Everyone’s talking about Social Media these days. Obviously, we can’t ignore communities of a half-billion people or more that talk to each other, share recipes, product successes, failures, and preferences. Companies as diverse as IBM, Booz and Company, and Seamlesssocial.com have studies, methodologies and theories detailing ways retailers and consumer goods producers can take best advantage of this new phenomenon. In fact, RSR is putting together a Social Media benchmark ourselves, and we have a live survey just waiting for more retailer input. There are, however, some baseline thoughts we can share.

1) As the new IBM he said/she said 360 view of consumers and retailers points out, consumers don’t generally expect retailers’ social media pages to be a home for them. They have their support systems, thank you very much, and what they want from most product purveyors is good prices and notifications of deals. Apparently, the retailers in this study actually believed they were supposed to be part of consumers’ networks of friends. According to the study “…Most businesses believe social media will increase advocacy….more than 60% [of consumers] believe passion for a business of brand is a prerequisite for social media engagement. “

2) On the flip side, Jean-Marie Bonthous, CEO of seamlesssocial.com points out the role social networks play in the decision-making process. He points out product reviews by consumers are 12 times more credible than those written by professional reviewers or the manufacturer, and 87% will spend more with a particular seller after a friend’s recommendation. He illustrates a virtuous circle of social commerce that includes advise, compare, test, recommend, buy, research and review. It’s interesting to note that his findings were presented to the Economic Development Council of Beverly Hills just last month. I’ve seen the video of this event, and I can say the audience was pretty captivated.

3) The paper in which Booz and Company spells out its model, called “Social Apponomics ” starts out stating the obvious: “Attracting a crowd is relatively easy. Monetizing that crowd? Not so much. ” Their headline though is, “The secret to profitability on the Internet has finally arrived in an innovative blend of social media, Web mobility, and creative e-commerce applications. “

With all this conflicting information, what’s a retailer to do? We all know we have to do SOMETHING…but what? In the end, I think the answer is a blend of the above, and in setting appropriate expectations for excursions into social media. So here are my baseline suggestions:

• You’ve gotta be there. Period. Back in the day, when I worked for integrated materials handing solutions vendor SDI Industries, my boss used to say: “You won’t necessarily close any business at NRF’s January Show, but if you’re not there, you don’t exist “. That was before the Big Show became overwhelmingly tech-related, but the point remains. You’ve got to have a landing page, a twitter handle…in other words, you’ve got to grab the land.
• Hold Your Expectations in Check. With some very rare exceptions, Social Media presence will not save a failing business model, and it may in fact expedite failure for those who do not meet their brand promise. We have entered the era where it is fair game to say that applications like Red Laser can ruin a company’s quarter. I don’t think it’s true, mind you, but it’s being said.
• Encourage customer reviews and engagement. There’s an old saying that any publicity is better than no publicity at all. Heck. Look at Charlie Sheen (okay…I know, you’ve had enough of that train wreck, but seriously…). The goal is always, as IBM says, to turn shoppers into customers, and finally into advocates. But it’s a long walk from a good review to a world of advocates. Bring them in, keep them talking and sell them the things they want to buy. A bad review is not the end of the world.
• Remember that things are changing crazy fast. Be agile. Today’s retail winners are tomorrow’s walking wounded or worse. That’s because customer-perceived problems spread like wild fire. You can NEVER rest on your laurels again. Social media has not yet jumped the shark and the speed with which bad news spreads certainly hasn’t hit the speed of light YET.
• Never be presumptuous. In general, if social media like Facebook is a big town square, retailers are the shops that line the streets. Don’t presume that just because someone strolled in once, and even liked what they saw, they’re your fans for life. Continue to woo them…but not so much as to be intrusive.
• Make it Win-Win. You want their loyalty, give them something in return. Something easy to receive and use. I actually worry a bit about Facebook’s new sponsored likes. Just because I liked something doesn’t mean you can broadcast that information all over my friends, family, acquaintances or to anyone else you see fit to send it to. It may be public domain, but it’s the customer’s life. And consumers still expect their privacy respected.

This is not the last we’ll hear about social networks, certainly. But these simple steps might help keep expectations in check, and get you started on the road to social media success.