The Power of Social Media

Nowadays, our lifestyles are more technologically dependent than ever with the increasing usage of online shopping, blogging, and particularly, social media.  Social media have redefined means of communications and human interactions, and savvy marketing gurus recognize this phenomenon and use it to their advantage.  Two social media giants that companies have adapted into their marketing strategies are Facebook (1 billion active users) and Twitter (200 million active users).  Through these services, companies are able to collect customer feedbacks or suggestions in real-time through status updates and tweets, granting them the flexibility and directions to make decisions and changes tailored towards customers’ preferences.  A great blog post by David Gianatasio on AdFreak.com about the recent customer protest against the dilution of Maker’s Mark whiskey illustrates how the power of social media can influence marketing decisions.

In response to the growing demand for their whiskey in the US and certain foreign markets, Maker’s Mark whiskey decided to lower their alcohol content from 45% to 42%.  Though it may not have too much of a difference in taste, customers protested on Twitter and Facebook against the dilution , claiming that it would affect the taste.  The amount of responses on Twitter was seen to be “overwhelming” says Maker’s Mark COO Rob Samuels; hence, they withdrew the decision to lower the alcohol content.  Social media also provide companies a new mean to communicate personally with their customers, fostering a sense of community and establishing virtual bonds – a marketing strategy that builds loyalty to retain customers and promote positive word of mouth as advertisements.  Maker’s Mark fully seized the opportunity to do exactly that, emphasizing that the brand “belongs” to the customers and credits the brand’s success solely to them.  Below are pictures of Maker’s Mark response on Facebook and Twitter – “You spoke. We Listened”.

Evidently, social media services have become a critical platform for customers’ opinions to be shared, heard, and analyzed.  As more companies incorporate these services like Facebook and Twitter for customers’ feedbacks and interactions, the more important it is to understand and appreciate the online community as it allows companies to tailor their products and decisions to match customers’ need.

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