How to Use Social Media for Research and Development

Have you ever wished you could use social media to conduct a focus group on your product or service offerings? No, you can't just open a Twitter account and say, "Hey, what do you think of our new recipe for pie?" But you can approach social media and use it for research and development two different ways: social media monitoring and directly seeking customer feedback. This is feasible even for a small business or one without a research-and-development budget.

The first approach is to use social media monitoring to gather intelligence about your company, product or service, competitors or industry. By listening to online conversations about certain topics your customers might be talking about, you can gather competitive intelligence that can inform your decision making and produce a better offering.

Let's say you make custom handbags and sell them from your brick-and-mortar location in San Francisco that and they sell fairly well. But you need some R&D or at least some market research to know if what you're planning to produce makes sense for the new spring line you intend to roll out in the coming weeks.

So you go to a free monitoring service like SocialMention.com or even invest in something a bit more sophisticated, like uberVu, for about $40 per month. You enter some keywords and tinker with a search until you start to see some relevant results for conversations occurring from users in or around Northern California. For instance, "My handbag needs more dividers. I can't keep my stuff organized," is a phrase you might see pop up a couple of times.

Then you might notice that when people are talking about what their handbag or purse needs, they say the purse needs to be big enough to hold an iPad inconspicuously. And there's your new product idea harvested from raw data on the Web.

A second approach is to openly participate in social media and build purposeful relationships and connection with your actual customers so you can turn to them into your focus group. As an active social media participant -- building followers on Twitter, fans and likes on Facebook, readers of your blog or even subscribers to your email newsletter -- you're essentially growing your potential focus group every day.

There are four general steps to conducting research:

1. Set the goals for the research.
2. Establish the important questions to ask.
3. Research and collect answers to the important questions.
4. Analyze the answers to make decisions.

How does that translate to practical application? Make a list of the product or service feedback items you might want to ask customers about. Then make a list of the information you'd like to know about your customers or prospective customers. Look at that list and pick the one or two major areas you wish you could solve with a little customer input or feedback.

Let's say your top priority is to get new product feature suggestions. Start identifying the important questions that you need to ask your customers. Is the handle sturdy enough? Would you change anything about the colors?

You don't need to be a market researcher to ask questions, but you should probably try to ask questions that allow your audience to give the most unaided feedback. For example, asking "Is the handle sturdy enough?" might be better asked by saying, "On a scale of 1–10 with 10 being most sturdy and 1 being least sturdy, how sturdy would you rate the handle?"

After you've listed the questions you want to ask, you just need to deliver them to an audience to answer. For instance, when it's time to find out what folks like or dislike about last year's line of handbags, or what they'd find useful in new versions for the spring season, you might post this question on your Facebook page: "What about your handbag could be better? Any need for more/bigger/smaller pockets? Are you carrying more accessories that we should account for?"

Chances are, you won't get a lot of responses the first time you ask, but you can keep asking. Also, you can ask fans to subscribe to an email list specifically for "New Product Ideas & Feedback," or even offer incentives for participation with discounts to anyone who answers.

These two scenarios don't require big budgets, lots of scientific testing, or even geeks in lab coats. But they are legitimate research-and-development practices any business can use by implementing social media for R&D purposes.

Are You a Born Entrepreneur? (Opinion)

Guest op-ed contributor Scott Shane is a professor of entrepreneurial studies at Case Western Reserve University. He writes about entrepreneurship and innovation management, among other things.

Ever wonder why so many children of entrepreneurs become entrepreneurs themselves?

One reason is that our genes influence the decision to start a business. I don't mean that figuratively; I mean it scientifically. With colleagues at Kings College in London and the University of Cyprus, I have been investigating how genes affect entrepreneurship for more than five years. Through studies of twins, and more recently, through molecular genetics laboratory research, we have found that genes influence whether people start businesses, are self-employed, or have owned their own companies. Our research shows that the same genetic factors influence the tendency both to see business opportunities and to start companies, as well as how much money self-employed people earn.

At this point you may be wondering how researchers could determine that there's a genetic component to entrepreneurship. It's actually pretty straightforward.

With twins, it's a matter of comparing the choices of the two siblings. Identical twins share the same genetic composition, while fraternal twins have half in common. If pairs of identical twins make more similar choices, such as starting a business, than pairs of fraternal twins, then genetics must affect the choices, as long as a few scientific assumptions hold. In the molecular genetics research, we examine the different versions of genes people have and see if entrepreneurs are statistically more likely to have one version over another.

There are probably many ways genes influence whether or not we become entrepreneurs, but in the twins research, we have found initial evidence that one route clearly is through our personalities. The same genes that affect whether we are extroverted, open to experience, disagreeable and sensation seeking also influence our decision to start our own business. Furthermore, the same genes that influence the tendency to be open to experience also affect the tendency to identify new business opportunities.

Before you start worrying that this research will usher in the world portrayed in the science- fiction thriller Gattaca, we are a long, long way from any practical application of these findings. That will come only after many years of replicating the findings.

Moreover, there's no single gene or even set of genes for entrepreneurship. Our genes influence broader categories of behavior, such as whether we do things that involve a great deal or small amount of novelty. While entrepreneurship might involve pursuing novelty, so do many other human activities.

