Something I found out firsthand this past week is confirmed by a press release last week via Garntner, a British technology research firm. Companies that don’t use social media to connect their customer base is the modern-day equivalent of ignoring customers’ phone calls!
“The dissatisfaction stemming from failure to respond via social channels can lead to up to a 15 percent increase in churn rate for existing customers,” said Carol Rozwell, vice president and distinguished analyst at Gartner.
This issue will matter more to businesses the more widely-adopted social media and internet marketing becomes, as it is an fast, flexible way of reaching out to customers with concerns and advertising products.
The reason behind this? Businesses are more successful when they reach out to their customers in the channel they would like to be reached in, and more and more people are choosing to use social media for much more than talking to friends. Take, for instance, a company like Comcast. After a frustrating round of phone calls when my Internet was just about (it was really slow!) down, I decided to reach out through their customer service twitter, @ComcastCares. It was very friendly and fast, and got my issue taken care of roughly two days before the customer support phone number told me it would, and it was certainly a good demonstrator of the power of a good social media agency.