Social Media value for businesses

Many social media users across the globe perceive social media as a society without barriers, restrictions or discrimination. In most cases customers find expression on social media because they are not confined to formality and protocol in how they express themselves. This communication preference has grown over the years resulting in the high demand for social media platforms. It is against this understanding that there has been a consistent increase in social media tools and users over the past years.

The increase of social media users, presents new opportunities for business and organisations. Therefore, companies have to strategically rethink their traditional ways of reaching and engaging their customers in order to maintain relevance. According to the research of Barnes and Mattson conducted in 2009, 43 per cent of the fastest growing private companies in the United States judged social media to be “very important” for business, while 91 per cent used at least one social media tool. These results reaffirms the need for a transition on how companies interact with their customers.  

Social media has redefined its self-such that it’s no longer about users chatting amongst themselves as noted in my previous blog titled “The Evolution of Social Media. Companies that are forward looking have realised this reality and they are positioning themselves to exploit this social opportunity by investing aggressively in the technology and structures support the platform.  Lately, many companies use social media for the following benefits amongst others:

•       To increase brand recognition through the pool of users that gets accessed on the platforms, which does not have geographical restrictions.

•       To increase sales through the e-commerce functionality incorporated in the tools.

•       To immediately connect with prospective customers, vendors or partners.

•       To explore new advertising channels as opposed to the traditional  bill boards, banners and brochures which are generally considered not to be environmentally friendly.

•       To monitor for the comments and concerns expressed by customers about the company.

•       To research prospective employees i.e. LinkedIn thereby saving on both agent and HR costs.

According to Kim Harrison 78% of consumers trust each other more than they trust advertising i.e. radio, bill boards, newspaper etc. Therefore, it is essential for companies to have social media presence to engage and address all client issues timely because their dissatisfaction can result in a reputational or financial loss to the company which is usually difficult to reverse. 

The evolution of Social Media

Social media is defined as a web-based communication system that enable people to interact with each other by both sharing and consuming information. One of the first social media site was “Six Degrees” which was created in 1997. This site enabled users to upload a profile and make friends with other users. Furthermore in 1999, the first blogging sites became popular, creating a social media sensation which is still popular today. 

Social media was mainly popularised my chat groups such as MXIT, Facebook and twitter amongst others. It is for this reason that to date many people generally associate social media to be a chat platform. Lately, the number of social media applications and sites are uncountable. These social media solutions are developed to cater for different communities, needs and constituencies i.e. for industry professionals LinkedIn is used, for photographers Instagram is used and for current affairs twitter is used. 

However social media has evolved over the years making it remain relevant to society, organisations and governments. What makes social media relevant is the increased use and demand of the platform. The study conducted by Tom Smith titled “Social media revolution” indicates that there are 83% users watching video clips online, up from 32% in 2006 and the number of active users reading blogs grew from 54% to 77% globally. 

Moreover, what makes social media most relevant and interesting is the disruption it presents to conservative business operations and processes. Today, many people are dependent on twitter for live news. Additionally, many companies have saved millions and millions of rand’s from marketing expenses such as procures, banners and roadshows amongst others. Very recently, we have seen political events being agitated through social media. For example, the recent fees must fall movement; which was a student uprising in South Africa against excessive fees was mainly agitated and mobilized through twitter which resulted in the protest receiving international attention.   Additionally, we have seen ordinary users also benefit from social media due to the vast amount of information they can access through the platform. For example, many students in high schools and institutions of higher learning access YouTube for learning concepts through video's produced by experts in the field. It is  these aforementioned disruptive behaviour and efficiencies realised through social media that people and organisations continue to appreciate the medium. 

The article by José van Dijck titled “Understanding Social Media Logic” indicates that over the past decade, social media platforms have penetrated deeply into the mechanics of everyday life, affecting people's informal interactions, as well as institutional structures and professional routines. This assertion is further reinforced by the NMincite Social Media Report conducted in 2011 which indicates that “60 percent of people who use three or more digital means of research for product purchases learned about a specific brand or retailer from a social networking site” 

Therefore, social media has evolved over the years as a valuable communication and knowledge solution that does not only enable communities to interact without barriers but most importantly social media has redefined how businesses and organisations operate and interact with one another. Which bring about timely, transparent and efficient ways of social interaction.