Airlines used to slip seat upgrades to people who “looked the part” and had the frequent flyer status to prove it. But now airlines are looking at the online social influence of an individual and their propensity to “tweet and share” before rewarding customers with a fancier seat.

The airlines’ new approach is one of an avalanche of emerging trends touted by Chris Sanderson, the co-founder of the London-based forecaster, FutureLab, which is advising Australian companies such Country Road, Just Group and Wesfarmers’ Target division.

The search by airlines for “social influencers” highlights how some companies are coming to grips with the new world of social media management.

Companies such as San Francisco-based Klout, which has built profiles and rankings on about 100 million online users so far, “scrapes” data from social media websites such as Twitter and Facebook to quantify the size and influence of a person’s social network based on their messaging and the interaction that takes place with them.

The way Sanderson explains it, several airlines which he will not name are developing systems that prioritise individuals for upgrades based on their Klout rankings to increase the likelihood of more positive “brand messaging” and influence in social media.

But before the social media evangelists get too excited, there is a counter trend coming.

Sanderson says the next decade will see consumers become highly capable “data curators” and “personal reputation managers”.

It means the information which online giants such as Google and Facebook now collect and monetise for free will cost them. Although privacy is a concern for many, Sanderson says people will realise marketers can make money from data about them. People will “lease” their information in exchange for hard cash or goods or services.

Privacy legislation around the world will push that trend along, says Sanderson, but he predicts commerce will get there faster. He predicts a smart company somewhere soon will produce an app that will allow an individual to centrally and easily control their data flow for any online business.

“The personal data curator is very much coming out of the idea that as we understand our data has value we will claim it back,” Sanderson says.

“One of the most valuable things we have in our online activities is our data. We will have apps that allow us to monetise our personal data in the way you lease something.”

Sanderson says people’s broad concerns over privacy will diminish as they realise they can get something by “leasing” their information.

“The moment you realise that by actually leasing your data back to someone like Target you get dollars off your monthly shop, you find the time and inclination to manage these things,” he says.

FutureLab predicts consumers will evolve into “traders”.

“We trade products, we trade value, we trade information and we trade time,” Sanderson says.

“Now we expect brands to reward us for trading. I can go to a 7-Eleven and exchange Facebook credits for a real product. If Facebook credits were translated into real-world value, it would be the third-largest economy in the world.”

Story source: http://www.afr.com/p/business/marketing_media/the_more_you_tweet_the_better_the_Dp4L5FHjReKQbzoj1WA79H

Date originally posted: 20 February 2012

You need to be careful about what you promise—especially when you make a promise on social media.

This adage is ringing loud and clear for Toronto-based Timothy’s Coffee. In an effort last month to grow its Facebook fan base, the company ran a promotion saying that anyone who “liked” its page would receive four free 24-pack boxes of single-serve coffee. As the Toronto Star reports, this was rather generous, as these boxes retail for over $17 CAD each.

A contest aggregating site picked up the promotion and, as you can imagine, responses poured in, reports the Star. Problem is, the stock of product was depleted within three days of the launch, yet Timothy’s still sent emails telling people their coffee was on the way.

Despite obvious problems, the company said nothing until Jan. 4th, when it told fans that the promotion was “first come first serve.” Consumers lashed out, on the company’s Facebook page and in blogs. One blogger claimed Timothy’s deleted nasty comments from its page.

Last week, the company issued a candid apology on its Facebook page:

“We are so sorry!
“This is our first go at this and we admit that we underestimated the response.
“We are blown away that our fans love our coffee so much.
“It really saddens us that we’ve disappointed our fans.
“We apologize.”

It also apologized in a video to fans and said that those who signed up will receive a coupon for a free 12-pack box. The coupon will “most likely” come via regular mail.

Clearly, Timothy’s gaffe illustrates its lack of understanding about social media. The company grossly overestimated the value of a Facebook fan, and then vastly underestimated the outrage caused by their bungled initiative and broken promises.

That it took almost a month to resolve this issue speaks clearly to its lack of comprehension about the way people behave on the social Web.

Don’t want this to happen to your brand? Check out this week’s PR Daily story on “How to avoid a social media nightmare“.

Story source: http://www.prdaily.com/Main/Articles/10597.aspx

Let’s talk about a good response to a customer service, turned social media, crisis, shall we?

During the holidays, a video of a FedEx delivery man throwing a computer monitor over a gate and onto a customer’s lawn emerged.

The scary thing is it’s actually in a computer monitor box, not a FedEx box, so he knew it was fragile. He didn’t try to open the gate or ring the bell. He just threw it over the gate. And it broke.

