Showing posts with label online marketing. Show all posts
Showing posts with label online marketing. Show all posts

Saturday, 3 December 2011

Social Media for Small Business - Is it Worth the Effort?



I have to admit that on a personal level I was a very late adopter of social media. I must have been one of the last of my friends to open a Facebook account and I have all of two followers on my Twitter page which was last updated in 2010! I have never left a review on Tripadvisor (or any review site for that matter) and let's not even talk about Google+, Digg, Reddit and all the other social media tools out there. Who has the time for all that?

But despite my late adoption of social media on a personal level I realized from very early the importance of social media for a business, especially a small hotel with a limited marketing budget. I am sure that most of you have read many an article espousing the benefits of social media and why you should jump on this trend before you get left behind by your trendier competitors. I am not going to do that here, but what I will do is highlight how embracing social media has benefited us at Bay Gardens Resorts.

But first let us start with some of the reasons why many small businesses are still holding out on implementing a properly planned social media strategy:

1. It is just a passing fad - yes, even with 800 million active users, the world's second most visited website (after the online marketing giant, Google) and $4.3 billion in revenue (with $1 billion in profit according to some sources) there are still some who doubt the long term viability of the world's largest social media company (Facebook of course!) and of its potential as a marketing tool. Yes larger companies have failed after initial success, but clearly those who still believe that Facebook is just a passing fad only popular among persons born after 1980 are in the minority.

2. It takes too much time - there are hundreds of social networking sites out there and monitoring and making use of all of them can be daunting. Some claim that monitoring social media is a full time job and in the midst of this Great Recession, small businesses cannot hire additional staff for something as frivolous as social media that will not generate additional revenue. And adding social media to the task list of the few staff who remain after several rounds of lay-offs and cost cutting would just be unfair.

3. You can't control it - its not like traditional marketing where you can control the message. How do you plan for something like that?

4. It won't generate additional profit - and isn't that why we are in business in the first place?

There is some merit to most of these arguments so why jump into this? And successful businesses-people don't like to go into anything half-heartedly. If you can't do it right, don't do it at all!

But here are three of the best reasons (from my perspective) why small businesses (especially hotels) should get started:

1. Be part of the conversation - I am sure that no hotelier reading this would be surprised to know that many studies show that almost of 1 in 3 clients first become aware of their hotel through referrals from friends and family. Referrals and word of mouth advertising has been recognized as one of the most important sources of new and repeat business long before "social media" was even in the dictionary. The difference now is that with social media you (and everyone else) can monitor what others are saying about your brand online. Good and bad experiences are documented in real time on Facebook and Twitter and review sites such as Tripadvisor and Yelp have rendered manual comment cards almost obsolete (though some people still use these so don't throw them out just yet!). Tripadvisor, in particular is probably mentioned at Bay Gardens Resorts by someone on our team at least ten times a day. Did you see what the Johnson family said about us on Tripadvisor? Fantastic! Show it to all the staff! Can you believe that last Tripadvisor review? Completely untrue and off the mark! Must have been written by a competitor or disgruntled employee! And, our General Manager's favourite: We are ranked #2 on Tripadvisor, let's get to #1! Love it or loath it, what guests say about you on Tripadvisor and other social media sites means more to potential clients than anything you put on your website or on a brochure and on television or radio. It has a feeling of authenticity and independence and in this environment where persons have options and limited funds, that means everything. So don't think for a minute that these sites have little or no influence on persons travel plans. They do. So rather than stay on the sidelines, it is best to be part of the conversation and understand that while you can't control it you can turn it to your advantage in many ways. Be proactive in managing your own reputation online!

2. Increase traffic to your website - this does not happen right away, but having an active, consistent presence on the major social media sites will help to drive high quality traffic to your site and will help improve your overall search rankings on Google and Bing as these are certainly seen by the search engines as links from "authoritative sites" (SEO geek-speak that I will discuss in a subsequent blog). It is interesting to note that according to Alexa.com, 3 of the12 largest sites in the world are social media sites: Facebook (#2), Twitter (#9) and Linkedin (#12). Also in the top 12 are sites such as Youtube (#3), Wikipedia (#6) and Blogspot (#7) which are also considered social media in some circles. See http://www.alexa.com/topsites for a full list of the Top 500 Global Sites.

3. Potential to generate sales - believe it or not we have been able to generate a positive ROI from our time and financial commitment to social media and we are able to measure it. It is not going to increase your sales overnight but it is possible to generate exposure from social media which will in turn lead to increased revenue and profits and because of the newness of this medium it is still relatively inexpensive compared to other forms of online and offline advertising. I will discuss this in more detail in a separate post.

There are many other potential benefits as well such as the ability to glean useful information from potential customers in real time on new product ideas, share important news instantly and the ability to gain exposure and brand awareness in a cost effective manner that larger businesses spend millions trying to gain. I always remind our guests that leaving a good review on Tripadvisor helps small businesses like ours who can't afford a prime time ad on CNN to get the word out there.

