{"id":36151,"date":"2012-09-11T00:11:48","date_gmt":"2012-09-10T22:11:48","guid":{"rendered":"http:\/\/www.whalecottage.com\/blog\/?p=36151"},"modified":"2012-09-11T10:23:54","modified_gmt":"2012-09-11T08:23:54","slug":"woolworths-social-media-case-study-on-how-to-build-and-break-customer-relationships","status":"publish","type":"post","link":"https:\/\/www.chrisvonulmenstein.com\/blog\/cape-town\/woolworths-social-media-case-study-on-how-to-build-and-break-customer-relationships\/","title":{"rendered":"Woolworths: Social Media case study on how to build and break customer relationships!"},"content":{"rendered":"

\"\"<\/a>Woolworths is a leading retailer, that attracts a shopper profile at the LSM 7 – 9 level, and has always stood for quality. \u00a0Its CEO Ian Moir has had a bad year to date, having experienced the negative power of Social Media three times this year already, the latest furore no doubt given him the biggest headache. There is no doubt that the furore that its employment advertising has created will become an important case study in Social Media Marketing, and will guide many other corporates in how to deal with negative sentiment expressed in Tweets, on Blogs, and in Facebook comments.<\/p>\n

My attention to the issue was first attracted when I read a Tweet by Woolworths’ Digital Editor, highly regarded Sam Wilson, who previously was the editor of\u00a0Food24<\/strong>, Parent24<\/strong>, and Women24<\/strong>, writing as follows: ‘Guys, I am white. I am currently interviewing white people. This @WOOLWORTHS_SA white racism thing because we comply with BEE? Weird’.<\/em> It came across as a Tweet expressing her displeasure at her employer’s employment policy, and it only made sense when the story broke about Woolworth’s recruitment advertisements specifying population group requirements for the positions it was advertising. The story was launched last week on Facebook and thereafter on the blog of Justin Harrison<\/a><\/span><\/strong>, who calls himself an ‘Internet entrepreneurial pioneer’<\/em> on his Blog, but who has not been heard of by most local social media folk, maybe because he operates from Durban. \u00a0It got so bad on Woolworths’ Facebook page that it removed the comments containing ‘hate speech’.<\/em> Last Thursday Woolworths posted a note on its Facebook wall, announcing that it was closing it down due to the overwhelmingly negative and unbelievably harsh vitriol posted, a move supported by more than 2500 likes (out of 204000 ‘likers’):<\/p>\n

“Woolies fans,<\/span><\/em><\/p>\n

Disabling our wall was not a decision we took lightly and not one we’re particularly happy about. But when your page becomes little more than a platform for a well-orchestrated campaign of hate speech, we owe it to our customers not to subject them to such vitriol in our own house. <\/span><\/em><\/span><\/p>\n

We have, in a variety of channels, repeatedly refuted the claims being made against us. We have also <\/span><\/em><\/span>allowed thousands of comments on our <\/span>Facebook<\/span> page, debating the <\/span>pro’s<\/span> and con’s of Employment Equity as a national debate\u2026 deleting only overt hate speech and comments inciting violence.<\/span><\/p>\n

\n

However we’ve always put our customers first\u2026 and many, many customers have asked us to stop hosting this vitriol. We will re-open our page as soon as we think we can resume reasonable discussion”<\/em>.<\/span><\/p>\n

Yesterday the wall was re-opened, and new negative comments have been posted on the Facebook page, where most of the debate appears to be concentrated, with little mention of the issue on Twitter.\u00a0\u00a0Interesting is the vast number of (mainly negative) comments about the Woolworths debacle on a new Facebook page called AAA Anti-Affirmative Action, with close to 3500 likes, reported on by The South African Newspaper<\/strong> published in London, which referred to Woolworths’ and SAA’s employment policy problems. The newspaper also reported in the same article that the\u00a0‘National Chairman of the Australian Protectionist Party, Andrew Phillips called upon both the Federal Labor government and the Opposition to unanimously support the introduction of sanctions upon South Africa’<\/em>. \u00a0\u00a0The sanctions are motivated by Mr Phillips, whom most Australians who posted comments about this story say they have never heard of, on the grounds of the government not having created an ‘equal opportunity’ <\/em>society in this country.<\/p>\n

