Social business is a buzzword which is not really clear to most individuals. Contrary to popular belief, social business is not the aspect of business which involves the use of online social networks. It is rather a business strategy which is aimed at effectually improving the overall performance in the individual businesses which employ it. Just as its name suggests, social business encourages connectivity and active participation of all the communities in a business.
These communities are made of employees, customers, employers, analysts, donors, volunteers, consultants, suppliers, business partners, prospects, user groups and grassroots supporters. These are all the parties involved in the running of a business. Therefore, social business refers to an organization’s ability to take advantage of all its communities for an improved business performance. This is a different strategy compared to the traditional business approach, where the business and its operational factors are entirely controlled by the executive.
There are many benefits of social business to the individual contributing communities and the general business. Employees are among the main beneficiaries of this strategy, especially when it is compared to the traditional business strategy. Social enterprises excellently improve the general employee advocacy. Employees are empowered and they feel appreciated as major contributors to the general success of a business. This empowerment helps them develop their individual skills especially in communication through the external and internal social tools.
Secondly, social business improves the customer relationships. Customers are usually considered the main driving forces of each business. In fact, without sufficient customers, a business would obviously crumble. Therefore, it is expected that all the communities involved in social business direct their resources and energy to improving customer relations in a bid to please the customers and attract many more. The commitment of all the parties in this especially the employees is very crucial in improving the general customer relationship management.
Social business significantly improves the marketing of an organization or business. All the involved parties work together to come up with effectual and creative marketing strategies. After this, they collectively supervise the implementation of these strategies and observe their results. This is a much more improved and effective marketing management initiative compared to the traditional approach where executives would just pay marketing consultants to handle this entirely.
Social business also improves the general business innovation among the employees. Once the employees are empowered and feel trusted enough to be included in the critical decision making process, they communicate more on their business ideas. A good number of these ideas later develop to become significant innovations which boost the organizations. This is where the ROI of social media is mostly experienced.
Finally, social business also improves the unity and communication within an organization. All the involved parties feel appreciated and critical to the development of the business, which in turn improves the general operations within an organization or business. Therefore, social business is a very good and effective business strategy which most organizations should consider undertaking.