Social Media ROI Series Part 4: Relationship Building

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Social Media ROI Series Part 4: Relationship Building

We are all familiar with the business motto: ‘A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so.’

                                              

This motto has served many businesses in understanding that at the center of their operations is the customer. They (customers) determine the growth of a business. That is why organizations spend a fortune in recruiting new customers and still work round the clock to keep the old ones.

Knowing this, businesses then try to find ways to ensure that they build a formidable client base: which can be achieved through good customer relations. What businesses will realize is that social media can aid in cultivating good customer relationships, which will then lead to sustainable sales ROI.

“Delivering outstanding service [through social] creates impassioned advocates and can serve as a powerful marketing weapon for companies,” according to Jim Bush, Executive Vice President of American Express World Service, in a company press release. 

“For example, consumers who have used social media for service in the last year are willing to pay a 21 percent premium at companies that provide great service. They also tell three times as many people about positive service experiences compared to the general population. Ultimately, getting service right with these social media–savvy consumers can help a business grow.”  He adds.

Jim's testament, further proves the value of building relationships on the social web. On that note, social media delivers the following benefits:

• Customer Loyalty
• Brand Advocacy
•  Intent To Buy

Customer Loyalty

This is a result of consistently providing positive emotional experience, physical attribute-based satisfaction and perceived value of an experience, which includes the product or services.

According to beyondphilosophy, to build customer loyalty, customer experience management blends the physical, emotional and value elements of an experience into one cohesive experience.

It is said, retaining customers is less expensive than acquiring new ones, and customer experience management is the most cost-effective way to drive customer satisfaction, customer retention and customer loyalty.

Not only do loyal customers ensure sales, but also they are also more likely to purchase ancillary, high-margin supplemental products, and services. Loyal customers reduce costs associated with consumer education and marketing, especially when they become Net Promoters for your organization.

Brand Advocacy

The big and famous brands use brand advocates:  people who talk favourably about the brand and pass on positive word-of-mouth  messages to other people.

One thing a small business owner should know is that brand advocates are just as important to a small business as they are to the bigger corporations out there. People like to buy from companies or people that they know and trust, and they tend not to buy from those they do not.

However, how do you build that trust, particularly online? How do you get customers to come to you without spending a lot of money on advertising? By setting up a social site, and sharing topics that are of interest to your target audience.

Intent to buy

This is the ultimate goal of all business relationships. Yes, a business will feel good having a cohort of loyal customers. Having them (brand ambassadors) sell your business name, services and or products to their peers. 

However, building a relationship to the point that customers desire your products and or services and eventually decide to act on their desires, is the ultimate ROI.

For a business to walk the journey from building relationships and converting page visitors into loyal customers all the way to repeat buyers, takes good relationship building skills. Social media has provided a platform for which we can spend less, reach many people, and establish a connection. One that would eventually lead to sales. 

By monitoring the sales metric, you are able to quantify the value social media is bringing to the table. Understanding ROI helps us stand firm, and set our eyes on the prize.

If you missed by previous post, read it here.