The viral, word-of-mouth nature of social media makes it a powerful tool for gaining new customers. Research and common sense show that people are far more likely to buy a product or service that is recommended by their friends than one that is advertised using traditional media. You can use social media to encourage word-of-mouth recommendation by:
• Getting your fans to interact with your social media content, which will automatically advertise it to their friends
• Offering rewards for sharing your Facebook page or content through promotions and sweepstakes
• Become socially likeable (see Humanizing Your Company and Increasing Customer Loyalty) so that your fans will recommend you without any incentives
Customer Loyalty
Through a proper use of social media, you can make your customers love you more and even become passionate ambassadors for you by:
• Showing you care about them by listening and responding to them, even when they are not directly addressing you on Twitter, blogs, etc.
• Providing them with real value, such as how-to's, information and advice on your Facebook page, Twitter account or blog
• Involving them more directly in product/service development by asking them their opinion on your social media channels
Target Market Analysis
Using social media you can gain valuable market insights without the need for an expensive marketing company. The two pools of information are public (online) conversation and your own fans/followers, which together allow you to:
• Monitor all conversation in your target market
• Identify new product or service opportunities
• Capture customer sentiment about your company/product/service
• Receive early warning about potential product/service issues
• Conduct case studies using your own fans/followers
Humanize Your Company
Through genuine, authentic interaction with customers, social media allows your company to be more than a logo or a shop front. People like to buy from people. Through social media you can have far more real conversations with real people than using any other tool. You can earn their trust and their loyalty, by doing things such as:
• Listening and responding to what people say about your company, products or services
• Posting simple video interviews of satisfied customers or your own employees
• Tell fans/followers about your business plans, successes, failures and ideas