Social + Media = Customer Engagement, the White Paper

For the past month I've chronicled my experiment to see how companies engage their customers using social media. Now, you can read the white paper summarizes the experiment and use the how-to guide to work on your own social media strategy.

 Download the white paper and how-to guide 

Has Undercover Boss jumped the shark already?

I regularly watch the CBS show, Undercover Boss, where top executives go 'undercover' in their own companies to find out what's really going on. Like many shows, there's a formula. Generally, a formulaic approach yields predictable results. If the formula yields predictable results, it better have good drama (see Law & Order). Undercover Boss has good drama, but it's more the daytime talkshow variety than the business variety. I think I'm losing interest.

Go ahead, watch the latest episode here first if you want.

Daytime talkshow drama

During the show, the undercover boss spends a day with five different employees. He inevitably discovers that several of them are facing quite a few obstacles and hardships in their personal lives. Later, the boss summons the employees to the corporate office, reveals he is the big cheese, and awards many of them fabulous cash and prizes to deal with their hardships. Just like any daytime talkshow host would.

This week, Rick Arquilla, President and COO of Roto Rooter met several employees who later received fabulous cash and prizes. One of them was Darrell, a technician who had recently returned to work after missing several months due to illness. Darrell's disability insurance claim was denied and he was now facing some financial hardships. During the 'reveal', Rick told Darrell that he had investigated the insurance claim and found out that a paperwork error had stopped Darrell's claim. Rick fixed the error and arranged for Darrell to receive all his disability payments. That's the kind of good a company can do when it cares about its employees.

But wait, there's more.

Rick also offered to buy Darrell a home gym, hire a nutritionist, and buy him food from a local health food store so he could improve his health. It was a great turn of events for Darrell, but absolutely unsustainable and meaningless for the rest of the company's thousands of employees. What about a wellness initiative that helps all employees get healthier while potentially reducing health insurance premiums over the long-term? How about working with the company's benefit's administrator to audit their process so other people don't get needlessly denied their disability claims?

Here are some of the other fabulous gifts and prizes from the show.

Candace received tuition for her special needs child to attend a private school. She's also getting $5,000 to apply towards her mortgage. Great move, but what about all the other employees with special needs children? What about all the other employees who could use $5,000 to apply towards their mortgage?

Chris is becoming a public speaker to share his struggles with addiction and help others. He has a great personal story, though I wonder how many other Roto Rooter employees have dealt with addiction issues and would like to get paid by the company to share their tale?

Henry is getting a 15 passenger van to help shuttle his son's basketball team to practices. What about all the other Roto Rooter employees who coach their kids' teams?

Dan is getting a garage so he and a few of his co-workers who are car enthusiasts can use it to work on cars. I'm at a loss for words on this one.

C'mon Rick - aren't you supposed to be a big picture guy? Well, we don't know if he is or not because we only see him lavishing Darrell and others with gifts. It's up to the show's editors to decide whether to share the rest of the story.

Social media experiment: the #1 way to engage customers

I ran a fun experiment throughout the month of March to test how well companies that I do business with can engage me through social media.  I gained a lot of insights along the way, but here’s the number 1:

If you want to engage your customers through social media, you have to communicate with them, not just at them.

There it is.  Stop reading if you want.  Profound, right?  No, not really, but sometimes we need a Blinding Flash of the Obvious to help us out. 

Below are the rest of my major discoveries from the experiment.  You may want to first read about the experiment itself, or check out an overview of the four strategies I discovered.  I’ll be releasing a ‘how to’ white paper in the next week or so that goes into even more detail.  The white paper will be announced via this blog, Twitter, or you can send me an old-fashioned email and I’ll send it to you directly.

Am I more or less engaged?

The ultimate question is whether I was more or less engaged with these companies now than when the experiment started.  Since I was already a customer, I wanted the answer to be “more” for all 12 companies in the test.  The actual results were disappointing. Here are the companies in the test along with how they did:

• More engaged.  These companies responded to me quickly and directly.
• Neutral.  Office Depot is neutral simply because I didn’t have much interaction with them.
• Less engaged.  These companies ignored me on Facebook, Twitter, or both.

5 Questions Answered

I started my experiment with three questions.  Two of my colleagues, John Curran and Grace Judson, suggested two more.  Here are the answers to all five:

#1 Engagement: Does the business proactively try to engage me as a customer when I connect with them on Facebook and Twitter?

The answer is “no” for all twelve.  I didn’t expect any “welcome to Facebook” messages or “Thanks for the follow!” Tweets, but I know some companies that do it so I thought I’d check.  This didn’t affect my engagement since I didn’t expect any proactive response.

#2 Interaction:  Does the business respond when I reach out to them via Facebook and Twitter?

The table below shows the results.  A “N/A” means I didn’t try to contact them this way. (I tried to contact companies via Facebook or Twitter only when I had a legitimate reason to do so.)

#3: Social, Media, or both?  Does the business focus on the social element, the media element, or both?

The graphic below represents my general observations of how much “social” and how much “media” the companies used.

#4 Does company size matter? (Thanks, Grace!) 

No, size did not correlate at all with my level of engagement.  Best Buy, one of the biggest companies in the group, does an amazing job of connecting with customers via social media.  Their blueprint is one that large and small companies alike should follow.

