Impact of Social Media on Business

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Impact of Social Media on Business

The modern societies have seen an increased use of social media channels in connecting people together via the internet. Through forums, social networks, blogs, and media sharing websites, people have made conversations online which has come to be referred to as interactive dialogue[1]. Individuals are communicating with anybody and on any subject of their interest which is critical to sharing experiences and any valuable information. On a business perspective, social media has been used in marketing as it has offered various opportunities in which organizations promote their brands, products, and services that they offer[2]. Additionally, some of the social media channels have been key in recruitment as they have been used in searching for top talent and attracting applicants for varied job positions. Some of the social media channels which have been frequently used by business organizations include Facebook, Twitter, Gmail, LinkedIn, YouTube, Instagram, Google+, Pinterest, and Slideshare presentation sharing[3]. This paper examines the use of social media by Woolworths.

Selection of Business to Investigate Within Australia

Woolworths is a big Australian company which has retail stores throughout Australia and New Zealand. In fact, in terms of revenues, it is the second largest, only after Westfarmers, a Perth-based retail-focused conglomerate[4]. In New Zealand, it is still the second largest.  Additionally, it is the largest retailer for takeaway liquor in Australia. The organization holds the post for the largest hotel and gaming poker machine operator in the Country. In 2008, Woolworths was feted as the 19^th largest retailer on the world. The organization uses a cocktail of mechanisms for its recruitment and selection processes. In some instances, it relies on the use of personal interviews whereby those selected are required to present themselves for the interviews. In other instances, Woolworths has used the internet and specifically social media channels in ensuring that it attracts a wide range of prospective candidates with varied skills and competencies[5]. The use of social media by the organization has resulted in in increased publicity for its products as well as increased sales. The following section presents the main social media channels that the organization deploys in recruitment and selection as well as marketing of its services.

The Business’ Social Media Channels and What They Are Being Used For

In 2014, Woolworths had a revenue of 60 billion dollars which is only second to BHP, a mining company, making it the largest supermarket and retailer in Australia. The organization has 872 locations across different regions of Australia. However, 91% of all Australiams reside within ten kilometers of Woolworths stores. The commerce footprint of the organization has also been impressive because of the fact that the organization enjoyed a whopping $1.2 billion worth of online sales which was a 50% rise from the previous year[6]. The following are the key social media channels which the organization uses and ways they have been used.

Facebook

One of the social media channels in which Woolworths has a huge presence is Facebook. The organization has more than one million followers which contributes to more than 6% of the total Facebook users in Australia. The page of Woolworths on Facebook is very popular. Actually, most of the users claiming that they access the organization through Facebook, making it become the brands home base. The Facebook page is used by the organization to provide updates to their followers on a daily basis whereby it posts food pictures and any special offers that it has on each day[7]. Additionally, the Facebook page has information on how the brand maintains its corporate social responsibility which it terms as ‘giving back to the community.’ Notably, the engagement of the Organization with its audience is impressive despite the content posted being fairly typical. Specifically, many of the posts made each day attract many likes as well as shares from the followers[8]. Actually, the page gets comments and posts every few minutes with many of them being complimentary. As such, through Facebook, Woolworths provides great customer experience, which in turn creates goodwill with the consumers.

Website

The organization has a website which is not only bright, but also colorful in offering critical information which helps customers and prospective consumers become comfortable when doing their shopping online. One of the interesting things about Woolworths’ website is that it has a Facebook like at top right side of the page. Although such a button was very favorable to the audience; for some, it has become unpopular maybe because customers have understood that they can go directly to the Company’s social media pages[9]. Additionally, the website has other social media icons although, due to their small sizes, they are not very noticeable. Whereas the website of Woolworths has social media icons for Facebook and other social media challenges, it lacks the Twitter icon leaving many to wonder why the situation has not been resolved. Notably, many people prefer to use Twitter compared to other social media channels.

YouTube

In its YouTube channel, Woolworths has a successful following with over 12,000 subscribers. Gauging from the followers in Facebook, this channel has lesser followers. In such an age, Woolworths posts brand-centered videos. However, many people have failed to subscribe. The most interesting thing, however, is that Woolworths has a YouTube gadget interface which enables them to not only design but also share their YouTube channel just as their website. However, such a gadget interface was discontinued in March 2015. Despite this, existing users were not left out as they were allowed to keep them until the end of the ear. It is surprising that such a feature was removed as it was becoming increasingly popular. In YouTube, Woolworths uses the channel to put together various short cooking videos which are not only appealing but also great for social sharing and viewing. However, the views of YouTube users are very low and some of the videos have even less than 1,000 views. Compared with Facebook views, YouTube is low key and thus is only a supplement to other popular channels. The argument towards this low-viewing is the fact that followers cannot go all the way to view videos in YouTube when they can do the same on Facebook.

