Is Social Media making Companies too reactive?

For me , I think the two must work together.  The benefits of proactivley responding to customer's needs to improve satisfaction are clear, but gaining valuable insight through social networks like Twitter and Facebook would give companies a head start in both identifying where problems may occur and who they may occur with.  As a channel, I believe that social media can work wonders, but only if it is coordinated with other channels, where benefits are perhaps more measurable.

I see more and more companies that have an in-house social media person nowadays - it seems as though businesses large and small are taking it very seriously. The ability for damage control in real time is incredibly valuable but for me social media isn't primarily a selling tool, I perceive it as more of a reputation management tool. Financial gains from improving experience in my opinion can be much higher.