Thrive In The New Digital Eco-System

I was reading through a business plan the other day. It was sent to us from a budding entrepreneur in the UK. He was looking for some tips and guidance on the market opportunity and “fund-ability” of his plan. In the business plan, he referred to the online marketplace as “The Digital Eco-System”.

The online marketplace…an eco-system? I asked myself.

I thought about that term a bit more…and then it dawned on me.

This cat is absolutely right.

The new realm of marketing is less about what I have to say about myself and my business and has much more to do with what OTHERS have to say about me and my business. (Please let that soak in if that’s the first time you’ve been introduced to this concept).

Think about it…

It used to be that I could write long-copy sales letters, buy in-your-face yellow page ads, promise great service, make structure and function claims about my product/service, create attractive ads and so on.

It didn’t really matter if the product/service was effective or not. If you were a savvy marketer and networker, you’d make money.

But today, the game has changed. I can’t think of the last thing I bought where I didn’t first check with google, yahoo, facebook and a few hundred past customers (reviews).

How about you?

So there IS a digital eco-system that I must rely on in order to attract, convert and retain customers. Consumers like you and me are bypassing the traditional advertising and relying on the bigger eco-system of feedback to help us decide who wins and who doesn’t.

SO WHAT DOES THIS MEAN FOR SMALL BUSINESS?

Well, as recently as a couple of years ago, you could be a small business owner and do just fine without actively participating in this Digital Eco-System. You could simply say “We’re not playing that game. That’s a game for techies and young people.”

All you had to do was pay a graphic designer to build a brochure-type website with the typical “who we are, what we do, how to reach us” model. And Voila! You were done.

Then you simply added your website URL to your business cards, yellow page ads, coupon mailers and other advertising. Amazingly enough, the phone rang.

COOL, that worked!

But an alarming trend has begun over the past 18 months or so and it is yet to reach it’s full crescendo.

But the marketing plan is not working as well as it used to.

WELCOME TO THE NEW DIGITAL ECO-SYSTEM WHERE YOU MUST ENGAGE AND ACTIVELY WORK THE SYSTEM TO THRIVE IN IT.

As a small business owner you must understand that the rules of marketing have changed…forever.

•    Yellow page ads are being replaced with online search (think about the last time you picked up a yellow book to find something vs. the last time you did a google or yahoo local search).

•    Old-school networking and referral generation has been replaced by social media and peer advocacy.

•    Companies still selling “great service” are being trounced by competitors who have focused on building page rank, fans, followers and customer ratings.

•    Relationship building has been replaced by reputation management.

•    Prospect and lead generation is being replaced by “tribe” building.

SO HOW IS YOUR SMALL BUSINESS DOING WITH THE TRANSITION?

This is a wake up call to small business to do what needs to be done to thrive in this new digital eco-system.

Here are the 7 keys I have found that transform small businesses from the “old school” marketing ways to the Next Generation edition.

1. Dominate online search in your category (yes it is possible - get started now).

2. Maximize social media - Use an expert. (Don’t think that setting up a twitter account and facebook page gets the job done).

3. Leverage peer advocacy - Stop expecting those incestuous business card swap events to build your business. Those programs worked in the 80’s. They don’t any more. A healthy eco-system is made up of organisms that live symbiotically together. That means more than just handing someone a stack of your business cards and expecting the phone to ring. It means “advocating” on others behalf and having your fans “advocating” for you.

Where will your business fit in the digital eco-system?

Also, if you’re reading this article and can think of other tips for small businesses to take advantage of this changing marketplace. Make sure to let me know.

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