It doesn’t simply identify those that are mentioning your business by name. It finds people in your local area and looks at interests and routines to determine who might be a captive audience. It takes this data from more than a dozen different social media sites. Once it has identified the individuals your business should be reaching out to, it helps you put together a special offer to hook them.

While so far their offerings seem enticing, it’s the offer part that enters into a grey area – it could be beneficial, or it may not be at all, depending on the intent of the prospective customers. The thing with many social media sites is that individuals don’t necessarily need to beat a specific location to post that they are. There is also no ingrained honesty detector to monitor the truth in their general statements. What this means is that people could theoretically catch on to what Local Response does and start making specific posts to appear as though they’re the most appealing customers to get a deal.

The strategy that should work with a tool like this is as follows:

1. Find the people that could become paying customers
2. Entice the people that could become paying customers
3. Keep them hooked as full price paying customers after that initial offer gets them through the door

What could very well end up happening instead is:

1. Find the people that could become paying customers
2. Entice the people that could become paying customers
3. Teach these people that COULD become full price paying customers that they NEVER have to pay full price again if they play their cards right online. These people may also tell their friends what they’ve learned

So the bottom line here is use the tool to identify your target market, but be careful to step away from Local Response to look at an individual’s social media stream. This way, you can ensure you are not looking at someone putting up a front for a bargain.

Using social media for this purpose can have both pros and cons.

Pros of Using Social Media for Customer Experience Feedback

• Social media encourages individuals to be open and voice their opinions
• When one consumer voices an opinion in a public forum, others are apt to jump in
• Word of mouth created by consumers may cause businesses to share best practices
• Consumers can ask questions and reach out to consumers and get an assessment from real shoppers
• When negative experiences are shared, retailers have the opportunity to publicly resolve the issue

Cons of Using Social Media for Customer Experience Feedback

• There’s the risk that dirty laundry will be aired, and social media users may only see one side of the story
• Competitors might be aware of weaknesses

As a retailer, it’s up to you to determine where you draw that line. You may choose to air it all online to benefit from social media, or you may encourage customers to provide extensive feedback in a private venue.

What’s your opinion on this?

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A women goes into Nordstrom to return snow tires and they take them back without a receipt. Right now, you are probably not questioning the “without a receipt” part. But you are probably scratching your head over the snow tire part.

I didn’t think Nordstrom sold snow tires

You are right, they don’t. But they took them back anyway.

Now, I’m not sure if the story is true or when it began, but this is pretty extraordinary. The snow tires and woman may be fictitious, but the return policy at Nordstrom is true. Stories like this make me feel comfortable that if anything goes wrong with anything I buy at Nordstrom, it will be taken care of without a hassle.

That is what I call service without boundaries. No doubt, it is good for business. But more often than not, these scenarios backfire because most store associates are not empowered to provide service without boundaries.

A different approach
I recently took a trip to Switzerland. The weather was beautiful one day and we decided to sit outside at a local restaurant. The only problem was the tables available were directly in the sun. I didn’t feel like squinting the whole time I was eating, so we asked the hostess if we could sit on the other side of the deck.

The only empty tables needed to be dried a bit since they were not in the sun and some ice melted on them. Her response was: You can sit here (sunny table #1), here (sunny table #2) or leave.

Was I insulted? No. And if I was, I was quickly won over by the wonderful food.

Part of this conversation could have gotten lost in translation. English was not her first language. But as days passed on my trip, I noticed it more and more in other situations. The Swiss have a reputation for quality, order and timeliness. They have a system and that system works; partly because they set boundaries. Even in service.

One more story…
When we were in Zurich, we went into a restaurant. They said they could seat us, but we only had one hour. To underscore this rule, they gave us a card to remind us when we had to leave. We understood the rules. The service was super-fast; the server understood the rules as well.

The food was delicious and we finished in thirty minutes. What did we do then? We had an hour and only spent half of it. So, we ordered another entree, which we split, and another round of beers. That food also came quickly. After we finished that round, we saw we still had another fifteen minutes. So, we ordered two desserts and two cappuccinos and we paid our bill with three minutes to spare! Oh, what fun. And the restaurant increased our tab by 40% because they set boundaries. We left feeling like we won a prize. Next time, we’ll beat that three minutes.

How this differs from American service
One of the cultural expectation that is hamstringing US companies is this: Companies say “do whatever it takes to satisfy the customer.” The problem is that people — both the company and their customers — don’t know what that means.

