Hi, everyone. Im j. J. Ramberg. Welcome to your business, the show dedicated to helping you grow your company. Love it or hate it, social media particularly facebook is a big deal. And while there are endless questions right now about how its been used and abused in the political world, in the business world, many entrepreneurs take it on faith that their Company Needs to be on social media if they want to stay in the game. We decided to take a closer look to find out whats the payoff . Is social media really Cost Effective . Its a refrain we hear from almost every company these days. Like us on facebook, follow us on twitter, join us on instagram, sign up for weekly updates. Even on this show we say it every week. And dont forget to connect with us on all of our social media platforms as well. Social media has been hyped for its ability to connect brands to consumers, increase brand loyalty, and boost sales. All for a bargain price. But does it work . For some it does. But it is not a slam dunk. The study that Harvard Business review published last year showed that following a brand in social media has no impact on their buying behavior. How much else do you need to know . Its next to nothing. Bob hoffman is a 41year veteran of the advertising industry. As a businessman, i dont care about engagement. I care about sales results. I want to see what has actually happened as a result of the money im spending on advertising. Now hes an industry critic through his blog the ad contrarian. He says too Many Companies are putting too much effort into their social media for all the wrong reasons. Followers like engagement to me are a false goal. The goal is to sell someone something. Not understanding how to use social media in a larger Marketing Mix is one place where experts think they get it wrong. I think social media and the open web, too, for a small to mediumized business is about creating awareness. Its less getting someone to immediately click on a thing and doing the action. Dan greenburg is the founder of share through. A San Francisco based agency specializing in website advertising. He says social media should just be a tiny part of a much more complex advertising recipe. Facebook and social media cant be the beginning of the strategy. The strategy needs to be who are we trying to engage and why. If you want to generate sales through social media, he says, you need to first get to know your real life customers and why your product matters to them. It has to start with somebody who actually does like your brand. So if you have people who actually like your brand or actually like your company, what social media is good for is to nudge them to help them amplify that to their people. Reina, the founder of l. A. Based digital architects makes a similar point. She says you need to think about participating in social media like attending a Cocktail Party. If you are just standing in the corner at a Cocktail Party and not engaging and not asking anyone questions, then youre bad at a Cocktail Party and you are bad at social media. Reina represents social media influencers. People who built up a large number of followers. You have to be really specific about your goels. While influencers can did a lot to boost a business, reina warns when it comes to actually selling products, many influencers have trouble turning those likes into sales. If your goal is to drive x units of a product, thats a smaller amount of the Digital Population that have that ability. Anyone is going to be turned off if someone just starts yelling at them, buy my product, all the time. For those who can get their customers excited online, social media can sometimes deliver a windfall. There are thousands of musicians all over the world that are making six or seven figure incomes youve never heard of. And theyre using social media to do that. I thought i needed more Los Angelesbased singer song writer arnie knows how they do it. He knows because he helps them use social media to build their careers and make money through his online blog. Youtube is absolute one avenue where you can do that and you can have maybe 2 million subscribers on youtube. For many businesses like his clients, youtube is the right platform. But its not for everyone. Facebook, instagram, twitter, and the others each have their own dynamic. And success is difficult without understanding those differences. Each social network has its own community, has its own etiquette. And so the way that you interact with people on facebook is different than the way you interact with people on twitter. Or the way you interact with people on ins gra m. Facebook is great with engaging with a little bit of an older audience. Instagram is a younger audience. People say link to an article. You cant do that on instagram. You cant link to things. Kmeet i comedians blow up on twitter because they write hilarious tweets and everybody retweets it. Scotty, cofounder of raging mammoth a california based maker of College Party items says you should approach social media like you do going to the gym. Its going to be completely different if youre trying to gain 15 pounds of muscle or lose 45 pounds of fat. Its completely different on the outcome. You select which equipment to use based upon the goals that brought you there in the first place. Social media metrics dont always translate into increased awareness or sales. What is not clear to us is how the advertising works or whether it actually reaches real people. Samuel woolly of the Digital Intelligence lab at the institute for the future studies the influence of Automated Software or bots on social media. Bots absolutely get used in and around the business sphere to drive up support of advertisements to make it look as if these things are more popular than they are. And thats very problematic from a business perspective. Because the promise that the companies are making to you is you have interaction. However, things like anonymity and automation mean the system can. Is social media Cost Effective . The dollar value of a Facebook Like varies based on community, based on demographic. And how many other likes does it lead to and who was it that liked it . How many people are interacting with the