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Social Listening is the process of monitoring and analyzing online conversations about a brand, product, service, or industry. It can be used to identify opportunities, threats, and trends, and to gauge public sentiment. Social Listening can be done manually or with the help of social media monitoring tools.

If your company has never done Social Listening, it’s not too late to start.  Case in point. In 2015, J.C. Penney had a major sales slump after the company made a number of changes to its marketing and merchandising strategy. The company was not listening to its customers and did not realize that they were unhappy with the changes.  J.C. Penney was forced to reverse course and make changes to its strategy. 

But JC Penney did not learn its lesson.  For decades, JCPenney’s failed to really listen and understand what their customers wanted.  That kept hurting their bottom line and it ultimately led the company to file for bankruptcy protection in May 2020.  It seemed that JCPenney would become just one more big box retailer destined to close its doors.  But that didn’t happen.  Instead, the 800-store retailer took a number of steps to improve its Social Listening in order to give customers what they want.  JCPenney began:

1. using social media monitoring tools to track mentions of the company and its products. This allowed them to identify customer sentiment and identify potential issues that needed to be addressed.
2. responding to customer comments and questions in a timely and helpful manner. This showed customers that JCPenney was listening to them and cared about their feedback.
3. began using social media to gather customer feedback on new products and services. This allowed them to get feedback from customers early on and make changes before products or services were launched.
4. began using social media to promote customer loyalty programs and rewards, showing customers that they value their customers and want to keep them coming back.

JCPenney’s efforts to improve its Social Listening was successful. The company has experienced an increase in customer satisfaction and loyalty, and has been able to identify and address potential issues before they become major problems.

Social Listening Is Used by Many Industries

But JCPenney is not the only company that has used Social Listening to help turn around a bad situation.  In 2012, Krispy Kreme was struggling. Sales were declining, and the company was losing market share to competitors. In an effort to turn things around, Krispy Kreme began using Social Listening to better understand its customers and what they wanted. Through Social Listening, they started identifying customer pain points, such as long lines and inconsistent product quality.  Krispy Kreme then took steps to address these pain points.  They opened more stores with shorter lines and invested in new equipment to improve product quality. As a result of these efforts, Krispy Kreme’s sales began to rebound, and the company regained market share.

In the last 10 years since they started Social Listening, Krispy Kreme has grown significantly. In 2013, the company had 1,400 stores in 30 countries. As of 2023, Krispy Kreme now has over 1,800 stores in 40 countries. The company’s revenue also grew 33%, from $1.2 billion in 2013 to $1.6 billion in 2023.  Krispy Kreme’s growth has been driven by a number of factors, including a focus on innovation. By listening to their customers, they introduced a number of new products in recent years, including new flavors of doughnuts and coffee.  They also expanded internationally, opening new stores in a number of countries including China, India, and Mexico.  Most importantly, they increased their focus on customer service. Krispy Kreme has been praised for its customer service, which has helped to build loyalty among its customers.

In 2014, Starbucks used Social Listening to improve their business. They started identifying customer trends and preferences. Using Social Listening, they learned about their customers’ preferences for different types of coffee, food, and drinks. Starbucks also used Social Listening to identify customer pain points, such as long wait times and difficulty finding parking. As a result of these efforts, Starbucks was able to make changes to its business that improved the customer experience.  They opened more drive-thru locations and added more self-service kiosks. As a result of these changes, Starbucks’ customer satisfaction improved, and the company’s sales increased.

Nike is another company that began using Social Listening many years ago to put their fingers on the pulse of their customers.  They started Social Listening to track customer sentiment, identify trends, and gather feedback.  They used this information to improve their products, create marketing campaigns that spoke to specific segments of their audience, and better their customer service. For example, Nike identified customer pain points such as difficulty finding the right size or color of a product. They then took steps to address these pain points, such as adding more sizes and colors to their product lines.  As a result of these efforts, Nike has been able to improve its customer satisfaction and increase sales.

Social Listening by Service Industries

But it is not just retailers and restaurants making good use of Social Listening to improve.  Other companies in service-driven industries have embraced Social Listening, too.  Last week, we mentioned how United Airlines was involved in a number of high-profile incidents that damaged its reputation back in 2017-2018. In one incident, a passenger was dragged off a plane by security after refusing to give up his seat. In another incident, a dog was killed after being placed in an overhead bin. As a result of these incidents, United Airlines’ stock price fell and its customer satisfaction ratings plummeted.

