Boost your business with the concept of enterprise 2.0

Through appropriate and effective utilization of web2.0 tools, business owners can generate enormous revenue by a considerably small amount of expense, comparing to traditional advertising, and the latter might not even productive.

While a lot of companies started to dip their toes into this emerging environment of social media, not so many can make good examples of successfully promoting the brand and products, and increasing customer retention.

So what’s the reason? It might not be easy to answer such a question. But through the case study of success instances might give us some insight about how to cleverly utilize social media to reach desired outcome.

Increase customer retention, and get referral

-American Express OPEN on Facebook Page

American Express OPEN facebook page demonstrates a good way to encourage participation

Through the strategic collaboration with Facebook, American Express has created one active forum for small business owners and managers to interact with each other by sharing successful stories and competing for the prize. Their fan page on Facebook has effectively attracted enormous number of users through the following great features that align well with the business models outlined in Don Tapscott and Anthony D. Williams’s book, Wikinomics, :

1.      Peering: Encourage ongoing engagement from customers

Through regularly posting inspiring quotes and interesting word games such as “fill in the blank”, Amex effectively encourages customers to participate and leave their comments. While the majority of active participants are small business owners, the fan page is an ideal platform for them to get exposure and interact with potential business partners or competitors.

Amex successfully encourages ongoing engagement from users

 

2.      Acting Globally: Make a win-win situation

Amex regularly launches contests called “Big Break” for small business owners to win the prize of fund and marketing support. While the participants try their best to encourage their customers to vote, it indirectly increases the exposure of Amex and helps to accumulate fan base.

Amex offers a range of useful social media tools and tips

3.      Being Open & Sharing: Effectively establish strategic partnership

Small business users can find a lot of useful strategies and tools for integrating their business with social media through Amex’s Page, together with their integrated partnership with major social media such as Facebook and Twitter, customers can further benefit from rewards like free advertisements opportunities on Facebook.

strategic partnership among Amex and Twitter

Make your customers actively participate in the community by cleverly encouraging discussion and thoughts sharing. There are many famous fan pages which have huge amount of users “Like” them, but only a few active users are “talking about them”. When the customers are willingly engaging in the community, the potential retention (customers keep purchasing the products) and referral (customers recommend the products to their acquaintance) may be expected.

Maximize the benefit of Open Innovation

-Millennium Pharmaceuticals

Millennium Pharmaceuticals started as a young company providing the service as Contract Research Organizations (CROs) to supply information or analysis of biological compounds to pharmaceutical manufacturers. While CROs have no control over the knowledge which they generate from work, Millennium jumped to a new business model, by which Millennium retains all the ownership of intellectual property and can license to other companies or use in another market.

Through this approach, the potential value of intellectual property would not be limited to specific firm and thus can encourage productivity and collaboration in the whole industry.

 

1.      Peering & Sharing: Open innovation encourage knowledge sharing

By retaining the ownership of intellectual property (IP), Millennium can fully utilize the value of it and further encourage the sharing of knowledge among potential customers or competitors.

 2.      Being Open:

Under the model of open innovation, the intellectual property is no longer kept in core business but can be applied to different target markets. Millennium has created a win-win situation for both pharmaceutical manufacturers and itself by unleashing the value of intellectual property and enhancing positive collaboration.

The potential value of intellectual property can be boosted through sharing and collaborating. While the larger pharmaceutical firms can acquire the desired intellectual property at a lower cost, Millennium retains the freedom of utilizing specific intellectual property to generate extra revenue.

 

Reference:

1. How American Express Grows Its Massive Social Media Presence

2. American Express® Social Media

3. How American Express Found Its Social Media Groove

4. 3 Things American Express Can Teach You About Social Media

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7 thoughts on “Boost your business with the concept of enterprise 2.0

  1. Nice post Edie.
    Corporation may use some social media to arrive their final goals. Besides, these approach just support their company a kind of way. Company final goal that is successfully promote their brand and products!!

    • Yeap!
      what interests me more is the way that Amex chose to encourage their customers to bring more potential customers to them. It is very impressive that the technique they applied simply work and pay back enormously!

  2. Wow Amex has really gone all out on their Facebook Page that’s amazing, it shows that they care a lot for their customer and client base as well as giving small business’s a chance!. I found your post quite interesting to read ! 😀

  3. Hi Edie, I had dropped a comment on your old blog, only to realise that it has been shifted.
    Anyway, this is a great post!

    I really like the two examples, especially the Twitter one – the fact that even facebook, had allowed them to do an advertisement on their social platform even though the two are meant to be obviously in the same industry -being social media..

  4. Hi Eddie, definitely a very interesting post, I agree with you that that nowadays small business users are often integrating their business with social media such as the case of Amex’s page. I think that last years companies alliances have became more popular and social media tools are a valuable complement. As you said customers can further benefit…. With this changes we as customers are the beneficiaries.
    I really like your post, congratulations!!

  5. Hi Eddie, such a great article!
    very interesting to know about the strategies elaborated by companies in order to attract audience and build a database fan! It is a real bargain for them !
    some companies just content themself to create a raffle where you have to like or follow the company page in order to participate. It works anyway !

  6. Hi Eddie, this is a really helpful post! I think nowadays, not only small business but large enterprises as well uses social media to let customers feel closer to them (eg. sony, samsung, etc has their own twitter or facebook page). It’s becoming a great way to bring information and appeal to the customers by making them feel more in touch with the company. Looking forward to seeing more great articles from you!

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