Talking Moments of Trust, Mobile & Social at MMA's Los Angeles Forum

We're about to enter a holiday season like none other with more shoppers bringing their megaphones to retail locations where they will comment on Moments of Trust via Twitter, Facebook, text and more.

I'll discuss the implications Nov. 16 at the Mobile Marketing Association's Forum.  Details are here http://forum.mmaglobal.com/losangeles2011/agenda.>

Ping me if you would like a discount code.

Battle For Public Opinion To Be Lost Via Mobile

Mobile Marketer asked me to name one unexpected thing that may happen during the holiday season.

Here's what I told them:

“Retailers who provide poor customer service will suffer as mobile subscribers armed with what I call megaphones take to their social networks and use messaging to voice their displeasure.

“The adage forever was that you could lose the battle for public opinion in two hours. It is now more like two minutes when experiences at these Moments of Trust touch points get communicated on Twitter, Facebook and other social networks.

“How bad can this get for a retailer? Smartphones now have eight megapixels, HD capabilities and near-instant posting options. It can get very bad very quickly.”

The full article is here http://www.mobilemarketer.com/cms/news/commerce/11257.html

 

Adotas Weighs In On My Moments of Trust - Mobile/Social Findings

““Perhaps we’ve become so used to crap customer service that a tale of excellent treatment is rare, even surprising — it’s actually news,” Gavin Dunaway writes in an Adotas article covering my Moments of Trust mobile/social findings.

Gavin relays my experiences with Comcast and a restaurant in Seattle and suggests that Klout equals clout.

The full article is below with the link here http://www.adotas.com/2011/06/consumer-democracy-now-hipcrickets-hasen-talks-social-media-crm-in-the-smartphone-era/ 

ADOTAS – If social media is the customer relationship management tool of the early 21st century, then smartphones and mobile devices that connect to the Internet are its portable extensions. Imagine a vacuum cleaner with a hose add-on for those hard-to-reach spots, except this hose can be carried with you everywhere to pick up whatever dirt and debris you come across.

Except (to stretch this metaphor a little further) American consumers aren’t sucking up the dirt, or rather bad customer service or brand experiences, and sharing it on social media as much as they are spreading their positive experiences.

It may fly in the face with the common wisdom that humans harp on the negative, but a new survey commissioned by Jeff Hasen, CMO of mobile marketer Hipcricket, found that while 40% of consumers with smartphones or Internet-enabled mobile devices have used them to spread word to their social networks about an in-store experience, 46% of them reported a positive one versus 40% that cited a negative one.

“Perhaps we’ve become so used to crap customer service that a tale of excellent treatment is rare, even surprising — it’s actually news,” I comment to Hasen, who is in NYC to debut his figures at the 140 Characters conference. “I mean, that’s pretty cynical, but these are cynical times.”

According to Hasen’s findings, 18% used Facebook to report on consumer service experiences in real-time, while 8% used Twitter and 32% used text messaging. In addition, 34% of all survey respondents said they had seen a customer experience posted on their social networks and 48% said they would be influenced by such a post.

The smartphone revolution combined with the power of social media may strike fear in the hearts of people in retail and other service-oriented ventures. No longer does the consumer need to wait to get home to write a scathing blog post or email a brand’s – by that time, the angry consumer may have cooled off. But mobile devices hooked up to the web offer real-time venting regarding customer service. Talk to the manager? Why don’t we talk to the Internet instead?

But the devices also provide opportunities for brands to shine in the customer service department. You could argue that mobile social media coerces better — or maybe appropriate — customer service, but consumer willingness (you could even say initiative) to spread positive experiences presents an earned marketing situation.

Hasen frames it this way — he was trying to sign up for an extras package from a certain cable company infamous for its lackluster customer service but had missed the cutoff date of a super deal by one day. Even though he’d been a loyal customer for years, the phone help refused to throw him a bone.

So Hasen took to Twitter and other social media outlets to complain, and what do you know — a short time later a major higher-up in the cable company’s marketing department actually gets him the subscription package at no charge.