Further complicating the issue, hundreds of genes probably influence whether or not we become entrepreneurs. Thus far in the molecular genetics research, we've found initial evidence for just one of them--a version of a gene for a receptor for the brain chemical dopamine.

Geneticists have speculated that sensation-seeking people have versions of dopamine receptor genes that require more stimulating experiences in order to produce a given amount of dopamine in the brain. To get the higher level of stimulation, those people are more likely to engage in sensation seeking activities, including starting businesses.

While your genes influence whether or not you become an entrepreneur, experience matters, too. Genes don't determine anything you do; they merely influence what you do in the same way your life experiences do. Just as receiving a financial windfall increases your odds of starting a business, so too does having a particular genetic makeup. But just as some people without a penny to their name start companies, so too can people without the genetic make-up associated with entrepreneurship.

While the research so far is limited, it does mean that when you describe someone as a born entrepreneur, you really are onto something.

Understanding the Value of a Facebook Fan

If you're like most of the marketers or business owners I talk with these days, you're wondering what exactly are the benefits of Facebook fans (i.e., "Likes") to your brand. Also, how much more likely are they to do business with you than those who don't "like" you on Facebook?

Those who profess to be fans are much more likely to participate in "desirable actions" using Facebook, such as making a purchase, installing an app, entering a sweepstakes or voting online in a contest. That's according to SocialCode, a full-service social agency owned by the Washington Post Company, which looked at 50 brands and more than 5 million Facebook ads over a five-month period earlier this year.

Of course, it should come as little surprise that fans are more likely to perform desirable acts than nonfans. But the knowledge that they do so at a situational rate of up to 547 percent higher than nonfans is eye opening.

Specifically, the survey shows that Facebook fans are 291 percent more likely to engage with brands than nonfans. For example, the fan conversion rate to install an app is 38 percent compared with 12 percent for nonfans. That's a 239 percent difference, or, in other words, fans are three times more likely to convert than nonfans. The conversion rate for existing or new fans to enter a brand's contest was found to be 6 percent as opposed to 1 percent for nonfans -- a 545 percent differential.

When it comes to making an actual purchase, the SocialCode survey shows that fans do so at a 7 percent rate, while nonfans buy at a rate of just 2 percent.

Among the seven actions a user might perform on a fan page, SocialCode found that the difference in cost per acquisition, or CPA, between fans and nonfans is $9.56. That number is calculated by dividing the total cost of clicks by the total number of actions. For fans who install an app, for instance, the cost per acquisition is $2.61 compared to $8.49 for nonfans. Similarly, for fans making a purchase, the fan CPA is $14.88 compared to a nonfan CPA of $43.86.

Others costs include: contest submissions ($17.21 for fans, $76.25 for nonfans); contest voting ($3.26 for fans, $21.09 for nonfans); fan acquisition ($3.39 for fans, $5.17 for nonfans); program signup ($41.25 for fans, $75.90 for nonfans); and sweepstakes entry ($2.57 for fans, $5.81 for nonfans.)

In Facebook fan studies from last year, the value of a fan ranged from $3.60 in a Vitrue survey to $136.38 in a Syncapse assessment. Problems I see with the SocialCode survey is the assumption that all of these fans engage in actions to the same degree and that these desired actions can be weighed the same. I would think, for instance, that a purchase "action" would trump a contest vote every time. Similarly, the value of a fan should be measured by how much money he or she is bringing to the table in the form of purchases made, with the cost per action subtracted from that figure. The bottom line: How much more did we sell to the folks who signed on as our fans?

Networking Strategies for the Holidays

Holiday parties mean much more than free food and fun. They also can bring entrepreneurs a host of new opportunities to network and build relationships.

Most people think of networking only through the traditional venues, whether chamber of commerce events, business contact referral groups, or online sites such as LinkedIn. But holiday parties, including professional and industry social events where you can network with people outside your business, can be an even better time to introduce yourself to a new contact or share a friendly conversation with someone you already know.


To make the most of holiday party networking, here are a few things to keep in mind:

Be prepared. Try to learn in advance the names of people you will likely chat with, their jobs and their recent accomplishments. You will need to do a little homework, perhaps a Google search and a look at their LinkedIn or Facebook pages. Use the information you glean to break the ice.

Ask good questions. From the CEO to intern level, people love to talk about themselves. Here are some suggested conversation starters: How did you get started? What were some of the challenges with. . . ? Have you read any good books lately? My favorite is: How can I help you?

Have a "teaser” topic ready. Approaching the end of the year, every business executive is thinking about how to increase profits and performance in the new year. Have an idea ready that describes the steps you'd take to improve your networking contact's business. Make this research part of the homework you do ahead of time. But don't give away the goose; save the details for a later conversation.
Don't have more than a couple of drinks. It's a party, but you don't want to smell of liquor or be too relaxed when you approach people you want to connect with. Impressions count. Make the right one.
Be confident of your value. Introducing yourself to an executive can be an intimidating experience, so give yourself a pep talk before the party. Make a list of your accomplishments over the past year and figure out how you might weave them into conversations. Once you've got that down, you should feel good about yourself.
Use the introduction to segue to a future meeting. You don't want to end your chat at the party. The endgame here is to open the door for a follow-up meeting one-to-one. But remember that a party is a social gathering, so keep it natural and leave them intrigued.

