Looking for a business model in Social Media

Currently almost all companies are in social media, why? Because they “should” be there, even there are a lot of individuals in social media because they feel a social pressing.

And nowadays companies have results of their work because they have a big number of followers… but, and what else? At least we know social media isn’t a temporary phenomenon. Is only social media a tool for to increase notoriety o really you can make business? Depends…

Depending of enterprise sector, type of advertising campaigns in Internet, objectives, etc., there are companies what social media are be able a good tool of business or notoriety.

Yes, it’s possible to have a business model with profitability in social media, but no mistake: social media isn’t a miraculous new channel.

Social media maybe is a good channel for btc in some cases, it’s a good tool for notoriety, it’s an essential tool in marketing mix campaigns, and sometimes in some media, it maybe a good btb channel. It’s the best data base of individuals, but if you want results, you don’t use it for advertising in direct marketing, because it’s contrary to its philosophy, although you can make segmentations and put advertising. The answer is on marketing mix, because social media is a very effective tool to combine with others tools of marketing. Really, social media isn’t so different of relational marketing, but with more big size and technology.

The development of communication runs quickly, the demand of communications is highest than our ability to assimilate, that’s why video will be the future success channel of communication, because to see and hear is easier than read. We should know it and all continuous changes, and we should to adapt our marketing strategy and business strategy according to it.

So, we don’t look for a new business model in social media, we should look for a new business model according changes in society. Business model should be as flexible as changes in society.

A change in business strategy

Recently, in the last On Line Marketing Congress, we spoken about how has changed some budgets and there have been some new developments in video design and productions.

Some years ago, there have been expensive budgets for TV commercials and video clips, with very expensive castings including travels in first category, the best hotels, etc. And now we can do the same with a very lower budget and the same results… but removing unnecessary luxuries. So…we are going to roll out a new system…because we have to get media coverage, it’s necessary while demand prefer reception of information through the video, and new generations are “video consumer ”.

A teacher university and video productor said that some pupils has a real professional study in their homes (all about 2000-3000€), and, living with their parents, they have all time to investigate special visual effects with amazing results.

So, currently big companies don’t need big budgets for their TV and video communications, even this is the scope of medium and little companies, being Internet a common competition field, and the market is increasingly global.

In the other hand, there are some professional occupations with less work, like makeups and the big part of production team. Technological change is moving at a fast pace and we can’t let our guard down and people are demanding more nowadays. So, current video productions business offer the same performance features at half the price. Strategic planning isn’t a simple process, but all companies, regardless of the size, should include video and social media in it.

CRM and Customer Service

Today it’s not enough to have a CRM, we should have good segmentations and to have an excellent customer service. Why? Because, could we say we have a good awareness of our CRM? Do we do really good segmentations when we ask to our CRM? We can think in women who lives in Madrid and between 40 and 55 years old with high income, but… is this a complete segmentation for today? In this segment we can find to Ana Botella and Alaska, and I think they are two different profiles. So, we should give a more step in our CRM awareness.

This is according with customer service, because they should know our target and segmentations detailed, because a customer service in the highest level is a guarantee of loyalty of customers. Customer service has to be preparing in different channels, like social media, and they should be compromise with the objective of the company and their job.

We are speaking about basic elements but many times we should to check it, because the excellent way is in little details and assurance in basics process.

Extraordinary leaders do more than just manage, they sign the strategy optimizing human performance, doing the team thinking, built commitment, creativity and capability to execute a successful strategy feeling part of the company, and for that it’s necessary to transmit all information about tools and objectives.

For me customer service is the most important part in an organization, because it’s the first line and, if we don’t act right maybe will be the last one. Clients and customers deserve more value, and we are being able to give it to them.