Earlier this year Woolworths was embroiled in a Social Media war about its vintage soft drink range bearing a close resemblance to Frankie’s<\/a><\/span><\/strong>, which Woolworths was forced to remove from its shelves after the Advertising Standards Authority found that the retailer’s\u00a0‘Good Old Fashioned’ <\/em>pay-off line was too similar to that of Frankies. Initially Woolworths denied copying any aspects of Frankies’ drinks. \u00a0In a third incident, Woolworths was criticised for launching Halaal hot cross buns over Easter<\/a><\/span><\/strong>, which caused a furore too. The sponsorship by the retailer of MasterChef SA was said to erase the damage which the two earlier Social Media disasters had caused, but Woolworths did not come out of the reality TV series unscathed, its Woolworths Pantry guest food blogger recipes causing controversy<\/a><\/span><\/strong> initially.<\/p>\n

Woolworths reaction to the employment advertising furore, which has led to a call by trade union Solidarity for customers to boycott Woolworths, and which was echoed in the thousands of Facebook comments, smacks of old world corporate disaster management PR spin, rather than being Social Media driven:<\/p>\n

* \u00a0Posted its employment policy, in accordance with the Employment Equity Act, which applies to all companies with 50+ employees, on its Facebook page on the same day:<\/p>\n

“Over the past few days, we\u2019ve been accused of racist employment practices. We\u2019d like to state the facts:<\/span><\/span><\/em><\/p>\n

\u2022 Like all South African companies, Woolworths has a role to play in transformation. For this reason, SOME positions (where there is under-representation) are designated for EE groups.<\/span><\/em><\/span>
\n\u2022 The designated groups are Blacks, Coloureds, Indians, women and people with disability. <\/span>
\n\u2022 As per the Emplo<\/span><\/span><\/em>yment Equity Act of 1998, Woolworths is expected, like all SA companies with more than 50 employees, to plan our workforce by race, gender and disability.<\/span><\/em><\/p>\n

<\/em>\u2022 Our workforce is diverse and includes people of all races (Black, White, Coloured, Indian), gender and disability.<\/span><\/p>\n

<\/p>\n

<\/span><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em>We appreciate the value diversity brings to our business and the need to contribute to levelling the playing fields for certain groups of South Africa’s population”<\/em>.<\/span><\/div>\n

* \u00a0 Sent a personalised e-mail entitled ‘The difference between Rumour and Fact’<\/em> to its cardholders, with a similar content, and an sms to those customers who are not on e-mail.<\/div>\n
* \u00a0 Placed an advertisement in the Sunday Times, Rapport<\/strong> and City Press<\/strong> on Sunday, with a similar message.<\/div>\n
* \u00a0 Wrote an expanded version of the content as a letter to the ‘Readers’ Forum’<\/em> of Business Report<\/strong>, an odd platform to use to address his ‘Dear Woolworths customer<\/em>‘, when it was possibly the shareholders he was trying to placate, given the knock that the Woolworths share price has taken in the past week (the letter is the same as the one sent to its customers by e-mail)!<\/div>\n
* \u00a0 Received public media support from Labour Minister \u00a0Mildred Oliphant for its ‘unwavering effort to genuinely address transformation in the workplace through the implementation of employment equity’<\/em>.<\/div>\n
\n

