Category: Trends

Get CHANGE for your dollar.

New Ecommerce site Roozt has tapped into the socially conscious consumer by creating ‘a world marketplace for cause brands.’

They allow you to browse their offering based on cause, region or products.

I’m a fan of the sign-up page which is a clever way to engage my loyalty for cause:

Brent Freeman founded Roozt about three years ago with the idea of creating an Etsy-style marketplace for social entrepreneurs, providing a distribution platform for mission-oriented brands.

In 2012, Roozt began flash deals which work similar to group buying sites, but will send money toward a cause. For example, WeWood watches plants one tree through American Forests for each purchase or Ssesko sandals give money towards women’s education in Uganda.

Rootz is also tapping into the gaming mentality. When you sign up, you earn a “change maker” badge and a $10 credit. Moving through the site & sharing will also earn you additional rewards.

One aspect I don’t agree with is advertising I’ve seen based around the site, touting  “Get 50%-80% off socially conscious deals”.  The entire line is actually contrary – socially conscious & discount should not go together.  I’m not after a discount – I’m happy to pay for a good product that supports a cause.

In today’s connected world, it now seems commonplace to be making socially conscious decisions across all facets of commerce.  As consumers become increasingly aware of the world around them, corporations need to recongnise & adjust to stay relevant in their consumers world.

There have been many sites similar to this – what are your thoughts on Roozt…will it survive and be supported?  What about your purchase habits – are you willing to sacrifice brand and possibly some additional cash for a socially conscious purchase?

Pinterest is certainly the new black at the moment and is growing rapidly amongst brands.

We recently came across one of the first Pinterest based campaigns out of Israel by Kotex.

They wanted to do something for their ‘Women’s Inspiration Day’ and identified 50 influential women on Pinterest and sent them an individualised gift based on the content of their pin boards.

From the 50 gifts that were sent out, almost 100% posted about their gift, creating 2284 interactions and 694,853 impressions.

Generosity. Wikipedia defines it as “the habit of giving freely without expecting anything in return [...]“

It is a desirable character trait in a person but you hardly come across generous brands. I think these times may be changing.   As social media and social business redefine how brands and its customers interact, we see more and more generosity from brands. Giving back to consumers and adding value to their lives is BIG in social business- in fact it is the key to a successful social business.

But what do brands gain exactly by being generous? Well, let’s have a look at this fine example of generosity (aka random act of kindness) from Denmark:

Anthon Berg, a chocolatier in Denmark recently opened a pop up store for one day only selling its chocolate. The twist: you can’t buy the chocolate with money. Customers could only get their hands on the delicious chocolate by promising a good deed to a loved one. Suggestions for good deeds were attached to all chocolate boxes and people could “buy” the chocolate by promising to serve breakfast to your loved one, don’t talk behind your friends back for a month, etc. Thousands visited the store that day and happily queued to get into this innovative pop up store.

Customers who “bought” chocolate recorded their keeping their promise on Facebook and also the recipient of the good deed was selected via Facebook. Customers later posted their loved ones fulfilling their promise on the Anthon Berg Facebook page and thanked the brand for the yummy chocolate.  This kept the buzz around the brand going for a long time after the store had shut.

So what’s in it for Anthon Berg? How does generosity pay off for a brand?  The pop up store generated a lot of buzz internationally with heaps of blogs picking up the campaign. From a PR perspective, it could not have been better. If you looked at some hard metrics such as brand awareness, brand sentiment as well as sales, I’m sure Anthon Berg saw some rather impressive results.

Trendwatching, the leading independent trend firm for consumer trends, agrees with brands’ generosity. It says that “for consumers long used to (and annoyed by) distant, inflexible and self-serving corporations, any acts of kindness by brands will be gratefully received. For brands, increasingly open communications both with and between consumers (especially online), means that it’s never been easier to surprise and delight audiences with R.A.K.: whether sending gifts, responding to publicly expressed moods or just showing that they care”.

So next time your customers needs you to be a bit generous, just do it. It can pay off big time!

P.S.: another generous brand is Red Balloon- watch the video to find out how generosity is part of the brand values:

http://www.youtube.com/watch?v=nXKMGjbjhoY&feature=youtu.be

Sources: http://www.psfk.com/2012/03/buy-chocolate-with-good-deeds.html and http://www.youtube.com/watch?v=_cNfX3tJonw&feature=youtu.be

As we approach “FRANkademy Retail and Social Business”  this Friday I thought I’d whet the appetite with some observational snippets.

