The New Rules of Customer Engagement

The rise of the culture of the Web has revolutionized the nature of how businesses and customers relate to each other. Whereas companies could once shape and direct the perception of their brand through carefully crafted ad campaigns, direct mail and press releases, today the flow of information runs fast and free, and customers now own the conversation. And because whoever owns the platform dictates the culture, the world is a more human, less institutional place to do business. Today’s customers want to feel good about the products they buy, where they came from and how they were made. Moreover, they want to like the company behind the product – that is, genuinely like it, not just press a Facebook button. We are entering an age of emotive economics. Corporations have been forced to adapt to this new, people-centric culture by connecting with customers on their own turf in more casual, conversational ways. There’s little room or respect for old-school corporatism’s pomp and protocol. And those businesses that cling to traditional behaviors in the online community will earn its scorn very quickly. Those companies that have embraced this new landscape and its risks have enjoyed great reward. For this reason, the human face, rather than steal and glass, has become the façade of big business. Yet with style must also come substance. It is no longer acceptable to be about profit alone. Companies are expected to contribute to the world in ways that make their customers’ lives better. Consumers are demanding that business be done on their terms. It should come as no surprise, then, that human values – transparency, respect, conscientiousness, kindness, trust, generosity and the like – are the keys to engaging with customers in this brave new world of business. So how can you use this new dynamic to your advantage to grow your business? You must embrace the new rules of engagement, understanding that when you put people first, profit will follow:

1. Don’t treat customers like they’re stupid.

When Netflix bungled its attempt to change its pricing structure last year, the backlash in the online community was severe, with many customers threatening to cancel their accounts immediately. It was clear that customers viewed Netflix as a value-priced alternative to more expensive traditional paid media channels, and therefore many felt betrayed by the company’s sudden doubling of their fees. While the price increase itself wasn’t really so unjustifiable, what made it unpalatable for customers was the company’s lack of transparency in explaining the business drivers behind the rate hike – the rising operational costs of maintaining a physical DVD business and the growing licensing fees for content streaming. Instead, Netflix spun the move as giving customers a “choice,” offering the option to subscribe to a DVD-only service at its lowest price ever. Here's an excerpt from their ill-advised news release: To his credit, CEO Reed Hastings acknowledged the poor handling and chalked up the misstep to “overconfidence,” which still sounds like PR spin, but hey, we’re making progress. The lesson? If a change in product or policy may have negative consequences for your customers – even if only in perception – acknowledge them, express empathy over the inconvenience or added cost, explain the reasons if possible and then point out the benefits or offer alternative options. People understand that businesses must evolve and that profit is still part of the equation. Don’t assume that your customers are beyond reason or treat them like they’re too stupid to detect what’s really going on.

2. Over-serve your customers.

It’s always good business to go the extra mile for customers, but never more so than when trying to recover from a mistake. How you handle disappointment is what determines whether your customers write you off and tell everyone about it or trust you more and spread the good word about you. When Google decided to phase out Wave due to poor user adoption rates, they didn’t just shutter the windows and bury the technology as if it never existed. Instead, they gave users months to move their data off the service, converted Wave into an open-source project and gave the Wave community the tools to get involved:

3. Be humble and listen to your customers.

Building on the success of its breakthrough app Wunderlist, Berlin-based software firm 6Wunderkinder recently launched Wunderkit, a project collaboration and management tool designed around the social connections of today’s work environment. Wunderkit was made available in a “freemium” model, offering standard features to all users for free with additional functionality available for a small fee to power users. As the company analyzed feedback from its beta release of Wunderkit, they realized the community’s dissatisfaction with project collaboration between users – one of the platform’s central features – only being available to premium users. What follows is a fantastic example of how to demonstrate that you’ve heard your customers loud and clear, understand their feelings and are acting to resolve the issue:

The customer is king, and the king is here to stay.

Never underestimate the commitment required to engage with customers effectively in today’s marketplace. Human relationships are not managed well with rigid rules and policies but instead must be governed by human values like compromise, sensitivity and transparency. It takes much more than a Twitter account and Facebook page to win the hearts of customers. You must develop a culture that is focused on and driven by the customer through and through. Be purposeful in growing such a culture. Establish your own rules of engagement. Make sure every employee is encouraged to embrace and exhibit those values. Empower them to do whatever it takes to take care of your customers. The journey may be a bit rocky at times, but if you walk the line faithfully, you’ll earn something from your customers that can never bought with advertising dollars – trust, respect and even passion for your brand and what it stands for.