One reason Hasen received such stellar service via social media is that with more than 1,700 followers on Twitter, he’s got some influence. He mentions he was recently on a conference panel where the social media manager of a major brand admitted that his company examines the number of followers a complainant has on Twitter before deciding whether to respond.

But that method is for the big brands, and he suggested that even they don’t think it’s the most effective.

“Can you imagine giving a hotel concierge your Twitter handle so he or she can decide what level of service to give you?” he asks rhetorically. “A help desk asking what your Klout score is?”

Consider this — around the same time, he patroned a fine dining establishment (no chain) near his Seattle home known for its Alaskan Halibut. In the region, the style is to undercook the fish, but Hasen wanted it medium well. When he received a medium rare filet, he expressed his displeasure — the restaurant did not put the fish back on the grill, but cooked him a new one and then comped him for the dish.

Sure, that’s a great way for a small business to get repeat business (and Hasen says he returned the next month), but in the age of social media and the instant sharing of experiences, it’s a smooth move for instant earned marketing. The restaurant had no idea how many followers Hasen on Twitter (strangely, they didn’t ask for his Twitter handle next to his signature on the check). The old adage that you never know who is going to walk in has never been truer, just add “you never know how much social media influence that person has” to the end.

“Customer service should be democratic,” Hasen says ”With social media-enabled mobile devices, the consumer has more of a voice in the service industry. The smartphone is a megaphone.”

At the same time, brands can’t be deaf to the social conversation — 35% of the consumers surveyed said they would want to hear from a brand after a negative incident. Only 10% of those who had posted about a customer service experience received feedback from the brand mentioned.

Founded in 2004, Hipcricket is a relative veteran in the field of mobile marketing, having recently powered its 100,000th brand campaign. Earlier this year the company released version 7.0 of its cloud-based mobile marketing and advertising platform HIP, with new features such as integration with Facebook Pages and the SmartXchange conversational SMS tool.

Trend-wise, Hasen notes that Hipcricket is seeing fewer one-off mobile campaigns and more long-term brand partnerships, which he sees as a signal that mobile has cemented its spot in the digital marketing arena.

“It’s not the year of mobile,” he explains. “This is the year brands choose their mobile partners.”

Additional Moments of Trust Survey Coverage

The subject of nearly 100 tweets, my Moments of Trust survey is making its way onto marketing and mobile sites worldwide.

On Mobilegroove, Peggy Anne Salz, a well-regarded mobile industry expert and commentator, called it “must-read analysis that should spark marketers to listen in and answer back.“ http://www.mobilegroove.com/watch-out-listen-in-connected-consumers-can-damage-your-brand/.

(Full disclosure: as many of you know, I write a weekly column on Mobilegroove)

Peggy’s take on the results:

“Connect the dots, and there is an opportunity (even a requirement) for brands to listen in to what people are saying about their retail experiences and — more importantly — respond. No doubt this approach would go a long way toward solving issues before they balloon into full-scale social media meltdowns.”

The study is also featured on Technorati http://technorati.com/business/advertising/article/mobile-phones-become-megaphones-in-intersection/ and IMedia Connection http://blogs.imediaconnection.com/blog/2011/06/19/megaphone-effect-as-consumers-use-mobile-and-social-in-moments-of-trust/.

Media Weighs In on Moments of Trust Survey Results

Mobile Marketer and sister online publication Mobile Commerce Daily covered the Moments of Trust survey findings. Reporter Rimma Kats asked me where I see the megaphone effect going in the next year.

“For 2012, I foresee richer and faster Moments of Trust experiences being sent to Twitter, YouTube, Facebook and other channels,” I told her. “Devices are more capable – more photos are taken now by phone than dedicated camera and video usage on mobile is on the rise.

Rimma’s take on the results are included in her story - http://www.mobilecommercedaily.com/2011/06/17/consumers-increasingly-use-mobile-to-voice-in-store-experiences-survey

My Proprietary Research On Influence of Mobile and Social on "Moments of Trust"

Mobile devices have become megaphones for a large portion of users with more than 40 percent telling those in their social networks about negative or positive experiences with brands, according to new research I commissioned and unveil today at Jeff Pulver’s stirring 140 Characters Conference http://nyc2011.140conf.com/.