Australia remains emerged in a culture of austerity, caution and uncertainty. This is reflected in part by:

• Australians have increased their savings rate, since the economic turndown in 2008/09, to 10.5% (the highest rate since 1984).
• Consumers are becoming used to price reductions and expect to purchase items on sale, increasingly fuelled by group buying sites.
• A high Australian dollar is a double edged sword for Australian retailers – cheaper for retailers procuring goods from overseas but also cheaper for Australian customers to purchase goods from international online stores.
• Australians are prioritising reducing their debt.

(source: PwC 2011 “Australian & NZ online shopping market insights”)

Some of the  issues we shall cover include:

ONLINE SHOPPING; before we all freak out about creating tundra-like conditions at shopping centres let us not forget that of the $216 billion spent annually only 11 billion comprises online, less than 5%! (source: NAB Study).

GROUP BUYING SITES’ business model is that discounts are loss leaders and loss leaders only work in the context that consumers spend—or return and spend—above the loss leader. The reality is that many retailers don’t see repeat customers from online promotions. Group buying are on the wane, likely to become smaller as they serve a particular group of attractions and specialty services.

CUSTOMER EXPECTATIONS have forged ahead as the retail category resolutely has resisted the cost of understanding and innovation. Retailers need to stop second guessing the customer and begin to listen & learn.The shift from an under resourced, under paid & under informed service offering towards a seamless integrated experience needs to happen. Last month’s CMO Survey indicated that consumers priorities have shifted from low price (-32%) to service (+56%)

TECHNOLOGY INITIATIVES do not make for an overall retail strategy meeting the needs of a community. Just because it’s technologically possible doesn’t mean people want it.

BRICKS & MORTAR RETAIL are in a position of strength and can leverage their advantage to fulfill peoples basic needs; to participate in a communal experience of sharing, hearing gossip, escaping from daily life, haggling for a bargain and to feel a sense of community. Part of this dynamic is being recognised and feeling appreciated, enter Shopkick, which introduces real-world incentives to recognise and encourage checking in.

Here’s 4 things to know about Shopkick:

1. It rewards customers for walking into selected stores & in-store behaviour
2. It generated $110 million in-store revenue for partner retailers and brands in 2011 (source: TechCrunch)
3. Conversion rates of walk-ins to sales can be measured directly by counting specific shopkick offers in the basket at retailers, by rewards for purchases through POS integrations, and conversion rates of product scans to product sales can be measured through in-app questionnaires and POS integrations. (source: Founder, Cyriac Roeding)
4. Whereas 80% of Foursquare users are male with 70% aged 19-35 the Shopkick profile is 55% female with 49% aged 25-39 and 13% aged 40+

Here’s a slightly cheesy video from their site 

We’re looking forward to a lively session and hope to see you there!

I’ve just started to read Brian Solis’ book “The End of Business as Usual.”

Lots to get through but what strikes me in the early stages are the variety of bite sized foundation-comments which underpin the necessary approach to a fruitful social business strategy.

Before I delve into some paraphrases here’s a quote which stands the test of time……guess who said it? (answer at the end of this post)

“A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him.

He is not an interruption in our work. He is the purpose of it.

He is not an outsider in our business. He is part of it.

We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.”

To me this is at the very core of the revised attitude most companies need to adopt. They may have paid lip-service to this over the last century but today and in the future this attitude has to prevail, there is nowhere to hide anymore. The challenge for more established organisations will be the sediment of a long held internal culture. It will take years for many organisations to make the necessary shift towards an open and collaborative platform BUT it’s a shift that has to happen.

By way of offering some enlightenment here are 4 paraphrases and my narratives from Brian’s book:

1. “The change in social media is happening so fast it is impossible to be an expert. We’re all just students, literally learning something new every day”

No one has the keys to the digital castle and some of us are more informed at-the- moment. At best we are navigators of the opportunities before us. Avoid know-it-all smugness, accept that no questions are stupid and be generous with sharing insights.

2. “The good thing about social media is it gives everyone a voice. The bad thing is …..it gives everyone a voice.”

