Week 4 Forum Post - Social Commerce and the Power of Peer Reviews
Have
you ever polled your social media “friends” for suggestions on movies, cars,
vacations, or restaurants? You probably see this happen daily in your Facebook
newsfeed; people asking where to stay on their next trip to Cancun or what
movie to see over the weekend. This is an idea that is explored in chapter five
of Erik Qualman’s (2013) book Socialnomics.
Retrieved from
thesocialskinny.com
In
this chapter, Qualman discusses the idea of “social search” in which people use
social media to see what their peers and friends think about various products
and services. He takes this idea a step further with the introduction of social
commerce. Social commerce is a term Qualman (2013) uses to describe the
transactional, search, and marketing components of social media (p. 72). Qualman
(2013) describes social commerce as “a referral program on steroids” (p. 76).
People
value the opinions and experiences of others, especially those in their social
networks. The reviews and suggestions of these people in particular have more
weight because we often know them intimately and can compare our own situations
to theirs. For example, if you are in the market for a car seat, you are more
likely to take the advice of a “friend” with a small child than the review of a
complete stranger. We look to people in our networks to provide recommendations
on products and services. While this desire for peer recommendations isn’t a new
concept, social media has drastically increased the ease of sharing, making
social commerce an important tool for brands and businesses (Qualman, 2013).
Retrieved from digitalintelligencetoday.com
In order for organizations to capitalize
on social searching, they must come to terms with the fact that “consumers are
taking ownership of brands, and their referral power is priceless” (Qualman,
2013, p. 78). The first step in getting a business or brand involved in social
media sharing is by having a great product or service (Qualman, 2013).
Obviously a company lacking in this area is destined to fail. Another important
way to become a part of the social media conversation is to provide consumers
with opportunities to offer reviews and share experiences. In addition,
organizations can reward the consumers that do share feedback or reviews. For
example, an organization might consider a small incentive such as a future
discount for feedback or public reviews. Private reviews shared in a personal
network can be equally as effective as a public review, provided the right
audience receives the message. While not all consumers are willing to share,
those that are see sharing as an opportunity to be seen as a subject matter
expert within their social circle (Qualman, 2013, p.75). Some consumers also
see it as an opportunity to give back to a group if they benefited from someone
else’s sharing. A great example of this would be TripAdvisor and consumers
sharing resort reviews because they found the sight so helpful when planning
their own trip.
Overall
this chapter teaches us that people are increasingly looking to social media
for advice and recommendations on products and services. Marketers need to do
everything possible to ensure they are included among peer and friend
suggestions (Qualman, 2013, p. 78). Any company that wants to thrive in today’s
social media age must accept that their brand is partially owned by consumers. It is consumer stories that will resonate with
future prospects and “companies need to shore up their products and
services so that when social search is commonplace their brand is positioned to
win a World of Mouth world” (Qualman, 2013, p. 75). I've included a video of Eric Qualman discussing Social Commerce if you would like to learn more! The section on Social Commerce begins at 07:30.
Reference
Qualman,
E. (2013). Socialnomics: How social media transforms the way we live
and do business (2nd ed.). John Wiley & Sons, Inc.: Hoboken,
NJ.
I love this topic! Social commerce is definitely a part of my everyday life and I think many others can say the same. While consumers are embracing technology to share and review product advice and recommendations, I think one of the most important takeaways from this lesson is actually for companies. Consumers are now taking ownership of brands. Companies need to understand, accept and embrace this in today’s social media age. While word of mouth and product reviews are not new concepts, the way that consumers share their ideas and opinions has changed drastically with the invent and adoption social media. Companies traditionally could “control” their brands through brand management, and while this function is still relevant, it does not have the power it used to. Companies cannot direct consumer thoughts and opinions – they can only provide quality products and services and a great overall experience to guide (hopefully positive) consumer reviews.
Erik Qualman (2013) mentioned that “companies and marketers had better start spending more time listening to their customers … [and] acting on the information received” (p.78). This is where these brand managers come into play – they listen to needs, ideas, approvals and concerns and implement changes and enhancements based on this feedback. You may have heard about or remember the 2005 “Dell Hell” blog post from Jeff Jarvis, an unhappy Dell customer. He took to his blog to write about his horrible experiences with the company and it attracted attention of people all over the globe. As a result, Dell “learned to listen and … ended up seeing the value in listening to and ceding control to customers” (Sharma, 2012). After Jarvis’ slam, the company realized the hold its consumers have on its brand and that it needed to participate in those online conversations in order to improve and build upon its reputation. Today, Dell is known for its great customer service.
Can you think of any examples, whether it’s in your professional or personal experience, of a company that did or did not react well to this shift in power? Some companies are slower to adapt, or maybe they haven’t fully embraced this model of listening to feedback and acting on it. I think it’s really interesting to see how different companies respond to this changing environment.
By the way, I think you did a great job presenting this idea and including relevant examples. The Erik Qualman video you provided was also very interesting – love that you were able to integrate this into your post! Great job!
Lindsey
References: Qualman, E. (2013). Socialnomics: How social media transforms the way we live and do business (2nd ed.). Hoboken, NJ: John Wiley& Sons, Inc.
