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Pumping propane into the social scene

When Ferrellgas hired Scott Brockelmeyer 12 years ago, the retail propane giant held two strong beliefs about the industry: Rural Americans were not online and consumers did not use the Internet to find, research and interact with propane providers.

“We were dead wrong,” admits the vice president of communications and marketing for the nation’s second-largest propane retailer.

Today, Ferrellgas has completely changed its outlook, running a Web site that generates about 7,000 hits a day and interacting with customers digitally through social networking sites such as Facebook, LinkedIn and Twitter. Through its research, Ferrellgas discovered the importance of Web-based social networks as another communications tool to reach propane customers, educate them and nurture those relationships.

“It’s here to stay – let’s make no mistake about it – and we think it’s smart for us to be in that space and devote time and resources into that space,” Brockelmeyer says. “We’re pretty passionate about the value of social media as a marketing and communications tool.”

Still relatively new – LinkedIn (www.linkedin.com) launched in 2003, Facebook (www.facebook.com) in 2004 and Twitter (www.twitter.com) in 2006 – “the big three” social networking sites are slowly making their way into the propane industry as companies learn how to utilize them.

According to the Microsoft and Accenture Oil & Gas Collaboration Survey 2010, 75 percent of 275 oil and gas professionals surveyed see the value in using social media and collaboration tools at work – even if the push is not driven from the executive level.

Joining the conversation
“Social networking is a quick way to share information, and there is usually little to no cost,” says Bonnie Walker, managing partner of dbVisionworks LLC, a custom database and Web development firm in Kansas City who works with Propane Resources. “People who participate can engage in conversation with others who share similar interests, and there are no physical or geographical boundaries.

“People tend to use social networking sites for up-to-the-minute information, whereas they may go to a company’s Web site for information that is more general,” Walker adds.

Joe Pulizzi, author, speaker and strategist for content marketing and founder of client-vendor matching site Junta42, says social networking sites allow companies to get direct access to customers – but on the customers’ terms. That means customers aren’t looking for a sales pitch.

“If you are joining the conversation with them and have helpful information for them then that’s where social networking can have an impact,” Pulizzi says. “Done right, social networking can attract new customers, continually retain loyal customers, aid in search engine optimization and even drive sales.”

According to Junta42’s 2010 survey of 259 marketing professionals, almost three-fourths of all companies are distributing content through social networking sites.

“Social media is not a fad anymore,” Pulizzi says. “Propane retailers have no choice but to have a presence on key social networking sites. If not, there’s a good bet competitors will be there.”

Companies can create Facebook and Twitter pages with information and news for their customers. Both social networks offer a running dialogue that gives customers a chance to comment or respond to a particular topic. Customers can become a “fan” or a “friend” of a company on Facebook or “follow” a company on Twitter. With Twitter, users send short messages of 140 characters called “Tweets” – quick and to the point.

LinkedIn, on the other hand, allows users to build a network of connections that are linked through past or present employers, friendships or other groups. Users can pick and choose whom they add to their network. LinkedIn is often used for business-to-business communication.

Communications tool
With social networks, Walker says, propane retailers “can update their customers and friends on the programs and services available, deadlines for those services and programs, dates and times you will be in certain areas making deliveries, special events or special offers such as rebates on products offered.”

Ferrellgas has news and highlights on its Facebook page as well as videos and photos (it also has a YouTube channel). The company has three Twitter accounts, which are used to announce job openings, promote the Roush propane-fueled Ford F-250 pickup and disseminate safe-grilling tips through its cylinder exchange business, Blue Rhino.

“Certainly [social networking] is a no-brainer for us,” Brockelmeyer says. “Fortunately we have the personnel to monitor those sites, post to those sites and build a presence on those sites. We’re devoting a handful of hours a week, but you can devote as much or as little as you want to it.”

Walker says the propane industry has been unhurried to transition to the Internet as a whole. However, she believes with time, assistance and “a little nudging” it will accept and embrace social networking, seeing it as a beneficial way to communicate with customers in a more personal manner.

Tom Jaenicke, owner of consulting company ATomik Creative Solutions and a member of the LP Gas Editorial Advisory Board, helped to organize an education course at the upcoming Southeastern Convention & International Propane Expo, on April 10-12 in Atlanta. “Effectively Using the Web to Enhance Your Business,” led by Propane Resources’ Walker, covers social networking.

“There’s a big lag factor with a rural business like propane, but it’s starting to get more involved,” says Jaenicke, noting that many companies remain in need of Web site development first. Jaenicke uses LinkedIn and the online address book Plaxo, and he also plans to open Facebook and Twitter accounts this year.

Chairman of the National Propane Gas Association’s (NPGA) Conventions Committee for the past three years, Jaenicke says association leaders are considering social networking for event promotion.

“NPGA is in the early stages of exploring social networking opportunities,” adds Jennifer Tomb, director of conventions and meetings for NPGA. “We filled a vacancy for a communications coordinator position who will be working on the game plan for implementing social networking for the association and its meetings, starting with Propane Days in June.”

