Social Media: Do Businesses Dare to Risk?

Any of us who work or have worked for a corporation or a business of any size probably have  experienced the conservative nature of most executives and all legal and human resources departments. Therefore, it isn't surprising that most businesses are slow to adopt the tools of social media. That said, businesses are studying social media and creating lists of pros and cons.

I believe that few understand the potential inherent within Social Media for their business. So before we discuss the risks, let's share some of the reasons businesses will benefit from implementing the Social Media tools right for them.

Benefits

• Improved Products and Services: By reaching out to their customers and asking the right questions, businesses will learn what customers like and don't like about their products and services at a much lower cost than expensive market research. With this knowledge, they can improve their products and services in ways that meet their customers (and potential customers) wants and needs, increasing customer experiences and sales.
• Competitive Intelligence: Again, by engaging their customers and asking the right questions, they can learn why their customers choose them over their competitors (price, quality, experience, etc.) and how their businesses can gain an even greater edge.
• Brand Evangelists: When customers are given a voice and asked for their thoughts, they feel a part of the business that is showing them respect and dignity, increasing the likelihood of those customers becoming loyal to the brand. Loyal customers often want to share their loyalty with friends and neighbors, creating word of mouth marketing that cannot be purchased.
• Brand Image: When we share openly and honestly, we build trust and credibility with those we communicate with (not at or to). Brand image is a perception mostly built on trust and credibility. Therefore, when we use social media to share and to listen, we enhance our brand image.

Downsides:

• We give up some control over our messaging as we allow outsiders to speak. We actually encourage them to speak. Some might say negative things. This scares the heck out of executives.
• If we are honest and open in our external communications, we have to admit our mistakes. This scares the heck out of marketing, public relations, legal and the executive team.
• We need to add a functional area that sits within a department. That means either transferring current employees to that functional area or hiring new employees for that area. In either event, we have the cost of setting up a functional area, and an internal battle over where that area will reside.

I encourage all of you to speak to these issues here and within your businesses. Social Media holds to much potential to ignore. And, as always, I welcome your comments, revisions and additions to this post.