Social Media Creates Brand Advocates

Retailers can use social media to turn consumers who have had a negative experience with their brand into brand advocates, according to [pdf] a new report from RightNow and Harris Interactive. Data from “The Retail Consumer Report” indicates 68% of US consumers who posted a complaint or negative review of a holiday shopping experience during the 2010 holiday season were contacted by the retailer.

Social Media Contact Produces Results

Of that 68% who were contacted following a negative social media posting, 34% deleted their original negative review. Another 33% turned around and posted a positive review, while 18% became a loyal customer and bought more.
These figures mean that 85% of customers who posted a negative review of a shopping experience and were then contacted by the retailer wound up taking an action that was positive for the retailer. Two-thirds (67%) of them took an action through social media directly negating their original negative posting.

Many Ignored Consumers Would Be Shocked Otherwise

In many cases, the 32% of US consumers who posted a negative review of a holiday shopping experience in 2010 and were ignored by the retailer simply had a bad impression reinforced. Six in 10 (61%) of these consumers said they would have been shocked had the retailer contacted them.

Great Customer Service Drives Online Buying Decisions

A full half (50%) of consumers cited great customer service and/or a previous positive experience as influencing their decision to buy from a specific online retailer. After a positive online shopping experience, 31% of consumers purchased more from the retailer, 21% recommended the retailer to their friends, and 13% posted a positive social media review.

Other Findings

• 85% of consumers said they would be willing to pay anywhere between 5-25% over the standard price to ensure a superior customer experience.
• Nearly a third (31%) of consumers researched what customers said on social networking and reviews websites while shopping online.
• After a negative holiday shopping experience with an online retailer, 21% of consumers decided not to buy anything from the retailer.
• 38% of consumers turned to a retailer’s website for information or support with online shopping.
• 22% of consumers were frustrated by information that was inconsistent between the retailer’s website and customer service agents.

US Youth Use SocNets

Retailers focusing on a young customer demographic might want to pay extra attention to results of this report as a high percentage of US youth ages 8-24 uses social networking sites, according to another recent study from Harris Interactive. Results from “YouthPulse 2010? indicate three-quarters of 8-to-24-year-olds use a social networking site and about two-thirds (68%) spend time on a social networking site daily.