Part 5 in a series introducing my new book, The End of Business as Usual…this is not content from the book, this series serves as its prequel.
What do people want? If you don’t know, why not ask them?
Seems like a common sense question to ask. However, when it comes to customer engagement and relations, common sense appears to be an uncommon virtue. The good news is that asking customers what they need is now easier than ever before. Learning about what they prefer or what they’re missing based on their actions and words is prevalent within social media. Asking them directly is also a powerful form of engagement. At the very least the act expresses intent to learn and perhaps adapt.
Too many research projects or studies these days focus on what brands are doing in social media rather than what they should be doing. And at the same time, most are conducted from the perspective of the business and not from the perspective of the people affected by the actions or missteps of brands.
In February 2011 ExactTarget and CoTweet released a revealing study “The Social Breakup,” that provided a glimpse into the oft missed customer point of view. While many reports highlight why people Like and follow brands, this study divulged why consumers “break up” with brands in social networks.
Like any interpersonal relationship, the consumer-brand relationship has a distinct and fascinating life cycle. The relationship begins with the initial “spark”—the decision by the consumer to become a SUBSCRIBER, FAN, or FOLLOWER—followed by a blissful honeymoon period in which the consumer gets to know the company better through communications and social interactions. As the relationship progresses, the frequency and quality of interactions shapes the consumer’s desire to take the relationship to the next level.
If the company fails any of these relationship tests, a “social break-up”—i.e., an “unsubscribe,” “unfan,” “unlike,” or “unfollow”—is all but inevitable. When the consumer is no longer happy in the relationship, they will actively break off contact with the company…or just ignore their communications in the hopes the company will get the message that it’s over.
According to the study, 55% of Facebook users have liked a brand and then later decided they no longer wish to see the company’s posts. 51% of fans say that they really aren’t fans as they don’t visit the page or web site after the “Like.” 71% of consumers say that they’re now becoming more selective.
When asked why the honeymoon is over, the top reasons for unliking a brand in Facebook are:
1. The company posts too frequently
2. My wall was becoming too crowded with marketing posts
3. The content was too repetitive or boring
The reasons, regardless of percentage are equally revealing…
I only “Liked” the company to take advantage of an offer.
They didn’t offer enough deals. (note: if you combine these two details, “deals” would become the one of the top reasons people connected and disconnected from brands)
Their posts were too promotional
The content wasn’t relevant.
The company’s posts were too chitty-chatty without adding value
Twitter is a much different network than Facebook. However, that doesn’t stop brands from attempting to connect with customers. And, it doesn’t stop customers from experimenting with brand engagement. However, 41% of Twitter users followed a brand only to unfollow them shortly thereafter.
Again, when you ask the customer why they decided to unfollow their favorite brands, the answers are as difficult to hear as they are enlightening.
1. The content was too repetitive or boring
2. My stream was too crowded with marketing posts
3. The company posted too frequently
The remainder of responses are identical to the reasons shared earlier in reference to Facebook.
Not enough deals.
Too conversational.
Irrelevant.
Mind the (Customer) Gap
It comes down to something that’s repeated so often throughout our lives that we may have become immune to the importance of its message, “Mind the gap.” This cautionary expression is designed to protect us from our own potential missteps. But in business, we must mind many important gaps, one of which represents a dangerous pitfall in the evolving landscape of business.
The customer gap represents the distance between what we think customers want and what they actually want. The definition of this gap is different for every business and it is something that we must overcome.
Today we see so many brands flocking to Twitter and attempting to befriend new customers without realizing that they’re willfully stepping directly into an abyss of irrelevance.
It starts with answering some very basic, but vital questions.
What do customers value?
What do customers value in social networks with regard to the culture of each?
Why are customers seeking or reacting to brands in these networks?
What turns them off?
Why do they unlike or unfollow brands?
How can we introduce value to induce a sense of appreciation and ultimately loyalty or advocacy?
The answers to these questions exist. It just starts with asking the questions. More importantly, it requires that you do something with the answers…that’s the hard part.
When Perception isn’t Reality
IBM recently set out to measure the gap between customers and the corresponding awareness of businesses and their ability to meet the needs of consumers in social networks. Authored by Carolyn Heller Baird, Global CRM Research Leader with the IBM Institute for Business Value, IBM Global Services and Gautam Parasnis, Partner and Vice President for IBM Global Business Services, the study, “From Social Media to Social CRM,” teaches us about the emerging social consumer. Coincidentally, we learn more about their preferences than many social media best practices reveal to date.
