Posts Tagged ‘facebook’

The Changing Business Culture – Reacting To Consumers And Social Media

Wednesday, December 23rd, 2009

It has been an interesting year for public relations.  The recession has affected how businesses communicate.  Reputation and issues management have been the watchwords as companies throughout the world battled to safeguard their image and reputation during what could be described as the first major downturn in this globalised era.  And it has taken no prisoners as it spread across sectors and continents, highlighting how interconnected we all are today.

What’s been interesting is that while the recession was causing havoc around the world, consumers became better connected.  Issues that once might have only affected reputations in a small geographic region spread like wild fire thanks to social media and networking.  Media outlets across the world wasted no time in reporting issues that were trending online.

While this was happening companies continued in their monologue culture, dictating at consumers while they engaged and networked online – sharing feedback and their experiences through websites, blogs and real-time platforms such as Twitter, Facebook and YouTube

And that is the point.  Social media and networking has empowered consumers.  It has given them a platform through which they can share knowledge and experience.  It has also raised their expectations with regards to what they want and how they want it.  They expect good service and that expectation crosses sectors.  Today, if you have outstanding service when buying a car, you expect the same level of service when dealing with your bank or utility company.  Social media has unified the expectations of people and it is now up to companies to realise this.

The fear that the business community has is that it isn’t able to control the conversation.  Entering into a conversation with current or potential consumers on a digital platform “entails considerable risk” as the Accenture report says.  Risk because if your levels of service do not meet the expectations of your empowered audience, said stakeholders will amplify their displeasure and share it with others, may others.  In fact, the Accenture says that “one-quarter of respondents have used these channels [digital] to relate their negative experiences to others.”  In fact, nearly nine in 10 consumers globally told the people around them about their bad experiences.  And this is not what businesses want during an economic recovery.

You just have to look at how Eurostar created a rod for its own back by behaving in such as detached way from what was affecting their customers.  A lack of empathy and the use of corporate language only helped turn an issue into a crisis.  Such was the reaction to horrendous customer service that customers turned to Facebook and other online sites to vent their anger at how they were treated.

And let’s not forget how Rage Against The Machine became the UK’s Christmas Number 1.  Tired of being fed ‘pop-tastic’ fodder, people joined a Facebook group that attracted over 1 million supporters who wanted to break the monopoly of X-Factor.  People power at it’s best.

So, what should businesses do in order to meet the ever-increasing expectations of consumers?  Accenture rightly says that companies should dump the ‘one-size-fits-all’ customer service model and “embrace a service model that provides differentiated service experiences based on the expectations and requirements of individual—and closely understood—customer segments.”

Businesses in the so-called emerging markets have become more vulnerable to the power of people.  One could argue that it’s because consumers are keener on making the most of their new found wealth, while customers in mature markets are more patient and will only as a last resort take their business elsewhere.

For quite some time consumers have had customer service that’s been designed for them rather than with them.  With the speed at which the public can create a backlash it is going to be essential that businesses learn to listen and start developing models that can be customised by customers.  Collaboration and prompt attention and the understanding that each consumer is unique will help businesses succeed as the economy climbs out of recession.  This culture and philosophy will work to turn consumers into advocates, turn people into an invisible word-of-mouth and online sales force.

I believe that 2010 will be a year where public relations forces businesses to take note of what customers want.  A year where cultures will need to change, because if they don’t and consumers ever increasing expectations are not met reputations will suffer.  Businesses will start noticing that their customers are now critics that will make their opinions known not just through word-of-mouth but online, to a much wider audience.

In 2010 consumers that share their positive or negative thoughts and experiences will attract cult following.  Of course on issues such as banking we already have this with MoneySavingExpert.com’s Martin Lewis.  Just think of what he’s achieved and wonder what others could do in sectors in which they are customers.

We are witnessing a change and social media is the platform through which consumers will fight for the service that they expect.

But as Niccolo Machiavelli said, “whosoever desires constant success must change his conduct with the times.”

'Journalists And Social Media: What PRs Should Know' event overview

Saturday, November 28th, 2009
Laura Oliver, Nic Newman and Julio Romo

Laura Oliver, Nic Newman and Julio Romo

Nic Newman summed up the impact that social media is having on journalism when he said that based on volume and time spent on site, “Facebook was six times bigger than CNN.”  People today spend more time on social networking sites than on news sites, with industry commentators citing this to highlight the reason for the supposed death of news and quality journalism.  For others though social media represents an opportunity – a resource that adds value to journalism, which is why the Chartered Institute of Public Relations Greater London Group (CIPR GLG) wanted to host an event to discuss how social media is re-shaping journalism and the news industry.

For this debate we were delighted to welcome Nic Newman, the BBC’s Future Media and Technology Controller for Journalism and Digital Distribution and Laura Oliver, Editor for Journalism.co.uk.

Nic had just returned to the BBC after three months at the Reuters Institute for The Study of Journalism at Oxford University where he wrote a paper on ‘The rise of social media and its impact on mainstream journalism.’ A document that gave insight into how social media was being adopted and used within the BBC, CNN, The New York Times, The Guardian and The Daily Telegraph.

