Until a few years ago, you could build a brand with mass-media advertising. The entire world watched the same, limited TV channels, listened to the same, limited radio stations and read the same, limited newspapers. There were no other options. And no way for customers to speak up.
Fortunately (or unfortunately), those days are over. Today, your product or service drives brand value. Your brand value today comes from the quality of your product or service – not what you say on your social networks.
2. Profit Margins
Being the lowest price is no longer a sustainable, competitive advantage. Because sooner or later, your business model will be disrupted by technology and someone, somewhere will offer a cheaper, commoditized solution. Discounting and aggressive pricing leads to a vicious, downward spiral. So companies have to cut corners elsewhere, just to turn a profit. They hire cheaper staff, cut back on operations, and stop reinvesting in the business to help it get better.
All of this leads to a poor customer experience. So when someone is disgruntled, they don’t call the slow, ineffective customer service line. Instead, they spread the negative experience via the word of mouth about your business on platforms such as Yelp and Google or share it amongst their family and friends. And that ripple effect kills-off any good will you’ve created online.
You can’t expect an “open” or “engaging” social media presence if your company isn’t, either. Draconian policies from the industrial area don’t foster community. And having a mission statement is much different than believing in a mission. Your social media presence is just the external view of your culture. Companies are like cities with thousands of moving parts and there’s a trickle down effect that can enhance, or detract from your social media strategy.
Does your company really believe in two-way dialogue? Do executives “buy-in” and show their support with more time, resources, and training? Can your organization be flexible and adapt in real-time to evolving customer demands?