true that not every new location-based app or service will suit your business, but people will respond to those companies that find a way to use new tools to adapt and improve their existing business services. Think of Lokast for example, which allows people to create public profiles through a mobile app for the content they want to share, such as photos, music, links and contacts. You might not think that file sharing can really be used in a b2c context, but imagine that a company representative in your store has created a branded profile on Lokast. This can be used to share value-added content either with people already in your premises, or those nearby, enticing them in. A list of the best music to enjoy a relaxing cup of coffee with, or a selection of photos of your freshly baked cakes to bring people in. The potential to turn social networking completely on its head and truly integrate it with the physical is fascinating.
Claim the right listings
While it’s important to claim your online listings through tools such as Namechck, claiming your physical business presence is even more important.
With many consumers engaging with companies through Facebook Places etc.. the last thing you want is not to be owning that relationship! Your business should be registered on the main location apps such as Foursquare, Gowalla and Yelp, Facebook Places and Google Places. This is also important in terms of SEO, if you’re building out the profiles properly and encouraging interaction. You should focus on only claiming the profiles that are right for you, and that you will build out by actively engaging on. I believe it leaves a very bad reaction for people if they find a profile that has been set up just to claim a name and where they can’t get any response. If you claim it, use it!
Use data to do better business
A distinct benefit of proximity-based networks is being able to access real data that can benefit your business. This data can be incredibly useful if you take the time to analyse it and improve your business practice as a result. While the numbers offered alone can be useful can be insightful, such as looking at how often people check in to your business, make sure you look a little bit deeper such as what deals were popular on a particular day, was there a higher number of check-ins than deal redemptions for certain offers?
You should be continually optimising based on the real, reliable data you can now access and this is very exciting for businesses of all sizes. This should also be the job of the people in the sales/marketing department, as well as working with people on the ground. Here you should combine the expertise of people who meet customers every day, with the knowledge and expertise behind the marketing/promotional strategy.
Don’t forget physical promotion
One thing that I think many businesses are over-looking is promoting their online presence in stores. Many people will be checking in of their own accord, but there is still an incentive for businesses to work on physical promotion of their local social profiles.
The benefit of a social interaction extends way beyond the one person that you engage with at that particular time. It means that you’re instantly creating a connection with their online community and this is very important for businesses now, particularly as people are building out communities based on location. Instead of it being seen simply as an endorsement of your business, it’s a notification to someone in the area that they should check you out.
Don’t undersestimate the importance of a simple sign, provided you’re giving people a reason to do something and explain it clearly. There’s nothing worse than a simple ‘find us on Facebook’ without any information on your page url or why people should look for you. This can also be used to educate people about new services they might not know about, that are in line with your brand.
Gaining Discipline and a Strong Work Ethic at a Young Age
Entrepreneurs mostly fall short because they don't have the work ethic needed to start a business from nothing. It took a while, but I had to train myself to work 17 hours a day.
I've learned that it is the indirect work that an entrepreneur puts in that makes him or her successful. For instance, I continuously read new books that I feel may be pertinent to my job. I always take detailed notes so I don't forget the concepts.
If I'm not at the gym or sleeping for 7 or so hours, I'm available for my clients. This is what compels them to continuing working with my firm.
The biggest problem I have with my vendors is that it takes them too long to execute a request. Corporate America has set a standard of 8 hours a day - no more no less. It is imperative that the entrepreneur exploit this status quo and stand out from the crowd.
Advertising and Marketing on a Budget
I knew that I could not rely on cold-calling forever. Also, I am a firm believer that you should never rely on current clients. They can move companies and no longer need you, they can experience budget cuts, or you can have a disagreement that leads to a falling out.
However, pay-per-click would not work for me because candidates who yielded little to no return would kill my budget through costly clicks. Obviously it was important that job seekers visit my company's site, but they aren't the real revenue-drivers in the recruiting world. Therefore, I found various industry directories that were accessible to my target market and only cost a hundred or so dollars per advertisement annually.
Once I closed enough deals to support a marketing budget, I decided that we needed some form of SEO. I found a company out in California through the web and the sales representative, seemingly desperate for business, threw in 35 programmed new pages per month with the SEO.
At this point, I had an intern from NYU come to my apartment full time, and together we wrote over 150 landing pages. (Landing pages are website pages geared toward ranking on a particular keyword phrase or two and, mostly they are not linked to from your website's homepage.)
While their programming skills were satisfactory, when it came to SEO, my vendor had no idea what they were doing. Before we parted ways, over the course of approving programmed pages, my vendor sent me their programming and meta tags for my site.
This piqued my interest and I began studying SEO. I ended up studying it all day, every day. I knew it was the only way my company would grow. I read SEO blogs, contacted sites that would give links to recruitment agencies and, at this point I began the uphill battle that was cold-calling universities for.edu links.
In total, I probably contacted 350 or so university career centers in order to present my company as a career resource and, subsequently get a link from their site. I got a lot of resistance, mostly because I was a recruiter and recruiting has a certain low reputation, but some of the career center people were simply hard to negotiate with.
Partially, that's due to academia being its own, insular world, where rules apply differently than in the business world. A university in Arizona would not even accept donations to be listed because we were a staffing agency. Another university's career center got in a lot of trouble when the woman asked for $500 for us to be listed, but there was no cost for any other firm.
I knew something was wrong when she emailed me right away with a "First-Ever Best Career Center Intern Award" in which she would give cash to the student who did the best job of convincing her that they were the best intern and should get the money.
Then, there was my alma mater, who took a donation, only to tell me that the woman who swiped my credit card was no longer there and she didn't have authorization.
In the end, I ended up with only 30 or so links after literally days' worth of cold-calling hours. Even so, it was a higher number than my competition had. Right now, SEO is what fuels my business. We get around hundreds of visits a day and our advertising budget is a mere pittance compared to what most ad and marketing agencies quote.
This means that our firm does not need to attend trade shows and is not reliant on one particular customer to maintain a steady stream of revenue and fuel growth.
Recruiting the Right Employees From an Apartment
I started my business from a studio apartment on Manhattan's Upper West Side, and continued to grow it when my wife and I moved to a larger place on the East Side. But a Manhattan apartment with the attendant space restrictions it still very much was.
I decided to prioritize growing our online presence and business base, as described above, rather than investing in office space before it made logistical sense. But I was quickly busy enough that I couldn't run the business on my own, and that meant bringing on employees.
Recruiting employees to work out of your apartment is very difficult. This is especially true when they are of the opposite sex. I knew that remote employees would not work, as they have a significantly higher turnover rate than in-house employees.
Also, I wanted to hire entry-level people, and too much autonomy leads to failure at that experience level. I wanted them trained by me and not another recruiting firm, therefore we would have to teach them the business.
When I set out to get new full-time people, I already had our Managing Director, Alison, on board so it was a little easier, but many applicants would not consider working out of an apartment.
They would get very skeptical as to the legitimacy of the company. Most would not show up to the interview.
The only way to accomplish recruiting the right people was to increase the salary for the position to roughly 25% over market. It was worth it, as we found one great employee who would help us find the 4th member of the team.
We also assured our employees that we would get an office, a promise that we kept and signed a lease after a few months of the new team members being on board.
Recruiting, even if you have the tools, is a very difficult thing for a start-up. However, the hurdles I cleared can apply to many industries, not just staffing or consultancy services. Work hard, plan smart, and hire right. Aren't those the basics to any start-up's success? The trick is getting them right the first time, or if not, to try, try again.
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