Everywhere: Comprehensive Digital Business Strategy for the Social Media Era

Citation

Hazlett, K. (2012), "Everywhere: Comprehensive Digital Business Strategy for the Social Media Era", Journal of Product & Brand Management, Vol. 21 No. 4, pp. 301-303. https://doi.org/10.1108/10610421211246748

In his latest book, Everywhere: Comprehensive Digital Business Strategy for the Social Media Era, W2 Group Chairman Larry Weber addresses the challenges faced by companies trying to wrap their arms around social media as a means of communicating with the many publics that have (or should have) an interest in their products or services. In so doing, he makes a solid case for the real value of social media use as a business strategy.

From Part 1, “The Evolving Social Web,” in which he lays the groundwork for social media adoption, to Part 4, “The Future of the Social Enterprise,” Weber walks the reader step‐by‐step through the rationale for considering social media as part of the overall business model.

“Research conducted by marketing author David Meerman Scott, in which he examined the financial performance of the top ten companies on the Fortune 500 list, found that the stock price of companies that engaged in real‐time communications with their customers was up 67 percent during the period from December 31, 2009, through September 3, 2010, while the stock price of companies that were not engaged was up only 42 percent” (p. 9).

Not only can a social media strategy meet the company's external communication needs; it also provides a tangible internal benefit … “when applied internally, social media can ‘smarten’ companies by providing employees at all levels with access to knowledge already contained within the company” (p. 13).

The importance of developing a social media strategy as part of your overall marketing program, says Weber, is demonstrated by the fact that “79 percent of people who follow brands on Twitter are more likely to recommend those brands, and 60 percent of Facebook fans follow the same behavior” (p. 15).

For any company, regardless of its size or marketing budget, the exponential value of these third‐party endorsements should be obvious, especially when you consider that “more than 80 percent of adults in the United States who use the Internet also use social media” (p. 16).

Concurrently, “social enterprises,” those companies that have adopted and embraced social media as an integral part of their marketing strategy, must also accept the reality of greater transparency and stakeholder engagement, which also often means a shift in corporate culture.

Resistance to change, especially in the area of open and active stakeholder engagement, is a major impediment. The question that has to be asked and answered is “How at ease are you with an emerging communication medium that allows anyone and everyone to say what they want about your organization, publicly?” (p. 35).

To counter that potential unease, Weber advises careful upfront research to ensure that you will be, in fact, targeting and talking to the right audiences. “The first step in every organization's comprehensive digital business strategy is understanding who its customers and other key stakeholder communities are, as well as their connections to the business processes and the overall mission of the company” (p. 42).

In addition, says the author, you should identify and develop relationships with active members of the communities in which you wish to participate as those individuals have the potential to serve as advocates for your company and your products. “A mere 16 percent of online consumers generate 80 percent of consumer online impressions – these are the influencers at work” (p. 50).

Having established the rationale for a digital business strategy, Weber turns to the all‐important aspect of “engagement,” or actively communicating with stakeholders and responding to their input. In particular, he advises empowering your employees to provide that interface. Rather than being perceived as “confusing” to the customer, Weber offers that “more often than not, multiple voices are more effective at getting customers the information for which they are looking” (p. 68)

Crucial to the overall planning and implementation, though, is the need for open and honest communication … “consumers expect that companies will be transparent and authentic in their interactions and in the way they conduct their overall business.” Why? “If they are not, consumers will blog, tweet, comment, and vote with their feet” (p. 92).

One significant change in the overall process, says the author, is the speed with which actions must be taken. “Several years ago, just in time was all the rage for companies. Now it's real time. Social media conversations and feedback are immediate” (p. 104).

This immediacy introduces a new level of importance to your communications in that “[consumers] want to know what companies stand for in addition to making money and whether companies are interested in their customers beyond the prospect of an imminent sale.” (p. 115)

More important, though, Weber cautions that “… marketers have to learn a new way of communicating to be effective in social environments. Gone is the one‐way mass messaging delivered through television, radio, magazines, and direct mail.” (p. 116)

Weber next asks and answers the logical question that you should be asking at this point: “How effective is social media in driving purchases? According to a recent study from [market research firm] Chadwick Martin Bailey, 67 percent of consumers who follow brands on Twitter are more likely to buy those brands after becoming a follower. The same is true for Facebook fans, who are 51 percent more likely to buy after becoming a fan” (p. 120).

Having laid the groundwork for the rationale behind a social media presence, the author goes on to emphasize that “… success is not just a case of putting the right technology in place. The value of social environments is in the dialogs that take place, not the underlying technology itself.” (p. 140)

In other words, do not get wrapped up in the minutiae … focus on the conversations and make sure that you're listening … and responding … to your customers and other stakeholders. “Social environments that link people who are less connected – an organization's employees worldwide, an elected official with his or her constituency, or a company and its customer base – magnify the opportunities to create value by making these connections possible” (p. 180).

Finally, Weber turns to the internal value that social media can bring to your company. “It's no surprise that social media is being used internally; effective employee communication is one of the critical success factors in successful employee engagement. Such engagement is widely believed to increase employee productivity, enhance employee retention, and improve employee morale” (p. 210).

So what, as the author suggests in the title of the final chapter, “Next,” is next? “Companies that are doing the work of building a comprehensive digital strategy will reap the rewards of a budding business renaissance. This strategy will bring them into better alignment with the stakeholder communities with which they are engaged … ” (p. 236).

Everywhere: Comprehensive Digital Business Strategy for the Social Media Era is a thought‐provoking look at the adoption and implementation of social media as part of the overall business plan. The marketing executive as well as the CEO would be well‐advised to absorb all that this excellent work by digital thought leader Larry Weber.