copyright © 2010 Betsy L. Angert. BeThink.org
Today many businesses are disconnected in a connected world. Corporations seek customers. Potential purchasers can access concisely presented persuasive information. Clients are sold products. Support? Some may be available sometimes . Web pages are Marketing Tools. No real relationships emerge let alone evolve. Technology used serves the organization. Commerce has too little concern for consumer needs. Executives and enterprises pay less attention to what is authentically desired. Conversation. In the search for potential patrons companies ignore what is right in front of their faces and in their hearts; people are gregarious.
Humans are social animals. We each crave a connection. Facebook and Twitter founders understood this. The statistics overwhelming show this. Yet, rather than embrace what is real, organizations opt for what causes a break-up.
The results of ongoing research shows that organizations have begun to invest in social media, but barely. Only those companies who respond to purchasers’ real lives seem to see a need for a truer Internet experience. Most simply stumble into the medium blindly. Few realize that what occurs in cyberspace is a conversation. Hence, businesses, big and small, for profit and not, use sales and marketing approaches to seek loyalty or brand awareness.
Organizational budgets reflect a lack of understanding; America is “wired.” Please peruse the profound truths evident in a recent Pew Research Center Publication, The Future of Online Socializing, Older Adults and Social Media or Gadget Ownership.
In relationship to the technology and the Internet, most relevant for many corporations is what The Temkin Group, a customer experience research and consulting firm considers the Top 10 Customer Experience Incompetencies.
Authentic interest and Interactions are near void. Instead, reliance on the pitfalls is prevalent. Frequently, corporate web sites, tools available to prospective customers, and current clients are marketing ploys. Employees are not served much better. At times, participatory platforms are accessible. Yet, even these do not fully engage consumers. Unknowingly, businesses build barriers when bridges need to be built. Perchance, organizations will look at what is thought to be wise and wonderful, then, assess. Why is it that conventional wisdom does not work well? In the World-Wide-Web
Study: Companies invest in social media for loyalty purposes
August 31, 2010
A conclusion that can be drawn from overall survey results is that the use of social media as a marketing tool is still in the early experimental stage. “Marketers across all sectors are involved in social media,” said DMA Research Manager Yoram Wurmser. “However, after five or six years in the space, and growing social media budgets, marketers are still testing the waters to figure out what works, with the incentive to accelerate their efforts being driven by consumers’ rapid adoption of this trend.” In fact, research from Nielsen released this week shows that consumers are spending 43% more time on social media than a year ago, making social networking and blogs the top online activity followed by online games and email.
One of the key revelations from the research is that the absolute dollar amount marketers are setting aside for social media is low:
- When asked what percentage of their company’s overall marketing budget is spent on social media, the largest group, covering 24% of survey takers, selected “don’t know”
- 17% of respondents said they allocated only 1% of their annual marketing budget to social media
- 16% said they allocate 4-5%
- Smaller companies with tighter budgets are significantly more likely than large companies to say they spend almost 50% of their marketing budget on social media.
Another key finding reveals a lack of metrics for success differentiated by objective:
- When asked to identify the most important measure of social media success, nearly two-thirds of respondents selected “don’t know
- Of those who identified a measurement, the largest group, covering 20%, said engaging customers to respond and provide feedback
- 65% of respondents said they’re not using any listening tools to monitor what their customers are saying about their brand
Organizations often adopt strategies that experts say offer near certain doom. Tycoons think “If they build it, buyers will come.” Executives “Follow the leaders,” rather than distinguish themselves or recognize the unique world that is theirs alone. “Blatant sales pitches” scatter the landscape . . . and lose sales as well as once loyal support. “Social media is treated as though it were a one-way street, an island, or the work of lowly staffers.”
The Ten Harsh Truths About Corporate Websites are avoided. Sales and Marketing departments are assigned a task that is not their specialty, rather than engaging in a conversation, they create a monologue. Information Technology departments are seen as soothsayers rather than divisions that do well in the delivery of complex tools. Organizations mistakenly believe their webpage is all about them. Thus, a greater disconnect is established. Disconnects and subsequent breakups between consumers and companies that do not genuinely communicate are common.
References and Resources; Reality of a Connected Customer, Client, Potential consumer . . .
- Study: Companies invest in social media for loyalty purposes By Mila D’Antonio. 1 to 1 Media. September 2010
- Facebook Demographics. istrategylabs.
- Twitter Demographics. istrategylabs.
- Who’s Using Twitter in the U.S.? Some New Demographics [Charts] By Pam Dyer. Smart Data Collective.
- Deploying Social Media to Cultivate Customer Loyalty: A Benchmarking Study. Direct Marketing Association. August 2010
- The Future of Online Socializing. July 2, 2010
- Older Adults and Social Media By Mary Madden, Senior Research Specialist. Pew Internet & American Life Project. August 27, 2010
- Gadet Ownership. By Aaron Smith, Research Specialist, Pew Internet & American Life Project. Pew Research Center Publication. October 14, 2010
- The Temkin Group.
- Top 10 Customer Experience Incompetencies, By Bruce Temkin. The Temkin Group. September 29, 2010
- Ten Harsh Truths About Corporate Websites By Steve Krug. smashing Magazines. February 10, 2009
- 10 Killer Social Media Pitfalls Businesses Must Avoid, Bay E-Solutions
- 4 Myths About Social Media and Business, By Leah Betancourt. Mashable. January 28, 2010
- Social Media for Business – Who’s Doing it Well & How, By Lidija Davis. Read Write Web October 2, 2008