Customer Service by Social Media: More Social, More Business

Social Media: The New Telephone or Email 

For many SME business owners, social media is just an advertising and marketing tool, period. But little did they know it’s also a powerful customer service portal, more effective in reaching out to more people than print ads, TV commercials, or any promotional gimmicks. Email and telephone may still be the most preferred forms of contact, but social media does more than just drive communication between brands and customers, if we can gain nuggets of wisdom from the following stats:

• Engagement leads to more sales: Customers who engage with companies over social media are more loyal, spending 20% to 40% more money on those companies than other customers. (Bain & Company)
• Customer expectation: 46% of customers expect brands to provide customer service on Facebook. (Oracle Retail)
• No reply, no business
• 88% of consumers are less likely to buy from companies that leave complaints on social media unanswered. (Conversocial)
• Companies that refuse to communicate with customers by social media can see a 15% increase in their churn rate. (Gartner)
• Greater anticipated response time: Of the customers who have ever attempted to contact brands or companies for customer support through social media,
• 32% expect a response within 30 minutes. (The Social Habit)
• 57% expect the same response at night and on weekends as during normal business hours. (The Social Habit)
• Prompt response, happy customers: 83% of complainants that received a reply on social media liked or loved the fact that the company responded. (Bain and Company)
• Venting anger online
• 59% of customers aged 25 to 34 share poor customer experiences on social media. (NewVoiceMedia)
• 45% and 63% share and read negative reviews on social media, respectively. (Zendesk)
• 74% believe that criticizing a brand in social media will lead to better customer service. (Brandwatch)

In short, social media helps customers make informed purchase decisions and increase their patronage of brands, actions that indeed benefit brands. On the other hands, brands will have to think twice about ignoring their customers’ complaints about poor service. Customers will turn to social media to release their pent-up frustrations and discourage like-minded shoppers from doing business with them. This will push brands to appreciate their customers better and value their time (and money).

Why the emergence of social media as a customer service portal? Customer demands, of course! Other than quality products, they also demand:

• Immediacy – When customers are upset or when they need answers to their questions, they expect a response right away. They don’t want to wait on hold for 30 minutes nor wait for 20 hours for their email to be responded to. Time is gold indeed for both customers and brands.
• Transparent conversation – For customers, social media is the best outlet in airing their grievances against brands for poor service – and the way to be heard by others. For brands, it’s a medium to let their other customers know they are handling aggrieved customers’ concerns well, thus giving them a feeling of relief and elation and ensuring their continued patronage.

With a great number of people hooked on social media, SME business owners should best utilize the medium not only to keep existing customers and attract new ones, but to show them that they care and are sincere in providing excellent customer service.