May 16, 2012, 4:58 PM

Good customer service via social media can lead to more spending

A survey finds that 17% of online consumers sought service via social media.

Lead Photo

Retailers that want to persuade consumers to spend more should do more to offer good customer service via social media. That’s the message of a recent survey report from American Express World Service.

An online survey conducted in February of 1,000 U.S. consumers found that 17% of respondents had used social media for customer service at least once within the past year. Those consumers are willing to increase their spending by 21% with companies that provide “great” customer service, the report says. That compares with an 11% bump in spending for those respondents who had not used social media for customer service.

“Delivering outstanding service creates impassioned advocates and can serve as a powerful marketing weapon for companies,” says Jim Bush, executive vice president of American Express World Service, charged with providing service to the payment card network’s global consumers.  “[Those consumers] tell three times as many people about positive service experiences compared to the general population. Ultimately, getting service right with these social media savvy consumers can help a business grow.”

The survey also found that 80% of the respondents who used social media for customer service failed to complete a purchase with a retailer because of poor customer service. For all respondents, 55% failed to buy because of poor customer service.

For those consumers who have used social media for customer service, the report also says that:

• 50% sought a response from a company about a service issue.

• 48% praised a company for good service.

• 47% shared information about service issues with other consumers.

• 46% vented their frustration with poor service .

• 43% asked other consumers on social media about how to get better service from a company.

comments powered by Disqus

Advertisement

Advertisement

Advertisement

From IR Blogs

FPO

Jim Tompkins / E-Commerce

Alibaba's great leap forward in China logistics

The giant e-commerce company has projected spending $50 billion to create a modern logistics network ...

FPO

Yevgeny Senkevich / E-Commerce

Why you should treat every SKU as its own line of business

Some items perform well in one marketing channel and not in another. Some bring in ...

Advertisement