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Social Media and E-Marketplaces

Social Media and E-Marketplaces

By Sabra Easterday

Founder and Managing Member of MatchB2B, LLC

http://www.matchb2b.net - – the global bidding platform for services.

 

To many in business, the rise of social media as an effective business tool might have been easily missed.  A recent study showed that 54% of Fortune 100 companies now have a presence on Twitter and 30% are active on Facebook.  Many of those businesses are extracting very real benefits from using social media.  Like other businesses, E-marketplaces also cannot afford to have only one media (ie. its website) to engage with existing and potential users.  Instead, E-marketplaces need to be where their users are – and right now, that is on social media sites.  In this blog, I discuss (i) on which social media sites E-marketplaces need to have a presence and (ii) how E-marketplaces can use social media as an effective marketing and business tool to extract maximum value.

Which social media sites?

If you run an E-marketplace, you should have a presence on the key social media sites in your region.  Most of those sites are free to join and take minimal time or effort to create a profile and post information.  In the US and Canada, the key social media sites are Facebook, LinkedIn and Twitter.  Facebook now has over 300 million users worldwide, LinkedIn has over 48 million users in 200 countries and Twitter is processing about 1 billion ‘tweets’ per month.  In addition, consider local variants of those.  In Spain, Tuenti has some 6.8 million users; in Germany, StudiVZGroup has about 13.8 million users; and in France, Skyrock dominates with 22.6 million users.  These sites alone present unfathomable potential.  
 
In addition to those key social media sites, there are a host of other social media avenues to consider, such as forums, blogs, industry social networking sites, video sharing sites and business review sites.  Some familiar examples include MySpace, Wikipedia, YouTube, Flickr and Slideshare.  This article on Wikipedia has a fairly comprehensive list of different social media avenues available:  http://en.wikipedia.org/wiki/Social_media

How can your E-marketplace benefit from social media?

Once you choose the right social media avenues for your E-marketplace, you need to use them in a way that maximizes benefit to your business.  Here are a eight ways to get benefit:
 
1. Stake Your Claim
 
As first step, ‘stake your claim’ on the key social media sites.  Simply register and create a simple profile for your E-marketplace.  Most social media sites are free to register on.  The important thing is to avoid what happened to many businesses that were not quick enough to register their domain name after the World Wide Web took off (i.e. they found their domain names were already in use or had to be purchased from domain squatters at high premiums).  
For my E-marketplace, MatchB2B I created a basic Facebook Page,  a company profile on Linkedin and a profile on Twitter – it was free to register on all and it took less than 1.5 hours to register and upload some basic information about my E-marketplace.
 
2. Strengthen Your Brand
 
In addition to ‘staking your claim’, social media can help you build and maintain your E-marketplace’s reputation and brand.  Having a presence on social media sites is similar to having a listing in the Yellow Pages. It increases visibility and brand awareness and helps strengthen credibility, particularly with younger persons.
Facebook is a perfect example.  Although Facebook is a social networking site targeting mainly young individuals, businesses also can create a Facebook Page with information, links to their website, logo, photos and videos, customer reviews etc.  Businesses can collect ‘fans’ on those pages (ie existing and potential customers).  Starbucks has over 6 million ‘fans’ and regularly posts new information and updates.  You can also create a Facebook Page for your E-marketplace and email your existing user-base to see if they want to be ‘fans’.
 
3. Monitor and Manage Your Reputation
 
Social media sites , especially blogs and forums, also can help you monitor and manage your online reputation.  A recent survey by the Opinion Research Corporation reported that 84% of Americans say online reviews influence purchasing decisions.  Accordingly, it is almost critical for the first 10 or 20 search engine results to produce positive, not negative, reviews and feedback about your E-marketplace. 
To help monitor your reputation, you can set up automatic alerts, such as Google Alert or Twitter alerts, to give you metrics and to notify you when your E-marketplace is mentioned in a review, blog, forum or online publication.  If you find negative feedback on a public online forum, respond in a courteous and professional manner.  Show others that you are a company that takes customer concerns seriously and actively addresses them. 
 
4. Strengthen Personal Relationships
 
For many E-marketplaces, your users are companies or organizations.  It is essential to have a strong personal relationship with the individual persons within those companies or organizations who are responsible for choosing to use your E-marketplace.  
Social media can be a very cost effective and efficient way of building those personal one-on-one relationships.  Social media is about engagement and connections, and sites such as Facebook are ‘social’ sites intended for social interaction and discussion.  By using social media sites to interact with others, you are not seen to be affiliated with the specific business transactions that take place on your E-marketplace.  Accordingly, you can build a more personal, non-threatening long-term relationship with those individuals.  Let your employees link with or become ‘friends’ with your users and start engaging in friendly, casual conversations.
 
