Top tips on Twitter

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by
esther
on 12 June, 2009
in Top Tips
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We look beyond the hype and offer tips to help you answer the question: to tweet, or not to tweet?

Twitter is a social tool, but it is increasingly being used by businesses as a quick and direct way to share information and communicate with consumers. Tweets (messages of less than 140 characters) are posted, which appear on the Twitter home pages of those who follow the publisher’s feed. Users can reply to tweets, or “re-tweet” to share tweets with friends. The point: to see and share information, and engage in conversations.

In our view, businesses must work to ‘fit’ their presence into the social context of Twitter. Get this right and businesses can find value in both promoting their brand, and engaging in dialogue with customers.

Respect the social context

Twitter is a social tool, used by friends to share information and engage in dialogue. Businesses can and do fit into this world, but they must respect this social context. Dan Germain, of Innocent Drinks, suggests asking whether you would welcome customers to “drop in for a cup of tea”. If the answer is no, “don’t get involved”.

Be interesting

“The most important thing is to always be interesting”, says Amelia Torode of ad agency VCCP. Before you begin ‘tweeting’, consider the content you have to offer. Can you consistently create tweets that are interesting, informative, useful, conversational, or beneficial? When devising tweets, think twice about the social context; about why people use Twitter, and importantly, about the kind of people that use it.

Engage in conversations

“If you believe it’s important to get out there and have conversations with customers, then you should be using Twitter”, says Bob Pearson of Dell. Such interactions can provide businesses with qualitative information on customer opinions, insights and feedback on subjects such as existing or new products, services, or ideas. Importantly: be sure to listen; Penguin Books digital marketing director Anna Rafferty argues that showing you listen is “the only way to build true value into brands’ use of Twitter”.

Don’t be too ‘salesy’

“The last thing any brand should do is approach Twitter like a textbook marketing activity”, says Dan Germain of Innocent Drinks. A sentiment echoed by ad agency strategist Amelia Torode: “This isn’t a pipe down which to pump press releases”. This does not mean you cannot tweet promotional content, just keep a check on it, and be sure to find a balance between being ‘salesy’ and being social.

Balance frequency

Brands are sometimes criticised for tweeting too infrequently, reflecting a lack of commitment, content, or both. Conversely, brands that tweet too often could annoy followers who may feel bugged by tweets. This problem worsens the more promotional you get. Remember that Twitter is primarily a social tool, thus relentless promotional content may inspire users to delete you from their Twitter list. To strike a balance, always ask yourself: Is the reader going to find this tweet useful, relevant, and above all: interesting?

Find your voice

Companies tweet in different ways. Some take a personal tone, tweeting directly from directors or executives, while others tweet anonymously under their brand name. Some take an informal approach to content (perhaps tweeting about an employee’s recent personal achievement), while others prefer to keep things focussed on business. There are no set rules, but it helps to find an approach that is comfortable for you.

Take it easy

Innocent’s Dan Germain quips: “The key is to not try too hard. With only 140 characters, if you think for more than a minute about what you post, you’re taking too long”. This advice should not be taken too literally, but it helps to illustrate that Twitter is designed to be short, sweet and social. You want to avoid damaging your brand by being too casual, but also try to take things easy and embrace the relaxed tone of Twitter.

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Leadership: Awareness and Judgement

Published
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esther
on 12 June, 2009
in Management & Leadership
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We discuss awareness and judgement, two key words that business leaders should remember and respect.

Last month we discussed how bad leadership can impact an organisation. And harsh words we used too; in short, we concluded that poor leadership can create ignorant businesses which lack good judgement, and are thus led in a direction that is at best uneducated and at worst ill-informed and damaging. Such dynamics threaten a business’s potential for success, and can create friction between its leaders and followers.

Our analysis was informed by the opinions of Warren Bennis, an influential leadership author who has been consulted by four American presidents and numerous corporations around the world. In his mind, successful leaders of the past first and foremost “paid attention to what was going on” and then “determined what part of the events at hand would be important for the future of the organisation”. From this insight we can distil two key words that leaders should both remember and respect: awareness, and judgement.

Awareness: “having knowledge or perception of a situation or fact”

Knowledge is power. Leaders make better decisions and define clearer visions if they have knowledge or perception of the pertinent situations or facts. In a business context, situational awareness involves accessing knowledge on what is happening inside and outside of the organisation; from what is happening on the ground, to the opportunities and challenges that exist for management; and moreover, to the external opportunities and threats that are present in the marketplace, such as technological developments or economic conditions.

Leaders may not have time to research all of these things, and so must capitalise on strong and open lines of communication to inform them. Communication may begin via dialogue with other directors or managers, but may also extend to direct or indirect knowledge-sharing from the bottom-up, via employees, customers or suppliers. Accessing knowledge from outside collaborators could also help to improve external awareness.

