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Jeff Fleischman

How Social Media Changed Business for the Better

Written by Jeff Fleischman
5/29/2012 19 comments
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I recently read an article speculating about whether social media are contributing to greater loneliness and turning us into solitary beings. Though I’m a believer in social media and use them for personal and business purposes, the article made me wonder whether there’s any credence to this point of view.

I think there are some instances in which social media can create a sense of isolation. Conversely, there are other occasions when it increases connection to and engagement with others. I’d go a step further and postulate that, from a business perspective, social media makes us all more connected and engaged in ways that would not otherwise be possible.

These key trends support my viewpoint.

  • Connection and “always on” networking: Sites like LinkedIn have been game-changing in allowing us to manage our professional network efficiently. Not only can we stay connected with colleagues, but it’s also relatively easy to reach out to others, ask for introductions, and find new opportunities.
  • Research and information: It is now so easy to find pertinent information and stay current on trends/competitors that we take it for granted. Job seekers can easily find information about a prospective employer via its network or through company review sites like Glassdoor. Conversely, companies can research and get extensive information about prospective employees or vendors. Also, SlideShare provides access to a rich repository of content and research for anyone -- employee or employer.
  • Integration: Social TV enables networks to integrate social media into their shows, driving participation by viewers. American Idol broadcasts viewer tweets about the judges and celebrity tweets about the contestants. That gives us a voice in real-time. Frito-Lay is looking to increase its social presence by linking consumers to its Facebook page for Lay's potato chips from mobile video ads within Hulu’s iPhone application.

  • Mobile: The mobile Internet is the latest and most promising frontier for personalized, location-based offers and information. Businesses can connect with customers with pinpoint precision in ways traditional marketing could only dream about. An example: Best Buy recently said it would start making offers based on the location of the user.
  • Commerce: The ultimate business outcome is to increase sales and build brand loyalty. Recently, American Express launched Sync, an innovative way to turn Twitter hashtags into automatic discounts. And Pepsi launched Pulse, a social media-driven interactive dashboard for deals and content tied to pop culture. According to Shiv Singh, global head of digital for PepsiCo Beverages, Pulse lets users share content easily on Facebook, Twitter, and Pinterest.

One can debate whether the loss of person-to-person interaction makes us less social. However, it has encouraged brands and consumers to connect with one another in new ways. Businesses have ramped up their social media activities because social networks are where customers spend time.

Social media also can give us better perspective by giving us access to information. Companies are well aware of the downside of ignoring their communities or not being responsive to dissatisfied customers.

I find that I’m far more engaged with a broader group of companies today than I was before social media -- at least when it comes to one community. (After all, you and I might not have crossed paths were it not for Internet Evolution.)

Related posts:

— Jeff Fleischman, Principal, Blue Panda Interactive

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karen ticktin
Rank: Cave Painter
Sunday October 14, 2012 4:56:51 PM
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One of the great aha moments about social media is that, when done well, it truly can be about creating meaningful, satisfying and long lasting relationships between brands and consumers.  Influencers want two things - to be 'in the know' and to 'be heard'.  When brands truly get that social is about the slow burn, the conversion of loyalists to advocates is quite organic and satisfying for both parties.  Another humanizing aspect of social media is the fact that everyone's voice is of equal value which, in and of itself, makes people feel more connected - to brands and to other community members.

 

 

nasimson
Thinkernetter
Monday September 3, 2012 4:27:16 AM
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no doubt businesses are now thriving at a triple rate due to social media than ever before.
But don't you think that just as the people 'who once were praising the internet and were of the opinion that social media had changed our lives notably and had shrunk the whole world into a small global village are now blaming facebook for making them lonely,' won't be feeling any hesitation in
declaring that social media has damaged the market badly as social media causes some people to get depressed by reading about other people's purportedly perfect lives??

