Social Media and Your Business - some Impressions

by Angie Macdonald

The hype around social media continues to grow as millions of people globally join social networks and online communities. The marketing value of these tools is enormous yet many businesses are still not sure what they are and how they can use them.

On Thursday evening I went along to a talk at the City Women’s Network entitled Social Media: Online Communities and Your Business to hear three experts explain how businesses can take advantage of all that social networks and online communities have to offer.

First up was Giles Colborne, Managing Director of cxpartners who explained what online communities are and how they work. There are many different types of communities on the web; communities of support like the American Cancer Society and Trip Adviser, communities of friendship like Facebook, communities of ideas such as Boxes and Arrows, where professionals exchange knowledge, and finally, communities of expression, as in sites like Flickr and Last.fm.

What makes communities different is the issue of control. Unlike the authoritarian approach of most corporate cultures, control in online communities lies in the hands of the people using them.

The best way to approach starting your own online community is to treat it like organising a party and to think of the kind of people you’d like to attract, from an attentive host to lively social hubs and of course, your loyal friends. It is the type of people who join and participate in your community that will make or break it.

Kristin Berg, Planning Director at Euro RSCG 4D spoke about why communities and social networks are important.

If you are a business, chances are your target audience are already spending their time online in social networking sites like Flickr and Facebook. Word spreads fast in these online communities and companies need to monitor what people are saying about them and try and influence what they can.

Also, consumers are starting to interact with brands online in a manner which involves interaction, involvement and co-creation. The result is that consumers show more loyalty to the brands they feel a part of.

The benefits for businesses wanting to make use of online communities are numerous, including market research, the PR value that comes from being seen as the first to do something and advertising in the form of pre-launch product buzz, as in Microsoft’s new ZuneScene rival to the iPhone.

Companies like Sheraton Hotels and Coca-Cola have created brand engagement and engaged consumers online by asking guests to send in video stories about their trip for the Sheraton website and contribute design ideas for a new Coke bottle. The possibilities are endless.

Yang-May Ooi, Partner at Social Media Consultancy ZenGuide told about The Housing Finance Corporation’s blog or online discussion space, THFC Space, which she was involved in setting up along with CEO Piers Williamson.

A blog seemed the perfect platform to replace the quarterly newsletter that was emailed out in PDF form and promote the image of THFC as a modern, forward-thinking financial organisation.

It was decided to target the key influencers in the Housing Finance sector and gear the content towards what the members are interested in. The “bloggers” on the site include the key influencers in the sector as well as THFC staff.

Ensuring the success of THFC Space involves an editorial management policy with a blog editor and the CEO as the Managing Editor, who plays an active role in driving the project forward.

Outcomes of this project have included membership growth, an increase in discussion and increased marketing awareness amongst all at THFC.

The talks were followed by a lively discussion which touched on the issue of security and how to decide which social network to use. All in all, I thought the speakers made the idea of social media and business less scary and more accessible. It was a thoroughly enjoyable evening and really encouraging to hear such enthusiastic and positive comments around social media from the businesswomen in the audience.