Importantly, the task of improving awareness should be perceived as an opportunity, not a chore. Being self-aware and accepting that you do not know everything is a vital admission for leaders to accept.

Judgement: “the ability to make considered decisions or come to sensible conclusions”

Good judgement is often said to be instinctual, emerging from an innate, natural ability. Sometimes this holds true, but great leaders are likely to admit that over and above visceral instinct, good judgement is a product of strong awareness, information and knowledge. Importantly, this means that anyone - not just so-called natural leaders - can learn to improve their judgement and become a better leader.

Having an awareness of the pertinent situations or facts is thus vital to good judgement. And as discussed, awareness itself aids leadership, so it is no surprise that awareness and judgement go hand-in-hand. When it comes to decision making or defining your vision, let your awareness inform your thinking. Strong judgement is also independent rather than based on bias or emotion. So communication is again important; by consulting others you can build objective perspectives and form well-rounded conclusions. You need to be confident in your own power of judgement, but remember to be aware and value the perspectives and knowledge of others.

More info - Assess your leadership and management skills

More info - Access leadership and management grants

Think twice about price

Published
by
esther
on 12 June, 2009
in Sales & Marketing and Strategy & Operations
. 0 Comments

Our research suggests that businesses across the South West are planning to review pricing as a means of countering the effects of the recession. Our advice: think twice, keeping in mind the long-term view.

Businesses across the South West are looking to pricing reviews as a means of countering the effects of the recession. Early findings from Business Link’s recent economic downturn survey show that 62 per cent of respondents consider ‘reduced sales’ as their most significant business challenge. 53 per cent are planning to review pricing, representing the number one action being taken to counter falling sales.

Adjusting pricing during a recession can be a strategically robust move, or a big mistake, depending on your unique business situation and competitive context. In general, pricing decisions should not be viewed solely as a quick-fix solution to dwindling sales. Moreover, they should be considered as part of a longer-term strategy.
This does not mean that pricing cannot be used as a means of survival, merely that the longer-term view must be considered in order to avoid or anticipate future pitfalls.

Such pitfalls include the danger of a brand, product or service being devalued by price cuts. When spending power returns, spoiled consumers - who are used to lower prices - may turn away from a brand if prices are increased. Thus, the long-term financial health of an entire company could be devalued by a knee-jerk reaction to current tough times. This issue also relates to brand equity; consumers who previously considered you a high-end brand may be put off if you begin offering bargain-bucket deals to attract new customer groups.

That said, a revised pricing strategy could be the very thing that ensures business survival. Or moreover, it could be used as a strategic play to grab market share from competitors. Whatever the intent, be sure to remain conscious of the bigger picture. Ask what your pricing strategy should be now, as well as in a year, two, or three, from now. If you cut prices, how do you intend to go back? These are financial considerations but also marketing-based strategic questions of handling consumers’ reactions to pricing changes.

It is also important to consider in-depth your business’s finances. Cutting prices might spur sales, but will also deliver lower profit margins. How long can a decreased profit margin be sustained, and again, how can you go back in the future? In tandem with a cost-cutting drive you may be able to cut prices to maintain profitability, but of course cost-cutting driven price cuts could devalue your brand as the quality of your product or service falls. However you approach your review, be sure you have a handle on pricing economics by calculating factors such as per-unit production cost, sales, marketing and after-sales costs.

With a long-term view and a decent grasp on your financial and competitive position, you can begin to consider specific and prudent pricing tactics. The options are varied, ranging from temporary price promotions such as short to mid-term sales, online vouchers, bulk-buy discounts or post-sale rebates, to sustainable, permanent price reductions. Or, you may even decide to increase pricing to reach out to higher-value target audiences. Whatever you do: think twice, and do it with an informed, long-term view.

Watch out for next month’s special feature in which we offer top tips for conducting a price review.

More info - Price your product or service
More info - An overview of our pricing guides

Can “Green HR” help to save the planet?

Published
by
esther
on 12 June, 2009
in Environment and HR & People Development
. 0 Comments

HR has a role in the pursuit of greener business practices; a role which could help to both save the planet and recruit new employees.

Human resources (HR) has a role to play in building greener businesses. Its closeness to people across departments makes it arguably the best-placed business function to introduce and enforce greener working practices and change environmentally unfriendly behaviours. And while its scope may be limited to managing the behaviours of people (as opposed to directing wider strategic or operational policies), HR has a significant opportunity to contribute to the green movement. If being green is not reason enough, the motivation to get involved might be driven by the fact that, increasingly, people want to work for greener businesses.

HR is already involved in the development, training, re-training and behavioural management of people, with the overall objective of improving business performance. It also has a role in defining organisational policies, such as flexible working rules or codes of conduct. With these competencies in mind, it is apparent that managing certain green policies from within HR could be advantageous. Where an individual’s choice of behaviour could impact the environment, HR could play a role in defining policy. For example, HR could define instances where face-to-face offsite meetings are necessary, or where video or web conferencing could be used as a greener alternative.

