Saturday, December 6th, 2008
I had to do a marketing case study or “show and tell” in class awhile ago, what else would I use, but social media?
Two bloggers, Pat Law and Steven Hodson from Singapore and Canada, had negative experiences with Challenger (a Singaporean Best Buy alternative) and Tim Hortons (the Canadian alternative for Starbucks) respectively. With Pat, there was a huge mess with getting delivery on time, horrendous customer service and problems all round. With Steven, a Tim Hortons cashier short changed his wife of $20, and despite the fact that it was obvious from the CCTV that there was an error, they were told there was nothing Tim Hortons could do.
Both cases resulted in pretty strong words from the bloggers and the commenters against the companies involved, but also pretty strong statistics. Pat shared with me her blog stats, and there were over 1,000 views in five days, with the average time spent clocking at six and a half minutes.
Think about that. 1,000 people with 6.5 minutes of negative exposure to your brand. You can buy all the ads you want and you probably won’t even get 6.5 minutes of positive brand exposure in a month.
Why is this a problem?
Any Monkey Can Blog
It’s a problem for companies because it’s just too simple for anyone to set up a blog and blog about a negative experience with your company. Why would I bother picking up the phone calling customer service when odds are I’ll get crappy customer service anyway? It’s just easier to “stick it to the man” online.
The Mistake
Companies are mistakenly not monitoring their brands online, thinking “no one” cares. Well, one thousand people at 6.5minutes each suggest otherwise. I think when we’re talking about customer lifetime value and potentially large amounts of revenue being lost (you can rest assured I’m not buying a television from Challenger although I’m in the market for one), someone should at least be attempting to make things right.
So What Then?
I'm Not Listening
Companies need to focus on good customer service and relationships to differentiate themselves. Especially for companies like Challenger and Tim Hortons who are selling fairly homogenous products, it’s just too easy for a consumer to go to another electronics store or somewhere else for coffee. Particularly in this recession economy, excellent customer service both in and outside the store may just be the differentiating factor you need. If you’re going to hire those service staff anyway, you might as well make sure they’re doing a good job of it.
The bottom line is this. Stop asking what positive ROI social media is going to bring you, because it isn’t the most important question. If it manages to bring in some sales/conversions, great. But at the very least, it can be used to negate the effect of such negative word of mouth. From one blog post, Challenger easily lost a $3k purchase from me, and who knows who else? How many people are going to forego that product from your company because of something they read, and your company did not respond to set things right?
How much is not getting involved in the social media space costing you?
[Image credits: Any monkey can blog | I'm not listening]
Tags: bad customer service, best buy, blankanvas, canadian blogger, challenger, crappy customer service, excellent customer service, homogeneous products, marketing case study, pat law, show and tell, singapore blogger, social media, steven hodson, stick it to the man, tim hortons, winextra
Posted in Marketing, Poor Practices, case studies, social media | 6 Comments »
Friday, November 7th, 2008
So Pat Law invited me to do a little collaboration with her (her post here) inspired by this post featuring a brand-timeline portrait. And one of the results is of course to see how different a male and female’s brand usages are, but I think there are going to be a few interesting insights as well. I definitely found out more about my needs, wants, usage patterns and brand loyalty by doing this.
Our criteria is simple: If we are likely to use a particular brand on an average day, we’ll include it in. So for example, even though I may only use my Flip Mino once or twice a week, I include it because the probability I use it on an average day is about even.
While originally, this was organised by timeline (i.e. at what time would you interact with which brand), I’ve decided to do it by category because I think it says more about my consumption patterns that way. Does it mean I use all of these brands everyday? No. But it’s fairly representative in that if I feel like a coffee, Tim Hortons is my destination.
Social Media/Web Apps
Social Media/Web Apps
So I’ll start, obviously, with social media and web apps. This is fairly straightforward, but the one thing I noticed when I started to list down the brands I’d include, was that Windows Media Player was an app I particularly wanted to list due to my immense dislike of iTunes.
Technology/Gadgets
Technology & Gadgets
Pretty straightforward here, so I’ll leave it as that.
