Social Media and Its Effect on Business

Social Media and Its Effect on Business

Jennifer HoodThomas Nelson Community CollegeBusiness 100 D01, Spring 2015Professor Robertson April 14, 2015

What is social media?Any website that interacts with you while giving you information is a social media siteMany categories, including social networking, social bookmarking, and social reviews

The story of dave carrollDave Carroll, the famous country singer, took his plight to YouTube after baggage handlers destroyed a $3,500 guitar.United had refused to do anything to compensate him- until 150,000 people viewed his video telling the world what they had done. To date, that video and its follow ups have a combined 17 million views.

The story of dave carrollUnited Airlines stock dropped 10% within 4 weeks of the initial posting, costing them approximately $180 million dollarsTaylor Guitars, who made the guitar that United handlers had destroyed, made this an opportunity. They not only replaced the guitar, they also made a video talking about their repair services and safe travel with guitars.

Who came out the obvious winner in this deal?Social Media is Free advertisingPeople live their lives on Facebook, shopping, spending, asking for advice, complaining, complimenting, and recommendingNo business can afford to turn down the opportunity to be exposed to and potentially talked about by 1.35 billion people

Social Media is Free advertisingBusinesses can share information with customers, engage new customers, perform customer service, and promote their company.Sales and promotions through social media have become even easier now that Facebook allows businesses to create an online shop.Small promotions through social media can even bring customers into brick and mortar storesSocial Media is Free networkingLinkedIn, a professional networking site, works to connect the worlds professionals to make them more productive and successfulEntrepreneurs with small staff or start-ups can network with influential partners to help them get to the next levelAn executive from every Fortune 500 company is a member of LinkedInSocial Media is Free networkingTwitter also allows to share information with other businesses, as well as leading experts in their field.It also allows users to have relationships with businesses and people that was never possible beforeSocial Media is Free informationSocial listening allows companies to see what is being said about competition.New applications for mobile phones and internet browsers track data about competitors.Seeing what works and what doesnt online for competitors allows businesses to tailor their online presences.Social Media is Free informationThe other, very important, side of social listening is monitoring your own brand.Yelp! Allows customers to leave feedback on businesses that cant be altered by the business, so other customers feel more comfortable heeding the advice.Tweets and comments on a company Facebook page can help nip customer service issues in the bud.