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Seven Principles for Social Success and the Companies Already Getting Them Right

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In this article, you'll learn...

  • Why you should build your own Social Nation
  • Seven key rules to developing a social media strategy at your company

Let's face it: The business world is changing. Rapidly. Although the object of the game is still to drive revenue, the methods have changed. Instead of one-way interaction, business is now being conducted through constant and meaningful two-way conversations between organizations and constituents—at every stage of organizational development.

And that's a good thing.

Not so long ago, the object of the game was to be cutthroat and dictatorial about business, and it helped if you could check your emotions and personality at the door. Deep down, did most of us really buy the old "nothing personal—it's just business" line? Of course not! After all, building a thriving business is all about making lasting, personal, and reliable connections inside and outside of your company.

And these days, there's no better way to do that than through social media—in essence, by building your company's own Social Nation.

As the chairman and CEO of a company that provides social software to businesses, quite literally it's my job to be social-media savvy. Building your own Social Nation is increasingly necessary in the business world.

It's true. Your employees and your customers want to be engaged on a personal level, and not just through a survey or an annual conference. And here's the clincher: If you choose not to engage with these folks, they'll do it without you—and you definitely don't want that.

Thriving Social Nations

Examples of Social Nations are everywhere.

Today, customers choose to rely on what other diners have to say to help make decisions about where they should eat next, rather than relying on traditional restaurant advertising. Open Table, for one, has brought together a nation of diners who connect online.

Amazon has brought together a nation of readers, those who want to share feedback about books and help influence the choices of others. A community of travelers helps us select hotels that meet our personal preferences, thanks to Trip Advisor. steers us toward the stocks we should buy.

And it does not stop there. Many other companies are beginning to understand the power of creating friends, fans, and followers to build their businesses.

Why Create a Social Nation

Building your Social Nation means changing what you think it means to build a company. This emerging social era is about engaging everyone around you to redefine what you do and how you do it—including sales, marketing, R&D, customer support, and product development.

Still skeptical? Then take a look at the numbers. A 2009 study by the Nielsen Company found that employees, partners, and customers spent 17% of their online time social networking or blogging—and 83% more time in online social networks than the prior year. What's more, these constituencies are driving advertisers to spend an expected $2.6 billion on these social sites by 2012.

These statistics tell us that companies need to embrace and capture the voices of their employees and customers if they want to innovate and thrive. At the same time, customers and employees want to influence all aspects of business by sharing their opinions, criticisms, and praise with companies—and with each other.

It's becoming increasingly clear that building communities for customers, employees, partners, and investors is critical to the future vitality of business. In this new era, you can't underestimate how important emotional and social connections are, and how crucial it is to fulfill the needs and desires of customers. When you embrace the Social Nation revolution, you'll create a better, more profitable, and more viable company.

What follows are seven rules for implementing a successful social media strategy in your organization and examples of how real-world companies have put them into action.

Rule 1: Develop your social skills

Leaders in this new Social Nation are expected to follow as much as they lead, collaborating with colleagues while providing structure and support. In boardrooms and offices around the world, leaders are starting to become more interconnected, to put others' needs first, and to find motivation in helping others succeed. In short, to facilitate rather than control.

You can't expect your organization's Social Nation to be successful if you, the leader, don't think about the needs and wants of your employees and customers.

I'm reminded of Andrea Jung, CEO of Avon. She strives to make Avon a "company for women," and says it's very important to empower the company's saleswomen by talking with them about what matters to them, as well as to Avon. And guess what? Avon was one of the few companies to chart growth during the 2008-2009 recession.

Rule 2: Let culture lead your way

When building your social organization, the DNA of the company is very important; so let an open and honest culture be a guiding principle. After all, culture defines your company because it tells employees what to expect and lets customers know who you are and what you stand for.

For a great example, look at Zappos—a company that's earned success largely due to an emphasis on culture. Zappos is based around 10 core values, which all employees know and understand. Beyond that, working at Zappos is fun, personal, and social. For example, there's a Dance Dance Revolution machine in the lobby!

Most important, though, is that employees are encouraged to connect authentically with each other and with customers. They feel good about where they work—and that shows in their engagement and performance.

Rule 3: Mind your online and offline manners

How you say something—online or offline—is as important as what you say, and can make the difference in gaining fans, friends, and followers. Remember that technology connects people in faster and more transparent ways than ever!

Social media can definitely propel your company forward, especially when employees are excited and involved. Australian telecom company Telstra understands. At Telstra, social media participation is mandatory! However, the company trains each employee on how to appropriately participate, basing its guidelines on responsibility, respect, and representation. Very, very smart.

Rule 4: Listen, learn, adapt

Social intelligence enables your company to benefit from all that is happening around you—including the conversations of your constituents—so you can adapt what you do and how you do it to better meet the needs of your customers, employees, and market demands. After all, it's a good thing to understand what your customers need and want, and how they interact with your products and services.

