Moving Toward Social Media: Now What?

According to a recap by Smart Company, Nielsen reports that three-quarters of Australian companies fully embrace social media with as much as 10 percent of their marketing budgets slated to social media. There is some discrepancy between large and medium businesses.

The Nielsen-Community Engine 2011 Social Media Business Benchmarking Study finds that 35 percent of large companies have a stronger presence than medium-sized companies. Although smaller businesses could benefit the most, many of them do not have the time or funding to outsource labor intensive work.

At the same time, companies that are engaging in social media are social network focused. More than 21 percent are advertising on Facebook, 15 percent have a company blog, and 16 percent are using paid monitoring services. The study also showed that 43 percent of companies see social media as a way to communicate to customers, 25 percent see it as an opportunity to respond to customers, and 23 percent see it as a tool for research and insight.

Nielsen helps tie social media to the tablet e-reader market.

Part of the most recent surge in social media is clearly in the tablet market. Mobile owners use their tablets and smart phones to browse for immediate topic points, during commercials, and to make social connections to the programming they watch (friends who are watching the programs somewhere else in the country). Some highlights from the study:

• 70 percent of tablet owners and 68 percent of smart phone owners use their devices while watching television.
• 57 percent of tablet owners and 51 percent of smart phone owners take their devices to bed.

When cross referenced with another study by Google's AdMob, a picture starts to develop. According to the survey, 84 percent of people use their tablets for gaming (which has become increasingly social), 78 percent use it for research (searching), 61 percent use it to read news online (portable news), and (from a different study) about 52 percent use it to check social network accounts.

The study that hasn't been done yet is more qualitative, but the anecdotal evidence exists — how are people prompted to take any number of actions that lead them to a destination. It's the one more businesses would certainly appreciate.

The anecdotal evidence exists in that people search for news on their tablets when specific topics are being discussed like a new item or a new release from a band. They might follow a link of a news story from a friend on their social network (the propensity increases with every friend mention too). Or, conversely, they might ask their friends what they think of a particular news item.

The challenge that many businesses face in social media.

Businesses that take the time to have a better understanding of social media will win, but not in ways that are always directly measurable (short of benchmarking). This explains some of the results pulled from a recent Forrester and GSI Commerce study that, on the surface, takes social media to task.

Specifically, the study concluded that social media has almost no influence on online purchasing behavior. Some people mistook this study as Forrester becoming a social media contrarian. But that is not exactly what people ought to have pulled from the study.

To fully understand what is happening with consumers, businesses have to start seeing everything from their point of view. Take a fictional (but based on real life) composite of a consumer watching television with their tablet in hand. The news program flashes that a major terrorist has been killed.

Almost immediately, discontent with the linear timeline of network news, they start searching other news streams for content. And, once they have enough, they might share or see what their friends are saying on the social network.

During all of this, your company is talking about its underwear sale. What do you think about your chances to make a sale now?

Exactly right. To develop a successful social media program companies have to either know when to shut up, adjust to current events, or position themselves as part of the greater community they belong to.

Ergo, just because you represent a company with 10,000 employees doesn't mean much because your company is probably only one account. And just because it is the bigger underwear sale in the history of the company doesn't mean it's the biggest news of the day. It probably isn't. But even if it is, people are more likely to visit the store next week than immediately click and buy.

The point being that investing 10 percent of a marketing budget or more into social media is smart, especially if you want a presence where people are spending more and more time. But investing 10 percent in social media isn't so smart if the underlying strategy is because you think consumers are waiting to celebrate your brand. All they really want to do is connect.

Operating Budget: How To Lose A Customer

When we returned the rental car to Tucson International Airport, we were feeling pretty bullish about Budget Rent A Car. The attendant who checked us in had even adjusted our contract because we brought the car back with a full tank, even though we had prepaid for the gas. As I mentioned before, that never happens.

Had Budget had its way, however, any savings could have been erased. Budget Rent A Car spoiled customer satisfaction by claiming we damaged the car three weeks later. You can read all the ugly details about what happened right here: It's why Budget sucks. Worse, we now loathe them and their company, with our resolve being to forgive and forget them permanently. Well, sort of.

Today, I'd rather talk about what might have happened. There are solutions on top of solutions.

