Unless you’ve been living in a cave, you’ve probably heard the term social media. Maybe you’ve even signed up for Facebook, or are considering firing your first tweets at Twitter. Social media is changing the landscape of lodging. Hotels and brands can take their message directly to consumers and engage in conversation and hear direct feedback.

Good hotel companies understand this and are taking advantage. Jim Cox, a marketing veteran now specializing in social media, recently spoke at the HSMAI Los Angeles Chapter meeting. He’ll also be speaking at the 2009 Hospitality Education Conference in Anaheim on Sept. 2. We recently traded emails with the president and CEO of the Jim Cox Company and got the basics of this evolving form of media.

What’s social media? What’s the latest definition of this evolving medium?
Social media is the environment in which like-minded people and brands are engaging for their mutual benefit. But unlike the media environments of the past, the communication is not one way, nor is it two way, but rather collaborative with all parties contributing to the messages that are being exchanged. Additionally, the various social media channels are interconnected. Consequently, the dialogue between marketers and those they depend upon for success is open and not controlled by any single party. It is important to remember that social media are tactics just like print and broadcast media, and its successful use must be guided by a strategy.

What can it, or should it, mean for hotel owners and operators?
This is an opportunity to engage a much larger audience of customers and potential customers for two reasons: one, what has always been a leading source of business, word-of-mouth, is growing rapidly as millions of internet users are discussing, referring and endorsing brands of every kind, and two, while you are reaching out to consumers they are reaching out to you. With growing interconnectivity fueled by rapidly evolving technology and adoption by people of every kind, more potential customers are likely to find you.

What are a couple simple things every hotel should be doing with social media?
There are two actions that can be taken at almost no cost to a hotel. The first is gain insights into your best customer and focus the profile of your target audience by listening to what’s being said about your hotel, your competition and travel in general. You’ll connect with prospects who are more likely to buy and more importantly to become loyal. The second is to improve the networking capabilities of your sales team and the effectiveness of sales proposals by creating an open forum internally using social media technology. In this way all the members of your hotel’s team—sales, operations, marketing, public relations—can better support each other by freely sharing information and ideas throughout the sales process.

How are the best hotels and brands using social media?
Rather than using social media technology in isolated efforts, they are using it as a tactical component of larger integrated marketing strategies. Strategies that are executed as synchronized efforts incorporating both social and traditional media. These are designed to achieve short-term sales goals while moving toward long-term marketing and branding objectives. And more importantly these strategic plans are informed by clearly defined brands and guided by dedicated brand stewardship.

Are there revenue opportunities with social media or is it more a chance to boost positive customer and public relations efforts?
While consumers may opt-in to a database that provides high-value retail offers through social media, using such channels to directly promote sales transactions is a misuse of the media. There are hospitality researchers who feel social media will enter an era of social commerce in 2011, one that will mature in 2013. But currently, overtly promoting sales reduces such efforts to the equivalent of an outbound e-blast and the potential for lasting customer engagement is virtually eliminated. Customers are willing, if not eager, to engage with brands around the benefits offered, however, few are receptive to commercial messages in this environment. If the marketer thinks in terms of demonstrating the value they offer in the context of a conversation that focuses on content that benefits both parties, then it’s a win-win exchange. The consumer is receiving something he or she values, the brand is demonstrating rather than claiming its value. This feeds a consumer-centric transaction: buying versus selling. This is what fosters brand ambassadorship among consumers—they start doing the selling for you.

If defining or measuring ROI is difficult, how do you convince decision makers, who may or may not understand and buy into this, to invest in social media efforts?
When it comes to social media, look to CRM for ROI. Managing customer relationships prior to and after a purchase is where social media makes meaningful contributions to sales. If used as a tactical effort guided by marketing and sales strategies it can help feed the customer pipeline, enhance the conversion process and build loyal customers. At a time when every marketing dollar is carefully scrutinized, initial efforts can be watched closely and modified almost instantly. We’re all learning how best to use the emerging and evolving technologies, but early adoption has its advantages. You can get ahead of your competitors in terms of knowing what fits with your strategies and as social networks are struggling to establish revenue models. If you act now, it’s relatively inexpensive.

If hotels can speak directly to customers and potential customers, is there still room for more traditional media or should I be updating my resume?
Media is anything that delivers a message; whether that message is in the form of information, education, entertainment, or advertising. The various media channels we have today will continue for some time. The designation of old media versus new media is obsolete. What we must continue to focus on is the integration of media because what is changing rapidly is how people are consuming media and why. They are engaged in the simultaneous consumption of various media and are now using a variety of online media technologies to socialize with friends, share interests with strangers, editorialize on what they care about, conduct research and purchase almost anything.

At the hotel level, who should be handling social media efforts? Does it fall to marketing and PR departments? The sales team? The GM? Does a specific person need tasked with it or is it best a team effort?
At the hotel level it is important to focus on two key issues: engagement and content. Engage your target audiences in dialogues that are transparent and credible and filled with relevant content. By definition this requires a team effort because implementation goes beyond marketing and public relations. Operations must provide the proof of any stated or implied claims that the customer receives in the context of social media and other marketing communications or perceives in the positioning of the brand. Within the various social media technologies consumers want to speak directly with the brand, not service reps. when they express a criticism, share a compliment or ask a question they feel entitled to hear from the voice of the brand. And at the property level that’s the GM.