social media lit review
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Social Media's effect on small businessTRANSCRIPT
Jack Carpenter
Power of positivity: How a positive and persistent social media can increase brand
presence, recognition and business.
Abstract
Social media has become a crucial aspect of modern marketing in the
business world. The cost-saving audience interaction tool has opened doors for
businesses to connect with their consumers in many ways. Social media provides
businesses with the power and influence to change their company, for better or for
worse.
A hidden power found within social media is what is known as social CRM
(customer relationship management). Social CRM provides the ability to
communicate clearly with clients and “improve the ability to win business”; social
CRM allows the audience (fans, followers, readers) to become familiar with the
brand, which consequently causes familiarity and trust with the brand, which can
lead to higher closing rates and generating faster revenue (Erffmeyer & Johnson).
Social media deems a difficult task especially for B2B businesses, as their social
media isn’t for directly advertising to consumers, but it can be used to generate a
greater brand presence. Many companies assume social media is not worth
investing in because there isn’t a visible R-O-I (return on investment) directly from
its posts. However, the effect of social media goes far beyond ROI, as social CRM can
be powerful enough to influence customers that the company may not need to
invest in meetings with that client to win them over in ways their social media
already has.
As of March 2014, Shadow Productions had a social media following of 129
Facebook followers and 3 YouTube subscribers. YouTube and Facebook are the
primary platforms that Shadow will be focusing on regarding their social media
efforts. This paper discusses how positive and persistent social media posts from
Shadow Productions can increase brand recognition, fan count, and most
importantly, business.
Keywords: Social Media (SM), small and medium-sized enterprises (SMEs),
content marketing, social marketing, media content distribution
An Argument that active social media uses will lead to better customer
engagement, brand presence, and business.
The power of social media
Social media is an incredible tool that has been booming since the beginning
of the century. Apart from personal updates and interactions, social media has
become an effective marketing tool for large corporations as well as small
businesses. Social media, through proper handling, acts as a facilitator to involve
“fans” by offering them a virtual space to manifest themselves in company-related
issues and updates. Social media in a wider perspective is a pool of various two-way
communication platforms that enables the free flow of ideas, information and values
on the Internet (Csordas). Social media networks provide a perfect opportunity for
businesses to investigate the usefulness of social capital. Sharing, rather than selling
your audience, is the principal to successful social media. When businesses adhere
to a “build a network before you need it” premise, they create relationships with
potential customers which may lead to easier tractions when they become clients, as
opposed to references or cold calling. In essence, the prior social connectivity
between buyers and sellers can potentially affect outcomes based on networked
familiarity and trust, all created through a simple social media presence of a
business (Baehr & Brown 2010).
Handling that power
Facebook currently averages approximately 10,000 posts per second, which
means it is going to take strategical efforts to make sure posts are not buried in the
virtual world (Thompson). With that ease and fluidity comes responsibility to
properly manage a company’s image. For example, SONY capitalized on social media
when one of its clients, Chris Brown, went viral in a video of a wedding dancing to
his song. This happy-go-lucky video created positive reviews of the company and
the artist, despite the surrounding bad press at the time regarding domestic abuse
charges. SONY plugged the stint on all of its platforms and it logged over 4 million
views in just two days (Mills). On the contrary, companies like United Airlines have
damaged their reputations from their social media use. One incident of the company
sprang up when they argued with an amateur artist whose guitar was damaged
while being handled by the airline. The debate sparked outrage and went viral,
eventually costing the company’s shareholders $180 million as United’s stock
dropped 10 percent due to the bad publicity (Freeman).
Misunderstandings
Many companies underestimate the power of social media, and spend little to
no time cultivating a presence for their brand. One mistake made by companies is
their search for R-O-I in social media. What they don’t understand is social media
usage is not to generate sales, but more to support other aspects of their business.
“It’s not how much you sell in social media, it’s how much you engage your
customers. The R-O-I is in the information that’s out there – that leads to change and
process improvement. Most companies use Twitter to quiet people down; instead
you should take the information customers are providing and bring tangible
improvements from that to your business” (Weiguo).