Scenario 1: Assume Fault. Budget Rent A Car would have never lost a customer for life had it never sent us a claim letter. Please don't misunderstand me. Had we damaged the car, I would have paid for the repair. But we did not.

Had the car been damaged while it was in our possession, the attendant (per Budget policy) would have notified us at check in.

It is just as likely that any damage, which Budget later defined as "minimal" to the rear door, could have been done by the people who pulled up to us once the car was checked in. Or, maybe it was the attendant who had left the doors open. Or, maybe is was whomever is responsible for washing it. Or, maybe, who knows?

It's a sorry story to think that same attendant who wanted to "save" us money also tried to "stick" us with their mistake. But the solution here is obvious. Budget Rent A Car should have assumed their company, not the customer, damaged the car.

Scenario 2: Ask, Don't Tell. Conversely, maybe Budget Rent A Car wants to be operationally thorough. And upon discovering "minimal" damage to the rear door, wants to know if their customer might have noticed something.

Instead of sending an unsigned impersonal accusation form, they could have sent a letter. They could have included photos. They could have included a detailed description of the damage and asked had we noticed anything when we checked in the car.

Customer inquiries as opposed to accusations can go a long way. I practice the same resolve at my company. If an invoice comes due without being paid, we don't automatically demand copies of their bank statements. We find out if the check was lost in the mail. Of course, in this case, we wouldn't have been able to help because there was no damage when we left.

A phone call might have worked too. Paper is expensive and not always very responsible.

Scenario 3: Expedite Service. Even if the ineffective operational policy and procedure did not work, it would be prudent for Budget Rent A Car to provide a phone number that could be reached at their customer's convenience and not their own.

At minimum, even if nobody wants to work weekends at the Budget Investigation Unit and portions of their customer service department, at least give the working people enough information to answer basic questions. You know, like "What the flip are you talking about?"

The customer service crash was the worst display of general ineptitude that I've ever had the misfortune to experience. Even the customer representative who took ownership didn't keep his promise to call by noon. According to him, it took all morning to get any information from the Budget Vehicle Damage Control Department.

Seriously? I can't fathom how long it would have taken me. Is damage running so rampant at Budget that not only do they have an entire division dedicated to bilking customers, but they also have special divisional "units" to handle all of the details? Are they so busy that it takes half the day to respond to someone in their own company?

Scenario 4: Suck It Up. Budget Rent A Car accepted that they broke their own policy, admitted the customer service was shabby, and ultimately "waived the claim." Two representatives have promised to send formal letters of apology. And one offered a customer service certificate for the lies and runarounds we experienced with their staff. (I'm satisfied with the apologies.)

However, never once did the company acknowledge one of their employees or another customer damaged the vehicle. It's a small consolation, but one their customer service representative couldn't even grasp. He thought I would be appreciative that the claim was dropped.

And that's the rub. Budget Rent A Car maintains we were at fault and they are being gracious in all of their benevolence.

It's not about me anymore. It's about possible fraudulent insurance claims practices.

Since Monday, I have had several productive phone conversations. It seems that state legislators may be very interested in drafting consumer advocacy legislation for the State of Nevada.

At minimum, the legislation will require car rental companies to perform a walkaround with any customer before accepting the rental vehicle to prevent pass-on damage liability. Among other ideas, it may also include a non-insurance attribution process to ensure the abundance of car rental insurance claims do not drive insurance rates up, which impacts people who rent cars or not.

While my personal experience originated in Arizona, consumer advocacy laws also have a tendency to be passed from one state to the next. As soon as we can get a bill up in Nevada, the draft will be forwarded to legislators in Arizona and surrounding states.

As the bill passes, Budget and its parent company, Avis, will likely have to staff more personnel to accommodate, cutting into their recent profit surges. It may also help curb the recent consolidation of the car rental industry. Currently, Avis is attempting to work around anti-trust laws to acquire remaining competitors. There are only four national companies left.

Personally, I'm not very keen about regulatory oversight. But when companies "try harder" to screw customers, they earn it.

Sharing Passion: Patch Adams And BloggersUnite

If passion can be defined as a deep, overwhelming and powerful emotion one possesses for someone or something, then compassion might be defined as the ability to impart the best of it with someone else. The feeling they experience might even be different, leaving those touched mesmerized by their passion even if they don't adopt the same fervor. But the results are the same.

