Social Media Users Are Squeakier Wheels When It Comes to Customer Service Not convinced your business should provide customer service via social media? Turns out, social media users spend more when they receive great service.

By Mikal E. Belicove

Opinions expressed by BIZ Experiences contributors are their own.

Social Media Users Are Squeakier Wheels When It Comes to Customer Service

You may have heard that acquiring a new customer can cost up to five times more than keeping the customers you already have. Yet poor customer service continues to irritate many consumers.

More than half of U.S. consumers (55 percent) polled for the 2012 American Express Global Customer Service Barometer (PDF) say they've turned their backs on at least one potential purchase in the past year as a result of what they saw as poor service. And while only 17 percent of those surveyed say they've used social media to seek a resolution to their customer service query, this savvy group carries a lot of weight in how companies should respond.

Why? A whopping 83 percent of consumers who use social media to try to resolve a service or support issue have bowed out of a purchase when they have a bad service.

What's more, social media users say they spend 21 percent more with companies that provide great service. And these particular users say they're far more likely to tell others about their experience.

For example, consumers who use social media for customer service will tell an average of 42 others about a good experience -- and tell an average of 53 people about a bad customer-service experience. The general population, in contrast, will tell 15 people about a good experience and 24 about a negative one.

Zack Urlocker, chief operating officer of Zendesk, the help-desk software behind Zappos, says the rise of social media means customers expect authentic, truthful and open communication and won't be fooled by excuses, runarounds and insincerity.

"Businesses need to develop a proactive customer-engagement strategy that seamlessly integrates social media, in order to temper the likelihood of something spinning out of control." He said the way to do that is to make sure you talk to your customers through their preferred communication vehicle, such as Twitter or Facebook.

If your company is lost when it comes to using social media to field and address customer service and support-related issues, I recommend bookmarking and reading TheSocialCustomer.com, as well as downloading and reading The Ultimate Social Contact Center Guide, free from Fonolo.

Mikal E. Belicove is a market positioning, social media, and management consultant specializing in website usability and business blogging. His latest book, The Complete Idiot’s Guide to Facebook, is now available at bookstores. 

Want to be an BIZ Experiences Leadership Network contributor? Apply now to join.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for BIZ Experiencess to pursue in 2025.

Science & Technology

OpenAI's Latest Move Is a Game Changer — Here's How Smart Solopreneurs Are Turning It Into Profit

OpenAI's latest AI tool acts like a full-time assistant, helping solopreneurs save time, find leads and grow their business without hiring.

Business News

'We Don't Negotiate': Why Anthropic CEO Is Refusing to Match Meta's Massive 9-Figure Pay Offers

Anthropic CEO Dario Amodei laid out his rationale on a recent podcast for why he will not play the competing offer game despite Meta CEO Mark Zuckerberg's attempts to poach AI talent.

Business News

Apple Smashes Expectations With $94 Billion Quarter. Here's How the iPhone Maker Did It.

Apple just reported a significant revenue beat for its latest quarter, exceeding analyst expectations.

Science & Technology

AI Isn't Plug-and-Play — You Need a Strategy. Here's Your Guide to Building One.

Don't just "add AI" — build a strategy. This guide helps founders avoid common pitfalls and create a step-by-step roadmap to harness real value from AI.

Business News

Here's How Much Palantir Pays Its Top Tech Talent, From Software Engineers to AI Researchers

With stock up nearly 500% in a year, Palantir is booming. Here's how that translates into pay for its employees.