Using social media ranks among the most powerful and cost effective ways to gain information about perceptions stakeholders share regarding a product or service. In addition, the use of social media is a potent way to encourage brand engagement as well as provide a space where various levels of stakeholders – customers, shareholders, and employees – can connect to build loyalty and community. In addition to these advantages, well-managed social media strategies can provide the opportunity to:
While using social media offers many rewards, there are also certain risks inherent to social media. A savvy manager needs to be aware of the risks to properly manage a company’s social media engagement.
The risks inherent to social media can be monitored and mitigated with proper skills and knowledge. Staying engaged in the process and preemptively addressing issues are two ways to sidestep most social media problems. Some of the risks include:
Understanding the usefulness and the limitations of social media is important for proper management of the information gained through these avenues. What might appear of great public concern may in reality just be an issue for a small but vocal group. It is important to monitor and analyze social media before basing monetary decisions on the “data” gained through social media tools.
While a breach in cybersecurity represents an operational risk to an organization, bad reviews or shared incorrect information can pose reputational risks. The operational and reputational risks will vary from industry to industry but share the potential threat of negatively impacting profits and diminishing a customer base.
Just as in cybersecurity, proper preparation is essential for minimizing the risks of social media. A few tips to remember are:
Consumers have come to expect that companies they support have a social media presence and are actively engaging with them through social media applications. In addition to the benefits of social media, it also comes with risks.
With proper skills and clear strategies many of the risks can be dealt with preemptively through knowing how to build and actively manage a company’s social media presence. Making the most of the current tools available can assist organizational leaders manage social media efficiently and effectively.
An Advanced Specialized Certificate in Social Media Marketing can help executives understand the benefits and risks of social media and aid in making more informed decisions about the role social media should play within an organization.