This taps into the common fear that many organisations have; losing control. Too late you’ve lost control. Do not fear. A successful social business strategy (external) needs to be coupled with being a social business (internal) and that entails, in part, having policies, processes and guidelines which can manage negative reactions or controversy. Knowing yourself as a company and understanding your customers’ desires often negates disruptive feedback, minimising risk.

3. “The true character of any business is revealed in the collective experiences of its customers. It’s about what people say when you’re not around.”

As people continually connect with one another vast networks rich with interaction abound. It’s not brands with ‘clever messaging,’ attractive tool-based promotions or creative activations that control this space, its people; you and me.

4. “Businesses that aspire to a higher purpose will outperform businesses that focus on the bottom line.”

This graphic says it all. Give people a common interest, add value to their lives and give them a reason to share experiences. Another challenge for most organisations is that they are socially inept, never having the need or desire to ‘give’ rather than ‘take.’

I’ll follow up with more observations from Brian’s book as I work through it.

The fabulous quote came from Mahatma Gandhi!

A quick hello & intro from me – my name is Bec, I’m new to the FRANk team .   I’ve been told I’m not official until the first post, so here it goes…

I was driving through Chippewa, Wisconsin – population 480 – and there it was, right in front of me at the local petrol station, written with a sharpie & duct tape:  “JOIN OUR FACEBOOK PAGE!”

It’s quite endearing thinking about the motivation behind this, but the marketer in me says…why?

This is what we like to call Random Acts of Marketing & Social Media (RAM or RASM).  We don’t know why, who we’re targeting, or what the purpose is, we just know we need to be on Facebook/Twitter/FourSquare/Pinterest!   You’re inviting consumers to your party, forgetting to provide nibbles and locking them inside.  Bad host!

RAM has been around for years, and has pretty much gone un-noticed.  Without little consumer insight or ROI, it’s gone as quickly as it appeared.

With RASM, however, you’ve baited your consumers with the promise of (insert content strategy, sales pitch here).  Your brand is linked with your consumer’s social circle and they are expecting you to deliver.  When you fail to, or no longer deliver content, your brand sits stagnant.   You’ll lose your consumers trust and potentially their business.

Unfortunately for the consumer, it’s not just Mum & Pop shops that are taunting us with RASM, the big brands are doing it too.

Take this all too familiar corporate example from our friend Tom:

Big Boss Man: We need a Facebook/Twitter/FourSquare/Pinterest strategy!
Digital Chief:  Social is a long-term strategy. I’m not sure what you mean.
Big Boss Man: We need a Facebook/Twitter/FourSquare/Pinterest strategy!
Digital Chief:  I can pull money from “ x” and put in on Facebook/Twitter/FourSquare/Pinterest

Big Boss Man: Perfect – Now we have a strategy!

In comparison to the slow evolution of ad dollars to digital, at lightning speed, social media spending is about to explode.

So, like “Big Boss Man” above, some brands are quick to jump at whatever is trending without first developing their social strategy.  Like it or not, social is in it for the long haul.  Take this as your opportunity to prepare yourself for wherever the constantly evolving social landscape takes you.

Your strategy behind social should be approached as any other platform:  with business values & consumer needs at the core.

So, if you’ve realized you may be guilty of Random Acts of Social Media – you should expect your business results to be just that: random.   Not sure where to start? Give yourself a FRANk social business check.

Come across any interesting RASM lately?  Share them below…

What is Social Business? There are many definitions and there will be many more to come as the social space evolves. It is certainly not a new business concept but it is still very new to most companies. And in the absence of a definite guide to social business, many continue to struggle to understand it. And some definitions are just a bit airy fairy and open to too many interpretations.

Banksy, THE street artist from the UK, however has put it in words like no other. In his rant about advertising, he actually talks about the fundamental rules for social business. If you like, social business is the exact opposite of advertising. Some call it therefore also Unvertising:

VIA This isn't Happiness http://thisisnthappiness.com/

I have read this blurb many times and think Banksy hits the nail on the head with this article. So I’ve taken some key statements, reversed them and formed 5 fundamental rules of Social Business.

 Rule #1: Banksy writes that advertising people “butt into your life, take a cheap shot at you  and then disappear”. Reverse this approach and voilà you know what social business is about: never butt in, engage by adding value, develop long term relationships.