content . Are they actually liking it or bots . Based on the audience. How large is their audience . What is your outcome. Based on the product, based on the company. Et cetera et cetera et cetera. There is lots of talk in every hallway here at south by southwest about Artificial Intelligence and how it is going to change everything. We want to know how is it going to change your business and what thing dos you need to think about . So were sitting down with the chief marketing and communication director. You are here to break it down for us. Happy to. Thank you. I just mentioned Artificial Intelligence but when we talk about business, were really talking about Machine Learning for most of us. Whats Machine Learning . Thats right, j. J. You have tech cred by calling it Machine Learning. Artificial intelligence is almost like a marketing term now. Its a general umbrella for all these different techniques. Most include natural language processing like alexa. But for marketing, for business its helping you understand how to identify patterns in the data and using statistics to make predictions around the world. So i as a company am collecting all kinds of data from im a dry cleaner. I know when they come many, how many shirts they press each week, what time they leave. I have all this data. How do i how does Machine Learning happen . Sure. Thats a really great example. Because you have all these inputs. But you dont really have intelligence yet. You dont insights. And so part of the challenge is how do you go up this brand hierarchy of intelligence to go from data to information but only with Machine Learning can you get to that eureka moment to discover something you would never have been able to do before. Thats the power of the Machine Learning. The reality is you can have all these different touch points to understand your Customer Journey and how to really improve that customer experience. This ultimately has to be putting the customer at the center. When they come in every day of the week, the items theyre leaving. How are we going to help improve Customer Service . Its understanding all the patterns in the data that will be able to inform you how to deliver that experience. What tools do i need to take all this data. I want to take the data, stick it in the data machine and it spits out these insights for me. There are a lot of Software Tools out there. You could use a marketto to salesforce to Amazon Web Services that has a ton of tools at your disposal. Even things like google. All right. Lets talk about chat bots. We hear about that a lot here. And how that is changing business on a small scale. It is providing a way to have realtime twoway communication between a company and their customer. Think about it. Very efficiently. Because you dont have 20,000 people there answering. Its a computer. Well, very efficiently. But you also are able to weave in the Machine Learning and the human learning. How do you fuse those two so the machine learn kg inspire the human learning . And the chat bots are really effective because im sure theres going to be the same ten questions everything is going to ask. What time does your store open . Whats the inventory. Right now you have to go to a website, go to subnavigation menus. Its time consuming. If you could get it in realtime, its like choose your own adventure. Now you can figure out when to uplevel that and have a Human Interaction because you want to provide for personalized service. Maybe its a chance to upsell. But thats where youre leveraging the learning. Whats coming up ahead . What do i expect out of ai . Suddenly water will appear in my hand because thursdays at 2 00 i get thirsty . The reality is youre going to see an incredible amount of one to one communications. Mass personalization. Its going to be driven by insights. People dont have a lot of insights today. Youre just sitting on data. You understand the patterns in the data and you need human judgment to make an analysis of that. For example, lets say its june and you see lots of shark attacks and lots of sales of ice cream. You dont want to correlate those two things. It just happens to be in the same time period. But if you really understand the patterns in the data, you can have a better customer experience. Ai is going to absolutely transform every customer experience, every company in every industry. You have to think about this as almost like electricity. Its going to permeate every aspect of our society. Itll be bigger than the internet. So how are you preparing for this . What is your ai strategy . Start now. Steven, thank you so much for explaining this all. Thanks so much. It started the way so many of the companies we profile do. With a problem that needed to be solved. When toby and his cofounders wabtsed to sell snowboarding equipment online, they couldnt find a simple to use solution. So they built their own. Then they realized other businesses could benefit from what they created. Sop they launched shopify in 2006. Now it is the ecommerce platform of choice for Online Stores worldwide. We sat down with him in canada to talk about the trust battery and why diversity is so important when hiring. I packed a backpack and suitcase and went to valley. What happened was people ask me all sorts of questions i couldnt answer. Because ive never heard these terms or any of these kind of things. I would take a lot of notes. And i would go back into my hostel and use wifi from the neighbors to go to wikipedia, you know, read up, like, learn about these terms. Then i could answer one more question the next time i had a meeting. We always hope our crystal ball is fairly clear. One of the things that has very much led to Small Businesses getting into trouble is that reality somehow shifted and no longer so shopify inoculating people from these. We need to be exceptionally innovative that by the time something is needed, we can have it ready so everyone can use it. If you think about commerce, commerce lives at the intersection of technology. People have a desire seeing something they want in real world. Then they go to Digital World to say i want this. Augmented reality is bringing these things closer. I think its great for Small Businesses. I