Sharma, J. (2012, July 12). The Dell hell case study – how to turn negative into positive? [Web log]. Retrieved from http://socialmediaunleashed.wordpress.com/2012/07/12/the-dell-hell-case-study-how-to-turn-negative-into-positive/
Very well written post. Qualman's view seems spot on. I know I have taken to my social media "family" for advice on things like hair care. I've even shared with my followers my secret weapon for cleaning my son's sneakers after a rough day at day care. Web 2.0 and social media have definitely "flattened" our world and has allowed us to not only gain "followers", "subscribers" or "likers" but to garner friendships as well. I have friends that I have met through Instagram who I have never met face to face but who I exchange text messages with about our children. You would think that we grew up as friends. This is the power that social media has brought to us in this present day. You mentioned in your post that people would be more inclined to take heed to a recommendation from a friend or family member versus a complete stranger. My question to you is what if this recommendation came from someone who might be perceived to be a thought leader in their industry? Say for instance if you wanted to know what hair products you should use to achieve a 20's inspired wavy do. You go to your search engine and come across a Youtube video blogger, let's say Elle Fowler, who has 1.1 million subscribers. The quality of her videos is high and she even shows a demonstration in the video. How do you think information like this being available on sites such as Youtube has shaped the way people search for information? I often hear the phrase, "search for it on Youtube" fly around when it comes to needing a "how-to".
People have gotten so used to information like this being so readily available online for free that certain things people no longer feel like they should pay for. On Instagram I follow the Jerseylicious star Tracy Eps and last month she posted a picture of a flyer for a ‘tease, blow-out, and eyelashes’ class she would be teaching later this month for $200. Most of the comments were about the high price and many commenter’s referenced being able to find how-to videos on the same topics via Youtube for free.
Hi Damaris – great thoughts around who’s more influential through social: thought leaders and experts, or friends and family? I think it depends on what exactly a consumer is in the market for. For larger, more involved purchases, I rely on experts. It’s great to hear that someone like me loves driving a VW, but I want to know from a specialist the pros, cons and technical features to know if the car is right for me. But for the smaller, everyday kinds of purchases, it’s usually enough to just check out recommendations from friends or people like me. If I’m visiting a new city and want to try a Thai restaurant, Yelp can help with that. While food critics certainly have trustworthy opinions, I don’t need such expert advice to find a place with some good Pad Thai.
But if you think about it from a business perspective, companies should be experts in their industry, products and services. Many people may prefer expert advice because experts are often reputable with a wide range of experiences. So, how can a company use this status to help in its social interactions with consumers? While it needs to be careful not to push its business on consumers, are there ways it can share its expertise, and effectively provide recommendations to these consumers?
Damaris and Lindsey, this is a great discussion point and one that I neglected in my original post. You both brought up really valid questions about the difference in the influence level of our social media contacts based on their knowledge of the subject matter or connection to us as friends or family. It seems like my perspective on this issue is similar to both of yours, it depends on the topic and investment required as to whether or not you will seek out information from a professional or a friend. I agree with Lindsey that it is important for businesses to learn how to become the industry leaders in their area so that consumers look to them for information. One company that has done this well is Pampers. They use their website and social media as a way to share information and advice to parents with small children. They also provide parents with opportunities to share stories and experiences. Helping new parents and young parents answer questions about diapering or potty training all while building a stronger connection to the brand.
Hi Bobbie Sue, Very true. Pampers has done a great job of producing "content" which is a steady theme throughout Scott's book, The New Rules of Marketing & PR. Producing content is a way to build credibility for the brand so that when people have questions not only about products or services but a particular industry in general, your company would be the "go to".
Thank you for bringing up a very important topic. The power of peer reviews is stronger than ever. More and more people are listening to their peers over paid advertisements. “It is a fact that 78% of consumers trust peer reviews and only 14% trust advertisements this is why it’s crucial to be involved in your community and have a good reputation” (Arnaout, 2011). As you mentioned Qualman referred to this in chapter five. I wanted to bring to your attention that Scott states in chapter three that “Smart marketers understand buyers, and many build formal “buyer personas” for their target demographics” (Scott, 2013, p. 43). This is especially important for us to recognize the many factors that go into capitalizing on peer reviews and the persona(s) we need to establish to obtain credibility. Click here for a graphic describing the branding opportunity in the social media space:
“Ability to access these peer-to-peer conversations can open up new avenue for brands to create brand and customer building activities, amplifying a brands presence manifold” (Bhattacharya, 2012). We cannot stress enough the importance of creating a brand presence whether within our own community (targeted audience) or our perception outside of the targeted audiences and the influence it potentially has. This is significant in my area relating back to the foundation. We have to be aware of the conversations going within our community, to maintain our credibility as a resource for our families. On the other hand we need to maintain a level of involvement outside the boundaries of our community and in the spaces that could potentially influence the work that we do.
How does your organization, Marist, monitor or become a part of these conversations reviewing educational experiences? Is there a strategy that is followed or that is currently being structured to acknowledge this peer review process?
References:
Arnaout, M. (2011, February 5). Are these social media trends of 2011 part of your strategy? Retrieved February 12, 2014, from Socialmedia Today: http://socialmediatoday.com/marinarn/267510/are-these-social-media-trends-2011-part-your-strategy
Bhattacharya, S. (2012, March 19). Peer-to-peer to amplify a brand. Retrieved February 12, 2014, from Socialmedia Today: http://socialmediatoday.com/santanu-b/472652/peer-peer-amplify-brand
Scott, D. M. (2013). The new rules of marketing & pr. Hoboken, NJ: John Wiley & Sons, Inc.
Becky, thanks for reviewing my post and for offering some additional research on the topic. You asked a question about how Marist monitors social media and gets involved in conversations. I think Marist does a wonderful job with this! There are at least 8 “official” social media accounts for the College that are operated by members of the Admissions and Advancement Office. You can find a link the various social media accounts here: http://www.marist.edu/socialmedia/
One thing that Marist does really well is sharing messages from supporters. For example, they created a promotion for a “Marist Photo of the Week” and as part of this promotion, the Instagram, Facebook, and Twitter accounts share the photo from a student, alumnus, prospective student, etc. who post a photo that connects to the College. This week’s photo was appropriately a snowman wearing a Marist t-shirt. Because of this promotion, people want to include Marist in their posts. They know that if they tag or reference Marist in their photo, there is a chance that Marist could share their image. This is just one of many ways that Marist is engaging their followers and encouraging them to include Marist in their conversations!
