Dissertation Final Draft
- 1. 1 W12008552 Customer Service in the Age of Social Media: A Tesco Case Study A Dissertation presented at Northumbria University for the degree of BA with Honours in Journalism, 2014-15
- 2. 2 Contents 1) Abstract 3 2) Introduction 4-5 3) Customer Service and Social Media: An Overview 6-8 4) Literature Review 9-18 5) Methodology 19-20 6) Tesco: A CaseStudy 21-31 7) Discussion 32-34 8) Conclusion 35-37 9) Bibliography 38-44
- 3. 3 Abstract Purpose Thispaperwill lookindepthat the impact new mediahashad on the worldof customerservice.The studywill analyse justhowimportantithasbecome forcompaniestouse social mediatointeraction and engage withconsumerswiththe aimof enhancingcustomersatisfaction. Approach A case studyfocusingonTesco,one of the UK’s biggest retailers will formthe basisof the paper. Tesco’ssocial mediaoutputforcustomerservice purposeswillthenbe comparedandcontrastedto othersinsimilaranddifferentindustriestogainawiderknowledgeof how social mediacan,andis, beingusedbycompanies. Findings Tescodeploysawide-rangingsocial mediaservice forcustomerstointeractoverwithvarious differenttacticsandtechniquesforraisingcustomerinteractionandengagement.Thiscanreap significantbenefitsforthe company;bothinthe formsof directprofitandlongertermgains.
- 4. 4 Introduction Organisationshave longsince recognisedthe needtouse social mediaasa wayof providingan adequate customerservice.Thishasbecome particularlyevidentinthe retail industrywith interactionsbetweenconsumersandbusinessesatanall-time high.Technologyhasadvancedat great speedoverthe lastdecade andbusinessesnow notinteractingwiththeircustomersover social mediaare inthe minority.The dayof respondingviaemail orcommentpageshaslonggone. In reflectionof all the developmentswithLinked-In,FacebookandTwitteroverrecentyearsmany newsitesandpiecesof software have come intoplay.Hootsuite pavedthe wayfor social media analyticsandthishas become a bigpart of how businessesuse technologyandsocial mediatogether to helptheircustomerservice output.It’sbeensuggestedthat1in every5 people inthe worldnow owna smartphone,and1 in17 a tablet,whichallowsforconsumertobusinesscommunicationina matterof minutes.These statisticsshowjusthow bigthe playingfieldof social mediainteractionfor customerservice meansisandthe possibilitiesare almostendless. Withthe increaseduse of social mediaforcustomerservice purposeshascome anemergingof greaterinterestinthe area.It’sbecominganincreasinglysignificantpartof companies’business modelsandthisisresultingingreaterinvestment.Whilstsome businesseschoose tooperate their ownsocial mediachannelsmanymore are outsourcing.UKIT outsourcinghasgone up by 15% to £3.44bn accordingto the 2014 Arvatoreport.At the 2014 UK Digital ExperienceAwards,the partnershipbetweenBritishretailerShopDirectandSercoscoopinga hat-rickof prizesshowingjust
- 5. 5 howsuccessful outsourcingyourcustomerservice channelscanbe.The pair agreeda £430 million deal back in2012 that showsthe importance companiesare placinguponcustomerservice andnew media. Thispaperwill lookatthe worldsof customerservice andsocial mediaindetail toshow justhow importantthe linkisbetweenthemandhow companiesuse ittoraise customersatisfactionlevels.It will payattentiontoa numberof scholarlyviewsonthe subjectarea aswell assurroundingareas and take a closerlookat Tesco inparticular,one of the UK’s biggestretailersandusersof social media.
- 6. 6 Customer Service andSocial Media: An Overview Throughoutthe world,companiesare takingnew stepstogetaheadof theircompetition.Somany are nowclashingdirectlyagainsteachotherthatitshowsjusthow vital itisthat businessesget involvedheavilywithsocial media,andsuccessfully.There isgreatscope forinnovationwithinboth customerservice andsocial media,shownbrilliantlybyDutchairline KLM.Becomingfrustratedby losingcustomersbetweentheirsocial mediapagesandtheirownwebsite,KLMand one of its paymentservice providersestablisheditsownfullysecurepaymentplatform.This allowed customerstobook flightsandmake paymentswithease onsocial media,notneedingtobe redirectedtoa more complicatedandtime consumingsite.The endproductcostthema mere £3,500, and accordingto social mediahubmanagerWimter Haar now recoupsthe company £100,000 a week.Theyare nowplanningtodouble theirsocial mediareturnoninvestmentafter bringingin£25 millionin2014. This justgoesto show how beneficial usingsocial mediaina customerservice sense canbe,andit’snot justfroma financial pointof view. Perhapsthe mainreasonforusingsocial mediaas a customerservice tool inthe retail industryisthe speeditenablesacompanyto operate at,aidingcompany’sresponsivenessandhelpfulness capabilities.Immediatecommunicationispivotal now todeliveringasuccessful customerservice.1 in5 customersadmittedtoutilizingsocial mediaatleastonce to geta customerservice response in the past yearwhichshowsthe vast numberof interactionsoccurring.Furthermore 30% saidthat theywouldexpectaTwitterresponse within30minutes,withthe statisticforFacebookat16%. Social mediahasenabledbusinessesandcustomerstointeractata speedthathasneverbeenseen before andif done successfullythe rewardsare there tobe gained.
- 7. 7 An impromptuTwittersurveycarriedoutbyChristopherRatcliff forEConsultancyinNovember2014 gaugedjusthowsuccessfullythe retail industryisusingsocial mediainitscustomerservice repertoire.Ratcliff (posingasacustomer) tweeted20of the biggestretail companiesinthe UK askinga varietyof typical questions,suchaswhere he mightbe able to finda certainproductor how to returnanotherone.By andlarge the resultswere impressive,showingjusthow importantitisto use social mediacorrectlyandjusthowthe retail industryis.Onlythree companies,Halfords,ToysR Us and Boots,failedtorespondwithin24hours,and a creditable 25% respondedwithinlessthan half an hour to satisfythe aforementioned30% who expectthis. The most successful appearedtobe the likesof Band Q,who onlytook3 minutestodeliveran adequate response,orNewLookwhotook22 minutesbutthenprovidedapersonalisedandvery helpful reply.Those lessendearingtothe customerwere the oneswhoofferedautomated responsesthatoftenredirectedthe customertoanothersite orphone number.While betterthan no response atall,thisisn’tquite howsocial mediashouldbe usedforcustomerservice purposes and can prove veryfrustrating.Summarizingwhathe’dlearntfromthe experimentRatcliff deduced a couple of keypointsas to whatis to be expectedfromasuccessful social mediacustomerservice policy.Pointingoutthatre-directingacustomertoanothercustomerservice channel ismerelygoing to frustrate customers;itshowsthata personalisedresponseisalwaysgoingtoappease the customermuchmore.It pays to be friendlyevenif thisdoestake slightlylonger,aslongasthe time isn’textortionate.Italsoseemsthatanhour isthe maximumtime areplyshouldtake,andthe fact that 70% of these 20 companiesfittedthisbill showshow prominentlysocial mediaisusedin customerservice andjusthowimportantitis.Later inthe paperthese figureswill be contrasted againstTescoas a gauge of howsuccessful theirsocial mediaresponsesare.