 Rule #2: Advertising, as Banksy puts it “bullies and laughs at you”. That is a big NO NO in social business. Social Business empowers its community and creates compelling content for the community to share. The community is respected and valued. Have a laugh together and bring some magic into a boring day.

 Rule #3: Advertisers hide behind “trademarks, intellectual property rights and copyright law” and prevent the community from speaking up. Social Business does not live according to the rule of Fight Club “You do not talk about Fight Club”. Social business wants the community to take content, share it, talk about it and even improve it. Social business thrives on the community feedback and creativity to come up with a better and stronger brand.

 Rule #4: Advertisers “re-arranged the world to put themselves in front of you”. Social business is not about that. Instead, social business fits into the community’s life without being disruptive or unsettling. It is a subtle, quiet but powerful approach that lets the community chose when and how to interact with your brand.

Rule #5: Sticking feathers up your butt does not make you a chicken (also from Fight Club). Social business does not pretend to be something it isn’t. Advertising on the other hand is pretence and makes “flippant comments [...] that imply you’re not sexy enough and that all the fun is happening somewhere else.”

There are of course other aspects of Social Business but I think Banksy did a fine job outlining the fundamentals in his rant about advertising. What do you think about Social Business? Do you have any definitions that are different to our understanding? And can you guess what movie I watched recently? (Hint: look for clues in purple font)

Yesterday I saw and appreciated this crochet wrapped around a tree in Greville Street. More enlightened people than me (thanks Steph) told me this is an example of yarn bombing.

My appreciation came from how the crochet made me re-evaluate an everyday object and reinforced a sense of an active local community in Greville Street.

Also yesterday the local council had a conniption and decided to ban all chalk street stencils plus threaten to fine shop/restaurant owners if they seek to beautify or ‘engage’ passersby. Reported

 in the Stonnington Leader  check out the comments. I think they are mildly disturbing….could they come from council  spokespeople?

That any attempt by a local community, such as Greville Street, which has built a draw-card reputation for being irreverent and eclectic should be penalised for the very reason that has attracted visitors and shoppers for years seems nonsensical.

As businesses increasingly strive to differentiate themselves and become more ‘social’ it occurs to me that local councils have a front foot responsibility to sensitively manage the very essence of neighbourhood communities. Stonnington Council might consider this.

One of the key challenges for businesses in becoming more social is that they are more often than not socially inept. This stems from never having the need to engage, add value, differentiate or just be different. As high street retail continues to be challenged so the need to give people a reason to get out and about to seek originality becomes more vital

One of the ‘neighbourhoods’ on the newly launched Chapel Street site is “Greville Village.” Part of the description says

Greville Village is returning to its heyday; truly coming alive during the golden hours of the afternoon. That’s not to say that a refreshing cider or glass of vino isn’t close at hand when the sun goes down. Though intimate in size, the area will see you effortlessly whiling away the hours. Amid a tight-knit hub of boutiques, cafes and bars is a place to wander.

“Returning to its heyday” is possibly ambitious as the Station Hotel soon closes to become more essential units and of course the lifeblood of individualism potentially attracts a fine.

Once upon a time Greville Street even had a Sunday market.

By the way the yarn bomb has yet to be fined.  Check out this guy out too. He plants pot plants in pot holes.

I wonder how the council would cope if random acts of character were to appear?

Brands don’t have it easy these days: increasing competition, globalization, fast paced social media trends, empowered and choosy consumers certainly make it hard for brands to get noticed and liked. And I mean really liked, not just getting a lame Facebook like.

A brand feels liked and popular if it gets your repeat business and sales increase. To get there, many brands feel like they have to pretend to be your friend and many social media consultants recommend this approach. But friendship does not involve money changing hands (unless you have a weird friendship) and most consumers (including me) are not very keen to call a brand my friend. That’s just sad and it is much better to have real friends but also most brands have nothing to say and don’t converse well.

Image source: http://fashionpearlsofwisdom.co.uk/

Okay, so brands and consumers are not friends but they still have some kind of a relationship. There is mutual interest in what the other party is up to. This interest is expressed in form of consumer surveys for example and in turn consumers demand more info about manufacturing processes, social responsibility, etc. The tricky bit for brands is to read the information and put the consumer back into the consumer journey.

