When it comes to social media, it's all about relationships, relationships, relationships (to borrow the timeless expression about real estate). What's exciting about social media is that these relationships can no longer be Potemkin's Villages constructed by companies. They can't be cardboard cutouts of engagement. These have to be the real deal.
Regarding "why corporate social media fails" - that's the issue. Being real. Real is what builds the relationships. Real demands that companies trust their consumers as much as the consumers trust them and their products (and the money they spend on those products). We socialmediaphiles can type till we're blue in the fingers, but companies have to trust their consumers. Really.
The reason why is that they don't have a choice anymore. That's not nearly as apocalyptic as it sounds. It's an exciting time to be in marketing! Embrace change, Corporate America/World. You'll gain ground vs. your competitors because of it.
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