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in: Loyalty Industry
Amex Study: Social Media Raises the Stakes For Service
Study highlights the empowerment of buyers by social media

The most popular ways consumers address service inquiries continue to be speaking to a live representative (either on the phone or face-to-face), and through company website or e-mail. That said, one in five consumers (17%) say they've used social media at least once in the last year to obtain a customer service response, and this relatively small group of consumers is extremely engaged and vocal.

"Delivering outstanding service creates impassioned advocates and can serve as a powerful marketing weapon for companies," said Jim Bush, Executive Vice President, World Service, American Express. "For example, consumers who have used social media for service in the last year are willing to pay a 21% premium at companies that provide great service. They also 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."

People who have used social media for customer service at least once in the last year are willing to spend substantially more (21%) with companies they believe provide great service -- in contrast with the general population (13% more) and those who have not used social media for customer service (11% more). They are also far more vocal about service experiences, both good and bad. In addition, more than 80% of these consumers say they've bailed on a purchase because of a poor service experience, compared to 55% overall.