BCA

36% of small businesses look to step up with Twitter and Facebook.

Small businesses are confident about their ability to weather the recession, with more than one-half saying they have either fully recovered or will do so by the end of 2010, and nearly three-quarters claiming they will drive recovery in the overall economy, according to the “Third Annual FedEx Office Signs of the Times Small Business Survey” from FedEx Office and Ketchum.

To that end, almost two in five small-business owners reported they would be growing their businesses with social media sites such as Twitter, Facebook and LinkedIn. That was up from less than one-quarter who planned to up their game with social in 2009 and made social media the only tactic to increase in importance since last year.

About 42% of small-business owners said they would increase spending on advertising and marketing this year overall.

“Small businesses are definitely getting it right when it comes to identifying and investing in the tools that will help them bounce back from a difficult period,” said Randy Scarborough, vice president of marketing for FedEx Office, in a statement.

E-mail marketing solutions firm Constant Contact likewise found small businesses optimistic about their economic prospects in 2010, with 70% expecting to grow this year. Website and e-mail marketing were a bigger priority than social media, but Facebook was considered important by more than one-half of respondents.

More than one-quarter said blogs, LinkedIn and Twitter were other key tools for marketing their business.

For complete data charts and story, go to e-marketer.com

iPhone, Blackberry and Android details sketchy

By John Riley

Excitement is already building for the new iPhone 4G and signs suggest it will be unveiled June 21 following the Apple Worldwide Developers Conference. RIM has said they will be releasing their Blackberry 6 operating system in the 3rd quarter with a new user interface and WebKit browser, but it may be fall before they release a new phone. Meanwhile, Sprint will be announcing the new HTC Evo 4G this summer, reportedly the premium Android phone.

All U.S. carriers now have phones with the Android operating system. T-Mobile and Verizon are already promoting it as their flagship smartphone. This week, a more advanced Android version, 2.2 Froyo, was officially announced and the big question is whether existing Android phones will receive the update. HTC has said they will. A staggered roll out with the Nextus One smartphone has already been announced, but other Android phones will probably not receive the upgrade as quickly.

Android 2.2 Froyo will have faster speed, better browser performance, sound alert when the battery is low and several smaller improvements. Since January 2009, Android is second only to Blackberry in the percent of Smartphone Operating Systems Unit Share. Apple’s OS X is third.

Lost iPhone reveals new design

When an Apple employee accidently left a prototype of the new iPhone in a bar last month, the finder sold it to the Gizmodo.com blog who disassembled and reported on it in detail. From this story, I learned the design is very different from what came before. For example, it will have a front facing video chat camera, a camera flash and improved display. The back is entirely flat and has an aluminum border going completely around the outside. The screen is smaller and the battery is larger. It also has a new operating system (4.0). Finally, the phone has a Micro-SIM rather than SIM, which is a strong indication it is a new generation device.

The Blackberry 6 operating system most likely will be used to catch up with some of the slick features already offered by some of it’s competitors, specifically gigabytes more memory, flashy software, improved browser, and faster processors. Historically, most of Rim’s revenue has come from high-end devices. Now, the lag in adding features raises a question of RIM’s strategy in that the company could see greater revenue in the lower-end mass market than in the high-end smartphone.

Yet, in the fourth quarter 2009, Nielsen pointed out only 21 percent of American wireless subscribers were using a smartphone which leaves nearly 80 percent of the market open to upgrading. That seems a likely outcome as Nielsen also noted 45 percent of respondents said the next phone they buy will be a smartphone.

Bandwidth hogs may pay more

As the new generation of smartphones make their way to the market, another development seems certain to join the fray. Smartphones are bandwidth hogs and standard cell phone owners are subsidizing them by paying the same rates. Carriers are not immune from the problem because their data traffic has become clogged. This has led Verizon and AT & T to consider setting up a tiered pricing system rather than the flat-based usage now in effect.
Whether a usage based plan or a tiered plan, the result could be a cheaper monthly bill for the cell phone customer because the smartphone owner will pay more as carriers try to free up more bandwidth.

I have not been able to find any information about pricing. Whether these new technical marvels will command a higher price than current models is uncertain. However, new technology tends to be accompanied by premium prices. Stay tuned.

But financial services firms must effectively market value, convenience and security

For consumers, mobile banking is about convenience: the ability to check account balances, pay bills and transfer funds from a device they take with them everywhere. For financial institutions, it is a means to deepen customer relationships, streamline operations and cut costs.

Several forecasts predict that by 2015, 50% or more of US mobile users will be conducting transactions from their mobile devices.

“The ubiquity of these devices offers banks an opportunity to connect with customers outside the online channel, including those who are always on the go as well as the underbanked and unbanked consumers who lack consistent Internet access,” said Noah Elkin, eMarketer senior analyst and author of the new report “Mobile Banking: Financial Services Firms Look to Cash In.”

