Thursday 9 June 2011

Is Twitter For Losers?


Have re-issued this article (by request) as SYB Magazine link isn't always working




IS TWITTER FOR LOSERS?

In the new era of social networking, is Twitter really for losers? Or a way forward for business marketing? Robert Craven explores the “Twitter revolution” and whether its benefits reach out to the world of business.


A recent blog of mine about social networking got the comment “only fools don’t get the Twitter revolution”.



For the uninitiated, Twitter is a text messaging system but over the internet. People can subscribe to your Twitter account. They can receive your text, and follow whatever you want to say. (“So what!” I hear you say.)


Ten minutes later someone sent me the inflammatory “Twitter is for losers” comment. So, what’s going on? Is Twitter a licence to print money? Clearly not.


Some people make money from talking about it; some people claim to make money by using it; some people just enjoy using it. It appears that the majority of traffic is not dissimilar to the Facebook noise, only shorter and more regular. Plenty of people seem to tweet their followers several times a day. (“Who cares?” I hear you say.)


Facebook and Twitter are known as social networking where the emphasis is on the social bit. I have no problem with that.



There is no shortage of media to make contact (websites, blogs, Facebook, LinkedIn, Twitter, networking meetings) and Twitter is simply another way. Some people love it because it is instant, quick and easy. And some people hate it because it is banal, shallow and simply noise.The answer is somewhere in the middle.


Nothing will ever replace the intimacy and contact of a face-to-face meeting. Twitter does let you into other people’s worlds if you wish to follow them.


Some people are great to follow and some are dreadful. 20 minutes of following various Tweets is like 20 minutes in the world of Google – you find all kinds of fascinating stuff, and the not so fascinating.


So how do we put together the business case for using or not using Twitter? Like any marketing activity, the key to deciding if its worth it is in the measurement.


Marketing is all about creating a compelling offer, deciding who you are trying to attract and finding the best ways to reach those people and sell your product. It is easy to be busy or active; it is much harder to actually make sales.



At its simplest level, the measure of any marketing device is the average cost (in time and money) to attract one new customer. For the sake of this discussion let’s go for this brutal ‘Return on Investment’ criterion.



So now for the GCSE-type Maths

Question:
If Jeremy spends, say, half an hour a day twittering and his time is valued at £40 per hour... And he gets one new client every month from this Twitter activity, then how much does it cost to acquire one new client (via Twitter).



Answer: He has spent 2½ hours per week twittering; he gets one new client every four weeks. It costs Jeremy £400 in time to win one new client (excluding any other costs).


Jeremy should then compare this cost of customer acquisition against all other means.



The reality is that it is harder to measure the effectiveness than in our crude example.



However, the principle stands. Before you go mad on Twitter ask yourself the following:
• Who is your target customer?
• What is the best way to reach them?
• How much time and money on average would it cost to acquire one new customer?
• What is the most effective way of reaching these people?
• Is it word-of-mouth, networking, exhibition stands, direct mail, PR, telesales or any of the other ‘channels to market’?


Yes, Twitter is today’s new marketing device but does it actually work?


FACT:
Lots of people do it and they believe it is doing them good.
FACT: Some people seem to actually be benefiting in terms of ROI.



Question:
Is it right for you? Will it help you grow your business?

Answer:
If someone can show you why you should be doing it then you should sign up. Do you hear clients or prospects asking you to get a Twitter account ASAP (or rather only a few Twitter fans)?



Question: Do the Twitter conversations strengthen a relationship any more than a decent blog/website or actually talking to people?

Answer:
Maybe I am old fashioned but I do not wish to confuse activity with business.



A focused Twitter account may be good for regular updates in products/services with more than one field, for example in training. Twitter could then be used to communicate updates if that’s what your target audience wants (or you could just use email!).



Playing the devil’s advocate, if the medical evidence of the effectiveness of a heart op was as vague and non-specific as the business case for Twitter, then I don't think I'd sign up for it.



Twitter will help you find people to listen to and talk to. Are they the right people for you? Is Twitter just another case of the emperor’s new clothes? Twitter me at twitter.com/robert_craven! The business sales will determine it for me.






PS You might want to guess the date of the original article...

24 comments:

Chris Witham said...

If the recent announcements by Apple are anything to go by they seem to think Twitter has a very bright future!
http://mashable.com/2011/06/07/apple-twitter-ios5/

Eddie said...

Point is - you can post a message at anytime , like sitting on a train or waiting at bus stop . Time that you probably wouldnt cost at £40. So the possible new lead , or important bit of info hasnt really cost you anything , it is a bonus . The losers are the ones who are missing a simple opportunity.

