Thursday, November 13, 2008

Social Media's Impact on Brand Image

Neal had a bad experience with returning a pair of defective running shoes to Nike. He decided to write about it and tell others about his disappointing experience. Just happens that Neal writes for The Wall Street Journal and millions of people can read his article in print and online.

Today, we are all broadcasters. Sure, we've always had our circle of friends to share experiences with about a product, service, or company, but with the internet, our circle has significantly grown. Whether it takes the form of a simple status update on Facebook ("I am waiting in line at ___ and they are so slow!"), a product review on Amazon ("I had trouble with ___ and it was actually hard to use"), or a long, detailed blog post, all of our experiences with brands now reach a much wider audience than even 10 years ago.

Nike may have gotten unlucky with Neal, but had they known he'd write about his poor experience for everyone to read, they would have treated the situation differently. Since we all have the potential to talk about our brand experiences to an audience, everyone becomes a potential misstep or opportunity for a company. Keeping in mind Long Tail principles, even though you may only have 50 friends to broadcast to (what damage can that really do?), when you add up all the small circles of influence, it can really become a powerful force. So, if you are a person with a large sphere of influence like Neal or you are an average social media user, every time a company interacts with a customer, there is very real potential for it to be discussed in the social media realm (and become a permanent mark on your brand) . How should social media effect the way companies now look at customer service, return policies and maintaining brand image?