- 8. 8 Most of the responsesthatcustomersare lookingforcanbe veryshort.Perhapstheyare askinga simple questionlike “whattime doesmylocal branchshut?”or “whenwill thisitembe backin stock?” These kindof enquirescanbe dealtwith by automatedresponseslinkingthe askertoa customerservice site orphone number,whichisobviouslyacheaperandeasiersystemtooperate. Howeverthe impactof runninga goodcustomerservice oversocial mediacannotbe underestimated.Customerswhoare made tofeel wantedandathome are muchmore susceptible to brand loyaltyandtheirrepeatbusinessmightmeanit’sworthspendingmore onyoursocial mediateamsandstrategies. Social mediaisusedprolificallyinthe retail industryasaway of buildingupbrandrecognitionand therefore amore loyal customerbase.Companieshave complete dominionoverwhathappenson theirsocial mediapagesandthiscan be usedto deliveragreatpersonal experience toindividual customers.Beingboldandtakinga newapproachwill promote abrandand make it standout. A companythat gainsitsown identityandbrandisundoubtedlyamore successful one andthiscould not be more relevantinthe retail industry.Companiestryingtoinduce consumerswill be using social mediaasa tool to gainbettersearchengine rankings,greaterconversionrates,higherbrand authorityandincreasedinboundtraffic.
- 9. 9 Literature Review Customer Service Defined plainlyas“atype of productthat isintangible”anda“form of product that consistsof activities,benefitsorsatisfactions”(Armstrong&Kotler,2000)1 , there are many differentwaysand strategiestodelivercustomerservice.The worldof customerservice maywellhave changed markedlyoverthe lastdecade withtechnological advancesbutthere are some characteristicsof goodcustomerservice thathave alwaysbeenrecognisable worldwide. AccordingtoJohnsonetal (1988)2 there are 12 determinantsof customerservice quality:reliability,responsiveness, appearance,cleanliness,comfort,friendliness,communication,courtesy,competence,access, availabilityandsecurity.Obviouslynotall of these are relevanttothe everybrandandproductbut it showsa goodbarometerof what people are expectingfromacustomerservice channel. Companieshave oftendifferedintheirstance onjusthow importantcustomerservice is.Some may believethe strengthof theirproductishighenoughtonegate the needto spendtime andfinance on customerservice improvements,whereasforothersitisa keycog in the businessmodel. Will Potter,CEOof MarylandbasedPrestonTruckingCompany,haseachand everyone of his employees agree inwritingtoabide bythe company’sservice philosophywhichstates,inpart: “Once I make a commitmenttoa customeror anotherassociate,Ipromise to fulfil itontime.Iwill 1 Marketing: An Introduction.Chapter 7: Product, Services and BrandingStrategy. Armstrong & Kotler, 2000. Pages 3 and 5. 2 Service Quality Determinants and Effectiveness in the Real Estate Brokerage Industry.The Journal of Real Estate Research. Johnson,Dotson & Dunlop,1988.
- 10. 10 do whatI say whenI sayI will doit… I understandthatone claimor mistake isone errortoo many.I promise todo myjob rightthe firsttime and to continuallyseekperformance improvement.”3 It’s clearfrom thisthat some companiestake customerservice tobe incrediblyimportantwhichisof great credittothem. LewisandBooms(1983)4 believe thatservice qualityisameasure of how well the servicelevel deliveredmatchescustomer’sexpectations,definingexpectationsas“predictionsmade by customersaboutwhatis aboutto happen”.The trouble withgreaterstandardsof customerservice inrecentyearshas meantthat these expectationshave gone upandcompanieshave tocontinually strive toprovide greaterservice.Thisisadouble-edgedsword,however,asthere canbe great benefitstoagood customerservice output.Puttingtogetherapackage of servicesthatdelightsthe customerscan leadtoyieldingprofitsfora company(Walsh& Godfrey,2000)5 , and there are also manyother positivesthanpurelyprofit.Manypeoplehave notedthatthere isadirectrelationship betweencustomersatisfactionandcustomerloyalty(Hallowell 1996)6 and thiscan opena lotof doors. Customersatisfactioncanbe labelledasadirectoutcome of adequate customerservice andhas beenseenasfulfilment(Maslow,1943)7 and achievementof certaingoals(Vroom, 1964)8 . Building customerstrategiesthatfocusonboth buildingsatisfactionandtrustcan have long-termpositive effectsforboththe receiverandproviderof goodcustomerservice. 3 Delivering Quality Service: Balancing Customer Perceptions and Expectations. Zeithmal, Parasuraman & Berry, 1990.Page 6. 4 The Marketing Aspects of Service Quality.Lewis & Booms, 1983. 5 The Internet: A New Era In Customer Service. Walsh & Godfrey, 2000. 6 International Journal of ServiceIndustry Management. Volume 7, Issue4. Hallowell,1996. 7 Customer Satisfaction:ContrastingAcademic and Consumers’Interpretations. Marketing Intelligenceand Planning.Volume 19, Issue1. Parker & Matthews, 2001. 8 Customer Satisfaction:ContrastingAcademic and Consumers’Interpretations. Marketing Intelligence and Planning.Volume 19, Issue1. Parker and Matthews, 2001.
- 11. 11 There are manyexamplesof thingsrelatedtocustomerservice thatcompaniesare usingtomeasure the successof theirrelationshipwithcustomers.A highlevel of customerservice,whichbringsabout an equal level of customersatisfaction,isalwaysgoingtoproduce benefitsforbothcustomerand brand or business.Factoringinsocial mediaithasbecome eveneasiertogauge justhow successful companies’customerservice outputshave been,andthere isaneverwiderrange of aspectsto the whole customerexperience thanjustmakingasale or fixingaproblem. Social Media In the simplestof definitions,‘The Social MediaBible’(Safko,2010)9 describedsocial mediaas“the mediawe use to be social”.Inmore detail,social mediacanbe definedasweb-basedservicesthat allowindividualsto:constructa publicor semi-publicprofile withinaboundedsystem,articulate a listof otheruserswithwhomtheyshare a connection,view andtraverse theirlistof connections and those made byotherswithinthe system(Boyd&Ellison,2007)10 .The nature may varyfrom site to site butit appearsas thoughthat isthe general essence of whatsocial mediawascreatedto provide forpeople.Businesseshave slightlydifferentmethodsandreasonsforusingsocial media but there are still alot of parallelstobe drawn. Accordingto TimGrahl (2015)11 , there are 6 maintypesof social media: 9 The Social Media Bible.Tactics,Tools and Strategies for Business Success.Safko,2010.Chapter 1, Page 3. 10 Social Network Sites: Definition,History and Scholarship.Journal of Computer-Mediated Communication. Boyd and Ellison,2007. 11 The 6 Types of Social Media.Tim Grahl,2015.
