Web 2.0 offers an unparalleled opportunity for businesses to compete and thrive in a time of mounting economic difficulty – yet incredibly many have little idea of what 2.0 means. Far too often, it is dismissed as a buzzword – but it could hold the key to the survival of many businesses as the slowdown kicks in.
Today businesses are challenged by a global slowdown in the economy, rising inflation, severe talent shortages, cheap imports from the East, the rise of the knowledge worker and a new tech savvy generation Y entering the economic landscape. Also, for the first time, user driven web 2.0 technologies are changing the balance of power between the corporate and its stakeholders, be they consumers, employees or the public.
The last few years have seen the launch and successful rise of creative online businesses offering clients faster and cheaper solutions that they would have previously looked to traditional outlets for. Sector after sector is benefiting from the speed, efficiency and cost-effectiveness of online services, and increasingly, crowd-sourcing and collaboration enabling innovation in new categories and market sectors.
The initial reaction of many big businesses was to batten down the hatches and prepare themselves to ride out this “Facebook craze” which was wasting employees’ time. Now, the recession looms large in the minds of marketers, the industry is experiencing a noticeable shift in attitudes towards web 2.0 and the new business models it enables.
The “network effect” is becoming ever more important in that for every additional member of a community; the greater the value to each of the community members, and this is fundamentally changing the business models. No longer are communities just “eyeballs” to be advertised to they are now dynamic and demanding sources of revenue.
Businesses are reaching out to online communities to deliver efficient, effective and economical solutions. Perhaps most notable is the range of industries that are embracing such alternatives. All evidence is pointing to web 2.0 being an even more remarkable opportunity than even the most fervent of supporters may have thought.
This is a fascinating time to be in marketing. As we grapple to find ways to do more with less, the smart decision makers are expanding their horizons to include more creative and resourceful solutions to their business challenges. In a broad sense, this means that digital and PR solutions are being implemented to a greater degree than ever before, even replacing some pricey traditional executions. From a sourcing standpoint, marketers are engaging with open-source models, where they’re finding increased return on their investment, as well as global input on their brand.
It will be interesting to see what kinds of businesses are born out of this increased willingness to explore non-traditional models. What other industries will change because necessity, does, in fact, breed creativity?
As businesses continue to adopt these tools, decision-makers looking to leapfrog the competition need to move fast. Web 2.0 tools are being adopted in companies across all industries, and any business which fails to recognise that runs the risk of being left behind.
Consumer Web 2.0 technology is a real force that is changing how business is getting done, and any company looking to improve performance should be taking a closer look at how it can benefit from driving business the Web 2.0 way.
Social media and networking sites provide the platform for companies to collaborate, share information and expertise and market their goods. In fact, all over the web, communities of like-minded firms are supporting each other with advice, swapping internet links and trading together.
The interactivity of Web 2.0 also allows an authentic and direct line of communication between a company and its customers – invaluable any time, but essential in the light of the challenging business environment.
The tools of Web 2.0 – blogging, podcasting, photo and video sharing – have been adopted by millions of consumers because they are simple and powerful communication methods. For that reason, they are ideal for businesses to use in their marketing strategies.
A company that is prepared to engage in an open, honest dialogue, whether it be through a blog or video, with its customers, is being sensible and shrewd. These days very few consumers are prepared to just listen to announcements and one-way broadcasts without being able to give their feedback.
However, there are still far too many companies which have not tapped into the rich potential arising from web 2.0 because they either are not aware of it or feel it is irrelevant or too complicated or they underestimate its power.
This reticence may be in part explained by existing attitudes to the internet generally. Many businesses are not seeing a measurable return from their websites or online marketing and sales.
There are good reasons for this. Running a website can be a costly, complex business that often requires the support of third parties to build, maintain and market. Many organisations regard their website as a brochure for the organisation and have not contextualised in the business strategy as a whole. Larger businesses to use paid search and display ads supported by a comprehensive Search Engine Optimisation strategy to ensure a good Google rating.
If we put the problems of traditional online marketing alongside the growing importance of the internet as a research and purchasing medium for consumers, it becomes apparent that we desperately need to find a better way to promote ourselves online. This is where Web 2.0 is vital.
To attract customers, it is necessary to participate in online “communities” relevant to your business. That also means engaging in an ongoing, meaningful dialogue with customers on interactive networking sites about products, prices and service.
The social web has changed the landscape of e-commerce forever. Audiences are fragmented and this means customers are harder to reach but they are surfing the web for information about goods in ever-growing numbers before buying. If these trends continue, then any company wishing to succeed has to embrace the interaction encapsulated by Web 2.0 to build strong, trusting relationships with its customers.
Businesses can benefit from the power of social networking precisely because the tools of Web 2.0 are well suited to the personal and conversational marketing style that already works to their benefit offline.
Firms large and small have started to take part in social networks and internet communities but the results are mixed. Some are successfully attracting customers and boosting the bottom line, others are not. Of greater concern is that most have not taken the plunge at all with many approaching the internet in general with apprehension.
These businesses should realise that Web 2.0 offers relevant and powerful tools for them to promote themselves and build an online brand. They should stop hiding – and start using it to their advantage.
Kate Elphick Digital Bridges
1 Comment
July 12, 2009 at 3:55 pm
Great article Kate! The more I think about it the more it feels like Web 2.0 is the great playing field leveller between small companies and giant organisations. Even more positive is that at the end of the day is that it gives back the power to the consumer who over the years has become so very ignored, for shame…