The report begins with a level-setting that is refreshing and also challenging…
Understanding what customers value, especially when they are in the unique environment of a social platform, is a critical first step toward building a Social CRM strategy. What triggers a customer to seek out a company or brand via social media? What would make a customer reluctant to interact? And does social engagement influence customers’ feelings of loyalty toward a company as businesses hope it does?
The answer lies in one of the reports greatest insights and also one of its most obvious, “Obtaining tangible value is the top reason most consumers seek out businesses via social sites.”
While it’s easy to blame it on the youth, the reality is that the DNA of social customers is indiscriminant of age or any other demographic for that matter. This is more about psychographics, the linkage of people through common interests (note: interest graph) than it is demographics or the social graph.
As discussed earlier in this series, consumers are investing time in social networks to connect with friends and family. According to the IBM study, the total number of users in social networks doing so accounts for 70% of all social consumers. The subsequent reasons individuals interact in social networks is to access news and entertainment at 49%and 46% respectively. 42% desire to share their opinions and another 30% seek to access reviews. But what of those seeking to engage in conversations or relationships with brands? They number at a mere 23%.
IBM mapped the chasm between brands and consumers highlighting the separation that divides intention and actuality. 65% of businesses view social media as a new source for revenue. At the same time however, consumers claim that it is they who expect to realize value from businesses in social media. Nevertheless, the discrepancy between what customers want and what businesses think they want reside at opposite ends of the stream.
The perception gap is reminiscent of couples therapy where each individual sees the world so entirely differently that they require mediation to meet one another in the middle.
If you ask consumers why they interact with companies in social networks, they’ll tell you it’s to receive a discount (61%) or to make a purchase (55%). If you ask a business why they think consumers follow them in social networks their response is likely to mirror IBM’s results. 73% believe that consumers wish to learn about new products and an additional 71% connect to receive general information.
Perhaps most telling is the severity of misperceptions between consumers and brands. While consumers expressed the desire to receive discounts or make purchases as the top reasons for engagement in social media, businesses view these actions as the lowest two motives for connecting in the social web.
To “bridge’” these gaps requires a social CRM strategy and infrastructure to foster collaborative experiences through engagement that customers value. Social CRM tends to focus on technology and systems to provide stakeholders with access to information and processes to support informed engagement. sCRM can also greatly benefit by adapting to the 5th P in order to inspire updated methodologies for engagement that today’s customer can appreciate. It is as much a function of infrastructure as it is a matter of adapting to human nature.
Next Steps
Brands must face the tough reality that social media is in direct conflict with the mode of business as usual. Businesses must first with understanding the wants and corresponding behaviors of the social consumer to effectively adapt.
Introduce mutually beneficial engagement strategies and programs that are unique to the expectations of each community. Technology is an enabler, but customer service works best when it’s designed to serve.
Think like a customer. Or better said, take the insights that are gleaned from gathering intelligence to become the customer you’re trying to reach.
Social consumers are not looking for information, recreations of your Website or links to existing, probably outdated web pages. Recognize that the social consumer is quite content operating without your interference. If you’re unsure what they want, ask them. Then build experiences that deliver value and also build experiences that are shareable. K.I.S.S Keep it Simple and Shareable or Keep It Significant and Shareable.
Elvis once famously sang, we need “A little less conversation and a little more action…”
The End of Business as Usual will be available in the coming weeks. You can order now at Amazon | Barnes and Noble | 800CEOREAD.
Part 1 – Digital Darwinism, Who’s Next
Part 2 – Social Media’s Impending Flood of Customer Unlikes and Unfollows
Part 3 – Social Media Customer Service is a Failure!
Part 4 – We are the 5th P: People
it is very informative! thansk!
Hi Brian,
Long time since I’ve commented here, but do keep up with your excellent blog. Thanks for all the great information you provide on a consistent basis!
Just a couple thoughts… First, the P for people is not a new paradigm for direct sellers… (Tupperware, Avon, Mary Kay, et al). One of the great early leaders in this industry always said if you provide the right product at the right price with the right plan, the people will build the organization. Of course, in direct selling, the plan includes something for everyone beyond the product, from a new social circle that provides reward and recognition, to a way to earn extra income. The customer decides what they need and the level of involvement with the organization, but all are welcome. Perhaps there are some lessons here for retailers in what people “really” want?