Service with boundaries not only helps associates understand what they can and cannot do to help customers, but also the companies themselves. When they know the rules, customers will never be disappointed. The problem comes when everyone has different expectations of what the experience should or shouldn’t be.

Creating alignment in your organization begins and ends with the customer. But you and your associates are the bond, the glue that very specifically defines the perfect customer experience for everyone to see.

And then measure the heck out of it. And be willing to change if needed.

SERVICE WITH BOUNDARIES is a service mark of ICC/Decision Services

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There is some truth there, but only when you link up with the right mystery shopping company. You hear the bad press on businesses getting taken by the less than reputable mystery shopping firms; but it can happen to those that work for them as well. Before signing on the dotted line to become a mystery shopper, ask the company the following questions:

1. Do I have to pay to join? Some mystery shopping companies require candidates to pay in order to get added to their roster. You should never have to pay anyone anything when you take a job. Particularly not when work is not guaranteed.
2. Do I have to pay for my purchases? Many mystery shopping companies will have you shop at the stores that you’re already familiar with. As a regular customer, they believe you’re in a better position to make a judgement. Just because you’re on a mystery shopping assignment at a store you’d purchase from already doesn’t mean the purchases should be entirely on your dime. Purchase guidelines should be set before you start shopping.
3. What am I responsible for? The workload requirements vary with regards to your deliverables as a mystery shopper. Get your responsibilities in writing, plain and simple.

Even if you aren’t a prospective mystery shopper reading this and happen to be a business looking to hire one, recognize the importance of the above.

Happy, satisfied mystery shoppers will be a much greater asset to the integrity of your shops.

1. Mention exciting promotions using social media – particularly during tough economic times, consumers are more focused than ever on finding a bargain. Social media takes coupon clipping to all new levels! If you’ve got a promotion coming up in store or online, post it on Facebook or Twitter. You can even create exclusive coupon codes for individuals that follow you or like your business page. This will keep existing customers in the loop and help draw in all new ones.
2. Share resources that appeal to your consumers - don’t just focus on direct brand promotion with social media, share other resources and information that are relevant and interesting to your target audience. This helps to establish your customer-focused values, and enhances your online presence in other ways. It’s likely that other social media accounts will pick up and share those resources around, putting more focus upon your brand.
3. Interact with customers - it is important to draw the line on how much customer service you’ll offer online, because some face-to-face interaction can still be beneficial. But, social media is a great way to address questions or concerns customers may have. It’s also value feedback that can help you determine which areas of your business require more focus as you strategize for your next mystery shopping mission.

There are a whole host of ways that you can use mystery shopping to your advantage in this business – and improve the overall experience that customers receive when they choose to shop with you. But the above are among the simplest, and most effective ways to establish your presence online fast!

Ultimately, social media is about relevance and respect. Brands want it as well and social media allows them to grab their fair share in a voice that speaks to their customers the way they want to be heard.

That is power.

That is power for the generic cereal that gets relegated to the bottom shelf. That is power to traditionally seasonal products like @BrucesYams that people may forget about except during Thanksgiving and the winter holidays. That is power for almost any other brand that struggles to get noticed with one facing in a crowded category.

Social media allows small brands to muscle into the arena with the big boys. They do this by creating a small but very loyal following. Those fans tell their friends and those friends tell others and so on and so on.

Mostly using social media like Facebook, Twitter and Yelp.

Take Nutella for example. For years, it was a quiet, unassuming chocolate spread, sitting on the shelf between peanut butter and jelly. Maybe it gets a couple facing in the categoy. A couple years ago, grocers starting noticing it turned at about twice its normal rate, then triple and pretty soon, the spread was flying off the shelves. It turns out that hipsters “discovered” the chocolate spread that was mainly served in Europe and it become the next cool thing to eat. The word spread (pardon the pun) mostly through Facebook.

The one question that gets asked a lot by brands is; “It social media the chicken or the egg?” Gerard McLean of Rivershark Inc answered this succinctly with his recent blog post here, but to put it bluntly — it is both.

I look forward to seeing you at the confernce. If you can’t make it, I will also be live-tweeting so be sure to follow me at @davidjrich and on this blog as we explore more about using social media at retail.