Shift from traditional marketing to social marketing
When it comes to marketing, traditional advertising (emails, advertisements,
mail, etc) is often a one-way communication flow of material. This prevents the
opportunity for businesses to engage with their consumers and get the response or
feedback they’re looking for. With social media, that one-way barrier opens into a
two-way communication flow. Social media turns businesses into a broadcaster,
with their fans being the audience who can weigh in with their opinions and engage
with the brand. Social media can help firms who are on the long tail end of the
advertising industry as traditional methods may bear too many barriers of entry
such as lack of capital, patent and license requirements, or lack of distribution
channels. Small businesses are therefore left with social media to creatively and
cost-effectively communicate with their target audience (Csordas).
Common goals with social media
As stated many times in this paper social media is a powerful tool, but what
exactly can it do? Studies of B2B businesses surveyed that the top incentives for
social media are to build brand awareness (claimed by 81percent), increasing traffic
to a website (claimed by 77 percent), generating leads (claimed by 67 percent),
providing deeper engagement with customers (claimed by 66 percent), and
improving search results (claimed by 57 percent) (Maddox).
In this study conducted by Maddox, when asked how social media efforts
have affected their business in said categories, 44 percent claimed it has had
positive impacts, 28 percent claimed neutral impact, 27 percent claimed they could
not tell, and only 1 percent said it had a negative impact.
A positive persona approach to social media
B2B businesses have a tougher time with social media, as they are not
marketing a single product or service to a wide range of customers. Therefore, they
cannot track conversion rates from clicks to purchases. However, with proper
execution of even the simplest social media campaigns, a company’s image can be
redefined and improved through posts containing positive information and positive
feedback. For example, the company Maersk Line, a vessel shipping company,
decided to engage in social media to “get closer to customers.” The company’s
management originally had doubt in the plan, as they saw their business as “boring”
and, in perspective, posts about giants cargo ships don’t seem all that appealing. But,
the small social media team developed areas of emphasis to connect with their
customers. The four areas were communication, customer service, sales and
internal usage. At the beginning of their campaign, they launched Facebook photo
albums of their ships, separated by specific categories. They had current ships, old
black and white photos, and often posted about their subtle accomplishments.
Despite the seemingly boring persona, after the campaign’s first 11 months, Maersk
Line attracted over 400,000 likes to their Facebook page. They noticed an incredible
increase in customer engagement as well as employee interaction with the site and
each other. After one year, over 67 percent of Maersk Line’s following claimed they
had an improved perception of the company due to their social media presence
alone (Katona).
What works
The process of beginning a social media campaign can seem overwhelming,
but with simple observations of a company’s strengths it can easily be executed into
a powerful campaign. One of the greatest strengths of social media is making the
invisible process quasi-visible. This means posting the behind-the-scenes of the
business, whether it’s a chef in the kitchen, a designer in the lab, an artist writing,
etc. For Shadow Productions, mentioned earlier, this could include pictures of actual
production scenes, staff around the office, or personal updates on projects and other
endeavors related to the business. This allows the company to open its arms to
those following; it also gives the audience an inside look on the business which will
create a greater bond in the community. Studies have shown that content posted not
directly related to the firm, but filled with positive or unique messages, has left a
positive impact on the firm (Csordas).
Another genre of content often implemented is humor. A humorous post can
be a graphic, picture, quote or short video poking fun at a light hearted topic. This
type of social media, again, creates a bond within the community and is a fresh mix-
up from posting prosaic information about the company. Another positive non-
related post is media content created specifically for holidays and events. This could
be a branded Valentine’s Day message or a post celebrating the changing of seasons.
Although completely irrelevant to the company, it has been proven that these posts
generate buzz, as many followers will simply share a post created by a company as
opposed to creating one themselves. In fact, the non-informative posts are often the
posts creating the most likes, comments and shares from an audience.
SPIN Method
To obtain the best results, the SPIN method should be followed while
creating content. The SPIN method suggests these four key factors to make an ideal
campaign: Spreadability, Propagativity, Integration, and Nexus. These sum up the
spreadibility of the content based on personal factors, the propagativity of content
based on media type, the integration of multiple media platforms and the successive
reinforcement of messaging (Mills). The SPIN method is a conceptual model to
design viral-prone content on social media. In today’s digitally magnified world of
advertising having a campaign “go viral” is one of the highest level of achievements
any marketer can attain.