Now that you are hopefully convinced on the need to make a start, here are a few practical tips from my experience over the last two years:

1. Focus on a few key social media sites - there are so many out there and if you try to focus on too many at once you will become overwhelmed. My advice is to focus on Facebook, Tripadvisor (or if you are not a hotel, restaurant or attraction whatever is the top review site for your industry and your market) and probably Twitter if you have time (if you want to take a shortcut, you can download this app that allows your posts on Facebook to be posted automatically to Twitter http://apps.facebook.com/twitter/). It would not be a bad idea to have a presence on Youtube as well, the world's second largest search engine but I would give priority to the first three first.

2. Setup the right kind of account - several persons set their businesses up as personal profiles with "Friends" on Facebook rather than as a business profile page with "Fans" (or "Likes" as they are now called) on Facebook. I am seeing a lot of restaurants and hotels with hundreds of Friends now having to cancel their profile page and set it up the right way. Better to get it right the first time. See http://www.facebook.com/pages/create.php. If you are looking to set up a profile on Tripadvisor, what you want to do is "claim" your listing as an "owner" so that you can manage it. See http://www.tripadvisor.com/Owners.

3. Be committed and update frequently - it does not have to take a lot of time. But if you don't update your Facebook page at least once a day you will not see your fan base grow and persons will lose interest an "Unlike" your page. One update a day takes a matter of minutes.

4. Don't be overly focused on selling and marketing your product - at least not right away. I have found that our 4900+ Facebook fans are more interested in our "Wacky Wednesday Riddles" or random photos of our garden or cocktails than they are in our latest specials. Build a relationship with your fan base first and they are more likely to respond positively to marketing-related posts. People don't want to feel like they are constantly being marketed to on Facebook. I would say have at least as many (maybe more) "conversational" or "social" posts as "marketing" posts on Facebook and Twitter.

5. Measure your results - don't just set this up and hope that it works. Facebook offers "Insights" that allow you to measure the size of your fan base, how engaged they are, where they are from, gender, age among other interesting stats. Use this as well as Google Analytics to determine how much traffic these various media are sending to your site and whether they are converting into sales. Even Tripadvisor offers analytical reports comparing your review performance to your competition. Read them, understand them and share the results with your team. There are more sophisticated tools out there offered by companies such as Revinate that allow you to monitor all social media sites at once and this provides a wealth of data but I would not advise such tools starting off.

6. Get your team involved - I started off doing 90% of the updates on my own but when you are a GM, owner or director in a business beyond a certain size, you have to delegate this. Within a few months I had handed control over to staff in the marketing department who were younger (I am only 30 and already getting obsolete!) and more, let's say "social" (pardon the obvious pun) than myself and the results were remarkable! I still monitor daily, assist and provide guidance but management of our Facebook and Twitter pages and responding to reviews on Tripadvisor is no longer solely my responsibility and the diversity is good for the medium. But even here rules and guidelines apply and be careful that the person who is responsible for this has appropriate knowledge of the business and writing skills. Even on Facebook and Twitter grammar and spelling mistakes are frowned upon when coming from a company!

I will be going into more depth in future posts on how we have been able to monetize our time and financial investment in Facebook and other social media tools but suffice it to say that we have been very satisfied with the results so far. Referrals from Facebook and Tripadvisor make up a substantial portion of our site traffic and thus account for a decent portion of our online bookings as well as bookings made offline.

Social media represents one of the best marketing opportunities for small businesses. Embrace this tool and "Friend" it. You won't regret it.

