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Archive for March, 2010
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By: Chris Garrett Co-Author of Best Seller of ProBlogger, our celebrity blogger, Chris has helped thousands of individuals, non-profits, small businesses and blue chips make the most of the web.

I had the pleasure of many in depth conversations about social media during my short stay in Austin for the SXSW conference. Not only is Austin’s premiere music conference/festival/party a huge draw, but geeks like myself converge on the city for ‘SXSW Interactive’ like we are returning to the nerd mothership.

One of the conversations most relevant to the discussion here was why some sectors just do not get social media. Situations like Adam’s experience with his mum trying to change her car were unfortunately the norm rather than the exception.

During a house party I did a back of a napkin calculation for the reach the people in just that one small room had. It was around a million people, give or take, that combined we could jointly influence. That is first degree connections, so given a good pass-along rate the total reach could be exponentially more.

Consider how fast stories travel on the internet and how few people you need to start a viral fire. Think a million or so could start a big fire?

Companies with bad customer service are in a dangerous position now. The arrogance and lack of empathy would in the past only impact those it directly hurt, and their small circle of friends and family. People did not have much of a choice, especially if they had their heart set on a certain brand. That has changed, and while the customer service has not always improved, the options available to disgruntled customers has.

Really what we are seeing is a clash of cultures. Social media folks are used to the idea of building long term relationships based on mutual like and trust. The person is more important than the sale. Crazy, I know.

When we visit an auto dealer with a sales team who is only out for the ‘kill’, prioritising that short term goal of getting a sale at any cost, even at the expense of a long term relationship and damage to their brand, we get confused, frustrated and angry.

Why are these dealers so short-sighted? The answer is obvious. There is no incentive to act in anything but the salespersons own best interest at the expense of the customer, and by extension the organisation. What you measure you get more of.

If the person dealing with you does not care what you think, does not care who you tell, and is never going to consider the fact that you might want to return to buy something else, what are they going to do?

In the social media world we recommend companies build long-term loyalty, positive word of mouth, and to encourage referrals. We have the goal of a customer for life and as big a share of that customer as possible. We want not only happy and profitable customers, we want them to bring along friends too!

All along we have always known it is better to go by the golden rule. You know, treat others as you would like to be treated. In the race to get sales today and to heck with tomorrow a lot of companies have been burning up their own future, but the customer had little power to respond. Now the tide is shifting in the consumers favor but the dealers do not realise the change has happened already.

Personally, the wise move seems to be to start focusing on the customer and get the worst offenders in your team re-educated. Or you could go through some painful publicity and costly brand damage limitation later. Either is fine, just do not say you were never warned …

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By: Adam Boalt Adam, GOSO's founder, has started several successful technology companies and has won numerous awards over the years, including multiple write-ups in CNN, the Wall Street Journal and Forbes.

I just recently visited South Florida on business to meet with two automotive groups and educate them about using GOSO.  After a long day on the road discussing customer acquisition and retention strategies, I went up to visit my mother in West Palm Beach, FL.  To my surprise, the first thing she asked me to do was to help her buy a new car.  The first thing I asked her was, why don’t you trade your existing car in for a new one at the same dealership? (she was leasing a small luxury SUV)  She said that the dealership was rude and they said she was going to have to purchase two new tires before she returned the car on her 3 year lease.  All I could think about was how the dealership lost a sale over two tires and how easy it would have been to get her into the dealership to buy a new car.   The sale was lost and there was nothing I could do.

So we researched some new cars online and she decided that she thought that some of the new sporty wagons had more room than the small SUV’s.  After checking out a couple of different models, she made up her mind and we headed out to the dealership.  I try my hardest to be unbias in these situations since dealerships are my clients and I want to see them do well but they were so unorganized.  We waited at least 30 minutes before my mom impatiently said, let’s leave.  I told her that we had to give them the benefit of the doubt and to please be patient.

Somebody finally came over and helped out my mom.  Her credit score is just under 800, she wanted to put down $10k and finance the rest – basically A+ buyer.  She didn’t negotiate the price at all, she just didn’t want to deal with the old dealership and said, “as long as you return my old car to the other dealership and I don’t have to deal with them, I’ll be happy.”  It made me so disappointed to think that all my mom wanted was good customer service and nothing else from her old dealership.
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