Companies' Use of Social Media

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Introduction:
Times have changed and so has the way businesses do business. Companies are using social media to help them build their brand, find customers, and reach new markets. According to the 2012 Social Media Marketing Industry Report, “94% of all businesses with a marketing department used social media as part of their marketing platform” (Stelzner). Retail businesses have proven to be a great way to (re)direct shopper’s experience. With the rise of smartphones, customers are using social media more than ever, “Facebook and Twitter are among the favorites since 48% of customers respond to retailer posts” (Stelzner). While retailers are using social media for marketing purposes, they often fail to realize the full potential social media has, especially in customer relations.
Problem:
An area that is often overlooked by retailers is the use of social media for customer relations. According to a research done by Oracle, in today’s world 35% of businesses don’t integrate social media for sales or customer service (Oracle 4). Social media can benefit retailers in many ways, but they can also negatively affect them. The customer’s voice is becoming louder because of social media, and customer complaints no longer remain in a small group of people: they go viral. According to Lauren Paxman, this happened to Keara O’Neal who was on a shopping trip to find bridesmaid dresses for her wedding at the high-end store GASP. At the beginning the sales assistant, Chris, was very helpful trying to find her dresses, but then he turned aggressive by pressuring her to get the dress; he even turned disrespectful by ridiculing her size 12 and made inappropriate comments such as “Have fun shopping at Supre… I knew you were a joke the minute you...

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... in today’s world a customer complaint no longer stays private. We live in a world where everyday the borders shrink: the power of the internet has made people more integrated and has made communications easier. According to Michael LeBoeuf, “a typical business hears from only 4% of its dissatisfied customers” (LeBoeuf) without realizing that with social media that 4% can become closer to 100%. That is why managers should be well prepared to confront these situations. Managers should prepare their employees to give the best service and show them how to solve problems in a manner that allows both parties to benefit. It’s always better to avoid making the problem bigger. Social media must be used to be responsive so that when customers have a problem; employees are available to help them. Social media needs to help retailers get closer to the consumer, not repel them.

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