Social media is a “mega-trend”, revolutionising the way people communicate and interact with each other. Businesses have the opportunity to harness the power of social media to grow and increase revenues by targeting and embracing these new channels.
There is growing interest from organisations to leverage data and to integrate internal and external social media as part of their strategy. The benefits can provide an organisation with a key strategic advantage or if not executed appropriately it can fast become an expensive project that simply exposes the firm to additional risk.
It is becoming increasingly important for companies to understand the risks related to social media and have a clear strategy in place which sets out how they will use it and for what purpose. Social media blunders are becoming increasingly more commonplace in the news and getting social media wrong can have a serious impact on a company's reputation and even its share price. Many US regulators have already published guidance specifically for social media and with time the UK regulators will propose similar guidance.
Social media brings its own challenges but having a sound and practical strategy which is easy to understand will ensure risks are managed and benefits realised.