The Most Important Social Media Strategy for Making Money

WetPaint CEO Talks Business Social Media Use

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Earlier this week, WebProNews reported on a study from WetPaint and the Altimeter Group, which indicated that brands who engaged with customers more through social media performed better financially. Judging from our comments, there is a lot of skepticism about the accuracy of this information, but Wetpaint CEO Ben Elowitz shared some further insight with WebProNews about how companies can most effectively utilize social media.

Elowitz also talked a little bit about the ENGAGEMENTdb site, which was announced along with the study. On the site, businesses can match their own social media efforts up alongside those of successful brands.

WebProNews: What do you think is the most important way for a company to utilize social media to have the biggest impact on revenues?

Ben Elowitz Ben Elowitz: For a company to be effective with social media, it has to actually react to the conversations that take place. If the company does, it validates the consumers they engage with and creates even greater loyalty.  Beyond that loyalty, engaged companies tend to have products and services that customers actually want. No wonder – those customers actually played a role in creating them. And when you sell products that closely reflect the desires of the customer, you’re better able to drive premium pricing. Better pricing, better margin, better profitability.

WPN: How important is it for a company to have a dedicated team working on social media efforts on a full time basis?

BE: A full time team is great but it might not be a reality. If a full time team isn’t possible, what needs to happen is a couple people within a company that can serve as evangelists and spread the social media word internally. Often times when social media gets started in a company, people are resistant because it’s viewed as another thing someone has to do in their day-to-day job. However, an evangelist can sell the benefits and keep the momentum going to help transition social media from ‘another daily task’ to something that becomes part of the natural work flow.” 

WPN: ON the ENGAGEMENTdb site, companies can rank themselves.  Can you tell me a bit about the ranking process?

BE: The "Rank Yourself" feature is a quick 5 question survey asking about a company’s social media efforts.  Based on those answers, we correlate it to the data we gathered for the ENGAGEMENTdb report.  Based on their particular answers, we’re able to generate a report that compares their efforts to the world’s most valuable brands.

WPN: On average, how are the companies (outside the top 100) ranking?

BE: We’re seeing companies rank all along the spectrum from Social Media Mavens to Social Media Wallflowers. Since the results are private, we think the self assessment is a pretty good indicator of what companies are really doing in the social media space.   

WPN: How much progress needs to be made?

BE: The social media space is evolving so quickly that it’s pretty easy to say we all have a long way to go.  The key thing to remember is that the data we’ve been able to gather suggests that there is a very strong correlation between high social media engagement and better financial results.  Companies that experiment now and learn the ropes are going to be so much better off than the ones waiting for just the right moment to get involved with their customers.

Wrapping Up

I’d like to thank Mr. Elowitz for answering my questions, and sharing his thoughts on social media practices for businesses. How do think your own social media efforts stack up to those of the big brands? How about to other smaller brands? Share your thoughts.

The Most Important Social Media Strategy for Making Money
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  • http://www.atlanticdrugs.com Hayden Eck

    First i would like to thanks to Mr. Elowitz for sharing such a great valuable information with us.

    I would also wanted to know the list of good social media sites for promoting our site’s brand and interacting with our customers. This there any guidelines given online to follow through for social media promotions.

    I hope it is like implementing widgets of social media network in our site… and let visitors – customers know about our presence in no. of social media network ?? is it right ??

    Hayden Eck

  • http://www.radmil.ch/ finance888

    …another very interesting and useful article by webpronews.com. Thanks a lot.


  • http://officialsafetyandsecurity.com Official Safety and Security

    I use many social sites to engage customers with my safety and security product line. It can take many hours to find the discussions and interact with your target market which keeps me from being as effective as I could be. Thanks, Chris

    • http://money-cake.com Guest

      Does your strategy work?

  • http://businessaccent.com Vic of BusinessAccent

    Social media should not only be used for pure product promotion. We should not forget that social media exists with an inherent social responsibility on it. It’s great for your company to have dedicated people who will socialize and create relationships in the social media.

  • http://extremeezine.com/ Brian D. Hawkins

    I like Ben’s statement, “For a company to be effective with social media, it has to actually react to the conversations that take place”. Many companies try to force feed ‘in your face’ ads using social media much like they would on PPC or point-of-purchase advertising. Without the interaction with customers that social media provides it’s just wasted effort.

  • http://www.businessdirectoryofamerica.com Deep Links Directory

    I knew my followers would love this interview. I sent a tweet out once about how 60% of corporations were considering social media as a viable solution to their promotional efforts during a downturned economy, so this is another one that my Twitter followers will love.

    I retweeted this interview to over 30,000 followers gladly…thanks for the great content!


  • http://www.bestsurabayaproperty.com jual rumah

    Really social media has been a warm and enjoyable place for gathering. So it becomes advantagous and inexpenxsive media to launch succesful ad campaign.

  • http://www.books4smarts.com Social Mumbo Jumbo

    It seems that either you are into this type of thing or you are out of it, the general consensus is that it is in fact a self sustaining fad that moves from one name to another, much like the PPC market has done for years, statistics show that people rather quickly loose interest in social media, which means that you have a limited window to access these people from a marketing standpoint.

    Does this mean that all your tweets, and such are a waste of time?

    That is exactly what it may mean, however, if you are at the right place at the right time, you could find a method of marketing that could work for you if your timing is just right.

    So far the people really making the money in this industry are the service providers, which is sort of a dim view to future profitability.

    Fad or Fantastic, who knows for sure…

  • http://www.webnretail.net Gale Rosenberg, President of Web ‘n Retail

    Hi there, thanks for this great forum. I learn so much from WebProNews!

    Our Firm has tested many social posting platforms and have found the utmost success by combining social forum postings, with cross postings on Bookmark Sharing Services, News Aggregators, Directories, Search Engines & Feed services.

    While posting on targeted forums is great, and interactive, the numbers of viewers is often small and inconsistent from day to day and topic to topic. In order to reach a significantly larger number of people who are “opting in” and choosing to receive information on a particular topic, we find the bookmark sharing services (etc..as listed above) to be invaluable.

    By employing this method for ourselves and for our customers, we are able to take a non existent product (when we start….ie., a website launch) to over 3 million search engine results when we complete our campaign. Type in “Taylor Spears Recommends” on google and Yahoo and you’ll see our product we built from scratch has over 3 million search results.

    Each search result is gravy on top of the interactive experience we propel by having our information delivered via email notifications, desktop deliveries, log in pages, etc. Never before has it been possible to reach this many people that are ASKING for information on particular products! Visit us at www.webnretail.net/viralblogging.html; and see what we do…

  • http://holycrossfoundationworld.org/helpinghurtingheartsproject.aspx Edward H’

    Please do the right things in life and give your generous gifts to good cherity websites like Holy Cross Foundation World.org (HCFW.org) http://holycrossfoundationworld.org/default.aspx (main page)
    or cherities page
    either link will take you to this website, so please copy and paste in your brouser and go to this website today and do your part to help do some good in life and please by all means help illiminate bad websites, porn and so forth and make this world a much better place to live in… Lord knows we need more good in todays society… Think about the good an d be poisitive always, not the bad and think negative. the good will take you places and the bad wont
    Thanks Ed

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