- 12. 12 1) Social Networks –Servicesthatallowyouto connectwithotherpeople of similarinterestsand backgrounds,suchas FacebookandLinkedIn. 2) MediaSharing– Servicesthatallowyoutouploadand share variousmediasuchas picturesand video,suchasYouTube. 3) Microblogging– Servicesthatfocusonshort updatesthatare pushedoutto anybodysubscribed to receive the updates,suchasTwitter. 4) Blog CommentsandForums – Online forumsthatallow memberstoholdconversationsby postingmessages,there are numerousexamplesof these. 5) Social News – Servicesthatallowpeopletopostvariousnewsitemsorlinkstooutside articlesand thenallowsitsusersto‘vote’onitems,suchas RedditandDiggit. 6) Bookmarkingsites –Servicesthatallow youtosave,organise andmanage linkstovarious websitesandresourcesaroundthe Internet,suchasDeliciousandStumbleUpon. For the purpose of thispaperand payingspecificattentiontoTesco the mainfocuswill be onthe firstfourof Grahl’scategories. Key Concepts
- 13. 13 One importantconceptto note isthat of word of mouth,and the belief thatbothpositiveand negative formscanhave greateffectoncompaniesina customerservice sense.Wordof mouth communicationcanbe definedas“informal communicationsdirectedatotherconsumersaboutthe ownership,usage orcharacteristicsof particulargoodsandservicesand/ortheirsellers(Westbrook 1987)12 . In the digital age electronicwordof mouthhas become increasinglyimportant,withthe Internetenabling“customerstoshare theiropinionson,andexperienceswith,goodsandservices witha multitude of otherconsumers”(Hennig-Thurauetal,2004)13 . As customers’trustincreases positive wordof mouthislikelytoincrease aboutthe organization.Equallythiscanworkinreverse and it’swell documentedthatthere isagreat importance aboutcustomerstellingothersof their dissatisfaction,aswell astheirsatisfaction.The worldof social mediahas meantthatwordof mouth can now spreadlike wildfireacrossthe Internetmakingitevenmore importantthanithas ever beenbefore. Customerjourneymappingisanothernotiontokeepinmindwhendiscussingcustomerexperience as a whole.Definedbythe GovernmentCommunicationService as“all the experiencesacustomer has withyourorganizationandthe emotional responsestheyprovoke”it’simportantforcompanies to considerthe whole experienceacustomercan have witha brandnot justthe purchase stage.This can helpthemtrulyprovide the bestpossible customerservice andcanopenotherdoorsinthe customerbrandrelationship. 12 Product/Consumption-Based Affective Responses and PostpurchaseProcesses.Journal of Marketing Research. Westbrook, 1987. Page 261. 13 Electronic Word-of-Mouth via Consumer Opinion Platforms:WhatMotivates Consumers to Articulate Themselves on the Internet. Journal of InteractiveMarketing., Volume 18, Issue1.Hennig-Thurau, Gwinner, Walsh & Gremler, 2004.Page 38.
- 14. 14 The ideaof usergeneratedcontentasa tool to provide agreat customerexperienceisalso somethingthatisbecomingmore andmore recognized.Companieshave realizedthatblog commentsandforumsare enablingcustomerstopublishinformationaboutthem, forthem, andif positive canhitall the rightnotesaboutpositive wordof mouthandinteraction. Customer Service and Social Media Social media’srise toprominence withinmodernculture haspavedthe wayforitto be a keycog in the wheel of customerservice outputsforanumberof reasons.Ithas providedmanymore opportunitiestobuildcloserrelationshipswithcustomershighlightedbySashi’s(2012)14 customer engagementcycle:connection,interaction,satisfaction,retention,commitmentandadvocacy. In manyrespectstheyare a match made in heavenandwere alwaysdestinedtobecome ingrained togetheraftersocial mediabecame sopopular.Aswritteninthe firstchapter,all companiesknow aboutthe importance of regularandquickcommunicationbetweenthemselvesandtheirconsumers and the vast majorityare nowcompetingwitheachother.However,thereismuchmore to customerservice below the surface of the plainandstraightforwardinteractionsthatare seenday to day.A greateremphasisisplaceduponthe entire experience acustomerhaswitha companyor brand,not justthat of initial purchase orsingularproblem.AccordingtoGeierhos(2011) 15 “social networkingsitesare the interfacebetweencustomerandcompany”,andthese interactionsare wide rangingand if positive hugelysatisfactoryforbothparties. 14 Customer Engagement, Buyer-Seller Relationships and Social Media.Management Decision,Volume 50, Issue2. Sashi,2012. 15 Customer Interaction 2.0: Adopting Social Media as Customer Service Channel.Journal of Advances in Information Technology. Volume 2, Number 4. Geierhos, 2011. Pages 222-233.
- 15. 15 The ideaof positive customerengagement, betweenboththe consumerandthe brandand also solelybetweenconsumers,willbe somethingthatwill be touchedonatgreatlengthinthispaper.At face value thismeansall interactionsbetweencompanyandconsumerthatare offeredbythe formerand chosenbythe latter(Greenberg,2014)16 . Howeverincorporatedwithsocial mediathis can reach newlevelsandconsumertoconsumerinteractioninanetworkenvironmenthasenabled knowledge tobe exchangedatan unprecedentedlevel.This,alongwithelements suchasonline recommendationsandreviewsbetweencustomers(Chen,Fay&Wang, 2011)17 is havinganimpact on companies’reputationsandsuccess. The constant interactionbetweenconsumersandbusinessesoversocial mediahasledtoa lotof intereston the subjectareaand customer-brandrelationshipsconsistentlydevelopovertime and throughmultiple service experiences(Bowden,2009)18 .Social mediasitesallow forthe creationof a brand communityandthisprovidesaplatformforcompaniestoengage theircustomers.Munizand O’Guinn(2001)19 describedabrand communityasa “specialized,non-geographicallybound community,basedona structuredsetof social relationshipsamongadmirersof abrand”.Whilstthis was before the daysof social mediathe definitionremainsrelevantandhighlightsjusthow strongan influencesocial mediaisonthe creationand maintainingof brandcommunities,somethingwhich tiesinwithcustomersatisfactionandloyalty. An online surveyof membersof agamingFacebook brandcommunity(Gummerus,Liljander, Wemanand Pihlstrom,2012)20 collected276 usable responsesandhighlightsthe value of brand 16 CRM Expert Paul Greenberg Defines Customer Engagement. Interview for HubSpot Blogs,2014. 17 The Role of Marketing in Social Media:How OnlineConsumer Reviews Evolve. Chen, Fay & Wang, 2011. 18 The Process of Customer Engagement: A Conceptual Framework. Journal of Marketing Theory and Practice. Bowden, 2009. 19 Brand Community. Journal of Consumer Research.Muniz & O’Guinn, 2001. Pages 412-432. 20 Customer Engagement in a Facebook Brand Community. Management Research Review, Volume 35, Issue9. Gummerus, Liljander,Weman & Pihlstrom,2012.
- 16. 16 communitiesonsocial media.Customersgainvalue throughthe varietyof practicesthatthey performbothonline andoffline,andhighercustomerengagementleadstohigherperceived benefits.Consumersjoiningabrandcommunityare likelydotosobecause of feelingsof loyaltyand beingcustomersof the brand,and inturn thiscreatesa heightenedsenseof customerloyaltythatis inthe longtermgoodfor the brand and profitable. Much has beenmade of social mediaandits influence incustomerservice butthe crux of the matter isthat both sidesof the coinwill wanttofeel like theyare gainingsomethingoutof it,as theyalways have withcustomer/companiesinteraction(Gwinneretal,1998)21 . The Retail Industry There are some notable examplesof studiesintothe use of social mediaforcustomerservice purposeswithinthe retail industry,all of whichbrilliantlyhighlightthe effectitcan have.One particularexample of anareastudiedisthatof luxurybrandsandthere are manyresearchreports that showbrandcommunitiesasworkingsuccessstories. Luxurycan be definedassomethingthatismore thannecessary(BeardenandEtzel,1982)22 and therefore isalreadydistinguishedasasomewhatniche market.A studyof Burberry(Phan,Thomas and Heine,2011)23 lookedindepthathow the companyhad transformeditsimage of thatas a 21 Relational Benefits in Services Industries:The Customer’s Perspective. Journal of the Academy of Marketing Science. Gwinner, Gremler & Bitner, 1998. 22 Reference Group Influence on Product and Brand PurchaseDecisions.Journal of Consumer Research. Bearden & Etzel, 1982. 23 Journal of Global Fashion Marketing:BridgingFashion and Marketing.Volume 2, Issue4. Phan, Thomas & Heine, 2011.