With the season that for many retailers is ‘make-or-break’ rapidly approaching, many retailers are trying fresh approaches. Mobile shopping apps are gaining popularity, allowing retailers to send offers directly to shoppers’ phones with the aim of reaching those buyers when they’re within a short walk or drive of the stores.

About 33 percent of retailers plan to have “location-based marketing” technology in place by year’s end, up from almost nothing a year ago, according to the National Retail Federation.

Two months ago, The Gap offered coupon for a 24-hour window through the popular site groupon.com. Shoppers could buy half-price shopping vouchers for everything from jeans to trendy messenger bags.

“At one point more than 1,200 people a minute were snaring the coupons, so many that the site that arranged the “flash” sale had to redirect some shoppers and tell them to come back later. But by day’s end, almost 450,000 potential customers had bought into the deal” reports Jen Wieczner in SmartMoney Magazine.

That’s tantamount to having an entire city line up to make purchases at your store and makes understanding and embracing the new technology well worth the time and effort.

When customers opt-in to the “Summit Signals” program, they automatically receive SMS offers once they are within a 1.5 miles radius of a North Face location. Customers also receive other information relevant to their location that would be of potential interest such as hiking trails or outdoor recreation areas.

The technology is provided by the San Francisco-based Placecast, using their “Shop Alerts”. The North Face markets the service through email, in stores and on their website and is testing the strategy in 31 of its locations.

Get ready for social shopping. Humans are social animals, we’re wired to connect. Online and off, we connect around social objects. We’re both members of Boston University Alum. BU is the object. Two people love wine and meet in front of the Cabernet shelf, Cabernet is the object. Two guys have Harleys. Harley is the object of social connection.

The social objects that connect us also identify us. What we share, what we post, what we like and talk about become part of our profile. Marketers will be able to access this demographic data. Facebook will soon be introducing stores which will allow people to shop without leaving Facebook. It’ll be a game changer. Stay tuned.

The study reports that only four percent of U.S. online adults use location-based mobile apps such as Foursquare, Gowalla and Loopt. Only one percent update these services more than once a week. Even more, a good majority of respondents””84 percent””claimed they were unfamiliar with the apps, a number to surely make companies rethink how necessary it is to start a marketing campaign using LBSNs.

Those numbers may seem like LBSNs aren’t a great investment at this time, but the report calls for another look. Among location-based service users, almost 80 percent of them are male and about 70 percent of them have a college degree and are between the ages of 19 and 35. Even more importantly, Forrester discovered these users are highly influential. They are far more likely to research products and read customer reviews and frequently have family and friends coming to them for advice before purchasing a product. In this sense, companies in the gaming, electronics and sportswear industry that target their marketing plan to men may want to include an early adoption of LBSNs.

Still, plenty of companies have launched marketing plans with location-based apps that aren’t just for the guys, including PepsiCo and Starbucks. When deciding whether LBSNs are right for you brand, consider your demographic and marketing plan’s goals. Weigh whether you want to establish yourself early in the location-based marketing playing field or whether you’d rather sit in the bullpen and wait until the user numbers grow to give it a try. Like every other marketing plan for a retailer, whether it be holding a sweepstakes, advertising or social networking, location-based mobile apps can be just another tool in a well-stocked toolbox.

Like many others in recent days, Owyang takes a look at the trends of 2009 that drive the decisions of the future. He identifies four key trends that senior marketing execs should give some thought to.

“The Recession Spurred Consumers to Adopt Social Technologies.” It’s not just the enabling technology that caused the movement. Hard financial times also drive people to connect to one another. High unemployment levels also contribute by giving people more time to connect. Motive, means and opportunity equals the perfect storm.

“Some Brands Followed Suit with Social Marketing.” The story says that print budgets have been cut by 37% and television by 21%. Brands are hurting too, so it makes sense that they also look for lower cost means and innovation. More money is being directed at Social Marketing due to its low cost and high return.

“Social Networks Share Data, Spreading Social Influence.” Social networks are connecting with other systems. This means the consumer experience can spread like wildfire because opinions and experiences won’t be limited by software or service provider.

“Consumers Move Faster By Sharing Real-Time Data.” A bad customer experience can now travel to the masses at the speed of thought. Real time updates allow instant feedback so brands have to learn to move faster. Even good service recovery practices may now be too late to turn the tide.

