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Is the notion of the social customer a myth?

By | June 7, 2010, 6:59am PDT

Summary: If the voice of the customer is real, then why do services suck more?

Recent experiences with banks and telecommunications companies suggests to me the notion of the social customer is a myth. Everything we are told suggests companies that don’t have a social computing strategy that actively embraces people - and especially customers - are toast. Who dreams this stuff up? Let’s do a reality check:

RyanAir - one of the world’s most hated airlines. It has just bounced back into profit after one misfire. The lines at check in aren’t getting any shorter. I refuse to fly with them. Ever. They don’t care.

Vodafone - my tale of woe with this shower is not quite over. Last month the company announced it doubled profits. Vodafone has scaled heights of ineptitude even I could not imagine. So what?

HSBC - the so-called world’s bank that can’t automate the transfer of account balances. It had a rough 2009-10 but then so did many others.

Wal-Mart - you either fall into the ‘I love their pricing’ camp or you wonder at how they get away with practices that many find unacceptable. Latest profits exceeded market expectations. Whomever these people are that find Wal-Mart an aberration aren’t knocking a dent in the company. Not even a tiny ding.

Facebook - currently under intense scrutiny in tech media for playing fast and loose with our privacy. Some think the share price on Second Market is going nuts. Can anyone explain this apparent inverse relationship?

BP - the current target of outrage among the green brigade, a source of daily news and earner of 431,000 BoycottBP Facebooks fans.. You know what? Boycotting BP branded garages is futile. Despite a share price collapse, no financial analyst really believes there will be long term damage to BP. Even if there is, the rest of the oil industry will simply fill any void. After all, I bet not a single reader thinks twice about putting another company’s gas in their car.

…and on it goes. Feel free to add your favorite company to hate.

Yesterday, one of my friends got annoyed because Amplify requires a login. “You’ll hurt your reputation,” came the warning sound. OMG - I’d better close my account immediately. Guess what? I added readers.Do I believe that blowing a fuse on a blog will make one iota of difference to (insert latest telco/bank/multi-national name here?) Not a chance. Not even if 10, 100, 1,000 or 431,000 get up on their collective hind legs.

If the cacophony of sound around the social customer is for real (and I know plenty of consultants coining big bucks for spreading this stuff), who’s paying the tab for what seems to me to be latest tech craze crock? You and me.

Isn’t the truth that rather than have a socialized relationship with us, all suppliers of goods and services want to do are two things: sell more and profitably. If they need to look like a suck up to get there, then fine. They’ll do it. But puhlease, let’s not fool ourselves into believing there is such a thing as the social customer that brands want to hug and love. Or that being horrified at some lame campaign will hurt brands. Nothing could be further from the truth.

I’m looking forward to the day when a brand somewhere, anywhere has the nuts to add this to their logo: trying to suck less everyday. That I could live with. Anything else is wishful thinking.

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Dennis Howlett has been providing comment and analysis on enterprise software since 1991.

Disclosure

Dennis Howlett

Dennis Howlett is committed to maintaining the independent and opinionated stance that his writings are well known for and does not enter into contracts that would limit his freedom of expression in any way. However it is important in the interests of full disclosure to inform readers of those relationships so they can form their own judgment. This page therefore lists all Dennis Howlett’s current business relationships.

Dennis’s consulting arrangements occasionally bring him into direct or indirect business relationships with some of the companies about which he writes, and/or their competitors. Where such a relationship exists, it is disclosed at the end of any article that references the company concerned.

Dennis owns AccMan, an independently produced blog covering the professional services market, primarily focused on Europe. It is currently sponsored by selected TextLink Ads and named sponsors in the ‘Sponsored Content’ block.

He is a member of Enterprise Advocates, a loose association of consultants, and analysts who are concerned with the buyer side of the buy-sell enterprise relationship.

He is a paid contributor to IT Counts, a site dedicated to discussing technology issues as they related to ICAEW members. He also advises ICAEW on certain aspects of its member outreach programs.

He is an SAP Mentor and participates in SAP Mentor webinars. He has recently produced a guide for SAP resellers wishing to record customer videos. Other than as disclosed here, Dennis maintains no business relationship with SAP and is not financially rewarded for his role as a Mentor.

Dennis maintains relationships with a range of end user organizations and in all cases is subject to non-disclosure agreement. He has no current ‘paid for’ relationships with ITC vendors except as disclosed above although certain vendors comp travel and expenses claims. For the benefit of doubt, T&E reimbursement is a common practice among European based writers. It is often the only way we can attend important events. Even so it doesn’t impact our analysis of what vendors have to say. If you believe otherwise then feel free to ignore what is written here.

Except as mentioned above, Dennis has no other investments in any tech industry participants. This page last updated 23rd February, 2010.

