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With the advent of social media, consumers are rapidly adopting social networking sites, engaging in micro-blogging, and
downloading applications for smartphones and computer
tablets to enhance their social lives and promote sharing and
communication with friends and family. Beyond simply using
social media technology for updating pictures and posting
status updates, consumers and members of society in general have found that social media applications can actually
empower them when considering the flow of information.
This is substantively important considering that it has been
estimated that a weeks worth of reading the New York Times
contains more information than a person was likely to come
across in a lifetime in the 1800s (Richardson 2010).
At the organizational level, however, firms have been
slower to adopt these technologies but are quickly seeing the
potential value in their use. Witnessing the power of social
media applications at the consumer level, many marketers have
embraced the ability of these tools to spread their message.
For example, Ford Motor Company recently employed social
media to promote the release of their new model Ford Focus.
We selected 40 Social Media practitioners and gave them
James Mick Andzulis (MBA, Villanova University), Ph.D. student, Department of Management and Marketing, University of
Alabama, Tuscaloosa, AL, jmandzulis@crimson.ua.edu.
Nikolaos G. Panagopoulos (Ph.D., Athens University of Economics and Business), Assistant Professor of Marketing, Department of
Marketing and Communication, Athens University of Economics
and Business, Athens, Greece, npanag@aueb.gr.
Adam Rapp (Ph.D., University of Connecticut), Associate Professor
of Marketing, Department of Management and Marketing, University of Alabama, Tuscaloosa, AL, arapp@cba.ua.edu.
Shifting Paradigms
The only thing that is constant is change. It is indisputable
that MySpace created celebrities and altered the entertainment business, from music to movies. However, it was not
until Facebook displaced MySpace and began uniting tens
of millions of people around the world that most industries
recognized the potential for a more intimate relationship
with customers was (perhaps) just a few mouse clicks away.
The same questions about passive versus active presence faced
by business a decade ago are surfacing again as companies
acknowledge the role that Facebook, Twitter, and Chatter,
to name just a few, might play going forward as customers
demand almost instant satisfaction in their relationships and
contact with those with whom they choose to do business.
With increasing customer expectations, customers want a
forum to voice concerns (Marketo 2010). They also want a
mechanism to be rewarded for their loyalty to a brand or business, and demand special offers not available to the general
public or the business down the street. Customers also want
to be educated on the products and services that are offered,
as well as when, why, and how they might be changing.
With the proliferation of social media, it would seem
that the technology has the potential to dramatically influence a business or even an industry as technology did in the
Internet age. It is not simply enough to task a marketing or
sales employee with the job of creating a Facebook page,
tweeting on behalf of the company, or establishing a forum
on Salesforce.com. Social media should not be thought of as
simply another channel, another means by which to interact
with the customer, or another tool by which to manage brand
and firm reputation but, rather, all of those things (and likely
many more) simultaneously.
Internet and Social Media Comparison
If we do not learn from the past, we are forced to repeat it. It is not
difficult to draw analogies between the dawn of the Internet
and the nexus of todays push for social media adoption by big
and small business alike. What is decidedly unclear, however,
is whether the Y2K-age clamor by business to establish any
Internet presence, with the resultant life cycle adoption from
bricks-and-mortar to bricks-and-clicks, begins or simply ends
with a nascent Facebook and Twitter presence as companies
ask fans to like or follow them, or with a transformative
strategy that affects business-to-consumer (B2C) and businessto-business (B2B) commerce at its core. With this in mind,
this paper seeks to advance the collective knowledge base from
a series of disjointed practitioner tactics and guides, to instead
posit a strategy for social media adoption at every step of the
sales process, and to formally suggest who in the company
Figure 1
Process Evolution of Social Media in Sales
rightfully owns social media and its associated implementation across all channels.
We argue that using current social media applications must
be viewed as a living, dynamic process in the firm. It is a strategy that will require substantial commitment and continuous
monitoring. In fact, parallels to the adoption of the Internet by
companies just over a decade ago can easily be drawn. Much
in the same way that companies entered the Internet age with
a simple, one-way (and often just one page) Internet presence
years ago, they must now realize that social media is a tool,
strategy, or way of doing business that will evolve through its
own life cycle that has yet to be written. An individual would
be hard-pressed to find a company that still uses the same
Internet page or adheres to the same Internet or ecommerce
strategy it adopted circa 2000. Although Darwin was able to
propose just a theory of evolution, it is essentially proven fact
when it comes to ecommerce, and adoption of the Internet,
that there is a life cycle through which businesses, big and
small, will all eventually pass. For example, Chris McCann
(2011), president of 1800Flowers.com, recently argued
that social commerce is in fact the fourth wave of business,
the logical next step in the evolution of online and Internet
business. We believe this same process of evolution is also true
within the context of social media itself. Figure1 depicts our
thoughts on how this process might evolve.
The earliest Web sites, as mentioned above, were primarily
informational. They provided little opportunity for two-way
communication, perhaps at best providing a mailing address,
email, or phone number for any further contact that might
be required. They existed because prevailing thought at the
time told firms they must be on the Internet, even if the
business case as to why had yet to be fully made. In the same
way, some companies today will decide that social media
means creating a YouTube channel, or perhaps a LinkedIn or
Facebook page simply for the purpose of having a social media
needs and more, but who currently owns this function, and
who should?