absolutely committed the cognizant of every firsttime startup founder that seemed similar. I got this piece of feedback saying i love the company youre building. Just one thing that sort of irritating is everyone is a version of you. At this point, it was so obviously true. We made a point of hiring people that are very different from us. But also that didnt just mean gender diversity. It was people who spend their lives differently. People from industdifferent industries. The moment we did this, we went into meetings and suddenly everyone had this really completely different but interesting ways of looking at this problem. I spend most of my formative years in my life with computers. I spent especially early years of shopify was a 16hour day where i was programming. So i had to kind of at some point say, well, i have to go back to square one and say i need to understand how other people function. Actually being a trust battery between two different people. Then as you work together, it gets charged. At some point you decide, okay. I fully trust you, so i dont need to verify what youre doing. We want this to be a hightrust environment. A corporate version of babyproofing. There is no limit to personal growth. This is something that can take an active role in as a business. So weve been very comfortable saying shopify is going to be a better Company Every year and therefore we have to become better people every year to be able to keep the harmony of those things. Apps have completely changed the way we do so many things. Thats why i was so interested in the company talk space which people use to connect with therapis therapists. Unlimited texting is the way you communicate with your doctor. While the company is only a few years old, their number one priority is advancing the conversation about Mental Health care even if their innovative approach is somewhat controversial. Just a few years ago orrin and Ronnie Franks marriage was on the brink of collapse. Our marriage was falling apart. We decided to give it last chance. The crisis was a turning point. In a last ditch effort to save the marriage, they tried couples therapy. For us it was a wonderful experience because it basically taught us how to communicate with each other. And we could see the value. And i could in my head extrapolate the value and see how it applies to so many people. Therapy saved their marriage and beyond that gave them a business idea. In 2012 they launched talk space in new york city. Their idea was to use technology. Unlimited texting directly to a licensed therapist for 25 a week. Im just taking my phone and im texting when i feel the need. Im overwhelming d, im texting you. It feels so normal because this is how i communicate with everyone in my life. This was unchartered territory for the couple. Orrins background was elsewhere. Neither of them really knew the industry. And they werent sure if the company would survive. We lost people. We shut the offices. We had no money. But they saw a glim mer of hope. We had a link called customer support. Obviously i was sitting there because we were just, like, two, three people. We just started. I think our clients, our members interpreted this name to customer clinical support or therapy support. And i started getting hundreds of emails telling me about their clinical issues. When we said, okay. So we know that people feel very open and very willing to share everything in writing, why dont with do a form of two people. We tested it. After redoing the platform, they rebooted the company and quickly got traction with the oneonone model. A therapist paired with a single client. Via text. Usually on a smartphone. If you were to come into my office and sit down, it would feel probably a little bit formal. If youre on your computer or on your app and youre at home and youre in your comfort zone and you dont have to, like, look at me and see, you know, what my reactions going to be, then maybe its a little bit easier for you to share share things. Kate is a licensed clinical social worker. She has an office with the proverbial couch but finds the flexibility of having clients text her when shes at home easier and sometimes more effective than the facetoface appointment. If a client has a very bad day, they dont have to wait until next week or next month to see me. So theyll get an Immediate Response as opposed to holding those feelings can sometimes make people feel worse in the end. Of course it is is new and largely untested which means its not without controversy. They feel they need to build trust in the community. I fell in love with this profession called therapy. This first ever gathering attracted therapists, academics and experts in Mental Health, clearly putting talk space in an important conversation about modern day health care. The conference, which invited people to talk about advantages and disadvantages of having hopefully an honest and open discussion about how to make it better all the time is a necessity. Therapy is moving online, migrating online. Most of the people involved with this profession will agree with that statement now. There needs to be a place in which the discussion is being handled from that point of view. And they hope that space is talk space. Therapy for how we live today. Whether you want to retire, you want to explore new interests, or you just suddenly need to change your management team, there comes a point when every leader must move on. Here are five tips on creating a succession plan. Prepare your company for new leadership. Speak to your lawyer to make sure youre doing the right thing, protecting yourself, protecting your business, and protecting your employees. Two, look within all your ranks. Your companys second in command may not always be your best success issor. You may want to consider training your people to take over in case your second in command or other leaders have to take a sudden leave. Lee, put your plan in writing. Are you selling your business, transferring ownership to a family member, dividing it up amongst shareholders . Pick a date and develop a record of all the things you need to think about before leaving your company. Four, make sure your Company Works without you. You