The Propane Education & Research Council (PERC) is also in those early stages of its own exploratory project. PERC is working with business-to-business media and information company Hanley Wood on uncovering and monitoring conversations that are taking place about propane. This includes specific topics of interest, such as engine fuel, or common questions and concerns about the industry on social networking and video sites, blogs and discussion boards. PERC will use the results to develop a strategy to fill that void of information, and it could include social networking tools.

“PERC wants to know the type of conversations out there so they can proactively prepare propane marketers to talk to customers. Marketers can be educated on the types of conversations instead of waiting for things to happen,” says Kerry Manaster, vice president of interactive strategy for Hanley Wood.

Young blood
Jim Renaldo, director of sales and marketing for the Renaldo Group of Companies, embraces the concept of social networking. He’s a proponent of LinkedIn, which he uses to promote his companies and The International Association of Young Gassers. The Young Gassers’ group on LinkedIn is composed of 175 propane industry professionals. LinkedIn provides one location for members to discuss a variety of topics and read industry news, in addition to making connections.

“It makes it easy to figure out who you know and who you know in common,” Renaldo says of LinkedIn. “That builds bonds and relationships, and relationships build business.”

The Young Gassers’ LinkedIn page was created for the industry’s younger generation, Renaldo says. “This is how they grew up, with social networking, and how they’re maturing in the industry,” he adds. “What we’re doing at Young Gassers is setting up a platform for them to communicate more efficiently with members of their industry.”

Others in the propane industry are learning how to adapt social networking to their business models as well. Here’s what several of them reported about their experiences:

• Smart-Hose Technologies: “We are already using Facebook to promote our company,” says Robert Nathans, sales engineer. “I have added a Facebook link on our Web site [www.sm
arthose.com] so people can go directly to our page. I have also set up a Twitter account that is connected to Facebook so information is updated on a regular basis. I also use LinkedIn as a tool to reach out to various groups that might have a need for our hose assembly.”

• The Lite Cylinder Co.: “We hope that more people in the industry will start to see the importance of social media and join in,” says Mary Katherine Barranco, account strategist. “Social media is still new for us, but it has been growing each month.”

• Tod Bergen, an insurance broker with The Securus Group: “I have been building connections through LinkedIn, and I am in the process of getting a blog started so that my connections have a site to view my services. I do not use Facebook as much, but I am planning on using Twitter as another site to make connections.”

• The Pennsylvania Propane Gas Association features a comprehensive Facebook page, sends occasional Tweets and also has disseminated video e-mail messages to its members through its Keystone Energy Zone channel (www.keystoneenergyzone.com). Association President Shelby Metzger says the association contracts with media consultant and content generation company Resource360 for its press releases and social networking content. “It’s an electronic world,” she says, noting the push has been “worth the time and effort. It’s a great way to reach people and keep information up to date.”

Making the attempt
So what’s the first step for propane companies interested in launching a social network? Pulizzi suggests first asking: Where are my customers hanging out?

By utilizing search tools, such as Google Alerts and Twitter Search, and inputting keywords related to propane, key customer questions and your location, companies “can determine what customers are talking about and where they are hanging out,” Pulizzi says. Companies then need to develop consistent information and helpful tips around customer challenges and deliver content into those channels.

“First look at the ‘big three’ – Facebook, Twitter and LinkedIn, but don’t forget about core sites to your industry,” Pulizzi says. “What are the top 10 to 15 blogs your customers spend time on? Are there any forums or niche sites that you could find your customers on? Those are the sites we need to insert ourselves into the conversation.”

Propane Resources’ Walker suggests her personal favorites – Facebook, Twitter and LinkedIn. Create a Facebook account, set up a fan page for your business and invite employees, customers and family members to be your “friends,” and watch your community grow, she says.

“Think of this new service as a networking event just as you would go to your local chamber of commerce for its networking event,” Walker adds. “Advertise through your Web site and let your community know that you are there, ready and willing.”

People are not expecting a large amount of data, Walker notes. They are seeking short, concise snippets of information. She also suggests recruiting a couple of employees to help keep content fresh. Otherwise, “friends” might stop visiting your page.

Just as social networking sites allow companies to become part of the conversation and promote their services and solutions to customers, Facebook and Twitter provide avenues for customers to vent their frustrations about a company as well – one possible drawback of the online tools. The possibility exists for negative feedback from customers, and companies must be open to that criticism, Pulizzi says.

“If you delve into social media, you must be authentic or it just doesn’t work,” he adds. “These are humans conversing with humans. Company speak doesn’t work. If negative comments are uncovered, they were probably happening anyway, but you just didn’t know. At least now you know.”

Ferrellgas uses customer comments – good and bad – to rate its performance and react to a situation, Brockelmeyer says. That might mean thanking customers who give a compliment or apologizing to them for an inconvenience. Either way, social networks allow companies to follow those conversations.