Do you remember the Oprah Effect – how can you forget it? During the time of hosting the Oprah Show, the reach and influence of having your products mentioned by Oprah at 4pm each day could amount to millions in sales and exposure for your business.
Although the Oprah Effect is still valuable, the age of influencers seems to be here to stay. I was a guest on a talk show a few years ago with a woman who worked diligently to have her jewelry line featured by Oprah, however, her sales were marginal at best, until she connected with top social media influencers who began wearing her necklaces, while sharing them on Instagram. Sales skyrocketed thereafter.
Then came the Kardashian/Jenner family breathing new life into the meaning of social influence and currency, without a daily platform. The Kardashian/Jenner ladies earn upwards of $500,000 to gain access to their massive Twitter and Instagram following, and for a good reason – they influence the market. So it was not a surprise that their words could also have an adverse effect as well, as noted with Kylie Jenners’ tweet, which plummeted the value of Snapchat recently.
sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad.
— Kylie Jenner (@KylieJenner) February 21, 2018
Kylie Jenner’s tweet created a sense of urgency for the early stage investors of Snapchat to find solutions and seek accountability for the company’s valuation. Snapchat missed the mark by failing to pay attention to their top influencers and continuing to keep up with the formula that made the social media platform such a success – the experience. It only took one 18 character message to her 24 million followers (and counting) to cause a six percent drop, which resulted in a $1.3 billion loss for the social media giant.
So where did Snapchat go wrong and how can you avoid the same mistakes while building your company? There are three things you can learn about the importance of listening to your customers and the long term impact it will have on your business.
Kylie Jenner’s tweet was a reminder about the global reach of an experience and how others will react as a result. Think of referrals as “the other social media.” People do factor in an influencer’s opinion as a deciding factor to buy your product or service.
Providing a great experience is key.
With every celebrity and influencer interview I conduct, my goal is to create a great experience. Remember, it only takes one negative experience to impact the value of your business. Snapchat is not the first public company to face this issue. Whether you offer a product or a service, creating a unique experience will create lasting value for your company.
Fix the problem fast.
Kylie may have tweeted about her experience, but she was essentially marketing to her tribe. Although prevention is better than the cure, users have been complaining about the update to Snapchat through Change.org for a while, without any resolve, until Kylie Jenner tweeted about the experience. Their response was a reactive approach to valuation, not a response approach to satisfy their users. The voice of your customer matters.
More Info: www.inc.com