\n

In our opinion, the response by Woolworths has been very corporate, very reserved, very defensive, and not in keeping with Social Media marketing principles of engagement and two-way communication, a similar reaction it delivered in the Frankies affair. \u00a0One wonders how one Facebook post and subsequent blogpost by Harrison could have unleashed such a storm, his message obviously touching a raw South African nerve amongst the shoppers that make up the bulk of Woolworths’ target market. \u00a0 Surprising was the blogpost written on the\u00a02oceansvibe blog<\/span><\/a><\/span><\/strong>, which lambasted Harrison for using the Woolworths issue as a means to gain more Followers on Twitter and other Social Media platforms, and writing in detail how Harrison had allegedly bought Followers some years ago. This led to a strong outburst of comments against 2oceansvibe, accusing it of being linked to Woolworths and\/or Woolworths’ digital media agency Quirk, defending the Woolworths brand (denied by owner Seth Rotherham), and criticising 2Oceansvibe for pointing a finger at a Social Media player when it itself had been criticised for selling advertising for its radio station on the basis of highly inflated listenership fingers, forcing\u00a0Rotherham to deny the allegations<\/span><\/a><\/span><\/strong> contained in the close to 200 comments received to the blogpost!<\/span><\/p>\n

The Woolworths’ website does not explain its BEE employment policy, nor does it contain the public statements made in the media by its CEO in its Careers section or elsewhere on the website. \u00a0It clearly has been edited, as its introduction page invites one to\u00a0click onto a link<\/span><\/a><\/em><\/strong> to see the career opportunities, but when does so, no jobs are listed. Now one is invited to call the retailer to check out its\u00a0employment opportunities<\/span><\/a><\/span><\/strong>! \u00a0 Woolworths\u00a0should use its website proactively to communicate with its staff, potential staff, and customers!<\/span><\/p>\n

Seemingly sensible advice to\u00a0Woolworths\u00a0comes from\u00a0Harrison:\u00a0‘Woolworths\u00a0is clearly in a spin over how to deal with this issue and they would do well to learn from\u00a0SAA’s\u00a0mistake. Issue a public apology and revert back to the hiring policies to be fully inclusive and based purely on experience and ability<\/em>‘.<\/span><\/p>\n

For Woolworths specifically, a platform such as Twitter should be used for engagement. \u00a0The retailer has become very poor at acknowledging any feedback about in-store problems, expressed by its Tweeting customers. \u00a0There is no apology if there is communication, and there is no follow up to communicate with the customer telephonically after the Tweet, as Pick ‘n Pay has become reasonably good at. \u00a0A company that once had the Social Media lead has become reactive and defensive, and has lost its standing due to the Social Media wars, rather than walking tall and engaging with its customers in a credible and warm manner. This is a surprise, as its Head of Online Nikki Cockcroft has an impressive background, including CEO of Primedia Online, 365 Digital, and Prezence Digital before she started at Woolworths just over a year ago, and given Sam Wilson’s experience in engaging with a similar target audience at\u00a0Media24<\/strong> previously.<\/span><\/p>\n

Woolworths needs to go back to basics to better understand how to maintain customer relationships via Social Media. \u00a0Successfully building up a large army of Twitter Followers and Facebook Likers is no guarantee that the same seemingly loyal customer audience will not turn against the retailer if it is not in touch enough with its customers, and offends them, as the past ten days has shown!<\/span><\/p>\n

Chris von Ulmenstein, Whale Cottage Portfolio:\u00a0www.whalecottage.com<\/span><\/a> Twitter: @WhaleCottage<\/span><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Woolworths is a leading retailer, that attracts a shopper profile at the LSM 7 – 9 level, and has always stood for quality. \u00a0Its CEO Ian Moir has had a bad year to date, having experienced the negative power of Social Media three times this year already, the latest furore no doubt given him the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_jetpack_memberships_contains_paid_content":false},"categories":[3,124,248,1590,528,21],"tags":[2426,16932,16921,14201,16923,16922,16918,3940,32378,16928,1602,8618,14651,6399,16925,2381,3703,4328,16926,1633,14740,16920,32404,496,16929,16930,6401,957,16933,16931,739,16919,16917,3947,16924,3761,32395,2630,15323,32388,1588,1587,16927,32373,6755,171,15373],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t