What is Web 2.0?

When it comes to internet marketing, Web 2.0 has redefined the rules. Every fundamental aspect of owning an online business now must incorporate this concept to ensure the potential for positive results. The days of building a site and optimizing it for search engine results are over; there’s someone else who already did that and is moving forward with the next step in their campaign. To win the race, we’ve got to outthink our competitor and outperform them online. To accomplish that, we have to understand the newest concepts in marketing and embrace them as our own. Enter Web 2.0, the natural evolvement of the web and the information within it.

That being said, let’s take a step back. What is Web 2.0? What does it mean and how does it affect marketing and e-commerce? Unfortunately, a concise definition of Web 2.0 has yet to be realized, mostly because it’s an idea that’s still being debated. Wikipedia is the most comprehensive source out there, but it leaves something out in terms of what impact it has had and why it’s important to us.  Let’s start by attempting a simple, understandable definition for our purposes.

Web 2.0 is the concept that the internet has evolved into a platform on which users interact and have the ability to own and edit the data within. It is the change from isolated websites with a one-way flow of information to that of free-flowing, open-ended communication and data exchange. Social media, including blogs, social networks and social bookmarking sites are prime examples of Web 2.0. Basically, Web 2.0 is defined by interaction, usually facilitated through the ability to upload as well as download information. The internet is the tool for doing this, and therefore the concept of Web 2.0 is built on this platform, encouraging user-generated content, communication and categorization.

Although the definition might be missing some concrete themes, the websites that are hallmarks of Web 2.0 tell the real story. Take blogs for example. Although they’ve been around for quite some time, they’ve only become a business mainstay in the last 18 months or so. A blog is a platform for interaction. There can be multiple users, contributors and conversations. A blog can allow any type of media sharing, including photos, music, videos, podcasts, etc. A blog allows two-way conversations to happen and encourages user-driven content. If we compare this to a typical e-commerce site, we can see how Web 2.0 allows the user to participate and therefore become part of the process. After all, we’re going to be the ones providing all this data and categorizing it.

Now that we have an idea of what Web 2.0 is, we need to look at what it means and how it affects us. This is arguably where most of the previous rules of e-commerce have been rewritten. Our audience is using the internet differently these days. The amount of data online about products, services and companies is so vast and easily accessed that consumers are presented with a massive supply of choices and information. Because of that, consumers are becoming savvier, using these Web 2.0 fundamentals to research, discuss and share. It’s digital word of mouth advertising, and there’s no shortage of opinions.

So where do we fit in as marketers? If we’re the ones trying to reach these consumers, we must do so on their own ground. We need to go where they are and be perceived as an information source; as a credible, professional company who embraces the technology of the future, not one that hides from it. Web 2.0 allows this is a very profound way. If we contribute to the data, participate in the communities, provide the information, we can reach a highly-coveted group and secure them for a lifetime. It’s truly a marriage between marketers and consumers, and those that are using it effectively are enjoying a lasting relationship.

This all points to the same conclusion: evolve or die. We know our competitors will eventually adopt this approach if they haven’t already. Every study shows the most experienced online marketing companies are going to invest more in the technologies of Web 2.0, like social media and blogs, than ever before. They’ll be spending this money in spite of a recession simply because of the potential return. There’s no need to try and reinvent the wheel when it comes to marketing, but without innovation our business will very quickly become stagnant and stale. There’s a whole community waiting for us out there, and Web 2.0 enables us to interact and tap into the internet’s consumer base like never before, realizing the full potential of our business.

For more information on how Web 2.0 can help your online business, we’re offering a free, no obligation Web 2.0 analysis from a friendly, knowledgeable consultant.

New Study: Social Media Important In Buying Decision

Most businesses are just starting to figure out how to get their feet wet with social media. From managing an attractive, trustworthy identity in social networking sites to getting their product and company information posted in social bookmarking sites, this part of a marketing campaign usually takes a back seat to what businesses consider the more immediate concerns, statistics like traffic, sales and conversions. But a new study shows that consumers are using social media more than ever to do research on a company and their reputation before buying, and businesses better start listening, responding and improving if they want to compete in a Web 2.0 marketplace.

The Society for New Communications Research (sncr.org) released the new study on April 22, 2008 entitled “Exploring the Link Between Customer Care and Brand Reputation in the Age of Social Media.” Among other things, the study indicates consumers use social media to share customer care experiences and research companies’ customer service reputations. More than 300 consumers who are active online were interviewed for the study, focusing on how customer care influences brand reputation with social media. Some of the most interesting findings of the study include:

• Over 59% of consumers use social media to “vent” about a customer care experience
• Over 72% of respondents research companies’ customer care online prior to purchasing products or services
• 74% choose companies/brands based on others’ customer care experiences shared online
• 81% believe that blogs, online rating systems and discussion forums can give consumers a greater voice regarding customer care

The complete study is available here.

“This study indicates that there is a growing group of highly desirable consumers using social media to research companies: 25- to 55-years old, college-educated, earning $100,000+ – a very powerful group in terms of buying behavior,” said Dr. Ganim Nora Barnes, senior fellow over at SNCR. “These most savvy and sought after consumers will not support companies with poor customer care reputations, and they will talk about all of this openly with others via multiple online vehicles. This research should serve as a wake-up call to companies…”

With studies like this showing the power that a credible online reputation holds, it’s obvious companies need to have effective tools to manage their online identity and company brand. More and more, with so many choices available online, company reputation and online credibility are becoming the most important factor when it comes to a buying decision for e-commerce consumers. With the growing transparency of company records and availability of reviews on everything from customer service to product quality, it’s unrealistic to think an e-commerce business can survive, much less thrive without having an effective, consistent presence in Web 2.0 and social media.

The question is, what is your business doing to satisfy these new, savvy web consumers?