- 17. 17 “brand of ‘chavs’and Englishhooliganstoamajor trendsetter”throughsocial mediamarketing,as one of the firstluxurybrandstotrulyimmerse itselfinsocial media.The studydiscussedhow Burberryhad become the firstbrandof its kindtobroadcast itsfashionshowslive andin3D internationally(2010),andcame to the conclusionthatthroughdigital communicationsithad become recognisedandsuccessful worldwide.The Burberrybrandcommunityhadcome tothe fore and the interactionbetweenthe brandanditsconsumers,andsolelybetweenconsumers,was fuellingtheirsuccess. While originallyalotof brands were waryof delving intothe social mediaworld slowlybutsurely theyall began to regardit as a keytool in raisingcustomerinteractionandtherefore satisfaction. Anotherempirical studyintoluxuryfashionbrands(KimandKo,2012)24 lookedattwoof Burberry’s keycompetitors,Gucci andDolce and Gabbana andhow theyfollowedsuitinusingnew platformsto strengthenrelationshipswithcustomers.Thisparticularstudynoted Gucci’snew websunglasses, dedicatedtothe ‘generationof the young,fashionable anddigitallyliterate’accordingtotheir website,asevidence of theirapparentembracingof the modernworld.Evenmore interestingwas the reportscommentsonDolce and Gabbana’sattemptsat positive customerinteraction.Theytook the approach of invitingfashionbloggerstositinthe frontseatsof fashionblogsandposttheir viewsdirectlyfromthe ‘frontline’.Thisenabledcustomerstosee developments,analysisand feedbackthroughothercustomers’eyesandmeantthateditorsandmerchandiserswere cutout. Thisis a fantasticexample of how consumerinteractioninstigatedbythe branditself canendup havingpositive benefitsforthe company,asitallowedconsumerstobuildpurchase intentions straightaway. 24 Do Social Media Marketing Activities Enhance Customer Equity? An Empirical Study of Luxury Fashion Brands. Journal of Business Research.Volume 65, Issue10.Kim & Ko, 2012.
- 18. 18 To manage withinthe competitive worldof the retail industryall companieshave turnedtowards alternative methodsof communicationthroughsocial media,outlinedinanotherresearchpaper fromKimand Ko (2010)25 . That particularstudyclaimedtohave provedthe effectivenessof luxury brand social mediamarketingoncustomerrelationshipsandpurchase intentions. Anotherareaworthtouchingon againis the gamingindustry,brieflydiscussedearlier.This is arguablyone of the biggestexamplesof brandcommunities,withmillionsof people joiningtogether online.Whencorrectlymanaged,these onlinebrandcommunitiesof gamessuchasFIFA and Call of Duty can enhance brandloyaltytenfold.If sucha large communityiskeptsatisfiedandimpressedby the franchisesdigital managementtheyare guaranteedtokeepreturningyearonyear.Thishas greaterbenefitsthanjustdirectprofit,andit’sobviousfromagame suchas FIFA that the amountof advertisingthe game doesforitsownsocial mediachannelshelpsdrive trafficbacktothem. The retail industryisrife withcompetitionandsocial mediaactivityasdiscussedabove.The restof thispaperwill lookatTesco,one of the largestBritishretailersandhow theirsocial mediaoutputfor customerservice andsatisfactioncomparestootherswithinandoutof the same industry. 25 Impacts of Luxury Fashion Brand’s Social Media Marketingon Customer Relationships and Purchase Intention. Journal of Global Fashion Marketing:BridgingFashion and Marketing.Volume 1, Issue3.Kim & Ko, 2010.
- 19. 19 Methodology Much of the data, analysisanddefinitionsonsocial mediaforcustomerservice purposeswere collectedthroughsecondaryresearchof existingresearchreports,newspaperandmagazine articles content,journal articlesandalreadypublishedempirical studies.Withthe emergence of social mediaa lothas beenwritteninmanydifferentspheresaboutitandthere was no shortage of alreadycollatedinformationtogatherinassistingresearch.There hasalsobeenagreatdeal publishedonall facetsof customerservice anditsmanagement. Once put togetherall of the secondaryresearchwasstudiedand analysedtogaina widerknowledge on the subjectandarea and draw comparisonsor differenceswithdifferentelementsof customer service andsocial media. Tescowas chosenas the specificstudyforthe paperdue to itsvast online presence andalsothe fact that itis one of the largestBritishretailers.The companyisalwaysinthe publiceye andthatmakes it a verytopical subject.Tescohave numeroussocial mediapagesacrossall platformswhichmeantit was easyto independentlyassessthemandrelate thisbacktothe secondaryresearchdiscussedin the literature review. For the purpose of thispaperTim Grahl’sfirstfourtypesof social mediawere studied;social networks,mediasharing,microblogging,blogcommentsandforums.Thismeantthatspecific focus was paidto Tesco’sFacebookandTwitterpagesdue totheirstandingas theirbiggestplatformswith almostconstantinteraction.The researchof lookingintohow Tescousessocial mediawascarried out bylookingin-depthatall the platformsthat theyhave a presence onandpayinggreat detail to
- 20. 20 howtheyinteractand engage withcustomerstoelicitthe highestpossible level of customer satisfaction. The majorityof otherstudiesonsocial mediaandcustomerservice have primarilylooked at companiesrespondingtocomplaintsandthe time takentodoso, addressingcriticismandmanaging online communities.Forthe purpose of Tescoa similarpatternwastakentoresearchin orderto be able to compare and contrastthe companyeffectivelywithothercompetitorsandindustries. Social searchand analyticswebsiteTopsyhelpedtoprovide the maintool of research,enablinga quickand easysearchof Tesco’ssocial mediaaction. Once all the researchwascollectedandstudied withparticularattentionpaidtoTescothiswas able tofuel the bulkto the discussiononhow companiesuse social mediatoaidtheircustomerservice outputandincrease customersatisfaction.
