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How Social Media can assist
in narrowing Service Gaps?
             1

                    Joanna Michaels
                        March 2012
Social Media Statistics, UK 2011
                             2

50 % of the UK population (approx. 30 mln;
source: Joanna Shields, VP of Facebook Europe,
March 2011).



 13 % of the UK population (approx. 7 mln,
 source: Wikipedia, Jan 2011)



 7 % (approx.6 mln plus,
 source: Linkedin Press Centre, March 2011)
Social Media & Customer Gap
                               3




                        Social Media:
               Spreading the word of mouse.
 Customer                                      Customer
                Clarifying expectations and
Expectations                                  Perceptions
                        perceptions.
Social Media & Customer Gap
                                       4
Platforms:

BLOGS, assessment of services and products; sharing comments and
discussions under the post


LINKEDIN Group Discussions, high reliability factor due to professional
character of the platform


TRIP ADVISOR, 40 million global users a month; cooperation with Facebook


AMAZON, customer ranking and reviews
Social Media & Customer Gap
                                         5
Key Factors

Development of New Customer Decision’s process
Review sharing is based on human trust and communication with real users
Learning from experiences of others helps in narrowing down choices


Result

Researching customer reviews became a mainstream activity and a critical
element of pre purchase process
Decisions are being made far away from the company’s website


Possible limitations
Where everyone is a critic… the question of reliability (“The Attack of Trip
Advisors”)
Social Media & Provider Gap:
                      The Listening Gap
                                    6




                              Social Media:             Company’s
   Customer            Where Listening is the key.   understanding of
 Customer Exp
  Expectations            Listen then Engage.             these
                       Increased Understanding.        expectations
Social Media & Listening Gap
                                                         7

Social Media a platform for Market Research

Key Factors

 High Visibility: Access to wide range of current
    and potential customers

 Authenticity: Listening to customers in environment
    where they feel comfortable

Financial Factors: Gathering valuable suggestions/ideas (crowd-sourcing) as
a mean to reducing product/service development expenditure



photo credit: celinenadeau</a> via photopin</a> cc</a>
Social Media & Listening Gap
                                            8

Examples


How companies use social media for enhancing the understanding of customers’
preferences?

“My Starbucks Idea”; Starbucks’ own version of a social network, customers can
share their ideas and expectations on Starbuck products and services

“Ideas in Action”(blog), managed by Starbucks employees, what happens with
suggestions from the audience?

 “Dell’s Idea Storm” (very similar initiative)
Social Media & Listening Gap
                                                        9
 IMPORTANT: Using Monitoring Tools for filtering the buzz, especially for the
    negative comments


Useful Tools:
 Technorati – searches through the blogosphere.
 Google Blog Search – searches through the blogosphere.
 BlogPulse – searches through the blogosphere.
 Twitter Search – provides results only from Twitter.
 OneRiot – searches just the URLs shared on Twitter.
 FriendFeed – searches through variety of social media platforms.




photo credit: kanelstrand</a> via photopin</a> cc</a>
Social Media & Listening Gap
                                                                  10
 SOCIAL MEDIA a platform of detecting the most popular customer trends
  within specific sector

Key Factors

 Monitoring topic popularity/ lack of


 Detecting the growing trend and getting involved


 Starting a trend and monitoring its progress


 Identifying opportunities when looking for new product or service




 photo credit: Mike Chen aka Full Time Taekwondo Dad </a> via photopin</a> cc</a>
Social Media & Listening Gap
                                           11
 IMPORTANT: Majority of tools allow search results as time-based line graphs
  and filtering results down to individual search result: news article, blog post, or
  tweet that mentioned the keyword.


Useful Tools:
 Google Trends – displays the keyword search volume and news articles over
  time, including search volume within geographic regions, cities, and languages.
 bing xRank – displays the keyword search volume over time, including related
  keyword phrases, news, videos, and images.
 Trendrr – searches through a range of social media sites and displays the
  keyword search volume on each over time.
 BlogPulse – searches through the blogosphere and displays uses of the keyword
  over time.
 Hashtags – searches through Twitter’s hashtags and displays uses of the
  hashtag (if it exists) over time
Social Media & Listening Gap
                                         12
Possible Limitations


The risk of risk of overvaluing social media feedback.



Self Selective audience.


Heterogenous audience.


All platforms have inherent biases based on the types of people who use their
services.
Social Media & Listening Gap
                                                        13

SOCIAL MEDIA a platform for Service Recovery


Key Factors


The threat of unanswered complaints
Time of response
Problem or Opportunity?




photo credit: Life As Art</a> via photopin</a> cc</a>
Social Media & Listening Gap
                                            14
Service Recovery : The winners and the losers


Case Studies:

Nestle. The sticky side of social media.