It is wonderful to hear all the quality of work Marist is putting into their social media efforts. I follow many of Marist's social media accounts, but it looks like I have a few more to jump on and follow.
Great choice of topic! I also enjoyed reading this chapter. You did a great job going over how people are influenced by the people they know and how businesses can take advantage of that influence to increase their business. I have to agree with you and Qualman that social commerce is the future of social media. The signs are everywhere. According to the video only 14% of people trust what advertisers say and 90% of buyers are influenced by people they know.
What a great quote you selected: Any company that wants to thrive in today’s social media age must accept that their brand is partially owned by consumers. It is consumer stories that will resonate with future prospects and “companies need to shore up their products and services so that when social search is commonplace their brand is positioned to win a World of Mouth world” (Qualman, 2013, p. 75).
I really enjoyed reading the video you shared. I loved how Qualman used his own life as an example to illustrate the topic. Can you think of an example of a company that leverages peer influence well?
Thank You for a great post and for following my Blog. Warm Regards, Ana
Qualman, E. (2013). Socialnomics: How social media transforms the way we live and do business (2nd ed.). John Wiley & Sons, Inc.: Hoboken, NJ.
The first company that comes to mind when I think about peer influence is Amazon.com. Not only does the site allow for product reviews, but it also shows other product options based on what other people viewed or purchased after looking at that item. When you're just browsing and are open to other options, this is a great feature. Amazon makes it easy for consumers to read and write reviews, and it also drives them to other pages that they may be interested in based on their viewing history. It's definitely a bit creepy what the site can tell about you, but often both you (and Amazon!) are rewarded in the end since it was that much easier to find what you were looking for. Smart!
Ana and Lindsey, thanks for reviewing my post. Ana, you asked a great question about peer influence and organizations that use it well to condust business. I couldn’t agree more that Amazon.com is an excellent example. I’ve fallen prey to their “suggestions” for similar videos or movies based on what others have purchased. I briefly mentioned TripAdvisor in my initial post as I think they built their entire company on the idea of peer influence and social sharing. Another company that has found success with this model is Netflix. Netflix patrons have the ability to rate any movie they’ve watched which helps determine its popularity. There is a category dedicated to movies that are most watched and highly rated among Netflix consumers. So, not only willNetflix make suggestions based on what the individual consumer has previously viewed, it will now offer titles based on other consumers’ suggestions. In addition, there is an entire category dedicated to Netflix movies that are popular on Facebook. Netflix consumers have the options to share their favorite Netflix movies to Facebook and the most shared movies are included in this category. The idea behind these two categories is based on social share and commerce. Consumers will think that if someone else watched this movie and rated it highly or shared it to Facebook, it must be worth watching.
Lindsey, Bobbi, What a great example you provided. Amazon! I love the expression you used, 'fallen prey", to describe the purchase you made. I felt the same way. Amazon does a very good job at making recommendations based on our searches and based on your intentions. As for TipAdvisor I remember not choosing to go to a resort because a friend of mine posted a negative review. So these companies have done a good job at influencing our decisions. Great Job!
I liked the way you described the key points of the chapter. Social search is definitely something that everyone does even if they do not know they are doing it. Often when people are in the market for a product, they will change their decisions based on the experiences of people they know. This is why it is important for companies to get these key opinion leaders on their side. I also liked that you pointed out that while this has been going on for a long time, social media has made this work so much better and faster. People can interact and share ideas so easily that it is easy to see why sharing information like this would happen more often.
I am also happy that you brought up the need for companies to not only allow but encourage user reviews on their products. This is important because people often want to see reviews before they buy a product. This chapter focuses on the idea that the business and customer should have a two way conversation. This can benefit the business because they will get valuable feedback from the customer and can use that feedback to improve their company. I agree that consumers stories are incredibly important when trying to convince a new customer to buy. This chapter was a great example of how social media connecting the world is very impactful on the business world. Were there any ways to increase word of mouth referrals not mentioned in the chapter that you would have liked to see mentioned or would like to learn more about?
Hey Ian – you bring up the point that companies really need to encourage customer reviews because so many people look to them before they’ll buy a product. As a quick personal experience, just today I was online shopping for shoes. I came across a pair of boots I really liked and they were on clearance ($200 off!). But why were there no product reviews? Despite liking the boots from every angle and seeming like quite the steal, I couldn’t get myself to buy them without know what other people thought of them. I even tried Googling the style to see if any other website carried them, but turned up with nothing. So in the end this shoe company lost a sale because it didn’t have any product reviews, which is unfortunate.
I’ve shopped with other companies who follow up with me about a week or two after I’ve purchase a product to see if I’ll write a review. They catch you right after so it’s soon enough, but still give you time to have had some experience with it. This is a great way for companies to really solicit feedback that will help them in future sales.
Ian and Lindsey, customer feedback is a very important marketing and public relations tool. As we learned this week, social media makes it easier to encourage and collect consumer feedback. While researching for this week’s discussion, I came across an article that did a great job of explaining its significance. “A company’s success rate is only as good as its customer loyalty. You can’t just rely on sales figures to determine if your customers are happy with your company and the goods or services you offer. Market trends can turn on a dime and you could find yourself on a downward curve with no idea what happened. That’s why it’s a good idea to constantly seek and evaluate customer feedback” (Garrison, 2009, para. 1). It went on to discuss the risk of not encouraging consumer feedback. “If you’re not driving the customer feedback process, the only time you’re likely to hear from customers is when something goes terribly wrong” (Garrison, 2009, para. 2). Organizations can use consumer feedback to gain an understanding of the wants, needs and concerns of customer for today and in the future. “Tomorrow’s position in the marketplace depends on the facts and figures you gain today and how you respond to that information” (Garrison, 2009, para. 12).
