Tag Archives: Customer service

Service Vs. Social

When you’re connecting with your friends and relatives on Facebook or other social media, do you think of it as marketing?  I don’t.  I’m not certain what I call it but if marketing is the communication of a product’s value I’m definitely not trying to convey my value as a person to others.  Not consciously anyway.

Why I’m asking the question is our old friend “social media marketing.”  There was another study released a week or so ago, this one by the good folks at NM Incite (which is a joint venture between Nielsen and McKinsey so they ought to know!).  It covered customer service via social media and found (as summarized in this article) that:

The majority of Twitter and Facebook users — 83% and 71%, respectively — expect a response from a brand within the same day of posting. Some 71% of consumers who experience a quick and effective response are more likely to recommend that brand to others, compared with 19% who do not receive any response… The biggest issue: 36% report having problems solved quickly and effectively, while only 14% report that the company responds quickly but does not resolve the issue, and 10% report never receiving a response at all.

That data is presented in the context of a positive experience leading to positive posts which can be shared across other social spheres.   In other words, marketing.  What I find interesting is that this information  along with some additional thinking on social, is more about serving the brand’s own needs than those of the audience.  As I postulated at the top, while I’m very happy to help out my connections in any way I can I’m not monitoring social media with a marketing mindset.  Unless and until brands can approach social as we non-digital, non-corporate entities do (read that as humans), brands will always be seen much as we do a social connection we made at a party many years ago and with whom we have little or no bond.  Those connections are kind of creepy and I, for one, always wonder why I even have them.  A lot of folks “unfriend”, hide or block those people and you might not even know it if you are the one blocked.  Ouch, especially if you’re a brand.

If we’re going to use social media to connect with consumers, I can’t think of a better reason to do so than customer service.  Yes, that can be a gateway to shared, positive experiences, just as it can precipitate a storm of bad comments if done badly.  It’s not something I’d approach with a marketing mindset if you’re trying to humanize the brand.  Unless, of course, all of your real friends use their accounts mostly to sell you insurance, real-estate, or used cars.  Then you just might need a few new friends!

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Love The One You’re With

One of the trends I hear discussed all the time is that of chasing the next shiny object.  As it turns out, that’s not something that occurs solely in the tech space.  A recent study from Adobe – The Adobe Digital Index – shows that online retailers are ignoring the 80/20 rule by ignoring current customers in favor of attracting new ones.  Maybe today’s screed should have been titled “You Always Hurt The One You Love.”  Their summary:

Online retailers spend nearly 80% of their digital marketing budgets acquiring shoppers (new visitors), but does this focus make sense? To find out, Adobe Digital Index analyzed 33 billion visits to 180 online retail website in Europe and the United States from April 2011 to June 2012. Our data indicates retailers should shift spend to returning and repeat purchasers, two existing customer segments that drive a disproportionately high share of revenue, exhibit higher conversion rates, and really step up in the Christmas holiday season and tough economic times. Migrating just 1% of shoppers to returning purchasers could generate as much as $39 million in additional revenue per retailer.

In other words, we’re spending way too much time and money chasing new customers while we ignore a lucrative user base that’s just waiting to be asked to the dance.  40% of revenue for online retailers comes from returning or repeat purchasers, who represent only 8% of all visitors, according to the study.  In other words, you have to attract five to seven shoppers to equal the revenue of one repeat purchaser.

Having run an online retail business I can tell you that the vast majority of our thinking was about attracting and converting new customers.  It wasn’t as if customer service was an afterthought and we did allocate a good deal of our marketing to up-selling our existing customer base.  However, this study opened my eyes to the fact that we probably could have done more with those who’ve already demonstrated a desire for our products and I’ll keep that in mind as I work with clients going forward.  How about you?

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The ROI On A Cup Of Soup

According to what I can find in their public reporting,

Panera Bread

(Photo credit: Wikipedia)

Panera Bread spent somewhere north of $33 million on marketing last year.  Their financial results are impressive and they get good ROI on that investment.  I’m willing to bet, however, that the best marketing return they’re going to get this year is on a cup of clam chowder and a box of cookies. You might have heard about this story, but if you haven’t, this AdWeek article sums it up nicely.  A dying grandmother wants some Panera Clam Chowder on a day when the local store doesn’t make it.  A grandson calls to ask them to help.  A smart, responsive, caring manager immediately says yes and when the kid shows up to get it, gives him a box of cookies for grandma to go along with the soup.

It being the age of social, the grandson shares the story on his Facebook page.  Half a million “likes” and 22,000 comments later, that cup of clam chowder bought Panera more goodwill and positive marketing than most of the cash it spent.  Let’s think about what went right and why.

  • Someone answered the phone.  Sounds like a small thing but how many companies do these days?
  • Someone made a decision.  Not “I’m not authorized to do that” or “I need to ask corporate”.  Someone decided to do the right thing and was empowered to make the decision stick.
  • Someone went beyond what they were asked – cookies too!
  • A brand behaved like a person!  The kid didn’t call Sue, the manager.  He called Panera which Sue represented.  The wholly human way in which she responded was perfect.
  • Panera didn’t tell the story – the kid did.  Panera didn’t manufacture anything (except the chowder and cookies).  This resonates because it’s real.

The best marketing these days tends to be just like this – treating your customers well and letting them tell the story for you.  Yelp, Trip Advisor, and other review sites are all about this, and their comments often get ported to other social sites (the usual suspects).  More time on service training and less on trying to create viral media might just get you to the same destination.

Did you see the story?  What do you think?

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