Generation Y is using a viral way to voice dissatisfaction.
By Deepak Chitnis
WASHINGTON, DC: A new study put out by NewVoiceMedia, a US company dealing with cloud-based and contact center technology, shows a rapidly growing trend in which Americans are using social media to complain to businesses when a product or service doesn’t meet their approval. But the real kicker is this: companies are actually listening.
The study polled 2,030 adults from across the entire US about how they voice dissatisfaction and “negative sentiment” towards a particular brand or company when they’re unsatisfied. Over one-third of those surveyed (34%) say that they voice their opinions online saying that by doing so, their opinion is being heard by potentially millions of people as opposed to just one or two employees.
Additionally, almost two-thirds (59.3%) of those who said they complain online are in the age group of 16-34, or what’s commonly referred to as either Generation Y or “The Millenials.” The younger-skewing demographic is not particularly surprising, given the proclivity younger people have towards technology and its various uses, but what this means is that in the years going forwards, the 59.3% number is only bound to get larger, as technology increases and more youths come of spending age.
Social media is proving to be arguably the most powerful public relations tool in a company’s arsenal; in fact, nearly all major companies – as well as several of the smaller ones – are creating dedicated social media teams and managers that work across departments, coordinating with marketing, sales, and PR to engage consumers on Facebook and Twitter. This gives large, faceless corporations a more human touch and allows them to keep their finger on the public pulse, all in the pursuit of driving sales up.
By maintaining an active and engaging presence on social media, companies can nip bad publicity in the bud. For example, say you order a pair of jeans from Gap. It comes in the mail about a week later and you find a huge hole in one of the legs. Rather than drive all the way to the mall and exchange the jeans for something at your local Gap, you go on Gap’s Facebook page and write “Ordered jeans from Gap, got them today and they are torn! Can I get a refund/exchange? Never ordering from Gap again!”
By writing on their Facebook page, all of Gap’s 5.58 million Facebook followers will see your complaint, giving the company more than enough incentive to reply promptly with something along the lines of “Hi (your name), we’re terribly sorry for your inconvenience. You can return the item via the package in which it was shipped to you, or you can return/exchange it at your local Gap retailer. Unfortunately, we can’t refund the shipping and handling charges, but hopefully you can find what you’re looking for in-store!”
Isn’t that better than arguing with a salesperson in the store for half an hour, or talking to a robot on the company’s customer service line for even longer? And it obviously behooves the company to show that they’re actively trying to solve problems and answer questions, rather than hide in their corporate office buildings, counting their revenue and coming up with new ways to screw with customers.
The numbers don’t lie: 70% of survey respondents said that good customer service was critical to whether or not they would return to a particular store or business, while 69% said that good customer service would be enough of a factor in them recommending the business to their friends and family. Forty-two percent of those surveyed said that if a company has good customer service, they’d be willing to spend more money at their business.
“Customers want personalized and engaging experiences every time, through every channel,” said Jonathan Gale, the CEO at NewVoiceMedia who commissioned the research. “Great customer experience is the critical differentiator and by doing it well, organizations can drive the customer acquisition, retention and efficiency that make leading companies successful.”
The most staggering number shared by NewVoiceMedia is that somewhere around $41 billion worth of revenue is lost collectively each year by companies that do nothing to fix their broken customer service models. If you have a bad experience at Gap – I know it sounds like I’m picking on them, but in reality I’m a fan – and take your business elsewhere, that could end up costing them a fortune.
The “digital natives” – a term used to describe those born or brought up in the age of technology, and who are therefore savvier than most with it – are becoming an increasingly powerful demographic for businesses of all kinds.
Social media has shown its power over the past several years, as Facebook and Twitter (along with, to a lesser extent, Google+, Instagram, and Pinterest) continue to captivate billions of people around the world. Online customer service, much like online shopping, may be the future of business/consumer interaction, and could actually be the norm in the next 10-20 years.
The digital age marches on.