DO RANTS ONLINE AFFECT A BRAND?
As people increasingly rely on user experience online more than ads to buy a product, do the negatives in social media marketing – like customers ranting about a product on the web – affect the brand? Priyanka Mehra finds out what brand managers say The digital domain has given a whole new meaning to the phrase ‘Consumer is King’. Gone are the times when a dissatisfied consumer who mustered up courage to call and complain was directed to the dealer, where he would get a token number and wait for hours to get his problem resolved if it was indeed his lucky day. Today’s consumer gets instant justice, courtesy the advantage of venting displeasure online. If a consumer is upset with a car dealer, one post on Twitter or Facebook expressing his bad experience is enough to draw 50 more disgruntled souls to jump on to the bandwagon and express their displeasure on the Facebook page of the brand, as Tweets and re-Tweets fly around. Naturally, the brand managers are prompt to react. Online feedback now calls for customer service with a 24-hour turnaround time, and has rendered looking at the user manual obsolete. The downside of social media marketing for brands is that the 3,000 painstakingly collected followers can reach out to three lakh more people, and in a matter of minutes, the brand which prided itself on the number of likes finds itself in a deep sea of dislikes. By the time it can gather itself and react, it is often too late and the damage has been done. This implies that the image and the reputation of the brand are no more in the gloved hands of the brand and marketing managers, but in the hands of a consumer who could be in Jabalpur or Ratlam or Imphal. The consumer demands instant response; lack of response could prove life-threatening for the brand as was seen in the case of a certain car company. Fortunately, the CEO was on Twitter and saved the day for the brand. SEEK, AND YE SHALL FIND As Payal Gaba, VP, S Mobility says, “As far as negative comments affecting the brand image is concerned, there are certain conditions. If for instance, there is a complaint against the product with valid proof and if brands are not listening or reacting, it can harm the image of the brand because social media gives a viral impact which multiplies real fast. The brand team can actually end up damaging the product’s image if it does not take a complaint seriously.” Marzin Shroff, CEO, Direct Sales and Senior VP-Marketing, Eureka Forbes Limited, agrees with Gaba’s observation. “Social media has just amplified the power of the consumer by providing a platform to voice their thoughts. Views expressed in social media are the reflection of a genuine consumer’s feelings for the brand. Negative comments, in most instances, are justified wordings of dissatisfaction experienced by consumers. These instances can be looked as rants which can ‘affect’ other consumers – or an opportunity to address the consumer’s discontent. The latter not only works towards creating a positive experience to the disgruntled consumer – but also to other consumers ‘researching’ online who are impressed to learn that the brand is listening to its customers and making an effort to resolve their problems,” Shroff says. We are all familiar with the stupendous success of Kolaveri Di, thanks to its viral launch, with over a million hits on YouTube and more than 8.2 million links shared on Facebook. Going beyond geographies, the song is one of the biggest hits not only in India but also the world over. This kind of success seems to be the aspiration of all brands using social media. But how do brands protect themselves against the negatives like mass venting, which can have huge implications on their brand image? Until recently, the brand was the hero with the consumer at its mercy. Anything regarding a negative implication or complaint was dealt with as a private conversation. But brands now have to come to terms with reality, and deal with the same issues with total transparency on a public forum. “As a brand, it is not a time for you to panic,” advises Saurav Patnaik, VP, Kenscio, “Rather look at this as an opportunity to serve a particular client better. Yes, I have made a mistake and I am apologizing for the inconvenience the customer has faced and I am ready to fix it for you. So even a negative energy had built up, the gesture from the marketer admitting that there is a problem and giving a solution proves that the brand and marketer actually care for consumers who go to Facebook or Twitter with their problems.” INTERESTING NUMBERS Sudha Natrajan, CEO, Lintas Initiative Media Kartik Sharma, Managing Partner, Maxus Global Jaideep Shergill, CEO, Hanmer MSL Communications This implies that the image and the reputation of the brand are no more in the gloved hands of the brand and marketing managers, but in the hands of a consumer who could be in Jabalpur or Ratlam or Imphal. The consumer demands instant response; lack of response could prove life-threatening for the brand as was seen in the case of a certain car company. Fortunately, the CEO was on Twitter and saved the day for the brand.
Today, if a consumer wants to know which brand to invest in – be it food or denims or gadgets or cars -- he or she only has to go to the web to receive a number of well-researched user opinions in a matter of minutes. Much is said about the importance of social media while deciding the marketing strategy for a brand. But what often goes unnoticed is that as people increasingly rely on user experience online more than advertising to buy a product. There are the negatives– like customers ranting about a brand online – that may outweigh the positives. So is the health of a brand really safe in the digital domain? Instances of social media disasters faced by global giants such as Honda, Taco Bell, Nestle and Volkswagen are well known (see box). In many instances, what caused more damage was the company’s removal of negative comments or inappropriate action.
• At least 60% of consumers researching products through multiple online sources learnt about a specific brand or retailer through social networking sites. Active social media users are more likely to read product reviews and consumer-generated ratings online, and three out of five create their own reviews of products and services.
• Women are more likely than men to tell others about products that they like (81% of females vs. 72% of males).
• About 58 % of social media users say they write product reviews to protect others from bad experiences, and nearly one in four say they share their negative experiences to “punish companies”.
• Many customers also use social media to engage with brands on a customer service level, with 42% of 18- to 34-year-olds acknowledging that they expect customer support within 12 hours of a complaint.
(Source: AC Nielsen Report ‘How Social Media Impacts Brand Marketing’)
Rants online definitely affect the brand. But this has to be looked at positively. Real time product and service feedback is a novelty for marketing managers. Most of the negative feedback stays at points of sale or service centres and never really reach the people in charge. However, online rants give an opportunity to make necessary changes at the service and product level, which in turn leads to a better offering. It also gives a window to the managers to interact with the end-user and understand real customer issues. A lot of companies in Europe and America today collaborate with social media users to come up with new products.
I would look at social media a little differently. The fact that consumers are able to share their views the way they perceive or experience it is the power of the platform & the new order in marketing. With consumer feedback becoming almost instantaneous with social media, I view it as a good development as it allows brand owners to work on areas of weakness, if any, and improve their offering. If handled well, it's a great asset in the hands of the brand owners. Of course, they will need to put in systems & processes to react immediately to consumer feedback.
In the conversation economy, social media is like a double-edged sword. Brands engage with the consumer to create positive conversations, but at the same time a slip-up from the brand ends up in criticism. It is a foregone conclusion that negativity and criticism around a brand in social media will affect the health of a brand. If not managed well, the sheer nature of social media may end up creating a crisis situation beyond control for the brand.
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