Social Media Marketing

Social Media Overview, Part II

02/26/2009 at 4:33 pm | Posted in Uncategorized | Leave a comment

Businesses rely on supply and demand to generate revenue. But today’s customer is much more technologically advanced than those of the past. Customers rely on the opinions of others and their ability to talk to the company from whom they are purchasing items. Word-of-mouth marketing has become a driving force in brand recognition and product/service purchasing. These interactions are at the forefront of social media marketing.

Social media is about making connections with people – customers, vendors, the general public. In order for social media marketing (SMM) to be effective, you must listen and participate in online conversations. You must be authentic and transparent. You must be actively engaged in your online community.

● Social media marketing is not another advertising vehicle.

● Social media marketing is not about displaying your logo.

● Social media marketing is not about pushing your product at every possible opportunity.

● Social media marketing is not about setting up a fan page on a social media site and waiting for others to find you.

Companies need to become actively involved in the SMM process to avoid “talking at” their customers. By listening to consumers, using consumer feedback in decision making, and actively participating in the consumer’s world, companies can become more personable and less “promotional pushers” in the eyes of the consumer.

It is no longer acceptable to be a follower. In order to be successful in today’s global economy, businesses need to break traditional molds and look for innovative ways to reach their audiences and generate more awareness of their brands. Social media marketing relies on word-of-mouth marketing to generate a buzz around a company and its products/services. That is not to say that SMM is replacing traditional marketing strategies and tactics. Any comprehensive marketing plan needs a strong mix of traditional and Web 2.0 strategies and tactics in place.

Most companies invest 2-10% of their overall marketing budget towards social media or “innovation funds”. Instead of waiting for consumers to come to you, the organization should go to their customers. It is the organization’s responsibility to provide the tools needed for their consumers to engage and interact with the company and community-at-large. User-generated content and social networking enable companies to talk to their target audiences while the members of that audience talk to each other. Through user-maintained profiles, companies can gain valuable demographics that can be used in future campaigns, by the sales staff, or by R&D to develop/reconfigure products.

Many organizations fear the perceived loss of control over marketing and public relations when it comes to SMM. It is not a matter of losing control. It is a matter of directing your audience to leave feedback in a monitored environment that you can control (at least somewhat). Deleting negative comments does not erase issues; often deletions make the company seem less trustworthy to consumers. Companies should not fear negative comments or critical feedback. They should view them for what they are: constructive criticisms that should be analyzed and used in future decision making. A monitored environment allows organizations to focus on and respond to consumer complaints without the consumer posting negative information on other external (unmonitored) forums. Often times, other consumers will come to the defense of the company. This consumer-to-consumer trust holds a much stronger bond than business-to-consumer relationships.

In turbulent economic times, SMM becomes an increasingly beneficial resource. The most obvious benefit is the relative low-cost/high reach of implementing social media tactics. While consumers are less inclined to buy high-priced products, they are willing to engage in discussions. SMM can help retain customers while nurturing prospecting customer relationships. Those who choose to make purchases are more inclined to buy from companies they know and trust – and those companies who come highly recommended by other customers.

Social media marketing provides the tools and guidelines for actively engaging with your consumers. Social media is still an emerging communication vehicle, but organizations like the Blog Council are working to develop standards and practices that can be utilized by individuals and corporations.

Companies should consider the following statistics when planning a social media campaign.

• 93% of social media users believe companies should have a social media presence
• 64% of consumers want to see user ratings and reviews
• 84% would trust user reviews over a critic
• 59% of consumers interact with companies via social media
• 1 in 4 individuals interacts with companies more than once a week
• 85% of the 18-34 demographic regularly use social media
• 63% of Chief Marketing Officer’s (CMO) plan to increase in their interactive and digital marketing budgets (social computing, blogging, podcasting)
• 59% of CMO’s were planning to decrease their traditional budgets
• 94% agreed with the statement: “A tough economic period is precisely the time when marketing plays a key role.”