Creating customer value through social networks

As a continuation to my previous blog on why a company should enter the social media platforms this post will discuss some of the essentials on how a company can create value through networks. 


The purpose of a social network is quite simple, to connect humans. Though the core purpose of the networks remain there's been millions of added services to the networks in order to engage and connect the users on a deeper level, social games, photos, specific groups and pages, events that eventually has made the previous impossible things possible, or at least a lot easier.

As I already discussed in my previous post a social network requires communication, it's not a bulletin board. The mission for a certain company entering the social networks is to provide added value to their customers, something that can't be provided in the company's product or service. The customer needs to feel special and selected. The social networks is an excellent and fairly cheap place to satisfy and give their customers something more. By engaging the customers into discussions, treating each customer as a key-customer by listening and answering them makes the customer feel special and as a part of the company. This in turn will generate added value from the customer's point of view and strengthen their view on your brand. It's a social exchange really, customers get added value and the company gets a stronger brand, Win-Win!

By engaging the customer into your product-, or service development you'll get an insurance. The insurance consists of a risk reduction from a potential failed product or service, by working with the customer there'll be a risk reduction since the customer provides you with information on what he or she wants, not what you want to make for your customers (Ask not what you can do for them, ask what they can do for you) ! Not only do you get a risk reduction but also free labour to your company, instead of having a team of engineers figuring out what you actually should produce you get the customer to do the job. A concrete example for this is are the Angry Bird cakes (Count the comments and likes and you'll be amazed) that their fans have produced which in turn have opened up new market-opportunities to the brand (The official Angry Birds bakery is yet to be seen). But you get the point, by engaging your customers on the social networks a satisfied customer will become a brand-ambassador for your company.

You should really see your customer as a co-creator of value, the days when the company produced a product and threw it out on the market are over, finito, loppu-slut, sayonara. Finnish professor Christian Grönroos even went so far as to call the company something that only made value propositions for their customers, the actual value is created by the customers.

By engaging your customer in the development process and listening to their feedback the customer will feel valuable and special, or as Rovio's Mighty Eagle said, "Good things will come to good people" meaning that it pays off for the customer to provide you with feedback.


Food for thought...