Social Media Business Risks
Last year Netflix put out a social media post in regards to changing subscription prices. Since the company had previously stated that they would never alter packages, the public backlash was immense. Over 82,000 negative comments were posted across all social media platforms operated by the company. This was followed by nearly 800,000 users cancelling their subscriptions, which resulted in stock prices plummeting.
A devastating impact to say the least, and a prime example of how social media can backfire in the most dramatic of ways. Of course, when used right the benefits can be enormous. But the potential risks must also not be ignored .
Public Backlash
As mentioned above, the impact of a single mishandled post can be devastating, far more so than ever before. News travels like lightening in the online world, and a so called ‘viral’ backlash can be company destroying. Well thought out, smartly handled posts are essential, with a firm focus on public feedback. Many find the temptation of causing an online stir, which helps to draw attention to a brand, provocative. But the potential negative impact must never be underestimated.
Bullying And Negative Interaction
From modest real money bingo sites, to the biggest corporation, social media platforms can be targeted by negative interactions. It is a hard reality of the online world. For this reason these platforms must be monitored constantly, to ensure that negative interactions do not harm the reputation of the company. Thankfully all social media platforms provide moderation tools. The down side is that this constant attention can be demanding, and a drain on resources.
Rising Costs
Small businesses are happy to handle their own social media platforms , which can even be the part-time work of a single employee. But as companies get larger, the demands tend to escalate dramatically. Social media professionals are common these days, and will handle the posts and monitoring of a company’s social media needs. Hence, inevitably the costs rise. Most still consider the cost worthwhile, however, given the massive benefits, and comparative cost to other forms of marketing and advertising.
Employee Credibility Risk
Larger companies have dozens, or even hundreds of employees, all of which have their own social media accounts. The potential for disaster is obvious, given how a single questionable post can have enormous backlash. For this reason many larger companies keep personal and business related accounts separate, which helps to avoid potential company reputation damaging instances. Clear communication with employees is required in such cases, which helps to protect corporate reputations.
Security Risks
Last we have the inherent security risks that come with managing social media accounts. Large companies run the risk of having social media accounts hacked, more so than smaller businesses. It need not be said how dangerous this can be, not only in terms of company reputation, but also in the terms sensitive information. Thankfully, securing these accounts is relatively easy, but it is still essential to ensure that steps are taken to avoid devastating breaches.
