Use right Marketing Mix, drive growth with NPS, manage Social Media wildfires

JWI 518 Marketing in a Global Environment, Week9 Summary, 12/10/12

(1) Social Media wildfire control

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This week's learning has changed my view on social media completely. I used to think that the value and impact of social media is overblown but now stand educated about how social media is a fundamental shift in the way business will be done going forward. Those firms that embrace this new phenomenon will see it as wind behind their backs while those that ignore it will see damage from wildfires. We learned the importance for firms of having a social media strategy along with a Chief Social Media Officer (CSMO) to continuously monitor social media, recognize positive comments posted by the community, react quickly to customer concerns and address fires before they become wild fires raging without control. 

(2) Use NPS to drive growth

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The rationale behind the effectiveness of Net promoter score (NPS) was revealing - promoters have less complaints and are more loyal; detractors complain more and, with less loyalty to the firm, are likely to defect when new opportunity arises.

(3) Optimize marketing mix for B2B & B2C

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The lecture materials  and Jack Welch video further explained the fundamental differences between B2B and B2C spaces and how to optimize the marketing mix for each. The bottom line is firms need to continually monitor where, when and how to influence those who have the power to make the purchasing decision.

I now understand why "Intel Inside" marketing campaign will work for Intel but not for IBM, though both make semiconductor products that are found everywhere. Intel is a B2C company primarily and so such a campaign matters. IBM on the other hand is focused on B2B and the campaign is rightly tuned to the few decision makers that truly decide the purchase behaviors.

this is great stuff

Dr DP

Social media platforms allow consumers to share their perspectives on brands. However, marketers may experience social media "wildfires" of inaccurate, false, or misleading information about their brand. What steps can marketers integrate to control these wildfires?

Great post by my class mate AJ:

• Make the resolution apart of the social media strategy. 
• Continue to monitor social media sites on a frequent basis. 
• Be prepared for common points of view that may arise. 
• Respond with correct information and manage conflict. 
• Don't ignore negative feedback and answer immediately.
• Show the entire social media site and your customers that you care. 
• Direct the complaining customer to an email address or phone contact.
• Find out if it is possible to remove any negative comments.

 http://mashable.com/2010/02/21/deal-with-negative-feedback/

"The first step to dealing with negative feedback is determining what type of feedback you've received," straight problems, constructive criticism, merited attack, and trolling/spam. The next step is to determine the necessary response. "The number one rule when responding to all criticism, even the negative type, is to stay positive." 

For straight problems, steps to be taken to fix it and customers should be notified of them. Even if there is not actually a problem, but a customer doesn't agree with something, you should explain why something is done the way it is. For constructive criticism, you will build loyalty and trust with consumers by responding with a positive and thankful message. For merited attacks, you should respond promptly and positively to assure the consumer that steps are being taken to correct their problem. Lastly, for trolling/spam, you should not respond and you should ignore this type of negative feedback.

My own approach to dealing with social media wild fires:

Learn from the truth to make the firm strong

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First, I will look for elements of truth in the social media "wildfire" and learn from them to make the firm stronger.  In JWI 510, Business Ethics & Communication class, we learned how to handle whistle blowers, deal with a crisis maturely and communicate a path to resolution effectively by leading from the front. The steps I learned are shown below. I would use these same steps to correct mis-steps, if any, by the firm.

Deal quickly and firmly with slander

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Second, with the help of the corporate Chief Social Media Officer (CSMO), as you had suggested, I will be on the lookout for wildfires to react quickly, round up the list of inaccurate, false or misleading statements, and have the CSMO ***quickly*** send the disgruntled individuals clarifications along with a thinly veiled warning that this kind of behavior needs to stop. If damage to the brand is imminent, I will define the problem statement and offer an explanation in the corporate website to communicate to stake holders the firm's position on the matter - in a thoughtful, researched, considered way. If the wildfire still does not stop, I will have the legal team send a "cease and desist" warning to those who are propagating them. If no choice is left, I will initiate legal action against the offending individuals to set an example for the future and preserve brand image and brand equity. Even in this scenario, the crisis management framework we learned in JWI 510 gives a list of actions that can be taken step by step  to take control rather than be defined and controlled by those outside the firm.