Reference
Garrison, R. (2009, September 28). Importance of customer feedback. Inside Business 360. Retrieved from http://www.insidebusiness360.com/index.php/importance-of-customer-feedback-16938/
Social commmerce has become a key component of the shopping experience in the day to day lives of consumers. Amazon.com is an important example of social commerce in action as consumers read reviews of other customers before making an educated purchase. Amazon.com lets you become part of the social media conversation as they provide consumers a chance to offer reviews and share there experiences. Based on these reviews hundreds of other customers make purchases.
Saurav, thank you for reviewing my blog post. Ana and Lindsey had a similar discussion that you can see above. Like you, Lindsey suggested that Amazon.com was a great example of an organization that found a way to capitalize on social commerce. I also felt that TripAdvisor and Netflix were good examples. There is more information above if you are interested!
I really liked the points you brought up and how they were clearly defined. I also like that you brought up the incentives that Qualman touched on in this chapter. I think that when it comes to sharing reviews and insights about a certain product or service, incentives have the potential to play a large role in the users’ view and willingness to share, especially if the product is new. However, if a product or service is good, incentives might just help the sharing process and get more people to buy into it.
“Do good work as a business and the customers will freely respond to your online customer review process. In surveys, 70% of the people said they did online customer reviews because they hoped to help other people with their buying decisions. Incentives are not necessary. ‘Helping others is the only incentive needed!’” (Local Marketing Search)
Social commerce is a booming industry that I feel sometimes companies do not take full advantage of or know how to use. Today’s consumers want to feel as if they are ‘a part of something bigger.’ Being able to connect with a company’s product via social networks provides the instant gratification they need. This can almost provide a one-stop-shop feeling because as Qualman speaks to, we are able to connect with our friends and peers to find out which products work and which ones don't. Social media has transformed the way we look at word of mouth, basically putting it on steroids and giving it a place for the whole world to see.
Reference: Local Search Marketing. (2011, November 17). Do Incentives Help or Hurt Getting Online Customer Reviews? Retrieved from Local Search Marketing- St. Paul: http://successfulinternettools.com/2011/11/do-incentives-help-produce-customer-reviews/
Qualman, E. (2013). Socialnomics: How social media transforms the way we live and do business (2nd ed.). John Wiley & Sons, Inc.: Hoboken, NJ.
I like how you mention that consumers like to be a part of something bigger, and for that they’re more likely to share reviews even without incentive. Sometimes people also feel like they owe it to other consumers. A few years ago my family and I visited Australia and we relied heavily on customer reviews on Yelp and TripAdvisor because we didn’t know much about the restaurants, hotels and attractions over there. Because we basically traveled off others’ recommendations, we made it a point to review all places we visited so that advice would be available for the next traveler.
If companies are smart, they’re monitoring sites like Yelp and TripAdvisor in addition to their own social media channels, responding to both negative and positive reviews. It helps them both improve upon their operations and build relationships. Consumer feedback is very valuable and companies need to seriously consider these opinions to better their business.
As we learned from Qualman (2013) in this week’s reading, incentives are a great way to encourage consumer feedback. If I'm hesitant to give up the 5 - 10 minutes to share feedback, knowing that I'm getting something for my time helps make it worthwhile. I recently had dinner with my husband at Bonefish Grill. At the end of my meal, they give me a link to go online to complete a consumer feedback survey. I’m not sure this was an ideal method to collect the feedback as I would have preferred to do it immediately. However, they offered me a complimentary Bang Bang Shrimp on my next visit if I went online to complete the survey. If you’ve ever had Bang Bang Shrimp then you know it is totally worth the five minutes it took to complete the survey .
Reference
Qualman, E. (2013). Socialnomics: How social media transforms the way we live and do business (2nd ed.). John Wiley & Sons, Inc.: Hoboken, NJ.
Great job on this week's post. You covered the topic of Social Commerce petty thoroughly. It so interesting to be able to see somewhat in real time, this power shift of product influence go from companies, to the voice of the people. The power of social media has really made it possible to happen. I wonder also, since these type of power shifts are happening more and more, I think eventually we will get to a point where consumers no longer need big companies at all, when it comes to acquiring their products or services. What this will do is force big companies to change their structure of how they interact with the consumers, and how they conduct business. I feel that the idea behind social commerce, having been fueled and empowered and injected with steroids by the hand of social media, is the beginning of what we will see become a collaborative, or shared economy. The idea behind a shared economy is where we will start to see major shifts happen, in regard to the voice of the people being heard. Its the idea that businesses need to change how they are doing things, and that creating and selling more products, is not necessarily a good thing. I have attached a video illustrating this called "The Story of Stuff". We might have seen it in earlier courses, but i think it ties in well with the idea behind social commerce, and how social media has allowed for the voice and opinions of the people to be heard.
http://storyofstuff.org/
(that link will take you to the web page where the video can be found at the bottom)
This is a really interesting concept – that consumers will no longer need big companies because social media has turned it into a shared economy. When you think about the big, successful companies online, they’re actually more like marketplaces. eBay? Amazon? Zappos? They don’t just sell one brand or product, and don’t even serve the same industry necessarily. These are social powerhouses that almost just offer up products and consumers can take it from there. I think we’re well on our way to operating in a more collaborative environment!
Dan this is a very interesting concept and it seems as though Qualman is also learning in this direction. It will be very interesting to see where this all leads. Let's hope that the knowledge we've all gained as part of this IMC program that we will be able to surf this wave!
@Lindsey, I think you are correct in pointing out that the big, most successful companies on the web today really serve multiple different purposes and not just one "master". It's through that collaboration we will start to see more and more, a power shift, go from one company that controls everything, to, as you said Lindsey, an open market place where people can collaborate and create their own buying or selling terms and guidelines.