The other tricky bit is of course that consumers don’t care about consumer surveys much. What they care about is good products at the right price. But many brands feel that it is no longer enough to offer good products at good prices. Consumers want more- but what do they want? What does a brand need to do to be liked these days?

From experience I know that the following (basic) tips increase a brand’s reputation and likeability but also personally I find that I am more loyal to a brand I genuinely like:

via Facebook.com/kulula

1. Be human- own up to your own mistakes and use empathy. Consumers know that things sometimes go wrong but they need you to make them right! Be transparent and don’t promise anything you can’t keep. 
2. Don’t talk about yourself all the time- it’s boring. Consider others for a change and get rid of your consumer surveys. If you have a question, just ask on Facebook or Twitter. The insights may surprise you! 
3. Show your swagger- add a bit of character into your brand communications and use humour. Sex may sell too but I prefer fun and witty brands. That’s because fun brands don’t take themselves too seriously and seem to understand points 1+2 very well. 

via www.crapola.com

 Crapola: This cheeky granola breakfast cereal made from you, guessed it, Cranberry, Apple and Granola has not been around for long but is quite famous already. No wonder with marketing slogans such as “Crapola is high in fiber. Just ask one of our regular customers” and “Makes Even Weird People Regular” it has won over many people. The brand really knows not to take itself too serious. And it is a great product with pure and high quality ingredients. Watch the brand’s story here and check them out on Facebook too.

 Census:  Another great example to mention here is the “boring” Census Australia collecting info from us to “plan” better. Anyway, it is something nobody looks forward to but in 2011 the people behind Census made it all worthwhile for us by entertaining us with the most random and hilarious tweets! Although they have stopped now, it was a great way to converse with Australia  over a very dry subject. Check it out here: http://twitter.com/2011Census

via Twitter

I’ve been a fan of collaborative consumption for a long time and have watched the trend catch on over the past years.
Last week I’ve come across Lucky Ant, a new and exciting website which brings the community together to help local businesses.

The service basically helps local businesses to call on the support of their consumers to make their business better. Lucky Ant posts projects in your neighborhood that require attention and funding. When you see a project you like, you can chip in to make it happen. If enough money has been collected, the project goes ahead. Otherwise, the money is refunded.

In return for your support, the business offers rewards and perks like free stuff, VIP treatment and other nice things.

Check out the video below to find out how it works and let me know what you think:

I think this is collaborative consumption at its best and has the potential to strengthen local businesses which is very important for a strong and healthy economy. Big chains and capitalism are so yesterday and the recent supermarket war between Coles and Woolworths just demonstrates how bad big chains can be.

The suppliers to big chains are vulnerable as never before, often forced to sell their produce dirt cheap or go out of business. How this builds a strong economy I really don’t know but it is common practice.

That is why I welcome Lucky Ant and other communities such as Occupy Christmas and Craft Victoria which focus on buying local products for a fair price.

Needless to say, I am eagerly waiting for Lucky Ant to be rolled out in Australia and hit some of my local shops!

Image source: http://www.guardian.co.uk/

The future of TV is bright thanks to Twitter says a recent article in the Guardian.
But how can this online still somewhat niche social media tool come to the rescue for TV you may ask. After all, TV is a mass medium, loved by all generations and watched around the globe right?

Well, event TV has been in some sort of trouble for a while actually with the rise of on demand and online TV. Why watch regular TV when you can record your fav shows and watch them when you want? This flexibility in viewing habits has two consequences:

Social media- love it or hate it?
Either way, fact is that as a brand you have to deal with the subject. Unfortunately brands often are ill-advised by “social media experts” or media/creative agencies blinded by the big $$$ and ignorant to consumer needs. The result of everybody having a finger in the social media pie is that often the consumers are left with taste- and useless social marketing campaigns.

Made by Many from the UK has some really good examples of such campaigns and calls it “Landfill Marketing”. You know, “marketing communications that no one wants, trying to flog us stuff we don’t need”.

Their Slideshare presentation called “Let’s kill landfill marketing” is brilliant and made me laugh out load and nod constantly in agreement. I could not have said it better and it really explains why brands should say NO to crap (social) media campaigns.

Think social media and people mostly immediately chirp with “Twitter! Facebook! Tumblr! … Google+..?” (faltering). But there’s a new kid on the block that’s rising up the popularity ranks – Pinterest. It’s skyrocketed into the top ten most visited social networks of 2011 and is continuing to gain traction every day.  And why? It’s a shrine to consumerism.

