Reinventing Customer Service Harnessing Social Media

Social media  leveled the playing field on which brands and consumers face off. Where  brands controlled the means of broadcast (through PR, advertising and news coverage), consumers now have a megaphone of their own in the form of social media to voice their opinion and force companies to rethink customer service

Social sharing and viral content means an angry mob has never been easier to assemble, and brands behaving badly can now find their reputation in tatters in a matter of hours. Just ask Addison Lee’s cyclist-bashing chairman John Griffin, who turned the company into a virtual punching bag for the denizens of Twitter and Facebook overnight. Griffin sparked anger by claiming the majority of cyclist road deaths in London are the result of inexperience on the part of the cyclist.

This is just one example from recent times when the consumer’s megaphone has become louder than that of the brand. Not only does social media amplify complaints, but with criticism out in the open it allows media outlets to offer coverage of the discourse, amplifying the criticism further How many news stories have you read which cite “Twitter outrage” or a “Facebook campaign”?

This reshuffling of power has forced many companies – both large and small – to rethink their customer service and marketing. Having suddenly had power wrested from them, many are now fighting back and employing some experimental and interesting methods to get back in the driving seat.

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Brands Ignore Negative Social Buzz at Their Peril

“In a world of social sites that allow consumers to post photos, videos and opinions about companies and brands, disparaging comments and other content detrimental to brands are bound to bubble up,” said a new eMarketer report “Dealing with Negative Buzz on Social Media.” “And that content can stay online forever.”

In February, American Express found that 46% of US internet users it surveyed had turned to companies’ social media sites to vent their frustrations about poor experiences.

“This buildup of negative buzz on social media can have a significant impact on brands because social media is more public and moves faster than customer complaints via traditional channels,” said eMarketer.

Top 5 Reasons US Internet Users Use Social Media for Customer Service, Feb 2012 (% of respondents)

Moreover, companies now have accounts and brand pages on so many different social networks that it is hard to keep up. “Having a plan in place for dealing specifically with negative buzz and then constantly monitoring, tracking and responding to comments on social media are two important ways to deal with negative situations on social media,” said eMarketer. But implementing these precautions requires integration between teams within a company, expanded thinking about what words and issues to track, and, in some cases, tasking outside companies and vendors to provide monitoring services.

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Forget Engagement, Consumers Want Simplicity

In a world where brands are constantly fighting for attention, many marketers are asking themselves a key question:  What is the best way to impact purchase decision and brand loyalty?

The IBM Institute for Business Value found that 60-65% of business leaders who believe that consumers follow their brands on social media sites because they want to be a part of a community. Only 25-30% of consumers agree. The top reason consumers follow a brand? To get discounts – not exactly ideal for a company’s bottom line.

On top of trying too hard to engage with consumers via social media, marketers are generally pushing out too much information, causing people to over-think purchase decisions and making them more likely to change their minds about a product, be less confident in their choice and less likely remain loyal to the brand.

So what should marketers do? Here at Corporate Executive Board, we surveyed more than 7,000 consumers and interviewed 200 marketing executives across consumer brands and industries to find out. The answer: Simplify the decision-making process, so much so that consumers actually think less about the decision. Marketers can do that in three easy ways by helping consumers:

  • Trust the information they receive
  • Learn effectively without distraction
  • Weigh options confidently

When used together, this approach is known as Decision Simplicity.

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Aston Martin Vanquish Social Campaign a Huge Success

British automaker Aston Martin chose digital to market its new Vanquish model and saw a more than 100 percent increase in visitors to its Web site from social media channels among users in Germany, the United States and its home country.

Aston-Martin-Vanquish-Facebook

The digital campaign that spanned Facebook, Twitter, YouTube and the Aston Martin Web site began June 20 and centered on a digital car configurator, images and a video. The automaker saw the highest traffic on its Web site ever

recorded during the first three days of the campaign.

“Luxury automotive brands have communities of people that are incredibly passionate about their product,” said Jenn Heinen, associate director of social strategies at Morpheus Media, New York.

“Leveraging any kind of community-driven platform makes perfect sense to distribute content to a group of people who are already engaged with a product and lifestyle,” she said.

“Especially with more niche communities, the excitement and eagerness to interact with this kind of content makes social platforms all the more impactful for content syndication.”

Aston Martin recorded June 20-22 as its three highest traffic days on its global Web site at http://www.astonmartin.com. It saw the average number of daily visitors to the site double in the first seven days of the Vanquish campaign, per the brand.

As compared with the same period seven days earlier, the automaker saw a 216 percent increase in visitors to the site from the German market. There were also 162 percent, 102 percent and 81 percent increases in visits from consumers in Britain, the U.S.  and China, respectively.

The digital campaign that spanned Facebook, Twitter, YouTube and the Aston Martin Web site began June 20 and centered on a digital car configurator, images and a video. The automaker saw the highest traffic on its Web site ever recorded during the first three days of the campaign.

“Luxury automotive brands have communities of people that are incredibly passionate about their product,” said Jenn Heinen, associate director of social strategies at Morpheus Media, New York.

“Leveraging any kind of community-driven platform makes perfect sense to distribute content to a group of people who are already engaged with a product and lifestyle,” she said.

Especially with more niche communities, the excitement and eagerness to interact with this kind of content makes social platforms all the more impactful for content syndication.”

Aston Martin recorded June 20-22 as its three highest traffic days on its global Web site at http://www.astonmartin.com. It saw the average number of daily visitors to the site double in the first seven days of the Vanquish campaign, per the brand.

As compared with the same period seven days earlier, the automaker saw a 216 percent increase in visitors to the site from the German market. There were also 162 percent, 102 percent and 81 percent increases in visits from consumers in Britain, the U.S.  and China, respectively.