will never be able to retire or move on if your Company Needs you around to make every decision. Claim your successor to make decisions without you and create repeatable foolproof systems wherever you can. Five, communicate, communicate, communicate. Determine who your organization or in your life needs to know your succession plan. Communicate with him or her regularly and allow them to weigh in on spots to make sure your plan goes off without a hitch. When we come back, how does a growing company manage cash flow. And why you should encourage your employees to have a side project. So thats the idea. What do you think . I dont like it. Oh. Nuh uh. Yeah. Ahhhhh. Mmmm. Oh. Yeah. Ah. Agh. Ddd. No. Hmmm. Uh. Huh. Yeah. Uh. Huh. In business, there are a lot of ways to say no. Thank you so much. Thank you. So were doing it. Yes. Start saying yes to your companys best ideas. We help all types of businesses with money, tools and knowhow to get business done. American express open. As a fastgrowing company, tparb Flow Management is so critical to us. How do we manage the ebs and flows of our cash as were growing . So youre always fundraising. Many think we are fundraising when its time for money. That is too late. Our cultivating that to give you equity capital. Dont be afraid of debt but be afraid of debt. Do it thoughtfully. Dont do too much. But keep the lights on and keep making payroll. We now have the top two tips you need to know to help you grow your business. Dr. Amy derrick is a dermatologist and the founder of derrick determine tolling in chicago venture capitalist patrick. You are the old hat on the show. Whats the one thing you see the Company Investing in . What i like to Tell Companies is encourage employees to have a side hustle. Really . 40 of millennials have side hustles to date. But the companies arent even benefitting from that. If Companies Support their employees, what they find out is they arent looking to get a new job, looking to learn things, explore opportunities, try something out they have never tried before. They can bring this back to make their companies far more entrepreneurial. How do you deal with the time issue. They dont get flexible schedules. Still, you need someone working at your company. What happens when the side hustle becomes more interesting than your company. The first is to set down ground rules. Less than a quarter people who do these things even want to go to work in their company and do it full time. They just is want to have the experience. The reality is its very hard to teach somebody to think like an entrepreneur unless they have done the work of an entrepreneur. So you are really getting onthejob training for free here. Got it. Amy, sometimes people forget doctors run their own businesses, right . Its been a failure of my part to not have enough doctors talking about what it takes to run a business. And you have how many people . About 180 staff. Wow. So you run a big company. So i think you need to figure out what your Value Proposition is to your patient or customer. In 2006, i started my practice. And at the time Patient Experience was for sure off the radar screen of physician offices. People made their patients weight an hour, hour and a half. That was the norm. Actually, if your patients didnt wait, it seemed you werent popular. I thought as a patient myself, what would i like, and it was not to wait at all. I spent the last 12 years trying to figure out how to run on time. We track happiness scores. Its basically just going, talking to your customers, in your case patients, finding out what they care about rather than what you think they care about. Absolutely. What i found from serving patients, we see over 100,000 patients a year, they care that we are on time, that were available. We work 7 00 to 7 00. We have weekend hours. When youre sick or have a rash, you can get in the same week. You do so much. Sorry to interrupt. You do so much with companies. It is all about going to talk to your customers. Completely. People forget to do that. Shocking. Smart people. I will admit i just changed pediatricians because in the old ones, the the doctors were great. The experience was terrible. I think that is great advice for other companies. Thank you both. This weeks your biz selfie from vanessa nelson, expert Human Resources in flint, michigan. She does employee training and executive recruitment. Things a lot of companies need. Pick up your smartphone and take a selfie of you and your business and send it to us at yourbusiness msnbc. Com or twe tweet msnbc your biz. Include your name, your company name and your location and hughes the hashtag your biz selfie. Thank you, everyone, for joining us today. We love hearing from you. So if you have any questions or comments about todays show, just email us you us yourbusiness msnbc. C us yourbusiness msnbc. Com. And open forum. Com yourbusiness. We posted everything from todays show plus a whole lot more from you. You can find even more on our social and Digital Media platforms too. Remember to check out our podcast been there, built that. I get to have indepth conversations with some of the smart ettest founders, entrepreneurs and decision makers. We look forward to seeing you until next time. Im jj ramberg. And remember, we make your business our business. Thank you so much. Thank you so were a go . Yes we got a yes what does that mean for purchasing . Purchase. Lets do this. Got it. Book the flights hai si si ya ya ya what does that mean for us . We can get stuff. Whats it mean for shipping . Ship the goods. Youre a go you got the green light. That means go oh, yeah. Start saying yes to your companys best ideas. Were gonna hit our launch date scream thank you goodbye we help all types of businesses with money, tools and knowhow to get business done. American express open. Morning glory, america. Im hugh hewitt. Lots going on this week. Im focused on the bad things big tech is accused of doing and whether donald trump and facebook. Chris coons will join me. But first well start with three of the beltways brightest young stars to talk about donald trump, twitter, amazon, facebook, big tech. Tim alberta of political, is sungyueng kim of the washington post