Monday, 21 November 2011

About Me – Not your typical internet marketer


Hi there!
Thanks for visiting my blog. I certainly don't consider myself to be a traditional online marketer. I am an accounting and finance person by profession who after 4 years of working on Bay Street (Toronto’s version of Wall Street) decided that it was time to come back home to my lovely island of St. Lucia and help take my family business Bay Gardens Resorts to the next level.
Bay Gardens Resorts is a highly successful, locally owned hotel chain consisting of 3 hotels totalling 195 rooms in Rodney Bay Village, St. Lucia’s entertainment capital. But maintaining such high year round occupancy and profitability in the face of the Great Recession is not easy and we have been just as affected by the tough economic times as anyone else. 
With my background as a Chartered Accountant (CA) and Chartered Financial Analyst (CFA) everyone on the Board and in management assumed that I would focus on internal controls, accounting, banking, balance sheet reconciliations etc (you know the stimulating stuff that I got my formal training in). And I have done a lot of that, but what nobody bargained on was the amount of my own time that would be spent on internet and social media marketing and business development.
It might seem strange that an accountant would develop such expertise but it actually makes perfect sense. I’m a business person first and foremost and my accounting and finance background means that I understand return on investment. No matter how you look at it all marketing dollars spent are meant to generate additional profit (not just revenue but incremental profit margins over and above the cost of the marketing itself). Yes, sometimes it is difficult to measure the ROI from certain types of marketing (PR, TV ads etc) but no hotelier would spend good money on any of this if they did not think it would benefit their bottom line in some way.
Internet Marketing – Great ROI for Small Hotels
That’s what I love about internet marketing. It is so much easier to measure your ROI. When you place an ad in a magazine or in a tour operator’s brochure don’t you wonder how many persons actually read and respond to these advertisements and actually make a booking? It is not impossible to measure the response to these types of ads but it is really tough. With internet marketing it is much easier to measure your return on investment. I know how many persons visit my website from a Facebook or Google Adwords campaign and furthermore I know how much revenue is generated from it. I can even tell you which city generates the most revenue from my online marketing activities and what room category persons from a particular zip code booked most often.
I think that the internet provides an excellent medium for small, independent hotels in smaller markets (such as the Caribbean) to gain amazing exposure to a variety of markets that are prohibitively expensive to break into via traditional marketing methods (TV, print, radio). Best of all I have seen it first hand from the perspective of an owner/manager who is not an internet marketing guru. And because of my financial background I can speak first hand of the financial impact that our increased focus on online marketing has had on our bottom line at Bay Gardens Resorts in terms of increased occupancy and ADR and better ROI on marketing spend.
Internet Marketing – Not just for “techies” and “gurus”!
There are a lot of so-called internet marketing experts out there and they charge anything from $100 – $200 US per hour and up to do things that you can honestly do on your own. Some of the things that I manage in house (with the assistance of my talented marketing department) include:
1. Set up and management of various social media accounts (Facebook, Twitter, Linkedin Youtube) and advertising through these media. We have perhaps the most active hotel Facebook page on island (www.facebook.com/baygardensresorts) with 4000+ fans and counting.
2. Set up and management of various pay per click campaigns including Google Adwords, Yahoo/Bing, Bookingbuddy, Travelzoo, Kayak, Expedia among others. 
3. Limited search engine optimization (SEO) – we did outsource some of the more complicated functions but the basics were done (and is still being done) in house
4. Email marketing using Constant Contact - great tool that is really easy to use and affordable.
And much, much more on top of my other functions in accounting, finance and general operational management.
My goal with this blog is to empower independent-minded owners, general managers and marketing managers with information that I have gathered through experience with a variety of internet marketing methods. I am also hoping to get ideas from you about some of your own experiences with internet marketing as well as hospitality management overall.
Happy reading!
Sanovnik Destang, CA, CFA, Google Adwords Qualified Individual
Assistant Managing Director, Bay Gardens Resorts
Board Member, St. Lucia Hotel and Tourism Association (SLHTA)

Hotel Internet Marketing Tip – Getting Started with Google Analytics


When I first got introduced to Google Analytics (thanks Keitha!), I was like a kid in a candy store. Here was this free tool that allowed me to know exactly where my website traffic was coming from, what online marketing campaigns were working and which were not, which zip codes were generating the most traffic etc. A treasure trove of information!
Getting introduced to this tool is what got me hooked on internet marketing. But let’s back up a bit. What is Google Analytics and why do I care as a hotel/business owner or general manager?
Google Analytics is a free tool offered by Google that gives you deep insight into how your website is performing. You can sign up for an account here so long as you have a Google Account (does not have to be a gmail account). http://www.google.com/analytics/.
Setting up an account is extremely easy. The only aspect of it that is a little “technical” is adding some javascript code to your website. This code is automatically generated by Google Analytics when you are setting up the account so all you have to do is copy and paste this code onto every page that you want to track immediately before the closing </head> tag. If you are like me and your HTML knowledge is limited to one chapter in one university IT course 10 years ago, then you can have your webmaster do this for you. If they charge you for this make sure they charge you for no more than 15 minutes of their time as this is about how long it takes.
If you want a step by step guide on how to set up Google Analytics on your website, this article is really helpful. http://knol.google.com/k/how-to-install-google-analytics-in-5-minutes-or-less#
That’s it! Within 24 hours or less your Google Analytics account should be activated and you will start to get extremely useful, detailed information on your website visitors including:
1. Traffic Sources – how do potential customers get to your site? Is it through search engines, referrals from other websites or through a bookmark (direct traffic). This is a great way to find out which online marketing campaigns are actually working.
2. Visitors – demographic information on your visitors, detailed down to the city. These reports also provide information on how engaged website visitors are (how much time did they spend on your site, how many pages did they visit), which web browsers they were using, even the speed of their internet connection.
3. Conversions – if you have a booking engine on your website this is absolutely critical. Where do your bookings come from? What country/region/city? Through which referral sites or search engines? Google Analytics can help you determine this in most cases. If you don’t have a booking engine on your website, Google Analytics can still help your track important site visitor activities (conversions) that you consider important such as signing up for your newsletter, filling out an inquiry form or watching a promotional video.
One article cannot possibly capture the full potential of Google Analytics and its importance to hoteliers but I hope that this helps you to get the ball rolling. Using this tool is an important first step in fine-tuning your marketing strategy both on and offline.