Based on your reading of Chapters 13, 14, 15, & 16 of the text including the “Unit Four Closing Case Two” entitled Social Networking, discuss how social media sites can deliver competitive value as measured in terms of a C-Commerce balanced scorecard including ROI. Be sure to incorporate your personal experience and any learning regarding the Customer Experience Management lifecycle.
Social media has provided organizations with a new, cost-effective and efficient, method of building and delivering value. Before social media, corporations need to allocate a lot investment capital towards “physical” marketing (printed media, etc.) and towards customer service/management. Social media has reduced the required investment in marketing/consumer relations and at the same time increased the potential consumer reach of corporations. Corporations no longer have to go out and learn what consumers want because, through social media’s user created content, billions of consumers eagerly communicating their wants and needs.
In terms of the four balanced scorecard framework perspectives, social media can be leveraged as follows:
- From a learning and growth perspective, social media provides a new level of transparency and communication between corporations and consumers. From this perspective, the level of reach and real-time feedback that social media provides can help organization quickly react and adjust to consumer sentiment and the business environment.
- From an internal business process perspective, social media can be leveraged to foster collaboration and knowledge sharing (collective intelligence) between internal business partners. It could help build a sense of community and trust between the corporation and their employees.
- From a customer perspective, social media provides a direct line of communication between company and customer. Most social networks include modern real-time forms of communication like instant messaging applications, review and comment sections and even forums. These faster channels of communication and interaction can help organization quickly and proactively react to their customers’ needs.
- From a financial perspective, social media is very cost-effective. Companies can quickly and cost-effectively mine all the valuable user (customer) created content to help drive investment in key business functions; such as marketing campaigns, product development and quality assurance. This reduction in upfront costs, increases the potential ROI of projects or campaigns that leverage what social media has to offer.
Baltzan, P. (2015). Business Driven Technology (6th ed.). New York, NY: McGraw Hill Education.