How Does Social Media Influence A Business's Success

1130 Words 5 Pages
Evans (2010) quotes Roger Katz, CEO at Friend2Friend of Palo Alto, California and Barcelona as saying, “What’s so appealing about social media is its power to reach out to not just one consumer at a time, but a huge network of friends through the open graph. Businesses must learn to do this or risk losing their connection with consumers altogether” (p.8). Businesses can now use digital media to market promotions as an alternative to using newspapers and TV or radio commercials. This is a huge step in the business industry and can have a significant impact on a business’s success; however, most businesses are not aware of just how much of an impact it can have. Social media can greatly influence a business’s success in many ways. Social media …show more content…
391). Customer reviews are one of the ways that both the consumer and the business benefit. The “electronic word of mouth” produced from customer reviews allow customers to be able to review products and services online (Hajli, 2014, p. 391). Businesses can see the reviews and are able to improve the customer’s experience. As of 2014, Amazon, a popular shopping website, has over 10 million reviews available for their customers to view (Hajli, 2014, p. 391). It is also theorized that businesses will focus on online communities through social media to attract more customers, and in turn, produce a better customer relationship management system that would greatly improve customer service (Hajli, 2014, p. 389-390). Online communities allow customers to be able to share information about different products or services, and this also allows other customers to be able to read what they had to say about the product or service (Hajli, 2014, p. 391). Research shows that customers would rather read a review from another customer than the product information section (Hajli, 2014, p. 391). Surveys show that 78 percent of customers trust another person’s review, while only 14% trust the company’s direct advertising (Svatosová, …show more content…
The new market winners will be the companies that excel at identifying and engaging with their customers’ influencers across the Social Web” (p. 9). Paul is correct. Businesses must learn how to adapt to, and how to use social media and the web to their advantage. It may be difficult for businesses to adjust at first, but with the right steps, any business can learn how to use social media to be successful. Davidson (2014), interviewed Harvard professor Mikolaj Piskorski, who researched social media and how it helped businesses develop (p.40). Davidson (2014) quotes Piskorski as saying:
It was very interesting to see that the more successful companies were keeping their success quiet - they did not want to disclose specific figures that would document their success with social strategy. But if you look at the publicly available figures you saw significant revenue growth without commensurate growth in marketing expense, so it was very clear that they were making money from their social networking activities. They just did not want others to imitate them (p.41).
Successful businesses that use social media have a more personal relationship with their customers, better customer service by using customer reviews, and reach a much larger audience than those who don’t use social

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