Biography

Dennis Howlett

Dennis Howlett has been providing comment and analysis on enterprise software since 1991 in a variety of European trade and professional journals including CFO Magazine, The Economist and Information Week. Today, apart from being a full time blogger on innovation for professional services organisations, he is a founding member of Enterprise Irregulars and an investor in a European start-up. Prior to, Dennis was technology and tax partner in a British firm of Chartered Accountants for 10 years. Prior to that held various senior finance roles across a broad range of industries.

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RE: Is the notion of the social customer a myth?
ryan_v 10th Jun 2010
@TechFool Indeed, the way FB goes around with its privacy policies it seems its users are the commodities and the real customers are the advertisers.
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I have had some bad experiences with Wal-Mart but over all they try to be tremendously customer friendly and responsive.

I went into a local Wal-Mart (Lacey, WA) and found a display product on the shelf with no price and no boxed product, but there was a shelf sticker with a code number and product description (but no price). The next week there was still the display product, which still lacked a price, and no boxed items. I wanted to purchase the product so I took the display sticker, with the code number, to the ?service? desk and asked if they would look up the item and let me know when they would be getting more in or if the product was being discontinued.

The lady at the service desk, a supervisor, would not help. She said there was no way for her to know what was being ordered and what was being discontinued. I suspected that she was just brushing me off but I decided to wait a week and see if new product showed up on the shelf. A week or two later the product vanished from the shelf and a new similar replacement product was on the shelf.

A week later I was traveling in Colorado visiting relatives and while in a local Wal-Mart I checked to see if they had the old product. They had one on the shelf, none in boxes. This Wal-Mart happened to have, in the very isle I was in, someone checking inventory and making price labels with some kind of automated gun.

I asked the person about the product and they were surprised when I recounted the story of what happened at the Wal-Mart in Lacey. This person scanned the product, told me it was being discontinued, and told me no box probably existed for the display product, printed a barcode label for the product so I could go up and purchase the product at the checkout.

The Lacey Wal-Mart could have assisted me but they chose not to. The Colorado Wal-Mart gave great customer service.


A friend purchased some very nice stationery from Wal-Mart. She intended to use the stationery to send out some business letters. When she opened the stationery she found small black marks on most of the stationery. She wrote an email to Wal-Mart Headquarters about her dissatisfaction with her purchase. In her email to Wal-Mart she included contact information, home address, phone number, email address, etc. . . . . Within two days of sending her email to Wal-Mart she received a phone call from Wal-Mart apologizing for the trouble (Yes, a phone call).

A day later she received a call from the manufacturer of the product inquiring about the problem. (She had never informed the manufacturer of a problem, she had only contacted Wal-Mart). The manufacturer supplied her with replacement product and an abundance of free items.

A few days after that, Wal-Mart contacted her again to ensure the problem was being handled to her satisfaction.

While I know of many that have a visceral hatred of Wal-Mart, I would suspect that many of those same people have no problem supporting the new Orwellian big brother that is rising up, Apple.
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Contributr
Apple?
dahowlett 7th Jun 2010
@John238 = pfft. I'm an Apple fanboi but guess what? They have no social computing that I am aware of. Their kit fails at alarming rates. But heh - they charge enough and enough people pay them that it doesn't matter...to Apple.
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The social customer is a partial myth
happyharry_z 7th Jun 2010
As with any transaction, the level of concern of having issues with the company will be directly dependent on the cost of not using the company. It's no different then with social issues governing purchases. We'd all like to buy local and buy green, but at the end of it, we have to be cost effective.
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All companies would like to do 1:1 marketing and know that their ?1 of spend resulted in 10x return. In the future credit companies like Experian will be able to provide realtime data about us as we surf and only those people that can afford to buy from the company will see their adverts or direct offers.
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At some point, everybody will have a FB account. Then the entire population of the world will be "social customers." What will it mean? Customer service won't change, but the lip service terminology used to convince us that we aren't being screwed will have to.
@TechFool Indeed, the way FB goes around with its privacy policies it seems its users are the commodities and the real customers are the advertisers.
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RE: Is the notion of the social customer a myth?
ItsTheBottomLine 7th Jun 2010
AMEN and dead on! - Thank you
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You're Missing The Point
IronKangaroo 7th Jun 2010
You examples are of established businesses doing things, in established ways.

No one (at least that I know of) is saying that the 'social customer' will be the ONLY customer, and social customers won't take a company from "miserable to great" just because they use social media tools.

You can rant about Vodafone sucking more each day. I had no interest Vodafone yesterday, and I have no interest today. Whether or not I was a social customer has no bearing in how I ignored them yesterday and today. The Net Promoter Score for nearly every wireless company is abysmal. So Vodafones massive suckage must be taken in the context of AT&T's suckage, etc.