The social media operator is in full creative control when constructing the
content, however, no feedback can be received until the post is released. Once it’s
released, it comes down to the SPIN factors to determine how effective the post will
be.
The goal of releasing content is for it to be spread beyond the first circle. The
first circle is your immediate following who will automatically see the post because
it will show up on their timeline. However, in order to expand your community,
content must be released that is likeable enough for the first circle to share it with
their first circles, which is considered your second circle. To reach outer circles,
though, content must be created in accordance to the SPIN method to make sure
each post is viral prone.
Spreadability: In order for a post to be passed around and receive attention, it
must have a high level of likeability and stimulation. The message needs to appeal to
the customer and be something they, too, would be willing to share. This is why
boring analytics or pressing advertisements do not do well. A customer will be much
more willing to “share” a happy irrelevant post, which will not directly benefit the
business, but it will spread the brand and build the audience.
Propagativity: This refers to the ease in which the consumers are able to
redistribute content. The reason social media exists is because it is difficult for
humans to walk around person to person trying to promote the same product that
can be promoted to thousands in a single click. Now, despite the ease of social
media, the platforms and methods of releasing content may be the reason the post
does or does not get shared to your second circles. For example, re-tweeting can be
done with one click, while sharing a YouTube video takes 4-5 clicks, which may
discourage the audience from doing so.
Other important factors
It is important to make sure once a social media campaign begins, it
continues for a long period of time. Generating an audience base takes time and the
best way to generate an audience is by releasing material periodically over time. If a
campaign includes video clips, which it will for Shadow Productions, it is more
valuable to release the series over a given period of time rather than all at once
(Mills).
Most importantly, it is noted to make sure the brand’s social media channels
are not strictly marketing. Research shows that people are twice as likely to interact
with companies over social media for customer support than response to marketing
(Thompson). As stated earlier in the paper, there should be a small variety of posts
coming through the feed. A good rule of thumb, according to Thompson, is
generating 90 percent of posts about relevant audience needs, regardless of
whether they promote your service or not. The other 10 percent can be self-
promotional, but be careful not to be too boastful, as the audience will often have a
negative reaction that will hinder the company’s presence.
Metrics
Many companies using social media do not understand which metrics are
valuable. Between page likes, comments, shares and impressions, it is difficult to
determine if the page is successful or not. To start, it is very important to determine
the quality of your followers. Right now, Shadow Productions is at 127 followers,;
however, even if it changed to 10,000, it doesn’t mean the followers are actually
helping your business. It is important to connect with an audience that is in your
demographics such as location, age, or class. For the average business audience, 98
percent of their followers are spectators, 75 percent are critics, and 56 percent are
creators who post and heavily interact with the page (KATONA). When it comes to
consistency, the top brands with strong social media presences post an average of
17 times per month, or essentially every-other day. See picture below. Metrics
important for Shadow’s social media plan will be covered later in this paper.
What should be tracked are visits to a website, the number of fans, followers
and likes, the number of mentions about the company on such platforms. Diving
deeper into analytics, other metrics that should be tracked are organic search
rankings, number of inbound links, search volume for brand or keyword phrases,
and search marketing conversion rates. This can be tracked using Google Analytics.
And a majority of companies monitoring their social media use software such as
Hootsuite, SocialMention or Radion6 (Maddox).
Shadow Production’s Social Media Process
As stated earlier in this paper, Shadow Production currently tolls 129
Facebook followers and three YouTube subscribers. Facebook and YouTube will be
Shadow Productions’ primary platforms to focus on, as Facebook allows the greatest
reach to an existing and a new audience of clientele, local businesses, and fans.
YouTube is the best platform to display Shadow’s multi-media work, which can
easily be intertwined with Facebook posts.
Small businesses have fewer resources, including financial and human
resources, which is why expanding and adjusting their customers bases are key
factors to long-term survival. (Toombs) suggest that small businesses will benefit
from long-term, strategic use of social CRM in which there is genuine customer and
fan involvement rather than customer manipulation. Social media can give a small
business with a modest marketing budget an active community of potential
customers, making the business more competitive in a local, regional, or global
market (Baird, C & G. Parasnis). However, social media must be properly produced
and delivered to both captivate the audience without using too many resources from
a business as small as Shadow Productions. (Fischer, E. 2011) suggest the following
conditions for a company to produce their social media:
Access: Allow for each employee to gain access to the platforms. This means
providing a company-wide username and password and following the social media
plan that will be explained later in this paper. Also, an essential part is discussing
social media posts in a group discussion, which for Shadow Productions could easily
be a short topic in the bi-weekly Wednesday Skype meetings.
