social media and loyalty r1
DESCRIPTION
THis is the presentation on social media and its role in driving loyalty that I gave while at The Planning Agency, at the SM conference organised by Pacific Conferences in Singapore and Hong Kong.TRANSCRIPT
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Friday Oct 24 2011
The Planning AgencyThe Insight Led Agency
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Today’s Topic
Social Media, its role in Loyalty
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Our First Observation
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Social media being touted as the Holy Grail
A new way to build loyalty
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Our POV
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Social media won’t replace existing forms of loyalty building, but add to them
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WHY?
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When we speak of loyalty, we’re looking at behaviour not attitude
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Behavioural loyalty is fundamentally an outcome of recognition and differentiation
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but in a business context not a social context
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An effective loyalty marketing programme recognises and differentiates between
customers based on value or potential value to the organisation
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Don Peppers on Customer Management
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Peppers and Rogers, 2003, replayed by Vladimir Dimitroff, Prism Consulting London on Slideshare
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A social media programme on the other hand talks to customers based on social influence not
business influence
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http://online.wsj.com/article/SB10001424052748704637704576082383466417382.html
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There is an inherent loyalty issue in this
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People are rewarded based on popularity not actual transaction or purchase
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The corresponding impact is ALIENATION
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So can social play any role in creating loyalty?
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YES
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This role must be carefully understood however and the discipline introduced in areas
where of genuine strength/advantage
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What social is really good at?
Enhancing Experiences
Enhancing Empathy/Exposure
Understanding Issues
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If Singapore’s leading taxi service were listening to customers on social media this
is what they’d know
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People are pissed off about
peak charges
People are pissed off about
waiting time
People are pissed off about pick up refusal
People are pissed off about aggressive driving
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Many companies don’t know how to listen, and how to act as a result
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They are, in effect, Social Cripples
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A company that failed to listen and act
It’s ok to pick a fight. Just not with the wrong person! Unit did just that. It refused to fix musician Dave Carroll’s guitar that the airline broke during baggage handling. Dave (clearly disgruntled) did the only thing he could - write a song about it!
The rest as they saw was history.
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http://www.youtube.com/watch?v=5YGc4zOqozo
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DKNY had its site taken over by PETA (to protest rabbit fur) that cleverly used
profile pictures and message
posts in a coordinated
move that made their page look
like this.
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Comcast’s service was so bad, it led to one individual setting up a site called Comcastmustdie! A viral video that had CC technician fall asleep on the phone after being on hold for 1 hour with HQ, went super viral on You Tube. Then came along Frank Elliason Named Time Twitter Man of the Year, he took 8 employees from customer service and set up Comcast Cares. A service that used Twitter to answer queries, acknowledge issues and
do its best to resolve them. IN 2000, xxx decided to take down Comcastmust die. The brand didn’t need it any more, it had learnt and responded to the issues raised.
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Listening is fundamental to any social media strategy designed to build loyalty
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The starting point to success
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The second area that social media is good at is enhancing experience
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This is relevant given what most organisations today have come to resemble
IMPENETRABLE FORTRESSES
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Companies can use social media to break down the walls between them and
their customers
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Companies that are doing so effectively?
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Companies that are doing so effectively?
Fairprice was Singapore’s first supermarket to set up a presence on Facebook. The brand uses the page to not just keep customers up to date but also to respond to queries.
One of the few brands to measure progress, Fairprice uses a variant of NPS to understand how it is improving strength of customer relationship.
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Companies that are doing so effectively?
A lot of us have heard of Twelpforce. But basically, it’s a service from best Buy that advises clients on technological issues they have with gadgets. The genius is you dont have to have
bought the gadget from Best Buy to receive advice or an answer!
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Social media can enhance relationships by addressing issues key to them. Often enlisting the help of a
brand’s very own customer base
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The third area that social media is good at - building empathy and exposure
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3.22m pages of content on Google
We are Social developed this terrific idea for Heinz. It allows buyers to send the can as a get well card with a prsonalised message on it. Absolute genius!
That led to 3.22 m pages of content on Google.
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Warren Buffet the rich should be taxed more3.16m pages of content on Google
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The 4 Seasons Hotel, AtlantaReicheld himself, the high priest of Loyalty, talks about 4 Seasons and how during the Atlanta Olympics they didn’t raise room rates but kept them the same. Giving regular
customers preferential occupancy. How loyalty inducing is that?
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What we need to understand? This kind of loyalty is attitudinal not behavioural.
There may or may not be a commercial correlation.
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Social media is fun, but metrics are key
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One brand has measured fans true worth
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FairPrice NPS
Neutral, no. of real fans (promoters) v/s detractors and passives calculated with constant measurement along the way
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Tips for measuring success
Use as many business drivers as possible (Fournaise report)(revenue, sales, profit, cost elimination)
Speak the language of your CEO - he gives you the investment you need
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Beyond measurement, beyond academic truth, how do you make social media a
reality in your organisation?
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There is only one way
Through understanding and
Involvement enterprise-wide
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Ways to instigate thisManagement Presentations
that show what your audience is saying about
you
Workshops that facilitate an an understanding of social media and how others are
using it as part of their strategy
Evangelistsand the creation
of public support for
them and their teams through
the CEO
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Social media structureListeners
Action-takers Executors
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Thinking of using social media to build loyalty?
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1. Be aware of the two types of loyalty -
attitudinal and
behavioural - consider which is more
appropriate for your business
2. Don’t hasten to shut down traditional transaction
based programmes,
recognise the value
they offer - that social media cant or wont.
3. Listen, understand and
then act.
Ensure your conversations are attuned to those of your customers’.
What they are saying is out
there.
4. Measure your success.
Quantify it in business
terms that your CEO
will understand.
It will get you the
investment you need.
5. Involve your entire
organisation in the
programme.
You will not succeed in
your endeavours
unless you do. Involvement is key to success
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Thank You and Questions For answers, e-mail me directly at [email protected]