Estimates of mobile banking adoption vary widely, although it appears to be growing at a good pace. For example, studies conducted in 2009 by Mercatus, Mintel Comperemedia and Experian Simmons put the usage rate between 7% and 11%.

However, in a January 2010 survey by Luth Research for the Mobile Marketing Association, mobile banking usage was 17% among the overall US population and 19% among mobile phone users. A March 2010 study by OnePoll for mobile billing and message delivery firm mBlox uncovered a 25% usage rate among US mobile phone users.

Research among smartphone users reveals much more extensive mobile banking adoption. Data Innovation’s January 2010 “Mobile Money Study” found that nearly 70% of smartphone users had accessed mobile banking, payment or financial services in the past three months.

“Smartphone users are more likely to engage with a bank’s Website or mobile application, but it is important to provide services, such as SMS banking, that engage the larger population of non-smartphone users,” said Mr. Elkin. “SMS reaches a wider audience than the mobile Web or applications, including the significant number of mobile users who have yet to trade up to smartphones.”

For complete data tables to e-marketer.com
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Missed opportunities for some marketers

From e-Marketer.com

Despite social media marketing’s popularity, business-to-business (B2B) companies are still fairly new to it. According to a survey from Business.com, 73% of B2B respondents have less than two years of social media marketing experience.

March 2010 research from marketing automation firm Genius.com and BtoB magazine found that about one-half of business-oriented marketers are staying away from social tools such as blogging and Twitter. Facebook was more popular, with nearly three-fifths participating, and business-focused social network LinkedIn was used by three-quarters of B2B marketers.

Both business-oriented social networks and general social networks offer B2B companies a variety of opportunities. They can improve communication between customers, prospects and suppliers; aid collaboration between business partners; help with product development; and identify leads.

B2B companies also have an advantage when using social media because they tend to focus on goals and results, such as leads, that visibly affect their bottom line. Business.com found in 2009 that those B2B marketers who do use social media tend to do so more extensively than their business-to-consumer counterparts.

Those with at least one profile were more likely to manage a presence on several sites than the general B2B respondents to the Genius.com survey, and were more likely than B2C companies to measure their social success.

“While recent studies have shown that up to 90 percent of consumers are using social media to make their purchasing decisions, B2B marketers seem to be out of step and are using these tools much less frequently,” said the Genius.com report.

How your employees can make—or break—a brand relationship

By Roland Smith

With today’s stale job market limiting employees’ mobility, executives have a unique opportunity to boost the motivation and productivity of their top talent without spending lots of money. Unfortunately, many companies are missing the mark – especially when it comes to managing their emerging leaders, or “high potentials.” Here are the five biggest mistakes companies are making with high-potential talent:

.1. Ignoring the view from the pipeline. This is the first big mistake – and it fuels the others. Talent managers and executives tend to discuss the leadership pipeline as if it is theirs to define and control. But talented people inside the leadership pipeline bring their perspectives and experiences to the process. Do you know what they think? Have you asked what they want? Are expectations on both sides understood? Is your relationship with your talent transactional or a mutual and reciprocal relationship?

High-potential talent can always go somewhere else. Center for Creative Leadership research shows that even though 95 percent of high potentials say they are committed to their organizations, 21 percent are still actively looking for another job. In a down economy, they are weighing trade-offs. On the plus side: staying in their current role means greater responsibility, highly visible assignments, good money in a recession. On the negative side: brutal hours, no support from senior team, uncertainty as to what’s next. If you could move “senior team support” to the pro column, for example, you’ve boosted your chances of retaining a valued employee.

2. Treating all high potentials the same. If you aren’t considering the view from the pipeline, chances are you have a one-size-fits-all approach to dealing with top talent. High potentials expect (and usually get) greater visibility and access to senior managers, special assignments and training, and greater responsibility. But they also want some say in how these perks and assignments play out. If relocating every few years is the primary way for high potentials to increase their value, you automatically lose when a manager needs to stay put for a spouse’s career or family commitments. Don’t wait to find this out during an exit interview. Have “stay conversations” with your top talent before it’s too late.

3. Leaving high-potentials on their own. It’s a mistake to give high potentials free rein to direct their careers. While they want to influence their direction, they are also more committed and engaged when they have a clear career path. High potentials want to know what the next steps are in terms of development, experience and movement. Plus, companies need to be sure the talent they have is the talent they need and that it’s deployed well. You need to intervene, redirect or coach if a high potential is staying in a position too long, not building needed skills, or is in danger of derailing (and yes, high potentials can derail).

4. Not using high-potentials to develop others. While high potentials receive increased opportunities and investment, they are also powerful talent developers in the organization. They have insight and experience needed for developing the next layer of high potentials as well as the larger talent pool. To multiply the impact of your top talent, train them to coach others and have effective developmental conversations. You should not only hold them accountable for doing it, you should reward them as well.

