Social Media

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The Truth About Behavioral Change

  • Research Feature
  • Read Time: 14 min 

In this article drawn from his new book, How Behavior Spreads, UPenn professor Damon Centola explains how the thinking about social networks is changing. Recent research reveals that depending on long-established concepts such as “weak ties” and “long bridges” to drive the adoption of new innovations and organizational change can be a prescription for failure.

Twitter Is Not the Echo Chamber We Think It Is

  • Frontiers

  • Research Highlight
  • Read Time: 7 min 

The popular perception of Twitter as a social media “echo chamber,” where people only receive and retweet opinions that match their own, does not reflect the data about users’ actual engagement. The average Twitter user propagates more mainstream content and follows a diverse group of users — and this has implications for social media marketing.

Managing the Distraction-Focus Paradox

The seductive clamor of social media is a workplace reality from which there’s no retreat. Those who’ll succeed in this distraction-filled world as managers and innovators must combine two seemingly opposing traits: They must to be able to absorb information from many sources and to focus intensely. Together, these apparently contradictory qualities comprise the skill set for managing your most valuable personal resource — your attention — in a hyper-connected age.

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Who Gets Caught in Online Echo Chambers?

Echo chambers — that is, exposure to information that closely mimics our own experiences and points of view — are burgeoning. In the online world, personalization algorithms lead to even more personalization over time. New research that looked at the way people navigate through videos of TED Talks highlights which types of people are most at risk for falling into extreme echo chambers. The research also suggests ways organizations can help content viewers navigate the noise.

When Employees Don’t ‘Like’ Their Employers on Social Media

When employees are not fans or supporters of the company’s products on social media, it sends an ambiguous message and could deprive the company of potential supporters. Employers can counter this by encouraging their “digital native” employees to become brand ambassadors for the company.

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Can Social Media Cultivate Long-Term Loyalty?

If your brand is on Instagram or other social media platforms, your current followers are likely also your future customers. Engaging them now, and continuing to keep them engaged, can influence the likelihood of maintaining – and reaping the benefits of – their long-term loyalty.

Are You Using the Return on Investment Metric Correctly?

  • Blog
  • Read Time: 3 min 

The biggest challenge with ROI isn’t a technical deficiency but confusion over how it is used. “To calculate ROI accurately, you need to be able to estimate the fraction of profits attributable to the investment,” write Neil T. Bendle and Charan K. Bagga. “In order to calculate ROI, there must be a return (a profit associated with the investment) and an investment. Unless you have both, you cannot calculate ROI.”

How Should You Calculate Customer Lifetime Value?

  • Blog
  • Read Time: 3 min 

Should marketers subtract the cost of acquiring a customer before assessing that customer’s lifetime value (CLV)? Most of the time, no. “CLV is easier to understand, and in our view more useful, if marketers don’t subtract the acquisition cost from their calculation of CLV before reporting it,” write Neil T. Bendle and Charan K. Bagga. “Imagine that a company is selling an old machine. In this scenario, the company’s managers would expect to receive the machine’s current value, not the current value less what the company paid to buy the machine when new.”

Should You Use the Value of a “Like” as a Metric?

  • Blog
  • Read Time: 3 min 

Social media strategy shouldn’t be seen as the driver of value difference between a company’s fans and nonfans. Fans are often more favorable toward a brand to start with than nonfans are — indeed, this is probably what motivated them to affiliate in the first place. As well, social media spending should not be justified by an observed difference in customer value that may not have been caused by social media spending. Instead, to understand social media marketing’s impact, companies should run randomized experiments.

Should You Use Net Promoter Score as a Metric?

  • Blog
  • Read Time: 5 min 

The net promoter score (NPS) has become one of the most widely used marketing metrics. Consumers answer a simple question (How likely is it that you would recommend X?) on a scale from 0 to 10. Customers who answer 9 or 10 are considered promoters; those who answer 6 or less are rated as detractors. The score is the percentage of promoters minus the percentage of detractors. One of the strongest selling points of NPS is its simplicity. But the value of NPS may depend upon whether a manager sees it as a metric or as a system.

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Should You Use Market Share as a Metric?

  • Blog
  • Read Time: 5 min 

Market share is a hugely popular metric. But is it really useful? Companies with superior products tend to have high market share and high profitability because product superiority causes both. This means that the two metrics are correlated — but it does not necessarily mean that increasing market share will increase profits. Using market share as a metric of success simply because other companies do can be counterproductive.

Customizing Your Social Strategy to the Platform

  • Opinion & Analysis
  • Read Time: 2 min 

Companies that want to draw innovation ideas from social media need customized approaches. An approach that works on Facebook, for example, is different from one that works on LinkedIn. Companies also should emphasize the “social” by helping users create or enhance relationships. Companies that do this often benefit through people’s subsequent engagement with the company’s online innovation activities.

Getting Product Development Right

The Spring 2016 issue of MIT Sloan Management features a Special Report on new product development. Articles include “Why Great New Products Fail,” “Finding the Right Role for Social Media in Innovation,” “Developing New Products in Emerging Markets,” “Why Learning is Central to Sustained Innovation,” and a look at the opportunities presented by the Internet of Things, in “Now That Your Products Can Talk, What Will They Tell You?”

Finding the Right Role for Social Media in Innovation

Social media provides a game-changing opportunity to support new product development. But taking advantage of the opportunity requires more than just a Facebook presence with a loyal base of “friends.” To use social media for innovation, organizations need clear strategies and objectives. They also should look beyond social media used by the general public to lesser-recognized platforms, such as special user forums or expert blogs, for especially valuable user-generated feedback.

Showing 1-20 of 72