The person who lives in that house must have the same “neighbourly” issues we have because he has a security camera on the front gate. And the “delivery” was captured on video.

Here it is for your viewing pleasure.

Clearly this is not a PR or social media crisis. It is a customer service crisis. But it was turned into a PR crisis when the customer posted the video on YouTube (which got five million views in five days).

What did FedEx do, in return?

They did NOT ignore the video. They did NOT ignore the crisis. They did NOT stick their heads in the sand and pretend the video (that now has nine million views) doesn’t exist.

They took to YouTube and created their own video. Just like Domino’s did in 2008 when a YouTube video of a franchisee’s employees sneezing and spitting in food went viral.

In a blog post accompanying an embedded version of their video, Matthew Thornton, III, senior VP of FedEx Express U.S. Operations, said:

As the leader of our pickup and delivery operations across America, I want you to know that I was upset, embarrassed, and very sorry for our customer’s poor experience. This goes directly against everything we have always taught our people and expect of them. It was just very disappointing.

He goes on to describe what they did for the customer and how they’re using the video in employee training to make sure these kinds of things don’t happen.

Here is the video of the Thornton’s apology.

Customers and employees weighed in on the blog post, most citing positive examples or stories about being grateful for working at FedEx.

The lesson? Always answer with a real apology. Not “I’m sorry, but…” apology, but a real one. And answer it on the same social network where the crisis is happening.

FedEx did this exactly right, and in the right amount of time. They described the issue, said what had been resolved and how they were using this as a lesson going forward, and apologized.

Every, single one of us makes mistakes. It’s in how we handle them that is remembered.

Story Source: http://spinsucks.com/communication/fedex-customer-video-turned-good-pr/

Date originally posted: 11 January 2012

When a fleet of Japanese whaling vessels set sail late last year, everyone wondered what would happen and what the news headlines would be this time around.

Even those who are not concerned about the Japanese whaling industry feel their blood boil a little when images of slaughtered whale carcasses being towed onto the back of a frigate invades their personal space in the form of social media and television; especially when the events occur so close to our homeland.

But who is the winner in the PR war now that three Australians crossed the open ocean to slip through razor-wire and board a foreign and hostile vessel in the dark of night?

When Geoffrey Tuxworth, Simon Peterffy and Glen Pendlebury boarded the Shonan Maru 2, they were hailed in some quarters as heroes but in others, they became pirates.

That is what is making news.

While many Australians are appalled by Japanese whaling practices, the actions of the three men may have caused long-term damage to the cause – there has been overwhelming negative response on social media and talkback radio in Sydney and Melbourne condemning their actions.

There are really no winners in the whaling PR war, firmly back in focus yet again.

The Australian Government has taken far too long to act and year after year after year, the electorate has heard the same rhetoric – but no action. Ordinary Australians may not be impressed by the actions of the trio who boarded the Shonan Maru 2 but they are equally fed up with the Government not taking a strong position.

Japan is not a winner, either. Brand Japan is certainly being damaged by the annual negative publicity as they experience global condemnation – there must be economic, diplomatic and social costs each whaling season that has long-term collateral damage.

Last year’s natural disasters impacted on Japan’s tourism industry, which is yet to fully recover and negative publicity will make the revival even more difficult.

The environmentalists who risk their lives trying to prevent the Japanese boats from going about their business seem to have the support of many Australians except when they exceed the boundaries of what most people think is reasonable.

Unfortunately, the environmental groups lose the PR war as more conservative supporters take umbrage at tactics like illegally boarding a hostile vessel.

There are no winners in the PR war – there is just more of the same; desperate environmentalists who will try whatever they deem is necessary to stop the atrocity; a Federal Government loathe to act with strength and conviction; and a Japanese industry hell-bent on ignoring global opinion.

Sadly, it will probably be exactly the same story in 2013.

NEWS OF THE DAY:

What’s making news today?

NRL mourns loss of Arthur Beetson. Died on Gold Coast yesterday

Ian Macdonald tells ICAC hearing he fell asleep fully clothed next to Tiffanie in hotel room

Arrival of another two boats at Christmas Island yesterday. November record month for boat arrivals

Gay marriage rift deepens for ALP Right. Labor factional bosses sandbag PM to avoid same-sex rout

Strike surge under Fair Work. Days lost to industrial action highest since 2004

Bank downgrades hit big four. Australian banks latest victims of global ratings clamp down by S&P

DAILY TELEGRAPH

Front Page Stories

NRL legend Arthur Beetson dead, after suffering a heart attack while riding his bike on the Gold Coast yesterday

Other Coverage

Start your engines - V8s roar into Sydney Olympic Park today. Sydney Telstra 500 driver guide

Former minister Ian Macdonald tells ICAC hearing yesterday he fell asleep fully clothed in hotel room with Tiffanie

Snr bureaucrats in state govt’s environment dept have stopped publishing scientific papers that challenge fed govt’s claims of rising sea levels, says former public servant

Killer benefits from doubts over forensic evidence. Jeffrey Gilham could be released from jail today

More than 200 boat people arrive in Australia yesterday, as alarming immigration asylum figures released.

