Following another discussion during the class on how important it is to be responsive to your customers via social media, I came across this quite interesting article.

It is a well-known fact that nowadays brands rely heavily on social media and particularly reviews.Those brands that respond to consumer reviews tend to have higher brand loyalty. Interestingly, shoppers who saw a brand respond to a review in which the product owner misused or misunderstood a product were 186% more likely to purchase than those who didn’t’ see the response!!!I Consumers who saw a brand respond to a negative review by offering a product refund, upgrade, or exchange were 92% more likely to purchase than consumers who didn’t see the response!! Seventy-one percent of consumers who saw a brand respond to a review changed their perception of that brand, cites the study. That brings us again to the disaster that United Airlines faced simply because they did not respond and did not admit their mistake at the very beginning.

So what does a brand’s response to a negative online review mean to its customers? According to the research study, 41% of consumers say it makes the brand seem like it really cares about its customers . Of course, brands should also not be too social; otherwise the consumers will think that once they start complaining and yelling that will result in refunds, free products etc

This sharing of ideas and services is also causing so-called collaborative consumption or, The Collaborative Economy. “This is embodied in the peer-to-peer lending economy in which consumers connect via social, mobile, and online to share their possessions, such as a car or an apartment.”

So in the end, it is always up to you what you make of your social media. However, one should never underestimate its power nowadays.

Follow