A survey conducted in the US, which analysed responses from 93 organisations from a range of different industries, identified some commonly practised green-friendly HR initiatives, including encouraging online/tele-conferencing to reduce travel, and promoting the reduction of paper use. The survey commented that “employee involvement in green programs dramatically increases when organizations appoint an individual to lead the efforts”. Don Sanford, managing director of Buck’s Communication, the company behind the survey, concluded that “there is still much more that organisations can do”.

To go further, HR leaders could pursue green initiatives on a number of levels. For example, HR could work with IT departments to define policies on the correct use of computer power management systems, or promote the importance of turning off computers, printers and lights when leaving the office. More widely, building green responsibilities directly into job descriptions could provide a two-fold benefit; first ensuring green policies are explicitly part of an employee’s responsibilities, and second, providing routes for employee feedback on ideas which could help to improve environmental efficiencies. Employees who are familiar with their own job roles may be best-placed to identify green opportunities and proactively suggest improvements.

Increasingly, new recruits are likely to consider the green credentials of employers. If HR has a vested interest in a company’s environmental practices, it could position the business as a more attractive proposition to new talent. In this respect, being green could be strategically valuable to tomorrow’s HR.

It is clear that whilst HR cannot always take the lead in an organisation’s green approach, it could work with decision makers to define and disseminate information and instructions to its people, so that they can learn how to behave in more environmentally friendly ways. As well as contributing to an important corporate social responsibility, this positive action could make the company a more attractive employment proposition for new talent. If you work in HR, why not ask yourself what role you could play in helping to save the planet.

More info - Managing environmental issues in your business

More info - Improving your enviromental performance

Running a new business during tough times

Published
by
esther
on 12 June, 2009
in Starting Up
. 0 Comments

Tough times can make your business more agile and resilient, and inspire you to do more with less. We explain how learning these lessons early on can help your business develop, grow and succeed.

Running a new business during tough times might seem daunting, but doing so can force you to learn valuable lessons which will stand you in good stead far beyond the recession. So, how can today’s experiences be turned into tomorrow’s wisdom?

Becoming more agile and resilient

Firstly, running a business during adverse times helps your business to become more agile and resilient. The ability to identify change and react decisively to it is a fundamental part of business leadership. Warren Bennis, an influential leadership expert, points out that outright success can be detrimental to business leadership because “there’s no opportunity to learn from adversity and problems”. In this sense, learning to spot negative change and react to it are valuable lessons that business leaders can take value from.

The most practical tip for managing change is to see it coming. Awareness is crucial. Ensure you conduct regular monitoring and analysis of what is happening both inside and outside of your business. Regular business reviews and business and financial planning can help to identify where your business is in relation to your long-term plans. Good communication between management is important, as is gathering knowledge from employees, suppliers, and even customers. Ensure your marketing activity identifies changing customer needs and that your product or service offerings are adapting accordingly. Importantly, look for opportunities as well as threats; changing times may present significant competitive opportunities. Through stellar awareness, businesses are given more time to adapt to change, so be sure to keep your finger firmly on the pulse.

Doing business by the bootstraps

Another lesson learnt from doing business during a recession is the art of bootstrapping. Bootstrapping is an informal term reflecting the development of new initiatives with little or no access to external resources, such as bank finance or investment. In a recession, we are often forced to survive on less. This can slow growth, but it can also help businesses to squeeze more value from the resources they have by avoiding frivolity and over-zealous spending. Limitation is also known to spur creativity and innovation; for example, Google Mail was created by just one employee working on it in his free time of just one day a week.

One practical tip when bootstrapping is to appreciate the relationship between spending and value. Look at individual costs and ask: What value does this spending provide? To illustrate, a costly marketing budget might seem prohibitive during a recession, but then again, more must be done to attract and engage with customers, and thus such activity might be invaluable. In contrast, consider costs which offer no value - or in other words contribute nothing but waste. It is these wasteful areas that go unnoticed when money is plentiful. Rigourously questioning your spending is a strong discipline which maximises value, minimises waste, and improves profitability. Importantly, banks and investors like such discipline; if you can clearly demonstrate the value your spending provides, financiers might be more inclined to provide resource to support your aims.

Pushing things forward

These two subjects are often forgotten during boom times, when markets are stable and finance is easier to access. This is why running a business during a recession can offer invaluable experience. Both businesses and their leaders can take strength and wisdom from adversity and become more agile and resilient to change. And start up businesses that learn to ‘make do’ can take forward valuable experience in how to progress on limited resource, be more creative and innovative, and obtain more value from their spending. Such qualities are beneficial from start up right through to maturity. One day, such disciplines may help to deal with future challenges, launch new initiatives, or at the very least, maximise the value and profitability of your business.

More info - Cash flow management - the basics

More info - Know your customers needs