Social media is the collection of internet-based technology that allows the widespread creation, distribution, and collaboration of content (e.g., articles, opinions, videos, entertainment).  The technology is typically low cost and accessible to anyone with access to the Internet.  Contrast this with “industrial” media such as magazines, newspapers, radio, and television, which are expensive to produce and limit content creation and distribution to just a few.

The old world of industrial media allowed businesses to distribute specific messages regarding products and services, while the general public could choose only to accept or deny those messages.  Consumers had no other say in the matter and generally they accepted marketing messages in direct proportion to their prominence (i.e., number of times they were seen).

Although this model was the accepted environment for many years, the tide has turned. In fact, the New York Times reported that many top publications like Forbes and Fortune were down over 15%.  Thanks to advances in technology and access to high-speed Internet connections, for the first time in history, consumers have their own far-reaching voice, separate from corporate marketing messages.

For businesses this represents both good and bad news.  The bad news is that the way people buy has changed.  Social media provides such a rich source of information and opinions on any product, business, or service that many can choose to simply ignore advertisements, taglines, and positioning statements.  Even the “expert” review has yielded its authority to peer reviews from fellow consumers.  Forrester Research found that the people who say companies tell the truth in their advertisements has dropped from 13% to 7%.  Today’s consumer is more savvy, research-driven, better educated, and talking to other consumers worldwide to make very informed buying decisions.

The good news is that social media does not discriminate. Businesses have the same access to social media sites, technology, and tactics as the consumer.  This is considerably good news for the small business owner that can’t afford traditional industrial media.  Like many advances brought by the Internet, social media provides a very level playing field.

As many more businesses now come to this realization, many make the fatal assumption that, “All I’ve got to do is learn how to set up a blog, or Twitter account, or Facebook page, then start posting!” While these are absolutely important steps in the process, businesses must first familiarize themselves with the most critical pieces in social media: strategy and conversation.

A typical approach for businesses new to social media is to start selling by broadcasting their marketing message.  Imagine a single male that’s desperate to find a wife, walking into a backyard party and shouting, “Ladies, I’ve arrived! Come over here if you wanna get hitched!”  I bet you’d agree that is not the best strategy.  A solid strategy requires careful thought and planning in consideration of your overall objective, your audience, your audience’s objective, and the specific actions required to get them from where they are to where they need to be.

Because consumers have so much data available upon which to make their buying decisions, a simple one-liner won’t do the job.  Just like making friends at a backyard party, you must master the art of conversation.  People buy from people they like, and today’s Internet technology and online culture allow you to create meaningful connections with others you meet at the online party.  This is the key to social media – creating and taking part in meaningful conversations with others that will lead them to want to do business with you.

Social media CAN BE the answer for your business, provided you recognize it as another valuable tool in your marketing tool bag, create a solid strategy for its implementation, and respect the new buying landscape.

Your average local accountant, barber shop, restaurant, and boutique retailer build much of their business through foot traffic, local advertising, and networking.  Across the board, networking is the biggest and most reliable source – referrals (leveraging someone else’s trusted relationship) and face-to-face interaction (creating a trusted relationship).

The Internet was initially built as a way for education and military institutions to share information with others.  When it became available to business, the same model applied in communicating with customers.  A company would create their website and broadcast their message to whomever found their way to the virtual storefront.

Yet unlike brick-and-mortar storefronts, there was no equivalent method of having a conversation with that customer.  Without a conversation, it was extremely difficult to really connect with people and create those trusted relationships.  Because of that technological limitation, many small businesses simply abandoned or ignored the Internet as a way of generating business.

But the time has now come where technology has caught up to the needs of Main Street, and social media is the prime vehicle.  It no longer relies on the “broadcast” communication style of the old Internet.  It’s even moved beyond mere interactivity.  Social media provides a real way to create that same connection, conversation, and trust that has always made Main Street businesses successful.

At the heart of social media is the customer’s own innate desire to have a trusted relationship.  Spam, banners, email, video ads, et al. have flooded the minds of customers for years.  While they’ve adapted to filter them out as much as they can, new broadcast methods are created every day.  Social media outlets like blogs, YouTube, Twitter, and Facebook give customers a way to find and cultivate those connections, have conversations, and build those relationships.

Any business owner can now go to a site like Twitter, search for people that are talking about their brand, industry, or product, and start conversations with those people.  Note that I didn’t say “start selling”.  Social media conversations are your opportunity to establish yourself as credible, helpful, and valuable.  After that, the selling comes much more easily.  The best part is that because your conversation is public, many others will benefit from your contribution, which helps to grow your popularity naturally and organically (i.e., word of mouth).

I remember years ago I went to a Japanese restaurant and ordered some miso soup.  Normally I eat my soup with a spoon, but this particular restaurant didn’t give me one.  I noticed that no one else got one either.  They only gave us chopsticks.  I like to have my soup while it’s hot.  The waitress was very busy so I couldn’t even get her attention to get me a spoon, and my soup was losing its warmth.  Then I noticed that the other people in the restaurant were enjoying their soup by simply picking up the bowl and drinking from it directly.  Occasionally they would stir the soup with their chopsticks to help cool it down and pick up the little pieces of tofu and seaweed.  While it seemed odd to me, they looked as if it was a natural way for them to have their soup.   With no waitress in sight I picked up my bowl and started drinking.  To my surprise, I really enjoyed it!  It was different, yet I was still able to enjoy my soup while it was hot.  And to this day when I go to a Japanese restaurant, even if they give me a spoon, I still pick up the bowl.

With today’s economic climate, in order for Main Street businesses to thrive (not just survive), they must  be open to new ways of cultivating the same relationships they’re seeking.  No one knows if or when the spoon is going to come.  It’s time to pick up the bowl…