Steps forward in Social Media consumer engagement

Perhaps a mile-stone in Social Media, today marks the first time that TV media behemoth the X Factor (USA) has given its public voters an alternative to calling or texting for their favourite musical act on the show: After an initial reluctant approach towards Twitter, media mogul and X Factor producer Simon Cowell has since declared, “the only powerful people on TV are the people on Twitter and Facebook.”

Twitter has invested in this new technological advancement (which sees voters submitting vote via Direct Messaging) and at this stage is reluctant to reveal whether the move is likely to be profitable. The hope however, is that the financial benefits in the future are worth the initial investment.

But what does the X Factor USA aim to achieve through a partnership with Twitter? As Mr Cowell professed himself, “it’s like having millions of producers working with you” in regards to the immediate feedback the show constantly receives, searchable via the Twitter’s own search function. The method could also be a way of obtaining more meaningful information around voters. From Twitter’s perspective, the move signifies a change “from focusing just on engagement” to getting into the creative fabric of shows, letting the audience help change the outcome.

So what does this mean for the future of social media within the infrastructure of brands? Recent research by Constant Contact has found that consumers who engage with brands on Twitter and Facebook are year-on-year increasingly more likely to invest in that brands products, and it’s not just media companies and retailers – social media is influencing everything from politics to the way our services are provided. Companies have to reassess how they communicate now that their customers have a voice: a voice that can ultimately make or break them.

It was recently revealed that US President Barack Obama will be returning to the use of social media channels for his 2012 presidential campaign. Obama famously embraced the power of Facebook and Twitter throughout his 2008 campaign, which ultimately saw him being voted president. This time free blogging site Tumblr has been harnessed with an aim at encouraging voters to interact and share campaign stories. Time will tell if his previous campaign’s success can be repeated, but Obama’s digital marketing strategy of the 2008 election famously spawned many other international politicians into following in his footsteps.

Yet despite social media’s continued success stories and more companies than ever apparently embracing the digital age, there is still a worrying lack of response to the individual customer. Information in social media travels fast, and it is crucial that companies don’t attempt to attempt to overly-control communication in a social media context. Similarly, simply issuing content isn’t enough anymore: Customers are looking to be heard and acknowledged.

Socialbakers is a company who measure and analyse company responses within social media and its findings worryingly show that on Facebook, companies respond to just 5% of customer enquiries on average. More media focused brands however seem to be continuing to pioneer the new way of engaging with customers in an effort to achieve valuable and compelling customer experiences.

Coca Cola have recently made the bold move to no longer rely on traditional ad agencies for their creative ideas. Instead, the global soft drinks brand will be adopting a “crowd-sourcing” approach whereby their feedback and ideas all come via their Facebook and Twitter fans. (Incidentally Coca Cola’s Facebook page is now ran by two genuine brand fans who decided they could do a better job at representing Coca Cola than Coca Cola itself. Coca Cola agreed.)

In an effort to shape the creativity of its portfolio of brands, Coca Cola has realised the potential in allowing consumers to produce the content they want to see, giving the customer a voice and actually listening to what their fans and followers have to say.

Luxury Fashion & Social Media

The words Luxury and Exclusivity are often considered synonymous. As luxury brands increasingly feel more pressure to conquer marketing online, how do they remain desirable in a medium that is open to the masses?

It is widely perceived that the web isn’t a luxury market and brands face the dilemma of either embracing social media or being left behind. As people spend more money online, in order to make profit luxury brands must find a way to engage these consumers.

The biggest challenge that faces luxury brands when approaching social media is that luxury implies exclusivity and therefore the product shouldn’t be accessible to everyone. Social media sites make it more challenging to selectively choose whom to interact with. Furthermore, some brands are hesitant to try new marketing techniques, which might be risky to their established brand image. If done incorrectly, they risk ruining their brand reputation and diminishing the perception of affluence.

The solution for the luxury sector is to embrace social media: Just as product can be desirable and exclusive, so websites can be.

Burberry is a fantastic example of a brand who have created their own online community. Rather than shun Facebook and Twitter because of their mass audiences, Burberry has embraced them.

Burberry’s Facebook page boasts over 7 million followers, and the face of the brand’s new ‘Body’ fragrance (and fashion ‘It girl’ of the moment) Rosie Huntington-Whitely appears in a short video to thank fans for the achievement. The page introduces new content, which keep the consumer engaged in the brand and lusting for the product. Whilst remaining exclusive, the brand offers a mass audience the chance to be part of their brand in the same way that a new fragrance does.

Their Twitter page similarly offers snapshots into the world of Burberry with Creative Director Christopher Bailey even taking over the account during Fashion Weeks.

But significantly on top of this, Burberry launched its ArtOfTheTrench internet community, allowing those who sign up to comment, favourite and – if their image is selected - even share their own real-life shots of them in the famous Burberry trench. Bailey even commissioned The Sartorialist’s Scott Schuman to launch the site in a tactical move which would appeal to young internet-savvy fashion fans. Through this site and the younger audience appeal of a renowned fashion blogger, Burberry give their users another outlet that is more refined than the larger social media sites open to the masses.

Other luxury brands have also embraced social media to fantastic effect. Jimmy Choo started an Internet frenzy by launching a “Shoe Treasure Hunt” in London via location-based social networking website Foursquare, whilst Tiffany & Co. and Chanel were quick to realize the potential of iPhone applications which interact with Facebook.

Whilst some hold back attempting to guard their brand identity of desirability, most luxury brands are increasingly realising the need to focus on creating unique online experiences. Social media is a tool that any brand can ill afford not to be involved with. Acknowledging that exposing your brand to consumers through social networks is the only way to engage today’s customers consistently.