Using Balanced Scorecard as a Holistic Approach to Social Media Strategy

It would be myopic to consider the goals of a business in purely financial terms – would it not?

To do so would be unethical and not a good long-term strategy.

One framework for ensuring a more holistic perspective is the balanced scorecard method.

In this framework there are 4 broad areas to consider: financial results, customer satisfaction, internal operations and employee learning and growth.

Here we will use the balanced scorecard method as a tool to develop a social media strategy.

Financial Results

Social media plays a key role in the marketing mix in modern business because that is where (many) people congregate.

But how can social media be utilised in service of the broader financial success of a company?

There are different types of campaigns (such as awareness, consideration or conversion) which all fit into a broader revenue strategy.

You need sales in order to succeed financially, but before that occurs you need people to be aware you exist.

This suggests the need for a coordinated approach to social media in order to keep the sales pipeline full and retain customers long-term.

Customer Satisfaction

It is not good strategy to leave your customers unhappy.

If you do this they will likely not remain customers and they will go to your competitor instead.

This will ultimately drive your costs up and your sales down – possibly rendering you unprofitable and threatening the existence of your business.

How can social media be used to drive customer satisfaction?

Perhaps the answer is that existing customers want to belong to an active community and to be entertained – and supported where necessary.

Internal Operations

How, if at all, does social media relate to internal operations?

Social media is about people and in particular the customer.

Operations is all about processes and it seems that part of operational excellence is having processes that are responsive to to the customer – which in itself is a process.

Thus, social media can support operational excellence by continually monitoring the customer base and optimising its processes accordingly.

Employee Learning & Growth

In my view the greatest opportunity for employee learning and growth from social media is to develop customer empathy and understanding.

I consider it a competitive advantage to have employees who understand the customer and the brand’s community.

Social media is one of the best ways for employees to see and hear from the customer!