Wednesday, April 13, 2011

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.

1 comment:

  1. Rachna- well written bog. Starbucks must be doing something right- if they are able to translate their physical ambiance to the cyber world!

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