DESARROLLO DE LA PROPUESTA

Research (Visual Economics, 2010) indicates that of the total time spent online globally, 22% is used to connect to social networking sites, whereas 42% is viewing Internet content, and 36% is contributed by other functions, such as e-mail, searches and e-commerce.

Conversely one observes the traditional media to be gradually losing their effect on the increasingly discerning consumer in modern times. Consumers are actively demanding

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participation in the assessment of the consumer process (Zarella, 2010; Doyle, 2008). Commercially sponsored communications, such as advertising and marketing messages, are perceived as biased, and that the direct effect of these media seems to be small. Social media has permeated every sector of commerce, from big corporate brands to small entrepreneurial concerns (Zarella, 2010). There are various tools suitable for most types of business, whatever type or style of communication their client-base might prefer (see paragraph 2.3).

Social media has also redefined the way business looks at transparency of communication, information sharing and business cultures (Pitt, 2010). Cornell School of Hospitality Administration has launched a marketing roundtable to focus on the implications of social media, especially regarding the hotel and restaurant industry (Hotel News Resource, 2010c). Their findings include that 80% of online travellers use social media for reviewing (e.g. TripAdvisor) and that hospitality guests place more weight on consumer reviews (other peers/users) that they do on ratings from organisations. It thus seems that social media has not changed the virtues of old-fashioned listening, regardless of new developments in technology. Besides online review sites which are often driven by customers, other commercial experiences of customers can be expressed via social media by using ‘blogs’, often administered by provider companies. Thevenot (2007) defines blogging as a recurrent and sequential publication of individual opinions, frequently accompanied by Web links to other sites. It is a popular means to creating an online forum (i.e. over 70 million counted in 2007), whereby a person or business posts an online article, and readers can then react to it by, in turn, posting comments. A blog’s success is dependent on the amount and quality of comments received and the intensity of the discussions taking place (Thevenot, 2007). Blogs can contain photos, videos, and other interactive tools besides text. In turn, the reactive comments themselves become community postings. Because of open discussions, blogging subsequently has potential to become part of mainstream news amongst other forms of exposure. The rapid adoption of social media not only means creating internal opportunities for businesses, but also possibilities for external relations with customers, suppliers, partners, and outside experts. Indications are that businesses are indeed deriving benefit from Web 2.0 technologies (McKinsey Quarterly, 2009; Stokes, 2008; Chaney, 2009).

US consumers believe that businesses have a noteworthy part in influencing social media’s direction. In a study on social networking by Invoke Solutions, online social media users contributed to the following statistics: 65% follow a business via Facebook; 31% follow a business on Twitter; 47% indicated that they posted comments on company Facebook pages;

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32% have posted comments about businesses on their own Facebook page; and 30-32% shared new product and sales information with their social network (Invoke, 2010). Further confirming these findings, Doyle (2008) revealed that satisfactory experiences and subsequent purchasing habits of customers are more important than the effect of one-way marketing or communications, especially in maintaining sales. The decision that the customers make in purchasing is reliant on their buyer’s role, their socio-cultural background, product-specific experiences, or product information sources. Social media’s most inherent quality is connecting the consumers on the basis of being informed about products and services (Safko and Brake, 2009; Phillips and Young, 2009; Chaney, 2009).

Marketers also often believe that the message content contained in marketing material is the main factor influencing customers’ purchasing behaviour (Freiden, Goldsmith, Takacs and Hofacker, 1997). Arguably it is indeed important to build the relationship that demands retention or loyalty by promoting products or features. However, for sustained sales it becomes less important as customers become more knowledgeable and participative in the consumer process. Other marketers would rather believe that it is the content’s source that is most important (Jones, 2009). Acquiring new business referrals is vital for business’s survival. Focusing attention on the customers (i.e. influencers) that do referrals is similarly vital. Consequently in constant repeat business, the customer’s experiences and purchasing habits become positively entrenched, and thus the customer requires less attention and knowledge input to maintain loyalty. This would often remain until a viable purchasing alternative may present itself.

