Social and fast - no other way to do business

Social Media Marketing and Trends

Doing some research on use of Social media as a communication tool I stumbled upon an article from 2008. The article was called Enhancing Promotional Strategies Within Social Marketing Programs: Use of Web 2.0 Social Media, written by Rosemary Thackeray, Brad L. Neiger, Carl L. Hanson and James F. McKenzie. I have to admit that I was more than surprised. At first I thought that the authors somehow had misused the term social media. Or misunderstood its uses and importance. Then I realized that the key to that mystery had all the time been right next to the title: year of publication 2008.

I was reading with amazement because I realized how much and how fast our world had changed. Back in 2008 only a small percentage of all internet users were users of some kind of social media, predominated by teenagers and young adults (up to 24 year olds). Today social media is not any more a media in the classic sense of the word. It is a part of our lives; it is a part of who we are and how we communicate.

After reading a lot of literature I still think that research is having troubles catching up with the social media reality. Because it has changed our world in a way so that everything happens ever faster and with ever more consumer involvement. And let’s face it – only the time needed to write and publish an article – around 2-3 years for academic articles - will be enough to make it obsolete.

Companies on the other hand cannot allow themselves the luxury of falling behind. That is why advice as  this the authors of the mentioned article give – be cautious and research the possibilities of incorporation of new media channels in the communication strategy – is not one to be followed. As Kotler points out in his Marketing bible, it is not any more a world where the strongest survives, it is a world where the fastest survives.

Following trends seems to be a relatively good strategy, however you position yourself willingly as number 2 or number 1000. Instead you need to create your communicative environment. It is already established that corporate communications, marketing and any business activity will be done in close cooperation with consumers – or the company will not exist for long. In practice this means that you need to stop following trends only because the others are doing it. Instead, focus on your consumers, on any other stakeholders you deem important. Research THEM, cooperate with them and facilitate communication channels approved by them. That will be your guarantee for success. On top of the fact that you will establish communication that is maximally beneficial for both sides, you will gain the appreciation of your stakeholders.

An example about why you do not need to worry about upcoming digital miracles or trends is a simple request as the one a Danish fitness chain received on their Facebook page – consumers were asking whether an iPhone app was being planned.

As long as you offer a good product and good service and you manage to engage your consumers they will always turn to you to solve whatever matter there is – from a communication issue to product specifications. Is it really necessary to explain why this is very important?

That is why you need to learn the rules of the game – be perceptive and reactive. Be proactive and helpful. Engage and be engaged. And maybe the most important of rules: whatever you do, do it fast. We are not any more living in times where waiting 4 to 6 weeks for TV shop delivery is OK, is the norm. Waiting is not acceptable. And here come tools as social media giving us the new timeframe for successful communication: now, that minute. Forgetting that risks us our costumers forgetting about us.

We don’t know what will come in the future. And that is okay. The future will most certainly not come without us. Keeping up with today’s pace is all we really can do. It is only a few who are brave enough to dare the future. Some succeed big, most fail. It is up to you which path you choose but being fast is still the rule.

 

DIDI

Stakeholder management: Relationship expiration date

Relationships and Stakeholders

 

As all things relationships also come with an expiration date. Even though it might not be a 3-day expiration date stamped on a package it does not mean that it will not come. Relationships are basically also just a product – a product of invested time and effort. And here comes the question – when do they expire?

Drama and tears might be reserved for personal relationships but the end of a business relationship should be just as dramatic. Business today is run through leaning on a vast number of relationships and cannot be run without them. We talk about our customers, our suppliers, our partners, our broader network, our governmental links, our international relations and so on. Every business has a number of critically important relationships and an enormous number of less important ones.

Those relationships are different from a management point of view and require different policies. However, what is common for them all is that they should be a primary concern of management as developing relationships is an investment in the future of the company. They are a time and resource craving process and that is another reason why relationships should be valued high – building new relationships – when possible – costs much more than maintaining established ones and sometimes costs the company’s position on the market.

So when do relationships expire?

Relationships – no matter whether it is a B2C or B2B – characterize with mutuality. That means that they have been established because both parts believe in the benefits from the relationship. They develop in time if the benefit lives up to expectations. And they cease to exist when such benefit lapses.

In practice this means that maintaining a relationship includes not only establishing it and working on the agreed terms but actively looking for development opportunities. If we look from a B2B point of view this translates as the need to be better than competitors, to offer more revenue, both in terms of cash and image enhancement. You are not unique as a company as there are hundreds of similar companies out there trying to do better than you. That is why what you should do when working on developing B2B relationships is to focus on answering the main questions: What are the benefits of this relationship? How can we make them more salient? Is there place for development? Is there something we could add? How can we gain more from the relationship? Are there companies who can offer something better than us? How important is this relationship for our business? Can we trust each other? What will keep us together? Can we work better together?

Those questions should be answered both by management and in cooperation with your partner. Business relationships are much like personal ones. They require discussion and agreement. The difference here is that even though some of them are driven almost completely on personal basis, they are still benefit-based. If you want your business to succeed you maintain only relationships that are beneficial to you. That is why focus on value creation is more than necessary.

If we take the B2C perspective, things are generally the same. However, it happens only rarely that a company has enough contact with its customers to be able to discuss mutual benefits. That is why maintaining the relationship with your consumers requires the employment of different tools. Some of those include market research, consumer research, bench marketing, and innovation. One should of course also consider market niche, positioning, and market segment. From a positioning point of view the product should deliver what it promises – quality, low prices, high prices and prestige, etc.

However, satisfying the expectations of your consumers is not enough. Once again you should make sure that your offer is better than the offer of competition. And there are many ways you could differentiate yourself. In the last decade or so though, a certain method has shown quite good results. You should listen to your customers, understand their concerns and help them solve their problems. That means you could support the local football team or buy medicines for the nearby hospital. Doing that will add value to your product and buying will not be a random choice but a meaningful decision.

A bit of a warning here though – such an involvement can bring you great benefits and image enhancement when being an honest act but it can also destroy you if dishonesty is found by your stakeholders.

Another tool you could use to maintain your consumer segment are the very popular discount or loyalty programs. Most of the time they have proved to be quite efficient. The only downside is that they will not ensure you loyal consumers in the long run.

That you could achieve by involving them. Be transparent. Be responsible. Give them a look inside. Give them the word and let them be part of the company’s policy. No one can tell you better what your consumers want then your consumers. Listen to them and empower them. This way they will stay with the company as they will be part of it.

It is true that it is not always such tactics could be used but the ones described here are only a small part of all possibilities. Different businesses and different countries present with different challenges and very specific solutions to very specific problems. When talking about relationships generalizing is almost impossible or at least incorrect as relationships are unique and defined by a long list of factors. They should be treated as unique. Time and resources should be invested into continuous research and relationship development programs. As relationships do expire. They expire in that moment when you think that there is nothing more that should be done.

Will it be worth it to realize it the moment after?

 

DIDI