Tuesday, 23 September 2014

Restaurant Hell - unethical use of Social Technology

Image taken from Amy's Baking Company Facebook page

Amy's Baking Company Bakery Boutique and Bistro
You've probably heard of this organisation. But if you haven't, and you've been living under a rock, that is completely a-okay, I will fill you in. In 2013, this restaurant was featured on the popular Tv Show, Kitchen Nightmares, you know the show with crazy Gordon Ramsey? This couple actually caused Ramsey to walk off set, which is saying something given Ramsey's resilient, tough and somewhat scary persona. To set the context for you even deeper, Amy and Samy Bouzaglo are the owners of this Bakery and Bistro. After this episode was aired, an extreme outpour of criticism was released from fans and viewers onto the restaurant's Facebook page, as well as social sites such as Reddit and Yelp. These comments focused on the horrible and completely unethical way the couple treated and continue to treat their employees and customers. Now, it's important to note that this couple then went onto Dr. Phil (I actually watched this! I laughed. I'm a bad person, I know) to explain that it was just a TV show and they were acting to make their presence more aware (no such thing as bad publicity, right?). However, from the response that these business owners gave to the comments made on their social media page, it appears that they were, in fact, not acting at all.

I must admit I have never watched the show nor this series, but the reasons I was so engaged with this story are as follows:

1. I've been waitressing in a restaurant for five years
2. The unethical social media meltdown witnessed from these business owners made me grab my popcorn

If you so desire to take a look at the unethical social space that I am referring to before you continue to read this post, please have a quick look at their Facebook Page. It's worth it, I promise. But now, onto the serious stuff.

The misuse of Social Technology
It is common sense to know how to treat your customers, no matter what industry one is in or what enterprise one is involved. Whether you are in retail, hospitality or construction, one MUST be ethical - reputation is an extremely important thing. The same applies when using social technologies. As most organisations use it as a platform to connecting and engaging with current and potential customers, the same correct, ethical and responsible behaviour needs to be conducted. Again, it's just plain common sense.

Delving deeper now though, I would like to focus on Rogerson's 8 Ethical Principles (Figure 1, Pg. 3) to unpack this organisations misuse of Social Technology and the consequence it has had on the individuals and the organisation.

The 8 Ethical Principles are:
1. Honour
2. Honesty
3. Bias
4. Professional Adequacy
5. Due Care
6. Fairness
7. Consideration of Social Cost
8. Effective and Efficient Action

These principles are meant to be put in place prior to an organisation taking an action. It is evident with this case study, however, that these principles were not taken into consideration. Below are examples of the unethical actions made by the owners taken from their Facebook Page. Just a courteous warning, there is explicit language involved:




There's more. But let's just leave it at that, I think you get the idea!

Consequences
Back to the principles, which once analysed, will give you a sound view into the consequences that this unethical practice caused.

Information Ethics, as defined in Rogerson's paperA Practical Perspective of Information Ethics, is "...the analysis of the nature and social impact of computer technology and the corresponding formulation and justification of policies for the ethical use of such technology" (pg. 1). Note the "analysis of the nature and social impact..." part. Rogerson states that "to be ethical, an action should elicit a positive response..." which is why these principles should be applied as a framework, and which were not present in this case study.

Referring to the 8 principles mentioned and their link to this case study:

1 & 2. Honour and Honesty - Focuses on whether the action is considered beyond reproach and whether the action violates trust, respectively.

The unethical use of the social platform of Facebook from the organisation has diminished what trust was already present, if not destroyed it, and has also taken away the chances of trust being gained back from past or future customers. Furthermore, it is extremely difficult to bounce back from such an action and event, particularly because it is now a world wide story. These points lead back to reputation, which was mentioned earlier. The once successful reputation of the organisation has completely been turned upside down, a massive consequence associated with the misuse of social technology.

Skipping 3, 4 and 5, as these principles are not pertinent and heavily focuses on before the action is taken.

6. Fairness - considerations of stakeholders

Not only didl the organisation suffer internally, with staff leaving and perhaps even providing negative comments also, but it is safe to say that any stakeholders involved with this organisation may no longer what to be involved and connected with the enterprise. Again, the statement of no such thing as bad publicity can come into play, though for me, I certainly wouldn't want to put my investment into a company that has a highly negative aura, particularly when the criticism is still being poured out even more than a year on, indicating the severity of these unethical actions.

7. Consideration of Social Cost - accepting responsibility for the action, will it violate or harm anyone?

After the show aired, the business owners had a chance to accept responsibility for their initial on-air actions, and try repair the damage made. However, by then using social technology in a negative way and not for accepting responsibility, the organisation's physical and online reputation was severely harmed even further. The social cost of the actions were not taken into consideration, and the consequence of this? Loss of customers, followers, income, staff, reputation and control. Furthermore, social technology is an effective tool to be used to boost organisations in many ways as mentioned in previous blogs, but if misused, can cause harm, as seen from this case study - even if deleted from the Facebook page, the comments will remain on the web and continue to spread via other social technologies.

