Social Media as a Driver of Sales
Happy 2010.
Social media is still all the rage, but is it really living up to the hype as a driver of sales and results?
We're at an interesting moment in the evolution of social media technology. With millions of people now using Twitter, Facebook, and other networking platforms, in addition to the rise of even more social services in 2010 and beyond, the opportunity of tangible social media ROI is within reach it would appear, but the realities of social networking as a driver of sales results for all participants, is still at best, questionable.
2010 is the year marketers are to be demonstrating how social media produces solid ROI. I for one am not entirely sold on social media producing ROI in a broad sustainable sense. At least not for everyone, or every brand who takes part in social networking. Sure, some companies and individuals have figured out how to monetize social media, and more will. My feeling is social media is first, a communications platform, and second, a marketing tool. Everything else is play, fun and networking.
Some in social media talk about how relationships drive sales, and this is always true to some extent, but take away social networking, and relationship building to drive sales has been a true factor all along. What social media does best is to connect the masses, allowing for the free flow of information, and ideas.
So how exactly does social media drive sales?
When big name brands broadcast to millions of followers, naturally, there is the possibility of driving sales, from broad level mass marketing, and repeated branding that builds product or service interest and awareness. Beyond large companies, well positioned brands, and celebrity sponsored tweets, driving sales with social media is entirely possible through facilitating and enabling information. It doesn't take a whole blog post, or a book to outline how trust and relationships are sales drivers, but, to rely on current and existing social media technology indefinitely as a source of sales generation is, I now feel, a leap of faith. Besides, it really isn't social media that drives sales, but the users behind the profiles, that make generating sales possible.
If you or your brand is generating consistent sales using social media, way to go. I for one, have been an enthusiastic supporter of social media, but now see's the tools of Twitter, Facebook and other platforms as a complimentary sales building force, or, the appetizer to the main course of sales and marketing, which is really sweat equity, (aka hard work), charisma, a good product at a good price, and the right attitude.
So what is my social media outlook for 2010? To continue to be a part of the larger internet ecosystem, of ideas, influencers and information. I believe in social media as an agent to connect and influence. If sales comes from this approach, great. If not, that's fine too.
