Assignment
Case Study: How Social Media Drives New Business: Two Case Studies
Businesses both big and small are flocking to social media platforms such as Twitter, Facebook and YouTube. The fact is that a presence on these platforms not only allows companies to engage in conversations with consumers, but also serves as an outlet to drive sales through deals and coupons.
And while major brands like Starbucks, Virgin, and Levi's have been participating in the social web for some time now, the rate of adoption among small businesses is increasing too. According to a recent University of Maryland study, social media adoption by small businesses has doubled from 12% to 24% in the last year. But as these businesses look to Facebook and Twitter to connect with customers, many are finding that some strategies work and some do not produce results. Some local and national businesses using social media effectively, whose case studies are below.
Joie De Vivre:
A company that operates 33 luxury hotels in California is using a variety of social media platforms to drive sales and marketing for its properties. Central to the hotel group's strategy is disseminating deals and coupons to followers and fans on Facebook and Twitter. Every Tuesday, Joie De Vivre's Twitter account will Tweet an exclusive deal to its nearly 10,000 followers. Followers have only hours to book the steeply discounted room rate. For example, this past Tuesday, it offered $79 rooms at the group's Galleria Park Hotel in San Francisco in November and December. The company also operates similar deals for its 5,000-plus Facebook fans on Fridays.
In less than a year, Joie De Vivre has booked over 1,000 room nights through these types of deals-rooms that otherwise would have stayed empty. The company has also started a partnership with coupons site Mobile Spinach to offer coupons for the group's restaurants. And the company has partnered with Foursquare to offer deals for check-ins at its various restaurants.
The company's marketing VP Ann Nadeau tells that because of the economy the hotel industry's marketing budgets have shrunk, and social media efforts have proved to be a great way to both drive sales and build loyalty. The company's social media efforts are not solely deal based. In terms of using social media for customer service, Nadeau says that each property hotel manager is responsible for monitoring conversations and reviews on Twitter and Facebook.
Dr. Irena Vaksman, Dentist:
Social media and dentistry do not necessarily go hand in hand, but one San Francisco dentist has forged an impressive social media campaign to raise awareness of her recently launched practice. She has a Twitter profile, a Facebook page, a YouTube channel and an website. Dr. Vaksman's husband, lawyer Robert Vaksman, has been the strategist behind her social media efforts. Robert says that his wife is confronted with the challenge of practicing in a building that houses hundreds of other dentists that have more established practices. He says that it is a no brainer to be looking at as many social channels as possible for marketing efforts.
While the practice is still young, the Vaksmans say that they are starting to see patients and potential patients begin to communicate with them on the Facebook page, which has 70 fans. Vaksman will publish her reviews from patients on the site as well as YouTube videos containing educational content about dental procedures. Twitter is still a fairly new forum for the practice says Robert, and he is still trying to determine the best way to engage with potential customers on the network.
Last October, Dr. Vaksman signed up for a Groupon deal in San Francisco, and received 320 new patients because of the deal, which was for a patient exam and x-ray. The Vaksmans say that the deal propelled the five month old business in the right direction and boosted its patient base significantly. Robert is also looking into partnering with Facebook campaign startup Wildfire to set up a promotional sweepstakes for the practice's Facebook page.
Task
a. What are the benefits provided by the social media platform for a business?
b. List an example of how Joie De Vivre in implementing the hotel group's strategy for disseminating deals and coupons to followers and fans on Facebook and Twitter?
c. How Dr Irena Vaksman getting her 320 new patients through its social media sites?
d. Why Joie De Vivre has partnered with Foursquare to offer deals for check-ins at its various restaurants?
e. Why Dr Irena Vaksman publish the reviews from patients on the social media sites?