If SOBCon09 Biz School for Bloggers proved anything, it is that social media is here to stay, and it is having a profound impact on whether business enterprises succeed or fail.
Midsized Firms Have a Real Problem with Social Media
Having worked in a midsized company and do work for several now, I’m very concerned about whether these firms will find their way in social media. Midsized firms are always in danger of getting squeezed between more nimble entrepreneurs and more powerful conglomerates. With respect to social media, the stakes are particularly high, because failure to adapt may make it difficult for them to attract or keep a critical mass of customers.
Big companies are starting to figure out how social media drives business and sustains relationships. As the stories about Dell and Zappos and Home Depot filter out, all firms will want to jump on board. It’s no longer a question of whether, but when. Big companies have the resources in money and manpower to cast as wide a net as they want, and they will want to go big.
Entrepreneurs also have the resources to get the most out of social media. Many of them already know social media inside and out, both technically and as participants. Therefore, they can do whatever they need to do without much if any outside help. Their only investment is time, which is one resource motivated entrepreneurs will always find.
Stuck in the Middle
Several factors make it difficult for midsized firms to engage in social media. These companies tend to be -
- Short on manpower. They don’t have people sitting around waiting to be assigned to spending 4 hours a day on Twitter and other social media engagment.
- Reluctant to hire. Few of them are willing or able to hire someone to spend 4 hours a day on Twitter, etc.
- Sales force driven. Many midsized firms don’t have a marketing department at all, and thus nowhere to put a social media program.
- Tactical. Social media requires long term planning and commitment. This goes against the grain of midsized firms, whose vision all too often extends only to next month or next quarter.
While midsized firms struggle to get past these various issues, single shingle operators and large caps are discovering new ways to use social media a thousand different ways every day – and I don’t think that’s an exaggeration. If midsized firms are lagging now, where they will be in a year? Worst case scenario – they’ll be invisible on Google, invisible on mobile search, invisible on all the key platforms where people make decisions about who to do business with.
Now, there are plenty of folks around who can help with stuff like business blog development and how to use LinkedIn. But no outside resource is going to make a bit of difference unless a midsized firm has a champion, someone on the inside who sees where the future of marketing is going and is ready to act. The good news is, it may only take one person or a handful to move an entire firm. But until it happens, the squeeze is on.
Over to You
Do you think midsized firms will find a way to adapt? Do you think the future of business favors the smallest and the largest of firms?
You make a great point, Brad. But do you think the main problem is the midsized firm is maybe not even aware of the danger they face? I think the current economic strain has everyone focusing like a laser on their main business, and these guys are no exception. But maybe that focus has them missing an opportunity!
Robert Hruzeks last blog post..All Entries: What I Learned From Community
Hi Robert, sure. There are people who are outright hostile to social media – they label it a trend, a distraction, silliness or what have you. I’ve talked to hundreds of midsized business people who have dismissed social media without exploring it much at all. I’ve talked to very few who have used social media and dismiss it. Draw your own conclusions!
Brad Shorrs last blog post..Social Media Squeeze Endangers Midsized Firms
Hard conclusions here Brad. And they are probably correct. Given what you’ve said I wonder if there is something ‘brass tacks’ about companies that hit mid-size. Large companies have niches and budgets for experimenters, entrepreneurs have to be dreamers – but mid-size companies are in that uncomfortable place where what they are doing is working. Throwing resources (owner time possibly being the most critical) at ‘unproven’ ideas doesn’t seem reasonable because they would rather up the budget on something that has been working. (Show me the money, anyone?) So they get tunnel vision until something knocks them out of their comfort zone.
On the upside, when a mid-size company decides to do something they can still be nimbler than the big boys.
Fred H Schlegels last blog post..Community Creativity: “Let’s Put On A Show”
Fred, I think you’ve nailed the problem. There is a tendency for midsized company leadership to work on the business by working in the business, which really doesn’t allow for much experimentation. Along with that, as I mention briefly in the post, many of these firms don’t have a distinct marketing department or even a distinct marketing function is another major hurdle. So not only do you have a reluctance to experiment, but no place to perform the experiment. That may be why the whole concept of social media is so baffling to certain organizations.
