Social Media (SOCME) is a modern global phenomenon affecting nearly every aspect of life and business, 65% of online adults use social networking sites, and most describe their experience in positive terms Pew (2011). The phenomenon has created democratic communications not only amongst consumers, but also built channels for customers to directly communicate with businesses regardless of wealth and status. Amazingly, these channels have emerged in less than half a decade.
Understanding the root cause and subsequent drivers of consumer engagement directly influences marketing budget. When customers are highly engaged, their lifetime value to a brand increases significantly, (Fleming and Asplund, 2007) propose that engaged customers generate 1.7 times more revenue compared with regular customers. Fleming and Asplund found that engagement produces higher revenue and profit, in addition having engaged employees and engaged customer’s returns a revenue gain of 3.4 times the norm. Managers, who can accurately measure performance and optimize budgets and resources, usually outperform their rivals because of these competitive advantages. Advances in modern technology enable marketers to acquire, process and deliver content in novel ways, Social media allows users to interact and engage with corporations and brands in ways that would be unthinkable with any other media.
Although data analytics and metrics have become very sophisticated, these tools still struggle to decipher human perceptions and therefore behavior. New media is global and cross-cultural differences translate differently. While some global brands have an arsenal of promotional budget, this does not guarantee them engagement with customers. Engagement is built on relationships, this became evident when our Asia office helped client Biba http://www.facebook.com/BibaIndia rank as the No 1 Facebook page with highest daily engagement rate across all brand pages in India.
Are you ready to engage more effectively? Call, Tweet or email us today.