The extent of the social media reach over the last couple of years has been undeniable, with the number of professional user clubs on webpages like Facebook and LinkedIn swelling up more than 10 fold or over 1000%[i]. Perhaps owing to the recent economic downturn, more and more companies have taken marketing efforts to the internet, utilizing social media as an effective way to save costs and foster an intimate relationship with their consumers. It’s no wonder then, with recent headlines boasting of multi-billion dollar valuations of popular vehicles, Twitter and Facebook, social media companies and start-ups have been able to grow at an exponential rate. With these companies being valued at such astronomical amounts, there’s no doubt social media is valuable, but the question remains; how valuable is it to the organization?
As popular as the medium is, many organizations, particularly the B2B lot, have not adopted this medium because they are not convinced it will lead to tangible benefits and bottom line realizations for the firm. Nonetheless, for whatever reason (convenience, ease, breadth of information) the internet is quickly becoming the consumers’ go-to resource for seeking out the company they want to do business with. As a result of this, social media will become an important way the organization delivers its messaging and communicates with its intended audience. Social media’s omnipresence and monopoly of the internet has shifted the question from: ‘why should we, as a business, care’, to ‘how can we get involved?’ It’s no longer an issue of if you should participate but rather, what is the best way?
There are many social media options available to the corporation but not all are relevant. For the B2B organizations, who do not deal directly with consumers, the use of social media is better justified if it contributes directly to the bottom line or has positive ROI. Many business leaders want to use social media but are not sure about its costs, benefits or which particular forms would be most effective. Financially, social media is not a large investment. Since most social media companies get their revenue from advertising, signing up for these platforms is free, the only costs incurred being other resources like time (to manage the medium) which is a small price to pay given the simplicity of use. And although, there are no immediate tangible benefits of using social media, it can lead to intangible benefits that will ultimately, if used consistently and effectively, lead to bottom line realizations for the firm.
Among the most popular and effective forms of social media, especially for the B2B case, are social networking (Twitter, Facebook, LinkedIn) and blogs[ii]. Twitter is an effective communication tool that can at the simplest level be used to deliver information directly to your audience, about product offerings, new launches, company news, etc. It is a free form of advertising, with all of your consumers, literally at your fingertips. Blogging is a form of communication that hits at a deeper level, and has a more humanistic element. Since blogs are usually light-hearted and content can vary beyond company-based information, they allow you to create a distinct brand identity and personality, establish likeability and create a more inclusive relationship with your customers.
One of the greatest advantages, and some would say disadvantages of social media, is the aspect of real-time. The ability to deliver your message immediately has changed the face of advertising and marketing. Being able to reach your customers at a moment’s notice, getting them the information as soon as possible so that they can make decisions immediately, is pertinent. The ability to control your corporate identity in real time is powerful, even if for the sole reason of damage control. With Twitter, you are able to deliver immediate retractions, corrections, apologies, respond to customer complaints, and even locate disgruntled customers and correct their problem. This is crucial, especially with a consumer culture rooted in immediate gratification and entitled satisfaction where no one wants to wait for support or help. A company whose business relies on their ability to support their customers, a company who guarantees immediate response, needs to be able to respond to their customers on all levels, social and not, to create and maintain a congruent image and ideology. In this way, these mediums become an active corporate image management tool, with you in the driver’s seat.
Furthermore, there are many other benefits of social media. Firstly, it lets your customer define who you are. Through these mediums you get access to free market research, in terms of what your customers are saying about your brand, product, service and competition. You then have the ability to alter or manage your offering or image based on their needs and wants. Secondly, you have the ability to engage and entice current customers, keeping them interested in who you are and what you are doing. Lastly, by creating the appropriate keywords, links and tags in social media site profiles, blog posts, articles and forum discussions you can lure the desired target market to you. Many viable, prequalified leads can be directed to your content automatically through search engines. By searching for something they were obviously interested in, need is matched with demand and a mutually beneficially relationship arises.[iii]
Social media is and will continue to be a valuable resource for the organization, in its future marketing and branding efforts. It will serve as a benchmark of innovation and indicator of company agility and progress. The key will be to use social media intelligently and effectively pertaining to your specific industry and target consumer. Done this way, you will achieve optimal results with minimal efforts and resources. Value can be defined in many ways (financial, social) and it means different things to different organizations. While the value of social media may not be completely measurable, it is becoming clearer that this medium cannot be ignored and disengaging from it will definitely lead to negative consequences for the firm in the future. When it comes to social media, just simply choosing to participate will identify you as a player in the game. The future is social, so get off the bench and join the party!
[i] http://www.articlesbase.com/computers-articles/how-can-implementing-a-social-media-presence-on-the-internet-be-effective-for-the-firm-owner-or-marketing-manager-3745132.html
[ii] http://kevinmcintosh.com/social-media-marketing/different-types-of-social-media
[iii] http://www.articlesbase.com/computers-articles/how-can-implementing-a-social-media-presence-on-the-internet-be-effective-for-the-firm-owner-or-marketing-manager-3745132.html