8. Effective and Efficient action - is the action suitable given the objectives set?

For an organisation wanting to engage with customers, gain a wider online presence, as well as gain more awareness of their products and services, social technologies are a great platform to go through, and you can read more about this aspect in my previous blogs! Though these objectives cannot be reached if the social platform isn't used effectively or efficiently. By using unethical practices, the owners have created a problem space online, and with the possibilities of the web, the consequences can definitely evolve - take Reddit as an example, as soon as this story was posted through this source, it escalated insanely fast, and still continues to do so. Refer back to the Facebook Page, and check comments on posts, posts made to the wall, and comments on photos. The consequence's are evident everywhere, and by checking the time the comments were made, you will be able to see the negative impact the unethical posts still continue to make.

Avoiding such a misuse in the future
Unfortunately for this organisation, the reputation of the organisation and the individuals cannot be regained. The unethical practices cannot be taken back, and the consequences cannot be mend. Though for other organisations, common sense will definitely help, though following Rogerson's 8 Ethical Principles before undertaking an action, whether it be via Social Technology or not, will ultimately ensure a safe outcome, positive benefits and aid the organisation in avoiding such a conundrum as seen in this case. Integrating this secure framework as a foundation is the go!

I hope you enjoyed my final post! Please leave a comment! And if you'd like, maybe you can answer the question "Is there such thing as bad publicity?". I'd love to know your perspective! And also go check out Andrew Matchett's post on this case study. It's a great read and really helps put the unethical impact into perspective!

It's been a pleasure, guys! Thank you for following me on this new blogging journey!

Once more, I can be reached on any of the following Social technologies:


My Facebook Pageashleyseychelle hulloash@msn.com




Ashley out.






Wednesday, 17 September 2014

#riskeverything - ROI of Nike's Social Technology implementation



Image courtesy of theinspirationroom.com


Nike's #riskeverything Campaign
I love football. I'm passionate about it. So when the 2014 World Cup came along I was ecstatic. I was awake at odd hours of the morning ready to cheer on our boys. And when Nike launched their football campaign to capitalise on the approaching football season, I was immediately hooked.


This campaign used social technologies to release to the world... a story. Nike took one long segment and broke it down into smaller segments, releasing them individually through the Nike Football YouTube and the Nike Football Facebook pages. With the hashtag #riskeverything, came the opportunity for fans to showcase their #riskeverything moments in one of Nike's videos. With the likes of Cristiano Ronaldo, Brasil's Neymar, and the legendary Wayne Rooney featuring in this story, the clever product placement, as well as this incredible opportunity for viewers, it was bound to be a success.

In this post I will discuss Nike's Return on Investment (ROI) generated from this campaign as well as the many benefits that surfaced. If you haven't already seen these videos, I would highly recommend checking them out. Below are a few of my favourites - "Winner Stays" and "The Last Game" are sure to give you a chuckle (I laugh every time anyway).


Nike Football "Winner Stays" from Nike Football Youtube


Nike Football "The Last Game" from Nike Football Youtube



Nike Football "Pressure shapes legends" from Nike Football Youtube


Dare to #riskeverything from Nike Football Youtube


Return on Investment (ROI) from this campaign

Tangible Benefits

Preceding the tournament, Nike posted a 21% increase in football revenue alone. From information gathered from their 2014 Annual Report, the gain they made from this investment was $2270 Million, an 18% change from previous years $1930 Million (but 21% when excluding currency changes from said previous year). From here, and taking into account the currency changes and report information, the calculated cost of this investment equaled approximately $1870 Million. Meaning Nike's ROI from this football campaign is as follows:
ROI = Gain from investment - Cost of investment
            __________________________________________________     x 100
Cost of investment



$2270 Million - $1870 Million
        ___________________________________     x 100
$1870 Million

= 21% ROI

Taking into account their 2012-2013 increase of a small 9%, the #riskeverything campaign definitely utilised social technologies to their advantage this year. Let's now look at some intangible benefits gained.


Intangible Benefits
To make this easy, here is a neat little infographic of the benefits gained through multiple social technologies.

Stats on #riskeverything campaign as of Aug, 2014. Image courtesy of Nike and Darren Heitner/Forbes

As of August 2014, the campaign had generated more than 22 million engagements, where these engagements includes likes, comment and shares over numerous social platforms. From Twitter alone, Nike received a total of 3,072,369 mentions during the World Cup.

Even now, from information I gathered from a quick search on Social Mention, the #riskeverything hashtag is still being used throughout social technologies, and still having a significant reach to current and potential Nike customers.