5. Attract New Members
 
Social media is not about hard selling techniques.  However, the use of social media to help build your brand and reputation certainly will attract new members, albeit, in a more ‘subtle’ way.  Post updates about your E-marketplace, new functions or tools on your site, user comments, industry events, trade shows and other matters of interest.  Social media can be used as a ‘showcase’ for your E-marketplace.  

One way to specifically attract new members is to ‘follow’ somebody on Twitter.  On Twitter, best practice is that you ‘follow’ somebody who is following you.  Therefore, become followers of those persons who would most likely be interested in using your E-marketplace.  Those persons might start following you, in return.  If they don’t, email them and ask them to.  Social media allows you to spread the word about your E-marketplace and hopefully attract new users.  The best situation is if your social media efforts becomes ‘viral’.
 
6. Customer Service Channel
 
Besides attracting new users to your E-marketplace, social media can be a useful customer service channel for your existing users.  Many of your existing users (or their employees) are undoubtedly using social media.  Accordingly, make life easier for them and let them link to your social media profiles so they can interact with you and see your updates when they’re on those sites.  They’ll also see you’re up-to-date and keeping up with the current times.
Interacting with your existing users on social media sites also can help you gain valuable customer insights, in a more friendly, non-transactional environment.  Ask your users what is most important to them, what additional services they want, what functions they most need etc.
 
7. Targeted Promotion
 
Although I have described social media as a ‘subtle’ sales or marketing tool, social media can still be a powerful tool for targeted promotion and marketing.  Users on sites such as Facebook and LinkedIn fill out fairly detailed profiles about themselves which can then be used for demographic targeting of advertisements.  You may be able to identify persons on those sites that have profiles matching with the target regions or industries services by your E-marketplace and send them individual emails.  However, don’t spam, or the social media site will block your account.  You also can pay for advertisements on those social media sites and add keywords and demographic criteria to target those persons who are most likely to be interested in using your E-marketplace.  
 
8. Get and Test Business Ideas
 
Finally, social media can be a great catalyst for fresh thinking about new ideas.  If you’re not sure about a new business idea or about a change to your site, post the idea on blogs or social media sites and solicit insight from others (provided you don’t want to keep it confidential before launch).  Get some ideas or feedback from others.  

We would like to hear from YOU.  If you run an E-marketplace, what has your particular experience been with social media?  Have you extracted any real benefits or value from using social media?  What sort of costs or time have you spent on using social media?

Copyright © 2010.  Sabra Easterday. All rights reserved.

About the Author:  Sabra Easterday is the founder and managing member of MatchB2B, LLC – the global bidding platform for services.  Sabra also is a lawyer with a special interest in business issues and e-marketplaces.  Disclaimer:  Notwithstanding that Sabra Easterday is a lawyer, nothing in this article and no services of MatchB2B or its website are legal services and no attorney-client relationship exists between any reader of this article or user, customer or potential customer of MatchB2B, and MatchB2B or Sabra Easterday.  If you wish to seek any legal advice or services, please seek the advice of your own independent lawyer.

Comments

Claes

12. April 2010

Hi Sabra

Interesting article - I have a question for you. How does social media have an affect on B2B businesses. We are launching a emarketplace for information for a certain b2b how can we best use social media??

Victoria - eMarket Services Project Manager

18. April 2010

Hi Claes,

Thank you for your comment. As you will have read from Sabra's eight points highlighted above, B2B businesses are currently benefiting from social media via: creating and strengthening customer relationships; enhancing company brand & reputation and allowing for targeted promotion and advertising of services, as well as via other methods. In order to assist your emarketplace by highlighting how social media can benefit you, we'd like some additional details about the type of emarketplace that you will be providing? What type of business area will you be operating in?

From the information you provide we will be able to highlight how social media will be of direct benefit to your company.

In any case, it could be useful for you to look what other emarkets are doing, for example, on Facebook. Look at the pages of Alibaba, Indiamart or Hellotrade there.

Jonas Bygdeson

06. May 2010

Hi Sabra,
I am glad to see that eMarket Services is alive and that you take it to new levels with the Social Media perspective.

I took the initiative and started eMarket Services 10 years ago, when I was at the Swedish Trade Council. Cheers to Björn and Viggo!

Jonas

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