Tag Archives: revenue

CEO Social Media to Social Customer Relations

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CEO Social Media

According to an IBM 2010 case study Getting close to customers is a top priority for CEO’s. Many of today’s businesses are working valiantly to maintain or implement social media programs that address their business needs and requirements. In order for businesses to be successful on implementing such systems, customers must be presented with some form of value for their attention, time and most importantly their data.

The first point to consider is the speed at which social media has exploded and is being adopted by consumers and businesses. In 2010 it was reported that there were more than 500 million active Facebook users, also in 2010 Twitter hit the 10 billion tweet mark. This staggering record by Twitter was then outshone later on in the same year in July 2010 by which time the tweet record had doubled.

It is clear to see that social media is an active platform where many regular and potential customers are congregating and this is where businesses must act, what if all of your target market and potential customer where all in once location at once? This in a nutshell is social media. Social platforms therefore hold enormous potential for companies to form and build relationships with their consumers and get closer to understanding each individual better. By doing this businesses are able to facilitate an increase in revenue , reduction of costs and improvements that increase efficiency. This information has clearly impacted the industry with many businesses quickly acting in constructing social media initiatives to reap these benefits.

“Our social tools are not an improvement to modern society, they are a challenge to it.”
― Clay Shirky

CRM is Now Social!

The main issue presented by social media in customer relationships stems from the traditional approach to customer relationship management (CRM), the traditional approach typically focuses on extracting the best value from each customer with the business being in control. With social media, companies face a different challenge in maintaing relationships in that the business is no longer in control of the relationship. Instead customers and their networks are now driving the conversation between business and consumer. This power of the customer is far greater than that of the business and has the ability to out do and out perform the strongest marketing strategy and sales efforts with unprecedented immediacy.

Companies must therefore embrace this new approach and update their strategy by adopting new elements of CRM, this recognises that instead of the business managing customers the role now shifts to facilitate the experience and opinions that customer present.

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Interesting Infographics #1

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Interesting Infographics #1 Business Activity On Social Media

Welcome to the first in the series of Interesting Infographics, this series of posts I will aim to provide a different Infographic highlighting different areas and aspects of social media and business.

Interpreting Infographics

The average person spends over 6.2 hours on social networks per month, this culminates to the average person spending over 22.5% of their time utilising a social platform. This vast amount of time spent clicking,tweeting and surfing is a large resource of user attention that business may be to act upon. This point is further emphasised by the second main part of the above infographic showing the level of social commerce, which over the past year has grown and is predicted by 2015 to rapidly expand to a level equivalent to $30 BILLION. This large-scale of activity will enable business to tap into new revenue streams by being able to reach new customer bases through their use of social media platforms. However the presence of multiple large corporations is often unwelcomed by the online communities that use these sites with 87% of Fortune 100 companies in the us and 100% of FTSE 100 companies in the UK utilising a social media presence. The argument for this use is that by allowing businesses and corporations onto these social platforms customers will be able to reap the benefits of better customer service and better businesses – customer interaction. In both cases the most popular platform for businesses to utilise is Twitter with over 2.7 million followers of FTSE 100 corporate accounts it is clear to suggest that some social users accept the and welcome businesses to be on social media sites.

In contrast to the larger businesses smaller to medium size businesses often struggle in this area due to mainly lack of understanding and also in some cases due to the size of their customer base. This area is where the use of a social media can provide a smaller business a platform from which to springboard in order to compete with those who operate on a larger scale. An interesting environment is now arising as more and more small businesses aim to increase their use of social platforms and this year alone has seen an 80% increase by small and mid size businesses adopting a fresh new approach to social media use.

This means that the social environment currently dominated by larger corporations will soon be undergoing a change as more and more smaller often local businesses uptake social media and begin to fully utilise these platforms to complement their business objectives and needs.

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Media Myths #1ROI & Social Media

Myths-Busted

Media Myths Busted!

With social media being a fairly new platform for business to operate in, there are many skeptics that actively frown upon it’s use by many businesses. Over the next few weeks I aim to help bust many of these common myths surrounding social media and business use.

#1 You Can’t Measure Return On Investment In Social Media

For many this will be the first myth they encounter when trying to sell the concept of social media. However this can also be the first myth that is busted!

Why it’s perpetuated: Many social media experts know how to use social networks to socialise, but they have little to no marketing expertise meaning they don’t know how to turn all that socialising into cash flow. This can also be the same situation with small business owners. The idea that social media is to socialise and therefore not for business, however this view is now being changed with many companies now capitalising on their use for business purposes.

Myth Busted!

So how do you turn something social into a platform that can be utilised by business?

Action plan: Three basic steps:

  1. track where your users are coming from; How did they get here? Who recommended them? Why did they choose you?
  2. identify the actions they took on your site (making purchases, viewing a post, or just browsing , whatever); The message here it to understand what your site is mainly being used for, thus helping you tailor to enhance the end user experience.
  3. calculate the value of that activity; using tools such as google analytics or other analytical software in order to be provided with insights upon which ROI can be constructed. Setting KPI’s for which to measure success ( daily views, amount of sales through website etc.)

It is clear to conclude social media can be utilised to provide actionable data that businesses can interpret in order to justify  a platforms use.

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