Tuesday, February 19, 2013

Marketing and Social Media


The social media is gaining power day by day. Just like almost every company is inevitably having a website of their own, having a presence in the social media is also slowly becoming a ‘must have’ as opposed to a ‘good to have’.

Sprint introduced a program called the ‘Social Media Ninjas Program’ as Sprint saw an opportunity to marry employee advocacy with customer engagement to improve its reputation by being accessible and responsive to customers in online social networks.  Sprint had poor brand perception when compared to its competitors. In spite of the fact that Sprint had created shareholder value and dramatically improved its customer service, perception continued to lag reality. During this difficult time for the company, the rise of social communication technologies provided a new opportunity for Sprint to engage directly with customers and create better relationships with them. Please refer to this link for details on the program: http://sncr.org/node/448#.USQygqXWgwE

  The Ninjas program was introduced in the 1st quarter of 2011 and brought significant improvements that were primarily two-fold.
1) Reputation improvement: Key metrics tracked by Reputation Institute – a measure of how the customers and the public view the company – saw significant gains. Scores rose in all dimensions including a 4.5 point gain in the Product and Services category and a 13.7 point gain in Workplace.
2) Ninja engagement: In the annual employee communications survey, Sprint measures engagement with information about its products and services. The employees who participated in the Social Media Ninjas program scored these questions on average 10 percent higher than non-participants.

  Many of us might have seen the controversial video of a ‘bad delivery’ that was made by FedEx. Link to the video is attached uploaded on Dec 19, 2011.


  As can be imagined, such unfortunate incidents spread like wildfire and if not caught by the company in a timely manner, the damage that is caused could be irreparable. I am also attaching the apology that was made by FedEx Senior VP in response to the incident, uploaded on Dec 21, 2011


  In short, those days are gone when the customers resort to writing letters to customer care or calling  customer care about issues they have with the products or services. Many of them resort to public statements that are made in forums like you tube, facebook, twitter etc and if these are left unmonitored, there is a lot at stake for today’s firms. In addition to timely damage control, we can also see how Sprint used the social media to reach their customers more effectively through their Ninjas and this talks to the inexpensive but far reaching marketing potential the social media offers today, which is exploited to the full advantage by many small businesses today. So while other traditional marketing media continue to thrive today, we cannot belittle the growing importance of the social media in the marketing space!

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