powering Australia's discovery of the third place

Nine million Australians are now interacting via social networking sites, according to the newest Nielsen’s 2010 social media report.  This just adds to the proof that social networking is not just becoming a mainstream in our lives – it is a mainstream in our lives.

Let’s think about this for a minute. We’re on social sites. Social networks are accessed everyday by billions of people worldwide. I think it’s safe to say that people trust social networks. I don’t necessarily believe this is a conscious trust. I don’t think we sign into a social platform thinking, “I’m going to trust this social network today.” Rather, it just is. Engaging in a social platform is something we’ve become accustomed to participating in.  Our friends are in this space, our families are in this space, and also the information we look for on a daily basis such as news, reports, etc. Because we are using these platforms everyday, we obviously trust that they’re not going to hurt us, or steer us wrong. It’s natural.

What does this mean for businesses that are engaging with customers on social sites? In an article in Mashable yesterday, they highlighted an article by Chadwick Martin Bailey and iModerate Research Technologies . This study found that 67% of consumers are more likely to purchase from brands they follow on Twitter and 51% more likely to buy from brands they follow on Facebook.  It also pointed out that “many consumers across a wide variety of demographics have negative perceptions of brands that aren’t using social media.” I believe this negative perception can boil down to “trust.” But I’ll come back to that.

Melanie Ingrey, Research Director for Nielsen’s online business here in Australia states, “The opportunities for brands and companies to tap into the social media phenomenon are really just beginning to emerge and to date we’ve only seen the tip of the iceberg.”

“Incredibly, nearly nine in ten Australian Internet users (86%) are looking to their fellow Internet users for opinions and information about products, services and brands, and Australians’ engagement with online word of mouth communication is going to increase in coming years as social media plays an increasingly important role in consumer decision making.”

As MD at Community Engine, I encourage organisations and brands as well as political figures to create their own social spaces. We teach them the importance of being out there on social networks to ENGAGE and BUILD relationships with their consumers, constituents, and advocates. There is such power behind being in the same social space as the people who have made you what you are.

I’ve been at ad:tech Sydney this week. I’ve been able to meet amazing people, see friends I’m already connected with, and hear great speakers. One comment that has really stuck out in my mind is, “social media is not a one-night stand.” By being involved in social networking, I believe for consumers, it says something on an unconscious level. It lets them know you’re interested in them on a personal level. It tells them you’re willing to engage with them and hear what they have to say. It builds a level of trust when the right intention is there. That intention being not about getting that extra sale, rather finding out the needs of the individual and helping THEM.  Because there are nine million of us using social networks, we understand that social media is in fact NOT a one-night stand.  It’s a commitment to serving on many levels. It’s a commitment to trusting and gaining trust.

One key however to being involved in social networks whether it be your own social platform or a third party platform such as Twitter or Facebook, is RESPONSIVENESS.  An organisation can’t expect to gain trust with those who are in the same social space if they are not engaging with and responding to customers.

Last month, Mashable contributing writer, Greg Ferenstein, wrote a piece about building trust with social media. They gave a couple of examples of tweets that were responded to by companies using social media. One experience resulted in a blogger writing a rave review of a restaurant experience that ensued because of her tweet requesting a menu item. The restaurant I spoke about in a recent post, which responded to a customer complaint, has earned more trust not only with those who were already supporting the restaurant, but also for those who really had no opinion in the first place. Not to mention turning the unsatisfied customer into a returning one.

There is power in opinion. There is power in social media. Your customers have influence. In order for trust to be gained, organisations must engage. The intention shouldn’t be for growth of a bottom line…rather growth of your community.

As the current Nielsen report points out the continual growth of individuals engaging in social networks, it shows us the opportunities to be a part of. How is your organisation stacking up?

posted by Venessa in the category Conferences Social Media Social networking
Tags: 2010 social media report, adtech, mashable, nielsen