As discussed in my previous posts, it is pretty clear that social media has been a useful tool for organisations. In this week’s post I want to focus more on how these organisations can improve their ‘business value chain’ (as McKinsey calls them, pp15-19 & 35-43) such as marketing and sales as well as their customer service through social technologies.
Let’s have a look at DealExtreme (DX), an international eCommerce business that sells gadgets, electronics and home goods for low prices with free shipping around the world (yes that’s right, you heard right, $0 world-wide shipping on goods even if they only cost $1).
(Image courtesy of DealExtreme)
But what makes DealExtreme so successful?
Their social Media campaigns on Facebook, Twitter, Blog, Forum, and YouTube are examples of how this company is capitalizing on social media as a tool for marketing and sales, as well as customer response/support. On their Facebook page you will find posts filled with competitions, advertising for their products.
Campaigns such as their ‘share pictures of your DX products and win prizes’, is a great way for customers to tell other potential consumers about their existing buys/favorites as well as a way for people to share their thoughts, feedback and insight on many other product offerings (below image from their Facebook page and video from their YouTube Channel).
(Image courtesy of Dealextreme)
This allows DX to communicate to its consumers at a very low cost (Facebook is free, and they currently have over 1 Million likes), and are able to directly target this audience by providing promotions and viral marketing. As well as this, their Facebook page is a front for their business to communicate with the customers, building a small online community where feedback is appreciated by the DX team. On this page, users can ask questions or provide feedback on products, or even track or inquire about current deliveries.
McKinsey explains the business benefits with social technologies as ‘value leavers’, and companies are becoming more and more effective in increasing communication, knowledge sharing and consumer/business collaboration. Furthermore, developing customer insights allows for a boost in interaction as well as productivity. As can be seen with the case of DX, they have successfully, utilized this forefront for marketing communication as well as gaining insight on market perceptions as well as customer care, thereby allowing their business to thrive and continuously improve and provide the best products (at the lowest price) to their consumers.
How cool are these bedsheets from DX? (Image courtesy of Dealextreme)