- 21. 21 Tesco:A Case Study Brief History Tescois one the largestBritishretailersbasedinHertfordshire,justnorthof Londonwhere itwas originallyfounded.CreatedbyJackCohenin1919 where he soldsurplusarmyfoodout of wheelbarrow,theyoriginallythrivedoff stockinglarge amountsof foodandsellingit atlow prices,a mottowhichhas to a certaindegree alwaysappliedtothem.Fromthe late 1990’s throughthe early 2000’s Tesco beganto dominate asthe UK’s mostpopularsupermarketandtheycontinuedto extendthe brandoutto general retail where theirrootslaypurelyingrocery.In2008 theyhada store in everypostcode inthe UK,includingthe remotestpartsof Scotland,andnow theyemploy over500,000 people across12 countries. Theironline presence hascontinuallygrownsince Tesco.comwaslaunchedin2000 and has developed alongwithtechnological advances.Theynow operate numeroussocial mediaprofiles across a numberof platformsfromtheirsocial mediaunitbasedinCardiff.LedbyPeterThomas, Social MediaOperations Managertheyemployover30 people purelyforsocial mediapurposesand theyoperate acrossthree differentteams.The importance the companyplacesuponengaging positivelyviacustomersonlinecomesrightfromthe top,setup byformerCEO PhillipClarke who made it a prioritytodevelopstaff skillsandencourage positive interaction.Only13monthsafter launchingitssocial mediaresponseteamTescowere winnersof the CAA Excellence Awardfor‘Best Use of Social Media’showingjusthowmuchof an impacttheirstrategyhashad overthe last few years.
- 22. 22 In recenttimesTescohasencounteredsome difficultchallengesbothfinanciallyandsocially.Their firstdrop inprofitsfor20 yearswas announcedin2013 and thiswouldcontinue.2014 saw profits warningsandmajor staff changesandshare priceswere dramaticallyhamperedbythe revelationsin September2014 that theyhad overstatedtheirprofitsby£250 million.Thishasledtomany speculatingthattheirperiodof dominanceisoverandtheyhave losta large portionof their customerbase to lowerprice retailerslike Lidl andAldi. Thiscreatesan interestingdiscussionaboutjusthow importantthe use of social mediaisin customersatisfactionandretention,andif alot of the researchabove istobelievedusinganymean possible toincrease abrandcommunityandcustomerloyalty couldbe amajor positive. Use of Facebook Tescohas a huge followingonFacebookwiththeirmainaccounthavingover1’500’000 ‘likes’.They use thisin a numberof differentways,bothforplainandsimple customerservice issuesandalsoto engage andinteractwiththeircustomers.There isa ‘here tohelp’tabwhichcustomerscanfollow throughif theyare searchingforassistance withaparticularqueryor problem, whichisoftenakey reasonfor a consumervisitingacompany’sFacebookpage.Theyalsoencourage customerstoenter conversationwitheachotherthroughengagingvisualcontentandlive chatswithfoodandhealth experts,aswell ashavinga‘Real Food’app that offersinformationonseasonal recipes.Tescoalso offerscustomerswhointeractoverFacebookincentivesfordoingsothroughsuchmethodsas clubcardpointsinreturnfor sharingstories.Forexample,February2015 saw an exclusive‘Clubcard FlashSale’thatsaw customersgainboostsonsitessuchas Ticketmaster,iTunesandPizzaExpress.
- 23. 23 Tesco’sownclothingrange,F& F,also hasover 1,000,000 likesonFacebookandisupdateddaily withnews,latestfashionreleasesanduptodate offersforcustomers.Whilstthisisprimarilypurely for advertisingbenefitstheydoagaintry andinvite customerstointeract,aswell asoperatinghelp channelsforcustomerservice issues. Tesco’sFacebookpage hasa numberof applicationandgamesforpeople whofollow theirupdates. A couple of yearsago F & F launchedaninteractive fittingroomappwhichallowedcustomersto create 3D digital versionsof themselvesandtryon clothesbyuploadingphotosorbyentering measurements.Potential purchaserscouldthenuploadthe digitalizedimage totheirownFacebook page allowingall theirfriendsandfollowerstosee,anotherexample of notjustcustomertobrand connectionbutinteractionbetweenfellowconsumers. Use of Twitter Tesco’smain Twitteraccounthas nearly300,000 followersanditprofessestooffer‘UKnews, competitions,customercare,foodandlotsmore’.Theyalsoimpressonall followersthattheyare welcomingandencouraginginteractionwiththe hashtag#HappyToHelpandstrive toreplydirectly to all customerquestionsandcomplaints,withoutredirectingif possible. Awayfromtheirmainaccount Tescoalso run 19 otherTwitteraccountsfor theirvarious departments;TescoOffers,TescoMobile,TescoPLC,TescoFood,TescoMobile Care,TescoCareers, TescoBank, TescoClubcard,Beautyat Tesco,Tesco Living,TescoandSociety,TescoInternational Calling,TescoWines,TescoBabyClub,TescoPhone Shop,TescoPlayandTescoBooks – now known as @blinkbooks.Thisshowsnotonlythe extraordinarynumberof departmentsTescohasbutalso
- 24. 24 the great social mediaoutputtheypossess.Allof these differentaccountsoperate fordifferent purposesandithelpsTescoto distinguishwhatexactlytheircustomersare goingtobe enquiring about.Theyalsoall adoptvaryingstylesandtonestoengage withcustomers. It’snot justthe individual departmentsthathave theirownTwitterhandleseither.A numberof regional Tescostorestweetindependentlylookingtodirectlyhelptheirowncustomers.Againthis goesto showjusthowbig Tesco’snational social mediaoutputis. A searchcarriedout on Topsyshowedthatinthe 29 daysbetweenthe 18thof Februaryand18th of March 2015 Tescowas mentionedonTwitteratotal of 108,651 times.Obviouslyasignificantdegree of these mightnotrequire anyresponse fromTescothemselvesatall butisstill animpressivelyhigh number. Use of Youtube Withsome similaritytohowtheyuse Facebook,TescooperatestwomainYoutube channels,Tesco and TescoPLC, butalso hasa numberof smallerspecializedchannelssuchasTescoTechnologyand Beautyat Tesco.Theyuse these topostupdatesaboutvariousthingsrelatedtothe company, perhapsnewsabouta competitionorhow toget the bestout of theirspecial offers.Itisbyno meanstheirbiggestsocial mediaoutlaybutbyandlarge the accounts all have thousandsof subscribersandpostregularly.The Tescofoodandwineaccounthasover19,000 subscribersand uploadsvideosof certainrecipesandcooking techniquesthatcustomerscanwatch.These alsooften include celebritynamessuchasMatt Dawson,the ex-Englandrugbyinternationalturnedchef.This helpstobuildupthe brands image andcan be memorable forpotential customers.The nature of
- 25. 25 the commentsectiononYoutube alsoencouragesinteractionbetweencustomers,whichisof course a major benefittousingitasa social mediaplatform. Other Uses of Social Media WhilstTwitterandFacebookare Tesco’sbiggestsocial mediaplatformstheydoutilise some other channels.TheirGoogle+accounthasnearly90,000 followersandisusedto postconstantcontent posts,oftensimilartoFacebook,withengagingvisualimagesforconsumers.Theyalsohave almost 50,000 followers on Pintrest, which uses third party content rather thanjust promoting its own again. Thismeansit can be usedas a meansof linkingpeople backtoitsowne-commerce platformandin the processgetsthe brandevenmore exposure topotential consumersandtherefore profit. The Evidence and Impact Havingestablished justhowTescouse social mediaforcustomerservice purposesitsinterestingto lookat justhow successful theyare atusingtheirplatformstoincrease consumerengagementand subsequentlycustomersatisfaction.Inordertodo thisitis importanttolookcloserat the direct interactionTescomakesoversocial mediawithcustomersandwhatimpactthishas on the relationshipstheykeep. At face value Tesco’smainTwitteraccountisusedas a meansof helpingcustomersdealwithcertain problemstheyare facingandquestionstheymayhave.Inthe case of an enquiryoverapotential purchase the Twitterhandle will looktorespondandquicklyandeffectively.If concludedtoa
- 26. 26 successful endingthiscanhelpthe customerfindexactlywhattheyare lookingforandinturnhelp the businessthroughincreasingsales.Oftentheyreceive tweetswhere consumerswill expresstheir displeasureata certainproductor service instore.Inthese situationsTescowill looktorespondin the politestpossible wayand attempttoassistthe customers,forexample perhapshow theymight bestgo aboutgettinga refundor replacementforthe unsatisfactorypurchase.Thisinteractionisstill directlybetweenbusinessandconsumeryetisnotaimedat purelysalesandismore designedto appease unhappycustomersinatattemptto retaintheirbusinessandloyalty.Since joiningthe social mediasite inMarch 2011 Tesco haspostedover820,000 tweetsandthe majorityof these are inconversationwithcustomers.Thisequatesto onaverage over500 a day,whichlaysbare the evidence of the highamountof conversationstakingplace andthe wavesof messagestheyhave to deal with.ReferringbacktoChristopherRatcliff’saforementionedsurveythatshowedthat complainantsoftenexpectaresponse withinlessthan30 minutesitemphasizesjusthow toughan operationTescohave. Aside fromdirectinteractionwithcustomersTescoalsouse theirTwitterpage asa popularformof advertisingproductsandupcomingeventsthroughregularposts.Forinstance inthe buildupto Mother’sDay theymightchoose to postlinkstopopularcake recipeswithall the ingredients available instoresacrossthe country.It’snot directlypushingthemselvesinthe face of the customerslike aTV advertmightdobecause everybodyseeingtheirtweetsischoosingtodoso by followingthe account,andcan opt out at any stage.Thisshowsthe beautyof Microbloggingsites like TwitterforbusinessesandTescouse ittotheiradvantage verysuccessfully.Social mediacanact as anothertool inbuildinguprapportwithcustomersthroughpositiveinteractionsanditcan also playa role in drivingsalesandbusinessprofits.
