A Reflection on Social Media & Customer Insights

The more time that I spend at a Starbucks store, I realize that the reason behind its success is the overall experience it creates, rather than just the coffee. After all, there are thousands of coffee stores that compete with Starbucks, but there is a reason that people view the stores as a place to study, work, listen to music, meet up with friends. Oh…and have I mentioned…drink really delicious coffee? As the chapter we read discussed, “in the groundswell, relationships are everything. The way people

connect with each other-the community that is created-determines how the power shifts.”

I think the struggle for many companies when it comes to social media is translating an experience that the brand traditionally creates for its customers in the store into the “online realm.” Any company can create a Twitter or Facebook page at no cost, but it is only successful companies that are able to leverage social media to meet a greater goal, such as launch an advertising campaign or spark positive discussions about the company.

Starbucks’ strength lies in gaining insights from its customers. More specifically, the “My Starbucks Idea” page (http://mystarbucksidea.force.com/ideaHome) not only allows customers to provide ideas and feedback about the products, but also shows how these ideas seriously taken into account and executed in real life in some cases. This page is meant to create an “experience” for the visitor, because it allows viewers to take on any role (creator, critics or spectators) and become as involved as they are comfortable with.  For instance, a visitor can take on the role of a “critic” by posting idea or a suggestion that they have, or answering  the “question of the day.” The question of the day is survey question that is meant to be playful and bring real life characteristics to Starbucks products. Meanwhile, a “spectator” can just browse the website and enjoy some of the banter and ideas that people have for Starbucks, and learn more about the company’s environmentally friendly corporate culture. The “My Starbucks Idea” page is meant to spark lively discussion about the brand and its products, and gives the customer a meaningful experience in the online sphere as well.

Another company that is effectively utilizing different social media outlet to form relationships with its customers is Southwest Airlines, Southwest Airlines (http://twitter.com/southwestair), which makes an effort to connect with its customers, rather than just forcefeeding marketing information down its follower’s throats. For instance, on April Fools, the company posted a funny video of an April Fools prank. More importantly, SW Airlines realizes the power of word of mouth impacting business. Customers that post negative criticism or complaints about Southwest are addressed head-on on the Southwest Twitter. Southwest will offer an apology to the customer personally, and make a suggestion on how to fix the problem for them. For example, to a frustrated customer who lost their luggage, Southwest offered the appropriate number to call to obtain the missing luggage and an apology. The best thing about the Southwest Twitter is that starting from the color scheme to the content, it is inline with the company’s light and playful unconventional corporate culture.

One opportunity that Southwest can explore using their Twitter is highlighting their promotions and other great deals that they offer. For example, on the Pinkberry Twitter, deals are featured for free frozen yogurt from time to time, as well as other coupons. Southwest could gain more followers by offering “drink” coupons for in-flight beverages, or by allowing passengers to double-count their frequent flier miles on certain days. Not only would the number of follower increases, but the current followers would become more loyal to the brand. Another unexplored opportunity might be their Facebook page, on which Southwest is not as diligent about responding to customer’s complaints. Also, because people are generally on Facebook for friendships and more “personal” reasons, this is a chance for Southwest to form more meaningful relationships by their customers. For instance, they can encourage passengers to share funny stories about in-flight experiences, post pictures from their vacations, or even discuss how Southwest helped them to reach their destination safely and quickly as possible.

Walmart...friend or foe?

When I think of Walmart, I think of grocery shopping trips with my mom and sister when I was younger. Specifically, I remember back to school shopping, and being able to find everything we needed at low prices, at a time in our lives during which we were experiencing financial constraints. If my sister and I "behaved," my mom would take us to the toy aisle in the end and we could each pick out a barbie of our choice at the end. As you can see, I have been a loyal Walmart customer for years. I know the aisles are a bit messy sometimes and that the staff is sometimes not as knowledgeable as it should be. But for me, price and convenience are the two most important factors in grocery shopping. And let's face it...Walmart cannot be beat by any of its competitors on both of those advantages. I like being able to go one store and find all of the items I need, quickly and conveniently. Health and fitness is also becoming more important of a priority in my life, and I have noticed that Walmart's shelves have been full of organic items recently. They have the brands I want, and the wide selection of items allows me to experience new products at an affordable price.

