Capitalism in the United States is shifting. In fact, the simple definition of capitalism is changing at its roots.
Technically, capitalism is the economic and political structure of a
country that is controlled by private owners for profit. Yes, the United
States is still largely controlled by companies that are focused on
profits, but calling them “private” would be incorrect. With the advent
of social media, no successful company is truly private in the truest
sense of the word.
Companies must change to meet the requirements set forth by social
media to be successful. If they ignore these changes, consumers might
stop respecting them, or they might simply forget the company exists.
To stay on top of the shifting wave social media is thrusting upon
capitalism, companies must ensure they take the following into account:
* Transparency
Social media has forced companies to become more transparent. There
are few secrets, no matter how large your company may be. Every step of
your production process and every ingredient in your product is public
information, thanks to the power of social media. It has set a new
standard. If your company posts the secrets behind your business’
practices, they need to be perfect because people will read them. If
your company doesn’t release such information, your customers will
assume you’re hiding something and your reputation will be marred until
the information is released.
Companies now have to work harder to ensure consumers are impressed
by their transparency. Many have had to improve their business
practices. These improvements fall into the following categories:
* Employee treatment - Large companies should make sure
employees are treated fairly and without discrimination both in the
workplace and during the hiring process. Companies like Zappos have
improved sales by making such information readily available, whereas
companies like Wal-Mart have suffered.
* Sustainability – Companies that produce a lot of
goods need to prove their practices are sustainable and green. If
resources are wasted, they will lose business and could even face legal
issues.
* Product Quality – Gone are the days when consumers
stuffed their faces with burgers and ice cream without asking what’s
inside. Companies that don’t make their ingredients public are perceived
as suspicious and will likely fail. Companies that make this
information available to consumers, however, are viewed favorably.
* Customer Service – Poor customer service has
always been risky for businesses. A bad experience at a retail location
or restaurant often spurs the unhappy customer to tell friends to never
visit the offending store. Most of the time, the friends listen.
However, social media has brought this concept to new heights. When one
of your patrons leaves your location in a huff, he or she can share that
anger with every one of your followers or Facebook friends. Even if the
customer’s complaint is the shipping time or your online ordering
system, he or she can easily make you look bad in front of potential
customers.
While the potential for criticism is intimidating, social media also
allows companies to show off their outstanding customer service, which
is a good way to gain support from customers. If someone writes a post
about a bad experience, your social media marketing team can address it
immediately, and your team’s response will be just as public as the
complaint. Some customers might also write a post about their great
in-store experience, so putting the customer first is an important part
of the new social media capitalism.
* Consumer Responsibility
Social media’s influences on the capitalist structure have given
consumers a voice. Obviously, this works in their favor, but with great
power comes great responsibility.
Consumers must actively weed out the bad companies based on their
social media presence and collectively work toward supporting the best
companies and boycotting the worst.
For example, many customers got behind PETA when the CEO of
GoDaddy.com Bob Parsons posted a photo of himself to Twitter. The photo
was taken right after he had shot an elephant in Africa. PETA started a
boycott and many customers followed its lead, moving to different
hosting sites. Moving your entire website to another host isn’t easy,
but these consumers felt it was necessary to do so. Before social media
was an option, CEOs could do whatever they pleased and no one knew about
it.
Social media is giving consumers a strong voice for the first time.
Capitalism is, technically, an economic system run by a few huge
companies, but now consumers have a say in how those companies are run.
People can actually control the way these companies act by voicing their
opinions and their complaints on social media sites. At the same time,
companies have become more honest and many have improved their business
practices to impress fickle consumers. There are no more secrets in the
capitalism of America, so businesses need to shape up to succeed.
Whether you like it or not, this gradual change will affect your
business. You might think you can hide from the wave of social media
but, by doing so, you’re only digging your own grave. Instead, embrace
social media marketing and get your company’s name out on as many sites
as you can. Get more fans, followers and connections, and then make sure
you keep your business as honest and respectable as possible. Once
you’re on these sites, you are broadcasted 24/7, so don’t slip up. Hire a
knowledgeable social media team to make sure any problems are dealt
with quickly and correctly.
While it’s frightening to put your business in the limelight, hiding
from social media will cause consumers to question your company’s
practices and you will lose business.
Deny Saputra Post from: SiteProNews