@Bobbie Sue, I tend to think that even though we are about 10-15 years into this "type" of methodology and thinking, that we are still in the very infancy of a great new form of communication, and lifestyle. Everything we grew up with in regard to how we buy, sell, and interact, has changed right before our eyes. I feel everyone in this program knows in come way, the magnitude at which this change will have an effect on our overall way of life, and we are here to be able to be someone on the brink of a new form of communication. We are all early adapters of this new "frontier" and I really to commend each and every one of us for taking that step forward into what could be considered, the great unknown
You did a great job covering the topics in chapter five of Socialnomics! You were really spot on in your identification of the key concept of social media advice and recommendation that Qualman brought up throughout the chapter. People continue to look to social media for advice on anything from vacations spots to movies. The best thing about this is that usually responses come in quick and immediately. With this in mind, companies need to realize that customer feedback and experiences are more and more important. By the sharing of positive experiences with customers, a company can truly benefit. Considering this, I think it is even more important for companies to pay attention to their twitter mentions and feed. By retweeting a post, or thanking a customer for a positive tweet, a company can promote continuous involvement from their twitter followers. Customers/people are always excited to get retweeted by companies they support. If those positive tweets are consistently retweeted, people will continue to post feedback. Overall, you did a great job covering chapter five!
Hi Bobbi Sue –
ReplyDeleteI love this topic! Social commerce is definitely a part of my everyday life and I think many others can say the same. While consumers are embracing technology to share and review product advice and recommendations, I think one of the most important takeaways from this lesson is actually for companies. Consumers are now taking ownership of brands. Companies need to understand, accept and embrace this in today’s social media age. While word of mouth and product reviews are not new concepts, the way that consumers share their ideas and opinions has changed drastically with the invent and adoption social media. Companies traditionally could “control” their brands through brand management, and while this function is still relevant, it does not have the power it used to. Companies cannot direct consumer thoughts and opinions – they can only provide quality products and services and a great overall experience to guide (hopefully positive) consumer reviews.
Erik Qualman (2013) mentioned that “companies and marketers had better start spending more time listening to their customers … [and] acting on the information received” (p.78). This is where these brand managers come into play – they listen to needs, ideas, approvals and concerns and implement changes and enhancements based on this feedback. You may have heard about or remember the 2005 “Dell Hell” blog post from Jeff Jarvis, an unhappy Dell customer. He took to his blog to write about his horrible experiences with the company and it attracted attention of people all over the globe. As a result, Dell “learned to listen and … ended up seeing the value in listening to and ceding control to customers” (Sharma, 2012). After Jarvis’ slam, the company realized the hold its consumers have on its brand and that it needed to participate in those online conversations in order to improve and build upon its reputation. Today, Dell is known for its great customer service.
Can you think of any examples, whether it’s in your professional or personal experience, of a company that did or did not react well to this shift in power? Some companies are slower to adapt, or maybe they haven’t fully embraced this model of listening to feedback and acting on it. I think it’s really interesting to see how different companies respond to this changing environment.
By the way, I think you did a great job presenting this idea and including relevant examples. The Erik Qualman video you provided was also very interesting – love that you were able to integrate this into your post! Great job!
Lindsey
References:
Qualman, E. (2013). Socialnomics: How social media transforms the way we live and do business (2nd ed.). Hoboken, NJ: John Wiley& Sons, Inc.
Sharma, J. (2012, July 12). The Dell hell case study – how to turn negative into positive? [Web log]. Retrieved from http://socialmediaunleashed.wordpress.com/2012/07/12/the-dell-hell-case-study-how-to-turn-negative-into-positive/
Hi Bobbie Sue,
ReplyDeleteVery well written post. Qualman's view seems spot on. I know I have taken to my social media "family" for advice on things like hair care. I've even shared with my followers my secret weapon for cleaning my son's sneakers after a rough day at day care. Web 2.0 and social media have definitely "flattened" our world and has allowed us to not only gain "followers", "subscribers" or "likers" but to garner friendships as well. I have friends that I have met through Instagram who I have never met face to face but who I exchange text messages with about our children. You would think that we grew up as friends. This is the power that social media has brought to us in this present day. You mentioned in your post that people would be more inclined to take heed to a recommendation from a friend or family member versus a complete stranger. My question to you is what if this recommendation came from someone who might be perceived to be a thought leader in their industry? Say for instance if you wanted to know what hair products you should use to achieve a 20's inspired wavy do. You go to your search engine and come across a Youtube video blogger, let's say Elle Fowler, who has 1.1 million subscribers. The quality of her videos is high and she even shows a demonstration in the video. How do you think information like this being available on sites such as Youtube has shaped the way people search for information? I often hear the phrase, "search for it on Youtube" fly around when it comes to needing a "how-to".
People have gotten so used to information like this being so readily available online for free that certain things people no longer feel like they should pay for. On Instagram I follow the Jerseylicious star Tracy Eps and last month she posted a picture of a flyer for a ‘tease, blow-out, and eyelashes’ class she would be teaching later this month for $200. Most of the comments were about the high price and many commenter’s referenced being able to find how-to videos on the same topics via Youtube for free.
All the Best,
Damaris
Hi Damaris – great thoughts around who’s more influential through social: thought leaders and experts, or friends and family? I think it depends on what exactly a consumer is in the market for. For larger, more involved purchases, I rely on experts. It’s great to hear that someone like me loves driving a VW, but I want to know from a specialist the pros, cons and technical features to know if the car is right for me. But for the smaller, everyday kinds of purchases, it’s usually enough to just check out recommendations from friends or people like me. If I’m visiting a new city and want to try a Thai restaurant, Yelp can help with that. While food critics certainly have trustworthy opinions, I don’t need such expert advice to find a place with some good Pad Thai.
DeleteBut if you think about it from a business perspective, companies should be experts in their industry, products and services. Many people may prefer expert advice because experts are often reputable with a wide range of experiences. So, how can a company use this status to help in its social interactions with consumers? While it needs to be careful not to push its business on consumers, are there ways it can share its expertise, and effectively provide recommendations to these consumers?
