ESSAY: Social Media and Small to Medium Business: the Power of the People
Social Media has its origins in 2004 America. The advent of sites such as Facebook and more recently Twitter have shaped the way consumers are informed about businesses and products. It has also influenced the way consumers purchase products. The main effect that social media has had on how we function daily is the method of interaction.
Consumers can talk directly to businesses and business can communicate directly with consumers. It breaks down the barriers of call centres and contact forms and even email complaints as instant information is traded. The consumer posts something in the social media space about a company and the company can monitor this post, provide feedback where necessary and work with the consumer to resolve the issue.
This communication revolution has also enhanced the level of brand value that a company has. Engaging with consumers in this medium and providing a heightened level of attention to customer needs improves customer satisfaction, especially where a customer is openly denigrating a company on their own Facebook page or on the company’s Facebook page or via Twitter. Responsiveness is key. The quicker the company is able to respond to a consumer complaint the more the magnitude of the issue is contained.
Corporations having a presence on social media sites is still in its infancy here in Australia. Big organisations such as McDonalds, Event Cinemas and Australia Post have recognised it’s importance and communications giant Telstra was one of the early adopters, having now had an online social media presence for almost two years.
So the benefits for small and medium business embracing the platform are two-fold. A business is able to be seen as one of the first to establish themselves in the space as well as surprise their existing customer base by the level of commitment they have to the medium. The online interaction is not solely about mitigating “bad press” either, it is also about attracting new clientele.
This particular use of social media is championed by a number of companies but those who operate solely online are most effective at it. The recent surge in ‘daily deal’ websites appearing online, such as Scoopon and GrabOne have used the ‘word of mouth’ approach to advertising and attracting customers. Their deals are offered only to their website and Facebook subscribers providing the appearance of exclusivity that appeals to consumers.
One other major benefit for small and medium businesses for embracing an online presence is growth; not just in clientele but for the business as a whole. Consumers that are there at the beginning are more likely to be loyal to a brand or business because they feel part of it in some small way. This encourages consumer loyalty and repeat purchasing presence from consumers. These consumers are the ones who are more likely to champion your business to their friends and relatives. Their involvement in your business affords these people the opportunity to promote your business and in turn be the most vocal and supportive or otherwise.
Social media is a global communication channel. It is instantaneous and allows the user to be more expressive than if they were using a phone or talking amongst friends. It is a powerful tool for information sharing and promotion. It is a useful tool for businesses either small, medium or large to maintain and grow their customer base.
The information age has given way to endless business opportunities and should be embraced with gusto for fear of being the one left holding the telephone (whilst on hold).
