The Social Customer
Early on, the Internet helped consumers become better informed about product availability, pricing, quality and functionality. With the arrival of social media, that knowledge level has only increased, posing serious challenges to sellers.
“Social customers” are demanding, and not afraid to share their views. They:
- Research carefully before buying.
- Broadcast their experiences with the world, instantaneously.
- Post product reviews freely.
- Expect retailers, manufacturers and service providers to join in a dialog with them.
- Demand fast resolution to any product or service problems.
- Rely on peer response to get answers to questions about product usage, functionality, or performance.
Their numbers are growing, with the rapid expansion of smartphones. (Reaching 95 million users in the U.S. in 2011, according to FierceWireless.) And there is no expectation that consumers will change back to their old, quieter, less demanding ways.
So marketers are being forced to make changes. Some may be overwhelmed by the challenge—or even intimidated. But others are rising to the occasion, seeing the social consumer as an opportunity to engage, build relationships, loyalty and profits.
The Citibank example
Citibank, US-based but doing business in over 140 countries, is embracing social media whole heartedly. The company’s Twitter account, @AskCiti, has 6,353 followers, and has posted over 9,000 messages. Their Facebook page is liked by over 178,000 people.
In August of 2010, Citibank hired Frank Eliason, a customer service professional, as SVP of Social Media. According to an interview Eliason gave to the Peppers & Rogers Group, Citibank’s social media strategy involves listening to consumer conversations and proactively offering assistance. The social media channel is particularly useful for bank customers who hesitate to contact the bank through normal methods, for example, when they have an embarrassing financial problem.
The bank also takes questions on its blog, where informal dialog is encouraged. And there are scores of videos at the Citibank Channel on YouTube, with client testimonials, product demonstrations, and corporate information, like a speech by the chairman at the 2011 annual shareholders meeting. Once recent video features a Citibank employee in a frank discussion of the bank’s views on the touchy current issue of banking fees.
Marketers like Citibank are jumping into social media in the expectation that the benefits will outweigh the risks. Some best practices are beginning to emerge from the fray:
- Recognize that you have to be there, because your customers are there—and the conversation is already in full swing.
- Get your senior management educated about the new realities, and prepare them for some scary interactions.
- Make transparency your business policy. Consumers demand it—and you’re likely to get found out anyway.
- Actively maintain the conversations and relationships developed in social media. Invest in the manpower to support the interactions.
- Encourage employees to participate.
- Monitor what’s being said about your brand online, and jump in to provide your point of view, or solve customer problems, immediately.
How social media influences buying behavior
| Behavior before deciding to purchase | 2011 respondents |
| Research product information on blogs | 69% |
| Search for consumer or user reviews | 64% |
| Search on ratings websites (like Consumer Reports, Angie’s List, Yelp) | 50% |
| Impact of negative versus positive information | 2011 respondents |
| “Negative information I’ve read online has made me change my mind about purchasing a product or service recommended to me.” | 80% |
| “Positive information I’ve read online has reinforced my decision to purchase a product or service recommended to me.” | 87% |
Source: 2011 Cone Online Influence Trend Tracker
Christopher Carfi, an influential blogger on marketing subjects created a “manifesto” describing the characteristics and expectations of the social consumer.
THE SOCIAL CUSTOMER MANIFESTO
- I want to have a say.
- I don’t want to do business with idiots.
- I want to know when something is wrong, and what you’re going to do to fix it.
- I want to help shape things that I’ll find useful.
- I want to connect with others who are working on similar problems.
- I don’t want to be called by another salesperson. Ever. (Unless they have something useful. Then I want it yesterday.)
- I want to buy things on my schedule, not yours. I don’t care if it’s the end of your quarter.
- I want to know your selling process.
- I want to tell you when you’re screwing up. Conversely, I’m happy to tell you the things that you are doing well. I may even tell you what your competitors are doing.
- I want to do business with companies that act in a transparent and ethical manner.
- I want to know what’s next. We’re in partnership…where should we go?