In a representative national survey of feature phone and smartphone owners, 46 percent reported that they communicated with friends, family and their social network following a positive in-store experience. In addition, 40 percent say they used their phone in a retail location to detail a negative interaction.

For more than 10 years, I have been a frequent analyst and commentator on what I call  “Moments of Trust”, consumer touch points with brands that influence trial, sales and loyalty. Mobile certainly now factors into the dynamic.

Of those who used their devices to communicate brand experiences, 18 percent used Facebook; 8 percent employed Twitter; and 32 percent communicated via text message.

In other findings: 

·      10 percent said that they had heard from a brand following a post about a retail interaction

·      35 percent said they would want to hear from a store or brand after a negative experience

·      34 percent said they had seen a post from someone in their network

·      48 percent said they would be influenced by a post

What does this all mean? 

In my view, nothing has changed while everything has changed. Since day one of commerce, it has been critical to serve the customer. That is, of course, still true today. What is dramatically different is the consumer’s ability to broadcast his or her experiences and to influence consideration and purchase patterns.

Paying Price For Customer Service

During the recession, shortsighted businesses competed on price rather than level of customer service. It turns out that the consumer noticed and in big numbers is reacting now by taking his or her business elsewhere.

According to the American Express® Global Customer Service Barometer, 78 percent of consumers have bailed on a transaction or not made an intended purchase because of a poor service experience. Further, three in five Americans (59 percent) would try a new brand or company for a better service experience. Most surprising and disturbing is the finding that consumers are willing to pay a premium for a good interaction.

According to the study, seven in ten Americans (70 percent) are willing to spend an average of 13 percent more with companies they believe provide excellent customer service. This is up substantially from 2010, when six in ten Americans (58 percent) said they would spend an average of 9 percent more with companies that deliver great service.

As to whether “help” is enough, two in five (42 percent) said companies are helpful but don’t do anything extra to keep their business. Also, one in five (22%) think companies take their business for granted.

The survey is generally in line with global findings from Accenture which reported earlier this year that satisfaction with customer service has decreased since 2009 in each of 11 characteristics measured. Also, 64 percent of consumers have switched companies in the past year due to poor customer service. Accenture findings point to a high level of distrust. Only one in four respondents say they trust the companies with which they do business, according to the survey.

Missing from the survey is detail on what consumers do with their mistrust? Do they use their mobile phones to get on social networks or text when companies fail at so-called “Moments of Trust”? Do individual tweets, blog posts and Facebook postings influence sales and loyalty? I’ve commissioned a study and will release the findings in June when I speak on the subject at Jeff Pulver’s 140 Characters Conference in New York. (Article first published as Paying The Price For Customer Service on Technorati)

Getting Close To Legends

I’ve got the number 470 on my mind tonight.

Huh, you wonder? It’s not only the number of years since the saying “you’re known by the company you keep” was first uttered (according to Wiki answers), it is the number of times I smiled today since I got web close to legends Jeff Pulver and Craig Newmark.

Jeff graciously has given us his 140 Character Conference speakers a spot on his highly read blog http://140conf.com/blog. My turn was today http://bit.ly/kY3hKS. Hours later, I shared the page with Craig, the founder of Craigslist. http://bit.ly/j24HW9. I encourage you to read Craig’s post about giving voiceless people a voice.

And, if you’re so inclined, please read my preview of the new Moments of Trust presentation set for June 16.

I also suggest you smile 470 times before bed. I had my reason – I’m sure you have yours.

Know Anyone Who Wants To Be Targeted?

Do you – or anyone you know – really want to be targeted?

Just the term conjures up images of bulls-eyes, shooting ranges and scenes from the movie Minority Report. Little wonder that we don’t have a desire to be targeted. Yet targeting is core to marketing in all its forms, from creating and maintaining a database to developing an online/offline strategy. And every so often – and it is becoming quite often — the discussion about targeting also triggers a debate about personal privacy.

Understandably, it’s a volatile issue that raises as many tempers as it does questions. Case in point: the backlash when people learned the truth about Facebook’s privacy policies and the company’s tepid initial response. This week we learned the details about how Apple collects location information from iPhone devices (and hence, their users) — data it yields to help marketers target consumers.

