The Difference between Social Media and Social Networks for Businesses

It is important not to confuse social media and social networking — both terms are used interchangeably — with e-commerce, says Alan Radding, business finance blogger. With e-commerce, you put up a Web site for the purpose of conducting business, making sales, and generating revenue.

Social media is not overtly transaction-oriented. Rather, it revolves around content-driven marketing. For example, one large consumer packaged-food company put up a social media Web site. It does all the expected customer service things through the site, includes discussion forums for use by its customers, offers recipes and enables customers to share recipes, and provides ask-the-experts forums on related topics — all content-driven. However, the one thing you cannot do through the food company’s social networking site is actually buy its products. The closest it comes is providing a way for visitors to download discount coupons.

Social media generally avoid explicit commercial transactions. Instead, you create content with social media to build the business and the brand, everything from recruiting talent to rallying the faithful to countering bad news. (It will be interesting to see if and how Toyota leverages social media to rebuild its brand.)

With that in mind, here are 6 content-driven things that any business can and should do with social media:

(1) Establish presence. With hundreds of millions of active participants (Facebook alone has several hundred million registered users), you want continuous visibility among the people who are important to your business, be they customers, partners, or other stakeholders.

(2) Build rapport and relationships with specific audiences. Cultivate relationships with your important stakeholder groups through two-way communication.

(3) Establish your business as a leader and authority, by providing helpful and insightful content that can’t easily be found elsewhere, information people want.

(4) Engage prospective customers and partners interactively. Invite feedback and input, and be responsive, attentive, empathetic, and supportive.

(5) Listen and learn from your customers, supporters, and all your various stakeholders. Encourage constructive criticism, conduct surveys, and solicit suggestions.

(6) Build brand and company loyalty. Social media is an ideal vehicle to grow whatever loyalty initiatives your organization engages in.