AN INTRODUCTION TO SOCIAL BUSINESS

Why does Social Business Matter?

Miranda Man, Strategist at BLOOM, October 2012

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About BLOOM Social Business

BLOOM is a social business consultancy that specialises in social business strategy, insight and change management. We help our clients to put social media and social technologies at the heart of their success and implement practices that empower them to engage more effectively with their clients and communities.

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An Introduction to Social Business

Why Does Social Business Matter?

It is becoming hard to escape the term ‘social business,’ with 2012 being hailed by some as The Year of Social Business. With the growing ubiquity of social media platforms, this is perhaps not surprising. However, despite this, many businesses are still getting to grips with the value of social business and what can be achieved. So, what are the benefits of being a social business? Why does social business matter?

Firstly, it is worth looking at the state of business before social media: one could argue that business has traditionally been social. In the first half of the twentieth century, small family run shops were typical and were central hubs of a community. As the century progressed, businesses up-scaled and one consequence was the greater disconnection between the customer, employees and the business. A late twentieth century business could hide behind the doors of Corporate Communications, HR and Customer Services.

The social media explosion – time to ‘get social’

It goes without saying that social media has revolutionised the way humans interact and communicate and businesses are very keen to ‘get social.’ However, Facebook and Twitter presences are all very well but if they are just another arm of PR and a method solely to push out corporate messages, then they do not constitute social business. This use of social media does not constitute the traits of a social business and is at odds with the participative and conversation based user experience behind social media.

So what constitutes social business? (This is not a definitive description!)

A social business fosters interactions between the customer and the company, encouraging two way communication. A social business operates transparently and publically, not behind the closed doors of corporate communications.

Some good examples of Twitter being used to engage with customers include train companies and BT, two industries that have their fair share of angry customers. National Rail is using Twitter to push through real time information and responses to their customers. Similarly, BT has a dedicated customer care channel. Using Twitter enables the companies to use a more human rather than corporate voice and to provide quick responses.

Why should this matter?

The customer now has a powerful voice, amplified by social media. It is now much easier for customers to connect with other customers. More importantly, bad peer reviews can be devastating – if a customer does not like a product or service, they can share their views quickly with a very wide audience.

Whilst a late 20th century business sold products or services, businesses today are more about selling the actual customer experience. For example, Zappos has made a

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successful business by providing excellent customer service, which has been powered by social media.

Social business therefore matters to actively and openly engage with customers.

Social on the outside, social on the inside

Whilst connecting openly with customers is important, this is only half of the story. A business needs to engage with their employees too or they risk delivering a false brand promise: wonderfully engaged and customer friendly social media presences but disconnected employees behind closed, company doors. A social business should be social on the inside too.

Traditional business structure v Social business structure

Traditional businesses tend to be structured by hierarchy: employees have their place in a top down organisation structure. Open dialogue between Chief Executive and staff is difficult, and employees are typically unaware of anything that is going on in other departments. This closed culture leads to information silos and a disconnected working culture.

In a social business however, where the principles of social media are applied, hierarchies do exist but are supported by networks. Communication is more flowing and two way. There is increased visibility of what other employees are doing through ambient awareness. A social business also encourages collaborative working and, similar to Agile principles, puts human interaction above processes. Whilst social tools such as wikis and networking platforms are facilitators, it is worth stressing that social business is not about the technology: the internal culture and perceptions are key.

Why should this matter?

A socially calibrated business is simply more efficient: increased visibility and greater sharing leads to better decision making, effective working and improved staff morale. This can have business benefits: an engaged employee is more likely to be a company’s or department’s best advocate, amplifying messages to their network.

Grant Thornton and Nokia are two good examples of socially calibrated businesses. Grant Thornton UK, part of the global tax and advisory firm, have integrated social business into their strategic aims. Nokia have also incorporated social into their business strategy and have implemented Agora and Socializer, tools that help employees to keep in-tune with their customers and also open up communications between employees.

The way forward in the 21st

century is social

A social business fosters customer, company and employee interaction: it encourages transparency and openness. In whole, this has a humanising effect on business – putting people and relationships at the core of business strategy. All businesses can surely benefit from having more engaged customers, an increased social reach and more productive employees: that is why social business matters.

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Want to find out more?

If you are interested in finding out how social

business could work for you, please contact us!

miranda@bloomworldwide.com

+44 (0) 1273 862340

@bloomworldwide