After identifying the proper social media for a firms initial
foray into social commerce, it is imperative to include all functions of the business in establishing protocols for how it can
and will be used to facilitate business. As mentioned earlier,
social media cannot be a disjointed, or nonintegrated, tactic
employed by one part of the business with no input from,
or impact on, other elements of the firm. Social media will
change the way business is done and require divisional and
functional collaboration because, for all practical purposes, it
may likely become the most customer-facing part of a business
and, therefore, customers will demand satisfaction, attention,
service, and problem resolution in regard to myriad issues from
this one new point of contact. If they get it, the customers will
become advocates and share their positive experiences in that
forum. However, if they do not, they may use the same social
media or others to damage the brand. Clearly, the implications
of social media are paramount to the health and reputation
of the firm. Social media has the potential to make or break a
brand: to complement or enhance the existing campaigns that
may have preceded social media adoption by decades or even
in some cases, such as Johnson& Johnson, a century or more
(Ploof 2009), or to destroy the brand almost overnight.
Thus, social media will require not only the buyin from
all parts of an organization but a real-time commitment of
resources to continue to foster the engagement, collaboration,
and brand development efforts that it hopes to nurture. In light
of this, there may not always be a clear answer to the question
of which organizational unit should maintain ownership of the
social media function. Social media should be owned by the
functions of the firm that know its customers bestsales and
marketing. However, while some of the activities that relate
to social media usage are specific to marketing (e.g., brand
building, advertising messages, and market research), others
are specific to sales (e.g., relationship management and other
boundary-spanner roles). Accordingly, an integrative ownership structure that enables marketing or sales to own only
those aspects of social media that are directly related to each
functions responsibility is warranted. This approach aligns
with prior literature demonstrating that sales and marketing
perform different activities over different key issues (Homburg, Workman, and Krohmer 1999). However, corporate
communications and public relations departments also have
established relationships, analytics, knowledge, and expertise
in client interaction and consumer communications, so their
roles are also essential and should be formalized. Although the
ownership structure of social media is a complex issue, what
is clear is that the adoption, implementation, and integration
will require dedicated human resources and management to be
assigned to the effort and, in the event of a crisis, the potential
for 24/7 real-time interaction.
1/2/4
Knowledge gathering
Prospecting
Lead generation
Establishing credibility
Facebook promotions inviting participation in new product testing (ChickfilA), or sharing stories about community involvement and fun activities
that build brand.
Gaining attention
Rapport building
Needs Discovery
Questioning
Creating an app to solicit customer product and service ideas (My Starbucks
Idea).
Listening
Understanding motives
Presentation
Prescribing a solution
Close
Facebook or Twitter to drive clients to sales channels. Chatter to work oneon-one to resolve deal inhibitors. Blogs or LinkedIn to address issues raised
by competitors or unhappy clients.
Overcoming objections
Negotiation
Social Media
Categories*
Communication
Gaining referrals
1/2/4
1/2/3/4
1/2/3/4
* Categories stem from the typology developed by Kaplan and Haenlein (2010): 1=Collaborative projects: Collaborative projects enable the joint and
simultaneous creation of content by many end users. 2=Blogs: Blogs are special types of Web sites that usually display date-stamped entries in reverse
chronological order. 3=Content communities: The main objective of content communities is the sharing of media content between users. 4= Social
networking sites: Social networking sites are applications that enable users to connect by creating personal information profiles, inviting friends and
colleagues to have access to those profiles, and sending e-mails and instant messages between each other. 5=Virtual game worlds: Virtual worlds are platforms that replicate a three-dimensional environment in which users can appear in the form of personalized avatars and interact with each other as they
would in real life. 6=Virtual social worlds: The second group of virtual worlds, often referred to as virtual social worlds, allows inhabitants to choose
their behavior more freely and essentially live a virtual life similar to their real life.
The advantage is that the contact can be as passive or as active as the customer or business deems appropriate. Social
media allows a firm to build trust in a nonintrusive way, by
meeting the little needs that a customer might express in a
timely manner, without the perception of a hard sell. Sharing
links, responding to comments, or fostering debate through
online polls allows the customer to optin to the discussion
as necessary, but allows the company to build its reputation
for responsiveness and caring; essentially to bolster its reputation and brand.
Needs Discovery
Once the salesperson has successfully started the sales interaction, he or she needs to uncover the specific needs and wants
of the prospect through effective questioning, listen carefully
to question responses to identify latent needs, and understand
the prospects motivation. On the surface, it may seem that because needs discovery is such a dynamic and engaging process,
social media may not be useful. Realistically, effective social
media may actually help to reduce the amount of questioning necessary to understand the specific needs of a customer.
While many sales professionals realize that price, quality, and
service are always primary concerns across customers, there
are more than likely other important concerns as well. It is
possible that social media that enables customers or prospects
to post concerns or questions to a salesperson or marketing
group will allow a response to be posted, thereby alleviating
similar concerns of future customers.
This portion of the sales funnel, when coupled with social
media, allows for collective learning. In some cases, customers
will discover not only their real needs, but the answers to questions they did not even know they might have, as interaction
with other customers and sales create a more enlightened buyer
and a better overall relationship. It is not unlike a car buyer
who is accompanied by a trusted mechanic or friend to help
evaluate options before making the decision to purchase a new
brand or type of vehicle. Sometimes a buyer does not even
know what he or she does not know until told. Social media
expedites and enhances the process in ways that were only
possible with numerous phone calls and inquiries years ago.
Presentation
After needs and wants have been uncovered, the salesperson
comes up with a solution for the prospect, but rarely on his or
her own. Success here depends on the sellers ability to identify
where the components of the solution reside in his or her own
organizationas well as in his or her skill at mobilizing and
coordinating these resources. The explosion of social media
and user-generated content, particularly over the past three
years, has really changed the presentation step of the sales
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