- 27. 27 Thisis particularlynoticeable onthe specificdepartmentaccountsthatknow theyhave a following whoare alreadyinterestedintheirniche marketandcanup the amountof Tweetsaimedpurelyat theirmarket.Forexample,TescoMobile canenlightentheirfollowersonthe benefitstothe new SamsungGalaxyS6 phone and howtheycan pre-orderitthroughTescoMobile.Potentialconsumers will feel like theyare beingkeptinthe loopof the latestnews,releasesanddealsandthisindirect involvementhelpstokickoff ajourneyforthe customerand enablesthemtobuildalasting relationshipwithTescothatisnot justsolelypurchase related.The same appliestothe individual accounts of regional Tescostoreswhocan engage inevenmore personal interactionswiththeir customers. Tesco’suse of Facebookisalso of the more indirectvariety.Whilsttheystill operateasimilarbasic customerservice systembywhich theywilldotheirbesttohelptheircustomersanywaytheycan,it takesa greaterrole in the integrationof businesstoconsumerinteractionandcustomer engagementastouchedonabove.The methodsoutlinedearlierinthe sectionentitled‘Use of Facebook’todrive customerengagementare absolutelypivotal inenhancingcustomersatisfaction. Movingaway frommerelyhelpingcustomerswhentheywanthelping,Tescoisfollowingthe leadof manyother leadingusersof social mediainthe retail industrybyusingbrandtoconsumer interactionandalsocustomeroncustomerinteractiontodrive aTesco brandcommunityandraise customersatisfactionlevel.Byinvolving the customermore inall walksof the business,notjustthe final purchase stage,they’re tryingtomake customersfeelmore wantedandthattheyare truly valuedbythe business.Thisissomethingthatisalsofurtherachievedbymakingthe customerfeel valued. All of thisengagementandinteractiononsocial mediacanhave a profoundimpactuponbrand loyalty,whichisarguablymore importantinthe retail industrythananywhere else.Tescoare in
- 28. 28 constantcompetitionwithnumerousotherBritishsupermarkets,not justthe ‘bigfive’anymore.It has beenwell documentedinrecentyearsthanmanyof theircustomerbase are defectingtothe likesof Aldi andLidl,lowerbudgetsupermarketchains.Now,1in3 of Aldi or Lidl shoppersare considered tobe middle orupperclasscomparedto1 in10 justtwoyearsago, a social shiftthat Clive Black,retail analystatShore Capital, labelled “partof one of the biggestchange consumer attitudeswe’ve seeninageneration”.Couple thiswithmanypeople beingdisgruntledwithTescoin the newssince the account farce of 2014 andalso the droppinginprofitsandthe notionof ‘there is no suchthingas bad publicity’isseverelyrubbished.A studybyAndreassenandLindestad(1998)26 has suggestedthatcorporate image canhave an impact oncustomerloyalty,whichfurtherfuelsthe belief thatcompanieslike Tescomustworkhardto buildupa goodreputationamongstretail consumersinorderto encourage customers.Thisbringstolighta crucial debate.Justhow important are service levels?Are consumersnowhappytoforgogoodcustomerservice forlow prices? Tescoappear to be firmbelieversagainstthatthesis.If theycannotcompete withthe lowerbase of retailersona purelycostbasisthentheyhave tostrive to findwhere theirstrengthslie andhow theycan go about conveyingthesetobothcurrentcustomersinorderto maintaintheirbusinessand alsopotential customers.Throughcreatingandmanagingpositive relationshipswiththeircustomers oversocial mediathiscan enable Tescotohave theirveryownbrandcommunity.Havinga core of consumerswhowill remainbrandloyal tothe businesscantherefore helpsecuretheirlong-term businessstabilityinanage where eventhe largercorporationsmayfindthemselvesstruggling financially. 26 Customer Loyalty and Complex Services: The Impactof Corporate Image on Quality,Customer Satisfaction and Loyalty for Customers with VaryingDegrees of Service Expertise. International Journal of ServiceIndustry Management. Volume 9, Number 1. Andreassen & Lindestad,1998.
- 29. 29 Strengths, Weaknesses, Opportunities and Challenges The benefitsof usingsocial mediatodrive customerservice andincrease customerengagementand satisfactionhave nowbeendiscussedatlength.Tesco’ssubstantialsocial media outputworkingfor theminthe waysmentionedaboveprovidesthemwithgreatopportunitiesfor goodpublicityand successful brandtoconsumerinteractions. Of the large numberof tweetsTescoreceive eachweekitisestimatedthataround60% of them require aresponse.Fromthisstatistictheymanage toreplyto93% inan hour, anda hugely impressive86%injust 43 minutes.Thisshowshow Tesco are deliveringonwhatthe customers expectovertheirsocial mediachannels.Twokeysaspectstothese interactionsare the abilitytonot have to re-directcustomersandalsopersonableengagement(Drennan,2012)27 . Tescoare very goodat managingtomaintainall customerservice questionsonthe same platformthattheywere requestedonwhichkeepshassle downtoaminimumandoftenwill appease complainants. Secondly,theyadoptaveryfriendlytone throughoutall of the social mediainteractionswith customersthathas become a greatstrengthof the waytheyoperate.Obviouslyeachandevery contact withan individual customerrequiresadifferentapproachdependingonwhattheydesire or needbutTescoby and large offersaservice asclose as possible toa face-to-face inquiryinstore. Where othercompaniesmayfall downinrobust,systematicinteractions (orworse still re-directing to anothercustomerservice channel),Tescostandsatthe forefrontof positive andfriendly interaction.Thisisproductive onmore thanone level.Notonlydocustomersfeel valuedand important,the verynature of social mediameansthatsuccessful interactionscanbe seenbythe 27 How Tesco Leads the Way in Social Customer Service. Conversocial Blog.Drennan,2012.
