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.
Importance of Social Media in Learning About Customer Care |
Frequency of
Social Media Use (for purchase decisions) | % of Respondents |
Always | 6% |
Often | 29 |
Sometimes | 37 |
Rarely | 19 |
Never | 9 |
Source: SNCR, April
2008 |
Importance of Quality of
Customer Care Offered in Purchase of Product or Service |
Frequency of "Care" investigation before
purchase | % of Respondents |
Always | 10% |
Often | 45 |
Sometimes | 29 |
Rarely | 13 |
Never | 3 |
Source: SNCR, April 2008 |
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.
Degree of
Agreement That Customer Care Experience Shared Online is Important in Purchase Choice |
Degree | % of Respondents |
Strongly agree | 14% |
Agree | 60 |
Neutral | 18 |
Disagree | 7 |
Stongly disagree | 1 |
Source: SNCR, April 2008 |
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
Importance of Information Sources of Customer Care in Making Purchase Decision |
Information Source | Average Rating Index(4.0 = Max
Value) |
Search engines | 3.79 |
Online rating | 3.69 |
Discussion forums | 3.52 |
Blogs | 3.24 |
Company websites | 3.11 |
Advocacy sites | 2.88 |
Social networking sites | 2.50 |
RSS | 2.35 |
YouTube | 2.14 |
MicroBlogging site | 2.09 |
Source: SNCR, April 2008 |
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.