Social Media: Value equals Benefit minus Cost

What is Value?

Often on blogs, in marketing spiel and in conversations we hear people talking about value. IT becomes one of those words we simply accept without question that we are all on the same page with it. In particular social media relies on producing content that is relevant and adds value to your customers. But how do we know and prioritize what is of value to our customers?

Have a look at the presentation below by Laurent Francois who tackles this brilliantly in his presentation.

 

Although it is a complex proposition let's just simplify it to illustrate some points:



The common ground is saving money and time. So why not investigate what are ways that you can create value for your customers. If you don't want to be perceived as discounting then look for the value of saving people time.

Two examples of organisations using Twitter to add 'value':

• BtoB - Caterpillar uses Twitter to connecting with current and potential customers, and addressing service issues.


• BtoC - Zappos uses Twitter to keep customers informed of relevant company and product information, events and promotional offers

Value = Benefits - Cost

To your customers ask yourself why they should invest their time (Cost) in coming to your website, Facebook page, Linkedin Group, Twitter...if you haven't identified the value proposition and content strategy then you are unlikely to succeed.

Take a look at what your are doing: What content is most popular with your target audience? Is the content you share via social media resonating with your target audience or a random audience?

Understand your Target Audience

As we often mention to our clients it all starts with understanding the customer and NOT assuming that you know their needs. Research even done simply is better than none at all and will provide you with some ways to be relevant to them.

Here is a some articles on social monitoring and management tools that can help you do this:

• 8 Methods + Lots of Tools for Getting to Know Your Audience


• 5 New Social Media Management Platforms


• 20 free, awesome social media monitoring tools

Alternatively select some clients or customers to free lunch, prepare some questions and get their views.

• Focus Group research


• DIY: Research on a shoestring budget

This is reinforced by some research into why people 'Like' brands:

A study of 1,500 Facebook users, ExactTarget concluded that 38% of online U.S. consumers “Like” (formerly “Fan”) a brand on the social networking site.

• 40% to receive discounts and promotions


• 39% to show my support for the company to others


• 36% to get a “freebie”


• 34% to stay informed about the activities of the company

Conversely we can also see that different channels will require different strategies for brands and businesses:

• Plain and simple - Social Media: Top 10 Reasons Why Your Audience Doesn’t Like You


• Top Reasons Why Consumers Unsubscribe Via E-Mail, Facebook & Twitter (Mashable)


• Reasons people ‘Unfollow’ Brands on Twitter

Key takeouts:

• It is important to attract and gain new customers (as well as reward loyal customers) develop a clear integrated strategy that includes how you can use social media to promote your products or services strategy


• 'Freebies' can create a lot of word of mouth and provide added value to potential and existing customers. This could be information that saves people time or you could provide a mobile app e.g. in BtoB a utlity app or for a consumer brand an app that people find entertaining. This develops your brand awareness as well as provide valuable interaction and data.


• Consistently producing content that focuses on your customers needs and is relevant. In your strategy vary the reasons so that you are not repetitive in how you add value or your content strategy. Social monitoring and customer research is not a one off event - it needs to be embedded into your marketing processes and used to adapt your strategy.


• Be obsessive about understanding your customers and you will create competitive advantage. If you understand your customers better than your competition and then act on this by producing content that is right for them and adds value (promotions, articles, blogs, posts...) you will gain market share.

Some interesting reports

In the spirit of this post I have read some interesting reports lately and they are listed below for you to take a look at and download:

A report by HootSuite on social media measurement

The Global Social Media and CSR Report by Wolfstar

If you come across any good reports about marketing in the digital age and/or social media then let us know