- 30. 30 whole platformandpositivewordof mouthaboutTescoand theirmodel of actioncan spread.This cannot be underestimatedinbothkeepingcurrentcustomersandattractingnew ones. AnotheropportunityforTescopresentedbysocial mediahascome inthe formof blogcomments and forumsthatdrasticallyhelptoincrease interactionandengagementwithapositive outcomefor the business.Tesco’sFacebookpage isparticularlyprolificatpostingrecipes andsuggestionsand thisencouragesdebate tounfoldontheirsitesbetweenconsumers.Positiveinteractiononawider scale furtherenhancesthe creationof abrand community.Theyalsouse theirsocial mediaoutput to drum upinterestincompetitionsandfundraisingeventsthathelpstoentice new customers whilstalsomaintainingagoodpublicappearance tosociety.Mostrecentlytheyhave beenseen postingabouttheir‘Mum of the Year’ competitionandalsotheirRace forLife teamwhoare raising money forcharity. Thisis notto say that Tesco’ssocial mediaapproachhasn’tcome undercriticismandthere are perceivedweaknessestosucha friendlyattitude.InJanuary2013 theycame underfire aftera joke made followingthe horsemeatscandal asthey jokedtheywere “off tohitthe hay”. Thispromoted an outburstof complaintsandhighlightsthe fineline thathavingsuchajovial manneroversocial mediacan oftenbe takenthe wrongwayby otherusers.At the time the newshadbrokenthatTesco value burgerscontainedupto29% horsemeatandpublicopinionof the retailerwaslow soitseems such a nonchalanttweetwasmisguided.Thisshowsjusthow toughitcanbe to maintainasocial mediasite andthe companywill have internal guidelinesthatits employeesmustadhere toatall times.
- 31. 31 Social mediaasa customerservice tool issowidelyrecognisednow thatmanycompanieshave made it a keypart of theirbusinessmodel,includingTesco.A lookatTesco’s‘Social MediaColleague Guidelines’pinsdowntheircore valuesandkeybeliefsaboutsocial media.“Takingpartinsocial networksandonline communitiesoffersgreatbenefitstousasindividualsandasa businesswhen we use themeitherinternallyorexternally.The bestadvice istoapproachthe online worldinthe same way we dothe physical one –by usingsoundjudgmentandcommonsense.”Itgoesonto particularlyhighlightthe needtoremainaware thateverythingonthe Internetispublic,andthat the mediaandtheircompetitorsare constantlysearchingthe webforinformation,oftennegative, aboutthem.Guidelineslikethisjustgotoshow how importantTescoregardsitssocial media platformsandjustwhat itexpectsfromitsteamof employees.It’sbecome avaluable cogintheir whole businessoutputandistakenexceptionallyseriously,whichbringswithitincreasedchallenges of maintainingthe perfectimage tothe external world. Thisdoesalsomean,however,thatiscan require afairlysignificantfinancial outlay.Therefore itis of real importance thattheybalance the costagainstthe potential benefitsinordertocontinue to be successful.WithTescoemployingfull-timestaff toworkinsocial mediatheyface the challenge of alwaysstrivingtogetthe most outof whattheyare puttinginand constantlyworkingtosatisfytheir customers.Theyalsoface the trickyproblemof havingtoconsistentlykeepupandaheadof the rest of the industry,particularlyimportantbecauseof the dogeatdog worldof retaileroutlinedabove withtheirothercompetitors.Tescodoappearto be a stretchaheadof the rest of the ‘bigfive’ supermarketchainsintermsof social mediaoutput,andhave beensince itsinception,butthiscould easilychange.It’svital toremainaware of the challengespresentedbythe othersanddo everything intheirpowerto keeptheircustomerssatisfiedandencourage shoppersthattheyprovide the best complete experience,notjustinthe actionof purchase.
- 32. 32 Discussion The findingsof thispaperconfirmthatTesco isone of the largestplayersinthe worldof usingsocial mediaforcustomerservice purposes,employinganumberof successful platformswhichhelpthe companypositivelyinteractwithcustomers.The wide range of differenttoolsandapproachesthey employhelpstomaintainahighlevel of customersatisfactionwhichinturnencouragesgreater brand loyalty,twocrucial goalsforcompaniestomanage as outlinedbymanyauthorsinthe literature review. FirstlyTescointeractregularlywithcustomers oversocial mediawithimpressivespeedtohelpthem withday-to-dayqueries,requestsandproblems.Thismeetsexactlywhatcustomersexpectfrom usingsocial mediatomake contact withretailers,withthe 93% successrate of replyinginunderan hour more thansatisfyingChristopherRatcliff’sexpectationsinhisEConsultancyexperiment.This compliance withthe customers’expectationstiesinwithMaslow’sbelief thatcustomersatisfaction can be outlinedasafulfilment,inthiscase the fulfillingof anobligationtohelpcustomersasbestas theycan, as soonas theycan. In turn thissimple procedurehelpscreate apositive online formof wordof mouthfor the companyas it getspeople talkingaboutthe brandina goodlight.Similar to howChevalierandMayzlin’s (2006)28 studyshowshow online bookreviewsonsiteslikeAmazoncan increase sales,positivediscussionaboutTescoonline canhelptoincrease the numberof customers choosingtoshop instore.Theywill alsobe pro-active oversocial mediawiththeirinteractionsin addressingcriticismtohelpachievethe same goal.Bothpositiveandnegative wordof mouthisa crucial factor in a successful social mediaoutputasshowninresearchof the subjectarea andfrom lookingatTesco itis clearthat theytoocan relyheavilyonitattimes. 28 The Effect of Word of Mouth on Sales:OnlineBook Reviews.Chevalier & Mayzlin,2006.
- 33. 33 Tescoalso use social mediaasa methodof creatinga brandcommunity,bywhere customerscan interactbothwiththe brand and otherconsumerstogreat benefitforbothparties.Thisdraws similaritieswithotherindustriesandareasof the retail industryasshowninthe literature review. Much like Phan,Thomasand Heine’sreview of Burberryshows,thislookatTescooutlinesall the interactionsthattake place underthe surface of the company’ssocial mediaplatforms.AsBowden wrote,customerrelationshipsare builtoveranextendedperiodof time,notjustduringone simple interaction.The competitions,appsandgames,prizesandspecial offersthatTescoparadesover social mediaall encouragestheircustomerstointeracttogetherandencourage greatbrandloyalty withinthe createdcommunity. ThishelpsTescoto gaina betterideaof the expectedbehavioursof theircustomerstowards themselves,definedascustomerengagementbehaviours(VanDoornetal,2010)29 . VanDoorn went on to describe key‘motivational drivers’thatcustomerselicitafterpurchase thatincluded recommendations,helpingothercustomers,bloggingandwritingreviews.All of these canbe monitoredbyTesco’sextensive social mediaoutputandusedtotheiradvantage,highlightinghow theyare doingexactlywhatauthorssuggestinthe subjectareawouldcreate the mostbeneficial outcome. Anotherelementof Tesco’scustomertobrand,andconsumerto consumer,interactionisthatof usergeneratedcontent,somethingthathasbeendiscussedatlengthbyscholarsonthe subjectof maximizingonlinepotential.Consumersinteractingamongstthemselvesonthe officialTescosocial mediaplatformscanact as a formof advertisingforthe company,havingthe effectof encouraging 29 Customer Engagement Behaviour:Theoretical Foundations and Research Directions.Journal of Service Research. Van Doorn, Lemon, Mittal, Pick,Pirner & Verhoef, 2010.
