Wednesday, 4 June 2014

Success in Social Media Marketing

“Conventional marketing wisdom long held that a dissatisfied customer tells ten people. But…in the new age of social media, he or she has the tools to tell 10 million” Paul Guillin, author of The New Influencers (HBR, 2014)

Many businesses and organisations are still baffled on how to use Social Media platforms to effectively market their products and/or services. Companies are spending precious working hours on the new trend of Social Media. There is in a sense a ‘Herd Mentality’, whereby companies are simply following suit and assuming they need the top 4 (Facebook, Twitter, LinkedIn and Youtube). Whilst these can be used effectively, it much depends on what type of business you are running as to what kind of social media platforms you should be using. However, the lines are blurred and therefore most companies simply opt for all and manage them in the same way. Social Media Marketing is fundamentally different from traditional marketing techniques. Businesses need to consider goals, objectives and metrics.

Social Media is now an integral part of online consumer’s habits, but many efforts to engage with these consumers via online platforms have been futile. The Harvard Business Review found that only 12% of businesses feel they are using social media effectively (HBR, 2014).

This ‘social stagnation’ may be due to a number of things:
-      -    Social Media is not necessarily an ideal marketing channel for every business
-      -    Lack of a clear social media strategy: including listening and content strategies
-      -    Lack of attention to social media channels: creating them, but not maintaining or using them

The Harvard Business Review also revealed that 75% of companies did not know where their most valuable customers were talking about them, 31% do not currently measure the effectiveness of social media, only 23% are using analytic tools and only a fraction (7%) are able to incorporate social media into marketing activities (HBR, 2014).

Ric Dragon, an expert in online marketing identifies 7 Ways to make you successful in social media marketing, coining the term ‘Social Marketology’ (Forbes, 2014). I have shortened and adapted his 7 points in order to convey a way to develop a digital marketing strategy. The objective of strategy is to achieve a competitive advantage, which will result in superior performance. As most companies have insufficient knowledge of how to use social media marketing effectively, gaining this knowledge can greatly increase a company’s competitive edge, and therefore their brand awareness and market share. 

Focus on desired outcomes first: Social media objectives: increased brand awareness, lead generation, service and support and reputation management.
Incorporate brand personality and voice: Culture > humanized brand voice: listening carefully to the tone, vision, and expertise of that voice.
Identify the smallest segments possible of your constituents:  Social media allows you to be hyper-granular and drill down to micro-segments, to dramatically improve engagement levels and conversion ratios.
Identify the communities for these micro-segments: today a community is characterized by what they value, more than proximity to one another > should create own online community > blog and social media engagement > communities then = advocates.
Identify the influencers of these communities: Social media brings all the aspects of important influencers these days, including peer pressure, authority and credibility. Feedback from social media operates in real time; you don’t have to wait months for results. You spend the months influencing the influencers.
Create an action plan with metrics:  listening plan, channel plan, SEO plan, and a content creation plan, with activities and metrics.
Iteratively execute and measure results. Measuring is all about ROI = customer acquisition cost, revenue growth or profit etc. Iterate and expect to pivot, based on results, because you can’t get it all right the first time.

To really have success in your market you must apply the above to your own business or organisation and try different techniques. However, there is no trial and error. As a rule of thumb first ask yourself whether you will be marketing B2B, B2C or both? This will give you a standpoint to start using the appropriate channels, although arguable, Facebook is usually considered as the ideal portal for B2C and LinkedIn the Ideal platform for B2B as it links professionals and companies together. But this may not always be the case.
Ultimately, it’s probably best to have a multiple platforms of online channels to communicate and engage with your customers as all their needs and their choices in types of social media will differ and you will only be reducing your potential market size by not partaking in particular social media channels. Having said that, this probably only applies to the top four platforms (mentioned above), some social media sites such as Pinterest and Instagram are probably way more relevant to B2C marketers in certain industries i.e. Fashion and Retail.

References:
Forbes. (2014). 7 Steps to Productive Business Use of Social Media. Available: http://www.forbes.com/sites/martinzwilling/2013/08/17/7-steps-to-productive-business-use-of-social-media/. Last accessed 01/06/2014.

HBR - Harvard Business Review. (2014). the New Conversation: taking Social Media from talk to action. Available: http://hbr.org/hbrg-main/resources/pdfs/comm/sas/16203-hbr-sas-report-r3.pdf. Last accessed 02/06/2014


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