Companies seek to grow business through social media

Social media, first introduced as online versions of everyday chatting and gossip outlets, are evolving to embrace more serious aspects of life like making money and advancing careers of professionals.

Companies are seeking closer ties to their existing and potential customers through social media like Twitter which allows for relatively informal interactions through short messages.

A look at “Twitterworld” shows companies and investors are waking up to the potential of a ubiquitous world.

Aly Khan Satchu, an investor and analyst, has perhaps the most followers on Twitter, at over 3500.

An increasing number of companies, from media houses to investor groups at the Nairobi Stock Exchange (NSE) have also opened accounts on the social media to extend their online influence.

But Facebook is by far the most popular social media in Kenya and globally where it has 400 million users.

The NSE currently has about 900 fans on Facebook.

The public use the bourse’s site to ask investment-related questions and get information on the performance of stocks, bonds, and other investment vehicles.

Investment-oriented groups have established social media platforms from where they discuss investment strategies.

At the individual level, professional and start-up businesses are looking at expanding their network for career advancement and business opportunities.

While social media grows, debate about their benefits to businesses and individuals continues.

Some business leaders think their importance in business is rising.

At a past discussion on the value of social media, the CEO of Deacons Kenya (a fashion house), Muchiri Wahome, gave his thumbs up for new media.

“We used to have a problem of shoplifting at our stores,” he said, adding that after the company staff launched an appeal against the vice through social media, it slowed down.

Other analysts say Facebook and Twitter can be leveraged to promote a company’s brand.

Social media, for instance, offers a relaxed informal interaction between a company and its customers, unlike face to face settings which have traditionally remained stiffly formal.

For instance, local television stations and newspapers have Facebook and Twitter pages that act as fora for discussing the day’s news stories.

Readers and TV viewers get a chance to interact with their peers and share their thoughts on the covered stories.

Their posts provide data that can be used to develop psychographic analysis of consumers of a specific media product as a recent research shows that a majority of people share true information on the internet.

Another win for the new tools of communications is in their value-adding ability. Facebook and Twitter have links to company’s official websites and this helps to draw in more traffic to a company’s homepage where detailed information and pitching can be done.

Most companies have created websites and the challenge is to get more traffic than competitors.

This is seen as important in light of the fact that more prospective customers now depend on the internet to search for businesses after the decline in popularity of traditional printed directories.

Some analysts, however, think Facebook and Twitter are a fleeting phenomenon, with minimal benefits beyond socialising.

While the overall impact of the Internet in business processes and consumer lifestyle is massive, in Kenya, these analysts place e-mails and websites on a higher pedestal than social media.

“Social media are a fad. There is always a new one coming up to which people migrate,” said Mr Maina Kirugo, a marketing expert.

“They are not stable and a company will be better off investing in its own website for long-term online presence,” he said.

He adds, however, that social media have relevance to specific sectors.

As an example, he cites technology-driven business as standing to gain from social media since their customers and other stakeholders are more likely to be great fans of online trends, including social networking sites.

He says that formal and conservative businesses like banks may harm their brands if they delve too deep into the worlds of Facebook and Twitter.

On the technological side, companies using social media run the risk of their communications being messed up by hackers.

Virtual cop

Last week, First Direct, a Uk-based bank, had its Twitter page compromised.

The hackers sent obscene material to over 800 of the bank’s customers who followed it on Twitter.

Company Tweets and Facebook updates may go wrong if an employee is careless or indiscreet.

There is also the problem of managing communication on the sites. Deciding who will be responsible for updating the information, what to respond to, and how frequently can be tricky.
Apart from promoting social and business interaction, social media have taken on the role of a virtual cop.

Owing to the addictive nature of Facebook, an increasing number of thieves have been arrested around the world after bragging about their crimes on the site.

Some were arrested at the homes of their victims where they stayed longer to check their Facebook status.