Consumers in cyberspace turn to social networking sites for neighborly advice
Sunday, January 25, 2009
BY JOSEPH R. PERONE
Star-Ledger Staff
Chris Perrin, a food writer who lives near Kansas City, was trying to decide where to vacation with his family this summer.
The destination had to be kid- friendly, have decent shopping and interesting cuisine. So, he asked for recommendations on Twitter, a social networking blog.
Elizabeth Norton of Cape May offered her South Jersey town, known for its quaint Victorian architecture and easy pace of life.
“She told me she would send me a list of restaurants up and down the beach,” Perrin said.
Norton, a 27-year-old mother of two, was happy to oblige. “We have seafood, and there’s a place here that makes hot dogs a million different ways,” she said.
Consumers like Perrin and Nor ton are increasingly turning to social networking sites such as Facebook, MySpace and Twitter to find the best deals on travel, products and services. Cyberspace neighbors are replacing the trusted friend or relative who once dispensed advice on where to go to buy a product wholesale.
“You have a built-in group of experts whose opinion is more valuable to you than a professional product reviewer,” said Allen Weiner, an analyst for Gartner, a technology research firm in Stam ford, Conn.
Savvy companies are also finding ways to join the virtual backyard discussions.
“More and more product companies are going to these sites and trying to get feedback on their products,” Weiner said.
For example, Starwood has a Facebook account that asks members where it should build new hotels. Hertz, the Park Ridge-based rental car company, has a blog on Twitter for ConnectbyHertz, a new service that lets customers rent vehicles by the hour.
“A lot of the people we are trying to reach with ConnectbyHertz are young urban professionals who are into social networking,” said Don Serup, Hertz vice president of internal audit. “It’s a really good way to get the word out about what we’re doing.”
‘CUSTOMERS ARE IN CONTROL’
But tapping into social media sites can also pose risks for compa nies. A clumsy pitch or false move can put a company at the mercy of other bloggers who can instantly criticize their brand and mobilize public opinion against them.
Successful social networking re quires relinquishing control of your company’s message, brand and even logo, which is something many marketers are loathe to do, said Larry Bailin, chief executive of Single Throw internet Marketing, a Wall Township firm that advises companies on social media.
“Most companies are afraid to fail in social networking, or if they are really big, they just throw money at everything and hope it works,” Bailin said. “Customers are in control of the medium and the message, and they know more about your product than you do.”
Wal-Mart was criticized in 2006 when it put out a blog called “Wal- Marting Across America,” that ap peared to be written by a couple who were traveling the country in a recreational vehicle and staying in Wal-Mart parking lots. The blog was actually written by two employees for Edelman Public Rela tions, which represents Wal-Mart.
Sony and its ad agency, Zipa toni, also ran afoul of the blogging community that same year when they created a fake blog about a guy who was hoping his family would buy him a Sony PSP gaming station for Christmas.
Companies have to maintain credibility when they create blogs and provide useful information rather than another marketing message, according to Bailin.
“Sony and Wal-Mart tried to trick people,” he said. “Companies have to remember that if you make somebody unhappy, they can tell thousands of people with a keystroke.”
Social networking can prod companies into taking action.
For example, Toys “R” Us was mentioned in the best-selling book, “Groundswell,” by Charlene Li and Josh Bernoff, which chronicled how social media is changing commerce.
The authors pointed out that while shoppers on the Toys “R” Us website were active in social net working, the Wayne-based retailer was failing to tap into those discussions.
In October, the company changed its website to give more prominence to its “Mom’s Favorites,” so mothers “can rate products and share valuable information with others,” said company spokeswoman Jennifer Albano.
The retailer also created a “My Deals” section designed to give customers access to special offers and the ability to sort deals by category.
MOTHER KNOWS BEST
Mothers carry a lot of weight on the internet, according to Melissa Garcia, a self-described mommy blogger and founder of consumerqueen.com, a social networking site for women who are looking for good deals.
“Moms want to hear from other Moms,” said Garcia, who lives in Edmond, Okla. “If a Mom sees the Gap has clothes for 50 percent off, she can share that because everybody is looking for ways to save a buck.”
Twitter is important to her “be cause companies are contacting me to do product reviews,” she said.
Last month, Dirt Devil gave away a dozen free vacuum cleaners on her site as part of a contest, she said. Garcia also said she received a free laptop from Dell in return for reviewing a computer.
“There were no strings attached,” she said. “I just have to tell my readers if I like it or not and what I would change about it. I post reviews, whether they are good or bad. So, companies know my good reviews are all the more real.”
Community networks can also help consumers engage with each other, according to Jim Willis of Red Bank.
“I think most everyone who uses social networking sites has at one point used them to get recommendations on products or services,” Willis said. “I don’t know anyone who uses those sites exclusively for recommendations, but it is a typical use of Facebook or Twitter to solicit feedback.”
Willis, who has a website at http://jimwillis.org, runs a Red Bank newsletter called redban keastsideparkneighbors. It has 120 subscribers who trade information about everything from baby sitters to carpenters and tree cutters.
He turned to his newsletter friends when he wanted to waterproof his basement this month. Another neighbor had received bids from several contractors and for warded them to Willis.
A neighbor’s recommendation carries a lot of weight, he said, be cause group members must iden tify themselves.
“Because there are names and addresses attached, there is an implicit sense of credibility because it is not anonymous,” said Willis, who formerly worked as chief information officer for the state of Rhode Island. “I’m associating my reputation with any recommendation I make.”
Not every internet champion is going on-line to get the best deals. Debbie Galant, who runs the popular Baristanet.com website, an Essex County blog, said she prefers to patronize local merchants.
“I can’t think of anything I bought because someone recommended it on Facebook,” she said. “I’m not one of those people who sits at a computer and is trying to shave $5 off something.”
Joseph R. Perone can be reached at jperone@starledger.com or (973) 392-4262. [