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Talking to customers:
characteristics of effective
social media conversations

      Peter Kerkhof

      p.kerkhof@vu.nl

      @peterkerkhof
2007
  1st iPhone
  12 million Facebook users
  Daily 5000 tweets worldwide
  4000 tweeps in NL
2007
  1st iPhone
  12 million Facebook users     2011
  Daily 5000 tweets worldwide     130 million iPhones
  4000 tweeps in NL               Half million new Android devices
                                    daily
                                   62 million iPads
                                   1.7 million tablets in NL
                                   800 million Facebook gebruikers
                                   Daily 250 million tweets
                                   1.3 million active tweeps in NL
Brands on Twitter

 19% of all tweets is brand related

 20% of all brand related tweets contains positive or
  negative sentiment

 55% positive, 33% is negative

 2011: 10 million brand experiences per day
                                       (Source: Jansen et al., 2009)
The Yelp effect




                  = +4.5% revenues
Business communication 2.0

 Less about advertising

 Using editorial   content for business purposes
 Engaging in public   conversations with consumers
The decline of advertising
 Advertising:
   Growing irritation
   Declining credibility
   Declining
    effectiveness
The decline of advertising
                            Advertising elasticities 1962-1981
                Old estimate 1962-1981                    New estimate 1940-1979
                New estimate 1980-2004

                         0.22
                                                   0.13
                                                                            0.10




Advertising elasticity: % growth in sales after +1% growth in advertising expenditures
Source: Sethuraman, Tellis & Briesch (2011).
The rise of content marketing

 “the art of communicating with your customers and
  prospects without selling. It is non-interruption
  marketing. Instead of pitching your products or services,
  you are delivering information that makes your buyer
  more intelligent. The essence of this content strategy is
  the belief that if we, as businesses, deliver consistent,
  ongoing valuable information to buyers, they ultimately
  reward us with their business and loyalty.”

                      http://www.junta42.com/resources/what-is-content-marketing.aspx
The rise of content marketing

40 billion dollar, 26% of US marketingbudget (Custom Content Council,
2012)
Content marketing in print
Content marketing on TV
Digital content marketing

 Video                   Microblogs

 Websites                Utilities

 Apps                    E-mail newsletters

 Online magazines        Communities

 Blogs                   ………..

 Brand pages in SNS’s
Hennig-Thurau et al. (2010): The Impact of New Media on
Customer Relationships, Journal of Service Research, vol.
13(3), pp. 311-330.
Social media

 Less control

 Empowered consumers:
   A skeptical crowd
   Access to information about
    product quality from trusted
    sources
   Instant access to own media
   Instant acces to company
    social media sites
Overcoming skepticism &
distance
 1-to-1 relational communication, with a skeptical audience

 Create relevant content & conversations that……..
    Help
    Solve problems
    Inform
    Educate
    Entertain

 Establish immediacy & closeness in conversations
Immediacy

 Immediacy in business: be fast

 Immediacy in psychology /communication:
  “communication behaviors that enhance closeness to
  and nonverbal interaction with each other” (Mehrabian, 1971)

 Teacher immediacy: the degree of perceived closeness
  between teacher and student (Gorham, 1988; Christophel, 1989)
Mediated immediacy
(O’Sullivan, Hunt & Lippert, 2004)




 Mediated immediacy: “communicative cues in
  mediated channels that can shape perceptions of
  psychological closeness between interactants” (O’Sullivan,
    Hunt & Lippert, 2004, p. 471)


 Mediated immediacy behaviors: approachability and
  regard for other
     approachability: you can approach me
           self-disclosure, expressiveness, accessibility, informality, similarity, familiarity,
            humor, attractiveness, and expertise
     regard: I am approaching you
           personalness, engagement, helpfulness, politeness
Effects of mediated immediacy

 Higher course motivation, more teacher liking (O’Sullivan, Hunt
   & Lippert, 2004, Study 2)


