Research shows that 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 fight back and use social media to turn unhappy customers into brand advocates. [source: Harris Interactive, 2011]
The Retail Consumer Report, commissioned by RightNow and conducted online by Harris Interactive in January 2011 among 1,605 online U.S. adults who shopped online during the most recent holiday season, provides a pulse check of the current state of customer experiences. Specifically, how retailers are using social media to win back customers and drive buying decisions.
Unhappy Customers Can Be Won Back via Social Media
68% of consumers who posted a complaint or negative review on a social networking or ratings/reviews site after a negative holiday shopping experience got a response from the retailer. Of those, 18% turned into loyal customers and bought more.
Paying attention to consumer’s negative comments on social media can make a big difference. By listening and proactively responding on the social Web, retailer have a chance to turn disgruntled customers into social advocates. The survey found that, of those who received a reply in response to their negative review:
— 33% turned around and posted a positive review.
— 34% deleted their original negative review.
However, consumers have fairly low expectations that retailers will respond to their negative posts. Of the 32% of consumers that did not receive a response to their negative review from the retailer, the survey confirmed:
— 61% of consumers would be shocked if a retailer responded to their negative comment on the social Web.
Great Customer Service Drives Buying Decisions
A full half of consumers cited great customer service and/or a previous positive experience as influencing their decision to buy from a specific online retailer.
The data underscores that customer experiences shape consumers╒ decision to buy or not to buy from a specific retailer. For example, after a positive shopping experience,
— 31% of consumers purchased more from the retailer.
Social advocacy can also help drive sales, the survey found:
— Nearly a third of consumers researched what customers said on social networking and reviews Websites while shopping online.
On the flip side, poor customer experiences can stop consumers in their tracks and kill a potential sale. The survey found, after a negative holiday shopping experience with an online retailer:
— 21% of consumers decided not to buy anything from the retailer.
Happy Customer = Brand Advocate
For those consumers that had a positive holiday shopping experience with an online retailer during the past holiday shopping season,
— 21% recommended the retailer to friends.
— 13% 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 percent 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 percent of consumers were frustrated by information that was inconsistent between the retailer’s Website and customer service representatives.