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.

I’ve been following this attempt by Joseph Jaffe to get Delta Airlines to make amends to him after they royally screwed up his trip from Newark International to Atlanta to Sao Paulo, Brazil. They really made a mess of his journey and he’s got every right to be angry. And they haven’t met his demands for some sort of restitution, so he’s now even more ticked.

So, as a result, he’s blogged about it three times (a one, an a two, an a three), podcasted, tweeted, made not one but two videos on YouTube, and even created a Facebook group in his cause. Oddly, he hasn’t put together a 30-second spot.
He’s one pissed off social media maven. In fact, I think he’s pretty much used up all Web 2.0 tools to get the word out. To garner that grassroots support via social media. To have others join the conversation to back his cause.

And I’m willing to be that it will be all for naught. Here’s why. Read more…

I just asked a question via Twitter. And I’ll repeat it here.

Question for social media types…many complain about interference from legal dept. when it comes to social media, especially with UGC…so, are there any conferences, events, seminars, etc. that bring the two groups together to understand one another more?

Not to toot my own horn, but that’s a good question. And it’s one that needs to be answered.

Marketers are essentially in charge of defining, promoting, enhancing, and protecting the brand. Lawyers are essentially in charge of protecting the entity, the business, and, yes, the brand.

I got to thinking about this because social media strategists often, as part of their strategy, enlist, encourage, or allow a brands users to play a role in the branding. I got to thinking of a recent story involving a group of car enthusiasts putting together a picture calendar showing off their cars. They calendars were to be sold on CafePress. But there was some sort of communication screw up and it was halted I believe. Some social media strategists mistakenly blamed the car company.

But then I thought…wait…if the legal department did have reservations in this situation, is that necessarily a bad thing? Think about it….

What if one of the participants of an unsolicited consumer generated media effort has let’s say a problem. Like a police record. I mean, let’s say he’s the type of guy who could get nailed by Chris Hansen of Nightline. You know, a pedophile.

Ridiculous? If you think so, you’re missing the point. The point is that legal department and marketing departments are going to have to understand one another and work together to both reasonably promote and protect the brand through social media. Cutting edge vs. overly cautious won’t do. Lawyer potentially nixing or at least getting in the way of potentially effective programs or frustrated marketing types angrily rolling their eyes at the stupidity and interference of the legal department will only serve to stifle the brand, or, potentially worse, leave it unprotected.

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.

The culture of participatory social media is having some surprisingly significant effects on both the way satisfied customers play a role in contributing to the marketing message development of products and services. And it is also playing an increasingly important role in defining the key touchpoints that customers use in the deciding factors one what to purchase. What makes this all the more noteworthy is that much of this is rooted in offline purchases. I’m putting this together from two recent studies…

Read more…