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
- High Creativity and low consumption.
- Uses Celebrity endorsement.
- Usually, posts content to gain gratification from peers and will use social media when needing stimulation. Social media n’ stuff states that “They would also be the easiest to turn into brand ambassadors” I agree as this would also fulfil the attentions need for gratitude.
- 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.
3. Entertainment Chasers
- Low consumption and creativity.
- Uses Advergaming (A game in which includes advertisement of a product, service or company) quizzes and competitions to engage segment.
- Entertainment chasers tend to have some time on their hands with low consumption and creativity. They tend to use social media as an entertainment mechanism to stimulate themselves.
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.
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!