Social Media Highlights the Role of Experience in Revenue Growth

Forbes ran an interesting article that related how they believe social media has solved the demand generation riddle. How can marketers actually produce demand which leads to revenue when over 70% of the purchasing process is purchased before a sales person is ever contacted? The article suggests that the answer lies in catering to the customer purchase experience, a missing component with the traditional 3Ps of marketing (product, price, and promotion). In today’s socially connected world, experience is just as important if not more than the capabilities of the product.

Buyers traverse through what the article calls the buyer’s journey which consists of four steps: defining the problem, searching for a solution, evaluation options, and validating the chosen option. In the first stage, the consumer is really looking to understand how others have addressed this exact problem he/she are facing. This is where social media and catering to the buyer’s journey can really drive the experience to a higher level. In the next step, the consumer is evaluating if the popular solution really works for them and they are deciding on the target outcome as well as success metrics. During the evaluation phase, the consumer is looking for an experience and trying to measure lifetime value. Finally the validation phase is pivotal in closing the deal, and here the consumer’s experience during the shopping journey is a litmus test for how the consumer can expect to be treated as a customer. A positive experience will dramatically increase the probability of a purchase.

So how can companies and marketers embrace the buyer’s journey? The article suggests a three step process:

1. Employ a CRM tool and hire analysts to listen and leverage the power of social media. Further refine insights by industry and role/persona so that an actionable plan is developed.
2. Conduct market research to understand both the current customer experience and the ideal one for your product and industry. Create a timeline of the buyer’s journey.
3. Map one to one marketing events to the buyer’s journey timeline

Through an understanding of the importance of experience and by embracing the role social media plays in this experience, companies can properly use marketing resources for demand generation that will ultimately drive revenue growth.

Source: http://www.forbes.com/sites/christinecrandell/2011/12/04/social-media-solves-the-demand-generation-riddle/