Why Social Customer Service is the Next Bandwagon to Jump On
By Lance Fried Social customer service, or social engagement for customer care as we like to call it, is becoming the new must have for organizations that value their customers. As we all know social media marketing exploded shortly after the launch of Linkedin, Facebook, and Twitter in the early 2000’s. Broadcasting on social media was the next big thing for marketers, but they soon realized that shouting from a social megaphone wasn’t quite enough. Enter promotions, contests, and customer engagement. Promotions and contests serve their purpose, but what I’d like to focus on is the power customer engagement can have on a brand. A study conducted by Gallup measured the effects customer engagement has on sales and revenue. The study found that fully engaged customers account for an average 23% increase in profitability. Furthermore, actively disengaged customers represent a 13% decrease in revenue. Based on these findings, it is clear that it is far more profitable for a company to actively engage with as many of their customers as possible. With respect to social customer service, The 2012 American Express Global Customer Service Barometer found that 50% of those who have used social media for customer service in the past year were seeking a response from a company to help with a service issue. The same study by American express revealed that 55% of consumers decided not to conduct a business transaction based on a poor customer service experience. Nielson reported in 2012 “customers will spend 21% more if they receive good customer service via social media.” Whether customers are posting a blind rant, cry for help, or praising complement about your brand—there is an opportunity for 1:1 engagement; opportunities to increase customer loyalty, provide positive customer experiences, satisfy customers, and maintain a positive brand image. And for you marketers out there, good social customer service helps brand reputation and encourages customers to engage. So, in case you missed it earlier, Social Customer Engagement = Increased Sales. Social Customer Service = Increased Customer Loyalty. Time to jump on the bandwagon.