2 Big Reasons Why Social Media Marketing Works
“2 Big Reasons Why Social Media Marketing Works” is a sponsored guest post by Tim Peter of Tim Peter & Associates.
Heard all the buzz about social media marketing, but aren’t really sure it’s for you? That’s OK. I understand. But before you dismiss social marketing altogether, ask yourself this question: What are you trying to do with your marketing in the first place? Because social media marketing isn’t something “new.” In fact, you’ve probably depended on its underlying strengths for years.
Here’s what I mean.
If you think about it, marketing, of any kind, exists for at least 2 reasons:
- Increase revenue, either from new or existing customers
- Improve satisfaction and loyalty among those customers
Can social media help make this happen?
Definitely. Social marketing — heck, all marketing — starts with listening to your customer. Let’s take a look at how that applies in the social space.
Increased Revenues
Peter Drucker said, “There is only one valid definition of a business purpose: to create a customer.” You can’t get much simpler than that. You’re here to create a customer. And where would you find these fine folks? You’ve got it, the social scene. Looking for business professionals? Look into LinkedIn. Luxury-minded? ASmallWorld works wonders. And on and on and on. (There’s even this little, general-interest social network called Facebook kicking around. Maybe you’ve heard of it?)
In fact, according to the Pew Internet & American Life Project, roughly two-thirds of adults use social networking sites “on a typical day, compared with 60% one year ago.”
And, as you’ve likely heard, the mobile web increasingly moves towards the mainstream. Guess what those mobile folks are doing? Yep, connecting with their friends, family, fans and followers on social networking sites (well, 55% of them — and that number’s growing each year).
If the first rule of marketing isn’t “Listen to what your customers tell you,” it ought to be. Your customers are out there, right now, carrying on conversations about their setbacks and successes. Each of those conversations provides an opportunity to serve your customer better, an opportunity you’re missing if you decide “social doesn’t fit your brand.” But, as I’ve said for years, social is people. If you make that decision, remember, you’re also saying engaging with people doesn’t fit your brand, either.
From Listening to Action
Did you know that bad reviews sometimes lead to higher conversion rates? It’s true. Some data suggests that poor reviews of products and services increase awareness for those offerings and may positively influence consumers’ perception of how those offerings will meet their needs.
Even better, responding to those reviews helps business owners demonstrate their commitment to correcting any issue their customers may face. For instance, recent research by Forrester Research found management responses to negative reviews on hotel review site TripAdvisor positively influenced guest opinion of the property. And, of course, you can use anything you learn from consumer reviews to improve your operations, too.
Additionally, many companies are listening to their customers as part of their product development process. Vitamin Water “crowd-sourced” its latest flavor by gathering input from its Facebook fans. What better way to “create a customer” than have them help you design the product?
Improve Satisfaction
Of course, you’re not the only one listening to your customers. Their friends and family, fans and followers already pay attention to what they’re saying throughout their various social networks. In fact, they’ve been saying these things for years. The difference is, the social internet offers them a megaphone, allowing them to broadcast their point of view over more than just the back fence.
Countless examples exist of companies listening poorly — or not at all — to customer complaints in social communities online. From The Gap’s logo-gate to Groupon’s failed Superbowl ads to “United Breaks Guitars” — which even has its own Wikipedia page (!) — company after company has learned exactly how powerfully this “megaphone” amplifies customer concerns.
Happily, many other companies have learned these lessons and worked with their customers to improve perceptions — and shape the dialogue in their favor. Morton’s Steakhouse, The Four Seasons Palo Alto, Comcast, Best Buy and others offer textbook examples of how to listen and engage with customers to improve service and brand reputation.
Conclusion
Marketing, whether social or not, seeks to find new customers and keep your existing ones happy. When you add social to the mix, you get to hear your customers’ concerns one-on-one and act accordingly. Social sites connect you directly to what your customers have to say about their needs and desires. The real question now is, are you listening?
Tim Peter helps companies put the web to work to grow their business. He has worked since 1995 developing innovative e-commerce and internet marketing programs across multiple industries. Prior to launching Tim Peter & Associates, LLC, a full-service e-commerce and internet marketing consulting firm in early 2011, he worked with the world’s largest hotel franchisor and the world’s premier independent luxury hotel representation firm to help hotels and resorts across diverse segments achieve more than $2 billion in online revenue. He can be reached at tim@timpeter.com or 201-305-0055.