Earlier this week the Wall Street Journal posted an article entitled Entrepreneurs Question Value of Social Media – Marketing via Facebook, Twitter Yields Results for Some, Others Say It’s Overrated; ‘Hype Right Now Exceeds the Reality.
The important words in the title are “Right Now”. Don’t be fooled, Social Media is here to stay. If you ignore it, it will run you over. A true paradigm shift – reinforcing what is already a reality – consumers are in control.
It’s not new; consumers have been rating products online for more than 15 years. The “Social Shopping Study 2007,” commissioned by PowerReviews identified a significant segment of online shoppers as Social Researchers – “consumers who actively (always or most of the time) seek out and read customer reviews prior to making a purchase decision.” 86% of Social Researchers find customer reviews extremely or very important and 76% find “top rated product” lists (by customers) to be extremely or very important.
These results align with what I describe as Summit’s Credibility Pyramid.
We believe our own experience first and foremost, then we believe those who are similar or like us, third on that credibility scale are the industry pundits, analysts or media and at the end of it all – the least credible source is the vendor.
Why is understanding this concept critical in the advent of the rise of Social Media?
We no longer have to go online and “look” for reviews. Now these opinions – good or bad – get pushed to us anywhere at any time. Twitter, Face Book, Buzz, even LinkedIn all provide conduits for consumers to be heard and heeded. So while there may still be some skeptics about making the investment and not everyone will rush right out and pull a ‘Jackie Siddall’ and purchase a $1,900 folding kayak based on a Tweet, the power dynamic has permanently shifted and whether you are selling kayaks, bridges or pharmaceuticals you better join in the conversation.