Blog Assignment: Social Networks’ power to discount rate and business development

We are providing various discounts to boom the sales, create brand awareness, or strengthen the customer loyalty nowadays. But there’s more that we can do to provide a highly effective discounts rather than just a 40% off to everyone.

 

The discount differentiation can be backed up by the data of our customers’ social networks (both B2C and B2B). This is especially efficient for the start-up companies to create the brand awareness and business development.

WHY?

1-      Maximize customer interests;

2-      Establish a self-accelerated customer dynamic to increase the promotion to their networks, making the promotion more powerful reaches; 

3-      Very effective tool to establish a promotion-effectiveness database, collecting customer growth rate, through which channel and chase the promotion efficiency;

4-      Provide an effective pool of data for customer relationship analytics use.

 

HOW?

1-      Define a market segmentation from a popular social media such as Facebook;

2-      Using the SNA software (e.g. Ucinet) for a more visible and better understanding of the full network on the targeted segment;

3-      Define the communication efficiency & activeness of the analyzed network;

4-      Define the discount rate according to a framework from communication efficiency & activeness level;

5-      Chase the customer growth rate and communication channels(by promo code);

6-      Analyze the growth potential from the new clients and repeat the above circle, and analyze what is the road-lock of the unsuccessful promotion channel.

 

DATA NEEDED – medium easiness as long as the right analytics software is implemented

1-      Market segmentation:

ž   Age;

ž   Gender;

ž   Nationality;

2-      Level of ties and influence to the network:

ž   average number of “likes” and “comments” get per post;

ž   average number of “likes” and “comments” to others posts;

ž   number of followed groups, average number of comments and feedbacks to the followed groups;

3-      Level of communication efficiency & activeness (frequency of communication):

ž   Average number of joining new groups and linking to new friends;

ž   average number of days each posts and comments/likes offered or received;

ž   average number of posts the followed groups offered and commented/liked;

 

Ø  The trace to the communication efficiency & activeness really provides the best sound reasoning to the level of promotion and network expansion. As a result, the chase to the activeness before and after the defined discount rates as well as the promo-coded channels is the most important step in the entire measurement.

-Jia LI, Hult International Business School