Social Media and a New Era of Consumer Empowerment
S
ince the days of Adam Smith, we have operated
But since then, the digital revolution has brought about
under the assumption that capitalism and democ-
dramatic changes — and signs abound that a true democrati-
that empowers consumers to vote with their dollars is one
of social media, consumers of goods, services, and ideas have
racy always walk hand-in-hand. After all, a system
that ensures their needs are met. A free market inexorably ties
sellers’ interests to those of their buyers. When customers can
simply take their business across the street, companies either exceed value expectations or cede market share to someone who can.
Until recently, however, capitalism’s reality was more
autocratic. Consider the lone consumer who had a sub-par
buying experience. Ten years ago, there was no way to communicate the resulting dissatisfaction in a manner that would
zation of the free market system is underway. With the advent
been provided a force multiplier that has tilted the balance of
power in their favor. In the Information Age, ordinary consumers are visible, organized, and able to virally affect buying decisions with expansive reach and fiber-optic speed. That
results in marketplace influences that are increasingly of the
people, by the people, and for the people. Simply put, consumers have taken control of the narrative — and they are using it to exercise power as never before.
In just the past six months, we have seen consumers force
truly impact the purveyor of poor service. There was the
embarrassing reversals of Netflix’s decision to split its stream-
of which provided a venue large enough to build real strength
to attach a five dollar monthly fee to debit card usage; and
backyard fence, a dinner party, or the kids’ soccer games; none
democratic is that?
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Spring 2012
in numbers. That meant the little guy had no real voice. How
ing and DVD-by-mail services; Bank of America’s decision Verizon’s decision to charge a two dollar fee for paying a bill
via phone or Internet. We have seen them force Apple® and
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Victoria’s Secret to review supply chain policies after reports
online conversations that are impacting perceptions about
band together to affect changes in public policy on business
that match the visibility advantage they enjoy in traditional
of poor working conditions overseas. We have even seen them issues ranging from food safety to the environment.
In each of these cases, the reforms and reputational dam-
their products and services — and they need to do so in ways marketing venues.
Look at Southwest Airlines, whose blog actually encour-
age consumers wrought were the direct result of coordinated
ages customers to air issues or problems, thus containing them
leveraged blogs, Facebook, Twitter, YouTube, and countless
recognized and addressed. Look at Marriott, which trolls the
online efforts that swelled the ranks of the dissatisfied. They
other social media platforms to spread the word and inspire
action aimed at changing corporate behavior. At the same time, they took steps to ensure that their messages could be found amid all the clutter in the online space. With the
optimized content that search engines crave, they dominated
the portals by which more Americans access information than any other.
Consumers didn’t — and still don’t — possess the tra-
ditional marketing muscle that Corporate America employs
so adeptly. But there was no significant investment in print,
radio, or TV advertising because one simply wasn’t needed.
in a semi-controlled environment where they can be quickly
Twitter landscape for reports of customer service issues so that they can be rectified before they go viral (and often before
the tweeter even checks out of the hotel). Look at CocaCola, whose Facebook page boasts 38.3 million fans who act as brand ambassadors that can help quell criticism from
within consumers’ own ranks. Look at the countless companies that now rightly view Google as today’s Yellow Pages and
devise Search Engine Optimization (SEO) and Marketing
(SEM) campaigns that help them win the online race to be found.
All of the above not only represent industry standards in
Consumers recognize that the digital space represents the
Digital Age customer engagement; they represent strategies
power of social media, they told the story while the companies
panies and industries — regardless of size, budgets, or audi-
high ground in the battle for hearts and minds. Through the they targeted followed it. From such defensive public posi-
tions, it was all but useless for the companies to do anything but bow to consumers’ demands.
All of this supports the conclusion that companies need
to think differently about customer engagement strategies moving forward. They need to engage the all-important
that can be scaled and employed across a full range of comence demographics. More important, they provide concrete evidence that consumers need not exclusively dominate the
digital space if companies recognize that they too can take part in — and wield some measure of control over — the conversation as partners with their customers.
Social media has democratized the free market system in
ways that even Adam Smith could never have imagined. The
digital era is one where consumers can influence, organize, and act in their own self-interest with greater skill and efficiency
than ever before. The sooner that companies adapt to the new, level playing field, the greater the chances that they will thrive under the capitalist paradigm. CCN
Richard S. Levick, Esq., president and CEO of Levick Strategic
Communications, represents countries and companies in the highest-stakes global communications matters — from the Wall
Street crisis and the Gulf oil spill to Guantanamo Bay and the Catholic Church. Levick was honored for the past three years on NACD Directorship’s prestigious list of “The 100 Most Influential People in the Boardroom” and has been named to
multiple professional Halls of Fame for lifetime achievement. He
is the co-author of three books including The Communicators:
Spring 2012
Leadership in the Age of Crisis and is a regular commentator on television, in print, and on the most widely read business Richard S. Levick, Esq.
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blogs. Follow Richard Levick on Twitter @richardlevick.
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