Introduction
Anyone who is in doubt about the relevancy of social media needs look no further than the so-called Arab Spring, which began in Tunisia on December 17, 2010, before spreading across much of North Africa and the Middle East (Howard et al, 2011, p.2). A 2011 paper focusing on the revolutions that occurred in Tunisia and Egypt, noted that: “Twitter emerged as a key source for real-time logistical coordination, information and discussion among people, both within the MENA (the Middle East and North Africa) region and across the globe.” (Lotan et al, 2011, p.78)
The events in the MENA region show that people are engaging with social media, and statistics corroborate the story: In April 2016, Facebook – the world’s most popular social media platform – had in excess of 1.5 billion users. The next most popular, WhatsApp, an instant messaging service for mobile phones, had 1 billion. In fact, there are at least 20 social media platforms across the world, which had at least 100 million users in April 2016 (Statista, 2016a), putting the total number of social media users at over 2 billion people. To give further context to this statistic: only about 3 billion people were using the internet in 2014 (World Bank, 2014).
Businesses are alert to the potential of the medium. A 2015 article estimated that the total advertising spend that year on social media would be $20 billion (Economist, 2015). In the second quarter of 2016, Facebook reported advertising revenue growth of 63% (Reuters, 2016) before following up the news a few weeks later by announcing that it was paving the way for businesses to enter its WhatsApp messaging platform, which had hitherto been free of advertising (Kuchler, 2016).
By any standards, therefore, social media is relevant to both society and business. This paper is written against this backdrop. It aims to show how modern businesses interact with society through social media, whilst acknowledging that the relationship is constantly evolving. Two case studies will provide some real-life context to the discussion and conclusions will be drawn from the research, with some suggestions about future avenues for research.
An Overview of Social Media
A list of the world’s most popular social media platforms provides some insight into how the world is currently interacting online (see chart 1 below). The scope of social media platforms ranges from content-sharing platforms such as Facebook, to instant messaging and calling services such as WhatsApp and Viber, through to image-sharing platforms like Instagram and Tumblr.
Anyone who is in doubt about the relevancy of social media needs look no further than the so-called Arab Spring, which began in Tunisia on December 17, 2010, before spreading across much of North Africa and the Middle East (Howard et al, 2011, p.2). A 2011 paper focusing on the revolutions that occurred in Tunisia and Egypt, noted that: “Twitter emerged as a key source for real-time logistical coordination, information and discussion among people, both within the MENA (the Middle East and North Africa) region and across the globe.” (Lotan et al, 2011, p.78)
The events in the MENA region show that people are engaging with social media, and statistics corroborate the story: In April 2016, Facebook – the world’s most popular social media platform – had in excess of 1.5 billion users. The next most popular, WhatsApp, an instant messaging service for mobile phones, had 1 billion. In fact, there are at least 20 social media platforms across the world, which had at least 100 million users in April 2016 (Statista, 2016a), putting the total number of social media users at over 2 billion people. To give further context to this statistic: only about 3 billion people were using the internet in 2014 (World Bank, 2014).
Businesses are alert to the potential of the medium. A 2015 article estimated that the total advertising spend that year on social media would be $20 billion (Economist, 2015). In the second quarter of 2016, Facebook reported advertising revenue growth of 63% (Reuters, 2016) before following up the news a few weeks later by announcing that it was paving the way for businesses to enter its WhatsApp messaging platform, which had hitherto been free of advertising (Kuchler, 2016).
By any standards, therefore, social media is relevant to both society and business. This paper is written against this backdrop. It aims to show how modern businesses interact with society through social media, whilst acknowledging that the relationship is constantly evolving. Two case studies will provide some real-life context to the discussion and conclusions will be drawn from the research, with some suggestions about future avenues for research.
An Overview of Social Media
A list of the world’s most popular social media platforms provides some insight into how the world is currently interacting online (see chart 1 below). The scope of social media platforms ranges from content-sharing platforms such as Facebook, to instant messaging and calling services such as WhatsApp and Viber, through to image-sharing platforms like Instagram and Tumblr.
