Gallup says 62% of the more than 18,000 U.S. consumers it polled said social media had no influence on their buying decisions. Another 30% said it had some influence. U.S. companies spent $5.1 billion on social-media advertising in 2013. So if social media fails in conversion, what’s the business justification?
Lot’s of comments on LinkedIn over my post on the failure of social media to convert consumers but some people are missing two key points:
1ne: Consumers are overwhelmed with content/information online and don’t have to engage 99% of the brands in their lives.
2wo: ırands should be on social media, but realize that they need to be there when consumers NEED them or want to engage them on THEIR terms.
Now take a look in your kitchen, how many of those brands do you really want to have a social relationship with? However, if you have a question or comment on a product you expect that the brand will be represented on social media and that they will answer your question/post in Internet time. But most brands are not prepared for this.
A survey conducted by Social Media Marketing University uncovers that while customer complaints in social media are on the rise, more than 50 percent of brands don’t have an effective strategy in place to manage potentially damaging social commentary.
According to SMMU’s survey:
– 58.2 percent of brands receive customer complaints via social media ‘occasionally.’ 10.9 percent receive them ‘somewhat often’ while 4.9 percent receive them ‘very often.’
– 26.1 percent of brands reputations have been tarnished as a result of negative social media posts; 15.2 percent lost customers and 11.4 percent lost revenue.
– 23.4 percent of brands not only do not have a strategy in place to manage negative social commentary, but do not have plans to develop one. 24.5 percent of brands are in the process of developing a strategy and 7.6 percent have strategies in place that are currently proving to be ineffective.
What we have here is failure to communicate.
The fact is that too many people over-promoted and over-hyped social media to compensate for bad marketing. It’s part of an integrated strategy and unless you execute on all brand touchpoints you’re wasting money and resources thinking that a Facebook page is going to increase sales.