Untapping the social media potential

Born in Singapore and raised in the San Francisco Bay Area (don’t worry, I came back to complete my National Service), I guess you can say that I’m pretty familiar with the two places. Although there are obvious and discernible differences between Singapore and the Bay Area, they’re quite similar for the most part.

Both areas are considered highly metropolitan, have efficient subway systems and a Starbucks on every other block. However, now that I’m working in Singapore, I’ve definitely started to see some key differences, especially when it comes to social media. It’s undeniable that social media networks have had a tremendous impact and influence in our social behaviours and have now grown to dominate and dictate how we communicate.

Our daily routines, which have long included activities such as brushing our teeth and showering (I hope), have now been altered to allow sufficient time for social media networking. Whether in Singapore or the US, I often see commuters fixated on the tiny screens of their mobile devices, posting on Facebook, Tweeting their thoughts, and commenting on Youtube videos.

Joining the b@ndwagon
In the US, the majority of businesses have already jumped on board and market themselves though the social media bandwagon. And it doesn’t seem like this ride is going to end anytime soon. Although 70% of internet users in Singapore use social media on a personal basis, there are many local and multinational businesses here who leave their social media potential untapped. Quite honestly, I’m not sure why!

Don’t get me wrong, there are companies that get social media, but the majority of companies here don’t see a comprehensive social media presence as a marketing tool or a valuable investment.

Singapore is sociable
A global study conducted by market research firm Firefly Millward Brown has revealed that Singapore is one of the most “evolved” social media markets around the world. Although Singaporean consumers expect companies to have a virtual presence which serves as an extension of their “offline shopping behaviour,” that same study shows that companies are not actively engaging in social media.

The companies are either afraid of what they don’t know or don’t have a clear social media marketing strategy. Even if a company has a Facebook page, they employ a one directional approach where only new products or services are promoted. In fact, this very approach goes against social media. It’s not only important but essential to understand that social media is a highly effective two-way communication channel and if there’s no discourse between the brand and its consumers, what is the point?

A couple weeks ago, I had a conversation with a business owner and he admitted that he was hesitant in building a social media presence for one main reason: He was afraid of interacting with consumers who might have negative comments about his company. To him, the only way to ensure against the viral effect of negative messages was to have no social media presence. What is most discouraging about this is that this is not an isolated sentiment among businesses here in Singapore.

Why #tweet?
So why is social media such a valuable business commodity? For some companies, using social media is the primary marketing strategy, and there can be no better example than e.l.f. cosmetics who spends zero dollars on traditional forms of advertising. Instead, they actively engage their consumers through social media channels, blogs and email marketing, thus creating a brand loyalty that cannot be bought.

As the CMO for e.l.f. , Ted Rubin is known for his active use of Twitter (where he has over 60,000 followers) and his responsiveness. “I do believe in sales, but there's not a true device that [tracks the link between] social media and sales that's really working. Right now, I think the most important thing is engagement and interaction because it allows you to do branding on steroids,” he says. Rubin promotes ROR, the Return on Relationship, which he defines as the value that accrues to a person or brand due to nurturing a relationship.

The future of “friendcasting”
There are also some experts who suggest that social media will become the Internet’s new search function as consumers are spending less time navigating the Internet on their own. They will begin making decisions based on their friends’ activities and recommendations on social media channels. Thus, “friendcasting” changes the behaviour and spending habits of consumers by creating an online community of influence and an organic feedback system. As social media is now synonymous with “word of mouth” marketing, a defined and optimized presence is increasingly worthwhile for any business to have.

Social media can be the threshold that can make, break or expand the relationship between a company and its consumers. Even in the typically dry political sphere, social media is a powerful and galvanizing force as illustrated in Singapore’s most recent election. It’s a no brainer then that an optimized social media presence can be an extremely valuable asset to possess.

Keep in mind though, social media marketing is a process and not a function and does not generate immediate profit. The ROI comes from the brand management and the relationships that develop within the social channels. A successful social media campaign captures the hearts and minds of your consumers, giving an investment with almost unlimited return.

Xavier Teo, B.A. in Mass Communications from the University of California, Berkeley, Business Development Manager - MediaCo Marketing Pte Ltd