Damaris and Lindsey, this is a great discussion point and one that I neglected in my original post. You both brought up really valid questions about the difference in the influence level of our social media contacts based on their knowledge of the subject matter or connection to us as friends or family. It seems like my perspective on this issue is similar to both of yours, it depends on the topic and investment required as to whether or not you will seek out information from a professional or a friend. I agree with Lindsey that it is important for businesses to learn how to become the industry leaders in their area so that consumers look to them for information. One company that has done this well is Pampers. They use their website and social media as a way to share information and advice to parents with small children. They also provide parents with opportunities to share stories and experiences. Helping new parents and young parents answer questions about diapering or potty training all while building a stronger connection to the brand.
DeleteHi Bobbie Sue,
DeleteVery true. Pampers has done a great job of producing "content" which is a steady theme throughout Scott's book, The New Rules of Marketing & PR. Producing content is a way to build credibility for the brand so that when people have questions not only about products or services but a particular industry in general, your company would be the "go to".
Bobbi Sue,
ReplyDeleteThank you for bringing up a very important topic. The power of peer reviews is stronger than ever. More and more people are listening to their peers over paid advertisements. “It is a fact that 78% of consumers trust peer reviews and only 14% trust advertisements this is why it’s crucial to be involved in your community and have a good reputation” (Arnaout, 2011). As you mentioned Qualman referred to this in chapter five. I wanted to bring to your attention that Scott states in chapter three that “Smart marketers understand buyers, and many build formal “buyer personas” for their target demographics” (Scott, 2013, p. 43). This is especially important for us to recognize the many factors that go into capitalizing on peer reviews and the persona(s) we need to establish to obtain credibility. Click here for a graphic describing the branding opportunity in the social media space:
http://socialmediatoday.com/santanu-b/472652/peer-peer-amplify-brand
“Ability to access these peer-to-peer conversations can open up new avenue for brands to create brand and customer building activities, amplifying a brands presence manifold” (Bhattacharya, 2012). We cannot stress enough the importance of creating a brand presence whether within our own community (targeted audience) or our perception outside of the targeted audiences and the influence it potentially has. This is significant in my area relating back to the foundation. We have to be aware of the conversations going within our community, to maintain our credibility as a resource for our families. On the other hand we need to maintain a level of involvement outside the boundaries of our community and in the spaces that could potentially influence the work that we do.
How does your organization, Marist, monitor or become a part of these conversations reviewing educational experiences? Is there a strategy that is followed or that is currently being structured to acknowledge this peer review process?
References:
Arnaout, M. (2011, February 5). Are these social media trends of 2011 part of your strategy? Retrieved February 12, 2014, from Socialmedia Today: http://socialmediatoday.com/marinarn/267510/are-these-social-media-trends-2011-part-your-strategy
Bhattacharya, S. (2012, March 19). Peer-to-peer to amplify a brand. Retrieved February 12, 2014, from Socialmedia Today: http://socialmediatoday.com/santanu-b/472652/peer-peer-amplify-brand
Scott, D. M. (2013). The new rules of marketing & pr. Hoboken, NJ: John Wiley & Sons, Inc.
Becky, thanks for reviewing my post and for offering some additional research on the topic. You asked a question about how Marist monitors social media and gets involved in conversations. I think Marist does a wonderful job with this! There are at least 8 “official” social media accounts for the College that are operated by members of the Admissions and Advancement Office. You can find a link the various social media accounts here: http://www.marist.edu/socialmedia/
DeleteOne thing that Marist does really well is sharing messages from supporters. For example, they created a promotion for a “Marist Photo of the Week” and as part of this promotion, the Instagram, Facebook, and Twitter accounts share the photo from a student, alumnus, prospective student, etc. who post a photo that connects to the College. This week’s photo was appropriately a snowman wearing a Marist t-shirt. Because of this promotion, people want to include Marist in their posts. They know that if they tag or reference Marist in their photo, there is a chance that Marist could share their image. This is just one of many ways that Marist is engaging their followers and encouraging them to include Marist in their conversations!
It is wonderful to hear all the quality of work Marist is putting into their social media efforts. I follow many of Marist's social media accounts, but it looks like I have a few more to jump on and follow.
DeleteHi Bobbi,
ReplyDeleteGreat choice of topic! I also enjoyed reading this chapter. You did a great job going over how people are influenced by the people they know and how businesses can take advantage of that influence to increase their business. I have to agree with you and Qualman that social commerce is the future of social media. The signs are everywhere. According to the video only 14% of people trust what advertisers say and 90% of buyers are influenced by people they know.
What a great quote you selected: Any company that wants to thrive in today’s social media age must accept that their brand is partially owned by consumers. It is consumer stories that will resonate with future prospects and “companies need to shore up their products and services so that when social search is commonplace their brand is positioned to win a World of Mouth world” (Qualman, 2013, p. 75).
I really enjoyed reading the video you shared. I loved how Qualman used his own life as an example to illustrate the topic. Can you think of an example of a company that leverages peer influence well?
Thank You for a great post and for following my Blog.
Warm Regards,
Ana
Qualman, E. (2013). Socialnomics: How social media transforms the way we live and do business (2nd ed.). John Wiley & Sons, Inc.: Hoboken, NJ.
Hi Ana,
DeleteThe first company that comes to mind when I think about peer influence is Amazon.com. Not only does the site allow for product reviews, but it also shows other product options based on what other people viewed or purchased after looking at that item. When you're just browsing and are open to other options, this is a great feature. Amazon makes it easy for consumers to read and write reviews, and it also drives them to other pages that they may be interested in based on their viewing history. It's definitely a bit creepy what the site can tell about you, but often both you (and Amazon!) are rewarded in the end since it was that much easier to find what you were looking for. Smart!
