• by Jack Loechner , Staff Writer @mp_research, May 5, 2008

Customer Care Reputation Studied Online Before Making Purchases

Among the initial findings of a new study, "Exploring the Link Between Customer Care and Brand Reputation in the Age of Social Media," by the Society for New Communications Research, "... there is a growing group of highly desirable consumers using social media to research companies: 25- to 55-years old, college-educated, earning $100,000+..." said Dr. Ganim Nora Barnes, senior fellow, SNCR.

As social media usage becomes more ubiquitous, says the summary report, affluent consumers are using social media channels to share their personal customer service experiences and learn about others' care experiences when making purchase decisions.  

More than 300 consumers who are active Internet users participated in a survey focusing on how customer care influences brand reputation given the widespread adoption of social media.  Top findings include:

• 59.1% of respondents use social media to "vent" about a customer care experience
• 72.2% of respondents research companies' customer care online prior to purchasing at least sometimes
• 84% of respondents consider the quality of customer care at least sometimes in their decision to do business with a company
• 74% choose companies/brands based on others' customer care experiences shared online
• 81% believe that blogs, online rating systems and discussion forums can give consumers a greater voice regarding customer care
• less than 33% believe that businesses take customers' opinions seriously
• Search engines are felt to be the most valuable online tools for this research

In terms of industry segments doing the best job in using social media to respond to customer care issues, technology, retail, and travel companies do the best, says the report, while utilities, health care, and insurance were least likely to receive positive endorsements.

Lynda Kate Smith, vice president, Care Business, Nuance Enterprise Division, concludes "With consumers increasingly using social media to share feedback... it has become...  difficult for businesses to... hide from bad experiences."

For more information, please visit the Society for New Communications Research here.