By Amanda Ryder
Responding to online bashers works: study
Retailers are using social media channels to bring back dissatisfied customers — and it's working.
March 10, 2011 – According to the Retail Consumer Report,
commissioned by RightNow and conducted by Harris
Interactive in the U.S., retailers are using social media channels to bring back
dissatisfied customers. The research demonstrates that by listening and
proactively responding to complaints on the social web, retailers have
an opportunity to turn disgruntled customers into brand advocates.
The survey, conducted in January 2011 among consumers who
shopped online during the most recent holiday season, explores
modern-day consumers’ expectations and how retailers are using social
media to recapture unhappy customers, as well as influence their buying
decisions. Read the full results and view the industry infographic in
the Retail Consumer Report.
Win back unhappy customers via social media
The Retail Consumer Report
found that 68 per cent of consumers who posted a negative review on a
social networking or ratings/reviews site after a poor holiday shopping
experience got a response from the retailer. Of those, 18 per cent turned
around and became loyal customers and bought more.
Retailers are using social media to not only recapture
dissatisfied customers, but also turn them into brand advocates. The
survey found that retailers are converting unhappy customers into brand
champions by listening and proactively responding to their complaints on
the social web. Among consumers who did get a response from the
retailer to their negative review, the survey determined:
- 33 per cent followed up and reposted a positive review; and
- 34 per cent deleted their original negative review.
However, consumers have low expectations that retailers will
monitor and respond to their negative reviews. Among the third of
consumers whose negative review did not get a response, the survey
determined that 61 per cent would be shocked if the retailer had
responded to their negative comment on the social web.
“When consumers have a bad experience, they will not come back.
And now, more than ever, unhappy consumers are turning to the social web
to share their complaints. However, retailers have an opportunity to
wow consumers by listening and effectively responding to their
complaints on the social web. Retailers can bring back unhappy customers
and turn them into brand advocates,” says Greg Gianforte, chief executive officer, RightNow.
Great customer service influences purchasing decisions
The Retail Consumer Report
demonstrates that great experiences drive consumers’ buying decisions. A
full half of consumers indicated that they were influenced to buy from a
specific online retailer by great customer service or a previous
positive experience with the retailer. After a positive shopping
experience, 31 per cent of consumers purchased more from the retailer.
Also according to the survey, consumers’ buying decisions are
influenced by the brand advocacy of fellow consumers on the social web.
Twenty-eight per cent of consumers researched what customers wrote on
networking and reviews websites, while shopping online.
Happy customers became brand advocates
Among consumers that had a positive shopping experience with an online retailer:
- 21 per cent recommended the retailer to friends; and
- 13 per cent posted a positive online review about the retailer.
To support consumer brand advocacy, it is imperative that
retailers ensure the information on their website is accurate and
consistent. The survey found that 38 per cent of consumers turned to the
retailer’s website for information or support with online shopping.
However, one of the top frustrations consumers had when shopping online
was a lack of consistent information from retailers. Specifically, 22
per cent of consumers were frustrated by information that was
inconsistent between the retailer’s website and customer service