 

abdlah
IQ Crew
Thursday May 31, 2012 8:50:01 AM
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ChrisTOP, I agree that social networks will hardly turn people into loners but rather it creates social space for them.
ChrisTOP
Thinkernetter
Wednesday May 30, 2012 10:42:54 PM
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I feel the same way, Jeff. It's not that I don't see how communication via computer may intuitively seem like it's stunting socialization, but as you mentioned, the amount of people I can now keep in contact/ share my views with has expanded exponentially. I'm just not sure how that can be a bad thing.

ChrisTOP
Thinkernetter
Wednesday May 30, 2012 10:31:30 PM
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Hey Nicole,

 

I understand what you mean, but I'm not sure I agree that this lowering of the barrier renders communication as less meaningful. It seems to me that 'meaningful' communication has more to do with the content of the exchange than how it is achieved.

 

 

 

nathanwosnack
IQ Crew
Wednesday May 30, 2012 3:13:49 PM
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Definitely. "Who ever thought back in the days that you'd have friends you have never met in real life that you actually value and engage with regularly?"-- I did but only because I was engaging with people online in BBS's and on newsgroups in the mid 1990s already. But I never would have imagined that people would be so willing to give up their private information and share a lot of their private thoughts on a relatively public arena. Perhaps, I thought, a generation of citizens would, but I had my doubts that older and more private conscious people would change their tune and do the same.

It's great to be in touch with you all!

jfleischman
Rank: Cave Painter
Wednesday May 30, 2012 12:05:57 PM
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Hi Nicole,

Very good for business and I would say also good for humanity.  Social media has had such a significant impact in so short a time that I think there is a natural tendancy to resist the change.  I'm sure the phone (land line), personal computer, and mobile devices have all had it's nay sayers early on.  Social media is a new way of staying connected to more that a small circle of friends albeit at a distance.  My 15 year old son uses social media in a far more interactive way and it's interesting to see how he communicates with his group of friends and stays informed about far more than I could at his age.  I remember the early days of the web when people had similar concerns - could you imagine life without the web today?  It's so ubiquitous and connected to other channels and devices that we take it for granted and for digtial natives they'd be wondering why we're having this discussion.

Jeff

jfleischman
Rank: Cave Painter
Wednesday May 30, 2012 11:54:28 AM
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Thank you Chris,

Personally social media has helped me to stay connected with others that would not be possible - there simply isn't enough hours in the day.  I still value "human interaction" with friends and colleagues - social media allows me to expand my circle of friends by allowing me to keep up with others without a huge investment in time.  Expressing and sharing my views to such a large audience wouldn't be possible without it.

Jeff 

Brian Newby
IQ Crew
Wednesday May 30, 2012 11:29:56 AM
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Regarding "Alone Together," I think of the Internet's impact on religion.

As a Catholic, I've heard often the phrase from Jesus, "When two or more are gathered in my name..."

I saw our parish priest nearly stroke when I suggested years ago how handy it would be if mass was televised.  Of course, now many are, or streamed, including our parish.

But two or more are not gathered in this way.  Reach is extended dramatically, however.

It goes from religion to philosophy, I guess--if two or more are virtually gathered, are they really gathered?  I think so, but I get the disconnect others may have.

Nicole Ferraro
IQ Crew
Wednesday May 30, 2012 11:18:32 AM
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@ChrisTOP: "As the article you linked points out, it is unlikely that social media turns people into loners, it's likely that it simply gives loners an outlet to withdraw."

I agree, in part, with what you've said.

But I think social media, for all its business benefits, hurts communications in an undeniable way. It lowers the barrier to entry and as a result it makes communication between people less authentic and meaningful. I realize the blog mentioned the isolation factor, which I do think is part of it too. There's that book "Alone Together" and I really think that sums up what social media has done for society.

Anyway, I bet Andrew Keen will have a lot to say on this subject, so I hope you can join us for our IE Radio show with him tomorrow/Thursday at 2 PM ET.

 

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