The consumer conversations taking place on the social web about poor customer experiences can negatively impact an organisations' bottom line and reputation, according to a survey commissioned by RightNow, investigating how Australian consumers want organisations to engage with them through web sites such as Twitter, YouTube and Facebook.
The study found that nearly one-quarter (23%) of online consumers have boycotted an organisation after reading a negative comment on the social web about how that organisation treats its customers. Of those boycotting organisations in this way, 42% said they had previously been a customer of the organisation.
The prolific use of social networks by consumers, and their willingness to create their own content, serves to compound the impact of negative customer experiences on a brand's reputation. Among the survey's main findings:
While negative consumer-to-consumer (C2C) conversations or comments on the social web can have a detrimental effect on consumer spending, RightNow observed that there is also potential for companies to engage and interact with consumers in a positive way through the social web, to help foster brand loyalty and to turn 'badvocates' into advocates. For example:
Similarly, for companies that are successfully engaging consumers on the social web, whether through direct dialogue or carefully executed advertising campaigns, there is still a significant opportunity to generate more sales:
The study also asked consumers to identify the industries they were most likely to post a comment about on the social web, and whether their comment would be positive or negative:
According to Brett Waters, RightNow's vice president for Asia Pacific South, "This serves as a warning for all organisations, both commercial and public, that ignoring the viral nature of the social web can harm both revenue and popularity. Consumers want interaction through these sites, but only when companies take a considered approach."
Categorised as: