Using Social Networking to Generate Revenue:
Social networking on the business
front offers a couple advantages. The first and most obvious is a more
efficient means of getting to know your customers, or getting your customers to
know your business better; second is the increased ease of management and
fulfillment of current contracts and orders. Both of these tasks are have the
same target—revenue generation.
There would
be no benefit to a business to maintain a social media presence if value, and
therefore revenue, were not a result. Currently it is estimated that the value
of one person liking your business/product on Facebook is approximately $3.60.
But, how do we arrive at this number? The Facebook users are not directly
providing cash or purchases through Facebook. The value comes from a variety of
means. First, they are increasing the visibility of the business. When liking a
business, their preference is being shared with their network of friends. The
average number of Facebook friends is approximately 190. So with one like they
are spreading the brand with those people. The dollar amount comes from the
potential resulting from a like. There is potential for: personal
recommendations, purchases, being able to incentivize a purchase.
In addition to just liking and
sharing the business/product, it increases the credibility of the business on a
personal level with little to no effort from the business itself. The only step
the business has to take is maintaining their networking presence and already their
message is spreading at an unparalleled rate. Through marketing research it has
been found that a personal recommendation carries more weight than hearing it
directly from the business, showing the importance of maintaining a social
network.
I invite
you to share how a business’ social media presence has affected your buying
habits or opinion of the business; Or even other ideas of how you think social
networking can increase revenue.
Sources:
Anders, E., H. Hungenburg, H. P. Denker, and S. Mauch. n.
page. <http://www.esat.kuleuven.be/pub/nj_bscw.cgi/d54738/END08.pdf>.
Backstom, L.. N.p.. Web. 4 Jun 2013.
<https://www.facebook.com/notes/facebook-data-team/anatomy-of-facebook/10150388519243859>.
No doubt that social media has a great effect on our life. Social media helps people in many different ways. For example, it helps people connects with their relatives and friends and be able to check their profile no matter where they live. It is obvious that social media need to generate profit in order to provide more options and services to the users.
ReplyDeleteFor a long time, I was thinking about how does social media such as Facebook or Twitter get their money. However, after reading this blog and listen to the presentation, I realized how they generate profit. Seriously, I was not expecting that they can get all this money from one click to like a page of a business.
For me, I use Twitter a lot during the day to check what do people tweet and write my own tweets. Twitter helps me in knowing what is going on in my country. Sometimes I am be able to know some news before many people their know about it. In these days, it it hard to live without these kinds of social media.
Twitter has become an interesting tool. Personally I never saw the possibility of twitter becoming a source of important or useful information. It is interesting to see the number of news industried using twitter as an instant feed for quick developments in news.
ReplyDeleteFor example a few weeks ago there was a tweet from a news source that was hacked saying President Obama was assassinated and resulted in a very short (a few minutes) crash of the NYSE. Scary to think that something 140 characters or less can have such strong ramifications.
It is very interesting how businesses these days are becoming popular through websites that are created for non-business related activities. It seems that if a certain company did not have a FaceBook page, it would be considered "old" and not up-to-date. I'm noticing that the first thing companies do, especially new ones, is trying to get people to like them on FaceBook. This is absolutely beneficial to them, as mentioned in this post, because people do in fact rely on each others' recommendations more than they do on the business representatives and their advertisements.
ReplyDeletePersonally, if I were on FaceBook and saw that a friend of mine recommended a certain product from a certain company, I would be more inclined to try it than if the salesperson tried to talk me into it himself. I guess it is easy to believe that the representative is only after sales and profit, whereas a friend might have no personal gain other than advising others about the product.
I agree that social networking technology is a new way businesses are going to grow their business and generate revenue. With the amount of people that use social media today it would be a mistake not to use it with your business. Using social media is a low cost form of advertising that you can still reach a wide audience. Like Kyle said the average number of friends a user on facebook has is 190 friends. When they like the page it shows up on all of their friends wall saying that they liked the page. From that it can just spread to their friends. This type of advertising is similar to what 4Food is doing with their business model, using crowdsourcing for both marketing and menu development. With that being said if anyone would like to go on my business page for real estate you can check school reports, community reports, look for houses and more. Just LIKE my page on Facebook and it will keep you updated on whats going on in real estate. Facebook.com/JustinLenteRealEstate
ReplyDelete