It may have taken a while, but the majority of business owners have come to embrace social media as a powerful marketing tool.  However, marketing only scratches the surface of what social media can do for your business.  Burberry is completely restructuring their business model around social media and here is why.

Burberry, according to businessinsider.com, found a use for social media beyond simply marketing their products.  Through Burberry, social media customers can view fashion shows as they happen in real time. But not only that, purchases can be made from links embedded into the video.  This seems like simple marketing, but Burberry took it a step further.

Money is received on orders before the goods are even manufactured.  Online sales go to China for manufacturing after the cash transaction has taken place, and two weeks later purchased items show up on the consumer’s door step.  Without the need for large amounts of inventory or the resource consuming process of dealing with unsold goods, Burberry can streamline their entire business.

This is just one example of how big brands are taking advantage of the business intelligence received from social media pages.  Erich Joachimsthaler, founder and CEO of Vivaldi Partners, was quoted saying, “If you want to think about your business, if you want to create value and competitive advantage, it’s about thinking about that information and penetrating it at every step of your value chain.”

Consider the untapped benefit of being in touch with your consumer through their entire purchasing process and beyond.  Social media offers any business information on exactly what their clients want, what they’ll pay for, and the opportunity to immediately respond to issues.  Social media helps business cultivate a relationship with their clients that generates repeat business.

Businesses that use social media merely as an advertising tool are severely limiting the potential for improved efficiency, product innovation, and relational marketing.  The limits of what a business can accomplish with social media extend as far as the imagination and vision of its decision makers.  One thing is certain: if your competition is adapting to these changes, like Burberry is, and you aren’t, its going to become very difficult to compete.