Speaking at the British Retail Consortium’s Annual Retail Lecture recently, Andy Bond, chief executive of ASDA talked in detail about how the consumer is now in a new position of unique power. In his opinion recession has been a catalyst for fundamental change in the brand and consumer relationship, and as a result customers are now shaping businesses rather than businesses shaping customers.
Brand transparency
During his speech he highlighted the importance of transparency, using Carphone Warehouse’s decision to publish customer complaints on their website as an example of brand openness.
The internet, giving the consumer a voice
While recession may be the catalyst, the internet empowers the consumer. Social networking sites Twitter, YouTube and Facebook provide consumers with a new forum to register displeasure. If unhappy with in-store service or the overall shopping experience, consumers can tell the world.
The consumer has a platform to register their disquiet and connect with others, creating communities of vocal, united consumers. This is word of mouth marketing on a mega-scale; transcending geography and time zone. Referring specifically to the internet, Bond tells his peers, “it is no good trying to hide”.
The Domino’s effect
Recently Domino’s Pizza took the full force of online consumer backlash when footage of two employees ‘preparing’ food appeared online. While the episode damaged their brand, their response – once they had finally realized that the issue wasn’t going to disappear – was generally praised. Ironically they exploited the same medium that had hurt them; YouTube (see below) and Twitter (@dpzinfo) provided a platform to quickly reach their customers and counter negative coverage. Clearly the organization understands (or quickly learned) how to use social tools; most importantly they did not hide.
In the dark
Yet evidence suggests that brand owners are in the dark. McCann Erickson’s “Social Media in Marketing Study” concluded that two thirds of communications professionals do not understand how to use social media correctly. In addition 46% claim that their organizations IT department block access to social media sites, in effect freezing themselves out of the brand-consumer conversation that is taking place.
Brand management
The internet has shaken up brand management. Retailers and brand owners need to change mindset and realize that they no longer have the same level of control. Brand managers need to be aware of the conversation surrounding their brand and be prepared to engage with their consumers.
Minimum requirement is to create a monitoring system that regularly tracks brand coverage and commentary on influential blogs and social sites. In addition brands should start communicating, whether it is through a blog or on Twitter, brands need to be “in” on the conversation. Hiding is no longer an option.