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Leveraging Social Media in Food Marketing

When it comes to learning about food, nearly half of consumers use social networking sites, and 40% use Web sites, apps or blogs, according to a new study from The Hartman Group and Publicis Consultants USA.

“Consumers used to rely on mom and family traditions for meal planning, but now search online for what to cook, without ever tasting or smelling,” said Hartman Group president and COO Laurie Demeritt.

In addition, nearly a third of Americans overall — and 47% of Millennials — use social networking sites while eating at home.

So how can food makers and retailers best leverage this social media power?

New Google+ Study Confirms Minimal Social Activity, Weak User Engagement

Larry Page recently called Google+ the company’s “social spine.” If that’s the case, then Google’s backbone might be much weaker than Page has been letting on, at least according to a new report from RJ Metrics.

This week, the data analytics firm provided Fast Company with exclusive new insights on Google+. The findings paint a very poor picture of the search giant’s social network–a picture of waning interest, weak user engagement, and minimal social activity. Google calls the study flawed–we’ll explain why in a second–and has boasted that more than 170 million people have “upgraded” to the network. RJ Metrics’ report, on the other hand, is yet another indicator that Google+ might indeed just be a “virtual ghost town,” as some have argued.

Let’s start with the findings. For its study, RJ Metrics (RJM) selected a sample of 40,000 random Google+ users. RJM then downloaded and analyzed every sample users’ public timeline, which contains all publicly available activity. One important caveat: RJM was only able to look at public data, which as it points out, “is not necessarily reflective of the entire population of users,” since some users are private or at least have private activity. That said, the stats are eye-opening:

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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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Google + Gets a Facelift and New Features

With over 170 Million registered users but dismal usage stats, Google + was in need of  CPR

Google just announced a major redesign of Google+ “to make the social network “more functional and flexible.”

According to  the official Google blog, the redesign is part of its plan to make Google+ easier to use.

“By focusing on you, the people you care about and the stuff you’re into, we’re going to continue upgrading all the features you already know and love—from Search and Maps to Gmail and YouTube,” says Senior Vice President Vic Gundotra in the blog post. “With today’s foundational changes, we can move even faster—toward a simpler, more beautiful Google.”

It looks like Google took a hint from critics and finally recognized that they did not need to reinvent the wheel just make it better.  Did they succeed, it’s a little early to say since the new look and features are being deployed as we speak but we can already see that the home page looks pretty familiar, actually, a lot like a mix of the pre “Timeline” Facebook and the new Facebook interface.

Every Facebook redesign draws a lot of criticism and discontent, but will that be enough to breathe life in Google + and increase time spent on the site, which has been seriously lagging ( a few minutes a month, versus Facebook 7+ hours) and recent CNet statistics showing that March time spent increase 27% over February do little to close the gap.

The redesign does not seem to address the botched integration of Google’s other services particularly when it comes to YouTube, and Picasa

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7 Lessons From The Nikon Social Media Faux Pas

In the world of social media you have to be careful as to who posts on your walls, what they say, how it can be interpreted and what the consequences can be.

Nikon, the famed photographic equipment manufacturer learned the lesson the hard way.

Back in September of 2011, a the following post appeared on Nikon’s Facebook page:

“A photographer is only as good as the equipment he uses, and a good lens is essential to taking good pictures! Do any of our Facebook fans use any of the NIKKOR lenses? Which is your favorite and what types of situations do you use it for?”

Now, anybody involved to some degree in photography knows that a statement like this will infuriate most of the photographers who read it.

I understand what the Nikon employee may have been trying to say, but the way he or she said it came out totally wrong.  It is true that a good camera and good lenses will make a big difference on the quality of the photograph, but at the end of the day, the talent of the photographer remains the key.

Withing hours, the post received a couple of thousands of comments, something most brands would rejoice at, unless, like in this case, the comments were overwhelmingly  negative and the brand had just invested a lot of money on the launch of a new camera.

What can we learn from Nikon?

1-Monitor the conversations about your brand

2-Who you allow to post on your wall is important, make certain they understand and relate to your community

3-Before posting, think about your post a few times.  Is that the message you want to send out?  In doubt, ask a few colleagues, insure it’s congruent with your communication and marketing message

4-Remember that it does not take long for a post with a lot of comments on a business page to attract the attention of search engines, influential websites and blogs and be indexed.  Do a search for the Nikon Facebook page and you will see several pages of websites and blogs with negative reactions to the post, not something you want your community to see.  Bad news travels faster than good and stick longer.

5-When you put your foot in your mouth, don’t wait to see 2000 negative comments to react (it took Nikon over 12hrs to apologize), apologize, do it quickly, sincerely and repeatedly.  If you take into account that a Facebook user has an average of 150 friends, at least 300,000 Facebook users saw the post, that’s not counting the re postings and shares.The kind of exposure no brand wants.

6-Reach out to the blogs and websites that covered the story

7-Building a reputation takes time, damaging it only a few seconds and repairing it a long time.

What are your thoughts?

 

 

Google + a virtual ghost town?

Google+ is a virtual ghost town compared with Facebook. PC users spent an average of about three minutes a month on Google+ between last September and January, versus six to seven hours on Facebook.

It turns out Google+ is a virtual ghost town compared with the site of rival Facebook Inc., which is preparing for a massive initial public offering. New data from research firm comScore Inc. shows that Google+ users are signing up—but then not doing much there.

Visitors using personal computers spent an average of about three minutes a month on Google+ between September and January, versus six to seven hours on Facebook each month over the same period, according to comScore, which didn’t have data on mobile usage.

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