Monday, 10 December 2012

Social Media Revolution


The impact of social media on customer relationship management

 

 

 

Nowadays  people are spending more and more time online. Social networking sites, forums, blogs, microblogs, etc. are used as a medium in business, This is a place where business customers complain about the service, but also they praise products and exchange opinions about them. Finally, the Internet has become one of the key channels used in marketing and PR.

 

The main social networking portal that brings together people of different nations, different preferences and interests is Facebook - if it were a country, the number of its users (800 mln) would  put it in the 3rd place of the biggest ones. Lady Gaga, Justin Bieber and Britney Spears have more "followers" on Twitter than the population of Sweden, Israel, Graces, Chile, and Australia.

 

Over 50% of Internet traffic in the UK is directed to your Facebook page. In Poland, about 12 million users are registered in the largest social networking site. YouTube has become the second largest Internet search engine, after Google. Responding to the information within 24 hours of their publication is already too late .... The speed of the spread of information, general access as well as "volunteers" publishing on the web – these are the things  companies will have to face in the near future. As many as 78% of consumers trust recommendations, and only 14% of advertising.

 

Social media provide power and control of customers to  businesses. Companies need to realize that right now the voice of the unit can be picked up by the masses. The strength of social media has already been proven, for  example “The Times newspaper reported that within 4 days of the video being posted online, the United Airline's share price fell by 10%, costing stockholders about $180 million in value.”

 


 

 

 

The social revolution that we are witnessing prompts reflection and the evolution of the activities carried out in the area of marketing and customer service. It is a factor that is forcing companies to change the approach to the customer. Only skilful use of tools such as CRM, BI, RTD and their integration with social networking sites will help learn better the behavior of customers and respond to their posts (the positive and negative).

 

Analyzed social networking sites provide a wealth of knowledge about customers, trends, about what the market requires and what is expected. Most of the users make public information about their own preferences, hobbies, interests - information becomes invaluable at a time when the database is linked to customers. Only the skillful use the information about the experiences of customers gathered on the Internet, which improves future prospects of a company. To be able to do this you need to to link the required marketing activities with the creation of appropriate tools to carry out technical and business process transformation in such a way as to optimize the potential used by social networks, etc.

 

Social Media is not only a fan page on Facebook, or publishing blog posts and microblogs - it is also, and perhaps above all, a community around a brand, a group of volunteers who will work with us to achieve common success. This phenomenon used in the right way can develop a company. Lenovo has decreased by 20% the activity of customers in the call center and  opened a portal dedicated to  its customer service. Dell sells computers through Twitter will have a total value of $ 3 million. 37% of the population had known about a new model of Ford Fiesta via social media before it was presented in the U.S. 25% of the marketing in Ford is devoted to  social media. As many as 24% Genius.com social media leads are converted into sales.

 

 

 

How companies are able to effectively communicate with customers?

 

They can proactively respond to the information to maintain positive relationships at every possible moment and effectively use social media tools to be a part of the social revolution. They can use the social CRM and other tools in conjunction with their experience .

 

Properly designed tools and business processes help companies communicate effectively with customers on different channels and a customer life cycle. Specialists are able to adapt their business processes and implement the tool in such a way that they are used in an optimal manner and in accordance with their intended use.  Companies can understand better their customers and their social networking experiences through the analysis of the data collected with the use of Social CRM, which enables to predict customer behavior better and to adapt the organization to the rapidly changing society and business environment.

 

Questions

 

1) What do you think about the use of social networking sites to communicate with business-to-customer?

2) Are Polish customers prepared for communication with companies in this new way?

3) Have  you observed change in the method of communication in the companies whose services you use?

 

 

Sources:







10 comments:

  1. In my understanding, nowadays, social media activity is an essential marketing tool for every succesfull establishement. It simply allows the company to add "personal touch" to their campaign. It opens new possibility of direct communication and feedback providing

    Poland is a rapidly developing economy region. Hence evalutaing a marketing strategy that includes social media seems to be an efficient solution, taken in account the developement of Polish internet activity during last years.

    From my experience I can identify such solutions as newsletters, subscriptions, online discounts and promo activities that involve personal involvement. I tend to consider that approach to be an effective mean of marketing

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  2. This is a great idea mainly because social networks are the customers - this is already a good enough reason to ensure that they appear in the offer. Second, customers want to discuss, they want to ask questions and get quick answers to them. With Facebookowi or Twitterowi can immediately react to what customers say. Observation Mode gives you a great insight into what is being said about the brand - it's very important to know that you can use to enhance their image and sales strategy. Third, the presence of social networks makes the company transparent, conscious client, open to suggestions, willing to discuss to help. That is, what the client wants.
    The customer is not only a recipient of services or products, but is a person who wants to and can affect their shape. What's more - speaks loud and clear about their needs and expectations, often using the right social networking sites, forums and blogs. An entrepreneur who is serious about their business and its customers, it must meet the expectations of increasingly conscious customers. This is why more and more companies are choosing to use social networking and microblogging communication with the customer. Facebook, YouTube, Goldenline, Twitter - properly used can bring increased interest in the brand. In my opinion, Polish customers are most willing to communicate with companies in this way.

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  3. I wish I could add something to discussion, but if it comes to social media I'm a handicapped person. I don't have FB account or any other account on social web site :) However most of people have. Thats's why it's companies duty to have Facebook account.

