Before social media the relationship between company and consumer was only a one-way path, which allowed for very little or no engagement between the two entities. In the old days of advertising, companies held the power. They would present consumers with messages about their products. Rarely was it the company with the best product that won over consumers but the company with the most money who could advertise more frequently with better marketing techniques. Social media shifted this power dynamic, giving the consumer a channel to voice their opinions and research their product options before making a decision. The companies that utilize social media, understand the consumer power transformation. They know that if they are not marketing to consumers via social media, another company with a similar demographic and product will be. They also understand that engaging customers through social media networks results in strong relationships between them and their customers. These relationships lead to highly loyal customers, more word-of-mouth recommendations, and brand awareness.
Companies like Dunkin' Donuts (https://www.facebook.com/DunkinDonuts), not only do social media, they do social media well by forming relationships with their followers. As humans, we are prone to be social beings who evolve and develop through communication. Those who communicate effectively, engage with others. They learn to listen, to respond appropriately, and to ask meaningful questions. On their Facebook page, Dunkin' Donuts has implemented all of the principles a good communicator exhibits. Social media at its essence is communication. It feeds a human desire to socially interact with others and to share our lives, but it is more impactful, viral, and powerful than any type of communication we could have offline. So why are companies so scared of it?
Is it the openness and vulnerability companies are scared of? Before social media, if a person had a negative comment about a company they could spread their review by word-of-mouth, but the influential impact of this method was small. On social media sites, a negative review can reach thousands of people who may or not follow the reviewer's advice. This absolutely could affect a company who does not get that consumers have power now. They may not understand that the only way to negate or smooth over negative reviews is to be on social media as well and engage with consumers. If a customer posts a bad review about a product on Facebook, if a company with a Facebook page is monitoring this, they could immediately try to make this wrong a right by asking the customer how to fix the problem. Social media is a customer service tool. This type of communication never existed before social media. Companies could never reach out to individual consumers and engage with them to create a relationship, resulting in a high level of brand awareness. They could only send out targeted advertisements with the hope that they would reach the right individual and influence them to buy. Also, companies should no longer have the excuse that they do not understand social media. There are many people out there who get it. I'm sure in every company there is one tech savvy employee who can become a social media specialist.
Why do you think companies may be scared of social media? What do you think of the power dynamic shift between companies and consumers? Do you feel more empowered as a consumer because of social media?
I could write much more about this topic including social media measurement, but I think I'll save that for another blog post...
