How do retail brands tap into the power of the network?

As online shopping becomes an increasingly social experience, retailers are connecting with consumers in new ways via social media, but they need to be careful about how they seize this opportunity, says Luke Griffiths (pictured).

Consumers today lead increasingly blurred lives, moving seamlessly through complex purchase journeys, seeking information and inspiration from multiple sources and through a multitude of channels.

And within this 24-hour, hyper connected and consumer-driven environment, social media – in all its guises – has emerged as one of the most trusted channels for shoppers. But before jumping in, we should remind ourselves that because we live in a world where people are three times more likely to share bad news than good, it’s crucial that brands look before they leap into social campaigns. In fact, I’m sure that #badPR or #dumbcampaign are two of the most shared hashtags in the world.

So, how should brands be harnessing the power of social media to turn it into a key differentiator and, ultimately, competitive advantage?

I see three guiding principles at play. They’re not hard and fast rules but I think all brands should ask themselves the questions at the outset. The answers will be revealing.

1. Can we tap into the network and will it feel authentic?
2. Will we listen and respond to what we hear?
3. What can we see, how can we act?

Tapping into the network

Shopping is an inherently social pastime and the rise of social media has enabled brands to incorporate this into their online presence – take Nissan’s new partnership with Instagram, for example.

Engaging consumers with social media must focus on ‘pull’ rather than ‘push’ and the brands with the most successful social engagement campaigns are those that tap into the power of the network or community and let their brand enthusiasts become their ambassadors. This means devising relationships that feel ‘right’. In the UK, health brand Bupa sponsoring the Great North Run, for example, feels authentic because there are areas of shared interest.

Rewarding loyalty also feels authentic. Brands can target some of their most loyal customers with special offers that they can then go on to share with their peers via their social networks. This enables brands to tap into social as it was first intended – to share, recommend and advocate while benefiting from this endorsement.

In fact, by passing the baton over to consumers, brands record an average 55% increase in organic reach and 25% in viral reach, along with increased order values according to eBay Enterprise customer analysis.

Listening to consumer voices

The immediate nature of social media means that the customer experience matters more than ever before. In fact, as any retailer will tell you, it’s often the first place customers go to voice their dissatisfaction.

But it’s not only a place to vent frustration. It’s also a place to demand action. Recent research from NM Incite, a joint venture between Nielsen and McKinsey, shows that 71% of Facebook users expect a customer service response from a brand within a day, while 50% of Twitter users expect a response within two hours.

These individual complaints carry even greater weight than in the past, so in order to maintain (or re-establish, as the case may be) a positive relationship with customers, brands need to respond quickly and efficiently. More than a simple ‘we are sorry’, this requires effective action based on the visibility of all previous customer touch points and interactions across all channels.

This doesn’t mean conversations with customers should be limited to damage control – far from it – brands should think of social media as an evolving, real-time, unprompted focus group. Listening to what consumers are saying across the digital ecosystem and creating a cycle of communication allows brands to deepen their relationship with consumers, creating a feedback loop that builds influence and encourages loyalty.

But in doing this we can’t forget that people, not products, drive social networks. So while brands can use social campaigns to influence experiences and drive social commerce, they should always let users take the lead.

Harnessing observed insights

Beyond encouraging brand advocacy, the power of social media lies in its ability to offer sophisticated targeting capabilities around customised messaging, based on unrivalled insights into consumer interests.

This offers powerful tools to the digital marketer – tools that can drive increased campaign effectiveness, minimising wastage, driving sales and increasing ROI.

Consider a 30-year-old consumer that has both an interest in cars and who has recently been using the word ‘baby’ in posts – a gift to an automotive brand. Being able to recognise these cues, they can promote a family car, tailoring their messaging to focus on safety and economy features.

Not only that, but smart analytics can help unlock real-time insights allowing the car manufacturer to track content and prioritise top-performing campaigns, reshape creatives and allocate budget accordingly.

Online social behaviour is affecting how millions of consumers engage with brands today – a trend that is set to continue. Those who ignore it risk losing out as others learn how to ‘connect the dots’ and drive even greater value from campaigns.

Luke Griffiths is head of Marketing Solutions, EMEA at global commerce technologies and marketing solutions provider eBay Enterprise.