Apple’s policy should be no surprise to iPhone users. The intent to collect and share this personal data is spelled out in the company’s terms and conditions. It states: ““Apple and its partners and licensees may provide certain services through your iPhone that rely upon location information. To provide and improve these services, where available, Apple and its partners and licensees may transmit, collect, maintain, process and use your location data, including the real-time geographic location of your iPhone, and location search queries. The location data and queries collected by Apple are collected in a form that does not personally identify you and may be used by Apple and its partners and licensees to provide and improve location-based products and services.” It continues: “By using any location-based services on your iPhone, you agree and consent to Apple’s and its partners’ and licensees’ transmission, collection, maintenance, processing and use of your location data and queries to provide and improve such products and services. You may withdraw this consent at any time by going to the Location Services setting on your iPhone and either turning off the global Location Services setting or turning off the individual location settings of each location-aware application on your iPhone. Not using these location features will not impact the non location-based functionality of your iPhone. When using third party applications or services on the iPhone that use or provide location data, you are subject to and should review such third party’s terms and privacy policy on use of location data by such third party applications or services.”

 Detailed? Yes. Completely transparent and understandable? Well, maybe.

Does it comfort people and put their minds at ease? Not a chance. Where this issue is headed it easy enough to predict. Think of the money (billions of dollars) involved in targeting and marketing. Despite politicians getting into the conversation this week, it’s not likely that we can expect dramatic changes forced by regulators, at least not any time soon. You know where President Barack Obama went this week, right? To Facebook to get a photo opportunity with Facebook co-founder Mark Zuckerberg. Zuckerberg also moderated a town hall event — no doubt to show off Obama’s social media savvy just as the run-up to the 2012 elections begins.

So, where will the debate about personal privacy likely lead? It will likely stall, a development that will only accelerate demand by consumers for terms and conditions (related to targeting, advertising and location, for example) that are clearly visible, completely transparent and 100-percent understandable. What will work? Ultimately, it’s all about the consumer and getting their permission. If they want to be targeted (because it ensures they will get offers they really want) or enter into a reward arrangement such as a mobile loyalty club, then they will tell us. Any other approach (that doesn’t require opt-in) is likely to backfire.

(More from my MSearchGroove column here http://bit.ly/f1O7RI)

The Next Chapter in The Question of Whether A Twitter Following Brings Clout

Not that I was thinking this way, but what if I believed, Gosh, I have a lot of Twitter followers and I want to be treated like royalty. To end my week of interesting interactions, last night I ended up with a rather uncooked expensive piece of halibut at a nice restaurant called bin on the lake in Kirkland, WA. This despite my ask to have the halibut cooked medium well rather than the usual medium rare restaurants in the Northwest typically choose to prepare. The establishment did not ask me if I was a big shot. It did not (as far as I know) go onto Twitter to see if I have a following. What did it do?

  • Apologize profusely
  • Prepare a new piece of fish the way I wanted it cooked
  • Send me a salad while I was waiting so my wife and I wouldn’t eat at separate times
  • Offer us free dessert
  • Take the price of the halibut off the bill (despite the fact that it was the most expensive item)

My point in telling this story? The restaurant performed admirably. It had nothing to do with my clout or any supposed influence that I have. It was purely good business. And worthy of a return visit – we already have a date picked out.

Should a Cable Company Be Held To The Nordstrom Standard?

