In the last 16 months, many businesses have begrudgingly accepted that social media is here to stay. As traditional marketing agencies scramble to adjust their offerings, new social media agencies have begun popping up like Starbucks’ on the Westcoast. In some cases, they pop up in Starbucks. Notably, Social Media for business is becoming increasingly complex, or as others would say, Social Media is maturing.
Financial Advisers have this saying, if you hear about a good investment on the news, it has already peaked and is no longer a good investment. Social Media is similar to a degree; not that it’s becoming irrelevant, but that its matured beyond what the mainstream ‘idea’ of social media is. It’s moving out of it’s teens and into a stabler, more structured era where decisions have heavier, longer-term results. Social Media must be handled with care and a clear understanding of purpose, which begets the question “Why on earth are you using Social Media?”
Businesses plunge head first into social media everyday. No plan. Half-baked goals. Unenlightened to Social Media’s purpose and perils. I’m sure you’ve heard the following:
- the boss wants a social media presence immediately to capture online sales
- a competitor is on social media so we must keep up
- it’s the way of the future
- all the 20-somethings are using it
- nobody pays attention to traditional marketing anymore
- we need to look like we’re in touch with current trends
If Social Media was just another TV channel to buy advertising on, these reasons, while not strategic, wouldn’t be all that bad, but social media is not another marketing channel. Social Media is actually reflective of a very old consumer need that businesses have forgotten about.
Social Media Purpose
When Social Media went mainstream, in a crazed panic the business world cratered, running around like every customer just boarded Noah’s Ark and sailed away. Hacking together makeshift rafts to pursue that customer base, businesses have taken to Social Media. But the flood hasn’t happened, yet. And customers haven’t sailed away, yet.
In the modern age of overnight shipping, automated purchasing, and companies with global reach, the accountability and feedback achieved through face-to-face transactions have been lost. Social Media is the medium that publicizes the deficiencies businesses have in building meaningful relationships with their customers. Beyond the products they purchase, people want authenticity, quality, friendliness, and commitment that what they buy is what they were promised. But often as is the case with symbiotic relationships, the two sides think differently:
Customers view Social Media as a public square, where they can discuss their positive and negative interactions with businesses.
Businesses view Social Media as a new marketing tool, with expected ROI.
While both sides have truth to them, businesses have the most ground to make up.
Social Media ROI
The real ROI of Social Media is People. As a business, you are investing in people and likewise, you better know what your customers want. Social Media fosters two-way communication, which businesses haven’t done since the era of the General Store. For businesses to use Social Media effectively, they need to transition their communications strategy to excel in a two-way environment.
Social Media IS your businesses most important communication tool to give your customers what they want.
Missing that is detrimental. I write a lot about Gen Y and their increasing influence on the consumer world. The next decade is a transition period for this demographic as they take over consumer spending power. It’s no coincidence that this generation, who values authenticity, conversation, and transparency, have helped bring Social Media into the mainstream.
Businesses who want to capture the purchasing power of Gen Y have an opportunity to restructure their communications strategy and strengthen their customer engagement. Unfortunately, time is not on businesses side; there are now thousands of Social Media channels, tailoring to every interest imaginable.
The flood is coming. As with all mainstream channels, they eventually fragment and the Long Tail of Social Media will emerge. When it does, businesses who have used Social Media to develop meaningful relationships with their customers, will be on that Ark…sailing away from their competitors.
Are you using Social Media to create meaningful customer engagement? Leave your comments and stories below.
