Overview
Terms & Concepts
Misconceptions
YouTube Sensation
‘Socialnomics: How Social Media Transforms the Way We Live and Do Business‘, is a 316-page book written by professor, international speaker and author Erik Qualman. It explores how social media affects our lives on a daily basis; It also provides information on how businesses can utilize the power of social media power to increase profits, decrease marketing-associated costs, and get in touch on a one-to-one basis with their customer base.
Socialnomics introduces new concepts such as “World of Mouth,” “Preventative Behavior,” “Braggadocian Behavior,” “Social Schizophrenia,” and “Social ROI,” among others. Here is a quick run-through of the above-mentioned terms/concepts, so you can get a glimpse of what the author covers in his book:
World of Mouth – We are all familiar with the commonly-used idiom “word of mouth”; however, Socialnomics tweaked it just enough to change its meaning from information that is spread slowly (via oral communication), to being spread quickly (digitally on a global level).
Preventative Behavior – Because the power of social media is so great and has such a massive global audience, it causes people and businesses to step back and evaluate their message. Once it is published and available for the world to see, it can affect potential job opportunities, security in the workplace, enrollment in school, etc.
Braggadocian Behavior – Social media often times becomes competitive in the sense that people try to outdo one another, which results in them taking action and making the most out of their lives. Businesses up the ante by providing valuable and informative posts/updates to make their product or brand more appealing to consumers.
Social Schizophrenia – Socialnomics defines “social schizophrenia” as individuals who balance a number of different personas (i.e. work, family, social circles) and thus develop a schizophrenia of sorts. Social media’s transparency helps to suppress this behavior by allowing individuals to present a uniform presence on social networks and thus stay true to themselves. This also affects how businesses present themselves to the public as well; using social media forces them to focus their attention on developing one key message and show how they differ from the competition.
Social ROI – In order for businesses to maximize their social media ROI (or Return on Investment), they need to focus on the fundamentals before skipping ahead to the sales pitch.
This involves:
1.) Listen – Paying attention to what your customers are saying about your brand and/or product.
2.) Interact – Join in on the conversation and provide interaction.
3.) React – Make any necessary changes according to the feedback that has been received.
4.) Sell – Once the first three steps have been accomplished successfully, this final step will require less effort.
Socialnomics also dispels popular misconceptions about social media.
Here are just a few examples:
Social media leads to less productivity, particularly in the workplace.
Incorrect. Social media actually increases productivity. It is “the mechanism that allows users to avoid information indigestion.” (Socialnomics, 2012) It also facilitates quick and easy access to information, which acts as a time-saver as opposed to a time-wasting activity.
E-mail is still (and will always be) the preferred method of electronic communication.
Incorrect. Traditional e-mail is still being utilized as a formal method of communication; however, social networks do a better job at replicating normal free-flowing conversation between individuals.
Businesses that avoid social media altogether will do just fine.
Incorrect. Simply taking old business models and digitizing them will not work in this new age of social media communication. Businesses will need to completely transform and adapt to the changes in order to be successful.
The most effective marketing campaigns are developed by the marketing department.
Incorrect. People are more likely to pay attention to a product or service that is recommended by others in the form of written reviews, user-created videos, tweets, etc, than by advertisements.
Opening up communications with customers will only lead to criticism and complaints, which will reflect negatively on the business.
Incorrect. Opening up the lines of communications with customers will let them know that you are interested in what they think. This type of information is invaluable as it helps businesses determine what works and what does not and guides them in adjusting their approach.
The following YouTube video was produced in 2009 and based off of Socialnomics. It is currently the world’s most watched video on social media:
SOCIALNOMICS 