Showing posts with label groundswell. Show all posts
Showing posts with label groundswell. Show all posts

Tuesday, May 7, 2013

How to Hear the "Silent Majority" of Customers


For CEOs and CMOs, it is essential to gain a representative sample of your customers' opinions in order to best align product, service, and business strategy with their needs. As a graduate student at Northwestern University's Medill IMC program, I have been studying segmentation and feedback techniques and found these two articles to have valuable managerial implications.

As anecdotal evidence from Yelp! or customer reviews can attest, it is usually the more extreme reactions to one’s products/services that motivate customers to comment. For better or for worse, social media amplifies the voice of those who are expressing their sincere appreciation for a product or seeking revenge for poor service with a blistering critique. The majority of customers expects satisfaction and won’t make the effort to remark on the commonplace. In fact, according to authors Charlene Li and Josh Bernoff of Groundswell, the majority of Americans can be described as “joiners” and “spectators” (see table 1 below). “Joiners” are those individuals who “visit and maintain a profile on a social networking site” while “spectators” are engaged with others’ content, (e.g. posts, podcasts, videos) but rarely contribute their own. While both “spectators” and “joiners” are active and receptive to the opinions of others, they are not demonstrably participative. The concern is that the opinions of this “silent majority” will be underrepresented while the active users with characteristically polarizing opinions will be overrepresented. This may in turn pervert the company’s marketing strategy in a direction that alienates the silent majority who are content with the current state of affairs.
Indeed, in a recent article from the Harvard Business Review, the company ForeSee charts how remarkably different the opinions of what Groundswell would label as “conversationalists” and “critics” are from the opinions of “spectators” and “joiners”. In the graph below, ForeSee draws a normal distribution curve as a point of comparison between the blue opt-in customer feedback curve and a randomly-sampled survey shown in orange. Although the Harvard Business Review is quick to admit how valuable customer feedback is as a point-of-contact, they may give companies a false impression of actual levels of satisfaction.

For customers who prefer not to provide feedback, companies have been using “cookies” as a way to better track and understand customer’s online behaviors on their personal computers. However, as a recent article from the Wall Street Journal explains, despite an increase in U.S. mobile ad spending from $1.5 billion in 2011 to $4.1 billion in 2012, companies are still having trouble pinpointing mobile users’ online activity. As a growing number of customers supplement their desktops’ online activities with mobile, the risk of overlooking the “silent majority” without these behavioral metrics increases. 

Based on my experience in Northwestern's IMC program and my interpretation of these two articles, I have made three recommendations which can be applied immediately. 

1.     Incentivize your Customers- From Groundswell, the authors recommend incentivizing your customers to comment with a built-in reputation system that rewards customers with greater status. This will encourage more active participation from those who may not otherwise feel compelled to do so and recognize the valuable contributions of loyal customers.
2.     Just Ask- To ForeSee the answer is simple, just ask! Returning to Figure 1, when ForeSee randomly surveyed their site’s visitors, they found a much wider distribution of opinions that skewed towards the positive and complimentary. Impromptu surveys gave the company a more precise impression of customers’ opinions.
3.     Collect and Aggregate Data- Although the Wall Street Journal admits that mobile tracking technology will certainly improve in the future, the current method is to triangulate users’ mobile and desktop through downloads, apps, and/or cookies. This aggregate data gives companies’ a more holistic understanding of customers’ online behavior.

By applying one or all of these tactics, CEOs and CMOs can listen to the full range of customer experiences and gain a more accurate depiction of the current satisfaction landscape. This in turn, will enhance business strategy.

- Margaret Kamraczewski, is a full-time Masters of Science candidate at Northwestern University's Integrated Marketing Communications program at Medill. Her previous experience was in market research. Her focus is on brand and advertising strategy. Follow her on Twitter @Margaret_Kam.

Tuesday, July 31, 2012

Marketing in B2B: Keep the Best of Both Worlds



The burst of social media is creating many new avenues for B2B customer engagement and analytics. Being in a class where I work with state-of-the-art monitoring and analysis tools and as an experienced marketing professional, I see how social media can enhance customer feedback collection and analysis.  I will argue, however, that while embarking on new avenues of social in B2B can prove to be worthwhile, marketers should not ignore the significance of customer feedback collected by sales force. It’s time to organize our old closets of under-collected and under-processed customer data and finally meet our customer.

Image linked from the Real Time Report 
B2B companies are social, but 75% of them do not measure it 
One of the takeaways from the 2012 International BMA Conference as seen by B2B online, is “that B2B has always been social, is social and will always be social,” according to Ralph Oliva, Executive Director of the Institute for the Study of Business Markets. “The implication is more about this new way for community to happen and how you can penetrate that community and mine for value,Ralph continues. Yet, 75% of B2B companies do not measure or quantify social media. Could these ¾ of B2B marketers be relying on their sales teams for feedback gathering? In my experience, this is where marketers can lose visibility and control, if no formalized process exists for collecting and analyzing information.


A massive lost opportunity
B2B world sits on myriads of own data which doesn’t get processed or shared internally. Good, transparent, and easy processes of sharing customer data are not widespread in the B2B world. And now we have more data that comes from social.  “This is both a huge threat and a massive lost opportunity”, concludes Richard Owen, CEO of Satmetrix. “B2B firms have the advantage here because the "crowd” is easier to manage and engage.  And that presents a great opportunity for this "after the salevalue mining”, concludes Ralph.  


Still, marketers and sales seem to have slightly different goals.These are two functions with an identical mission, so how can they be like ships passing in the night?” sales guru Neil Rackham asked during his keynote.

So what can marketers do?
Ralph Oliva believes there are three distinct areas where change is influencing B2B marketing:
  1. Use new social frontiers – ask yourselves “how do we create new value by utilizing this new space?”
  2. Use integrated marketing efficiently – Align the entire company and its assets to customers and markets, and ask a question, “Can the whole firm be focused on achieving your objectives in the market place?”
  3. Bring state of the art tools that will make the whole firm better. The question that should drive the corporate marketer is "How can I mobilize the innovative capability of the firm?”

While social media should definitely be a focus and given more attention going forward, collecting customer feedback from sales remains to be a valuable underutilized tool. As a Northwestern University IMC graduate student and an experienced marketing professional, I see sentiments collected from social media and feedback brought by sales teams complimenting each other in an effort to meet our customer.  

Tanya Tretyak is a seasoned marketing professional and a part-time graduate student in Northwestern Medill Integrated Marketing Communications program.

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