It's something not all communicators consider — and yet it is the foundation that sets so many campaigns and causes apart from one another. We rally around certain brands not so much because we're soda pop loyalists, airlines aficionados, or whatnot, but because the people behind the product have an uncanny passion for it that we can't quite understand, especially so if it is something as simple as three-ply toilet paper.

Of course, this particular post has nothing to do with something as commonplace as wipes. It's about a man who became a doctor, not so much for the profit his generation assumed it would bring but with an intense passion for the people who needed his help.

Dr. Patch Adams and his uncanny ability to transform passion into compassion.

I co-wrote an article about the International Day Of Compassion this weekend, but held off on adding something here because I thought the topic deserved a different angle. Instead of being informative, the life work of Dr. Patch Adams might be used as a teaching tool for a purpose one-off from medicine and more closely aligned with humanitarianism.

Since 1991 (and before), I've been honored to have donated my time to more than 60 different nonprofit organizations at one time or another. Some still leave me with a sense of pride today and others left me disenchanted, distressed or even disenfranchised. The difference, which can easily be applied to the private sector, is where people place their passion.

Those that make me smile for the honor of service, always managed to keep their focus on whatever cause they generally supported — teaching someone to read for the first time, rehabilitating homeless veterans, helping an orphan smile, or ensuring a parent could stay in the city where their child received medical attention. There are hundreds of examples.

And then there are those that slowly drift away from the cause or sense of purpose, pouring their passion into internal or even state politics, executive and staff paycheck protection, or just wanting to be right more often than they ever do the right thing. There are a few dozens of those, thankfully not as many as the former.

Dr. Adams is an exemplary model. Even when his expectations were proven wrong, he ignored any setbacks and persisted in sharing his passion, changing the world in sometimes small and sometimes extraordinary ways. And what makes his successes so uncanny is that he seldom asks for donations or volunteers but gets them anyway — even if it takes longer than he sometimes hopes.

He doesn't have to make direct asks or sales pitches or follow policies. Instead, he asks people who cross his path to share his passion — spreading humor and compassion whenever and wherever possible. He does it in a unique way too, making people want to support his dream and pursue some dreams of their own. You can see it firsthand by learning more about the Gesundheit! Institute.

But even more than that, Adams does something that few people ever do. Even if they don't make a donation, volunteer, or help him in another way, he still has made the world a better place by sharing his passion for compassion. And it still spreads.

Passion and compassion apply to communicators in the private sector.

It's the fundamental difference between social media programs that work and don't work (traditional campaigns too). Profit-driven (or deadline-driven or volume-driven) programs tend to deliver flatter campaigns, even if the short-term ROI is high.

Have you ever wondered why? The great unequalizer is often underpinned by passion for the product and compassion for the people who might buy it or have an experience. Or, in other words, I've never met someone who is successful peddling products they consider "boring" (passion) or unconcerned with each individual customer's experience (compassion). At least, no one successful in the long run.

Or, in yet other words, if you cannot communicate with passion and have the intent of compassion, then don't. People can tell. Sooner or later.

Cashing In Customers: Budget Rent A Car

Combined, Budget Rent a Car and its parent company Avis Rent a Car generate about $4 billion in car rental revenues. The company is doing well enough that it has put in a bid to purchase Enterprise or Dollar Thrifty, once it gets past anti-trust hurdles.

And yet, the company known for its long-running tagline "We Try Harder" and its subsidiary closes customer service on the weekend. Well, maybe. It depends on who you talk to.

Does Avis still try harder? Apparently, not under the Budget banner or on the weekends.

When you receive an unsigned form requesting insurance information from the Budget Vehicle Damage Department as part of an accident "investigation" without any other information — description of damage, evidence, police report — it's something you want to resolve immediately. You feel a sense of urgency, because you know there was no accident or damage.

The form, dated May 6, was received May 14, approximately three weeks from the time of the rental. We know there wasn't a problem because, until May 14, I would have described the rental experience as better than smooth. The attendant who checked the car at the Tucson airport didn't cite any damage. In fact, he adjusted our contract because we brought the car back with a full tank, even though we had prepaid for the gas. Trust me. That never happens.

Any semblance of good will quickly evaporated, not on receipt of the form, but in trying to resolve it. When my wife called the number on the form, she discovered that department was closed. She tried the customer service department, which was also closed.

