Social media has helped us build relationships with more ease, while webinars, online workshops and online talk shows have connected the speaker and the participants. However, all these online exchanges have presented our generation with a problem: social media is not all it promised to be.
What is the “Network Effect” in marketing?
The Network Effect is a phenomenon whereby an increased number of users or people affect the increased value proposition of the service or good
- For example, Instagram Reels is the latest marketing trend on social media
- Users and creators understand the value of the platform through their algorithmic interaction of content
How the Network Effect impacts your everyday business operations
80% of B2B buying decisions are made on direct and indirect communication
- 20% of decisions are based on pricing and logistics
- As an entrepreneur, you should be aware of the consequences of losing your existing clientele
- Adapt to new technologies
- Add value to your social media customers and share and build relationships with your existing customer database
Make your social media more personal and reflect your unique brand
Reflect your values, beliefs, and mission to your community by communicating on your LinkedIn, Facebook, or Instagram profiles.
Reach out to your existing customers
Call, message, or set up an in-person meeting with your existing clientele
- Ask them if they need any assistance
- Show interest in them as an individual
- A simple old-fashioned chat can have an effect
Listen to your customers and have a genuine interest in your conversation with them
Everyone wants to talk and talk, but few want to listen
- Social media has several perks, and the network effect is beneficial to businesses, entrepreneurs and customers
- However, the negative side of social media is that it can create a false reality or a distorted perception of effective customer relationship management
Show up to various networking events
Webinars have become increasingly popular
- Meet and greet events in your city to network with new people or your potential customers
- Reshape and restructure your existing clientele with these new connections formed at these networking events
Follow up with new connections
If you have had an interesting conversation with people at a networking event you attended, send a follow-up message.