Platform
|
Global users (m)1
|
Year Founded2
|
Country of origin3
|
Facebook
|
1,590
|
2004
|
United States
|
WhatsApp
|
1,000
|
2009
|
United States
|
Facebook messenger
|
900
|
2015
|
United States
|
QQ
|
853
|
2002
|
China
|
WeChat
|
697
|
2011
|
China
|
QZone
|
640
|
2005
|
China
|
Tumblr
|
555
|
2007
|
United States
|
Instagram
|
400
|
2010
|
United States
|
Twitter
|
320
|
2006
|
United States
|
Baidu Tieba
|
300
|
2000
|
China
|
Skype
|
300
|
2003
|
Sweden/Estonia
|
Viber
|
249
|
2010
|
Israel
|
Sina Weibo
|
222
|
2009
|
China
|
LINE
|
215
|
2011
|
South Korea
|
Snapchat
|
200
|
2013
|
United States
|
YY
|
122
|
2005
|
China
|
VKontakte
|
100
|
2006
|
Russia
|
Pinterest
|
100
|
2010
|
United States
|
BBM
|
100
|
2005
|
Canada
|
LinkedIn
|
100
|
2002
|
United states
|
Telegram
|
100
|
2013
|
Russia
|
Source: 1Statista (2016a), 2,3Company websites
Further context can be given to the amount of users that each social branch of social media has by showing the number of minutes the average user spends on each of the platforms (see below). On this measure, Facebook is significantly more popular than any of its peers. However, having being founded in 2004, it is also one of the oldest members of the social media community. It says much about the phenomenon of social media that a company founded in 2004 is one of the oldest surviving.
Source: ComScore
Reflecting these statistics, in 2016, only 9 companies from the Fortune 500 – an annually compiled list by Fortune magazine of the 500 largest public companies in the United States – use no social media platforms at all (Barnes, Lecault and Holmes, 2016). Nonethelss, only 10% of CEOs of those same companies tweet and not one of them is active on Facebook (Montgomery, 2016). Four reasons are put for forward for this by the same author; namely: i) chief executives feeling unprepared to have a conversation with their clients, ii) chief executives may lack the time required for the fast-response nature of social media, iii) they may lack the required know-how as to where to make a comment and when, and iv) social media simply “isn’t in the DNA of CEOs yet.”
Alternatively, these statistics may reflect what Weinberg et al (2013) referred to when they acknowledged that although social media is undoubtedly on the rise, companies have yet to find a willingness to “cede some control, be more open, allow employees to devote more time for engaging with consumers, other employees and value-chain partners, and to invite consumers to more closely participate in, and perhaps drive, some critical value-creation processes, such as product development and customer service.” (Weinberg, 2013, p.307).
Looking at two firms in more detail, therefore, and how they interact with society through social media can inform the debate. In the following two case studies, the social media behaviour of two companies – JetBlue and Starbucks – is analysed, in particular, to see how these companies interact with society through this relatively new medium.
JetBlue Case Study: Customer Service through Social Media
One of the primary ways in which modern companies interact with society through social media is with customer service. According to a 2013 study by marketing firm J.D. Power (Tew and Troy, 2013), 67% of consumers have used a company’s social media channels for customer service. There is an inherent urgency in customer service on social media channels given how others can often see the dialogue between the business and the customer airing their complaint.
The U.S. airline JetBlue offers a good example of how companies can use customer service as a means of interacting with customers, rather than reacting to them. The company has over 2.4 million followers on Twitter, 1.1 million ‘likes’ on Facebook and 182,000 followers on Instagram. A cursory glance over comments on its Facebook and Twitter accounts shows that it promptly responds to customers’ queries and complaints (usually within two hours). Its Instagram account leads with: “Customer concerns? Visit bit.ly/JBspeakup,” in effect, actively encouraging its users to use its social media channels for customer service.
The company’s social media team search out people on social media platforms who mention their brand, by using relevant hashtags: a more active form of customer service than the traditional call centre format, where firms are reacting to the calls of aggrieved customers. They average about 10 minutes’ response time to each mention of their brand name on social channels. In addition, the social media team works around the clock: twenty-four hours a day, seven days a week – ensuring that the fast response time can be maintained (Keath, 2014).