Instagram

In over 18 months that Woolworths has created an Instagram feed, it has got over 20,000 followers as well as over 400 posts. However, the Organization was unable to wrestle another individual who had created a similar feed and which had obtained 60 followers. Notably, Instagram requires to deal with such fake feeds if they are to enjoy the presence of traditional brands such as Woolworths. However, no original content is posed on such a social media challenge as the same information posted can be found in Facebook. Pictures are the same as those in Facebook and most of photos are just taken from the account and reposted in Facebook. Posting some of the user generating content by the organization on its Instagram is a good way of engaging the audience and ensuring that the social media team are in touch with the users[10].

Pinterest

This is the last social media channel that Woolworth has a presence. Woolies has put concerted efforts towards ensuring that it posts quality content on Pinterest including pictures of beautiful foods and ideas. Additionally, it provides links which can be used to watch the videos posted in YouTube. However, compared to other social media channels, the presence in Pinterest is very low. Specifically, it has only slightly over 2,000 followers and only 400 pins. Surprisingly, even the best pin in the account does not have any significant comments or repins. Compared to other organizations offering the same products, such number of followers is very low considering that Whole Foods in US has more than 200,000 followers as well as more than 5000 pins. Apart from the food pictures pined, the social media channel should have information on ingredients of various dishes, instructions on how to cook, and any other data presented in infographics.

Analysis of How Each of the Channels Are Being Used by the Business

Of all the social media channels that Woolworths use, some are more popular than others. Additionally, some of the channels have more followers compared with other channels. For instance, Facebook has more activities than Pinterest and, therefore, has more engaged compared to other social media channels. The following is the analysis of the channels ae used by the business.

Facebook

Woolworths Facebook page has more than one million followers. Since June, Woolworths Facebook page has had 3 posts on its brands. Out of these three posts, more than 46,000 engagements with users have been done on those posts. 15, 000 engagements/posts have also been recorded over the period between June and October. In Facebook, the most engaging content type is videos whereas the day and time where most engagement occurs is Monday between 12AM and 1AM. The Organization responds to complaints or compliments made by their followers in not more than one day after the post; however, the response is not swift as some responses take several hours before any complaints raised are addressed and responded to by Woolworths[11]. However, such a tie is convenient enough considering the high number of followers as well as the thousands of followers who make different complaints and compliments via the Facebook page of the Organization.

YouTube

Since Woolworths opened its official YouTube channel which it opines to be for the fresh food people, it has more than 21 thousand followers and has posted close to 750 videos. Most of these videos are on the different foods that it offers in its stores and how users can access such foods[12]. However, the Organization does not use YouTube channel as it does with Facebook. As such, the engagement that it has on YouTube is very minimal. Users are not so much active in engaging the organization through this social media channel. Such a low popularity can be seen whereby the videos that the Organization has posted have only attracted few views hence showing the lack of interest in such videos. Additionally, the Company takes very long to respond to the complaints raised by their followers on the YouTube channel.

Instagram

Woolworths has a significant following in Instagram. Since the Instagram page was created, the entity has close to 84,000 followers and has added 591 posts. Additionally, it has followed 201 people and organizations. In the Instagram page, various posts have been made of different foods which customers can obtain from the Company. However, just like in its YouTube channel, the Organization has relatively low social media activity. Specifically, considering the following that it has on Facebook, a following of 84,000 is very low because customers are more accustomed to using Facebook as opposed to Instagram[13]. Additionally, engagement with customers is very low as a long time is taken when responses are being made to the complaints of the followers. The reason for such a slow response is the fact that the Organization is not keen on using the channel whereas customers are more focused on using alternative channels such as Facebook.

Pinterest

The 2,000 followers and 500 pins that Woolworths has in Pinterest, it does not have any much value for the organization[14]. The reason for the small audience in this social media channel is the fact that most of the users of the Company’s products might not be acquired with such a social media channels. Most of the Australians are on Facebook and Pinterest is just a channel with few followers. Having more users would have translated to more pins on any subject. However, even taking into account that fact, the channel is not working well for the Organization which begs the question as to why the channel has been considered for use.

Additional Social Media Channels That Can Be Used to Enhance Their Business and Profits

From the discussions on the various social media channels that Woolworths uses in performing different activities, it has to be established that some of the important channels are missing which, therefore, calls for the use of additional channels to ensure that the business continues to make more profits. The following are the additional media channels which the organization should use.