- Given the enormous amount of data that Walmart captures, do you think they have been successful at converting into an experience that serves as a competitive advantage for them?

The article demonstrates that Walmart has been able to increase its bottom line through the data it captures. IHowever, it is more important to analyze the information to make sound business decisions, rather than simply capturing data for the sake of doing so. No matter the amount of data that Walmart collects, it is meaningless if it does not increase profits. The example of hurricane season in Florida demonstrates this phenomenon. By knowing what purchases customers made prior to the last hurricane, Walmart was able to better serve its customer's needs. Because, from my own experience, customer service may not be Walmart's greatest strength, inventory takes on greater importance. Having the correct items in stock is important in ensuring Walmart's success, and having all the items at low prices is Walmart's claim to fame. While I know that I could go to Target instead of Walmart, I think that the prices at Target are higher, and that their selection is less comprehensive than Walmart.

  

- What do you think about the privacy issues associated with all of that data and the amount of personally identifiable data they are able to capture. Does it bother you? Do you trust them with it?

To me, there is not much of a privacy issue when it comes to Walmart's data collection. I shop online frequently and supply websites with my credit card number, and as we discussed in class, cookies already have the

ability to track my the websites I frequent for marketing purposes. I view the privacy concerns with Walmart in a similar light. Though Walmart has the ability to "squeeze data from credit cards," they have no reason to do so. Knowing about my driving record or creditworthiness is of no value to Walmart.

Instead, I actually like the fact that Walmart can capture information about its customers, because then the stores will be better stocked with items that I need at better prices. The more data that Walmart can collect

about me, the more that they are making an effort to learn about me as individual. Besides, the article states multiple times that Walmart "hoards its information excessively." Hence, I do not need to worry about Walmart

releasing my information to third parties. The information helps to shape the Walmart brand, and it would not be in the retailer's interest to distribute the information in any way.

- What impact do you think they are having on their suppliers - making them better and more efficient or driving them too hard and reducing their profitability. Again, try to keep this in the context of technology

I think Walmart is making their suppliers more profitable by exerting pressure for them to meet their sales targets. In Brand Management last year, I learned that aisle space in a retail store with brand recognition such as Walmart, Target, or HEB is an extremely valuable commodity that should not be taken for granted. It is useless for Walmart to keep brands in the store that do not sell well, because there are always other "hot" items that can be increasing the store's profitability. I think Retail-Link is an especially useful tool, so that its suppliers can examine product sales and determine the impact of offering promotions and deals to its customers. Meeting and exceeding goals is what helps to promote growth and encourage creativity, and feeling some amount of pressure from Walmart is only going to better the supplier's product and marketing strategy.

Possible Paper Idea

“You’re fired!”

“Make it work!”

“McDreamy and McSteamy”

These are quotes and characters, all from various hit TV shows, such as Donald Trump’s The Apprentice, Project Runway, Jersey Shore, Grey’s Anatomy etc. What they have in common is being able to connect with viewers beyond just the hour-long episode and become integrated into viewers’ lifestyle. For example, there is a reason that people have “Glee” and “American Idol” watching parties with their friends and families every week, and that teenagers have started using the slang from TV shows like Jersey Shore and Keeping up with the Kardashians. For unidentifiable and intangible reasons, certain shows have the ability to transcend the boundary of the television screen, and really captivate viewers.

For my research study, I am interested in forming a case study about the TV show “Project Runway,” and exploring some of the issues it is having since being moved from Bravo to Lifetime. While Lifetime has promised to keep the show exactly the same, ratings have decreased and the once extremely popular TV show has lost the high viewing rate and praise that it once enjoyed. Some of the things that I am interested are: What factors have caused the show to go downhill?  Further, are there internal issues that can explain the general negative criticism (and even worse, apathy) regarding the show recently? Lastly, I want to learn what the show’s “it factors” were that made it such a success in the first place? How does television create a positive viewing experience?

