This time on What are Social Media we are looking at the probing question: Why should you use Social Media?

There are a number of ways you can profit from using Social Media tools and networks – personally and professionally. Here are some of the most common reasons for people to use Social Media in their business communication:

Dialogue with your customers and stakeholders
Yes, you can talk to your customers and stakeholders via other media or channels. But the style of communication used in Social Media is different: it enables you to talk WITH people, not just TO them. The built in feedback mechanisms break down communication barriers, enriching the conversations.

Boost credibility
The exchange that is taking place in Social Media engages a potentially large number of participants. The wisdom of the crowds comes into play, and if someone is making untruthful statements, they will quickly be identified as such. By participating in Social Media you are signalling that you are aware of this, and will therefore not knowingly spread lies. Your reward is the trust and credibility you gain in your community.

Communicate directly with people sharing your interests
By engaging in Social Media relevant to your agenda you can be sure to be talking with people who share your interests. These people care about your issues, they’re not just a timeslot or a demographic that you might reach if you utilise traditional media for your communication. And: they will let you know what they think instead of keeping you guessing the effect of your communication efforts.

Find out what other people think about you or subjects important to you
Participating in Social Media will gain you new insights into ideas that others have on your business, industry, products, anything really that could and does affect your business. It’s like your own inexpensive focus group.

Create communities
As mentioned before, there are people out there who have a strong interest in your ideas, services and products. By utilizing Social Media you can facilitate the creation of communities dedicated to your cause.

Better workplace climate
Social Media are often referred to as virtual water coolers, where employees can meet and share information important to their work and to themselves, open to all. Social Media can improve working in teams, the sharing and processing of new ideas as well as the flow of communication between ranks. Which results in motivated employees.

Word-of-mouth marketing
In a world where only 13 % of people buy a product because of an ad they have seen in the traditional media, and only 6 % believe that advertisements are truthful advertising is in a real dilemma. Word-of-mouth marketing is a way to let your customers spread the word about your services, and Social Media channels are great to amplify these messages.

Market research
I’ve already mentioned the side effect of focus groups that result from Social Media use. Basically, by browsing Social Media forums important to your agenda as well as engaging with your stakeholders you gain vital insight into a certain market segment, for a very small investment. Traditional market research is expensive, time-consuming and intrusive, whereas you can get access to most information for “free”. You just have to know where to look.

Consumer generated advertising
This is word-of-mouth on video. The rapidly growing popularity of YouTube has made this scenario possible: everyday people producing small commercials for products they like. A current example is Heinz’s consumer generated advertising campaign. This can be encouraged and sponsored by corporations or not, but is in any case an effective, entertaining and increasingly important form of advertising. And one that can be used by anyone, regardless of budget.

Crisis management
In a crisis it is important to react swiftly. Damage control is most effective before too much speculation about your point of view can leak into a broader public sphere. Increasingly, claims that can lead to a crisis are being made first in the sphere of Social Media. By engaging in those forums you can reply in almost real time.

Next time on What are Social Media? Another Mini-Series (Part 3): Are there any Side Effects?