Social media use by businesses

Social media use by businesses includes a range of applications. Although social media accessed via desktop computers offer a variety of opportunities for companies in a wide range of business sectors, mobile social media, which users can access when they are "on the go" via tablet computers or smartphones, benefit companies because of the location- and time-sensitive awareness of their users. Mobile social media tools can be used for marketing research, communication, sales promotions/discounts, informal employee learning/organizational development, relationship development/loyalty programs, and e-commerce.Marketing research: Mobile social media applications provide companies data about offline consumer movements at a level of detail that was previously accessible to online companies only. These applications allow any business to know the exact time a customer who uses social media entered one of its locations, as well as know the social media comments made during the visit. Communication: Mobile social media communication takes two forms: company-to-consumer and user-generated content. For example, McDonald's offered $5 and $10 gift-cards to 100 users randomly selected among those checking in at one of its restaurants. This promotion increased check-ins by 33%, resulted in over 50 articles and blog posts, and prompted several hundred thousand news feeds and Twitter messages. Sales promotions and discounts: Although customers have had to use printed coupons in the past, mobile social media allows companies to tailor promotions to specific users at specific times. For example, when launching its California-Cancun service, Virgin America offered users who checked in through Loopt at one of three designated taco trucks in San Francisco or Los Angeles between 11 a.m. and 3 p.m. on 31 August 2010, two tacos for $1 and two flights to Cancun or Cabo for the price of one. This special promotion was only available to people who were at a certain location at a certain time. Relationship development and loyalty programs: In order to increase long-term relationships with customers, companies can develop loyalty programs that allow customers who check-in via social media regularly at a location to earn discounts or perks. For example, American Eagle Outfitters remunerates such customers with a tiered 10%, 15%, or 20% discount on their total purchase. Informal employee learning/organizational development is facilitated by social media. Technologies such as blogs, wiki pages, web forums, social networks and other social media act as technology enhanced learning (TEL) tools, and their users perceive change in organizational structure, culture and knowledge management. The prerequisite for the successful use of social media are motivated employees who want to use the new technologies. It is central for companies to understand the factors that determine the willingness to use social media. Customer service and support: A company can gain cost savings and increase revenue and customer satisfaction by using social media platforms in customer service and support. By using social media tools, company's have easy and widescale contact to its customers and simultaneously increase their brand knowledge.E-commerce: Social media sites are increasingly implementing marketing-friendly strategies, creating platforms that are mutually beneficial for users, businesses, and the networks themselves in the popularity and accessibility of e-commerce, or online purchases. The user who posts their comments about a company's product or service benefits because they are able to share their views with their online friends and acquaintances. The company benefits because it obtains insight about how their product or service is viewed by consumers. Mobile social media applications such as Amazon.com and Pinterest have started to influence an upward trend in the popularity and accessibility of e-commerce.

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