1. Jack Welch's Five Principles of Crisis Management
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(i) Assume the problem is much bigger than first - get out up front; don't let others define you
(ii) Assume there are no secrets - don't hide and dribble information out
(iii) Media will portray the situation in worst possible flight - it's their job
(iv) There will be blood on the floor - leaders, employees will be hurt
(v) Company will be stronger than ever - think not just of this crisis, but think around the corner of other things that could go wrong; put safeguards in place now

2. Anticipate Potential issues (Leader's job is to anticipate change; JWI 510, Lecture1)
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Anticipate & Plan for the unexpected (Jimmy Cagle, pg23)
Establish Crisis Management Team (Weiner, Rule5)
Issue Manual - critical issues; company's position on each; forecast consequences; detailed communication responses

Issue Audit - prioritize list of critical issues that make company vulnerable (Wiener, pg2)
Communication Audit - ensure communication plan is current; responsible people & contacts list; list criteria to make decisions
Communication Plan - standardized format; plan information flow; care for the team (Jimmy Cagle, pg 23)

Test the plan - simulate crisis
  
3. Define Problem Statement 

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Threat to organization's brand crediibility, reputation, finance, operations, ability to recruit talent.

Define the problem before others in media define it for you.
Go out in front of the crisis.

4. Understand nature, extent, root cause of the problem
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Assume it is bigger in magnitude than first reported (Jack Welch Crisis Communication Step 1)
Research - Find facts, check, analyze  - beware of confirmation bias; take balanced unbiased view
Focus Team on finding root cause - no blame game
How did this crisis come about ?
Assume no secrets (Jack Welch Crisis Communication Step 2) 

   - If there are multiple sides to the story, which facts to be made public ?
Open lines of communication 2-way communication channels to get feedback (Michael Epstein, pg30)
Be open to listening - Go beyond good intentions, announcements & action plans 

Develop sense of momentum & scale of the problem

5. React with an effective response & crisis communication plan
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Communicate, Communicate, Communicate - to Internal employees, Affiliate stake holders, External Audience
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Dispel fear of unknown with clear, concise, calculated communication
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Crisp messaging 

- what you know? what are you doing ? why you are doing it? what is coming next; Get everyone on board (Jack Welch video)
- In First Response, Keep perspective (Weiner, pg3)
- Acknowledge what happened; "Yes I am aware of the problem; Here is our initial assessment; We are actively working on a remedy"

- Take Swift and timely actions - give frequent hourly/daily/weekly updates as needed
- Use Multiple channels and all communication tools - create website, blogs, twitter, articles
- Repeat relentlessly
- Empathize & Take responsibility (Wiener, Rule3) - if appropriate, Acknowledge wrongdoing with legal counsel
    Explain extenuating circumstances
    Apologize & Express Remorse
    Share the bad news with the good news (Michael Epstein, pg 32)
    Express Resolve to protect those who rely on you & trust your brand
    Expect to be portrayed by media in worst possible light (Jack Welch crisis communication, principle 3)
    Make suitable/Dramatic changes in organization as needed (there will be changes- Jack Welch crisis communication principle 4)
    Maintain regular communications throughout the recovery & turn around (Michael Espstein, pg 34)

6. Make your company stronger than ever (Jack Welch crisis communication principle 5)
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    Become a better company through crisis - Prevention is best strategy; prevent recurrence
    Importantly, Think around the corner about new crisis that could come (Jack Welch video)
    Put safeguards in place to protect the company
    Take every whistleblowers complaint seriously
    Encourage a trusting and candid culture - allow employees to bring up right cases through right channels to clean up quickly