Can Social Media Mistakes Cost Your Company Millions of Dollars?

According to a recent survey, it can.  A survey focused on public relations disasters, lawsuits and other business risks found that on average, participation in social media cost major corporations $4.3 Million dollars. According to the InformationWeek article, the survey was performed by the market research firm Applied Research and was taken of businesses with 1,000 or more employees. Should you be worried about your company or business making a mistake through social media? The results suggest yes. Companies reported financial losses due to social media mistakes in many different areas. 28% reported damage to the brand or loss of customer trust and 25% reported a loss of revenue. 18% of companies said that they lost money due to regulatory fines and 17% due to legal action taken against them. 16% even reported a decrease in their overall stock price. Yet, it can be just as costly to avoid social media entirely.

So what can you do to minimize these losses for your company?  First consider creating a social media policy for your organization. Make sure that everyone in your organization understands it. Maybe consider employee training in social media, or hold a workshop about it. Another thing you can do is make sure that you have a policy in place to manage sensitive data or material in order to avoid getting into legal trouble. A third option to consider is hiring an outside media company to handle your social media.  An experienced media company knows how to avoid making mistakes in social media. They can manage everything and you won’t have to worry about confidential information leaking out in-house. Social media isn’t just something you do when you are bored. Social media is impacting your business and most importantly your pockets. Its time to protect them both.

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Posted on July 27, 2011, in Social Media and tagged , , , . Bookmark the permalink. Comments Off on Can Social Media Mistakes Cost Your Company Millions of Dollars?.

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