Michelle Rodger: Your poor customer service will be Tweeted and Facebooked

Published on Saturday 26 December 2009 13:50

WHO won't be glad to see the back of 2009? Not many, I guess. It's been a memorable year, though not necessarily for the right reasons. There's always a silver lining, however, and I do believe it has been a fabulous learning curve from which 2010 will benefit.

So indulge me while I share a few predictions for business trends in 2010 (this comes with the proverbial disclaimer; the views expressed are not necessarily those of the management, so don't make any decisions based on them, and don't blame them if it all goes horribly wrong).

The first trend is what is being called "nowism" by those in the know. It's defined as the desire by instant-gratification-seeking consumers to embrace anything "real time" with more passion than ever before – and it's being fuelled by the social media explosion.

In short, it means that your customer will want everything immediately, if not sooner. And woe betide your business if he doesn't get it; his review of your poor service will be Tweeted, Facebooked, and a video of his rage against your machine will be posted on YouTube.

Look what happened to Domino's Pizza when footage of two employees fouling food was posted to YouTube; the company didn't move quickly enough to reverse the damage and more than a million people watched within 48 hours.

According to BusinessWeek, Domino's was the latest company to learn the hard way just how quickly a brand can be damaged in a Web 2.0 world.

This increased customer expectation brings obvious opportunities; if you engage with your customer, outperform expectations and deliver what you've promised when you promised it then you will find the real-time reviews will drive sales.

Granted, everyone makes mistakes, but if you manage to right a wrong straight away and keep on top of negative publicity in the social media ether then you have a second chance to win over your customer. Alternatively, you can involve your customers in your development and growth plans from day one and eradicate the possibility of unforeseen bad reviews when you launch.

This trend leads straight to the next one, collaboration: 2010 will see even more entrepreneurs sharing information and experiences. This collective learning from the successes and failures of others – particularly lessons from the recession – will be fundamental to the growth and success of businesses over the next 12 months. It's simply the kids' lesson of share and share alike. Communication with your peers could be the difference between your success or failure.

Dynamic pricing, the next trend on my list, benefits from this widely shared knowledge – if you know the market, you know what your customers want and when they want to buy it, and you know what your competitors are up to, you can price accordingly.

I'm not suggesting you compete on price (we all know where that leads and it is not a good place) but change your prices "dynamically".

Using information gathered from customers – from where they live to what they buy and how much they have spent on previous purchases – dynamic pricing allows smart online companies to adjust the prices of identical goods to correspond to a customer's willingness to pay. The normal response to sales figures will no longer be enough; instant response – daily, even hourly and individually – is where you will find the competitive advantage.

I reckon this pulling-together and increased communication will also mean we see much more "co-opetition". Market share will no longer be divisive but collaborative; instead of competitors fighting to carve up their share of the pie, rival companies will begin to work together to bake a bigger pie.

On a slightly more serious note, compliance, or lack of it, will be big in 2010. The new media-savvy Information Commissioner has promised a crackdown on non-compliance. When Chris Graham took office he warned he would name and shame those companies that failed to comply with the law, saying: "There's a well-funded regulator that will hit you hard if you get it wrong … if you don't take this stuff seriously it's going to bite you in the bum."

And for those businesses looking for credit to fund recovery or indeed growth, expect a change in the information the lenders will require you to divulge. Three-year business plans and audited accounts from 18 months ago will no longer be acceptable; in an economic environment where things change monthly, weekly and daily, banks and credit agencies will want to see up-to-date monthly management accounts before parting with their dosh. And if you remember a previous column of mine, you'll know that the majority of SMEs don't actually produce monthly financial information, so take heed.

I was never very good at sums at school (and I haven't improved with age) but I can spot a common denominator when I see one. It's communication – online, offline, dialogues and debates, with peers, competitors, customers and lenders – that will be at the heart of every successful business.

So, nowism, real-time reviews, collaboration, dynamic pricing, co-opetition, compliance and a real need for accurate up-to-date financial data are my key trends for 2010 but to be able to capitalise and commercialise on these, make a profit and delight your customers it will take a certain kind of business person.

Read next week's column to learn the personal characteristics essential for the leaders that want to make it in the next 12 months.