The statistics are in, and the results boast resounding numbers. According to Eric Qualman, author of Socialnomics: How Social Media Transforms the Way We Live and Do Business, 96 percent of Generation Y has joined a social network. Although social media sites like Facebook, Twitter, and YouTube are commonly viewed as a personal activity, they are a goldmine for branding and marketing. So, what does this have to do with loss prevention?
Social media sites have an array of applications; some that may surprise loss prevention professionals. One thing is clear, social media is here to stay. In less than nine months, Facebook added 100 million users, while iPhone applications hit one billion. Sites like Facebook have the ability to boost exposure and profit for a company, but they can also cause major damage to it as well. This is where asset protection and risk management comes in.
Setting up a Social Media Monitoring Strategy
According to a 2009 Deloitte ethics and workplace survey, 74 percent of employed Americans surveyed believe it is easy to damage a brand's reputation via sites such as Facebook, Twitter, and YouTube. Although that statistic may be frightening, it is possible for social media and areas like asset protection to have a beneficial relationship.
In the summer of 2009, Dunkin Donuts launched its new vanilla-flavored drink, Coolatta, by organizing a competition on Facebook. When the competition started, the Dunkin Donuts fan page had almost 800,000 supporters. Within one week, their fan base was composed of 1.1 million and kept growing (today it has more than 3.1 million). Companies have the ability to harness the power of social media, but that power comes from the people, the consumers. When left unmonitored, they also have the capability to destroy any brand, no matter how reputable or well known.
While it may seem overwhelming, the following are ten steps to consider for protecting your company and your brand.
1. Assemble a team or small group of individuals to closely monitor consumer feedback 24/7. This team should be familiar with sites like Socialmention, Hootsuite, and Brandwatch. Check them out if you are unfamiliar. There should also be a member of this team on the web at all times. Social media interaction doesn't end when business hours do, and quick responses can avert a potential disaster. This team should also be responsible for investigating suspicious activity, such as theft, counterfeiting, and other crimes, which will be discussed further.
2. Establish corporate guidelines that are updated frequently. It's important to document what your company's expectations are regarding social media. Lawsuits and public relations nightmares are a few consequences of the lack of corporate guidelines on this matter. You need to know where the company stands on this issue—there are no gray areas. As technology evolves, so should these guidelines. According to the Deloitte 2010 ethics and workplace survey, 40 percent of executives say their company does not allow access to online social network sites from the workplace. However, denying access to these sites doesn't make them disappear. Just because employees cannot access these sites at the office...even though most of them can access them through their mobile device...it doesn't mean they will not discuss the company, other employees, or your brand. Every company needs to address the responsibilities of the employees when they are on these sites.
3. Establish a response system. Companies need to establish an internal response system when monitoring complaints online. The response system would provide specific protocols based on the nature of the complaint or issue, and from there, a response committee can address the issue. To be most effective, a response committee should consist of one manager or director from each department and follow a set process on how to resolve and respond to a complaint or issue. Don't make the mistake of assuming that just because you have lawyers, it means you are covered from customer complaints. Today's tech-savvy consumers beg to differ. You prepare responses for situations such as severe weather, bomb threats, and fire, so why not prepare for this?
The following scenario showcases a response system in action. On April 13, 2009, a video of Domino's employees violating public-health laws by sneezing on food and contaminating other ingredients was released on YouTube. Over 100 million views and over 300,000 comments were posted that day. References to it were in five of the twelve results on the first page of a Google search for "Domino's" and discussions had spread throughout Twitter.
Domino's Pizza was faced with the challenge of reestablishing their clients' and investors' trust. They responded fast and efficiently in order to stop the snowball effect, discredited the content of the video and its producers, and minimized the issue to avoid alarming investors, since the company's share value had been dancing up and down with the lowest rates in the last five years. They realized they had to reach the same consumers the video had reached. They replied with a YouTube video featuring Patrick Doyle, president of Domino's Pizza, and created an official Twitter account. Domino's managed to refocus the attention of clients back to the product—pizza—by building alliances with bloggers and giving away free food in order to reconcile with the product.