You are looking at the wrong side of the coin.

It is the new companies who don't have the resources of some these established companies that are thriving because of the social customer. Think Zappos.

For companies that want to move beyond their establish place in the market, engaging the social customer is one way to do so.

Proctor and Gamble has a great program for this. Surprised by that? I was.

Having a community to support these social customers is not for every company, but it can definitely be an asset to those who use it properly.
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Contributr
@IronKangaroo I think you're missing the point. These are hard fact examples. There are hundreds if not thousands more. But feel free to keep sucking that Kool-aid. I'm sure it tastes sweet. (lol)
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Spot on observation about the "social customer" I'm convinced it is nothing more than a "notion" thanks for saying what I've been thinking for a while.

I'm tired of hearing the "Pros" in my industry (Insurance) with the doom and gloom message of FB, Blog, Twitter or DIE!! Like I have time for that. Like I want to spend the money paying someone to maintain all of that?

@dahowlett
LOL @ "...add this to their logo: trying to suck less everyday..".

Business has been pretty bad for quite a while now and the other day my brother called me and asked my how it was going. My response? "I'm sucking right on schedule, thanks for asking!"
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I think you are right! Been saying this also. Of course, the response is get with it or DIE!

There are many avenues by which a customer may make their voice heard or they think it gets heard. If the company decides that it is too expensive to man that resource with the proper resources to analyze and use the findings for the good and also respond, then the resource is just useless junk. This is so, be it FB, Twitter, call in line, Web Pages, Support sites or emails . Because the customer gets no response, you have lost him.

Was it Sprint that canceled service to thousands of it's customers, because they required too much customer service? So sometimes the company would just rather lose that whining customer.

Mavens and trends are important to a company that considers them but some companies simply don't care as you stated. But to be fair the customer is not loyal either, we want everything cheap and then cry because China sends us lead in our treasured deals.
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Social customers
sboverie 7th Jun 2010
Some of the examples are also good examples of cost reduction by automating a person's job and eliminating the job. Banks have pushed the use of auto-tellers for the reduced cost and automation of transactions.

The bigger problem is that being able to provide good customer service takes practice and this is something not taught by anyone except on the job.

The Examples of Walmart customer service given by John238 shows that customer service quality varies by geographic region or by a more motivated representative.

The problem with customer service as a social experience is that we have less face to face time with people and it takes practice to have good customer skills.
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Contributr
@sboverie@... It also requires the application of common sense, decent process design and a liberal sprinkling of consistency. Something almost all large companies seem to fail at executing with astonishing regularity. My Vodafone example should become a text book study in all those issues.
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Not at all ...
no_axe_to__grind 7th Jun 2010
Dennis, let me have a go at explaining what the whole social customer concept is (read that as "should be") about - it's about establishing and maintaining connections with your existing and potential customers, and providing the best experience your customers can have. It's about responding to customers' needs. The reason? To sell more.

Your irreverance is charming, but misguided. You cite some large enterprises as having crappy customer mannerisms. But over 90% of businesses today are classified as small business, and it's these businesses that need to improve their social interactions in order to stay alive, compete and grow. To many small businesses, it's about visibility: keeping a high profile, being top-of-mind. It's about how Joe down the street responds to the business's after-sale policy, how the business treats him during the initial pre-sales process and through to the sale itself, and how the business tries to keep Joe in the loop after the sale. It's about the total customer experience.

And, more importantly, it's trying to ensure that not only does Joe tell others about our business, but further is positive in his telling. These are the things that will help us grow. We can't treat Joe the way large enterprises who have forgotten their roots treat him; we have to treat Joe right, so that he will come back and bring friends. You don't like the term, "advocate", but for my business, that's what I want: lots of advocates out there selling my products for me.

Don't think about social interactions as having a beer with your best customers, or being buddy-buddy with them. It's about understanding what your business needs to do to get them as customers.

Social conversations between a business and its customers never has been, and never will be about friendship, or the development of personal relations. I hope nobody's that naive. It's clear to all but the most dense that business wants sales. By developing a customer-centric attitude in the business, along with sales, marketing and information and collaboration tools that empower everyone to be involved in the customer process, small business can enjoin their customers in a "social" setting to develop loyalty and hence more sales. Coupling that with tools that help mine the social networks and encourage and handle customer inbound conversations (through things like live chat, web lead capture and call center management), business can do a much better job connecting and communicating with customers, and closing sales.
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"Social Customering" is no different than BP the "ecologically friendly" Oil Company - TOTAL B.S.
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Not at all ...
no_axe_to__grind 7th Jun 2010
Dennis, let me have a go at explaining what the whole social customer concept is (read that as "should be") about - it's about establishing and maintaining connections with your existing and potential customers, and providing the best experience your customers can have. It's about responding to customers' needs. The reason? To sell more.

