Is social media viable?

Every once in awhile a question comes up on LinkedIn and I feel compelled to add my two cents worth. Most recently it was a question that came up in a food manufacturers forum. There were about 10 other answers before I added my thoughts. If you’d like to read the entire discussion, here’s the LINK.

How do you feel about the potential viability of "social media" communications in the food service channel?

The fact that we can have this discussion on a social media site IS pretty promising. And yes, I agree with the comments about it being more difficult to figure out the B2B strategy as opposed to the B2C one. But, I believe our industry needs to figure out an overall social media strategy (and soon) because consumers (both operators and ultimate end-users) are getting information differently than they did a few years ago.

As manufacturers, what we need to understand is social media is about communication. People are having conversations about our company, our industry, and our brands. They're talking about us 140 characters at a time. Some of the talk may be good. Some of the talk may not be as positive. But the talk is happening.

One of the questions I am asked by my peers is, "how do you monetize social media?" Since you can't measure the ROI on an investment in social media the same way you can measure the investment in a new piece of manufacturing equipment, most manufacturers seem hesitant to commit.

Personally, I think it is because they don't fully understand the dramatic changes in communication that have taken place over the last few years. And of course, there is always the comment about, "why would I care that you are standing in line at the grocery store waiting to check out? Do I really need to know that much about your life?"

10 years ago I would have answered, "absolutely not!" But today, yes, I want to know that you are in a grocery store. Not only that, but I want to know WHICH grocery store you are in, and if you geo-tag your tweets, even better because I will then know in what state and city you're currently located. And, if I have a coupon going with that particular grocery store where you are standing in line to check out, I can send you a quick little note to remind you to purchase my item and take advantage of the coupon.

Communication.

We, as an industry, need to figure out how to communicate more effectively with the actual people who are purchasing and using our products. Then, we will see the monetization of social media and the more traditional return on our investment dollars.

I ended my response there, but I apparently I had more to say on the issue. Here is what I haven't added to my LinkedIn response...yet.

The foodservice manufacturing industry consists mostly (if not entirely) of digital immigrants. We, myself included, grew up without instant access to information. My first computer had to be started with a 5 ¼” floppy disk, and I needed to know how to write DOS to get the computer to do ANYTHING.

The young men and women coming out of college today, our children, are digital natives. They have never known anything other than instant access to information. They embrace transparency in every aspect of their lives, because that is all they have known. The Internet has provided them a way to find out almost anything. Want to find out the annual sales revenue for a privately held company? It’s out there and available if you can ask the right question. Want to read classified communications between government agencies? You can find that too. Want to see how intoxicated “Jamie” was at last weekend’s house party? There are probably pictures and a written account of the actions online.

These “natives” live in total transparency and expect everyone (companies, brands, products and even government) to be just as transparent…just as honest…just as raw. If you want to know an opinion, just ask them. They won’t hesitate to tell you.

Over the years, I have spent small fortunes on market research…polling groups about a label design or a flavor combination. With the advent of social media and sites like Twitter and Flickr, I now have a much bigger audience to poll, and will have instant feedback from that audience. And, I will have access to this information at a minimal investment cost.

Social media is a tool. It’s a way for us to communicate. It can be used effectively by the foodservice manufacturing industry, for both B2C and B2B communications. But we as an industry need to understand the way we do business is changing...140 characters at a time.