Is Social Media Key to Customer Experience?

 Is customer experience the overriding strategic marketing concept in the age of social media? It’s a chaotic marketing environment made up of customers with all kinds of needs and usage habits, multiple screens, myriad channels of communication, and exploding content, both marketer-generated and user-generated. The concept of customer experience links all of these together into a unified system that results in a satisfied customer, so I argue that it should provide ultimate guidance for marketers.

What is a definition of customer experience that marketers can use as a guide? There are a lot of formal definitions, but I like what GM VP Alicia Boler-Davis said last year. She explained that GM has expanded its definition:

to include what happens before, during, and after the sale – instead of just what happens in the dealership.
“We’re no longer thinking about a vehicle sale as a transaction or a singular event. . . We’re thinking about it as part of a relationship between the customer, the dealer, and GM.
“Put another way, the customer experience begins long before our products make it to the dealer showroom.  It begins with our very decision to build a vehicle… and involves every customer touch point after that.  It involves the entire enterprise.”

Ok, that’s not a new concept; relationship marketers have been preaching it for years. But it is incredibly challenging in the face of today’s myriad—and growing--number of customer touchpoints. Social media marketers know well that the content in many of the social touchpoints is controlled by customers, not by marketers, and that complicates the situation.

The PWC graphic illustrates just how hard it is. Their Digital IQ survey revealed that 66% of US online adults use social media; 59% of respondent companies have provided mobile tools for their employees, but only 37% (30% of top performers) make use of external social media communities. Businesses are far behind their customers in the use of social media, which isn’t exactly news!

Here’s a Forrester graph that makes the role of social media clear—and more than a little scary! Above the dotted line in this customer experience journey map the Forrester team shows many customer touchpoints—you can think about what they are for your business. Some touchpoints make the customer happy, others do not. Already the customer experience is not “seamlessly satisfying”—the marketer’s ultimate goal. The unhappy customer doesn’t leave it here, as so often happens these days. She tweets out her frustration.

 

Below the dotted line we see that the only internal process visible to this customer is social media! And one can intuit that the social media team does not have the skills, or even more likely, the organizational power to tweet back in a manner that satisfies the customer’s complaint. The customer’s problem has not been resolved by the channel she chose to use—social media.

What does it take to develop a customer experience strategy that results in seamless satisfaction? A Forrester blog post lists six necessary elements:

Strategy. Forrester says:

The strategy discipline is your game plan. It's a set of practices for crafting a customer experience strategy, aligning it with the company's overall strategy and brand attributes, and then sharing that strategy with employees to guide decision-making and prioritization across the organization.  . .The customer experience strategy defines the intended experience.

Customer Understanding. Need we say more? Understanding the customer is the marketer’s basic job description. To what extent are your customers using social and mobile media? How is this affecting their search behavior, their shopping behavior and their purchasing?

Design. Whether it’s a wonderful product or whether it’s a website that not only looks pretty but works well, good design is important in an age that seems increasingly visual. Think again about the statement from GM, above.

Measurement. Don’t all digital marketers preach the importance of measurement? I still like the old quality management phrase, “what gets measured gets managed.”

Governance. Business policies must focus on customer satisfaction and lead to the internal policies that create it. Creating good customer experience is a job for all employees at all times!

Culture. Good governance leads to a culture of openness and transparency that creates an environment in which customer centricity can flourish. That just happens to be the same type of culture that encourages successful use of social media.

So I repeat my initial argument: customer experience strategy should be the cornerstone of marketing strategy. These 6 elements, however, make it clear that the organization as a whole is the player in customer experience with social media able to play a key customer-facing role. So marketing needs support from the top levels of management if it is to execute a meaningful customer experience strategy.

The Migration to Mobile III--All Shopping Can Be Local

It used to be a sign that you were cool with current technology; you did research on your computer before heading to retail stores to shop. That’s no longer true. Now shoppers can use their smartphones or tablets to get the information they are looking for right at the POP--and maybe a coupon to boot! That is a powerful concept and it is driving profound changes that go all the way down to the individual retail location.

It doesn’t start when the shopper nears the store or walks in the door, though. It starts by building a meaningful SoLoMo strategy. One interpretation of the mobile shopping funnel captures the essence.

http://www.brafton.com/news/smx-advanced-buzz-social-local-mobile-marketing-leads-to-sales-800526890

Social marketing helps build—or maybe for the small local retailer builds all by itself— awareness and a positive brand image. Retailers use tactics ranging from paid advertising to instore promotions and events to lure followers to their social platforms. Mobile marketing—whether paid ads or content marketing—reaches people when they are actively researching a purchase or provides a triggering cue by suggesting a reason to purchase. Local marketing reaches them at the point of purchase, giving them compelling reasons to buy at that moment.

http://techcrunch.com/2013/01/25/mobile-shopping-apps/

Adding another dimension to that argument is data about the role of various types of shopping apps during the 2012 holiday season. The huge growth is seen in retailer apps and the lowest growth in the daily deals apps, whose difficulties have been much in the news. I wrote about the Macy’s shopping app during the holidays. The mapping application still seems to be available only for the Herald Square store but deals, wish lists and other retail services are going strong. At the moment they are offering me a 20% off promo code, which might be useful, and a bridal registry, which definitely is not! My initial reaction was “so much for personalization,” but how do they find out unless they ask?

The data also highlights another important mobile issue. Price comparison apps also experienced explosive growth. Showrooming—checking prices in stores then buying more cheaply online—seems to be ongoing.

But there’s good reason for local retailers not to hit the panic button. The trend can be their friend! No less a retailer than Walmart is encouraging people to use their phones in stores. Wired explains it well:

Walmart’s stores are “geo-fenced,” which means the location-aware app enters “store mode” when you walk through the door. Once in store mode, you have access to an interactive version of the weekly on-sale circular for that store. You can see what’s new in the store. You can scan bar codes with the phone’s camera for prices and keep a running list of everything you’re buying so you’ll know the total cost when you get to the register.

How can retailers without Walmart-level resources turn showrooming to their advantage? The advice from the Retail Customer Experience site is:

1. Embrace omnichannel.
2. Bring the best of online shopping into the store.
3. Implement innovative in-store technologies.
4. Empower in-store personnel.
 
Putting it all together they say:

Innovative in-store technologies can help shoppers engage with brands and create a great, enjoyable shopping experience that leads them to both return to the store and to act as brand ambassadors through social media, leading to more visits from their peers.

Very interesting—it all comes full circle. Use both the human touch of your store employees and the power of technology to give your customers a great shopping experience and they will share it with their friends on social media. Like all good advice, it’s easier said than done, but the guidelines are there!