Dated 18/09/14, 4:05pm

One can only make the assumption that majority of these intangible benefits are being converted into some form of revenue for Nike. It is evident that business definitely increased as a result of this campaign, and without the use of social technologies, the benefits and success would not have been as jaw-dropping. Nike's ROI approach has proven to be a strength in their enterprise, not only increasing revenue for them, but also increasing awareness of the brand as well as customer loyalty.

Thank you for reading!


Feel free to contact me via any of the following:


My Facebook Pageashleyseychelle hulloash@msn.com


Wednesday, 10 September 2014

Social Technology use in the Retail Sector - A case study on IKEA


Image from www.munters.com


About IKEA

Well, who doesn’t know about IKEA? It’s a vast place filled with new opportunities to make your home look amazing with high-quality products at affordable prices. Most people I know get giddy with excitement when they head on over to Ikea…in fact, I’m going this Friday with my friend and we have already planned a girls day out of it!

So, IKEA offers a wide range of well-designed and functional furnishing products for your home. This enterprise prides themselves on their product range and low prices, which flourishes their overall business vision of 'A Better Everyday Life'.

In this blog post, I will be discussing the functional area of Customer Service as derived from The 10 Social Technology Value Levers published by McKinsey Global Institute in 2012. The Value Lever associated with this functional area that will be focused on is Customer Care.


Implemented Social Technologies

According to an analysis last year on 'The Most Effective Retailer on Social Media' by Blueocean Marketing IntelligenceIKEA is the #1 most effective retailer on social technologies in their industry category of Supplies/DIY/Decor, and are placed at #5 overall in the retail sector.

IKEA have implemented a presence over numerous Social Technologies including Facebook, Twitter and Pinterest, though because Pinterest is used primarily as a Marketing and Sales tool, I will focus on Facebook and Twitter as these two Social Technologies are the key platforms used for Customer Care.


Facebook

Through Facebook, IKEA has separate pages for each country or territory in which it operates. IKEA UK's Facebook page at present has 732, 958 likes whilst IKEA Australia's Facebook page has 270, 628 likes. Focusing on the Australian page, IKEA uses this social technology platform to not only market their products, catalogues and upcoming competitions, but they also use this technology to engage deeply with their customers, particularly in terms of Customer Service.

The McKinsey Report mentioned earlier states under their Customer Service functional area that "A social platform can act as a dedicated customer service channel, taking on some work normally performed on the phone...(e.g. answering question's about product features)" (The McKinsey Report, 2012, pg. 39). It is evident that Facebook is definitely a tool that is used as a dedicated customer service channel, where this organisation deals with numerous questions and content. See below: (snapshots taken from the IKEA Australia Facebook Page)





A young boy, after experiencing the wonders of IKEA created a 'Light Drawer Robot'. IKEA loved it so much they sent the young entrepreneur a little reward!



A customer's table had unfortunately broken, and she could see the inside of the table. Curious, she popped on over to the IKEA Aus Facebook page and asked what was inside the table that she could see.



Two customer's had a question on stock. Instead of calling through and risk being on hold for minutes or hours on end (some customer's on the UK page complained of this!), these ladies asked on this Social Technology, where the IKEA Customer Service team could respond within 24 hours. Though these responses did take a longer period of time than you would expect over a phone, these customers could ask the question and go about their day, and would be notified once they had received a reply. Moreover, these answers became part of a database, so to speak, where other customer's could easily view and perhaps gain the knowledge they were seeking without picking up the phone or even asking a question themselves. One could not derive the same information from a private phone conversation between consumer and enterprise.

Twitter

The IKEA USA Twitter account uses are more relaxed approached to Customer Service, though this doesn't mean there is no Customer Care. Customer Service Twitter staff respond not only to pertinent question's but also to silly and fun tweets. See below for examples of this Customer Care and engagement:






And below are some examples of customer questions and concerns. Again, answering these online creates a searchable and visible database available to numerous customers. The concerns also gives Twitter "...a way to listen to customer conversations, identify customer issues and act on them before they harm sales or reputation" (The McKinsey Report, 2012, pg. 39).




So there you have it! IKEA and their use of Social Technologies. Though they have implemented technologies to assist in the Value Lever of Customer Service, I do believe it would be worth while making the use of these technologies consistent throughout more platforms and more dedicated social accounts - meaning having an IKEA Australia Twitter account (as there currently isn't one, nor is there a UK one) and also using Pinterest as a Customer Service platform as well as a Marketing and Sales platform.

What do you guys think? Do you think it would be beneficial to implement numerous Social Technologies, or would adding more just be too overwhelming for both customers and enterprise?

Thank you for reading! Please leave a comment :)

Feel free to contact me via any of the below portals :)


My Facebook Pageashleyseychelle hulloash@msn.com