So many people and businesses are online now that it is difficult to deny the internet as a tool for marketing and improving a company or brand. Social CRM has become a very important tool for companies, especially the advertising department and the customer service department. According to a recent article issued by Joe Shepley, social CRM can improve customer service dramatically. When a person runs into problems with a company such as a bank, department store, or phone company, they oftentimes vent about it online in their Facebook status or tweets on Twitter. This reminds me of the saying 'when you're satisfied with a product you tell 3 friends, but when you're dissatisfied, you tell 20 friends.' This spreads like wildfire and before you know it, you refuse to become a loyal customer because of something you have heard about a company.
Shepley's article explains how companies should use the internet in order to find negative and positive comments about them. They need to find relevant information posted on the internet about their company by using standards-based search and aggregation technology. Next they evaluate the comments they have found and thank the customer if it was a positive remark. If it was a negative comment, the company needs to evaluate the problem and try to resolve the issue. In this respect, social networks have both positive and negative impacts on companies. If companies invest more money into customer relations, it could help improve their relationships with their current customers and rope in new ones, while improving their mistakes and ensuring that they do not continue to occur.
On another note, I have noticed that a lot more commercials are now telling people to follow them on Twitter or Facebook. The most recent commercial I have seen is the 'I Choose Smirnoff.' At the end they tell people to go 'Declare your passion for the vodka that wins on taste and join the movement' by following them on Facebook. Hmmm interesting. I snooped around the Facebook page and one of the tabs is for a special offer for $5 off! BUT you have to 'Like' them first. The 'Like' button is a great way for companies and brands to get their name out there. I browsed through some other pages for actors, companies, and movies. It is a smart idea because the advertising is free and people can 'Like' the pages. After liking the pages, their friends can see them and if they're curious, they can also click on the pages to view them.
Nowadays, as you browse through YouTube, blogs, online newspapers, and other social media websites, they give you the option to 'Like' them, follow them on Twitter, or email it to a friend. It's pretty savvy and another great way to advertise a business! All I have to do is give a thumbs up and everything is great. However, where's the dislike button? Pretty soon, this will be available and companies will have to figure out another obstacle to get around. Until that day comes, companies better watch out and improve their customer service so they won't have to worry about a thumbs down!
I completely agree with you on the need for a dislike button. Amazon offers lower star ratings, Urban Dictionary, Digg and Youtube all have thumbs down options, where is it on Facebook? It seems rather convenient for the advertising giant that moonlights as a social network to leave out the option to criticize.
ReplyDeleteAlso, it is interesting that you point out the benefits social media has for customer service and satisfaction. The statement about telling more people when you are dissatisfied really keeps in mind the power of social networks and how it can potentially be a negative.
I pretty much thought the same thing, but i do think the downside potential of this is really bad. Like that saying "you can do a hundred good deeds for someone and they'll forget, but they'll always remember that one time you let them down".
ReplyDeleteI completely agree with you that the bad news can spread like wildfire. If I was a small business owner its definately something id watch out for.
My only problem with this is in regards to the negative feedback on social media sites. The saying, "when you're satisfied with a product you tell 3 friends, but when you're dissatisfied, you tell 20 friends," refers to real people and it stops with those 20 or so friends. Whereas on Facebook, Twitter or any blog, it reaches hundreds of people and there is no telling who it does actually reach. Negative feedback on a social media site is so much more hurtful than say word of mouth. Therefore its a good think that there aren't dislike buttons and the such, because will such an option, many more people would be able to find negative information about a particular brand. With social media, there are lots of positives, in the form of comments, however there is also negative feedback and that can be harmful to business.
ReplyDeleteThis reminds me of a story I recently heard from a friend who had an issue with a TV service company that mis-charged her credit card $5,000 dollars. She called the company every day for two weeks and was being completely ignored (they even started hanging up on her when she said her name over the phone). Then one day she called and said that she was going to blast negative posts about the company's terrible service all over Twitter and Facebook - and she was immediately transferred over to the manager who fixed her charges on the spot and offered her additional free services! That is the power of negative feedback (or fear of negative feedback)on social media websites today! Check out my blog for more fears and benefits of social media marketing!
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