Social collaboration, a combination of social media, visual collaboration and unified communications, is becoming a significant trend in business today. When used together, these technologies can improve products or processes and ultimately drive true innovation which has a direct impact on a firm’s bottom line. This is the final post in a series discussing the benefits of social collaboration. For part one click here.

Customer needs are changing faster than the weather these days and companies have to find new ways to adapt; otherwise they will simply fade away. Pushing products or services upon customers, à la advertising or herded cattle, is no longer an effective business model. Technological innovations have changed the way consumers think, act and shop; however, they have also made it easier for companies to develop relationships with their customers.

Why should companies care about developing relationships?

Three words: customer lifetime value. The stronger the relationship a customer has with a brand the higher their loyalty, their retention and ultimately their sales. Having conversations with customers over social media and listening to their thoughts, opinions and ideas can help form a solid foundation for a relationship. Similarly, utilizing video technologies for customer service or technical support can help establish trust with consumers as video almost humanizes the company in customer eyes.

Furthermore, strong customer relationships can help drive innovation. The more companies converse with customers and the stronger the relationship is; the more apt customers are to provide honest feedback. This not only helps companies fix product flaws but allows them to stay in tune with market needs and opportunities.

Companies can collaborate with customers to create products and services that are perfectly aligned with market needs. Product development cycles can be sped up through beta versions of a product where customers provide feedback on their likes and dislikes and offer suggestions on how to make the product better. According to Nilofer Merchant in the HBR article Rules for the Social Era, “the social object that most unites people is a shared value or purpose.”

A shared value or purpose can be creating or modifying a product to satisfy a market need. People love to be the first to try something new; even more, they love giving feedback so they can say they helped create a product.  Unified communications solutions have given a new meaning to the word focus group; companies can easily set up forums for customers to give their thoughts on beta versions. This is far more cost effective, and provides better results, than hiring a few engineers and product development specialists to test all aspects of a product before mass-marketing it.

Collaboration with customers allows companies to stay agile and ahead of new trends. It helps ensure they are meeting customer needs by constantly making improvements or trying new ideas to create new niche markets. Collaboration helps companies stay relevant which really is the key to staying in the forefront of customers’ minds.

This post is part of a series covering the benefits of social collaboration within an organization.

Part One: The Rise of Social Collaboration
Part Two: Unified Communications, Unified People
Part Three: The Power of Business Partnerships