Social media has brought the consumer voice into the equation by creating a forum for feedback, hence the increased participation in assessment and knowledge gathering (Doyle, 2008; Safko and Brake, 2009; Chaney, 2009; Gale, 2009). Customers’ experiences are enhanced by being informed even before the consumer process starts, not just during and after the service delivery. Noteworthy, the customer’s after-sales service and product participation does not end until the customer confirms it, which is very unlike traditional marketing approaches.

Traditionally value is added by relating to the customer in a business environment that substantiates rapport, informing and creating sales. With the advent of social media the customer is often prepared, informed and knowledgeable about the product prior to being approached by the sales person. The business environment has become digitalised, remote or even mobile. Service is no longer specifically located. Grönroos (2003) further describes how important direct contact is in sharing pertinent data which familiarise the customer with the

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product. The development of an efficient customer-orientated service system is necessary to back the transaction of goods. Such personal contact has in many cases been successfully implemented by social media, as the media are real-time and interactive (Philips and Young, 2009; Chaney, 2009). Whereas in the past (potential) customers would passively have to be subjected to one-way ‘push’ advertising and promotions, the online consumer has an increased discriminative demeanour regarding what to be involved in (Shankar and Malthouse, 2009; Rubinson, 2009). Additionally the user-generated content that is created online has the advantage of being expressive, without the complex considerations of non-verbal communication.

According to Zarella (2010), 70% of consumers trust customer opinions posted online, compared with 62% that trust TV ads, 61% that trust newspaper ads, and 59% that trust magazine ads. Trust in a product relates strongly to customer loyalty and sustained satisfaction. According to Strauss, El-Ansery and Frost (2003), increased customer loyalty is the most essential driver of a business’s long-term performance. In the same argument they refer to the term ‘relationship capital’ in describing the importance of having a future orientated view of customer loyalty to businesses.

One might well ask from whose perspective a business relationship might be defined; the provider or the customer? The fact that a customer returns to a business does not necessarily indicate that a relationship has been formed or that a customer is loyal. It is the customer who dictates if and how a relationship has been formed with the business. Grönroos (2003) gives various reasons for this – it could be for cheaper prices, convenience, and/or familiarity with a specific product, amongst others. He further indicates that a relationship is closely linked with attitude.

Attitude indicates being able to respond to a bond that is earned, and specially earned in case of the business. This means communication and interaction are fundamental in forming the bond between parties, and both bear a positive attitude to be receptive of beneficial dealings. The attitude factor is important when analysing the context where content is created in social media (Phillips and Young, 2009). Exchanging information requires an attitude of openness to mutual benefits, to inform and to participate. In turn these attitudes are a prelude to customer experiences and related expectations.

A suitable definition of the development of a relationship is ‘when a customer perceives that a mutual way of thinking exists between customer and supplier or service provider’, thus enabling both parties to think ‘win-win’ (Grönroos, 2003:33). Being loyal means not just loyalty

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to the business from a customer’s side, but reciprocally from the business’s side as well. That leads to two-way commitment, which forms and strengthens the bond of a relationship. ‘Sharing’ is a concept that seems to be central to the phenomenon of social media, be it content such as photos, videos, articles, views, religious beliefs or goods for sale (Stokes, 2008).

As the media technology accelerates, it so seems the interfaces and tools become more effective, actually accomplishing a degree of naturalness in the communication process. Grönroos (2003:34) interestingly uses the same term ‘collaboration’ as do O’Sullivan and Spangler (1998:163). He equates the term with both parties feeling like winners, or at least gaining value in some way. This makes the customer feel as though he contributes to the consumer process in a constructive way, enriching not just his own experience, but those of the other customers, businesses and other third parties involved as well. Stokes (2008:133) otherwise uses the term of ‘crowdsourcing’ to illustrate a similar point: the businesses invite the online public to submit ideas and innovations for new or existing products in return for some form of incentive or compensation. Here the customer actively contributes to collaborating on the mutually beneficial aspects of product sustainability.