If you have a young child, you've probably heard of Webkinz, which has turned out to be a brilliant concept by Ganz. Kids receive avatars of their stuffed animals in an online community, which allows them both to interact with other children and to care for their "pets."

But more important, Ganz is able to keep tabs on how many customers it has, how long they are online, and how they feel about the products they've bought. Using that information, Ganz is able to improve its product and its customer interaction.

Rule 5: Include others in everything you do

If you're an organization seeking to benefit from membership in the Social Nation, relying on others in every part of your company is the only way to alter what you do and how you do it, and to generate new revenue and increase profit.

Ducati personifies that strategy. In 2003, the company did away with its traditional marketing in high-end magazines and re-centered itself around community members, their needs, feedback, and conversations. Ducati made sure that fans and owners could attend plenty of rallies, races, parties, and bike shows, as well as become involved in an online community. Now, Ducati has become even more popular due to fan enthusiasm—and its products and services have improved due to customer feedback and suggestions.

Rule 6: Rely on others for growth and innovation

Friends, fans, and followers are instrumental in achieving growth in today's connected world. Instead of using the "old" method of relying on focus groups that meet behind two-way mirrors, it's time to engage customers in a two-way conversation to innovate new products and services that matter.

Consider Mountain Dew. Instead of traditional product development efforts, PepsiCo created a "DEWmocracy" campaign to decide what the next Mountain Dew flavor would be. Anyone could log on to Mountain Dew's website and play a multileveled game through which they could rack up points toward their preferred soda. Essentially, what would become the company's next soft drink was in the hands of its Social Nation. Power to the people, indeed!

Rule 7: Reward others and you will be rewarded, too

As organizations focus more and more on connections and relationships, customers want to be rewarded emotionally as well as financially. Successful businesses have to meet both needs.

Apple is the poster child for rewarding fans. Anyone can develop an app for the iPhone or iPad. Now, just three years after the release of the iPhone, the app craze has become a $2.5 billion yearly earnings extravaganza for the company—and that's just Apple's share of the rewards. Individual developers are offered a 70/30 profit division—in their favor—to create apps based on their individual views of the community's wants and needs.

You'd better believe that these folks are emotionally and financially connected to Apple—and socially connected to each other.

* * *

When you follow these Social Nation-building rules, you'll achieve the results you desire, based on customers who care and employees who enjoy what they do every day.

It's true: With open communication and all-around engagement, your company's social media and new technologies will realize new revenue sources and transform your business.

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Barry Libert is author of Social Nation: How to Harness the Power of Social Media to Attract Customers, Motivate Employees, and Grow Your Business (Wiley, 2010). He is chairman and CEO of Mzinga, a leading provider of social software, services, and analytics that improve business performance.

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  • by eleanor Wed Apr 6, 2011 via web

    Good stuff - best rules are #3 & #4. Don't let the need or "social pressure" prevent you from thinking (& re-reading) before hitting that "send" button. Never hesitate to ask others if you are unsure if something is appropriate.

  • by Dhana@Loyaltics Wed Apr 6, 2011 via web

    Good article. Rule (2) is important and that will pave the way for the rest !.

  • by Nick Stamoulis Thu Apr 7, 2011 via web

    I think a lot of companies need to invest more in rule 3. Getting your employees on social networking site is all well and good, but you have to provide perimeters for them to work in. Look at what happened when the Chrysler account accidentally dropped the f-bomb in a Tweet.

  • by Roy Young Fri Apr 8, 2011 via web

    Smart guidance. However, who "owns" social media with this ambitious agenda? Who is responsible for mastering the "rules" and accountable for the impact? Isn't social media adoption and results far beyond the responsibility of the Marketing function if it is expected to be a tool that can harness the power of employees in all functions throughout the organization? Marketing may be an ambassador and even a trainer, but to accomplish the results promised, it seems like social media usage must go far beyond Marketing. If so, what can Marketing do to not only "evangelize" but demonstrate the business case for adoption and widespread use? This may be particularly challenging in organizations with decentralized operations.

  • by Jiri Marousek Wed Apr 27, 2011 via web

    Unfortunately the Ducati example, and many others, are also examples of right intention and a slight shiny object syndrome over solid understanding of social media, digital and how key integration actually is today. Ducati launch of their recent community is a personification of that. Good thought, dated and poor execution. More here:

  • by Jiri Marousek Wed Apr 27, 2011 via web

    By the way a quick comment for Roy Young. You hit it right on the head with who is the owner and driver. The challenge is that social media has been pushed to manage to entry level staff due to the fact that senior marketing leadership frequently just doesn't get it and doesn't understand how to best integrated it into the rest of the marketing and business processes. The change needed is for executive level to understand digital, social as a tool component and even more importantly analytics and monitoring capabilities to best drive and lead how each tool is actually used and integrated.

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