As has been well publicised, the reach of news organisations has been in decline for many years, ever since publishers implemented a business model that gave away its content for free online so that they could get a slice of the at the time new revenue from online advertising.  Of course as we now know this strategy ended up ‘cannibalising’ revenues from print, broadcast and other news focused incomes as consumers stopped buying newspapers and magazines and moved online where news is free.

The double-whammy came with the rise of social media, as people moved to Facebook, Twitter and the like and stopped visiting news websites.  And it was through these ‘herds’ – their friends and followers – that people started to get the breaking news stories that for so long had been the preserve of news outlets.

While some industry commentators saw social media as the final nail in the coffin for quality journalism and the news industry, others viewed it as an opportunity, as it confirmed the belief that through social media journalists could ‘better reach out to people who know more about a given subject.’

Nic NewmanNewman stated that what we are currently seeing in journalism is a, “quiet revolution.”  Between 2007-2009 there’s been an explosion in participation, ‘driven by user-friendly internet tools, better connectivity and new mobile devices.  Social Networking and UGC have become mainstream activities, accounting for almost 20 per cent of internet time in the UK and involving half of all internet users.  This dramatic change has forced traditional news organisations to take note.’  And news outlets have reacted by abandoning attempts ‘to be first for breaking news, focusing instead on being the best at verifying and curating it.’

Social media expert Clay Shirky says in Newman’s report that ‘you trade speed for accuracy’ by getting updates from Twitter.  And this is what the news industry is now focusing on, accurate and in-depth reporting.

The BBC’s user generated content (UGC) hub on an average week processes over 10,000 email comments, 1,000 still images and 100 video clips.  Staffed by 23 people the hub can access breaking news images and stories, supporting news producers for programmes such as the BBC’s Ten O’Clock News.  They also act as a contact point for people with stories to tell – a case of this was when it was contacted in February 2009 by an HBOS whistleblower.  Social media is a platform that links people with quality news.

We were told by Newman and Oliver that social networks allows journalists to find and tell better stories and engage with new audiences.  I asked if this meant a reduced role for PRs as journalists could go ‘straight to source’ through social networking channels.  “No,” we were told.  Just as journalists could use social networks to gain facts, insight and case studies, PRs could and were bypassing the media and taking their messages direct to their audiences.  Oliver added that, “PRs would always be involved in the conversation.”  The right to reply we should remember is to a certain extent enshrined in journalism and the editorial guidelines of many news outlets.

Newman pointed out that “as if to add insult to injury, these new networks and individuals are also acting as a check on traditional media, questioning our accuracy and standards, and forcing transparency.”

Laura Oliver tells us about journalists use of social media

Oliver confirmed that outlets are having to be more transparent.  I asked if social media is opening journalists’ notebooks.  “Yes,” was her answer.  In Oliver’s case, and from what she knows from journalists in nationals and business-to-business titles, there is a lot of sharing of links through social bookmarking sites and the like.  Links that allow people to build a better picture of a journalist and their ‘beat.’  It also allows readers and PRs to build better relationships with them, which can only be a good thing.

But how is social media being used in journalism?  Laura Oliver confirmed that journalists now use sites to gain opinion and case studies on stories that they might be working on.  People can be found on networking sites discussing most subjects and this is invaluable to journalists.  These people are consumers, potential customers and stakeholders.  They share thoughts and knowledge with other people.  If they complain about a bad experience with a brand, they’ll share it, and journalists will hear it and if it’s newsworthy enough report it

Journalists and media outlets know that people carry mobile devices with which they can stay in contact with their networks.  They know that people can now compliment a story that they are working on as these devices can capture images and audio.

The new tools of the trade for journalists include Tweetdeck, Facebook, Audioboo – an application that allows users to post and share audio files.  Newsrooms I am sure also have the ability to monitor conversations through Viralheat, a social measurement platform that covers hundreds of viral video destination sites, Twitter, and millions blogs & websites.

News outlets like the BBC for example use Twitter to get case studies for news packages about any story.  Newman gave the example of how the BBC Ten O’Clock News wanted case study that related to an engineering story that they were putting together.  News producers asked Technology correspondent Rory Cellan-Jones if he could help.  Rory obliged by putting a call for help on his Twitter feed.  Within minutes his request was met by numerous offers of help, one that was local to London was used.  It was that easy and by the look of it not a PR in sight!

As PRs we have to remember that thanks to social media journalists have better access to the opinions and comments from consumers and stakeholders.  Social media is not just a platform for technology story, but a platform through which people can have conversations about any given subject.

The one thing that is certain is that social media is here to stay. It is even influencing journalism training and editorial control as the industry evaluates how to meet the changing dynamics of how and from where people get their news.  Griffith University in Australia has even made Twitter part of the mandatory course load for journalism students.

And it is affecting how we PRs do our job.  It isn’t just an add-on for monologue campaigns that we have been so used to developing.  It is a platform through which our clients can better engage with current and potential consumers.

Social media is open, it is transparent.  The conversations that our customers have can be seen not just by us, but by journalists that judge and hold us to account, and that does not have to be an issue.

about me

Hello. I'm Julio Romo, a London-based PR, communications and social media consultant. I am also a freelance journalist and advise clients across a range of sectors how to get their message across through traditional and digital media channels. 

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