For television, there are complicated issues when it comes to creating the most valuable customer experience, in the sense of keeping the viewer tuning in week after week. While they must constantly evolve to stay “exciting” in viewer’s minds, they also must not lose sight of the core “it factor” that made people like it in the first place. Basically, TV shows face the task of balancing new and old concepts at the same time to keep them addictive and interesting. Without making changes, TV shows face the threat of being labeled as fads, and their advertising dollars and high ratings are transient. While almost everyone remembers watching “Who Wants to be a Millionaire?” on ABC for a short period of time, people quickly became bored and moved on to other programs.

The reason that I chose Project Runway is because I want to learn about how television creates an “experience” for the viewer. While I could explore consumer goods or services, I think that the entertainment industry is different all together, as there is no traditional “consumer” and there is a distinct viewing experience. The entertainment industry is one of most competitive, and I would like to gain an understanding of what it takes to succeed in such a cut-throat environment. Combined with my interest in fashion, I feel as if Project Runway is a logical choice to center my case study around. After doing a bit of research online and reading entertainment blogs, the show definitely seems to have central issues focused around the fact of the “merry go round” of judges every week. The show lacks stability without its "dream team" of judges: Michael Kors and Nina Garcia. To add to the problem, the show is being filmed in LA instead of New York after being moved to Lifetime. The vibrant New York location was extremely important to the show’s success, and any regular Project Runway viewer & fashionista can tell you that LA is not quite of the same caliber as New York fashion wise. Some of the research that I have done is below:

Articles

http://notesoffthecuff.blogspot.com/2009/09/where-or-where-is-michael-kors-project.html

http://www.npr.org/blogs/monkeysee/2009/10/korsfree_project_runway_needs.html

http://www.nbclosangeles.com/around-town/fashion/Project-Runways-Truancy-Problem-64756272.html

Customer Service Experience

During the first couple of weeks as a freshman at SMU, the school would host fairs for the wide-eyed, timid freshman to find their place on campus and feel more comfortable in their new “home away from home.” The fairs essentially consisted of tables set up in a huge space that displayed posters with different club names and organizations written on them in sharpie and glitter pens. Wandering around one of these fairs, lost and confused, my friend and I stumbled upon a club that finally drew us in: Retail Club. Our first event as members of this club was the opportunity to attend a fashion show at Saks, held exclusively for SMU students, which displayed the latest winter trends. After the show, the guests were given $50 Saks gift cards to shop for merchandise that had not yet been seen by other customers.

For Saks, the connection was inevitable. The combination of over- privileged rich girls in a status-driven campus with the high-end Dallas shopping district is like peanut butter and jelly. Too good to pass up. Early on, Saks associates want to establish relationships with SMU students, turning them into regular customers. While I was always interested in clothes, up to that point, I was from a middle class family in Austin, Texas and thought high fashion was Dillards. The high-end retail experience was something totally unfamiliar to me. I think this is why the fashion show at Saks was such a meaningful customer experience for me.

SENSE:  The visual presentation of the event was one of its most compelling aspects, especially as a first-time attendee. The entire set-up screamed exclusivity. There was a small “runway,” surrounded by about 25 chairs on each side for the customers to sit. There were delicious refreshments available, as well as a waitstaff that offered wine, tea and coffee. Loud, booming music played in the background, and I remember thinking that this is what it would feel like to be rich. It was as if Saks had already thought of everything a customer would want, and if they hadn’t, they were willing to get it to make us comfortable. And the clothes! Never have I seen such composed women in structured, fashionable outfits. As each model strutted down the runway, I was even more impressed with each outfit, as well the small touches, like smoky eye makeup and floral-scented perfume.

FEEL: Saks as a brand has a huge objective to make the consumer’s life easier. The reason that people pay a premium to buy designer clothing is to feel a certain way in the clothes, whether it is more affluent, more beautiful, thinner, etc. In certain social circles in Dallas, it is important to look a certain way, and this is the exact consumer that Saks appeals to the most. More than just the outfit, they are selling a lifestyle, and the positive recognition from others is what keeps the consumer coming back for more

ACT: The purpose of act marketing is to influence customers’ lifestyles. Saks aims to have its clothing and access become a part of consumers’ lives. During the fashion show, associates would explain how to put outfits together, and explained how to put together outfits for different occasions. For example, to cater to the SMU student population, certain outfits were for “going out on the town,” while others were for a “casual lunch date.” Still, others were versatile and could be dressed up or dressed down, depending on your preference. Saks wants the consumer to purchase clothing pieces that become woven into their daily lives.