Your irreverance is charming, but misguided. You cite some large enterprises as having crappy customer mannerisms. But over 90% of businesses today are classified as small business, and it's these businesses that need to improve their social interactions in order to stay alive, compete and grow. To many small businesses, it's about visibility: keeping a high profile, being top-of-mind. It's about how Joe down the street responds to the business's after-sale policy, how the business treats him during the initial pre-sales process and through to the sale itself, and how the business tries to keep Joe in the loop after the sale. It's about the total customer experience.

And, more importantly, it's trying to ensure that not only does Joe tell others about our business, but further is positive in his telling. These are the things that will help us grow. We can't treat Joe the way large enterprises who have forgotten their roots treat him; we have to treat Joe right, so that he will come back and bring friends. You don't like the term, "advocate", but for my business, that's what I want: lots of advocates out there selling my products for me.

Don't think about social interactions as having a beer with your best customers, or being buddy-buddy with them. It's about understanding what your business needs to do to get them as customers.

Social conversations between a business and its customers never has been, and never will be about friendship, or the development of personal relations. I hope nobody's that naive.

It's clear to all but the most dense that business wants sales.

By developing a customer-centric attitude in the business, along with sales, marketing and information and collaboration tools that empower everyone to be involved in the customer process, small business can enjoin their customers in a "social" setting to develop loyalty and hence more sales.

Coupling that with tools that help mine the social networks and encourage and handle customer inbound conversations (through things like live chat, web lead capture and call center management), business can do a much better job connecting and communicating with customers, and closing sales.
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9 paragraphs and not one original thought -
stillgolfing Updated - 7th Jun 2010
@no_axe_to__grind
Went to a full day business seminar 20 years ago where some moron was dancing on a desk top while first juggling, and then later smashing plates. Concurrently, he basically said the same thing as you. Except he was dancing on a desk top and smashing plates; so it was a lot more fun!
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I work in the field (better customer engagement including social media) but I don't want to be friends with my airline, bank, electricity company or telco. Why not? For the reasons that you say - they lack "the application of common sense, decent process design and a liberal sprinkling of consistency" so no "social business" is ever going to work and nothing is going to change, despite their "innovation department". For them it's just a PR exercise. And you're right, the lines just stay the same, the call centres stay the same, the left hand doesn't know what the right hand is doing, and the profits remain just fine.

However I believe that for lots of companies, especially many niche companies, smaller companies, B2B companies, and even the monsters like IBM and Cisco, that social business is a real opportunity for deeper customer engagement and accelerated customer development cycles.

Walter Adamson @g2m
http://xeesm.com/xeesm
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@mqqww
Wow, for a while there I thought the earth was going to spin off it's axis and crash into the sun. It's late. Where have you been?
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@rtrtwerfs
mqqww beat you this time, but your still leading 1, 999, 367 to 1, 999, 104. Keep up the good work!
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No_Axe:
As usual, you seem intent on attacking whoever disagrees with your so-called position, regardless of the facts. Yes, smaller companies seem to "get it" in reference proper use of social media to gain (and retain) customers, but some of the larger companies aren't slouches in that respect either. (Admittedly, Wal-Mart is rather abysmal, and has been, chain-wide, since Mr. Sam (Sam Walton) died. His kids would rather buy Chinese seconds than first-quality US stuff, and there we are... in a Hell of a mess thanks to his kids not giving a care for the companies they buy from.

Do you think they care about the Chinese worker who gets $0.15 an hour and is locked in his factory until quota is done? Here's a shocker: They don't. Mr. Sam, on the other hand, would have tried to intervene and/or shift business back to the States.

I've seen both good Walmarts and bad ones, just as others have, but one thing remains constant: The good workers always go to the newest store, leaving the mediocre or bad ones at the older, established ones. Is it any wonder Wal-Mart's so despised that they're banned from cities, towns and even states? Not to me it isn't.

No amount of social interaction would likely fix this issue, either. The company's hurt way too many folks for way too long for the typical consumer to trust them.

(Yes, I do business with Wal-Mart. Sometimes, I don't have a choice because they're the only store in town that still sells an item, sometimes it's because I can't get to the next-nearest store that does sell the item. Do I like it? No. Especially when I've worked there, and been reprimanded for helping customers!
You have a good point. People in the Social CRM business use a lot of language that confuses people. Social certainly sounds like after work, not during it. But after all the software and consulting, the books and the symposiums, the best idea would be for the C-level folks to all spend 4 hours a month in Customer Service taking calls.

Sorry, that's a really stupid idea. Just buy the software.

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