Ana and Lindsey, thanks for reviewing my post. Ana, you asked a great question about peer influence and organizations that use it well to condust business. I couldn’t agree more that Amazon.com is an excellent example. I’ve fallen prey to their “suggestions” for similar videos or movies based on what others have purchased. I briefly mentioned TripAdvisor in my initial post as I think they built their entire company on the idea of peer influence and social sharing. Another company that has found success with this model is Netflix. Netflix patrons have the ability to rate any movie they’ve watched which helps determine its popularity. There is a category dedicated to movies that are most watched and highly rated among Netflix consumers. So, not only willNetflix make suggestions based on what the individual consumer has previously viewed, it will now offer titles based on other consumers’ suggestions. In addition, there is an entire category dedicated to Netflix movies that are popular on Facebook. Netflix consumers have the options to share their favorite Netflix movies to Facebook and the most shared movies are included in this category. The idea behind these two categories is based on social share and commerce. Consumers will think that if someone else watched this movie and rated it highly or shared it to Facebook, it must be worth watching.
DeleteLindsey, Bobbi,
DeleteWhat a great example you provided. Amazon! I love the expression you used, 'fallen prey", to describe the purchase you made. I felt the same way. Amazon does a very good job at making recommendations based on our searches and based on your intentions. As for TipAdvisor I remember not choosing to go to a resort because a friend of mine posted a negative review. So these companies have done a good job at influencing our decisions. Great Job!
This comment has been removed by the author.
ReplyDeleteBobbi Sue,
ReplyDeleteI liked the way you described the key points of the chapter. Social search is definitely something that everyone does even if they do not know they are doing it. Often when people are in the market for a product, they will change their decisions based on the experiences of people they know. This is why it is important for companies to get these key opinion leaders on their side. I also liked that you pointed out that while this has been going on for a long time, social media has made this work so much better and faster. People can interact and share ideas so easily that it is easy to see why sharing information like this would happen more often.
I am also happy that you brought up the need for companies to not only allow but encourage user reviews on their products. This is important because people often want to see reviews before they buy a product. This chapter focuses on the idea that the business and customer should have a two way conversation. This can benefit the business because they will get valuable feedback from the customer and can use that feedback to improve their company. I agree that consumers stories are incredibly important when trying to convince a new customer to buy. This chapter was a great example of how social media connecting the world is very impactful on the business world. Were there any ways to increase word of mouth referrals not mentioned in the chapter that you would have liked to see mentioned or would like to learn more about?
Great Post!
Hey Ian – you bring up the point that companies really need to encourage customer reviews because so many people look to them before they’ll buy a product. As a quick personal experience, just today I was online shopping for shoes. I came across a pair of boots I really liked and they were on clearance ($200 off!). But why were there no product reviews? Despite liking the boots from every angle and seeming like quite the steal, I couldn’t get myself to buy them without know what other people thought of them. I even tried Googling the style to see if any other website carried them, but turned up with nothing. So in the end this shoe company lost a sale because it didn’t have any product reviews, which is unfortunate.
DeleteI’ve shopped with other companies who follow up with me about a week or two after I’ve purchase a product to see if I’ll write a review. They catch you right after so it’s soon enough, but still give you time to have had some experience with it. This is a great way for companies to really solicit feedback that will help them in future sales.
Ian and Lindsey, customer feedback is a very important marketing and public relations tool. As we learned this week, social media makes it easier to encourage and collect consumer feedback. While researching for this week’s discussion, I came across an article that did a great job of explaining its significance. “A company’s success rate is only as good as its customer loyalty. You can’t just rely on sales figures to determine if your customers are happy with your company and the goods or services you offer. Market trends can turn on a dime and you could find yourself on a downward curve with no idea what happened. That’s why it’s a good idea to constantly seek and evaluate customer feedback” (Garrison, 2009, para. 1). It went on to discuss the risk of not encouraging consumer feedback. “If you’re not driving the customer feedback process, the only time you’re likely to hear from customers is when something goes terribly wrong” (Garrison, 2009, para. 2). Organizations can use consumer feedback to gain an understanding of the wants, needs and concerns of customer for today and in the future. “Tomorrow’s position in the marketplace depends on the facts and figures you gain today and how you respond to that information” (Garrison, 2009, para. 12).
DeleteReference
Garrison, R. (2009, September 28). Importance of customer feedback. Inside Business 360. Retrieved from http://www.insidebusiness360.com/index.php/importance-of-customer-feedback-16938/
Bobbi,
ReplyDeleteSocial commmerce has become a key component of the shopping experience in the day to day lives of consumers. Amazon.com is an important example of social commerce in action as consumers read reviews of other customers before making an educated purchase. Amazon.com lets you become part of the social media conversation as they provide consumers a chance to offer reviews and share there experiences. Based on these reviews hundreds of other customers make purchases.
Saurav, thank you for reviewing my blog post. Ana and Lindsey had a similar discussion that you can see above. Like you, Lindsey suggested that Amazon.com was a great example of an organization that found a way to capitalize on social commerce. I also felt that TripAdvisor and Netflix were good examples. There is more information above if you are interested!
DeleteHey there Bobbi,
ReplyDeleteI really liked the points you brought up and how they were clearly defined. I also like that you brought up the incentives that Qualman touched on in this chapter. I think that when it comes to sharing reviews and insights about a certain product or service, incentives have the potential to play a large role in the users’ view and willingness to share, especially if the product is new. However, if a product or service is good, incentives might just help the sharing process and get more people to buy into it.
