In my article " A Digital Engaging Economy, The New Stock Exchange", I talk about how digital engagement has become a value that we exchange, and if that's the case, then our digital platform is the new stock exchange on which we trade with engagement rather than a commodity. In this follow-up article, I look at what affects stock prices in the traditional stock exchange platform (NASDAQ, DOW Jones, etc.) and compare it to how our social marketing platform work and how the basic principles in leading stock exchange platforms apply to social media platforms.
When it comes to our business, social media marketing efforts, the dynamic of a stock price, is in many ways very similar to social media marketing in the sense that it's not all predictable and can be scientifically forecasted. It is precisely for this reason that social media marketing has developed metrics. Similar to social marketing, stock price value is affected by many variables, or metrics if you please, some are within our control and some are beyond our control such as the global economy, pandemics, wars (Ukraine-Russia), etc.
I would like to offer the following comparison between the basic elements that affect a stock value and how it is reflected in our social media marketing. This macro-view of digital engagement may inspire us to adopt a broader approach to digital engagement and how to drive them. Here are some basic principles that raise the value of stocks and how they also apply to social media engagement and social platforms.
Supply and Demand.
We all know that if a stock is in high demand, people want to buy it, rather than sell it, and the price of the stock will rise. In this respect, when it comes to social engagement, the question is what do we need to supply our customers with, our potential customers in order to create demand?
Who are the stakeholders that are relevant to our business growth? Market segments, investors, customers, potential customers, specific regions? What do we need to supply them with in order to generate demand?
Know what your market is looking for and supply it.
Know what your market's needs are or create new needs for them, and supply them.
Understand why you're different from what's out there, in other words, what is your added value, and supply it.
What makes investors prefer one stock over another often is directly related to the positive news that a company generates or the positive outcomes from a certain situation or environment. Let's take the Ukraine-Russian war as an example. As each country is a major source of global gas and oil, oil prices soared to over $210 a barrel making it a lucrative investment opportunity. Same for gas prices.
Let's take another example: Tesla, Tesla's stock price rise to its max due to the potential for the electric car market, and along with the purchase of Twitter the stock price rise even more until Elon Musk started tweeting and what he reflected as a CEO that sank the stock in an unprecedented fall.
In marketing and social-media terms, we are talking about branding. A brand is a promise and its goal is to create trust and loyalty. A positive and relevant brand promise that delivers and meets this promise will generate trust from its audience, hence the engagement will be based on trust. Once the engagement is based on trust, moving forward is seamless and generates more engagement. If the brand's promise is broken or does not follow through with the brand's values (i.e. Tesla) the engagement value and volume will soar.
What are your business values? Does your content reflect those values? What is the good news that your business can generate on social media?
A company's earnings are another vital component of determining a stock value. At the end of every quarter, public companies report their quarterly earnings, revenues, profits, etc.
In social engagement terms, our earnings are customers. Did our social engagement earn our business customers? As with publicly traded companies, if the company doesn't earn money it won't stay in business. Same with our engagement, if our engagement efforts don't earn our business customers or leads, we won't stay in business.
As with public companies, every quarter, let's take a look at our engagement earnings and revenues. Did they earn our business new customers? Did they generate new prospects? If yes, great! You're doing a great job. If they don't earn what we expected, time to fine-tune with the following questions:
Do I engage in the right platforms?
Does my content generate interest?
Any changes that may affect my strategy? The global economy, consumer behavior, etc.
Are there any new solutions or products I should be supplying my prospects with?
Potential & Future Prospects
A stock price doesn't reflect just the company's present value, but its future potential growth. This also affects how investors might feel about it which ultimately is reflected in its value. Take Netflix for example, the stock price for Netflix dramatically increased during the pandemic as the demand was high and people were basically captivated audience. It is during the pandemic were Netflix's full potential was realized and as a result, reflected in its stock value. The same goes for Zoom, with a post-COVID hybrid work environment, the growth potential for Zoom is endless.
When it comes to social engagement, whether on a social group or our own social media channels, do we transmit future potential for our customers or potential customers? Potential for a better future. Do we elicit possibilities? Unique options? Or do we simply reply, or compete with other options in the feed or comments? There is a difference between transmitting potential and options when engaging than simply joining the crowd or providing a simple rely. Please take note of your replies and see if you can leverage them with a future prospect.
I hope this approach to digital engagement on social media and treating it as a new stock exchange platform, provided some insights and food for thought. If you have more thoughts on this, I'll be happy if you can share those thoughts with us, in the comments.
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