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  4. I believe that social media immensely encourages the customers to communicate with companies by sending them messages or other short texts. People also feel more comfortable when they do not have to go anywhere to get some information on the business or company they are interested in. What is more they feel more important when they company leaves a space for suggestions from the customers. I actually think that the rapid economic growth has a lot to do with the development of social media. However, I think that there are not many people who use the media appropriately, especially young ones. They use facebook or twitter to waste their time and enable the internet to manipulate them by advertising a lot of unneeded products. I am also concerned about the use of other types of media. We are experiencing very rapid development of the internet which may imply that people might get confused and forget about the newspapers which are immensely more reliable source of information on business. The social media is a place where people are likely to write what they think, even if it is abusive, because they know that anything they write will not be checked and they are likely to publish some untrue information on some companies because of the growing competition. When it comes to polish customers, I think they are ready for that kind of communication with the companies, as they need to ask questions and gain necessary information like other people. I think they are willing to communicate in this way because it facilitates the cooperation.

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  5. I think the use of social networking sites to communicate with business-to-customer is good thing for small enterprise and people who have direct contact with customer by personalize their product. Then it is much easer to get people attention, when they know that they can discus with person who in example hand-made for them some picture or a scarf. When it comes to the big compaines, I don't realy think that can get popularity or increase their sails by using social media. I haven't ever meet people who but car of fridge beacuse company have a nice status on Facebook ;)

    In my opinion Polish customers are prepared for communication with companies in this new way, but I'm not sure if companies are :) They seem to not know what they want to achieve by having such communication.

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  6. I believe that communication is a man - a company with a social networking site, it is very positive, because they do not have to look for the website and e-mail address. When you need answers on the product can be written on the manufacturer's plate and get a quick return to answer. Facebook Allows many possibilities, thanks to the communication has become easier. Apart from the business, we can also hear the views of the people who bought our future goods or merchandise which consists of the complaint. I feel strongly that such contact has improved relationships with companies, making communication between the client company is very transparent.

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  7. 1) Social connect people at low cost, which is extremely beneficial for entrepreneurs and small and medium-sized businesses who want to expand the range of their contacts. Very often companies use websites to influence the potential customer. As the business operates on a global scale sites help keep in touch over the world, and I think that this is the most positive and reaping the benefit of both customers and businesses.
    2) I think that Poland is still developing in this topic. However, more and more people in Poland, finds out about the many products just social networking sites and the number of people continues to grow.
    3) The traditional way of communication is face-to-face conversation. However, thanks to a combination of interactive computer technology, peer-to-peer is possible at any time. Social networking sites focused huge number of people interested, through the creation of interactive informational meeting places. What's more, members of the community have the opportunity for professional development.

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  8. Am I the only one to think that social networking is not a good tool for marketing and PR? And why do I? I've said that already, because this is the next step to give up ourselves to the total stupidity, lies and manipulation. Someone ever said that some day marketers will live in our homes to live with us and to control our choices and our being. And this is it guys, do you really want to be fooled by companies on facebook? It's like making deal with some company to allow them to put their logo in on the wall in your home, just to show it to your friends when they are visiting you. Seriously, this is ridiculous. Even now i don't want to see these sponsored links on my wall!!! and i have to see without my permission! can't you see, that you have no right to choose what is better for you on the facebook? We are all vritual-beings on the facebook and we are not free in the "facebook country" ourselves belongs to founders of the facebook and they our "virtual government" but this is not a democracy anymore, they make the rules and once you agreed on them, you are not free to choose anymore. I don't think anyone is ready for this type of communication. Don't get me wrong, i am not the guy who always stands on the other side, just to show off but this is the part of the social engineering process and we don't have much time to think what we are really getting, we just see the tip of the iceberg, and this is how i see these changes.

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  9. Nowadays we can't imagine adverts without links to facebook, it's everywhere, even on a bottle of juice. Every serious company which cares on clients have twitter of facebook profile with many promo actions including contests with valuable prizes. I think it's certainly the cheapest way to advert and very effective. In western europe social media went further, if you have an account on foursquare and you have many check-in's you are a "master" and you have special bonuses or discount's.

    Only Younger of Polish customers are prepared for communication with companies in this new way, why? Because older people don't use social media as often as the younger ones and also they don't feel the need to use them.

    I observed that about two years ago suddenly I felt surrounded by a facebook logo's and links to company profiles which were everywhere. This fashion for facebook continues today, but is no longer such a massive attack.

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  10. 1) What do you think about the use of social networking sites to communicate with business-to-customer?

    It is important in many cases, but not in every situation. Does hammers producer needs to have facebook profile for advertise the product? Social media are especialy
    designed for youngsters or people without real interest. Does any normal person spend a few hours a day on social site to inform every mate about his/her life?
    How interesting is this life if it is mostly spent in front of the computer? Is it real, is it cool, is it healthy? For me it is only sad and regretalbe.
    Companies should of course use those poor online creatures to earn more and more money, it is much cheaper than e.g. TV or radio advertisements.

    2) Are Polish customers prepared for communication with companies in this new way?

    Polish are still people, Europeans. Why do they shouldn not be ready? Same internet, same facebook, same huge or interactive billboards on the streets, where is the difference?
    I think polish businesses are not prepared yet to attack us, Polish Europeans in "right", so aggresive and effective way.

    3) Have you observed change in the method of in the companies whose services you use?

    How long period of time do you mean? 20 years ago the internet was not so popular as today, so naturally there was another way of advertisement.
    Before world war II in Poland the advertising market was well-developed in form of signboards, but we can not compare it to the present situation.
    Modern advertisement tools, machines, TV, internet. At present if the company have enough money they use a few marketing tools to customer aquisition, not only internet.
    Smaller enterprises use cheaper tools like less known, specialized newspapers or websites.

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