 Linguistic immediacy cues exert stronger effects than
  presentational cues (O’Sullivan, Hunt & Lippert, 2004, Study 3)

 More self-disclosure on a health forum, more social trust,
  more positive outcome expectations (Lee & LaRose, 2011)
Relational maintenance in online
PR   (Kelleher & Miller, 2006; Kelleher, 2009)



 Corporate blogs:
   Being open to dialog
   Using invitational language
   Providing prompt feedback

 Leading to higher credibility & trust through ……
   conversational human voice
   communicated relational commitment
Conversational human voice




           “an engaging and natural style of
           organizational communication as
           perceived by an organization’s publics
           based on interactions between
           individuals in the organization and
           individuals in publics” (Kelleher, 2009, p.
           177)
Communicated relational
commitment

 “a type of content of communication in which members
  of an organization work to express their commitment to
  building and maintaining a relationship” (Kelleher, 2009, p.176)
Our studies (w. Camiel Beukeboom & Sonja Utz, VU Univ.)
 Experimental studies

 Online customer care: customer complaint + various responses
    Study 1
      Immediacy low vs. high
      Apologies vs. redress
      Control group
    Study 2:
      Immediacy low vs. high
      Apologies vs. refutation
      Company size (small vs. Large)

 Crisis communication:
    Study 3: immediacy + content
      Immediacy low vs. high
      Apologies vs. denial
Study 1
 Low immediacy
   “Based on your story, we would like to offer our sincere
    apologies for the inconvenience. We would like to get in
    touch with you about this problem.”

 High immediacy
   “My name is Thomas de Vries. (…) Based on your story, I
    would like to offer my sincere apologies for the
    inconvenience. I would like to personally get in touch with
    you about this problem.“.

 Apologies vs. redress

 Control group: no company response
Study 1

 Dependent variable:
   corporate credibility

 Mediators:
   conversational human voice
   communicated relational commitment
   underdog effect (Vandello, Goldschmied, & Richards, 2007)

 Control group: cognitive responses
Study 1
 Communicated relational commitment:
   (F(1, 118) = 14.45, p < . 001; Mlow immediacy = 3.81, Mhigh immediacy
    = 4.61)

 Conversational human voice
   (F(1, 118) = 7.81, p < . 01; Mlow immediacy = 3.63, Mhigh immediacy =
    4.12)

 Underdog effect:
   (F(1, 118) = 4.63, p < . 05; Mlow immediacy = 4.72, Mhigh immediacy =
    4.30)
   (F(1, 118) = 5.65, p < . 05; Mapology= 4.74, Mredress = 4.28)
Study 1

 No other effects of apologies vs. redress

 No interaction effects

 Indirect effects of immediacy on corporate credibility
   (bootstrapping)
Study 1

 No other effects of apologies vs. redress

 No interaction effects

 Indirect effects of immediacy on corporate credibility
   (bootstrapping)
Positive cognitive brand
responses
60.0%



50.0%



40.0%



30.0%



20.0%



10.0%



 0.0%
    High immediacy /apologiesImmediacy, apologies immediacy /redress immediacy /redress
                        Low                  High                 Low                     No response
Study 2: What if distance is
already low?
 Include a manipulation of organizational size /closeness
   “Company A is international market leader in navigation-
    and communication systems. Company A has offices on
    every continent and about 7000 employees worldwide…”.
   “Company B is a small family company in navigation- and
    communication systems. Company B is located in Eindhoven
    and has about 40 employees at this location…”.

