Matthew Boruch
9/22/09
Many businesses are using Information Systems to generate more profit for their business. The article “Businesses using Twitter, Facebook to market goods” shows one innovative new way to reach a new type of consumer. The article uses a small business in Pittsburgh to demonstrate the trend of social networking sites throughout all kinds of businesses. The Dozen Bake Shop near Pittsburgh announced the daily specials to their fans on Twitter and Facebook as an experiment. Followers on these social networking sites responded quickly and the bakery saw a tremendous boost in sales, especially the advertised daily specials.
Both Twitter and Facebook have grown exponentially in recent years causing businesses of all sizes to use the technology to their advantage. According to the article, Twitter has grown 1,382 percent and Facebook has grown by 228 percent between February 2008 and February 2009. The technology is used as a marketing tool and allows for two-way communication between the business and the consumers. These advertisements are seen daily while people check their social networking accounts. This form of advertising is the quickest way to inform customers. The social networking method also has downsides. People can use the websites to spread news about the company whether it is good or bad. If people complain about a companies customer service on a social networking website, that opinion can spread to other consumers.
Businesses now pay close attention to social networking websites so they can please their consumers. American Eagle is one of the many companies to use a website to solve a complaint. A customer complained that the American Eagle website had crashed before she had a chance to redeem her coupon that was expiring soon. The conversation between American Eagle and the consumer took place through a series of tweets on the website Twitter. 4,000 of American Eagle’s followers could follow the situation being handled before their eyes. To avoid poor customer relations with all those people, American Eagle was almost forced to settle with the annoyed customer and give her what she wanted.
Although using social networking websites could greatly improve a company’s marketing and customer relations, not all companies could be benefitted by this technology. Poorly maintained profiles could show the customers that they do not really care. More traditional forms of media still will not be replaced by Twitter or Facebook. Tv and radio reach more people than websites can. The people who receive the online advertising may not be the kind of people that the company wants to target. According to the article, Aldo Coffee in Pittsburgh did research on their Twitter followers and found that only 18 percent of their followers were local residents. The co-owner of the coffee shop said in the article that, “‘Most of our people don’t understand the Internet’ he said, meaning that Twitter captures only a ‘small slice’ of the customer base.” Since Aldo Coffee’s main market is toward older people, the maintaining of social networking websites may not benefit the company.
http://www.post-gazette.com/pg/09172/978727-96.stm
It is really interesting to think about the concept of companies using social networking websites to reach out to various customers. The use of Twitter and Facebook to advertise really shows how far technology has come. For example, a friend of mine saw an advertisement for a free Netflix trial on Facebook the other day, and ended up subscribing to it, it is safe to say that if Nextflix advertising wasn't on his Facebook page he would have never ordered it. Social networking websites seem to be the new way that virtually all news is spread, and with the millions of people that are now using them daily it also appears to be the easiest way to reach out to a target audience. I would not be surprised if you are able to place orders through these sites in the near future.
ReplyDeleteI agree with Matt here that this new innovation of social netowrking for businesses is productive, and that it only reaches to a certain demographic, but I think that demographic is changing. Sure many people do not use the internet, especially for social networking, but every year people are becoming more technogically advanced, and the technologic generation is now growing into adults. So I see this social networking for businesses having the potential to become a big catalyst for advertising.
ReplyDeleteThis article, I think, is extremely interesting and is very efficient for companies who want to expand and definitely generate more profit. This notion of social networking with a company's customers introduces another method, similar to using social networking through Facebook and Twitter...text messaging. I actually received a text message from Roland Park Bagel Place yesterday saying: "RPBC: $1 OFF ANY COFFEE DRINK or SMOOTHIE today thru Thursday with Purchase of ANY Breakfast or Lunch Sandwich $3 or MORE...City Paper's BEST BAGEL of 2009" It's incredible how quickly technology is advancing and spreading in thousands of new ways. So not only are companies advertising themselves, weekly specials, etc. on Facebook and Twitter, but now through text messaging and I definitely feel it helps both the company and customers.
ReplyDeleteThis article shows the importance of social networks in generating future success for businesses. The widespread usage of Facebook and Twitter allows companies to advertise and promote their business and offer many benefit such as low cost, wide reach and speed. Because so many people are a member of one or both of these social network sites, they have become a necessary marketing tool as companies can relay information to customers and customers can voice concerns or problems to the company. However, companies need to have expertise is using and capitalizing on these sites to make sure they are reaching their target audience and monitoring and addressing any customer complaints. In addition, I was surprised by the percent increases in the use of each site. I always hear about how integrated Twitter is, but I have never really met anyone that tweets.
ReplyDeleteHowever, I have been exposed to the power of Facebook. For example, my roommates likes this one type of Tyson chicken nugget and some how one of the advertisements on her Facebook page was for the exact type of chicken nugget. Furthermore, for a project in the SIFE organization, my team and I are creating a Fan page on Facebook for the small business we are consulting in order to help him reach his target audience.