The customer service culture on JetBlue’s social media channels does not adhere to the strict script-based format that many might associate with more traditional customer service channels. Instead, its social media customer service team is encouraged to adopt a friendly and sometimes creative or humorous tone. This creates the added benefit of both creating a story online (which users are more inclined to share) as well as diffusing a situation by “speaking the language of the customer.” (Keath, 2014).
Starbucks Case Study: Social media as a promotional tool
In May 2012, General Motors announced it was no longer going to advertise its products on Facebook, on the basis that it “wasn’t getting any discernible benefit from the spending” which amounted to $10 million annually. The move generated much public comment, with one media analyst reporting: “Facebook’s business model is weak because it does not create sufficient value for different groups of customers.” (Cohan, 2012).
A little under one year later, in April 2013, General Motors had begun advertising on Facebook again with its Chevrolet marque. The US Vice President of Marketing at Chevrolet explained the move thus: “Chevrolet is testing a number of mobile-advertising solutions, including Facebook, as part of its 'Find New Roads' campaign. Today, Chevrolet is launching an industry-first, ‘mobile-only’ pilot campaign for the Chevrolet Sonic that utilizes newly available targeting and measurement capabilities on Facebook.” (Delo and McCarthy, 2013).
The case of GM indicates that even in cases where companies might prefer to avoid marketing through social media, the ubiquity of Facebook and Twitter in contemporary society means that it’s difficult for companies to avoid social media altogether. On this basis, it’s becomes a logical next step to actively participate in social media marketing, rather than simply have a presence. The marketing campaigns of US coffee house chain Starbucks offer some insight into how companies engage with society through social media.
Starbucks’ Facebook page has 36 million likes, its Instagram account has 11 million followers and its Twitter account has almost 12 million followers. Elsewhere, it also maintains accounts on Pinterest, WeChat and Vkontakte. The scale of its audience gives it serious leverage in marketing campaigns on social media, which it has embraced with some vigour: For example, its Twitter account notes that it started in November 2006 and that since then, it has tweeted 75,000 times. Scanning through its tweets shows that many are advertising promotions, products or newly opened stores.
Its marketing campaigns on social media over the past few years have included a “behind the scenes” look at Starbucks, showing images from various stages of its value chain, to a so-called #TreatReceipt promotion which offered a discount on drinks to customers who came back to a store the same day with a receipt and introducing a competition for its social media followers to have a roast introduced in their city a month before it was launched nationwide (Moth, 2014).
Starbucks’ campaigns show that social media is being used as an interactive promotional tool. The company can gain real-time feedback through the number of ‘likes’ or comments. The number of followers it has also given its campaigns tremendous scalability, allowing it to reach tens of millions of customers with each campaign.
Conclusions
The sheer numbers of people in society that now engage in some form of social media have made a social media presence unavoidable for many companies. Companies have to follow societal trends to stay relevant and it is increasingly the case that society is on social media. Learning how to interact with their customers through various channels, therefore, is imperative.
It seems that companies are now interacting with society more than ever. In a way, they have to: the internet gives an immediacy that never existed before. This has dangerous consequences when negative commentary is being posted about a company: better to have the lightning rod of a Twitter page, where the complaint can be dealt with quickly, rather than leaving it to fester elsewhere online.
Social media has also given companies’ marketing campaigns a new dimension. The interactive nature of social media means that companies are not only finding out which promotions work on a real-time basis through online feedback but also generating marketing ideas from conversations with customers as they go. An example of this is provided by the MyStarbucksIdea page, where customers are encouraged to generate ideas for Starbucks.
What’s notable, both from the academic literature and looking at contemporary companies is engaging in social media, is that it remains a somewhat experimental field. The case of GM shows that there’s a ‘should we or shouldn’t we?’ question sometimes being asked by companies about social media. However, as case studies of more and more companies which have successfully interacted with massive numbers of customers emerge, the likelihood is that other companies will see that social media is quickly becoming the most effective way to interact with society.
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