As the Internet era began, Web sites such as Google, Facebook, LinkedIn, MySpace, YouTube, and many others we fail to mention in this presentation have emerged. Public interaction has enabled consumers to voice an opinion, share experiences and simply reach out. Transition from monologue types of media, mainly used by television broadcasting, converged to dialogs. As a result, the traditional content recipient, who watched television ads for decades, became the content contributor. Businesses realized this convergence, and tapped into the information and feedback ocean, which in the past they could get only by allocating humongous budgetary funds for marketing surveys.
The user pumps information into the social media spaces, content gets published, and trends and preferences are drawn from published content. From there products and services are - that were created based on user feedback - placed on the social media interfaces to trigger the user’s attention. This is how we describe the continuous cycle of social media for business-to-consumer environments. The name of the game became “Engagement”. The more engaged the business is with the consumer, the more precise a one-to-one relationship is generated out of the interaction. Without a doubt this cycle creates leaner marketing strategies where measurements such as conversion per click exist to rapidly evaluate the effectiveness of marketing strategies.
Each social media tool functions differently to deepen consumer relationship. Blogs, branded social media network sites and other Web sites - where the content is distributed, discussion forums exist, innovation hubs are created (by central consumer community) to foster innovation , Wikis exist, Twitter exist and ratings/reviews exist - had their own affect on creating consumer trends.
The study done by Wetpaint and Altimeter ranks the top 100 companies for engagement. The graphs shown (this one and the one that follows) were created from the engagement rankings. The conclusion is that the greater the number of social media channels employed, the higher the engagement rate. The engagement scores, for the auto companies shown on the chart, also correlate with revenues of the companies. The higher the engagement, the higher the revenues. The dotted line represents the median to set the standard for the industry.
Once you begin a social media program, it is an on-going process. You cannot quit. Carefully pick channels and only engage in areas that make good business sense or meet the needs of the brand. Toyota encourages its employees to engage in the company’s social media channels.
This graph shows the performance of technology companies in the social media engagement game. The dotted line represents the median to set the standard for the industry.
Traditionally the buying cycle in B2B takes longer than B2C. Therefore, having an open door of communication between the potential customer and an online community manager could be the determining factor when it is finally time to make a decision. That open door is the social media’s engagements through selectively targeted networks. Anyone who has valuable input or feedback is included in the SAP social media network, which utilizes forums for feedback on possible an idea or a potential opportunity. Product managers use the social media tools to communicate information about their new products. As far as selection strategy of social media networks, SAP engages in channels where clients (people) already exist. SAP’s Twitter channel invites current users to communication to learn about customer needs. The open-end communication strategy is also a reflection of the organizational culture at SAP. The end goal is to enable SAP consumers to be more successful, so that they buy more SAP products and services.
As we looked at both B2B and B2C practices for social media, it is inevitable that proper implementation and usage of social media promises a great value for both public consumers and enterprises. Not only does social media promise more precise product and service determination, but it also signals great economical benefits, especially as marketing efforts become more condensed and measurable. However, there remains a great deal of privacy issues yet to be addressed.
1. Privacy for B2B and B2C <ul><li>Sehnaz Oner </li></ul><ul><li>Anan Putikotchakorn </li></ul><ul><li>Yvonne Scott-Younis </li></ul><ul><li>Rena Salamacha </li></ul><ul><li>Michael Wong </li></ul>
2. <ul><li>Social interaction enabler via the Internet </li></ul><ul><li>Transition from monologue to dialogs </li></ul><ul><li>Traditional content recipient becomes the contributor </li></ul>
4. <ul><li>Blogs </li></ul><ul><li>Branded Social media network sites </li></ul><ul><li>Content distribution to other sites </li></ul><ul><li>Discussion Forums </li></ul><ul><li>Innovation Hubs </li></ul><ul><li>Wikis </li></ul><ul><li>Twitter </li></ul><ul><li>Rating and Reviews </li></ul>
6. <ul><li>Timing and Nature of the social media program </li></ul><ul><li>Selection process of social media distribution channels </li></ul><ul><li>Encourages all employees to participate in the company social media outlet </li></ul>
8. <ul><li>Allows anyone to participate </li></ul><ul><li>Utilizes forums as focus groups </li></ul><ul><li>Finds social media outlet where targets are actively engaged </li></ul><ul><li>Encourages social media interaction as an extension of the company’s culture </li></ul>
9. <ul><li>How much information is needed for businesses to achieve a balanced marketing strategy? </li></ul><ul><li>How much of personal information is public? </li></ul><ul><li>What are the standards for Privacy policies of social media? </li></ul>
12. <ul><li>Creation of Standards over security measures </li></ul><ul><li>Legislative regulation for the security technologies and methods </li></ul>SECURITY MEASURES
13. <ul><li>Social Media and its privacy policies remain a highly debated subject. </li></ul><ul><li>Privacy policies offer customers a reasonable idea of how personal information will be used in the future, but may be subject to change. </li></ul><ul><li>Customers should remain watchful of sensitive information they make available. </li></ul>