Social Media Works Both Ways
Even though the release of the video was a PR disaster, the fact that the employees in the video said their names and then explicitly preformed the violations helped Domino's out in their LP department. It was posted on YouTube for public view and fair game for investigation.
Social media can work both ways like that. Many people tend to post more than they should, and you have to watch your employees in this respect. But the fact that people do post more than they should gives you the upper hand in finding violators. According to GetSafeOnline.org, 25 percent of registered social networking users had posted sensitive personal data on their profiles. The proof is in the post...or the tweet, picture, or video. This brings us to the next steps.
4. Use social media as an investigative tool. People post too much valuable information. People post where they are, what they are doing, and, even more importantly, visual elements of what happened through photos and videos. For example, say you set a Google alert or Bing alert for your company. A blog pops up describing where the blogger found your brand-new product for half the price and included a picture. It might not be worth examining, but it doesn't hurt to look into it. If you decide to pursue it, you now have a lead in a possible counterfeit or theft investigation. While laws regarding the use of evidence from social media sites are still evolving, electronically stored information (EIS) is becoming an accepted form of evidence. According to E-Commerce News Network, 95 percent of all information is electronic. Utilize this abundance of information for your investigations.
5. Report suspicious activity. Unfortunately, we don't live in a perfect world. Crime will always be a part of our society, and it has even crept into the world of social media. Companies should also establish an internal response system to report suspicious activity, such as organized retail crime, counterfeiting of goods, dissemination of proprietary information, and cyber-bullying of employees and/or supervisors on social media sites. The response system would consist of a set process on how to report suspicious activity via email and/or a toll-free telephone line. All would be sent to the response committee for internal review, and from there, a set protocol would be established. You are responsible for finding the suspicious activity, so make sure your company knows what to do with the information.
Want to see social media investigations in action? The American Medical News released an article earlier this year detailing cases where social media investigations have led to key pieces of evidence collected in insurance fraud. In one case, a Miami private investigator named Daniel Maya was working for an insurance agency. They were having a hard time keeping tabs on a patient who claimed to be disabled due to injuries from a car accident. Maya decided to look at the 23-year-old's Twitter account to see if he could find any evidence that proved otherwise. The man was tweeting like everyone else, describing where he was going and what he was doing. One tweet described his plans to go jet skiing. Investigators, armed with a video camera, went to the site where the young man was jet skiing and caught him on tape. This $500,000 lawsuit against the city was saved by a tweet.
Even though people know the cost of tweeting such information, they continue to do it anyways, leaving an opening for LP professionals to get the inside scoop. Many people are realizing that they can get the information they need from social media sites, and you can be one of them. But be careful. Those people may be looking to get their hands on you or your company's information.
6. Guard your information. With email still the biggest threat to leaking proprietary information, other modes of online communication are quickly catching up. According to Proofpoint, Inc., 17 percent of companies in the U.S. had confidential information exposed on social media sites like Facebook and LinkedIn in 2009. That figure is up from 12 percent in 2008.
By following blogs and message boards, monitoring YouTube videos, and keeping an eye on social networks, retailers can be aware of issues that arise and respond quickly instead of simply hoping that nothing comes up. Being a part of these social online communities is a risk, but it's becoming a necessity as more businesses realize their potential. Just make sure your company is not vulnerable to hackers and the employees know what they can and cannot share.
7. Manage feedback and build brand loyalty. Not all tweets or Facebook posts are going to blow-up like the Domino's Pizza fiasco, but don't underestimate their importance. Social media gives companies a chance to directly interact with their customers. Examining this feedback can assist you in looking at some of the ineffective operations of the business. And when a company promptly responds to feedback, positive or negative, it builds brand loyalty. A loyal following is the base of asset protection, and you have the chance to prove you respect your customers with every post or tweet. This also gives you the power to put out potential fires the minute they arise. As mentioned before, this is a 24/7 job for a 24/7 world.