Apparel
Apparel
This was just about the hardest category to do. For each of the brands listed up there, I have only one or two products from them: Zara (jacket, coat), Nike (sneakers), American Eagle (wallet), H&M (jacket, scarf), Guess (jeans), Levis (boxers, jeans).
This by no means indicates clothes aren’t important to me, just that I’d rather find some obscure shop and find a “slogan” tee, rather than head to the Gap or wherever to purchase one. However, the brands I do purchase for clothes (particularly Zara, Guess and Nike), I’m particularly loyal to.
Hygiene
Hygiene
Hygiene was fun to do because I have so many products. The ones I’m listing here are only those I’m using here with me in Canada, and I’m sure I have plenty more back home. I’m going to say hygiene is one area where I’m most susceptible to advertising.
Oral B from the whole “more dentists use” ads, Colgate was on all the time growing up, Axe from all the cool male advertising, Gillette is everywhere as well. I also want to say I actually have a strong dislike for Adidas as a brand, but only use their deodorant because it complements the cologne.
Interests
Interests
This was another really hard category because you don’t have brands for “books” or “music” or “Heroes” or “Lost”. So I included the brands of graphic novels I’m likely to read, as well as MTV (the TV channel I’m most likely to watch) and EA Sports which is the brand of the game (FIFA ‘09) that I’m playing now
Food
Food And Drink
This was not surprising at all. I generally don’t care about the food I eat, but I do like my drinks. The interesting thing here is that none of these brands would exist if I was blogging about this from Singapore. Tim Hortons would be Starbucks, Molson Canadian beer would be Corona, and Vitamin Water doesn’t exist. In other words, my brand preference is rather flexible and easily changed. Prior to coming here I hadn’t tried either Tim Hortons or Molson Canadian, but they’ve displaced my usual brands pretty quickly.
Finally, one miscellaneous brand:
Equality Logo
This is Equality, which is, from what I can tell, the house brand of Canada. Easily 20-40% of the stuff we buy here for the house, is from the Equality brand. Microwave food, toilet paper, eggs, canned food and much much more is all Equality.
I guess this is meaningful because when we first came here and went to the supermarket, we didn’t know what brands to get, but the mere pervasiveness of Equality made us gravitate towards it. Also, even though Equality easily accounts for a large portion of our weekly expenditure, I couldn’t find its’ logo online, and had to take a picture to get it. An overlooked brand, perhaps?
My takeaways from this exercise?
1) I experiment with a lot of brands. Nikon, HTC, Molson Canadian and Vitamin Water didn’t exist in my mind one year ago, but they do now.
2) I consider myself part of the “tribe” of some brands than others. Skullcandy, Nike, Flip, Sony, Axe, and MTV just to name a few.
3) Old habits die hard. I don’t think I’ve ever used another toothbrush except Oral B, or toothpaste except Colgate. Even if I did see products from other brands on the shelves, they don’t even register. It’s also very hard for me to use other social bookmarking tools like Twine because I’m so used to Delicious.
4) Word of mouth influences my purchase decisions a lot. Skullcandy, Sony, Nikon, Axe, Firefox, HTC, Flip, Versace and Tim Hortons are all word of mouth brands, that are now favourite brands.
How about you? What are the brands you feel passionately about? How do they fit into your daily/weekly/monthly behavior? If you were to do one of these by category or by timeline, how would it look?
ps: I’m sure I left out some brands of stuff that I use but just didn’t take note off, please excuse that.
Tags: adidas, american eagle, axe, blankanvas, brand timeline portrait, brands guys use, canon, colgate, dc, delicious, dopod, ea sports, equality, facebook, firefox, flip mino, gillette, guess, h&m, head & shoulders, htc, ipod touch, last.fm, levi's, marvel, molson canadian, mtv, nike, nikon, oral b, pat law, Plurk, popular brands, seaget, skullcandy, sony vaio, steam, tim hortons, twitter, versace blue jeans, vitamin water, windows media player, wordpress, zara, zirh
Posted in Gen Y, case studies, collaboration | 6 Comments »