In an effort to turn things around, United Airlines began using Social Listening to better understand what their customers wanted. The company used Social Listening to identify customer pain points, such as a lack of transparency and poor customer service experiences.  They then took steps to address these pain points, such as creating a new customer service department and being more transparent about their policies.  In turn, United Airlines’ stock price began to recover and its customer satisfaction ratings rose.

American Airlines is another airline that used Social Listening to improve its business. In 2016, American Airlines was involved in a number of delays and cancellations that caused customer frustration. In an effort to turn things around, American Airlines began using Social Listening to better understand what customers wanted. Pain points included long wait times and difficulty finding information about their flights. American Airlines then took steps to address these issues such as hiring more customer service agents and making it easier for customers to get flight information online.  As a result of these efforts, American Airlines’ customer satisfaction ratings improved.

In the financial sector, Bank of America is a financial services company that used Social Listening to improve its customer service. In 2016, Bank of America was experiencing a number of customer service issues, such as long wait times and difficulty resolving problems. In an effort to turn things around, Bank of America began using Social Listening to better understand what their customers wanted. They then took steps to address these pain points, such as hiring more customer service agents and making it easier for customers to solve problems. As a result of these efforts, Bank of America’s customer satisfaction ratings improved.

In the real estate sector, there are a number of real estate companies that have used Social Listening to improve their service or product or turn around their company. Zillow used Social Listening to identify trends in the housing market. They used this information to improve their website and make it easier for users to find homes. For example, Zillow now uses Social Listening to identify neighborhoods that are trending, and then it highlights those neighborhoods on its website. As a result of these efforts, Zillow has been able to increase its traffic and grow its business.

Trulia is another real estate website that is using Social Listening to improve its service. They use Social Listening to identify customer pain points, such as difficulty finding homes that meet their needs. Trulia then takes steps to address these pain points, such as adding more filters to its search engine. As a result of these efforts, Trulia has been able to improve its customer satisfaction and increase its sales.

Realogy Holdings Corp. — a real estate company that owns a number of brands, including Coldwell Banker, Century 21, and Sotheby’s International Realty — uses Social Listening to identify trends in the housing market as well as customer pain points. They’ve used this information to improve their marketing campaigns and customer service. They now identify neighborhoods that are trending, and then target their marketing campaigns to those neighborhoods. As a result of these efforts, Realogy has been able to increase its sales and improve its customer satisfaction.

These are just a few examples of companies that have used Social Listening to either turn around or grow their businesses. By listening to their customers, they were able to identify weaknesses and customer frustrations, and make changes that improved the customer experience. This boosted sales, improved customer satisfaction, and boosted the bottom line.

Raising a Social Reputation Score

Social Listening is a good start, but it is just a start.  That helps determine where a particular business stands.  The next step is to see how that measures up to the rest of the industry.  For that, it helps to know the company’s social reputation score.  A good social reputation score is one that indicates that a company or individual is well-respected and has a positive image online. There is no one-size-fits-all answer to what constitutes a good social reputation score, as it will vary depending on the industry and the company’s or individual’s target audience. However, in general, a good social reputation score is one that is above the industry average.

For example, a company in the financial services industry might have a good social reputation score if it has a score of 600 or higher, while a company in the retail industry might have a good social reputation score if it has a score of 700 or higher.

There are a number of factors that can contribute to a good social reputation score, including:

• Positive reviews and feedback from customers
• Active engagement on social media
• A strong online presence
• A commitment to customer service
• A history of ethical business practices

Companies can improve their social reputation scores by focusing on these factors. By taking the time to build a positive online presence, they can increase their chances of success in the digital age.  Here are some additional tips for improving a social reputation score:

• Respond to customer feedback promptly and professionally.
• Resolve customer complaints quickly and fairly.
• Be transparent about your business practices.
• Give back to the community.
• Support causes that your customers care about.
• Be authentic and genuine in your online interactions.

By following these tips, you can build a strong social reputation that will help you attract new customers and grow your business.

A company’s reputation says everything about who they are and what they are doing.  Listen carefully and then do everything possible to improve what’s said.  That’s a sure fire way to build a company that will not only succeed but last.

Quote of the Week

“Your reputation is what people say about you when you’re not in the room.”
Dale Carnegie

© 2023, Keren Peters-Atkinson. All rights reserved.