Pinterest is an visual platform with a simple concept – users create and name Boards with whatever they wish (Places I want to visit, Inspirational, Nice cars, etc.) and post relevant photos (or videos) as ‘Pins’ on corresponding Boards, which can all be categorised under one of the 32 general Pinterest categories (such as Geek, Hair & Beauty, Products, Technology etc.). Users can follow each other based on interests, and photos are displayed in a pin board-type feed – a little like Tumblr but it’s shared among the whole community. And a great thing is that it integrates with browsers so users can directly convert web page content into a ‘Pin’ to show on Pinterest. And of course, it can sync with Facebook and Twitter.

The hedonistic and aesthetic focus of the network (at least at the moment) makes it a great place for fashion, lifestyle and food brands to hop onto. It’s already reached an established and highly engaged female audience, and is continuing to grow the male audience.

Some types of Boards that people are making on Pinterest:

Here’s an example of a brand’s Pinterest boards:

This network could be used for introducing new products before launch and collecting feedback and comments from this engaged community, in order to build hype and improve the offering. Brands can also run photo contests and collate submissions into their own Board.

It’s too bad that Pinterest is currently only invite only, although you can request one. I’m still waiting on mine but I’m excited to see how this could be wielded by social brands.

It goes without saying that the smartphone-toting social customers today are totally different from the ones of yester-year. Social media, 3G connectivity and wi-fi have changed the speed and way that people are communicating with brands.

Agencies and brands have traditionally paid for consumer’s attention, but the new tools are facilitating a shift whereby brands can earn their own cultural capital. To harness the power of consumer social influence, we need to understand who is out there.

What are the defining characteristics of today’s social customers, and what does it mean for brands who are getting into social? Socialmediatoday has shared some key points which we elaborate on.

1. They are hyper-connected

The smartphone or other internet-enabled device is their constant companion. Whenever in doubt or in need, the first instinct is to Google it on their device. They have several channels available to them from their device such as Facebook, Twitter, Foursquare, Instagram, in addition to the regular messaging and calling services, for them to share and connect on the go.

What this means for brands: Businesses need to go where the customer goes – it’s essential to have a website, to have a social presence and to keep trying to improve your search engine rankings.

2. They readily reach out to peers and influencers

Social media give customers wide spread access to the opinions and experiences of their family and friends, people they trust. Social consumers are unafraid to ask for recommendations, opinions and help on social channels, and similarly they willingly share their own to their network. So if three of their friends tell the Social Customer they love a particular product, the customer may be a bit more inclined to buy it.

What this means for brands: Once a social consumer is impressed with your product or service, they are likely to spread good words about you. Reaching out to key influencers in social channels can generate a high return through positive word of mouth.

3. They research everything online

Whenever in the slightest doubt, consumers search the web for reviews, advice and forum discussions. they may post a question to Twitter or Facebook asking for opinions on a brand or product.The web provides a great deal of information and now that user reviews are often included, consumers can easily read and evaluate the good, bad and ugly about other customers’ experiences with a product or service.

What this means for brands: Consumers aren’t going to retail shops to find product information when they are starting a purchase decision – instead, many of them first consult your website, online reviews and discussions to shortlist their options. Brands need to provide as much information and support online as possible to help facilitate customers’ information search and convince them of service/product quality.

4. They are share what they think of you

Social customers are not afraid to share their thoughts about you, good or bad. It’s not uncommon for connected customers to use the very sites where they researched your business to also voice their thoughts about your business. They may write blogs or reviews. However, the upside of this is that a brand can quickly respond in the public arena of the Internet. Of course, praise on social and digital channels is excellent and should be trumpeted further if possible. Many brands are afraid of customers posting their complaints, but it’s better to be fully aware of what customers want and need, be able to address the issue and reassure them (along with other customers who may have similar complaints) so you can still retain them. Sharing means more feedback, but it also means a need for constant monitoring.

What this means for brands: The speed and sharing of social channels is not to be feared. These very aspects give brands the ability to be super responsive and to broadcast their customer service excellence and commitment to providing great products and services to everyone. When social is done right, it can be a great and cheap tool for keeping customers happy and engaged.