Reinventarse

¿En qué situación se encuentran actualmente las empresas españolas? Estamos en un entorno en el que nuestro país por sí solo no podrá mejorar económicamente hasta que el Banco Central Europeo se comprometa a mantener la prima de riesgo por debajo de los 300 puntos. Pero es que realmente no puede funcionar una unión económica y monetaria con primas de riesgo superando los 500 puntos, actualmente Europa ni crece ni genera empleo. Recordemos que la prima de riesgo es el sobreprecio que paga un país para financiarse en los mercados comparado con un país de referencia por su seguridad (en nuestro caso Alemania), es decir, mide la confianza de los inversores en la solvencia de la economía de un país. Pero la realidad es que la economía española necesita tiempo y el apoyo de Europa para corregir sus desequilibrios, y está mejorando su productividad y competitividad, a la vez que el sistema financiero y las Administraciones Públicas se sanean. El marketing no puede estar ajeno a este entorno y sólo fijarse en sus reducidos presupuestos. ¿Por qué?

Porque la economía se basa en múltiples variables no matemáticas, incluso dudosamente existe un modelo econométrico fiable. Hay valores como el optimismo y la confianza que pueden generar bruscos cambios en las reacciones de los mercados de consumo, y por ello en las previsiones de ventas de una empresa. Ejemplos como la oleada de optimismo generada por la victoria de la Eurocopa pueden llegar a influir en el comportamiento de una parte importante de la demanda.

Elementos que actualmente hay que tener en el cuadro de mando y decisión de un departamento de marketing son las tendencias y noticias económicas que se desprenden de numerosas fuentes de información. Datos como la mejora de la balanza tecnológica española en el primer trimestre del año, nos indican que las exportaciones y royalties en concepto de patentes es una realidad que rompe con el viejo concepto de que sólo importamos tecnología (aunque es cierto que seguimos importando más de lo que exportamos). Lo que indica que quizás desde marketing debamos rediseñar los negocios y apuntar a nuevos mercados y productos, y no sólo a nuevos canales de publicidad y métodos de promoción.

Las empresas hoy tienen que resolver sus problemas a corto plazo, pero sería muy peligroso no mirar a un medio y largo plazo, y eso significa invertir y seguir promoviendo una reinvención del modelo de producción y de distribución. Es un error seguir insistiendo en un mercado, agotado por los bajos índices de consumo, con un producto igual al que ya teníamos y con riesgo de entrar en una guerra de precios. Eso es una estrategia de corto plazo abocada al fracaso o a una prolongación de la agonía. Los sectores se pueden reinventar y encontrar oportunidades en otros mercados y/o en el mismo, pero con otros nuevos modelos de negocio. El principal problema es que la mayoría de las empresas sólo reaccionan cuando ya han entrado en pérdidas importantes, y eso es un freno para la inversión en planes de acción.

No nos engañemos, esta crisis no pasará y volveremos al estado anterior. De aquí saldrán nuevas reorganizaciones y modelos productivos y de consumo.

Let my people go surfing

Yvon Chouinard is more than a businessman. He has demonstrated that it’s possible to create a successful business and it aligns with ethical ideas. Therefore it’s possible other way, since no excuses. You should think about what are the main challenges you wish to deal with? He is a legendary climber and founder of Patagonia Inc., but the most important it’s to keep his environmentalist ideas in business management and with profitability… and it’s possible.

He believes that businesses are to blame for a majority of the destruction of nature but simultaneously qualifies that businesses can enact positive social and environmental change. What about powerful brands like Nike, Apple, etc.? They could change a big part of the world, they only will need restructuration production process and to change the focus of their marketing. But like Quevedo said: “Mighty lord is Mr. Money”. An absolute triumph: failing without despair, succeeding without arrogance. Really, currently it’s difficult in businessman to do it, with the pressing by market shares…

The best of Yvon Chouinard’s theory is that it’s true, and he has demonstrated it with a profitability business. He says: “Every time we do the right thing, we increase our profits significantly. Make the best product, cause no unnecessary harm”.

Marketing should learn a lot of examples like this, and it should try to change mentality in businessmen. Patagonia is an example of how a company run by a person with strong beliefs can use its products and market them to spread those beliefs among the public.

Maybe it’s to advanced way in the idea’s ways, but I think we should apply it, since right now.