In a recent blog post on Twisted Image’s Six Pixels of Separation, “When Customers Attack, They’re Not Doing It Online”, Mitch Joel looks at a recent Harris Interactive study that shows us that 7% of consumers who encountered some sort of difficulty while they were trying to conduct an online transaction then turned to a blog or a social network to vent. Now, I couldn’t find the study on the Harris site, but I’ll take Mitch’s word for it and assume it deals strictly with online transactions.

Then Mitch goes on to say

Admit it, you thought it would be higher.

No. I won’t admit to that. I’d have thought it would be lower.

He then states

All in all, it’s still a little surprising how low these numbers seem.

No, it’s not surprising to me.

Sometimes I think we forget that most people out there aren’t necessarily all that familiar with blogs. Or online forums. Sure, they may read a blog or two now and then. And they may turn to a product review site when applicable. But that doesn’t mean that they play a proactive roll in contributing to these platforms. Just as we so often see only a few people get involved in all sorts of membership organizations and groups, we will also see what I would assume to be a smaller percentage of contributing complainers. For most, it is not a priority. It’s not part of someone’s nature or usual routine.

First of all, someone has to know of a blog (or have one) from which they can either post an entry or write a comment. Or they have to make some sort of comment on a their profile page, be it on Facebook or MySpace or wherever. These take thought processes that go beyond quickly blowing off steam. It involves formulating an articulate series of thoughts, written in a coherent manner. It often takes a considerable amount of time. It can be a bother. It’s often not worth the effort. It’s much easier to vent to a friend, a coworker, a relative.

That’s why, according to the study, three-quarters of the people complained in person, and half complained to someone they know via the phone. Face to face and over the phone are quick easy established means of communication.

Why am I bringing this up? Because that 7% is actually high. Seven out of one hundred dissatisfied customers (or potential customers) are unhappy enough to take assertive action to coneptualize their thoughts and intentionally let others know. And not in a heat of the moment aspect. This could be somewhat alarming.

That’s because many organizations still don’t have their acts together online. User interface is a mess. Catalogs make no sense. Online forms that they must fill out can be burdensome. An online store may not remember who someone is. Sometimes it may not be the company’s fault. A credit card may not go through because of a technical glitch on the credit company’s end. And not everyone is really ecommerce savvy.

So, yes, it’s alarming. That’s because if a company processes 600,000 transactions a month and 2% of them create problems for their customers (not all of the problems necessarily sabotage the transaction), that means you’ve got 12,000 problems. Of that 7% complain in a blog or on a network. That’s 840 people. Per month. Getting my calculator out…that’s 10,800 online complaints per year. Yikes. That’s a lot.

Now Mitch does go on to say that

Putting it in writing and online gives the complaint a permanent digital legacy (one that has an ongoing conversation around it)…So, while the percentage may be significantly lower than telling someone in person, the effects of the online complaint probably have a much more dire long-term and overall negative brand effect.

That’s the key point. He’s spot on. The fact that 7% of unsatisfied customers are making that extra effort - which as we see could end up meaning thousands of people - can pose untold problems for today’s companies. Those proactive seven percenters are could easily be an alarming amount in both real numbers and in influence.

With all the discussion on what social media is, what it’s future will be like, who will control it, I often feel we fail to see the forest for the trees.

I see it as too diverse of a phenomenon to pin down with one easy definition. Its applications go far beyond the neat capsules that can be used to pick a particular department or function that should “own” it. Social media is creating, empowering, and accompanying a paradigm shift in the way we use all media.

Are we fully there yet? Of course not. These are only the early stages, part of an evolutionary process that often comes step by step. But those steps are happening and happening and soon we’ll look back and be amazed how far we’ve traveled. Then before we know it again, we’ll be stepping again and look back again and we’ll be amazed how much we’ve come from that first time we looked back.

Yes, organizations are going to have to harness social media in ways that they can benefit from, to reach ROI. This means trying to create some sort of structure for it without “siloizing” it. Very difficult indeed.

I’ve tried to lay out what I see social media as. Not from a specific definitional standpoint, but from a several miles up point of view.

Interested in your feedback… Read more…

This morning, Norman Birnbach wrote an article wherein he suggests that I emphasize giving swag:

One of his tips is to “Give swag” — a point that Chris Abraham emphasized in a recent interview. The reason is that blogging is often a second career and there are few perks so swag can make a difference to get bloggers to respond.

He is not wrong, but I think I need to clarify my definition of “gift-giving.” I don’t emphasize giving away swag, necessarily — what I do emphasize is gifting — and giving ’til it hurts, “What a gift needs to be is super-valuable to the recipient — the value of a gift is based on perception.”

Read more…

Andy Sernovitz’s blog’s name says it all, and definitely reflects my response to reading this: Damn, I Wish I’d Thought of That!, especially in his post Instant Word of Mouth for Restaurants. From our experience doing blogger outreach and blogger gift-giving, this is on-the-money advice you should all consider (Via Chris Abraham — Because the Medium is the Message):

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I disagree.

I don’t see this trend happening this soon. Most local businesses have yet to become web conscientious. They may or may not have a web site. They haven’t even begun to think of a ‘web strategy’.

If they did, I’d be a millionaire. If you’re reading this, so would you.

To be sure, more and more people are using search - the key driver behind the idea that local business will be interacting - for local purposes. But many of the smaller local business types - real estate agents, mechanics, restaurant owners, etc. may or may not have web sites and barely tend to them. They probably haven’t heard of Yelp or many other online review sites.

They way this will change will be with those pioneers - many of whom have taken a larger online plunge - an established a serious online presence. They’ll start succeeding (many already have) and their competitors will get wind of it.

Then all hell will break loose. Time line? I predict massive growth for that 2010-2012. Until then, a steady climb.

Here’s a Mediaweek article about it.