Service 2020: Social media becomes new consumer watchdog
THE unstoppable rise of social media will force companies to provide better service and be more transparent in their business dealings, according to new research from business advisers BDO, written by the Economist Intelligence Unit.
The Service 2020 report says websites such as Facebook, YouTube and Twitter – coupled with search engine powerhouse Google – will only increase their influence over the coming decade.
The research finds that almost half (46%) of businesses expect that increased use of social media communication will help companies adapt to meet customer expectations in 2020.
As social media replaces the press as the primary consumer watchdog, companies will be forced to be more transparent through fear of online reprisals.
Despite this, only 26% of those surveyed believes social media has improved customer relations at present, and half say it has neither improved nor weakened customer relations.
The reports cites the now world famous example of a disgruntled United Airlines passenger who penned a song called ‘United breaks guitars’ after his long-running battle with the airline’s customer service department.
His YouTube video has received more than 10 million hits and received worldwide mainstream media attention.
Julien Rye, partner and head of TMT at BDO in the North West, said: “Customers now have an instant and global means of broadcasting their feedback and the reality is that people are more likely to complain about a bad experience than they are to praise a good one. For companies, there is no place to hide.”
Still a relatively new concept for businesses, only four in 10 firms already actively monitor social media for customer feedback.
Of those that do, some respond to customer complaints on Twitter directly, often turning complaints into positive PR for the firm by showing other online users that they deal with issues effectively and quickly.
Rye continues: “Dealing with customer feedback and, in particular, customer complaints can shape the future of any business. Using new technologies and social media outlets as a part of this process will provide huge benefits to businesses over the coming decade if done properly.
“Web-based platforms for monitoring customer satisfaction are not uncommon. We will witness social media feeds being fed into the same systems, acting as an additional source of data. The increasing volumes of data will provide new opportunities for firms to better understand their customers, respond appropriately to concerns and personalise their services accordingly.”
