A Business Case for Social Media in Enterprises

6 Feb

There is a lot to be said for social media when it comes to promoting business. There are a number of ways in which social media can transcend an organization. Three good reasons for using social media (aside from sales) can be to gain market advantage, increase visibility, and improve customer loyalty. In this blog I’ll be looking at how these three factors are of importance to a business.

Gaining market advantage: It is crucial for a business to undertake market research. In recent years, thanks to the resurgence in social media, it has become much easier for businesses to research and gain an insight into their brand as “many of these insights are there for the taking”[1] online. In an article published on Business Vancouver, it states that “49% of B2C brands cited improving client understanding as their highest strategic priority. Social media will be at the heart of those efforts”.

Increase Visibility: The rationale for increasing the visibility of your business speaks for itself. The more people that are exposed to your brand, the more attention your business receives. This is why a major presence in social media is important. The more presence you have on social media, the more ubiquitous your business is in search engines such as Google, Bing, etc. The diagram below[2] illustrates the framework used by most consumers when they are thinking of buying a new product.

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Improve Customer Loyalty: Capturing and satisfying your customers is also an important factor for businesses. Satisfied customers can influence other customers’ decisions. If these loyal customers use social media then they might do a great deal of subconscious advertising for you’re an organization.

A video posted recently on the Hootsuite blog [3] also reveals the importance of the social media. In the video, Social Media For The Enterprise: A Business Case, it reinforces the statement that social media has become very successful for marketing and providing support in recent years.

Richard Branson of Virgin Media also commends the developments in social media in businesses in recent years as it helps to break down the social barriers between organisations. He describes it as being “A terrific way to connect with our customers”.

If you have any comments or questions please feel free to comment under this post.

[1]  http://www.biv.com/article/20121127/BIV0314/121129955/making-a-business-case-for-social-media

[2]  http://www.designdamage.com/what-can-social-media-do-to-improve-your-business/

[3]  http://blog.hootsuite.com/social-media-for-enterprise-case-video/#utm_source=twitter&utm_medium=promoted-tweet&utm_campaign=q1-2013-flight

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