Twitter

Twitter is one of the most popular social media applications, which can be deployed by organizations to reach a huge chuck of its followers. It is one of the social media channels which are easy to use and does not require any skills and competencies[15]. Woolworths has conspicuously failed to include Twitter as one of its social media channels. Such an absence cannot be explained considering that using Twitter can enable the organization gain a large following and use its Twitter account to update followers on various products as well as goods. Although it joined Twitter in 2008, Woolworths has given the social medial channel a wild berth[16]. All retail stores in Australia use Twitter in communicating with followers and actively talking and listening to them. Using such a channel will ensure updated information to customers as well as the sharing of information through retweets[17]. Additionally, it will result in a larger customer clientele and hence profitability for the business.

LinkedIn

Woolworths has been accustomed to the use of personal interviews in ascertaining the suitability of prospective employees in the recruitment process. However, in the contemporary marketplace, attracting top talent has been key to ensuring sustainability and profits. LinkedIn is key to ensuring that the Organization understands the background for some of the candidates for various job positions. LinkedIn enables employers to gain information about any individuals applying for employment[18]. As such, the process of recruitment and selection will be made easier and the Company will attract top talent. Adding this channel to the list of existing channels will be critical to ensuring quality, skilled, and a competent workforce which will ensure high productivity and profitability[19].

Recommendations with a Forward Planning Strategy as to What the Business Should Do

Woolworths has been feted as one of the organizations in Australia which has a high social media presence. Social media channels such as Facebook and YouTube have ensured effective communication with consumers. Additionally, engagement has been ensured. However, the Organization has failed to ensure that social media is used for marketing of its products and recruitment and selection of employees. As such, it is recommended that the Company incorporates the use of Twitter and LinkedIn in the list of its social media channels. Going forward, more focus should be paid to the social media channels so that there is more engagement with the followers. Specifically, social media staff should have more online presence and address the concerns of the consumers promptly. When such recommendations are implemented, more sales will be realized as the clientele will continue to increase. Additionally, the business will enjoy increased profitability.

[1] Hobson, Robyn. "The integration of influencer marketing into social media strategies." PhD diss., University of Cape Town, 2017.

[2] Tiago, Maria Teresa Pinheiro Melo Borges, and José Manuel Cristóvão Veríssimo. "Digital marketing and social media: Why bother?." Business Horizons 57, no. 6 (2014): 703-708.

[3] Tsimonis, Georgios, and Sergios Dimitriadis. "Brand strategies in social media." Marketing Intelligence & Planning 32, no. 3 (2014): 328-344.

[4] Xu, Jun. "B2B Digital Enterprise and Supply Chain." In Managing Digital Enterprise, pp. 119-129. Atlantis Press, 2014.

[5] Xu, Jun. "B2B Digital Enterprise and Supply Chain." In Managing Digital Enterprise, pp. 119-129. Atlantis Press, 2014.

[6] Hobson, Robyn. "The integration of influencer marketing into social media strategies." PhD diss., University of Cape Town, 2017.

[7] Tsimonis, Georgios, and Sergios Dimitriadis. "Brand strategies in social media." Marketing Intelligence & Planning 32, no. 3 (2014): 328-344.

[8] ibid

[9] Ashley, Christy, and Tracy Tuten. "Creative strategies in social media marketing: An exploratory study of branded social content and consumer engagement." Psychology & Marketing 32, no. 1 (2015): 15-27.

[10] Hobson, Robyn. "The integration of influencer marketing into social media strategies." PhD diss., University of Cape Town, 2017.

[11] Tsimonis, Georgios, and Sergios Dimitriadis. "Brand strategies in social media." Marketing Intelligence & Planning 32, no. 3 (2014): 328-344.

[12] ibid

[13] Khasawneh, Rawan T. "Social Media as a New Emerging Tool of Marketing." Strategic Uses of Social Media for Improved Customer Retention (2016): 1.

[14] ibid

[15] Tuten, Tracy L., and Michael R. Solomon. Social media marketing. Sage, 2014.

[16] Khasawneh, Rawan T. "Social Media as a New Emerging Tool of Marketing." Strategic Uses of Social Media for Improved Customer Retention (2016): 1.

[17] Zhu, Yu-Qian, and Houn-Gee Chen. "Social media and human need satisfaction: Implications for social media marketing." Business horizons 58, no. 3 (2015): 335-345.

[18] Tiago, Maria Teresa Pinheiro Melo Borges, and José Manuel Cristóvão Veríssimo. "Digital marketing and social media: Why bother?." Business Horizons 57, no. 6 (2014): 703-708.

[19] Khasawneh, Rawan T. "Social Media as a New Emerging Tool of Marketing." Strategic Uses of Social Media for Improved Customer Retention (2016): 1.