Perspectives & Strategy

Leveraging the Social Media channel as a communication tool for many businesses is  a priority. Perhaps one of the key concerns of CEOs or business owners though is how it will contribute to successful business growth. Yet this step requires a leap in thinking in order to be executed successfully.

Sadly there are many so-called ‘Social Media Marketing experts’ talking on this subject on a daily basis. The majority of these are merely advertising people who are simply advising businesses on how to leverage Social Media sites as a tool for traditional advertising. Lets be clear here – there is nothing wrong with leveraging the channel as an advertising mechanism. However advertising only has a tiny part to play in leveraging the Social Media Channel for business success. What is far more important is being involved in the ongoing dialogue. Therefore it is important to take a more holistic view in defining a strategy to manage your social media intervention.

One aspect of Peter Giblett’s new book “Is your Business Ready for the Social Media Revolution?“, is moving away from advertising based marketing towards building a dialogue with customers, prospects and the industry at large.

There are three pillars to leveraging Social Media for business success:

• • Building a communication & collaborative capability
• • Intelligent intervention in the marketplace
• • Generating revenue as a trusted adviser

Some advertising specialists think only in terms of generating in income from this channel, but this approach will not ultimately lead to success. So lets look at each of these in turn.

Communications & Collaboration

The whole history of business involves communication, in-fact trade or barter may have been one of the reasons we humans learned to talk. Humans are adaptive creatures and new communications capabilities will always be arriving, in fact it seems to be a large part behind driving many technological advances. Today we face a changing world of business communications where everything is more rapid, in short bite sized chunks. We naturally want to be involved in a dialogue before we buy anything, the net result is that we want to be able to trust those products that we decide to purchase.

From a business standpoint part of that dialogue involves a wide range of people who are involved in getting any product to market. This more than ever before is a collaborative process. In the past collaboration has been about reaching out via email, we often forget to involve all the knowledge-holders within an organisation, let alone with suppliers, customers etc. Collaborative efforts have always been based on team membership.

The collaborative challenge today demands the involvement of a wider audience, including suppliers, customers, and other partners we are able to improve the level of communication and take appropriate action. Understanding that a customer’s business is closing early on Wednesday for a corporate event and keeping the trucking partner in the loop will ensure that deliveries are re-scheduled and arrive at an appropriate time for processing. Included are industry experts; don’t know the answer to a problem – look it up on-line or find an expert. Social media is bringing those experts closer to your business as a normal resource and in many cases without paying an exorbitant fee (although you should always expect to pay for valuable contributions).

The section “Invest On Relationships” discusses the value to be gained from improving collaboration within the workplace. Everyone has competencies they bring with them from either their social life or prior workplace. They have a sphere of collaboration, starting with themselves, expanding to the people they work with. This builds through teams and departments to the company as a whole. Each step potentially adds expertise. Ultimately it is the individual spheres of influence touch customers, suppliers, and third party partners with whom we are able to build a trusting relationship over time.

Intelligent Intervention

When people are talking about your brand your finger needs to be right on the pulse! The response needs to be immediate, proportionate and relevant.

Googling your brand or company should show your web-site to the top of the search results, but it is unlikely to show what someone just said about you on Twitter. Using traditional search engines it takes time and a lot of effort to discover what was said yesterday. A negative blog may take months to discover via traditional search. This is where it is important to build a social media intelligence capability. is about knowing what is being said about a product and having a plan to respond proportionately in any given situation. The triggers are questions about ‘What is being said about my organisation, my product, my competitors?’ To a large extent these are traditional market research questions, but we have never before had such a powerful view about people’s thinking. People are giving their views every day about topics that may have some relevance to your business. It is driven by what is important to people at a specific point in time.

In addition we can link this general knowledge with a knowledge of the views of customers, when retaining social media ID’s of customers when they make on-line comments (and remember there may be many). This information is closely allied to marketing intelligence.

Monitoring solutions are available that will automatically monitor the Internet buzz and throw up an alert when action is needed. Rewarding recommendations is a key. What do you do when an independent person spontaneously says something good about your product and company? At the very least it is important to thank them, one airline thanked a customer by giving a 25% discount on flights because of something said on Twitter.

Helping people with their problems is one of the best ways of intervening in the marketplace. Solving someone else’s problem will win you kudos, even if the person does not use your product. What happens next time they are looking to buy? You will be high on their wish list and possibly the only candidate.

Revenue Opportunity

Advertising on the Social Media channel will generate an income, but this will generally be at the same rate as advertising on the Internet. We may be able to tweak this a few points by focusing advertising campaigns towards specific demographic groups. But this is not where the real power of the medium lies. For business the Social Media channel is based on trust and expertise. You have to demonstrate expertise in order to build trust, and it is this that will ultimately bring revenue.

This is where leveraging this channel requires a shift in thinking. The marketing communication budget is not simply about advertising, it must now think about customer involvement. A corporation’s ability to leverage the Social Media channel to collaborate and be involved in the marketplace becomes important. It builds a revenue based on trust and expertise in specific areas.

A prospective customer who has found you through a specific Social Media is interested in the services that you have to offer, they will come to you because they already trust you and they are interested in your product. Hey isn’t this better than Yellow Pages?

The ROI of Social Media

Social Media can be viewed by many as the current must-have, but at what cost? Are corporations setting aside the ROI in order to jump start their enterprise social media presence?

It has been said that it is not possible to identify an ROI for collaborative improvements and that we only see the real improvements in the rear-view mirror. Yet defining an ROI for any project or proposed solution is about producing a best estimate at the time the need is perceived. That is as relevant for any Social Media project as it is for any other corporate change. Remember the major impact of social medial is more in the area of business than with the technology that underpins it.

The other aspect here is about contributing to an improvement in business results. This should be measurable through Business Intelligence. It is valid to measure the contribution made by Social Media to the bottom line. This must include a value for the collaborative effort, and for web intervention (including the real value from promotions offered). Spending should be appropriate, but will always be based on business drivers.

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This article is based on segments of Peter Giblett’s new book “Is your Business Ready? For the Social Media Revolution”. This book is now available on Amazon.