Tuesday, November 18, 2008

social networking between businesses and customers

On page 213 Liana Evans speaks about social networking, a topic that’s been covered pretty thoroughly in Online Marketing Heroes and definitely more than once before by myself in these blogs. There’s nothing really new brought to the table in Evans’ interview, and my choice of question to focus on may not have been the best, but I find the whole area of social networking and social media quite intriguing, so I still find an interest in looking at different thoughts on the topic. Evans speaks about the potential of social media for businesses, and focuses on the great advantage of having the ability to communicate with ones’ customers. Conversation about ones’ product with the actual end users can help in shaping the product according to the users’ wants and needs, letting a company more effectively satisfy their target consumers. And customers will find satisfaction not only in getting a product they actually want, but also simply because they are actually being heard. They feel that they can make a difference, and they feel that the company cares about their opinion, which I think will greatly increase the probability that the customer will return to the website for further purchases. Just by opening a line of communication like this can be a far more effective marketing strategy than any traditional advertising approach. And the whole web 2.0 trend with social networking and social media gives a company the ability to have deep conversations with individual customers or potential customers.

3 comments:

Filip said...

I completely agree about the importance of forming relationships with the customers.

I know a guy who was bying an SLR camera for a small company and sent a fairly long e-mail with questions about what equipment would be recommended for his needs to a small reseller. He got such a helpful response that he bought the camera from the reseller even though their price was higher. He remained loyal to the company and has now spent maybe $10 000 there.

The point exemplified is: Building these kinds of relationships can be very effective in generating revenue over time.

Patrik said...

I agree that forming a relationship with your customers can be very profitable. However i think it can be very hard to realize for bigger companies. You can gather a general opinion form all the users, but to personalize it for every single customer will most likely drive the price up. So the question is, how much are the customers willing to pay for these extra services?

Hoh said...

I believe social media enable companies to share "mind" by sharing stories (that's conversation), while traditional media marketing is about pushing their products' strengthes(facts) towards consumer. If we look at traditional home pages, it is normally list of facts, not stories from real people. With social media, marketing really becomes "social" and that's why conversation becomes an important agenda in marketing communication