This article is based on a study by Nora Ganim Barnes entitled “Exploring the Link Between Customer Care and Brand Reputation in the Age of Social Media” from the Society for New Communications Research. http://www.newcommreview.com/wp-content/uploads/2008/04/customer-care.pdf
Interested in getting a job with a retailer? Signing up with a new internet service provider – or perhaps you’re looking for an avenue to slam an existing one?
In social media, consumers now know where to aim.
Whatever your pursuit is, it’s unlikely that you’ll be doing your research from a corporate brochure, or shouting down the telephone to a computerised operator when Google and Facebook are at your virtual doorstep. Despite a large sum of free positive publicity that is derived from blogging, it is estimated that 59.1% (Barnes) of social media users use these channels as avenues to ‘vent’ their frustrations with companies. That being said, companies facing this negative publicity must make an important decision: run for the hills or confront and reconcile?
Unless you are a household brand that a perspective partner or customer should know everything about, the chances are they will throw your name into a search engine. As the study above reveals: 72% of people surveyed choose to opt for this course of action. If you think this is predominantly teenagers with too much time on their hands, think again, as a large proportion are in the desirable 25-55 year old age bracket, university educated, and earning over 100K each year. In some cases the larger the company the easier target they are, with a Google search under “WalMart” revealing an employee being trampled to death by eager shoppers, a unethical decision to boost Wii sales, and impending labour lawsuits that could total up to $640 Million – all under the first page of search results. Mark my words, no one is safe.
A brand’s resistance to jumping on the social media bandwagon is understandable. To a large extent launching a branded application on Facebook or even a company profile page holds the company at ransom to less than positive comments. With groups calling themselves highly imaginative names such as I hate Optus, this can be daunting. However, these comments are going to be made with or without your consent, so you may as well jump on board and utilise this as free market research, or in a truly optimistic fashion, try to resolve issues with disgruntled customers. If the statistic of ‘95%’ rings true (i.e that this percentage of complaining customers will do business with you again if the matter is dealt with swiftly) (TrainingZone) it can be a great avenue to recapture lost customers. At the very least you can promote your brand as being ‘in the know’ with where your customers are by being there too.
Truth be told, most interest groups on Facebook are overwhelmingly positive and comments posted can provide a number of benefits to companies. From “Where can I buy this product?” to “Are more flavours being released?” – it generates conversation and a buzz about existing brands and products. Given the astonishing number of users attached to some of these groups (Pepsi – 151,000 fans, Nike 831,000 fans, or, closer to home, Vegemite – 85,000 fans and Toobs – 21,000 fans) useful qualitative information can, and should be collected on the brand’s image or product lines and used wisely.
When it comes to getting criticism through social media channels, not all companies are on a level playing field – with a disproportionate number of service provider companies getting hit the hardest. These companies need to be the most strategic with the channels they use. If the major complaint is slow response rates, engage them immediately with a customer support alternative on Twitter. If you’re being labeled a ‘money grubbing prostitute’, give your customers a free branded application on Facebook or iPhone with discrete brand placement and high utility value. If you’re being attacked on a recent TVC that has failed to cut the mustard with your target audience, come clean and run a promotional competition seeking personal TVC entries via MySpace.
The floodgates that once protected companies from public criticism have now well and truly been activated across the social media space. The only question now is: how will you react to it?