Acknowledgement of expertise and interest: During these discussions, it is
good to clarify who is good at what topics. Also, a company must be cautious not to
force unenthusiastic employees to be enthusiastic, as their posts may lack the
energy or positivity that their colleagues may be presenting. For example, Doug who
is more behind the scenes, may project a different voice than Leah who is constantly
in the playing field, so it may be good to balance posts more towards Leah.
Create a voice: With that said, one unique voice should be decided on to
implement throughout all social media. For Shadow Productions, it seems a satirical,
upbeat voice would best fit what the company already represents through their
voicemails and other niches that shows the company is fun and takes everything
with a grain of salt. This is a contagious way to engage fans and create buzz.
Reassure participants of their security: This is simply to inform staff members
of the security and expectations of their online behaviors. Shadow Productions is a
very tech-savvy company, so most members probably understand the logistics of
online posting, but it would be smart to dive into it just to clear any questions or
concerns that may be in the air.
Balance social media roles: At Shadow Productions, here is the breakdown of
employee expertise:
Leah: gatekeeper, informant to rest of staff
Matt: historian and strategist
Alex: frequent poster of online material, knows creative aspects of company
Doug: behind the scenes technical advisor, less likely to be posting
It is important for these roles to be noted and taken into consideration when
dividing up the social media plan so the certain members do not get unfitting levels
of responsible when it comes to contribution.
Develop a content schedule: This is a very important aspect, especially since
Shadow Productions does not have the resources to waste on aimlessly wandering
social media. This paper will construct a plan for the next year of social media use
for Shadow Productions. Shadow Productions will have an intern until the end of
April, and then again in the summer or fall. This plan with incorporate interns as
much as possible; labor is free and will not hinder the business by using up other
human capital.
Content Schedule
Shadow Productions is currently in its 25th year of business, which is
essentially an excuse to re-launch their social media and reconnect with all of their
clients, inevitably expanding their social media presence in pursuit of all the goals
this paper has discussed.
In retrospect, 129 likes and 3 subscribers is not going to mean any valuable
business for Shadow Productions through social media, which is why the following
plan is slow and steady, aiming to increase Shadow Productions’s presence long-
term with minimal resources used.
Starting April 1st, Jack the intern will do the following to re-launch Shadow
Productions’s social media. Using new 25th anniversary graphics, Shadow
Productions will add all previous clients on Facebook and request a “like” in return.
The same methods will be used for all associated businesses in Burlington, including
media outlets such as The Burlington FreePress, WCAX, 7Days, etc. A small email
newsletter will also be released to Shadow’s contacts, with a primary goal of getting
the receivers to “like” Shadow Production’s Facebook page.
Shadow’s Facebook page will also begin pumping content on a regular basis.
The goals will be engaging the audience, informing the audience of current projects
happening at Shadow Productions and presenting their own version of the
phenomenon, “Throwback Thursday,” which will feature an old piece produced by
Shadow that will be embed from their YouTube page.
An intern, or a chosen staff member, should be responsible for posting a
minimum of three posts per week in the voice established by the company. The
three posts should fall into one of the following categories (one of each every week):
1. Throwback Thursday: Every Thursday, one archive should be posted to
Facebook with a caption that states the title, year, client, and one fact or
thought about the project. These pieces will be picked from a bank of
material from Shadow’s YouTube page. Jack will prepare this bank of
material. After Jack leaves, this can be easily be managed by Leah or Matt,
who know most about the history and facts about each project. This post
should not take more than five minutes to complete.
2. On the site update: Once per week, a staff member should upload a picture of
a piece being produced whether it is a talent in the booth doing a voiceover,
an on-site video project, or even a staff member editing a piece. This will give
a lot of personality to the company and give the audience valuable insight to
what Shadow Productions really does and keep them interested in the
company’s work.
