Improve Customer Relations with Social Media
Social media began to be prevalent around 2005. Today, social media sites like Facebook and MySpace are prevalent among all age groups, although they began with a focus on young people as their main audience, to keep in touch. Today, though, corporations, too, use these sites to improve customer relations. As of 2009, social media has begun to revolutionize the way corporations are managing customer relations altogether.
Garner, an IT advisory and research company, has said that by 2010, 60% of the Fortune 1000 companies are going to be using social media as one method to make customer relations better. That’s good news, but Gartner also states that over 50% of those companies who are going to use social media to improve customer relations will do it improperly, and in fact may actually harm customer relations rather than improve them. Gartner suggests that instead, companies focus on analyzing customer buying online so that they can get figures on return on investment for customer loyalty and sales, specifically as they happen through social media sites.
Gartner says that there are four steps businesses need to pursue to successfully use social media to manage customer relations. The first step is clearly defining the purpose of the social media initiative. Second, they must be willing to give up some degree of control over the medium, because the public wants some degree of ownership of the relationship as a reward for participating.
Companies then have to reward those customers that participate socially. This may mean allowing them to vote on, or otherwise rate contributions and information on the site. Finally, companies must appoint someone in-house who has the skills to head up a social media customer relations initiative. Using social media for customer relations should never be an afterthought. In fact, it should probably have someone specifically devoted to it full time, with their own staff if necessary.
Social networking has indeed changed customers’ and prospects’ behavior, in critical mass. Gartner has stated that these customers can no longer be described demographically in a way that is entirely accurate or adequate; demographics are the usual means of measurement when it comes to corporate customer relations’ effectiveness.
However, with that said, don’t spend a lot of time or effort in trying to use social media as a focus with any great effort unless you know will pay off by driving truly valuable traffic to your website.
Non-linear Creations did a one-year study of the effects of five social media sites (LinkedIn, Facebook, Twitter, MySpace, Stumbleupon) on their own home page. After a year, it was determined that social media sites drove about’% of their site’s visitors from the referring sites in aggregate.
In the Case of Non-linear Creations, Linkedin and Facebook outperformed the other social media sites. That’s important, but it isn’t the whole story. What about conversion rates? Non-linear Creations measured conversion rates by whether visitors downloaded one of their white papers, subscribed to their blog or newsletter, or contacted them by phone or email. In this case - driving real prospects - Linkedin outperformed the other sites. Traffic from Linkedin was much more likely to convert than the average site visitor. Other social media sites actually underperformed the average.
There’s no guarantee that Linkedin will give your company the tangible results that Non-linear Creations got. It probably depends on what type of business you have. It is not quite understood what the less tangible benefits are of reaching customers online in a way that makes them feel as if the brand is listening and cares enough to interact in the way they desire. One of the things people dislike about customer support call centers is their anonymous feel. It keeps them from feeling a sense of relationship to the brand. So far no obvious downsides of using social media for customer service, so it would seem to be in any company’s best interests to use this form of outreach.
It’s certainly not hard to create an account on a social media site. However, it is difficult to make a commitment to interact with customers, listen to them, and analyze your online visitor numbers to see which social media sites give you the best return on investment as it relates to more business or other metrics you choose to measure. Once you know, you can figure out how much effort you would like to put into making social media sites that have not been as effective, more effective.










