Selling via social media brings inconsistency dangers

Selling via social media brings inconsistency dangers
By Mark Thorpe, UK managing director for Stibo Systems

Published: March 15 2010 11:44 | Last updated: March 15 2010 11:44

Social media has caused an explosion in new ways to market and sell products, bringing with it complexities in managing product information – and new ways for everything to go wrong.

Many businesses have been quick to use Facebook, YouTube and bloggers for their huge potential as marketing channels, helping to increase online sales by targeting a large user group.

But organisations should be aware of the dangers. Keeping data consistent between existing channels such as catalogues, stores and websites can already cause problems, so how do they begin to deal with Facebook, Twitter and YouTube as well?

Making the most of social media

Dell, for example, seems to be getting it right, having made more than $3m in sales via Twitter alone. Dell regularly tweets its latest promotions to consumers that follow the brand online.

This is a great way of conducting “passive” sales, after consumers have already expressed an interest in the brand, decided to engage with it, and are therefore happy to be targeted with special offers.

Another good example is GEMaffair.com, a US retailer which recently held a contest on Twitter asking followers to enter by re-tweeting [forwarding, or re-broadcasting] a promotional message, which contained a coupon. A viral bonanza of re-tweets ensued.

One lucky tweeter won a $100 jewellery set. The online jeweller received 18 orders that day associated with the contest that more than covered its costs.

The dangers of social media marketing

However, as well as promoting benefits to consumers, social networks also exacerbate company mistakes by spreading news fast. Connected users can update anywhere, anytime, and a negative story can spread at the touch of a button.

Best Buy, for example, mistakenly advertised a Samsung flat screen TV for less than $10 back in August. Word spread through the online retail community via social media at an alarming rate, leaving Best Buy trying to limit the damage.

Multi-channel mix

Shopping habits are adapting to the new channels available: many consumers see a product in a store and then buy it later – and sometimes cheaper – online. The opposite is also true when shoppers see something online, which encourages them to make their way to the store to see it in “real life” before parting with their cash.

With increasing numbers of people fluctuating between online, catalogue and in-store shopping, comes an increase in the complex task of keeping product data consistent across the board.

There is no point tweeting a link to a product, or posting on a fan group on Facebook, if that same product is available at a lower price in a store or via a catalogue.

How to ensure consistent product information

Organisations are becoming more strategic in their data management processes. Many are setting up data governance teams to interact with all departments, which are led by business staff rather than those in IT.

This is a positive step as it is only when senior business people start to take ownership for master data issues that a genuine improvement in the field will occur.

Business leaders are recognising the importance of centralising data and following a standardised process. Putting product information in one place, where all departments can easily access it, is essential and saves time and money.

Final thoughts

It is important for organisations to get the basics right, before launching themselves into the world of social media.

Social media is always evolving, but its potential for driving sales will remain. Businesses need to be 100 per cent on the mark when it comes to what they are saying about their products – wherever they happen to be saying it.
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