Social Media is widely adopted by people worldwide and the demand for their queries from various firms via Social media has become almost mandatory. However, those companies that are reluctant to respond to the customers’ queries, most probably might be subjected to their customers’ dissatisfaction.
According to Gartner, refusing to communicate by social media is going to be harmful to companies as ignoring phone calls or emails, by 2014. As with the latest trend of companies trying to promote their products via social media, the same type of response is going to expected by the customers as well.
Carol Rozwell, vice president and distinguished analyst at Gartner said:
“The dissatisfaction stemming from failure to respond via social channels can lead to up to a 15 percent increase in churn rate for existing customers.”
As social media is consuming 20% of total internet usage time, it’s important for the business professionals or tech giants to be up to date about the social media market.
Gartner recommends that firms should create a kind of framework that allows them to deal with social media commentary on relevant topics, as not all the comments are relevant and it’s counterproductive to give response to everything. Over half of the enterprises observe social media but only 23% gather and analyze data.
As per socialbakers, over 25% of firms globally, disallowed their users from posing questions or feedback on Facebook. Also U.S based companies tend to perform less effectively via social media compared to their regional peers. Only 30% of the social media user’s feedback is being addressed by firms, on average.
Most of the firms fear over driving their business through social media, fearing the negative impression and also invasion of privacy from users. Such firms should come out of such fear and adopt social media.
On the other side, most of top companies utilize social media for their growth. Social media has become the success formula for some of the world leading companies. 70% of corporate Facebook pages belong to fortune 100 companies, responding to comment and feedback actively. On Facebook and Twitter, each fortune 100 companies are maintaining 10 different accounts, on average.
Number of case studies are already floating over internet which showcases how customers dragged unresponsive vendors over social media only to respond and act on their grievances. Consequently, most of the brands have already setup a ‘social Media wing’ to monitor and attend their customers issues before any daunting damage.
Organizations should quit fearing from the adoption of social media for their business. Rather they should equally participate in responding to comments that are most relevant to their business, hence increasing customer satisfaction and reducing customer churn rate. In addition to that, firms should analyse & capture the communicated things over social media for further better understanding and growth.
The stat from above is astounding (“The dissatisfaction stemming from failure to respond via social channels can lead to up to a 15 percent increase in churn rate for existing customers) especially when you consider it in the context of potential customers viewing how the “existing customer” base is ignored on social media.
What do you think….is the churn rate higher or lower than 15%?
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Is it anyone surprised by the unresponsiveness of companies on social media stated above?