Robert Craven said...

The return on ivestment, the old 'adding value/sales' argument normally comes up at about this point...

RC

Robert Craven said...

You might wish to try and date the original article...

Chris Hallett said...

Another Gem From Robert:
I've got 2000 folloowers on twitter; has it generated any business? No. Have I stopped Tweeting? Yes. Are my followers relevant to by business? Don't know at the moment.

I think Roberts spot on, are busy working on the right things, and is it bringing any sort of return?

The other, bigger question is, how time is wasted dsorting through the dross

Chris

Robert Craven said...

yes, none of us want to be busy fools...

Benjamin said...

Quite rightly you challenge the 'does it actually work' question. For me I can categorically say that it does and I can cite clients who found me via Twitter. It is not a sales vehicle but it does get you in conversation with people who you might not have come across

Tony said...

It is not and nver will be anything perfect - but for some ir treally does do the job

Sara said...

We have been using twitter for over 2 years and it has had a great impact on our business:

1. You can use platforms like Tweetdeck to schedule tweets and to remove the dross by following the conversations only of prospects or clients, so that you can make sure you are interacting with them.

2. We have tripled attendance at networking events

3. I walked in cold to a business, and got no where. A few weeks ago, that business phoned me asking how they could be a client because they had seen my activity on twitter.

4 If you are targetting a prospect and they are on twitter, it is easier to start a personal conversation which can then lead to business, than if you tried to cold call them.

5. I keep in touch with clients - knowing what is happening in their personal life helps me know when to contact them in a business capacity. Also they become more like friends.

6. I have been contacted by the media because they have seen that I'm influential on twitter.

7. Anyone who is just using twitter to send out their sales message won't get very far. It's about the conversations/ getting to know people.

8. I follow mainly local people because that is the focus of my business and it feels like you are very much part of a local community. We all meet up in real life as well as chat on twitter.

9. I see clients getting business from my twitter stream - we tweet our clients' special offers in between our personal chat, and I see people saying "I used that voucher" or "I made an appointment". It's great that clients and my prospects can see business actually happening.

Bryony Thomas said...

I've been using Twitter for about 3 years now. I probably spend about 10-20 mins a day on there. As Eddie said below, this is time that might previously have been less productively used - like over breakfast, on a train, when waiting for meeting, etc.

Across Twitter and Linkedin I can account for over £550k of business where the leads started in the social media context. Naturally, this then moves into real conversations, meetings, etc. to close - but I would not have found the lead had I not been active in social media.

I'd also say that Twitter is fantastic at keeping in touch and nurturing relationships, as well as a handy research tool. I wrote this post on 3 ways we use Twitter as a business tool over a year ago - and I stand by every word:  http://www.clear-thought.co.uk/in_thought/art/41/twitter-as-a-business-tool/

Robert Craven said...

Message form Sara (that the system didn't put up!)

We have been using twitter for over 2 years and it has had a great impact on
our business:

1. You can use platforms like Tweetdeck to schedule tweets and to remove the
dross by following the conversations only of prospects or clients, so that you
can make sure you are interacting with them.

2. We have tripled attendance at networking events

3. I walked in cold to a business, and got no where. A few weeks ago, that
business phoned me asking how they could be a client because they had seen my
activity on twitter.

4 If you are targetting a prospect and they are on twitter, it is easier to
start a personal conversation which can then lead to business, than if you
tried to cold call them.

5. I keep in touch with clients - knowing what is happening in their personal
life helps me know when to contact them in a business capacity. Also they
become more like friends.

6. I have been contacted by the media because they have seen that I'm
influential on twitter.

7. Anyone who is just using twitter to send out their sales message won't get
very far. It's about the conversations/ getting to know people.

8. I follow mainly local people because that is the focus of my business and it
feels like you are very much part of a local community. We all meet up in real
life as well as chat on twitter.

9. I see clients getting business from my twitter stream - we tweet our clients'
special offers in between our personal chat, and I see people saying "I
used that voucher" or "I made an appointment". It's great that
clients and my prospects can see business actually happening.

Julian Summerhayes said...

Twitter works on many, many levels. It's a choice for people whether to engage. It isn't compulsory. But if you do decide to leap aboard you need to have something compelling to say. If all you do is sit there and tell me about you or product and don't think how you can add value to their lives then forget it.