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The Ever-Changing Face of Facebook

With the advent of another quarter comes another sweeping round of changes from our good friends at Facebook. In what is becoming a weird mix of techie tradition and rage-inducing behavior for the average Joe, Facebook will be rolling out a barrage of new updates over the upcoming weeks.

Now that the inevitable initial backlash has subsided (You changed ma Facebooks!1! Facebook is going to start charging for their services!!), let’s dive in and look at what’s ahead.

Timeline

The most significant update is the introduction of the Timeline – Facebook’s version of an online scrapbook. Once it’s been fully rolled out, the Timeline will replace the user’s profile page and will more closely resemble a blog, complete with a header image, summary bio information and a quick overview of friends, photos, likes and notes.

Scrolling further down the Timeline, you’ll see highlights from the user’s Facebook footprint over the years, laid out in reverse chronological order. Scroll down far enough, and you’ll see a hilarious new section for the user’s birth.

Yes, Facebook is no longer content with shaping our present and future. Zuckerberg & Co. have now devised a way to retroactively insert themselves into our past, too.

All joking aside, the interface is fairly intuitive and fun. While some have raised privacy concerns, as with every other service that Facebook offers, Timeline only works with the information that its users provide. Preventing photos or life events from being made public is as simple as not posting them.

News Ticker

If the Timeline is the most visually appealing new update, the News Ticker is probably the least (and possibly most annoying).

The Ticker is like status updates on steroids, providing running commentary – er, updates – whenever one friend comments on another friend’s photo, comment, etc.

Whereas previously a user’s interaction with their friends’ updates was mostly limited to the ones they commented on or liked (triggering notifications whenever someone else subsequently commented on the same item), Ticker operates from the assumption that users don’t want to miss a single instance of activity between any of their friends.

While I’m not necessarily opposed to the concept of the Ticker, in its current iteration, it definitely feels like information overload. It would be preferable if this feature could simply be hidden or deactivated.

Subscribe

Taking a page from Twitter, Facebook now makes it possible to subscribe to a user’s profile, rather than adding them as a friend. So in case you want to follow (a la Twitter) someone you don’t know on Facebook without the creep factor of adding them as a friend, now you can just subscribe to their updates. Then again, maybe that is the creepier of the two options…

Smart Friends lists

Oh, Facebook, again with the blatant Twitter homages. Their new “smart” Friends lists are exactly what they sound like: Facebook creates and auto-populates certain default categories (work, school, family, city) of Friends to allow users to easily view updates only from contacts in that particular group.

This isn’t necessarily a bad update, but it’s probably only truly useful for those who are approaching their 5,000 friend limit and need an easy way to slice and dice their friend-base.

Recent Stories vs. Top Stories

Finally, Facebook has revamped the way updates are displayed in the home news feed. In the past, users had the option to choose between “All Updates” – activity from all friends displayed in reverse chronological order – or “Top News,” which was aggregated and ordered based on Facebook’s EdgeRank algorithm.

Facebook has now eliminated these options by creating a hybrid of the two. The jury is still out on this new beast, but it appears that it might not be a bad compromise.

On login, Facebook displays a selection of “Top Stories” mixed with “Recent Stories.” As a user spends more time on their home news feed, Top Stories are filtered out and the feed returns to a straightforward view of Recent Stories (i.e., updates from friends/pages as they happen in real time).

Users also now have the power to select certain updates as Top Stories to further customize their news feed in the future. Conversely, they can deselect those updates that don’t make the cut for relevance and interest.

What do these changes mean for you?

While none of the most recently announced changes directly affect Pages, they are not without implications for those who use the platform to engage with customers and clients.

First, the evolution of the news feed and the introduction of the Ticker mean that it’s more important than ever for brands to publish exceptionally valuable, relevant content that encourages interaction from fans in order to ensure visibility in their feeds.

Secondly – and perhaps most importantly – despite the latest round of loud complaints from its most vocal users, Facebook’s growth shows no signs of slowing. Recent data from Nielsen indicates that users are spending an ever-increasing amount of time on Facebook – more time even than on Google, Yahoo, AOL and Microsoft sites combined. And Facebook remains dedicated to driving innovation in their interface and the ways that users can engage with the platform. As new options and features continue to emerge, Facebook will become the default online home base of more and more users, making it an invaluable vehicle of communication between companies and their customers.

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