3. Topical post: This post should be a link, picture, meme, or just a simple status
regarding a topical issue not related to Shadow Productions. As stated in this
paper, humor is often a way to connect with audiences, maybe weighing in on
current issues (without giving too biased opinions, a company should always
stay neutral). This can be beneficial to connect with your audiences and
create buzz on the account. Any staff member who decides to weigh in when
they come up with an idea can accomplish this post. There should be a
minimum of one of these posts per week, but there should be no more than
three because although they are easy to produce, you do not want the page to
become too irrelevant. This post can really capitalize when it comes to
holidays and special events. It is easy to create a Shadow Production’s
“Happy 4th of July!” picture, which will easily be spread around by the fans
who do not want to create a picture themselves.
This frequency should be continued for the next year (April 2015 – April 2016).
This frequency requires minimal maintenance while it should have positive effects
on the brand and goals that this paper has discussed. If successful, this plan should
continue beyond April 2016. However, determining “success” is the next challenge
which we will break down here.
Metrics
At this point, Shadow’s 129 followers will not be bringing in “big” numbers in
regards to analytics. However, it is still important to track analytics to see what sort
of impact the new social media strategy is having on the audience, and if and at what
rate the company’s online presence is growing.
There are six key metrics for tracking Facebook analytics:
1. Fan reach: Fan reach simply corresponds to the number of fans of your Page
who have seen any given post. This is “organic” reach, which means that it
only records the views that occurred directly, and not through an action of a
friend of a fan (such as a like, share or comment). The views that result from
a friend’s actions are recorded in “viral” views. The fan reach metric is
available for Excel file download via Facebook Insight.
2. Organic reach: Organic reach corresponds with the number of people, fans
and non-fans, who have seen a given post. As with fan reach, organic reach
only records views that are not the result of a friend of a fan’s action (which
is counted in the viral reach). The main difference between organic and fan
reach is that organic reach includes views from people that are not
(currently) fans of Shadow Productions on Facebook. These stats can easily
be found right in Shadow’s Insight interface.
3. Engagement: Engagement is the number of people who clicked anywhere in
your post. Which simply means, they interacted with your post, liked or
commented on the picture you posted, watched the video you embedded, etc.
You can find your engagement rate right next to your organic reach.
4. People talking about this: This is data also referred to as “storytellers.” This
metric is based off of people who “like,” “comment,” or “share” your post.
This is different from engagement as these fans did something to show your
post to their friends. This metric can be found right with Engagement and
organic reach in your Facebook Insight.
5. Click-Through Rate: This is important for Shadow’s content to measure those
who clicked through the posts to end up on your YouTube or website. This
can also be found in Page Insights in Facebook Insights. This is an important
number to track, although it can also be tracked by Doug on the other end
from the website.
6. Negative Feedback: Shadow will not be exposed to out-loud negative
feedback, as you are not promoting a product or service directly to
customers who may only have Facebook to express their opinion. However,
Facebook still tracks negative feedback through the likes of your fans hiding
certain posts, hiding future posts from your page, unliking Shadow’s
Facebook page, or reporting it as spam. This is important to track as the more
negative feedback you receive, the more Facebook’s internal metric system,
“Edgerank,” will hide your posts from future fans. When you receive negative
feedback, it will become clear which types of posts fans like, and which types
of posts fans don’t like.
Discussion
The literature collected for this paper revealed the power of a consistent
social media presence for even small business like Shadow Productions. A lot of trial
and error tactics by companies in social media’s relatively short lifespan have
provided us with enough information to curate an effective plan to boast a
business’s online presence. (Csordas) made clear how social media is the bridge for
communication between consumers and business. Also covered is the power of
positivity and how even irrelevant posts can benefit a company. (Mills) was the
driving force behind the power of viral marketing, and how it can affect companies
for better or for worse all while elaborating the SPIN method which is essential for
creating powerful content to make a campaign successful.
This paper gives a broad outline of the route a company could take to revamp
its social media presence and take advantage of the opportunity the platform offers.
Through careful execution, Shadow Productions will be able to boost their presence
and make better connections with their surrounding areas that will benefit business
in more ways than just sales. The greater purpose of this paper is to make sure
social media operators are not seeking immediate R-O-Is, but that social media is
used to connect with consumers, receive feedback, and reach circles beyond their
current contacts.
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