5. Being unclear about high-potential status. Using your high potentials well means knowing who they are – and ensuring they know it, too. Organizations that do not formally identify their top talent (or keep it under wraps) are undermining their performance – and run the risk of losing valuable people. CCL research found that formal identification as a high potential is important to 77 percent of managers. Not being formally identified as a high potential keeps the door open for doubt, lessens engagement and weakens commitment. Only 14 percent of formally identified high potentials are seeking other employment. That figure jumps to 33 percent for employees who are informally identified as high potentials.

Loyalty may be dead – for both employers and employees. The best strategy for growing and maintaining top talent in today’s workplace is to understand it’s all about mutuality and reciprocity. When you think about your talent from their point of view, the relationship becomes less transactional – and organizations and high potentials will benefit.

Printed with permission of Center for Creative Leadership

About the Author
Roland Smith is a senior faculty member at the Center for Creative Leadership, a Greensboro, N.C.-based provider of leadership education to companies, government agencies, nonprofits and educational institutions.

By John Riley

Recently, I was invited to lunch at a Business Clubs America luncheon where the speakers were owners of a successful jet-management company. It was the usual business luncheon where invited speakers recount their experiences in building successful enterprises. But it didn’t turn out that way.

When the CEO rose to speak, I quickly noted he was a well-built, robust looking 45-year old whose commanding presence told you he was an executive. Instead, Scott Bolzan was a man whose life literally began a little over a year ago because his former life was completely erased from his memory. On that fateful day in December 2008, he walked into the bathroom of his office, slipped and fell striking his head. With that fall went his knowledge of his former life.

When he awoke in the hospital, there was no memory of his school days, his college education, his pro football career or his wife, Joan and daughter or the business he built. Doctors diagnosed his problem as profound retrograde amnesia and historical and autobiographical amnesia.

Doctors expected his memory to return so he was released three days later. The thinking was that being in familiar surroundings would help him recover faster. His short term memory was fine. Now, nearly a year and half later, the only memory he has is what he has learned from his wife and friends. Joan told herself the business was dormant, but Scott would be back.

With a succession plan, the business could have continued to prosper

No one could have foreseen what happened to Scott. So his business suffered. Had there been a succession plan, the business may have continued to prosper. Too many companies fail to devote time to designating potential successors for their key executives and consider it a risk worth taking.

Owners and CEO’s themselves can be a big part of the reason because:
1) They feel indestructible
2) They don’t want to be replaced prematurely by a potential successor
3) They don’t want to share power
4) They feel there isn’t anyone that can replace them
5) They want to wait until they decide to retire and then worry about a successor based on the circumstances at the time.

Establishing a succession plan is usually a Board imposed process. Larger companies usually have succession plans that will go down several layers in the management structure where they identify three or four candidates to replace the incumbent for each position. It’s a dynamic process and the plan is reviewed and updated each year.

A combination of top operating executives and an HR executive constitute the personnel selection committee.

Personal development is a key component of the planning

One of the outputs of the committee is a personnel development component. Fast trackers are identified and gaps in their training or experience are identified. Subsequent assignments are decided upon to give those individuals the training or experience they need to prepare them for greater responsibilities. Each assignment is a test whose outcome will help determine the individuals’ future career path.

Scott’s experience is not unique in corporate America. Anyone who follows business can recall some top executive whose health unexpectedly intervened to temporarily or permanently remove him or her from active duty; Steve Jobs at Apple is a well known example.

For the health of the company, succession planning is an essential diagnostic tool.

Marketing budgets are starting to rise in the US, but changing consumer habits and preferences mean new processes are required to measure return on investment accurately.

In a survey of leading executives conducted in February this year, Forrester, the research firm, found that 37% of participants were planning to boost their spending levels this year. A further 35% of the sample expected to maintain their communications expenditure in line with 2009, while 27% had experienced a reduction in funding over the same period.

More broadly, Forrester suggested that the main challenge facing brand owners at present was not determining their overall adspend levels, but allocating resources in the most effective way.

Increased collaboration is necessary

The shift to digital platforms and other types of emerging technology is also requiring increased collaboration between marketing, IT, and finance departments. As such, companies need to ensure they invest in the latest tools allowing for “media mix optimization” to replace out-dated systems which were put in place prior to the digital age, Forrester said. Procter and Gamble, General Mills, and other FMCG manufacturers originally pioneered this approach, which then spread to almost every major product category during the last decade.

However, the explosion of social media and the rise of mobile devices such as smartphones had provided another major “input” which now must be considered. More specifically, one key metric which should be attracting the attention of marketers is Customer Lifetime Value, or the revenues generated over the typical duration of a brand’s relationship with an individual customer. This is often separate from a customer’s Brand Value, as typically ascertained by a range of more traditional metrics.

While the advent of new software should allow more accurate tracking in all of these areas, it is incumbent on industry professionals to ensure they drive this success.

“The idea of doing more with less is now a long-term business strategy versus a short-term mandate.” according to Chad Mitchell, an analyst at Forrester.

From World Advertising Research Center