Dare Magazine recently quoted me in a story on how Indian brands are using social media.
I said that Indian brands are beginning to use social media across the sales, marketing, customer support and innovation functions for gathering insights and leads, responding to conversations, running proactive campaigns and even building standalone evangelist communities.
Is Social Net Working For You?
The growing clout of social networking sites is adding to the number of businesses wanting to leverage this interactive platform for profit. While some businesses have been quick to reap the benefits, patience is the name of the game for many.
Shinjini Ganguli
It is now a popular belief that more people log in to their Facebook accounts than read newspapers. While the jury is out on this one, newspapers have certainly been spending more newsprint writing about the rise of this new democracy.
Marketing managers in companies, big and small, have been adding generous sprinkles of social networking in their menus. It is safe to say that in an executive’s life in urban India, no day passes without the mention of one of the social networking triumvirate: Facebook, Twitter and LinkedIn.
The question to ask is: what good has it done to me? We asked a number of practitioners this question and came back with one answer which hung out loud and clear: It is a good brand building tool. Most of them concurred that one would be over optimistic in expecting direct business returns from social networking yet. Some of them even questioned the very mindset of wanting ‘everything to be monetized’. All of them said social networking is too important to ignore anymore.
What is it good for?
Saying ‘good’ would perhaps be an understatement. Social networking sites (SNSs) have been like a bubble without an impending possibility of bursting. Amid the ruins of the chaos that is left behind by the US meltdown, businesses have taken to online social media which is as contagious as were the collapsing empires. Though, it has been present for some time, it’s in the recent years that it has witnessed a remarkable rise in its acceptance worldwide.
Of course, India is no exception. Trying to make up for the sluggish days, many have joined the bandwagon hoping to make the best of it. “SNSs are basically an opportunity for Indian businesses” says Mahesh Murthy, founder and CEO of Pinstorm. From creating a wider customer base through communication and direct interaction with customers to inexpensive marketing, SNSs have helped companies with much more. And indisputably ‘Brand Building’ is the first one on the list. As Rajesh Lalwani of Blogworks likes to say “Brand building is as good as revenue generation.” True as it stands, not many Indian businesses have been able to generate revenue directly from their activities on the SNSs but it definitely has an indirect impact. “They impact intangibles, which in the long run, impact tangibles like revenue, sales, etc.” said Abhishek Rai, founder of Shack Design Co.
However, there are a few exceptions that would soon be no more a minority. Some are already at it— making ‘moolah’. “Today, quite a few businesses are getting leads through social networking sites,” tells Gaurav Mishra, CEO of 20:20 Social. And not just retail but all businesses. In fact, much against the popular belief, online social media not only helps retail businesses generate money but manufacturing businesses too can benefit from engaging in activities on sites like Alibaba, etc.
Another very important aspect of Web 2.0 is research. Many conduct thorough research; they read people’s comments, ask for reviews, discuss before buying a product. “People can’t buy a car online, but one can research, consult and discuss online,” says Rajesh Lalwani. This essentially means SNSs have a direct bearing on the customers’ purchase decisions. Looking at it from customers or buyers point of view, businesses which were entirely sales driven are gradually changing their attitude to stay in the race. Customers’ preferences, grievances, likes and dislikes are now the new priorities for companies. Companies have now woken up to the power of SNSs, where undesirable testimonials by unsatisfied customers can make or mar their reputation.
With a fan following of 13,751 and thousands of testimonials from them, Subir Malik, manager of the famous Indian band Parikrama says, “Now I know the power of Facebook. It’s brilliant.” Online social media has truly empowered the end users and customers. While demand has always driven supply, irrespective of the existence of SNSs, products never really matched customers’ needs so perfectly until today. Customers now contribute to product creation. This overhauled outlook of companies has not just benefited customers but themselves as well in more ways than one. SNSs help companies reach out to their target customers, understand their psyche and build a bond. And more often than not influence beliefs and notions by engaging and involving them in various activities such as discussions, contests, etc. All for a negligible investment, says Mathew Cherian, CEO of HelpAge. He reiterates that, “Online social media is a fairly reasonable and low-priced medium for connecting with people.”
Dos and Don’ts
There are no specific dos and don’ts that could be followed to engineer the absolute set of guidelines that’s a must when it comes to networking through online social media. However, the most critical thing that one must do is understand the dynamics of this virtual world. And there are no shortcuts to this as it deals with human beings. Therefore, the only way to learn is through trial and error.
However, one of the important things businesses, striving to enhance their topline, must stop hoping for is instant returns. As Rahul Razdan, President-Products and Operations at ibibo, puts it, “The mindset that everything needs to be monetized must be dropped.” Companies should look at it purely as a communication or brand building tool and not a moneyspewing one. Customers are no fools. They want value for money. “Blatant marketing only fractures the system,” says Arunava Sinha, Head of IBNlive.com and CricketNxt.com. He, in fact, believes that brands on internet don’t work well as “people don’t care where the content comes from.” Therefore, it is important to provide customers with quality products and services. No one buys a sub-standard product no matter how well it has been marketed.
Another reason that Pradeep Chopra, founder of DigitalVidya, a digital marketing training organization, says is often responsible for companies failing on this platform is, “lack of clarity in business objectives.” Every business must have its business objectives in place to avoid inconspicuousness alongside other established names. Online social media is a humongous pit, and many who don’t have fixed objectives often end up at the pit-hole. The ones who do, manage to survive.
Adding to the reasons that could lead to failure, Dave Evans, Author of ‘Social Media Marketing: An Hour a Day’, said many failed to capitalize on the usefulness of social media as they saw it as another “mouthpiece”. According to him, “on the social web, the fundamental ability to interrupt a viewer does not exist as it does on TV or in print. These types of efforts are typically ignored by consumers.” Having mentioned a few causes of failure, one thing that has let a few names get fortunate on this platform is their sincerity towards their customers. Instant responses to queries and grievances have earned a good name for companies like Kingfisher, CCD, ClearTrip, etc. Huge fan following of these companies only corroborates the fact.
However, to keep the fans engaged and loyal towards the brand, companies must have an active presence in social media. In fact, they have to be on their toes all along, introducing new contests, stirring discussions, updating, and more. Prolonged intervals in interactions may result in thinning interest of the customers. To meet the customers’ expectations, many companies are increasingly employing dedicated resources to take care of their various handles across SNSs. However, Arunava Sinha doesn’t believe it’s a good practice. He says, “SNSs should be like buffet to diners,” a dedicated workforce would only embolden the subtle stress on marketing. And “blatant marketing can kill it all.”
