Monday, October 19, 2009

Social Media Challenges Traditional Corporate Climate

Several retail stores advertise mainly in traditional forms of media like print, television and radio. The feeling consumers get about retail stores is drawn from their experience shopping at the store or how they perceive the radio, T.V. or print advertisement that was put out. Therefore, a retail company is easily able to control the centralized message sent out to the consumer.

However, today, more and more companies are turning to social media in order to build relationships with consumers. The article, “Zappos gets savvy with social media”, talks about how the online shoe store is beginning to use social media sites like Facebook and Twitter to reach out to consumers. They currently have 1.3 followers on Twitter and 21,000 fans on Facebook. Aaron Magness, director of new business at Zappos said the company is attempting to build relationships with consumers rather than sell products to consumers.

"We let our customers see our culture and decide if we are somebody they can relate with. It breaks down the barriers of consumer vs. company and becomes more about a consumer buying from a friend," Magness says.

In order to break down this barrier of consumer vs. company via social media, Zappos allows nearly 500 of its 1,400 employees Twitter about what they’re doing at work. In addition, the site collects all public mentions of Twitter, even the ones that aren’t positive. On Facebook, Zappos employees post videos of office humor, company picnics and employees at work.

Magness says that this genuine social media conversation is not controlled or inhibited by Zappos executives at all. The company currently enforces no consistent policy on what can be posted on social media and what can’t.

Some might feel this is a risky way to build authentic consumer relationships. For example, what prevents an irate employee from launching a public relations nightmare? According to Paul Gillin, founder of Paul Gillin Communications, companies must create a corporate environment that is fun and more open that the traditional cubicle style office.

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