Don't build your own social network

The worst thing you can do is to build your own Facebook. We occasionally get requests from companies that want to engage with their customers by building a social network so their customers can interact with each other. While this may seem like a good idea, it is really, really difficult to do well. Most people will be wary of 'yet another social network' they need to participate in, and to make it successful you need a viral effect; people need to invite their friends. To do this successfully on a relatively small scale is very, very hard. (Our job, building it for you, is peanuts compared to how difficult it would be for you to make it successful.)

Instead, try to connect with existing social networks. Depending on your target audience, you may want to build a Facebook app or a LinkedIn app, or alternatively you can integrate things like Facebook directly in your website. Recently I've seen a nice example on Spacevidcast.com, where you can watch live footage from NASA combined with a live chat with your Facebook friends. This gives the site a social edge, without Spacevidcast.com having to invest in their own social network.

Engage with your audience

A part of your social media expenditure should not go into technology, but in using social media to engage with your audience. This could range from monitoring Twitter for comments on your products and services and responding to them, to hiring a community manager to build a user community on the web for you. Community managers typically search for places where your products and services are discussed, and engage in open discussions with those that comment. This creates customer loyalty; people value companies that are open in their communications and that respond to their complaints. Last week I attended a presentation from Dutch social media expert Petra de Boevere, who mentioned that when she complained about a particular campaign by Ford (claiming Ford Transit cars were only suitable for men), she was contacted by Ford people who gave her a 2 week test drive in a car and a big discount. Her negative comment on Ford's campaign turned into a series of posts on her blog and, after the media caught her story, into positive publicity for Ford.

While social media engagement is more about communication than about technology, technology can play a role. It can help you find people that are talking about you, and can help getting engaged with them. We've recently been involved in a project for a customer that I'm not allowed to mention where we created a very nifty tool that scanned the web and social media for people commenting on the client’s products and services, while making an analysis of the 'mood' of those comments. The customer basically had a dashboard that told him if people were getting happier or less happy about their products, and which sites they should post responses to based on the general 'mood' on these sites. For other clients we have integrated social media into their backend systems, making it easier for their staff to work with Twitter, Facebook and many other social apps, from a single unified interface.

Advertising

Advertising on social media in many ways is similar to traditional online advertising, but it's definitely worth considering as part of your 'social media budget'. Social media advertising often allows you to advertise in a more targeted way. Where Google ads allow you to advertise based on specific search keywords and your location, social media allow you to advertise with finer granularity. For example Facebook advertising allows you to advertise based on location, relationship status, education, gender and various other criteria.

Social Media Strategy

No matter how you spend money on social media, the important thing is to understand social media (or find someone who does; it's perfectly ok to get help), and to define a strategy. What are you trying to accomplish and what is the best way to accomplish your goals? There is a thin line between doing the right thing and doing it horribly wrong, so think things through, and get help if you need it. In any case, social media are hot, and if you're not already engaging in social media, now might be a good time to start!