Introduction: Times have changed and with it the way companies do business. Businesses use social media to help them build their brand, find customers and reach new markets. According to the 2012 Social Media Marketing Industry Report, “94% of all companies with a marketing department use social media as part of their marketing platform” (Stelzner). Retail activities have proven to be a great way to (re)direct the shopper experience. With the advent of smartphones, customers are using social media more than ever, “Facebook and Twitter are among the favorites as 48% of customers respond to retailers' posts” (Stelzner). Although retailers use social media for marketing purposes, they often fail to realize the full potential of social media, especially in customer relationships. Problem: One area often overlooked by retailers is the use of social media for customer relations. According to research conducted by Oracle, in today's world, 35% of companies do not integrate social media for sales or customer service (Oracle 4). Social media can benefit retailers in many ways, but it can also negatively affect them. The voice of the customer is becoming louder thanks to social media and customer complaints no longer remain in a small group of people - they go viral. According to Lauren Paxman, this happened to Keara O'Neal who was on a shopping trip to find bridesmaid dresses for her wedding at the high-end store GASP. At first the clerk, Chris, was very helpful in looking for her dresses, but then he became aggressive in pressuring her to get the dress; he even became disrespectful by ridiculing her size 12 and making inappropriate comments such as “Have fun shopping at Supre…I knew you were a joke the moment…you are in the middle of paper…in today's world a the customer complaint no longer remains private. We live in a world where borders are shrinking every day: the power of the Internet has made people more integrated and made communications easier. According to Michael LeBoeuf, “a typical company only hears 4% of its dissatisfied customers” (LeBoeuf) without realizing that with social media that 4% can approach 100%. This is why managers should be well prepared to deal with these situations. Managers should prepare their employees to deliver the best service and show them how to solve problems in a way that allows both parties to benefit. It is always best to avoid making the problem bigger. Social media should be used to be responsive so that when customers they have a problem; employees are available to help them. Social media must help retailers get closer to the consumer, not push them away.
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