Social Media strategies for generating business growth and creating opportunities

The past few years have witnessed an increase in the usage of social media amongst organizations. Social media analytics plays an important role in analyzing the large amount of data generated on social media websites, company blogs and other such forums for helping organizations frame and fine tune business strategies. Social media is generally used by organizations to connect with their key stakeholders like the consumers of the company’s products and services, its employees, and its investors. 

Organizations are increasingly looking to social media as an important part of the overall organizational strategy. Social Media – whether it is via internal social media tools of an organization or the external social media tools like Facebook, LinkedIn, and Twitter are gradually gaining in prominence whether it is for the purposes of engaging with consumers, investors or employees. Effective social media strategies, just like other strategies - are those which are customized as per the needs of the particular organization and also by the nature of the industry the organization is operating in while also incorporating the cultural aspects. 

Many organizations, in spite of the apparent benefits of social media strategies find it extremely difficult to set course on their social media adoption journey due to the lack of an appropriate social media governance plan – which is essential for obtaining the maximum benefit out of social media.

A social media governance program essentially comprises both internal and external guidelines that can help an organization to govern the workforce’s use of social media in the first place. From an internal perspective, social media guidelines need to define the social media use both within and outside an organization’s networks. On the other hand, external guidelines, govern how an organization connects with the external stakeholders- that is, how the social media usage by an organization is managed for marketing and communication purposes across all sponsored social media channels like internal company blogs, external Facebook and twitter accounts that an organization uses to connect with its consumers and investors. Social media also plays an important role in talent management, with many organizations using social media for recruitment purposes.

In addition to formulating an appropriate and relevant social media strategy, businesses must also be aware of the potential risks.  Social networks allow digital consumers to be in control as they post information — both factual materials as well as their opinions. Organizations need to take into account these risks in their overall social media strategy for managing the associated risks with increased social media adoption better.

In this context, it is very pertinent for organizations to have social media audits in place, as these audits help the organizations check for compliance with their respective social media policies, which makes it very essential to have social media monitoring tools in place. Social monitoring and analytics, social mining, social network analysis are important tools for the purposes of listening and measuring, that is, monitoring social media.

The key target segment of these social media strategies, according to the 2012 Social Media Marketing Industry Report, were people in the age group of 20-29 years as the people in this age group spent more time compared with other age groups using social media marketing, with 43% spending 11+hours weekly, which was an increase from 41% in 2011, followed by 30-39 year olds (35% spending 11+ hours per week, representing a decline from 37% in 2011).  This highlights that the age distribution of social media marketing usage is an important indicator to businesses and product marketers of the success of their social media strategies.

Increasing exposure and increasing traffic are cited as the top two benefits from social media marketing. A significant 85% of all marketers indicated that their social media efforts have generated more exposure for their businesses. Increasing traffic was the second major benefit, with 69% reporting positive.

Nearly two-thirds of marketers are using social media to gain marketplace intelligence (65%). Tied for fourth place, 58% of marketers indicated generating leads and developing loyal fans were benefits of social media.

According to Gartner analyst reports, the Social Media Market has grown to $7.25bn as of 2012, and Forrester also estimated that Social media spending is forecast to increase from $ 1.59 billion in 2011 to nearly $5 billion ($ 4.995 billion) in 2016, representing a CAGR of 26% over this period.

In terms of the priorities of the social media marketers with respect to the social media adoption, the top 10 questions that they want answered can best be summarized in the following keywords: measure, target, engage, sell, time, strategy, tactics, tools, use and selection. These are important for them to successfully grow their business by using social media.

With the associated increased spending on social media by organizations for business growth and creating opportunities, the social media analytics by leading firms (Big Four and some of the leading technology companies) reveal that each of the companies analysed for their social media investments had a customized social media strategy in place.

The increased adoption of social media by organizations and aligning the social media strategies to the overall business strategy of an organization is the way forward to effectively harness the growing power of social media. Organizations need to effectively use the customized social media tools- both internal and external for ensuring business growth and creating new opportunities in the future.