Investing in social media is part of a growing trend by businesses right now. Whether it is technology companies buying social media startups or commercial brands increasing their social media marketing budget, the faith in the opportunities presented by social media is undeniable.
Retailers are leading the charge in investing in social media. Based on the analytics and information that is available through sites such as Facebook, Groupon and Twitter retailers are able to develop more targeted advertisements.
A study by IDC “highlights the use of social media as a growing technology in six key sectors: banking, government, healthcare, manufacturing, retail, and utilities.” The report shows that B2C companies, particularly retailers, are at the forefront of social media adoption, noting that these businesses can use social media to “boost productivity and enhance knowledge sharing by utilizing social networks to share best practices and find suitable resources.”
The information collected revealed that “successful retailers are combining their mobile, analytics, and social media strategies into a single business approach. Social media platforms like Facebook, Twitter, and Groupon allow these companies to study customer behavior and provide personalized offers straight to a consumer’s mobile device.” The data users share with companies on social media can enhance marketing efforts, making them more targeted and effective when aimed at the right audience.
Interestingly, the study also determined that many companies and marketers are still using social media as a one way forum to push their message or receive feedback from users, not as the conversational medium it was intended for. As we know, users engage in social media in order to share information about themselves so companies must consider what their content says about the users that are sharing and interacting with it.
The most popular reason businesses are using social media is to increase brand and product awareness. Based on the fact that social networks have increased the range and speed of word of mouth conversations to travel, this is one of the best qualities social media has to offer companies.
Users of the various social platforms relate to their friends and family and are more likely to act on a recommendation from someone they know, rather than from an advertisement. This is the same reasoning behind the success rates marketers have seen in Facebook’s sponsored stories as opposed to traditional advertisements placed on the site.
The information that is available to gather from social networks has proven powerful for many businesses, retailers especially. Maintaining analytics and monitoring these efforts takes time and money, however the payoff is substantial as we are now seeing.
Have you noticed any retailers that are doing a particularly good job in social media? Let us know in the comments!