- 34. 34 furtherpurchasesandnewbusinessopportunities.Thishasbeendescribedasco-creation(Sawhney, Verona,Prandelli,2005)30 and furthertoucheduponas co-createdvalue byHollebeek(2011)31 as a level of value createdbycustomeroverinteractive activities.Inexactlythe same wayasthe luxury brandsexample Tescousestoolssuchasblogand commentssectionstocreate usergenerated contentwhichcan have a positive impactupontheircompanyandbusiness.It’snot uncommonin the modernworldbutas the detailedanalysisof Tescoshows,theycertainlydoitbetterthantheir othermaincompetitors. It isworth consideringthe weaknessesof the methodologyinanodto any future researchonthe wayTesco and indeed otherretailersandsupermarketchainsuse social mediaforcustomerservice. There isdefinitelyaresearchgapinthe retail industrywherecustomers,bothcurrentandpotential are concerned.The bestwayto gauge how importantissueslike brandloyaltyare wouldbe to questionconsumersonhowtheyfeelaboutitandwhetherornot theyregardthemselvesbrand loyal toa specificcompany.Mostof the researchin the subjectareaiseitherspeculatingorfocused on concrete issueslike complaintsandcriticisminteractions.Itisalsohardto ascertainhow manyof the responsesTescogive totheircustomersoversocial mediaare deemedassatisfactorybythose whosendthem.However,the contentanalysisof theiractivitiesdoesallow foragroundlevel of researchand hasbeenmore than enoughtogainan answerto the researchquestionof how companiesuse social mediatoincrease customerengagementandsatisfaction. 30 Collaboratingto Create: The Internet as a Platformfor Customer Engagement in Product Innovation.Journa l of InteractiveMarketing, Volume 19, Issue4.Sawhney, Verona & Prandelli,2005. 31 ExploringCustomer Brand Engagement: Definition and Themes. Journal of Strategic Marketing, Volume 19, Issue7, 2011.Hollebeek, 2011.
- 35. 35 Conclusion The worldof customerservice hasbeenchangedbeyondrecognitionwiththe increaseinnew media overthe last decade.Currentfiguressuggestthat72% of Internetusersare active onsocial media and that of that amount71% of users’access social mediafromtheirphoneswhichmeans interactionsbetweencompaniesandconsumers are happeningconstantly.While Facebookand Twitterburstontothe scene inthe mid-2000s, anothernew wave of platformshasemergedinthe lastcouple of years.Instagramnow boastsover150 millionuserscomparedtojusta solitarymillion uponlaunch in 2010, and 70% of brands now use Google+whichrecordeda 33% growthfrom June 2012 to March 2013. The stats all pointtowardsthe use of social mediaforcustomerservice ever increasing. Social mediahasalteredthe boundariestowhatcustomershave come toexpectfromcompaniesin termsof customerservice.Adequate customerservice isthe bare minimumconsumersexpect, outlinedbyZeithmal,BerryandParasuraman(1993)32 as one of the three service expectationsalong withdesiredandpredictedservice.Withthe increase insocial mediaforcustomerservice purposes the measure of adequate service hasrisenandcompaniesacrossthe globe have toprovide strong customerservice acrossall social mediaplatformsinordertoremaincompetitive andsuccessful. As discussedinthispaperthere are anumberof differentwaysthatcompaniesutilizetheirsocial mediaoutputtoensure a highlevel of customersatisfaction.Naturallytheycontinue tooffer customerservice channelswhichdeal withproblemsand queries,andsocial mediaenablesthese interactionstotake place at muchhigherspeeds.Thismeanscustomerscanbe satisfiedquickerand 32 The Nature and Determinants of Customer Expectations of Service. Journal of the Academy of Marketing Science. Zeithmal, Berry & Parasuraman,1993.
- 36. 36 easierthaneverbefore oncustomerservice enquiries. There are manyothertactics thatcan be employedtoincrease customersatisfactionandcompaniesare usingsocial mediatocreate greater customerengagementwiththeirbrand.Thiscanbe achievedthroughall the majorsocial media platforms,notablyviablogcommentsandforumswhere consumertoconsumerinteractioncanbe facilitatedbythe companyitself.The creationof brandcommunitiesthroughthisalsoencourages brand loyalty,bywhich aconsumerwill feelparticularlyvaluedbyaspecificcompanyandinclinedto offerthemrepeatbusiness. Tesco,arguablyBritain’sbiggestsupermarketchainandone of the largestretailers,hasaparticularly prolificsocial mediaoutput.Theirawardwinningsetupisknownall overthe worldandall of their accounts have accruedlarge numbersof followerswhichplayhosttocountlesscompanyto customerinteractions.Tescohave agreatsuccessrate inrespondingtocomplaintsoversocial media and thistactic can helptoappease disgruntledcustomersandthusincrease customersatisfaction indefinitely.Howeveritiswhere customerengagementcomesinthatTescoreallystrivesfor excellence andreachesnewlevelsof customersatisfaction.One of the bestexamplesof thisistheir jointventure withEnotriathe winemaker.IncreatingThe Social Wine hub,anappon theirFacebook page,Tescocanvassedopinionsonwine,specificallythe name of apotential new wineandthe subsequentshape of the bottle.Afterthousandsof page views,entriesandvotes,Enaleni’sDream was createdandwithinmonthswasbeingsoldsuccessfullyonTesco’sshelves.Thisis abrilliant example of the kindof customerengagementthatTesco’sencouragesontheirsocial media platformsandinturn the brillianteffectsitcanhave on customersatisfaction.Increasedcustomer satisfactioncanhave significantbenefitsforthe companyandnotjustin termsof immediate profit, inthe formof positive wordof mouthandrecommendationsaswell asincreasedbrandloyalty.
- 37. 37 Tescoare obviouslynotalone insuchinnovation. All overthe worldcompaniesare comingupwith newideastoaid customerservice andincrease customersatisfaction.Whatdoesthe future hold? It’sevidentthatthere will be nolettingupinthe increase of social mediause frombothcompanies and consumers,particularlyastechnologycontinuesonitssharpupwardcurve.Incompetitive industriesandintimesof everincreasingfinancial prudence companiesare havingtofightharder than evertoimpresspotential customersandcontinue tosatisfytheir currentones.There canbe no doubtthat competentandsmoothrunningsocial mediaplatformsforcustomerservice are absolutelyessential inthe modernworld,especiallyinthe retail industry.Customerservice isa completelydifferentpropositioninthe 21st Centuryandone that requiresagreat deal of time,work and money,butitis one thatcan reapunquantifiable benefits.
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