If business want to stay afloat in the technology age, they must adjust to the current trend. A large part of the current trend is social networking. Social networking falls under the definition of Enterprise 2.0 because it is “integrating the social and collaborative tools of Web 2.0 into the office environment.” [1] Many companies that are not too technologically savvy are hiring younger individuals to he;[ because the younger generation are basically experts in social media. The most popular social media site, Facebook is used more and more every day to allow companies to connect to their clientele in a business to consumer (B2C) scenario.
Among many ways businesses connect with consumers on Facebook, two stand out the most to me, Facebook gaming, and Facebook fan pages.
To consumers Facebook games are a great way to pass the time, but what many do not realize is that it is also a huge business. In early July, Electronic Arts “agreed to buy PopCap for at least $750 million. PopCap makes popular games such as "Bejeweled" and "Plants vs. Zombies."” [2] In games such as Plant vs. Zombies, the user is able to make in-game purchases to help improve their score. These in-game purchases offer an instant gratification that people with new aged short term attention spans need to be able to stay hooked.
The second scenario is more so connected to hiring young individuals to help out. Fan pages offer people an ability to show their friends on Facebook what they are into. For the companies, these fan pages are actually a great way to get free advertising. If my best friend said that they like the restaurant “Big Jims” I get a notification when they become a fan of it. The next time I decide to eat pizza, I may remember that my friend likes that place so I may too. Many times these fan pages even offer contests. After 200 new fans come aboard because of a contest, the company will only have to shell out the money for 1 prize. Considering their customer base just grew by 200 individuals, I am sure they wouldn't mind the minimal financial loss. While many websites offer examples and ideas for Facebook contests I came across a contest that Papa Johns made up asking fans to create a new Pizza for their menu. [3] This idea not only sounds like fun for the user, it gives the company a brilliant insite into the minds of their customers.
In is impossible to say if social networking will stay as hot as it is now, but the fact is, Facebook is a huge money maker right now and a company able to use it to their advantage has a huge lead in gaining new customers over any competitor that doesn't know how to take advantage of the medium.
[1] What is Enterprise 2.0? Enterprise 2.0 Explained. http://webtrends.about.com/od/office20/a/enterprise-20.htm
[2] Earnings Preview: Electronic Arts to report 1Q – 7/25/2011 - http://www.msnbc.msn.com/id/43877861/ns/business-personal_finance/
[3] Facebook Contest Ideas to Grow Your Fan Pages – May 24 2010 - http://buzzmedia.com.my/article/facebook-contest-ideas
Good format and information. I especially appreciated it because besides the basics, I am not that familair with Facebook, and other social networking sites. It is surely a benefit to those who have "grown up with it". I agree with your assessment of the need for instant gratification due to a short attention span. The results of integration for these newer tools have shown obvious results in terms of sales and promotion. Good job, thanks.
ReplyDeleteGlad that you made a post about social networking. I knew how big fan pages were becoming. Everyone from athletes to the local coffee shop has a fan page now on facebook and they really do help out the businesses. However, I had no clue about the facebook games and how big of an impact they made. Yes, I have seen them, but had no clue companies were being bought for $750 mil. I personally don't play them because I can get addicted and therefore procrastinate, which facebook has you doing anyway. Very interesting post for me to read since I didn't know a lot about the games. Thanks!
ReplyDeleteIt's amazing how Facebook has gone from simple social networking to a business strategy. Facebook is no longer just a means for personal social networking and connection but a way for businesses to build customer relationships as well as keep up with the current competition. An article on entrepreneur.com lists 10 ways in which a Facebook fan page can help a business. I appreciated reading this post because I really never understood the business aspect of social networks. I knew there must be benefits to businesses or they wouldn't waste time or money on fan pages but I didn't know the extent of those benefits until now.
ReplyDeletehttp://www.entrepreneur.com/microsites/websmarts/article204492.html