Domino’s pizza. Embracing Criticism.


Ryanair. Lunatic bloggers.
Social Media & Listening Gap
                                        15
SOCIAL MEDIA a platform for Service Recovery: Things to remember

Social media means that companies have to accept their brand is being
discussed, both in positive and negative ways

Hiding away from criticism leaves you with no control over the conversation


Being defensive and arrogant will get you nowhere: Do not insult your customers


Focus on long-term business strategy rather than the immediate need to repress
criticism

Development of Policies and Employee’s training
References
                                                            16
 Richardson, N. ,Gosnay, R.M. and Carroll A., A quick start guide to Social Media Marketing. High- impact, low cost
    marketing that works. 2010. London: Kogan Page ltd.

 Scott, D.M. New Rules of Marketing and PR. 2010, New Jersey: John Wiley & Sons Inc.


 Zeithaml, V.A, Bitner, M.J. and Geler, D.D. Marketing Services. Integrating Customer Focus across the Firm. 5th ed,
    2009.

   http://www.telegraph.co.uk/technology/facebook/8356755/Facebook-used-by-half-the-UK-population.html (Accessed: 4
    October 2011).

 http://www.medialifemagazine.com/artman2/publish/social-media/The-power-of-consumer-product-reviews.asp
    (Accessed: 20 October 2011).

 http://www.socitm.net/press/article/129/council_ict_managers_should_lead_their_organisations_to_embrace_social_media_rath
    (Accessed: 28 October 2011).

 http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1081912566&type=RESOURCES (Accessed: 10 November
    2011).
References
                                                          17
 http://www.guardian.co.uk/media/pda/2009/feb/25/ryanair-socialnetworking (Accessed: 21 October 2011).


 http://news.cnet.com/8301-13577_3-20000805-36.html (Accessed: 8 November 2011).


 http://blog.hubspot.com/blog/tabid/6307/bid/5426/How-Dominos-is-Using-Customer-Feedback-and-Social-Media-
  Outreach-to-Reinvent-Its-Brand.aspx (Accessed: 21 October 2011).
 http://www.pcworld.com/businesscenter/article/218751/how_not_to_use_twitter_learn_from_kenneth_cole.html
  (Accessed: 15 January 2012).

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How Social Media can assist in narrowing Service Gaps?

