by Eric Magnuson
February 2013
The
emergence of digital media has ushered in a new era of social sharing
with
active participation from businesses and their stakeholders. This
ever-evolving
technology has brought about changes in the marketplace, leading to new
ways of
communication: peer to peer, customers to businesses, business to
business and
so on.
The pervasive digital
technology has led to a data explosion.
Just imagine some of the data
that is generated
every single minute:
- Google receives 2,000,000 search queries
- Facebook users share 684,478 pieces of content
- Twitter users send over 100,000 tweets
The
ability to adapt to this changing landscape and tie it to business
outcomes is
the new reality companies are waking up to. In an increasingly
connected world,
social media has the power to make or break a brand in a relatively
short time.
Although companies
recognize the opportunity, they are challenged in defining a clear and
effective way for an organization-wide adoption of social media best
practices.
Typically,
most companies only leverage a fraction of the possibilities; social
media
initiatives are often implemented in isolation without proper insight
onhow making
social media strategy a priority can effect an entire organization.
The social media conundrum
As
more data becomes available, there is also a gap in how effectively it
is being
used. In a recent survey by Economist Intelligence Unit, 41% of
respondents
said that customer service has the most potential to benefit from
social media
or big data. However 40% of the respondents also said that they lack
the
capability to fully leverage the data.
Companies need
to understand that, as technology continuously evolves, they will
require people
and meaningful tools that will analyze massive amounts of raw data
-spread
across various social platforms - and translate it into meaningful
information
that they can leverage.
Powered
with this information, companies will be able to sharpen their existing
services and processes to deliver enhanced customer value and
experience.
The Hospitality Industry View
In
the hospitality industry, social media strategy begins with identifying
the type
of customer. For example, a business traveler uses social media very
differently than a leisure traveler or an upscale traveler.
After
identifying your customer, social media can be used to create deep
engagement through
promotion, marketing and concierge services.
In
addition, hospitality professionals must be able to leverage multiple
channels. This
includes not only social media, but mobile and geo-spatial technologies
all of
which are converging. This is a huge opportunity for companies to gain
a competitive
advantage, but also a challenge if it is not used effectively.
For
example, some hotels have already launched an online concierge service:
- UK hotel chain Premier Inn launched a trial of a Twitter
concierge program in October 2010. On Fridays, customers can send an
inquiry to the concierge via Tweet using the hashtag #PIconcierge. The
hotel encouraged its customers to Tweet questions “on anything from
local activities for the kids, karaoke bars in the area, directions to
the local theatre or even where to find an emergency dentist.”
- Hyatt launched its
Twitter Concierge service in May 2009. “When we launched this,” says
John Wallis, the global head of marketing and brand strategy for Hyatt,
“we made a conscious decision that this channel would only provide
information and never push out promotional information.”
And
they are increasingly using it for customer service:
- “It’s enabling us to accelerate that conversation and make
those connection points in ways that weren’t before possible,” says
Andy Kauffman, the vice president of commerce at Marriott Hotels. “But
the principles behind it are all rooted in good service and, if
something happens, great service recovery.”
- This strategy has helped win back previously dissatisfied
customers. It also gives Marriott the ability to solve problems for
customers as they arise in real time.
- In addition to its Hyatt Concierge Twitter service, Hyatt
guarantees answers within 24 hours to questions that are posted on its
Gold Passport Loyalty program Facebook page.
These
conversations and reviews provide rich insight into the customer and
when
merged with other internal data such as surveys, give hospitality
professionals
a comprehensive profile of the customer.
That
is why it is essential that social media strategies are implemented
throughout
the entire organization – not as a standalone digital or social media
initiative.
Strategy Must-Haves
As hospitality professionals
begin to formulate the social media strategies for their organizations,
there are
a few ‘must-haves’ to consider to ensure a comprehensive strategy.
- Involve online audiences in idea generation and new product
development/offerings through activities such as crowd sourcing
- Identify sales opportunities (leads) through social media
platforms
- Explore new channels of
communication/engagement/collaboration such as social media platforms,
mobile apps, online communities, and key influencers
- Integrate a real-time responsive system to customers’ needs
- Leverage brand loyalty to drive advocacy
- Measure multi-channel effectiveness and ROI
EXHIBIT 1 - SOCIAL READINESS CHECKLIST
As you embark on yourstrategy definition and planning, you need to look
at the notion of Social Readiness
and answer these questions:
|
- What parts of the organization will be affected by
social media transformation?
- What are the key goals & objectives of primary
business stakeholders?
- How should the marketing mix change based on this
transformation?
- How do the fundamentals of customer service change?
- How does sales targeting change?
- How does market research change?
- How does HR take advantage of digital and social
media to target key audiences?
- How do brands ensure readiness with an innately viral
media? What precautions do brands need to take?
- How can web presence be optimized based on digital
and mobile behavior?
- What parts of the business are location sensitive and
therefore should be thought of from a mobile readiness perspective?
- What is a viable mobile strategy?
|
This
checklist can help hospitality professionals get a better sense of how
prepared
they are to launch an enterprise-wide social media strategy.
Essentially,
companies need to reorganize their processes, resources and strategies
to
deliver desired business outcomes in a far more complex and competitive
environment. And to do so, enabling the social media readiness of your
enterprise
is a pre-requisite that will lead to enhanced stakeholder engagement
and
business growth.
About the Author
Eric
Magnuson is a Vice President at Genpact (NYSE: G), and leads their
digital solutions practice He has over 20 years
experience building profitable companies at the forefront of converged
media.
He’s a specialist in the creative use of online and offline marketing
tools to
build transformative, multi-channel marketing solutions for brands
seeking deep
& relevant connections with their customers.
He has
held executive management roles on both the agency and client side of
the
industry, with a proven ability to generate high growth, improve
operational
efficiency, and profitably align a company with its market potential in
high
growth environments.
His
expertise includes digital media (optimization, user-experience,
analytics,
social media, digital advertising, video, database/email marketing,
e-commerce
& CRM), traditional media (broadcast/cable), integrated marketing
and
promotions, PR/communications, and a strong consulting and
solutions-focused
approach that addresses the needs of key stakeholders. Eric has
represented
brands such as Visa, General Motors, Toyota, Starbuck’s, General Mills,
Nike,
Cadbury and many others throughout his career.
Eric has
a BS from the Leed’s School of Business at the University of Colorado,
and is
based out of San Francisco.