 Immediacy high /low; Apology vs. refutation of
  complaint

 DV’s: Brand trust, communicated relational commitment,
  conversational human voice
Study 2
 Conversational human voice & communicated relational
  commitment
   Main effects of immediacy
   Interaction immediacy x company size

 Brand trust: Interaction immediacy x company size
               4

              3.5

               3

              2.5                          Low immedicay
                                           High immedicacy
               2

              1.5

               1
                    Small       Large
Study 3
Bloggers’ comments: low
immediacy
 It took too long

 H&M talked to journalists, not to fans

 Communication was highly standardized
   “You know whats funny? that you are just simply pasting the
    same response to every comment about this shameful
    situation you are in. Why dont you post something where
    you actually admit and explain…”

 Corporate tone of voice

 No apologies were made
Study 3

 Participants read an online news story about the event,
  followed by one of four responses

 Immediacy (low/high) & denial vs. apologies

 Denial vs. apologies:
   Apologies are less often used but are more effective since
    they signal taking responsibility
      more effective in the case of integrity violations
   Denial is often used but less effective (Kim, Avery & Lariscy, 2009)
Study design (low immediacy/apology)
Study design (high immediacy/denial)
Study design

 Dependent variables:
   Negative /positive cognitive responses
   Communicated relational commitment
   Conversational human voice
   Attitude towards the response
   Corporate credibility
   Crisis responsibility
Study 3: Immediacy effects
 4




3.5



                                                             Low immediacy
 3

                                                             High immediacy
2.5




 2

      Conversational human voice   Communicated Relational
                 (1-5)                commitment (1-5)
Study 3: Immediacy effects
       % Negative cognitive responses
 50%


 40%


 30%


 20%


 10%


 0%


       Personal              Corporate
Study 3: Apologies vs. denial
  6


 5.5


  5


 4.5


  4
                                                                  Apologies
 3.5                                                              Denial

  3


 2.5


  2

       Credibility (1-7)   Responsibility (1- Att. Response (1-
                                 5)                   5)
Predicting corporate credibility
   Regression analysis: predicting corporate credibility

                                           Corporate credibility

   Prior brand commitment                      0.31**
   Conversational human voice                  0.47**
   Attitude towards the response               0.03ns
   Communicated relational commitment         -0.06ns
   Negative cognitive responses                0.11ns
   Positive cognitive responses                0.13ns
   Crisis responsibility                      -0.01ns

   R2(adj)=.37***
Conclusion

 Effects of immediacy
   Direct on credibility
   Indirect through
      Communicated relational commitment
      Conversational human voice

 Immediacy helps to narrow the gap between
  organizations /brands and consumers
Talking to customers: characteristics of effective social media conversations

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Talking to customers: characteristics of effective social media conversations

