Social Media Practices

In the past few years there has been a huge increase in the use of social media platforms and web 2.0 technology. People are increasingly looking at social media as an important aspect of their lives, which makes it the perfect tool for companies to advertise themselves and reach out to the public. Promptly, businesses started to adapt to this new era and started to use these mechanisms to improve and develop their relationships with their customers

Impacts of Social Media

The use of social media can have huge impacts on business performance, sales, and contacts with customers. In India, most of the small businesses that created and actively used social media saw improvements in their sales. Companies can benefit in many other ways other than just increase in sales. Some examples of that are listed below

  • Maintaining persistent relationships with customers

  • Knowing digital traces

  • Improving network visualization

  • Establishing networks and communities.

Using Social Media

Social media helps maintain a relationship with the customer by constantly providing news and information of what is going on with the company. Whenever the customer is receiving relevant news of the company they feel connected with it (and to some extent a “part of the company”). The connection to the company eventually becomes loyalty and that’s exactly what the companies want from their customers. To reach the desired loyalty level from the customer the business should make constant posts that are interesting for their target audience. Another aspect that relates to maintaining contact with customers is the digital trace. Many social media have features that allow them to record for how long customers have been following their pages. Along with that they can also trace which posts and features users use the most, allowing the businesses to adapt their accounts and have post more content that is relevant for their customers.

Alongside the features mentioned above, social media also provides network visualization and allows for the creation of communities. Social media grants access for managers to look into how their network of interactions with other companies in their supply chain. By looking into their social media, companies are able to identify these interconnections and eventually fix their own supply chains, improving aspects such as reducing unnecessary costs in their chain, increasing their turnover, and making better forecasts. Additionally, social media is a great way to find new partners, sponsors, suppliers, members, staff, and customers. Since social media is used online, they provide a fast and great alternative for finding and connecting to different people and businesses. This aspect makes it possible for managers to diversify and search for people that will effectively improve their businesses.