“It’s nothing personal, it’s just business” is a phrase that, unbelievably, still lingers in some modern business owners’ lexicon. The reach of social media, the rapid rate at which consumers can communicate and the speed with which they can congratulate or condemn means that whether you’re in customer service or marketing: business is always personal.
When customers use social media to query or complain, the business is presented with a unique opportunity: to personally engage with this one customer. Studies into complaints made over social media indicate that 50% of customers give a brand only one week to respond to a complaint before they stop doing business with them. The same study indicated that 89% of customers began business with another company after a poor experience. Can you afford to stay silent?
It would be unreasonable for a business to completely change their terms of service on the whim of one customer… but prompt acknowledgement and resolution of a complaint online can help a customer to not only forgive the grievance, but flip their view of the company from negative to positive, thereby strengthening brand loyalty.
Another study indicated that after having two-way interaction with a brand over social media, 90% of customers would recommend the brand to others. In developing an emotional connection, a sense of loyalty, between customer and brand, social media is an invaluable and incredibly effective approach.
Still not sure just how “personal” it can be? In 2008, United Airlines were shown just how effective social media can be as a weapon when it was used against them with humiliating and ruthless efficiency. After irreparably damaging musician Dave Carrol’s guitar during a flight, and refusing to reimburse him despite 9 months of negotiations, Dave released a song on YouTube which blasted their business and customer service. The song went viral, and four days after its release, United’s stock had dropped by 10% – an estimated $180 million.
As more consumers choose social media as the means to communicate with the brands they use, the age old adage “it’s nothing personal, just business” should recede from all minds serious about strengthening brand loyalty, and increasing their customer base.