RELATE: The sales associates are the greatest “expro” when it comes to Saks ability to form a long-lasting relationship with a consumer, because the associates are the backbone of the business. For example, when trying on clothes, the associates would bring us other outfits that we may like based on what we had already chosen to try on. Additionally, they would actually provide truthful opinions as to what looked best and how to wear certain pieces. Each one of us was sent a “thank you” note after the event, and to my surprise, the associates even remembered what we had purchased! The associates combine all of the elements in sense to create an overall satisfying and uplifting experience for every consumer.

Overall, my first fashion show at Saks is something I will always remember as my first taste into high-end retail. I used the gift card to buy my first designer dress. Since then, I have been hooked!

                                                                       

           

                        

Persona: Young, educated women about to enter the "real world"

Basic Information:

• Median Age: 22
• Median Income: Poor (we are students...)
• no children
• completed rigorous undergraduate programs and working on graduate programs

1. What do you think and feel?

The biggest priority is getting through the next exam, while balancing extracurricular activities, the occasional happy hour, and recruiting for jobs. The most important priority is to find our niche in the professional world, and build a foundation from which we can "market" ourselves. We want to be able to have it all: a strong resume, an "A" on every exam, while still soaking in the college experience to its fullest and not missing a thing. The biggest preoccupation is how to fit everything we need to do in one day without permanently moving into the library! We aspire to stand out in the working world compared to our peers, and have our ideas be respected and heard

2. What do you see?

We see a world that is dramatically different from that of our parents' time because of all the choices available to us. Just walking through campus we are offered trials on about ten new consumer products and services that our bound to "change our lives." Our environment could be described as fast-paced, and constantly evolving. We are one of the most vulnerable groups when it comes to marketing, because we are interested in trying new things, and for the most part, our "tastes" are malleable and not exactly set in stone at such a young age. Brand names don't mean as much to us as they do to our parents. Word of mouth is extremely important, because we are influenced by our friends, the Youtube videos, and the latest Twitter update.

3. What do you say and do?

Many times younger people can come off as apathetic, and as if they are trying to tune out politics, current events, and the "real world." Most of the time, we are still trying to discover and find the causes that actually have meaning in our lives. When we find something that moves us, we actually become passionate and deeply committed to it. At this uncertain time in our lives, we are still trying to figure ourselves out. Appearance is dictated by the latest trends. One week, every student on campus will be wearing Nike shorts, and the next week it's jeggings. Towards others, we are respectful, but I think many times we can be quick to make assumptions and judge, as we are still maturing into the adults we want to be.

4. What do you hear?

 Friends are the center of our world at this point in our lives. Social networking has made it possible for us to keep in touch with friends and family that live on different continents. We live through our friends' experiences, learning from their mistakes and enjoying their successes too. We are influenced by young leaders with revolutionary ideas that have the ability to make themselves heard. With the amount of information available to us, a message that is actually absorbed must be unique.

5. What are your pain points?

One of our biggest fears is realizing that we might not be able to do everything we would like to do, and facing the fact that we need to prioritize. It might not be possible to be president of every club on campus and still carry a 4.0 GPA, and holding ourselves to our high expectations can be difficult. That is why finding convenient products that can cut down time and effort on our part is especially valuable to us. On a different note, many of us are frustrated by the economic conditions that face us, and are fearful because there are not many professional jobs on the horizon. We are fearful of not loving the job that we will have, and being miserable day after day in a cubicle, while not being intellectually stimulated. I think many of us are also fearful of the apathy regarding the environment, which is why younger people are much more likely to "go green."

6. What do you hope to gain?

Through the collegiate experience, we want knowledge that will adequately prepare us for the real world. Success is determined by how well we are doing compared to our peers, as well as if we are meeting the goals that we have set up for ourselves. We are overly ambitious, sometimes the biggest obstacle to our success can be ourselves, because we can be frustrated when we fail from time to time and want to stop trying. That's why having an end goal in mind is so important, because the dream is what keeps us awake at 3 am studying for an exam that is the next morning.