How Social Media influences Consumers

Companies can now create critical new brand assets (such as content from customers or insights from their feedback), open up new channels for interactions (Twitter-based customer service, Facebook news feeds), and completely reposition a brand through the way its employees interact with customers or other parties.

Companies diligently establish Twitter feeds and branded Facebook pages, but few have a deep understanding of exactly how social media interacts with consumers to expand product and brand recognition, drive sales and profitability, and develop loyalty.   Recognizing the speed and diversity of social media feeds and how to measure the cost benefit of a media campaign remain critical factors in managing through the quagmire of how senior leaders can harness social media to shape consumer decision making in predictable ways.

In order to demystify social media,  we have identified its four primary functions—to monitor, respond, amplify, and lead consumer behavior—and linked them to the journey consumers undertake when making purchasing decisions.   Being able to identify exactly how, when, and where social media influences consumers helps executives to craft marketing strategies that take advantage of social media’s unique ability to engage with customers.