BackTake to social media for better service: American Express report
Good experience even leads to Indian consumers spending more with the company, according to a study
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If there is still a company in India that ignores social media and what users or customers say on it, then it’s time for it to make amends because according to the 2015 Asia Customer Service Barometer by American Express, nearly two-thirds (64%) of Indian consumers in a survey that it conducted, felt businesses have increased their focus on providing good customer service in the current economy.
The survey was conducted online among a sample of consumers aged 18 years and above in India. A total of 1,000 interviews were completed by Ebiquity between 10 and 20 August this year. A similar study was also conducted among consumers in Japan and Hong Kong. Of the respondents from the three geographies, those from India were the most digitally savvy in using social media for customer service—71% versus 50% in Hong Kong and 29% in Japan.
Listening to what Indian consumers say on social media will be good for service providers and product manufacturers, as majority of the consumers (89%) stated that they were willing to spend more with a company that provided good customer service. On average, they are willing to spend as much as 22% more with a company that gives superior consumer service. Over three-quarters—78%—said they spent more with a company because of a history of positive customer service experiences.
Level of customer service was the third most important factor to choose a company. In fact, 25% said it was the most important reason.
The top five reasons for which Indian consumers use social media on customer service were:
oSharing information about service experience– 56%
oAsking others about how to get better service– 50%
oPraising a company for service experience– 47%
oSeeking actual response from a company about an issue– 47%
oSeeking recommendations from others about good service providers– 45%.
Social media is an extension of word-of-mouth influence—for good and bad service. In this study, on an average, consumers told 39 people about their good experiences and 42 people about bad experiences. However, Indians use various communication channels to talk about customer service experiences—face-to-face (53%, all the time), social networking sites (83% always or sometimes) and online chat or instant messaging (80% always or sometimes).
Another reason for the popularity of social media for this purpose is the speed with which a company resolves issues posted on such platforms, but the choice of platform depends on complexity of the inquiry. For simple issues, Indian consumers preferred going online (17%)—via a company website or email. For a more complex inquiry, such as returning a product or getting assistance, consumers (22%) preferred speaking with a real person on the phone.
While a good experience means credit and more business for the company, poor experience also elicits a strong response. Indians customers were the most reactive with 73% having dropped an intended purchase or transaction due to poor customer service (56% in Hong Kong and 40% in Japan).
Edited excerpts from 2015 Asia Customer Service Barometer, by American Express.
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