Then she tried another number, a separate customer service number if you want to extend your rental period. After 20 rings, someone answered. They transferred her to roadside assistance. Roadside assistance was as perplexed as she was about why she was transferred to them.

Since my wife was frustrated, I set my deadline aside to send customer service an email, letting them know I think it sucks that a billion dollar company that provides services on the weekend would shutter up its customer service department during operating hours.

Tip 1. Don't force customers seeking private resolution to look for public customer service.

Believing I would not get a response until Monday, I sought the attention of the person staffing Budget's Twitter account. She immediately offered to help, asking me to follow Budget so we could send direct messages. It's a standard social media tactic that doesn't work unless they can actually help you. This one could not.

The primary goal is to move any complaint away from a public forum not help the customer. Still, the Twitter representative requested various numbers — with each message piling into my DM thread at a rate of four to one. I gave her the information. And within seconds ... she told me customer service was closed on the weekend. Sigh.

Tip 2: Don't castrate your social media reps by limiting their ability to provide customer service.

I wrote back a cheeky reply and un-followed Budget. With the conversation public again, Twitter monitor Ashley retorted that (sic) "As mentioned, customer service is closed but I would've liked to help w/ the resolution to ur issue when they reopen on Monday."

My thought about social media is pretty clear on this point. If you empower employees to manage Twitter, they ought to be able to manage customer service. And shortly after that comment, I received an email from Budget's customer service department.

Customer service was suddenly open. He instructed to me to call the Accident and Damage Claims Department (a different department and number than the Investigation Department on the form). They would be open on Monday.

I responded that I thought it was ironic that a customer service department that was supposedly closed would refer me to another department that is supposedly closed. To me, a resolution at this point would no longer be sufficient. An apology was in order.

Tip 3: Don't silo your operations to the point that nobody knows what they are doing.

While I was musing on Twitter that I wondered how many tweets it would take before Budget realized its customer service issue was becoming a crisis communication scenario (about 30 tweets, in case you were wondering), my cell phone rang. It was Budget's customer service department.

The representative told me that they had recently decided to extend their customer service hours. Obviously, somebody forget to tell their social media team.

He asked me to detail the experience, because other than the note his manager gave him to call me, he had no knowledge of my grievance. I started over, being mindful not to allow a rant to overshadow a resolution.

At that point, he assured me that it was Budget's policy to inform the customer of any damage at the point of drop off. He said that although he had no access to claims records, he would advocate my issue on Monday (today) by noon. He gave me his direct number.

While I wasn't really satisfied, I could accept his course of action.

About a half hour later, customer service emailed me, saying they would gladly provide a formal apology letter and would like to also include a customer service certificate. I told this second representative, who identified himself as an Avis customer service representative on the second email (same person, different company), that if a customer service certificate is a discount, I would still be leery of renting from a company that claims an accident when no accident occurred, three weeks afterward.

I am, of course, very interested in receiving the formal apology. I might even post it in the follow up.

Tip 4: Effective customer service saves your company time, money, and heartache.

Primarily because of the silo-heavy operations and faulty internal communication of Budget, along with Avis (since some operations are apparently shared), five different representatives worked on an issue that they were not able to resolve. Of the five, only one took real ownership (no resolution, but a course of action) and another took partial ownership (no resolution, but the promise of an apology). All of it could have been avoided had the initial customer service department picked up the phone.

But more than that, there were several points of contact that could have taken ownership. None of them ever did. And none of them, despite having the same rental agreement number, knew what the other representatives were doing.

Tip 5: Even minor investigations have a nasty way of uncovering some facts.

Unlike Budget, our small local insurance company and our attorney can be reached to provide customer service on the weekend. What they told my wife was difficult to believe. They both said that with increased frequency, Budget and other car rental companies have started to treat normal wear and tear on vehicles as damages that customers are obligated to pay for.

In fact, had we done as requested — provided insurance information without specific knowledge of any damage or any evidence of damage (keeping in mind there was no damage) — it would have been akin to admitting an incident occurred and that we were liable. They believe, adamantly, that is what Budget was hoping we would do.

They even recommended that we copy and cc the state insurance commission all written correspondence. The problem is that severe. There are state investigations into these fraudulent practices.