  • 1. Talking to customers: characteristics of effective social media conversations Peter Kerkhof p.kerkhof@vu.nl @peterkerkhof
  • 2. 2007  1st iPhone  12 million Facebook users  Daily 5000 tweets worldwide  4000 tweeps in NL
  • 3. 2007  1st iPhone  12 million Facebook users 2011  Daily 5000 tweets worldwide  130 million iPhones  4000 tweeps in NL  Half million new Android devices daily  62 million iPads  1.7 million tablets in NL  800 million Facebook gebruikers  Daily 250 million tweets  1.3 million active tweeps in NL
  • 4. Brands on Twitter  19% of all tweets is brand related  20% of all brand related tweets contains positive or negative sentiment  55% positive, 33% is negative  2011: 10 million brand experiences per day (Source: Jansen et al., 2009)
  • 5.
  • 6.
  • 7.
  • 8. The Yelp effect = +4.5% revenues
  • 9. Business communication 2.0  Less about advertising  Using editorial content for business purposes  Engaging in public conversations with consumers
  • 10. The decline of advertising  Advertising:  Growing irritation  Declining credibility  Declining effectiveness
  • 11.
  • 12. The decline of advertising Advertising elasticities 1962-1981 Old estimate 1962-1981 New estimate 1940-1979 New estimate 1980-2004 0.22 0.13 0.10 Advertising elasticity: % growth in sales after +1% growth in advertising expenditures Source: Sethuraman, Tellis & Briesch (2011).
  • 13. The rise of content marketing  “the art of communicating with your customers and prospects without selling. It is non-interruption marketing. Instead of pitching your products or services, you are delivering information that makes your buyer more intelligent. The essence of this content strategy is the belief that if we, as businesses, deliver consistent, ongoing valuable information to buyers, they ultimately reward us with their business and loyalty.” http://www.junta42.com/resources/what-is-content-marketing.aspx
  • 14. The rise of content marketing 40 billion dollar, 26% of US marketingbudget (Custom Content Council, 2012)
  • 17. Digital content marketing  Video  Microblogs  Websites  Utilities  Apps  E-mail newsletters  Online magazines  Communities  Blogs  ………..  Brand pages in SNS’s
  • 18.
  • 19.
  • 20. Hennig-Thurau et al. (2010): The Impact of New Media on Customer Relationships, Journal of Service Research, vol. 13(3), pp. 311-330.
  • 21. Social media  Less control  Empowered consumers:  A skeptical crowd  Access to information about product quality from trusted sources  Instant access to own media  Instant acces to company social media sites
  • 22.
  • 23.
  • 24. Overcoming skepticism & distance  1-to-1 relational communication, with a skeptical audience  Create relevant content & conversations that……..  Help  Solve problems  Inform  Educate  Entertain  Establish immediacy & closeness in conversations
  • 25. Immediacy  Immediacy in business: be fast  Immediacy in psychology /communication: “communication behaviors that enhance closeness to and nonverbal interaction with each other” (Mehrabian, 1971)  Teacher immediacy: the degree of perceived closeness between teacher and student (Gorham, 1988; Christophel, 1989)
  • 26. Mediated immediacy (O’Sullivan, Hunt & Lippert, 2004)  Mediated immediacy: “communicative cues in mediated channels that can shape perceptions of psychological closeness between interactants” (O’Sullivan, Hunt & Lippert, 2004, p. 471)  Mediated immediacy behaviors: approachability and regard for other  approachability: you can approach me  self-disclosure, expressiveness, accessibility, informality, similarity, familiarity, humor, attractiveness, and expertise  regard: I am approaching you  personalness, engagement, helpfulness, politeness
  • 27.
  • 28. Effects of mediated immediacy  Higher course motivation, more teacher liking (O’Sullivan, Hunt & Lippert, 2004, Study 2)  Linguistic immediacy cues exert stronger effects than presentational cues (O’Sullivan, Hunt & Lippert, 2004, Study 3)  More self-disclosure on a health forum, more social trust, more positive outcome expectations (Lee & LaRose, 2011)
  • 29. Relational maintenance in online PR (Kelleher & Miller, 2006; Kelleher, 2009)  Corporate blogs:  Being open to dialog  Using invitational language  Providing prompt feedback  Leading to higher credibility & trust through ……  conversational human voice  communicated relational commitment
  • 30. Conversational human voice “an engaging and natural style of organizational communication as perceived by an organization’s publics based on interactions between individuals in the organization and individuals in publics” (Kelleher, 2009, p. 177)
  • 31. Communicated relational commitment  “a type of content of communication in which members of an organization work to express their commitment to building and maintaining a relationship” (Kelleher, 2009, p.176)
