Crowd Control: Utilities and Social Media
No matter what your industry, social media is the Great Unknown. Even innovative businesses, with full teams devoted to managing content for platforms like Facebook, Twitter, and YouTube, struggle to mine and assess the content that emerges from said platforms. Still, social media is a proven barometer of consumer sentiment. Any company concerned about its reputation should be concerned about what users say online.

To illustrate, imagine the following scenario: a rate increase at a utilities company ignites angry reactions, which get posted online in a matter of hours. The response catches the attention of traditional media, whose coverage foments additional vitriol. The ultimate result is a plunge in satisfaction ratings. Whereas disappointed customers might, in the past, have written letters or grumbled privately about an increase in costs, their reactions are now a part of the public discourse –and a damaging one, at that.

This story reflects the experiences of many companies, but it can be avoided through the use of social media monitoring. With an eye on social networks, a provider can quickly latch onto and address any indication that users are displeased with its policies. Some negative sentiment may be altogether neutralized, and any unavoidable backlash can be effectively managed. The bottom line is that listening to customers on social networks is nearly as important as using social networks to talk to them. By establishing dialogue through social media, companies effectively create a feedback loop that supports reputation-management and customer satisfaction as well as marketing objectives.

Connecting to Customers
Two-way communication is valuable to utilities companies in more ways than one. A feedback loop between providers and customers is the principle behind Smart Grid, which uses a network of sensing, measurement and control devices to enable both providers and users to monitor energy consumption. Customers linked to a Smart Grid can use their Smart Meter to track how they personally use energy, when and at what rate, and they can then self-regulate their energy use to maximize budget efficiency. In theory, satisfaction levels rise as personal energy costs drop, and providers see less strain on the grid as demand evens out.

To introduce customers to the concept of Smart Grid, to track its efficacy post-implementation, or to better understand energy consumption habits writ large, utilities providers can use an online research community. Online communities are a cost-effective way to combine quantitative and qualitative insight and engage users in dialogue. Since providers can reach out and receive instant feedback on any number or variety of topics, they have a constant source of insight to support their strategic approaches to customer service and operations. This insight is crucial as utilities navigate the introduction of a new technology or any other concept (including changes in rates or service availability). They can suss out how their users will respond and adjust their tactics accordingly.

Conclusions
No matter how tremendous a technological development or how vital a change in the business model, the best companies will attend to customer response before and after they initiate a change. Before they leap to introduce a concept, providers will conduct qualitative and quantitative research to gauge how it will be received and refine their strategy. After they implement a well-researched plan, those same providers will keep an eye out for any signs of discontent.

Social media monitoring is the latest innovation in market research designed to help companies monitor and address responses to their actions. Online communities offer a way to “look before leaping,” refine ideas prior to their introduction, and minimize the risk of negative reactions. Ways of reaching out and conveying information to customers have been in place for a long time. These research tools offer an opportunity to receive feedback from customers and thereby create services and make changes more attuned to their desires. By staying connected to their customers, businesses can improve satisfaction and performance –and thereby stay ahead of the game, whether that means coping with change or increasing competition. In line with our corporate mission, FGI Research is on the forefront of developing research methods to help companies do both.

To put it in perspective, the worldwide increase in women’s income will be greater than the economic expansion of China and India combined during the same period. Along with this spike in earning power, women will continue to drive spending across major categories. In the United States, women control almost three quarters (72%) of all dollars spent. So, all of this earning and purchasing power clearly begs the question “what do these women want?!?” Recent research provides some very actionable answers and advice:

• They will spend more for goods and services of higher quality (65% food, 57% clothing, 56% facial skin care)
• They demand products that deliver: time savings, fulfilling experiences, and emotional benefits
• They give examples of brands that consistently meet their needs: Coach, Crème de la Mer, Adidas, Apple and Nike

Our advice: keep your research sharply focused on the wants and needs of women as they related to your specific products and services. Otherwise, you may find yourself on the outside looking in on the very people who control the majority of every dollar that is spent.

David Wilson
CEO
FGI Research