Category: Customer Service

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Savvy Social Media Users Influence Peer Purchases

For consumers, the golden rule is “buyer beware.” For marketers, it should perhaps be: “beware of socially adept consumers.” New research indicates that consumers who are savvy social media users wield far greater influence among their peers.

Specifically, they tell significantly more people about their service experiences, and say they’ would spend 21% more with companies that deliver great service — compared to 13% on average, according to the 2012 American Express “Global Customer Service Barometer.”

This relatively small group of consumers is extremely engaged and vocal, according to Jim Bush, EVP of World Service at American Express.

“They … tell three times as many people about positive service experiences compared to the general population,” he said of social media users. “Ultimately, getting service right with these social media-savvy consumers can help a business grow.”

Unfortunately for many marketers, the survey — conducted in the U.S. and 10 other countries — also reveals a sorry state of service in general.

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For Brands, Social Media Shows Returns but Measurement Hurdles Remain

Executives see improvements in marketing and sales efforts, and market share gains as a result of well-planned campaigns

C-suite executives are increasingly convinced of the benefits of engaging with their customers on social media platforms. A February 2012 survey of 329 senior executives in North America by management and digital consulting firm PulsePoint Group and the Economist Intelligence Unit found that the vast majority of companies who had invested in social media saw a positive shift in their bottom line as a result.

Executives who said their companies had established an extensive social media presence reported a return on investment that was more than four times that of companies with little or no social network engagement activity

Companies should use social media to create spaces for consumers to have meaningful conversations with employees and other stakeholders. Almost seven in 10 respondents said they had seen a spike in their sales by letting customers talk about their brands on social media platforms, even if some of that dialogue was negative. This kind of approach builds trust and credibility with consumers, potentially transforming them into brand advocates whose value is immense, if difficult to measure.

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How Customers Can Rally Your Troops

How did a five-minute meeting motivate university fundraisers to increase their weekly productivity by 400%? How did a photograph drive radiologists to improve the accuracy of their diagnostic findings by 46%?

Was it managers who inspired such enormous results? Perhaps they gave an amazing speech or set clearer goals or tracked performance more carefully. In fact, in both situations, managers were not the catalysts. They did not assume that they alone had to bear the burden of motivating employees with inspiring messages. Instead, they tapped in to a powerful force that encouraged workers to go the extra mile. They outsourced inspiration to those who were better suited to the job.

A growing body of research shows that end users—customers, clients, patients, and others who benefit from a company’s products and services—are surprisingly effective in motivating people to work harder, smarter, and more productively.

A brief visit from a student who had received a scholarship motivated the fundraisers to increase their efforts. A photograph of a patient they had never met inspired the radiologists to read X-rays more accurately. By serving as tangible proof of the consequences and value of employees’ efforts, end users such as these can be important allies for leaders in motivating and inspiring their workforces.

Outsourcing inspiration to end users focuses employees’ attention squarely on the ultimate impact of their products and services.

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Flawsome: why brands that behave more humanly, including showing their flaws will be awesome

FLAWSOME definition:

Consumers don’t expect brands to be flawless. In fact, consumers will embrace brands that are FLAWSOME*: brands that are still brilliant despite having flaws; even being flawed (and being open about it) can be awesome. Brands that show some empathy, generosity, humility, flexibility, maturity, humor, and (dare we say it) some character and humanity.

Two key drivers are fueling the FLAWSOME trend:

  • HUMAN BRANDS: Everything from disgust at business to the influence of online culture (with its honesty and immediacy), is driving consumers away from bland, boring brands in favor of brands with some personality.
  • TRANSPARENCY TRIUMPH: Consumers are benefiting from almost total and utter transparency (and thus are finding out about flaws anyway), as a result of the torrent of readily available reviews, leaks and ratings.

HUMAN BRANDS

FLAWSOME sits as part of a bigger trend towards HUMAN BRANDS, something that we’ve touched upon in many previous Trend Briefings: RANDOM ACTS OF KINDNESS, BRAND BUTLERS, GENERATION G, and so on.

So, while HUMAN BRANDS might not be a ‘new’ theme, four currents are now converging to make consumers more focused on brand attitude and behavior than ever before:

“human nature dictates that people have a hard time genuinely connecting with, being close to, or really trusting other humans who (pretend to) have no weaknesses, flaws, or mistakes”

  1. Consumers’ disillusionment at corporate behavior has (finally) spilled over into outright disgust. As a result, any brand that can show business in a new light will be (deservedly) welcomed with open arms.
    • Nearly 85% of consumers worldwide expect companies to become actively involved in promoting individual and collective wellbeing; an increase of 15% from 2010 (Source: Havas Media, November 2011).
    • Yet only 28% of people think that companies are working hard to solve the big social and environmental challenges (Source: Havas Media, November 2011).
  2. Consumers are more and more aware that personality and profit can be compatible (think Zappos, Patagonia, Tom’s, Ben & Jerry’s, Michel et Augustin, Zalando and more). With every business that succeeds while remaining reasonable, helpful, fun or even somewhat ‘human’, consumers will become increasingly disenchanted when dealing with traditional, boring, impersonal brands.
    • Most people would not care if 70% of brands ceased to exist (Source: Havas Media, November 2011).
  3. Online culture is the culture, and inflexible, bland ‘corporate’ façades jar with consumers who live online where communication is immediate, open and raw (also see MATURIALISM). What’s more, people openly broadcast and share their lives online – flaws and all – and thus brands are increasingly expected to do the same.
  4. Last but not least: human nature dictates that people have a hard time genuinely connecting with, being close to, or really trusting other humans who (pretend to) have no weaknesses, flaws, or mistakes – don’t assume brands are any different.

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Luxury Hotels & Social Media: Four Seasons Hotels and Resorts

“We believe the winners in this new digital age will be the brands that let their fans define it and syndicate it. We’ve always been a consumer-centric culture, so the shift to adopting the way guests and clients lead communications for Four Seasons has been rapid. Digital media is now 50% of our brand’s marketing efforts, with a strong social media presence that facilitates engagement and encourages loyalty.”
Felicia Yukich, Social Media Marketing Manager, Four Seasons Hotels and Resorts

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Are You Afflicted With Social Media Proliferation?

Between Facebook, Twitter, blogs, forums, Flickr, LinkedIn, YouTube and other platforms, the average enterprise-class company has 178 corporate-owned social media accounts.

That’s according to a new report from Altimeter Group, which surveyed 140 companies with more than 1,000 employees. Jeremiah Owyang, a partner at Altimeter and the lead author of that report, says 178 are way too many, particularly because such accounts often lose steam after a while and go dormant.

“It’s just a poor customer experience, because it’s been abandoned,” he says.

It’s time to take a hard look at your company’s social media presence and pare down its accounts. A new Altimeter report offers an eight-point resource checklist to help.

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