Given a car rental company charges rental rates that can pay for a car five times over in a month plus retain the resale value of the asset, it seems almost impossible to believe they would subscribe to such a tactic. However, it's more common than you think.

Other stories, including those that cite Budget specifically, also say that many companies have reversed their old policy of having agents perform a walkaround with the customer prior to accepting the vehicle. The cursory walkarounds used to be standard practice so customers agreed with the condition of the car before leaving the lot.

Rental companies do not staff enough people to do so anymore; some of them even have parent companies man empty service desks part time. Many people have requested a pre-checkout walkaround and have been denied. We certainly didn't get one.

Worse, the general feeling from our insurance representative was that rental car companies specifically target individuals who do not subscribe to the fear marketing that rental companies use to solicit additional insurance and roadside assistance fees. That would include people like my family. We have double coverage when we travel — private insurance and travel insurance from our credit card company — and maintain AAA membership for roadside assistance.

Still, it leaves me to wonder what would happen had we bought additional insurance. Would a claim have been filed without our knowledge, possibly marring a perfect driving record? Maybe so. It's hard to say, especially because if the car was damaged it happened well after we turned it in and and well after we flew home. It's even harder to say because the so-called insurance doesn't insure anything anyway.

Preliminary conclusions about the social media customer service issue with Budget.

To date, I don't even know what the supposed damage to the vehicle is. And based on the perfect return, I don't believe for a minute that we damaged the car — let alone were involved in an accident we can't remember.

Regardless of the resolution and pending apology, I still don't think I would ever rent from Budget again. What I do think is that I will be forever compelled to take pictures of a rental car well before we leave the lot. We can call this disorder they cause Budgtophobia, a severe and overwhelming fear of car rental scum.

Kidding aside, I do advise taking pictures of any rental. From everything I've read on the topic, the only people who successfully see faux claims of damages waived are people who make the issue public or take it to the press. The goal of the company seems to be to look like a hero as they overcome the problems they create and to avoid the rigor of investigative reporters.

All of this is a recipe for mistrust of the company and the rental service industry in general. That's not so easy to do. To earn such a distinction, you really do have to try harder.

Living case study ahead. The follow-up post on Friday, with a growing list of improvement points for Budget Rent a Car.

Moving Forward: Success As A Verb

“Success is a journey not a destination. The doing is usually more important than the outcome.” — Arthur Ashe

Sure, you’ve seen the quote used often enough (usually twisted and unattributed) that it borders on cliche. And it might seem out of place for someone who tends to be outcome focused. However, it doesn’t make the concept any less valid. Success works better as a verb than an adjective.

I had a discussion with my son the other day. Although he is only 12, he wanted to begin some type of physical fitness training.

So I gave him a schedule suitable for his age. But he almost didn't commit because the first few days surprised him. He wasn't as strong as he thought he was and had to reduce the weight related to some exercises. It was discouraging, he said. I'm weak.

I encouraged him not to give up. He was already succeeding because he was moving in the right direction. Everything else is just a matter of time and commitment.

A few days later, he found that the exercises were getting easier. And with every day he succeeded in completing a schedule of sets, he felt a sense of accomplishment (and was impressed by early results). I feel stronger, he said. His muscles tighter.

So, I used his discovery as a teaching opportunity. I mentioned the Ashe quote, but in a different context.

“No matter where you are in life, all of it is nothing more than a temporary state of being.”

In other words, it doesn't just apply to fitness. It applies to everything. Weak; strong. Fat; fit. Poor; rich. Burning water; celebrity chef. Struggling hack; brilliant author. Eager entrant; respected professional. Unread blogger; popular publisher. So on and so forth.

Almost every label you can dream up is nothing more than an adjective that takes a snapshot of the place where you are, without considering the place you're moving toward. And as such, they don't matter all that much.

I suggested that my son picture two extremes in his mind on a mile-long line. Imagine where he was on that line. And then imagine imagine moving toward the extreme he wants. Once he did, I told him to erase it all and focus on the movement in the direction he had picked. That's all that matters.

Let's face it. Most people never reach either extreme destination. And if they do, their time there is only temporary. A best-selling author only retains the title until his next book. A boxing champion eventually gives it back. This year's best actress isn't necessarily the same one who will accept the prize next year.

