The growing clout of social networking sites is adding to the number of businesses wanting to leverage this interactive platform for profit. While some businesses have been quick to reap the benefits, patience is the name of the game for many.
It is now a popular belief that more people
log in to their Facebook accounts than read newspapers. While the jury is out on this one, newspapers have certainly been spending more newsprint writing about the rise of this new democracy.
Marketing managers in companies, big and small, have been adding generous sprinkles of social networking in their menus. It is safe to say that in an executive's life in urban India, no day passes without the mention of one of the social networking triumvirate: Facebook, Twitter and LinkedIn. The question to ask is: what good has it done to me?
We asked a number of practitioners this question and came back with one answer which hung out loud and clear: It is a good brand building tool. Most of them concurred that one would be over optimistic in expecting direct business returns from social networking yet. Some of them even questioned the very mindset of wanting 'everything to be monetized'. All of them said social networking is too important to ignore anymore.
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| More people check their Facebook accounts than read newspapers.
Mahesh Murthy, Managing Partner at Seedfund Founder & CEO at Pinstorm Founder & Principal at Passionfund |
Today 71 million people use internet in India of which about 80 percent use social networking sites in some way or the other while about 25 million use internet on mobile.
Gaurav Mishra, CEO at 2020 Social Writer and Speaker at Gauravonomics |
Fund raising has gone up by 400 percent on internet after we joined social networking sites.
Mathew Cherian, CEO of HelpAge India |
What is it good for?
Saying 'good' would perhaps be an understatement. Social networking sites (SNSs) have been like a bubble without an impending possibility of bursting.
Amid the ruins of the chaos that is left behind by the US meltdown, businesses have taken to online social media which is as contagious as were the collapsing empires. Though, it has been present for some time, it’s in the recent years that it has witnessed a remarkable rise in its acceptance worldwide.
Of course, India is no exception. Trying to make up for the sluggish days, many have joined the bandwagon hoping to make the best of it. "SNSs are basically an opportunity for Indian businesses" says Mahesh Murthy, founder and CEO of Pinstorm. From creating a wider customer base through communication and direct interaction with customers to inexpensive marketing, SNSs have helped companies with much more.
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| The famous Indian band—Parikrama. Subir Malik (first from left). |
And indisputably ‘Brand Building’ is the first one on the list. As Rajesh Lalwani of Blogworks likes to say "Brand building is as good as revenue generation." True as it stands, not many Indian businesses have been able to generate revenue directly from their activities on the SNSs but it definitely has an indirect impact. "They impact intangibles, which in the long run, impact tangibles like revenue, sales, etc." said Abhishek Rai, founder of Shack Design Co.
However, there are a few exceptions that would soon be no more a minority. Some are already at it—making ‘moolah’. "Today, quite a few businesses are getting leads through social networking sites," tells Gaurav Mishra, CEO of 20:20 Social.
And not just retail but all businesses. In fact, much against the popular belief, online social media not only helps retail businesses generate money but manufacturing businesses too can benefit from engaging in activities on sites like Alibaba, etc.
Another very important aspect of Web 2.0 is research. Many conduct thorough research; they read people’s comments, ask for reviews, discuss before buying a product. "People can’t buy a car online, but one can research, consult and discuss online," says Rajesh Lalwani. This essentially means SNSs have a direct bearing on the customers’ purchase decisions.
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| Most of the companies are not responsive except a few like Cleartrip, Kingfisher, etc. Most of them are used to unidirectional communication, and are grappling with the possibility of engagement with their customers.
Abhishek Rai, Founder of Shack Design Co |
SMEs are, only now, beginning to understand the benefit of SNS.
Rajesh Lalwani, Founder & Director at Scenario Consulting - Blogworks; IndiaSocial; Pitchh.com, Founder at Blogworks |
People need to be evangelized about Social Networking.
Rahul Razdan, President - Products and Operations at ibibo Web Private Limited |
Looking at it from customers or buyers point of view, businesses which were entirely sales driven are gradually changing their attitude to stay in the race. Customers’ preferences, grievances, likes and dislikes are now the new priorities for companies. Companies have now woken up to the power of SNSs, where undesirable testimonials by unsatisfied customers can make or mar their reputation. With a fan following of 13,751 and thousands of testimonials from them, Subir Malik, manager of the famous Indian band Parikrama says, "Now I know the power of Facebook. It’s brilliant."
Online social media has truly empowered the end users and customers. While demand has always driven supply, irrespective of the existence of SNSs, products never really matched customers’ needs so perfectly until today. Customers now contribute to product creation.
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