Comcast isn’t Nordstrom. But can it be? First off, my bad when I didn’t pay attention to the timing of the early bird pricing on the Major League Baseball season package. After seeing the $199 price online yesterday morning, I phoned Comcast, my cable television provider for 10 years and a bundle customer (including Web and phone) for about the past two. Comcast’s customer service rep listened to my ask – to receive the $20 price break – then told me the deal had expired the previous day. “I’m a long-time customer, spend a lot of money with you, and have service on six televisions.” Nothing gave so I hung up. An hour later, I called back and asked for a supervisor. The rep went off the line for about 10 minutes only to come back to chastise me for calling back when I was told no. I again asked for a price break – my fault on the late call but I spend about $250 a month with Comcast – and was told it wasn’t going to happen. “How about a $20 credit for being such a good customer?” No and no. I took my story to Twitter and @comcastcares who quickly responded by asking me to send my story to an email address. On my answering machine last night, Comcast called to ask me to take a survey about my customer service experience. They don’t read their files or Twitter? This morning, Executive Customer Care emailed me and said in part, “We do value you greatly as a customer and completely understand that in today’s economy that there are many ways to obtain entertainment service and it is a choice of our customers to choose Comcast for their phone, internet and TV service. We cannot thank you enough for your dedication to us as a company and for helping us keep our commitment to quality customer care.I would like to offer you the MLB season pass, free of charge to you should you still wish to order this package.” Nordstrom-esque, wouldn’t you say? Of course, I screwed up initially by failing to call during the introductory pricing period. But I expected to be treated like a valued customer at what I call a brand’s Moments of Trust. How do you rate Comcast’s performance? Beyond that, was I right to ask Comcast to correct my wrong?

Are the iPhone Rumors Part of Another Apple Ruse?

If Apple is anything, it is unpredictable. I’ve been quite amused this week by the pundits and industry analysts who claim Apple will delay the introduction of the iPhone 5. I have to wonder where they have been (or how well they really know Apple). Steve Jobs likes a little drama (and fun). Just think how many times Steve closed his speeches with “Just one more thing”– right before springing some of the industry’s biggest surprises on us. Cases in point: the introduction of the iMac and iPod. Earlier this week, and as per usual this time of year, Apple invited software developers to its Worldwide Development Conference (WWDC) taking place June 6-10 in San Francisco.  The invitation said the focus of the show will be iOS and Mac OS. Then the speculation began. A headline at Business Insider (which seems to have gotten one step ahead of itself here) claimed “Apple’s iPhone 5 Delay Just Opened The Door For Google And Microsoft.” Another headline went out a similar limb asserting “Here’s Why Apple’s iPhone ‘Delays’ Might Actually Be A Good Thing.” What’s so “good” about it? Business Insider sees it this way: “While some may see this as an ‘un-Apple like’ “delay, this habit-breaking might actually be a good thing — for would-be iPhone buyers, Apple fans, and investors. Why? Because Apple needs another smartphone breakthrough, like the first iPhone was in 2007.” Whether you are in California, Cancun or Copenhagen, you probably can hear the laughter coming from Apple’s Cupertino office. Of course, I have no inside information but I do suspect a ruse here. Think it through – carefully. Why would Apple deny the rumors now when the company has a chance to surprise us (again) and deliver a game-changer during the keynote? Admittedly, I could be wrong about this. Until we know for sure marketers would be ill-advised to plan strategy and campaigns based on the iPhone 4 (suddenly regarded by some as a stale device in the marketplace) and give up on iPhone 5 just yet. (The above first appeared at www.msearchgroove.com. Please see the rest of the column here - http://www.msearchgroove.com/apple-likely-has-last-laugh-again-googles-in-app-payments-could-change-the-game/)

My Beef With Taco Bell's Crisis Management

Back when my hair was dark, the adage was that you could lose the battle for public opinion in two hours. Today? It’s closer to two minutes given social networks and mobile devices that work as megaphones. So just what took Taco Bell five weeks to fully respond to claims in a lawsuit that Taco Bell is using false advertising when it refers to using "seasoned ground beef" or "seasoned beef" in its products. It has been a failure at the "Moments of Trust". According to the Associated Press http://huff.to/eW2HZ3, Taco Bell is now turning to TV commercials after full-page newspaper ads and Twitter and Facebook efforts reached only about half the population. Imagine that? TV for reach. Television that was in its prime when my hair was, well, you know. Taco Bell initially ran full-page ads last month in national newspapers. They then launched a Twitter campaign, and finally turned to Facebook fans with an offer of a free crunchy beef taco. Missing from Taco Bell’s defense is a mobile strategy. Others in the fast food category have built robust databases and gained customers by providing offers via mobile. Plus, mobile is ideal for immediacy. Maybe Taco Bell will get there with mobile. But that might come at the two-month mark. That’s my beef.