What's more important than adopting the snapshots as labels is continually moving in the right direction at a comfortable pace. Pace is important, but only because people generally work on several dozen goals at once. (No one can set the highest pace for all of them they eventually want.}

The secret to success is never thinking you’ve achieved it.

While it might come across as a paradox, most people who are successful find themselves striving for some higher or seemingly unreachable benchmark. Meanwhile, people who say they are successful are usually on their way down, perhaps already having enjoyed a brief moment of weightlessness after being shot up into the air with the full force of 4 Gs.

Imagine what would happen to my son a few years from now if he set some benchmark of success based on how much weight he could lift. If he stopped working out after reaching it, it wouldn't be long before he wouldn't be able to do it again.

In other words, success as an adjective isn't a place you stay. It's a temporary state of being while we are continually moving in one direction or the other.

At first, my son thought this sounded a bit discouraging. But then might find it liberating. If he wants to build strength, the act of building it makes him successful. That will never change (unless he gives up or moves in the other direction), making the verb more powerful.

Whereas the adjective is a snapshot, success as a verb is a journey. And knowing this, he doesn't have to think of himself as weak (he's not anyway, given his age) nor afraid of what areas need more work than other areas. All that matters is he is getting stronger every day and I wasn't only talking about fitness. Success is a verb in anything we do.

“I run on the road, long before I dance under the lights.” — Muhammad Ali

Listening To Experts: Or Social Media Intellectuals?

Although a recent Hoover Institution video, Peter Robinson interviews Thomas Sowell, had political overtones, it also inspires some questions that fit for social media. Are the experts that your company is listening to "experts" or "intellectuals" and why does it matter?

If you ask Sowell, your company might be cautious listening to "intellectuals," people whose end products are only ideas. It might be worthwhile to consider other intelligent people who produce end products like vaccines or buildings or campaigns and programs instead. The difference between the two isn't only in what they know (or think they know) but it's also a matter of attitude and accountability.

The latter is one of the first distinctions Sowell points out in the interview. Intellectuals do not have accountability to their ideas whereas people who execute ideas are frequently held accountable. The reason for the exemption is obvious. Intellectuals can fault the execution. They can fault the data drawn upon to make their conclusions. They can fault unexpected events.

The concept makes for a compelling argument, especially when it's moved to a new field like social media where there are few experts and many thought leaders. It might even be safe to say that some people are operating within the sphere with nothing more than ideas or, more specifically, opinions — ninjas who are so unfamiliar with a sword that they still struggle with their butter knife at dinner.

Five Warning Signs That You're Working With A Social Media Intellectual.

• The belief that their knowledge of things far exceeds their experiences.
• The notion that superiority in one field transcends into superiority in all fields.
• The willingness to provide advice without having the benefit of consequential knowledge.
• The over-reliance on studies, surveys, and statistics without looking at individual people.
• The unwillingness to rigorously review data that might run contrary to their own conclusions.

These types of behaviors abound in social media. Some social media experts tell executives how to run a company. They have ideas related to political policy. They make a living as consultants without ever managing a campaign (beyond their own). And they draw conclusions based on a singular study. And social media people search for validation more often than truth.

It doesn't have to be social media people, of course. The entire communication industry has a tendency to over reach into topic areas where they have no experience or even consequential knowledge.

I remember one "expert," for example, who suggested an ice cream company make whatever flavors people could dream up (and then convince them to sell it) without ever considering the operational nightmare of cleaning out the machines in between every new concoction. Suffice to say, it was an intellectual daydream and not even a very good one (and that's without mentioning all the problems associated with nut allergies).

Don't get me wrong. It seems to me that intellectuals can be very useful, especially if they dream up stuff that other people do not. But any company hiring them as consultants has to vet every suggestion and rigorously research the contrarian views.

Why? Because at the end of the day, unlike the intellectuals who think about it, the people who actually do it will be held accountable. It's especially true when such advice begins to drift away from social media and into human resources, customer service, production, pricing, loyalty programs, how your shoes look with blue pants, what your spouse might like for dinner, and where your kids should go to school.

Sure, you can ask their opinion on all that stuff if you like. However, opinions from intellectuals — especially those propped up by popularity — are exactly what they sound like. They are opinions, and they might even be opinions of lesser value than non-intellectual experts who happen to be immersed in the business of doing. Or, at minimum, doers will be well equipped to vet.