Web 2.0! You hear this everywhere! It is like an unstoppable force. But, what exactly is Web 2.0 and how has it affected small businesses?
Let’s start with talking about what Web 2.0 is. There is no technical difference between Web 1.0 or Web 2.0 or any other “versions”. They are just names people give to the way certain ways web works and certain technology of the web in the 21st century. We all remember how the web used to look back in its infancy. Flashy banners, black background, rolling texts, etc were all too common. However, in recent years to due to the improvement of web programming languages, websites have become dynamic, more user friendly. Web 2.0 is not only about the technology and the visuals of the web but also the uses that has popped up. Social networking, video sharing, social media in general is a piping hot nowadays. With sites like Youtube, Facebook, MySpace, Flickr, not only has it changed the face of the web but the way people do business.
For a moment, let’s say you are a cafe in a medium sized town. Traditionally, you would advertise in the newspaper, use word of mouth, maybe even advertise in the radio. However, with the advent of “Social Media”, you can now set up a Fan page on Facebook, upload funny, witty even “viral” videos on Youtube and show off pictures on Flickr.
These websites and technologies allows you to connect with your potential customers in ways that has never been done before. A common misconception is that these websites are frequented only by the young. However, recent statistic shows that the fastest growing group on social networking websites like Facebook are senior citizens. In fact, recent data has shown that the numbers will only continue to grow.
One of the main advantage of using Web 2.0 technology for your small business is that it is very cost effective. In fact, it costs virtually nothing to set up your profile on most social networking sites. They also allow you to start networking with other business owners and get help and tips. One of the biggest social networking site for business professionals is Linkedin.com. It allows you to upload your resume and start building links and network with other people. It is especially useful for b2b businesses or people who provide services to business owners.
Having an online presence also gives your business a lot of credibility. It also builds up your brand faster than ever. It is well known that most people will start recognizing a brand after being exposed to it at least 7 times. For a small business with limited marketing budget it would be hard to expose a consumer to their brand multiple times. However, using social media, they can start to relay their messages and brand awareness to the public without spending huge amounts of cash on marketing and advertising.
Has this really worked? According to a study by McKinsey Quarterly done in the fourth Quarter of 2009, over 52% of business owners have said that Web 2.0 tools has increased their brand awareness, marketing effectiveness and overall revenue. 43% of business owners said that online tools helped them achieve a higher rate of customer satisfaction while 38% said that it helped reduce their total advertising and marketing cost.
Does this mean that simply integrating Web 2.0 tools to your business and marketing plan will start bringing in an influx of customers? Experts say not to hope that because you still need to provide useful service and something worthy of the time and money for the customer to want to do business with you. With the right ideas, guidance and patience you can definitely expect to grow your small business by using Web 2.0 technologies. Just be careful not to get too carried away.