Internet Marketing, Social Networking

How Can Social Networking Benefit A Business!

May 9, 2007

My last post was about social networking sites and it’s great to know that such sites help people get connected and well, networking across the globe is so much easier and convenient now! People not only benefit from the ease of networking through the internet but businesses can also benefit too!

Social Networks by nature grow virally and in turn drive traffic to your website as I mentioned in the earlier post.

Why?

Because consumers join as members, invite their friends to join, view interesting reads and to grow their own online networks. Companies or businesses benefit because many more viewers know of your company website, name and brand. Your members can regularly invite their friends about the various activities to your site and this gives rise to more visitors which in turn can bring about more consumers. And the best thing is all of this online publicity, is low cost and effective.

So how does Social Networking benefit a business? Check out the list below!

1. Social Networks expand your customer base virally and boost revenue.

>> Well, that’s because when a consumer and a member of the company’s social network adds a new friend or sends new potential consumers an e-card recommending on the company/business the member, your customer base is expanding as this happens. Think about it, your members can send an invitational e-card to many people at a time and helps to increase your customer base by the same amount! Increase in customers mean increase in sales which in turn bring about an increase in revenue! 😉  Moreover, you can sell advertisement space on your social network site is another way of earning revenues.

2. Social Networks increase customer loyalty 

>> The more the time the consumer spends on your website through the social network, viewing your website name, brand name and/or marketing message, the more loyal they will become. And what happens is that they are also more likely to utilize your services and participate in your company’s activities.

3. Social Networks promote strong branding.

>>  You can even send out e-mail notifications for all of these activities with your website’s name. This keeps your website’s name fresh in the users’ minds which encourages branding. Since these emails alerts prompt the consumers to positive social activity, they shouldn’t mind receiving them. 😛  And once your consumer and/or social network member visits daily and spends considerable time on the network checking their messages, replying to emails and comments on their message boards, writing journals, adding pictures to their profiles, inviting friends etc, it creates that golden opportunity for you to show them your marketing message or brand name on the network site!

4. Social Networks retain customers.

>> How? Well, you can make use of the features of the social networking site of your company/business to maintain relations with your customers such as a feedback forum or a company journal. The company journal in the social network or even have their employees interact with their consumers through the network which allows greater merchant-consumer interaction and also improves customer relationships. Moreover, after consumers create profiles and add their friends and journals to the company’s social networking site, they will likely remain with your network because they have established their social base there. In addition, once they have a base, they will invite more and more of their friends and associates to join them there!

5. Social Networks can up-sell products and services.

>>Social Networks provide ready consumers and gives your company/ business many opportunities to share with your members your products and services and turn them into paying customers. Moreover, remember how they can easily recommend their friends to the site, what happens is that once these potential consumers get hooked onto your social networking site, they become paying customers too!

6. Social Networks differentiate the company from its competitors.

>> Social networks will help differentiate you from your competitors and stand out more prominently in the marketplace. Because not all companies/businesses will set up a social network for their consumers and by doing so, will help you to connect your consumers to you and make them repeat customers.

7. Social Networks reduce customer service costs and maintain customer data.

>> Why? Because social networks allow customers to help each other with any product difficulties and also the efficient use of the Internet as a mode of communication allows feedback to be replied as soon as possible! Moreover, a consumer database via your social networking site will help you to keep track of your consumers – from their personal records, their profiles such as their likes and dislikes, favorite movies, books, music, websites, activities and more.

The use of the Internet and even social networking has allowed greater competition amongst companies and their businesses. It is important for them to realise the huge potential of social networking as a platform for them to expand their business in just a short period of time without much costs and effort! 😉

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