J,

Robert Craven said...

from ecademy:
Is Twitter For Losers?
Like (2) by Andy Poulton on 15-Jun-11 11:34am : MessageI've
been reading a variety of articles about a small [10 room] family run
Oxfordshire Hotel. The proprietor, Anthony Lloyd brought in £100k of
business last year, employed 4 staff, had 2 reviews published in
national media [Guardian and Marie Claire] and was in his local media
[print and broadcast] about 5-6 times each and he puts all of this down
to his activity on Twitter.

Robert Craven said...

also at BusinessZone:
Not just 'big business' that doesn't understand


 In my experience, government doesn't understand the thousands of
one or two person businesses either, judging by the rediculous number
of hoops we are supposed to jump through and irrelevant question we have
to answer/have policies for before we can even bid for public sector
contracts. I don't have an environmental policy, a maternity/paternity
policy (I've had my kids), a disciplinary procedure, and I don't need to
monitor the race, sex or faith of my employees (I know what I am and
what do and do not believe) because my business is just me,
with ad-hoc support from other people in exactly the same position! The
point about the fact that we do not purchase (or sell) the same way as
large businesses really hit home.



S Webb

Power Hour

Robert Craven said...

Is Twitter For Losers?


Robert,


 


I think for many people, time spent on Twitter is time
completely wasted. It can work, but my experience of finding case studies of
business success is that it is only working for a few people right now. Alas,
many offering advice on how to use it are compounding the time wasted.


 


Nonetheless, it can be a great tool, but having a
strategy, and monitoring time spent versus results obtained is hugely
important.


 


Best wishes


 


Alan


 


 


Alan Stevens, President, Global Speakers Federation,
2010-2011

Robert Craven said...

Is Twitter For Losers?


There's always a risk that when you shout into a crowd of
assuming that they are a) listening and b) interested.


 


The chances are that in the average neither is true.


 


There's also a risk that people will read the tweets on a
twitter client, but then I read most of twitter from software that converts it
to a magazine. I'm listening to those who make the magazine (Flipboard on iPAd,
Paper.li elsewhere). Are you on the lists that I read regularly, how could you
know.


 


The point, consumers consume in ways we cannot predict,
producers produce for the audience they have, without always checking it’s the
audience they want.


 


You can waste time or build business, if you want to do
that latter, you need to really get under the skin of what's happening.
Otherwise you sit on one of the groups Robert so ably identifies that won't get
long term value.


 


 


William Buist


Ecademy,

Robert Craven said...

from ecademy.com



I'm right behind you on this Robert.


Or am I in front?


My article in December 2008 about Why accountants don't
NEED to be on twitter makes many of the same points.  It's been criticised by some twitter fans who
think I'm anti twitter. Far from it. I'm more active there now than ever, but
I'm not an accountant in practice and that was the audience for my article....


 


Mark Lee FCA CTA (Fellow)

Robert Craven said...

ecademy.com



Doesn't it also depend on what you do and the kinds of
social media that are used by the potential clients? In my case, i tend to get
more people calling me up saying that they saw me on youtube rather then
twitter. I guess that youtube is a better platform for my style of work
(entertainment) than lets say, accountancy or hospitality industries.


 


 


 


 


 


 


Nick Dutch Tarot Entertainer  

Richard Vanbergen said...

Twitter works when you have something new to say every time you tweet. I delete those that constantly repeat their messages. It a new phenomana, will it last?, it depends on how much cash they have until it runs out. Follow me on @bizincambs, alak alas another opportunity..........
Great site Robert

Robert Craven said...

Cheers Richard

Eric Sutherland said...

Twitter is a bit like a TV add - if you don't happen to be watching at the time you probably won't see it. If you follow lots of tweets, then when you log in you just see the latest page and would have to scroll down to see more. If you follow a lot of people that could be loads.
So sticking up an obvious sales message is just going to be ignored, as are most tv adds these days - anyone else just prerecord and fast forward through the adds?
(Mind you, if we just fastforward, are we creating subliminal advertising that we stare at because we are waiting to press the play buttone again?)
Of course, you could go to their twitter page, but then you could just as easily go to their website or blog - or am I missing something?
And before everyone thinks I am a twitter hater:
#TheCelticCoach

Robert Craven said...

Thanks for your comment. I think the social media gurus would argue that there is more to it!
RC

Laurie Bernard said...

Common sense at last, above the social media hype! It is just another tool for marketeers to use.  It can be an effective part of an integrated marketing strategy if appropriate and provides RIO.

Robert Craven said...

See Mike Morrison's 'Is Twitter a Waste of Time?' at Ecademy
http://www.ecademy.com/node.php?id=174602