Karen Ibrahim, wife of Sam Ibrahim, tells court she lives in daily fear for life, but trial judge unmoved

Kim Kardashian placed on govt watch list after she falsely claimed to be visiting Australia as a tourist on three business trips

Fury at pay rise for MPs. A bit rich, unions claim

Cheaper than chips. Bananas back on menu as price falls

Snr Lib party members to be questioned by police after routine meeting at Club Marconi ended in a wild brawl last Wednesday night

Mining baron offered sailor at centre of navy spanking scandal $1m sex offer

Adventure park planned for construction at Cockatoo Island

More women in NSW legal profession than ever before

Opinion

Piers Akerman: Lying leaders are inept and cruel

Ray Hadley: This week’s top 10: Brothel sorted, Labor should move on to getting beer in a brewery

Cars Guide

Cover story: It’s fast, affordable, fun and it’s a Toyota. Brute Ute SS V Redline

AUSTRALIAN FINANCIAL REVIEW

Front Page Stories

Bank downgrades hit big four

Labor may ditch surplus projected for next year if Europe’s debt crisis further destabilises world economy

MUA muscles in on white-collar jobs

Other Coverage

Fosters boss says jury still out as to whether Fosters paid too much for winemaker Southcorp

Doubts over HESTA board nominee

NBN deal put back a month

MP Ian Macdonald claimed he fell asleep with near prostitute

NuCoal in halt over licence row

Origin ‘one step ahead’ of naysayers and other gas debate coverage, pgs 6-7

Manufacturers losing ground, warns senior industry economist

Retail sluggish, building approvals fall

Muted reply from govt re university budget cuts

VW praise for Japan’s cars

ALP Conference coverage, [gas 22-23

Teoh’s TPG creeps like an elephant on watchful iiNet

ASIC wary of poor resources reporting

Fair Work looks at more flexibility for job rules

Westpac on high-tech growth plan

Weekly section: Review

Lead story: Strauss-Kahn sting. Vexing evidence suggests DSK may have been framed

Weekly section: Life and Leisure

Cover stories: Exclusive recipes from top chefs + Gift Guide: what men want

Monthly mag: Boss

Cover story: Retail revolution. DJs desperately seeking shoppers

Chanticleer

NBN Co to lay it on the line

THE AUSTRALIAN

Front Page Stories

Strike surge under Fair Work. Days lost to industrial action highest since 2004

Dormant smuggling markets reopen as word spreads of ‘softer’ policy

Warning on CSG impact ignored

Divide grows in boom-and-bust economy

Other Coverage

Fears for OPI phone tap records

Call for Koori-style Koranic courts

‘Unreal’ alcohol guidance ignored. Drinking patterns have not changed and govt needs to step-up, says report

Factional bosses sandbag PM to avoid same-sex rout

Conroy breaks with Right on bid to end export ban to India

Origin boss blasts industry critics

SYDNEY MORNING HERALD

Front Page Stories

Gay rift deepens for ALP Right

Solution to the problem of infertility: give away your spare embryos

Family joy as judges hint at acquittal for Gilham

I fell asleep, MacDonald tells ICAC

Other Coverage

Coal miner feels heat of corruption hearing

Visa reviewers left without facts on asylum seekers. November a record month for boat arrivals

Water treatment turns common chemicals toxic, says report

Coal seam gas exploration still being examined in protected conservation areas

Retail improves but department stores still in slump

New Jetstar rival to fly Sydney to Singapore

Bowen backs Rudd’s call for rank-and-file to choose leader

Weekly Liftout: Metro

Cover story: Top Homebake ac acts

Weekly Liftout: DriveLife

Cover story: Diversion therapy. Is it better to avoid the Hume?

FINAL VERVE NEWS SUMMARY OF 2011

WE HOPE YOU HAVE BENEFITED FROM VERVE’S DAILY NEWS SUMMARIES THIS YEAR, AND ALTHOUGH WE’RE ADMITTEDLY EXCITED FOR SOME EXTRA HOURS OF SLEEP BEFORE THE YEAR’S END, WE’RE GENUINELY LOOKING FORWARD TO RETURNING TO YOUR INBOXES ON MONDAY 30 JANUARY 2012.

BEST WISHES FROM THE TEAM AT VERVE.