Companies wrestle with socially networked consumer power

Beverley Head
Wednesday, 27 July 2011 14:24

Business IT - Networking

Australians' hunger for social media has soared in the last 12 months with a new report issued today saying that while 53 per cent of the population classed themselves as active users of sites such as Facebook or Twitter a year ago - that had now soared to 69 per cent. Australian companies, recognising the power of a negative comment on social media sites, are racing to social networks to help patch up consumer relations.

While the 2011 RightNow Australia Customer Experience report, which was prepared by StollzNow Research, found that consumer attitudes regarding the levels of service they receive from suppliers are largely unchanged from 2010 - the reaction of the suppliers has shifted gear during the last 12 months.

In 2010 only 31 per cent of financial institutions for example tried to win back clients who had defected to other organisations. But this year that has soared to 48 per cent - although of course this was the year that NAB famously 'broke up' with the other banks sparking a flurry of bank churn and renewed interest in holding onto lapsing customers.

But it's not just the banks which are trying to win back lapsed customers. Fifty eight per cent of telecommunications companies now try to win back customers which have defected to other suppliers - a huge leap compared to the 44 per cent of companies which bothered tackling churn a year ago.

And ISPs are similarly keen to keep us happy - 44 per cent today try to win back lost business, compared to the 29 per cent of ISPs who bothered to try to reconnect a year ago.

For an increasing number of companies the preferred communications channel with customers is a social network. The report found that 59 per cent of people think companies take account of the commentary posted about them on social media sites and 51 per cent would be happy if the supplier contacts them using social media after the consumer has commented on a negative experience.

Only a quarter of respondents said they would consider such a communication as an 'intrusion'.

The survey also found that mobile platforms were increasingly being used to go online (40 per cent of respondents), placing pressure on companies to ensure they were able to meet the particular needs of mobile, but connected consumers.