Included in the top 10 are: Coca-Cola, Starbucks, Disney, Victoria’s Secret, iTunes, Vitaminwater, YouTube, Chick-fil-A, Red Bull and T.G.I. Friday’s. The criteria for this list was having at least 200,000 friends, employing a dedicated social media staff, length of Facebook presence and amount of money spent on social media.

In general, these companies have continued to offer fresh and original Facebook content and material resulting in a tremendous amount of interest from followers. The ratings also found their Facebook presence to be well integrated with a broader marketing approach.

The names on the list speak volumes about the need to engage in establishing a touch point with consumers via social media. Major brands are embracing the philosophy and are seeing great reward.

It has been widely reported that retailers and manufacturers have been effectively using sweet deals to attract consumers to follow their company presence on various social media outlets. The hope is that shoppers will continue to follow and build brand loyalty. Black Friday, the biggest shopping day of the year, presents itself as a great jumping off point to disseminate information and gain followers. Hundreds of special offers are being leaked to vigilant consumers.

Brand marketers get additional penetration from special deal sites such as dealnews.com who also track and list Black Friday offers. Many e-commerce deals extend to the Monday after Thanksgiving, now known as Cyber Monday, because of consumers’ propensity to shop from their computers that day.

An article in Progressive Grocer reported on a consumer study of digitally connected consumers and found that, “43 percent of those following brands on Twitter do so because of exclusive deals or offers.” By comparison, that soundly beats interesting content, current customers or service support as a reason to follow the brand. The same can be said of Facebook where 37 percent said they follow because of the deals.

The article is not suggesting that building strong relationships with consumers via social networking is not important. Quite the contrary, the message is that building brands will include using the medium to create a great customer experience rather than a one-way ad message communication. The survey concludes that, “Social media tools are pushing greater customer information access, putting more pressure on brands to live up their words with actions.”

Using a good deal or promotion just seems to be the most effective current way to hook the consumer into the complete product experience. Once hooked, consumers can be exposed to content, information and conversations about products that can build and sustain your brand in the “new mainstream.”

To make a long story short, a band was traveling on United Airlines when one of the members noticed baggage handlers throwing their musical instruments as they unloaded the aircraft. After trying to get immediate help followed by nine months of trying to get some satisfaction from airline customer service representatives, the band pledged to write a protest song and put the video on YouTube. They did just that and within five days, “United Breaks Guitars” became a smash viral video. Over one million people downloaded the video in its first five days.

It’s another cautionary tale. Disgruntled consumers now have powerful recourse. In this case, the airline had nine months to address a seemingly reasonable request, and couldn’t come up with an answer. In the end, the band was offered compensation, but chose to have it donated instead. Had United demonstrated even an inkling of the band’s public relations know how, they could have avoided the incident altogether.

Perhaps it’s time to apply the, “˜United Guitar,” test to all interactions with consumers who are seeking help with a customer service or quality issue. Ask yourself a very simple question: Could my action or inaction end up making my organization a poster boy for all that’s bad in the world of large companies who allow policies and procedures dictate the customer experience. If the answer is yes, it should set of an immediate alarm.

Better yet, use the example of the band and how they used social media to become consumer advocates. Getting involved in the conversation rather than fighting it seems to be an easier way to strike the correct chord.

The author states that the tools are designed to create a dialogue in which all employed communication media use empirical data while getting a chance to engage directly with the customer. This is in stark contrast to traditional means of speaking “at” the consumer and telling them what they should and should not think.

What this means is that social media is causing marketers to rethink the way that they reach their target audience. And while sixty percent of the participants said that existing techniques for understanding consumers need to be improved, they are not completely sure yet how to go about it.

Implementing a true customer engagement strategy has its obstacles. They include the integration of online with database marketing and offline channels. There is also the ability to assess or manage internal infrastructure and culture challenges and the integration of all the technology.

While there is still much to figure out, it’s clear that maximizing your customer engagement efforts using social media is a requirement to cultivate consumer relationships. The winners will be the first ones to use the tools and figure out how all the pieces fit together.

A report filed by DEI Worldwide called, “The Impact of Social Media on Purchasing Behavior tells us that 70% of consumers consult Social Media Websites when searching for information on a product or service. That is the number one source ranking ahead of Company Websites (68%). The reason for this is obvious. Because of the endless supply of communication outlets available, it is no longer acceptable to take a number, be batch processed, or be put on hold. Customers want a place to rant and rave right here, right now.