  • 32. Our studies (w. Camiel Beukeboom & Sonja Utz, VU Univ.)  Experimental studies  Online customer care: customer complaint + various responses  Study 1  Immediacy low vs. high  Apologies vs. redress  Control group  Study 2:  Immediacy low vs. high  Apologies vs. refutation  Company size (small vs. Large)  Crisis communication:  Study 3: immediacy + content  Immediacy low vs. high  Apologies vs. denial
  • 33. Study 1  Low immediacy  “Based on your story, we would like to offer our sincere apologies for the inconvenience. We would like to get in touch with you about this problem.”  High immediacy  “My name is Thomas de Vries. (…) Based on your story, I would like to offer my sincere apologies for the inconvenience. I would like to personally get in touch with you about this problem.“.  Apologies vs. redress  Control group: no company response
  • 34. Study 1  Dependent variable:  corporate credibility  Mediators:  conversational human voice  communicated relational commitment  underdog effect (Vandello, Goldschmied, & Richards, 2007)  Control group: cognitive responses
  • 35. Study 1  Communicated relational commitment:  (F(1, 118) = 14.45, p < . 001; Mlow immediacy = 3.81, Mhigh immediacy = 4.61)  Conversational human voice  (F(1, 118) = 7.81, p < . 01; Mlow immediacy = 3.63, Mhigh immediacy = 4.12)  Underdog effect:  (F(1, 118) = 4.63, p < . 05; Mlow immediacy = 4.72, Mhigh immediacy = 4.30)  (F(1, 118) = 5.65, p < . 05; Mapology= 4.74, Mredress = 4.28)
  • 36. Study 1  No other effects of apologies vs. redress  No interaction effects  Indirect effects of immediacy on corporate credibility  (bootstrapping)
  • 37. Study 1  No other effects of apologies vs. redress  No interaction effects  Indirect effects of immediacy on corporate credibility  (bootstrapping)
  • 38. Positive cognitive brand responses 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% High immediacy /apologiesImmediacy, apologies immediacy /redress immediacy /redress Low High Low No response
  • 39. Study 2: What if distance is already low?  Include a manipulation of organizational size /closeness  “Company A is international market leader in navigation- and communication systems. Company A has offices on every continent and about 7000 employees worldwide…”.  “Company B is a small family company in navigation- and communication systems. Company B is located in Eindhoven and has about 40 employees at this location…”.  Immediacy high /low; Apology vs. refutation of complaint  DV’s: Brand trust, communicated relational commitment, conversational human voice
  • 40. Study 2  Conversational human voice & communicated relational commitment  Main effects of immediacy  Interaction immediacy x company size  Brand trust: Interaction immediacy x company size 4 3.5 3 2.5 Low immedicay High immedicacy 2 1.5 1 Small Large
  • 42.
  • 43.
  • 44.
  • 45.
  • 46.
  • 47. Bloggers’ comments: low immediacy  It took too long  H&M talked to journalists, not to fans  Communication was highly standardized  “You know whats funny? that you are just simply pasting the same response to every comment about this shameful situation you are in. Why dont you post something where you actually admit and explain…”  Corporate tone of voice  No apologies were made
  • 48. Study 3  Participants read an online news story about the event, followed by one of four responses  Immediacy (low/high) & denial vs. apologies  Denial vs. apologies:  Apologies are less often used but are more effective since they signal taking responsibility  more effective in the case of integrity violations  Denial is often used but less effective (Kim, Avery & Lariscy, 2009)
  • 49. Study design (low immediacy/apology)
  • 50. Study design (high immediacy/denial)
  • 51. Study design  Dependent variables:  Negative /positive cognitive responses  Communicated relational commitment  Conversational human voice  Attitude towards the response  Corporate credibility  Crisis responsibility
  • 52. Study 3: Immediacy effects 4 3.5 Low immediacy 3 High immediacy 2.5 2 Conversational human voice Communicated Relational (1-5) commitment (1-5)
  • 53. Study 3: Immediacy effects % Negative cognitive responses 50% 40% 30% 20% 10% 0% Personal Corporate
  • 54. Study 3: Apologies vs. denial 6 5.5 5 4.5 4 Apologies 3.5 Denial 3 2.5 2 Credibility (1-7) Responsibility (1- Att. Response (1- 5) 5)
  • 55. Predicting corporate credibility Regression analysis: predicting corporate credibility Corporate credibility Prior brand commitment 0.31** Conversational human voice 0.47** Attitude towards the response 0.03ns Communicated relational commitment -0.06ns Negative cognitive responses 0.11ns Positive cognitive responses 0.13ns Crisis responsibility -0.01ns R2(adj)=.37***
  • 56. Conclusion  Effects of immediacy  Direct on credibility  Indirect through  Communicated relational commitment  Conversational human voice  Immediacy helps to narrow the gap between organizations /brands and consumers

Editor's Notes

  1. Maar niet alleen twitter
  2. Notfor chain restaurantsMarket share chainsres