This further poses the question of whether all customers are actually interested in forming relationships with their providers. It seems possible to take a relationship approach, even if the product is regarded a commodity (Grönroos, 2003). However, a relationship approach will not be an ideal approach in all circumstances and in many cases might not be a feasible or suitable strategy to follow (Doyle, 2008; Peppers and Rogers, 2004; Kotler and Armstrong, 2008). Often a purely transactional contact-base is preferred, especially where additional interaction might be counter-productive, intrusive or even offensive. Social media creates options to control contact to the extent of what is preferred by the customer (Stokes, 2008). Grönroos (2003) distinguishes between active and passive relational modes, where the former type of customer requires and imposes some ‘wanted’ direct interaction, whereas the latter relies more on the customers’ expectancy of accessibility to communication and interaction with the provider. Taking the argument a step further, social media users are not inclined to meet their online friends in person. The trend has been set though, where in 2000 less that 1% conversion was achieved to turn online ‘friends’ into offline meetings, in 2009 it grew to 2.5% (Stelzner, 2009). This suggests that the opportunity to socialise and connect is there, but that the motivation to do so is minimal. Social media requires communication without being at face distance, thus many of the non-verbals that sometimes complicate communication are avoided. The various tools of social media have made it possible to expect and experience both active and passive modes simultaneously and interactively.

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Relationship marketing resonates well with the ideals of effective social media practices from the content generated from the interactions created in public forums. It is potentially accessible to millions of participants in real-time, and thus has the potential to become ‘viral’. However, using social media is not relationship marketing; it is merely a useful means of practising relationship marketing, and is only as useful as a loyalty programme or direct mail campaign might be. Relationship marketing is value-creation in relationships, whereas using social media is generating content in interactive online relationships. Relationship marketing, in conclusion, is a business attitude that should be infused throughout the organisation; the value should be driven and derived from within, but appreciated and interactively responded to from the outside. Using social media could be utilised as an expression of this fundamental strategy, but as a tool, it is more specific in its objectives and opportunities of scope.

Jones (2009) found that social media present a unique opportunity to generate and convert leads into business and revenue. However this takes some form of expertise, effort and ‘old- fashioned’ marketing tactics. This finding is generally shared by many similar research projects conducted on social media in recent years (Corruthers, 2010; Stelzner, 2009; Floridi, 2008). The expectations of social media effectiveness should be manifested within a proper strategic plan, and contemplated by managers who are somewhat experienced with the media’s tools. Therefore it is prudent at this stage to briefly discuss the managerial perspective on social media. This creates a balanced view into the customer context.

Corruthers (2010) found several contemporary studies highlighting certain trends relating to business’s expectations of social media. Very few (10%) businesses have applied proper marketing methods or outsourced accordingly in efforts to manage their social media use effectively. This shows the underestimation of the media as a tool and the expertise needed to administer them. The effort, time and value needed to create quality content are frequently underestimated. Further it was found that there was a direct relationship between time spent online and network interactivity, thus more and better quality connection time made possible more and better following and online customer support (Corruthers, 2010). Social media is often seen by business as a marketing means to minimal effort, time, and costs in creating a quality experience for customers. Many do not realise that maintaining a popular company blog, for instance, is a constant function of creating informative and entertaining content. The most effective content needs consistent and regular updating, responses, and relating to the users’ needs and expectations.

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Noteworthy from the manager’s perspective is that a high correlation exists between social media expertise and return on investment (Corruthers, 2010). The expertise relates to the effectiveness in communicating online, and the experience curve is a factor that enhances learning for both the customer and online presence of the business. Once again, the necessary level of customer trust is created by sharing content that is credible and is of added value (Stokes, 2008).

In this section the analysis has conveyed the importance and extent of social media within the consumer process and their application to the customer’s perspective. The preceding discussions have laid a sound base for contemplating the effect of social media on customer’s expectations and experiences specifically.