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Can Your Business Survive Without Social Media?

Posted on 21. Jan, 2009 by Pete Hollier in Social Media

It’s time for businesses to seriously consider the impact of Social Media on their business. Social Media must be investigated from two different business perspectives.

What is the impact if the business does not initiate a Social Media Program?

What is the impact on the business from initiating a Social Media Program?

A lot of the benefits of Social Media appear to be more perceived than based on quality market research. To assist businesses determine if Social Media is a worthwhile addition to their marketing program I have included results of recently completed surveys.

Without a doubt the conclusions are clear. Social Media will have a positive impact on your business, and the risk factor of implementing such a program is as close to Nil as is possible in a business situation. Risk free improvement of business performance, seems unlikely but Social Media Programs come very close to that benchmark.

The Social Media Surveys

It is evident businesses see the value of Social Media as part of their over all Marketing Mix. Coleman-Parkes Research discovered 84% of North American companies feel they require new methods to interact with customers, including Social Media and mobile devices.

It is also evident Social Media has become an expected activity from consumers. Companies who fail to embark on a Social Media Campaign do so at their own peril. Research undertaken by The 2008 Cone Business in Social Media Study resulted in some impressive statistics which must be noted by business owners.

The results from the survey showed 60% of American citizens used Social Media. Of those 93% indicated business should have a Social Media presence and 85% indicated businesses should interact via Social Networks with their customers. With powerful results such as these it is hard to comprehend why businesses are not implementing Social Media Marketing.

Consumers surveyed indicated businesses should use Social Media to:

• Solve Problems – 43%
• Obtain user feedback on product and services – 41%
• Enable consumers to interact with the company brand – 37%
• Market to consumers – 25%

A survey complete by Coleman-Parkes Research for Avnade an IT consultancy firm provides feedback on a number of issues from a business’s perspective.

Barriers to initiating Social Media Programs:

• Lack of understanding by Senior Management 58%
• Negative impact on employee productivity 49%
• Fear of unknown technology 58%

Companies currently using Social Media reported the following:

• Improved Feedback 78%
• Improved Customer Satisfaction 66%
• Improved Customer support 71%
• Increased Sales 40%
• Improved public perception of company 75%

Within the survey completed for Avande were some general statements which must be considered:

• 52% of respondents stated “Companies that fail to embrace social media technologies for business purposes will be left behind “
• 78% of respondents stated “As we enter a possible economic downturn we need to focus on new ways of communicating with customers which add real value.”
• 77% of respondents stated “If they did not initiate a Social Media Program Social Media would enter the company by stealth”

Social Media Conclusions

The results of the surveys clearly indicate that Social Media has become an accepted and expected method of interaction and communication by consumers. This fact in itself is quite powerful, when considering many forms of business promotion are considered to be intrusive by consumers. A method of business promotion which meet the expectations of consumers and is in fact wanted is a must win situation for business.

From the business perspective, as with most new methods there is resistance and Social Networking is no different. Lack of understanding of how to use Social Media and the technology required and used are predominant factors for business not initiating Social Media Programs. It is very clear from the survey that companies that do undertake a Social Media program gain benefits from their interaction with customers and prospective customer. Businesses that do not participate now or initiate in the future will have difficulties, especially in the economic environment we currently experience. These difficulties include lack of communication with customers and prospective customers and a lowering of overall competitiveness within the market place.

Businesses of today must undertake a Social Media Program to succeed in an increasingly competitive and connected business environment, not doing so is a risk to the over all success of the business and it’s stake holders.

Written by: pete@seowizardry.ca a Social Marketing Consultant

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