This means word-of-mouth has evolved from one-to-one to one-to-many conversations. Shared experiences become a formidable currency in the networked economy where the influence of an individual is significantly augmented. And, it’s this influence that changes the game for how consumers and organizations connect in the future.
In the age of social media, we are witnessing a C-change (as in “C” for customer) in the balance of power between consumers and businesses. This increasingly empowered generation of connected customers, which I often refer to as Generation-C, is changing the face of engagement and is re-writing the book for how businesses market and serve them in the future.
Think about this for a moment. Have you ever noticed that it’s almost always social media experts who have problems with companies or products on Twitter? Here’s why, they figured out that, by leaning on the reach and volume of their networks, they can make a difference. They can also jump ahead of traditional service queues to earn attention over one-to-one channels. Businesses are more inclined to respond quickly to these types of complaints in an effort to limit the extent of negative sentiment and improve perceptions.
Today, customers realize that social networks give them influence over how other consumers view a company and they are learning how to influence companies to listen, respond and resolve problems directly. At the center of this evolving customer landscape are shared experiences. People share just about everything and, whether we believe it or not, the activity around these shared experiences influences the impressions and behavior of other consumers in social networks to varying effects.
Services such as Klout, Kred, and PeerIndex now measure social media activity and translate it into an “influence” score. This, for better or for worse, introduces a social consumer hierarchy, creating a new standard for consumer marketing and service – and connected consumers know it. A report by my employer, Altimeter Group, titled “The Rise of Digital Influence” takes a look at precisely this phenomenon.