Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government
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UtILItY WEEK | 20th - 26th FEbRUARY 2015 | 13 1. Build a social community Social communities are best described as an eco-system where brand, consumers and future customers can talk to each other using a range of tools (forums, blogs, product reviews). These communities also provide a platform for consumers to connect – not only with a brand but also with each other, giving reviews and feedback. 2. Be transparent In today's digital world, transpar- ency is key. People will talk about issues associated with your brand online visibly and without filter. Embrace this and try to guide the conversation. By connecting with your consumers on social chan- nels you're enabling transparent communication, which will earn brand trust. Customer loyalty is difficult to build and easy to lose, once you've built consumer trust never take it for granted. 3. Respond and engage Customer service shouldn't be one sided, remember to listen and respond. Consumers turn to social media for instant answers and more oen than not to com- plain – don't be afraid of this. By addressing issues head on and handing the situation with care you're turning this into an oppor- tunity to transform the customer into an advocate. 4. Be patient Customer trust and loyalty doesn't happen overnight. You need to be consistent and invest time. By doing so your customers will have an emotional connec- tion to your brand, making them feel a part of the business and not a commodity. 5. Word of mouth Since 82 per cent of consumers trust peer recommendations and only 14 per cent trust advertise- ment, going that extra mile and making the customer feel valued and understood will only enhance your reputation. Transparency is the key to unlocking trust B usinesses have always depended on the trust of their customers to flourish, and its benefits can be great: consum- ers will support you; your reputation will be protected during a crisis; and top talent will be attracted to your business. Everyone has a tendency to trust, but the level to which they are willing to trust varies depending on an individual's previous expe- riences. Trust is also very much based on evi- dence. When it's endorsed, it will grow, and when it's undermined, it will shrink. The challenge for businesses is that con- sumers are very shrewd about where they place their trust. One factor that can influ- ence their views is how the company is struc- tured and owned. Customers will oen be swayed by prevailing perceptions – for some, private ownership means a ruthless focus on profit, while not-for-profit means a worthy cause seeking the common good. Regardless of your company's owner- ship structure, however, transparency and accountability are the keys to trust and reputation. In the utility industry, not only will con- sumers be guided by their personal expe- riences and what they see in the media or hear from their peers, but the organisation's actions. If the business is innovative, cares about its customers and staff, and demon- strates accountability, it is likely trust will be strong regardless of the organisation's own- ership model. In association with: S P E C I A L R E P O RT: PA RT 2 / F e b ru a ry 2 0 1 5 Five pointers to trust is to tweet With social media now ubiquitous, businesses must learn to use it to their advantage as a tool for trust and growth. Consumers tend to be more critical of utilities than any other industry because they cover vital aspects that enable us to live our everyday lives (such as telecom- munications, electricity, water, and gas). however, earning customer trust is vital for any type of indus- try. this is especially important on social media because it enables customers to voice publicly, to a large number of people, their experience with a brand, product or service. In today's world this is a perma- nent challenge because customer expectations are constantly rising and brands that fail to address this will ultimately become obsolete through the eyes of digital natives (those who are born and bred in the digital age). Yet many conservative brands are often scared of the famous "#fail" and, consequently, they play safe on social media, taking a back seat policy and watching what happens before reacting. this is a mistake when many custom- ers are embracing social media and demanding the brands they interact with do the same. they see it as a means to access large or distant corporations, promoting honesty and transparency while getting timely answers to their queries. Managing customer issues isn't an easy task, but if it's done well, brands will not only enhance their reputation but also generate advocates, which is essential to expanding your client base. When selecting a new service or product, a customer's purchas- ing decision is often based on a peer's recommendation, not by marketing collateral. In fact, a recent study by Nielsen (Edelman trust barometer 2014), found that only 14 per cent of customers trust advertising and brand messaging while 82 per cent of consumers are likely to try new things based on what friends suggest. The five points, right, are ways in which brands can earn custom- er trust and generate advocates via social media: Fabrice Etienne, EMEA marketing director, Lithium Technologies LOOK whO'S TALKIng When you look at how different compa- nies fare when it comes to trust, non-profit or employee-owned companies such as John Lewis generally do well because they have clearly set out their purposes. In contrast, privately-owned companies can be highly secretive, but can score highly on trust if they are transparent and well run, such as Wates Group and Aldi. Meanwhile, many long-established public organisations will have a distinctive record of good and bad past deeds, such as a poor reg- ulatory compliance, which may cloud their level of trust. Jonathon Hogg, people and operations expert, PA Consulting Group "the common denominator in the suc- cess of all companies is transparency. transparency gives investors, consum- ers and the public a means to hold com- panies to account."