The Role of Social Media in Business Communication

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  • 0:03 Social Media
  • 1:12 Cost Savings
  • 1:45 Customer Communication
  • 2:20 Helps Target Consumers
  • 3:16 Reviews and Customer Loyalty
  • 4:11 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Lombardo
Social media has played a growing role in company's business communication. Numerous affordable advantages create increased sales and customer loyalty through different platforms and word of mouth.

Social Media

Brianna Smartypants is an excellent cook. One day she was creating a new soup recipe and tried some secret ingredients that had been handed down from her relatives in Italy. Brianna quickly discovered that the ingredients would allow her to have a photographic memory. She could remember anything she read or saw. She never would have to study again in her life!

She quickly made the ingredients into a great tasting drink and decided she would market her new product as Einstein's Elixir. Brianna had one big problem. She had no money for marketing, advertising or promotion.

She decided to use social media to market her product and sell the new drink from her tiny hometown in Boston. Social media is a group of online communication options that allow users to participate, offer feedback, receive information and share ideas. Some examples are Twitter, LinkedIn, Facebook, Pinterest, Flickr, and Instagram. Brianna made a short list of how she would utilize social media to sell her new drink as part of her business communications plan.

Cost Savings

Brianna had to sell her Einstein's soda immediately to recoup her investment. She realized that social media would save money by giving her sales leads, generating traffic to her website and allowing her to promote her product daily. She created a Facebook business page, a Twitter profile, a website and an Instagram account. She used the sites to offer discounts, news and tips on her product. She spent no money and has received $200,000 in orders so far.

Customer Communication

Another huge benefit social media provides is the ability to have immediate customer communication. Brianna's social pages allow customers to ask questions, provide feedback and offer advice. For example, her Twitter profile @EinsteinElixer allows her to offer 24-hour customer service. When a customer tweets a question about the safety of giving her drink to kids, she can respond immediately. She also uses social media to communicate promotional messages and even daily deals on her drink.

Helps Target Consumers

Brianna also utilizes social media as part of her ongoing marketing research plan. It can help target consumers by giving insight into the needs and wants of her customers. Brianna studied her Facebook analytics report and discovered that most of her fans of the Facebook business page were located on the West Coast. She used the information to target specific retail outlets out West and was able to get some stores to stock her product. This helped her immensely since she is actually from Boston and had most of her delivery of her product on the East Coast.

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