Are You Here On Social Media Or Business?

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Social Media – once known for its objective and mission statement to connect people; has now become the worlds most significant market space with 16 Million local businesses worldwide using social media as a revenue platform.

But this leaves the question.

What are the best business models to use for the four facebook customer segments to create value in the future?

As stated by Professor Micheal Rappa, business models have been defined and categorised in different ways. However, it should be noted that business models will reinvent and evolve in the coming years. Meaning different segment groups may respond to tactics used for other consumers groups if the model changes.

Monica Alexandra Hodis illuminated that four Facebook Customers, known as attention seekers, devotees, entertainment seekers and connection seekers occur. Each customer segment has a tactic which would best attract each customer.

1. Attention Seeker 

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2.   Devotees

  • High Consumption and Creativity.
  • Uses Brand Ambassadors.
  • Devotees strive for a deeper connection with their social network and tend to spend more time on social media, creating a higher involved segment. I believe that this segment would also benefit from using competitions and advergaming due to their desire to be immersed in social media content.

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3. Entertainment Chasers

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4. Connection Seekers

  • High consumption and low creation.
  • Uses events and groups to engage.
  • They are driven by the desire to connect with family and peers and use the network to enhance their connections with formed networks. This customer segment would also benefit from competition/advergaming due to connection seekers needing to be nurtured and connected to others. 

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As stated by Todd Cope, the most significant criticism of these four segments is that consumers may not fall into one category or may interchange between both. I feel this means that companies may find it hard to create and extract value from their customers if Facebook consumers do not identify with one segment.

Due to the implication noted by Todd Cope, these business models would need to be picked carefully for the social media community to extract value from the businesses who provide them with the service.

Currently, Facebook uses an advertising model in which collects revenue from businesses and individuals wanting to advertise their platform and boost their profile. These business models tend to only work for attention seekers and devotees who would like to promote themselves. 

How can social media business models create value for all customer segments in the future? 

Facebook could further collect revenue by using subscription models and brokerage models for its marketplace that can be used by all consumer segments. Engagement tactics used to attract each segment could allow each consumer the opportunity to have access to a service or product constantly. While also advertising entertainment, products, and events through one portal, would create extended value, while also extracting uncapped revenue for businesses on social media. 

Do you believe subscription and brokerage models can be used by consumers on facebook? 

Comment Below to let me know!

6 thoughts on “Are You Here On Social Media Or Business?

  1. Interesting thoughts. What exactly do you mean by Brokerage and subscription models? Is this a subscription to advertise a product or boost a post?
    I have noticed that my main buying and selling activities on facebook are not professional settings, they mainly consist of buy and sell groups and the facebook marketplace. I feel it is more a competitor to Gumtree than to Amazon at the moment. I also find that Facebook pages often are boosting pages to promote an event or their own business rather than a specific product. Or maybe I’ve just missed those boosted ads as I do have an adblock.

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    1. Hi James!

      Good question! I feel that brokerage models could be used within Facebook market place, by introducing a small transaction fee for advertisement of product and the subscription model could be used for internet purposes such as Netflix on Facebook! where the consumer can interact with their friend watching a movie like they would if they were together.

      Facebook boosting is generally used by small businesses to boost advertisement of a product, event or the businesses own page. However, I know that some bloggers boost their own “pictures” to gain a further reach to influence more people and make themselves recognised. I myself have worked on a Facebook business page and find that you can boost a product image, as well as the business page itself. IIt’sinteresting to know that Adblock exists for Facebook! that’s definitely something I have learnt today.

      Thanks for your feedback! 🙂

      Best Regard,

      Dempsey

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  2. Hi Dempsey!
    Good post and analysis of a potential future opportunity for Facebook.

    I just had a few questions regarding the utilisation of a subscription model. Do you think Facebook customers will be willing to pay a fee to subscribe to these services when there is already external businesses like Netflix? And if so, which of the four customer segments would be most willing to subscribe?

    Thank you 🙂

    Liked by 1 person

  3. Hi Laura!

    I feel that customers would be willing to pay a fee if the value of joining facebooks services is more than the value received from external businesses. Out of the four Facebook segments, I feel that this could apply to devotees who would embrace the change and report how wonderful it is to the word. Entertainment chasers, who could talk to other entertainment chasers creating a conform group of “lovers of entertainment” also creating the incentive to use the platform more and connection seekers who want to connect with peers.

    Thanks,

    Dempsey

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  4. Hi Dempsey,

    Great analysis of the 4 audience segments of Facebook. As a business using Facebook to drive awareness, would you recommend targeting just one segment, such as the attention seekers who have a large following already, or is it best to use a multi-segmented approach?

    Also, do you think the target segment differs depending on the type of company your are promoting (e.g. charity versus clothing brand), or is there a specific segment that you should always target regardless?

    Thank you 🙂
    Nicole

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    1. Hi Nicole!

      It is said that targeting a narrow segment is the best approach to engaging a wide audience. However, I feel that a multi – segment strategy is worth while to engage with each segments quirks in order to reach a wider audience. The audience will indeed differ per company; I think the best approach is to choose a main segment, create content around that segment and find little ways to include other segments.

      Hope that answers your question,

      Thanks,

      Dempsey

      Like

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