Commentary |
 |
Comment |
Joining the social media clique
Marco Ciobo
Published 8:07 AM, 17 May 2011 Last update 1:22 PM, 18 May 2011
It’s safe to say that social media is now thoroughly mainstream in Australia. The phenomenon seems to have reached an inflection point, where the majority of consumer segments, in each demographic, are active users.
Australians are among the most prolific users of social media, with nearly 7.4 hours spent on sites, such as Facebook, Twitter, YouTube, MySpace and LinkedIn, every month. This is significantly ahead of the United States, where users typically spend 6.4 hours per month on the same sites. For many users, social media is now an integral part of their day-to-day life. Yet, users and companies interact in this world differently, compared to traditional media channels.
The success of social media with consumers lies in its value proposition; what we call its “ethos”. It also holds a strong appeal for companies, who recognise the marketing opportunity social media represents. This is the ability to build relationships with current and prospective customers in a direct and intimate manner, and convert these customers to advocates. What is less apparent, however, is how companies can actually do this and incorporate it into their agenda on a more strategic level.
Companies are often concerned about losing control of their messaging through social media engagement. What they often fail to see is that they already have. Consumers are already talking about them and their products online; the question is whether the company wants to contribute to that conversation. The traditional "commercial in confidence" culture doesn’t align with a culture of giving away knowledge for free and making customer interactions transparent to all. Moreover, it can be highly disruptive if content and interactions that were once confidential are made public.
A study by Deloitte, Human 1.0 (formerly Beeline Labs) and the Society for New Communications Research, in 2009, called The Tribalization of Business*, found that the vast majority of Fortune 500 companies in the US investigated, and then relegated, social media to the marketing department, which was also given responsibility for imposing tight policy controls on its use. AT Kearney suggests a more radical adaptive approach, given that the fluid, open nature of social media means it cuts across the traditional divisional silos of companies.
The ethos of social media has four major elements of value to consumers: transparency, genuineness, relevance and proximity. Truly embracing social media requires a company to accept all the elements of this ethos. This sometimes requires a total shift in mindset towards a collaborative environment, honest engagement and cross-department engagement – not just a one-way product or marketing campaign.
UBank, an online bank owned by the National Australia Bank, is a stand-out success in adapting to the ethos of social media. Central to its model is its customer-centric website design, along with its strong presence on social media websites.
Gerd Schenkel, founder of UBank, says it is vital companies understand the purpose of each social media platform and follow the rules and etiquette of each, understanding that these services were not established for corporations to market themselves.
Mr Schenkel offers the following key insights for companies considering social media:
1. Don’t be concerned with getting hits on the company website. Rather, go where the customers are;
2. Engage authentically and consistently;
3. Be cautious with outsourcing, especially with regard to Twitter accounts and direct correspondence;
4. Don’t expect to control the message;
5. Apologise when you get it wrong;
6. Have realistic expectations;
7. There are no experts and each company’s "right" process will differ heavily;
8. Just do it … but be ready to learn and adapt.
Conclusion
Social media has always been with us, because word-of-mouth has always been a powerful force. As technology has advanced, these conversations have simply moved online.
Now that social media has graduated from a discussion about technology to a strategic business opportunity, it is gaining resonance at CEO and board levels. These channels represent an enormous opportunity for companies to connect with their customers and harness the power of customer energy – the challenge for business leaders is to use it, understand it and embed it into their business.
Marco Ciobo is a Principal in the Strategic IT Practice at global management consultancy, AT Kearney.
* The study has been conducted by Deloitte, Human 1.0 (formerly Beeline Labs) and the Society for New Communications Research for the past four years. Francois Gossieaux, the co-founder, later co-authored the award-winning book, The Hyper-Social Organization.
An earlier version of this article incorrectly attributed The Tribalization of Business study to AT Kearney, rather than Deloitte, Human 1.0 (formerly Beeline Labs) and the Society for New Communications Research, as above.
Related Industry Sectors
View the latest stories on Management Insights
View the latest stories on Media & Internet
Related People
View all stories on MARCO CIOBO
Related ASX Companies
View all stories on NATIONAL AUSTRALIA BANK
Contribute to the Conversation
To contribute your comments for possible publication, please Login or Register.
Preference will be given to succinct contributions. We may contact you via email prior to publication.
