Social Media Networks Give Businesses Cost Effective and Efficient Marketing Tools that Increase Revenue, Provide Feedback, and build Consumer Relations

Social Media Networks Give Businesses Cost Effective and Efficient Marketing Tools that Increase Revenue, Provide Feedback, and build Consumer Relations

In an era in which technology prevails, marketers must keep up with the fast-paced, and constantly changing digital media scene or risk being outdated. It is now nearly impossible to design a marketing strategy without the use of social networks. Social media has become a pervasive and important tool in today’s world. It is the quickest way we are able to receive, process, and share information. Because of its enormous presence in society, adopting some form of a social media network has become a key task for businesses and entrepreneurs. Adopting social media allows businesses to keep up with their consumer base and meet their growing needs. But social media can also provide numerous benefits for the companies themselves. Researchers now hail social media as an increasingly cost effective form of digital marketing.  The economic recession has affected marketing firms and their ability to successfully brand their clients with a limited budget. Researchers for Procedia: Social and Behavioral Sciences, say that social media networks allow marketing firms to lower their costs by using digital promotional campaigns.

Companies are now turning “followers” “likes” and “retweets” into Potential Customers and Revenue

Being able to reach a large amount of consumers and understand their changing attitudes and behaviors has become pivotal to current marketing arena. Most social media outlets such as Twitter, Facebook, and Instagram, are accessed free of charge, thus reducing the need for traditional distribution methods in mass media (Kirtis and Karahan 261).  Social media is the “next great inventory” for content discovery. When customers are looking for information, a company’s social media is often the first or second place they will go to look (Kirtis and Karahan 263). In their study, Kirtis and Karahan found that 70% of consumers have used social media to get product info compared to the company site, online news, review sites, and wikis. Additionally, 60% of people stated that they are likely to use social media to pass along information and 45% of people stated that recommendations from people online are valuable, credible and honest. 

According to my research, 53% of people surveyed said they would be inclined to follow a brand on social media.

Shea Bennet, for adweek.com says that the likelihood of a consumer making a purchase increases when the consumer has a social media connection with that company or its products. According to their research, sharing and recommendation behavior online is growing. A reported 75% of Facebook users have "liked" a brand. Followers or "fans" of a given brand are 51% more likely to buy. With users spending about 22% of their online activity on social media, businesses have an enormous opportunity to use this behavior to their advantage. If a consumer has a social media connection with a company they are also likely to engage in information sharing, which further expands a companies follower base. This social sharing powers "word of mouth marketing," as a reported 75% of users have clicked product links via their online network. 

 Below is an infographic from SocialAnnex, illustrating how businesses are able to turn their social network following into an increase in revenue. 

Building a prosperous social network, allows a company to expand their following to be a "community of advocates." This way, their social network practically does their marketing for them. This new strategy is referred to as "consumer generated marketing" or "consumer generated media." This strategy works because it utilizes word-of-mouth promotion. The more users a company is able to get onto their social media site, the greater the likelihood that some of those users will take the opportunity to extend product information, reviews, recommendations, or promotions to a larger number of people. Promotional tactics are another way businesses can use their social network to increase consumer activity and ultimately drive up revenue. Many businesses choose to use a reward system to build loyalty with their consumers. According to the SocialExaminer, some of the most effective ways to generate consumer rewards is with digital discounts, content-creation competitions, and involving consumers in advertising. These strategies reward consumers for their loyalty and keep them coming back, creating a steady digital foundation.  

Active Social Media Content Leads to Increased Consumer Engagement and Enhances Buying Behavior 

If a company actively updates their social media sites with exclusive content and makes efforts to engage with their online users, consumers say they are more likely to retain interest in the company's products. With exclusive promotions, sales, and previews of new product arrivals, consumers are even more likely to buy after seeing online content. Below, is a video of my friend Mya talking about her favorite store, Victoria's Secret, and their social media activity. 

With access to a company's online content, consumers feel more connected with a brand. Consumers get an exclusive look into all aspects of the branding process from music, to the design process. Watch as I interview, Carmen, about how she interacts with her favorite clothing line on sites like Twitter and Soundcloud. 

Social media has become one of the most widely used platforms for information sharing. "Word of mouth" marketing, social sharing, and correspondence have become primary activities in the daily lives of consumers of virtually every market. Below, is an interview of my friend, Elizabeth, talking about her social media sharing activities.

In the past decade, social media has had an enormous impact on our daily lives and behaviors. Digital communication on these websites has completely changed the way we send and receive information. On social media, communication is faster, more efficient, and open to the public. With its relatively easy and widespread accessibility, these sites can be an successful tool for product advancement and promotion. Corporations have been jumping on the social media bandwagon to elevate their digital presence. In a survey that I conducted, 40% of people ranked their social media engagement as "very often." Additionally, 70% of people surveyed said they would be inclined to take advantage of exclusive promotions on a brand's social media account. Social media provides easy accessibility, cost effectiveness and efficiency, so it is no wonder social media marketing has seen growing popularity in the marketplace. With its ability to increase profit and product visibility and promote relationships and engagement, social media is a tremendous platform for corporations and consumers alike.