Friday, November 26, 2010

Social Media and the computer literate Consumer

Want to know how companies are enhancing their relationship with their consumers? Think Facebook, Twitter, Youtube, LinkedIn and Myspace just to name a few of these social media sites that have taken communication to the next level. Literally every organization has a website on which a facebook and twitter link could be found.

How about the ever popular, Click on "Like" icon, which provides a direct link to the company's facebook account.

You are clearly falling behind if you have not invested your personal time in private accounts, or if your company fails to secure a prominent presence on various social media platforms. I am not referring to the ads on the right hand side of facebook, or the blinking broadcasts on the top of Myspace, but the actual accounts. This jolt in the social media direction posits that anyone or any organization that truly matters has a facebook page, or even an online blog site which allows proactive interaction between the organization and its consumers and non-consumers.

Does this mean that the role of the consumer has changed? Definitely. No longer is the consumer simply a recipient of information, but social media offers an opportunity for consumers to virtually interact with the organization and other consumers. It is a chance to virtually "tell it like it is".

On one hand, there are the official facebook and Myspace pages officiated and monitored by these organizations. On the other hand, these pages could be operated by private individuals with an interest in, or on the other extreme end, a dislike for the organization. Take for instance, the The Unofficial Apple Blog that provides tips, advice and the personal opinions to the Apple enthusiasts. Also consider the disgruntled customer that spend even more time on creating posts and pages dedicated to negatively affecting the reputation of some organizations. In Dave Carroll's Youtube video, he claimed that on his trip from Nova Scotia to Nebraska, United Airlines broke his $3500 guitar. The extent to which his video negatively impacted United Airlines has not been quantified (but the over 9 million views is significant), however, the time spent to compose a song about the incident indicates the extent to which individuals are involved in the social media phenomenon.

Social media, and this new form of interaction has connected those with critical problems (organization), with those who possess possible solutions (consumer). Consumers are able to present innovative ideas and ground breaking solutions to these organizations, enhancing the possibility of innovation, and ultimately reducing risk. So, is it safe to say that in addition to the platform upon which organizations can stand, social media has augmented the role of the consumer? It is definitely an attractive element, with which David Snyder, author of The Consumer and Social Media would agree.

However, the ideal situation is when we actually get paid for our contribution. It might not be suprising to you  that celebrities get paid for tweeting about a product and/or company. While it might be interesting to get the financial breakdown (click here if you are interested) it is obvious that these companies are aware of not only the influence of these celebrities, but the power of social media and the computer literate consumer.

We can conclude that adjusting marketing strategies to social media, means accepting the growing influence and role of the consumer.

Your business prodigy,
Alc

Source: http://www.marketingpilgrim.com/2008/09/the-consumer-and-social-media.html

3 comments:

  1. Alcina, I find the point you make on how social media has augmented the role of consumers. As a consumer it is very important for me to be able to communicate with the products or services companies that I am interested in. I think it represents a certain degree of familiarity that benefits both; the company and me as a consumer.

    Another point you touch, which is really interesting is the fact that through social media consumers can make their voices be heard and generate impact on companies' behavior. Whether it is for the benefit of the company, or to make a complaint previously ignored by a company. As you said in reference to the Dave Carrol's YouTube video,"the extent to which this video negatively impacted United Airlines has not been quantified (but the over 9 million views is significant)". Thus, companies should be extremely careful of not upsetting customers, and in the case of an incident, they should handle it with care. As we know, word of mouth has a huge impact on consumer's decisions. With the speed to spread a consumer's experience via online social media, companies better keep us all happy!

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  2. I agree with your point of view, however in terms of negative publicity, I'm not sure companies really care about the negative impact. Mainly because it is neither quantifiable nor informative to the amount of business they are losing. For instance, with the song that was written about the United Airlines experience, sure it made a few headlines, but when someone is booking an airline ticket on United Airlines, people don't hesitate and say "that is the airline that has the horrible song written about it." Some people might hear the message but it won't stop consumers from consuming either because "there is no way that could happen to me" or they just don't see the song as that big of a barrier. In the end social media is a great medium for getting your points across and making comments, however some, if not most, are brushed off as complaining or ridiculous talk.

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  3. I agree with you that accepting the influence of the customer is very important, reminds me marketing Cs.Social media if well used can be an asset to small businesses in the global competitive world.Actually they really have no option than to use these techniques to be in the game. I also think businesses should be more careful using social media because negative impact of the consumer response will hamper small businesses in big way. For example, I do read blogs and costumer reviews, response before shopping.

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