Research is showing senior communications executives are worrying more about perceptions of their respective industries, not just their own companies or products. In fact 51 percent of senior corporate communications professionals believe consumer attitudes towards their industry impacts their own jobs, according to a recent survey conducted by Spencer Stuart and my agency, Weber Shandwick. That’s higher than other forces such as the economy or product quality issues. And the companies that seem most sensitive to industry perceptions are those that have divisions or product lines that are both B2B and B2C. Apparently, the firms with the widest variety of stakeholders have the most to lose from negative public opinion.
Meanwhile, of 15 business or market forces expected to influence corporate communications budgets over the next year, this same study finds social media trends comes out on top, followed by the state of the global economy, and the globalization of the business.
Taken together, it looks to me like we should ensure we are doing a good job of monitoring conversations and trends on social media (and traditional) channels, not just about our own companies and brands, but about our industry as a whole. We need to recognize the actions of our peers can significantly impact our own companies’ reputations.
Fred Reichard, bestselling author of The Loyalty Effect, says in his follow-on book this year, The Ultimate Question 2.0, that the pursuit of what he calls “bad profits” by industries too focused on short term earnings than on the loyalty of their customers and other stakeholders can soon lead to new regulations or restrictions for everyone in that industry. Thing about how resentment toward financial institutions after the 2008 recession led to legislation to protect consumers from predatory practices. Or consider how the Affordable Care Act is a result, in part, of a lack of pricing transparency between insurers and healthcare providers, and of how difficult it has become for so many people who need coverage to get it. “Customers must conclude that businesspeople lie awake nights thinking up new ways to hustle them.”
But let’s turn this on its head. Being in tune with what is frustrating your customers in your industry is one of the best ways for marketers to spot great business opportunities. It worked for Salesforce, whose motto, No Software, spoke to their commitment to freeing enterprise software customers from license and maintenance contracts in favor of what was then a pioneering cloud computing model. The message was that customers stayed with Salesforce out of loyalty, not just contractual obligation. Their business was driven by customers’ negative perceptions of their enterprise software industry peers, which opened up an opportunity for a new way of doing thing, just as it has for B2C brands like Zappos and Apple Retail Stores.
Here’s to more social media listening and responding to what really matters to customers and prospects, and less talking just to talk.