Honor the event. This is really important. Make sure that when networking at a holiday party -- or any nontraditional networking event for that matter -- you don't treat it like a business mixer. Show finesse. Yes, it is a great networking opportunity, but if you overtly sell, you may turn people off. After all, it is a holiday.

12 Ways to (Legally) Spy on Your Competitors

Ever wonder what your competitors are up to? You should. They might be creating new products, planning to enter new markets -- or maybe they're floundering. If you knew, it could give you an edge. Uncovering competitive information doesn't require donning a trench coat or hiring a computer hacker. There are plenty of perfectly legal ways to get below-the-radar competitive information. Here are some time-tested methods that predate the Internet, as well as newer techniques to mine the wealth of information readily accessible online.

1. Read the local papers. Subscribe to the daily newspaper and business weekly in the cities where your primary competitors are based. You'll be surprised what competitors might say when they think they're just talking to a small, local audience.

"I cannot tell you the information we've gotten this way, in regular articles, about inventory, staffing, new plants and expansion plans," says Seena Sharp, Los Angeles-based principal atSharp Market Intelligence. For instance, one of Sharp's clients in the garden-products industry learned exactly how a plant fire had affected a competitor, the capacity of the rebuilt plant and the marketing plan for the next year, all from a local newspaper. With this knowledge, the client crafted a strategy that countered the competitor's efforts and increased the client's market share.

2. Tap your vendors. Product suppliers and service providers talk regularly with all their clients. If you're on good terms with your vendors, Sharp says, chat them up and see what you can get them to spill about your competitors. Don't be pushy, though. Keep the conversation casual.

3. Go to trade shows. You can stand near competitors' booths at a busy time when it's easy to blend in with the crowd and eavesdrop on what they tell prospects. New initiatives often are announced at shows, Sharp notes and chatty salespeople may reveal details. If you think you'll be recognized, send an employee or friend to listen.

4. Take a plant tour. For manufacturing competitors, see if the plant gives tours. Sharp says tour guides often brag about new products, new hires and expansion plans.

5. Play secret shopper. If competitors have stores, stroll the aisles and observe whether employees are responsive and facilities are clean--or shelves are empty and store phones go unanswered. Call the order line, too, so you can evaluate customer service, advises Sean Campbell, principal at competitive-research firm Cascade Insights in Oregon City, Ore.

6. Browse public documents. Publicly held companies must file reports with the U.S. Securities and Exchange Commission. Sharp also likes to read filings with the Environmental Protection Agency, the Patent and Trademark Office and local planning commissions to learn of building expansions and new products. Check with other state and federal agencies for signs of trouble such as tax liens, and comb legal filings for unexpected disclosures.

7. Google your competitor's website. You can reveal hidden pages by doing Google searches such as: "filetype: doc site: companyname," says August Jackson, a senior competitive intelligence analyst for Ernst & Young in McLean, Va. http://www.ey.com/ Change the file type to .pdf, .xls, or .ppt to turn up data or presentations. "It's surprising how many companies put this information up and think, ‘If I don't link to it, no one will find it,'" Jackson says. You also can view the site's source code to see the meta-tags or key words being used to optimize its position in searches.

8. Explore LinkedIn. On LinkedIn, you can sign up to follow a company and get notices when updates are posted on its LinkedIn page. You also can search a company's name on LinkedIn to find former employees and new hires, Jackson says. Salespeople may identify and brag about their clients on their personal LinkedIn page updates. If you're worried the company might recognize and block you, ask a colleague to follow the page.

9. Troll Twitter and Facebook chatter. If members of your industry hang out on Facebook, monitor their conversations. Music-rights agent Jennifer Yeko, president of True Talent Management in Beverly Hills, Calif., says she gets the scoop on the clients her competitors sign and the royalty rates they offer from posts made by her Facebook friends.

Many events have a Twitter hashtag that people use to chat and post speakers' comments live. If a competitor is speaking, tune in. Jackson has had success asking follow-up questions by responding and using the same hashtag.

10. Find competitors' job ads. Job portal Indeed is a great place for sussing out postings because it aggregates listings from many online job boards. Watch the skills a company may be hiring for; they're a leading indicator for new initiatives, says Campbell of Cascade Insights.

"We had a client curious about which American wireless carriers would offer Android phones," he says. "Just looking at job listings you could see who was trying to hire people with Android experience."

11. See Who's on Quora. Popular with techies and venture capitalists, Quora holds a vast database of interesting competitive questions on such topics as a company's future plans. Often, company employees provide the answers, Campbell notes, and they generally reply using their true identities, unlike people on most Q&A sites.

12. Check Slideshare. Companies frequently use this popular portal to share slideshow presentations but forget to take them down, Jackson says. Presentations to potential investors, for example, may contain financial data, forecasts and information about new projects.

One note of warning: When researching online, be sure to consider the source. There are plenty of half-truths, gossip and misinformation online.