Minimizing costs and maximizing profits are the two basic rules of business economics for any company. And social media plays a crucial role in both, provided it’s applied correctly.
When it comes to establishing and running a business, some of the major costs include advertising, marketing, sales and customer service. Higher the cost savings, the more it benefits a business.
Social media offers a low-cost alternative to conventional techniques. For example, an online press release doesn’t cost a fortune and it extends the reach of conventional print media press release.
Despite being a staunch social media loyalist, I’ve enormous respect for classical time-tested legacy techniques – be it marketing, sales or customer service. I’m not an advocate for replacing conventional techniques with social media in most cases, merely for the sake of minimizing costs. However, I strongly believe that the best judge for choosing the right mix of social media and conventional media techniques is the business itself. No one understands your business better than you do. While it’s good to get expert opinions from social media specialists, you should be judicious in your decision making.
Social media is equally effective as a cost reduction as well as tool to boost the revenues of your business. A well-planned and well-executed social media marketing campaign can do wonders to boost your business revenues. On the contrary, an ill-devised social media strategy isn’t likely to get you any impressive returns.
With the ascendancy of social media, companies are being forced to change their business models. Social media helps boost revenues directly through online marketing and sales campaigns as well as indirectly through online PR exercises. Social media can help create brand awareness and is a great way of educating customers about your business and your products.
Social media blended with a good SEO strategy can help drive more traffic towards your business website. More high-quality traffic implies higher number of business inquiries and prospect customers. With a well-devised plan, a business should then be able to turn prospect customers into ‘real customers’.
Social media is a great tool to build personal as well as professional contacts. As a business gains more professional contacts, it opens up additional possible avenues of revenue through partnerships, reseller and channel arrangements etc. I’m an ardent LinkedIn fan and I have a strong professional network which has helped me spread my business globally.
It’s all about money, honey!
There’s no such thing as a free lunch, especially in business sectors which face cut throat competition. Therefore, businesses are constantly on the prowl looking for innovative ways to reduce cost and boost revenues, and social media is a great option to do so.