Thursday 5 December 2013

Chapter 9 Case Study - Social Commerce Creates New Customer Relationships


Question 1 : Assess the people, organization, and technology issues for using social media to engage with customers.
As the social media such as Facebook, Twitter has become powerful tools for companies of all shapes and size to engage with customers. They can inform the customers about their latest update in order to keep good relationship between them.
As example, location-based businesses can tell their current location to the customers via Twitter or Facebook and also appointment-based businesses can easily tweet or post cancellation and unexpected opening. Larger companies run sweepstakes, promotion and advertisements that capitalize on the social media features in order to achieve greater visibility.
Instead, they have an opportunity to shape the perception of their brands and to solidify relationships with their customers. One of the popular brands products; Levi’s has used Facebook and Twitter to allow consumers to socialize and share their purchases to friends.
The all-purpose retailer Best Buy use social media to answer user question and respond to complaints. Best Buy’s social media followers who generate feedback on social networks and related sites, and these data gathered are converted into useful information. The company uses that information to gauge the success of promotions and the impact of advertising campaigns. Rosetta Stone has used Facebook’s targeting capabilities to determine which types of people responds to the various ads it has created. 

Question 2 : What are the advantages and disadvantages of using social media for advertising, brand building, market research, and customer service?
There are a lot of advantages that will benefits all that are using social media for advertising, brand building, market research, and customer service for their companies. As using the social media such an efficient way to engage with the customers, the advantages of it hugely affected the productivity and performance of a particular company.
On top of that, the social media features of Facebook ads, the ability “Like” a brand, send a virtual gift, answer a poll question, or instantly stream information to your news feed and this will leads to achieve greater visibility. In addition, Facebook allow advertisers to use features “Like” posts by customer’s purchases and share with their friends. This will benefit the advertiser to improve their firm to gain more buyer or customers of their products. Moreover, by serving Facebook ads only to the group of people to whom they were most attractive, Rosetta Stone experienced a tripling in advertisement performance.
Twitter has developed many offerings to interested advertisers, like Promoted Tweets and Promoted Trends. These features give advertisers the ability to have their tweets displayed more prominently when Twitter users search for certain keywords. The use of Twitter as intermediaries is to interest customers. A person that is in charge to handle company’s account Twitter is responsible for responding to queries and engaging in conversations about the brand or their product. So then, the good relationship between the company and customers can be build and this will leads to a better performance and reputation of the company.
Nevertheless, there are several disadvantages of using the social media. As the sharing information among the consumers or customers is unlimited, there are a few bad impacts that will affect them. Information with no limit will lead to cause of infringement of private information among individuals. So then, the problem of securing one’s information cannot be preventing. This will cause the danger of one’s personal information and security of themselves.
As like what Starbucks learned, the social media can be unpredictable and not always beneficial. The campaign that had been runs by Starbucks is backfired. At the urging of anti-Starbucks protesters, users flooded Starbuck’s Twitter feed with pictures of employees and protesters holding signs criticizing Starbuck’s labor practices. Because of this problem, Starbucks faced a big problem that must be solving in order to bring back their good names.

Question 3 : Should all companies use Facebook and Twitter for customer service and advertising? Why or why not? What kinds of companies are best suited to use these platforms?
In this globalization era, sharing information is spread all over the world with no limit. This phenomenon is spreading and all people are trying to be in the same level among others to achieve successful. So the use of social media likes Facebook and Twitter for customer service and advertising are very important for any kinds of company. All companies should use social media as a tool to improve their company's performance and productivity instead of to make possible of company’s performance and smoothing the works of promoting progress. Therefore, the company is a step forward to be the best organization to promote and make their product as one of the mostly chose by consumers in other words, as a ‘product champion’.

There are a few kinds of companies are best suited to use these platforms such as the company are selling mass product. As example, company of shoes is very important to use social media to improve their communication between the customers. Social media likes Facebook and Twitter are usable for the company to deliver their product information to customer faster. Feedback or respond from customers is one of the methods for the company to gather data about their product’s response and if there is any possible solutions are needed based on what the customer complaints. Thus, this problem could be overcome and the performance of the company can be improved. Besides that, social media is use to link the customer and the company to know what best practice are important for the firm to increase the connectivity.

No comments:

Post a Comment