Social business model

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The social business model is use of social media tools and social networking behavioral standards by businesses for communication with customers, suppliers, and others.

Contents

Combining social networking etiquette [1] (being helpful, transparent and authentic) with business engagement on LinkedIn (for one-to-one interaction), Twitter (for immediacy) and Facebook (for content sharing) more fully involves employees in the organization and increases customer intimacy and trust. [2]

Overview

Traditional business models, particularly in large organizations, have had as one common characteristic careful limitation of direct contact between those within the organization and those outside of it. Only certain specific individuals (most frequently in roles such as sales, customer service and field consulting) were designated as "customer-facing" personnel.

Organizations further limited outside access to internal employees through filtering mechanisms such as publishing only a main switchboard number (whether routed through a live receptionist or an interactive voice response system) and generic "sales@" or "info@" email addresses.

The Cluetrain Manifesto (written by Rick Levine, Christopher Locke, Doc Searls, and David Weinberger and published in 1999) was among the first books to predict the demise of this old order and the emergence of more open business models, though most of the business world was slow to adopt [3] the book's recommended cultural changes.

Thirteen years later, authors Dion Hinchcliffe and Peter Kim added structural underpinnings to the cultural shifts outlined in The Cluetrain Manifesto in their book, Social Business by Design . The book details many of the ways social media tools and practices are being adopted within organizations, to support both internal employee collaboration and external customer engagement (which the authors describe as the "bigger problem"). [4]

Elements

In implementing the social business model, organizations apply social networking protocols and tools in a range of areas, [4] potentially including:

Characteristics of organizations adopting the social business model

Organizations that fully adopt the social business model will exhibit four key characteristics: [6]

Technical and functional requirements

While much of the change inherent in adopting the social business model is cultural, [6] it also requires process changes enabled by social business technology. Functional requirements for a social business technology platform include:

See also

Related Research Articles

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<span class="mw-page-title-main">Internal communications</span>

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<span class="mw-page-title-main">Social media measurement</span>

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<i>The Cluetrain Manifesto</i>

The Cluetrain Manifesto is a work of business literature collaboratively authored by Rick Levine, Christopher Locke, Doc Searls, and David Weinberger. It was first posted to the web in 1999 as a set of ninety-five theses, and was published as a book in 2000 with the theses extended by seven essays. The work examines the impact of the Internet on marketing, claiming that conventional marketing techniques are rendered obsolete by the online "conversations" that consumers have and that companies need to join.

<span class="mw-page-title-main">Social media marketing</span> Use of social media platforms and websites to promote a product or service

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A contact manager is a software program that enables users to easily store and find contact information, such as names, addresses, and telephone numbers. They are contact-centric databases that provide a fully integrated approach to tracking all information and communication activities linked to contacts. Simple ones for personal use are included in most smartphones. The main reference standard for contact data and metadata, semantic and interchange, is the vCard.

<span class="mw-page-title-main">Enterprise social networking</span>

Enterprise social networking focuses on the use of online social networks or social relations among people who share business interests and/or activities. Enterprise social networking is often a facility of enterprise social software, which is essentially social software used in "enterprise" (business/commercial) contexts. It encompasses modifications to corporate intranets and other classic software platforms used by large companies to organize their communication, collaboration and other aspects of their intranets. Enterprise social networking is also generally thought to include the use of a standard external social networking service to generate visibility for an enterprise.

Social CRM is use of social media services, techniques and technology to enable organizations to engage with their customers.

Marketing automation refers to software platforms and technologies designed for marketing departments and organizations to more effectively market on multiple channels online and automate repetitive tasks.

A social employee is a worker operating within a social business model. Following an organization's social computing guidelines, social employees use social media tools both for internal workflow and collaboration purposes and for external engagement with customers, prospects and stakeholders through a combination of social media marketing, content marketing, social marketing, and social selling. Social employee programs are considered to be as much about culture and engagement as they are about business processes and best practices. In addition to increased leads and sales, social employee best practices are said to improve business outcomes important to social media marketing, such as increased connections and web traffic, improved brand identification and "chatter", and better customer advocacy.

Data driven marketing is a process used by marketers to gain insights and identify trends about consumers and how they behave — what they buy, the effectiveness of ads, and how they browse. Modern solutions rely on big data strategies and collect information about consumer interactions and engagements to generate predictions about future behaviors. This kind of analysis involves understanding data already present, data that can be acquired, and how to organize, analyze, and apply that data to better marketing efforts. The intended goal is generally to enhance and personalize the customer experience. The market research allows for a comprehensive study of preferences.

Social media use by businesses includes a range of applications. Although social media accessed via desktop computers offer a variety of opportunities for companies in a wide range of business sectors, mobile social media, which users can access when they are "on the go" via tablet computers or smartphones, benefit companies because of the location- and time-sensitive awareness of their users. Mobile social media tools can be used for marketing research, communication, sales promotions/discounts, informal employee learning/organizational development, relationship development/loyalty programs, and e-commerce.

References

  1. Brogan, Chris. [An Insider's Guide to Social Media Etiquette http://www.chrisbrogan.com/socialmediaetiquette/], ChrisBrogan.com. 24 February 2011.
  2. 1 2 3 Burgess, Cheryl. [The Rise of the Employee Brand http://www.business2community.com/branding/the-rise-of-the-employee-brand-0140637], Business2Community. 1 March 2012.
  3. Cass, John. [General Motors Brands Use "Immerse & Disperse" To Adopt Social Media http://pr.typepad.com/pr_communications/2010/03/general-motors-brands-use-immerse-disperse-to-adopt-social-media.html], PR Communications. 15 March 2010.
  4. 1 2 Carr, David F. How to Design a Social Business, InformationWeek. 8 May 2012.
  5. 1 2 3 4 Hardaway, Francine. Forget Social Media -- Here Comes Social Business, Phoenix Business Journal. 8 May 2012.
  6. 1 2 3 4 5 6 Armano, David. Social Business: Where It's Been & Where It's Going, Logic + Emotion. 6 May 2012.
  7. 1 2 3 Benioff, Marc. Welcome to the Social Media Revolution, BBC News. 10 May 2012.
  8. 1 2 Marsh, Kelly. South Africa: How Social Business is Creating Changes, AllAfrica. 10 May 2012.
  9. 1 2 Brito, Michael. 8 Cultural Indicators of social Business Transformation, Social Business News. 14 May 2012.
  10. 1 2 Canales, Bruce. What is Social Business? Archived 2013-01-25 at archive.today , Hula Hub magazine. 30 November 2011.