That sounds like bad news if you’ve been off the planet for the last year and a half. But companies shouldn’t panic. All they have to do is join the conversation. According to DEI, “Companies not engaging in social media as part on their on-line marketing strategy are missing an opportunity to reach consumers.” The report says that talking to a brand representative online sends a powerful and positive message. Sixty-seven percent said they are likely to pass information from brand representatives on to others.

Maybe it’s the tail wagging the dog, but Social Media outlets enable both the customer service challenge and the solution. It’s this simple: customers require direct, individual one-on-one attention or they are going somewhere else and will bring their friends with them. Being comfortable enough in your own skin to engage these consumers online, immediately closes the loop on an individual basis and provides invaluable word of mouth that your newfound friend will text, tweet or telephone with others.

Express advertises on the bottom of customer’s receipts to follow their CMO @ExpresslisaG on Twitter. Zappos, potentially the kind of retail Twitter, has successful used social media to stay connected with consumers on everything from busineess operations, team members, and customer service. @DellOutlet offers deals to Twitter followers, and @Comcastcares is a consumer’s direct channel to voice concerns.

The retail industry can use Twitter for product promotions, customer experience management, and brand appeal. There is virtually endless possibilities to how a retailer or brand could use open communication with consumers to better their customer experience.

One individual is testing a device to link RFID tags to Twitter. Mediapost reported digital agency R/GA’s Richard Ting has successfully linked RFID tags to Twitter. When the tag is scanned, a preconditioned Tweet is sent out. There is potential for the same technology to be used by merchandisers or mystery shoppers in store. A real time feedback of a display with missing product, products not properly set up, or real time customer experience feeback. The opportunities to for all levels of an organization to connect with consumers using social media is unlimited.

How are you using Twitter in your business?

A BNET article recently highlighted CVS’s plans to improve to the online customer experience. CVS is pairing up with Google Health to provide customer’s with a smoother and comprehensive experience with their health care.

CVS and Google partnership will allow customers to access their prescriptions, medical history, and MinuetClinic visit records through their Google Health Account. CVS could have created their own program, but realizing customers aleadry have an established relationship with Google, is understanding the consumers’s needs. The partnership will hopefully attract consumers to use CVS as their one stop shop for prescriptions.

Front running retailer will work diligently towards meeting the customers online and in store needs. The online store front gives retailers the opportunity to fill the needs of web savvy consumers and build an attractive platform to draw consumers in store. CVS’s move to work with Google Health Accounts is the right move to simplify using the digital and in store experience.

The key to online and in store customer experience is to listen to your consumers. Know what type of consumer shops in store or online, and then tailoring the experience. It’s important both the online and in stores experiences are positive and reflective of one another.

What are the best expereinces you’ve had with a retailer onine and in store?

Brands all across the board are using social media to attract consumers. Pepsi, Frito Lay, Old Navy, and Zappos are just a few who have run web based marketing campaigns. Research shows online retail sales are doing significantly better then the brick and mortar companions. The digital shift is calling for retailers to pay close attention to the online customer experience.

Social media sole use is not just in marketing or advertising. Emphasis and experimentation with using Twitter as a customer experience tool has Sam’s Club and Lands End following Zappos’s successful lead.

AdAge announced the explosion of Coupons.com, who witnessed a 192% increase from last year. Price conscious consumers, who are also web savvy, are flocking to the internet for coupons. A new iPhone app called Coupon Sherpa will catapult coupons and retailers further to the digital connection. The app will display a list of retail business and their available coupons for redemption. Smart Phone apps such as Coupon Sherpa, will require cooperation from brands and retailers to ensure stock levels, displays, and staff are aware of the promotions.

As our interaction with consumers start to unfold online, retailers will need to ensure the experience is replicated in house. A coupon may draw consumers to Kroger’s, but if the items isn’t stocked or end cap display isn’t complete, the promotion fails.

The connections between online and offline will soon be a retailers main challenge. Successful promotions will start offline but end with quality follow through in the store. Failure to install an in store promotion could ruin the entire process. Customers will loose faith in the retail store, the brand, online promotion site, and marketing, if there is any disconnect.

It is essential for brands and retailers to monitor actions in store. The final stop in the customer experience is at the point of sale. Everything from shelf display, customer service reps, and packaging will reflect back to the digital campaign. It’s extending the customer experience management program from the Facebook page all the way to the clerk.