The growing presence of the social media offers a strong business opportunity to many companies in the West to invest time and capital in this medium. Over the past one year, most of the Fortune-1000 companies dedicated personnel at the senior management level primarily to look at social media. Companies are actively listening to their customers and responding to them in the shortest possible time, which is enhancing customer loyalty and experience.
One-to-many and many-to-many. Marketing is undergoing a significant change through the development of social media. A print or TV commercial was typically a one-to-many model, which made it difficult for companies to give feedback/solve queries in case of customer dissatisfaction. However, through social media, companies can respond to individual customers as quickly as possible.
Ability to reach a wider audience inexpensively. The cost of building a marketing campaign is probably significantly lower through this medium than other media. The ability to draw customers to this page is significantly higher than some traditional media like television and print, which makes a strong case for companies to build strategies through social media.
Too early to understand returns on these investments. Understanding RoI is not ideal at this stage of the cycle as the use of the medium is still evolving and companies are primarily listening to their customers and building several strategies to reach out to this segment.