In order to comprehend the fundamental concept of social media think of traditional mainstream media turned upside-down. With “top-down” delivery of content through traditional channels such as TV, radio, papers, magazines, media companies and advertisers are telling you what to consume, when and how to do it but at a fixed time and location. On the other hand, social media delivers content from the “ground up,” which is why it’s often referred to as a “grassroots” media. Said another way social media is all about content on demand – sometimes even in real-time, and always available to download and be watched, listened to when and where we feel like doing it.
In terms of Return on Investment (ROI), Social Media brings value to the following business processes:
- Human Resources – social media boosts a company’s brand online, therefore attracting more job candidates, and if social media use by employees is encouraged (such as corporate blogging, running company Facebook group), and staff is happier and tend to stay longer. Bottom line is reduced employee turnover; lower hiring and training costs; lower costs for job advertising.
- Customer Service – Social media means open lines of communication between consumer and company, so customer problems and needs can be addressed in a real-time, transparent environment. The result is accountability and trust by consumers and less customer churn, lower customer acquisition costs; higher customer conversion rates.
- PR and Media Relations – Social media is used more and more by mainstream journalists, as well as journalists and bloggers, for spreading the news and views of a company with easy dissemination of photos, videos, and links. A higher profile means more business leads, more sales per customer and for corporate communications and shareholder relations, social media allows a company to keep close tabs on what the public at large, as well as investors, competitors and consumer groups are saying about it which leads to enhanced share value; online reputation management; crisis aversion management.
In every one of these scenarios, increased revenue is the end-point of a strategic social media program’s development and careful implementation. If you have any questions with regard to using social media to add value to your business processes or if you would like more information on social media marketing please contact us