1. Monitor frequently and respond quickly.  Best Buy accomplishes this by dedicating several employees to social media.  Small business owners need to make this a priority, trust an assistant, or get out of social media. Your customers really won’t care if you are ‘too busy to respond’.  One business day is a good rule of thumb.
2. Personalize it.  Coral is a ‘Community Connector’ at Best Buy.  She responded directly to me via Facebook and Twitter, and was always friendly, enthusiastic, and helpful.  Communicating with Coral was much more enjoyable than communicating with a nameless, faceless “Best Buy”.
3. Help in public, resolve in private.  Coral and her co-workers make helpful information to customer questions available to all who are on their Facebook page or following them on Twitter.  Have a gripe?  Coral or one of her colleagues will politely request that you send them more details in private (via email or Twitter direct message) so they can help you out. 

#5 Do companies have service level agreements? (Thanks, John)

I was surprised to learn that most companies don’t make it clear what their customers should expect.  Only two companies (Studio Diner and Best Buy) provided information on why you should connect with them via Facebook.  And, just two companies (Best Buy and Ultra Star Cinemas) described why you should follow them on Twitter.

A best practice would be to clearly identify what customers should expect from you on each social media outlet you choose to use. You can see more here.

What's next?

I’m recruiting a few companies to implement some of the best practices identified in this experiment to see if they really do work with other customers.  Stay tuned for more details.  In the meantime, please post your questions, comments, and ideas. 

Social media strategies (4 of 4): Engage

This post highlights the fourth of four social media strategies I uncovered in my experiment to learn how companies use this medium to engage their customers. I highlighted the first two strategies, the Placeholder and the Sell and Tell, last week. Yesterday, I highlighted the Forum. Today's strategy is called "Engage", as in "I'm using social media to engage my customers".  The funny thing is very few companies in my experiment used this strategy. 

Engage

This strategy is characterized by high levels of social interaction and high media. The catch is your media piece has to be interesting to your customers to entice them to socialize with your company.

When to use it

This strategy isn't right for every company because it can take a lot of time and effort, but there are a few situations where it can be tremendous.

1. Your products or services require some education. The Cuvaison winery is a great example here. They post YouTube videos of their latest wine releases to their Facebook page. If you are a wine club member, you can watch the short video and then wait for your latest shipment to arrive a couple days later. Comment on how you liked it and someone from the winery will reply!
2. Your brand truly inspires passion, and your customers want to interact with your company and with each other. Unfortunately, I didn't find any good examples here, even though I consider(ed?) myself a fan of these organizations.

How to use it

I guess I'm a bit lost here! The point of the experiment was to observe from a customer's perspective rather than simply repeat what so many social media gurus have explained much better than I can. However, I can offer two tips from my observations:

1. Respond! You risk alientating customers if you don't respond to comments or participate in conversations, especially the conversations you initiate!
2. Provide meaningful media. Give us something interesting to start the conversation. The Home Depot recently posted a video to their Facebook page that explained how to start a container garden and then asked, "What's the most unusual container you've used as part of a container garden?" They got some interesting responses and I found it helpful because it's something I'm looking into.

Tune in tomorrow for the exciting conclusion. One preview - 7 of the 12 companies in my experiment hurt their image in my eyes. Tomorrow I'll reveal all and tell you why I think a lot of companies have a long way to go.

Social media strategies (3 of 4): the Forum

This post highlights the third of four social media strategies I uncovered in my experiment to learn how companies use this medium to engage their customers. I highlighted the first two strategies, the Placeholder and the Sell and Tell, last week. Today's strategy is called the "Forum". All the strategies are a function of how much 'social' and how much 'media' is used.

The Forum

This strategy is high on social, but low on media. It is generally used to engage in direct dialogue with your customers.

When to use it

The Forum is a great strategy when your customers have something to say. I've uncovered two general ways you can use it effectively. (There may be more, but I didn't see them in my own experiment.)

1. Customer service. If a customer is going to rant, make a suggestion, or sing your praises online, why not join in on the conversation? This strategy reaches beyond Facebook and Twitter to include any forum where your customers might congregate, such as Yelp or Trip Advisor. Best Buy is an amazing example of how to use this strategy effectively on both Facebook and Twitter.
2. Technical support. This strategy involves using social media as an extension of your support team. It can also encourage customers to help each other resolve technical challenges. Home Depot helped me find an answer to a product question I posted on Facebook by actually researching it and getting back to me!

How to use it

There are three basic steps to effectively using the Forum social media strategy.

1. Clearly state why your customers should participate. Encourage customers to participate and help each other. On Facebook, it's a good idea to post a few rules of engagement. Best Buy provides a wonderful example of how to do this.
2. Monitor and respond. You'll lose customers fast if you fail to check your messages and respond. Assign someone to monitor social media channels and give them the training and authority to respond quickly. Don't forget to look anywhere your customers might be ranting and raving, such as Yelp, Trip Advisor, etc. Active participation is a great way to amplify the positive comments, lessen the impact of negative comments, and spot emerging trends in your service levels.
3. Help in public, resolve anger in private. Best Buy provides a great example of when to answer directly and when to take it off line. In general, it's a good idea to respond to compliments and requests for help in public so others may benefit. If someone is using social media to vent in anger, respond to their post quickly and offer a private way for them to contact you (email, Twitter Direct message, etc.) so you can resolve their issue. This way, all the public sees is that you are responsive and caring.

As always, your comments and suggestions are appreciated!