I find it interesting that Steve Jobs seemed to have figured all this out better than most. It’s just cool to own Apple products or be an Apple fan. Even I know that, and I’m a PC user! 🙂
Second, I find I follow many companies because 1) I support their cause (mainly nonprofits) and/or 2) I want to connect and learn with or from them about something I’m interested in, mainly professionally. I rarely follow a company for coupons or special deals, however I will visit their website or subscribe to their emails to get these. These avenues seem less intrusive to me that inviting them into my social stream.
Thanks, Brian,
Jenifer Olson
A very thoughtful comment Jennifer. Thank you.
My, my, my.
These vital questions . . .
What do customers value?
What do customers value in social networks with regard to the culture of each?
Why are customers seeking or reacting to brands in these networks?
What turns them off?
Why do they unlike or unfollow brands?
. . . that you gave to us in order to elicit what our audience wants from us are bad ass. Common sense but not commonly posed to the people who pay for our hookers and coke. And bills. It’s important to pay those too.
And when we find the real answer, not the answer based on what we like and assume they’ll like, it’s off to the races. Thank You Brian for bringing so much value to this wild wild west topic.
This makes a lot of sense.
complete-privacy.us.tc
I agree with Brian here. For too long have we been looking at what businesses are doing on social media instead of focusing on researching what they should be doing and how they can they provide value for their followers. I think that too many of them are concerned too much about how many likes they receive, what is the ROI on Facebook, Twitter. I look at social media as great after-sale service where my customer can easily get in touch with me following a sale and ask questions about the products etc. What else is social media good for? well many things, we just have to figure out how to effectively use it for what we want instead of trying to get more likes than our competitors and filling our customers feeds with promotional stuff.
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Excellent analysis, Brian. Companies continue to think they know what a customer wants yet rarely will they sit across the table and actually look at themselves through the eyes of the customer. What’s unique about social media is it magnifies the perception gap so much, yet companies still won’t try to listen. Companies find it much easier to build messages in their own myopic vacuum and broadcast it out on their own terms. Fear still permeates. They are afraid to engage, so they blast out their one-sided messages via a new medium and pretend they are engaging. Let the “unlikes” continue.
Ask people what they need and they’ll tell you what they want. And what you need to give customers is what they need, not what they want.
And, as you say, they have no idea at all! Whatever they say!
Given this evidence, would you recommend that brands start offering more discounts or giveaways in order to increase customer engagement on social media?
Putting your self in your
customers shoes always works, and gives you better understanding of what
to expect and how your services are. Also a great opportunity to solve
and resolve any issues and flaws that
you may have, which were not visible until you saw it from the customers
eyes.
Nice post. It is important to know about the customers value. Customer Satisfaction must be the primary motto of every company. Thanks for sharing this post with us.
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I really enjoyed this blog post! I think more often than not,
companies fail to recognize the “gap” you mentioned. Instead of focusing on what the consumer actually wants, companies look at what it perceives consumers to want. I have personally “unliked” or
“unfollowed” many companies based on the same reasons you listed
above. I think it is incredibly important to remember companies need to
be engaged in a conversation because,
after all, everyone wants to be heard. I think this applies to all forms of
public relations and serves and a great reminder about the importance of two-way communication.
Thanks!
-Hope Peterson
Platform Magazine Editor/Writer
I find this post to be fairly accurate. There does seem to be a gap to where businesses are clueless as to what is the true purpose of their social media. What do consumers look for in Tweets and posts? However, I do have to give a good deal of the credit for these misconceptions to the businesses themselves. If you simply, post offers and giveaways no one is going to stay for the real content, which gives us the gap. I believe businesses need to be more conscious of what they are posting and decide if that is really the direction that they want their followers to go.
Just recently discovered this blog and like it a lot (and not just because it uses IBM content;-) because it nicely links with my assertions on how companies need to provide a simple channel through existing or new internal or leveraging existing channels, like Facebook, to directly get intelligence in real-time of what a particular customer needs. I have spent years engaging large corporations around enterprise software and I am surprised that they rely nearly 100% on sifting through purchase, usage and click-stream data via simple and increasingly advanced BI tools (incl. predictive analytics) to ascertain customer motivations. These are very costly in terms of acquisition, roll-out and maintenance. While they are useful for bigger, strategic answers, I always asked myself companies never ask a customer straight up. The closest they get to this type of direct intelligence is by doing surveys but even here we are looking at an aggregated view. I guess (see my blog on Customer Motivation Management at http://masteringdatamanagement.com/index.php/author/szoder/) I am looking at a combination of Facebook, Angie’s List, CRM/MDM and a reverse auction technology like Craigslist to enable this environment.