5. They control the purchasing cycle

The business no longer tells the customer when it’s time to buy, the customer tells the business when they’re ready to buy.

What this means for brands: It’s no longer about dissemination of information and shouting at the customer to buy as it was in traditional models of marketing and advertising. Customers expect brands to listen to them and to give them what they want. They are aware of their social influence and are affected by the influence of others’. With the new tools in
social, brands can keep tabs on what customers want and when exactly they want it – which can be used to develop well-advised and well-timed marketing and sales strategies.

Social has created a permanent change in the way consumers behave and hence is also permanently changing the way we do business. Social will no longer be an option if businesses want to keep up with this new breed of consumer.

For a free assessment of your brand’s social roadworthiness, click here.

Yesterday Twitter was full of sarcastic, snide digs at Qantas Airlines’ newly launched social media campaign. The airline’s Twitter competition asked users to tweet what their dream luxury inflight experience was, with the hashtag #QantasLuxury. The prize was a gift pack of Qantas pajamas and a toiletries kit.

Within an hour, the hashtag was trending across the country as Twitter users hijacked the competition to attack Qantas on various fronts, including the grounding of flights, chief executive Alan Joyce’s salary, to Qantas’ treatment of its pilots.

“#QantasLuxury – when the passengers arrive before the couriers delivering the lockout notices do”
“#QantasLuxury is knowing a $30 prize pack probably won’t buy off the Australian public”
“#QantasLuxury is a Sydney-Melbourne flight via the new hub in Shanghai.”
“#QantasLuxury is Qantas PR deploying the slides and life boats from their office to escape their Twitter disaster.”
“#QantasLuxury is being able to pay lawyers for 1000 words of T&Cs for a competition for pyjamas when your business is running an airline.”
“#QantasLuxury Being in charge of Virgin Australia PR and knowing that Qantas is doing your job for you.”
“#qantasluxury means paying millions for CEO, grounding, freebies and advertising but unable to afford a small staff pay rise.”
“#QantasLuxury When your luggage gets more frequent flyers than you do! @QantasAirways.”
“#QantasLuxury is ensuring you’re put up in a nice hotel when your plane is arbitrarily grounded.”

The backlash has even extended to a parody video:

And it’s no wonder why PR experts have called it the biggest PR fail in Australia.

Only a few weeks ago, Qantas angered customers by grounding its entire fleet and leaving 80,000 passengers stranded in airports just weeks ago. In fact, thousands of furious passengers in major cities around the world vowed to never fly with Qantas again. It’s also surprising that this could happen after Qantas recently set up a four-person dedicated social media unit to better attend to the conversations about their brand.

We really wonder whose idea was it to invite people to share their feedback on Qantas’ flight when customers are still feeling so sore about their harrowing experiences.

But there are several lessons to be learned here. A social media disaster by one brand doesn’t mean that everyone needs to now be afraid of it.

Be sensitive to your customers

A key point of social media is to listen to your customers – what are people saying about your brand? It’s doubtful that Qantas was enjoying much positive sentiment on social networks. It was incredibly poor timing for a social media campaign encouraging any sort of celebration of the brand. Qantas’ fail here clearly demonstrates what happens when a brand is blind to how customers are feeling and runs a competition seeking praise – the public will quickly turn on you.

Be aware of how social media users behave

The messages you send out are being seen by everyone and everyone has the opportunity and the right to instantly fire back their comments – and they may not care for self-censorship. In fact, the more ferocious and catty someone can be, the more attention a comment will receive. Twitter users want to gain influence and the more outrageous a tweet, the more retweets it receives. Twitter users, bloggers and news sites are all gunning for eyeballs on sensationalist stories.

You get what you put into social media

Despite hiring a team for its social media efforts, it’s clear that Qantas engaged some inexperienced community managers to head their social media efforts. Running public promotion when the brand reputation is so badly battered is already a marketing no-no. Customer sentiment does not change overnight, and improving brand reputation should involve addressing the most pressing issues first – such as actively assuring customers of service quality. Running a competition with measly prizes is another opportunity for people to jab at – we’re guessing pajamas and toothbrushes aren’t too high on angry customers’ wishlists.

As Hitler says on the #QantasLuxury Downfall parody: “With any luck someone will post a new funny cat video”, otherwise he will “ground the whole internet”. We hope Qantas will be able to recover from this with the right damage control.

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