Q11-8 How Can Social Media IS Support Business Processes?

Question 1

What are some business processes that rely on Social Media Information Systems (IS)?

Answer 1

Promotion
Customer Service
Product Design
Knowledge Management
Sales Lead Management
Hiring

Question 2

What percentage of large companies report measurable business benefits from using social media?

Answer 2

Over 90%.

Question 3

List the business processes supported by Collaboration IS.

Answer 3

Problem Solving
Decision Making
Telemedicine
New Product/Location Selection
Strategic Planning
Sales
Brainstorming
Training
Promotion
Healthcare
Financial Services
Project Management
Workflow

Question 4

How does social media help businesses build trust?

Answer 4

By allowing businesses to be authentic and personal in interactions, fostering customer trust through transparency and engagement.

Question 5

Describe the “promotion process” supported by social media.

Answer 5

Sharing data to improve awareness and sales.

Moving from broad customer targeting to personalized, narrow group messaging.

Leveraging customer data for targeted advertising and performance measurement.

Question 6

What metrics can social media provide for evaluating promotions?

Answer 6

Click-through rates

Number of ad displays and clicks

Conversion rate (percentage of users who take desired actions, e.g., making purchases)

Question 7

What are the two key characteristics of social media consumer promotions?

Answer 7

Network Effect: A buzz attracts more people.

Trust: Consumers trust recommendations from friends more than businesses.

Question 8

What are some examples of key objectives and KPIs for business processes supported by social media?

Answer 8

Promotion:

Objective: Engagement, reach
KPI: Followers, clicks, retweets

Customer Service:

Objective: Faster communication
KPI: Callback time, contact volume

Crowdsourcing:

Objective: Ease of input, idea quality
KPI: Time required for input, number of ideas accepted

Question 9

Give examples of social media campaigns and their impact.

Answer 9

See Jane Work: Used Instagram for targeted shopping, leading to convenient online purchases.

Minneapolis (TikTok): Educated about COVID-19 dangers through entertaining content.

Wendy’s: Gained 3M+ followers with engaging content, driving customer feedback and loyalty.

Tropicana: Boosted ad recall by nearly 20% with creative stories on Instagram.

Question 10

What is the customer service process supported by social media?

Answer 10

The customer service process includes activities before, during, or after a sale to increase customer satisfaction.

Social media provides new ways to enhance customer service, such as rapid response and personalized communication.

Question 11

What percentage of customers expect a reply to a bad service experience tweet within an hour?

Answer 11

Nearly 80%.

Question 12

What percentage of consumers have used social media for service requests?

Answer 12

67%.

Question 13

How does Amazon utilize social media in its customer service process?

Answer 13

Amazon involves trusted reviewers to create reviews for new products before public release, helping build trust and provide customer insights.

Question 14

How do hospitals use social media to support customer service?

Answer 14

Hospitals use platforms like CarePages and CaringBridge to allow families to share medical updates and receive supportive messages from friends.

Question 15

What is notable about Xbox’s use of social media for customer service?

Answer 15

Xbox responds to live gamer issues on Twitter with an average response time of 2 minutes and 42 seconds, one of the fastest in the industry.

Question 16

How has Zappos leveraged social media for customer service?

Answer 16

Zappos maintains an average response time of under 20 minutes.
75% of purchases come from returning customers.
43% of new customers hear about Zappos through word-of-mouth.

Question 17

What growth and recognition has Zappos achieved through its social media efforts?

Answer 17

Zappos experienced 600% revenue growth over six years, received industry awards, and gained significant publicity for its outstanding customer service.

Question 18

What is social capital in the context of social media IS?

Answer 18

Social capital is the investment in social relations with the expectation of returns in the marketplace, such as building connections, reinforcing relationships, and leveraging networks.

Question 19

What are the three types of capital defined in business literature?

Answer 19

Traditional Capital: Investments in resources like factories, machines, and equipment.

Human Capital: Investments in knowledge and skills for future profit.

Social Capital: Investments in social relationships to generate returns.

Question 20

How does taking a class represent an investment in human capital?

Answer 20

By spending money and time to gain knowledge that differentiates you in the workforce and potentially leads to higher earnings.

Question 21

What are the three objectives of building social capital?

Answer 21

Increase the number of relationships in a social network.

Strengthen existing relationships.

Connect to individuals or entities with more resources.

Question 22

How does social media IS help increase the number of relationships?

Answer 22

By providing platforms like LinkedIn or Facebook that facilitate networking, attracting potential connections, and enabling organizations to expand their reach.

Question 23

How does spreading relationships within a network amplify social capital?

Answer 23

As sponsors and donors share connections, the reach expands exponentially, leveraging word-of-mouth to build more relationships.

Question 24

What defines the strength of a relationship in social media IS?

Answer 24

The strength is the likelihood that an entity will do something that benefits the organization, such as buying products, leaving positive reviews, or sharing content.

Question 25

How can organizations strengthen relationships with customers?

Answer 25

By building trust through positive interactions and engaging content.

By asking customers to do a favor, as outlined by Benjamin Franklin’s principle, which strengthens the bond and establishes trust.

Question 25

What is the third objective of social capital in social media IS?

Answer 25

To connect with individuals or organizations with greater assets and to build relationships that are more valuable based on relevance and mutual benefit.

Question 26

Why is the value of a relationship more important than the quantity in social media networks?

Answer 26

A smaller, highly relevant audience (e.g., retirees for a product targeting older adults) can be more valuable than a larger, irrelevant one (e.g., students for adult diapers).

Question 27

How does social media IS support the emergence of new processes within organizations?

Answer 27

By enabling innovative processes like crowdsourcing, where tasks are outsourced to a broad audience via social platforms.