  • 1. How Social Media can assist in narrowing Service Gaps? 1 Joanna Michaels March 2012
  • 2. Social Media Statistics, UK 2011 2 50 % of the UK population (approx. 30 mln; source: Joanna Shields, VP of Facebook Europe, March 2011). 13 % of the UK population (approx. 7 mln, source: Wikipedia, Jan 2011) 7 % (approx.6 mln plus, source: Linkedin Press Centre, March 2011)
  • 3. Social Media & Customer Gap 3 Social Media: Spreading the word of mouse. Customer Customer Clarifying expectations and Expectations Perceptions perceptions.
  • 4. Social Media & Customer Gap 4 Platforms: BLOGS, assessment of services and products; sharing comments and discussions under the post LINKEDIN Group Discussions, high reliability factor due to professional character of the platform TRIP ADVISOR, 40 million global users a month; cooperation with Facebook AMAZON, customer ranking and reviews
  • 5. Social Media & Customer Gap 5 Key Factors Development of New Customer Decision’s process Review sharing is based on human trust and communication with real users Learning from experiences of others helps in narrowing down choices Result Researching customer reviews became a mainstream activity and a critical element of pre purchase process Decisions are being made far away from the company’s website Possible limitations Where everyone is a critic… the question of reliability (“The Attack of Trip Advisors”)
  • 6. Social Media & Provider Gap: The Listening Gap 6 Social Media: Company’s Customer Where Listening is the key. understanding of  Customer Exp Expectations Listen then Engage. these Increased Understanding. expectations
  • 7. Social Media & Listening Gap 7 Social Media a platform for Market Research Key Factors  High Visibility: Access to wide range of current and potential customers  Authenticity: Listening to customers in environment where they feel comfortable Financial Factors: Gathering valuable suggestions/ideas (crowd-sourcing) as a mean to reducing product/service development expenditure photo credit: celinenadeau</a> via photopin</a> cc</a>
  • 8. Social Media & Listening Gap 8 Examples How companies use social media for enhancing the understanding of customers’ preferences? “My Starbucks Idea”; Starbucks’ own version of a social network, customers can share their ideas and expectations on Starbuck products and services “Ideas in Action”(blog), managed by Starbucks employees, what happens with suggestions from the audience?  “Dell’s Idea Storm” (very similar initiative)
  • 9. Social Media & Listening Gap 9  IMPORTANT: Using Monitoring Tools for filtering the buzz, especially for the negative comments Useful Tools:  Technorati – searches through the blogosphere.  Google Blog Search – searches through the blogosphere.  BlogPulse – searches through the blogosphere.  Twitter Search – provides results only from Twitter.  OneRiot – searches just the URLs shared on Twitter.  FriendFeed – searches through variety of social media platforms. photo credit: kanelstrand</a> via photopin</a> cc</a>
  • 10. Social Media & Listening Gap 10  SOCIAL MEDIA a platform of detecting the most popular customer trends within specific sector Key Factors  Monitoring topic popularity/ lack of  Detecting the growing trend and getting involved  Starting a trend and monitoring its progress  Identifying opportunities when looking for new product or service photo credit: Mike Chen aka Full Time Taekwondo Dad </a> via photopin</a> cc</a>
  • 11. Social Media & Listening Gap 11  IMPORTANT: Majority of tools allow search results as time-based line graphs and filtering results down to individual search result: news article, blog post, or tweet that mentioned the keyword. Useful Tools:  Google Trends – displays the keyword search volume and news articles over time, including search volume within geographic regions, cities, and languages.  bing xRank – displays the keyword search volume over time, including related keyword phrases, news, videos, and images.  Trendrr – searches through a range of social media sites and displays the keyword search volume on each over time.  BlogPulse – searches through the blogosphere and displays uses of the keyword over time.  Hashtags – searches through Twitter’s hashtags and displays uses of the hashtag (if it exists) over time
  • 12. Social Media & Listening Gap 12 Possible Limitations The risk of risk of overvaluing social media feedback. Self Selective audience. Heterogenous audience. All platforms have inherent biases based on the types of people who use their services.
  • 13. Social Media & Listening Gap 13 SOCIAL MEDIA a platform for Service Recovery Key Factors The threat of unanswered complaints Time of response Problem or Opportunity? photo credit: Life As Art</a> via photopin</a> cc</a>
  • 14. Social Media & Listening Gap 14 Service Recovery : The winners and the losers Case Studies: Nestle. The sticky side of social media. Domino’s pizza. Embracing Criticism. Ryanair. Lunatic bloggers.
  • 15. Social Media & Listening Gap 15 SOCIAL MEDIA a platform for Service Recovery: Things to remember Social media means that companies have to accept their brand is being discussed, both in positive and negative ways Hiding away from criticism leaves you with no control over the conversation Being defensive and arrogant will get you nowhere: Do not insult your customers Focus on long-term business strategy rather than the immediate need to repress criticism Development of Policies and Employee’s training
  • 16. References 16  Richardson, N. ,Gosnay, R.M. and Carroll A., A quick start guide to Social Media Marketing. High- impact, low cost marketing that works. 2010. London: Kogan Page ltd.  Scott, D.M. New Rules of Marketing and PR. 2010, New Jersey: John Wiley & Sons Inc.  Zeithaml, V.A, Bitner, M.J. and Geler, D.D. Marketing Services. Integrating Customer Focus across the Firm. 5th ed, 2009.  http://www.telegraph.co.uk/technology/facebook/8356755/Facebook-used-by-half-the-UK-population.html (Accessed: 4 October 2011).  http://www.medialifemagazine.com/artman2/publish/social-media/The-power-of-consumer-product-reviews.asp (Accessed: 20 October 2011).  http://www.socitm.net/press/article/129/council_ict_managers_should_lead_their_organisations_to_embrace_social_media_rath (Accessed: 28 October 2011).  http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1081912566&type=RESOURCES (Accessed: 10 November 2011).
  • 17. References 17  http://www.guardian.co.uk/media/pda/2009/feb/25/ryanair-socialnetworking (Accessed: 21 October 2011).  http://news.cnet.com/8301-13577_3-20000805-36.html (Accessed: 8 November 2011).  http://blog.hubspot.com/blog/tabid/6307/bid/5426/How-Dominos-is-Using-Customer-Feedback-and-Social-Media- Outreach-to-Reinvent-Its-Brand.aspx (Accessed: 21 October 2011).  http://www.pcworld.com/businesscenter/article/218751/how_not_to_use_twitter_learn_from_kenneth_cole.html (Accessed: 15 January 2012).