Social Media Heightens Customer Service Opportunities, Risks

Consumers who have used social media for customer service are more engaged and vocal in speaking about their experiences than the general population, says American Express in May 2012 survey results. This can play to companies’ benefits, but also to their detriment. For example, while these consumers are willing to spend 21% more for excellent service, compared to 13% more for the general population, they are also far more likely to say that they have not completed an intended purchase because of a poor customer service experience in the past year (83% vs. 55%). And while they will tell more people about a good experience than the general population (42 vs. 15), they will also spread the word at a far greater rate about bad experiences (53 vs. 24). (more…)