The 4e Framework for Social Media

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The 4E Framework For Social Media

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With the advancement in technology marketers now have the ability to communicate with their customers via social media. The marketers follow a framework that could possible benefit them called “The 4E Framework for Social Media”, which states that the marketers should excite the customer with relevant offers, educate the customers on the product/service their purchasing, help them experience the product and allow the customer to engage which can be profitable or horrible. So my question would have to be how effective is this blueprint to success?

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One company that put this method to use was Sephora the leader in global prestige in the world of beauty owned by LVMH Moet Hennessy Louis Vuitton. The company used this framework to first excite their customers about products and ideas using social media as well as their own mobile application. Which not only allows customers to shop, but to also try on the products via virtual front camera selfie before they make a final purchase. Sephora’s app also offers how-to tutorial for those that need additional guidance when it comes to putting on the product they’re interested in. This app alone can populate new customers just by the efficiency of it and the fact that it provides the customers with an easy online shopping experience with the ability to earn points on every dollar spent is also a win for this cosmetic retailer. Sephora also educates their customers on their products via YouTube and any other blogging tool. This allows the company to keep their competitive advantage over other know beauty retailers such as Ulta who offers a wider variety of products ranging from many different prices and brands. And by thoroughly educating all customers about the products and benefits they have to offer they seek a better chance of recruiting potential customers. Along with educating the customers the company also makes it easy for the customers to experience the products and services. This ties back to the virtual artist feature which allows the customer to try on a product before adding it to the cart to make a final purchase. The customer also gets the chance to learn how to apply the makeup personally from a cosmetic specialist on many blogging sites such as YouTube, Instagram or even Facebook. These neat features and tools are useful for the customers that can’t visit the store physically to get help or try on the product.

The final step in the “4E Framework for Social Media” is engaging the customer. Given the opportunity for the customer to engage in the company can result in a relationship or commitment of a potential customer. There are two types of engaging customers which consist of positive and negative engagement. The ones that are positive can be profitable towards the company resulting in a 20 to 40 percent increase in purchases. The negative engagers can deal a much bigger threat than the positive engagers. An example of this would be from 2012 after Hurricane Sandy when American Apparel sent out an email promising to give 20% off all online purchases “in case you’re bored during the storm.” And there was another time when they posted an exploding image on 4th of July which consumers thought to be fireworks but really turned out to be the tragic explosion of the Challenger space shuttle which burst into flames just 73 seconds after liftoff on January 28, 1986 killing all 7 astronauts. These mistakes caused the company negative backlash from their consumers which didn’t result in much of a profit.

For LVMH Moet Hennessy Louis Vuitton the use of the “4E Framework of Social Media” resulted in a profitable increase. From 2016 the company recorded a revenue of 37.6 billion in euro dollars, an increase in the percentage revenue grew from 5% to 6% between 2015 and 2016. With an organic growth of 8%. Profits from all recurring operations reached 7 billion euro dollars by the end of 2016 which caused the 6% revenue growth. For 2017 the profits grew even larger with a new revenue of 42.6 billion euro dollars an increase of 13%. With this profitable blueprint all operating companies of LVMH recorded double-digit revenue growths with an organic revenue growth of 11%.

In conclusion, to the question asked about how effective is the Framework for Social Media? You can see that by exciting the customer, educating the customer, letting the customer experience the product and allowing the customer to engage in the marketing of the company LVMH was able to turn over a profit resulting in a revenue increase difference from 2016 to 2017.

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