Sunday, November 14, 2010

Social Media


This week we had the very interesting topic of social media. What I find most interesting about this topic is that, originally, it was never intended to be used for marketing purposes. When we set up a blog, Facebook account, or Twitter account we aren’t thinking about the different companies that might be reading our posts, but they do read and they are curious of what we, as consumers, have to say. They have to, because the opinions that we write online can impact their sales.  So, whoever has claimed that words can’t hurt is most certainly wrong.
While I was reading Groundswell: Winning in a World Transformed by Social Technologies, I cam across a section that read, “blogs are a valuable tool, not just for communicating to the world, but for getting feedback.” When I think of companies that utilize user-generated content wisely, the one company that comes to my mind first is Dell. If you are unfamiliar with Dell’s customer service history, it has not always been as amazing as it is today. It took one blogger, Jeff Jarvis, single-handedly burning the company in 2005 to get Dell listening to its customers. Since then, they have made drastic improvements with the help of their customers. So when I was asked to write about my thoughts on how companies can best use social media to gain insight or create experiences, I knew I would point to Dell as a model of how every company should perform.
Dell gains insight by meticulously monitoring everything that involves its name online. This reflects the first step in Groundswell in regards to using social media, which is, “listen. Read blogs that are talking about your company and see what people are saying.” If there is something written about them online, you better believe Dell knows about it, but more importantly Dell is listening to it and responding. It is not uncommon to write a negative post on a blog about Dell and receive a response from one of its technicians. These technicians are employed by the company to solve the problems customers are claiming to have. These methods that Dell has put into affect are completely aligned with the advice offered in Groundswell for the next step, which is, “start commenting on those blogs or videos, or prepare to create your own.” This step adds value to the customer experience because you know your opinion matters and that you are being taken seriously. Companies are no longer dismissing those that speak out because there is a high chance that others feel the same way.
As a random piece of information, I had a friend contacted by Dell’s technicians. She said they were incredibly helpful and even humorous. The conversation went something like this, “ This is Michael from Dell, well not that Michael, but is there something I can help you with today?” Not only did her problem get solved, she was able to laugh about it later.
Most companies would prefer it if nothing was posted about them online. This is often out of fear that they might be receiving bad reviews, but bad reviews encourage change. Bad reviews expose room for improvement that would have otherwise gone unnoticed by the company. This is what Dell had to learn the hard way.
Besides monitoring random forms of social media to gain insight into customer issues, companies can harness a form of social media as a means of directing customer responses. Dell did this with their website DellIdeaStorm.com. Now, if customers have a complaint or suggestion, they can visit the site and let Dell know directly by writing a post. Some suggestions posted by customers have resulted in improvements made to products or additional services offered. Not only is this a genius way of gaining insight into your customers’ wants, because the information is flowing straight to the company, but it also adds value to the customer experience. Customers feel like their wants have been taken seriously and as if they have had a part in the making of the product. If you can make a customer feel like they took part in the construction of the product, there is no way they can be left unsatisfied.
Although there are plenty of companies that effectively utilize social media to add value to their customer experience or gain insight, Dell is the perfect example of how it can be used to improve sales and company image. It may be because of the severity of bad attention Dell received from social media prior to its changes, but I cannot think of another company that has been able to make such an impressive turnaround.