Transforming Social Media to the “Bottom Line”

30-Day Challenge – Day 3

Yesterday, I highlighted one obvious problem brands face when employing social media in their marketing strategies. Today, I’m continuing that post with some focus on possible solutions.

Going Where Your Customers Go

Brands need to understand is that social media can influence the decisions of its consumers, especially in the longer term. Luxury companies should be more interested in it because it allows them to communicate with current and future customers. Rather than developing accounts on all the available platforms, companies can start by figuring out which social media tools are being used by their consumers. This reminds me of Mark Bonchek’s (SVP of Communities & Networks, Sears Holding Company) advice on sociographics.

The fact that social media exposes your brand to an exponential amount of customers (for whom you may not be able to count on for a future purchase) forces luxury brands to see it as a threat. Conventional perspective in the luxe space portends that social media could cheapen brands by exposing them to customers that don’t fit their target psychographics. However, if it is done right, social media can give your brand a connection to the next generation of consumers. It would help to mention Coca Cola and Pepsi at this point because both are such iconic consumer brands. These companies have done well in mining their own business intelligence to determine one of the critical times when beverage consumers are most likely to develop their taste preferences – in their college days. As such, Coke and Pepsi spend a lot of money, competing for the exclusive rights to sell their products on college campuses across the US (and obviously the globe).

In the same vane, social media has an influencing capability where users-turned-brand-advocates (evangelists), can help create brand desire within their networks. There is great opportunity for brands who start to view social media more as a long-term brand builder rather than a click-thru conversion enabler. In his article, Rony Zeidan (of RO New York Inc) says:

Advertising has been traditionally about making products desirable, about infiltrating the minds of people to create needs and fuel desire from one particular source. It communicates with consumers, promotes products, creates brand identity, and generates brand awareness.

Social media is the new tool of advertising, and it could be a better marketing tool than the interruptive conventions advertisers have used. I used the term interruptive because traditional advertisements (TV, billboards, and print) have formats that require your focused attention (away from the show or article you really wanted to watch or read) on what the brand is trying to tell you. Today, social media has the power of creating conversations that are user generated, allowing brands to be part of a more intimate and voluntary relationship with consumers. They may not have control over what people are saying, but brands surely have a more proactive capability to know and affect what the market really thinks about their products.

Social media has the potential to introduce brands – whether they are considered household names or deemed obscure –  to markets that were never accessible. It takes word-of-mouth marketing (the best ever for luxury products) a step further by amplifying the brand message. The only thing that that firms have to actively ensure, is that they are using the right social media tools to reach their target markets. To do that they need to go where the customers go.

I enjoy writing about these topics. Blogging is both cathartic and enlightening at the same time. Let me know if you’ve gained something from my perspective.

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