Home > Uncategorized > Social media : Any business relevance?

Social media : Any business relevance?

Very often one is in conversations with marketers or agencies where the excitement of social media is tempered with the hard nosed data on ROI.

Nearly everyone seems to agree that a social media strategy is important because prospects/customers are participating in it. On this basis, companies embark on the journey. And then shortly after that, there is a round of budget cuts and that gets chopped because ROI is not measurable.

I was talking to a marketing person of a leading hotel here last week. I was pointing to her that on many sites the hotel was getting bad reviews and it was important that the hotel responded to atleast give the impression that it was listening, and hopefully doing something about it. (Marriott does this quite well).

Her response was that they used to do it, but then management decided that it was not generating any revenues so they cut back on it! Incredible.

Can you imagine that in the real world? Ignoring customer complaints and feedback?

Wonder how long the hotel will be around as a profitable venture.

Here in this post are three concrete examples with ROI on social media actually helping businesses. One of the examples uses Linkedin to win a business.  So you don’t even need to embark on an ambitious plan beyond listening to what people are saying/asking and spot your opportunity.

As much as brands are getting out there and broadcasting maybe the better business model is listening and responding.

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Categories: Uncategorized Tags: , ,
  1. February 22, 2010 at 11:36 am

    I think it’s also the fact that the media universe and communication as a whole have changed drastically, but the methods of calculating their effectiveness or role in a marketing plan have undergone very little change. It’s rather like a multinational of today choosing to use an abacus to compute their supply chain requirements! I strongly believe it’s up to the agencies to lead this – creativity in communications is more than just “the creative”. The media company that can come up with a new, more relevant way of measuring ROI, maybe even a fresh definition of the term, will probably be the king of the world.

    On the subject of listening to your customers and responding, this may interest you if you haven’t seen it before:

    http://adage.com/garfieldtheblog/post?article_id=117332
    A link to the actual video appears in the comments.
    Also worth reading is Bob Garfield’s posts titled “Listen”. The link below is to Part 2, but there are 7 🙂
    http://adage.com/garfieldtheblog/post?article_id=116859

    Mina

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