“Do good work as a business and the customers will freely respond to your online customer review process. In surveys, 70% of the people said they did online customer reviews because they hoped to help other people with their buying decisions. Incentives are not necessary. ‘Helping others is the only incentive needed!’” (Local Marketing Search)
Social commerce is a booming industry that I feel sometimes companies do not take full advantage of or know how to use. Today’s consumers want to feel as if they are ‘a part of something bigger.’ Being able to connect with a company’s product via social networks provides the instant gratification they need. This can almost provide a one-stop-shop feeling because as Qualman speaks to, we are able to connect with our friends and peers to find out which products work and which ones don't. Social media has transformed the way we look at word of mouth, basically putting it on steroids and giving it a place for the whole world to see.
Reference:
Local Search Marketing. (2011, November 17). Do Incentives Help or Hurt Getting Online Customer Reviews? Retrieved from Local Search Marketing- St. Paul: http://successfulinternettools.com/2011/11/do-incentives-help-produce-customer-reviews/
Qualman, E. (2013). Socialnomics: How social media transforms the way we live and do business (2nd ed.). John Wiley & Sons, Inc.: Hoboken, NJ.
Hey Rhiana,
DeleteI like how you mention that consumers like to be a part of something bigger, and for that they’re more likely to share reviews even without incentive. Sometimes people also feel like they owe it to other consumers. A few years ago my family and I visited Australia and we relied heavily on customer reviews on Yelp and TripAdvisor because we didn’t know much about the restaurants, hotels and attractions over there. Because we basically traveled off others’ recommendations, we made it a point to review all places we visited so that advice would be available for the next traveler.
If companies are smart, they’re monitoring sites like Yelp and TripAdvisor in addition to their own social media channels, responding to both negative and positive reviews. It helps them both improve upon their operations and build relationships. Consumer feedback is very valuable and companies need to seriously consider these opinions to better their business.
As we learned from Qualman (2013) in this week’s reading, incentives are a great way to encourage consumer feedback. If I'm hesitant to give up the 5 - 10 minutes to share feedback, knowing that I'm getting something for my time helps make it worthwhile. I recently had dinner with my husband at Bonefish Grill. At the end of my meal, they give me a link to go online to complete a consumer feedback survey. I’m not sure this was an ideal method to collect the feedback as I would have preferred to do it immediately. However, they offered me a complimentary Bang Bang Shrimp on my next visit if I went online to complete the survey. If you’ve ever had Bang Bang Shrimp then you know it is totally worth the five minutes it took to complete the survey .
DeleteReference
Qualman, E. (2013). Socialnomics: How social media transforms the way we live and do business (2nd ed.). John Wiley & Sons, Inc.: Hoboken, NJ.
Hey Bobbi Sue,
ReplyDeleteGreat job on this week's post. You covered the topic of Social Commerce petty thoroughly. It so interesting to be able to see somewhat in real time, this power shift of product influence go from companies, to the voice of the people. The power of social media has really made it possible to happen. I wonder also, since these type of power shifts are happening more and more, I think eventually we will get to a point where consumers no longer need big companies at all, when it comes to acquiring their products or services. What this will do is force big companies to change their structure of how they interact with the consumers, and how they conduct business. I feel that the idea behind social commerce, having been fueled and empowered and injected with steroids by the hand of social media, is the beginning of what we will see become a collaborative, or shared economy. The idea behind a shared economy is where we will start to see major shifts happen, in regard to the voice of the people being heard. Its the idea that businesses need to change how they are doing things, and that creating and selling more products, is not necessarily a good thing. I have attached a video illustrating this called "The Story of Stuff". We might have seen it in earlier courses, but i think it ties in well with the idea behind social commerce, and how social media has allowed for the voice and opinions of the people to be heard.
http://storyofstuff.org/
(that link will take you to the web page where the video can be found at the bottom)
Nice work,
- Dan
Hey Dan,
DeleteThis is a really interesting concept – that consumers will no longer need big companies because social media has turned it into a shared economy. When you think about the big, successful companies online, they’re actually more like marketplaces. eBay? Amazon? Zappos? They don’t just sell one brand or product, and don’t even serve the same industry necessarily. These are social powerhouses that almost just offer up products and consumers can take it from there. I think we’re well on our way to operating in a more collaborative environment!
Dan this is a very interesting concept and it seems as though Qualman is also learning in this direction. It will be very interesting to see where this all leads. Let's hope that the knowledge we've all gained as part of this IMC program that we will be able to surf this wave!
DeleteHey Bobbie Sue and Lindsey,
Delete@Lindsey, I think you are correct in pointing out that the big, most successful companies on the web today really serve multiple different purposes and not just one "master". It's through that collaboration we will start to see more and more, a power shift, go from one company that controls everything, to, as you said Lindsey, an open market place where people can collaborate and create their own buying or selling terms and guidelines.
@Bobbie Sue, I tend to think that even though we are about 10-15 years into this "type" of methodology and thinking, that we are still in the very infancy of a great new form of communication, and lifestyle. Everything we grew up with in regard to how we buy, sell, and interact, has changed right before our eyes. I feel everyone in this program knows in come way, the magnitude at which this change will have an effect on our overall way of life, and we are here to be able to be someone on the brink of a new form of communication. We are all early adapters of this new "frontier" and I really to commend each and every one of us for taking that step forward into what could be considered, the great unknown
Bobbie Sue,
ReplyDeleteYou did a great job covering the topics in chapter five of Socialnomics! You were really spot on in your identification of the key concept of social media advice and recommendation that Qualman brought up throughout the chapter. People continue to look to social media for advice on anything from vacations spots to movies. The best thing about this is that usually responses come in quick and immediately. With this in mind, companies need to realize that customer feedback and experiences are more and more important. By the sharing of positive experiences with customers, a company can truly benefit. Considering this, I think it is even more important for companies to pay attention to their twitter mentions and feed. By retweeting a post, or thanking a customer for a positive tweet, a company can promote continuous involvement from their twitter followers. Customers/people are always excited to get retweeted by companies they support. If those positive tweets are consistently retweeted, people will continue to post feedback. Overall, you did a great job covering chapter five!