Communications

If Consumers Are In Control, Why Is Customer Service So Bad?

Champions of social media are fond of telling anyone who will listen how much consumers are in control. With allusions to events like the Arab Spring, they warn organizations to beware: ordinary people armed with new technologies and connected across networks are upending the balance of power between companies and their customers. It is an intriguing and an increasingly popular idea, but with two notable flaws it is wrong, and it is wrong-headed. Comparisons to the Middle East are a stretch. Tweeting ones displeasure with a product or service is hardly the same as openly protesting in the face of imprisonment, torture or even death. Moreover, the extent of social medias role in the uprisings is open to debate, since the nations involved have relatively low Facebook user penetration rates, even by the regions standards. And given current affairs in Egypt, it is questionable the amount of control citizens there have truly gained. The relationship between businesses and consumers can be contentious. But it is also complex, and sometimes counterintuitive. Consider airlines. In addition to being targets of disgruntled bloggers, they also score at the bottom of this years American Customer Satisfaction Index (ACSI), what with higher fares, added charges and interminable waits on the tarmac. At the same time, however, the industry has through mergers and cutbacks on money-losing flights significantly reduced fliers options. So, despite the apparent discontent among passengers, most airlines will have their second consecutive profitable year since the start of this century. In the case of big banks, enraged consumers may actually be doing them a favor. Indeed, movements like Bank Transfer Day may help Bank of America and its brethren shed themselves of thousands of retail customers who fail to generate substantial revenues. Bank executives can, instead, focus on more lucrative patrons, many of whom are technologically locked into their accounts through direct deposits and automated bill payments, which can make moving their money elsewhere a real hassle. Then there is social media itself, ostensibly the most potent weapon in the consumer arsenal. According to the ACSI E-Business Report, social sites register barely above airlines on the customer satisfaction index. Whats more, Facebook, the 800-pound gorilla, is the lowestscoring site; not only within the social media category, but among all companies cited in the report. Nonetheless, Facebooks members number near 800 million worldwide. That is an exceedingly large aggregate of individuals; and a largely diverse one as well. Which is why vague concepts such as consumers are in control can be deceptive. In complex situations, sweeping generalities are easier to both explain and understand. This accounts for the popularity of what social scientists call representative agents: composites of persons or groups who are meant to typify segments of the population. In marketing they may be women 18-49. In economics they might be the 99%. And in politics they are the American people. But in almost every instance, these abstractions belie far more elaborate behavior. To that end, researchers at the University of Maryland and the University of Wisconsin have found that online conversations about particular products dont always square with the temperament of companies customers. This is because such dialogues are frequently the interaction of various social forces.
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There is, for example, what is known as the adjustment effect, by which the most engaged participants usually go negative so as to stand out while those who skew positive are apt to be less involved. As additional people join these forums, critics tend to push supporters even more to the sidelines. This is called the selection effect. Further complicating matters is the well-documented 90-9-1 rule, whereby consumers who are most inclined to post their opinions positive or negative comprise only a fragment of the customer population. Thus, presuming these sentiments embody the will of the people can be a costly mistake. Even when the voices of anger or approval are loud, the same research shows their impact may be short-lived. The fact is, consumers are not really in control. They never have been, nor are they ever likely to be. More importantly, most probably dont want to be. Being in control takes a great deal of time, effort and money. That is why powerful organizations maintain cadres of marketing, public relations, legal and customer service professionals. What consumers do want are products and services that address their needs and desires. And there is an emerging body of evidence to suggest that social media can play a crucial role in effectively enhancing customer communication and fostering innovation through collaboration. But the first step must be to abandon the notion of control. The very word implies an adversarial relationship. The second step requires forgoing blanket assumptions that can be quite misleading. Rather, companies have to treat every consumer encounter as a unique opportunity to promote cooperation, and do so as part of a broader, longer-term strategy.

221 Sunrise Hill Lane Norwalk, CT 06851-2145 203.847.1846 Mobile: 203.856.0803 howard@hgcommunications.com