Brad Shorrs last blog post..Social Media Squeeze Endangers Midsized Firms
Hi Brad, you make an astute observation. The way for mid sized firms to overcome this is to outsource it. In that way they can remain focused on the core business and hire expert help that will not have the learning curve and produce results quickly. I can see the function itself easily managed under Service or Sales. The problem, however is at the heart of your insight, there are solutions but do mid sized firms see them and if they see them are they committed enough to take advantage. A failure to adapt will have them going the way of the middle class – nearly extinct. Interestingly enough I believe mid sized firms are in the best position to dominate. They’re big enough to have more resources than the little guy, yet small enough to be able to reinvent faster than large cap firms.
Karen Swims last blog post..Let’s Connect – Maybe
Karen, Your note of optimism is wonderful – I hope people take it to heart. A couple things I’m curious about – to what extent do you think social media engagement can be outsourced, and how transparent should the outsourcing be? Would you be comfortable Twittering on behalf of a client, for instance?
Brad Shorrs last blog post..Social Media Squeeze Endangers Midsized Firms
Hi Brad, I am doing quite a bit of social media work for clients. I would feel comfortable tweeting for them as part of the company brand but with disclosure it was me (i.e. @karenswim for X company). Twitter is a medium that in my opinion requires transparency. LinkedIn and Facebook Fan pages are a different story but Twitter is all about conversations and engaging others.
Karen Swims last blog post..Let’s Connect – Maybe
Outsourcing is a funny word in terms of social media and may be part of the solution for mid-size companies. I like the way Karen talks about being open about the relationship as well as who the individual is. As long as the person talking for the company has the ability and relationships within the company to solve problems and talk with authority then I see it as a potential win-win. (Working for, working with, hardly working… all works). Spokespersons are nothing new, within the social media world I think (and since I’m mostly a bystander I differ to you folks here) that a spokesperson with authority works just fine on twitter and such in many situations.
Fred H Schlegels last blog post..Community Creativity: “Let’s Put On A Show”
Brad,
I like Karen’s suggestion, and provided that the outsourcing process is managed effectively, then this could be an arrangement which works effectively with for a mid-sized company.
I would see no reason why this type of arrangement would not work. As Fred pointed out, the concept of spokespeople who may not be employees of the organization concerned has worked well terms of traditional media relationships. I don’t see why it couldn’t work in social media.
To me, it’s not so much a question of whether public communication comes from internal employees of an organization or from external parties. Rather, the most important question would be whether or not the representative concerned has the willingness and communicate effectively with the target audience and to effectively handle any issues of concern raised during the course of the social media dialogue.
Andrews last blog post..Animal testing – a positive EU proposal to eliminate unnecessary suffering
Hi Andrew, You’ve articulated the area that concerns me about outsourcing social media – the ability to handle issues. I suppose it would depend on the complexity of the business and the scope of what the dialog might cover. Thanks as always for your clear thinking!
Brad Shorrs last blog post..How to Succeed on LinkedIn in 100 Easy Pages
This is a great point, although it is generally free and accessible to all the point about social media that is often forgotten is that it does require a strategy, so obviously it requires manpower which equals…money of course.
It is also incredibly time consuming not only sitting writing twitter posts every 10 minutes, but the planning if done correctly should take a significant period of time i guess!
Danielle Ingrams last blog post..Google One-Line Sitelinks – May 9, 2009
Hi Danielle, Businesses understandably underestimate the time involved in maintaining a social media presence, because they don’t have much if any experience on these sites. I’ve learned to be very clear about explaining that, so companies don’t experience something like “sticker shock” when they delve into Twitter and discover it’s a serious commitment.
Brad Shorrs last blog post..Are You a Social Media Doer or Dabbler?
Great post! If a business wants to grow, they have to start looking about how to use social media to enhance their customer experience. Not all avenues are best for all businesses, but if you don’t take charge of the conversation about your brand, someone else will.