Social Media, eWord Of Mouth and Influence

2010 November 19

One of the aspect in social media that can be used to company advantage is Social Proof. A term described well in Robet Caldini book -Science of Influence. While initial finding were used in normal circumstances it does not change the fact that the same principles can be applied in online environment.

So what Social Prof actually is sort of behaviour that people follow if they do not know how to behave or what to do which is especially important with new situation including new products without references. They are therefore more likely to follow other or listen like in case of internet recommendations to other users opinions. Actions and opinions of those around us or opinions of eWOM will be important guides in defining the answer. Because other people have tried it and their opinion is unbiased unlike advertising.

WOM outcomes were investigated from a receiver's point of view. Overall, positive messages led to a sense of enthusiasm, confidence and optimism in the receiver. Such sentiments are consistentwith the reduction in perceived risk created by WOM.

Positive messages led to a sense of enthusiasm, confidence and optimism in the receiver point of view. Such sentiments can be related to reduction in perceived risk created by WOM insted of advertising. Therfore eWOM is more succesfu in establishing credibility than any other form of advertising.

Some Facts relating to eWOM :

71% of Companies Plan to increase investment in Social Media by over 40% because

-Low cost marketing

-Gaining Traction

-They have to do it

Accordingly to economists Business that know how to use social media are growing while those that don’t know are declining.

Other advantages of social media include:

-          Creation marketing

-          Enhanced customer loyalty

-          Reduced cost of doing business

Example of companies that use eWOM and Social Media well:

 The Adidas Originals Facebook community, which has around 1.9 million fans. This community not only keeps people up-to-date with Originals events and offers, but is the first place Originals campaigns are launched, as it provides the perfect word-of-mouth fuelled springboard and, critically, is only a few clicks away from the Adidas e-commerce platform.

Successful companies do know how to take full advantage of Social Media and mechanisms that are fuelling this phenomenon.