Many have theorized about the promise for new social networking technology to improve the internal organization of companies. But social networking has another, perhaps more powerful use – to empower the consumer in every step of a product rollout, from development to marketing. Social networking has been around for far longer than Friendster, Facebook, or Linked In. In the past, though, communication between companies and consumers would mostly be confined to push advertising through TV and Radio ads, with periodic consumer surveys thrown in for good measure. The wide-spread use of the Internet, and specifically social networking platforms, has changed the equation. There is now the possibility for real-time dialogues not only between a company and an exponentially growing network of consumers, but within that very consumer base. The application of social networking tools to the holy grail of marketing, word of mouth, is especially exciting. Olga Botero, in her article in Customer Think Magazine, writes: “Just think what happens when a customer uses a social site, and the unhappy customer posts the experience in a place where it's not just 12 people—or 132—but millions who read about it. That could destroy a company.”[1] Now think about the benefits of a positive review posted on the right customer’s blog. In this modern world, the ability to (1) match consumer needs and tailor a company’s image and products around them and (2) gain exposure to the right portion of this consumer network (i.e. strong connectors) is paramount.
Companies are well aware of this, and many are incorporating modern (and sometimes not-so-modern) social networking technologies to achieve these objectives. For example, as Ford prepares for next year’s launch of its Fiesta subcompact in the US, it invited 100 young adults to live with the new model for 6 months and share their experiences via their Facebook, Twitter, or blog sites. If Ford chose these lucky individuals wisely, the networks of 100 highly influential connectors in their communities will be exposed to first-hand accounts of the car – making the exposure that much more trustworthy and powerful. Furthermore, as Ian Shafer, CEO of the marketing firm Deep Focus puts it, “It shows that Ford cares what customers think.”[2] Other companies are exploring how best to gather customer ideas for product improvement. Coca-Cola, for instance, held a contest on Second Life that asked players to “design a Coke machine that would work in the virtual community.”[3] Perhaps the most interesting application of social networking I came across has little to do with online technology at all. When Vaseline was devising a marketing strategy to push its new lotion, they decided to offer free samples in a small town in Alaska (though this was apparently not because of the state’s famous/notorious ex-governor) and then map the social network in the town – how fast did word spread among residents, who recommended the lotion to whom, etc. The result was the discovery of a particularly influential local resident, around whom Vaseline’s advertising strategy was subsequently centered.[4]
Despite these well-documented, high-profile uses of social networking to empower consumers, the potential benefits to a company are not guaranteed. The use of social networking for commercial purposes is still a new field and there are few companies with proven expertise. First, there is the obvious conflict with worker productivity. When it comes to employees using social networking sites, a number of companies seem to lack the will or resources to differentiate between personal and business purposes. This is illustrated by a study commissioned by Robert Half Technology, an IT staffing company, which shows that “54 percent of U.S. companies say they’ve banned workers from using social networking sites [...] while on the job”, while only “9 percent of companies allow social networking use only for business purposes”.[5] Second, as Stephanie Clifford of The New York Times notes, companies’ dabbling with social networks is “part fad and part marketers’ hope that customers [are] so devoted that they [are] dying to discuss shampoo or tires online.” How can companies consistently understand which products a potential customer will choose to care about, if any, while they are socializing online?
These are valid concerns that must be dealt with by companies as they explore the uses of social networking. But I strongly believe that they are worth exploring. Social networks are simply another medium of communication, albeit one with growing complexity due to new technology. And as any medium of communication, there is the capacity to do both good and bad. But companies should be looking for innovative ways to best manage this newfound company-consumer interaction, or they risk being left behind.
1 comment:
This topic has been written about by others, but you have added some good examples (and repeated others.) The Wired article on the Fiesta is especially interesting.
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