Social networking and community engagement technology made easy

Social networking and having an online platform to commune with your customers is one of the biggest shifts we’ve seen emerging in recent times. Jetstar, the low cost airline arm of Qantas , the world’s leading long distance airline and one of the strongest brands here in Australia, has recently announced that it is switching 40% of it’s marketing budget into social media marketing, according to mUmbrella.

This shift is set to occur during the next financial year and is being implemented after 2009 trials, according to Jetstar’s head of marketing and PR, David May:

“The increase in costs of traditional media compared with the audience reach is significantly higher than with social media, where you can potentially reach hundreds of thousands of consumers with the one simple online message – and digital TV isn’t filling the gap.

It’s clear our customers are comfortable in the online space and as Jetstar is essentially an online retailer, it makes sense for us to embrace social media outlets. Online media channels gives us immediate access to our consumers. Social media offers more value for money and is a smarter way to reach our customers.”

Is it really a surprise that Jetstar, a company that does most of their business online, is switching the way they market? I don’t think so, especially given the recent Nielsen report, stating:

“Twitter’s audience levels grew by more than 400% in 2009 and nearly one quarter of online Australians (23%) read ‘tweets’ in the past year, 14 percent ‘followed’ companies or organisations via Twitter (up from 5% in 2008) and 13 percent posted ‘tweets’ (up from 4% in 2008).”

Jetstar’s recent activity on Twitter was highly successful in that it offered 1000 seats for two cents and sold out in hours. That was not the first success it had on the Twitter platform.

Jetstar’s CEO, Bruce Buchanan, said in a recent interview that Jetstar is passionate about their customers, and there doesn’t need to be a trade-off between good customer service and lower airfares.  They recently launched their YouTube channel and in one of the segments, highlighted their commitment as well as their customer guarantee.

It’s not just about having a strategy in place. It’s about the implementation of the strategy and keeping to their commitments. If companies are not engaging with their customers in the social spaces they occupy, then it’s only lip service.  In order for a social media marketing platform to be successful, organisations must do what they set out to do, and that is give their customers full access to the companies they are working with.  That is what having a social media platform offers over traditional media.

The reality facing us in terms of social media marketing, and the reality Jetstar is so boldly heading toward full force, is that traditional media is falling off a cliff, and the role of media is CHANGING. Traditional marketing is not getting the relationships and results that social networking can provide in real time. That is a fact. If you’re a CEO or Marketing Director who doesn’t recognise this now, then you are missing the opportunity of a generation. It’s high time organisations take a look at what’s working, what’s not working, and act accordingly because there is a monumental paradigm shift before us. Those who ride the wave and dive into new territory are those who will come out on top.

For me, I get excited to see a company like Jetstar breaking into a platform and watching it work. I’m anxious to see what this next year holds for them and where they take their social media beyond what they’re currently doing. Where is YOUR organisation in regard to this business and social paradigm shift?

posted by Piers Hogarth-Scott in the category Media Social Media
Tags: Jetstar, nielsen, Qantas, Social Media, YouTube