Sunday, February 27, 2011

Understand the Groundswell

Charlene Li and Josh Bernoff's book, Groundswell, explains and teaches readers about the importance of social technologies. The text describes a number of reasons, and ways, that companies can use social networking sites to understand their consumers, and increase sales.




Chapters 4-6 focus on the "groundwell" and how to tap into it. In order to understand what the authors mean by the groundswell, we must define it. In chapter 1 of the book, the author says, 


"[the groundswell] is a social trend in which people use technologies to get the things they need from each other, rather than from a traditional institution like corporations" (Bernoff, Li 9). 


The text goes on to explain that the groundswell has existed for years. On eBay you purchase from people, through Craigslist you interact directly with people over the internet, and many other actions we partake in are influenced by these large social technologies.


In order for a company to be successful, they must have a good understanding and application, of the groundswell in their everyday business tactics. Li and Bernoff developed a planning process for tapping into the groundswell. Chapter 4 of the book covered POST: people, objectives, strategy, and technology. As the book says, it is "the foundation of groundswell thinking" (Bernoff, Li 67). 






Let's break this acronym down to understand it's importance...


People: What are your customers ready for? It is important to understand your audience before you act on it. 


Objectives: What are the goals? Do you want to sell a product? Do you want to advertise to your customers? Having a set plan is important to ensure the efficiency of your sales.


Strategy: How do you want the relationship with your customers to change? This step is important in understand how you will achieve your goals.


Lastly, technology: What applications and tools will you use to achieve your goals? Making sure you choose the right tools and networks that work best for your company will help ensure productivity. 


In addition to the POST tactic, chapter 5 of the text goes on to explain another important step in understanding the groundswell: listening. 




One thing that stuck out to me like a sore thumb, was when the authors said, "your brand is what your customers say it is." This is a HUGE point that I think many companies are still missing. In our technologically consumed society, advertisers need to LISTEN to consumers in order to adequately reach their audience. 


The first week of school we discussed the top-down method, where the power used to lie in advertisers. Now, as the internet opens a whole new type of communication, the power of influence lies in the consumers - thus creating a down-up model, where the consumers are in control. 


Companies use market research to better understand their consumers. Surveys, and syndicated research is a great way to get opinions of people. However, the internet now offers many of those opinions right at your finger tips. 


Twitter is an amazing tool to use if you want to tap into a market. Being able to type in anything in the search box and see who is talking about it, and what they are saying, helps companies get more personal with their consumers. Twitter's ability to allow open communication with followers/consumers also allows people to feel more connected to the company and, as a result, more attracted to the company in the future. Happy consumers are more likely to come back after great service and attention.


Li and Bernoff offer two listening techniques for companies. 


A great concept discussed in chapter 6 talks about a "marketing funnel." The funnel is a model for how consumers move from awareness of a product, to purchase, then to loyalty. 




Groundswell talks about how consumers in the middle of the funnel are heavily influences by blogs, reviews, and other social technologies. According to the text, 83% of people trusted recommendations from friends or family. More than half trusted online reviews from strangers. What does all of this information say about consumers? They are influenced by one another, not the company (as discussed earlier).


Just a few days ago, I decided where I was going to get my haircut based solely off online reviews. Internet communication is unavoidable. It is the fastest way to get, and spread, communication. 


Overall, Groundswell offers a fresh, new outlook on marketing and the effect of social technologies. Social networks are changing every dynamic of the public relations and marketing industry. Now, we have the ability to reach consumers on a very personal level through social networks. By doing so, we can better adjust our advertisements to fit THEIR wants and needs. Internet reviews allow companies to see where people want change. By engaging in this type of internet communication, it allows for a "win-win" by both the consumer and the company. Social media is key. Those who underestimate social media networking power have probably already been a victim of it and don't even know it. 

No comments:

Post a Comment